lofty the valuations have gotten there.o you think that is an area of particular concern? amy: i actually think we are going to see the pendulum swing there in 2020. there is already considerable amount of talk in the market about good growth. profitable growth. sustainable growth. instead of growth at any cost. so i do think you will see those valuations moderate to some extent in the next year. lisa: does that mean a washout of some sort with companies folding up or consolidating into others? amy: no, not necessarily. i think it probably suggests you are going to have companies ocused more on keeping their heads down and realizing margins that result in profitable growth. lisa: i'm wondering, are there particular industries where you are completely avoiding the startups? amy: nothing that we are avoiding but we are certainly seeing a lot we are excited about. the categories that we comcast ventures will be focused on in 2020 are categories like ensure tech, real estate tech, enterprise automation, cybersecurity, and then

from a valuation perspective it's attractive.chasing when we consider how strong the market has been that supports the thesis of using a call spread. >> i like the tag team guys thank you. >>> up next car max getting a bump today on earnings one of the traders is smiling on that believe it or not we're going it hit the car lot when we come back. >>> "options action" sponsored by think or swim by td ameritrade ♪ ♪ ♪ ♪ (danny)'s voice) of course you don'te because you didn't!? your job isn't doing hard work... ...it's making them do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax time. quickbooks. backing you. (danny) after a long day of hard work... ...you have to do more work? (vo) automatically sort your expenses and save over 40 hours a month. (danny) every day you're nearly fried to a crisp, professionally! (vo) you earned it, we're here to make sure you get it. quickbooks. backing you. ♪ ♪ ♪ ♪ ♪ >>> all right welcome back to "options action. this is the part of the show whe

from a valuation perspective it's attractive.chasing when we consider how strong the market has been that supports the thesis of using a call spread. >> i like the tag team guys thank you. >>> up next car max getting a bump today on earnings with you one of the traders is smiling on that believe it or not. we're going it hit the car lot when we come back. joor ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ >>> "options action" sponsored by think or swim by td ameritrade >>> all right welcome back to "options action. this is the part of the show where we check in on one of our open trades. you remember last week mr. mike over here said car max was headed for a speed bump. >> this is a stock that generally speaking when it starts getting close to those upper levels of its valuation as it is right now and we can see this orange line is the average analyst price target threw time with the price underneath it this is the spread what we can see is that when these things converge very often what happens for the month or so after stock trades sideways or falls off

sonali: one reason you can think of is valuation. morgan stanley has pinned the first half of the year as the highest since 2000. equity valuations are high but leverage levels are also high. one way that private equity firms make a return is by delevering the companies they invest in. lisa: are we expecting to see a pickup in a number of lbo's next year? sonali: people are waiting for valuation to come down a little bit. only so long you can hold onto cash. everybody is looking at warren buffett, wanting him to spend more. until that happens, until people get comfortable with the debt markets, you'll not see it come back. lisa: even warren buffett tried to bid on a deal but got outbid by a private equity firm. he said, i don't feel comfortable at these valuations. sonali: apollo ended up buying the company, tech data. you are seeing people dive in because you cannot hold onto cash forever. at the same time, remember, kkr had a rumor about walgreens, a huge buyout. still a rumor. we will see if the big deals start coming back. lisa:

it's very hard to make a cogent argument about valuation.s is a stock that into earnings i think continues higher with that said, mr. clapton, i'm tapping in mike khouw. >> all right so i mean, let's think about the valuation for a second obviously we were talking about it the stock had a 90% run so far this year. and it's obviously very challenges to go out and commit new capital to stocks not only having such a profound move but trading at such a high multiple. the other thing is that right now options prices are actually also pretty high why is that? because we have earnings coming up next week the stock is implying a move of a little over 8% going out and buying call options, the idea we were talking about in starbucks not going to work so well here the other thing is in a situation like this there is obviously based on the price action, the valuation and based on the options premiums we know there are some high expectations maybe there is a way we can participate on further gains in the stock without risking a great deal this is what i

i don't mention valuation, because it's very hard to make a cogent argument about valuation, but thisk that inner earnings continues to go higher. that said, mr. clapton, tapping in mike khouw. >> yeah. think about the valuation for a second obviously just talking about the stock had a 90% run so far this year and it's obviously very challenging to go out and commit new capital. the stocks that not only have had such a profound move but also are trading at such a high multiple the other thing is, that right now options pricing are actually also pretty high why? earnings are coming up next week the stock imply a move a little over 8%. so going out and just buying call options, the idea we talked about in starbucks probably not working so well right here the other thing in a situation like this, obviously based on the price action, based on valuation, and based on options premiums we know there are very high expectations. maybe a way to participate on further gains in the stock without risking a great deal what i took a look at. trade the december, january 250 call spread. out of the mo

they take the capital and they take it at a very high valuation. it ultimately then has a high risk/reward game they're playing. and oftentimes what we're seeing it's just not working out. >> isn't this what this is all about here, though you are trying to grow your business >> the point adam makes, you see ceos, first-time ceos optimize for valuation over everythin else repeatedly, and it's like this classic mistake of, well, the way everything is measured out here is by valuation if i raise this much as valuation, then i'm better at this other thing you create all sorts of -- you are out way over your skis that causes all these unit economics problems or spending habits that are hard to correct later. i think adam is 100% right and not taking anything away, yahoo! japan and going back to that and before, the guys made bold and courageous decision after bold and courageous decision vision fund 2, we're seeing some of tresults of vision fund 1 and i'd question whether that's a good place to put so much money. >> if you see all that's happened, ther

recession more focused on valuation. these were hitting the stock market back then here's the thing let's look at the chart now. put them together and see that it just bounced off a couple of times from the up trend from the december lows. it's now resistance right below 90 or so that looks like a really constructive chart to me and so i just think about this with option premiums where they are, not too different than what mike was discussing. short dated in starbucks nearing 2019 lows. people who want to make directional bets in individual names like this, this is the way to do it with defined risk much like mike's trade today when starbucks is trading at $86.30 look out to january expiration and buy the january 87.50 call for $1.50 that breaks even at 89 bucks it's up 3% risking 2% of the stock price and you have about six weeks i think that even with the stock up 35% on the year which is pretty remarkable. it's outperforming the s&p, you could see a push back toward the highs into the end of the year or possibly the e

these valuations will only give you a 4 percent yield whereas the peers such as b.p. shell chevron all of those will give you an average of around about 5 and a half percent and then i again there's the questions around politics and whether the company can protect itself from incidences that we saw earlier in the year such as the attacks on their pipeline infrastructure so there are number of concerns but i think ultimately we will have more international investors go it in but i think some of these issues will need to be addressed hello thank you very much. that's it from me and the business team here and in the air if you want more goes the website dot com slash business also do all social media there on facebook and twitter if you don't already. use africa with any market is up next. a quick update on global markets. and for a much what you do nothing of the sofa. where i come from we have to fight for a free press i was born and raised in a military dictatorship with just one t.v. channel and if you are his favorites when official information has attorneys i have

talk about the impact from the stock straight ahead plus ripple makes a splash the jaw dropping valuation that crypto company locked in thanks for get going. and check out the mystery chart, sitting out the dow on the unending run but chart manafort carter worth thinks it's about to change. what is is the chart send in your guess we start with you guess to do new records. more records on wall street. stocks really in uncharted territory nearly every single day now. the s&p 500 closing out the best week since early september and fun fact, today was the biggest volume day of the year. >> stop. >> quad ruple but things can be scary at the top accounts are going up. and the question you ask yourself and us, how do i position myself as we enter the final trading days of the year and next year when guy it's not just about this year it's been a heck of a eight, nine-year run. a lot of people thinking do i need to protect myself a bit on our portfolio has done well. >> hi, brian. >> tim. >> how are you somebody sir, nice to see you. >> i think for a long time earlier in the decade they bought pro

what is your sense of what's going on the private market and why valuation got so extended?es have been low, lots and lots of capital flushing around, plenty of companies choosing to stay private longer and invest without the pressures to show profitability. the valuations run up and because these companies are not especially liquid, the time it takes to mark them down, as people start losing confidence takes longer, you have these continuous drops even though the public suddenly turns out they are 30% less valuable than investors thought. i think general public markets are the ultimate judge. once you go public, the truth of we told and you get your markup or your markdown every day or every second period and so what i'm saying about one of things is happening is companies whose business model pretend to be something that they are not targeting found out a little bit quicker. investors are no longer willing to say oh yeah, just because the ever really cool name, but she really look like a brief jury and pretend you're not a reach. and that sort of stuff is playing itself ou

in the evaluation in the uk, and the valuations in europe are better than the u.s. >> especially for companies apple operating out of the uk and are global. that's where you find the enormous amount of value with dividend stocks was 45% yields and positive your earnings-per-share growth. and that's a market would like. maria: now looks like this china deal will include china buying up to $50 billion of agricultural products. they're talking about preventing currency installation. and protective measures in place. i'm not sure i'm buying that right now. but what was your reaction to this so-called skinny deal that the u.s. and china agreed to? >> this i agree with you one 100%. you have to be highly skeptical it's like a player to be named later in sports. [laughter] it's not something you can actually bank on. what you can bank on is the fact that tariffs in my mind will be no worse than they have been. that this agricultural buy link will be stimulating to the u.s. economy and between now and the election, which is really what we're looking at perhaps there'll be no greater tension.

. >> a blowup sparking questions about valuations in the valley. >> co-working company wework will withdraw its filing to go public. >> deciding that the scrutiny directed toward him had become too much of a distraction. >> the resiliency of facebook, despite the backlash over big tech. >> i get that. i'm not the ideal messenger for this right now. >> we have work to do to build trust. >> what does the future hold as we head into 2020? a special edition of "halftime report" in san francisco, begins right now. >> and we welcome you to 1 market we have a great lineup today we're going to be joined exclusively in a little while by snowflake chairman and ceo frank slootman as he prepares to take the company public in the year ahead. frederick kerrest, the co-founder of okta, that stock up more than 90% this year we're joined by brad gerstner who helped us take stock of what's happening in the valley throughout the year. deirdre bosa is with us, covered the ipo and venture capital markets closely as anybody it's great to have both of you here so brad, interesting year to say the least. uber, lyf

the last two years we've basically seen valuations stay still. on the earlier slide, valuations were higher than they are now. we may not see it in tech, but we can see it pick up in energy. oil prices are actually up versus last year even though the energy sector has been so weak and in the industrials if we are to see a global stability and an easing of trade tensions, the industrial should see some better numbers going forward. >> we actually have jim cramer, "mad money" host he wants in on this conversation happy holidays, jim. i don't know what you're doing today, but -- >> i'll tell you what i'm doing. i'm watching your show hello, barbara duran happy holidays to you. >> happy holidays to you. >> i think this discussion is great, because what i really see is a secular growth theme that is taking over technology is being buoyed by 5g and the secular move transcends anything and we see that and the other thing is the fact that i need to go into the pepsi and procter & gamble world so these are great themes. meeting income and 5g and that's wh

valuations are highly.are at a better value than bonds given the interest rates but we need a lot of things to go right. we need a trade deal to get done. we need central banks to continue to be accommodative. it is not a guarantee that all of those things will happen. anna: not a guarantee that we will get those things under the christmas tree. our live blog question is how far can stocks rise? if we get there, is there a level you have in mind that starts to disrupt the flow in stocks? u.s., yieldshe have already come down a bit. i don't think if we moved to 2% that that will be drastic. that is still very low. when you think about it relative to september 2018, it was at two and a bit. what about recession risk going into 2020? you are not too concerned. around zero,ering this has been a long cycle. more recently, we have seen it backing up towards zero again and away from the recessionary suggestive level. we probably worry the most about consumer spending falling off because that is what has held up th

ice cream business to a joint venture for $4 billion valuation.ber bloomberg radio is live on your mobile device. this is bloomberg. ♪ matt: welcome back to the market open, just about 45 minutes away from the start of cash trading in europe and across the continent. i am in frankfurt for the ecb meeting, christine lagarde's first meeting as president of the european central bank. for the first word news, we go to annabelle droulers in hong kong. annabelle: thanks, matt. the federal reserve expects to stay on the sidelines in 2020. last night, the fomc kept interest rates on hold, forecasting no changes through next year's presidential election. chairman jerome powell says current policy will not remain appropriate unless the outlook changes. another rate cut is looming in turkey. president erdogan saying rates will be in single digits in 2020. most analysts disagree with his view that lower powering costs brings down inflation, but most in a bloomberg survey see the policy continuing. brazil has lowered its benchmark rate by half a percentage poi

have you to be disciplined on valuation. i don't go for high flyers amazon is the exception for me i don't support. there's no way to support it. >> with the facebook when you think about execution strategy, management team, can you disagree with how they think about things, the ability to monetize the way they have the way they have grown via acquisition and the way they know how to make money. >> it's 20 times growing 25%. >> there you go. >> that's a great risk reward. >> scott, there's my answer, long-wind long-winded. >> another name, netflix, soaring in europe, asia, middle east, up in the past two months up 17% this year it's another laggard do we -- disney gets so much love of late netflix gets passed over in most of the conversations you have these days. >> no, they don't. people are overly zealous thinking someone is going to sell it. >> people are still going to netflix and chill. when they put 90% of their growth out of the united states what they are trying to do -- i don't mean to speak for the coe. >> what the

five questions about f.a.n.g., what they reveal about valuat n valuations, growth, and one stock to own in the group. a new call on tesla naming it a must own stock we'll debate this battleground stock in our call of the day the investment committee is ready to go. "the halftime report" starts right now. >>> let's get right to it. good to have you with us our investment economy joe terranova, stephanie link, josh brown, pete najarian we begin with the sell-off the dmencomments from trump tha might be better to wait until after the 2020 election to make a deal with china. more on the words that are wrecking stocks today. eamon? >> reporter: scott, the president traveling in london today, began the morning by suggesting he doesn't really have any particular time lining for completing that china trade deal he announced he had gotten to a phase one deal with the chinese back in october and said it was all but complete and needed to be papered now the president is suggesting he might want to wait until after the november 2020 election, presidential election here in the united states to do th

it has gone from being a depressed valuation stock to a premium valuation stock. so here we go. this is one year ago it was trading below 11 times earnings, or just about 11 times earnings at the low in january earnings estimates have stayed exactly the same since january 31st of this year to now but now we're up around 22 it's doubled the valuation the dividend yield, gone from above 2%, down towards 1%. clearly, people are just deciding that apple's earnings stream is worth much more of a premium. correct or not, that's been the dynamic. finally, i want to take a look at this etf that tracks cyclical stocks over defensive stocks this is long cyclical stocks and short part of the portfolio in defensive. so this is just the outperformance of cyclicals. it is going out at a new high. it shows you the market last year was handicapping a slowdown in growth at the end of the year right now the market is pacing at a pretty good revival of growth pch how mu growth how much is left for the actual stock market >> great charts to put these record runs into context the four major averages

you had the ability to recover from the valuations, recession pricing. i agree monetary policy was the trigger here it was common to see equity and bonds go together. you've seen the same in 2016 you've seen the same in the mid-90s with the midcycle adjustment from here, you are right that it will come back to growth because we have probably seen most of what monetary policy can do with the midcycle narrative from here, with ee are going ba where we are buffering money next year will be either inflation, equities up or frustration on this rotation and you'll get the bond market value a bit. we are leaning more toward the contracted scenario. to just do that, it masks the diverted we've seen recently between the cyclical sectors and the major rotation that has come together what is your view in 2020 first on investor positioning and how much of the trade has carried out and whether that will continue to next year. >> a very good point the current year, you've had real yields be the key driver. you had that fall from 100 basis points to zero in the summer

and i think the valuation is no longer kind of a no brainer. still a top-ten position but it's prudent when you make money to actually take some off. >> i think she's got a point i do the only thing i'm going to say is i think nobody really wants to te to sell it here. and the fear of missing out. anybody piling into the markets, money gets directed to this name i'm not talking you out of it. steph, there's nothing wrong with taking a gain. >> it's already done. >> you know, i don't like it when we criticize each other for you sold something that's up, you know, 200% but the point i'm saying -- >> i was buying 170 when it fell two, three quarters ago. >> here's the point i'm making is i will follow you but i'm highly likely to do that in january after december 31st. >> i'm not that good i just know i've made a lot of money. and i think it's important to take some money off the table. >> you know, this time last year, you could have bought it at 145, 150. >> i bought it at 170. that's not so bad. >> are you done? are you done >> please, maestro,

best valuation levels. that the economy will still grow. small caps, especially the value side, that will be a pretty good formula for outperforming the market next year. romaine: the closing bell here, down about a percentage point or so across the board for the three major averages. really the only areas in green are consumer staples, energy, and of course a lot of those metal stocks. the issues going on with steel. scarlet: back-to-back declines for the s&p 500. this is a 0.9% drop for the s&p 500. we are so close to record highs and the market has had such an incredible run. joe: blistering speed up, and even this, not even a 1% down day. pretty mild in the context. romaine: let's dive into the action with our markets reporters. taylor: i will take a look at a chart here i am showing which is looking at the s&p 500 for the month of december. i know it is only the first day of trading in december. we are off about 0.8%. this comes after a very good november in which we had our best month since june. if you think about historically where

are indeed correct with your statement which is smart about the valuation has materially appreciatedd target price is $300 >> jim, give me your analysis here when i look at it, i want to know what it means that apple has been able to do this with wearables, talking specifically about watch and air pods as you mention, they're huge products apple is selling out yet there's practically no competitor that's got anything close to it. look at google, samsung, they have a wide open landscape in android compatible wearables, but there's nothing. how can that be? are they technologically blind google is buying fitbit, trying to catch up. how could none of them fill this void >> well, your comments are spot on and so accurate, it is amazing but it is important to note when apple comes to market, it's really about a premium experience all of the other competing products and companies out there came to market before apple. however, they failed to generate mass adoption. so when you think about air pods and air pods pro, they work very well for a consumer experience that's premium people are wil

it's hard to buy or sell the stock based on a valuation call.valued, so to speak but going forward, you look at it like, when people -- the issue in a sell-off today it's like, is it at a attractive valuation? they don't have much in the way of earnings to speak of. where does the support come in you have to look to the charts here but these kind of stocks are -- when they go up, they go up like crazy as roku did, but when they go down, they don't seem to have much of a bottom >> down 14% on the day is this a good entry point for you >> i think roku has an interesting product. but it's not a name we're involved in and i would rather stick with some of the more established players in streaming, like, say, a disney >> roku up 350% year-to-date >> we've got 34 minutes left of the session. the dow is down 241 points we're slipping back towards the session slows. coming up, polls looking at a 5g play >>> and apple gearing up for an event next hour here in new york city focused on its favorite apps and games of 2019 we'll preview what to expect in tod

and he basically said we're looking for a valuation of 2 trillion dollars that's the largest valuation of all time for any company and that's of those for the whole company they were never talking about selling any more than 5 percent so it seems like they're looking to raise $100000000000.00 which is a large amount but not that much so the quip but the question is really is a ram co valued at 2 trillion dollars what are their oil reserves which is really tends to be the bulk of what makes up an oil company valuation now we're also has a lot of other assets around the world not oil not upstream oil assets but they own shares in refineries in china in south korea they own oil storage facilities in japan that they own the largest oil refinery in the united states and they also have a lot of research and development things going on they've also got petro chemical and oil refineries in saudi arabia so the company is worth more than what they dig out of the ground and sell but does that get us to 2 trillion dollars the answer also depends on what the price of oil is at the time of the i.p.o

european valuations by and large are average.n if you have modest growth on both sides and modest gains, i think the fact that you would assume to see some normalization of some evaluations on the u.s. on a relative basis could be a drag compared to what we see out of europe. >> on that point, part of the reason that the u.s. has remained such an attract i have investment region is because of the share buybacks and dividends. the last decade, the s&p 500 have seen companies return nearly 13 trillion dollars worth of to shareholders is that going to continue into 2020 are we going to see that continue to pull in investors, that return to shareholders? >> i think we would expect it to continue i think the question is really how important is it? if you at least look today at what forecasts are for earnings growth next year in the u.s., it's around 10%. that's eps growth. if you look at net income growth, it's about 8%. you only have a 2% gap due to share buyback. it is a factor and that matters much more when growth is near zero as

aramco tosaudi trillion dollars valuation. the iea was here today to offer a reality check on that euphoria. as you said, it is a warning to the market to say even if opec do all the things they said they are going to do, that is still not going to be enough. there will still be too much oil in the market. factorre's a second here, the opec+ does not have a great track record when it comes to doing what they say they are going to do. at that to the mix and may be you should be even more bearish. so yes, the oil price today is more or less flat. it is a worry particularly for saudi arabia. the oil price now is somewhere between 25 and 35 -- between $25 and $30 less than where they needed to be. aramco did hit to trillion $2 trillionhit valuation today. of course, the higher the valuation, the less likely it is there going to be able to do an international listing. right now the market is looking at it. the volumes are up on aramco. the risk selling in the market, which we didn't see yesterday, we will see that more likely to mo

i think our governing theme is to try and find high quality names at reasonable valuations.hat's generally easier to do in hardware, but you have to be very selective. dell was a name that screened positively on the hardware side check point is a name that screens attractively. for us it's really and quality is a function of confidence in earnings and earnings and revenue growth visibility. so, you know, again, when you're in an environment where valuations are higher, you want to have high conviction in particular if you're going to pay up in good earnings visibility and quality. and so that's really our message rather than you need to overweight specific subsectors. >> you've been honest and candid all year long as the stories evolved. we appreciate your guidance as always. we'll see you soon. >> thanks for having me. >> when we return, the ftc going after facebook ahead of talks it's looking to merge its social media apps. former facebook policy adviser joins us to discuss. squawk alley's back after this. don't go away. hnson is a baby company. but we're also a company th

let's see what they do the valuation has come down. at 19 times. >> i was going to say it almost feels it might be in that zone between the growth and value people had the hyper growth folks going for those double digit comps and not yet super cheap enough but i agree expectations seem low. >> mike, in terms of the broader markets with three and a half minutes lift, s&p higher, dow lower, holding on to yesterday >> idling and digesting. pretty much an even breakdown in terms of up and down stocks. today slightly to the positive did not hold on to the grains. if you look at a little bit of sector stuff, two day chart of the s&p 500 against a proxy for fang, that shows fang underperformance, i think it's rotation out of those stocks jpmorgan another all time high today. hard to get too bearish when that's the situation >> kids like mike's analysis of the internals of the markets mike, before we get to bonds, bond market match up against the banks. >> it has. it's been constructive for the banks. >> you talked about the vix. it had speck

with valuation where it is, there is no margin for error.m: i want to talk about the idea of a correction. it seems it is impossible to go down 10% and maybe for a blink we go down 18%. ies is if we get to enough down, there will be panic selling that takes us down further. do you buy that idea? abby: let's add to the panic selling, the whole concept of the structure of the market which has become increasingly dependent on etf's and other things which are index related, especially market cap waited indices. declinesare n of the sort we saw in november and december 2018, that takes on a life of its own because the stocks that are most heavily sold are the most liquid stocks and the stocks that have performed the best. i think in 2020, investors need to be thinking about the stocks that did not have good price momentum thus far, but offer a good value. what we are seeing in the equity market right now is all this unprecedented spread in p.e. ratios. there is a group of stocks with p.e.'s very high but there are number of stocks on the low side

. >> valuations are tight. valuations are tight. high-yield -- credit valuations are tight.igh-yield valuations are low. ccc's have come back. there will be some supply. it will not be this easy forever. jonathan: back with me around the table is kathy jones, george bory, jim bianco. george, what a way to end the year, ccc's, massive rallies, 12 straight days of gains. why? george: across high-yield, you are pulling in 2020 returns into 2019. i think there is a year-end squeeze going on as people scramble. we just talked about yields in general, looking for that recovery trade. where can i get the incremental yield, where can i get the incremental return, how can i set myself up for next year? we have seen a meaningful squeeze into the market. ccc's, if you look at that universe, there are about 10 companies that are up anywhere from 10% to 20% in returns. in just the last month. jonathan: that concentrated. george: just in the last month. that is the interesting thing about ccc's, it is very idiosyncratic. it is very company specific. it is not an asset class in and of itse

based on valuations, we will have the opportunity to diversify further on a global basis.uld be good for the global markets. we are going to see more employers begin to train particularly in u.s. corporations but globally, really disappeared today, we expect they are going to come back in fashion. with that, we think that will help the consumer too? >> how much can the s&p go higher >> our target is 3,500 we think it is conservative and likely to be exceeded next year if these things really happen. we do think first quarter, we can see a speed bump this year, globally, without a doubt, it will be an opportunity first quarter there will be an opportunity for impatient traders to find a catalyst to justify selling without feeling fomo or fear of missing out. >> valuations are the highest we have seen in years, do valuations concern you >> certainly will concern us if we don't get the improvement in global trade we would see an interruption to the expansion we've seen in the u.s. driven by the consumer. that said, we think we are going to get a break here. we'll likely see re

history, fixed income is the greater anomaly equity valuations in the u.s.ory point to somewhat below average long-term returns. nothing like where we were in 1999 and certainly not the opportunity that we had ten years ago when markets were deeply depressed and no one wanted to invest now, if you look at fixed income, though, the global yield including emerging markets, including high yield debts, sub investment grade just 1.6% the u.s. higher, so we can take a higher position, particularly in u.s. municipal bonds for those investors that can take advantage of that tax situation, but overall, we're under weight fixed income, we're overweight global equities because of these relative valuations and the fact is that we don't believe we're at the end of an economic expansion. >> all right still room to run. thank you very much for joining us. >> my pleasure thank you weren't appreciate that. >>> we'll be asking that question all week -- "is there room to run" right here on "worldwide exchange. tomorrow, we investigate technology >>> coming up on deck for the s

alix: is the valuation going to be high? just get a lot of bids? mandeep: there was.anies were geographically well-positioned, they will probably hit two to five times multiples. for the u.s. market, grubhub multiples have already come down. they will not get a high premium. alix: mandeep singh, thank you so much. you should read his stuff on the terminal. good analysis. investors and some of the largest ipos are not that happy this year. u.s. listings gained just 11% on average and tech ipos have done worse. denise and mike are still with me. mike, when you hear that, is froth is being taken out of the market? is it a good sign or a bad sign? mike: certainly we work was assigned of the froth getting taken out of the market. investors are starting to pay attention to value. as a value investor, it has been a frustrating three years. it has not been since september 1 we had any kind of recognition that valuation matters. kind of like playing a football game without any rules when you're not paying any attention to valuation. it is kind of fun, but it makes things out o

leanne: saudi aramco might hit the much touted valuation of $2 trillion today.rket bids point to the move. the stock rose to the 10% limit yesterday on the first day of trading. $2 trillion was a value much touted by saudi arabia before the ipo, but it eventually had to settle for a lower offering as international interest waned. predictions of another 15 deadly crashes over 45 years, from an faa risk assessment into the boeing 737 max released by congress, put together after the first of the two deadly crashes that claimed over 300 lives. faa administrators said officials acted in good faith by not grounding the plane until after the second fatal accident. itsconnect financial cut ipo target nearly in half, one of several businesses banked by softbank. instead of raising over $500 million, it is now targeting around $250 million. they opted for a new york listing despite u.s.-china tensions. that's your bloomberg business flash. matt: thanks very much. your business flash. let's focus on today's biggest corporate story. nestle selling its u.s. ice cream busines

and also multiple valuation support.k that's a big part of what's actually going on and yes, trade's an issue. if we suddenly slap on more tariffs, than everybody is going to -- you know, the market will go down until it sorts out how meaningful is this so i think it's really about the fed cuts >> all right it's a key point meantime, boeing out with new delivery numbers let's get over to phil lebeau. hey, phil. >> a little bit of good news for boeing in the november delivery numbers or orders numbers, i should point out because the 737 max, really, for most of the year, they've had no substantial orders a few here, a few there, but nothing substantial well in november they had 30 planes that were the result of two firm orders. overall for november, commercial airplanes was a net positive 11 planes for boeing, but still for the year, they're at negative 84 check out this chart right now boeing is on pace to have its fewest deliveries since 2008 and that's when there was a machinist strike, which is the reason they didn't