Germany down 1 . German Business Sentiment hits an eightyear low. And then watch our own 30 year falls below 210 overnight and everyone is going to be watching todays close. Lets get straight to the market, futures lower ahead of this mornings open, following a sharp selloff in the second consecutive monday Global Economic worries, falling yields continue to weigh on investor sentiment, driving toward safe haven. Gold now, the highest price in more than six years. The president tweeting a few moments ago through massive devaluation of their currency and pumping vast sums of money into their system, the tens of billions of dollars the u. S. Is receiving is a gift from china prices not up, no inflation, farmers getting more than china would be spending, fake news wont report what we will report that that core cpi 22 is the 17th month of plus 2 . There is a level of inflation in our country, but there is also, i think that when you see it, some of it is tariff but if youre a central banker, you recognize that there is a way of deflation coming when you have these rates going the way they are that is enough deflation the president seems to im not saying i want to be part of the fake news, so to speak it is entirely possible you can have hes depositing something that is hard to disagree with, thats whats happening, and fake news, lets say were fake news, were not fake news, but these are facts, there is not as much inflation, there is some inflation, but were better i think what i would emphasize is everybody wants our market everybody. Thats because were strong. The strong dollar will not necessarily be a great thing for us larry used to talk about, by the way, the chief Economic Advisory talk about king dollar. Steady dollar. Steady dollar i think what is needed is some sort of belief by someone other than the president that we can avoid or will not be in recession because this talk is endless, carl. I went home last night and i said im dealing with there are companies doing incredibly well you can say, jim, thats a video game okay, so then we have dr. Pepper, theyre doing incredible keurig is the most discretionary. Do you need to spend 199 on the new duo . There is a difference between a global recession and u. S. Recession. Todays fund manager survey is highest Recession Risk in eight years, but u. S. Equities are the most preferred region for the next 12 months there is a believer that because the rates are going down, it has to be recession, and yet i look at it like this. I say, what kind of moron who has any money if theyre in germany, if theyre in spain, in italy, in japan, in china, they can somehow get the money out, who wouldnt buy we all think the dollar is going up we all think our rates are going down who wouldnt buy our bonds are you arguing that a global recession, if in fact were headed there, is going to result in a meltup for u. S. Equities . Just people trying to get to the nearest bomb shelter, essentially . Somehow theyre not no way to say that lower rates will help equities. They help gold and thats because itdoesnt cost any you have low rates like this, gold is a natural and anytime rates have come down like this, people are supposed to buy gold. I think everyone is very confused theyre stuck. If they listen to the companies, with the exception of a couple of international companies, the numbers have been really good. You have to believe that somehow were going to be importing that decline. You look at the german economy, thats very sensitive to china china never let us sell much there. A lot of it was ag it is not like they sat there and bought all of our oil equipment. They just dont do it. So im stuck again i see ill give you a great example. Larry culp, the ceo of general electric, he buys 3 million worth of stock now hes bought 10 million. Hes got another guy on the board who 500,000, and what do i hear instead . You got to remember the summer of 2007, when everybody was worried that we thought that housing was too high yeah. It can turn on a dime housingi inwas hot until it was cold it is possible that we could be in recession because everyone thinks that it is so bad that we should be in recession i wish that i heard a company that felt that things were rolling over i see Something LikeInternational Paper yields five. I think, wow, maybe paper is rolling over chemicals have rolled over basic blocks that didnt even roll over in 1987. But i wish i heard the banks say that things were bad you say, the banks didnt say anything bad in 2007 everyone keeps analogizing 2007. The consumer was totally in hoch in 2007. People say student loan. Take student loan off the table. The Balance Sheets are very good i search for real reasons why we could go in recession, but when i hear when i say that, what people say is doesnt he realize that you dont have any real signals. Thats not the case. We would be looking for things like a sudden spike in jobless claims. Yes, i would be like, hey, look out there are people laying people off. Look, i was looking at a reit. It is a it is pei theyre very bullish big new mall opening in center city, philadelphia throughout the questions were how many scores are closing . The big achilles heel is brick and mortar retail. Thats doing quite badly if you look at the reits catering to brick and mortar, those are bad. Is it jcpenney, is it lowes saying theyre going to lay off a lot of people. I dont want to be cavalier, but those people have jobs now jcpenney all at once, no that would be terrible. There has been work done on containers, riding the rails now, people arguing that retailers are happy to let inventory levels come down, theyre not counting on a strong consumer to get us through back to school or through the holidays. Thats what pvh has been saying, the most accurate indicator, thats managed rico but then i say, listen, theyre levered to macys what is macys doing at 7. 7 yield. Isnt that a sign of something i was seeing jeff gannett, he thinks business is good and he paid down a lot of debt. So then someone would say to me, go back and forth in your head, dont you realize macys is doing badly. I say, yeah, but it is doing well but dont you realize it is terrible i say, it is not terrible. There is no winning in this. People keep saying, wait until walmart rolls over wait until target rolls over walmart is accelerating. Target is having a great quarter. I want to it is lets i debated this this morning. I debated coming on the show and saying, you know what, carl, everything i think is good is really bad thats like 1984, war is peace and peace is war right that would be glib we dont want to be glib here. We want to be were stuck with it is empirical things arent as bad as the bonds are indicated empiric empirical. We have news in the media space, cbs and viacom in the final stages of negotiating this deal that would reunite sumner red stones media empire kc viacom at nearly 12 billion with an enterprise value of more than 20 billion cbs would Exchange Shares for each viacom class b. Would be nice to have this settled. My trust owns viacom. We have been might haffed, all stock has done is go down a couple of points it has been intertwined on this merger we dont have the old cheerleader at the helm of cbs need i say more . Thats true viacom buyback doing a great job. Obscured by this it is incredible how good his over the top is doing, they have the first advertising bump in a long time. This is a space that is just i wonder, broadly, what the environment is doing, you think, to sentiment on m a, International Getting regulatory approval, uncertainty over pricing, right it is bad i pick up the New York Times, they have a lead story, the business section, basically says that everybody in the valley is i read that, like, holy cow this is the New York Times but one thing is clear, if i were one of those companies, i would be afraid to buy somebody. If i was a faang company, i would be afraid because of concentration. Those are natural buyers, great Balance Sheets alphabet, they would be a natural buyer. I think theyre feeling i better not buy it. It is time to make it so that were not on the radar screen. So theyre the ones that i think are most vulnerable to not being able to take advantage. Thats called being defensive. Well talk later this morning about verizon finally selling tumbler. I have an oath, a tshirt, and a bunch of oath stuff on my kitchen table. I never took it away from you have Little Things that charge your batteries that i got from a previous ceo of oath i think they got rid of oath tumbler. Wow. We dont talk about that that was one of the worst buys ever after acquiring it as part of its purchase of yahoo two years ago, the buyers acquired automatic, word press. Com, reports verizon is selling it for a nominal amount the sum has not been disclosed tumbler once fetched a price of more than a billion dollars from yahoo in 2013 when we spoke to yahoo s chief of the time, marissa mayer, who defended that price tag, the day the deal was announced a lot of different analyses, looking at things like dcf, discount ebitda, other transacts and a lot of different methodolometho methodologies and all supported this valuation. That was the key line in that interview we did with her, comparing it to other recent purchases and arguing it was in li line. It was ill advised. Tim armstrong put them all together i remember a great meeting i had with tim, he was talking about the tumbler and yahoo and nothing. He didnt even last a few days the new ceo was named at verizon the day i saw tim and he didnt want this. So hes gone spent a lot of money on this. Yes, they people arguing ma the most misguided purchases for the price. A lot of hope that verizon would challenge facebook, would challenge google, they challenge anybody. The new ceo just didnt care for it and tumblr was bought by the guys from word press theyre smart guys im surprised that verizon didnt say, look, well pay you this to take tumblr, but faang and anything that touches online now you got other old line telecom trying to compete with netflix, which just got its third point investor stake boosted by 25 got to give loeb kudos for campbells, campbells was good. Campbells is starting to get more relevant. And so that was good i dont think hes going to pressure reed. Reed is doing a good job just that they spent an awful lot of money on content. Wow. This is a weird moment i just i want to hate the market i got to find stocks within that i hate other than 3m arent you are you finding it harder to find stories you love no. Not as they come down. Not as they come down. I think there is a lot of companies in the drug sector that that i want to come down more ive been looking for novartis to come down in the food sector, kraft heinz, i come back to this here maybe it is top of mind, keurig dr. Pepper when a great story they are. Theyre value names, defensive names. Yes defensive names. For were not an industrial power. We dont really have im not waiting for the industrials to come down. Honeywell is doing well. United technology is doing okay. If boeing could make boeing is a weak link in the system it is not like china if china plays with boeing, it would be, like, wow, we love these guys thats why the max is important here the max is so important to gdp. Came around at the wrong time. Yes that was thats the achilles heel of the u. S. Economy now. Certainly affecting gdp were going to get cramers mad dash and count down to the opening bell, another important session today. The shakeup at yum and u. P. S. , high profile executive shuffling over there take another look at the premarket as well keep our eye on the tenyear, the 30year, the spreads, moresquawk on th street from post nine in a minute here i go again on my own goin down the only road ive ever known like a drifter i was born to walk alone . Barb you left me hangin on the high harmony there. If you ride, you get it. Geico motorcycle. 15 minutes could save you 15 or more. 12 minutes to the opening bell cramers mad dash, watching apple today. Great piece out of web bush, talking about how apple is probably going to absorb this next round, the 10 . It is going to cost 50 to 55 cents. Thats not a minor amount. Thats a big amount. But they say theyre moving production, going to try to move to india, vietnam, and going to solve the problem. This is a flashpoint for Peter Navarro. Peter navarro, my contend, the most powerful person in the white house when it comes to trade, why dont these guys make everything here . Logistically thats very hard. I defend tim cook for what hes trying to do which is do both make a lot of stuff here, make a lot of stuff there but this piece just says, listen, cook is listening to president. And i wish the president s people would read this piece i think they would say, cook is not a bad actor. Hes doing what is necessary in order to mitigate too much exposure to china. At the same time, a very powerful piece from Credit Suisse saying china iphone shipments bounced back in july this is the existential crisis i have arent they supposed to be plummeting isnt this supposed to be the patriotic phone that is winning out . Huawei, no i think anyone who is trying to say that am should be going down should read this piece too. Yeah. Nikkeis had a piece out this morning, 33 Chinese Companies have told exchanges were going to start moving production out of the country 70 shoes, vietnam they dont have the correct infrastructure theyre resourceful people they had tremendous tensions with china they did have a war with china after we left vietnam. But i do also say that theyre just not ready and nobody is trying to help them they have to be ingenious themselves there is a rush to vietnam that is incredible going on, which, again, is why i thought it was interesting, india, india. China, how much has cook wanted to crack india we all want to crack india. Tough market in different ways. Only way to crack it is yum well talk about yum. Well talk about yum in a minute Apple Holding 200 here the opening bell, one more look at futures on this tuesday dont go away. Your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. Futures coming off the lows of the session here. Bunch of movers ahead to get to before the opening bell, including yum and u. P. S. Watching hong kong, of course. The pboc and yuan fix this morning. Got you covered. Dont go anywhere. Youre watching this squawk on the street. Opening bell in four minutes we havent really sort of recapped what happened in argentina yesterday. But the second worst klideclineo any stock market. There are a lot of companies that have been excusing argentina, they have been south america, x, argentina, south america, x, venezuela. At some point south america, lets call it uruguay. There are really some cavalier companies who dont realize how terrible that continent is and, by the way, brazil is probably the best once really, people are envious of argentinas economy. They have more Natural Resources than almost any country in the world. Their government has completely failed their people. In a different way from venezuela. A failed it is it is probably the failed richest city on earth i think Morgan Stanley today says the peso could fall another 20 . I think thats true it reminds me of the turkish meltdown in the 90s, where i was looking at turkish stocks. I said, boy, these things never go down. They were like a ten for one reverse. The turkish lira plummeted so much people have to be careful, stay away from the markets. We have people come on the air and say, you know what, emerging markets are great. I think you should take a look, you like the emerging markets, you should buy msc, the old Morgan Stanley index henry fernandezs company, the company that keeps the indices, that msci is the way to play if you want if you really want to be in an emerging markets, why not be in a company that is a the picks and shovels and that is msci, it is an 18 billion company, i think it is worth for mfar more record highs every day. You look at s p 500 from 2000 to 3,000. Henry fernandez, so understanding, he rang the bell, like, well, who is that guy . Who is that guy . That guy is one of the smartest people ive ever met by the way, one of the most charitable. It is difficult to play individual countries singapore, for example, cut their outlook to flat to one for the year. We were looking for much more there is an example of what i say, wow, i thought they were doing well and theyre doing badly. I keep waiting for that to happen here. Everybody says it is going to happen it has not happened yet. More trade reliant than the u. S. Economy our economy one of the things that look i thought the president was going to slap tariffs on germany, they wont take our cars. Without a high tariff. We always have been pathetic as an exporter. Our currency is so strong. Yeah. A big head wind to fight you mentioned gold, jim. Six year high, 1529. Buy barrack just buy them. Theyre inexpensive. Niko eagle is doing well that symbol, dont think aem, theyre not done going higher. They get good companies. A lot of chart work being done on gold and silver too. Opening bell here in the s p 500, cnbc real time exchange, at the big board, as jim said, it is keurig, dr. Pepper celebra celebrating the first Year Anniversary at the nasdaq. I think that keurig dr. Pepper is very inexpensive thats bob gan bob was the manager at pinnacle foods. Has done a remarkable job. One in every five houses, now they have this duo on sale today for amazon, it is the first coffee pot keurig. For those of us who miss the coffee pot, he has answered you. Hes revitalized a lot of old brands including some of the theyre doing well, carbonated soda they do have people forget, canada dry is doing canada dry, i thought great white north, canada dry, what a job that this man has done a lot of people felt there was no more upside to keurig one in every five homes. Thats a lot and i dont want to put words in his mouth, but one in every four. You talked to him last night on mad. We have sound cued up from jims conversation last night. Take a listen. I thought we did and we dont. Are they doing, though, a case volume growth or pricing growth as well as coke and pepsi . Yes i think theyre doing better in so