They push back against the newly imposed mask ban it is monday, october 7th, and Worldwide Exchange begins right now. Well, good morning, good afternoon or good evening are and welcome from wherever in the world you may be watching. Im Brian Sullivan happy monday thanks for joining us. Here is how your money, markets and Global Markets are looking dow futures are indicating that the markets will drop 136 points right now at the open. Remember, what we have seen at 5 00 a. M. Is that this trend tends to get magnified unless w see big data points that change it around. Not saying things will get worse but we have seen this tend to accelerate as the traders come into their desks in new york now in bond, no big Economic Data out today later on this week, yes. And no earnings out today but of course the big earning season hard to believe already kicks off next week. Right around the world you had china and hong kong closed for a National Holiday the japanese market down fractionally. 16 of 1 and south korean economy rose and australian as well in europe, not a major trend that we are seeing anywhere overseas yeah, theres a lot of red but the numbers there are quite small. So, theres your set up. Lets get to the news and begin, where else, with trade and the likely reason why futures are pointing to a lower open chinese officials are report lid growing hesitant to pursue a broad trade deal with the United States as talks are set to resume this week the chinese vice premier who will lead negotiations for his country is telling dignitaries his offer to the United States will apparently not include commitments on reforming chinas industrial policy or government subsidies. Remember, these are among the Trump Administrations main demands in the trade talks now, if that report is accurate, this is viewed as a big setback and the markets, as you noticed, are reflecting it. Trade talks are not the only thing on this calendar this week expect new comments from fed chairman jay powell and minutes from the fed meeting joining me to talk about that direction managing director dave maza ill join you on set in just one minute overall, what kinds of moves have you seeing your clients make right now at direction in. Its really interesting we know headlines you just went through trade talks. Were beginning to see a lot of interesting moves setting up for the 2020 election. In particular in area Like Health Care and bio tech as we know is getting a lot of attention as Elizabeth Warren is gaining in the polls but were seeing traders engage on both sides. Both our leverage bully tf and bearry tf. What are they doing in particular buying bio tech theyre moving away from Bigger Health names. A lot of potential impact for getting out of big fapharma correct bio tech is riskier area in the health care space. Its a bit insulated from some of the areas like you see with big pharma were seeing again activity there, moving away from the bigger space and moving into some of the smaller bio tech names. Theyre placing bets that bio tech in the near term will go up. 2020 election is sometime away theres a lot of room to run but what this is telling me is that even with all the headlines that we see, some of the negative Economic Data last week the concerns of recession, people are starting to see through that and seeing especially if theyre in the trading community, beginning to start placing some bets, placing some areas that might actually do well regardless of the outcome of what trade talks might be. When you look at the macro picture, the bigger etfs the more broad market etfs are people becoming more negative on the overall market or staying long and strong . The marketplace feels long and strong but its more been climbing a wall of worry weve been this fat trading range from august. We expect that to continue to be the case so we have seen investors be more defensive and begin to pick their spots whether thats an industry like bio tech or in other cases more defensive type companies. We have been really in a trading range for the last 18 months if you obviously december skewed everything. Yes. December didnt exist, wouldnt that be nice, if december didnt exist, the markets would be solidly higher. Were actually basically with the s p and the nasdaq effectively where we were a year, year and a half ago. Thats exactly right. So the trend that we have been in, again f you exclude the kind of draw down we saw in q4 has been almost flat slightly positive and theres been big divergences of areas that have done well look at the year over year performances utility is the best performing sector you never think that you continue to think its tech and the areas get a lot of attention. That tells you something even though markets have been going up and going up pretty well, its been led by the bond proxy, the most defensive area so investors can still have opportunities to actually. Hey, dave, utilities would outperform netflix, you have to lay off the hooch because you have been drinking but guess, that person is right. Exactly right. Have a great week. Thank you. Your other big story on monday, deterioration of the contract talks in detroit. General motors talks now entering its fourth week the two sides appear to be farther apart than ever before Contessa Brewer more on this story. Day 22 of this strike uaw Vice President sent a letter to members yesterday informing them the union presented a proposal to gm this weekend. Gm reverted back to an offer that had already been rejected it says the offer did not address a host of items such as product commitments for u. S. Factories and job security he says the uaw could not be more disappointed with gm and after making some progress on important issues the company has shown an unwillingness to pay its Union Workers fairly in a statement, gm says it continues to negotiate in good faith with the uaw and is committed to talking around the clock to resolve the contract dispute. The negotiated press reports the uaw has voiced concerns about gm increasing production in mexico where it builds two suvs and pickup trucks and small cars 20 are made in mexico gm u. S. Factories have been shut down since the union walked out and the company is losing more than 80 million a day and workers are getting 250 a week in strike pay a fifth of what they normally earn it really boils down to this longterm job security about where jobs are, brian. The company says it would invest 7 billion in plants in the u. S. But still wants flexibility to move plants around where they see fit. The workers may not be unionize ord feel the protections that they once had certainly in michigan and ohio and those places. Yeah. Youre right, brian. Contessa, thank you very much. When we come back on this monday morning, tensions rising again over the weekend in hong kong protesters pushing back against emergency measures against Wearing Masks. Later, a lesson in leadership how tim cook is saving apple from the trade war and using his personal ties to the white house to do it but first, that trade war hitting americas heartland right where it hurts in the heartland is where we find our Frank Holland early this monday morning. Frank. Reporter good morning, brian. Were in the quad cities area where normally farmers would have spent the last few weeks working their fields and probably buying some new equipment. Instead theyre talking about weather and the on going trade war. Well explain how thats ke octing john deere and other marsf Farm Machinery on Worldwide Exchange. So servicenow put your workflows in the cloud, huh . Mmhm. 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. Welcome back and good morning. We talk about stocks on cnbc, its not just wall street feeling the pinch of the on going u. S. china trade war farmer and companies in americas heartland getting the squeeze. And by the way, some rough weather not helping things either Frank Holland joining us from east moline, illinois. Good morning, frank. Reporter good morning, brian. Farm machinery shipments total 22 billion, bill number, but thats an 18 decline from 2014 and major manufacturers like the iconic john deere are feeling the impact deere says its Agriculture Division is down 6 and announced layoffs here at the factory where it makes farm equipment. Cat pillar saying those sales are down for the first half of the year now wet weather here in the midwest, flooding and rain a big factor also the on going trade war. Weve been talking to farmers here in the quad cities like phil four, a six generation farmer whose cash crop is soy beans and he owns 20 pieces of deere equipment, he says hes holding back on buying or financing any new equipment this season im just trying to take a wait and see attitude, maintain the old equipment and then if times improve well roll in to some newer tractors or combines. Weve backed off on any capital purchases of anything very high dollar well postpone anything in the future for probably a full year, probably two years out and just maintain the line that we now have reporter and brian, the willingness of farmers to make big Capital Investments like buying tractors and combines, well thats plummeted over the last three months. According to the agricultural barometer, coming up on thursday, well get a better reading of just how bad the situation is for these farm machine makers the numbers will come out coincidentally on thursday the same day that u. S. china trade talks resume back over to you. Frank, are there any other factors that might make farmers feel a little more confident about buying new equipment right now . Reporter yeah, brian absolutely we talked to these farmers they say a more optimistic hog forecast over in china the hogs over in china the herd is down about 50 this year because of african swine fever in china, they buy a lot of soy beans and a lot of corn to use as hog feed. That situation can turn around, these farmers will buy a lot better about buying the tractors and combines. Its pork that saves the day once again Frank Holland in east moline, illinois thanks for being there see you soon. Thank you, brian. Still on deck, another shoe dropping in the impeachment inquiry into President Trump and the now infamous ukraine phone call. Later, no ice, no glass, no bitters, no problem. The latest high end whiskey craze that apparently is sweeping somewhere well tell you about it. Its a little weird. Worldwide exchange returns right after this whether your beauty routine is 3 steps. Or 57, make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. As a principal i can tell you this. When one student gets left behind, we all get left behind. 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. Welcome back 5 17 here on the east coast in the morning. 5 17 p. M. There in hong kong as you can see dusk beginning to set in it certainly looks peaceful from a distance but over the weekend, inside hong kong, there was no sign of peace. Protesters defying government bans about Wearing Masks over the weekend. Prodemocracy demonstrators turned out by the tens of thousands. Many hid their faces and they were met with tear gas there were no obvious signs of violence against police, but many protesters ignored the gas, dousing them with water or tossing them right back at the Police Hong Kong leaders had invoked colonial era Emergency Powers to threaten protesters with up to a year in prison if they hid their faces. Police say they were participating in unlawful assemblies and warned protesters to leave immediately or face what they call dispersal operations on deck, fear overtaking greed. How Investors Sentiment about ipo could be a game changer for the markets going forward. Plus, your morning rbi, the most random but interesting thing youll hear today has to do with how all day sausage is making investors go hog wild stick around to take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. You should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Welcome back and good morning. Good morning, washington, d. C. Sun not up yet. Well, a secondwhistleblower is now coming forward with new details on President Trumps dealings with ukraine this time with apparent firsthand knowledge of the allegations. Nbcs tracie potts joining us now with more from washington. Good morning, tracie. Brian, good morning that could be the key here in fact, it could be a game changer in this impeachment inquiry if, in fact, the second person has his or her own knowledge of what was said on that phone call between President Trump and ukraines leader reporter an attorney for the original whistleblower now claims to represent a second person with firsthand knowledge of the phone call where President Trump allegedly pressured ukraine to investigate joe biden. Why should i care at all what his opinion or judgment of this transcript is. You and i can read it. Reporter the white house says it doesnt matter how many people decide to call themselves whistleblowers, it doesnt change the fact that he, President Trump, has done nothing wrong. The president tweets this new whistleblower also has secondhand information. Democrats insist theres evidence to support the original complaint. The whistleblower complaint has been corroborated by information in the Public Domain every step of the way. This is as serious as it gets. Reporter four current around former state Department Officials will tell their stories to congress including the European Union ambassador implicated in Text Messages released last week. What i certainly hope to hear is how he can explain his behavior in pressing the new ukrainian president to do something of such a sort of nature. Reporter his deposition is set for tuesday. Meantime, were continuing to follow whats happening with this second whistleblower, brian. Turns out the second whistleblower is not expected to file a separate complaint. Wrapped into that one complaint i would imagine. Tracie potts in washington, d. C. Tracie, thank you very much. So lets get a check on this mornings other top headlines outside of the world of money and business and get you set up for the news day nbcs Francis Rivera with those. Good morning. We start with breaking news overnight. Police arrested one of the two suspects that left four dead in the kansas city bar. They first responded to a fight at tequila kc and mass shooting just after last call sunday morning. Four people were killed and five others were wounded. One suspect is in custody and police are still searching for the second. In a major policy shift, turkey is moving forward with a military operation in syria. Turkish military convoys have been bringing troops and equipment inside the countrys northern region. The white house says the u. S. Will not be involved more than 1,000 u. S. Troops are deployed in northeastern syria and work with kurdish troops against isis its now up to turkey to figure out what to do with isis fighters that have been captured in the area. President trump spoke to the turkish president about establishing a safe zone east of the ewe frats river. Celebrities including oprah winfrey, bhoopky goldberg and many more celebrated the grand opening of tyler perrys new production studio in atlanta brian, for a monday morning, those are your headlines. Everybody is moving south and west except for us apparently francis. Thank you very much. Coming up, an upgrade for uber just crossing the desk. Well tell you who and by how much coming up. Plus, how tim cook won the ear and the support of one mr. President trump. Those stories and more on Worldwide Exchange. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Everyone has something to say. But in a world full of talking, shouldnt somebody be listening . So. Lets talk. We are edward jones. With one Financial Advisor per office, were built for hearing whats important to you. One to one. Edward jones. Its time for investing to feel individual. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Red arrows futures pointing to another big drop to begin your week. Dow futures off triple digits. Its fear versus greed and battle playing out amid ipo investors right now, and the winner could have a big impact on the broader markets plus, who doesnt love breakfast for breakfast . But what about break its for dinner mcdonalds investors have been loving it. Well give you the answers your rbi on this monday, october 7th and youre watching Worldwide Exchange on cnbc welcome back and good morning. Thanks for being with us here on cnbc im Brian Sullivan. Hope you had a great weekend not looking like a great start to the week for the gloenl markets. In fact, dow futures are down 146 points right now remember we told you at the top of the 5 if you missed it, it was this, which is what we have seen the last couple months is that whatever the futures trend is during this program, it tends to accelerate in that direction absent any big change in data or marketmoving headline thats exactly what we saw futures down 100 points 30 minutes ago and now down to 145 points right now of course after what was a wild week with big early drops last week but we came back and, in fact, you wouldnt know it necessarily given what was happening at the beginning of the week but the nasdaq and nasdaq 100 actually finished last week higher bad start to the week right now this week. At least indicated no big Economic Data or earnings out today. Ramps up at the end of the week and also earning season really kicking off next week. Tenyear bonds at 1. 52 . The yields have come down in the last couple days in asia, we saw the chinese and hong kong markets both closed for National Holidays. Japan did trade and traded down saw the south korean market rise fractionally and in europe a similar story. A lot of red on the screen but its not big moves either way. You can see the major markets down but were talking 1 or 2 tenths of 1 citi group upgrading uber. Theyre taking it to a buy from a neutral. They keep their same target 45. The analysts sayover hanging from the ipo will likely persist. They think the Third Quarter earnings may, quote, refocus the story particularly on ride fundamentals the analyst at citi also believes Revenue Growth will accelerate and the next earnings will make it more favorable on uber stock 45 price target is 50 higher than uber shares are right now uber getting a little bump on the upgrade up 2. 5 but it literally crossed just a couple minutes ago. Speaking of ipos, as stock futures point to another rocky start for the overall markets, some are looking to one area of the market possibly to blame for stocks performance as of late. That is the ipo market according to data shares of Technology Startups and other companies that went public in the u. S. This year are trading roughly 5 above their offering price on average yes, thats positive but it is far short of the s p 500s nearly 18 jump lets take a look now at some of the worst and most notable debuts of the year, smile direct down 34 uber we mentioned it, 33 down from its ipo lyft, peleton, slack and the real real looks pretty good being down only 1 from its ipo price. Joining us now to talk more about this is Corporate Finance and deals editor at the financial times. And he joins us this morning great piece. So for our viewers who couldnt read it and shame on them but they couldnt read it, what is the overall take away from the ipo market and maybe the macro market in general . Well, i think what were seeing is something that is quite strange, right, these companies that are ipoing are supposed to be the most interesting, hottest companies in Global Economy and when it comes to market is supposed to be this opportunity for investors of all shapes and sizes to get their hands on them what youre seeing are the Public Markets supposed to accept this product brought to them by investment banks with open arms fundamentally reject them and the stuff you showed on the screen just now doesnt capture the worst one of all which was wework, wasnt just a rejection of the ipo they had to pull, it was the concept evaluation and everything that went along with it what youre seeing is the ones you showed on the screen, uber, lyft, peleton, slack, the most exciting new companies in our economy. And at the same time, you know, theyre not performing anywhere near what their shareholders would have wanted them to do when they listed whats happened is basically the private markets have sucked out all of the use there are in these companies and the Public Markets evaluations that investors are fundamentally rejecting the distortion between the push and pull is really playing out in the last few weeks and how that ties into the macro economy, the s p 500 and some of these other normal companies are performing totally fine with respect to share prices so youre seeing the kind of exciting companies having been overhyped and being rejected and some of the more sort of run of the mill companies were all familiar with doing much better. Is there a necessarily a reason why you guys have dug when you dig into this arash, is there a reason why these ipos have done so poorly, just that investors dont like the stock or the viewpoint that the private markets extracted most of the gains beforehand or the bankers screwed up in initially pricing it yeah. I mean, if you want to look at the ipo market as a power struggle between buy side and sell side, the sell side had the upper hand they had the companies they kept private for very long periods of time which they had time to build private investors bid up through various rounds six months ago every piece would say the private markets are the hottest place in the investing world. Now in the Public Markets are where companies are pawned off on to Retail Investors the Public Market saying this thing is illogical, not something we can purchase at this price and the investment banks talk about valuing this in their pitches between 50 and 100 billion and valuation of 47 billion of soft bank cut by at least a third if not more and that is something we really havent seen in the last decade in terms of a rejection of that size that brought it down to earth. I think thats had a knockon effect across the board. Several ipos were pulled including endeavor which has ufc, uber continue to struggle whats happened is all these Companies Sold on growth as the value in it are now being measured for profit. Thats exactly what happens in ipo markets. This growth story stuff is all hype and i need to see profits thats the main, main thing happening here. Basically profits are back, they matter. Profits matter. And we look out at the ipo calendar going forward, does it look any better, arash right now i would say that im just back from new york, the sentiment is very negative around the market. Everyone is talk about we work what happens is banks do to rebuild confidence in the market is they have to give up. So if youre the next batch of companies coming out, the banks will advise you to go out lower than you hoped valuations hooch they have to give something up now to the buy side. That push and pull has to readjust and often takes a little bit of time the next few companies out in the coming weeks will have a much lower valuation when promised. By the way, ara shrks, next time you fly across the ocean, let us know, well have you on set. Dont be a stranger. Thanks, brian. An interesting investigation in the wall street journal over the weekend on a rather unlikely friendship. The headline, how tim cook won Donald Trumps ear now according to sources close to the wall street journal with the threat of tariffs looming and apple standing to lose billions of dollars, tim cook reached out to one of his most important white house contacts, Jared Kushner. Joining us now to talk more about this and maybe the lesson it provides in leadership is yale school of management jeffrey sonnen feld and one of our favorite guests. Jeff, great to see you early on this monday morning. What did mr. War eagle, tim cook, get right about his dealings with the white house . Thanks. Thank you so much for the favorite guest or one of the favorite guest celebrations. You just made my week. Something that tim cook does is he understands that President Trump you dont reach him by hectoring him with email tweet storms or responding to them or certainly with a lot of public grand standing but also surprising despite the ledges of k street lobbyists he doesnt respond to that well people talk about who from industry is represented in the Trump Administration on issues theyre concerned about independence when it comes to apple, he doesnt rely on third parties to speak to them, he goes directly. That plays really well to President Trump. Its a personal diplomacy, one on one, mono e mon moe, thats what President Trump responds to apple, in fact, pays far less for lobbying that many of its competitors do. What a lesson as opposed to hiring these k street firms, not that theres anything wrong with the lobbying profession, tim cook doing a lot more subtly. One instance the journal points out that cook and trump had some kind of a conversation he convinced president to maybe roll back planned tariffs on the iphones and a day or two later apple just happened to put out a press release saying wow, look at the growth were seeing didnt take more than a dinner and a press release to maybe move the markets no. Something that people dont understand about President Trump and obviously with a lot of the negative swirl we see right now of some bad choices from the white house, driving himself into a corner, that its hard to believe that President Trump actually when he doesnt feel humiliated is open to honest debate he just doesnt want to be humiliated or embarrassed. When cook very early on, tim cook, met with him soon after election, i ran into soefrl ceos the day of that meeting larry page of google was another, several met very successfully and had a great discussion of course, Steve Schwarzman of blackstone, and a few others had a good rapport by just explaining issues quietly to him. The one on ones work especially well, but its recent not just going back to 2016 or we saw a lot of Business Community being divided up as trump likes to play one off against each other in the spring of 2017, cook stayed out of that talked individually about issues and recently this past august with trade sanctions arising, higher tariffs he managed to carve out again about the iphone its remarkable how he has managed to get a special relationship Jared Kushner helped a lot, too. Hes gone directly to kushner. This is not with any money being exchanged but with forceful arguments about trade. I think china is probably the Third Largest market to sell into apple and sell for apple i think the u. S. Is probably around 40 some percent, 42 , europe 24, 25 and china is around 20 thats very important apple revenues. How has cook been able to walk that line hooch you have seen it, the journal points it out, we had a ceo come out and tweet out i think President Trump is not terrible just something as innocuous as that in this environment cancel that company would be trending on twitter immediately if you associate with the white house, everybody comes out and says down with that product or service. How has tim cook been able to walk that line where people arent saying, oh, shame on tim cook and throw away your iphone the google pixel. Thats a really good point hooch more than 97 of political contributions coming from apple employees have been going to democrats. For that matter, most of the u. S. Business community, 70 republican for major businesses were not supportive of President Trump in 2016 and again now in our surveys most are not voting for his reelection. Nonetheless, and tim cook doesnt get political, but he also doesnt come off as haughty. Whether or not either side of the aisle finds themselves with tim cook, he talks rationally and takes independent issues on a couple issues such as on immigration policy early on was one and climate issues climate concerns where he has put out messages to employees but would go to the white house first, often Jared Kushner and give them a heads up warning and wouldnt make it personal to explain why they take a different point of view. Thats been very effective the advanced warning plus he has celebrated the administration sometimes as that apple benefitted from things that probably apple was already doing, like 350 Million AdvancedManufacturing Fund for investing in the u. S the mac pro has been made in texas but its being migrated to china but hes been managing to make commitments on how were investing in workers here in the u. S. In a way that doesnt seem like its antiamerican or an affront. Some of that helped. The tax policy said that really helped put another quarter billion dollars into the u. S. Already being invested here, he gave trump credit for it. The bottom line is the southern gentleman, the alabama guy figured it out. He finds a way to thread that needle you know that old expression you dont spit in the wind, you dont step on supermans cape and dont get in a tweet storm with President Trump unless you have a hard rock to throw. There you go. Tim cook has done it very gently and maybe a lesson for other ceos and just a lesson for the internet jeff sonnen feld, thank you very much coming up, fined for wearing an apple watch what would tim cook say . Well tell you why one nfl star is being forced to pay up this morning. Later, one little move has investors licking their chops over the past year its rbi, its random, its interesting and it sounds pretty good right now its delicious were back rhtft ts. Ig aerhi im 52. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Servicenow put our 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. Man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Welcome back, good morning 5 45 now on the east coast dow futures down 144 points, go back to bed. Crazy clowns, big ben and the most bizarre thing in cocktails you probably heard in a long time are topping your trending stories this morning thankfully theyre not just one combined story that would be super weird. Contessa brewer is here with more. You never know, brian. The jokers Box Office Debut was no laughing matter the warner brother movie shattered records during its opening weekend. The film depicts a darker, grittier version of the classic batman villain and raked in 93. 5 million in the u. S. Alone this weekend that makes joker the highest. Its ukraine. Not the ukraine. Its not the joker its joker. Its one of the biggest openings for an rrated film ever so far it made 234 Million Worldwide this in spite or hooch of the warnings that came out by Law Enforcement saying that they thought this movie would encourage mass violence. Yeah. You had the aurora shooting. Theres a thing there. Well, and its a very violent movie. Clearly did not affect the opening. This is the story of the day if you ask me. Okay, you know how the kids were doing the tide pods consuming them and had to do the warnings. Dont do that dont eat laundry. Imagine the beautiful tide pod instead of detergent it has booze. Thats the product scottish whiskey maker wants to make. Whiskey capsules are roughly the size and shape of tide pods. And to consume them, you just pop them in your mouth and then feel the gush of booze swirling through your teeth and tongue. Each capsule comes packed with roughly an ounce of whiskey cocktail and come in three flavors, citrus, wood and spice. Is that one finger of whiskey. How many pods did you have there, clancy . Can you see a situation where people just start popping a lot of pods. Hey. So im told that these edibles, edible pot, right. People heat a bunch its not doing anything. Next thing theyre under sucking their thumb like paranoid. Can you see the same thing happening, you dont realize how much youre taking in. Can you imagine the places you can sneak these into. Whats that down your leg thats whiskey just whiskey. Apple watches can just whiskey. I swear its whiskey. Apple watches can either make your life easier or result in massive fines. The nfl hit steelers quarterback Ben Roethlisberger with a 5,000 fine hooch here he is, poor guy, recovering from an injury back in the game kind of on the sidelines, but he was wearing an apple watch. And the league has a rule that bars players from wearing any electric device that can transmit messages. Roethlisberger says he didnt know he was violating a rule he wasnt given advanced notice. And also he wasnt even playing in the game. Hes been sidelined since he had elbow surgery. He is currently appealing the fine my question is, dont these refs have Something Better to do . Dont they have something on the field of play to watch i dont think thats the refs doing the fines. I think its nfl some nfl guy with a camera. We got an apple watch. Remember they use micro soft surface tablets. They have a huge sponsorship with the nfl. There in lies microsoft search. So big ben, miami university, not university of miami, finest player to come out of the red hawks makes 22 million this year so the 5 grand its the principle of the matter. The 5 grand is just a whiskey pod in his pocket basically. Got it. Contessa, thank you. On deck, the billionaire soft bank ceo telling a japanese magazine he is embarrassed and flustered. Well tell you why next. Later today, changing the world on commissions and investing, do not miss Charles Schwab on the halftime report, we mean the actual guy, Charles Schwab, the man, on halftime. Were back aerhift ts. Good morning welcome back dow futures down 144 points right now. Time for your executive recap. Lets do this. The uaw does the union labor talks with General Motors have taken a turn for the worse unions Vice President calls the latest proposal inadequate and in response gm says its committed to continuing discussions around the clock. Hsbc reported cutting up to 10,000 jobs for more than 4 of its global work force. Financial times says the banks interim ceo is looking to slash costs around the countdown. Softbank crow says he is embarrassed and flustered by his recent track record. When i look at the growth of u. S. And chinese companies, i feel strongly it is not good enough softbank is, of course the largest outside investor in wework last week reuters reported the Japanese Firm is struggling to attract investment to a giant second fund. Now back to the broader markets. Futures are pointing to losses again at the open. All this as investors gear up for earnings season about to officially kick off and check out this number, consensus calls for a 4 drop in Third Quarter profits. If true, that would mark the biggest yearly decline in profits in three years analysts have recently lowered their investments for all 11 sectors but is that reason to avoid the s p 500 and stocks in general right now . Joining us, chief equity Market Strategist and joe, rsm u. S. Chief economist. Thanks for coming in. Thanks for having us. If theyre lowering estimates, why is there any reason to own equities the consensus expectations were negative year over year earnings and we reported positive numbers ch. The analysts got it wrong well, to some degree the Company Management sort of lowered the barbie sort of sandbagging the analyst thats bring the numbers down and are able to manufacture a positive surprise i think were looking at a similar situation in the Third Quarter. Likely the Fourth Quarter as well. I cant figure out the economy, joe i tweeted out a story from roanoke, virginia. They cant find bus drivers. Offering 20 bucks an hour, Grocery Store they just built in new jersey, 15 bucks an hour plus bonus to start. I see those signs everywhere maybe we have recency bias or geographical bias, how do you see the economy, is it really slowing . Yes, were slowing back to trend. The economy is absorbing two supply shocks at the same time both driven by policy, one obviously is trade we spent a lot of time talking about that the other is immigration i dont think we spend nearly enough time about how tighter immigration led to tighter labor markets and we are seeing a little bit of bottlenecks to develop as you say around different regions in the economy. I think thats what youre seeing and what youre hearing. 7. 5 million open jobs right now. You think we need to bring in more workers we dont have them. We dont. If we have them, they dont have the skills or in the wrong physical location. We dont have enough willing and available workers at this point. We have a real Good Business in toronto. Toronto is number one startup capital in north america know why immigration policy go canada. We look at equities going back to the markets. If the economy is going back to trend to joes point at 1. 8 , we had this tenyear bull run is it harder and harder to make the longer term bull case or have Companies Got leaner and compressed their stocks, taken out stocks through bye backs. All of that has happened. The last time i was on the show, we talked that there would be consolidation in the markets in august, september and october, to some degree thats happening. If were not going into a recession and our call is still theres no risk of recession probably until the first half of 2021, then well get through this and if we can get some positive news on trade, i think that potentially would be a catalyst over the course of calendar 2021. Would it matter anymore the markets seem to be moving less on trade headlines. Apparently the two sides china said were not going to give you what you want. Economic news is clearly the most important and the beginning of last week the ism manufacturing and service data was very poor. That sent the market lower the pressure from negative chinese trade issues i think is whats creating the pressure on the economy. So if you can make some progress on that, potentially looking at better Economic News next year. Any indication, joe, that tariffs, we have done stories. We get that individual businesses are get whacked any indication that tariffs have taken down the economy as a whole . No, but that was the approximate cause of the slow down and then also you guys did a great piece earlier on gm 2 billion hit a month, 48,000 workers. Youll see that in the initial jobless claims and next months Monthly Employment report that will be the big story. Do we ignore next months monthly payroll number hooch the gm strike . Well hang a big asterisk on that. Not to steal anything away from our future coverage. We also have a big slow down in the energy markets. We tied the slow down in new oil and gas drilling with industrial production, right . Its not like it was ten years ago. You cant equate oil and gas now to ten years ago hooch its double the size. Its massively important whats it going to take for the next leg up for equities a turn in Energy Stocks perhaps . Certainly Stronger Economic growth one of the pressures here separate and apart from the iran, saudi arabia issues is the perceived lack or production in Global Demand for oil and gas. Unless and until you get that pickup in demand, thats going to drive in terms of supply demand balance the price of crude higher. Looking for negative corporate earnings in the Third Quarter, the expectation of growth being lower, we need to get stronger growth in order to get those prices higher. Yeah, we do remember, just a note that Energy Industry is twice as big as it was now than ten years ago. Lot of people talking about changing it. Well see what happens phil and joe, great stuff. Have a great week, gentleman. Time for your morning rbi. Today is the fourth birthday of mcdonalds offering all daybreak fast you want a mcmuffin at 3 00 p. M. , you got it what gift. But this birthday has been a gift to mcdonalds investors more than anything else. They announced this plan, the stock trading around 103 bucks now its at 211 that, my friends is a double the return for mcdonalds investors just about double that of the dow in the four years never underestimate the financial power of bacon random but interesting well see you tomorrow squawk boxbegins right now good morning, stock futures under pressure after a big day, though, on friday. Well tell you why china trade headlines are most likely to blame. Violence in hong kong has masked protesters defy an emergency order. The latest from a city in crisis. Plus, trouble in detroit gm worker strike enters its fourth week with no end in sight. Its monday, october 7th, 2019, and squawk box begins right now. Announcer live from new york, where business never sleeps, this is squawk box. Good morning welcome to squawk box right here on cnbc. Were live at the Nasdaq Market site in times square im Andrew Ross Sorkin along with joe kernen and melissa lee becky is off today the futures this hour, things look like they will open in the red right now. Concerns over china trade a big part of this dow off about 132 points right now. S p 500 would open down 15 points the nasdaq looking to open down 40 points. Lets also show you treasury yields at this hour. Look at the tenyear note, what youre looking at there is 1. 522. The twoyear note down to 1. 395. I still always like to look at the distinction. Absolutely. One potential drag in the markets this morning, chinese officials are reportedly growing hesitant to pursue a broad trade w