j. powell. we know he doesn't want a rate hike. is the president going to get his way? >> you know, there are many on the market, and i know you covered the federal reserve for a long time. who think the president's comments will work against him and the idea that j. powell has to go out there and the federal reserve and show their independence. they think that's a very critical aspect of monetary policy that they're not seen bending to the political wind. so the idea that the president pushes against the rate hike, it may end up giving the fed, you know, basically raising the bar for them not to hike. the expectation for them now next week is the federal will hike another quarter point in december but probably will go into some sort of extended pause as we sort out the impacts of trade tension, weakening global economy. and the economy is supposed -- is expected to weaken. and we're supposed to get slower growth. so far, the expectation is not for necessarily slow growth. >> the president may not be aware but it's common knowledge.

j. powell. the strongest part of the economy is texas. they shut down quickly.ne of the great things is they learn how to shut down. >> deutsche has a chart saying lower oil prices creates upside risk to consumer spending, 70% of the economy today. >> upside risk to consumer despite the macy's downgrade today. >> can we understand i have been meeting with people at two different companies, amazon and wal-mart. if there is upside risk to places that are taking prices down, there is upside risk to nordstrom. there are forces keeping their deflationary where the older fed people are very out of touch with what is going on in silicon valley to keep prices down. it is not -- that is an old model. that fellow has never been to the dollar tree in his life. maybe he doesn't understand amazon prime. prices are down. >> i find that hard to believe. >> are you paying more for things >> i have no idea. i'm not buying anything. >> i do all the finances. i just don't buy anything. i pay the bills. i don't buy anything. >> i had a cheese steak this morning. >> how cheap it was

. >> i think you saw a bit of a realization of that by j powell. >> yes. you saw a shift.se all the markets react to that shift. getting very close close to the neutral rate. that tone has changed relative to what it was not long before that. maria: really fascinating stuff. let's take a short break and come right back. ...i just got my ancestrydna results: 74% italian. ...and i found out that i'm from the big toe of that sexy italian boot! so this holiday season it's ancestrydna per tutti! order your kit now at ancestry.com >?ñ??? i want some more what's he doin? please sir. i want some more more? he has asked for... thank you well he did say please yes he did and, thank you (all boys): thank you, thank you, thank you. maria: we are back with legendary fund manager and best-selling author. you wrote this book. you go back and look at history and terms of what takes place in a debt crisis. why did you look at this? >> every experience i had, excuse me, i've been doing this for about 50 years now. every time i encountered a new situation, i began t

j. powell or janet yellen. i agree they shouldn't have hiked this last time.agree they should stop hiking. he's been really lucky. this has been a really accommodative fed. if we look at the natural rate of interest is, which i will not get into on this show. >> don't say that phrase. >> if stephanie were here she would have reached out and smacked me. this policy is still neutral. it's not still pretty accommodative. >> i love the nerd talk on economic policy. pull back and give me the layman's version. you're watching this. you're like three days ago, christmas eve, i was freaking out. yesterday i was psyched. where should you be feeling as you head into 2019? >> i think that for a long time, for five years we know stocks are overvalued and they will come back down. we know this year there's several things that will cause them to fall at some point by some degree. there's the uncertainty over trade which we just talked about. there's the fed. removing this accommodation it had put in place. it is likely at some point over the next year that stocks will conti

. >> i think you saw a bit of a realization of that by j powell. >> yes. you saw a shift.se all the markets react to that shift. getting very close close to the neutral rate. that tone has changed relative to what it was not long before that. maria: really fascinating stuff. let's take a short break and come right back. maria: we are back with legendary fund manager and best-selling author. you wrote this book. you go back and look at history and terms of what takes place in a debt crisis. why did you look at this? >> every experience i had, excuse me, i've been doing this for about 50 years now. every time i encountered a new situation, i began to realize every time i was surprised, it was because of things that never happened in my lifetime before. i realized i needed to study other past periods. i found out the same things happen over and over again. i needed to understand how they worked and also the mechanics of them. these principles were written over the last 30 years. how would a deal with this situation. when the anniversary of the 2008 financial crisis came along

. >> i think you saw a bit of a realization of that by j powell. >> yes. you saw a shift.se all the markets react to that shift. getting very close close to the neutral rate. that tone has changed relative to what it was not long before that. maria: really fascinating stuff. let's take a short break and come right back. ♪ when heartburn hits... fight back fast with tums smoothies. it starts dissolving the instant it touches your tongue... and neutralizes stomach acid at the source. ♪ tum tum tum tum... smoothies... only from tums i thought he was with you? no jack! (sfx: piano plays "twinkle twinkle little star" tommy? (sfx: audience laughing) don't stop. keep playing. (sfx: pianist playing masterful duet) here we go here's the fun part maria: we are back with legendary fund manager and best-selling author. you wrote this book. you go back and look at history and terms of what takes place in a debt crisis. why did you look at this? >> every experience i had, excuse me, i've been doing this for about 50 years now. every time i encountered a new situation, i began to realize

. >> i think you saw a bit of a realization of that by j powell. >> yes. you saw a shift.se all the markets react to that shift. getting very close close to the neutral rate. that tone has changed relative to what it was not long before that. maria: really fascinating stuff. let's take a short break and come right back. i knew about the tremors. but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine... proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia-related psychosis and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not

. >> i think you saw a bit of a realization of that by j powell. >> yes. you saw a shift.se all the markets react to that shift. getting very close close to the neutral rate. that tone has changed relative to what it was not long before that. maria: really fascinating stuff. let's take a short break and come right back. minimums and fees. they seem to be the very foundation of your typical bank. capital one is anything but typical. that's why we designed capital one cafes. you can get savings and checking accounts with no fees or minimums. and one of america's best savings rates. to top it off, you can open one from anywhere in 5 minutes. this isn't a typical bank. this is banking reimagined. what's in your wallet? is important to me so father being diagnosed with advanced non-small cell lung cancer made me think of all the things that i wanted to teach my kids. (avo) another tru story with keytruda. (roger) my doctor said i could start on keytruda so i did. with each scan things just got better. (avo) in a clinical study, keytruda offered patients a longer life than chemo

has the president been so successful in creating this craziness, that maybe j powell won't do it?ve ended up at carvell ice cream more times that i wanted to because of chaos behind me. i can't believe i'm saying this out loud. >> that you love carvell? i do. >> that i'll say any day of the week. donald trump is bolstered by the data he's tweeting now. for a different reason. i don't think he looks at the data. the economic information used to decide on things like rate hikes has dramatically shifted. >> how? how did it change this much? in october j powell saying the economy looks look, strong. >> i don't think the economy is disastrous. look what's going on overseas, then remember the fact that it's a global economy. whether people want it to be global or not it is. spillover effects. spillback effects. things that can go wrong elsewhere as a result of a stronger dollar, liquidity drying up in various bond markets. look at economic data around the world, it's slipping. getting worse than expected and not this week. this has been going on all fall. then when you look at our housi

. >> i think you saw a bit of a realization of that by j powell. >> yes. you saw a shift.se all the markets react to that shift. getting very close close to the neutral rate. that tone has changed relative to what it was not long before that. maria: really fascinating stuff. let's take a short break and come right back. ron! something's going on at schwab. oh really? thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. a business owner always goes beyond what people expect. that's why we built the nation's largest gig-speed network along with complete reliability. then went beyond. beyond clumsy dials-in's and pins. to one-touch conference cal

. >> i think you saw a bit of a realization of that by j powell. >> yes. you saw a shift.se all the markets react to that shift. getting very close close to the neutral rate. that tone has changed relative to what it was not long before that. maria: really fascinating stuff. let's take a short break and come right back. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab. if you don't like their answer, is important to me so father being diagnosed with advanced non-small cell lung cancer made me think of all the things that i wanted to teach my kids. (avo) another tru story with keytruda. (roger) my doctor said i could start on keytruda s

seeing the president lobbying so much of his anger towards the federal reserve and its chairperson,j powell people have been killed in a militant attack on an afghan government ministry in the capital, kabul. gunmen stormed the complex after detonating a suicide car bomb at its entrance. at least one police officer was among the dead, and approximately 20 people were injured in the attack, including some who had reportedly jumped from the third floor to escape. it is not yet clear who is responsible for the attack. the christmas getaway this year is being hampered by widespread disruption to train services, with over 300 sets of planned engineering works taking place around britain. several major towns and cities are affected including liverpool and manchester. and many services out of london to the rest of the country have been affected, as navtej johal reports. struggling to get away for the christmas getaway. thousands of rail passengers across britain are facing up to huge—scale engineering works this week. these travellers in manchester are among the thousands braving it on a day of di

investors looking at the fact that the us government remains partially shut down, j powell and donald, and the global growth going forward. tax cuts really helped corporate profitability this year but that will not happen in 2019. a lot of investors wondering where things go from here. while it is exciting to pay attention to one big date like this one, it is not necessarily positive for the whole year. things like wages, jobs still proving to be very strong in the us. chances are we likely to see more interest rate rises and that tends to make investors steer away from stocks? as interest rates rise, there is an incentive to put money back into a council. americans may be incentivised to spend less. the federal reserve is doing this because we want to get back to normal outside to this anger of president trump. but we do not know how long this lasts. we do not think it would go into a recession next year but we expect a slowdown in growth because of interest rates rises in the us. i am sure we will speak about that and much more over the coming year. thank you very much. president pu

j. powell, the chairman of the fed, gave a speech in new york, in which he said that interest rates wereust below neutral. and the stock market took off. dow jones industrials went up over 600 points, a 2.5% gain the reason was, everybody said, oh, maybe that's turning dove that the fed is turning dove-ish. -- the fed is turning dove-ish. everybody started saying, did he mean what he said? are we over interpreting it? >> the neutral rate is an interesting constant. it is not an exact number. that perfect spot where everything is kind of moving along. stableation is low and and everybody who wants a job has one. right now we are at a goldilocks economy. why do we need stimulus for monetary policy? going the way the fed is through right now. start to flowd back down and figure a recession. >> what interesting coming off of the financial crisis and the great recession, they didn't worry about this. >> neutral was an irrelevant concept. they were not trying to be neutral at that time. they're putting the finger on the scale trying to stimulate the economy. they come in cells this issue force

j. powell has already started to do that.e are in a situation cost ofe future monetary policy just becomes more uncertain, not only in the might of markets, but in the mind of central bankers. vonnie: joachim, why such conviction on cuba's growth going so dramatically -- by such conviction on u.s.'s growth going so dramatically? vonnie, if you are looking at recent data, there are some signs of slowing. we have seen peak growth in the second quarter, still strong, but lower growth in the third and fourth quarters. it is probably running at 2.5% versus more than 4% in the second quarter. but the main reason why we think we will see growth slowing further is, first of all, the tightening of financial conditions that we have had in recent months, stronger dollar, wider credit spreads, more volatile equity market, meaning tightening financial conditions that will play out in growth over the two to four quarters. secondly, the fiscal boost that we had this year will start to fade comes so fiscal stimulus is fading in the course of

j. powell would be one of those things. >> look, i think powell has been incompetent so far. i think every move he has made has caused a massive slump. we have a booming economy. there is a demand for dollars around the world. you have to be putting dollars into the economy and not taking it out. look what happened to the oil price. look what is happening to the prices of commodities whether it is soybeans or wheat or cotton or minerals like copper, these are falling. that is a sign that we have deflation. it makes no sense in any kind of economic theory to say you raise interest rates when your deflation -- this is what -- >> there is a real debate. this predates donald trump as to whether or not there is deflation in the economy. that is a debate that the fed should have and is having. that is a debate that should be had in an apolitical way. if you talk about firing -- you automatically make the entire thing political. it's the most ridiculous thing i have heard. >> how do you explain this year that we have a 12% decline in commodity prices and say that is not deflation? >

j. powell's job was secure. that's what really lifted the market. you look at the chart of yesterday's action, we opened about 300 points higher, then went negative. as soon as kevin spoke, the market shot higher for the entire day. question of we also heard there were trade talks being scheduled for the u.s. and china around the same time. some concerns were briefly lifted. whether or not there's progress remains to be seen. >> ron, appreciate it. bottom line, it's the president's advisers who have been out there, as ron noted, to try to calm people down. >> that's needed. the president, while he has all this chaos going on, with legal issues, the defense, the trump economy he was talking about on the campaign trail, it's been doing well. even though december's turning out to be not a great month, overall, he can stay 2018 is a good year. >> thank you. stick around. we'll talk about stormy weather because if you are trying to get home from the holidays, there might be trouble brewing. we've got storm warnings in effect for millions of people across

j. powell.the definition of uncertainty, something that you might have been told once or twice. markets do not like. how is anything he is doing right now helping? >> the market's rebounded tremendously today, bigly, a thousand points. there's always a correct correction in the market and selloffs towards the end of the year as people try to get their tax writeoffs. >> nothing like the worst christmas eve trading day ever. >> but i don't think mnuchin is going anywhere. he is very well received by the trump family and he's trusted. by the way, the biggest signature item of the presidency so far was ushered in by steve mnuchin. tax cuts was the biggest thing and that could be the thing that gets him a second term. >> keith, how do you respond to that? as rob said, the market rebounded huge today. roaring back, biggest daily point gain ever. so i guess forget the chaos talk altogether? >> what the market is in right now is a stage of volatility. markets don't like uncertainty and the trump adminis

j. powell, came out and basically implied maybe not as aggressive as some people thought. now we have the two other things the market cares about, number one, tariffs and trade war and number two is global growth. is china slowing or not independent of the trade wars? every time we get positive news on tariffs, there's going to be fewer tariffs. the market rallies. it tends to go down when we get negative tariff news. we had one of the president's top economic advisers who said, look, these are agreements that's very high levels between the president. now it's up to people like us to interpret what they're trying to say and what the meaning is. that is, as you know, the devil in the details. the chinese media has been relatively mum about what exactly the specifics are. the president of china just getting back into china. i think a lot of people over there are waiting as well to get a correct interpretation of this. the market's saying right now we're not quite sure what's been agreed to. >> maybe you can help me understand something else wilbur ross said, when he said the

j. powell is deeply destabilizing. >> elaborate on that for a second, john, but first let's set up the backhe president's own mouth essentially. on monday he blamed the fed, of course, for all the crazy market turmoil saying they don't have a feel for the market. yesterday he was asked specifically about the fed, specifically about the chairman, and here's what he said. >> they're raising interest rates too fast. that's my opinion. but i shouldn't have confidence. i think it will straighten. they're raising interest rates so fast because they think the economy is so good. but i think that they will get it pretty soon. >> and just to be clear you heard him say there i still have confidence, he's talking about powell. he was asked do you have confidence in the fed chair there? john, explain this. the president, even in the eyes of some experts, may be right, right, when he says that they're raising rates too fast for the economy? >> there are significant numbers of economists, including larry summers who was a top economic adviser to both president clinton and president obama who wished the f

j. powell, her former colleague on the fed, is somebody who has tempered and practical views about regulationall street regulation. i think she was hedging against what might happen in the future but not in full five-alarm mode. >> progress being made in the united states' discussion with china on auto tariffs in particular. what's your sense of it? >> well, i think we're going to see from the administration a desire to do what it can to temper some of the volatility in financial markets. so the president who grades himself on how the stock market is doing, if he sees the market go down, we're more likely to hear from steve mnuchin or larry kudlow or see a tweet from the president saying, well, progress ahead or we're going to have a time-out and 90 days to negotiate, that sort of thing. that doesn't indicate a final resolution of it and indicates the half-life of a tweet may be diminishing somewhat as people see some of the reassurances they get from the administration are not subsequently borne out. >> let me ask you about what's going on in the united kingdom and sort of writ large what's

j. powell had the great analogy. he said in a dark room or a black box, you don't know what the economy's going to look like. yes china, yes trade is very much on the focus. the number we got today certainly gives the fed pause to consider. something to turn the market around yesterday was this report in "the wall street journal" that the fed is taking the wait and see approach. >> all right. we're going to watch those markets. just under 30 minutes. don't go too far. we have to turn to the other big developing story. it is all about nerves on edge. the president is on a tear on twitter. within the hour, jim comey will appear on capitol hill to testify. this will be behind closed doors. answering more questions about the fbi investigation. that is expected to be released in 24 hours. that is just to start. also we are expecting two court filings. there's a 5 p.m. deadline for the special counsel and southern district to submit information to president trump's former lawyer and fixer. in another court filing, is expec

j. powell. >> rick: are you saying this president is different than previous presidents?e never heard that before. >> you know, you got to talk about the issue at hand, the concern about the markets. but the fed needs to be independent. that's the most important thing. they're not supposed to play to politics and they're not supposed to play to investors on wall street. just because investors don't like what he's doing right now that doesn't necessarily mean it's bad for the economy. we've had such low interest rates across the board for quite sometime. and this hike right now is still within the 2% range. so it's not like it's going to inhibit growth that much when you're seeing the hike. and think of all the debt that is growing. it's been cheap money for too long. if anything, you have retail sales came out super strong. unemployment, the lowest we've seen since december, what is it, 1969. you're seeing 7.1 million job openings across the country. >> rick: let's cut to the chase here. the president does know business and he knows the economy. and he turned this market

going on and the global on.down watching going the fed took themselves out of the equation when j powellaid we are closer to neutral. europe, china, asia feeling that slowdown. atn the u.s. decouple from th slowdown? there are headwinds. fiscal stimulus is anniversarying. we have things like autos and housing starting to slow down. those are all on the table. recession in is no 2019. david: let's look at a technical. we borrowed too much money. nonfinancials have borrowed a lot of money. should that be a concern? >> that is a potential driver of the next slowdown. banks are more comfortable with housing leverage, the area they are concerned about is corporate leverage. high yield had been doing recently.ly until we are watching it. rates remain relatively low from a historical perspective. 2.9%.e are sitting at relatively low. free cash flow metrics have improved quite a bit over this 9 year bull market. without a recession on the horizon, we're not looking at a default cycle. we're coming closer to a tipping point. david: if you take interest costs, they are at high levels. companies ha

j. powell says we need the interest rate hikes. he really needs to wait and see after this.t world that is dangerous. let's wait to see. >> with every meeting live next year it does change things. >> don't you think you can just do it. maybe there is a little more guesswork. if the numbers get weak then we know she should relent. if the numbers get strong then we know he should hike. he just has the ground game going right now. it doesn't matter. we see the problem with that is that it is ten yards you got to go. just pass the ball and get the hike through and then let's see what happens. he's in the red zone. he knows he is in the red zone. >>> dow is up 132. the ecb president has wrapped up his news conference. annette, good morning to you. >> reporter: good morning to you. it's a new story day for the ecb because it is the official end date of the asset purchase program. they have confirmed that they are ending their a.p.p. as they call it program at the end of this year officially. but they keep on reinvesting a sizable jump each month so it's not over yet here for the e

j. powell we want to hear. his testimony on wednesday was canceled. so we're going to see what he thinks. he can provide a lot more clarity now. shery: sure. we'll be looking forward to that. global economics and policy editor, thank you so much for that. still ahead, oil prices jump to the highest in over five months with opec about to lose a member as it gets closer to another supply cut. find out what it means for qatar to leave the cartel. paul: plus, we ask trilogy global advisors how asian stocks are set to react to the positive trade news out of washington. this is bloomberg. ♪ aul: this is "daybreak: asia." shery: emerging market stocks were among those getting a lift from the apparent trade truce between the u.s. and china. the fate of that agreement, as well as fed policy, will be key factors for emerging markets heading into 2019. senior portfolio manager for trilogy global advisor, great you have to in the studio. if you have those two factors, trade tensions, as well as fed policy, which one is more important for emerging markets? stocks

j. powell rally, it has been the leader to the downsides today. we are seeing with those concerns about whether we might see a slow down in the economy and dragging down the small caps it is across all sectors that's where we are seeing the most new lows today, whether it is bio tech names like tech names like net gear or retail name which today hit a new low we are seeing a lotov of impact in terms of the drag it is coming from the large caps if you combine amazon and alphabet their losses account for about half of the nasdaq's losses today at least in the nasdaq 100 since the last six days we have lost about half of the gains that we have seen today. one of the things we have seen is we are not seeing quite as strong volumes today as we saw yesterday. we'll watch it into the close whether we see a volume spike ahead of markets being closed tomorrow that's one little bit of silver lining that we are watching, that we saw greater volume on the upside than we are seeing today on the pullback. >> yeah. that echoes what he was saying here maybe that

j. powell thinks in retrospect that he misspoke and made a mistake in what he said >> yesterday >> he didn't just out of touch. that's okay. he is an out of touch guy. he is trying to be like the academics. that's fine. if i weren't involved with trying to help people make money i would be fine with what he just said. if i were a short seller i would be sad. that's how i have to look at it. let's up our exposure. most people who watch me are not short sellers. >> economic models. it does make you worry. >> if you are rich it's great. all the rich hedgefund managers are rich. it's great for them particularly if they are already rich. how fabulous is that if you're not rich it's not so great. most people in the country are not rich. so therefore -- >> i read some of your tweets. you might have done one of your things from ten years ago, but you didn't think it helped last time that much. >> i'm trying to come up with a better way. i like jay. i think he is a good guy. i yelled fire in a crowded theater, but the theater was on fire. he is human and he's wrong. that's all right. i wish he were r

j. powell, nor do i believe i have the right to do so." k. a bride and groom driving to town hall crashed. no one was hurt but the car broke down; so responding officer cody matthews drove the couple and their two kids to the ceremony. officer matthews even stuck around to sign their marriage certificate as an official witness. wow. that's pretty cool. pete: that's cool. making the best out of a rough day . jedediah: that's true. optimism for the holiday sea.on pete: he's about as official of a witness as you could get. jedediah: that's true. pete: a guy in uniform. jedediah: that's 100 percent. pete: i drove you there. griff: talk about holiday optimism, holidays are fun again again. up 20%. pete: so this is actually really interesting. so the same poll was taken in 2010 and taken now and they asked americans are your holidays, christmas, are you having fun? in 2010, unfortunately, sort of sad, of americans said they were having fun during christmas. today that number is 58% were -- it was 38% back in 2010. jedediah: people have money in t

mr trump has already said that he is very unhappy with his toys as mr powell as the fed chairman —— with his choice.|janet yellen is thinking, she's at home watching closely at imagine, i wonder what thinking. let's look at city am, eu olive branch is as city fears, what is the olive branch? the eu's response to regulation the bank of england has already implemented a few months ago for the case of a no—deal brexit scenario. the regulations saying that the current regulation, which means london based banks can trade in the eu will continue for a certain amount of time, about 12 months. business as usualfor a period of time. time, about 12 months. business as usual for a period of time. only a period of time, that is important, this is something the european commission hasn't aimed for, they would have wanted to settle this, not with a no deal contingency plan, but with something real in the settlement, concerns about... that trillions of derivatives contracts could be moved in a very short amount of time, and have now been found to be unfounded. but, as you said, it is something which is only covering

j howls some further hikes will be needed. -- jay powell saying some further hikes will be needed nextank of america saying beijing and washington meeting time to sort out their differences. >> we are entering the last hour of the morning session in hong kong and it has been all about the fed. they didn a hawkish -- not remove the language about further increases. we see equities falling out of favor. losses.olding on the doj did nothing to give some solace to these markets. keeping rates at 0%. etf purchases, still remain the same. easing a little further. take a look here when it comes to be stronger dollar story. the south korean won, the chinese renminbi, falling out of favor committee yen hitting sixth anyone --

j-bill. >> fed chair jay powell took note of this he took note of troubling cross current in hiswards, in thene of the factors that caused the fed to take a more dovish approach to rate hikes. but he was not as dovish as the markets wanted where do we go from here a lot of this selling is technical. the dow jones industrial averaged closed at new low for the year below the march lows. and transports closed at a new low. this is for those who follow dow theory theory. when both indicators hit new lows it's a technical trend. >> our next guest has been cautious of the overall market says there are two other names that could be hit by the global growth threat. chris is at the mass ma. >> let's start with the weakness today. this is fedex down 12% on the day. this was not a one-day affair. this is a stock that peaked almost 12 months ago in january. failed to make a high in june. failed in september. failed again a few weeks ago s in a series of lower highs that finished itself on the downside the stock now down 40% from the highs. frankly it's reminiscent of the 40% decline in 2015 and '16. i su

. >> retired general and former secretary of state colin powell was in president bush's inner circle as j chairman of thnt chief's of staff. we appreciate you being with us this evening. w president bus a combat veteran like yourself, he understood the price of war. tell me, if you would, about his decision making process after iraq's invasion of kuwaitnd what would ultimately become the gulf war. >> it was a shock to say what iraqis had done, to take over the peaceful country to their so the first couple days after the invasion, aspresident bush thinking it through, we gave him military options. we told him what the military could . he was anxious to see if there was not a diplomatic solution to the problem. by sunday night after the invasion a couple days earlier, when he s coming back from a meeting in aspen, as he landedou at the s heawn and was walking into thite house, the press asked him, what are you going to what are you going to do? he just simply said, this will not stand. this invasion, this evil thing, words to that effect. when he said that, i was at home watching, and i sai

j. trump and perhaps not bode well for chairman powell staying in power.r way, jay powell rocking the markets, certainly random and interesting. i'm off tomorrow have a great day squo squawk box up next >>> good morning, fed backlash, global markets sell off after the central bank raised rates and signalled more hikes to come we'll break down the decision ahead. >>> the senate passing a bill that would keep the government running through february, but the house and the president still need to sign off >>> this bud's for you, america's biggest beer maker is getting into the marijuana business thursday, december 20th, 2018, and "squawk box" begins right now. ♪ live from new york where business never sleeps. this is "squawk box. >> good morning, welcome to "squawk box" here on cnbc, we're live at the nasdaq site. lee is out today, but our guest host is shark tank's kevin o'leary, bringing some wonderful to the set this morning. and a lot to talk to mr. wonderful about. >> most wonderful time of the year. >> how appropriate. >> and mr. wonderful is here >> we

wanted to hear that the balance sheet was part uice theed's tools to j economy should we go into a slowdown in the coming months. what powellsaid his interest rates is essentially the only counter a going to potential slowdown in the coming months or years. host: scott gamm covers wall street for yahoo! finance. you can see his work at finance.yahoo.com, here to talk about the stock market losses and what he is expecting. thank you so much for your time, sir. guest: thank you. host: that was the only guest we had today through the remainder of the show is devoted to the shutdown, eight hours and 38 minutes into it, and get your thinking on it, not only the shutdown itself but the larger issues of border security. if you support the shutdown and what the president is doing, (202) 748-8000. if you oppose it, (202) 748-8001 . if you are a federal employee and want to give us your thoughts, (202) 748-8002. senatoresterday that mitch mcconnell, the senate majority leader, went to the floor talking about at that time the state of negotiations between republicans and democrats in the senate. here is that state of play from earlier

>> but market dow has what lost i think 3200 points since fed share jerome powell and talked about raising rates from neutral. j quarter point that does not come out of today is not a big decider it is about the guy and language. and a the tea leaf reading industry will have a field day today. because when jerome powell answers questions you're going to be passing every single word not to mention tone of voice all will be passed and market will pass judgment. >> i want to say see the price of oil we're getting close to 47 or dlas a barrel. there's a statement in itself. 4682 is the price. jack, let's go into this. [laughter] look i say that cheap oil is good for the economy. good for consumers what's the problem here? >> you're right so far you're right. i mean it is god before it comes bad if it does, in fact, become bachelor's degree a lot of companies use fuel and take airline as for example. cheaper jet foul a third of their cost so great news for airlines unless the price of oil is coming down to signal a recession that's coming and then people travel us and take fewer flights less top lying growth for air

j big australia -- daybreak australia. one to 18 has been far from a holiday for many very we have talk of a meeting between president trump and fed chair jay powellpushing back suggestions it is revving up its monetary policy engine. kathleen hays is with us. what could powell and trump hope to get out of a face to face meeting? kathleen: that is a big question. a lot of people have looked at these. wall street journal was one of the first to report the white house staffer were trying to set up a meeting between the fed chair and president. president trump has been critical of the fed, people are wondering if this would be more of a loser for powell than for trump. maybe they just want to get them together again, even though it comes after the president talked about firing jay powell. what is behind this? a private meeting could ease public tension. some say it might look like powell is giving in to pressure from trump, could create infusion over what was discussed if the president says jay powell said -- we could have to raise rates. iwell says, that is not what said. he could misinterpret what mr. powell will say. governors -- one man who was o

powell appreciates it >> peter navarro came out yesterday and he was talking about rate he did not talk aboutdeath by china. no one thinks has asbestos at 15 years now at j is amazing you would never buy anything chinese again. you would look to be sure it is not made in china. >> that's hard to do in this country. >> how about landfill? >> it is filled with things from china. >> we send those recycles back to china but it ends up in landfill >> 90% of what's in the ocean is from china that's not what they talk about. tariffs -- the president does not talk about that at all you should focus pollution is from china they did not want to do that i asked him directly why are you guys not focusing on that that would imply that there is something wrong with the air >> the air in beijing is not good you do not want to breathe it. >> you guys have been there. >> did you wear a mask >> no, i did not it was notable >> my daughter wore a mask in oregon >> and in some city like india and we have the great pacific garbage pack and the amount of garbage in the ocean is going to out weigh fish in 20 years >> i think there are people who believe that plastic, the younge