we have jonathan gardner from morgan stanley asia, from the morgan stanley offices in hong kong, good morning and thanks for coming on the program. you have been right here on markets in hong kong since last year. you initially said it was going to get worse, you lowered your target, what is next? our target for hang seng is 25,900, we did get quite close to that. that we canly sure pass a positive trajectory forward here with a high degree of certainty. there's some news coming out of the u.s. on trade. i think the trade issue is not the main reason why the hang seng and hong kong markets have done poorly this year. the main reason is the tightening of monetary policy in the u.s.. growthsame time, china's has been slowing. there's not much of a sign of the china growth slowdown abating. we did get close to the target but on the other hand i'm not sure we can plot a move to go substantially higher from here. it seems we have had all the bad news, all of the emerging-market bad news within the likes of turkey, argentina, etc. china has slowed down monetary policy, why did hong kong sin

morgan stanley may be taking the lead.merging as the advisor of choice, having earned about 60 mean dollars in fees, ranging but funding and that could be doubled in 2019 or early 2020. what do we know? colleagues and i dug into this and found that in helping delay palantir going public, morgan stanley i'd only deepen their relationship with palantir but came up with 60 mean dollars in extra fees, about the same amount that would be able to generate by taking it public. if the valuation state as it was back in 2015. emily: there is a question about the valuation, right? greg there are a lot of questions about the valuation. since the peak in 2015 it has been revalued multiple times by public private and investors including morgan stanley, who slashed their valuation after series of reductions down to $4.4 billion from a high of $23. so this is a massive and steady decline in value which would force -- would reduce the amount of fees should morgan stanley decide to take it public. , whichwhich one is it way is the wind blow

the rumor that is the wall street wants to offer the services bloomberg reports that morgan stanley isng to offer complex derivatives tied to bitcoin. gifting investors shin thetic exposure to the bitcoincoin contracts. they will be able to long or short the contracts. bloomberg is said the bank is set to launch once theory proven institutional client demand and after internal approval process has been done. we reached out to morgan stanley by the way, and they declined to comment on the story so no confirmation here. goldman sachs is exploring derivatives on bitcoin, called non-deliverable forwards you'll recall that business insider initially reported that goldman was backing off on the bitcoin trading operations but the goldman cfo refute d that at a recent tech crunch conference. >> i think one of the wonderful things about being at goldman sachs is we do get written about a lot. and i never thought i'd hear myself actually use this term tp but i'd really have to describe that as fake news. >> okay. so why are these firms exploring derivative products instead of trading bitcoin? it

paulson: morgan stanley's liquidity was leading away. john mack was on the phone with me sunday night. i was in my hotel room. i got on a plane and flew back to washington. john mack said, i do not know how long we will land.

we will bring to reactions from morgan stanley chief economist ellen zentner. how the financial crisis has impacted the investment landscape for secondary receipts with legendary pricing. interviewer, -- interview with mike schlott threat that hurricane florence poses. indeed, if you take a look at the major averages, we have a day of gains once again. ther of them, you can to nasdaq is performing the best, up three quarters of 1%. four straight gains for the s&p of time this period after hitting a record at the end of august and then going sideways. now we have another up leg. apple is largely responsible are somewhat responsible for the two day action. after itsl for apple product announcement to have more of a reaction on the for you generally gave positive reviews to the product presentation yesterday to the new pricing structure here. fully loaded top iphone with expanded memory and service plans could top $1800 for , tech is generally the best performing group of the s&p 500 today. it is not just tech here in the united states, but in asia as well. apple,

what is morgan stanley's vision of the implementation of a.i.?t you have to start with what we believe is a.i. proposition for financial advice. that is a trusted relationship between financial advisors and their clients. we have done analysis, and even in 2018, people still want to talk to their advisor. engagement is the number one driver. the question becomes how do we make that vizquelor better at what they do? how do we augment their processes and their capability to deliver the best vice to everybody this their book in an efficient way. artificial intelligence does very things that are specific in technology that help advisors do that in a very different way. >> how does the rise of a.i. impact hiring? do you need to hire less advisors in the future? more revenue? >> it makes us have to hire more data scientists, that is number one. there is an opportunity. we fundamentally disagree with the proposition that humans are going to go away as a result of the technology. i think that this concept of comparing the human versus the machine is just

we will talk to an expert from morgan stanley. that is next.is bloomberg. ♪ emily: i will bet has thrown its backing behind a platform for sharing code. alphabet has turned its backing behind a platform for sharing code. gitlab raised $100,000 in funding can gives it just over $1 billion. the customers include intel, alibaba and nasdaq. microsoft bought rival github in june. artificial intelligence is everywhere. in our cars, phones and now even our wealth management. those in the industry say a.i. tools are a game changer allowing for better synergy between clients and wealth managers. what does the future look like? here is the managing director and chief analytics and data officer for morgan stanley. you are in town to speak the an a.i. conference. what is morgan stanley's vision of the implementation of a.i.? >> first you have to start with what we believe is a.i. proposition for financial advice. that is a trusted relationship between financial advisors and their clients. we have done analysis, and even in 2018, people still want to talk t

paulson: morgan stanley's liquidity was leading away. john mack was on the phone with me sunday night. i was in my hotel room. i got on a plane and flew back to washington. john mack said, i do not know how long we will land. i flew back. i found myself standing up in the white house press room. i felt like if i said, guess what? there is not a single power in the united states of america disintegratinga bank, we cannot do it. morgan stanley would have gone down amy lee. that was my judgment. -- gone down immediately. that was my judgment. i put on my best face. [video clip] fedmmend the sec and the over the weekend. they put measures in place to reduce market stresses. >> that is a brief version of our program, marking the 10th anniversary of the 2008 financial crisis. you can see it tonight a on c-span. chair chuck grassley called a hearing for this monday to give judge kavanagh and a him ofho accuses sexually is a different high school to testify. her attorney is asking for a fbi investigation. eastern.00 you can listen with the free

morgan stanley and goldman sachs, both down nearly 10%. the way, saw a 17% decline in trading revenues last quarter. that was due to low volatility and the limits on the ability of wall street traders to profit from market bets it was the worst on the street that stock is now -- by the way the worse performing dow component this year. but banks have bigger problems put together flat yield curve within loan growth that's mostly flattish and higher deposit costs. and you have investors saying, there is better places to put my money right now. back to you, scott. >> thank you very much we'll trade it now >> it's interesting the stocks can't get you bid. >> they seem to foretell another story. i think theearnings profile is returned maybe not to prefinancial criticizes buts valuations are compelling. and i think higher salaries by the way don't mean suddenly the guys are having gangbuster businesses the business haves never been more efficient there is one-half the people working at the banks paying people who are performing makes sense to me.

there,removed as a top, morgan stanley, markets are worsening.oncern about memory chips in particular. to put things in perspective, we have to look at tech versus broader market in the so-called trump era. the white line, nasdaq composite, nasdaq 100 in blue tracking along with it and the s&p and the dow. if you look to the beginning of the bull market, similar outperformance continuing with the latest selloff. vonnie: thank you for that. shares of cbs bouncing back from initial decline, 1.3%. the board is in talks with les moonves to exit the company. the talks could result in the appointment of the coo as interim ceo. there may have been talks going on for some time. joining us now, richard greenfield of btig. will les moonves take the $100 million in stocks and run? it is impossible to know what ultimately happens but the outcome was all but assured. when you go to war with your majority shareholder, forgetting even layering on the risks and challenges with the allegations, he went to war with the controlling shareholder of the take awayd tri

you look at investments banks you mentioned goldman had the horrible strategic morgan stanley, if therebad news you could get a flush out of those and then kind of get a move back to 10 a in jp morgan you'll have the xlf back if that's the case zplo transports hitting the roo all-time high. check out best performers in the group process united air fedex and for noek carter braksen werth what are you looking at. >> fedex one things we know take the dow jones transports versuses industrial average process the industrial average hasn't made the new high and the transports have. in fact that chart shows you there. what i'm going to do is zoom in. and what you can see is that we have made the new high whereas just keeping in your mind's eye the dow is below the january beat what i-thinking in the area leading now find the lagging stock. to that end i want to talk about fedex. fedex having not made it to the high as distinct from the transportation average itself, i think this is an opportunity for a catch uptrade. so a couple ways to draw the lines, here is first of all how much it's lagged

they still have a time-out -- check that, morgan. stanley morgan hauls it in. and they will give him progress to the 21. >> brock: what a big-time throw, man. what guts from the walk-on. >> bob: the false start on nebraska will cost them a time-out. >> referee: false start. this foul is under one minute, which carry as ten-second runoff. nebraska chooses their third and final time-out in lieu of the runoff. >> brock: because that play was inbounds, that clock was going to run. you false start right there under a minute, ten-second runoff or you've got a time-out in your pocket, which nebraska does, you have to use it. now you've got no margin. >> bob: now you have to look to the end zone. >> brock: yep. >> bob: what a crucial penalty. >> brock: now you look at that call sheet. if i said shenault's got to leave this building getting his opportunity, so does morgan. and a beautiful job by bunch to buy time and just throw another beautiful pass high and away from morgan to go up and get it. this has to be morgan or spielman or they have to play central roles in su

banks hold on tim can i finish. >> you're right. >> no, but when you are looking at goldman, morgan stanley down 15, 16% from their january highs, we were looking before today at really no major u.s. banks that were up on the year other than jp morgan and bank of america. we have gotten nice moves after consolidations yet we see the broad moment consolidates at the all-time highs and the banks consolidates down five, six, seven or even 15%. to me it's a one-day action. we finally saw the 10-year break out. but we also is he obviously a flat yield curve as we go into the rate cycle we know we are getting at least one more rate increase, right, this year, possibly two i just don't see the banks really performing on a sustained basis. i don't see jp morgan in a meaningful way having tremendous up side in 2019. that being said, you did say it's the must own stock and acts better, jp morgan you said last week. >> final trade you piled on am i right. >> i got short tilray. >> we'll talk -- plents of time to talk about that let's let guy talk. >> run the show as if i'm not here go ahead go ahead,

flash memory, morgan stanley was saying, oversupplied and so forth. if you've got jpmorgan on the one side, morgan stanley on the other, complete disagreement about where they're going, if you're somebody like me, i'm saying, well, i think this will become a battleground stock, micron that is, steven, and i think you can buy it down here on the significant drops that we've seen >> yeah, but if you look at a name like apple -- >> i'm so glad you went there. >> -- it's not an expensive stock. it's cheap >> it's expensive relative to its historic valuation >> perhaps but it's not expensive related to the market. one point we haven't mentioned is that the s&p industries are changing some of their sectors the way the new communication service sector that they're introducing later this month some of this selling of tech may be related to people rebalanced in advance if they can't own as much of what will not be tech. >> are you talking about the xlk? >> yeah, they have to sell so that added it to the headline risk, oh, what's going on with tech names sump a

and now the fear in morgan stanley, are we going to make it i bring the board in >> how are you feelingsonally at this point >> i think the best way to describe it, i remember my wife came to the city, a sunday night, i'm not sure, and she was there and i was emotional and gave her a hug and said i think we're going to lose the firm >> hold on, hold on. you just did it like that? i assume this was much -- >> it was very emotional i wasn't bawling, i was tense and nervous and uptight and glassy-eyed. i walked into the bedroom, walked around a circle and came back out and said, i'd rather be doing this than living in north carolina fishing because the adrenaline rush was wild i've got to tell you, as tense as it was, i like a fight. we were in a fight to survive. >> well, it has now been ten years since the fall of lehman brothers speaking about the crisis. do not miss andrew's "crisis on wall street: the week that shook the world" right here on cnbc. jim, your reaction and, more importantly -- more importantly because we can debate the causes all we want, is this going to happen again? >

morgan stanley. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. >>> hi, pete najarian. all you have to do is submit your questions to cnbc.com/halftime. we're here for you >>> get us on twitter with the #askhalftime >>> all right. welcome back costco shares have rallied 45% in the past year wells fargo stepping to the sideline the analyst down grading it. maybe this is as good as it gets it's our call of the day steve, what do we do with it >> there are conflicting currents here. number one, i thought the stock was overvalued for a while so in terms of that, i agree with what he does. the

morgan stanley and goldman sachs -- goldman sachs have been the connect. there is m&a to think about. it is come tentative among the top three, morgan stanley, goldman sachs, and jpmorgan. at the same time, for goldman, they have to work on a lot of the consumer initiatives. david: and get trading back on track. >> i would say that to investment bankers at the top that goldman would be one of the biggest trading houses in the world. david: thank you for that report. now today's brief. let's start with you, david. a second day in a row. you have relocated from north carolina and south carolina. >> i'm in the eastern part of north carolina, but fail, 90 minutes inland from the coast. we are serving to see gusts of wind here and there. we are seeing the leaves blowing a lot harder. people are moving with more intensity to get where they are getting going. david: it went from a category 3 to a category 2. is there a less sense of urgency on the part of the people in the business is in getting ready? >> i am not seeing less urgency. looks like people are still

paulsen: morgan stanley's liquidity had been bleeding away. john mack was on the phone with me, and i was in my hotel room and got on the plane and flew back to washington. he was saying, i don't know how long we can live. the sharks are going to be all around us. myselfew back and found standing up in the white house press room, and i felt like if i said, guess what, there is not a single power the united states of america has that will save a disintegrating investment bank if we do not have the authority to do it, i think morgan stanley would have gone down immediately. and that was my judgment. to put as good a face on it as i possibly could. >> good afternoon, everyone. i hope you all had an enjoyable weekend. yeah, yeah. as you know, we are working through a difficult period in nowfinancial markets right as we work off some of the past excesses. but the american people can remade confident in the soundness and resilience of our financial system. i commend the sec and the fed for their work over the weekend and meeting the current challeng

. >> morgan stanley's liquidity had been bleeding away. john mack was on the phone with .e sunday night i was in my hotel room, got on the plane and flew back to washington and john was saying, i do not know how long will live. , you know, ik found myself standing up in the white house press -- pressroom. and i said, there is not a single power these united states of america has that will save the disintegrating investment bank. we did not have the authority to do it. i think morgan stanley would go immediately. i was my judgment. i tried to put as good a face on could. possibly good afternoon. hope you all had an enjoyable weekend. [laughter] well, as you know, we're working through a difficult time in our financial markets right now as we work off some of the past excesses. but the american people can remain confident in the resilience of our financial system. i commend the fcc and the fed for their work over the weekend with leaders of financial institutions around the world to meet current challenges and put measures in place to reduce

. >> morgan stanley's liquidity is bleeding away. john mack was on the phone with me sunday night.i was in my hotel room and got on the plane and flew back to washington. and john mack was saying i don't know how long we can live, the shorts are going to be all around us so i flew back and i got you know, i found myself standing up in the white house press room and i felt like if i said yes what, there's not a single power in the united states of america as that will save a disintegrating investment bank if we did not have the authority to do it. i think morgan stanley would have gone down immediately and that was my judgment so i tried to put as good a face on it as i possibly could. >> good afternoon everyoneand i hope you all had an enjoyable weekend . well, as you know we're working through a difficult period in our financial markets. as we work off some of the past excesses. but the american people can remain confident in this soundness and resilience of our financial system. i commend the fcc and the fans for their work over the weekend convening leaders of financial institut

stanley,es morgan chinese investment firm. billionto the near $25 here in the city this year.haad: saudi arabia's world fund investing more than $1 billion in lucid motors. they have already taken a stake in tesla. i don't know this is ultimately hedging bets. crucial funding for lucid to start making his first model in 2020. in arizona, beginning to produce their cars there. it is a vehicle set to start at $60,000. david: let's have a look at the car investment authority. china's biggest online lender. they are suggesting buying the minority stake at a cost of $1 billion. profitable for the first time last year. a deal could be announced in the next week. rishaad: looking at copper, having a rough time. slumping down due to this trade war between the united states and china. concerns of demand weighing on base metals ever since the start of this week, and generally speaking as well. david: heavy metals, if you would. our asian metals and mining's reporter david stringer is with us to talk about how big this impact would be from this latest escalation. is there a number figure

goldman sachs and morgan stanley are banks. >> that is a very interesting question.tting banks the marginal price of risk perhaps overly so between 04807. no one wants to go back to that again. you are making a separate point ,hat the broker-dealer model middle sized firms which were dynamic and very client focused but wholesale funded -- it wasn't jpmorgan it was morgan stanley. players for those firms. what has happened post crisis is the hyper which is done very well. i believe there is more room for the middle sized not all things to all people and you will see some of that. >> that is what you are doing now. trying to build a firm of that nature. >> many firms will try and occupy that space. we're hoping to expand. >> do you worry at all about the risk that is once again building sheets andnk balance private credit for example and purview ofeyond the regulators? >> the first thing i would point out is the banks are in good shape. there will still be debate around it. these are well run highly regulated, well-capitalized stable funded. when the banks are in good

but as you know, since you're morgan stanley, it's extraordinarily complex so i'm not aware enough to be able to delve into that complexity. i will say in general, i believe the field of innovative finance, impact investing is a growing one and we at rockefeller see a lot of opportunities for that type of finance to help support the growth of efforts and initiatives that can help achieve the sustainable goals. power, for example, we made these program related investments and these companies demonstrate the model. a couple of them have attracted genuine commercial investments in the next round to get to the next level of scale, because now this is a proven model. you know, they're able to offer a certain return, a based return that some investors found attractive and present themselves as a big part of the solution to ending poverty at the same time. i hope that's the kind of win-win you guys are working op. packaging those things and sending them to your investors who are looking for those opportunities. >> we have time for two more questions. questions. >> nicolette, i'm at universit

it's not the yen >> appreciate seeing you chief equity, global strategist at morgan stanley.he tech sector has driven more than half of the gains in the market this year we'll discuss if investors still have an appetite for tech or if it's a sign of things to come. >>> and tropical storm gordon is making its way across the gulf states a live report from the ground, how it's impacting the oil market next on "closing bell." are you taking the tissue test? yep, and my teeth are yellow. time for whitestrips. crest glamorous white whitestrips are the only ada-accepted whitening strips proven to be safe and effective. and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life. >>> welcome back tropical storm gordon making landfall late last night near the alabama/mississippi border cnbc's jackie deangelis is in gulfport, mississippi, with the latest on the storm and its impact jackie >> reporter: good afternoon to you, will. let me start with the ports. gulfport here in mississippi behind me you can see is fully operational. there's so

morgan stanley listerine® cleans virtually 100%. helping to prevent gum disease and bad breath. for 100. bring out the bold™ ♪ ♪ ♪ olly. >>> the search for a missing 6-year-old boy with autism is over. police in north carolina say they believe they found the body of maddux ritch. the little boy ran off from his father last week and vanished. >> what a horrible story. so many people were praying for him. >>> investigators are headed to the scene to a plane crash in the person pacific. the flight ended up in the sea and all 47 people onboard survived and were rescued by locals in boats. one person described terrified passengers in water up to their waists using the emergency exits to escape. no serious injuries were reported. >>> it was raw and emotional, but -- >> hilarious. >> for late-night caomics. >> i am okay, i got the coffee. thank you very much. i think i can proceed and sip on the coffee. >> all she needed was coffee? i was just watching and i needed a xanax. >> the chairman chose not to do this, and i think it's important to make sure you are properly introduced, and i

morgan stanley, cutting its target. 42%. japanese retail stocks, coming under pressure as well. many saying it will dent consumer spending. >> thank you very much. emerging markets. currencies to stocks. a negative own set by manufacturing data. slumpssouth africa had into recession. are managing editor. good morning. you are in dubai, i am in london. is the latest action a reminder it is not just idiosyncratic risk worrying people? the idiosyncratic stories make for interesting headlines. what is going on in turkey. fascinating. numbers thatring came out of the u.s. yesterday were a reminder of this steady drumbeat of u.s. interest rates. increase this month. maybe another in december. that is one is weighing on investors minds more than anything. that backdrop. easy money, set against these headlines. people running for the doors. >> we talked to a person, talking about a dollar liquidity story. how significant was the rand selloff? risks there. >> the rand is used as a proxy emergingment toward markets in general. it is liquid, easy to do that. what is interesting about the n

many wall street analysts including morgan stanley eventually upgraded their outlook for the averageelling price. morgan stanley now thinks average selling price in 2019 will be $793, up from $723 that apple reported in the june quarter of this year a lot of bullishness around these phones a lot of excitement from customers, it's interesting to see how many customers opt for these higher prices as opposed to the iphone xr which will be replaced in october of this year >> arjun, thank you for that report >>> multiple world heavyweight boxing champion anthony joshua will put his titles on the line in front of a crowd of 80,000 in wembley stadium tomorrow night to fight alexander povetkin. is he nervous from what you can see. >> you wouldn't think that to speak to him always so willing to speak to the media. always so willing to put forward an opinion and an idea but he does it in a different way to traditional boxers. we've seen trash talking from all sorts of boxers, not just the heavyweights floyd mayweather you havery gooi as well. we always had theater around boxing, but that is no

francine: thank you so much, robert feldman from morgan stanley.investment bank -- we will ask her about deleveraging entry -- and trade. this is bloomberg. ♪ francine: we are talking female participation in the workforce. prime minister shinzo all the -- shinzo abe credits the commission for the growth. forfinance officer resigned sexual harassment. robbie feldman of morgan stanley and george of deutsche bank are still with us. do they need to do more? >> there has been a great deal of progress in certain areas. we see female participation rates up significantly. higher than the united states in virtually every age group. that is huge. we need to see glass ceiling issues addressed. there is progress there, but it is slow. the government is trying to address it. we need to make more progress. one important thing, you mentioned how female participation has been so important and driving growth. -- in driving growth. yes, that is a good contribution, but we need productivity growth to contribute as well. tom: if i go when hundred 42 miles north to the

we had to focus on morgan stanley and goldman sachs, aig, the money markets. when i called him, he was terrific. he said listen, i knew you did everything you could. i was worried about you, don't worry about me. there are plenty of those, as i think back on it and i don't want to think back on all the different moments, but there are plenty of them. >> tim, your moment? tim: i remember that mix of responsibility of fear about whether or not we were going to be able to get our arms around it. it was easier when we decided whatever the next stage of escalation when he could choose to act. as if the hardest thing was sitting at the table with my wife in the morning with her reading about what we were doing and seeing on her face that mix of despair and doubt. [laughter] i believe she felt we were ethical people trying to do the right thing, but she looked at what we did and said, she was like, really? [laughter] of course, that was mirrored by what we faced across the country. that gap between what we thought was right, what we thought was the best available opt

that night -- morgan stanley's liquidity had been bleeding away. john mack was on the phone with me. sunday night i was in my hotel room. i got on the plane and flew back to washington. john mack was saying, i do not know how long we can live. got -- i found i myself down -- standing in the white house press room. i felt like if i had said, guess what, there is not a single power in the united states of america has that will save it from disintegrating the investment bank. i think morgan stanley would have gone down immediately. that was my judgment. put as good a face on it as a possibly could. , andther thing i say now it is pretty clear to me now looking back at it 10 years later. at that time, we were desperately trying to get this done. we came quite close. if we had had a buyer with the banks, i think we would have been in a situation where the said could've made it better loan. all of us would have rejoiced at that. i look at it now, i get back to something that then says about the -- the system was fragile. , aig, merrill lynch lehman going

mike wilson, morgan stanley. we can trade it. >> effectively what he's saying is the trade here almost regardless is emerging market weakness, probably everything is priced in and you buy it and the s&p at a certain point catches up that's what we've been talking about in terms of outcomes that's a potential outcome 2400 is 15% of so from here. i think you could absolutely see that >> i'm an em guy i just don't see it. if anything, i think there's a risk to the dollar going higher out of the differentials and i think the dollar could rally on quality so i worry about china the biggest waiting. china's not going to fall apart. they're the biggest waiting in the em >>> coming up, elon musk's little brother kimbal speaking to cnbc a few moments ago. what he said and didn't say about tesla that has all of wall street talking first it was constellation brands now it might be coca-cola trying to get a piece of the marijuana industry the next phase might surprise you though the cannabis king himself, mr. tim seymour, br

gets $30 per device, per year from app sales and music subscriptions any other offerings and morgan stanley is saying that whole services component is probably going to be about 60% of apple's revenue over the next five years. so this is a big shift for the company, even though we may not exactly feel it, other than to say, hey, these phones are bigger, melissa. melissa: i stopped carrying my ipad because i have a iphone x. >> that's right. melissa: you don't need it. i stopped using one product. 30 bucks, i spend a lot more than that with apple itunes and all that kind of stuff. >> me too. melissa: thank you. david: i still have my iphone 6 by the way. millions of americans bracing for what is likely to be a catastrophic hit on the southeastern coast. hurricane florence threatening to strike as a category 4 storm and it could be the costliest to ever hit the united states. fox news meteorologist adam klotz is in the weather center with the very latest. hi, adam. >> hey there. it's a big storm and it is continuing to strengthen. winds currently at 130 miles-an-hour. it is will get a categor

stocks so, for example, morgan stanley the u.s.for the neutral and a slight overweight and consider putting more money into europe which dramatically underperformed the u.s. this year and most of the world, most of the numbers have dramatically underperformed the u.s. and germany, japan and china down 16%. >> melissa, back to you. >> bob, thanks bob pisani the markets near all-time highs and what could go wrong? >> and the chief market strategist, tony dwyer is at the plaza with just that tony, take it away and it's interesting because people are talking about the september swoon. and that didn't work out, and they were so dramatically positive and up over 25% and the first two quarters and probably will be that way in the third quarter and constantly, what could go wrong for me as an intermediate term strategist and we get an inflation spike and interest rates tend to spike and when interest rate tends to spike and you get credit deterioration, and it's hard to have a credit crisis and there's no stress in the credit market and th

market or looking at making a barish >> if you look ats the components and investment bank and morgan stanley, if there is bad news that you can get a flush out of those and you can get a move back to 105 and jp morgan you will have the xlf back to 26 >>> switching gears, transports are hitting the road again checking out the best in the group, united air star and land star and fedex are all making it big for the month. what do you dpguys think >> that chart shows what i am going to do is zoom in and what you can see is that we have made the new high where it is just to keep in your mind's eyes that the dow is still below what i am thinking here in areas that's leading as of now find the lagging stock. to that end, i want to talk about fedex. fedex having not made it to the high as this thing from the transportation guide itself, this is an opportunity for a catch up train a couple of ways to draw the line here is first of all how much it lagged year to date, you can see the numbers clear. 9 verses up 2. that's the opportunity so the chart itself of fedex, no annotations are drawn by me. here

morgan stanley is warning the memory chip demand overall is dropping more than expected. while micron has been up 42% over the last 12 months, today it's falling nearly 9% at this hour, on pace for its largest percent drop since october 2015. lot of these companies getting slapped. you have applied materials, integra, all down and that is pulling the market down markedly. >>> let's get to china. it is locked and loaded as president trump could well drop the hammer at any point on another round of u.s. tariffs, the biggest ever. he's reportedly considering a tariff of as much as 25% on $200 billion of chinese imports. that, folks, is roughly 40% of all of what china exports to every country and it's anybody's guess when it could all come down but china says it is ready. it's going to threaten to slap its own tariffs not on $200 billion, but on $60 billion of u.s. goods, targeting specifically manufacturing components, chemicals and u.s.-made medical devices. they also mention liquefied natural gas. let us bring in ambassador terry miller, the head of international trade at

the chocolate maker -- morgan stanley had a report out.bags doing well in china, apparently. on the downside, a definite theme to movement on the downside and it is u.k. utilities. at the bottom, scottish and southern down by eight point 4% after a profit warning. the warmer weather is set to dent the profit. the energylso in space. national, still operates in the energy sector. that is what is going on at the individual stock level. let's get a bloomberg first word news update. in the u.s., hurricane florence is expanding on its relentless advance toward north carolina. oil prices have jumped in the face of what may be the most powerful hurricane to hit the state in 64 years. people have million been warned to leave the coast and local businesses have been shut down. florence and other tropical systems that will soon impact the united states and its territories. american people are my absolute highest priority. are sparing no expense. we are totally prepared. we are ready. we are as ready as a new one had -- anyone has ever been. >> the u

morgan stanley need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. 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. >>> welcome back to "the halftime report. it's been ten years since the collapse of lehman brothers and cnbc is taking a look at what's changed and what hasn't changed in the financial system and the global economy tomorrow andrew ross sorkin's new documentary "crisis on wall street -- the week that shook the world" premieres at 10:00 p.m. eastern here is jamie diamond speaking with andrew about the collapse of lehman brothers >>> was it clear to you in the aftermath that lehman brothers was next >> it was next in the queue. everyone knew that i thought lehman had time to fix their problems my view is that given time, given this notice you can raise capi

and that night, you know, morgan stanley's liquidity had been bleedingng away. john mack was on the phone with me sunday night. i was in my hotel room. i got on the plane and flew back to washington. and john mack whistling i don't know know how long we can live. the shorts will be all around us. so i flew back, and i got, you know, i found myself standing up in the white house press room, and i felt like if i said guess what, there's not a single power in the united states of america has that will save a disintegrating investment bank and we do not have the authority to that. i think morgan stanley would have gone down immediately. and that was my judgment. so i tried to put as good a face on it as i possibly could. the other thing i say now, and it's pretty clear to me now looking back at it, you know, ten years later, that at the time we were desperately trying to get this done. and we came quite close, and if we had a buyer with all the banks that are going to take the bad assets i think we would've been in a situation where the fed could made a bear stearns

we hear from the former chairman of morgan stanley -- morgan stanley. bloomberg. ♪ shery on in new york. haidi: i am haidi stroud-watts in sydney. president trump may have tweeted that he feels no pressure to strike a trade to the china but our next guest believes he is underestimating beijing's result. stephen roach is a former chairman of morgan stanley asia and now a senior fellow at yield. -- at yale. in terms of the media narrative or the trump camp narrative, this trade war is hurting beijing more than the u.s. trump taking a stab at the declines in u.s. stocks -- chinese stocks and other asset classes, is that a true distinction? stephen: i wrote a book a few the two-wayout relationship between the united states and china. and, called codependency china depends on u.s. consumers to provide external support to its export led the economy, but on the other hand, american consumers depend on $500 billion of low-cost chinese goods to make ends meet. savings short the u.s. economy need surplus savings from china to help fund its budget deficits, which

is not a ton of innovation i know some of the stuff is better but it's not huge innovation at morgan stanley says there are millions of high ponies older. but they're not growing year over year. help us understand at some point are going to start like losing units? >> some point they will. it's probably five plus years away when some form of a wearable comes out i think that was another take away today is ar is not advancing as fast as apple would like there needs to be some sort of wearable that's a different discussion. but in the current world of smartphone you should expect the iphone to be 0% 5% unit growth not exciting opinion the smauder sprrch o smartphone market is declining. fractional market gains. the reason is moves higher -- when you talked about the multiples earlier. -- i'm in melissa's camp that has multiples of higher than 20. if you take a approach of stable zero to 5% iphone unit growth and even isp improvements but stable asps that along along with services are enough for investors. even the big picture here, dan, is even in a great growth market i think they can grow th

morgan stanley. >>> this is a juul i'm told. i won't tell you yu u you who is to but the fda is considering banning them saying that they lure teens the fda commissioner is taking direct aim at juul the company aditi roy is joining us from san francisco with more on this story. >> i have one too, bill. they are very popular. fda commissioner says ecigarettes are a teenage epidemic around the world. he blames juul take a listen to what he said this morning >> there are probably steps they could do to perhaps shut down their online sigtes. and we are willing to step in. we think that they are one element of what it making the products appealing to you. >> and he says he believes many 18-year-olds are buying products online and reselling them 16-year-olds juul is intended for current adult smokers. no minor should ever try juul. our packaging includes a label that clearly states for adult smokers. juul's popularity has skyrocketed. the company is now you valued at $15 billion since being spun off just more than a year ago. their in

morgan stanley reinforcing their recommendation for a flattening u.s. yield curve, saying the market is mispricing the fed at both ends of the curve. are we going to see more flattening? >> probably not. probably the opposite. the big driver of the back end of the curve is inflation. inflation is likely to go up for two reasons. you heard jay powell. growth is on fire. that is inflationary. the other, oil prices. when you think of the impact of oil prices, they lead straight into higher inflation. that pushes 10 year yields much higher. manus: we will hear more. if trump has anything to do with it, it might be -- if we're going to see a turnaround in the curve, take us through that. where did tens go to? rise, we a december certainly get a number -- another couple in march and june next year. the pivot point is the 10 year past. years, noook at 10 reason it can't be 3.5% by the end of this year. nejra: given what you have said, the markets might be underpricing how fast and how many rate hikes we get, should we be reading more into the removal of accomm

morgan stanley, jpmorgan, you name it.lso the closure on the weekend will be costing hundreds of millions of dollars in lost revenue. let's flip this around and look at the property names listed here in hong kong and the chinese mainland. we saw property prices up on the weekend, 1.5% gain month over month. you take the average of 17 cities on the chinese mainland. that is prompting speculation policymakers will come in with tighter curves. coming up we will talk about exactly where we go from here with this property initiative. anyway, down 1.2%. just to give you a sense of which one is leading the declines. let's look at the biggest rags on the hang seng index. two apple-related shares popping. checked, let me have a look at that for you. yeah. every single stock here is down with this one exception, up half of 1%. just very close to session lows. 20 minutes into the session here monday. lots more coming up. this is bloomberg. ♪ ♪ paul: -- david: welcome back. let's look at stories that are trending on twitter. the super

draghi and others are coming toward the morgan stanley view.right. , my sense isecb use the central bank will this reinvestment policy quite effectively with some sort of operation twist to eventually suppressed long-term interest rates. other is to promise they will not hike for quite a while, the first and only rate hike we expect for next year is in october. that will still leave the key policy rate for the whole of 2019. tom: in thinking and reading for coming off of mark carney and ecb is what these guys do. they have a plan and they have a message. the idea is great, we want to raise rates, but, but but. is chairman powell going to join mario draghi with the but, but, but of 2019? bob: we think so. first, for the ecb, get out of our markets. 1%.rates from -.4% to we can absorb it. this is ridiculous. if you look at the fed, the fed has done the right thing. they have been raising rates for two when a half years. if you go back to the fourth quarter of 2015 and looked at were growth and inflation were then versus today, it was much lower.

phillips 66 partners was downgraded to underweight from equal weight at morgan stanley. the analyst cites the valuation. the price target $50. the stock up a fraction to 51.14. >>> still ahead a security breech atoo fac that's affecting about 50 million accounts. >>> a government shutdown as expected has been avoided. president trump signed the $850 spending bill keeping the government open through december 7th. the legislation funds the military and several civilian . agenci >>> facebook said today it has discovered a security breech that hasd affec almost 50 million of its accounts. the company is still investigating this issue and has yet to determine whether the accounts were semi or whether information was accessed. but facebook says the hackers exploid the so-called view-as feature which has been now fixed. >> i'm glad that we found this and that we were able to fix the vulnerability and secure the accounts. but it definitely is an issue that this happened in the first place. and i think that this underscores the attacks that our commune and our service face.he and

i think morgan stanley would have gone down immediately, and that was my judgment. best so, i tried to put as good a fake -- so, i tried to put as good a face on it as i possibly could. >> good afternoon, i hope you had an enjoyable weekend. as you know, we are working through a difficult part of our financial markets now as we work off some of our past excesses. but the american people can remain confident in the soundness and resilience of our financial system. commend the fcc and the fed for their work over the weekend, convening leaders from around the world to meet the current challenges and put measures in place to reduce market stresses. just a brief portion of our program marking the 10th anniversary of the 2008 financial crisis. you can see it tonight at 9:00 eastern on c-span. committee judiciary has postponed its scheduled vote of judge kavanaugh's nomination to the supreme court. chuck grassley has called a hearing this coming monday to give judge kavanaugh and christine blasey ford, who has accused the judge of sexually assaulting her in high school, to