with cme group chairman and ceo terry duffy. "fast money" will be right back. i wanna keep doing what i love, that's the retirement plan. with my annuity, i know there is a guarantee. it's for my family, its for my self, its for my future. annuities can provide protected income for life. learn more at retire your risk dot org. (classical music playing throughout) ♪ >>> welcome back to "fast money. check out apple get agonize boost off the back of the big event yesterday. touching the trillion dollar market cap in the trade. they went in on the newest slate of products. no less than three brand-new phones but there are plenty of question base whether they are fill the gap until fiechgt. josh lipton in sflis with more. >> melissa apple announcing a trio of new iphones. faster processer longer lasting battery pb better camera did they offer enough for consumers with the new phones to keep the iphones franchise at least basically stable for the next few quarters until 5g hits, as we expect next carrier. d.a. davidson says yes he projects low stijt revenue klinec de

we are live at the cme in chicago. don't go to bed early.guy: more comments relating to iran from the president of the united states. president trump sand the u.s. could hit "15 different things -- trump saying the u.s. could "hit 15 different things" in iran. the president is also saying that with holding military action on iran shows strength. there are some that argue that the lack of deterrence here has encouraged the iranian behavior in the strikes we have seen. the president at this point saying the lack of kinetic action is a sign of strength. we'll see whether or not that holds and what the saudi view on this is. the president is also indicating havea number of countries been taking action on iran. remember, the u.s. hitting out and basically sanctioning the iranian republican guard. oil prices not really reacting to this. romaine: let's stick with oil prices. i know for futures in focus. brand battle joins us from the cme. we were just talking about oil. i'm supposed to believe the saudis have this under control. what is the price a

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cme group can help you navigate risks and capture opportunities.o reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ >>> welcome back to the "halftime report." facebook, amazon, netflix, google, better known as the fang stocks, they were all in the red for the week within the basket of the fang names it has been particularly rough for netflix. that stock trading right around its lowest levels of the year down more than 30% from its may 2019 highs competition is growing and now credit suisse, the latest firm to sound the alarm, saying the streaming giant will likely miss third quarter estimates. everybody is piling on netflix here >> which sort of makes sense, to pile on. the company -- i know. well, look, dynamics have changed because since the last six months you have the announcement from apple in terms of what their price points are, which are significantly lower, and you have disney and their price points i don't think apple is a true competitor yet but you also have amazon so it's gotten ve

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joining me now from the cme is scott bauer of prosper trading economy.that there be the continuation of the same type of policy out of opec. scott: the new oil minister named that is part of the royal family is well respected, but he will take a harder line with some of the opec less nations, especially russia, in terms of adhering to the supply cutbacks and extending them. i think the market likes that a lot. the market is very bullish over that. however, we just can some near-term resistance in oil. $57, $57.50, with some resistance. we may see $50, though. i think some of the global issues out there, especially with continuing slowdown in china, is really going to weigh on the oil space. vonnie: we are at $58.64 right now. i want to ask you about gold as well. we are in an interesting relationship with the $1500 $1503 now. scott: i think it probably stays there until we see what happens with the fed next week. how dovish are they going to be? i think we could see gold may be going up another $30, $40 from here if we see a very devastating. however, if

. >> cme group we'll have bitcoin on the cme and i feel exchanges are a great way to play the financial sector they're cutting edge and they're thinking about what's going to be a hit the next 12 to 18 months. >> you want to comment, mr. bitcoin? >> i think cme's going to be an important sort of pathway back towards institutions getting bitcoin, so it could be quite a big deal. >> 100,000, is that what you said for bitcoin >> i don't actually have any more price levels for bitcoin, but -- >> but you had 100,000, didn't you? >> 25 last year. >> 25,000? >> yeah. i think bitcoin can make a new high, yes. >> all right good seeing you again, tom lee. >> we're coming to the end of the quarter. keep in mind that the u.s. dollar is 2.5% higher in this quarter. >> okay. >> i think that will be important for the next quarter. >> we've got to go. >> marathon petroleum mpc. >> thanks, everyone. have a great weekend "the exchange" begins now. >>> hi, everybody. thanks, scott. i'm dominic chu in for kelly evans today. here's what's ahead. one fed president says there's a big risk out there that inves

guy: phil joining us out of the cme. vonnie?t is time for your latest bloomberg business flash, some of the biggest business stories in the news right now. on of credit suisse's top shareholders is urging the company not to fire top officials in a surveillance probe. he said it would be damaging to the bank and its stakeholders to lose any member of senior management over the scandal. the credit suisse board is trying to find out who exactly was responsible for having a former wealth management had followed. -- head followed. commerzbank is giving up its gold for growth. it's as an economic slowdown and lower interest rates have forced it to speed up cost-cutting. stephen engle says the new strategy is sobering late realistic. soberinglyg late -- realistic. we are going to be speaking to the president of the african development bank. he is going to be in new york city and he will join us. a look at u.s. markets now -- the s&p 500 up just more than 0.1%. the dow up zero point 3%. the nasdaq down three points. ♪ ♪ >> we have 30 mi

joining us from the cme is the managing director for futures and commodities at btig.about the funding squeeze and the repo we've seen from the fed. has it got people worried? guest: it does, and there's clearly been a lot of talk about that. some people in the market were wondering even about repose from the fed since we haven't seen that since before the recession. there's a lot of talk about what it is, where the demand came from, but in the end, you can sum it up that there is a demand for liquidity, and that banks need in bunny and the fed is going to supply it -- the banks needed money and the fed is going to supply it. is it going to be a more prolonged thing? will that force the fed to come up with a more permanent standing repo facility like they've been talking about quite a while? there's been quite a bit of talk, and maybe this will be the impetus to get it done. guy: 25 looks baked in. are people expecting more rate cuts coming after this one? holly: there is talk about more rates baked into the cake. any are pricing in additional 25 basis points cut at th

cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ >>> welcome back here is your cnbc news update at this hour. general mark milley was sworn in as the 20th chairman of the joint chiefs of staffs the president congratulated the general on his new role. >> thank you, mr. president for the trust and confidence you have placed this me to become the next chairman of the joint chiefs and for your personal leadership and commitment to our uniformed men and women. you can rest assured that i will always provide you, impartial, military advice. >>> animal activists have barricaded a whole foods supermarket in san francisco they demand jeff bezos support the right to rescue animals from fast food farms. whole foods is a subsidiary of amazon >>> prince harry visited national park in malawi where he honored the memory of a british soldier killed while talking part in anti-poaching operations you're up to date. back to you. >>

bill baruch joining us from the cme. hsbc's head of fx strategy david bloom is on the program. that is coming up at the top of the hour. markets higher today. treasury yields higher, as well. this is bloomberg. ♪ ♪ guy: 30 minutes left in the european trading day. from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: equities bid. the bond market is paying attention as well. nearlyxx 600 is up by 0.7 5%. we are seeing the pound rally as well. that's putting a little bit of a cap on the ftse 100 today. i think this is where the real move is happening. we are seeing a breakdown in equities, but the bond market is worth paying attention to. asht basis points, as high 11 basis points, earlier on. bond yields going up. this is a chunky move. two way action being re-induced -- being reintroduced for the bond market. vonnie: crude oil inventories coming in now from the department of energy. we are gettin

. >> reporter: the montgomery county cme solvers is offering a reward up to $10,000 for any information to an arrest in this incident back to you . >>> gary mcgrady is here with us. it's gotten cooler since last time. >> and next time you me, at 9:00, when i s comeack, it will be the next time, i will be cooler. >> you're notoming back until 9? > well, i'll be in the building. i guess i can check in. >> ias just -- wow really. >> my n,ext scheduled weather cast will be at 90 a this one. >> ok. >>> then 10:00 and then 11:00. you didt eac time dhok. sst - i >> i d whe ed'm nre. myt ie iot.idoned d temperature is cooling dow dn south,akg few more clouds, it's middle 70's. .oreem t67 nerk our air little bit coming down from the north, y'l lloo bt wk aces louisville 90, knoxville to low for the next few days, because it looksdiik e wll he,fo comrta. tomorrow t jday.usmi at about five to ten, couple of little gusts maybe up around 15, but no more than that. just really, really nice. there's the high pressure, s and dry tomorrow, we're talking 70's for everybody, to upper 70's. and a lot o nss

we are going to take you live to the cme next.rg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." it's time now for our stock of the hour. shares in british travel operator thomas cook falling for a fourth straight day. emma chandra is here with more. emma: the stock down some 14% in those four days. now looking at a market cap of just 70 million pounds. sharesmovement in the coming as the company filed for chapter 15 bankruptcy protection. that shields it from its u.s. creditors whilst it gets on with its broader debt restructuring. creditors are set to vote next week on a plan that includes a debt for equity swap that would fosunchinese investor tourism group to lead a rescue of the company. you can see they rallied, but they have since given up those gains. a lot of creditors are unhappy with the plan, and next week's vote was delayed from this week. thomas cook's equity investors have also taken a beating over the last year or so. take a look at how the shares h

joining us from the cme ieble of our -- of rjo futures. wee oil finally crossed below the five-year average on inventories. millionout 416 barrels on inventory, so we are seeing the supply cushion dip below that average as well. oil supplies tightening up just a little bit. i think the reason why we are not getting that reactionary rally is that opec monthly report came out, and they said they cut their demand estimates come about oil is starting to get a lot of headlines coming the oilcially with minister. that will create some drama on the oil markets. i think oil is back on the tle as a commodity that looks like it is really tradable right now. vonnie: do you have your eye on levels at all? average, $58,ving we keep hovering right around there. $60 is the psychological resistance. opec wants to get it back over $60. so do the u.s. shale producers. i think they are trying to push this market up. they might have some problems with u.s. production up at 12.5 billion barrels -- at 12.5 million barrels per day. rates. a brief word on does th

chris kirsch joins us now out of the cme. it?lem, isn't these guys can talk about what is happening in terms of nuclear and carbon capture, but when it comes to the crude market, it is really straightforward. a lot of supply, not much demand. which way is the price going to go, chris? chris: i think you hit it right on the head. the fact that you've got players coming back on that are seeing , 600,000 barrels coming back online that were not expected, we already have a high supply, low demand situation. ultimately see it going lower and testing that $53 support from early next month. guy: what would a trade deal due to that? chris: you could see an uptick. an 8% pullback in the futures over the last several days, i think you can get up to that $59 handle we were talking about just a week ago being a key pivot point to the upside. if a trade deal comes in, you could see a quick 10% rally, but that is not going to happen before the end of close today. guy: do you think the russians think the opec story is going to stick together? i

the real story here is these will compete with simila futures offered by the cme group since 2017 cme is preparing to launch options on those futures so the new york stock exchange is playing a little catch up here >> my thinking on this has not evolved. i still just don't get crypto currencies i understand the concept and what they want to do with it but still there is a stigma attached to this and they don't have a payment mechanism and you still have the reluctance of regulators to do anything about this, which is a problem you've got whole countries that are -- don't want to touch this with a ten-foot pole so you got real headwinds for this crypto currency thing >> disney said it was too much of a brand risk to go with twitter. is it too much of a risk for the new york stock exchange to get involved with bitcoin futures? >> i think it signifies it's become even more and more mainstream, whether people agree or disagree. my own local pizzeria are offering discounts if you use bitcoin. >> you're kidding. >> apparently backed is also working with starbucks to help convert digital cry

and to manage this risk, the world turns to cme group.s lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. >> the whistleblower at the center of the impeachment probe expected to testify very soon as a new poll shows voters are pretty split on the issue. major average indian positive for the month. despite the probe. the commerce secretary wilbur ross is warning the democrats, they just want to turn the economy around and not for the better. >> the market knows this president has delivered in very strong economy all the reason indicators right to this have been very good. democrats are desperate to derail the economy because they know if they don't their toast in november. >> steve, i know you recently wrote about the middle class and economic progress. do you think that these impeachment proceedings could actually do some real damage to the economy

cme group can help you navigate risks and capture opportunities.able you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ ♪♪ ♪♪ ♪♪ >>> pricey housing markets putting pressure on house flippers and turning to the banks for now. diana joins us now >> hey there are very few foreclosures or dispressed properties to rehab and resell flippers are in higher end neighborhoods like this one. finding older, pricier properties to flip and using more financing to do it. about 41% of flipped properties in the second quarter of this year were bought using mortgages or private lending that's a little less than a year ago. the dollar volume of those purchases was up 31% from 6.4 billion to $8.4 billion. that's the highest level since the end of 2006. the investor on this house said mortgage rates are so low it makes sense to finance it and he said banks have loosened up a bit. >> it's almost hard to use a mortgage because you get leverage you can do many more deals if you're borrowing money the banks have

cme group - how the world advances. >>> welcome back.e says he's seeing unusual activity in an energy stock. >> jimmy will love hearing about this one. marathon petroleum. at the beginning of june we started seeing more and more activity hitting in this particular name. since june 1 we have had 17 different unusual option activity buying since that timeframe. the stock was trading about 46 then. now it is up to 62 now. they were buying out to january even back in june. today they're rolling out of some of those january 50s that they paid a little over $2.50 for and selling for $13 but buying january calls pretty aggressively for $3. those are huge sizes that we're seeing. is the run over? this tells me it's probably not. maybe there is a lot more upside. we know what's going on. elliot has been involved. this has been a stock that has continued to move to the upside and continued to see a lot of unusual activity. by the way, you guys i think will talk about the banks. i will hit on one bank stock real quick. wells fargo put in a ceo toda

and to manage this risk, the world turns to cme group.e help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. there is a chance that's the last time. 300 miles per hour, that's where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me retirement is protected. annuities can provide protected income for life. learn more at retireyourrisk.org annuities can provide protected income for life. what do you look for i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees

is dan us from the cme deming. about agricultural commodities on the president's tweet. we are seeing some movement in the likes of iron ore, hog futures, copper. dan: you're seeing quite a reaction, and actually, if you look at grains as well. soy is up 2% on the day. you're definitely seeing positive reaction. pronged,come with a two- at least the announcement was two-pronged. we will have to see if they are grouped together. maybe this will calm down if they don't agree to intellectual property initiatives. vonnie: is there a trade therefore you guys? dan: there's been a trade across the board here. there's no question you are seeing some of the dynamic shifting. you are seeing the dollar coming under some pressure. looking at the bond market, there's a big trade right there. it looked like a capitulation this morning. you are seeing global rates reversed dramatically after the ecb announcement. it felt like they basically threw up their arms, and now you're seeing selling pressure across the board and yields re

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from the new york stock exchange and cme group along with andy brenner. guys, what do you think this all means for the rates picture but more importantly, it's a friday. let's spin it forward. teddy, you first. >> well, first, i have a question for you. would your father wear shoes when he walked uphill both ways? >> shoes that his brothers had handed down to him that we made out of tires. yes. hey, it was the depression. >> i think we had the same father. liz: yeah, we did. >> anyway, liz, i think what powell said today was right on the money. you know, we get all this negative rhetoric about the economy, not sure if it's politically driven or numbers-driven but clearly there's a lot of it, and the fact is the u.s. economy continues to do just fine, sort of bumps along with a very positive bias and the stock market quite frankly reflects that. we're within five or six points, 500 or 600 points of the all-time highs. with all the negative news and all that negative background stuff, look where we are with the market. what they'll do with interest rates, i

regime does not discriminate.es there is no on that attacking civilians, hospitals, schools is a war cme. do you think anybody will ever face justice? >> i don't think. nobody care. i hope i can see jusce in syrian people.yone wh but i don't think i will see it in my life, at least. quentin: they have known only this war. it is r from over, but already the living, e dead, the injured have been forgotten here. quentin sommerville, bbc news, idlib. jane: the latest atrocy in syria. here in the u.s., we have reached the moment many have. been waiting f finally the top 10 democratic presidential candidates are on one stage for a primetime debate. all eyes will be at the center, where former vice president joea biden and r elizabeth warr will be standing. but others like bernie sanders, kamala harris, pete buttigieg, inand beto o'rourke are loto make their mark. for more on what to expect, we cross to the bbc's laura trevelyan, who is at the debate site. it is clearly a populavenue judging by the lines behind you. what are people hoping to find out tonight? laura: jane, for democrats lining u

cme group can help you navigate risks and capture opportunities.ach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ ♪ charles: we have got mixed news on the china trade front as reports say the united states is unlikely to extend temporary parts of the waiver to huawei. china making serious trade overtures today. the commerce ministry said they made deals to buy more u.s. soybeans and pork. the two sides remain close with communications ahead of face-to-face talks with washington in two weeks. florida senator, budget committee member rick scott joins me to sift through all the news. senator, i find it intriguing the last 24 hours we've seen the trump administration still tough on china with respect to violating sanctions on iran. saying maybe there won't be extension of waivers, but china making nice. they're saying nice things. they are making promises. they don't carry as much as they used to. but i feel like they want a deal more than ever before? >> charles, before the break you talked about th

we have traders at the new york stock exchange, the cme group and the nymex. tim anderson, let's go to you first. i ask you that question, a lot of momentum over the last several weeks. where do we go from here? what's the next trade headline, is it the fed next week? what's going to impact these markets? >> we have had a very strong move this week after this bond bubble we were in the last ten days of august seems to have burst. tremendous mutual fund flows into equities and out of bonds funds, very hard to pinpoint when the major averages might hit new highs. but it certainly feels like we're going there. if not next week or the week after that, then certainly sometime early in the fourth quarter. ashley: interesting. chris robinson, for awhile there, all we focused on was the inverted yield curve. the ten-year treasury now up to a staggering 1.84% or thereabouts. does that mean that these fears of recession are now way on the back burner? >> well, the stock market rallied 2200 points in 12 days, 9% in 12 days. the s&p, over 200 points in 12 days. i think wh

and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. >>> welcome back, everybody. i'm sue herera here's your cnbc news update at this hour. a 5.8 magnitude earthquake shook istanbul turkish officials said the quake struck in the sea of mamara seven kilometers deep. turkey is very prone to earthquakes. >>> and a 6.5 magnitude quake killed at least one person and caused building damage on one of indonesia's less populated islands. the quake was centered 23 miles northeast of anbon at a depth of 18 miles >>> blue and white party leader benny gantz has called on benjamin netanyahu and his likud party to negotiate with no preconditions to form a government netanyahu is beginning the task of trying to put together a coalition government amid political deadlock >>> at home, sam's club is t

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cme settles contracts in cash.t product will be delivered in bitcoin why physical some may want to hold bitcoin long term. second the contracts ex-pfeifer after a single day a single day it's an interesting idea think about merchants. if you are a merchant and want to cash out can you do it in a day and get your money almost immediately eventually they have monthly contracts as well will this make it more widely accepted well, nobody knows but allows hore to buy it and there's a long history of electronic markets being successful. >> bob pisani, thank you what is the implication for bitcoin more broadly. >> it's a great step forward today it's not anything that will be a massive catalyst if you think about what bob talked about starbucks is an investor with them and the way this product is structured it that you go in with bitcoin, you pay wit. they'll hedge out any of the volatility which has been a big, you know, negative for bitcoin and they can then at the end of the day have cash so it's a great hedging mechan

of that will drive that a bit more of her work as a typical american on c word cme a bird if you don't that i never would approach. the clarinet some thought that he may oh no need to feel before all of that i don't know and when this forces the other to tunis the united within me and so me a lot of hopes you know and instead and then the buzz as in finance or any money to mr clinton a debt he needs against this backdrop of armed resistance and political pressure france agreed to come to the negotiating table the choice for tunisia was a simple one full independence or a political halfway house in which the french would retain key areas of influence like foreign affairs and defense these 2 options had the potential to cause a rift in china 01 nationalist leader. sort of compromise with the french his hardline political rivals would accept nothing less than complete independence. all the parties at the negotiating table also faced another problem what to do with the full largo you know wonders of our own. if you want to go with it if you. see you know covered it very well know that i'm

and to manage this risk, the world turns to cme group.ock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. >>> welcome back to "squawk on the street." rick santelli live on the floor with our first guess of the week ira, how does the fed get money back in the system in almost $300 billion in funding last week you're a primary dealer. i need to buy some securities. i get you some cash. seems like a good deal except for maybe it isn't because while we're buying on one hand, we need to be issuing with all the debt in the other. how is this going to work out? >> it's a very difficult situation. it is many prong there is a shortage of funds because of course of tax payment which i knew about and i think chris has really dealt with this very well with the regs with the change in the regs. >> banks can't have inventories. they're not a shock absorber anymore.

cme group can help you navigate risks and capture opportunities.global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ [upbeat♪action music] (pilot) we're going to be on the tarmac for another 45 minutes or so. . >>> time now for our etf spotlight with mike santoli. >> obviously have the revised ged numbers. but look within the consumer discretionary sector what types of groups are working and not working. it has not been across the board. xly is the consumer discretionary sector within it retail is kind of driving at the rth i should mention it has things like walmart in it which is technically consumer staples within the s&p system, but it shows you that domestic retail spending has been strong of course, xhb, home related, home building and home improvements hd is i think the second largest stock in the xly, but carz is the auto etf obviously been a lagger. gm and ford make up 4% of the xly. media is also -- used to be consumer discretionary not really anymore you're kind of left with this grab bag of

the cme on the opening we started to see circuit breakers being hit but considering the gravity of this attack the trading was fairly normal and we had a circuit breaker. things paused. there was a lot of action of the a lot of people covering shorts when they were in trouble. it was interesting to up watt market while president was speaking hey we're not ready to go to war right this minute. oil prices dipped down in the after-market. they seemed to creep back up. the possibility that oil prices could pull back, might be about 50/50 based on headlines that we get overnight. some of the early reports we're getting out of saudi arabia, it does seem to suggest that they are having some success getting some of the production facilities back online but that won't matter if they can't secure the site. so that will be another concern overnight. back to you. connell: phil, we'll bring in our market panel with more. dan heninger "wall street journal," gary b. smith, kadena group president, both fox news contributors. we saw a fairly calm day, the dow down only. we'll see whether we have militar

and to manage this risk, the world turns to cme group.ock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro. by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. >>> investors around the world are holding their breath for a u.s./china trade deal. how bad

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we are joined from the cme in chicago. what is it going to take to stabilize the price?rket needs to know the extent of the damage. are we talking that the refinery will get a sizable percentage. orit this week or this month six or seven weeks? that will be very important to the marketplace. you cannot take the oil out of the reserves. you have to get ships there and change all just tics. very hard. guy: in terms of how the market is pricing risk, has it been underpricing the risk of such an attack taking place and what happens now why she mark how much premium do need to build in. to: that is a hard question answer. now that little drones -- we don't know if they were a jet-powered car what came through, but the big question is why didn't the saudis not them out of the air? what is the premium? is it one dollar a barrel or $10 a barrel. the second question is -- what happened to the defense mechanism? guy: the global economy is in a tough place right now, with week weekend.ata over the it is a weekend. it is a big consumer of crude. is the global economy capable of taki

joining us from the cme, bob i a joining usb iaccino from past trading partners -- from path tradingmake a difference? bob: not in the very short-term, he handled his first press conference pretty well. he was never overly boisterous with rhetoric, so he was a calling force amongst opec -- he was a calming force amongst opec. i think the relationship between president trump and the leaders in saudi arabia will be a little more cozy. guy: bond yields around the world are backed up massively over the last few days. we are trading at 1.62% on the u.s. ten-year. what do you make of this move and the pace of it? bob: looking at that, combined with copper and where most of the bid in crude oil is coming most of the bid in crude oil is coming from, the market is perceiving that things are actually going forward in the trade talks, which we are not hearing a lot of rhetoric of, but hearing some pre-positive statements now. things like "meaningful progress" made earlier this morning. i think the market is seeing it that way. the probability of a 50 basis point rate cut by the u.s. fed has pre

cme group can help you navigate risks and capture opportunities.ies. cme group - how the world advances. ♪ ♪ ♪ i've been a caregiver for 20 years. no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. ♪ ♪ >> world leaders. this is "squawk box. >> the nasdaq market site, i'm joe kernen along with andrew ross sorkin and melissa lee. becky is off today can we do it can we get a screen behind us and pretend we're here >> has that ever been done. >> maybe we are in florida now. >> we could be in florida right now. we could be. >> you don't know. >> this way we could get carl icahn on the set >> yeah. >> that's right. >> and tuper >> that's right. the futures right now are indicated down about -- we're in times square i can tell you we are because elmo groped me on the way in futures are down -- >> i thought -- >> huh >> i thought you were going

the question now is whether cme or someone else comes in.es in,id than the london stock exchange management are in play properly. they go to the regulators. can the american buyer or the chinese buyer get around restrictions? this comes at a bad time for the london stock exchange management. fascinating to watch. vonnie: the london stock exchange itself up more than 6%. let me ask if there is a halo effect in terms of m&a in general and the capital markets and future trading. that hass is one issue been in a spate of positive issues over the last couple of weeks. more ipo activity coming on board. a little bit more trading activity following the august lull. more excitement in markets in general. this is one point. i do not know that m&a at-large will expand exponentially as a result of this. in general, you are starting to see some signs of risk tolerance come back after what was an extraordinary august. by the middle of august we were trading in extreme overbought levels on the 10 year treasury, incredible defensiveness embedded in u.s. eq

we'll see you then >> a ton of news today, we'll see you in a few let's get to the cme hey rick >> goodrl, all of this excitement about what's going on in the repot market, short term funding i look up on the board, i don't see anything out of the ordinary i see 179 in tens, lower remember last week we hit 190. how could there be so much excitement and nervousness yet general market seems to calm i will tell you how. even when it was drexel drexel,a going to explain to you what happens over the last 48 hours quickly. taxes due. we all have to pay taxes an ironic situation? when was tax day it was yesterday what happened last week? we had some options, how much were the option soptions? we h that came out to be $78 billion. the problem is that's only about 24 billion of security matured where i come from, that's called a $54 billion shortage now, next page dollar demand. how much contadodollar demand du this i when this occurs, you have a shortage of these and you will have buckets of securities and you have to pay taxes. so what happens? a repo market, you swap around securities and mak

rick santelli at the cme in chicago. good morning, rick. >> good morning, carl.nd volatility we saw in short-term funding, it really does underscore how all the world is fully leveraged, fully margined, fully packed, all the dollars fully accounted for, all the fx forwards to satisfy the future cash flows, so when you get the short-term squeezes, it starts to feed on itself all the way into forward rates and various investors globally that need to confer to dollars. it had settled done a bit, but most likely will set the stage for today's fed meeting. maybe in the statement, but should enter into the q & a. we have gone from data dependent to day trading to think any central banks will be preemptive is kind of scary just talk to any chart and see how his act rcuracy compared toe fed and nobody has a crystal ball friday, a big spike up in interest rates four day charts of two year, we have gone from 180 to 168. also remember we had some big low yield drops in early august. look for 10s they reached up to 190 if you open the chart up to the end of july, remember, w

let's head to the bond pits now, check in with rick santelli at the cme group in chicago good morning, david you know, one-week chart, i'm going to use all of them today for everything we're looking at because there has been a change. now, granted when you have an august the way we had with regard to humongous drops, not only domestically on the interest rate said, whether it's sovereigns or corporates, it's a global phenomenon. maybe we're not even leading this one look at one week of tens tens indeed are a bit higher do keep in mind we're at 1.47. the low closing yield going back three years plus is right around 1.43 so it isn't a huge bounce, but it's stabilizing now, look at one week. same time frame for ten year bund you can see the difference minus 60 how do you make minus .60 look terrific you start out at minus 0.73. indeed, it's a pretty good move. another reason to think that this is something significant is not only how equities have gained traction, which isn't a bad thing when you pair it with this move, but look at tens minus twos three or four basis points isn't a lot,

. >>> to the bond market now rick santelli has been tracking the action at the cme.s been an unusual week most people on this trading floor feel as though rates really have moved high er the last several sessions. of course not including today. look at the chart that enl compasses their lows we're about ten basis points off our worst levels and we're up a couple of bases points on the week all though unchanged on the day, but the reality is is in the big picture, it looks like we just had a bit it of a reversal off big drops in august it certainly doesn't seem as though there's any selling pressure on going same is true for 3a and tens it's been an issue wans ch here's a chart going back to the credit crisis. you can see how elevated those spreads are. the fascinating part is the simply has been going off. you figure 150 and 121 over. the long end paper and investment grade, it was around four and a quarter these companies keep on coming and with 17 trillion rates, the demand is huge back to you. zpl thanks very much have a great weekend come up, several automakers m

blue line futures, joins us from the cme. the fed didn't seem to answer many questions. a difficult journey trying to understand when exactly future rate cuts come in. how data dependent is the fed? what kind of questions are you asking? bill: i think that press conference went as good as it could. he didn't say a lot, and that's what the market needed. yet, the s&p and markets traded lower early right after the news. they didn't like the fact that the members don't see additional cuts. but here's the thing. i've been saying we are going to see this transition where the market goes from fed easing dependent to fat data dependent -- two fed data dependent. i put a note out for my clients, look for philly fed. if it beats today, the stock market is going to run higher. we are right near record highs, and i think we could make that transition of becoming more data dependent, and that is going to support the market making new record highs. guy: so that's equities taken care of. let's talk about what is happening in the oil market. we had a really bumpy week. no one is sure h

. >>> let's go to cme and rick santelli. >> i want to welcome johnny fine from goldman, sachs. joining middle east -- joining me the funding market is smaller than precrisis we do repos, buy securities, put cash in, also have record growing debt and deficits which means we have big issuance which pulls cash out are these funding issues going to keep recurring in your opinion? >> firstly, rick, i don't think these funding issues are real strains on capital markets activity i think they're largely technical in nature, well documented, well explained due to record treasury issuance, due to technical factors related to tax payments, and ultimately the fed stepped in and did what they're supposed to do in soothing markets, calming them down that's going to help markets get to quarter end i don't think we're signaling anything worse that will happen from here. i expect the fed will continue to proceed with these operations so long as there is signs of being stress in repo markets. >> on another front, on corporate debt, nonfinancial means everything outside of financial institutions

. >>> let's get over to the cme group, get the santelli exchange hey, rick. >> good morning, carl.etimes when you're really, really hungry, even if you're one of those people that work out, watch what you eat, but if it isn't convenient, sometimes junk food does the trick many times when you break with healthy foods to satisfy a rough hunger, you regret it because there's payback. same can be said for high yield or the junk food of the securities markets what i'm getting at here is that the european sector is so overgrown with negative rates that this past september through a couple of industrial or high yield junk deals, hugely oversubscribed for, this is something we need to monitor in the end, that hunger to find anything in this wilderness of negative rates, even high yield industrials, just goes to show us one of the key tenet s or strategies, that is to move investors into an area you deem them to play versus somewhere else, whether it is quantitative easing, you know, tina, there is no alternative, stocks become the investment de jure because central banks altered the credit

men -- alan joins us from the cme. what do you make of treasury market moves this month?treasuries have been on a tear for a lot of the wrong reasons, but obviously, what is driving that market is the yield. the yields around the world have been on a race to the bottom, so we are still a decent yield when you look at treasuries. but to take it out of that context, that really emphasizes the difference between the yield you can get in the treasury market and the yield you can get in the stock market. the s&p yield has actually surpassed treasuries, which is odd in itself, but you are going to see the money flow into the stock market, and i think it is all about the macro market right now. the s&p is 1% away from the all-time top, even after all of this instability. vonnie: what did you make of larry kudlow saying this morning that we are at square one with china? that doesn't bode well for equities, and yet they are continuing to rise, as you say. alan: i think we have baked in the worst case scenarios. we are in a trade war. who would have said five years ago that that wo