good morning welcome to "squawk alley." the big news of the morning, gary cohn's departure from the white house. we trimmed early losses as investors appear to be focusing on other things as well. digesting how the president's moves are effecting the markets. kayla joins us with more >> good morning to you national economic council is the driving force behind most financial policy the markets have been watching why this cohn news is big. cohn has been the public face of the nec, but it is comprised by a dozen high level officials, filling vacancies at the fed, writing infrastructure plan passed around capitol hill, coordinating the u.s. positions at summits and trade where the nec was

crucial crunching data it was the most well stocked unit within the white house with veritable policy with each different vertical they were fully filled out in the first month of the administration, cohn acted quickly to resufficienthuffle i recent turnover. when rumors of his resignation were rampant after charlottesville but ahead of tax reform, they raised serious concerns that staff would follow him out the door promotions i mentioned one white house official says, lower the risk of exodus now but the new leader that trump picks could change that. if trade hawk peter navarro gets the job, virtually everyone on the national economic council staff would resign the nec director doesn't require

senate confirmation, could be replaced quickly if the president's decision and white house vetting takes place expeditiously. we'll see where the president stands on this issue which happens he has been mulling for some time, came to a head in the last couple of weeks carl >> thank you for that. the focus for investors. kayla tausch >> i would say if he was to leave, it would be terrible because, it would be terrible in two dimensions it would undermine future progress of economic reforms and so on, and it would also represent a challenge in putting together an administration >> joining us to discuss this morning obama's economic advisory council chair, jason furman, chief economist in bush

administration, doug holt. doug, you had an interesting tweet this morning basically saying put down the matches and dynamite when it was secretary ross saying he didn't want the world to blow up. >> i'm confused by the words he uses and actions they're taking. i was in the bush white house when we imposed steel tariffs, they were rolled back by wto, harmed more people in steel using industry than helped, in the end they were all cost, no benefit. this is repeating history. it does invite a larger escalation in trade retaliation, maybe a trade war. if you don't want to blow things up, put down the matches, don't have the dynamite. they should simply stand down. >> in light of the fact you have been through this before in the early 2000s, an ee chon miconomn

we could lose jobs does that number sound right >> sounds like the right ballpark there are studies of the 2001, 2002 episode, they come about to that magnitude you know, european union has been clear, they picked some high profile exports from the u.s. into europe, high value ones, they want to make sure there's a response that the u.s. feels. that's bad news from the point of view of economic growth and employment >> jason, boil it down for us. what does the cohn exit really mean, how much of how the markets need to react depends on who ends up replacing him. but just the cohn part for now, that's the part we know. what is missing perhaps in the white house economic team with cohn out that needs to be replaced >> you had a great description of the nec at the top of your show i worked at the national economic council for six years

in the clinton administration and in the obama administration. i think it plays a vital role in coordinating economic policy across the white house in this white house, coordination seems an awful lot more difficult and in any white house at the end of the day the person that makes the decision is not the president's economic adviser, it is the president and what happened on steel wasn't that navarro beat cohn or ross beat this person, it is that president trump for decades believed in protectionism, has believed that international economic relationships are zero sum, and wants the united states to prosper at the expense of other countries when in fact the policy would do the exact opposite, it would hurt the united states while potentially hurting other countries as well. >> jason, are we seeing this white house experience brain drain right now?

>> certainly looks that way to me you know, they haven't called me up to ask me if i was interested in serving as nec director >> are you sitting by the phone, jason? >> i'm sitting there, waiting by the phone, just dying to go back i think you would have a hard time i spent a lot of time working in the white house, but it was a real pleasure. i loved the people i worked with, i loved the president i worked with. i think we had a great process i didn't always get my way on issues either. but this white house seems less pleasant >> doug, i know they say personnel is policy, but the idea that the white house is somehow unable to retain or attract a plus talent, compared to the prospect of antagonize allies, rest -- retribution on trade -- >> i want to mention the issue

of coordination and process. if you look back to the bush episode, he imposed steel tariffs over the objections of his economic team, no question about that, but no one quit. one of the reasons was there was a view there was a fair process. all viewpoints were allowed to weigh in the president gets to decide what's striking about this, the feeling that the process wasn't that, and that lack of a good process led to cohn being dissatisfied and leading, that means a premium should be placed on someone willing to run a fair process in choosing a successor. >> jason, comes down to the president and what the president decides to do. gary cohn or not, president trump will do what he wants. almost doesn't matter who replaces cohn. >> i think it matters a bit. i would rather see a good, strong person there, someone with sound views that could coordinate, but yeah i think in any white house it doesn't matter a massive amount

because the president makes the decision in this white house it may matter even less because it is the president who makes decisions impulsively. he pulled ut out of the transatlantic partnership which was a great deal he restricted immigration which is just about the worst thing you can do for economic growth, and then this. there's a consistent pattern of hurting economic growth in the name of nationalism and it has gone back to his first week in office. >> stocks would not ratify that notion, jason. at least what stocks have done since withdrawal of tpp. >> u.s. stock market has gone up less than global stock market has. we have seen a global rebound. not saying any of this will destroy the economy and cut our growth rate in half and plunge us into a recession, but pulling out of tpp, restricting

immigration, the steel tariffs, all of those are negative. we lucked out with a strong global economy to help pull the u.s. forward that's the irony in this part of why we are doing so well is that japan is doing well, europe is doing well, china is doing well, the global economy is on positive sum and we should have invested in its success >> doug, what's the read through on future policies when you talk about things like infrastructure and some of the other big deals that this administration would like to get done >> i think they would require an enormous amount of concentrated effort to get something like the infrastructure plan moving in advance of mid term elections. i don't think that's likely. the biggest thing they can do is consolidate the gains. had enormous policy gains in deregulation, in tax reform. they're seeing the front edge of better economic performance. they should consolidate gains.

the concern about steel tariffs is not impact of the tariffs themselves, it is larger implications for global trade that could hurt that growth trajectory don't make that mistake. consolidate gains, pick up after the election and improve the outlook for the american people. >> as we said earlier with our cash in guys, although this was announced as a plan, we have not seen the imposition of tariffs yet. we'll see if we get them by end of the week. we expected them thursday. if they're so surgical, as secretary ross suggested this morning on our air, jason, and they help move the conversation with nafta, could we be here in a few weeks arguing it was worth it >> i think doug was exactly right, that the problem is that the tariffs are stupid economic policy they would hurt our economy. but not by a massive amount. what would be a massive amount is if they led to withdrawal of nafta, led to broader trade war,

they i mperilled confidence on the economy. if none of those happen and they were surgical, it would be a minor passing stupidity. but you look at president trump's tweets and $800 billion trade deficit, says it over and over again, the number isn't even right he seems very focused on this, very focused on reciprocal tariffs and other ideas that would take this up a level, not calm it down and reduce it a level. but we'll see. we're talking about is this somewhat bad or very bad doesn't seem like a great conversation to be having. >> jason, doug, good to see you together again appreciate you helping us kickoff the hour a nor'easter is expected to slam the east coast, second major winter storm in less than a week doesn't look bad outside yet contessa brewer has the latest what's going to happen here?

>> reporter: says the guy who is safe and warm inside the studio. let me tell you what, the wind has picked up. do you know who is great with today? guys selling umbrellas before you get where you're going, you need a new one. national weather service -- what did i tell you the national weather service has upped its snowfall expectations for new york city because they say the storm has shifted south and east, they're now saying it could be 12 inches of snow this afternoon for new york city. we've seen 2500 flight cancellations. you got that all right. we've seen 2500 flight cancellations, mostly hitting new york city airports at this point. train cancellations, air traffic having a problem ahead of the storm as well as commuter rail we also know that at this point there are problems, especially for roadways some 18 inches to 20 inches of

snow predicted for areas north and west of new york city. so new york state through way has told motorists to stay off the road here in the financial district of lower manhattan, a lot of local retailers, small independent shops and restaurants depend on wall street folks to come in for their business what we know now is that with the weather, a lot of people stayed to work from home talked to a local restauranteur, said his business is a 30% hit off what are lows in january and february because it has been a brutal winter. it has been $2 billion hit to the consumer sector in the last two nor'easters. it is windy. back you to in the studio. >> we talked about tariffs that umbrella is the gift of the day, no doubt. >> yeah. >> contessa brewer watching the nor'easter

we'll see what snow develops this afternoon. when we come back, lousy approach to fair trade, what ceo of siemens thinks. he joins us next and top on netflix, worth more than mcdonald's, ge more "squawk alley" in a moment. ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow.

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welcome back to "squawk alley. calling on president trump to halt plans on steel and aluminum tariffs, saying it adds more from exports of motorcycles to steel bars joining us from houston, siemens global ceo joe kaeser. joe, thank you for joining us today. >> hi, morgan. >> so potential steel and aluminum tariffs i know you tweeted about this recently saying that after great tax reform aiming at creating jobs allows approach on fair trade, not good for customers, not good for jobs, not good for a free world how much would this hurt your

business >> actually about our business, we are localized, more than 50,000 people. net exporter from the united states to other places how do we deal in a global world. how do we deal with the fact that the united states has been the inventor of global trade and globalization. that's what concerns me most i have been congratulating about tax reform which could add a lot of jobs by companies investing in the country, but i believe in terms of the approach on how global trade functions and the approach on how it should be figured out, whether it is fair or free trade or unfair trade, that approach could have been much better. and typical promoter, there's a conflict or issue we talk to each other and not so much about

each other i would have loved to understand what is it, you know, that makes customers in the united states buy from other countries is it because they're more competitive? what is the root cause for that. with that approach, we could have done better to get to the root cause >> in terms of the root cause of the issue, do you think targeted tariffs on china and what's considered the worst players in terms of aluminum and steel, do you think targeted tariffs would make sense >> i think as i say we need to look at the root cause, if it is unfair trade because companies or countries are dumping, someone needs to do something about it it is typically the government i sign up for that one but you know, customers typically do not -- are not forced to buy something, they buy something because they get a better product, they get better innovation, more competitive

part which makes their business actually be more robust, more stable, more successful. i think that needs to be taken into consideration when tariffs are imposed. the company has to make plans. the company has a lot of employees and a lot of commitments to customers which i believe are important to weigh in so there are no surprises for the end customer, not make the end customer at the end pay the bill for something that the root cause is somewhere else. >> joe, your industrial rival general electric came out with a statement a little while ago this was in response to an analyst report from deutsche bank reports on impact of potential steel and aluminum tariffs on ge's costs are completely ungrounded we are monitoring the situation as it develops we're seeing some of this,

hearing some of this, that the input cost state side won't necessarily be that big. that's one of the arguments the commerce secretary wilbur ross made on the show in recent days. how much would this effect input costs at siemens >> first of all, if it hasn't impact companies that much, why do it in the first place, if it doesn't matter, if the impact is little, why do it in the first place and stir up the whole world about protectionism and nationalism and debate of free trade when we have so much to deal with in other issues. as far as siemens, we have brought in 40 manufacturing sites and present in all 50 states, so we do not see big impact on our business as far as our customers here in the united

states of concerned. we're net exporter from the united states into the world, it is not so much about impact and how many millions it is, it is more what message do we give to the free world about who is leading this world in my view, the united states has always been the inventor of free trade, of globalization, and may the best team win. that's more disturbing message to the image rather than how many millions or some customers need to pay in the end >> would this effect any of the u.s. jobs, any of the u.s. workers, 65,000 workers that you employ if we see tariffs and trade retaliation take place >> no, absolutely not. i think first of all, as i said, the impact is very little. secondly, we will talk to customers and discuss the situation on how we can help

them overcome the challenges if they have any. so i believe as far as siemens in the u.s. is concerned, we're not that massively impacted and i do not believe our customers or employees will suffer from any of those topics. it is more about the confidence customers have in investing into new sites, into new businesses other than that, as far as siemens is concerned here in the u.s., we have great customers. our customers among the best companies in the world we keep focus helping them to do business and be great at what they do. >> so much more i would love to speak with you about, the power business, trade is certainly the news of the day. would love to have you back to discuss these other topics at siemens. joe kaeser, thank you for joining us today joe kaeser, ceo of siemens >> thank you when we come back, peanut

butter now a pawn in a looming trade war. we'll find out why and look at stocks at this hour the dow down 182 points. s & p a half percent%. "squawk alley" will be back.

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this is not the first time we had trade sthose skirmishes. >> markets move. you hear headlines on tariff issues one way or another. welcome back morgan stanley women's conference is under way in new york wilfred frost had a chance to sit down exclusively with head of mergers and acquisitions in the americas we'll send it to you, wilfred. >> that's right, morgan. sat down with susie fond who was relatively content haven't been a huge number of deals, high profile ones i asked whether the market volatility was something holding back m and a >> that's one of the big questions obviously, and it has been a little more volatile

recently what drives confidence in the m and a market is confidence of your own business. i know how my business will go to buy something and incorporate it >> i asked whether gary cohn's departure from white house and recently announced steel and aluminum tariffs were a concern. >> we don't know exactly what it is going to look like yet, that's part of the issue i imagine people will try to think about it at some point i think it will be specific industries, i'm not sure we've seen enough yet to know how it will effect things >> now, this is the tenth morgan stanley executive women's conference spread over 15 years. i asked whether she was content with the level of executives, female executives that morgan

stanley has and progress they've made over the 15 years >> when you look over a much longer period, i think we've come a long way. the numbers that we focus on, i mean, everybody wants to make change, but certainly morgan stanley has a lot of policies in place designed to give women opportunity and to make sure that we are incorporating a diverse work force, but it takes time to get people to a senior level. we're very invested in it. we spend time, we're thoughtful about it we need to give it time for people to get to that level. >> more to come at closing bell when i sit down with the chairman and ceo, james gorman back to you. >> look forward to that. wilfred frost covering the banks. stocks are closing in europe in a few seconds mixed session. the big story is the eu, threatening to tax imports of

household items in response to planned tariffs. >> reporter: a three prong approach, essentially the first step trying to take their case to world trade organization. more than a dozen raising concerns about the moves could take time. sooner than that, hope to raise their own economic safeguards to stop steel that would have been going to the u.s. ending up in europe and damaging the potential for european steel producers who have had a tough time already third issue, close to your heart with the peanut butter, specific u.s. products could be targeted by the european union if these measures are taken forward by the trump administration those include things like peanut butter, orange juice, cranberry juice, motor bikes, pleasure boats, shirts, jeans, all sorts

of products. to the value of 3.5 billion u.s. dollars. they say european commission the damage they'll feel from steel and aluminum tariffs i had a chance to ask earlier today about the idea that the u.s. pretext for tariffs, national security, is not realistic. hears h here is how she responded. >> when we can see that this is section 232, referring to national security, in the case of europe and some other allies, but they have to talk for themselves, it would be relevant how can possibly such a small import of european steel, specialized high quality the american industry needs, how can that be national security. politically, it is hard to understand but i think also legally it will be very hard for the americans to make that case. >> reporter: so a lot of things depending on what the trump administration decides to do european commission saying they

want to take firm, appropriate action, rather de-escalate rather than retaliate. they would take action if merited. we'll wait and see in brussels >> thank you willem marx. shares of netflix are slipping on downgrade, citing valuation. take a look at stocks, near 70% run. down today about 1.5%. we discuss those concerns in a bit. and taking a look at the dow, down about 153 points stay with us

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good morning, everyone i am sue herrera here's your cnbc news update attorney for stormy daniels who claims she had sex with donald trump says she's suing to invalidate a nondisclosure agreement to, quote, set the record straight, end quote on the "today" show, savannah guthrie asked the attorney if the president knew about that agreement. >> there's no question the president knew about it at the time the idea that an attorney would go off on his own without his client's knowledge and engage in this type of negotiation and enter into this type of agreement quite honestly i think is ludicrous one police officer dead, two

others injured in a shooting in clinton, missouri. happened as they responded to a 911 call for domestic dispute. a male shot at police from inside the home. the suspect was later found dead in the home by a s.w.a.t. team. for those americans that receive medicare benefits, new cards are coming your way soon it is to protect their identity. social security numbers will no longer be on the front of the cards, instead there will be a unique medicare number that's the news update this hour back downtown to "squawk alley." john, back to you. >> thank you, sue. gary cohn, nation's top economic adviser, one of the chief designers of president trump's tax plan, sparking a sell off on wall street after announcing his resignation he had a major impact on policies of the administration here's a look back at his tenure in washington. >> no one wants to see tax increases, that's not what we're trying to do we are trying to simplify the system and make the system fair

for everyone america first is not america alone. i said in my remarks, when we grow, the world grows, when the world grows, we grow we are part of a world economy and the president believes that. this wealth effect is felt through the whole economy, felt through pensions and 401(k)s everyone is getting to benefit from arising stock market. it is my plan to stay and work as long as i can help the drive his economic jaenagenda year ago, i didn't think i would be here. we think we can be above gdp growth with what we will accomplish on deregulation, what we are going to accomplish with tax reform when people get their february paycheck, they're going to catch up to january and see more money in their pocket. i think seeing is believing. the stock market is a barometer. nice thing about it, it is a real time barometer. we do look at it >> and looking at the market today, the dow is down 150

points, at least partly on news of gary cohn's resignation he said four months ago he couldn't tell us where he would be four years from now see where he is now. >> in some ways, the most telling sound bite also worth noting, something we don't talk about as much, copper futures have been lower, and i think the assumption is that dr. copper, if we were to see tariffs in place, the read through in the market, with cohn leaving that this tougher stance on trade is likely really coming no matter what anyone else in the white house has to say from president trump that we could see slower global economic growth and seeing that play out in commodities right now. all right. for more on cohn's resignation's effect may have on the markets, joined by brian jacobson, multi asset strategist, doug coat, market strategist as well. good morning to you both >> good morning.

>> i want to start, doug, with you. what is your expectation on what consumers and investors should be doing differently with portfolios, if anything, based on this. i am particularly curious about diversification. people have been punished if they react to quickly to headlines this year. diversification is perhaps a different issue when it comes to trade. >> first of all, i want to say much ado about trade tariffs, i congratulate gary cohn for being part of the team that gave us 21% corporate income tax rate, deregulation, repatriation, small business tax help, and what has it been doing we're actually -- global trade is at an all time record high, exports, imports surging

that's the pro-growth that gary cohn wanted is working what i always say is to have a plan as far as diversification the plan is that fundamentals we're having 3% gdp growth in 2018, corporate earnings are coming in at all time record highs. manufacturing across the globe consumer, expect the employment report to be very strong tomorrow based on the adp report as an investor, be diversified, not just large cap, midcap, small cap, emerging markets and international because then you spread the net and reduce risk being broadly diversified. >> brian, does this change the calculus at all or is it much ado about not much yet when it comes to fears of a protectionist stance from the u.s. >> i'm expecting it is just more or less a political gambit, as

far as tariffs on steel and aluminum in hopes to expedite negotiation process with nafta we know there are a number of different provisions need to be negotiated maybe it is going too slow for the president's taste so he floats this idea in hopes it applies a little pressure to get a few more concessions for the united states. but i agree with the other guest here as far as the idea that we have gotten, gary cohn should be proud, taking comfort that if the stock market is a barometer about success of the administration, that when it sells off, when gary cohn announces his resignation, suggests the market liked gary cohn there's fear and surprise around that, maybe the fear is that somebody will be elevated to a position who is more anti-trade because then what has been given with the right hand in terms of tax cuts could be taken with the left hand in terms of tariffs, which is effectively a hidden tax increase

a tax increase that shows up in higher prices for different goods and services, and it benefits a concentrated group of industries and individuals it seems a bit intellectually inconsistent to be in favor of tax cuts, but at the same time tariff increases, which is why we look at it on multi asset solution team as more of a political gambit, not necessarily shift in policy. sadly, it is something that the market induced volatility and uncertainty. we expect that will be something that fades as time progresses, which is why we view it more as an opportunity to globally diversify your portfolio instead of trying to hunker down, shift back to more domestic focus portfolio where you hope to insulate yourself from perhaps the breakout of a trade war. >> doug, you mentioned the employment report we get at the end of this week how much is that going to shift focus back to the fed, what is the bond market telling us now

>> i think i'm expecting 225,000, which would be a good number based on initial claims and what the adp report does but one of the things i think there's also much ado about the fed and bond yields. the reason they're going up is we have strong economic growth i don't expect the fed, we're expecting three rate increases this year. but they're a little behind the curve. the market priced that in. i think it is a go slow, 25 basis points each time remember, bond yields going up is an indicator of strong economic growth. not something to fear. that's what the fed has been trying to do the past two years, raise inflation and interest rates. we're finally successful now everyone says it is not a problem. >> that was sort of what secretary ross said this morning, that the economy could

use a little inflation trying to get it for years brian, you recall the last jobs number, that wage number was the thing that spooked investors, led to a dip i wonder if the wage number friday is hot. are we in for a repeat of that or more accustomed to it having touched the stove once >> i think people expect that wait and see, but hoping that maybe that increase in wage growth is not going to persist to push the fed to hike faster if we do get a strong print with the wage growth, say something close to what we had last time, 2.9% year on year or 3%, we could see another hissy fit in the bond market. >> meaning what? meaning 10 10%? what's a hissy fit >> we could see the ten year treasury move from 2.87% now, up to 2.95%, something closer to

3%, because people start pricing in faster rate hikes and one of the dovish board members came out and effectively endorsed the idea that chair powell said, some of the head winds turned to tail winds, and effectively she's endorsing four hikes instead of three to an extent the market has -- >> that's too bad. interesting point. i was going to ask to follow on equities doug, i'll leave it to you if we get, again, 3%, what's the ancillary effect on stocks >> stocks are driven by corporate earnings growth. quarter earnings up q4 up 15%. if you look through 2018 and 2019, i expect we're going to continue to be all time record highs. buy stocks based on earnings growth don't worry so much about 3%

bond yield based on inflation numbers, that's a ceiling i'm not worried about it >> great discussion. thank you, doug and brian, wherever you are a major nor'easter about to slam the east coast. let's get to weather channel mike seidel in pennsylvania today. mike, we're waiting to see to what degree this hits the city over here. >> reporter: hey, good morning, carl this is another nor'easter, but not like the one last weekend that stuck around, produced winds of 93 miles per hour up on cape cod this is more about the snow, we are 30 miles west of centre city, philadelphia we had six inches so far the turnpike is in good shape. thank goodness for the march sun angle. it has to snow hard for a road like this that's salted, treated, plowed to be covered up that could happen again this afternoon. many areas getting up to a foot of snow, includingnew york

city, north and west hartford, north and west of boston, areas that got rain and a lot of wind last week, snow this week. more than 2600 flights cancelled nationwide most in the northeast because of the storm, let alone the wind issues like at laguardia three new york city airports, flight cancellations, about half all flights in and out of kennedy and laguardia and newark it will wind down late this afternoon and this evening, over with in boston certainly by early tomorrow morning, certainly for the morning rush hour then we'll dry out, hopefully get a break from these nor'easters in this part of the world. watch your travel this afternoon. snowfall rates, 1 to 2 inches an hour if you're lucky enough, carl, you may experience thunder snow from philadelphia up to new york into worcester, massachusetts. not out of the question.

we have storms on the jersey shore, producingr some carl >> i hope we don't get thunder snow, i hope you stay safe and warm out there if we do. that doesn't sound fun to me thank you. when we come back. top on netflix, shares surged 70% this year. stocks down by 2% now. we'll discuss next and major check of the averages all of the major averages are lower. dow down 163 points. more "squawk alley" coming up.

coming up top of the hour on the halftime report, former white house communications director is with us live today on gary cohn's departure and what's going on inside the white house. plus, our trader wills tell us what cohn's resignation means and the call that's sending netflix shares lower today that and a lot more at the top of the hour. see you in about ten >> sounds good, scott. we're going to talk about a little as well, one wall street analyst getting less bullish on netflix. lowering its rating from buy to hold citing concerns the price has gone up too fast 70% this year alone. netflix's market cap now

exceeded some of the world's biggest multinationals like mcdonald's and ge. it's a funny two step guys that scott did on this one. he raised the price target to 325 bucks. higher than it is now. from 283, but lowered his rating he had a buy and his price target was too low but it's gone up so fast i don't know what's so different though about this call than the call he could have made at any point. boy, it's gone up fast >> how much higher can it go >> he thinks he's going high er and doesn't want to chase it but 30 points in three days is a little hot >> and he says it's a short-term issue. makes me wonder does he end up raising again to a buy i don't know the cal es thennics and contortions these analysts have to go to to get their price targets and their ratings right. zpl just incredible. >> when we come back, this

morning, a lot more on the market moves as stocks climb bakr for their lows, although dow is now down 212. earlier, we asked larry kudlow about reports that he's on the short list to succeed gary cohn at the white house >> i love cnbc i've been here a good chunk of my adult life in various capacities host, anchor, commentator, contributor, whatever. i love it here might also say i love my radio show might also say i love my hour every week with john taxler. lord has been very good to me. regarding this, we'll see. ha ncoeni veo mmt on it. i can't speculate without making sense. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person,

on what matters to you. morgan stanley.

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we've been in a trade war for the last 20 years with china, but china's the only one fighting it. and the trade war we've been engaged in, our policy has been unilateral disarmament the u.s. has had a pacifist trade policy with the rest of the world and we've prostrated ourselves to the chinese in exchange were a potential economic growth in the golden carrot that the chinese hold out front of us. >> kyle bass this morning on sidewalk "squawk on the street. everybody who's invested in google or apple or facebook knows what he's talking about. the promise of all those exhume consumers in china who might

want hour goods. >> apple has managed to make that pay off in spades at times, so we'll see how this talk of trade wars pans out for both sides. >> boeing, too a lot of big companies that you cover. >> absolutely. one of the points i just made, harley davidson has experienced tariffs from china >> dow down 287. let's get to the judge and welcome to the halftime report i'm scott wapner we begin with the fallout from the surprise resignation of president trump's chief economic adviser, gary cohn stocks are falling as we speak off the worst levels the dow jones industrial average is still down by 270 points. it's a loss of 1%. investors clearly trying to gain what that departure means to the markets. for more on that and what'