Transcripts For CNBC Squawk Box 20240714

December 2008. Brent had its best day since collecting data. You are still looking at wti at 61. 81 and present at 65. 85 in asia, the knnikkei up about 3 points this morning, some early trading in europe, fairly muted there. Ftse slightly higher in france, the cac slightly down, so is the dax. Check out treasury yields, the soyear is now yielding 1. 833 the 30 year a little lower but well above what weve seen in recent months. Lets talk about the corporate story of the morning wework now delaying its ipo. Surprise but says it will still go public by the end of the year the company has been prepared for its investor road show which was supposed to take place today. But made the decision last night to stand down. This reportedly over concerns that there is not enough stock mark et investors. Work reporting they will not go public until at least october at the earliest adam neumann wants to get through the jewish holidays before he considers the next steps. Because that is what is keeping the interest down . I think in terms of the calendar when you might begin the process. The companys valuation has been slashed by as much as 37 billion since its first ipo filing the biggest investor has been pushing to shelf the deal entirely saying well hold a Company Webcast for employees this morning. My understanding is that softbank and wework has come to some kind of compromise. I dont know if there were additional ratchets or monies or softbank was going to buy part of it. They wanted to shelf it but do they want to put more of their own money in it. My understanding is they want to put more in the issue is not getting money from softbank but that they couldnt get enough from public investors. After smile direct club which was a disappointment and Everything Else, i think there is a few that for better or worse, there is not the appetite out there. How much guests have we had on the last couple of weeks how much guests have panned it or have we had on is this a High Water Mark i think it has to go public to be a High Water Mark. I think it will be a very low water mark im trying to have human to Human Interaction today. What does your horoscope say . It does say not to be cynical. So amid all of the crap and everything going on, seriously thats the latest book. His points are, put down the cell phone interact, look at people in line. When you are standing in line, it will be hard. Go to a movie, wherever you happen to be and you are waiting. Talk about them and ask a bunch of questions and look interested lean in and look in their eyes he said he learned that from oprah and others. If somebody did that to me, i would leave. If i do it, they would think this guy is a creapster. Hes a hollywood type. Hes highly successful. Yes, he is. Im trying to do it . Arent i insincerely you, by the way, have not had cynical comments yourself at all about wework i was thinking im on fast money. I share this work space. We have our own little version of wework. We have too much capacity in everything cars, houses i dont see you sharing in any of those things anytime soon air barc b was a problem i dont want to sleep in somebodys dirty sheet you know what dust is dust is skin so you are sleeping in peoples skin that happens at hotels as well inbev, the Company Plans to raise up to 4. 8 billion and will offer 1. 3 billion shares at a share of 27 to 30 hong kong dollars each valued at 45. 5 to 50. 7 billion. It could sell up to 40 more shares the company will begin taking orders for that tomorrow some new developments on the attack that took place in saudi arabia over the weekend. Nbc news says american intelligence says that the strikes originated from iran in response to the attacks, maybe a little bit of softening to comments. Well go now to riyadh with the latest hello again, hadley. Reporter good morning. If anything was really needed to show you how much legs this story will have. President trump suggesting that secretary of state mike pompeo could be in riyadh within days and the Kings Council has been meeting. We heard this morning, there will be a press conference around 8 00 p. M. Local time with officials from aramco, and oil minister the question will be not just the obvious ones about output. Weve been hearing a lot of reports about saudi aramco contacting customers with warnings that theyll not be able to fulfill their october commitments and questions about what kind of crude they have in reserve and that they would offer as replacements. So a lot of questions later today. Well head off there in a few minutes. Saudi arabia foreign minister releasing a word what is going on here. Suggesting that the weapons used in the attacks were iranian weapons. They did stop short unlike the president and unlike mike pompeo of blaming this squarely on tehran and that saudis dont seem quite ready to put blame for the attacks yet. Well wait for that nothing major in the works at this point from anywhere thank you. Well check back later this morning. Energy majors also responding to the attacks and impact on gleobal production. Here is chevr os ceo. I will tell you saudi aramco is a Reputable Company there are still damage assessments be eing done, signs they may come back on line fairly soon. That is the question, for how long will this supply be off the market there are some areas that will come in perhaps more quickly for the ramp up from the United States and showing that risks in the Energy Sector are real and markets had grown comfortable with those risks coming up, it is fed week we are just days away from the feds decision well tell you what to expect from fed chair jay powell. Reminder that delivering alpha investor summit is back in new york we have a big lineup including one on one interview with mike pence. You can register for tickets now. As we head to break, a look at the biggest premarket winners and losers on the dow. We think you would really shine in the aflac program. Aflac coach saban we have Health Insurance. Did Health Insurance pay for everything . No, we still have bills. Aflac gives you money directly to help with those. Aflac and your deductibles, knee brace, whatever you choose. Aflac sounds like a winner. Umhum. Umhum. We try. Get help with expenses Health Insurance doesnt cover. Get to know us at. Duck aflac dot com for farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. The feds twoday meeting kicks off today. The latest results of the survey more on what he found. Good morning. 43 strategists polled. They are pretty much right about the next stuff 100 see a 25 basis point rate cut. 92 say the next cut would be in december note that is only one more after this one 1. 56 is the average fund rate seen in 2020 another one dialled in for sometime next year or a debate about how many 51 say the fed should cut some of those say the fed should cut by 50 basis points the probability this morning have change. 44 say the fed should not do anything 25 of the reason is put on the trade war. We took a couple of the reasons out. People do not believe that the market is reacting to pressure from President Trump just 8 of the reason of the rate cut chief market Economist Says while the fed does not want to underwrite the john going trade war. We look for four cuts in 2019 completely unwinding the four rate increases in 2018 saying Economic Data and conditions are not exactly screaming for cuts but someone at 1600 pennsylvania avenue sure is ive been thinking about what weve been hearing the past week or two, after the last couple of times we heard from the fed, we saw the market sell off. It was expecting everything it got. If you have 100 already expecting a 25 rate cut and 92 expecting a cut next time they meet in december, it seems like they could be setting themselves up for the same condition. They expect it will happen anything in the commentary that would make it seem like we are not in the rate cut. That old adjustment, that stuff matters in the day to day and the total easing in the economy. If you were to show a chart of the 10year, which youve completely forgotten was what in november 2018. Weve all forgotten this all up near 3 do you remember that no, i dont guys in the back, if could you put up that 10year chart going back to september, november last year. It was up there a lot of easing that has come through the mortgage market, fixed income, bond market. All these easing the fed has to meet the easing it has been delivered by the market if you were jay powell, you have a choice. Im either doing what trump wanted me to do or im acknowledging you as right you could come back and say, well you caused it yourself with your trade wars. Why are there even four people at the table when you could have the conversation with yourself you are right. Thats exactly what i would respond. Because i know you. Im thinking wow, i dont know which is worse, admitting i was succumbing to the pressure to President Trump admitting you are right but then i would say, well, when you do it yourself, its pretty easy to engender your own right cut right . I think that is probably a good response. All right you can stay there are si reason other president s have chosen not to talk about the fed weve gone back and seen many president s have jaw boned over the years. Come on come on. You give me your list, ill give you mine and well compare social media allows it to be widely disseminated. If you think a president would have trouble with the remarks. Who is the pred that through the fed chief up against the wall he used to kick everybody with his boots what do you think jeffery. Ahead ahead of fixed income. Mild mannered Portfolio Manager by day what do you think i think this is a conversation about the yield curve and not so much the rates. I think the curve inversion spooks them or gives them a concern. Weve been threemonth build or 10year notes inverted twos and tens inverted when we look at the drivers, the back end is the global growth. The front end is Central Bank Policy if you run a chart against 10year booms, that holds up well that is pretty solid i think european longer term rates might drive the rate here when youve still got the policy in the ecb through a whole laundry list of easing in the market you still get the list that has paused part of the flattening anyway is the fact that the feds will ease in here but that they are a little behind. Does the flattening create an inversion. I think the back end responds more to global pressures the front end still saying in tune would you buy treasuries here we would not buy treasuries here i think barring any kind of real inflation or growth scare youd have a hard time selling me on 2 to 2. 4 would be a fair share you can build ayearold curve about 40 to 50 . That feels like where we should be we have reasonably good trend growth here in the u. S inflation is kind of within or close to that band positively slope yield curve around 40 to 50 basis points kind of feels right. It will just take a little while to get there a little news and relief on trade and stimulus how are we going to find capacity to do that. Youll get a more normalized curve. Good to see you thank you for coming in today. My response to you would be the weakness that was manifested in europe probably wasnt mainly due to the trade wars. That that was already my response to you, joe, would be i respond to you for me. I dont talk . Yeah. And the trade war is hurting in europe increasingly seen as responsible for Global Economic weakness when brian says talk to people, he doesnt mean talk for them really . I felt like you were communicating with me. Thats what i was trying to do impress the flesh im always trying to impress the flesh. If you were doing a comedy show, they say the guests are the furniture. You are not supposed to say anything that is totally different. Coming up, when when where he return if you are thinking about buying the new iphone 11, dont go anywhere weve been test driving the new models well have the review when we return from the break. Todays big number, 1. 47 billion how many ionphes released to 2018 they stopped releasing unit sales at the end of last year. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Were changing whats possible. For instance, we know how your customers shop. And what theyve already purchased. Like this lamp. And we use those insights to show you what they might consider buying next. Midcentury modern, nice. That way, you can keep sending them offers for the perfect products. And that keeps them coming back. Hows that for changing whats possible . It has been a week since apple unveiled the new iphones our editor has been test driving. You are holding one. What do we think very nice phones. Worth the upgrade for people all the way back to the 6. If you have the 10, im not sure you want to upgrade yet. Two things consumers care about. Batteries and cameras. They had the best camera people thought the google pixel was better now they have the night vision and super wide. Super wide, regular wide the twotime zoom. Iphone 11 has everything in the pro max but just a little different screen not as bright and colorful also doesnt have the zoom lens. This is what most people need to buy. Its 699. Everyone is complaining that iphones are costing too much these are becoming service devices. Portals to serve you have apple arcade, apple tv plus coming. You have apple news. You can pay for all of that. Here is the thing i cant figure out i hate to say this the camera, more innovation. Ios 13, which i can get on my current phone. Is there something coming . Have we maxed out on what they can do thats a good question. You saw that with the samsung and galaxy fold that didnt work yes, down the line, well get to seeing new devices that will get people to say, wow i need that things people care about next year, we are going to get 5g for people who want to buy this phone and get the next upgrade. You have early upgrade thats what i have this is a better camera that what we see here it is pretty good apple is working with developers to film multiple developers about what you see on the back it is impressive it is crazy what that can do. Of the three, you are going with the cheapest one. I personally am going with the large one, the max i like the screen. How many hours can i really go they say five extra five extra over what . Over last years model. The 10 s 10 s max. On this, i can get through most of the day, not all of the day. Yesterday, i was at 50 i woke up and flew home and was still charged when i went to bed. Were you on the whole time . On the plane, i was in airplane mode. Impressive so five extra hours it should go all day. Do you think the battery just dropped another thing after about six months the battery does drop off apple does go through the battery program. They can change the battery for free or for 30. I need it because im at 85 . You need to upgrade a lot of people i talk to have the 6 or the 6 s. Get the 11. Your door is locked my whole house is fully connected. Should i get a battery . He needs a new phone. Upgrade. It seems fine but im at 85 . Thats apples problem. The older phones are still good. Is everything going to be a bigger screen . Can you get close to this size with the iphone 11 pro. Im looking at these pictures like we have a little Annie Leibowitz in the room here im not joking. The quality is better than we are seeing there todd, thank you hes going to be back here tomorrow with a review of the apple watch. You can see more of todds reviews on cnbc. Com in a bit. When we come back, content wars netflix lands the streaming rights to seinfeld. Take a quick look at s p winners and losers through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Announcer welcome back you are watching squawk box. Live from the market site in times square down about 42, 43 points. Nasdaq down around 12. We broke it yesterday. W we had eight in a row. Seinfeld is heading to netflix the Video Service acquired the global streaming rights to the sitcom will offer all 180 episodes of seinfeld starting in 2021. The latest escalation after they lost the rights to stream friends and the office a source tells cnbc thats price far exceeds 500 million they paid for the office. Seinfeld did not do as well on hulu. Unlike friends which accounted for much of the viewing on netflix. There is a big question mark on both the audience and platform in terms of finding shows and who is watching and why. By the way, the s p was down on friday, the dow was up on friday when we come back, the future of work well talk about big changes to the labor market coming up, our guest for the hour, Aryeh Bourkoff will talk about content wars stay tuned to cnbc was ahead of its time. Still, we never stopped making it stronger. Faster. Smarter. Because to be the best, is to never ever stop making it better. The 2020 cclass family. Lease the c 300 sedan for just 429 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Liberty mutual customizes your Car Insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty i like to make my life easy. romo mode. beep bang good luck with that one. Yes thats why i wear skechers slipons. Theyre effortless. Just slip them right on and off. Skechers slipons, with aircooled memory foam. Welcome back to squawk box. The Auto Workers Union has restarted talks. Should we think there is any movement on this or okay, we are back to talking they started talking again yesterday at 10 00 in the morning. Ive been told the talks went on pretty regularly throughout the day yesterday. I wouldnt read too much of that in terms of they are closer to making a deal. You know how this goes this is a slow process two steps forward, one step back is it possible well see some type of resolution theyve said dont be surprised if this extends out and how many workers General Motors has and the Health Care Benefits being paid in terms of supply and show rooms, you dont have to worry about General Motors running low anytime soon the bread and butter, you are talking their silverado pickup theyve got a 90day supply. In terms of context, 60 to 61 days would be considered the opt ma opt imal supply to have. A strike meaning no more than one or two weeks is comfortably supported by their inventory they have 17 billion in cash and 16 billion available. When you look at shares of General Motors it was down more than 4 that is to be expected do we see this stock moving dramatically lower this would have to stretch out several weeks before you see a huge pull back in shares of gm thank you now for a look at the changing face of the labor market well go to chairman of man power group. Obviously unions arent what you talk about jonas i think Union Membership has been on a decline. I know the impression that people have of unions is at a multiyear high in the current environment. I wonder whether you view this gm strike as a commentary on whether the labor market is tight and they feel that they have some leverage at this point or whether unions are back in a big way . If you look at Union Membership in the u. S. And other parts in the world, Union Membership has been coming down significantly over the last decades. This strike is a reflection of workers wanting to have Something Back from many years of stagnant wage growth. I dont think structure of unions have bounced back here in the u. S. Or other parts of the world. You think what we are seeing in the labor market is being affected by our issues in trade . When i travel around the world, with he do business in 80 countries. We have 400,000 companies we work with every year as a traveled last year, because we started to see head winds especially in europe and European Manufacturing about 12 months ago, the answer to that was reasonably uncertain companies werent exactly sure if they could see a softening. Today, the answer is very clear. The trade wars and tariffs are having an impact on Business Confidence and Manufacturing Companies all over the world you are talking about here on a relative basis, we are much stronger if you had to say china, much weaker in terms of hiring. So there are winners and losers in the trade war i would say manufacturing in the u. S. Has softened. We have just released our forward looking survey where we ask employers in various sectors how they are feeling and what their hiring intentions are. In the u. S. , both manufacturing is one of the sectors that is the weakest it has been. The same is true for china but u. S. , one of the strongest of hiring, 10 across all 44 china, one of the weaker right in the u. S. , one of those sectors is manufacturing i hear you. Im talking about overall. Overall, the u. S. Is he avery strong japan is very strong if you look across the surveys, we see a greater volatility. I have one question that goes back to the uaw, in the battle between labor and management and cost of health care which seems to be what that is all about, are people asking for more cash or more benefits in that case, they only pay 3 of their health care compared to average americans that pay 28 how do you see that playing out . I think when you have a labor market when unemployment is below 3 in the market to retract and retain the talent. For unoyounger generations, it s about flexibility and a lot of people arent really expecting job security as they are looking for Employment Security and how do i manage in between times what do you maybe of the difference between job security and Employment Security . If a job cant guarantee longterm employment. A lot of legislation is focused on protecting the job. Increasingly, employees know they are likely to change jobs many times they are looking for training, reskilling, they are looking for benefits for the time they are there but for more andrew, i think you are eluding to an interesting dynamic. That is medicare for all and single payer would be a step down democrats can count on Union Members but theyll be hesitant to give up those things and jump on board with bernie. I you know that ast happens. Thats true so. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. Welcome back to squawk box. A california man has died in what is believed to be the seventh vapingrelated illness Canopy Growth coceo bruce lipton who is here announcing a new venture. Before we get to that because that news about that death and vaping i think is what i want to actually start our conversation with though. I want to talk about whats on your shirt most people come in in a shirt and tie. They are respectful. Im probably never getting invited back im boring and dress poorly. What are you having me here for. I spent the summer and i found a bunch i want to be involved in. These are companies im investing in arts and crafts. I wish to be involved with one multistate operator and for a bunch of reasons, regulations didnt conclude the one under here so that leaves the door open im trying to figure out which one will i be involved with. Thats why i had to cover the name i thought why not turn it into a billboard, im in new york. You are a billboard. Youre in times square. Its working. Its working. Whats our rate for billboards its probably high. Lets talk about it. Lets talk about vaping we are seeing these deaths what is really happening here . I think theres two or three things happening on top of each other. Youre seeing the products people are vaping not being what people thought they were where do they come from. My worry is when regulators say were going to stop it, they will get things into the market. So its a cracking down is probably the wrong word. Educating. Inhailing stuff into your lungs overall isnt the smartest idea. To begin with. Thats the business youre in. Where i put my biggest bets was beverages. The track that it takes is a much lesseesly vantaged track. Can you get on our bandwagon. Im not sure any of us actually think vaping is such a great idea at all . I think that vaping could be for medical patients if you really said where is the right place, the reason people inhale it through a vape is it has instant onset. Suppose you are somebody with parkinsons, youve been rigid, its hard to get moving. Sure. That person should have a medical device. Thats heavily regulated. The thing with vaping and with any of these ingesting it through beverages or anything else, all of it needs to be regulated. The more you regulate this area and the less you ignore it, bad for criminals, better for public safety. Youre saying it needs to be needs more, more, more regulation. More regulation right for example, what temperature does the problem begin at . What if you have a vape device that actually heats these things up youre not going to get that unless you have federal regulation. Correct you might start where the fda starts to look they left the barn door open on what can these nicotine vapes do and nonnicotine. Can i ask you a question. Your industry has been lobbying for the opposite to happen i sure havent. I think that Good Companies prefer more rules and the reason is that if theyre competent and the rules get built higher, the less capable fall further back. What the fda has done is left the door open but theyve said the onus is on you as the industry to come up with the studies. Were going to assume its not safe unless you prove that it is. I dont think theyre going to rush to get back. What if your evidence doesnt support your business . Right for example, when you think about are any of these Companies Running a health trial, meaning have you sold Vape Products . Yes. Do you have a registry for adverse effects . Most dont if you do have a registry, what was the source of the problem . It could be from a person inhailing and having a cough to an adverse reaction where they have an allergic thing what ive been looking for in the companies i get involved in is science driven, regulation strong and Capital Markets like that. Bruce, thank you for coming in this morning. Appreciate it. Well send you the bill for the billboard. Always good to talk to him. You can come back, just come bearing gifts, you know what im saying, bruce, buddy. It wont be vapable. Im kidding im kidding. Im not so sure about the whole what about cbd gummies to go to sleep what you really want is you want an outcome. Weve got it. You want an outcome thats what the science has to deliver. Aryeh bourkoff joins us next. Hell talk streaming wars. Saudi arabia, the fed and trade. Investors paying attention to three big stories that could sway markets well cover them all. Also get you caught up on this mornings corporate headlines. Plus, one of the most powerful bankers joins us. Aryeh joins us and squawk box is ready for takeoff with Academy Award winning producer brian glazer. The man behind movies like apollo 13 and a Beautiful Mind joins us to discuss the film business and so much more this is Ground Control to major tom youve really made the grade live from the beating heart of business, new york. This is squawk box. Good morning welcome to squawk box right here on cnbc im Andrew Ross Sorkin along with becky quick and joe kernen. Take a look at u. S. Equity futures. 2 1 2 hours before the market would open we would open down dow off 15 points. Nasdaq off 20 points and the s p 500 looking like it would open down about 5 points. Lets get you caught up on some of the headlines at this hour Federal Reserve policy makers are set to begin a twoday meeting today with an Interest Rate decision and policy today Steve Liesman survey showed that 100 of the respondents expected that rate cut tomorrow. Beer brewer an hughes ser bush is making a second look at the ipo in the asian business. The company had abandoned the planned 10 billion ipo citing Market Conditions. And sony has rejected a call by third point to spin off its image sensor business. They call that a crucial growth driver third point has maintained tha sony shares are under valued and that its portfolio is too complex. In the markets, all of them are paying close attention to the worlds heaviest crude producing region a record jump in prices yesterday. Crude this morning is pulling back a little. Nbc news is reporting that american intelligence indicates that the strikes, indeed, originated from iran but President Trump signalleding hes in no rush to jump to a military response. Well, we have a lot of options, but im not looking at options right now. We want to find definitively who did this were dealing with saudi arabia, were dealing with the crown prince and so many other of your neighbors and were all talking about it together. Well see what happens i dont envy the president in this case. Were trying to get out of afghanistan. Getting a lot of pushback. One of the things he confidently points out is in his view he spoke out against the second iraq war. It was a campaign promise. Right but, you know, how many times and people pointed out iran punches someone in the nose how many times before something you know, theres some type of a response i dont know so its a very tough situation Saudi Arabias Energy minister set to hold a press conference later today on the attacks at the aramco facilities which have cut the companys oil supply by 50 . Irans Supreme Leader says in his words there will be no talks with the u. S. At any level that the upcoming u. N. General Assembly Meeting in new york m a, mergers and acquisitions our guest host is the man behind more than 100 transactions in the last 100 years aryeh is the founder of lion tree he has been here for the last several years. They were part of charters purchase of time warner cable. Lion tree advised viacom thanks for being here. Thanks for having me. Lets talk about what you see out there. People are expecting the fed to cut rates. Almost 100 are expecting rate cuts weve heard the economy is slowing down we know there are concerns about trade talks. What do you see when you look at m a and what does that tell you about the broader outlook . First, m a is busy, it has been for the past few years. Its been abating given Market Trends all of the markets are open. But the m a market is very strong and rates are low so were seeing a lot of movement a lot of that is driven not by the Interest Rate environment, its driven by the necessity of the companies in the media and Technology Industry to get more scale. Once you have the scale, its not the be all end ll. Scale players are in motion still. So via com, cbs happens, discovery scripts happens, comcast sky, disney fox, then what were still moving. Let me just ask because at t finally putting all the pieces together in what theyve been doing and then you have an activist investor who comes along and says, no, no, no, youre not doing it right. Then there are questions of scale. Is scale what businesses should be seeking at this point ultimately business should be seeking Value Creation scale is a means to get there in certain cases but the execution of that is very much the forefront. So once you have the merger, executing those deals and ekts cuting the plan to compete in the broader landscape, especially as things slow down, which is true is more challenging. I think thats where the pressure comes in. Let me ask you. Randall stevens is going to be in new york city at the Goldman Sachs Conference Today responding in part to what weve heard last week from elliott manages. , paul Singers Group going after that firm, and specifically him and this strategy scale may be something everybody is looking at but how does scale is maybe the fundamental question in terms of do you need to be in the distribution game and the content game do they need to be together . You might need to be in the content game with scale, you might need to be in the distribution game with scale but theres been a question of whether its together. You know you work for comcast . Im going to make a comment about that i think the lesson the lesson of the comcast nbcu transaction has been missed on most people the reason that transaction was successful, i believe, was because we, comcast, bought nbcu at a remarkably low price, put in i wasnt asking for an explanation. I was pointing out that comcast does own distribution and content. You dont need to educate me. It made sense. All right aryeh i feel like you dont need me. This is whats happening to our other guest, Steve Liesman. Pointing out we have distribution. You tell us what you think. Every deal is different i think the rationale for the comcast nbc issue you hit, plus other reasons. We were involved in that transformation is difficult. Transformation in the Public Markets are difficult. Its not just diversification where distribution and content together its trying to move a business thats slowing, like telecom business, into new businesses. That is hard for an existing team to do so were seeing that transformation theme play out. Its difficult at t and randall talked about this are doing some things to pare down. Thats been their plan. Is this elliott push trying to get them to do it more quickly theyve been doing that and executed so far. The ideas that elliott lists are largely underway at at t the question is if those dont happen, does elliott keep pushing for more to hit the bone. We can talk about this later but lets talk about whats been happening in the battle for streaming. The reasons theyre looking for growth is because the existing businesses are coming under attack you have netflix challenging all of these Media Players same thing with telecom, all of the issues how does that play out and lets start with the direct streaming business. Look, weve had this big shift in the content landscape from what were b2b businesses. Now its becoming a b2c business theyre trying to reach the consumer on their own. Cbs all access, xfinity, its happening all the time from the media companies. Theyre doing that to catch up to what the Cable Companies have and the streaming platforms who are competing heavily with each other. Every why one uses the consumer very liberally the consumer wants this, the consumer wants this. What are they saying you have to look at engagement consumers will come to us and churn. Thats what i was going to ask. From a straight margin perspective, i understand the Revenue Growth story so long as, by the way, you dont lose too much of your legacy business if you completely lose the legacy business, what kind of margin actually exists on the streaming side netflix aside because theyve succeeded but i think maybe in a way that others may not. Well, the margin will be affected by the cost of the content. Right. That is going up because everyone has to play into the content game once weve crossed the ocean, youre going all the way to the other side im sure brian glazer will talk about that as well what is the churn rate what is the loyalty of the consumer on the platform the longer they stay on the platform, the longer it is. I think were going to move to a day, im pretty convinced that some smart app, i know theres folks working on this right now if it doesnt already exist, are going to get to a point where literally on a monthly basis youre turning netflix, hulu, hbo, show time, all of it on and off based on whether, you know, the handmadens tale is finished or not. Thats why platforms like roku is so successful. They can come over the top and be the new interface the new interfaces will be emerging helping people navigate that easily. At the same time its a lot of pressure on loyalty content. The key in media is authenticity, right . People follow brands, sports teams, you guys, shows because they have a loyalty to the content. That will win out, right not here today, gone tomorrow. Some shows are here today gone tomorrow that becomes the issue. Yes not you guys. What, 25 years . 25 years. But that i mean, that becomes the problem, right as youre trying to go after the content and make that part of your platform. Yeah. I mean, content can be flash flashes. Fleeting. And people have short Attention Spans these days. What are you saying people have yeah, remember what i said five minutes ago no, i got it. Who do you think will be the winners in this . I know its tough for you when you have clients all over the place, but when you look at disney and a netflix and a comcast nbc, universals offerings, at ts, apple, which ones will consumers pay for. The winners will be the ones with the best strategies and management team. We went to execution in a landscape where youre having giants compete with each other with infinite amounts of cash, the cash is not the issue. How do you accumulate assets, fit them together and serve the customer with a very strong management team. I think were seeing a transition were seeing rupert mourdock transition were seeing sherry red stone and bob backes at viacom so i think you have this transition of owners into effective managers now for the new generation and that will be the ones i think to watch. Whos bold who can execute . How you take it to the consumer. Aryeh is going to be with us for the rest of the hour. We have to talk wework with him this morning. Coming up when we return, Aryeh Bourkoff on the ipo market including wework and what the company is now telling investors. That ipo, as we told you earlier, is delayed. They say its still coming we will see about that check out the futures at this hour. We are in the red. Dow off 62 points. Watching squawk on cnbc and we are back in a moment as a struggling actor, i need all the breaks that i can get. At liberty butchemel. Cut. Liberty mu. Line . Cut. Liberty mutual customizes your Car Insurance so you only pay for what you need. Cut. Liberty m. Am i allowed to riff . What if i come out of the water . Liberty biberty. Cut. Well dub it. Liberty mutual customizes your Car Insurance so you only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. So, every day, we put our latest technology and unrivaled network to work. The United States Postal Service makes more ecommerce deliveries to homes than anyone else in the country. Some of the following hass to homes spoiling this is us for the few who havent seen it. Season 4 of this is us is almost here. To catch every past episode, just say this is us into your xfinity voice remote. Like the one where i. [ buzzer ] or the one where we show. [ buzzer ] when he was a. [ buzzer ] plus you can watch this is us anywhere with Xfinity Stream app. Especially the. [ buzzer ] episode. Awww, that ones my favorite. Catch every episode of this is us with xfinity. Seinfeld heading to netflix. Theyre acquiring the streaming rights to the sitcom offering all 180 episodes to seinfeld starting in 2021 its the latest escalation in the streaming wars avnet flicks lost the right to stream friends and the office. They didnt indicate how much they were paying for seinfeld. It far exceeds the 500 million that Nbc Universal paid for the office. On Hulu Seinfeld was not as successful as friends and others. This you could explain to me. What . Mansplain this to me. Why would hulu not work . Different audience. I dont know if its an interface story. Do you have a take . We dont know if seinfeld is going to work on netflix. Friends. But it was the illennials one place right i dont know why one works and one doesnt work. On hulu. Although i think hulu is more of a broadcast model netflix is the traditional cable model, direct to consumer, pay for subscription hulu is like the free model. Its a freemium. Paying lower fee with ads. How many users on hulu . I think hulu is around 25 million and netflix has 150 million. Netflix is much more global i think. At the end of the day, every company is going to have both. Theyre having the disney plus and hulu offering. The one thing it shows is the deep pockets its well above the 500 million that Nbc Universal had paid for it there is a bidding war underway for every type of content. Absolutely. Im wondering if generationally seinfeld might not be millennial friendly. Thats what i would think, too. Whereas friends is. Millennials since they dont go out and have friends, they can have their friends on tv basically because theyre millennials have more friends than you and i do. Im kidding but i do were really attracting the millennial bitcoin segment. Thats the key thing. Theyre gamers one in three millennials are gaming. They are . Oh, yeah. That i think is the future of media. While theyre vaping. Thats fantastic. Right gaming and vaping. Vaping, netflix and wonder why we have problems wonder why chilling. Netflix isnt chilling. It means watching netflix. No one chills anymore no. When we come back not chilling and vaping vape and chill. Im going to get us out of here when we come back, weworks Parent Company walking away to proceed with plans for a Public Offering and later Academy Award winning producer brian grazer is our guest. Hes out with a new book hes going to join us to talk about the business of movies and why you should look people in the eye. Right now as we head to a break, lets get a look at todays aflac trivia question. What publicly traded company was originally called the Rocket Chemical Company we think you would really shine in the aflac program. Aflac coach saban we have Health Insurance. Did Health Insurance pay for everything . No, we still have bills. Aflac gives you money directly to help with those. Aflac and your deductibles, knee brace, whatever you choose. Aflac sounds like a winner. Umhum. Umhum. We try. Get help with expenses Health Insurance doesnt cover. Get to know us at. Duck aflac dot com so servicenow put your workflows immhm. Cloud, huh . Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. When didwhen i needed ton . Jumpstart sales. Build attendance for an event. Help people find their way. Fastsigns designed new directional signage. And got them back on track. Get started at fastsigns. Com. Welcome back to squawk box. Did you get the answer here it is to todays aflac trivia question. What publicly traded company was originally called the Rocket Chemical Company anybody want to take a gander or guess . Let me guess. Wd40. That is the answer. Californiabased manufacturer of household multiuse products originally designed wd40 to prevent rust and corrosion on the atlas missile. Excellent. That was a little extra Cocktail Party Information News you can use check out wd40s stock. I need to get some, we have a squeaky door. It is a miracle. You get one and its got a long straw attached. Yeah. Shoot it right in you can shoot it on the swing set its really kind of cool. Gets the hinge just right. Are you working on swing sets i do. We have a swingsets. We still use it. Are you swinging on the swing set . I dont thats not advisable at this point i dont think. Wework signaling not for me, for the swing set really signaling a delay to its much awaited Public Offering saying now it expects to complete the offering by the end of the year. Leslie pickering with more not necessarily a news flash go from 47 to somethings amiss. A lot of people will be waking up saying we saw this coming, but wework is now we wait a source we wait. Saying the ipo. We wont. We cant. Until we go away. I dont know what happens. No to launch a road show to market shares to investors. Wework saying in a statement that it expects the deal to be completed by the end of the year, guys the delay comes after wework scrambled to appease investors and slashing the valuation it planned to use in a debut, but the investor demand was still tough to come by the company was having a hard time committing to an ipo plan sources say. Softbank is weworks largest investor and is pushing for a delay. Softbank had been considering buying up a large portion of the ipo to limit the companys need to sell shares elsewhere still its unclear exactly what the delay accomplishes wework was banking on 3 billion in equity from the ipo plus a contingent 6 billion Credit Facility if you believe much will change in the next few months that will allow wework to boost its valuation beyond the 15 billion range. The risk is that the Market Conditions could turn and investors would bulk even more into a moneylosing company in the Business Model it hasnt yet been tested before in a recession, guys. Can i very quickly, leslie, want to talk about this. Can we bring up an alert on something were seeing now 3g which is i believe the second largest shareholder and shares of kraft heinz has sold 24 million shares in the open market stock is down and reacting i think thats significant because 3g obviously partners with Berkshire Hathaway in this entire situation. Yeah. Warren buffet has told us again and again, hes in this. They made a mistake, they bought too high hes in this like he is in almost all stocks for a very long time. I think part of that was precipitated on the idea that 3g is in this i dont know why theyre selling. Stock has been down 15 in the last few months. The shares are down another 2. 7 i dont know what this means for Berkshire Hathaway, if they would do anything with it. Just my supposition, just my understanding. I dont know if im right on this either that buffet was not going to sell because he was partners with 3g if they sell i wonder if that opens the door for Berkshire Hathaway to sell thats that they sold at the same time. Dont you think they would have done it i would assume that 3g would call only 25 million shares which id like to see what their entire shares outstanding are, but just the idea that they would sell would potentially mean, okay, were locked in this together maybe that deal is off again, this is just speculation. Obviously the market is speculating on the same thing. Maybe 3g is more value sensitive than hathaway. Could be. The valuation matters all of a sudden doesnt always make a difference when were in momentum driven economies, right, when rates are low. When you start to see things more discerning and slow down you start to peel back the onion. This valuation is what im comfortable with you pare back and sell down. It may be a buying opportunity if theyre committed over time there is an entry point dynamic versus staying in things forever at a high valuation. Which gets us back to we work. I think thats what were dealing with is how do you value unicorns how do you value the companies that have benefitted the most from the private markets weve been on the show for a long time talking about how the private market is so robust, we dont need a Public Market now were seeing the other side of that trade. When you do want the Public Market its going to get valuation sensitive. Doesnt this indicate that the private market just doesnt know, meaning that the accuracy with which private investors either have information or actually are able to ascribe the proper value to these things, that theyre off if you look at wework, softbank kept propping up the value in the media world you could argue the buzz feeds, the vices, the voxs were all propped up by new investments layered on top of each other so every time we had this new headline. It means theres a disconnect between the Public Market valuations and private market valuations. It means theyre made up. Have you ever looked at the high the 52week high and low on a stock . Many times its either half the Public Market values the same stock at 50 or 25 in a 52week period. Whos right its not apples to apples its always hard to value anything there are so many variables that go into it. At the end of the day valuation is a function of wh s whos metrics and the greater fool. Supply and demand has a lot to do with it. One thing i would point out is the m a market may be a better home for the private companies. Thats interesting. Thats a private valuation and strategic. Public might remake of it. What do you make of softbank and what he has done in terms of pushing up these private prices . I say that in the case of wework, uber, you could go down the list. He is a bold investor and hopefully a longterm investor he cant play cycles ill give you a statistic. Right now there are 600 billion of aggregate value of unicorns, which is 187 unicorns. That compares to 25 billion and only 12 at the end of the last recession, almost 25 times more. We have really exploded on the private market high valuation game here last cycle. But is this whole process, meaning as were watching all of this play out, does this mean as you look forward over the next decade that were going to see more private markets or are people going to say, you know what, this whole vintage, this didnt work the way we thought were going to see people try to go public earlier, give public investors opportunity for growth for sure. I think youll see companies go public earlier and have more up side through a longer period of time for the Public Market to enjoy. I also think youll see valuations reset and the m a will reset with lower market rates and take these off the ipo docket. Where do you think we are in the cycle to the extent that you believe m a is i dont know if you think its a leading indicator or a backwards looking indicator. You can look at an s p chart, look at volume and it maps relatively closely given the confidence in the board room that seems to emanate oftentimes on the confidence in the markets. Well, i think the confidence in the board room is not solely related to economic cycle. Its related to what the needs are for its companies to secure its asset base when everything is going to hell in a hand basket. The problem with m a is people do deals at the exact wrong time thats when youre supposed to be buying. Thats the valuation discussion if things are paralyzed, thats the best time to buy i think from an economic cycle, we are slowing i do not think we are in a recessionary environment i think theres a lot more to come. You dont think prices are coming down any time soon. Prices are coming down and resetting. That is healthy. Only individual names, not the entire market. Correct. Separately on 3g, thats 725 billion. So 3 4 of a billion dollars market cap on kraft heinz is about 36 billion. They own 22 . Thats not a significant chunk. Its not a huge chunk. Less than a billion dollars and 22 of 30 billion. We will have to find out what wb thinks about all of this. Aryeh bourkoff is here. Thanks, leslie. The man behind some of the most memorable films is going to be joining us in a minute including apollo 13. The grinch who stole christmas and a Beautiful Mind. Brian grazer will be here to discuss his films and his new book we are in the red with the dow off about 48 points. A little better than ten minutes ago. Were back in just a moment. Will it feel like the wheend of a journey . P working, or the beginning of something even better . When you prepare for retirement with pacific life, you can create a lifelong income. So you have the freedom to keep doing whatever is most meaningful to you. A reliable income that lets you retire, without retiring from life. Thats the power of pacific. Ask your financial professional about pacific life today. Still to come on squawk box this morning, the head of nato expressing concerns that tensions could escalate after the attack on saudis largest Oil Facilities the latest details from the Oil Rich Region and what it means for the markets is coming up. Later, senator rob portman will join us to talk about trade, china, the attack in saudi arabia he serves on the energy and Foreign Relations committee. Plus blackstone ceo Steve Schwartzman will join us on set. An will cover Market Trends, the fed d his new book squawk box will be right back. Lets welcome brian grazer and he wrote face to face. Glad to see you. He heard the 4 billion number he was like, what . Closer to 40. 4. 2. 40 . In the stats it says 13. 5 billion. That was a 1980s number. Where did we get 4. 2. Hes thinking back end. This is a business show i know the numbers. And theres proof of it right there. Well, some. Lets talk about your new book. Okay. We read through it and have been debating whether we could follow some of the rules that you lay out in it. Its all about facetoface communication, relationships you build with people, not transaction naryurytransaction naryury. Tell us why this came about and how. Well, what it means is first of all, for 35 years every two weeks i go out and i meet somebody new i reach out into the world and pull somebody into my life or we meet and these people are experts in anything other than show business. Could be financial, in fact. But its science, medicine, politics, religion, all art forms, athletics and the point of that is to import new ideas or fresh perspectives into hollywood. In other words, you probably know this pretty well, otherwise youre breathing the same Hollywood Air in the same way you might be breathing the same sort of financial air. So you want to disrupt that and inform yourself so you can expand your emotional, intellectual possibilities then i realized none of these conversations would have been of any value had i not actually looked at somebody face to face because when you look at somebody, you immediately validate them as a human being youre saying, i see you you see me were both theres a Common Thread were in the same part of the same species then if you do this and you you can actually reach somebodys heart thats what movies do. Great movies reach your heart, and thats why great movies are really effective in creating memorable emotional moments and thats optimally what you want to do. It differentiates you or the movie differentiates itself from other movies you want to be different. What you say i think applies not just to the movie business though something you just said struck me the idea that we could be talking to too many financial people and be in our own bubble. Yeah. Thats how problems like the financial crisis come about, if youre not out there listening and talks to other people. Its true in every business. I have just found that doing having these being very open a couple things are just are a must, are constant you have to be open minded. Uhoh. Uhoh we were just talking about somebody that isnt open minded. Exactly. Youd have to be open minded and you have to put your smart tools like your phone and your ipad, those are very, very good resources. Theyre the greatest invention of all time, your smartphone, but youre not going to really connect with somebody if youre doing your smartphone and talking at the same time because theyre going to feel disrespected theyre not going to its not going to make them feel good and what you want if youre trying to raise money or youre trying to have an impact on somebody, your story starts the minute you see them. Thats where the story starts. You know who understood this really well . Walt disney. If you go to walt disney, his theme parks are different than any other theme park the story starts in the theme park the madderhorn, the story continues in the line. Other theme parks dont do that. So i think that stories are everything theyre the subjective experience that pull you into something and make you care. Can i ask you a generational question though. Generational. No, no, you talked about the smartphone i feel like theres an entire generation that are communicating in a completely different way. Im not part of that i agree with you i still call people on the telephone. Nobody calls. My wife thinks its crazy that i do that. Nobody picks up the telephone anymore. Yeah. So the question is sort of, a, how this applies to this next generation or is it just that they need to learn that this is the only way it really is going to work in the end i think they have to learn this is the only way its going to work in the end i really do. Because, i mean, theres the goodness part of it. Its impossible to really have understand humanity. Its really hard to understand whats going on in the streets or in a population of people and its almost impossible to have empathy no matter how smart you are and how much you search. Empathy comes from seeing and feeling people it just comes from that. Empathy is central to the survival of our species. Yeah, i think hes on to something because what youre getting at is can you integrate Human Interaction with technology. Theres a whole generation of people who dont interact at all. They can be in the same offices and nobody talks to each other anymore. Anything major needs at the end of the day interactions. Even when we do mergers, massive, complex fundamental infrastructure behind the companies, every company is led by one person at the tip of the spear that needs to interact with the other person to create the magic, create the deal i love that you say that because it is really true. No giant deals ever get closed without a face to face, right . Right because you have to have compatibility. You have to be like minded you have to find similar values. Right. That comes that way. Correct thats how you read the variable everyone at the end of the deal says lets get in the room. Youre not raising a rounds and b rounds without looking at people im not selling movies or evangelizing the amorphous idea and convincing Denzel Washington pass up on five jobs to work on an idea thats not even written, but you can that can be done by being face to face and evangelizing a mission or a vision. Are you going to be doing a project with denzel . Ive done two of them one was american gangster. He stayed with that for three years while they started it, shut it down and stopped it and then i had to restart it with a new director and that included a new actor that would join him, which would be russell crow. Russell crow, even though he had just won an oscar, believed in me and what we would do in collaboration to build this role that didnt exist in american gangster and you can do that when youre with people. Thats how youcreate teams. What about some of your ideas, just bringing in normal people who arent related to the movie business what are some of your favorite movies that have developed out of that come that way . Backdraft no, i never talk about that backdraft came about, i was surfing in malibu, a place called old joes some guy says, hey, arent you the producer i whatever. I said, yeah i wanted to blow him off he was he had this idea about firemen and he was once a s. W. A. T. Team cop. He was the sheriff in malibu, which i didnt know, and he was a martial arts expert which i by the way, i was interested in the martial arts i said, ill let you work in one of my tv series as a consultant if you teach me akito karate then i bought the backdraft thing for a substantial amount of money you dont have to write anything, ill do it, and that became the seed that became the fireman movie backdraft. Thats crazy i have entire foods chains that are built on random conversations or meetings. I was sitting in the back seat of a taxi cab here in your city, new york, over 20 years ago and one of your shock job guys is interviewing on the radio old dirty bastard, odb. I remember him. You remember him . Yeah. So he was the insane voice of the it was 25 years ago and hes so wild and crazy and he doesnt know how many wives hes got or how many kids and i thought, who is a man called odb . Whos odb . So i decide im going to meet odb. I meet him two days later. Its more insane he wont let me go in the studio odb, because i met him, turned into knowing narizza which turned into american gangster which turned into made in america a concert i produced with jay z which became empire which became the wootang clan that is out on hulu all because you met one person. We have to press pause. One very quick question. You got a meeting in two days. You have a great calling card. Kids often call me and say how can i get to what do you tell people to get to the other side . Meaning like to get them on the phone . We were once absolutely nobodies. Right when you were the nobody. I would research, in this case i couldnt do it, i used my smartphone id Research Everything to do with my target person. Id research so that i have a compelling first sentence to say to their assistant and sometimes assistants blow you off and you find a way to meet them in a parking lot or you find a way you dont stalk people, you dont do weird shit, but you have to prove youre informed. If its just like im asking questions, i blow all those people off and they blow me off. Its that first line you mentioned. Its the first line. You have one chance. Yes you have one chance. Did you know in the Amish Community theres another community that survives similarly in utah . I just made that up just now did you know thing always gets peoples interest. Did you know . Did you know this is cable . Yeah. Did you know we need to take a break . We have to take a break. Buddy fox got some cigars on gordon geckos birthday. Brian it wasnt real life though, was it movies become real. Are we on the air still on. Come back and talk a little were going to continue our conversations. Yeah, streaming, with brian grazer and aryeh and at the top of the hour Steve Schwarzman of black stone group. Get left beh. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Some of the following has spoiling this is us for the few who havent seen it. Season 4 of this is us is almost here. To catch every past episode, just say this is us into your xfinity voice remote. Like the one where i. [ buzzer ] or the one where we show. [ buzzer ] when he was a. [ buzzer ] plus you can watch this is us anywhere with Xfinity Stream app. Especially the. [ buzzer ] episode. Awww, that ones my favorite. Catch every episode of this is us with xfinity. Even though it might not be a theatrical viewed experience it could be under a streaming platform but as long as people see it on the street, as long as its promoted on your show and other shows so its differentiated. But is the issue theres too much content right now people say constantly netflix, you cant find this i see a billboard out here for netflix, i see great stuff, i go on the service, i cant even find the stuff thats being advertised. Youre sort of drowning in it yes thats a different question yeah, theres too much. Whats the best way for content and technology to interact but if youre able to convince or your content is able to convince the netflix or disney or comcast that its important, then they pay for it and youre going to find it. How does that go into your Decision Making when youre trying to decide its central to my Decision Making. I tried to make shows that already are prebranded. So i dont have the big sequels. I dont own marvell but im making Aretha Franklin Everybody Knows who Aretha Franklin is hopefully. Making Aretha Franklin places me already on that differentiated tight rope i just now have to make it good. Right. Hopefully ill do that. And, you know, in the case im doing, we are making two movies at netflix one is ron howards hillbilly elogy. I think its good enough its emotional epic. Soon have to see i believe it is. Im doing Lin Manuel Mirandas first theatrical directorial debut. I think hell do something pretty special as well you have to see how theyll stand up when they are done. Do they produce epic emotional experiences . Parenthood im making a movie about parents. You didnt need a big Theatrical Release except a great, great thing that connects with its so relatable. Its amazing. Technology gives you reach you wouldnt otherwise have, right . Yes, exactly. More people can see the content . Yes. Technology does give you reach. So if youve made something and its great, it goes into every country in the world, theres a lot of power in that theres no doubt, a tremendous amount of power. Doesnt replace the facetoface interaction i know it doesnt. Brian grazer everybody. Thank you for coming in. Thank you. Book is face to face. Aryeh, thank you. Comp the book. Thank you. Thanks for having me. Thank you for having me. When we come back, another biggest. Wait wait wait, blackstones Steve Schwarzman on the market trade and the fed. Later, senator rob portman will serve on a number of committees that will be taking a look at the attack on saudi sawbo wl ia quk xilbe right back. Xpectatio, theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Great riches will find you when Liberty Mutual customizes your Car Insurance, so you only pay for what you need. Wow. Thanks, zoltar. How can i ever repay you . Maybe you could free zoltar . Thanks, lady. Taxi only pay for what you need. Liberty. Liberty. Liberty. Liberty. Buckle up. Investors on high alert as the fed prepares to kick off a highly anticipated policy meeting. Our newsmaker of the hour, blackstone ceo Steve Schwarzman will join us live. Amazon wants you the latest hiring spree tells us about its plans for the future as the final hour of squawk box begins right now. Good morning and welcome back to squawk box here on cnbc live from the Nasdaq Market site in times square the futures have improved. Nasdaq has turned positive the dow is down 40 or 50 the nasdaq is down less than half a point treasury yields are sort of in that new range that were seeing actually 30 years up well over 2 at 2. 28. Lets get you caught up on some of the top stories. But for now wework is postponing the offering as it tries to assess investor demand 47 billion was the number that was originally floated at the High Water Mark. Beer bur is making a second attempt. Fed ex says its raising rates it said it would not apply Holiday Season residential surcharges the january increases are going to be an average of 4. 9 for deliveries that use jets and 5. 9 for those using Ground Transportation fed ex shares up by 17 cents. Want to get to washington because we have new details on this weekends attack on critical Oil Infrastructure in saudi arabia eamon javers has that. President trump yesterday came all but up to the edge of naming iran as the sponsor of those attacks that we saw over the weekend in saudi arabia. The president saying it looks like iran is the culprit here but very careful not to say that hes making a definitive finding here the president seeming to leave himself a little bit of diplomatic and military wiggle room heres the president in the oval office yesterday. Well, its looking that way well have some were having some very strong studies done. Its certainly looking that way at this moment and well let you know as soon as we find out definitively, well let you know but it does look that way. The president saying as soon as we find out definitively, that is a look at u. S. Intelligence resources and understanding what the United States knows about this attack and understanding what it doesnt know about the attack. Thats where the president is. We had this unusual moment yesterday where we had the secretary of energy and the secretary of state both out there making a hard and fast attribution to iran. The president clearly not willing to go quite that far yesterday. Meanwhile, some news for you guys to flag on the Vice President. Vice president mike pence and ivanka trump are going to be hosting a group of ceos and others at camp david this evening. Theyre going to have a dinner and theyre going to give the ceos a tour of the facility. This is the American Work force policy advisory board. Theyre going to have their third meeting tomorrow in advance of that. Theyre all going to camp david. Well see what the dialogue is tomorrow thanks, emon. Speaking of Vice President pence, we should mention hell be sitting down with joe on the stage at this years delivering alpha conference another guest who is going to be on the stage as well this time with becky quick is Steve Schwarzman he is with us this morning he is out with a new book this morning, first day, first interview, what it takes, lessons in the pursuit of excellence. Details steves career from growing up in philadelphia where he worked in the Family Business to building blackstone into the Worlds Largest private equity firm really gets also into some of the philanthropy. Finally being able to appear on squawk box. This book is a quasi memoir, quasi life lessons how would you describe it . I think thats fair you have to get what you know and the reason i wrote this is to pass on the knowledge that has been hard won over the years. Im going to repeat the question we did an event together last night and to me what was so remarkable actually about this book was what drives you and what motivates you were going to talk about china and all sorts of other things, news, but i want to get at this. Sure. Which is there seems to be these moments in this book where you are this remarkable, dare i say insecure at moments, but you seem to have confidence. Even at times over confidence depending on what is going on. Im trying to understand where you think that came from and how you sort of explain the two. The insecurity and the confidence. Im not particularly insecure when im in a situation i dont understand or things are happening that i dont know. Or im in a place where i dont know thats normal. Where im confident is where ive figured out what a solution is then im willing to bring that to anyone at any level in society. Ive always been like that im just trying to be helpful. Im not trying to do anything else if you think youre solving somebody elses problem,. Alfred business school. I think thats the right thing. Its less popular they lay them out said here in two or three solutions. He didnt want it. Is that it . You could not it was only men at yale at the time. I was the last all male class. Right you were responsible for being the last all male class almost it seems like because there was a rule women were not able to sleep over in dorms and you decided you were going to change that. Yeah. Apparently that had gone on for 278 years and i was dating a local girl so i felt we needed a change so if you just went to an administration in college and said you ought to get rid of this, they would have given you reasons why that couldnt happen i figured they figured them out in 278 years, it was going to disturb other students, going to be parties, going to be music and so what i did is i just, you know, took all the objections and i put them in like a survey and i got 11 people go to 11 different colleges where the dining halls were and everybody who went in to eat took one of these surveys, came out and we found out that 99. 6 of the students didnt have any concerns so i got a friend of mine, who was Deputy Editor of the newspaper, he put it on the front page four days later, you know, those restrictions all went away it did make me somewhat popular at an all male school. Let me ask you another question you have been defending for a very long time the reputation of the private equity industry. Theres a scene in the book where you happen to go visit with Angela Merkel this is before she was running the entire country. She was running it. She was chancellor. And she did what . Well, it was it was funny. There was a whole thing about private equity people being locusts and, you know, probably 10 years, 15 years ago and she had just taken the job she had asked me for a meeting and she said, i understand you are locusts so im looking at her doing locust and i said, i am goodloe kus this is what started the conversation. Yeah, shes a physicist she didnt know anything about finance but she got stuck with managing a financial crisis for europe so you could explain things we hire more people, make more profit and policemen. You could give this lesson at the times. What was interesting, she says to me, well, mr. Schwartzman, if its so good, why arent all companies private Equity Companies i said, thats a very good question i said, a lot of them are unsuited like Mining Companies and other companies with huge capital needs. The staff person in the room, was it mario draghi . Yans. I thought you meant the head of the central bank now. In germany. We are going to press the pause button were going to talk about private valuations and we were talking about wework and were going to talk about china, iran, whats going on geo politically. Steves going to be sticking around for some more. Where is the pause button i didnt know weve had one. Ive heard it twice. Going to press the pause button over near you coming up, much more with our special guest blackstone chairman and ceo Steve Schwarzman and ohio senator rob portman is going to join us to talk about the economic fallout from last weekends attack on saudi arabia stay tuned, youre watching squawk box on cnbc part of that is because were positioned in the alternative asset industry we buy companies we buy real estate we lend to people who are doing that we invest in hedge funds that businessis a structurally better business. We can have a growth plan to make that business if its a company accelerate its growth and the faster it grows the higher we put leverage on it and if youre growing much faster than the stock market averages and you put leverage on youll make probably double the indexes over time wework is postponing it how do you reconcile. Some are immature companies, some have profits and no prospect for profits ive seen this happen a few times in my career when people believe things, whether they were counting eyeballs around the start of the century. 2001. And you get these periods of excess where people get so excited about a concept that they price it on metrics that typically disconnect from reality. You get like a bubble. Hows your average company doing . The company is doing pretty well not as goods as they were doing like a year, year and a half ago. Manufacturing on the whole is softer the consumer businesses are holding up really well consum consumers like 70 of the economy. Some say 72. The forecast of recession going higher by so many different places does that make sense i think part of that is technical because of inversions of certain securities which have high correlation its sort of now in the game of confidence if the consumer were at full employment, close to it, if the consumer remains confident, then, you know, with 70 of the economy oil, is that on your radar screen oil for the consumer, for the Global Economy well, what will create a problem, some geopolitical issue, not a normal economic cycle. We had one. You just have an introduction to one yes. It depends where that goes. You have all these hot spots and we have our own odd internal political stuff. Right. It can take a country one way or another. And china. So youve got china so for people like ourselves who, you know, we have a company on the one hand and then weve got sort of the risks and call it the whacky world. When you sit around on a monday morning in the famous blackstone meetings are you talking more about harvesting the investments you have or about making new ones . Id say we do both. We are definitely harvesting but, you know, its fascinating that there are some really interesting things to buy. The prices are higher. So interestingly you have to if youre going to pay a higher price, you better get really accelerated growth because then it works out you cant be paying those prices for more Traditional Companies because its really hard to make those numbers work. In terms of whats happening with the trade talks, weve asked you from time to time because you are somebody who speaks to the white house and speaks to leaders in china you have a good idea whats happening on both sides of this equation where would you say we are now in terms of maybe getting a deal well, its its the perfeperils of pauline china has in the last four years had more growth than i think any country in history its an astonishing miracle what they did but they did it behind tariff foils, markets that are not accessible, they did it with other approaches to intellectual property than are shared in the developed world and so their desire to give all of that up and the very high growth rate is obviously low. On the other hand, the west has really suffered. Developed world has suffered and weve got 40 of our people, you know, who are really hurting in this country, whether its cant write a 400 check, dont pay income taxes not because theres something they dont want to do, theyre hurt so that leads the developed world to say to china, weve got to like rebalance this this is working for you. Its not working for us. So when you make that kind of approach, they realize that they need to do changes theyve got their own internal political, you know, things going on with their hard liners who just like to continue. The reformers who recognize its good for china so weve had these experiments of getting close somebody backing away. Now as the countries look like theyre decoupling, together theyre between 35 and 40 of the world economy. Huge, these two countries. These arent two regular countries. They affect everybody. If youre an emerging markets company and china slows, you cant sell to them if we start slowing, which we are, china is slowing and europe is slowing and europes going to have a tough time stimulating itself its affecting the whole world so at this point this round i think china recognizes that everybody going their own way, u. S. And china decoupling is not good for them because its just going to slow growth rates and its going to slow the whole world. So its time to get together and its interesting theyre sending what i think i saw in your show it was called the low level delegation its not so low. Its vice ministers and the reason theyre going to come over typically is theyre going to tell you what the terms of trade are. This is the premeeting and if they do it right, our negotiators will know whats really on the table, which makes it much easier when lou heb, the vice premiere and his Senior Leader come over, so this is set up better where people fly across oceans, have a twohour meeting and say, lets schedule the next meeting well see what happens i would doubt theres a miracle cure in one meeting. It doesnt work like that. You think we can deal with china and get some type of reciprocal trust with that youve dealt there a lot ive watched the piece on 60 minutes and i was disgusted with the behavior of the chinese and im wondering. I dont know if i could deal with them. Whats interesting, i was there. I was there with china about three weeks ago. They went over a whole thing on fentanyl and what they are doing. I dont know when that piece was actually recorded. It was horrific. Horrific. The piece was so scary and so depressing that basically china was sending the stuff in mail order. No problem doing it either. And knowing full well that weve asked them to stop. Right. But what they indicated to me, lets assume this is the truth for the moment, theres a huge reorganization going on in china regarding fentanyl to try and shut it down and if what they said is true, you will see this really going down quickly. Well have rob portman on later. Hes had a lot to do with it. Steve, thank you so much for being here the book again is called what it takes, lessons in the pursuit of excellence. Were going to make sure that we want to remind everybody about cnbcs delivering alpha summit it returns this thursday some of the worlds most influential Money Managers and figures will be there, cluing steve. Steve, thank you again for being with us. Its great to see you. Thanks, becky. A lot more coming up on squawk. Were going to talk about amazon, a peek at where the retail giant is heading next through the tens of thousands of job openings it is hoping to fill and then later, an in depth look at the markets with a very special guest. Executive chairman david booth is going to join us. You dont want to miss that interview and what he has to say. Ay tedstun, youre watching squawk box right here on cnbc. Something on the line. Brick andmortar stores are going out of business like amazon is the future now the people we have talked to here, theres many of them, are looking for jobs in i. T. , marketing, managerial positions, operations. We even spoke to a guy whos here not looking for a job but looking to pitch jeff bezos on his own security company, which says a lot about what amazon has to come. It is now americas second largest employer and its moving into businesses beyond ecommerce. We took a look at open positions on amazons career websites. We saw a majority of open positions are still at amazons open businesses. Take a look. This is the booth right here you see there is lots of interest also a lot of open positions at retail, fulfillment and operations there are less open positions, according to the careers website, in amazons newer, more innovative businesses like original content and advertising. Guys, i want to mention that right across the street from here is a reminder that not all is rosie amazon is not just hiring. In some places it is scaling back theres a whole foods where just last week amazon said it would be cutting medical benefits for workers starting next year well come over here on our lunch break, guys. Coming back, ohio senator rob portman. Stay tuned, you are watching squawk box on cnbc whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Welcome back to squawk box, everyone this is cnbc and we are live from the Nasdaq Market site in times square lets get you caught up on some of the big stories of the day. Kraft heinz, the shares are lower. They sold 25. 1 million shares. The Company Still holds 245 million shares its notable because it is a Big Partnership that 3g and Berkshire Hathaway were in as of now the market is selling off. The executive suite shuffling continues at seaworld. The chief executive officer Gustavo Antorcha is leaving seven months after taking the job. In a statement he mentioned a difference of approach the cfo mark swanson will serve as the interim ceo. Financial aid recipients will be able to graduate debt free it will increase the scholarship offerings. That matches other schools in new york including langone. New cnbc data this morning on President Trumps handling of the economy. The one and only Steve Liesmans got that data to share with us steve. Thanks very much. Respondents to the cnbc fed survey have ratcheted up their concern and the effects of the trade war. Theyve lowered their outlook of growth and slashed their approval of President Trumps handling of the economy. Spiking the 32 , the highest level of the Trump Presidency and the highest since 2011 it was below 20 for all of 2018. Now recession is not the base case for the 43 respondents. Slower growth is gdp slowing to 2. 1 this year from 2 1 2 this is q 4, q 4 and slipping lower to 1. 8 in 2020. The hit to growth is a hit to President Trumps economic rating President Trumps handling of the economy dropping to 20 points to 41 . His net approval which is approval minus disapproval is at 2 the lowest of his presidency we talked about this in the 6 a. M. Hour. 62 say that trade changes are playing a significant role in the global slowdown. That is up from 31 in april respondents still say theres a 51 chance the president s reelected to a second term but that is down from 58 in july. Steve, thank you for that appreciate it. We are going to look forward to more survey results. You have them all day. Throughout the day including some stuff on what people think about the president s comments on the Federal Reserve youre not going to give us more than a hint that thats the question what about the answer . They dont like it in a way that they were not bothered by it before. It seems like the president what do you mean about before we have asked continuously this question about is it appropriate, is it not appropriate . They feel like the president s crossed a line here. Was it the boneheads zment. It might have been the enemy comment. Xi or whos a bigger enemy. I was thinking, are you still the mud rakers, your band . I have two bands. One is the stellar and the moon cussers. Jay powell and the boneheads. Jay plays guitar. Does he really . Pretty good. There was a jay jay and the i cant remember. There was a band just jay and the jay and the thunder birds, blue birds, Something Like that. Yeah is that your question about my Federal Reserve survey. Jay and the americans. You dont have anything more specific youd like to ask me about the fed or the growth that was really i didnt need any comment back. You didnt need a comment no, i was going to rob portman. I wanted to get to the senator. Lets not leave the senator waiting. Lets talk more about where the things stand in the economy, trade war, all of this following last weeks attack on saudi arabia former u. S. Trade representative, former omb director, star of 60 minutes that i watched on sunday night and well talk a little bit we were just referencing that again, senator that piece was staggering. Powerful, yeah. Horrible. I just wonder if 60 minutes knew that it played into President Trumps hard line against china and whether they inadvertently let that get on the air waves that it was bolstering the case, i think, that china isnt necessarily negotiating in good faith with us at all times. Is that fair to say after that piece, rob for those who didnt see it, joe, this is about the fact that china for years has been sending us this poison through the mail system, fentanyl, and its coming directly from china in the mail system. Theyve done very little to stop it they have the power to do that so even now, joe, we still dont have all the data we need on the mail thats coming into our country to be able to identify the packages and try to keep some of this out. Senator, it affected the way i view Everything Else in the negotiations though. Yeah. I think so i think it i think it is one of the irritants in the relationship and the president has raised it at every meeting ive been over there and ive raised it with senior officials in their administration. In the Chinese Government. Its insidious. Im wondering whether its the money or whether theres something even larger to the whole notion of, you know, sort of infecting a society with the poison as well, rob. I mean, thats bad news. Yeah. Its its fentanyl is the killer fentanyl has been responsible for more Overdose Deaths than any other drugs and even today while we have some progress on heroin and prescription drugs, fentanyl continues to be mixed with others. More than guns, more than traffic deaths. Yeah. Yeah 72,000 people died of overdoses in 2017 at the High Water Mark again, a little better now fentanyl continues to be the top problem and they could do something about it and they should what should we do with iran right now if you were the president . Well, we need all the information first. We need to get the europeans on board. I think thats possible from what i know because it appears that the initial claims that this came from yemen just arent true the houthis claimed responsibility but it came from the direction of iraq or iran. The question is who in iraq might have sent these drones and these missiles we need better information when we have the information i think we need to get the europeans with us and others in the region and respond. If you were i mean, you know youre a trade representative so you know exactly whats going on. Can you just play out whats going to happen in the next two, three, four weeks. You have the lower level delegation coming now from china, then after the october 1st date or whatever were waiting for to do it in earnest, do you see this proceeding and do you think theyre coming back to where they were in april or is that still going to be are they going to be half measures or maybe separate security from trade or Something Like that what will we be able to do joe, the Smoke Signals are a little more positive including coming from china saying theyre willing to talk. You look at whats happened to the chinese economy. It has weakened. Their devaluation of their currency helps with regard to trade but the fundamentals are not as strong. I think they see a need to do something. One thing thats been happening, theres been some discussion of this, that some companies are choosing not to manufacture or locate in china but, rather, choose other places like vietnam, malaysia, indonesia, other spots. I think thats part of what the Chinese Government is concerned about. Lack of investment in addition to the trade issues. So i think this one might work and, look, we need to make progress on three big areas. One is the imbalance overall and they need to open up more of our products but the big ones really are tech transfer, intellectual property which is how this all got started with the 301 investigation and then they need to stop subsidizing so much. They have the enterprises that are obviously heavily subsidized they subsidize other industries and sectors of the economy thats not fair. Thats not consistent with our international rules. I think its a great step forward. Are you going to be able to get usmca done before the end of the year, senator . Gosh, i hope so give me a break. I know. This thing is its a no brainer to look at this and say its better than the status quo, which is nafta for democrats its better than the status quo by far and i think for republicans it is too for those of us more on the pro trade side because this agreement does have enforceable labor standards, it does have enforceable standards, it has a minimum wage of40 to 45 of th auto industry. It brings jobs back here the itc has said that. On intellectual property its an improvement. On Digital Economy theres nothing in nafta thats absolutely needed this is better in every respect than the status quo. Weve got to run, senator are the 49ers really that much bet wither this year, senator . I mean, is that really did you see that did you watch any of that . I think the bengals offensive line was our biggest problem thats a serious one i want the three hours back watching the bearcats play ohio state. Id like that time back. Well, ryan day is doing an awesome job, 30 i think ohio state is real this year. They are tough. I watched that against indiana so exbasketball. Thats it. As of last night the reds are out of contention. Duh theyre like 15 games below. 500. Just 11 down. 11 down hope springs eternal theres nowhere to go but up. Exactly. In washington with you guys. In washington and with cincinnati sports. Thanks. Take care, joe. Thanks, guys. Still to come this morning, some top stocks making moves ahead of the opening bell and our special interview with legendary investor david booth who will weigh in on the markets, Interest Rates and recession risks when squawk box comes back. Dont go away. Servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. It also has the highest growth in manufacturing jobs in the us. Its a competition for the talent. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. Classical Music playing throughout welcome back, everybody. Its under an hour to go dom chu has a look at the biggest morning movers what do you have for the day we have a mix of analyst calls and news driving the early action were going to start with shares of at least home depot were talking about lower by about maybe 3, 1 1 2 at this stage. Roughly 25,000 shares premarket getting downgraded to a neutral from a prior buy theyve removed the price target the elevated valuations related to the broader market. So those shares are off 1 1 2 theres shares of zynga higher by over 2 premarket just around 80,000 shares premarket. The maker of online games is being called a best idea in the video Game Industry by analysts over at stevens. The stock remains over weight by 8. 25 target price they say zynga is a beneficiary within mobile gaming and that the shares deserve a premium valuation. Well end on shares of shopify down 5 . Roughly 230,000 shares premarket the Online Shopping platform said it will raise money through a secondary offering to the tune of 1. 9 million shares. Shopify plans to use the money to shore up the Balance Sheet and give it flexibility. The shares up 5 , andrew, premarket. Ill send things back over to you. Thank you for that. Here with us to share some perspective about the markets and the economy is legendary investor, david booth. It over seas half a trillion dollars worth of assets and this september marks your is it 50 years . Yes. 50 years. Since i took genes class. Where this all began. Thats where it all began even though everyone says you cant time the market, i want to ask you at least where you think we are in the cycle. You cant time the market if you cant get it directionally right. I agree with that the evidence is there is no compelling evidence that anybody can systematically time it right. Thats the problem it doesnt mean you shouldnt Pay Attention to whats going on in the market but you shouldnt be trying to time each individual move. Where do you think we really are . Well, where i think we are is that weve had 11 years of a very good market these but and frequently people say, well, youre close to a high. Does that mean something and the evidence is it really doesnt. I mean, the for example, markets have a tendency to go one direction for a long time. You just dont know how long when we started the firm in 1981 the s p hadnt kept pace with treasury bills for 16 years. People go, how long do you have to wait . We dont know. You know, weve been watching yield curves too and trying to read whether thats a signal for things you say not for well, that is interesting and it ties in actually with the 50 years of friendship with fama starting 50 years ago leading academics starting to tweak conventional wisdom in a way that turned out to be very beneficial this Movement Towards lower fees, better risk controls just this week or just in the last month fama and his colleague ken french hosted the dimensional blog a study of what is the inverted yield curve say about future stock returns a lot of people i mean, ive seen a lot of people on the show comment it means this or that. Theyve done an exhaustive study looking at all of the inverted yield curves all around the world and the conclusion is it doesnt mean anything for future of stock returns half the time its beneficial, half half the time it hurts there is no reason to take corrective action based on the shape of the yield curve in terms of investing in stocks. What do you make of negative yields in europe when you build your models, do you ever think that was a plausible scenario no, never thought i still cant believe it, right . If you give the government more money than you expect to get back, it still comes as a shock. You think about equities and think about that is coming here. Well, i mean, the thing the counsel is the real returns and real returns have to be negative because nominal yields are negative thats in terms of real returns, Interest Rates are at the normal level a lot of times when real Interest Rates have been negative. How much work have you done on tariffs you looked at history. Thats another piece of this, last 50 years, there have been tariffs all over the place, not here typically, though right starting after world war ii, they started coming down a lot in the 19th century, tariffs were a big part of the platform of the republican party. No, i mean, i think obviously, coming from chicago, not a big fan of tariffs only excuse would be if it is necessary to get fair tried longterm, then you can make a case for it. Otherwise, not much of a case for tariffs. Unfortunately everybody else has it thats the problem thats the problem. Thats what im saying as long as if you can make what you want is a fair game. You cant mackke a case for t unfortunately theyre everywhere. Yeah. Thats where we are. Thats part of the problem i got a different question for you. He can didn a number of ceos, 180 of them with the business round table a couple of weeks ago, announced they were changing their talking about university of chicago and their purpose if you will where they said, you know, not only are we in the businessof making profits, but we have other responsibilities a number of people didnt sign it, including steven swartzman, i interviewed steven mnuchin, our treasury secretary last week, he said he wouldnt have signed it eerither. What do you think of this phenomenon a lot had to do with guns the whole as a as a person, not an investor, i cant figure out why you need to have the ability to buy an ak47, right . That i think i would i think there is a point to say, look, we are, in addition to bringing a company, we are citizens you cant you cant get too carried away with it i think the spirit is right in that letter. Some of the people that signed it, i thought might be blushing a bit, because of their previous actions. But who are you talking about some of the Ride Sharing Companies that are dealing with issues for ride sharing or, you have the banks. You have banks that open fictitious accounts and now they want to be holding themselves out to be good corporate citizens some of that i think is a little selfserving. Great to see you. Thank you. Congratulations on 50 years come on back. Okay, great. Good seeing you. Thank you down to the new york stock exchange, jim cramer, what is on the radar for you today, jim we had eight in a row until yesterday in the dow little weakness today. I just see kraft heinz deal, the shopify deal, some fun coe, still a bunch of ipos coming it was nice to see a relief by not having wework come saudi aramco these were the kinds of things that made me feel like, look out, there is too much supply, it is not what we want so thats good news. Kraft heinz, though, wow they got so much behind that what happened . That was a Great Company and now it is just bad discouraging what data points should we be ready for . I feel like were sort of were actually going to have earnings reports not too far from now again we have fedex tonight fedex is important look, the fed is in a box because of what you guys have been talking about, which is with stevie. You have problems with bone head, problems with whos the enemy. I think it will be difficult for this time, for the fed to dodge these comments i know jay powell is a diplomat. If i were in that audience, i would keep hammering on how do you do your job, how do you do your job what is it like . I think he may think the question is inappropriate. Theyre no longer inappropriate. Because it is front and center that the president hates the guy. I dont know thats a hard call on how to run the fed. We talked about that earlier. When he cuts, he has one of two things, if he he either trump was right and hes cutting, because trump said it, or hes finally saying, okay, mr. President , ill do what you tell me to do it is one or the other trump was right in the first place or youre doing it because trump is telling you to do it. Neither one of those are very good. We can write those stories and decide which ones to put in. Used to write everything but the top, and then whoever won you put in the first paragraph cincinnati beat so and so. You and i can write these stories. A front to the president , in a complete cave to the president , and both of them sound bad i just think that it is a no win, but it is worth watching. All right we will squawk on the street worth watching at 9 00 well see you then see you thank you 3 1 2 minutes dont miss an exclusive interview later on squawk m. Asrn with bob bakish, 11 00 a. Ete time. Stay tuned squawk box is coming right back nervously ready . Ok, ready sweetie . Nice, you ready to go again . Are you ready, dad . Im ready. Imagine if your Life Insurance could help you live for today and safeguard tomorrow, so youre ready for anything. Life insurance designed to protect generations of families. Thats the power of pacific. Ask a financial professional about pacific life. Were changing whats possible every single day. With technology that helps you offer shoppers a better experience. Take your companys app. We can add in all sorts of capabilities, which help your customers manage rewards, offers, and payments on the fly. And now, applying for credit can happen in a flash. That way, more people can start shopping with you on the spot, wherever they are. Hows that for changing whats possible . Welcome back final check on the markets the futures are indicated down again this morning not massive moves, but down by 60 points after some weakness yesterday. That was the first day out of nine that we actually had seen the dow the dow close lower s p was down yesterday, only by on friday, by 2 points down yesterday as well you can see right now, s p futures indicated down by 4. Dow futures down by 58 nasdaq indicated off by 6. 66 points look out with that oil prices rebounding slightly they were the last time we checked on this. Down by 1. 4 even after the steep declines we saw yesterday, wti and brent down by 14 . For brent, that was the biggest decline they have seen since they have been keeping records in 1988 on that. All right, folks, have a great day today. Join us tomorrow right now it is time for squawk on the street. Good tuesday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david faber a lot of Corporate News from wework to fedex to at t. Fed begins a two day meeting, overnight repo squeeze getting interesting. The saudis make their First Official comments today. Road map begins with just call it we wait wework delaying the ipo rollout plans after a frosty investor response were going get a look at kraft highs around