times. >> i know you will ask him >> final check on the markets as we yell at each other from across the set >> not yelling >> just happiness. >> we are just so far away >> see you tomorrow. make sure you join us tomorrow "squawk on the street" is next ♪ good tuesday morning, welcome to "squawk on the street," i am carl quintanilla with david faber a lot to come from jim cramer today. rebounding from the dow since its biggest loss we watched potus at the end and europe is up

cas case-shiller is up 6%. rising rates lift bank stocks. crude oil prices hitting a four-year high iranian crude export, president trump returns to the u.n. one year after his north korea's rocket man speech. >> a facebook surprise, instagram's cofounder is leaving the company so they can explore their creativity again >> less than 24 hours ago, you were in philadelphia sitting with jamie dimon and you bo back to global hq, you do "mad money" there, your week is from far over >> just started. >> we have to figure out one of the stories you guys just mentioned, founder of instagram leaves jamie dimon is the only real noticeable personality i think about these. we got hundreds of them here those two gentlemen and you know

this more than anyone does of the heart and soul of instagram which saved facebook we got to follow this stuff that's going on with the cloud and these partnerships >> we'll talk about it from facebook jp more januargan, shares are cg uneasy pressure but they do keep their weight and target. >> that piece of research, when you have powerful penalties who are at war in terms of just ethos and culture. it happened. you know the system represented much more free spirit. they're not trying to save your name they're about telling stories. that's what we thought zuckerberg were able these are classic culture and the side that lost is the side

of creativity. >> could not have said it better talking to a couple of investors this morning, they seem to agree with you wondering when those top guys leave and an impact and, how importantly transition is to instagram stories as important in some ways as the desktop to mobile for this desktop company and whether it will be successfully navigated without those two guys >> sometimes the follow eiing matters. you get the sense that you know what, this guy is not trying to make money he's about trying to be let's say figuring out what the customers most wanted. return investment great. i am wondering whether

zuckerberg has triumph of what we think of the free spirit of facebook it is bad. >> it is bad that-- let's see w happens to facebook. i am thinking facebook is really is something for making a lot of money and thank you for if free content people >> interesting carl. >> i don't know jim, if you read that long new york article that -- that the one that zuckerberg cooperated. some of the things we do know but still put things in perspective. >> the lents at which they were going, that one metric where they were targeting people who logged in six or seven times a week and it was just, growth at all costs were the lesson of that piece piece now se zuckerberg says i learned a lot

and use that piece repeatedly. >> this is a remarkable story. what really happens is, as we know more and more of ser zuckerberg, how about cheryl was cheryl supposed to be the moral compass? when i heard it, i was with people involved in social media, it was all oh no, no heart and soul it is not heart and soul the company is run by people who try to figure out how often do you work and sell it that's not the way a lot of companies view this is how it is done here and tim cook, he's not trying to sell what apps you are downloadingme downloading. he's not trying to tell mlb that here is your guy, sell them some hot dogs no not the way it is done guys, another piece of

technology news that we follow closely here it is qualcomm and it is apple it is worth a story right now because in the filing of the court of california, last night qualcomm unveiled explosive charges against apple for stealing vas swaps of its confidential information and trading secrets for performing chip sets provided by qualcomm competitor and intel >> a complaint that qualcomm qualcomm -- apple signed when it became a customer of qualcomm. the two companies have embroiled on direct litigations around the globe. yesterday's filing can be seen as the latest of nafta dispute designed to put pressure on apple to settle. donald rosenberg tells me this

case stands on its own and would have been filed regardless of ongoing dispute. unlawful used of qualcomm's valuable trade secrets to try to help a competitor catch harms us and must not be allowed to continue >> that agreement allowed qua qualcomm of the software and the tools that are shared being protected. qualcomm argued it was being prevented from aing. the stealing of the same source of tools for the express purpose of helping in its chips that led to their poor performance in iphones.

qualcomm is making the latest charges after discovery of the current loss, apple engineers repeatedly provided source codes and other confidential information to intel engineers qualcomm did not provide direct evidence to support the allegation it does make reference to back and forth between apple and intel engineers that i am told our correspondents between those engineers was found during discovery. qualcomm is hoping this will be added to apple and the case is still on trap for its current court date of april of next year that remains unclear given their timing has not yet allow a response from the company. we'll bring it to you. this does seem up in the an anti between two companies the largest company in the world are stealing your trade secrets and giving it to intel

>> right >> based on a couple of responses according to engineers. >> late on the initial lawsuit of the breach or the lack of audits being allowed that discovery has turned up evidence they say in the form of correspondence that points directly to charges. that's all we have now of filings to the lawsuit that we have in our possession >> thoughts on this. today ray jay cuts intel and back to under perform having gone neutral a little bit of the strong demand on the first half, jim. >> well, this is horrible. intel, i can't believe it and ray jay downgraded and a lot of it is the company is diseray we know there is a shortage of tips i really thought that these companies were closer and

closer i really felt that tim cook at the top level is about to be sit down and make this go away wow. >> why don't you launch a grenade. i know that intel have always tried to get that business and struggled and this ups the anti by the level, don't count on settlements because explosive is the word. >> to your point, it does up the anti, donald rosenberg, told me, listen, if we found this out and anything else going on between us, we still would have brought a complaint but i do wonder how it plays into the dynamic between the two companies. we should point out why intel

mentioned in the complaints, there is nothing broad intel this is the action that's being added to the existence of apple already. >> property theft. the idea that intel some how got some trade secrets from qualcomm we don't know. as carl said, it is in correspondence what i don't like is the tone. you can threaten a nuclear, listen, we have information that's damaging for you and intel or you can put it out there. putting it out there changes the whole leverage i don't see why tim cook has to sit down with these guys if that's the way they play >> you still wonder maybe it is serious enough that forces apple to say we are more serious of getting a global settlement here >> maybe apple believes it or maybe apple -- look, we want nothing to do with the company

so we are not paying you of coursel obviously, qualcomm has done so well that it embolden them i thought these two should get together in a room i don't like the tone of this. as carl says, what the heck is going on with intel. no ceos and not being able to make these communication chips well and missing the gaining revolution where is intel and the chip orders of things are they again, we have to play chess. >> we do know this is based on trade reports and others, we cited them in the past that apple did make a move to intel chips and a significant move there are performance issues

with certain iphones >> i mean we use it across the board. >> it is one thing to talk about ip theft and industrial warfare of china when we have our own guys duking it out at home >> that's true >> silicon valley, think of waymo and uber for example, there has been any number of these kinds of lawsuits in the past these involve enormous companies and they are explosive charges which is why chris want to bring with the people with the kcaveat will be there. there are allegations based on corresponde correspondence that's not a typical for them not to want to give it all up in the complaint. they may want to wait until they get into the courtroom >> guys, we are watching that story. the other big thing today is the

u.n. general assembly and the president speaking on iran and the nuclear program. some of this will tie into oil, which at 72.5, almost, jim and touching 82 and four years high. a lot of talk about to what degree brent can hit 100 and whether trade tension will bring the price back in in medium term >> i think we are under estimating actual raw demands. i have seen 20 new methods and stimulations of growth in china that's been going on in the baltic phase united states is doing very well and venezuela. the biggest reserves in the world and they have not been able to be drill now these sanctions, it is absolutely enough to say demand

going from one to one percent and a little cut down in supply. i think tl mohe move israel last anytime we got here, analysts were going on 100s then there were trend followers i think it is a real break out >> really? you said 80 yesterday. >> yes, notice the international oils that have the bottleneck and company like ep, watch chevron, i think chevron are going to do well i think this move israel and we have to watch it for inflation we have a fed meeting coming out, a lot of people adjust this for some sort of political reasons. >> watch out >> what you hear is the saudis and so the only capacity out there on the world and even they don't have that much between where they are right now and what they can actually get to. do you agree

>> i agree and also the saudi arabia ipo is back on as we learned from brian sullivan's interview yesterday. i say to myself, wait a second, not a lot of spare supplies. most porimportantly there is noa lot of planned drilling in 2019. where are the new reserves coming from that can be exploited? this is a real concern because almost everybody is dropping the ball. there is really little drilling and there it has not been paid off. >> guys, we'll watch the u.n. obviously, watch energy and a lot more to talk about including michael kors buying versace and snap is partnering with amazon take a look at the premarket, more "squawk on the street" live from post nine when we return. so no matter what you trade, or where you trade,

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michael kors is buying versace for nearly $2 billion. some folks are saying it is a deal that's expensive. >> correct you saw the drop in share prices i talked to john idle, the ceo, the new company is named after

the island, going for a luxury flare there. he says what stands out and what's exciting is that we build a luxury group in a year on top of the versace deal. last year they bought jimmy choo for $1.3 billion >> this is her singular passion. we did talk about the multiples. i referenced the soft price yesterday. he says if you look at it, it is at the luxury goods multiples. the company did provide some information on that front. versace is profitable. not very but it is profitable. their store sales are very strong right now and he says just look at what we have done to jimmy choo. things are going better than anticipated. he also says we have a clear

understanding of luxury, this is in accusation of a time where we do not need to fix the company or addressing concernis that are out there that versace is in need a turn around a lot of these european fashion houses have not been there he sees that as an opportunity and a big growth opportunity is in accessories and in shoes. they're building the next store. >> apparel is amazing when you look at -- and kate spade and now kors >> so now they have three. they have choo and they have versace. there were some criticism yesterday that kors was more an affordable price tag point kors has a luxury line as well

they do have some experience of luxury and kors is positioning itself now as the luxury version of the european conglomerate verses tapestry which is a little bit lower price point their brands right now, coach and kate spade >> 43.5 in cash. >> yes >> these are big. >> i toldtally agree with sara. that worked when they're able toll get calvin klein under the same group as tommy hilfigure. sonic can have a big move last

quarter. i got to tell you, these kinds of deals inspired brands these are the kind of deals that make you say wait a second, i don't know if i want to sell stocks i don't want to sell stocks and f forgetting of this kind of take over for a company that's frankly not 22 not that long ago. >> what a home run >> there is always that but you know jim, it only takes a few minutes for people to come back with heighten corporate risk appetite and a sign of maturing economic cycle and running out of ideas for growth. >> we are not going to be able to tell, inspired brands are not public they operate rb and buffalo wild wings and rusty taco, i am not familiar with that >> david, david. >> it is a house of brands you would not go to.

>> it is a true statement, it is a house of brapnds il would notg to that's true. pandora and sirius, that did not look so good from a take out perspective. >> pandora was five and six. if you look at where sonic was, come on, that was a couple of sales, boom, you get a deal. these are terminals. if you were short sonic thinking you had to go back, it is a real bad day. not as bad as you are short tilray this morning. i am just saying you keep on getting ways to win. a better than expected dividend boo boost. i keep on finding things to like and system quits >> you got facebook being negative and nothing is new there. it is aiming on fang, although i see it today that square should

make it fang i am calling it, take overs are back david, did you see comcast is not down today >> well, we still got six minutes to go before the opening bell, jim. we'll have your "mad dash" by the way, we'll see >> sonic is going to open in about 10 to the hour, 9:50 we got shake hack up ♪ in t shack up ine feel that? that's the beat of global markets, market let's take a look at the market, "squawk on the street" is back in a minute. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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dash." >> this company's stock is about 25% this year. >> what $950 billion company is dramatically under value, jeffery says it is amazon. they did a deep dive, not a shallow dive not any sort of belly flop a deep dive. some of the parts upside to 3,000 by 2020. david, that's like tomorrow. >> that's soon >> yeah. >> wow >> absolutely. and a lot of it, david, is amazon web services and people seem to miss understand tha that -- that's what people talk about here they don't care about, they're not focused on jack ryan, the movie. they're not focused on amazon prime and amazon web services being so far ahead that's worse along withadvertising.

it is not being reflected in the stock. david, what can i say the rich gets richer. >> they do indeed. as does mr. bezos some where around $160 billion net worth. >> they got to be putting a multiple on that i realize his growth rate is incredible >> still >> david, no the deep dive is 46% >> okay. >> stop with the hyperbole, okay >> yes >> on a much smaller scale snapchat has a new partnership with amazon where you can point your camera at a product, a bottle of shampoo and pair of shoes and find out how much it is selling for on amazon snapchat is up 3% in the markets.

>> i was going to point any camera at their stocks and say i see 9 bucks. >> the opening bell. s&p at the realtime exchange we'll keep our eyes on snapchat and amazon >> other story regarding google today, essentially friday, meet with lawmakers and potentially make an appearance before a house committee. this is according to the washington post. we talked a lot about why they skipped that congressional hearing, that senate hearing of the earlier part of the month. >> all right, so i thought this was significant. david and i were talking last week whether it is a big mistake that they sent they got the big one, i think

what we have to do is recognize that google miss judged initially and sending one that was not at the top really did not have an interest ofinquiry. i am concerned that twitter by the way, why is that stock going down are comparisons hard this quarter? i think it is difficult. we know facebook blows, they're well-documented anywhere >> a name we did not discuss yesterday was ge which is down yet again and down another 1.5% this morning it hit another new multi year low yesterday. that's all you can think about when you see this stuff and price target is coming to reality and unfortunate as that is to ge shareholders. >> yeah, this is really one of

those stories where we keep on getting it he actually broke the story. he broke the story about the turbin problem and you hardly see an analyst break the story and the news catch up with what the analysts are doing this fella tusa, for a while i thought it was m-- it is one of those movies where he's clint eastwood i really find this is a remarkable deep dive there there is a real deep dive by an analyst at jp morgan david, jp morgan should be wanting the business but they don't care >> good at jamie dimon, he does not look at this stuff anymore, he's busy trying to help with the inner state. >> jim, you had great stuff with dimon yesterday, i thought it was interesting people watched the video both in the afternoon

and in this evening. jamie dimon repeated his statement that he won't be running for president. we don't doubt that. given how close they came after his conflict with president trump. the headline a lot of people pay attention to of this line about being 25 years before big bankers are for given and his words of a lot of the policy relief comes to smaller banks as oppose to big banks and his comments about trump, take a look at that >> have yi have not spoken to te president. i should not have yap like that and some of you mention on tv. i want to focus on policies. let's just focus on policies, i should not be taking shots or having jokes at any one's expense. >> would you put this in the case that say, london whale where you said it is the stupidest and most embarrassing

situation, is this right up in there? >> no, i say a lot of stupid things in my life. >> jim, what did you find the most thoughtful? >> every time i want to talk about the interest of jump, jd comes back and focus on the shareholder value, when i talk about whether he'll run or ponder it, no. he kept oncoming back with policies it was almost saying listen if politicians are listening, understand that corporate america has taken the mantle they grabbed and they're going to change people's lives as government spends all the time just yapping i think he left a distinct, let's say policy way of view corporations, not like benoiff, a couple of years down the road it is going to help everybody.

jamie dimon is a banker. he did say the bad taste of ten years ago is with him. he did not shywants to make edua again. i thought it was significant >> his response to and answers being that i said a lot of stupid things in my life i think that points to his strengths if he did one go out on a stump he has a genuineness to him that i think some people really connect to, even when it comes to calling himself out >> of course, they lost so much money at jp morgan i said something wrong, whatever he said he has done stupid things you don't hear anybody in business saying they did stupid things, interestingly enough, his bank is the biggest bank and

the most successful bank what are other guys doing? really stupid things or dumb things this man is winning. it is a winning thing. >> comcast is no long erwer wing jim. it is down it is down of a third of a percent this morning after a significant decline yesterday after of course winning the bidding for sky with a very significant bid, one thatvalue the company at some 15 times since 2019 estimated ibita disney is up again as it was yesterday. staying on the mma front, i asked you about this earlier, sirius shares are down again after they announced the deal acquiring pandora.

they lost as much in market cap as i think pandora is worth than it had the effect of knocking down pandora's stock on the day yesterday. it unveiled a deal that was initially a premium. you can see pandora is up ever so slightly this morning not a great first day of trading. > >> no. when i went to research this morning and all of second day. let's ponder this. the reflection was this. comcast because their core business was lagging so they had to spend a lot of money doing this in both cases, it is the common place narrative because these people feel they over paid if they over paid it is because they had no faith in their business cable was having a renaissance, that's the one way to look at it i know european take over, i am sorry, let's to say you can't really defend yourself

we are back. i think comcast is worth watching i think disney is going back to 120. the espn plus story was overlooked if they tender, david, don't they make a ton of money. >> yeah. >> yeah. they do. 15 bills would help them, not to mention they'll be selling the rsns and they got to figure out a way potentially of a gain or hulu if they want to >> it pays a lot of rnd. >> your call about nfl ratings is proving itself. sunday night football, second consecutive week of double digit rating increases is the best week of threes since 2015. we'll see if that continues as the season progresses. that was pretty impressive >> i think a lot of these are more parody than we have seen. a lot of the teams have dominated and seems to be

fading i know i should not be talking about football what it requires is other teams winning the new england patriots and that's what's happening >> automaker is not having a good day gm and ford is down a percent and bmw and auto -- as the car business is not getting any favors from global policy. >> no. sometimes i feel like they're making excuses, we see over and over again, when you see autozone conference call, you keep on hearing the same narrati narrative. that story line is people are not buying new cars. they're buying used cars they feel sticker shock with new cars and there is a whole cohearth of these crazy millennials, they don't live for what we did in five years, as

soon as you have $5 in your pocket, you borrow money and you buy a car. the auto-loan boom, that autozone -- autocars are ruling. i think they can blame it on trade tensions and what's really at work is there are too many cars being built and time for them to ratchet back there is still a lot of demands. i need phil lebeau to stop blaming trade tariffs and start talking about a secular change in auto buy. >> guyguys, before we get to otr people here. facebook is down on a little 2% on the departure of two founders of instagram, concerns of what it is going to mean for others at the company and creativity. as jim referenced that stock is down and sonic, we are still waiting for an open on that news that we got during the show

that's going to be acquired of a $43 billion deal that does include debts. this is by inspired brand that's apart of roark they already owned buffalo wild wings and something called rusty taco hopefully there is no rusty nails in the taco. it is a weird name, what can i tell you >> david, can i say something? >> yes, jim. >> if tacos are not rusty, we go for fresh and natural. maybe we are throw backs >> maybe so. >> given all the roll ups that's happening in food and coffee, the starbucks memo by kevin johnson talking about reordering potential layoffs and having to move faster makes a lot of sense. >> my background check with

starbuck starbucks, this is about innovati innovation this is about kevin johnson. that's johnson buying stock back as it goes up. the next quarter is going to be good what's happening is kevin johnson is doing the right thing which is about technology and not meeting as many people to put out a cup of coffee. all the restaurants are running and all the retails are running, there is a new theme retails have been kept down because of trade talks every time some groups get hammered, buyers come in >> jim, what about oil prices moving up and your idea that they're going to move up substantially in here and prices at the pump becoming higher and does it crimp the consumer everyday and perhaps they're cutting back that cup of coffee from starbucks or should we not see that correlation there

>> it is getting expensive i am -- here is what i am saying i will once again refer to phil lebeau what you are getting in cars, don't use as much gasoline we need to hear from visa and mastercard, they got the best, i wish visa would come on. it is a $300 billion company they got the best reid on thad t every time oil goes up, the market tends the like it we do not have that thesis today. it is a rolling thesis and keeps on rolling and rolling >> all right, jim. >> dow is up 67. >> i am rolling. i am here. i am with you. >> let's roll to the bond pit and check in with the rick santelli at the cme group in chicago. good morning rick. >> well, it is a fascinating day. one week short of tens, you see

the high yield today yes. 311 sounds familiar. a high yield close of the year that was not made. let's roll it back if we take it out, we'll be comping towards june of 2011 take it back to 2008, the 10-yr chart, you can see this pattern is all about the upside from a trader's perspective the only issue is how fast and how far and when as for overseas, a bit of the same picture, maybe in motion. let's look at what's going on with the two-yr, looking at it right now, the trade is as high as minus 50 or everyonen a litte higher the chart shows you, let's go back to 2016, the highs this year minus 49. if we take it out, we'll be copying the may of 2016. if you look at the 10-yr bund

and year to date chart and 60 years basis point, it is hovering since may their yield curve has had some serious movement the last topic, the euro verses the dollar getting close to 118. many traders would consider that a b a big psychological barrier. carl, jim, david, back to you. thank you, rick. rick santelli, walmart's leading the dow, intel is the biggest lagger let's check in with seema mody on the floor the market is trying to make a come back after a nearly 200 drop in the dow yesterday. that was its worse daily drop in more than a month. take a look at financial ten-yr yield. the banking stock is looking to get a bounce here and getting a

bit of a lift today. the market is widely anticipating a third rate hike this year. the other big topic is energy. oil prices with brent crew above four-year high and crude prices are getting a boost of oil stocks, chevron and exxon and devon energy all this while we digest the latest trade headlines with south korea and expecting talks to continue with the japanese. the biggest question what it means for trade talks over night, beijing can't negotiate while the united states holds a knife to its neck. our emerging markets rebounding nearly 2%, just in the past week, that's due to these resumed trade talks and a weaker dollar morgan stanley is removing its bearish call its president, lewis caputo resigning after four months on

the job, you can see the peso is down more than 2.5%. stocks, we have earnings from nike of the best performing. katy holmes is a good name to watch of what we have been seeing today at shiller home prices >> seema, thank you. >> the president is expected to address the u.n. general assembly wti have 72.48 now and the dow is up 48 back in a moment don't forget that the past can speak to the future. ♪ ♪ i'm going to be your substitute teacher. don't assume the substitute teacher has nothing to offer... same goes for a neighborhood. don't forget that friendships

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with unprecedented wireless capacity that will not only allow for phones to be connected, but almost everything-- transforming how we all live, once again. (bob barnett) as you know, this call today is the first call that we've made on the cellular system. shares of sonic just opened a new seconds ago. big 20% gain as they will be acquired by aspire brands. >> trading above the price we should point out not sure what that is about. >> 43.50 >> yeah. so i guess there is some sort on of expectation that maybe this

is not done. we'll take a look. >> jim, thoughts on that price >> that is strange i mean, i'm trying to figure out -- i don't get that. i certainly -- that is surprising it is a nice full bid given how much the stock was just a year ago. even sooner. no, i'm baffled by that. i just really am baffled and i don't like being baffled got to make some calls like david is in the middle of the show like let me make some calls. i get calls from dwayne reed during the show. >> i get those too inspire if you are not aware as we said earlier owns 4700 arby's, buffalo wildwings and -- >> and rusty taco. >> i think we've gone years without mentioning rusty taco until today. >> passionate about all food but

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let's get to jim >> the piece i referenced at the top of the show, adding an s to faangs, talking about square which is jack dorsey's company happen i h i had sarah fryer on last week square is using a $125 price target that is the fastest growth of any of the companies that i follow in the universe of tech the thing can't be kept down and i agree with the 125 target. >> all right you got benny on from dream force this even and again tonight? >> yeah, why not mark benioff, "time" owner, the man who created one of the fastest growing companies, first $21 billion in rev that they will be doing. i think it is a remarkable story

and it is a language now when you ask people coming out of college do you speak sales force, they know you have to you can't get a big job in tech without speaking sales force >> and your big week continues out west can't wait for more. we'll see you on "power lunch" and "mad money." when we come back, the president addressing the u.n. general assembly we'll bring th tato you live with the dow up 50

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a live shot of the u.n. general assembly where the president is getting ready to address the world as delegates from 193 countries gather in new york city. we do expect the president to speak specifically about iran and the nuclear program. he has already tweeted that he has no plans to meet president rouhani, although he did add i'm sure he is a lovely man. welcome back to "squawk on the street." live at the new york stock exchange dow got a nice start now holding on to about a 38 point gain s&p up about 1 1/2

a busy day as we also watch continued relahetoric regardingh china trade tensions fed meeting tomorrow and we'll keep our eye on rosenstein's future and of course founders of instragram and pressure on facebook today first let's get to rick santelli at the cme >> morning our richmond read for september moved up smartly to 29 we're expecting 18 to 20 and sequentially that follows 24 for the money ball numbers, september read on consumer confidence from the conference board, 138.4 now, i have to savor this. i always like big numbers. the last number that this follows is 133.4, that was the best since 2000. and that was upgraded to 134.7 so we'll have to go back quite a ways to see where 138 stacks up and survey says that is the best number since september of 2000

september of 2000. let's call it 18 years if we look at the present situation, that is 173, that is also higher than expected. and expectations, 115.3. no surprise those variables are strong as well we will look to see if that number could push us over the 311 currently the high yield close to the year in u.s. ten year back to you. >> thank you very much, rick meantime breaking news out of treasury, elon is in washington for for that >> the treasury department taking new action to freeze the assets of venezuela's first lady and other key members of made to did your row maduro's inner circle. a private jet here in the u.s. is owned by a man accused of acting as an illegal front treasury has been trying to isolate the maduro regime.

secretary promising to impose a financial toll >> thank you for that development out of the treasury department so a year after president trump's rocket man speech to the united nations, he is back at the general assembly and he will be addressing the world. and i man jeamon javers is live general as is sembly with more i can't remember the last time there was this much excitement, but this is the drama that comes with the trump administration. >> reporter: yeah, absolutely. because this is the president's second time at the u.n. general assembly, i think world leaders and diplomats have a better sense of his style than they did last year. but that said, we're told that the president will be talking about american sovereignty today, he will suggest that the united states owns its own sovereignty and also expects that other countries will excerpt their sovereignty too

and the u.s. will respect that it is all part of the america first agenda and white house officials will tell you that america first doesn't mean america alone necessarily. but you can expect that the world leaders here today will be watching for any nuance in the president's remarks which should come this hour meanwhile the president has been tweeting today about all of this he spent the night at trump tower last night he tweeted this morning despite requests, i have no plans to meet rouhani maybe some day in the future i'm sure he is an absolutely lovely man than any ten rouhani saying tha doesn't plan to meet with president trump either so that ends the speculation of would there be a meeting good the two, but things can change, so we'll keep an eye out for all of that. >> on the plus side, he comes there with what appears to be much improved relations with the

north koreans which were the top target last year do you you expect to see our allies backing us on this? how will that all play out especially with that new south korean trade pact announced yesterday? >> reporter: i think one of the things that people will be looking at in terms of north korea is the president to put a little more meat on the bones of what he said yesterday he hinted that there is another summit possible at some point in the future with kim jung-un of north korea. the question is whether we anymore detail about that today, when could that happen, what would the conditions be for such a meeting and what the expected outcome, all of that i think is what people will be looking for here today in terms of north korea. the administration has acknowledged denuclearization hasn't gone as quickly as they had hoped. so now the question is what can they do to keep that ball rolling forward, not to have a diplomatic stand over on the korean peninsula >> we'll see what the president says in a few moments. thank you very much.

investors are not only keeping a close eye on the president's address, the on the ongoing trade tensions with china. peter navarro talked to us yesterday on the closing bell, talked about the impact on the markets right after the president signed that south korean trade pankt listen >> sometimes it creates a little volatility on the stock markets because the president takes rightly strong trade positions, but as you see today these are the fruits of that strategy. and again, if you are a market investor, i think what you should see is a bullish move towards a structural realignment of a global economy more towards the kind of free trade, free and fair trade, that will make everybody prosper. >> joining us now from morgan stanley, and also the head of equities michael, do you agree with mr. navarro that investors think

this is a bullish sign that the president's trade tactics and negotiations are working should investors be comforted? >> well, it is really just one situation out of many kind of hot trade situations throughout the world. korea, nafta, europe and the strategy working one isn't necessarily going to work this another place the issue you with regard to how the u.s. and china are relating to one another is that there is a much bigger fundamental impasse. they view the fair trade relationship differently and until that is resolved, there is plenty of room and scope for escalation so the $200 billion products being tariffed, we think that is just the nibble stages we think u.s. will tariff all of the imports and china as well and think that that will excerpt a decent amount of pressure on the market in 2019 and we stafiy

chains >> so is that in the market, and if not, what do you do if that is a risk? >> it is in the market, but not completely in the market and what we would at usa would say is that what the administration needs to be cognizant of is the fact that china is very, very important in the global supply chain, particularly for technology. and the trade negotiations create a lot of uncertainty. there is risk to sales, risks to costs. but we have gone to a globalized world where supply chains are global and we don't really know what happens when you get the so-called free and fair trade and you have to unwind some of those supply chains, what is the ultimate impact on the economy, global economy and companies but certainly from an investor standpoint going to make them nervous ball create uncertainty. >> mike, on the flip side, with

the south korean negotiations showed us that -- i mean, they said that there were a lot of significant changes, but this was all negotiated in a matter of months. it came together very quickly. can investors not look at that as a template at least for nafta, especially the trade negotiations with canada which are also already in place? >> it is similar in the sense that you are negotiating with an ally, so there is more at stark than just an economic relationship and we happen to think that the nafta negotiations won't lead to nafta breaking up. so that is good news on the margins. but the point on supply chains i think is the right one even if the u.s. is just focusing on china and not having a problem with korea or nafta, being on delay with trade tensions with europe, it allows the u.s. to more forcefully pursue its trade strategy with chooir and china. and when the tariffs start kicking in, we'll really see the

full force of them a lot these trade impacts on supply chains and consumer prices have been hypothetical up until now. china will be a live exercise in all of this. >> john, we have a fed meeting with a decision out tomorrow is it woritsom worrisome that ts hikes interest rates >> well, right now we said say that that is okay because the environment in the u.s., the economy, is very constructive. you've got strong labor market, hiring, wage xwlogrowth, the tal wind, fiscal stimulus, lower tax cut. so i think raising rates fine in september, fine in december. the real question is what happens next year if we still don't have a resolution on the trade front particularly with china, does that ultimately lead

to uncertainty start to seek back on the u.s. and does the fed then have to take that into account. because it really only wants to look at things from a domestic lens >> which sort of raises the question as to how long the trade fight with china is going to last how any change that may happen in congress as a result of the midterm elections would affect the u.s./china trade fight. what are your thoughts on that >> how long it lasts i can't put an end date on it, but you there are a potential circuit breakers and most are pretty far off if the democrats are able to take control of congress, that doesn't obviously suggest that congress will intervene and try to take some of the trade powers away from the u.s. to deal more constructively with china. it probably takes pretty clear evidence from the economy particularly the agricultural economy before you get that political feedback loop. so most likely the markets intervene. we know the administration is

pretty sensitive to the stock market as a scoreboard and so that is not much solace to an investor just because the trade war might not go on infinitely and we don't think that this is going to be something that ends the way you have with smoot/hawley or something much more severe. but in the meantime the market has to intervene or you have to see at least some economic weakness before the u.s. is going to change its approach or china will change its approach >> john, can you get more specific in terms of how you're allocating your money over there as a result of some of the trade tensions do you stay away from industrials, is it still prudent to go into small caps? what do you like >> well, i would say that there are increasing opportunities you mentioned industrials. there are increased stunts in semi conductors. but one area that we think is cyclically exposed is in the energy space and we don't mean commodity oil, we nimean the energy stocks.

and we think that the reason we like energy is not because of demand, we think the global economy will be super strong we like the global economy but takes supply, that supply is not growing to keep up with demand and that will help over time energy stocks, particularly ones that are returning free cash flow there are some enps, some large integrateds, and that is one area that we are looking at. a defensive area we think the health care stocks have been beaten down and are generating nice free cash flows so many of the pharmaceuticals and med tech stocks look more interesting. >> got it, guys. thank you both as we watch this shot of trump's

motorcade going by in new york city waiting for his arrival at the u.n. general assembly, which it looks like he is running a little late. >> yeah, although he doesn't have to deal with traffic the way we all do. was he staying at trump tower? i assume so. kind of convenient to stay at home that is not everyone far from the u.n. and there he is arriving right now as you look at a live shot president trump arriving, of course he will be speaking to the general assembly of the united nations shortly >> and it comes at a time where we've had confrontation with china, we're in the middle of the trade fight, in a fight with some of our ale lies like canada and germany. we've had this confrontation with turkey. but improved relations with south korea coming off the signed trade pact and north korea as well. a little different tone than when he threatened to totally destroy north korea in the speech at this time last year. >> the theme we expect to hear today is about the word

sovereignty. i counted the number of times he said is sovereignty last year in his address, 20 times. and of course he pulled out of the council on human rights. he has talked about exiting the wto. so multilateral institutions have had quite a year under this administration obviously sarah talks about the tensions with china over trade but it will be interesting to see how he varies in tone from last year. by the way, the north korean tensions -- let's take a listen. >> iran has to change its tune before i meet with them. they want to meet. i'm not meeting with them until they change their tune it will happen i believe they have no choice. we look forward to having a great relationship with iran, but it won't happen now.

[ inaudible question ] >> we're in the process of setting up a meeting with north korea. chairman kim has been dealing with us. we have made tremendous progress, far grartd than tgreaa would understand or know it has been a really good relationship as you know, there have been no nuclear tests, no rockets, no missile launches and we got our hostages back we are getting the remains of our great heros back that has already started, that process. and many more are coming in the short future so we're doing very well with north korea. again, far greater than anybody would know i have much personal correspondence with chairman kim. and we will -- i think we'll do something that is good for chairman kim and good for north korea and the rest of the world.

[ inaudible question ] >> i'm meeting with rod rosenstein on thursday today i'm doing other things as you probably are aware [ inaudible question ] >> venezuela is a very sad case. and we want to see it fixed. what is happening there is a human tragedy. okay thank you very much. >> the president with breaief remarks to reporters ahead of his address. you don't have to look hard at the difference in strategy when it comes to dealing with north korea versus iran. two countries that were both lumped in the same group, but curious to see whether or not he is trying to use the example of his relations with kim now to show rouhani what is possible. we don't know what their

calculus is. >> and search the economic pressure is there. iran's economy has fallen apart on the back of the sanctions, either currency has collapsed. and this is what trump does, inflict the economic pain on other countries to bring them to the table to negotiate it will be unclear whether he mentions iran like he did north korea in the formal address to the general assembly which was very confrontational and sort of broke with a lot of precedent and tradition, totally destroy north korea, rocket man, will he direct that kind of hostility to iran that is one thing of course we'll be looking for >> and no shortage of hard liners in the cabinet and amongst his advisers john bolton coming out of the car with him as well long time view point of iran certainly a key adversary. so we'll see but you do your point, we have gone a very different direction in the year since the speech where he took direct aim at north korea. >> by the way, west texas now

72.68 as brent got awfully close to 82 this morning four year high, probably surpassed that by now. eamon javers, i don't know if you were able to hear the president speaking to reporters, but definitely raising the curtain on what he will say in the next hour. >> reporter: yeah, i think that is a tough line there with the president. we weren't able to hear the comments from here, but we're told the president said they want to meet but i'm not meeting with them until they change their tune i think it will happen that goes back to what we said earlier, both sides have said that the meeting is not happening. now the president saying he thinks that it will happen so apparently there is some diplomacy moving behind the scenes even though both sides have sort of walked away from that meeting sometimes everybody has to walk away before you can come together and that might be what is happening here. so i think everybody at the united nations will be watching to see if that meeting takes place. and if so, what comes of it. because there has been bellicose rhetoric on both sides in terms

of iranian oil and sanctions a lot of flash points in that relationship >> and one key difference though between iran and north korea is that when president trump went hard line after north korea last time, he had the backing of all of our allies and the entire world. and certainly with iran as well. but it is a little different because the europeans were not in favor of the withdrawing from the iran deal and are not necessarily in favor of no longer trading and doing business there what is the latest on whether the europeans are backing the u.s. and president trump in his mission? >> reporter: well, i think that's right, there are different points with the europeans and the united states. europeans do more business with iran they benefit from iranian oil more than the united states does of course. so there are areas in which the europeans are more interested in continuing to develop a business relationship with the iranians than surgery the trump administration is. although american businesses might want to get in if they can into their iranian market.

ultimately though, i think there is less tension here with the u.s. and iran this year than there was between the united states and north korea last year you have this moment with north korea last year where people really felt like the two countries might be on the verge of a war you don't necessarily feel that on the surface here with iran. but we'll watch the diplomatic ca dance and see how it goes. >> and meantime lighthizer ustr says that there is a fair amount ever distance from the u.s. and canada in trade talks. remember when we were going crazy over u.s./canada and it got buried by other stories. >> yeah, it appeared that they had a very near term deadline and then only things got pushed back and now we hear that there is a significant amount of daylight maybe we just end up with mexico >> the market doesn't seem to react on the idea that it has to get done there is too much at stake on both sides especially for canada with three quarters of its exports coming

to this country. and lighthizer says that the u.s./mexico pact is highest standard accord ever, so this is their tactic of sort of pressuring canada by saying we're going forward with mexico either way >> weighing in on all of this we hope, long time silicon valley figure john chambers, of course he now runs his venture firm has a new book out today, "connecting the dots, leadership lessons in a startup world." i can't wait to read it. welcome back >> it is a pleasure to be here with you again >> what i always loved about your quarterly calls was your ability to shine a light on psychology and sentiment of customers especially we just got an incredible conference board member. in the face of all of this that we're talking about, how locompn co-exist? i'm the optimist

we all agree that the economy is strong and i now see it from the startups around the world. and if you look at the future of the economy, i think that you will be based upon how startups do in this country and india, china and in europe, and it is interesting that many countries are moving ahead very rapidly. and the focus of the book is how do you get startups going because that is where all job creation will occur, where innovation will occur, where inclusion will occur by geography and gender and also gdp growth so i'd like our country to be very aggressive. we talked about it last time >> and you are very strong on this point and surprisingly so to some because you seem to indicate that we are far behind it is hard to imagine we could be far behind given silicon valley is still united states. >> yes, but only one of three major startup areas in the country. startups this year, ipos will probably be about 230 on the

nasdaq and new york stock exchange that sounds good versus last year it is nowhere near the pace of the 1990s when we did a peak of 700. so if you are looking at job be creation in the future, it will be all from small companies. inventive things, artificial intelligence the large companies will not add. so i think it is important that we don't lose track. i think that we'll work through trade including with china i think that we need to turn our focus on how do we get the startup nation going again last time we talked about the u.s. not even in the top ten in innovation what i try to do in that book is talk about disruption. and disruption could occur in a west virginia, in a boston 128, it could occur in silicon valley but what gets you into trouble is when you don't change so how do we become a startup nation again and realize countries like france are growing at five times the number

where they used to be. let's get it back in the u.s. and make that a national priority >> and going back to china for a moment and your long experience there, it is an important market for cisco. why are you and others optimistic given what is only increasing rhetoric and also in position of significant tariff >> it is important to remember that i only talk for myself today. i had the honor to get to know china in ways that very few people do. i've seen all these transitions. i've seen the movie so many times. main frames to mini execucomputo pcle and the internet. back in late 1980s, we did a big bet on china, first big bet i made as a ceo. early on the relationship between china and the u.s. was a very healthy but a win/win

mentality, but tough negotiations the last ten years, it has deteriorated so i think that it is important to get this back to a win/win a narrow it is in china's best interests to do that and the u.s. best interests. and we'll probably have to go through a little bit of pain, but i'm optimistic on this and i think it is very practical as long as neither side overreacts. >> get where, a trade balance, to promises not to steal technology what is the there? >> i think that you have nailed the real issue henry kissinger i talk to regularly and i miss shimon per peres, they would always remind me what is the interest in both sides. i think it is very important as the u.s. puts pressure on these country to say let's find a win/win relationship to say what does there mean. in other words, once a country gets ready to move, we have to be able to articulate here is the win for us and here is the

win for you. and i think getting back to that win/win scenario is so important. i'm a huge believer in global trade. i think it increases sdarnd tanf referring around the world but the u.s. needs a more fair trade position than we have in the past >> and as we await president trump's address, as a businessman, do you worry at all about the long terminate of our diplomatic relations >> i think a strong u.s. and an economically strong u.s. is in the best interests of the entire world. i think that a it is important that we are viewed as a leader in the free world in businesses and a country who creates a win/win scenario so i'd like to see us focus more on how do we get that win/win back and i do think it is around startups i think president trump and prime minister modi as an example did a very good example on that in how we work together. and i was a part of advising on that in terms of tmodi

administration i saw what happened in india and do you get the startups going well and i think what is happening, and this is where i would move beyond the symptoms, technology every country in the world will become a technology country. every business regardless of size will become a technology company. and startups is where the job creation occurs. so if we become a startup nation again and how every company makes this transition, then i think that we are in position to grow productivity and uniformly throughout the u.s my worry is that the growth now is too much on the east coast and -- sorry, northeast and west coast. how do we bring this throughout the central united states and southeast. i'll be announcing in another month i have a tight relationship with west virginia as a startup university, with startups and venture capital there. i think if you are trying to bring startups trout throughouse

central and southeast, it has to be centered around universities. you have to have the courage to take risk. and that is what i talk about in the book, how do you have the courage to be bold people often say perhaps i took on too much. >> at cisco? >> at cisco. and i think i should have taken on more. >> and on that subject of taking on risk, innovation, i'd love to get your take on the news late yesterday founders of instragram, incredibly successful business, are leaving facebook how important is a departure like that for people at a company and how have you advised management to deal with something like that? >> first of all, the majority of acquisitions and high tech fail. and this is as important as we go into the next generation. as every automobile a company, every financial company becomes a tech company and your key on successful acquisitions is does it match to your strategy and does the strategy of the company you acquire add dramatic value to that instragram clearly did

leaders, it often occurs probably at a 20% turnover per year of the a being chobeing acd companies, the engineers apz ndp leaders leave. the fact they stayed for six years was positive it does not surprise me that they are moving on to the next thi thing. we saw you that at cisco we bought a company with $100 million in revenue and in just a couple years, it was $2 billion. so your key is to keep the founders, get the transition in. so i think after six years, not a big thing. at tratrition rate should run in single digits. if you see it running at o20%, that is a problem. but founders leaving after six years, i think that is normal. >> and tech crunch had numbers yesterday that '18 will be a record for corporate vc investing. which is good news if they want to be bold

others say it connotes sort of heightened risk appetite, a late cycle sign for example in the economic cycle i assume we know what you think it is. >> well, it is n between. i think what you are seeing, large cooperates are desperate for innovation and almost all the young people out of stanford, m.i.t., carnegie mellon, polytechnic are going to startups. 70% to 80% are going there used to want to go to government in france or the big speaker price enterprise. now they are going to startups so they will have to partner in a way that they have never done before and they don't know how do it well so they are learning how to make investments and show enough love and not so much that they kill you. and design on a 50/50 strategic partnership with a company how do you design the future

architecture for unmanned aircraft in this country so you are seeing the most progressive large companies say we know we're not moving fast enough, we have to do it differently. i think it is healthy that they are beginning to learn and i think the venture start jump world in technology is a great place to be. for your readers if you read this book, evalue jat staeight s as well. >> i think it was steve case said he thought silicon valley had peaked because the flow of capital is leaving that focused area of california and moving to other parts of the country >> it will be a challenge because but your numbers80% of capital used to go into the u.s. sorry, 90% 20 years ago. today it is 50%. so you are now looking at less money going into not just the u.s., but the valley as a whole. i think that is not bad.

i think getting it more balanced across the u.s. is important i worry how many unicorns do we have going from 61% to 41% today. and how much new startups do we have, a 20 year low just two years ago. if you are going to destroy 20% to 40% of the jobs today on digitization and artificial intelligence, we have to generate 40 million new jobs in the next ten years >> the book is called "connecting the dots." john chambers, thank you >> does it come with the correct ket -- crickets >> you can have that and this will get announced in about a week, the one secure phone, just slide your iphone right into it, you can't access your e-mails remotely. video or the voice something to talk about in the future company with 17 people, on its

way to be 100. >> we know that you'll be back to discuss it. >> and the crickets, i bought for you. >> like you are on a sales call. thanks we are waiting the president at the u.n. general assembly john harwood is with us to talk about what we could expect in the next few moments morning, john. >> good morning. much different context for the president's remarks to the u.n. general assembly today than a year ago you remember a year ago, he went off on the north korean leader as "rocket man." now he and kim jung-un are allies in trying to forge some sort of agreement. they had a summit a few months ago which didn't produce anything obviously tangible, but both leaders have talked about the potential for it and now the president says there may be another one but i expect the focus will be on iran and nuclear

nonproliferation and the president will chair a meeting of the security council tomorrow, talk about that issue. we can expect that he will talk about it in his address. but you've got an iranian president who president trump says i won't meet with, i've been requested to, who says that the only way that he wants to resume negotiations with the president is if the president reverses himself on the iran nuclear deal and our allies, britain, france, germany, china, russia, have taken the opposite position of president trump. they have remained in the deal and in fact last night they came up with an arrangement to try to circumvent u.s. sanctions. so the president is at odds with some of our leading allies on that issue which is going to be a big subject of his remarks >> yeah, john, that got a lot of attention overnight and this morning, the degree to which certain european countries, partners we used to call them, i guess we still can, are making

it perhaps easier for companies based in europe to continue to do business with iran. would you argue it is a sign ever fraying relations with europe as a whole and this is one of the consequences? >> no question about it. and we've seen this on a number of fronts. the president has also escalated trade conflict with china. of western world and industrial democracies is to have a unified front, but the president is also not just on the iran nuclear deal but tariffs, steel and aluminum tariffs gotten into a conflict with the european union, our allies there, gotten into conflict with canada. he is negotiating close to some sort of agreement with mexico to update nafta, but he only has authority to negotiate a three country deal with nafta, and

canada so far is not there, so yes. he has strained relations with our allies, and that makes dealing with iran or china more difficult. >> john, yesterday at council on foreign relations in new york christian freeland was saying we observe americans and talking about regular people, people that vote are starting to say you know what, maybe that mantle of leadership is too heavy for us, maybe we're not so ready to keep on doing it, suggesting that america is somehow seeding the mantle of global leadership. that probably doesn't make it easier to get a trade deal done. >> definitely not. in the characteristics that freeland was referring to, we're seeing it across europe, rise of nativism, nationalism, populism in some european countries as backlash to globalization, to

immigration growth across border all common to industrial democracies, and president trump reflects that like the brexit referendum did though that's having trouble in implementation, now president trump and the republican party face a potential blue wave in midterm elections in november which could change course. >> john, we've got to say the economic numbers continue to come in strong we just got a blow out consumer confidence president trump saying we are the envy of the world as far as our economy. that has to set the dynamic, give him the leverage on top of the fact we are already the world super power. just wondering how you see the economy and the fact on a relevant basis we are doing well playing into this. >> it is interesting, sara the economy as we talk about it reflected in growth domestic product, in corporate profits,

in stock values, in the unemployment rate is doing very well but one of the challenges is, and this is not a new challenge, not new to the trump administration, it has been true for 40 years, even when the economy does well, it usually has not been a broadly shared prosperity, so voters are unhappy, even though the economy is doing well. >> looks like we're seeing the president take a seat. they're about to announce him and hand over the podium for his speech he is next on deck the president standing up getting ready for the speech let's take it live >> madam president, mr. secretary general world leaders, ambassadors, distinguished delegates, one year ago i stood before you for the first time in this grand

hall i addressed the threats facing our world and i presented a vision to achieve a brighter future for all of humanity today i stand before the united nations general assembly to share the extraordinary progress we've made in less than two years my administration has accomplished more than almost any administration in the history of our country. america, so true didn't expect that reaction. but that's okay. america's economy is booming like never before. since my election we have added $10 trillion in wealth the stock market is at an

all-time high in history, and jobless claims are at a 50 year low. african-american, hispanic american, asian american unemployment have all achieved their lowest levels ever recorded we have added more than 4 million new jobs, including half a million manufacturing jobs we have passed the biggest tax cuts and reforms in american history. we started the construction of a major border wall, and we have greatly strengthened border security we have secured record funding for our military $700 billion this year and $716 billion next year. our military will soon be more powerful than it has ever been before in other words, the united states is stronger, safer, and a

richer country than it was when i assumed office less than two years ago. we are standing up for america and for the american people and we are also standing up for the world. this is great news for our citizens and for peace loving people everywhere. we believe that when nations respect the rights of their neighbors and defend the interests of their people, they can better work together to secure the blessings of safety, prosperity and peace each of us here today is the emissary of a distinct culture, a rich history, and a people bound together by ties of memory, tradition, and the values that make our home lands like nowhere else on earth that is why america will always

choose independence and cooperation over global governance, control, and domination i honor the right of every nation in this room to pursue its own customs, beliefs, and traditions the united states will not tell you how to live or work or worship. we only ask that you honor our sovereignty in return. from warsaw to brussels to tokyo to singapore, it has been my highest honor to represent the united states abroad i have forged close relationships and friendships and strong partnerships with the leaders of many nations in this room and our approach has always yielded incredible change. with support from many countries here today we have engaged with north korea to replace the

specter of conflict with a bold and new push for peace in june i traveled to singapore to meet face to face with north korea's leader, chairman kim jong-un. we had highly productive conversations and meetings and we agreed that it was in both countries' interest to pursue the denuclearization of the korean peninsula since that meeting we have already seen a number of encouraging measures that few could have imagined only a short time ago the missiles and rockets are no longer flying in every direction. nuclear testing has stopped. some military facilities are already being dismantled our hostages have been released, and as promised remains of our

fallen heroes have been brought home i would like to thank chairman kim for his courage and for the steps he has taken, though much work remains to be done. the sanctions will stay in place until denuclearization occurs. i also want to thank the many member states that helped us reach this moment, a moment that's actually far greater than people would understand. far greater. but for also their support and the critical support that we will all need going forward. special thanks to president moon of south korea, prime minister abe of japan, and president xi from china in the middle east, there are

great strides and historic change following my trip to stauaudi arabia last year, they opened a new target for terrorist financing, enforcing new sanctions, working with us to identify and track terrorist networks and taking more responsibility for fighting terrorism and extremism in their own region the uae, saudi arabia, and qatar have pledged billions of dollars to aid the people of syria and yemen and they are pursuing multiple avenues to ending yemen's horrible, horrific civil war. ultimately it is up to the nations of the region to decide what kind of future they want for themselves and their children for that reason the united states is working with the gulf

corporation council, jordan and egypt, to establish a regional strategic alliance so middle eastern nations can advance prosperity, stability, and security across their home region thanks to the united states military and our partnership with many of your nations, i am pleased to report that the blood thirsty killers known as isis have been driven out from the territory they once held in iraq and syria. we will continue to work with friends and allies to deny radical islamic terrorists any funding, territory, or support or any means of infiltrating our borders. the on-going tragedy in syria is heartbreaking. our shared goals must be the

de-escalation of military conflict along with a political solution that honors the will of the syrian people. in this vain, we urge the united nations led peace process be reinvigorated, but rest assured the united states will respond if chemical weapons are deployed by the assad regime. i commend the people of jordan and other neighboring countries for hosting refugees from this very brutal civil war. as we see in jordan, the most compassionate policy is to place refugees as close to their homes as possible, to ease their eventual return to be part of the rebuilding process this approach also stretches finite resources to help far

more people increasing the impact of every dollar spent every solution to the humanitarian crisis in syria must lsz include a strategy to address the brutal regime that fueled and financed it the corrupt dictatorship in iran iran's leaders sew chaos, death and destruction. they do not respect their neighbors or borders or the sovereign rights of nations. instead, iran's leaders plunder the nation's resources to enrich themselves and to spread mayhem across the middle east and far beyond the iranian people are rightly outraged that their leaders have

embezzled billions of dollars from iran's treasury, seized valuable portions of the economy, and looted the people's religious endowments, all to line their own pockets and send their proxies to wage war. not good iran's neighbors have paid a heavy toll for the region's agenda of aggression and expansion. that is why so many kins countr support my decision to withdraw the united states from the horrible 2015 iran nuclear deal and reimpose nuclear sanctions the iran deal was a windfall for iran's leaders in the years since the deal was reached, iran's military budget grew nearly 40%.

the dictatorship used the funds to build nuclear capable missiles, increase internal repression, finance terrorism, and fund havoc and slaughter in syria and yemen. the united states has launched a campaign of economic pressure to deny the regime the funds it needs to advance its bloody agenda last month we began reimposing hard hitting nuclear sanctions that have been lifted under the iran deal. additional sanctions will resume november 5th and more will follow and we are working with countries that import iranian crude oil to cut their purchases substantially. we cannot allow the world's leading sponsor of terrorism to

possess the planet's most dangerous weapons. we cannot allow a regime that chanlts dea chants death to america and threatens israel with annihilation to possess the means to deliver a nuclear war head to any city on earth. just can't do it we ask all nations to isolate iran's regime as long as its aggression continues and we ask all nations to support iran's people as they struggle to reclaim their religious and righteous destiny. this year we also took another significant step forward in the middle east, in recognition of every sovereign state to determine its own capital. i move the u.s. embassy in israel to jerusalem.

the united states is committed to a future of peace and stability in the region, including peace between the israelis and the palestinians. that aim is advanced not harmed by acknowledging the obvious facts. america's policy of principled realism means we will not be held hostage to all dogmas, discredited ideologies, and so-called experts who have been proven wrong over the years time and time again this is true not only in matters of peace but in matters of prosperity we believe that trade must be fair and reciprocal. the united states will not be taken advantage of any longer.

for decades, the united states opened its economy, the largest by far on earth. with few conditions. we allowed foreign goods from all over the world to flow freely across our borders. yet other countries did not grant us fair and reciprocal access to their markets in return even worse, some countries abused their openness to dump their products, subsidize their goods, target our industries, and manipulate their currencies to gain unfair advantage over our country. as a result our trade deficit ballooned to nearly $800 billion a year for this reason we are systematically renegotiating

broken and bad trade deals last month we announced a groundbreaking u.s., mexico trade agreement and just yesterday i stood with president moon to announce the successful completion of the brand new u.s.-korea trade deal. and this is just the beginning many nations in this hall will agree that the world trading system is in dire need of change for example, countries were admitted to the world trade organization that violate every single principle on which the organization is based. well, the united states and many other nations played by the rules, these countries used government run industrial planning and state owned enterprises to rig the system in their favor.

they engage in relentless product dumping, forced technology transfer, and theft of intellectual property the united states lost over 3 million manufacturing jobs nearly a quarter of all steel jobs, and 60,000 factories after china joined the wto and we have racked up $13 trillion in trade deficits over the last two decades, but those days are over. we will no longer tolerate such abuse. we will not allow our workers to be victimized. our companies to be cheated. and our wealth to be plundered and transferred. america will never apologize for protecting its citizens.

the united states has just announced tariffs on another $200 billion in chinese made goods for a total so far of $250 billion. i have great respect and affection for my friend, president xi, but i made clear our trade imbalance is just not acceptable china's market distortions and the way they deal cannot be tolerated. as my administration has demonstrated, america will always act in our national interests. i spoke before this body last year and warned that the u.n. human rights council had become a grave embarrassment to this institution, shielding egregious human rights abusers while

bashing america and its many friends. our ambassador to the united nations, nikki haley, laid out a clear agenda for reform, but despite reported and repeated warnings no action at all was taken, so the united states took the only responsible course. we withdrew from the human rights council and we will not return until real reform is enacted. for similar reasons, the united states will provide no support in recognition to the international criminal court as far as america is concerned, the icc has no jurisdiction, no legitimacy, and no authority the icc claims near universal jurisdiction over the citizens

of every country, violating all principles of justness, fairness, and due process. we will never surrender america's sovereignty to an unelected, unaccountable global bureaucracy. america is governed by america we reject the ideology of globalism and we embrace the dom tr -- doctrine of patriotism around the world, responsible countries must respond to threats of sovereignty from governments. in america, we believe strongly in energy security for ourselves and for our allies we have become the largest energy producer anywhere on the face of the earth.

the united states stands ready to export our abundant, affordable supply of oil, clean coal, and natural gas. opec and opec nations are as usual ripping off the rest of the world and i don't like it. nobody should like it. we defend many of these nations for nothing and then they take advantage of us by giving us high oil prices. not good we want them to stop raising prices we want them to start lowering prices, and they must contribute substantially to military protection from now on we are not going to put up with it, these horrible prices, much

longer reliance on a single foreign supplier can leave a nation vulnerable to extortion and intimidation that is why we congratulate european states like poland for leading the construction of a baltic pipeline so that nations are not dependent on russia to meet their energy needs. germany will become totally dependent on russian energy if it does not immediately change course here in the western hemisphere we are committed to maintaining our independence from the encroachment of expansionist foreign powers it has been the formal policy of our country since president monroe that we reject the interference of foreig