Look into the future. Today kicks off with a focus on investing. Our guest today is Hedge Fund Legend leon cooperman and gabelli and rick rieder. Were excited to bring you this conversation all here at 8 00 eastern time and later this week, president ial candidate jeb bush and bill ackman but first lets get you up to speed on todays headlines. So that was the 20 year i thought it was 20 years since we had all been here at the same time. Three months. No, three months. Summer is up. Beginning of game day. Its a feel good song. We are united. We have not seen each other for weeks. Lets get caught up this morning. U. S. He equity futures. Here it s. Well show you whats going on. We are rallying this morning. Dow looks like it would open up much higher. S p 500 looking higher as well. Another volatile trading session but by the end of it things were looking up there as well. Chinese stocks rallying into the close. The top economic planner approved Railway Projects worth nearly 11 billion. Chinas latest trade data showed drops in imports and exports last month and in japan stocks drop with the nikkei losing its year to date gains but then in early trading so far in europe this morning stocks are higher looking off of that as well and youre looking at the dax and just about everything at close to 2 . There are 1. 4 Million People and theres a lot of cities with over a Million People and maybe its a good idea but the chinese have been building a lot of stuff just to build it. I dont know. Are they planning more stuff to dig holes and fill them back up again. That means theyre more panicked. Supposedly the factories are churning out everybody stays employed but they are turning out cement and concrete. Theyre not even using it. I dont know, maybe they can use it we almost built a lot of these things for awhile, right . One in florida . One in california made sense, didnt it . You dont think they have shovel ready stuff. It pam very appropriate for that package. In way in Corporate News antitrust regulators, are expected to give the green light, yes, yes, we should have a drum roll to the General Electric alstom deal. Made a lot of sense when oil was 100. I dont know. Was that two years ago at this point . Wasnt it . Ge made a 15. 9 billion bid for alstoms power business and the clearance is seen coming as we talked about all along, a lot of conditio conditions. U. S. Authorities are expected to give their go ahead to that deal today. And lufthansa cancelling its long haul flights today. Their pilot union went on strike. They missed a couple of months striking at germanys largest airline. I heard someone calling it uber the other day. Where . Is that somebody who is so cool or someone that just doesnt know. Someone that was not a millennial. Maybe it was me. Uber plans to enter 100 more chinese cities over the next year and that doubles the previous goal set three months ago. The ceo says his company its colonic. Becky should have a middle name that should be full. His china unit raised 1. 2 billion during on going fundraising and hes a tough guy too, right . He can be a tough guy. Feel like he had a colonic after dealing with him. Some people have said that. I have had better experiences than that. He shouldnt have a problem with you. He needs to be nice to you. You got to right your thing about him. Im a heavy user. Im a kline. Uber user. Lets tell people about the Media Technologies going on this morning. Disney is expanding its cloud based Movies Anywhere service adding more partners including amazon and microsoft and consumers will be able to buy a digital title once and access it on a device. Free disney any where apps will launch in about a week. They sell them and they can and people are willing to pay because theyre going to watch it over and over and over. You cant get all the films all the time. Right. They go back in the vault. Yes, its a very brilliant strategy. Also verizon launching a free ad support mobile streaming service this week called go 90. It refers to people flipping phones 90 degrees to watch video in landscape mode. It will be available to all users even if they arent verizon users. It will include live events, primetime tv and original web series. It was like blah blah. Makes no sense to me. I dont know if this is a Tim Armstrong kind of deal now that aol is part of that and this is an advertisement play. Thats what im assuming. And amazon reporting planning to sell a 50 tablet. That device will be ready for the Holiday Season just in time to compete with apple. And other tv, a big ipad pro. And then the new phone. New phone. With an s. Like a 9 operating system. Os 9 is already out. Ipads are getting smaller and smaller. Theres speculation by the way also not only that there will be a new mini but that they got rid of the mini. Because the phone keeps getting bigger. Your newspaper had a lot on it yet. I know you probably saw that. I did. Its whether they can really do the gaming as well as the experts with the graphics and everything. Like the Sony Playstation on the xbox. Theyre going to try to do it without games that might be fun to play that you dont need to be an expert in. Gamer. But i dont know, its tough to break in. Its going to be 150. A lot more than the old apple tv. Last time was 99. Smart tvs already have that dont they . Yeah but well see. If youre buying the disney movies on itunes and you want to watch them on your tv. This piece yesterday didnt assume that apple is going to take your living room by storm. Its tough. It is and its questionable. Were going to watch i dont know about the watch. Theyre going to bring a new one out with a gold case thats not as expensive. Thats stuff is not the exciting. Its the phone. You have to believe in the phone or not. But for everybody that doubts it, i was in an apple store last week trying to get my laptop replaced. It was an hour and 45 minute wait for them to say the screen is cracked. Thats not a good thing. It shows theres a lot of people. Its the only store that has something i would agree to wait that long for. And banana republic. No, no. You have to wait five days. No, they got it back in two but they wanted me to wait 3 to 5. I break screens all the time. You do . I got a cover. Anyway, a sharply higher open today. The dow would open up 328 points. Theyre going to be looking at this and scratching their heads. S p futures up about 40 points. Nasdaq is up about 87 points. Its all coming as we look at the strength in europe. We looked at that board earlier today too. A lot of volatility in the markets and this is roaring back after the lows you saw last week where the averages were down by as much as 3 . Check out whats happening in oil prices this morning. Right now wti is down by 2 . 4522. If you take a look at the bond market, the ten year note right now looks to be yielding 2. 167 . Right now most people asked on this, most analysts that have been issuing guesses on what the fed will do, only about a third of them think theyll raise rates next week when they meet. More than likely people at this point say that will happen in either october or december. Check out the dollar this morning, its up against both the euro and the dollar. Euro at 11157 and finally gold prices if you take a look at that this morning barely budged 1,119. 80. Was that the future indication . What was that . It was page a2 in the wall street journal today. About 33 of analysts. Analysts . I heard analysts on the radio. Im assuming its economists. Theyll still do it. Maybe, maybe but i think numbers like this this morning with the futures up 300 points may give them a little bit of pause. It has to stay above 1900. And were well above we go up 38 or 40 today well be up at like 1950 almost. Oil did it go to a different month . Markets in the u. S. Back open for business. Futures are surging. China didnt trade on friday and we didnt get a chance to see what was happening. The shanghai composite. It finally did open up about 90 points. Which on a 3,000 index is like 3 so big move there and were surging over 300. Lets get a check on the week ahead with the chief u. S. Equity strategist at Deutsche Bank and bill george is still with us. Its like we havent even introduced you yet but someone is tired of you. They say still with us. This is the first time we said something. I think so. You have a book named after kanyes kid. What is their kid . Is it northwest. Northwest. True north. Oh this is true north. It has nothing to do with kimye . Not that i know of. I would go with it because people said when kanye moves into the white house in 2020 theyve already got a wing named after northwest. Right. Anyway, 50 basis points in september. Everybody is offering their advice to the fed as to what to do. Not that they will. Thats your advice. Theyre not going to do that. What we would like to see them do is get this done and behind. Its appropriate to get a hike done but we dont want to have to see a hike coming every time they have a meeting over the next six months. Were you more bearish than you are now earlier this year . Yes from late last year we were cautious on the market. Describing the market as likely to have a 5 to 10 decline rather than advance but were taking a much more tactically bullish stance and it works its way 5 to 10 higher. That gets us back to where we were. Thats exactly right. This market is being rightly pushed down because investors are not concerned about gdp. The concern is profits. This sabt china. Not so much chinas economy. This is about countries and companies that sell to china. Thats where the profit pressure is. What about the profit pressure that comes from what we read about every day and thats stagnant wages although theres some hope that maybe youre starting to see 5. 1 . Thats lower than it was in any part of the last couple of administrations. So it should be at a point where you should start to see that. That doesnt necessarily help margins. It doesnt help margins however i think the bigger issues that you do see this disconnect between the economies profit drivers, investment spending, export activity, manufacturing activity. Thats where the connections are to the Global Economy. Thats where the additional pressures come from the stronger dollar. Thats all very weak. Thats why profits are weak. Not so much because wages are going up but the labor market is tightening. Unemployment rate keeps falling. Partly good job creation. Still record low participation rate. Thats something causing us to think the fed should hike. Do you think the markets are too sensitive or the fed is too sensitive to what markets doing rather than making their call and moving out . Theyre seeing how the markets are going to respond. We like to think that the fed is bigger than market tantrums however if the market throws a massive tantrum and goes into nasty correction im sure the fed will put their plans on pause but a mere dip of 5 to 9 , we saw more than 9 decline. The fed should stick with their plan. We think they should get the first hike done. Do you feel in your view youre retired now sort of. Not retired but do you get the feeling that Profit Margins are peaking or have solid. Theres been huge expansion. Can can they go higher . Selective cases yes theyll go higher. But theres a major wall street firm that made a negative call on the averages overall. They have been very bullish, by the way. And part of that is because margins are peaking or have peaked. Costs are in line. Companies adapted the global market. Theyre very solid. A quarter of a point we need to bite the pull let and get on them. I agree with that. Id like them to do 50 basis points. You saw in the interview that he did two weeks ago and he talks about volatility as something that they do consider but then the question is does it become a selffulfilling prophesy, has that conversation and all of a sudden september back on the move. They want to see what the fed does and they want to see how they are. Its the rate plateaus at a very low level. We need to see how the bond market reacts. And longterm yields barely go up. We need to see how the currency market reacts. We need to see how the dollar reacts and how the equity market reacts as well. Do you think the equity market is because of the fed. Ground zero is on Interest Rates. You see that in currency markets and its the commodity uncertainty. China is the halarger issue. It actually takes some of the uncertainty out of the picture you think . Its a step along the bullish path. As long as the dollar depreciates a little bit and not a lot i think well do well. As a board member of goldman and exxon youre watching Energy Prices which is another piece of this puzzle in a big way, what do you want to happen . On behalf of those andrew, im going to say lets get it back up and get on with it and start focussing on the real economy. What does it do to those two businesses in the shortterm and then 12 months out. I think for goldman, these are all tuns, the way they look at it. They present opportunities. As far as exxon goes youll have low oil prices for awhile. It will come out but it will be awhile. So we just kind of the great squawk on the street. Squawk alley. Underwait equities. Too late to see update on the profit markets and the m a. What do you say . Lots of mergers still going on. Topping or no . I think theres more opportunity for expansion. Im not Goldman Sachs. I believe theres more opportunity for expansion. Its going to be selective. The energy and probably increasingly at industrials thats where the distress is. Thats where all the markets hit because of the slow down in emerging economies but health care, technology, parts of consumer and even parts of financials the Earnings Growth is okay. Youll be surprised how low they stay. Pe multiples take the market higher at those select sectors but we do see earnings risk because of the dollar but this is shaving off of earnings. If theres any distress out there it stays contained to energy. But those industries you favor arent really influenced by quarter or half point. Thats why we like them. There is exposure to foreign currency earnings of technology and some Health Care Companies but i think we have a little bit more dollar appreciation ahead and thats it. Great. I think andrew loves books. Loves books. He writes them. Great author. Loves them and helps people sell books. Its a good book. Worth selling. When we come back well try to sell his book plus where mastercard wants you to start taking selfies after clicking buy. We have that story next but first as we head to a break. Heres a look back at this date in history. I was going to the library to do my homework. It was a little bit of a walk to get to the bus stop. I had to wait in line to use the computer. Took a lot of juggling to keep it all together. Whats possible when you have highSpeed Internet at home . The Library Never closes. It makes it so much better to do homework when youre at home. Internet essentials from comcast. Helping to bridge the digital divide. Mastercard is testing a new program today that lets you verify Online Purchases with the selfie. This isnt your average selfie though. The user first needs to blink and the app converts the face into an algorithm before sending it to mastercard for identification. Theyre also trying out fingerprint and Voice Recognition methods for verification as well. Our guest host is bill george and he is the author of a new book that has nothing to do with kanye west. Its called discover your true north. He takes a look at what he considers great leaders of the decade. So whats the Common Thread among these leaders . Thats the question this morning. Authenticity. Todays leaders changed dramatically. It used to be about charisma and style. Now its about real people. Admit their mistakes. Theyre transparent and open. They have much more of a global mind set. But why is that different than the charismatic leader of the past . They were top down, aloof, very differ. Todays leaders are very enga d engaged. Theyre willing to be vulnerable. Theyre willing to be real. Let me ask you about a question of this generation of management. More diverse. People want different types of people around them. They have a more diverse board in terms of race, gender and those things. When you go back and you look at apple and that company and its success, at least early on, theres no diversity around them. They didnt spend any time thinking about those issues. Steve jobs thought of product, product, product. Was that the wrong way to approach the world. Certainly today. Theyre a lot more diverse today. They have to be. All of those companies have to. Do they have to for the business or do they have to for the sort of Political Correctness of the moment. I hate political correctionness. They have to have a diverse set of Life Experiences sitting around the table. If youre selling consumers and you have a bunch of guys picking out dresses for women get over it. If youre at a global business, and you have no one around the table thats ever lived outside of the United States youre going to make bad decisions look at the last two big appointmen appointments. You have both more Diverse People coming up to the top. I think its good. You want a diverse set of Life Experiences around to make inputs to your decision making. Do you think thats happening easier . Just naturally. Its not as natural as it should be. Id like to see a lot more and i think the barriers are coming down and the millennials. They celebrate diversity. They dont care. Theyre having a dramatic impact. They will not work in a Bureaucratic Company. You cant run a Bureaucratic Company and be successful. Whats an example of an old company that used to do that and stumbled as a result. A company that used to be run that way. An organization that would not survive in this time . Well i think a lot of companies have made dramatic changes. Certainly the retailers have like home depot and target has gotten much more diverse in its