today? i don't know it may take an act of congress to get you a little more leg room on commercial flights. can you believe that we'll tell you how to make air travel a little less stressful on monday, september 24th, 2018. "squawk box" begins right now. ♪ ♪ live from new york where business never sleeps, this is "squawk box. ♪ ♪ good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at the u.s. equity futures under a little pressure. dow futures are down by 65 points last week it was up 2.3% s&p had a strong week. now it's indicated down by 7 points the nasdaq indicated down by 41.

it was weaker. it was down by .3 of a percent this is all coming on the day that the trade tariffs actually kick into effect $200 billion in tariffs placed on chinese goods $60 billion placed on u.s. manufacturing goods. talk more about this in a little bit. again, this is something the market has really shrugged off at this point. overnight in asia, markets in japan and shanghai were closed for what's called the holidays the hang seng was down by 1.6% in europe where you do see some early trading for all of these things, you're going to see across the board red arrows. looks like the biggest decliner is italy down .8 of a percent. the major in three major markets of france, germany and england are down anywhere from 1/4 to 1/3 of a percentage point treasury yields which ended firmly for the ten year, the ten year yielding even higher, 3.085%. >> that was a high where we closed on friday. >> it was.

>> so 62 points off the high is crazy. yes, 62 points that was thursday. that was the big day that put us to new highs. >> right. >> friday was up another 85. >> right okay got it got it good. >> in the meantime, markets under a little pressure. we'll see if that lasts. latest round targeting chinese goods. the trade war is escalating. the trump administration imposing a 10% tariff on 2.1 billion of goods chinese retaliating on $60 billion worth of goods hours after it kicked in chinese media said beijing would be willing to return to the negotiation table if discussions were based on what they described as mutual respect and equality we'll see if they get back to that number. in other news, barrick gold buying randgold.

it creates the world's largest gold producer. shares of both companies higher now. tiger woods cruised to his 80th pga victory he had to grind his way around i think he was one over by the day but he won by two strokes capping an historic comeback four surgeries also the scandal, which seems like a long time ago at this point. he birdied the first hole on sunday and never let anyone get closer than two shots. he captured the 2018 tour championship tiger's first pga tour victory in five years and wood now trails sam snead he has stated that he won't consider himself being -- he was

on our show last week. he doesn't think he's totally back until he wins major i've never seen tiger so emotional and tears in his ice, i guess. but he did have tears in his eyes you want to see sportsmanship? i'm not going to mention other sports, but watching tiger talk about justin rose and watching justin rose talk about tiger. >> he talked about justin rose and justin rose spent his time talking about tiger. >> i think tiger was 12 under and rosie, who i love, was 9 under and it became clear that -- pretty soon that justin was not going to catch tiger. >> plan b kicked in. >> he did. and he knew exactly what he needed to do there was a lot, you saw all the six check marks that had to happen for the person to win the fedex cup and it came down to 18 tiger -- justin rose -- tiger won by one stroke.

>> controlled it. >> he hit a 360 yard drive but it just barely went into the -- got a bad lie it was in the rough. he hit some 7 iron that had a good bounce. i didn't think it was a lucky bounce it was headed forward and it put it on a par 5 and he putted for a birdie to win. if he hadn't got the birdie -- >> so now everybody is on their way to paris. >> they have the ryder company with them? >> in their possession on the way over there think about that, all of these guys, you know, all friends and justin -- all those guys on the same plane, charter plane. jordan spieth met him in atlanta because he didn't make the top 30 they say they may hit a few balls. it's friday, golf k457b8 and then nbc. >> you couldn't have a better

setup. >> no, not after this. >> great american team and european team. rory going to the other side and justin, too. >> justin rose >> going over to the other side. 2:00 a.m. on the golf channel on friday only one day where we would have to worry about competing but we're competing with ourselves >> that's right. >> saturday you have to get up really early because it starts at 3:00 a.m. and goes to 1:00 p.m. and sunday 6:00 a.m. to 1:00 p.m. it will reair later. this will be a great ryder cup we haven't won on foreign soil since 1993 25 years we have possession of it. >> like in college, they're chanting constantly.

>> other fake news we want on. let's talk about our top corporate story this morning, comcast outbidding fox for broadcaster sky in a deal that is going to reshape the european television landscape sky shares are sharply higher. cnbc's reporter jeff cutmore is live for this. >> reporter: good morning, becky. this has been a thriller for the last several months. they've been making bid and counter bid. the regulators in the u.k. said, you know what, we need to bring this to a stop to bring some certainty for shareholders and, indeed, for employees and for the management

ultimately what they said they would do is go to a sudden death bid process for 24 hours they are held up at buckingham palace offering bid after bid. three rounds of bids all said and done about 7:00 p.m. u.k. time or saturday we're coming through with 17 pounds 28 pence which values this company at around 39 billion u.s. dollars or 30 billion pounds now that is a tremendous premium to where sky was trading at its undisturbed share price. it's in excess of a 70% premium. you can imagine the managers and staff here that are on the share scheme are very happy about the price that's been achieved but there are some complications still. rupert mourdock has this 39% stake. we haven't heard yet what they're going to do with that. we understand comcast is in the

market mopping up some of these shares there is the other issue of hulu, the streaming service, which these three companies all have a stake in. there's still some unfinished business in terms of the pro celebrity death match, brian roberts wins. comcast takes sky at 17 pounds 28 p, guys >> jim cutmore joining us. we're going to talk about this probably a little bit more today, jeff. thanks for that report larry haverty joining us larry, you concede this is a rich price i think you've -- you thought maybe we'd see a 5% drop in the shares of comcast today often which you say you would buy on any dip? >> yeah, i think so. if you look at the history of comcast, joe, they've understood

two things and sky has really understood two things and they've been the same thing. one is the power of sports and two is the use of leverage so let's take leverage first we're in an environment where rates are very, very low comcast has grown consistently by acquisitions, not the least of which is nbc universal, and they've always used leverage the relationships here are ver comfortable, the rates are low the cash flow coverage of interest is going to be good the leverage is not really a question that the management is confident in that. the other thing is sports. comcast has understood sports. brian's been interested in ownership of sports for decades now.

sky has understood and they got out of the problems was the acquisition of the premier league i think comcast is going to be able to take those rights and possibly do something with them. you have the sports. sky itself when i got into it, joe, it's hard to believe it was losing 4 million pounds a week now it trades for multiple of over 2 billion pounds, i think, cash flow. that's pretty generous it's very clear the price controls the market. everybody realizes this. >> had a great year, correct >> cash flow -- >> 39% in customer growth. earnings per share does it matter if it's a creative in cash flow? is that a real number? >> i think it's a creed for free cash flow, joe, because in the

satellite business your cap exare lumpy and they're not in the business of buying the satellites, but, you know, i think the other thing that's going on is they're buying pounds at a very attractive level. >> right. >> the u.k., ireland, scotland economy looks great. apple and google are going to be investing capital. they have very, very competitive insulation there i spent a couple of weeks over in ireland and scotland and the satellite dishes are managed. very clever producing content. so if the stock goes down, then you buy it. >> larry, is there any risk that disney doesn't tender into this offer and does it matter >> i think the only reason disney doesn't tender into the offer is that they think the appreciation will over time be

good and that they can sell it later at a higher price. >> in which case comcast gets to pay half and still control the assets that could in a very strange way be a better utcome, at least temporarily? what you would you prefer? >> i'm a tax flow guy. owning 39%, you don't own the cash flow. that's what this is all about. rupert wanted to buy all of sky and the regulators wouldn't let him. i think disney is not in a position where they need cash flow the market will realize this is a great deal it has a lot of scarcity value there aren't companies in this capitalization laying around waiting to be acquired this may be the last girl at the dance, if you will. >> hey, larry, we just looked at

comcast shares, they're down a couple of percent this morning you said you expected that, you anticipated that you say a lot of the short-term critics have been shortsighted and wrong in the past. what do you think happens here >> i think it's the -- i think it's the same thing, becky i'm more confident about that than i would have been in the past because i just think that the sky management team is the best they have technological developments they have been very close to or at the top level of technology in the paid tv benefits. they've benefitted from the productivity in the satellites they're sitting in what i think is an economy whose strength is very, very unestimated by u.s. investors. so i don't see anything for brian but up side here in the

currency, the perception the thing that you can take to the bank is sports over time are going to be enormously valuable and sports rights as well. >> something that i think doesn't get enough attention, i'm curious if you think actually there's real revenue that could be generated, actually how much of the nbc universal content can ultimately get pumped over the sky distribution platform given that, frankly, i don't believe -- i hate to say it, this network, for example, is running over sky right now >> i think the answer to that is a lot. over time, andrew, the capacity of the sky network has grown i think when i got into it they had maybe eight channels and now i'm sure it's in the over 100 although i haven't looked at what the typical sky customer

can access i think that's a minor part of the game i think what is going to be powering this thing is, one, the strength of the u.k. economy and the fact that i think the pound is way more depressed than it should be because of what i think one way or another is a brexit situation that's going to get resolved four, if what you say there's much potential, i think that's a bonus round. sky has always been pretty good at procuring rights. they have a lot of american tv rights that are available. >> you're not locked in an 8x10 cell in davos watching "law and order" reruns in german. we just got our invite to go

back we're headed days trying to figure out in german whether someone's guilty or -- i could use -- >> will our programming be over there now? >> what i'm saying, will it be there? >> davos, i don't think we're -- i think that's actually -- >> i think that's hotel davos. >> there's a lot of sky stuff. >> yes, but i think that that -- >> i'll carry your golf bag, joe. i think that's running over a malone cable network. >> i have to talk to him >> yeah. >> so it's not going to help me in terms of -- >> yeah. andrew doesn't even -- do you even see the inside of your hotel room when you are there? you are the bell of the balance -- -- ball -- i've got people to see. >> panels to do. caviar to see. davos fans it's like chromagnon man davos man. >>neanderthal.

>> larry, you've met him. >> thanks, joe. >> only 2.5% do you think we see 5% down at some point to buy? it's acting better than what you thought at this point. i wonder if we see -- >> do you wait to buy or would you go ahead at this point, one where we're thoroughly involved to all of the players -- i think incrementally you can anybody in here it's doing a little better than i thought but i think the comcast people are a lot more clever than the initial trading indicates. history says that's the case. >> it's different shareholders anybody that didn't want to be a part got washed out. >> the most clever part in my mind buy four things disney to pay off fox. >> they basically were in no position to really channel it.

>> that's where they came in early on >> you do have the situation, joe, where it's a controlled corporation. disney is not. brian basically is responsible to brian although he has a quality board with him ig iger, got into the situation and the multiples are high there will be questioning perhaps. >> he has a lot of my money. he's a good shepherd -- i'm okay with him managing these assets i've given him the total go ahead. >> it's not just the board he has a strong team. >> cavanaugh is there. >> how about you, andrew, are you good >> long term i think it's going to be a good deal. >> yeah. i mean, you wanted comcast -- >> i was glad.

i was thrilled when they won. when we come back this morning, stocks under pressure we're going to talk about the big potential market movers this week including gdp data and a fed meeting that's taking place. programming note, jim cramer will be speaking to jpmorgan ceo jamie dimon today. you can catch that at 11:00 a.m. eastern and more at 6:00 p.m. on "mad money." let's take a few looks at winners and losers merk is up leading by 2.5%

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welcome back to "squawk box. on this week's squawk planner the fed taking center stage kicking off a two day meeting tomorrow widely expected to announce an interest rate hike and then on the data front,

we'll get to the home prices and august numbers on home sales on thursday we get numbers on jobless claims, august durable goods and third read on second quarter gdp. friday we get personal income and spending numbers for august. a lot of data to chew on. the week ahead and what it means for the markets is bruise casman he's with jpmorga.p. morgan chae craig mancha is at oster weis capital management thank you for being here today we are talking about the trade tariffs going into effect today and the market has basically shrugged all of this off to this point looking at new highs set just last week for the dow and the s&p 500. what do you think is really going on here, craig does this matter or are we just watching the strong economy and everything else that's happening with earnings? >> i think the trade tariffs, you know, they matter but for where we invest, we focus on

what's happening with mostly domestic businesses. we're largely invested in the credit markets and mostly in the high yield credit markets. a number of our companies are domestic businesses and they're not as negatively impacted by what's going on with the trade tariffs. >> what will happen if the fed raises rates will that impact that market >> it does but it depends. in the high yield market because coupons are so much higher than they are in the investment grade markets, they're much less directly interest rate sensitive. so what we tend to see and what we focus on more are the impacts that the rising rates are going to have on the economy how long will it take to slow the economy down for right now the economy looks like it has a lot of momentum. bodies in motion tend to stay in motion we think the economy will do well and it should be a good market for high yield in general but there are pockets of high yield that are problematic and we start to see things percolating and it was just recently there was a deal that

came last week, the refinitive deal, the thompson/reuters deal where we saw aggressive pricing and asks from the financial sponsors the sponsors are really pushing the envelope i think that's the risky part of the high yield market. there are some really attractive parts of high yield. public companies, smaller companies. >> what do they push exactly the blackstone transaction >> yeah. you know, there are a couple of things first thing they pushed was they asked investors to take all of the cost saves that they expected to realize over the next five years and give them credit for it today. that just can't happen you know, if they realize them, great. but you can't give them credit for that up front. the second thing they did is they have a very aggressive dividend policy. one of the things that the high yield investors require are protection against sponsors and things like that ripping a lot of the dividends and equity out from underneath them

in both of those cases we're starting to see sponsors push the limit of what the market will bear and the market structure -- >> it sounds like the market did bear it. >> part of the reason is the market structure is set up so the preponderance of investors in high dwreeyield are benchmar high trade whether they like it or not, people have to buy it. one of the things we do, in our fund we are non-index based. we tend to invest away from those types of deals because we think they're particularly risky. >> let's take a step back and talk more broadly what the fed does this week it's baked in that they're going to raise rates what else should we be looking for? what else should we anticipate from here and beyond >> this is going to be a boring fed meeting in terms of the rates and the forecast, the dots they're not going to change much as all they're going to take out the accommodative language they're not going to describe policy from being neutral.

from our point of view, that doesn't mean they're going to be close to being done. they're going to keep in the language saying they have gradual rate hikes to come what they're doing more, i think you'll see this in the way powell talks to us is they're no longer comfortable describing policy stances and they are no longer comfortable using this our star conversation that was so prevalent in janet yellen's time. >> meaning we are talking about the data coming in, going to be very dependent on what they see. do you think the fed's policy matches up with what they should be doing >> oh, i think for sure. i think you could be arguing they should be doing more given how strong the economy is, how tight labor markets have come. i think the interesting question in the global economy that relates to tariffs is we have the u.s. doing really well here. we have a lot of question marks about what's happening abroad. 10% tariff isn't going to do much damage. we have the issue of where that's heading, we have the issue of the chinese economy, nafta negotiations which we should be watching if we don't get agreement by

canada, it's going to be hard to get a deal before the end of the year there are a bunch of issues still playing out here, most of which have to do either with trade or with what's happening outside of the u.s. >> given all of that, what would you say? what are you anticipating for gdp for the rest of this year and next year? >> we think gdp is going to run 3% in the second half of the year that's not as good as the second quarter which will get revised up to 4.4 this week. the economy is going to do fine. we think the effects of fiscal policy starting to fade in its stimulus and fed hikes begins to gradually slow things down the question is whether the global back drop will be solid enough to sustain the still solid performance but not nearly as boomy. >> the second question is cap exspending is that enough to power through? >> we'll have two reports. we'll see the advanced reading on capital goods imports i think this is where the action

lies now is the effect of potential perspective tariffs is what's happening outside of the u.s. as the dollars rise, is it beginning to sap into business expectations right now the evidence suggests not. this is really, i think, if we want to watch the u.s. economy right now from a point of view of what might happen that surprises us, that's where wee want to look. >> thank you very much, gentlemen. coming up, president trump heading to new york. stay away from the east side to address the u.n. general assembly we're going to talk to. >> fred: kemp from the atlantic conference here's a look at yesterday's winners and losers shouldn't be any because it was sunday obvious.

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♪ welcome to new york, it's bee waiting for you ♪ welcome back you're watching "squawk box," live from the nasdaq market site in times square. good morning welcome back to "squawk box" right here on cnbc among the stories front and center, big news over the weekend, comcast, parent company of this network, outbidding fox for british broadcaster sky with a $40 billion offer. sky is recommending shareholders accept the bid sky's stock is soaring in london trading trading near comcast offer of 17 pounds 28 pence a

sha share. got about a week or two for everybody to effectively tender into that offer. the big question is whether fox will tender into that offer with disney comcast shares down a little over 2%. latest round of tariffs in china have taken effect today as this escalates trump imposing 10% for $2 million worth of chinese goods in retaliation beijing taxing 5200 imports worth about $60 billion. barrick gold reaching a deal to buy rival randgold. that worth $18 billion barrick will own 2/3 of the company which will have a dominant position in africa. shares of barrick gold and randgold trading higher. take a look at u.s. equity futures on this hour a little bit of pressure after

dow ending at the highest level on friday. it was only a year ago that president trump blasted kim jong-un calling him a rocket man on a suicide mission the president returns to the u.n. this week eamon javers is getting ready to leave washington for new york. a lot of different situations this time around. >> yeah, becky, that's right the president is waking up in new york city this week where he'll be for a couple of days at the u.n. general assembly starting this morning. the president facing some significant political pressure at home. at the u.n. he'll be focusing on foreign policy, north korea, iran, russia many touchy issues to deal with in new york city some political pressure on brett kavanaugh, his supreme court nominee. also the administration here dealing with fallout from the report disputed in "the new york times" over the weekend that

alleged that rod rosenstein, the number two official at the department of justice, had discussed the 25th amendment, that is the possibility of removing the president from office some of the president's cabinet members and high ranking advisors were on television over the weekend to dispute that and to give their reaction to it, including mike pompeo and nicki hailie here's what they said. >> i've been pretty clear since my beginning of service here in this administration, if you can't be on the team, if you're not supporting this mission, then maybe you just ought to find something else to do. >> i have never been part of it. i've never heard it. i don't think that's the reality at all among all of the cabinet members. i've just never heard that that's absurd. >> the administration officials pushing back on the idea that anyone discussed the 25th amendment in any serious way inside the administration. now the president turns his focus to foreign policy, as we say. the big question going into this week is whether or not the president will have a meeting

with the leader of iran. that's something that could be set up later this week if the iranians schedule it, nicki hailie said last week. it could be another big diplomatic set piece. >> eamon, thank you very much. for more on the president's big speech tomorrow, let's bring in fred kemp cnbc contributor fred, thanks for joining us. so, i mean, there's a wall for us right over here i think nobody is going near the east side that's how it affects me, joe kernen what do you expect to happen when we look back on it on friday, what will we -- oh, my god, do you believe that that was discussed? what do you think the biggest thing is going to be >> i am going to go to the east side. >> you're going over there >> are you walking >> walk everywhere. >> that's the only way to do it. >> so last year even though one talks about rocket man, suicide, the president actually rounded the edges of america first last year he got relatively good marks for

his speech this year i find people are going to listen to the speech, it will be on nonproliferation he'll be talking about iran, north korea, syria they're much more nervous about what's in the background the unturn at this, uneasiness i've never felt this thing at the u.n. before at this level -- >> wait, whose nervousness >> world leaders there are more than 120 world leaders here your markets are up. i think the markets are kidding themselves in one sense. certainly unemployment looks good, growth looks good, all of that, but i think people are saying you can't separate geo politics from trade tension and particularly looking at china right now, there's an assumption i think in the markets that all of this will be de-escalated and maybe you'll even get better trade terms with china and everything will turn out just right. people are starting to look at china feeling first of all this isn't just about trade and a deal they feel president trump is trying to bring him down a few

notches. second of all, they have a whole narrative of foreign humiliation. don't forget the opium wars in the early 19th century were about the british east india organization trading opium to close a trade gap that leads to conflict >> fred, i think it depends on who you're talking to in some of these situations i can understand chinese officials feeling that way i've heard from top level officials who say, look, the chinese are achieving on these things they've never been good trade partners we'd like to get on board and face a united front against the chinese. we'd be on board with signing up for some of these things if we can get other issues on the way. >> i think that's absolutely right. what they would like the u.s. to do is clean up nafta, join the trans-pacific partnership and not try to have trade war on different fronts but really ally but what they worry is that the chinese at some point, president

xi will have to respond in ways that aren't economic how do you push this to get a better trade deal without getting in a situation where he -- we just had a delegation in taiwan and they say that every time the u.s. rachets up on trade. >> why have we not heard the chinese say, for example, we may or may not show ep at the next treasury auction >> because they'll be shooting themselves, too. >> would they be shooting them sefs once or twice just to prove the point? >> well, i'll tell you what we're seeing unfold and this is why -- >> i'm not saying dump all of their stuff. secretary mattis is right. we're in an era of new major competition. the chinese want to displace us, the russians want to disrupt us and we're uncertain how we want to play it the chinese are going to play this out over time they're going to take advantage

where they can, africa, latin america, elsewhere they're going to be patient on this but i think anyone who thinks they're going to respond only in trade terms or only in economic terms doesn't understand that we are now in a contest, maybe it goes too far for world domination, but certainly it's a competition for who is going to be dominant. >> just talk iran quickly. who do you think iran was referring to that one of our friends, one of our allies were responsible for for what happened at that do you think for once they're not talking about israel, they're talking about -- >> yeah, but i tell you it points to uncertainty. so last week -- >> who do you think they were talking about? saudi arabia who were they talking about? >> they usually are talking about israel. >> i don't -- >> then they could -- >> you said giuliani said we're trying for regime change, nikki hailie said we're not trying torey geem change. if we're talking geo politics at

the u.n., i want to talk things like this. >> look, you have uncertainties and volatility in geographic locations all over the place you have china we talked about china. >> where you have less worries than the last year we were saying rocket man, suicide mission, this year talking about another meeting. >> i think they're going to be -- i think it's going to be rachetting up on iran. abe, the japanese leader, is meeting with a ran this week he's sending the message i need to hedge my bets a little bit. then you have a european story you have brexit, a debt laidened italy so i think the feeling of uneasiness they talk about uncertainty being something you can't measure while risk is something you can measure. i think we're getting what's called nitean uncertainty whether it's hard to measure where this uncertainty is going to come from everybody is a little bit nervous. >> phil knight. >> frank knight. >> famous nike economist

>> distant cousin. >> yeah, okay. >> fred kemp atlantic president. coming up when we return, the race for artificial intelligence talking about china to win a race that most people didn't realize it was a race we were in we'll explain. much more on the big story, comcast won the bid for itbrish sky. stay tuned, you're watching "squawk" here on cnbc.

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welcome back to "squawk box. time now for the executive edge. listen up business travelers airline passengers could get a break from ever shrinking leg room the u.s. house expected to take up legislation that would require the federal aviation administration to set new minimum requirements for seat width and leg room on airplanes. it's part of a bipartisan bill announced by house and senate on saturday legislation would prohibit involuntary bumping of passengers who have already boarded a flight the legislation did not propose any measures for baggage fees and change fees. i'm mixed on this news as a customer i think i like it but i wonder whether prices will

go up. >> how do they outlaw involuntary bumping? >> if you're already on a plane. >> bumping, as i'm getting jostled because you're in the front of the plane. >> i'm often in the back of the plane in the middle seat. >> not unless they move first class to the back. >> people are walking by and they've got all of the carry on stuff that's constantly, right an aisle seat is no good, it really not. >> as a free marketeer how do you feel about them requiring -- >> things have gone so far. >> -- leg room. >> the entire world is topsy-turvy, andrew. i'm not sure how i field fair is foul, foul is fair you're for not doing it? you're for less regulation >> i don't know if i -- i don't know if i want to regulate the actual -- well, it depends. >> it's a safety feature i'm sorry, at some point it's a safety issue because you can't get out of these. >> for a safety basis i'd do it. when we come back, in the

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welcome back to "squawk box. china might be winning a war

that few people know we're fighting the race for artificial intelligence our next guest thinks china has the tools and capabilities needed to catapult itself ahead of the united states joining us this morning is kai-fu lee he is theauthor of the new booki superpowers. thank you and congratulations on the book >> thank you i don't know when we last saw you, but we were having a debate about where the u.s. was i think that's where we left off. which is how far is china away from catapulting itself away from the u.s.? >> well, if you measure by research, basic research papers, u.s. is and will be ahead for the next decade. but if you measure it by value created, how much market capitalization, how many users, how much revenue, china is probably already ahead >> why is that >> well, china has a very large market which means a lot of data and ai, it's data.

in the age of ai, data is the new oil, so china is the new saudi arabia >> simply because of they have more people? >> more people and also your payment is all captured. everything you pay is by mobile phone. >> in this book, though, you talk often about the idea of the chinese historically being copycats of the u.s. >> right >> have they now reached a point where it's no longer about being a copycat? >> that's right. i think the chinese culture is not -- does not frown upon copying as does silicon valley chinese entrepreneurs now will do whatever it takes to make their product successful >> that's a really nice way of putting it they don't frown upon copying. >> however, if you look at the chinese innovations, the chinese software that's now being copied from china, i was counting the top ten companies. they're worth about $400 billion. and these are not necessarily ai

companies, but if you measure the ai companies, just our investments, our top five ai companies are valued at about $23 billion u.s. >> obviously we are in potentially a trade war right now between the u.s. and china as well. and i'm curious as someone who worked at google and by the way, speculation google might try to enter china again. how you think about the technology companies doing business in china and some of these chinese businesses doing business here? >> i think both nearly impossible >> impossible? >> not because of the trade war though i think the trade war is the trade war. it puts a tax on doing business. what has happened in china is there's now a completely parallel universe of software people use, brands people trust, product quality that has emerges due to large amount of data and ai so just as google, facebook, amazon are now really not challengeable in the u.s., neither are the chinese

companies. so we're going to have two parallel universes with independent -- >> but it sounds like they're never going to compete why should we worry about this >> i know. i'm not. none of our investments, our companies at all are dependent on this trade war. nor are the investors in google, amazon, american start-ups i think the trade war is not about tech, per se >> okay. kai-fu lee, thank you for coming in this morning. the book "ai superpowers." it is worth a read if you're interested in this topic >> thank you coming up, comcast got the sky high bid we'll talk about the implications for the media world and for comcast. that's next. then later, weight watchers rebranding itself as double "w." mp're going to talk about the coany's new name and new mission with ceo mindy grossman.

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comcast pie in the sky cnbc parent company outbidding fox for the british broadcaster. details and street reaction straight ahead the trade war with china ratcheting up. $200 billion in goods with a 10% tariff starting today. a look at how the auto sector could be affected straight ahead. and tiger is back. >> we thought we'd never see it. >> woods wins his first tournament since 2016. next stop, the ryder cup "squawk box" begins right now. ♪

good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. take a look at the u.s. equity futures this morning dow futures down by about 50 points that's less than we saw an hour ago at this time s&p futures also down by five. the nasdaq off by 37 it was a big week both for the dow and the s&p 500. both of them setting new highs last week. nasdaq was the underperformer. we'll keep an eye on this this morning as the dow futures coming off of a high that they set on friday. trade tensions kicking up a notch. new u.s. tariffs have taken effect today on $200 billion in chinese imports. retaliatory tariffs by china have also been imposed we'll have more on this story in just a few minutes

and a big deal announced this morning in the gold mining industry barrick gold is buyed randgold resources. the combined company will be worth about $18 billion. and two well known luxury companies may be joining forces. michael kors will soon announce a deal to take control of versace. private equity firm blackstone took a stake in versace in tr204 but would exit the company after this deal. we got some news that we should say sirius buying pandora right now. let's show you the news. interestingly enough, we should mention sirius tried to buy pandora back in 2017 sirius made an investment in the company. this is an all stock deal. we'll get you caught up in a just a moment with all of the details. >> $3.5 billion. >> but it is going to move

markets this morning and get people thinking a lot about music and music streaming and what it means and where apple music and spotify and everybody lands. you're looking at sirius, by the way -- >> new shares for each share of sirius what does that mean for my sirius xm? >> this is going to put sirius in the streaming business in a much more meaningful way it could also give sirius another form of distribution, if you will also then, of course, puts some pressure on spotify. where does apple music land in this it creates new questions about the music business especially as you see others jumping into that space. >> all right and the other -- it was our parent comcast buying sky.

valuing sky at $40 billion it followed a fierce battle between media giants we are joined from outside sky headquarters with a lot of people over there. they're like, they can't believe how much money they got for their shares a lot of the sky employees are happy, i'd say have you noticed that? >> reporter: oh, absolutely. they're all smiling as they walk in here. especially the ones that got on board the share scheme because the managers and will benefit from the price 17 pounds is something like a 70% premium to where the share price was trading before this auction process began. so they'll be pretty happy about the decision let me tell you what they're buying here.

rupert murdoch set up sky back in the late '80s joe, you'll remember that big frank bruno/mike tyson fight back in 1996 well, that was the first time that we had pay per view here in n innovative media and communications company. and in many ways, it looks like a european version of comcast with pay per view and other communications and entertainment businesses they're in vod, they've got new sky boxes that allow you to record and to fast forward through programming. so in a sense, it's very similar to what comcast is and comcast will recognize the model here and comcast acquires 23 million viewers around europe now through this deal. but the question still seems to

be are they overpaying for this? becau because all the analysts were saying on a dcf model, you couldn't make sky worth more than 17 pounds in fact, most of them were some way below that sort of 16 pounds and change but this unique auction process had comcast competing with rupert murdoch and fox to try and nail down finally. this bid process had run on for too long the question is then wh they will have paid too much here it's down to obviously brian roberts and his team to try and figure out how that extract value. the one thing it does do, though, it gives them premium league soccer rights that's what sky has. and it also means comcast gets

to dramatically raise its content outside of the united states i think this now takes the business from something like 9% outside the u.s. to 20%. so if the u.s. economy ever starts slowing down, this is some diversification but again, all roads lead back to the price back to you. >> okay. jeff, thank you for that joining us now for a deeper dive into this weekend's major media deal, we've got brett harris and also have michael nathanson. we also have craig moffett you guys know each other. >> yeah. we've met. >> just want to make sure. i'm going to start with use because you're to my right what do you think? >> i'm happy i feared disney overpaying for this asset and had to do what craig did today. and downgrade. >> your suggestion now is they're overpaying

>> yes >> this asset was worth about 7 pounds 67 before the first fox bid put it into play comcast is paying a 125% premium and double the multiple that the market thought it was worth a little over a year ago that's going to be a tough thing. comcast cable is still the core of the business and it still looks reasonably cheap but it looks less cheap now by virtue of overpaying for this asset. unfortunately you now have this discount we downgraded to neutral this morning. >> we lowered the price target to $36 it's trading around what i think the market will say is fair value. >> five yearsfrom now -- and i remember, by the way, when comcast bought at&t cable and people thought they overpaid six months later enron went bankrupt and ten years later we would say

that actually was probably the best thing that company did. you may disagree i don't know >> comcast has a history of some very good deals. so i wouldn't dispute that at all. the problem is, so, in the comcast -- >> did you like any of those deals before they were done? >> yes i liked the nbc deal even though we scratched our heads over it you acknowledge at the time you were buying it for a low price at the trough o of the market where here they're buying it at a high price -- >> where do you land >> going back to the valuation point, comcast paying something like 16 times ebitda at&t bought directv for 18 times ebit ebitda we were talking about this in the green room that perhaps the traditional satellite player would be worth less. that being said, sky is a little bit of a different business because of the common carrier. they do have two-way access through the broad band which

makes it a little less risky. >> can i ask you all this question though. all of you are anxious at minimum about how much is being paid here. the alternative which is to say that sky arguably -- and there's very few assets like sky that would actually put you in an international place if you wanted to be in an international business >> i think that's the fundamental question, right? and more importantly as an investor, do you want comcast reinvesting in an international business rather than buying back their own stock? this turns out to be a creative. if they would have used the same amount of money and bought back stock, it would have been about seven or eight teams so what the market is frustrated with is this is really a diversification move, and now play this out a little bit right? what are they going to do with this they're going to have to

significantly invest in proprietary content for the eventual loss of things like business and showtime and things that go direct to consumer they've got to do the same pivot that netflix does. this will be by more spending to ramp production. in order to create -- >> because they're going to have to create their own netflix long-term. >> and then the question is, so netflix doesn't make money the question is are they going to get anything like a netflix valuation for something -- >> you don't need a netflix valuation though >> but is the market going to embrace the idea that, okay, you've created a large potentially money-losing business and you've got to outrun secular decline in a satellite business you just paid 15.5 times for >> one of the things we were afraid of disney doing, is they had an over the top strategy by buying a satellite company, we saw it at odds with their strategy their story is cleaner because of that. what comcast is going to have to invest in both traditional and new distribution, that's

conflicting for customers. >> on disney and also there's this hulu piece still lying out there. there's speculation. two things "a," does disney/fox effectively tender into this let's start there. >> before they tendered, they said ryan roberts will tender but we want to make a trade. >> you think there's a swap for hulu >> i think that's the first thing they're thinking. >> what leverage do they have to even force the sale of hulu? i would argue that basically you either tender in at this higher price or you get to sit around at a much lower price and go, what are you doing >> i would just point out that disney traditionally doesn't have a tremendous amount of leverage rights. >> i've heard this hulu swap idea -- >> here's why. you can't -- comcast will consolidate 61% of it. but can they cut costs the way

they want to because of a minority partner can they do transfers of value between nbc and sky? having 39% watch your business and block things is not good >> no, no. disney is not in a position to sit around and play that game. t and the shalreholders are sayig you're just going to watch this play out just to be a spoiler? i'm not sure they'd take that gamble >> you could say the same thing about comcast. comcast has -- they want to delever from -- they're not highly, highly levered after this transaction they've said they want to delever, so they will be looking for some kind of compensation to help delever and they would be in the same position which is now we have a minority stake in hulu we have no control >> let me ask one question there are people who have said because they want to diversify

and have what will essentially be 25% of the business international, that raises questions about the basic business if they put up strong earnings, does that go away at some point? between the two businesses >> i don't know how much that really was the reason that people sold the stock. it was a narrative that was around for awhile. and i don't think it was actually grounded, in fact, at all. i don't think brian roberts was sending any type of signal the last earnings was strong making a strong case for cable because of higher margins and lower capital intensity. but the way to express it partly because of today's move is a much cleaner story in charter. it's ironic because the cable business actually looks pretty good in the u.s. >> one more question for you if you see what's going to be happening with some of these numbers coming out, trying to gauge going forward, what would reassure people at some point? or what are we talking about in terms of the shareholder base?

we saw so many people that sold 1 this year.ck was down below who is the shareholders now? >> a lot of people have come back in out of the recognition and rightly so that comcast cable after it got so washed out with any reasonable value on the nbcu piece looked too cheap. so there were some saying this is attractive. remember, where it traded up to, almost $38, was almost by definition a weighted probability of whatever probability it was that they were going to lose the sky bid in which the stock would have traded higher. and whatever possibility it was they would win the sky bid >> there were rumors they'd go after discovery or somebody else >> when you -- did you -- the nbcu deal, you didn't see the logic inctive

diversification move, but that the synergy of -- by the way, there hasn't been synergy. >> but in terms of the deal itself, they probably got it at 40 cents on the dollar. >> they got it at a fantastically low price. >> any type of qualifications about that deal in hindsight -- >> i guess i could -- the thing i would quibble with is do you want zwediversification moves at all? buying an asset cheap is a good idea if you're running a company, there has to be a synergy argument otherwise they can diversify themselves the nbc case was unusual as you couldn't do it undermanaged, all those thingssituation. but what investors are frustrated with, this is the murdoch discount coming to comcast. >> $36 on comcast now as a

result of this you are where on disney? >> $135. >> and you are where on comcast and disney >> hold on disney. we have a buy on comcast we do like the fact that the implied valuation of the cable business even after this deal is substantially cheaper than charter. so we think the valuation offsets the capital location >> and therefore this would peg the stock price. >> i think we're $42 >> and you're not changing that? >> no. >> we'll leave the conversation there. it's an interesting one and a lot more to come appreciate it, guys. when we come back, autoparts suppliers are grappling with cost how the trade war is hitting the auto sector. we'll have that in a moment for you. meantime, take a look at the futures this morning dow down by 56 points. s&p looks like it would open down about 6.5 points and the

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welcome back to "squawk box. bit of news this morning in deal news we were just talking about the other big media deal but now shares of sirius xm

buying pandora keep an eye on these stocks this morning. pandora up about 10% on that news sirius xm buying pandora the deal is an all-stock deal. valuation is $3.5 billion. values at $10.14 a share the companies expect to close that transaction in the first quarter of 2019. we should note a couple of things though. there is a go shop transition of this meaning this could be a floor for the stock. the company will now have between 30 and 60 days to find another buyer. and that will give them some time to get a higher bid if one does come around in addition to that, it's worth noting that sirius tried to buy pandora in 2017. did make an investment, i believe, about $450 million back then so there has been some speculation that these two could combine at some point. >> would have been a better deal

back then? they were trading at -- >> where was pandora >> it was 12, 13, 10, 11, 9. not much lower than it is now. but it's been a question that's been out there for awhile. also the latest round of tariffs with china go in effect today. the autoparts suppliers are grappling with how to handle higher costs phil lebeau joins us with that story. >> i come with props includes g i -- including this snow brush here we'll talk about hope the price of this will go up we went to hopkins manufacturing in emporia, kansas we went there on friday. this is a facility there are five plants that hopkins has. they have a plant in china they have one in mexico. they have gotten one in emporia, kansas and basically the reason we went to these guys is because they're going to be hit by these latest rounds of tariffs because so many of the autoparts suppliers. these guys are supplying to the automotive aftermarket they get a lot of their

components and raw materials from chinese companies and when you look at the chinese autoparts, remember so much of what goes into our vehicles or what we buy for our vehicles is actually manufactured in china more than a thousand chinese companies export parts to the united states. imports, $10 billion in autoparts from china annually. and again, most of these will be hit by this latest round of tariffs that go into effect today. here's the ceo of hopkins talking about how much of an impact this round of tariffs will have on his business. >> everybody's concerned about the impact of the significant rise in costs to the consumer. certainly the first two rounds of tariffs were minimal impact to consumer. but the one that goes into effect on monday will have a significant impact and there's concern that it will dampen consumer demand for the products. >> at about $5 million, that's the act the expected hit hopkins expects to take once these tariffs go into effect

whether or not that leaves the job cuts, that remains to be seen look, the aftermarket, o'reilly's, autozone, they've been doing really well they were under pressure about a year ago because people said amazon is going to kill their business really people have take an step back and said that's not the case that's why these stobs have m -s have moved higher. i've got some props here this is a snow brush they make at hopkins right now it retails between $10 and $12. the expectation is the price will go up between $12 and $15 got another wash brush this is bigger, more expensive this goes for $19.99 in the store. they expect retailers will bump up the price to around $24, $25 for this finally there's a brake control unit this is if you have a trailer that's attached to your pickup truck, you put this on there, this helps with the braking on it retails for $100 the ceo of hopkins says i bet they're going to bump the price

on that up to $120 the prices are going to go up over time once these tariffs filter through the question is does that cause people to say, yeah, i'm going to hold off on buying that or maybe i will delay purchasing something like a brake pad for a couple of months because i don't want to pay a little more for that these are the concerns out there for the autoparts industry >> phil, thank you great to see you folks, let's take another look at pandora shares longer term andrew was explaining when they cam back after this in 2017, it would have been a better deal. that came around june? >> it was june 20. >> the stock at that point was around $6.99 >> just prior to that it hit what looked like a low around $7 then, of course, sirius came in with its offer they ultimately got this deal done or had an investment made at about $450 million. it popped the stock up there's been speculation the last two years about whether sirius would come back and there would be a transaction the other question is whether an

apple or somebody else or spotify might look at this and say i want a piece of this they do have a huge number of listeners. the question is what you can do with those listeners, whether you can put them into an additional paid product. given that's such a huge part of the business so there you have. it we'll talk a lot more about that in a bit. still to come on "squawk box," former nba star ray allen is here. we're going to talk the business of basketball and his drive to cure paralysis tiger is back after his surgeries. tethbrl bring you the details afr e eak. back in a moment

good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. among the stories front aeroscer today, dell technologies has met with bankers about a traditional ipo. earlier this year, dell announced plans to return to the public markets through the purchase of a tracking stock representing its investment in software maker vmware.

that plan, though, has run into opposition from major dell shareholders question is, is this just a head fake or are they really moving forward with this plan also gasoline prices have dropped 2 cents over the past two weeks. the average price is now $2.90. that is 28 cents higher than it was just a year ago. the house with the clock on its walls topped the weekend movie box office the movie adaptation of the children's book took in $18.6 million. that's better than analysts had been expecting and tiger woods won, finally, after five years. his 80th pga tour victory on sunday and it's really capped a historic and kind of a long time coming comeback from multiple career-threatening back injuries he birdied the first hole at

east lake golf club on sunday and no one ever really got closer than two shots. that's where it finished he finished at 11 under. that was 1 over for the day. someone -- i think rickie fowler shot 65 yesterday, but he wasn't close enough so he was catchable. because there are some other players -- he started the day at 12 under and both rory and justin rose were at 9 under three shots back but then tiger might have played differently. because he was playing pretty conservatively anyway. it's tiger's first pga tour victory in more than five years. and woods now trailed sam sneed only by two for the most pga victories in history tiger has stated he's not completely back until he wins a major. >> but he looked good. >> and if you had to win just a regular pga tournament, the last one and it's the last playoff

with the fedex cup it's the 30 top -- just to get into this tournament, you had to be in the top 30 >> and the crowds following him as he came down the 18th, it was unbelievable >> tiger was funny they asked him what were you thinking the feeling when you're walking down 18th with the crowd behind you, what were you thinking? he goes, i don't want to get trampled. >> could you imagine trying to there >> and a lot of -- >> rose even had to admit, i know everybody was rooting for one guy today. >> and rose is in his 30s. but you think tiger's 42 so look at these guys that are 23 and 24. they literally were in front of tv sets when they were 12 watching tiger win all of his majors now they're out watching him back to top form we'll see. when we come back this morning, former nba star and new hall of famer ray allen is going

to join us to talk about the fight to end paralysis he is our guest in just a few minutes. up next, though, brian sullivan sitting down with the ceo of saudi aramco we have highlights of that interview next right now as we head to a break, take a look at u.s. equity futures. the s&p down by seven. the nasdaq off by 45 "squawbo wl rhtack x"ilbeig bk. ] adults are just kids with much, much better toys. [ giggling ] introducing the 2018 c-class sedan, coupe and cabriolet. the thrills keep getting better. lease the c300 sedan for $399 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

. comcast deal for sky is proving to be a dream trade for hedge funds. leslie picker joins us now with that story >> hey, joe. thaerg that's right comcast's winning bid will be a boom for prominent hedge funds over the last year, sky has surged 86% as investors wagered over which media titan would ultimately prevail in acquiring the british broadcaster and at what price

the firm head by sanger. davidson kepner had also been pushing for a bid. and over the weekend comcast's prevailing proposal came in about 15% higher than the price elliot had been seeking for sky. the firm owns 4.75% of sky public filings several prominent merger arbitrage funds which were also long sky were thrilled by the deal one i spoke with yesterday told me he was, quote, super thrilled about the deal price and that it was higher than many thought guys >> okay. thank you for that, leslie mean tooitime, is the worlds largest ipo going to happen? brian sullivan joins us with the highlights he had an interview with the ceo

of aww dee aramco. good morning >> the sans yes. we just don't know when. i think you were in saudi arabia, was it earlier this year or late last year? >> late last year. i'm headed there in a couple weeks. >> so you know very well this has been going on for years. kind of like this pandora deal it's been speculated forever the head of saudi aramco was in town we had a chance to sit down. there was one report that it'd been permanently shelved i asked him directly if that report was incorrect >> of course it's incorrect. the iminister last month said te government was committed to the ibo. at a time of choosing when the markets are optimum. the reason i say it's incorrect because look at what the government did so far to make sure the company's ready for the ipo.

we have the companies -- joint stock company effective january this year. new board. we signed a new concession agreement. we changed their bylaw which is important for listing saudi aramco. >> so it is going to happen. of course, there's a lot of things that need to be unpacked. we also talked -- it was a 20-minute interview, by the way. don't think we're going to be running it this morning. we also talked about the permian shale boom i wanted to know what their thoughts were on shale i think nasser kind of confirmed maybe the concerns out there that these wells may not last as long as we think listen >> for the time being, we are seeing growth and fairly marketable growth in the u.s i think that will continue but eventually, you know, with

shale oil, the decline rate is much higher than conventional. in the first year, decline is almost 60% to 70%. so it depends on how much sustainable over the long-term in terms of need to have a lot of drilling to sustain the growth is that we are seeing currently. >> you think there's too much optimism around the permian shale boom >> well, as they say, you need to have a continuous drilling. you need to have a continuous improvement in technology. but ultimately, it will be controlled decline but for the time being, the growth is there. >> growth is there for now but concern about the rate of decline. >> look, if you're continuing to see oil prices where they are right now, you would expect that you would see more money poured into drilling for the permian basin. right? as long as prices are high, you would expect this to continue. >> bethany mcclain has a new book out, reading that now by the way. great book talking about how the real fuel for the permian boom, so to

speak, is capital maybe not drilling app lot of money has been going in there i wasn't sure nasser was convinced all that might be paid back eventually. >> in terms of this potential ipo, there was speculation they were trying to clean up aramco with this acquisition with sabik because they were competing against aramco how much do you think that played a role in this? >> i think it played a good role listen this deal was orchestrated in some part by the kingdom obviously you know there's saudi aramco and then there's the kingdom. the kingdom is the only shareholder. they have supply deals but they have petro-chemical deals. >> they're downstream. >> very far. mostly also saudi aramco also owns half of the biggest refinery in the united states. 650,000 barrels a day produced and refined sort of a joint venture there. there's a lot of different -- there's also the web inside of

saudi arabia about all the ownership for aramco >> and then long-term the question is, do you -- if you go public, are you doing that in saudi? or do you think they end up in hong kong, london, here? >> i asked them -- i did ask him about that i asked him specifically about the regulatory burdens on the united states. were they too expensive to list here he said, yeah, there's a lot of -- there's a lot of things. i think there's a deep well of liquidity or something like that was his quote. >> all right you're going back there. look >> you know, just -- >> that's october. that's the calendar. >> are you going to do a photo shoot? >> we're doing another photoshoot that's in shaba right there. >> nice light. >> are you doing anything else there? >> just taking photos. >> you're like gisele or something. >> yeah. you know >> that is -- too big to smell

it's probably -- is it for the launch of the cologne? >> i want to smell like the beach, jerry >> we're going to do the new version. >> what about a sweater? >> to wear over there? >> it's warm over there. >> not necessarily not at dusk, it's probably not >> i'll talk to my agent >> you know it's a good trip when you can say i'm going to go falconing. whenever falconing -- did i make you snort? >> have you been there did they ask you to do a photoshoot when you were -- >> nobody's asking me to do a photoshoot whale washed up on sahara. yeah, no >> i'm going to get a new photo to replace this one with >> the bare feet >> i like it it's good. >> andrew of arabia. >> you know how much sand would get in your shoes? >> i know. i know that almost looks photoshopped, but it's not >> it's not. it's real. >> it is >> i've seen pictures from other people who did the same shot. >> the same shot >> nick dunn >> did nick dunn do it

uh-huh >> just so you know, anybody who goes to shaba which is one of the aramco facilities out there -- i don't want to say anybody, but a lot of people have taken that photo. if you go -- they walk you right up to that spot. by the way, there's a wall of different people -- michael bloomberg, all sorts of interesting people who have taken a shot that probably looks better than mine. >> do they all take the sunglasses, hang them from the shirt like that? >> i don't know. >> is that your idea or did they actually -- >> i -- no i do that a lot. that's where i put my sunglasses usually if i'm not wearing them. >> be still my beating heart wow. >> is that sunrise or sunset >> sunset. >> milk this for all it's worth. >> 22-minute interview up on cnbc.com >> much more important part. go watch the interview >> i don't know who -- greco probably greco >> you didn't call for that. >> no. when we return, former nba

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september is spinal cord injury awareness month, and our next guest will be honored this evening at a fund raising dinner let's welcome ray allen who was recently inducted into the basketball hall of fame. he's also of "from the outside: my journey through the game i love." welcome. it's the banacotti dinner. you're not the only person being honored. what are you specifically being honored for tonight? >> well, just being able to do what i've done for, you know, 25 years in my field. like, if you look at the award, so many great legends over the course of the last 33 years having honored

especially for spinal cord research they're doing amazing things in miami. it's great for me to be part of what they're doing >> a-rod and others are being honored, if i'm correct. >> yeah. there's a field of four or five individuals. a-rod certainly is headlining all of us individuals. i look forward to a great evening. there'll be a lot of people in the building it's just -- to be able to be honored, you know, for my service to the game of basketball not only basketball, but to people all over the world b because we provide entertainment is great >> the numbers over the years. there were friends vavinvolved t this i think $120 million -- $500 million has raised overall for spinal cord research that's incredible. we're starting to see we're not

that -- there's some advancements in research do they bring you that tonight >> yeah. they're going to talk about the science behind what they're doing. but it's important because i think in most circles, we all deal with something in our families you know, you take for granted, you know, your physical health and what you do every single day. and i always see people when you're -- you see somebody in a wheelchair, somebody with a cane our legs carry us everywhere we go we've got to take care of ourselves but also those that fight, this is a great opportunity for us to celebrate them and try to find or help find a cure for paralysis in general. >> so you're not going to go re-join lebron at any time soon? you're telling me that's not going to happen? never say never? >> you never say never, but my feet are firmly planted on the couch. it's going to take me a lot to get off of it. >> why

>> well, there's so much that goes into it you got to relocate, for one i have five children i live in miami, florida they love their school when we moved down there, they were mad that we were moving so it does require a lot that's why i say, you never say never, but, you know, if the earth and wind and everything was moved in your direction, you'd have to think about it >> you know he can act and actually when you did -- when you have acted, they said one of the few people that can both play and so you got that going for you. if you're cast in something. but you didn't overact they said you had a quiet -- it worked you got good reviews >> yeah. and interesting thing about acting is, i think we all can act. >> i don't think so. i've too though. >> maybe that's why you looked so strained. >> yeah. it truly was but when you're asked to exhibit so many types of emotions you

don't normally use, it's their their -- then they start learning and you tap into a side of you that you didn't know existed >> one question. i don't know if you want to weigh in on it you were a nike athlete. colin kaepernick, the nike decision their stock has gone on a run. what's your take on the situation? >> i thought it was incredible you know, what they did. nike has always been a cutting edge company just -- you know, they've had some of the best athletes the world has ever seen. to be able to stand on a position that colin's doing. they understand who he is and what he was standing for still incredible player. he still has the capability to be out there and play in the nfl. but for them to put their marketing campaign behind him, you know, it makes me feel good

about being a nike athlete we all are trying to push the envelope in some sort of fashion. what he's doing is for the good of all people. >> just back to you for a second someone is going to beat your three point shots some day eventually >> yeah. and the one -- >> that's pretty amazing you can shoot. >> yeah, i definitely could shoot. i knew it like the back of my hand but it's amazing to me when somebody told me i had a record. i was like, i watched great shooters in my lifetime. i'm not any different or any more special than the next person i always know once you set something, it's a bar other people try to aspire to. >> do you still practice >> yeah. i still play on the weekends >> we think of brian sullivan as tall, but he towered over brian. when you watch, it's my god you're tall.

people say you're tall >> i'm a little guy. >> compared to everybody else. >> we can go out here and play horse. >> you should have a hoop out there. >> or in here actually we got the high ceilings we just got to get rid of these stupid lights which don't help anyway ray, thank you >> thank you when we meco back, "squawk" is going to talk comcast/sky deal back in a moment these techs in a lab. this builder in a hardhat... ...the welders and electricians who do all of that. the diner staffed up 'cause they all needed lunch. teachers... doctors... jobs grew a bunch. what started with one job spread all around. because each job in energy creates many more in this town. energy lives here.

coming up after a break, that gentleman right there ken

auletta of the new yorker on the comcast/sky deal then later the ceo of weight watchers joins us with some news about the company and its future we'll find out whether hard boiled eggs are still zero points because i got a couple of them here details straight ahead "squawk box" will be right back. s with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.

a flood of breaking deal news comcast winning a weekend auction for european paid tv giant sky. two gold companies joining forces in a $17 billion tieup. and sirius xm buying pandora u.s./china trade turmoil the latest round of tariffs taking effect today. plus weight watchers is changing its name to move beyond the number on a scale. the company's ceo will join us live as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box. >> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky

quick and andrew ross sorkin futures have been down a little bit from all-time highs. down 51 on the dow nasdaq down 44 and the s&p down 6.5. the tariffs supposed to go into effect today could eventually be 25% on $500 billion. so i guess it could always be worse. there's the 10-year, 3.07% on the 10-year. we have three big deals to tell you about this morning. we've got sirius xm buying pandora. price tag $3.5 billion just came out in the 7:00 hour all-stock deal valuing it -- effectively puts a floor on this another buyer could emerge potentially over time and come in with a topping bid. the question is whether a spotify or apple or other technology company might want a piece of pandora we should also mention sirius xm

bought a piece of pandora in 2017 barrick gold buying randgold that's a price tag of more than $18 billion. shares of both companies higher right now. then cnbc parent company comcast outbidding 21st century for sky. big transaction over the week. we're going to get to david faber for more news on that auction. david? >> well, andrew, of course you know it was the heating -- a heated auction perhaps, unexpected. about four or five weeks when it appeared likely that disney might choose not to increase the bid. but of course they did significantly. but not nearly enough to beat out comcast. you know, reporting i had was that anything above 16 would be considered sort of a very, very high bid some people using different adjectives to describe it. but of course coming in at 17.28, well, that was perhaps

unexpected but not by the market. in fact, shares of sky had been trading to almost, it would seem, a point where there was an expectation. you would get the two parties bidding this up, perhaps, into the low 17s. and that is what happened. it's up $49 billion overall deal for our parent company when you include debt there's a look at the final bids, of course. one question we still have is will disney when it buys fox -- or will fox prior to being purchased by disney choose to tender its 39% stake into the 17.28 or try to hold out in some fashion for an even better deal or for the prospect of some sort of a transaction that might involve the 30% of hulu that comcast controls that's unclear people telling me it's a bit premature right now on hulu, but certainly our parent company would like to figure it out. if there's a possibility of a

deal, one we expect they would be willing to join in those conversations. you're going to have comcast down we can see that right now. the stock has been trading quite nicely over the last few weeks perhaps in the prospect that disney would come back and even win this bidding but if you speak to comcast senior executives, they will certainly talk to you about the long-term and the view that brian roberts has always had we know this in part as shareholders, as well, given also as employees that it's not about year one or year two it is looking down the road as well as 10 or 20 years in terms of positioning the company for what he believes is his most advantageous future. and, well, comcast is not much in the way of any foreign assets and has not had a significant business, really, in any country other than our own yes, it is in the distribution

via satellite business which certainly in this country has not been going particularly great. but comcast will tell you it's about a lot more than that there's the streaming service, the deal with bt to use their broadband, and there are 23 million customers where the competition is not quite as strong, guys so that's how mr. roberts sees it there were many who believed he would come out of this being the battle for fox and sky with something and comcast has succeeded in doing that despite what may be some near term on the price. >> two quick questions one is tactically from the dark arts deal perspective. clearly by pressing disney to pay up for fox, it put comcast in a better position to make this deal. but the question that -- and you raised it or just suggested it this idea there's less competition in the future, this goes to sports rights and things

in europe, right now comcast/sky would control, obviously, the big premier football league football rights. those rights will come up in the future the question is whether you think long-term the facebooks, the googles of the world come in and try to bid for those assets or bid for those rights or whether you think comcast won't have to compete for those kinds of prices. >> yeah, andrew, listen. you raise a question many of us have as to whether or not you will start to see significant competition from the other media companies which are far larger, by the way, than even disney or comcast. and whether they will compete aggressively whether it be amazon, google, or facebook for things like sports rights. i don't know the answer. it's certainly a possibility it gets discussed a great deal it could be potentially a threat given their ability to distribute globally as well. for the likes of comcast right now, they do feel that the sports deals that are in place at sky, plus their ability to take some content from over here

and distribute it globally is going to aid the overall company. and again, i guess maybe we'll be employees for a really long time we'll all benefit. it is a 17% compounded annual growth rate for this stock since inception. that's pretty good that's what they tend to focus on anybody who owns the stock for a year or two, they seem to consider just renters. >> david, thank you. david faber, you'll see a lot more from him coming up on "squawk on the street" too joining us now to talk more about this is ken auletta. it's great to see you. you've been following these companies for a very long time what did you think about how the auction played out >> well, i think it shores up a weakness that comcast has had which is they have -- they're basically dependent on u.s. revenue. and 9% -- only 9% of the revenue comes from outside the u.s >> this takes it to 25%. >> switch a big deal for them. it's a setback for disney, but disney's bigger objective is

competing against netflix. comcast was getting distribution overseas and they both, you know, that's going to play out. the question is will it be a trade. will disney say, hey, you want our 39% of sky let's trade and you give us your 30% of hulu. >> is that a fair trade? or would somebody come out on top? >> there may have to be some monetary -- >> but just the idea of if you can make a clean cut and walk away -- >> well, both of -- if the major objective of disney was getting -- competing against netflix and the major objective of comcast was distribution overseas, a trade would satisfy. >> i don't understand why -- and i've heard this argument of the swap with hulu i don't understand why disney would have real leverage to force comcast to sell. i would think "a," comcast would be happy sitting here for awhile with holding hulu. the second part is, i don't see the leverage piece that disney

has over them. i can't imagine disnedisney's gg to say i'm going to be a happy passive shareholder at a rower price right now sitting in sky >> essentially nothing will happen for a period of time. they're going to wait. and things will emerge or not emerge you may be right >> by the way, that transaction with the hulu piece, wouldn't that have to happen in the next two weeks? disney would have to call up brian and say we're going to tender or not tender so you'll have to do a deal for hulu if this hulu thing is supposed to happen, it would have to happen now later down the road. to the extent there's leverage in the story, that would be the only leverage you have >> i think you're right that brian roberts has more leverage right now over that deal than bob iger does. >> what about andrew's earlier point? this a question we've kicked around for a couple months here. just the idea that strategically it may not have been what brian set out to do, but by forcing

them to pay ore, it hobbled them on how much they could pay for sky. >> roberts has other things, weaknesses he has to deal with one is eroding cable his money in revenue, most of it comes from cable here and he's been very strong but he's eroding as people go to skinny bundles and netflix >> they're getting more expensive. >> but a lot of young people don't go to a bundle at all. >> and the broadband stuff is strong too >> netflix has 150 million customers around the world that's a big deal. >> hulu loses so much money at this point >> and has only 20 million customers. right? >> what do you think, you know, craig moffett was on the program in the last hour and talked about this idea to make the sky transaction work, comcast long-term is going to have to build or create its own version of a netflix or a hulu some kind of streaming content service so you're able to truly leverage the various distribution platforms

and what that ultimately costs. >> that raises the innovators dilemma. the problem that a cable company like comcast has is that their legacy business, cable business, if you move into streaming you're undermining the heart of your current business. >> the question is how long that business stays profitable and stays strong and what we've seen recently at least from earnings have been pretty strong. i guess you're going to be watching upcoming earnings closely to see how that is going. >> clearly over the period of time, streaming is the future. and cable is the declining asset. over a period of time. it's declining much more slowly in europe, say, than it is in the u.s. but it's declining >> the competitive landscape in europe is one that's been described as the good old days of what we used to have here in the united states. obviously many more competitors here how do you weigh those things? >> i mean, what is happening here will happen in europe and elsewhere. it just happens at a different

pace newspapers, for instance, are much stronger in japan and other places than in the u.s so we have accelerated our decline more quickly in a lot of places including cable and other places but it will happen in the rest of the world streaming is the future. the internet television is the future >> i know brian took a ride over there with some cabbie the cabbie was talking about sky and he wanted sky. i don't know if comcast ever coveted all the fox assets that much they always -- i think he's pleased as can be that he ended up with sky and didn't end up with that other stuff. because i don't think we ever would have gotten -- or comcast would have gotten regulatory approval to get it anyway. as it all turned out, it's like -- i just think they're ecstatic with the way it ended up >> people don't like to lose. >> no. and people have fairly large egos it's a great deal for you guys here it gives you a distribution mechanism which is a real asset

for nbc and comcast. >> ken, it's always good to see you. thank you for coming in today. ken auletta. all right. just as a side, so if you guys come up with this i'll give you a lot of money >> how much? >> why are the crowds -- why did tiger say the crowds are so much louder now sandy told me this why were they so much louder for him now? because no one can clap anymore. they all have to scream because they're all holding cell phones. >> oh. that's a really good -- >> nobody can clap >> wow that's interesting >> thank you that was from sandy. >> that's a good factoid to know >> yeah. tiger said things are -- i mean, the ground shakes. >> that's a factoid i can use at cocktail parties >> because you go every night. because you're ascending your career is like a rocketship coming up, the latest round of tariffs targeting u.s. and

chinese goods taking effect today. we'll talk about the escalating trade war next here's the look at the biggest winners and losers in the dow. you're watching "squawk box," home of useful factoids. here on cnbc i know that every single time that i suit up, there is a chance that's the last time.

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welcome back to "squawk box" this morning take a look at futures right now. we ended friday at a dow high. market's a little under pressure this morning dow off by about 52 points right now. if we opened up, nasdaq would open 48 points off shares of biopharma company amarin surging 300% just this morning. a fish oil capsule showing dramatic benefits in a clinical trial treating heart patients. the medication reduced serious cardiovascular events in a trial of 8,000 adults who had been treated with statens >> those pills -- >> the after >> you burp and -- hopefully no one's nearby starting today, the trump administration is imposing a 10%

tariff on $200 billion worth of chinese goods including furniture and appliances beijing a retaliating with taxes on 252 u.s. imports worth $60 billion. joining us now is the head of the center for groebl and environmental global opportunity at central florida he's a former republican congressman and a former chief judge at the world trade organization he also authored a book called "the willing world: shaping and sharing a sustainable global prosperity." we can talk about the fundamentals and the facts, jim, but we're down on the dow like 50 points a day from an all-time high so there's a disconnect between the sort of dire worries and angst about these things and really what we're seeing manifested in the way the markets are handling it. is the market missing something? or is it all going to be settled

in a way that isn't so deleterious to us? >> we're nowhere near a solution we have not seen yet the full extent of what we may see as a consequence of this trade issue in the u.s. economy. that's perhaps why the market hasn't taken what's happening in trade much into account. we're starting to see some slowing of investment decisions because of uncertainty we'll be seeing soon some more price increases if walmart and other retailers are correct. and i think we'll see a disruption in supply chains from this latest round of mutual tariffs. and certainly that will be so if the president follows through

with an additional $267 billion in tariffs on chinese imports. >> do you think we get to a point where there's 25% tariffs on nearly a half of a trillion dollars in chinese imports >> that's where we will be come january 1 -- >> do you think we'll get there though >> i think we're on our way there because i don't see any possibility of u.s. and china finding common ground in negotiations at this point, they can't even resolve to sit down and talk the chinese had been scheduled to be here this week, canceled that in light of these tariffs. and now the u.s. has suggested talks once more. the chinese have refused in my view, it may be time to take a different approach. one option would be mediation through the wto.

the chinese say they support the wto. this would be a chance for them to prove it. of course, the president has shown nothing but disdain for the wto. but his administration continues to participate and they say they support it perhaps they should try some outside mediation. what does the president have to lose he could always denounce the media. >> what's the end game with nafta, do you think? since you were one of the main sponsors when you were in congress do you see us -- do you see canada coming around in a trilateral deal or just mexico at this point? what do you think? >> well, the united states has set a deadline of the end of this month so we've got about a week to go to see whether the u.s. and canada can reach some kind of a compromise several serious issues divide

them dispute settlement, there is room for a compromise but i don't think the canadians are going to respond to continued bullying by the united states. a former trade negotiator, and that's not the way you find common ground and reach an agreement. it would be important for both sides to be able to go back home and say this is an agreement in our interest and it's important to keep that thought in mind at the negotiating table. both sides do, there's room for an agreement we certainly need one. in my view, we need more nafta, not less and what the president is giving us so far is a whole lot less. >> all right mr. bacchus, thank you i don't know when this ends, but we're right in the middle of it.

"the willing world: shaping and sharing a sustainable global prosperity." we appreciate it thanks >> thank you very much >> you're very welcome thank you. he's smiling now he was a little bit too serious for me to do a lovey reference you must get that sometimes, right? thurston were you expecting that? i say jim bachhus and i can't help myself. >> that was a plus in my day it was name recognition. by the way, for my sins, i am a democrat i might be the last democrat in favor of free trade. but i am a democrat. >> all right exactly. i was going to do the locked jaw. thank you. and thanks for playing i knew back when he was in congress, you say congressman jim bacchus, and you see -- do you know what we're talking about? >> a little bit. but only a little bit am i catching >> very little >> very little >> gilligan.

♪ >> can you call me skipper >> no. no >> i just called you my little buddy. >> i got that. when we come back, why apple is restricting what types of shows and movies can play on apple tv then tomorrow, don't miss an exclusive interview with melinda gates. that's live at 8:40 eastern time "squawk box" will be right back. a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.

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coming up, sirius xm buying pandora for about $3.5 billion we'll get reaction from a top analyst next and then later today, jim cramer's going to speak to jpmorgan ceo jamie dimon and then tonight at 6:00 p.m. on "mad money." we'll be right back. 989, a new s technology was being tested for the first time ever. it allowed more users to connect at the same time while on the move. other wireless carriers considered the tech too expensive, but we saw it as the birth of reliability and the backbone of a company we all know as verizon. so we were the first to commit to the cdma system and the first to build our entire network around it. today, once again, we're transforming reliability as we know it,

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♪ good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square among the stories front and center, symantec's audit has been completed cyber security firm says only one change resulted from the probe. it will defer the recognition of $112 million inrevenue and it's going to take appropriate measures porsche will stop offering diesel versions of its cars. porsche is a unit of volkswagen

which has admitted to cheating on diesel emissions tests. however, its ceo says diesel has always played a secondary role for porsche and it considers itself first and foremost a maker of sports cars that's not necessarily compatible with diesel gasoline prices down 1 cent over the past two weeks. i don't know what you want to do with that. down a penny a penny a gallon, i guess, huh so if you get 30 gallons, you save 30 cents. >> you drive quite out of your way to save a couple of cents a gallon >> i used to do that >> you don't anymore >> not as much, no according to the latest lundberg survey, the average price is now $2.90 a gallon that is, however, 28 cents higher than it was a year ago. old habits die hard, becky

you'll see that. my dad taught me about that. find the gags station wis statie lowest >> you leave that money sitting there? >> flushing it down the toilet talk to andrew >> i will save a penny as you know apple is reportedly walking a fine line between quality and edgy programming as it looks to get into the world of scripted television "the wall street journal" is cite i citing agents saying they want the shows without the gratuitous sex and violence after apple dedicated a billion dollars for programming, tim cook rejected a show based on dr. dre's life because it was too violent. apple has twice pushed back the launch of its first group of shows. and breaking thorn, a little bit of news. sirius xm buying pandora the price tag $3.5 billion

joining us now is internet analyst. there's been speculation about a potential deal for quite some time since sirius made that offer and then took a stake in the company. what's your reaction this morning? >> well, sure. sirius xm has really gotten to know pandora really well since that initial investment, andrew. my guess is they've been impressed by some of the near term execution by the roger lynch and existing pandora management team. as they look at it, you know, as they look at some of the strategic synergies, the world we live in where aggregation of users is strategically important as you try and combat the likes of spotify and apple and even amazon and alphabet. you know, scale matters. and so, you know, they know the management team. they know kind of the p&l in a way that others are going to take awhile to get to know >> anthony -- >> and so it does make some sense at a high level.

>> talking about those other tech giants that you just mentioned, there is what's known as a go shop provision as part of this transaction which allows pandora to try and find another buyer willing to pay a higher price. effectively this transaction puts a floor now on pandora's stock price. can you imagine an apple, amazon, or any other tech names you just mentioned trying to step up with a higher bid? >> you know, i certainly wouldn't rule it out and you're right in that another buyer can emerge here. it's my sense and i'm not sure, though, that apple and spotify have had a chance to look at pandora already. so i'm not sure the go shop period is a very kind of new development. i think because pandora is unique in that it's not profitable it's not clear that it will be profitable and in a short period of time. i think it will take a buyer like spotify or apple to get to

know the financials. and that takes time. and sirius xm management team, i think, they've gotten to know the team and the financials in a way that a new buyer has not i mean, that said, strategically you can see the benefits of scale. the music market, the audio market is going to this on demand market. if there were three buckets a la carte supported subscription -- >> real quick because we got to go, but sirius xm stock price looks like it's going to open off about 5% this morning. obviously there's some orbs in this stock, but when you look at that, does that mean they're paying too much? >> i don't think so. i think that there's dilution there because pandora is unprofitable to begin with and sirius is hosting a call here with strategic synergies. so i think it's going to take a little bit of time here for the market to understand what are the synergies. is it negotiations on the content side

sit getting pandora in the car is it better leverage in terms of negotiations with the content owners like the record labels? so i do think once the market kind of gets a better feel for what the strategy is at the sirius xm lel, then we'll see the stock normalize. >> appreciate you jumping on the phone quick this morning after this news just broke >> thank you in the meantime, another deal if you've ever tried to access a government service online, there's a good chance you came away frustrated. our next guests are trying to change all that. we're finally living in the age of the digital city hall joining us now two legends in the business world a rollout of half a dozen different companies just last week tell us about it >> well, first, thanks for having us. it's great to be here. what you look for since we started back almost two years

ago, we've been really focusing on companies and markets more so we found as you said a tremendous serve market. one transition that every company, every enterprise in the world is going through is a digital transition developing a digital agenda. and of course if you look at it as you just pointed out, if you look at state and local governments, they are really lagging in that department we built a set of technologies now to help citizens in these -- and the governments modernize. >> you obviously were at emc you were at et cetera before how do you get to this place to start thinking about this space? >> we each had great experiences running the companies we ran and i had the honor of being on the emc board. we have been -- >> lead director >> we had been friends for 30-something years then we decided what do we like to do? the thing was we like building businesses and so this construct gave us an

opportunity to go build a great business to find founders that were passionate, to build a company that has values that are important to us. and to take our experience and help some young people do something special. and this sector as joe mentioned is kind of a last place that digitization really needs to touch. and there's a lot of demand from citizens for that. >> okay. we're just going to take a quick pause. >> president trump is speaking at the u.n he's been talking about making some remarks on the world drug program. let's listen in. >> the united states looks forward to working with you to strengthen our communities, protect our families, and deliver a drug-free future for all of our children. thank you very much and thank you for being here we appreciate it thank you. >> that's president trump who had just been making some remarks on the world drug problem. this is just a beginning of

what's happening at the u.n. the president arriving last night. he's at the u.n. this week with the global leaders, global heads of state we'll hear much more >> all right let's return to our conversation with joe tucci and bill green. it's six companies in total that you've rolled up just to put a fine point on those companies. something called city based for state and local government open counter does permitting is it e-service? these guys do grants >> grant management. >> and then there's something -- you have a data security business as well >> budgeting >> what'd you say? >> budgeting >> the question i was going to have about all of this, in terms of the contracts, are they long-term contracts with states and government cities already? or are these businesses you have to put together first? >> a little bit of both. these businesses all -- most of

these businesses start in 2011 they're run by young talented entrepreneurs. they're in five tremendously important areas for you as a citizen. nobody loves going to dealing with their local municipality to do anything. to get a fishing license or renew and pay taxes, whatever you're going to do so modernizing that is really critical and those are five areas which we think are ripe for modernization. they're all cloud based. only 5% of all the application in state and local government run on the cloud only 5%. they are way behind, you know, the -- >> why is that they're just slow to commit capital? >> well, it's -- i don't think they're at the leading edge of technology but they're there now. >> there's no profit incentive for local governments. >> it's to serve your constituents >> i know. it sounds good but we've all been dealing with

municipalities we know what it's like >> everyone has their personal story. >> exactly can we now fight city hall you still can't fight city hall? >> i don't think you're going to have to fight. things that used to take weeks take minutes things that you used to have and go and stand in line and sign up, you just do it digitally and it's sort of the last vertical, if you will, to get with the program and it's how the rest of people run in life. so we expect more from our municipality and the men and women who work in these just don't have the tools to serve you well. and so this is about tools and some of them are incredibly powerful but the interesting thing about finding these specific companies because we looked at a lot of companies to come back down is the growth four of them grow over 100% a year combined collection of companies end up growing 100%-plus a year. >> so you're going to combine

all of these together. who do you think is your bigger competitor >> right now if you look at the busine business, nobody has double digit percentage of market share. there's a lot of regional and local companies in there i think our proposition pulls that together and provides a solution and just as important we're going to have over $250 million of capital on the balance sheet once we get going. and we can use that to add more capabilities and more services and further invest in these six businesses that we did acquire >> really an answer to your question is excel spread sheets. most of the government runs on an excel spreadsheet it's that kind of arcane so giving the cloud based more variable based solutions in these five areas is going to be rel received >> how much do you worry about the ibms of the world and others that have had relationships with

cities and other municipal governments stepping in with their own versions of products like this? >> i don't think when you think of ibm you think more of deep sbep grags these are agile applications that are done that were created in the cloud that you can consume on demand quickly. >> this is called a blank check company. historically companies -- i haven't seen rollups like this this is a lot to do in one spat. what was the thought process here >>. >> i wouldn't think of it as a roll up per se each company has their own focus on market, their own market they serve, own assets they serve and it's sort of getting behind the six company. >> and they'll operate independently or it'll turn into one product offering effecti effectively? >> fairly independently. but there'll be a way to share

contracts, you know -- >> 2,000 customers and everyone looks at the other list and says, geez, i could introduce my products and services to those customers. >> cracking into a municipality takes time if one of the sister companies have done that, part of our gty universe, it makes it easier >> darn. i was going to upgrade myself to an excel spreadsheet so that's not often. i'm on the abacus. so now i'm already behind. should i stop my course? >> just keep going >> that's the progress rate. >> before we let you go, could we get a comment on where dell sits right now after that deal it's pretty remarkable what's taking place >> as you probably know, andrew, it is remarkable and first of all, let me say the company is performing exceedingly well michael dell is doing a phenomenal job leading the company. phil and i both have former roles on there we really can't comment.

but we got a lot of confidence in what they're doing. >> appreciate it good luck with the deal. >> thank you appreciate it. >> thanks. >> good to see you when we come back, weight watchers is changing its name to move beyond the number on a scale. the company's ceo will join us live when "squawk box" comes right back cal: we saved our money and now, we get to spend it - our way.

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helps us manage our cash flow and plan for the unexpected. valerie: her experience and training gave us the courage to go for it. it's our "confident forever plan"... cal: ...and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. welcome back, everybody. weight watchers becomes ww today.

it's a name change that reflects a renewed strategy to focus on wellness and overall health. joining us now is mindy grossman she's the president and ceo of newly minted ww. thank you for being here today it's great to see you. >> good morning. you as well as always. >> weight watchers is a brand we know so well for so many years why go to ww >> so this has been part of an evolution of a journey to go from being undisputed leader in healthy eating for weight loss to much broader than that. to be part of overall wellness how you eat, how you move, how your mind works to support you and how you become part of a community. and the idea of taking the name and moving it to a trusted mark of wellness around the world of tag line of affirmation of wellness that works is a great move in our jury knew to be able to help more and more people lead healthier, better lives >> we've been watching the

stock. in the last three years since oprah took a position on the board and some ownership in the country, the stock is up 400%. it's been phenomenal watching the turnaround and watching what you've done with this place. but you do see wall street looking trying to figure out cyclicality in the stock the stock was down 15% after the last earnings report is this a way of attacking that issue? >> you know, it's a combination of things. there'll always be some cyclicality in the business and we're educating people on what that is. but this move has been in transition for a number of years. that's why the business is performing so well and we have the highest recruitment numbers, retention numbers in the company. now things we're looking at to our partnership with head space for mind-set to the first global rewards program which actually rewards people for efforts they

make for their health. not what they spend. and that's why we're seeing the results that we are. because people really need a partner to help them get healthy. and what we want to do is give them the tools, give them the community, give tools and commu inspiration and motivation to be able to do that. it is important that we can do that for all people. not only will you be able to have a weight focus, if you want you will be able to have a healthy habit focus and get all of the assets and support on how you want to live your healthiest life lastly, we have expect to our online community in addition to the 30,000 meetings we have, a week going forward you will be able to customize your community. imagine if you are a young mom and you want to interphase with other young mom, you want to be college students, we'll be

enable you to do that. the combination of what you put in your body and how you move your body or how your mind works and how we in incentivize you as well as how you are building your community is all network. >> is oprah the face of this, too? >> oprah has been incredible partner. she has been involved in every part of the journey. we are looking to see how we continue ta partnership to be able to touch as many people as possible >> maybe this is a false impression, i thought it is a brand that women would be the t biggest customers for it is that the case >> for years it was the focus, what we have seen in the past career is a significant increase, not only in new customers to the brand but it is significant increase of the diversity of those customers

i think part of that is the program, the simplest most effective program we had in the history of the company we are having equal or if not greater results for people men in particular are really responding we are able to build our influencer base from erick green span and dj khalid we want people to understand this is for everybody. we can be that partner from the time you wake up from the time you go to bed to help you live the healthiest life for you. we are asking what's important to you >> mindy, we are out of time >> are eggs still zero point >> the number one trash bck foon the company.

>> they're filling i am hungry all the times. >> pepper is okay? >> you can have some salts >> thank you, mindy. >> i will give it a little taste. >> nice to see you >> when we return, we'll go down to jim cramer, he's live from his hometown this morning in philadelphia, get his take of the big story of the day we'll do that next, just a moment no-good break. gooood break. i'm so sorry we can't make your barbecue. i'm just sick about it. aflac!? different kind of sick. if i can't work after surgery, how am i gonna pay my rent? all these bills? aflac! oh, aflac! and they pay you cash in just one day. see how aflac helps cover everyday expenses at aflac.com.

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jim is in philadelphia today. i could not see it on tv i was watching on a cbs app. all it does is it tells me each place, did it get dice y at the end, were you nervous? >> to say i am not nervous is completely a lie i thought he had run the table and coach there. he was auer offensive coordinator. we are 2-1 i feel pretty good >> one of my significant people of my life were there who's down there all the time she says -- i said philly fans are the worse. she says no they're not, they love their teams yeah but they hate every other teams

it was more fun. i think it is rowdy, is it down there? >> this town is owned boo i ty eagles and vice versa, it is hard to hear i can't talk to my wife. >> we got to go. that's what matters. ki ys eed something beside asngou about comcast >> we got a big interview coming up with jamie dimon. or your 10th draft. ♪ you get to create the room where it happens. ♪ ♪ just don't think you have to do it alone. ♪ ♪ the powerful backing of american express. don't live life without it. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action?

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welcome back make sure you join us tomorrow, "squawk on the street" begins right now. ♪ good monday morning, i am carl quintanilla with david faber and cramer is in philadelphia where he's going to interview jamie dimon and jp morgan at 11:00 a.m. eastern time futures are red on a big final week tariffs on china are live. kavanaugh and merger monday is back road map begins with ourar