new york who don't have branches overseas that hurts >> all right, robert thank you. >> we don't have much time final check on the markets futures are strong this morning, indicated up 114 on the dow and 13 on the s&p and 43 on the nasdaq, make sure you join us tomorrow "squawk on the street" is next >> good monday morning, i am carl quintanilla and with melissa lee and david faber. jim cramer is off today. the president weighs in on trade and apple and ford as well as a series of executive departures europe is tarading well.

we'll begin with the end of an era. lesley moonves is out after sexual allegations >> china warns of retaliatory tariffs. stock futures are pointing upward moonves has resigned as ceo of cbs after two decades o f the company. david faber reported about the departure early yesterday afternoon. joining us this morning on the phone, david, on friday you offered basically a preamble of what we would see last night and now the discussion is allergically about what kind of exec comp he may get, your thoughts today >> you know there is a lot of different parts of the story and we discussed much of last week when we reported the settlement talks between cbs and moonves and settlements taken place with cbs and its control shareholder.

what's more important for investors and one reason wh why -- as for moonves and we have said so many times a big loss for cbs and having ran the company for so long. the latest article is certainly up the pressure on the board to act swiftly as possible even though frankly they were already moving towards an exit and they probably would taken place at the same time. it is compensation where he could get hurt given last week we were reporting he'll walk away with $100 million but, reported last night it was $140 million minus the $20 million contribution but that $120 million that he would stand to potentially get what he'll only receive is clear by the ongoing investigation into

charges of sexual misconduct against him and his broader investigation of the culture of cbs. frankly who knew what and when or whether it was the board or everybody else the investigation is ongoing and seems unlikely given what mr. farrow is reporting that mr. moonves is going to be clear walking away with anything when it comes to comp they have cleared the air with the controlling shareholder cbs of nia >> let's talk about the remake of the board here as five members leave, six ones added and a lot of names our viewers are familiar with, just to name a few, parsons --

>> it is inclusive as part of the settlement, we were talking about it last week, a year and a half but ended up this sort of two-year period where you would need two-thirds of these independent directors to approve of any deals with viacom and, nia is not in the position to propose any deal. people should look through that for a second if name that you just mentioned whether it is parsons are well aware of the landscape of the media that it currently exists it is not in conceivable given your talk of two companies already agreed of an exchange ratio of forward deal. we would benefit from a link up with viacom and so while nia is not in the position to propose

it, overtime perhaps there may be a willingness in the part of cbs director to consider it and viacom can decide it may want to push the matter. and for practical purposes, you are always going to need at least, in every deal you get every single director to agree you need two-thirds of those independence to agree and 50% of them after the two years period is over. cbs shares were up last week and they may be up again this morning on this belief somehow that cbs can be sold separately because nai says it will not stand in the way but will of course have the right to vote on shares one way or another. it seems unlikely there would be anybody out there for cbs. i think a bit more was made of verizon and at&t interests that was the case previously. the tax ramifications for nai or

viacom separately are far worse than it would be if you put them together and sold the control position by selling national [ music playing men amusement we'll see what happens overtimes here >> in total the stock is up about 7% since thursday is closed you put it together with what's going on with nai, michael nathan, says he does not believe any viacom or cbs deal would be imminent >> i don't think anything is imminent if you look at it, yes, viacom and cbs still have to be your absolute number one potential competition. should either one company want to pursue it i do that's not to say that somebody may not try to make a -- i am

not sure, at any ti&t and veriz going in a different direction for any number of reasons, you can imagine why that would not make sense but, i think to your point, viacom and cbs is still the most logical possibility when you talk about consolidation i don't think anybody is expected for it to happen this year but could it be revisited next year. this is something that does make sense given the changing landscape. absolutely >> david, how do you think all of that play into a search for a permanent ceo. the deal stuff is right throughout in front and you have a fresh gourd at least most of it how do you go out and is it a genuinely a wide open search for a new ceo right here when you have a company has other plans down the road.

>> that's a great question it is porimportant to point out this investigation is still going on but, we have to see what the investigation by the two law firms by the cbs fines will they be fined from the previous board they're looking at wide range of things in the company. it is hard to imagine that you will recruit new ceo i do think they are determined to look to see if there are candidates out there and nothing to say that ianniello won't end up with the job. sherry red stone is the vice chair. they do want to find a permanent ceo but i think it could be difficult given the investigations that you have to conclude

>> finally david, having covered moonves for so many years, a couple of personal thoughts from you about his legacy and how he's going to be remembered for making this network the number one network for over a decade? >> listen, he was somebody i got to know fairly well over many years and this clouds his reputation he was thought of the constant programmer during his many years running cbs. that was always thought to be his greatest strept angth and a greater strength anybody in the network has. as the world has changed so dramatically, he has positioned the company and be competitive aggressive subscribers and using distribution and retrans so importantly that help fuel the

growth and cash flow of the company. he made an enormous amount of money as well, let's not forget about thacht. don't forget the compensation he made was at the top for year after year there are those who say there are now risks of the company in terms of the nfl contract and even though it is not up unt until '22. we'll see what the legacy is in terms of his operation he was well regarded and we all know that for many years he was particularly thought of the dpragreatest programmer of s generation >> yep >> we await the investigation from within as well. david, appreciate it very much we'll talk to you soon david faber is joining us on the phone talking about moonves. jack ma announced he'll step

down from the chairman daniel zhang has been named until the company's shareholders meeting in 2020. a lot of analysts are out don't expect any sorts of change in terms of the ailment of the company to execute that he's largely stepped away from day-to-day op rerations since 2013 he gave up the role to daniel zhang. >> it is really trading along with sentiment towards china as a whole. it is down on its highs and even though it is not an exporter it is whipping around the sentiment of china capital flows out. >> ma has been a frequent guest at this desk and including ipo days

i think we had some sound when we asked examples of inspirations from him, take a listen >> the hero i had is forest scum 14 years ago >> you no e heknow he's a ficti character. >> i have been watching that movie about ten times. i watched the movie before i came here again for coming to new york because i want to watch the movie and telling me that no matter what, you are you i am still the guy 15 years ago. >> "forest scump." >> a really interesting guy. >> yes, i remember that. he definitely helps make what

that company is. >> we'll watch the entire social base they really lost a lot of grounds last week. their snap shares are down >> a presidential warning as the u.s. looks to slap tariffs on virtually all products made in china. the president calls on apple to build their products here or risk rising rises. >> first losing week of the quarter but rebounding today dow and future are up 120. we'll be back in a minute. global markets, that'f the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase

the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

china warning this morning that it is preparing to retaliate. president trump delivering a trade warning for apple and u.s. consumers, ammoeamon javers is e outside the white house. >> reporter: $200 million additional tariffs this week that can come any time

the president is saying it may come here is the president's tweet over the weekend saying apple prices may increase because of the massive tariffs we may be imposing on china. there is an easy solution where there will be zero tax and tax incentives make your products in the united states instead of china. start building new plans now, exciting, #maga. on friday he suggested in a speech that there could be additional tariffs behind that $200 billion he says it is $267 billion if that is put in place to be a tari tari tariff on every china export in the united states. that official suggests is a response to any chinese retaliations to the tariffs they plan to put in place possibly this week. you can see the next step of

this trade war plotted out here. we'll see if we'll move forward with that this week. the president deflected some of the political complaints that he may get of rising prices in the united states and in terms of apple products >> the importance of china is ready to retaliate that china ka no longer respond for tic for tac. >> right could they take some steps regarding u.s. treasury markets and all of that is unknown right now. we talked to officials here in the white house that they are confident that the chinese won't do that. this remains a tariff on tariff war and the chinese won't extend it into other areas of economic interactions between the two countries. we'll see if that holds true >> all right, eamon, thank you

>> when we come back, trading sessions with cashin we'll get inflation numbers later on during the week big product events of apple and retail sellers >> more "squawk on the street" on nyc, straight ahead who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org.

ianniel . just nine minutes before the bell rings here. let's bring in our nofloor operation. we got a good opening here no deals with china yet. where do you think we stand, art

cashin >> we started out last week the president announced that he can do tariffs on $227 billion so it is a total of $427 billion that got everybody puzzled they had the dow dropped in a matter of minutes and by the end of the day, they're trying to struggle back when apple -- the new tariffs may raise our prices and hurt our sales and earnings. nothing new happened over the weekend if anything, this is a sigh of relief of response in the future >> you have a sigh of relief and the pull back where all the action was and most of it from the big cap growth stocks. do you think the market is caught up on its own field position games and going to a new high and pulling it back >> i think it is sorting through what it wants to do and you got a variety of market indicators that tell you the market may

ready to pull back here and goldman sachs indicator, the highest that has been in a couple of decades that protects pull backs my friends and fellow veterans, a model that indicates a possible stall here. we run into some real resistance so i think you go t t to pull bk it will be interesting if the market cares on the pull back. no sign of it unless you saw them on friday we'll wait and see this year the jewish holidays are a little early and they usually fit in towards the end of september, the beginning of october and that may well have had something to do with crop rotation and money going out but historically, china has a good record >> we had apple saying the

tari tariffs would impact the range of goods apple finished lower do you think investors having gone through the exercise, if $200 billion goes into effect, then it will actually hit prices and impact companies it feels like investors are looking through that we are not too worried about it at this point. >> they believe all of this is still a negotiating stance the president is posturing and everybody got the feel that his odd of the deal is to commend with a wild opening ploy and when everybody recoils then okay, maybe we can work something out with you that's one of the reasons the tweets come out and they shock the markets. you wihine up coming back. >> art cashin, it is good to speak with you

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you are watching "squawk on the street," live from the financial capital of the world opening bell is over two-minutes. busy monday morning. the market celebrates ros rosh hashana mike, you mentioned the action that we saw last week and the degree of which this little down blimp in tech is contained or not. >> right >> it looks like towards the open, the nasdaq is going to out performance. you did have the real weakness of the nasdaq 100 name that was really was behind the 100 drop of the s&p. so i do think there is a sense in there no new news over the weekend they'll attempt a bounce here because you have some analysts coming out and for example saying raising price targets on

amazon amazon is almost of $100 of today's high city goes 2250 from 2100 on a.m.son. a.m amazon >> you have this interesting with amazon where the price tar targets are not that high. >> it is not just internet stocks we are watching this week >> we had a couple of semiconductor companies talking abo about micron and kla-tencor that combines with the pick up and fang stocks. >> what kind of boom is this if

those things are in the markets or not >> by the way, this week there are a slew of investment conferences so you got to be on alert for take off s&p at the bottom of your screen cnbc realtime exchange opening bell today it is insurance after flak we are going to see a lot of ducks on the floor this morning of afflack >> we mentioned city raising on amazon >> i think they'll go with nike. and a lot of sentiment to bare on tesla today you got to buy tesla shares even with the drama tesla is up 5% it extend to the downside a little bit its got down to the level and of

all the tech private stuff that we talk about. this stock got the high 300s without any of that. it got to 250 a couple of years ago. it is for a long period of time trading on that stuff. it seems more over so, we'll see how much it will bounce here some may argue that the bar may be higher as the company reports earnings of first week in october in order to look past the prereceived instability of what somebody prereceive erceiv mess right now the shares are 5%. nice gain there. we are also watching shares of alibaba and along with a lot of chinese stocks they have been trading along sort of souring sentiment over china as a whole trading lower in bare market territory along with the shanghai composite

we have alibaba shares down by 1.4% on news of coke founder, the executive chairman will be stepping away from that role it was widely viewed that he had stepped away from daily operations from quite some time at this point. that has more to do with concern over this next round of tariffs hitting china, specifically this group has been hit hard as it has been an out performer last year at least. >> exactly the tariffs stuff have not had a tremendous deep effect on the market headlines it seems of escalation you have the president saying apple should make stuff here or ford should make stuff here. that implies that tariffs are going to be here for a while because of tariffs we are talking about are in negotiation point. >> for ford specifically, the spokesperson came out saying it

does not make economic sense to produce a car where you have less than 50,000 units in demand you can't move that kind of production here and make economically viable. >> right >> not to mention the fact that the sedan in general is turning out not a north american vehicle. the t it is a vehicle for china. as production goes local, could have to tailor it to the preferences of that market it is a global supply chain has been wracked >> and exporting u.s. cars to europe that's a small car market and we don't have that predict lioducte >> as the president gets more grandular at the micro level mentioning nike and ford and apple, apple is down to 219 and ne their suppliers got hit very well of some of these makers of

cameras and lenses >> he thinks the product impacted will account for 4% of revenue for fiscal year of 2018. if passed, it can lower the profitability of the watch of 10% to 20% it will be less of a percent of an impact. he also believes that tariffs will be in place for a couple of years. this is the ongoing assumption that these tariff fs they even hit will be a phenomena. we don't know if the tariffs are going to be there. it is a lot of unknown here. >> that's really a 2019 question, right? >> right >> that's where we expect to see if we'll get continuation of capital spending

how do you make those decisions? the labor market is tight here and manufacturing continues to do well here and it is tough to square howit would all fit together >> fascinating look cover the washington post about blue collar jobs in the country they look at mining and constructions and manufacturing even though manufacturing lost some jobs in the august report if you look at june to june, up 3.3%, the best since '84 on these blue collar of a surge of push. >> it is a percentage of the jobs they had. it is really on some level of a catch-up move. we'll see how much it matters in november, i guess. interesting. >> yeah. >> looking at sector performance. telecom best performance sector. that's an interesting twist as

we see the nasdaq posting their best games >> major change. a week or two, it will be final. >> i thought it is interesting t to hear faber. cbs is in active take over candidate or in the view of some it was trading up about a percent premarket that's gone in the red following david's comment heading into moonves' departure last night and not just that of the details of ianniello and the truce of nai and the remake of this board this is going to change things, too. >> it is hard to make the case hang potential ceo come on board, we may sell you off in a year >> unless it means brand new majority of the board looking for their own ceo and going to say our intention is to remain

independence it is a messy situation for any third party buyer beyond viacom to some in and say we are going to do something. stock is so beaten down and it looks so cheap relative to the media group. trading right here is 55 it is not as if there is any take over premiums built into the stock. >> even if the report surfaces there could be an agreement with nai. the stock did not take out any premiums whatsoever. the stock is up 5% roughly that's not trading like it is being taken over >> we got three hurricanes in the atlantic all taken different paths, florence and isaac is another one. southeast of bermuda expected to make land fall some where near north carolina on thursday night michael just joked about when

does it start in this is the peak of hurricane season here. >> certainly >> home depot seeing a surge in sales. >> it seems like a perennial thing as a oppose to a one off that should be a beneficiary always makes the economic number noisy too and allows you to adjust them any way you like that's another thing to watch them in third quarter numbers. >> with all that dow is up 75 points and s&p is back to 28 and 72. let's get to bob >> good morning. a great start here, 4-1. take a look at the sectors very broad, almost all these s&p sectors in positive territories and semi is leading and retail is a monostore aster and energys

rebounding that's 30% china and not just alibaba. let's review the four things that matters and move the markets. first of all, it is the feds and rate hikes and tech leadership falters when ever that happens and global growth which has been unooer uneven when we had trade war issues, or strong dollars or tech leadership faltering, things fall apart >> europe and austria and asia, the far east, the united states was down and emerging markets were down and tech was down and energy was down. this is all on trade wars and technology leadership issue. if you look at the global growth situation, we keep on showing these numbers week after week because we are stronger growth than anywhere in the world

china is still holding up of noble stimulus underway there. emerging markets generally are solved when you get this strange mix, it is no wonder that our stock market just keeps out performing the rest of the world. this is the number one story on the air and everybody keeps on saying it can't keep going on like this. we can't have the s&p, germany is down 7% and china is down a lot of people are rotating into developing world. so far, that trade has not been particularly successful. it made sense but it has not been successful so far finally we talk about the financial crisis ten years later of the anniversary of the bankruptcy how has trading changed? people's heads are different we saw lower volatility. that was one of the feds

objective and the rise of indexing and exchange of trading funds overall. the etf trends started in 2008 etf is well. reduction in the io market continues. we saw that in the 2000s it got better up in 2006 and 2008 and it deteriorated >> just in general, fewer publicly traded companies that are out there. this again, this trend was not completely started in 2007 and 2008 in 1998, there were 7500 publicly traded companies. we were better for several years and 2008 and 2009 hits, it dropped again. the top 5,000 companies in the

united states has 3492 companies in it. there are half the number of publicly traded companies out there than 20 years ago. that's quite notable finally what's the next crisis where it comes from? nobody knows we'll be debating this all this week the debt level is the big one that everybody worries about corporate debt and the government debt is historic highs and household is not historic but it is moving backup global growth and the government debt and other countries also are very high. we'll be talking about this all this week on our tenth anniversary of the financial crisis good start for the day melissa, we are up 88 points >> bob pisani here at the nyc. let's get to bertha coombs >> hey melissa the nasdaq having its worst week

since june a little bit of a bounce today along with the sector which led things lower rebounding this morning, tesla and some positive comments coming out of. a lot of the equipment makers are seeing some little bit of buying and one of the big things to watch this week in tech is going to be apple. not just these issues regarding trades or longer term but near term apple is expected to unveil new products on wednesday and that's often a real catalyst for the tech sector and for the nasdaq take a look at what normally happens if you buy stocks according to our friends at kensho one week later, you do get a number of stocks moving higher in the chip sector texas instruments and others that are among apple suppliers are also moving up 2% or 3% in

the week prior that's something you will watch this week that normally helps boost the tech sector. back over to you >> bertha, thank you very much >> let's turn to rick santelli in chicago >> good morning. >> morning, mike >> there is always a continuation and in this case you look at one week of tens, its firm treasury rate if you look at beginning of august that jumps out of you or hovering one month highs closing yield on the long end. the short end is up one at 270 it is basically at a fresh new high going back. the curve is flattening a little bit. we are hovering right around the 23 basic points area on 10 minus twos it is not the flattest it has been but darn close on the macro

horiz horizon. bund yield, the 40 base level is lucid to us. why is it firming? well, we know that the central bank meetings are coming up especially the ecb, maybe it will be fascinating but also it seems as though the italians side of the equation to some extent is calming. as you see on this april first chart, still off the levels when you start back in the spring but definitely well below 3% now and that trade dissipates on the intensity barometer, there does seem to be more on the selling side of bund and treasury to a extent based on spread because of the nature of being a higher quality. you look at the dollar, you can see at the end of this chart that starts at the end of may. we are not on the weakness of

chinese currencimey but it is moving in favor to the dollar again. this is fascinating. august was a wild month for the dollar index if you look past the market utility t the north side of 95 even is giving the bulls a better argument. foreign exchange is actually a pretty settled firm trading market no matter which angle you look at as long as the emerging markets don't act up again >> carl, back to you >> rick santelli coming up, the president wants automakers to build cars in the united states and stocks losing about a quarter of its values so far here overall, dow is down 90 points and s&p is up at 12. we'll be back in just a moment who would have thought, who would have guessed?

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therefore it will not be built here in the united states. that's contrary to what the president was tweeting out yesterday. look at shares for the last ten years of ford and the reason we're showing you ten years is because, yes, this stock is down at a nine year -- close to a nine-year low. you have to get under $9.23 before you hit that level. nine years ago, the mercury brand was still being built by ford there was discussion they were going to phase it out and they finally did in 2010. what's the future for ford it hovers around what ceo jim hackett plans to do. what's his turn around plan? we're putting question marks because nobody is sure what will happen will they exit major markets europe and south america are mentioned most frequently.

cut 10% to 15% of the work force? then there's the the autonomous vehicle strategy ford is investing heavily in autonomous vehicles but nobody is sure where it will pay off, how it will pay off and what's the strategy ever all and analysts are saying not sure you should touch shares of ford. that's why these shares are close to a 52-week low and analysts are waiting for when ford reschedules its analyst day. it was supposed to be this month. they postponed it, nobody is sure when it will happen and one other note regarding postponements. look at shares of geely, the chinese auto maker that is the parent of volvo. we were talking about geely planning an ipo of volvo they have said we're not going to do it because of trade uncertainties. that's made it difficult for volvo which has manufacturing presence in china to know what its revenue, profits, et cetera are going to be for the foreseeable future

back to you. >> phil, that story is interesting. meanwhile, aston marton, though, plowing ahead with their plans and i loved how you were joking with andrew about days you take off and how that's almost a guarantee for tesla news. >> come on vacation in san diego, he says let's go public i'm on the beach i'm off on friday and he decides to smoke pot on a podcast with joe rogan. so i'm going to send him my vacation schedule for the future so he knows when to make news. >> when it comes to that chart of ford, it's striking sales volumes are off their highs. pickup trucks selling great. is it a nafta thing? is that one of the big overhangs, aside from the mega story of what the future of travel is is, mobility >> i think the biggest overhang is the turn around plan because right now there's very few people who have any sense of

what ford wants to be in the future aside from the manufacturer of the f-series sales are strong in the united states the f-series will have a record year and it's highly profitable. it's an incredibly profitable vehicle. but ford is losing money in china, that's a mess they're trying to turn around. yeah, they're making a little money, close to break even in europe, what are they going to do there south america, we've talked about what a mess that is down there not only for ford but other auto makers so nafta is a part of that but the bigger question is what is jim. hackett going to do for ford in terms of here's where we're going over the next three to five years. >> phil, thanks. we'll talk to you in a while phil lebeau, always good to have him at work. as we go to break, look at the top-performing stocks on the s&p. foot locker is in the mix. best day for fl since april as wells ups its price target nike has recovered almost all of

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shares of cbs down almost 2% having lost nearly half of the

gains that they started to build a couple days ago. we'll get more reaction to les moonves stepping down as ceo as he faces new allegations of sexual misconduct. what happens to the company now. dow holding on to rleay gains for this monday. up 75.

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welcome back to "squawk on the street," i'm carl quintinilla with melissa lee and mike santoli and post nine of the new york stock exchange. david and sara are off today markets up about 78 points on the dow, s&p almost 12 as we watch trade. cbs and several other stories today. this morning, a road map starts with the cbs shakeup. ceo les moonves resigning amid sexual misconduct claims. plus, a presidential warning for apple, calling on the tech giant to build its plants here or risk rising prices. and new seasons, same controversy, president trump trashing the nfl and nike but are kneeling protests really hurting the game's ratings top story of the day, the end of an era in the me too

immedia -- media and the me too movement claims its first "fortune" 500 member jane wells joins with us the latest. >> as part of this, the lawsuits between cbs and viacom's parent company national amusements, or majority shareholder, those have been settled sherry redstone says she won't force a merger between cbs and viacom for two years though she's open to suggestions from the board and by the way half the board has been replaced by outsiders. we have newcomers like dick parsons who use to run time warner, you have to ceos of hasbro and take two interactive and nearly half the board is made up of women moonves' exit negotiations turned into an immediate departure after six more women claimed the new yorker he harassed or assaulted them in incidents from the '80s to the 2000s, moonves says some stories are false, others are true but

consensual and the whole saga is "not consistent with who i am. he will not receive any severance until independent investigations are completed and out of whatever he might get, which could be zero, it will be shy $20 million as cbs and moonves are giving that much away to me too supportive organization cbs "this morning" host more no o'donnell said ten months after having to announce the departure of charlie rose, she's surprised about having to do it about her boss. >> there's no excuse for this alleged behavior, it's systematic and pervasive in our culture and this i know is true to the core of my being -- women cannot achieve equality in the workplace or society until there is a reckoning and the taking of responsibility. >> one other question remains for the network -- what if anything happens to "60 minutes" executive producer jeff fager. he's also been the subject of allegations of unwanted touching, including a no one

yesterday in the "new yorker." and "60 minutes" a very important and profitable franchise for cbs. guys >> jane, good to have you back although on a tough story. thank you, jane wells. former medtronic chairman and cnbc contributor bill george, currently professor of management practice at harvard business school. thanks for the time. >> thanks, carl. >> a lot of criticism to go around obviously moonves himself, others blame analysts for not asking about this at the last earnings call and you have some thoughts on the board and whether or not moonves stayed too long. >> it's about time, carl i think it's three years too late les should have gone out a long time ago he's been there 15 years as ceo and these allegations have been widely known why the board sits back and waits for ronan farrow to write two articles of these women coming forward, what are they thinking what a sharp contrast, carl, with intel, texas instruments,

and even hewlett-packard in years past when those borz acted promptly and effectively i think it's because they had an inside board they had seven insiders including the redstones and many are departing finally and bruce gordon did an excellent job -- doing an excellent job as lead director, dick parsons helped recruit a new board and they're bringing on great board members, three terrific women, a couple ceos and parsons himself and mary minnow, by the way, the strong ones are being carried over mary minnow who is a colleague at harvard, dean of the law school, terrific and countrymen from liberty and -- you've got good people there that are staying with it. but i'm very critical of this board for not acting and i think it was well known in cbs what was going on and created a terrible atmosphere, as your previous guest just said, for women. >> you mentioned other examples

like at intel and texas instruments, other companies where the board moved swiftly in the face of allegations but i wonder if there's some take away based on the fact that moonves was so synonymous with cbs he's the only ceo this company has had in its current incarnation since it was public and independent. he was considered to be the linchpin of the whole strategy and i would look to steve wynn, too. it's a signal of how much pressure is necessary for a board to act when you have that kind of ceo and i wonder if that tells you about governance across other companies that have that situation, perhaps in tech right now. >> yeah, exactly and i think les was not -- he's not the owner, he's not the founder, it's not like elon musk or the situation we've had in tech but i think that's a terrible mistake. there's always somebody better than you are out there and if you ever start to think i'm the only one to hold it over, nonsense look how well medtronic has done

and i've been gone a long time if they have a strong board and good succession process, but without that they'll be in trouble. i think les was too powerful and he should have -- yeah, he did great work, you're right but he should have moved on and let somebody else take it over let me just say this as they're looking to people, we have fantastic women in the media industry how many of them make it to the top? i'd like to see them appoint a female ceo to replace les moonves. that would change this culture in a hurry and it would make it a much healthier culture not just for the women but the men no one wants to be in an uncomfortable environment when these things are going on so time to clean house and get new top executives in there. >> certainly the change in board composition is a big step forward but you mentioned the board's role in this whole thing and the board was very cozy to les moonves and that's fine when

the company and stocks are doing okay but then it turns bad when the board is expected to do something. is this a time for investors to take a hard look at the board? investors who generally don't vote their proxies out there they don't pay attention to who is up for vote when it comes to a board contest and to look and see what kind of connection does the board have to the current ceo? >> absolutely. why do you have all these insiders the boards i'm on don't have insiders and this idea of cozying up to the ceo, that's the last thing you want exxon performed great when i was on the board. no one was cozy with rex tillerson. no one is cozy with lloyd blankfein, he's just done a terrific job i don't think that's the board's role you have to be challenging and when you have insiders no one will challenge they'll just listen to whatever the ceo wants and that's a huge mistake so go to independent directors.

>> i was going to say, on exit compensation, what does he legitimately deserve and i assume on that front maybe you think we should wait until these law firms finish their investigation before they decide >> yeah, but basically -- i'm not sure he deserves -- why does he need more money he's been well paid all these years. why give him more to leave he's left under a shadow he's harmed the company. yes give the $20 million to the me too or the women's organizations, go on but i don't think he -- i didn't get any compensation when i left medtronic and we did okay. i don't think he deserves it. >> i will probably get skewered for saying this but what if these allegations come up empty? when you read the "new yorker's" accounts, they've seemed very -- there's no reason to not believe them but these are allegations, he hasn't been proved to have done anything wrong at this point. isn't it fair for him to receive the compensation he might deserve if the allegations don't

come up to be true. >> you're right and if it proves to be false there will be a lawsuit but i think the board should have contact with the senior executives and know what's going on. you don't just wait for an outside law firm to do an investigation. as a board member you have to have a sense we have long meetings on all the boards i serve on talking about diversity and inclusion, you have direct contact, you get a good sense of what's going on. if the board hadn't done that, shame on them. they should have been doing it all along. they'll get a good idea of the culture that -- and culture matters, companies with strong cultures do very well. silicon valley, look at the strong culture at apple or google those companies are doing well because they have strong cultures this has been a problem, they have talented people at cbs but not what i would call a high-quality culture. >> bill, it's quite a story, always good to get your take given your street cred on it

bill george. we'll see you next time. >> thank you, carl. >> cbs shares, by the way, trading more than 3% lower close to sense lows. more leadership shakeups including alibaba jack ma announcing his plans to retire plus a top snap executive leaves the company and we are tracking hurricane florence, a major storm set to make landfall towards the end ofhe t week. more "squawk on the street." be right back. this isn't just any moving day.

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alibaba's co-founder and executive chairman jack ma unveiling his succession plan. he is going to step down next year it's quite a story hi eunice. >> jack ma chose a special day to unveil his plan today is his 54th birthday and it happens to be teachers' day in china people on social media were congratulating teacher ma and say he probably chose this day because he said he wants to return to life as a teacher so alibaba is going to have a new chairman in about one year's time ma says he is going to help with the transition and stay on as a board member until the agm in 2020 and jack ma is going to hand over the reins of his

company to the current ceo daniel zhang he's had a lot of different roles, he's been the cfo of the online marketplace taobao which is very popular and he's been the president of t-mall, the web site that has the official brands as well as c.o.o. of the company. he's also been credited with making singles day one of the biggest bonanzas in the world as we see today so in his letter to shareholders and others, ma praised zhang for his, quote, analytical mind, and said that zhang holds dear alibaba's mission and vision but the big question, of course, for investors is can there be an alibaba without jack ma? so jack ma is the visionary of the company, he is, as you guys know, been the statesman not only for the company but also for the whole chinese tech scene and he is the guy who gets parachuted in if there's issues with the chinese government or,

for example, he's the one who met president trump to potentially insulate alibaba from any trade war problems. so a lot of analysts say daniel zhang has big shoes to fill and some of the analysts describe zhang to me as a solid manager, cautious but one who doesn't crave the limelight so perhaps to ease investor's fears, jack ma addressed that question in his letter saying the one thing i can promise everyone is this, alibaba was never about jama, but jack ma will forever belong to alibaba analysts also here have been speculating now about what will happen next to the vice chairman he's an international face for alibaba. he's been on our network talking to you guys many times but he didn't get the top job so people are questioning when joe tsai might be phased out and are

saying they will be watching closely how the management develops over the next 12 to 24 months guys >> eunice, interesting the point you make about zhang and how he's not an outgoing guy in the media and you think of jack ma and you think of the times he dressed up and danced like michael jackson. very different characters. jack ma is still the third-largest shareholder, correct? he will still be part of the alibaba partnership which is -- some might even put forth that jack ma won't really be completely stepped away from the company and that he will have more say from other people who stepped away from that role in the past with other companies. >> right, right, right he said he'll be a lifetime partner of the company but he is backing away from his role and said this is a decision that's been ten years in the making and

what part of their overall strategy and another thing people are fascinating by here is that for an asian company he is not now bestowing his company upon his children. he's actually said over the past ten years they've been looking inside the company to pick somebody they think will be best for the company to take on some of the challenges that this company faces because the landscape has changed a lot for alibaba. you have a very competitive e-commerce marketplace, a slowing economy as well as the trade war so a lot of challenges. >> eunice, thank you eunice yoon in beijing. let's get to codom chu. >> stocks are higher on the day, losing steam as traders go bargain hunting for beaten-up technology names that have been hit hard over the course of the past week or so. social media and semiconductor related names are in focus but the tech sector losing steam so

far. now the ticker smh is looking to try to bounce back from three straight days of losses. it's currently still slightly positive but losing some steam alongside the broader market move where we have seen more positive trading action has been with the less economically sensitive sectors of the market. if you look at the spider consumer staples, one of the best so far this month today alongside is prthe spdr utilitis fund traders will see if the theme of tech and energy weakness reverses course or if this defensive trade starts to be that focus for investors going forward. >> very interesting day today, transports and some other names, too,dom, thanks. when we come back, the nfl season picking up where it left

off with the president taking a shot at the league though ratings numbers are an improvement from last year meanwhile, colin kaepernick praising ongoing player protest but what impact could that have for ratings. we'll talk with drew rosenhaus in a few moments hi, i'm joan lunden with a place for mom,

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the president tweeting that viewership declined 13%, the lowest in a decade and that if the players stood proudly for our flag and anthem maybe ratings could come back. joining us famed nfl agent drew rosenhaus joins us to talk about ratings and the controversy. good to see you again, good morning. >> good morning, good to be h e here. >> the president was right about the kickoff game though the numbers coming in today, bears/packers, best prime time show in six months you think ratings will be up year on year >> i do. the nfl is the undisputed champ on tv ratings.

it's the must-watch program period and always will be. trump is just distracting the world from his own difficulties by picking on the nfl. the ratings are going to be great because the product is great and the fans love the nfl. >> were you surprised to see ongoing protests in miami specifically >> no. there are going to be players throughout the league that feel very strongly about the issues about their platforms, about the things that are important for them and players are going to express themselves in different ways some will kneel, some will raise a fist, some will do it outside of their day off, some will do it in interviews this is a movement that athletes take seriously and it's not going anywhere. >> let's say a client calls you up, plays for the nfl and says

drew, i'm thinking about kneeling, thinking about protesting at the game coming up, what do you tell them in terms of how marketable they will be in the future, what happened to sponsorships, et cetera >> i would tell them to do what they think is best that i support them and i would talk about the ramifications how their career could be impacted but i would support them in their decision irrespective of what they would do because i believe in supporting my clients. i believe players have a right to express themselves like any citizen in the united states i think the important thing is not how they get the message out but what the message is. the message is so important. what the fleets are trying to do is very important and very positive and very productive let's not get caught up in how they do that >> drew, you rightly kind of point out that the nfl remains basically the most popular

franchise on tv and most ratings are decline because linear tv rating is in decline but do you think the kneeling controversy has drawn attention away from other challenges the nfl has -- in getting younger fans involved, fewer people playing, of course we have the head injury issue that's been a bit of a perceived overhang as well? >> the bottom line is that the game is fantastic. the players are great. the players maim the gak and if there are players who decide to kneel and express themselves and exercise the right of expression i don't think that will have an overall big effect on the game you look at colin kaepernick, you look at the nike ad, what it spent for nike, people predicted gloom and doom for them. there's a movement going on. it's a positive movement it's an important movement

it's a good movement people should understand that movement and what it represents, not get caught up in any perceived negativity there's nothing here that's meant to be negative but productive and positive to make the world a better place to bring people together and make change, a positive change. >> drew, your thoughts on nike we were watching the price of the shares, they're on their way to recovering most of what they lost since that kaepernick deal was announced. online orders up 30% from the labor day weekend. off think they knew what they were getting into and how it would turn out >> of course nameky is one of the most profitable companies in the world. they know what they're doing, they sure looked at this in every different way and kaepernick is an icon whether you agree with him or not. he's one that moves you one way or another and he certainly is somebody that is very worthy of

being involved in a campaign like this. what he's done is changed the world in many respects, he's had a great impact on our society whether you agree with him or not and made for an incredible advertisement. >> as you look into week two and throughout the rest of the season where do you think liabilities lie for the league is it going to be about getting used to different rules on catches or is it back to the injury question or do you think the protest linkers? >> you know what i personally believe that this will be like any other nfl season where all the challenges for the players on the field that's what we'll focus on, injuries, who's playing well, who's not. you look at a guy like aaron rodgers, khalil mack, two of the highest-paid players in football those guys dominated last night in the game. tyreek hill had nearly 300

all-purpose yards. what an amazing series of games we had yesterday the nfl is so compelling and entertaining, it will be fun to watch week to week the patriots were back at it, the eagles won on thursday night in a thrilling closing game. it's going to be a lot of fun and i look forward to it every week. >> drew, that's why how we know how good you are at your job you come on and sell the league to some degree we love talking to you see you soon drew rosenhaus. >> thank you, guys, thank you. coming up, stocks losing steam throughout the morning the nasdaq just turning a a negative moments ago plus, speaking of losing steam, shares of cbs about 3% lower after the departure of les moonves. much more on the cbs story mi uth morning right here on cnbc

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herera, here's your cnbc news update at this hour. somali place say at least four people are dead after a suicide bomber detonated an explosive-laden vehicle at the gate of a district headquarters in mogadishu seven other people were injured. the al qaeda-linked al shabab extremist group claiming responsibili responsibility the death toll from last week's massive earthquake in hokkaido in japan rising to 40. 666 people have been injured, 2700 people are staying at evacuation centers. meanwhile, north korea is staging a huge military parade on sunday but unlike previous years there were no oi intercontinental missiles on display. thousands of spectators were seen watching the parade and expect launching its falcon nine rocket from cape canaveral. the reusable rocket was carrying a communications satellite into orbit which was then deployed 32 minutes after liftoff.

the rockets' first stage returned to earth marking a smooth landing on a drone ship called, of course, "i still love you. can't make it up that's the news update guys, i'll send it back downtown to you carl >> sue, thank you very much. sue herera welcome back to "squawk on the street," i'm carl quintinilla with melissa lee and mark santoli at post nine of the new york stock exchange. the dow is up 41 nasdaq went red briefly as apple is having its longest lose streak in a few months take a look at where the major averages stand an hour into trading. >> the dow up only 29 points as carl said, the s&p up a quarter of a percent tech was the worst performer last week. apple down four days in a row. we're seeing a return to defensive leadership with us to talk about that, the chief economist and mike stanley. good to see you both

i know you've been pointing to this possibility that the market is coming to terms with something reflected in somewhat more defensive leadership. we were talking earlier, semiconductors have pulled back, industrials have not led, autos and housing. so what's behind that and where do you think it takes the overall market >> you have to go back to june when this began. it coincided with the tariff issue with shine started to take hold of the market since june we've seen defensive sectors lead across the board and cyclical sectors have underperformed we got negative on tech specifically in july recognizing that this was one of the few cyclical sectors that had not really taken its turn at the wheel and being d-rated like other sectors. so what's behind it is we think a peak in growth we think the second quarter will prove to be the peak in growth rates for the u.s. and global growth

at the same time we're seeing a tightening of financial conditions which has been going on all year around the world and i would finish up by saying there's really only two sectors in the u.s. that have not d rated this year, one is tech and the other is consumer discretionary which is being driven by three tech names within that, amazon, netflix and booking holdings so it's a tech story that's where the risk is because those stocks have not d-rated yet. the good news is that process is beginning i think over the last month. >> and, joe, it's interesting because the market is telling that story seemingly while we also have 4% growth at least in the second quarter we had a very good jobs report on friday and the fed seems to take confidence in that and will responsibility accordingly. >> they should growth in q-3 may be better than in two if you get 4% growth, that's better the data looked great. the problem is the fed or what i

think is the problem will be the fed and that is they continue to raise rates in response to a healthy economy thinking the yield curve doesn't matter when in reality it does if you think a recession is a couple years away, the stock market hasn't hit its cyclical peak. >> how do you factor in another round of tariffs on china? and if the chinese choose to retaliate they have to do it in qualitative measures. >> china is going to lose this battle if you want to call it that that's why they've backed away twice in the past six weeks and undertaken more stimulus to me the tariff stuff is mostly political. this isn't going to kill the business cycle this has been out for a while and i would argue that the biggest pullback we had was around the worries of inflation and fed tightening the tariff concerns came later so it's important but this isn't

a game changer in my mind. >> you did a great piece where you say essentially although you're calling for consolidation in stocks, you argue we're at the beginning of this new era of data in which things like autonomy and the internet of things will drive capx and productivity at least for a limited universe of stocks talk about how that co-exists with markets that won't perform as well in the future? >> this goes back to 2016. we started to write about this two years ago that we were expecting a productivity boom long before the political stuff occurred the last year and a half and the idea was that companies have been underinvesting for a decade. that's what the qe era has brought about in fiscal austerity. if you look within the tech space, these market leaders are not technology companies, they've just spent money on technology wares to disintermediate@existing businesses and so the ones that are obvious are names like

google and facebook and priceline, et cetera those have done a great job of investing in tech to create new business models and our story for the longer term, which we think we're in a secular bull market, is based on the idea that the broader economy now, other industries will invest in tech more aggressively and those are the big fat pitch opportunities over the next three to five years, areas in health care and financials and even the industrial space. >> joe, how does that play into this idea that you think that the fed is the main thing that matters here and that the fed can put the brakes on never mind what corporate america is doing on the investment side >> that's always the case. the fed has been a tail wind for most of this nine and a half year bull market and now we've seen them raise short rates significantly. we're seeing pockets within the currency, the dollar emfx has tightened dramatically and the yield curve is inverting so to me it's about liquidity in the fed and with unemployment where it is, my concern is typically the case is the fed overreacts

to an inflation threat that's not there. they hike too much and they slow things there will be a recession almost invariably within five years as you know, michael, when you have recession, the median s&p drop is close to 30% so there will be opportunity at some point to buy stocks much cheaper. of course everything is timing and no one knows when that occurs >> you don't know from what level the 30% drop happens >> that's right. although historically two years before recession s&p with dividends returns is 20% on average so you get one last blowoff rally. >> last question for the two sectors you say have not rerated yet, technology and consumer discretionary, they would be hit hard the most with the next round of tariffs. does that cause that rerating to be harder and swifter than what may be a natural -- quote/unquote natural market forces might have them rerate? >> well, i think that's exactly right. first of all, we've seen other sectors rerate abruptly and very quickly this year and what's happed is trade has created this false sense of security that the u.s. will be immune to a true

trade escalation, right? or true trade war if it were to happen and if we go to these next rounds of tariffs, that is going to really cut into consumer products if you go into the $250 billion to $500 billion range which is being talked about now in the press and if that were to happen then yes those sectors, in particular if you get hit hard on technology it's ant the supply chain i don't think this is going to cause a recession, i agree with joe. but i think it will disrupt the supply chains in a meaningful way which will impact margins which will affect the stocks so it could be abrupt and sharp if the market starts to discount these next rounds of tariff increases. >> thanks, guys, we'll leave it there. still to come this morning, exploring the tech landscape the former chairman of yahoo and long time tech investors maynard webb is going to be with us. he has advice for leaders who want to build a successful

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business good to have you here. >> thank you good morning people might hear about this conference and think it's identity politics. tell us why it isn't identity politics dressed up as business. >> if you look at any business in the united states, it has significant operations, whether it be at&t, walmart, whoever it might be their growth is tied to this population cohort. so it's not about identity politics i'm just a business guy. i'm not a political analyst. not anything else but i always look for where the growth is and one of the things we're finding with a slowing labor force growth rate and an aging baby boomer cohort we're creating a big thing demographically

speaking who is going to fill that upswing we had with the baby boomers and the cavalry is arriving and they're calling it the u.s. latino population cohort they're young, they're five out of the seven new work force entrant entrants as of 2015. right now we're in a hot period but as we see the work force slowing, labor force times output gives us gdp. so who is replacing it and how do we grow going forward >> so when you look at the number of new mortgages, a lot of growth related to the latino market, i'm latina, i fill out a mortgage the same way as everybody else, don't i? as a business person you execute differently how because you have this growing segment or

important population related to growth. >> that's a great question but the simple answer is that when we need segmentation as a business person you want to understand what the buying triggers are you want to know how people are reaching those segments because not everybody buys the same way. so if you're a latino, just simple things like a commercial. if you never see somebody that looks like you, you think that business isn't trying to get your business. so you go elsewhere. yesterday we had the ceo of as well as far general electr-- asn and he and their company are very focused on the whole upswing in the opportunity that's out there and mathematically it is there so the question is do you want to be a laggard? do you want to be a leader do you want to grow faster than your competitors so you look at the people you have on your board, the people in your senior management, people that are in the front lines, you look at that. so it's a combination of many

things, it's about business strategy there's nothing new. it's like what we learned in the late '70s in business when a study said women make 70% of all the household purchase decisions. we used to have this guy named mr. whipple squeezing the charmin in commercials and then there was this ah-ha moment that said well, why would we have a man doing it rather than a woman? because they make the purchase decision in the case of latinos, u.s. latinos the old paradigm was well you talk to them in spanish-language land. >> and they mostly speak english, right >> predominantly english. >> is the latino population an immigrant population >> the vast majority of the latinos in this country are native born. the vast majority and yes we have had an upswing in immigration during the '80s and '90s and the first part of the 2000s but in the recent decade the biggest immigrants into the

united states have been from the east, from asia, not from the south. so we need to understand these things but it's about business nothing to do with politics and if you've been a cmo, a c.o.o., a cfo, if you don't understand that, you wouldn't past my test for whether you should be in the job. >> saul trujillo, thank you for joining us, we appreciate it great to be here at the latitude conference let's let to rick santelli standing by in chicago hey, ickster, good to see you again. oh, mike santoli, i got my santolis and santellis confused? >> you haven't been gone long but you already can't tell us apart. i'll be seeing you at that conference with oscar munoz of american airlines. what's coming up on "squawk

alley" >> well, anchor free has been in the virtual private network game for a long time but privacy online has a new life. really popular te uceo will be on to lls what's next on squooel.

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welcome back to "squawk on the street." markets are largely in the green today, every sector in the benchmark s&p 500 in positive territory, industrials leading the way in trading you look at nearly every stock in the sector, it is in positive territory. gains are led by united rentals, stanley, black and decker, jb hunt transportation services and defense contractors among some of the biggest laggards today. back to you guys downtown at the stock exchange ten year anniversary of lehman brothers bankruptcy comes up this weekend. this weekend we'll look at what changed and has not changed in the system and the global economy. wednesday, we preview a document

crisis on wall street. listen to a clip of jamie dimon. >> whether lehman had the build out or not, the crisis was going to evolve. leverage was there, repo was there, lot of loss in mortgages, money sloshing around the world, governments made it hard for banks. it was going to unfold anyway, whether they went bankrupt or build out. and whether they went bankrupt or built out, as people realized the severity of the problem, there's something deeply amiss in the system, you still would have had a good month afterwards >> you don't think it exacerbated the crisis >> it might have, but it would happen anyway. >> the next day, aig was being saved. was that the right decision? >> i think the way i kind of look at this is a little different which is they did the right thing to do a lot of

different things to try to fix the problem for the average american you can say was that right, was that right, what was right, they kept doing it. you might have said i would do it differently or do this, i don't think that was going to stop the crisis. >> watch that documentary wednesday, 10:00 p.m. eastern and pacific. "crisis on wall street." the week that shook the world. brings to mind an op-ed written by bernanke and paulson and say the enemy is for getting, loaded with other lines congress is taking away tools that might help fight the next crisis. >> they want that ammunition to fight it different ways. i don't think the risk is that we have forgotten. >> stock exchange were already

in a bear market if you put yourself in the shoes of an investor that friday in '08, bank stocks cut in half, it looked ugly put headlines -- you have reason to say maybe a lot of bad news is in. not so much. down 40% in six months that was liquidation phase of the panic after that today, ten year return along with historical average. 11% return for s&p 500 for the first three years, didn't feel that smart you were underwater. bonds were doing better than stocks. >> over that period, 130% higher on the s&p 500 >> exactly 1250 on the s & p, 130%, wrote it down below 700 in six months. >> unbelievable. i think today is the day where lehman had a q3 earnings surprise, $3.9 billion loss,

started announcing for buyers of assets. >> that friday in "the wall street journal," washington mutual says it has liquidity and capital to survive there was a lot of noise and you couldn't take it on face value because washington mutual in the end did not. >> we'll see you on power lunch today? >> yes. >> and then on fast? >> yes. >> any prime time dockets tonight? >> not tonight i will wish you a happy birthday, carl >> thank you very much see you later. the dow is up 35 points. s & p up almost 10 a t relomo to come with "squawk alley" in a couple of minutes. don't go away. making my dreams a reality

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good monday morning. welcome to "squawk alley." i am carl quintanilla with morgan brennan, jon fortt. the fall of an american icon, les moonves is out after a number of new allegations of sexual misconduct. and it marks the first fortune 500 ceo to leave as a result of the me too movement. jane wells joinls s us with more details. >> reporter: moonves is out, half the board is replaced now what will moonves get any severance which could be as reported $120 million. 20 million is being given to a group or groups supporting women in the workplace if the company's outside investigations find he violated cbs policies, even if some alleged events happened years before he was at the network, he could walk away with