live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc are we playing the cnbc music for women in california who have been appointed to publicly traded boards? we'll talk about that in a second i'm andrew ross sorkin and i'm here with melissa lee, becky has the day off. we'll explain why the answer is in nafta in asia, china, hong kong the markets closed japan's nikkei closing higher by half a percent european equities at this hour, we'll show you those as well as we flip it around. green arrows there finally treasury yields at this hour, ten-year note is trading right now at 3.093

melissa's got the breaking news that's moving the market. >> i don't, ylan does. breaking overnight the u.s. and canada, ylan mui joins us here >> hi, melissa it took 13 months. the talks came down overnight. the u.s., mexico and canada finally struck a deal that keeps all three countries in a single free trade agreement n. a joint statement bob light hiezer and christ yeah free land called the deal a quote, high free trade agreement. canadian subsidies for dairy farmers were one of the final sticking points. under this new deal canada will have to open up at least 3.52% of its market more than under tpp. canada agreed to phase out a controversial dispute settlement system that allowed foreign investors to sue the government and for the u.s. and mexico the settlement process will be

scaled back except for in critical industries. now on autos, canada and mexico had feared that the u.s. would impose new tariffs on the industry white house officials said the two countries would receive, quote, accommodations once the investigation was complete the full text of the deal was released which will have to approve a deal they're billing this as a success. nafta has a new name it's theda agreement. >> usmca. >> almost marine corps but it has an a at the end. >> i need to buy a vowel who was the winner overnight? there was some analysis that this looks very much like tpp. >> there are some provisions that are similar to what we saw

under tpp especially around biologic trades. i think that overall the final compromise is not far from where we would end up. what was surprising is it happened on the deadline the u.s. said that this october 1st deadline was a real one, both because of the legal requirements under the congressional authority they're using to negotiate the deal and because they were really determined to have mexico's current presidency. >> i read the terms were more favorable for zblus there were some provisions like the dairy access. >> no. you read that, right some deal -- >> the dairy access provision is larger than under tpp. >> steel and aluminum tariffs are -- >> that's a side deal. >> the administration says the steel and tariff negotiation is separate >> thank you, ylan. >> sure thing. >> i'm tired

winning so much. breaking nobel news. nobel prize in physiology has been awarded to james p. allen for cancer therapy is it nobel week i guess it is. we get all the important ones and real ones. some committee gives out some economic prize that nobel didn't designate. so that a -- >> are we insulting the winners of that? >> yes yes, he does that's what he's doing. >> when milton friedman can win a nobel prize and then paul crudeman can win a prize, is it really a science >> adding to the science. >> they can add totally opposite

>> yes >> with gravity, medicine, you actually have -- it's objective truth, whereas, in economics you have, i think, blah, blah -- how often do economists get things right, andrew? >> sometimes let's get to our corporate story of the morning i should say of the weekend. elon musk and the sec reaching a settlement deal. we spent much of thursday and friday talking about the on and off nature phil lebeau has the details. >> reporter: andrew, watch shares of tesla today. if you that i can deal, that yet yetty much okay. shares expected pre-market and here's the settlement.

there's a fine that tesla is paying he gives up the chairmanship for three years. he gives it up he cannot be re-elected for at least three years. two new independent directors will be appointed to the tesla board. both elon musk and tesla paying $20 million fines. this is the most interesting one. there will be oversight by a committee of elon musk communications we won't get as many twitter bombs overnight as we've seen the last couple of years there was an e-mail that he sent out. remember, the end of the weekend is when they had to say we could make x number of model 3s expected to be over 5,000. he said they're closed 20 profrtdbility. they needed one more big push. as you take a look at tesla, we will get the delivery numbers in the next couple of days.

the expectation is that model 3 deliveries will be over 5,000 per week, over 50,000 for the quarter. guys, that will be an indication that they are close, perhaps maybe even turned a slight profit in the third quarter. >> you know, phil, what's interesting about the price action of the stock is we're right back at levels prior to the sec charges which sort of told it. two new independent directors, chairman other than elon. >> the big change to me at this company is that they now have to have an officer in place, a legal officer in place who's going to watch all of his written communications, including on twitter. >> i agree. >> by the way, there's no other

company that has that. there's a big question whether it's going to change corporate america in terms of the communications that ceos have using social media if you would like to come on, by all means, do so, but it does make it more complicated for him to send out written communications. >> why shouldn't he spend it is the sec coddling this guy because he's an iconic figure? he's like thomas edison? >> it's a slap on the wrist. >> not a joke? >> hold on look, there are people on all the sides -- elon musk, there are lovers, there are haters, all of that. >> oh, i know. >> but to have gotten into

another place, you really would have had to determine fraud involved i would also find it hard to believe there's going to be a criminal case. >> when you deal with middle eastern investors, you don't need signed deals. >> i read the ridiculous zblamt we knew he didn't have financing. >> we know 420 was really a pot thing? >> usually our roles are reserves by the way where you're sut porting him except for the flame throwers which is too similar to gins ou. >> but the question is his

trkically think' made these shares, there's some benefit to him in some other way and it's clear at least in this instance that that was not the case. >> thank god the legend can live on >> what would you prefer >> i'm not sure. public policy. >> either he did it or didn't. >> what are the choices you're outlining? >> well, no, did he or didn't he i don't know. >> the punitive action would have been what >> i'm not the sec i don't know what you would have done it was arbitrary didn't it start as 40 million nkts started as 50 million. >> he had to step down from both >> no. 50 million for mussk himself? >> he was always going to stay a ceo. that's the interesting kwu, and

damaged the planet eventually. >> i'm not going to go that far, joseph i remember by the way when bernie eppers was having his issues you were supportive of bernie because of what was going to happen to the company and all the employees at world com. >> i have no recollection of that i'm like mark judge. >> i was watching the show that is -- >> that is patent bs >> you have an idea -- because i like the private sector and you like big government so i was supporting bernie evevs. >> phil lebeau in chicago, what were you going to say? >> phil, the d.o.j., private lawsuits don't go away. >> i agree with andrew.

>> okay. >> what he said in terms of this is less likely i think this is an indication that it's less likely we're going to see a doj case. one other thing andrew was eluding to, the fact that somebody will be riding herd over the committee, when you talk to executives, that's the number one frustration they have it's not that they object to where he's pushing tesla or what he has done with tesla or that he has ideas that are fairly aggressive, it's unchecked that he would put something out there. that is the thing that people have objected to theoretically this settlement means they are

able to keep that in check. >> you would think the stock would trade higher than the day before the sec lawsuit. >> you have a point there, sure. >> then there should be a premium afforded to that but it doesn't look like that >> this week they're going to announce production numbers? >> yes >> yes >> wednesday >> in the next couple of days. yes. >> and the expectation, andrew, is that, look, they're going to get at least to 50,000, probably close to 52, 53,000 in terms of model 3 deliveries which if you extrapolate that over the course of the quarter means that they will likely be able to hit the target that they have set for being able to turn a profit for the third quarter but it will be very important. >> thanks, phil. phil lebeau in chicago. >> i remember when i thought madoff was a great guy

favor will be on. >> i don't recall that. >> we can ask david. >> i remember a whole conversation about world com and about the accountants. also about arthur anderson, public policy issues you don't remember this? >> what year was this? >> oh, goodness, i would say -- >> you were at home watching like in school >> no, it would have been ear early -- for better or worse, why didn't you learn anything? >> so early and so aggressive. joining us -- >> we have favor on. he did a lot with bernie deborah cunningham is cio of global money markets ron dietrich is at lpl financial. so, deborah, i saw the person that put together the interview, you've got a lot of comments on the equities markets

were you comfortable giving a lot of comments on equities? aren't you a money markets person that runs federated's business there. >> i am. i am. >> do you feel comfortable making -- does that translate into equity prognostications for you? >> well, i'm part of our bigger macro picture too. >> all right >> i can give you high level details but not specifics on it. >> you're pretty bullish you don't think they're over valued >> we don't. we think the economy continues to go gangbusters ahead. we think there will ultimately be deals from a world perspective that continue to allow that to go forward certainly from individual company's perspective the earnings season has been strong. we don't really see anything closing that down at the time being. >> the -- ryan, i'll go to you you think 20% again for earnings

in this quarter? >> over last year. >> i don't remember you ever supporting bernie. >> it might have been ken lapped and madoff i don't know it's been 18 years that's what's so amazing about going back 36 years. our memories get clouded i don't remember necessarily i remember early on thinking, but that was amazing and we figured out how much they do that if you cook the books, they can do anything. >> for 2019. start with this quarter. >> sure. >> stocks continue to move higher and set new highs or is it an october selloff that we have seen historically maybe it doesn't happen this time. >> joe, that's right you talk about october

selloffs, 1989, 2000, october is strong for equities? those are things to remember if the s&p is up six months in a row, october is the most volatile month those are things to think about. to come on saying look for a surprise summer rally, now we're in the seasonally bullish time frame especially during mid term years. yes, there could be well deserved pull backs, we think it's going to help it. >> according to positioning in the latest quarter, if the markets are taking a defensive tilt, health care was going to continue into the fourth quarter? >> i definitely think there's some concern and we'll continue

to see volatility in the market. fiscal policy and some of the issues that have to do with, you know, the trade wars which obviously the nafta agreement or whatever the new term is for it over the weekend is a good, positive push for it going forward. we expect to see vol la nilt some of the sense and other fiscal policy issues. >> thank you, deborah cunningham appreciate it. renaissance. talk about anything. we like that i think that if you go bonds and money markets, that might be a good way to start. i any you need foundation to talk about equities ever i think everyone should do that. ryan dietrich, thank you people are sending me things -- are they going to take away

hips -- >> it won't affect this? >> the suit itself -- >> raise the the spec for of removing him. >> the suit itself called for him to be removed. what i was suggesting to you was prior to even bringing the suit they had made an offer of a deal that deal did not require him to step down. 9 original offer -- i thought you were on the original stuff the original reporting on that was a $50 million deal to tesla, 25 for musk to pay and then after he rejected it it went up again and doubled again. those are some of the terms. in the meantime, talking about california this morning. when we return, california governor signing two controversial laws that affect the business world it's already sparked a lawsuit from the trump administration. we've got details about that

next. as we head to a break, here's a look at the biggest pre-market winners in the dow. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

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♪ ♪ california governor jerry brown signed a law that requires publicly traded companies to include women on their boards of directors. companies headquartered in the state will have to include at least one woman on the board by the end of 2019 and two or three women by 2021 depending on the size of the board. he acknowledged that this could prove fatal to the law's implementation california's chamber of commerce argued against the law saying the quotas are unlikely

unconstitutional i wonder where the aclu comes in, which we can never -- i don't know, sometimes they get political, sometimes they don't. i wonder where they would be >> no idea but the legality centers around the fact that the law specifies that publicly traded -- >> you could be chartered in delaware -- >> exactly. >> and then there's the quota system i like the idea that more women are on boards. i think the way this is being implemented is terrible. >> we had someone on that was behind the law or was that a legislator remember a couple of months ago. and we talked about whether if there was an all women board, would you be okay with a law that requires you to put a man or as you're going down this slope, does it get to 50% where a board has to at some point be 50-50. >> or if you can legislate women can you legislate racial backgrounds? that's a slippery slope.

>> then we decide with the lady, it's not happening without this so the ends might justify the means. >> this has happened already this has happened in europe already in a couple of different countries. >> quotas. >> there are quotas in norway, for example. there's a very interesting study. because the quotas were put into effect very quickly in norway where they had to effectively bump up the boards, they didn't have the performance gains people say if you put more women on the board, there are these associated performance gains they said it was the opposite. they took people who were inexperienced, tried to put them -- >> to fill the quota >> right it creates questions and could he none drums. >> we want everything -- >> more balance, there's no question the question is how do you get to that place? >> yes separately, governor brown signed the nation's toughest net neutrality measure it would prevent providers from having fast and slow lanes

last year the fcc repealed net neutrality rules that have been put in place under president obama. california's legislature created an illegal state law attempting to frustrate federal policy. and lastly jetblue jumping on the basic economy bandwagon the airline planning to reveal no frill fares a cheaper ticket that doesn't include free advanced seat selection or the ability to change travel dates. it wouldn't make them feel like second class citizens. look, there's two ways to look at this. you can either look at this and say, oh, this is terrible or you can say this is democratizing the airlines. >> jetblue already is basic, i thought? >> it's close to basic what are these pictures? >> those are -- this is children in first class i have a particular view.

>> he's proposed legislation -- >> i don't want legislation. i want a market-based solution for babies in first class. >> what is a market based solution willing to pay more for tickets that are not close to children >> i have never seen an ad for business class or first class -- usually the people are doing work and they never advertise it with the screaming baby next to you. >> he thought about putting them in the luggages, overhead bins >> he has his own children. >> i don't have a knock on babies >> can't you put -- i know you've got your noise cancellation beats. >> i have the bose, i've got -- i've done ear plugs with the bose noise canceling over. >> in your private pod with your saks fifth avenue down quilt and that's not -- >> i don't know what you guys

are talking about. i'm unaware of what this is even about. >> you're totally prepared >> i don't >> coming up, get ready for the trading week ahead i don't know why they brought -- if they do a car thing they have me driving the car, plane thing, they have you. let's take a look at the squawk planner next. and a new profile about priscilla chan, wife of mark zuckerbe zuckerberg let's take a look at friday's s&p 500's winners and losers obvious.

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welcome back you're watching "squawk box," live from the nasdaq market site in times square. welcome back time for this week's squawk planner. lots of jobs data on the docket. on wednesday we're going to get the adp private payroll report on thursday weekly jobless claims friday, already time for the september employment report. also get international trade data for august. on the earnings front, we'll hear from pepsi could he, home

builder lennar and thursday costco u.s. equity futures showing triple digit gains for the dow nice gains for the s&p big gains for the nasdaq indicated up almost 60 points this morning. a driver of those gains a last-minute deal to replace nafta for the u.s., canada and mexico canada was left out in late summer the three north american countries are expected to sign the deal by the end of the month. president trump just tweeting late last night our deadline we reached a wonderful new trade deal with canada to be added into the deal. the new name will be the united states mexico canada agreement or usmca it is a great deal for all three countries. solves the many, we'll wait for the next part, it goes dot, dot, dot. you saw the reaction of the futures. we're awaiting the reaction from

the canadian and mexican peso. elon musk is reaching a deal with the sec he gives up his chairman role. musk and the company will pay fines of $20 million a piece shares of facebook the stock took a big hit on friday on the news that a security breach happened again shares are moving lower in premarket although just fractionally >> okay. the zuckerberg initiative is the best funded startup in the world. czi is an ambitious take on philanthropy robert is here with the founder of the flux group. he wrote an exclusive piece on the world's changing goals thank you for being here. >> good morning. >> fast company, now you have

your own business. congratulations on that. >> the flux? >> flux. >> yes, with an l. >> flux capacitor group? >> flux is change. >> ff-l-u-x. >> yes. >> no capacitor? >> we hope to help change. >> when you think of their initiative and efforts, relative to the other great philanthropists and the only one of size and scale like this is probably bill gates i think at this point -- >> that's right. >> how do they even measure? is that an unfair way to think about it >> it's a very different organization than bill gates bill gates is a foundation, traditional foundation there are subsets that are 501c3s, 4s, they can do grant making, advocacy they have hired 125 engineers and they are building product

and software as a way to improve things in the world according to their vision of it this is a start up in a way that is different >> they have some lofty goals though >> they do they do. >> tell us for those that don't know like eradicating everything. >> what they say is cure, manage or treat all disease by the end of the century so disease goes away, right? >> right. >> that is one of their goals. it does sound quite hyperbolic on the other hand, what they say is you go back 80 years. there's so many things we didn't know we didn't have penicillin. if you can accelerate the pace of scientific discovery between now and then, this is a possibility. >> right. >> but, you know, this is unlike running someplace like facebook -- >> right. >> -- the goals here are not quarterly. they're not annual these are folks who have decided they have decades and lots of resources and they're going to put them towards this with their

goals being 50, 100 years from now. >> both priscilla and mark are working relatively full time, i think. so how is this sort of divvied up in terms of just the day-to-day >> priscilla is the one who's running the chan zuckerberg full time >> she is there full time. >> mark is there one day a week. they have their own business one on one as business partners where they sort of prepare, strategize you're getting a look on your face that says you're not sure they've tried to separate thing up so they can separate their personal life from their work life this is a work in progress i think for them as priscilla acknowledged to me. there was a point where don't use that tone of voice with me like husbands and wife may have, right? they have kind of worked out when they're working and when they're just being husband and wife. >> aside from this initiative, the funding is, what, $45

billion. >> it's now up to 60 billion. >> when you think of this as a startup, this is not a valuation. this is assets $60 billion. no one has ever had that resource they talk about how $60 billion, as much money as it is, it is a drop in the bucket compared to the money being spent by other governments and other entities globally to address health care, education, things they're trying to address of what they can do that isn't being done otherwise in these areas that other folks aren't finding. >> how much of this is a software issue and a biomedicine issue? >> a lot of the software for the health care is biomedicine oriented basically the money that goes towards research in biomedicine generally goes towards drugs because that's where the near

term returns are, right? but there are other kinds of projects basically you have experiments going on where folks in a lab are creating one version of the software to solve one problem but they're not making it scaleable. that's what czi is. >> is there one thing they've made the most progress on thus far? >> there are a handful of things it's early days. they showed me a particular microscope that is fascinating where you can see where the cell develops i think you'll see more announcements. >> is there a gold rush, we have to go to czi, they have $60 billion that they've got to spend. i have a project that might interest them. >> i think there are a lot of folks coming to them certainly that's one of the big challenges that they have is remaining disciplined about it at the same time as you eluded to, there is the overhang of facebook and the question that looms as to whether how much of

this is genuine and how much is this trying to enhance his reputation >> when i put the question to them, they are obviously and predictably adamant that these are two very separate organizations. as far as i can tell, they are separate organizations mark does acknowledge that, you know, in the long run, you know, over decades of time if czi succeeds, it won't look badly for any of them. what i do hear from folks if they wanted to make a near term impact on his pr reputation and be they had $60 billion to spend, there were a lot more effective things that i could be coming on here saying they've done this, done this, done that. >> real briefly he's always talked about what's the line break things along the way. >> move fast and break things. >> move fast and break things.

>> yes yes. >> he's been someone willing to make the mistakes. bill stopped or less progress in how they're approaching it >> listen, in some ways czi is the result of what some people refer to as a mistake. $100 million investment in new york's public schools which mark and priscilla denies was a mistake. it had some positive impact and they learned a lot at this point at least priscilla mostly is looking and saying, listen, we have a long-term run with this. we have to be better about it. >> bob, thank you. appreciate it. sounds like a fascinating time you had. >> yeah. >> check out the piece it's on quartz. >> you ended with dot, dot, dot. we'll talk about trump's tweet

so it will correct, here's the rest, deficiencies and mistakes in nafta greatly opens markets to our farmers and manufacturers. there's a rest reduce trade barriers to the u.s. it will bring all three great nations closer together in effect news just breaking involving dow component pfizer ian read will step aside he'll become executive chief operating officer. the stock has risen by 160% during reed's atd years at the helm coming up, fallout from the trade war with china we will talk about the impact on m&a next then at the top of the hour, the u.s. and canada reaching a trade deal plus, musk reached a deal with

the chairman and we'll see what they had agreed to next on cnbc.

trade tensions with china are slowing down the pace in deals with chinese buyers. leslie picker has more on the story. >> hey, melissa. the chinese buyers were driving much of the m&a. in the first nine months of the year they have announced $5.8 billion worth of deals that's 1/5 of the value announced during 2016. about half the amount as last year a number of such deals signed in the third quarter, just 14, is the fewest of any three-month period going all the way back to 2013 so what's going on here? sources that i've spoken with that advise on deals say that deals between chinese and american companies have stalled to a halt. they have become casualties between the u.s. and beijing both china and the u.s. have

blocked multi-billion dollar deals in recent months and the committee on foreign investment which approves and blocks such deals has been granted expanded powers as of mid august. the chinese have krakted down on their indebted conglomerates now this type of regulatory pressure is likely to continue steering companies away from inking these cross border deals at least in the way they were back in 2016. >> have we seen a pickup in cross border deals between say, china and europe >> we are. anothering this thing is china's dialogue has been such to the rest of the work, we're the ones open to these types of investments. the u.s. is being more protective and blocking these types of deals so that's another kind of interesting dynamic that it isn't necessarily a two-way street china, which, of course, does have a lot of restrictions when it comes to foreign direct investment still their dialogue

at least to the outside has been, we're completely open for business these days despite this trade war that's going on. >> thank you, leslie leslie picker. facebook announced on friday that the data of more than 50 million users could have been compromised. we're talking to the ceo of pid7 that's next. at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react...

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a facebook security breach revealed on friday exposed the accounts of 50 million users let's talk about it with corey thomas great to have you with us. what was your take on facebook and what's so interesting now is that before companies would reveal hacks and there wasn't that much of a reaction in the stock price. now we're getting to the point there is a strong reaction to the stock price. maybe that will jolt corporate america into thinking cyber really makes a difference here >> we're finding more and more things are causing people to really understand that cyber security attacks are going to attack the fundamentals of the business i think with facebook it was the additional layer of they're in so much turmoil already, it's just another sign it's going to

be troubling days ahead. >> given the context, what was your reaction? were you surprised there was this -- that there was a breach of this magnitude? >> well, one, i think facebook takes security very seriously. i was surprised in some ways because of how seriously they take security. on the other hand, they have lotss of technologists, they're moving fast. the compromise itself was the interplay of a whole bunch of different errors that went wrong at the same time >> it sounds almost like you're saying they innovate in the possible, you know, thing that falls to the wayside is the security of your own data. >> one way to think about it is we have not designed our technology ecosystem to be 100% assure and secure. we value speed and one of the things you see is one of the reasons so many

companies are successful is because they are fast at building technologies all of us love and adopt and use the side effect of that, unfortunately is that speed comes at a cost. >> that's the case with every vulnerability in society things were built to be easy things were built to be dummy proof. now in this day and age, we're realizing all those great things with the standards by which all these systems were built are the reasons why they are, in fact, so vulnerable. what was now the pendulum swings the other way? we sacrifice the speed of innovation for security? >> i don't think if we'll be able to put the speed of innovation genie back in the box. we do have to raise fundamental standards. there are things people can and should be doing. what scares me more is not the facebook because i think facebook and many companies have good security. it's the fact our entire economy is becoming more digital most of the companies starting to turn thundershoweir services

digitized -- >> what specifically are you talking about? >> you look at health care, transportation ecosystem we're connecting more and more aspects of our lives and you have a bunch of company where is the software industry just ten years ago used to be an industry of relatively few names in the overall ecosystem if you look at the next ten years, every company is becoming a software company in some way >> health care meaning when you access your test results online, you think that's not built with security in mind. >> i would say it's built with the same security as all the other things built around us today -- >> that are getting hacked >> exactly. >> we hear computer internet companies being hacked what you haven't heard a lot of yet is banks being hacked. is that because they have better security if they have better security, why is everybody not using it? is there a distinction >> i think there is.

one, banks have been focused on security for longer. they've been the targets for fraud. people always go after the money. you can argue it's a relatively recent focus area to realize that data is money that's something the internet companies realized ten-plus years ago. and criminals are now realizing in the last five years that's a change. the other aspect is banks to innovate less. if you look at one of the biggest disruptions is in the financial services sector. so i would argue that banks are having the other part of that is they innovate at a slow pace >> corey, thank you. >> thank you so much when we come back, two big hours on "squawk." news breaking overnight. the markets are moving u.s. and canada reaching a deal to replace nafta plus elon stepping down as chairman of tesla. atlshe hwh ee ad to give up and what it means. all that when we return. it's all yours.

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done deal. the u.s. and canada reaching a deal to replace nafta. stock futures are soaring. what to expect from the first trading day in october is straight ahead shares of tesla higher after elon musk settling with the s.e.c. remaining ceo of the company. what it means for investors straight ahead plus the ceo of wholelogic joins us as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york, this is "squawk box.

>> welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin with melissa lee and joe kernen we'll show you what's moving markets. dow looks like it would open 207 points higher. nasdaq 55 points s&p up about 18 points all on the back of this nafta news and we'll talk to you and give you all the details in just a second but the other big corporate story is tesla this morning. tesla shares are jumping in the premarket trading not following the announcement an s.e.c. settlement deal took place over the weekend with elon musk after his august tweets about taking the company private. both will pay $20 million fines. musk will have to give up his chairman role. though he'll be allowed to remain as ceo and on the board the automaker will have to bring in two independent directors they'll also have a legal official who will work inside the company who will track and

oversee any public statements at least written public statements including tweets and social media and elon and others make comcast says intends to pause its share repurchase program in 2019. comcast says it is taking that step so it can accelerate the reduction of debt related to itself purchase of sky pfizer, some news this morning. its ceo ian read stepping down that coming from the company just minutes ago read will stay on indefinitely as executive chairman. chief operating officer albert borla will take over as ceo on january 1st. breaking late last night, the u.s. and canada have reached a deal to replace nafta. elylan mui joins us with more. >> the new nafta is the u.s./mexico/canada agreement

president trump called it on twitter this morning a, quote, historic transaction he says it solves deficiencies and mistakes in nafta, opens markets to manufacturers and farmers, and brings down trade barriers key points of this new deal, dairy access under the agreement canada will open 3.5% of its market. that's more than the 3.25% it agreed to under tpp. kh allowed foreign investors to sue the government but the process for challenging anti-dumping duties like the ones on canadian lumber, that would be preserved autos, if the white house moves forward with tariffs, exempting up to 2.6 million cars each from canada and from mexico the two countries would also get a six-month reprieve of similar tariffs in the future. it will now go to congress for

consideration. orrin hatch called nafta, quote, a proven success but ranking ron wyden said enforcement is key here. he said americans are sick of hearing speeches about the benefits of new trade agreements when the agreements in place aren't even enforced administration officials are saying they've tightened enforcement rules. they're billing this as a big win for the administration and they say it's really the decision he's taken. >> more hard line stance in its approach with china then racking up this win. >> the administration saying it's working we got a deal with canada when many people thought we wouldn't. it did come down to the wire as recently as thursday of last week we were looking at a u.s./mexico only deal. that text had already started to be drafted before canada came on board this week. >> all right

ylan, thanks we'll try to figure out what this means for stocks. mike santoli is here the futures this morning are triple digits higher on the dow, the s&p looks like it could be a record as well august and september both went against the grain of historical -- why should we -- it's going to be hard to figure out anything >> so seasonals didn't help you in august and september. that being said, if the market ignores the head winds even though october, of course, could be a wild card here are the main points heading into the fourth quarter which really i think the trade news overnight only gives a slight boost to it. it's an orderly uptrend. if you take the first two months of the year out, it's a steady grind. up an average of 0.25% per week is one way to think about it it has been a well contained

uptrend. seasonal factors do turn favorable. almost any way you slice it. if you want to talk about whether the market is up six months in a row, if it's up seven months and down two. or if the market is up 10% into the fourth quarter, it nets out to all quarters up 4% to 7%. the one quibble you can make about this market, it's been low momentum and selective there have been a lot of stocks that have not participated is we have breaking news new ceo for general electric larry culp will run the company. i don't see more news on this, but i assume john flannery who's been in that role now since 2016 -- >> a little more than a year >> it seems out of nowhere

>> ge power business -- >> they had -- >> relative to 2018. there must be -- i don't know. in the press release, i wonder if we're seeing some guidance as well that would explain this really quick transition. >> it's a very quick transition. as i'm looking through this, i don't even see a -- >> think about flannery's track record think about every time he's come onto cnbc, he's given an outlook that the company then disappointed on. then most recently you have this issue with the turbines which was a huge issue that i believe jpmorgan had first flagged in its note which caused some problems for the company i don't know your take on this i'm not surprised the stock is higher >> power was not flannery's business to run before this.

he was in health care. it seems to me he's always come on and said this is a multi-year effort i don't know about the messaging issue. but clearly, i mean -- >> he was a member of the board and also the lead director thomas horton is now lead director so those -- i don't know this looks like -- >> i've got to make some phone calls. i've got to try to understand what's going on here >> it has traded in recent weeks below $100 billion in market cap. it's been down in the $98 billion. general electric >> financial crisis lows at the time the s&p 500 is at record highs. >> then it's $600 billion at one time he's 55 years old. he left daniher in 2014. it's crazy >> and they've been one of the

best run industrials anywhere. it's kind of this rolling conglomerate type model. >> look at the track record. up 17% this year daniher. >> so is this is the bottom? we keep saying where is the bottom >> we need the why. >> meantime, let's bring in david bale from citi private bank good to see you. we've just been talking about this g e! news how do we set up for the news quarter? >> i think that is normalizing what's exciting about this particular time in the market is you're going to have a strong earnings season right ahead of us obviously you'll have the elections which will take some energy away. but at the end of the day, it's going to be all about earnings and they're going to be strong

it was said there's going to be a recession in 2020. but we're in 2018 and i think the market will continue to move ahead. now it's in the emerging markets which i think are way undervalued. >> a survey of the national association of business economists it was ironic. when i read that the survey results, so many economists, general economists are saying that there won't -- that trade wars aren't going to be much of an issue when it comes to the economy. we have the national association of business economists say the trade is actually the top risk to economic growth is that your view? and does reaching a nafta replacement deal, does that sort of take that out of the picture? >> it takes one level of uncertainty out. that's good for investors. you'll see this will end up being a minor tweak in terms of the relationships between the countries and would settle down a working relationship with che china situation, it's far different in terms of its

depth. >> where do we see leadership from >> yeah, i think you're still going to see a growth tilt this quarter. you'll see some plays in some of the industrials because the pressure will come off but it'll be a growth-led quarter. and we're well above 10% for the year in terms of total returns and we could see our total return for the whole market including global equities up to 7%, 8% too it could be a strong end to the year >> what do you do -- what's your outlook for next year, for 2019? >> we're seeing stronger growth rates, you know, like 10% in the united states. 8% overseas. which is very strong it's obviously a normal year won't have the impact of taxes and clearly it's going to be facing the head winds of higher fed rates. those are going to become more and more of a story into next

year we expect rates to be up at least another 1%, at least another 4% in the course of the next 12 to 15 months. >> is the fed going to ruin the party with higher rates? >> eventually it will slow the party down i think there will be some recessionary activity, but the question is how much will it be? this is not going to be an '08 or a 1945. this is going to be a normal, quote, recession people aren't used to that the bottom line is the economy is in a great strong shape and it's going to continue to lead as these trade situations resolve, i think the market's got more tail wind behind it >> any take on ge in particular? >> i'm reading the news just as you are. so that says something >> that's awful little >> that's right. now it's up more >> i saw that.

yeah >> referendum on flannery. >> it's got something to do with power. he must have -- i don't know >> they wrote down the whole value in the power business. >> even though their flagship turbine was the issue. >> it all seems to predate him the problems doesn't it >> the execution of the turbine, i don't know if that predates him. that was under his watch >> the revenue recognition stuff is pre-him >> maybe that's the correlation. >> i agree with that >> i don't know. maybe he's a quarter past the kitchen sink >> the new guy is going to be kitchen sink once again. it's not the last of the kitchen sinks. >> now you're going to be kitchen sinking it for the next two quarters i'm saying he inherits this quarter, he's got one more to -- i'm not going to say sandbag

>> why wouldn't you if you're a new ceo? >> thanks to david bailin. you heard the news, i guess. >> i did i heard the news i feel terrible about that >> the founder of jefferson airplane died. and when i call him bailin -- you brought me cds of marty bailin he passed away at 76 a lot of tributes to him well, think about it jefferson airplane some of us remember. coming up, elon musk striking a deal with the s.e.c tesla stock rising on the news what the deal means and what it might mean for musk and the company. and later steve mcmillen is our guest host to celebrate breast cancer awareness month they have a lot of cutting edge stuff to diagnose breast cancer better stay tuned you're watching "squawk box" on

cnbc this isn't just any moving day.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. can ♪ welcome back to "squawk box. we do have breaking news just crossed literally in the last couple of minutes ge announcing a new ceo. larry culp will become the chairman and ceo of the company taking over from john flannery just speaking to some sources

during the commercial break to try to understand how this came about. i am told that the board was unsatisfied with the execution that was taking place under flannery's leadership. disheartened over the last several weeks. there was a meeting late last week where the impairment charge relating to ge power was presented to the board larry, we should say, has been on this company's board and there had been some back channel conversations with him over the last several weeks aboutwhethe he would want and would be willing to take this job he does have quite a successful track record at daniher. there will be questions that larry was on the board during some of these missteps and whether they're going to give him credit or not for some of those things we were talking about whether you throw everything to the kitchen sink it's not that larry is coming to this completely new, but of

course he is a new face. >> faber's on the phone. is this is a new lead director, too, faber >> well, horton, yeah. horton is the new lead director. >> who's the old one >> well, it was what's his name. i forget he left though >> oh, he did. this is crazy. so this is -- are you -- >> i mean, the board already was absolutely reconstituted not that long ago. right? in fact, spring, really. >> who did the power revenue recognition stuff that was so shady? isn't this weird he's getting -- he's taking the fall for this? >> yeah he was only in the job for a little over a year just about a year. hard to see necessarily that it was all in his foot steps without a doubt. but he did say they had planned

to continue to execute 2019 was going to be an important year of sort of recalibrating and getting things back to growth, i think, to a certain extent including even in power. acknowledging throughout the year they had a significant problem there. i didn't think people were expecting it to be $23 billion charge >> was the issue with the turbines last week or two weeks ago, was that sort of the straw that broke the camel's back in terms of the board's view of flannery they had issues in four of the flagship turbines. >> you know, i don't know. what i will tell you is that over the last six weeks, really, the conversations i've had, a number of people i've spoken to who would be aware at least speaking of the board of directors indicated there was some frustration with the pace of change. that there was some frustration with the lack of concrete

decision making made in a short time frame i don't know specifically about whether this new problem was from jpmorgan was as you say sort of the last straw but i know there was some frustration on the board with the level of decision making and change feeling it had to be moving faster and having a hard time getting mr. flannery to get to a decision on certain things. it could be a lot of different things, obviously, but it may have well been as you said this latest problem that convinced the board they needed to make a change. obviously culp is there. the first thing they point out in the press release is his incredible success. >> in his new world of technology, a source is texting me saying this was not driven by the turbine issue but was as you

said execution issue, slow pace of change as it came to what was going on under flannery's leadership >> david, it's under $100 billion market cap >> i know. i know >> the guy's been there over a year it was a $98 billion -- when i saw that last week, it's just driving home how the mighty have fallen from $600 billion but you compare ge's performance over any time frame to any other index, and it blows your mind it could have been mismanaged by whomever you know it's down, like, 30% everything else is up like 300%. it's mind blowing. >> it is mind blowing. this is not a new conversation for us we had this conversation a year ago when the stock went into free fall then on so many of the problems that were just really emerging in terms of power and how bad things had gotten there. it doesn't make it any less shocking certainly for any of us who worked there for so long

as i pointed out any number of time on "squawk on the street," i still talk to people when i walk around 30 rock who own the stock, who ask about the future of the company you know, the pain is manifest for many of the employees who held on. >> i'd ask welch for a comment, but i wouldn't get one. >> the fact the company basically has a third quarter in the books, a kitchen sink might happen in the fourth quarter but this sort of reopens the question what other things could the company revisit. john flannery was sort of a defender of keeping a dividend in some form you've got to wonder now with new management if all the doors are open, all the options are on the table once again >> yeah. i would think i'd certainly like to get more reporting. we have a little bit more clarity to answer that question. which i think is a key one because, you know, there was an expectation, if you recall, that ge might go through an entire

split. you might actually see a transaction that as they ended up announcing include a split off of health care many people thought it would involve a full split of the company. including, of course, its most valuable piece so, you know, i don't know the answer but we know how culp has operated in the past i think there was certainly some on the board who might have favored a more vigorous split of the company until all of its component pieces or most of them other than power which you got to really kind of fix first. i'll try to get an answer. >> we've got a really old head shot of you from, like, 25 years ago. oh, is that a current -- >> yes >> he has not changed one bit. that's a current head shot >> it is >> now, you're supposed to say

that to me, faber. me too. >> the silence is deafening. >> i know. never mind never mind good-bye >> thanks, david >> meantime, let's talk about the s.e.c. and elon musk reaching a settlement over the weekend. joining us now former s.e.c. assistant director jordan thomas. lots of people saying this is a slap on the wrist. what do you think? >> i think it was a appropriate resolution and one that chairman clayton and the enforcement division will be happy with. this is a case that no one wanted to litigate >> and they didn't want to litigate it because? >> well, from the -- from tesla's perspective or musk's perspective, it was an exte existential through the to his business empire. and with little upside for the s.e.c., this is one of those cases that would have been probably the biggest trial they would have had to do in the last decade it would have required enormous

resources and put them in a position where they might not win. might not win not because they would lose, but because they could win and not get a bar. they could win and put the company out of business. >> how often does the policy decision, if you will, get factored into the decision to prosecute one of these cases it feels like the sort of larger existential issues around tesla clearly weighed on the decision to pursue a settlement like this >> i suspect this was the settlement the s.e.c. wanted i know the attorneys both on the defense and at the s.e.c., they're smart, aggressive, not crazy. >> dung muid you think musk had strong case? >> it was confirmed at that number, that quote, that's a difficult thing. >> does this settlement say to you there are no pending

criminal charges meaning what if the s.e.c. settled this case if the doj had been at least looking into this situation or do you think of them completely unrelated? >> i think the smart money is the doj is not in the game if the s.e.c. is settled or tesla settled with the s.e.c. on this. >> other investigations ongoing, you go online right now on twitter and between the shorts, you would think there's all sorts of s.e.c. investigations going on into tesla. how do you square this and potentially other investigations >> you know, i've read about the fact there are cases involving whether their production numbers were accurate. that sort of investigation is something that takes much longer to investigate and is likely to involve a different team so the fact they dealt with this

issue quickly makes sense. it was relatively discreet >> we got to go, but one last question do you believe that other companies are going to put into the company to prevent their executives from using social media and other things beyond the chairman role, beyond the fine, there's going to be somebody inside the company now looking at social media and all written statements >> absolutely. because the consequences can be dramatic >> thank you for coming in this morning. appreciate it. thank you. coming up, papa john's foundfoun er testifies details straight ahead

welcome back to "squawk box" here on cnbc we're live in times square among the stoiries front and center, ge replaces their ceo. john flannery is out replaced by larry culp ge also said it would not meet -- that stock is higher by

13%. tesla higher premarket trade following news of a settlement musk will be allowed to remain ceo but will have to give up the chairman host. he and the company will each have to pay a $20 million fine we should note that tesla investor ron baron will join us live tomorrow. tesla shares up 16.5%. two economic reports are on today's calendar the institute for supply management index will be out as well as august construction spending both due out at 10:00 a.m. eastern time i'm going to read this and say -- someone did just point out to me ge's had like six ceos in history supposed to be there for 20 years. this is unbelievable >> what was this 14 months? >> just a little over a year that's a first i was trying to figure out the original dow component,

thomas edison. >> clearly they were not moving fast enough. and you look -- i mean, i'm told -- i should say, sources say that trien was not the top mover in this. when you have an activist on the board, there is definitely a little less patience than, perhaps, has been applied at other companies. >> there's nothing, like, crazy personal nothing weird. after all, people are innocent until proven guilty normally in this country in a lawsuit filed against papa john's. the company he founded as the battle between schnatter and his pizza chain continues. kate rogers is there with more good morning, kate >> reporter: hi, joe good morning that's right john schnatter will be in court today. the former ceo of the pizza chain is seeking documents

relating to his ouster as chairman of the board of that company earlier this summer. this after it was revealed in a forbes article that he used a racial slur. he said he was quoting the word and media has mischaracterized his action he is the company's largest shareholder. schnatter's attorney said for almost three months the company has refused to give john documents in an effort to cover up what is really going on at the company. the company's refusal to provide the documents confirms whatever it is hiding has caused great harm to the company, its employees, franchise sefranchis shareholders to immediately distance themselves from mr. schnatter when the racial slur incident was revealed instead of conducting any investigation into what really occurred. papa john's has said that

schnatter is trying to distract from his own words and actions by filing this lawsuit and a second lawsuit against the company's new ceo steve richie as well as its board of directors. this as they've already revealed a new ad campaign that focuses on the employees and franchisees. notably missing is john schnatter himself who had been the spokesperson for years and years. john is is the only witness to testify today. we're looking forward to hearing from him of course we'll bring you updates as we get them >> thank you kate rogers. meantime, breaking news. moving markets and causing news this morning larry culp will take over ge we have a lot more in just a minute then we're kicking off breast cancer awareness month with the ceo of a leader in mammography equipment. steve mcmillen is going to be with us in just a minute

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♪ today marks the beginning of breast cancer awareness month. here to ring the bell at the nasdaq for the 13th consecutive year is hologic. joins us now steve macmillan, ceo of hologichologic good to see you. >> good to see you >> quickly, bring us to the state of the art in terms of cutting edge developments in both detection -- let's talk detection. because we have talked quite a bit about new therapies and gene therapies. be great to find it earlier and be sure what you're looking at, right? >> detection is what it's all about. that's been our primary focus to your point and the 3d -- our genius 3d mammography technology, the way technology brings advances

we're finding so many new things out of it. we detect more cancers we're also reducing the false positives. but the really interesting news more recently is around breast density. what we've learned is our 3d mammography, just ours, is superior at detecting cancer in women with dense breasts >> is it from one to ten could you be a six instead of a nine >> yes >> and it's harder to see on a normal mammography >> on a traditional 2d mammography, breasts are a dense fibrous tissue the tissue looks white and so do the cancers. in 3d, we're able to peel these back and look at them more closely. you can separate the fibrous tissue from that >> there's a follow-up

currently -- i'm sorry to interrupt. there's a follow-up to a cat scan >> but not everyone goes to that and increasingly again, if you think about in the old days when you had a 2d, it wasn't clear. so you'd do expensive follow-up. we're taking a lot of cost out of the system with the use of our genius 3d up front and we don't need to put women through frankly different additional mris or a lot of biopsies. >> false positives, i immediately thought i'd rather -- false negatives are worse. if you don't see the cancer. false positives when you realize there's a lot of unneeded surgery that is traumatic -- >> emotional distress. >> exactly right >> and also, maybe, taking too much out it would be nice to -- you've got things to focus exactly

where the cancer is and you surgically remove it >> yes you have two pieces within your first off. those false positives. just a woman that gets a call back that says we think we detected something you're not getting right back in for typically a week, two weeks, three weeks. there's the emotional angst of all of that. you may go in and it was a false positive but you had the pain of the procedure, the mental anguish of weeks of wondering and now as we find the cancers earlier, we're eliminating the need for a lot of mastectomiemas now we're getting to what we're talking about as breast-conservative surgery. whether it's a lumpectomy or able to get the little piece we just developed basically a

bio-absorbable technology. it's a device you can put in when the doctor goes to remove it they can plant that there and know how to treat it for radiation. it also helps the body basically regrow and, you know, fills the gap left by the lesion in the short-term and then over time, it actually degrades right back into the body it's back to all the fun of technology and the advancements it brings in quality of life >> these are your recent acquisitions to try to help with breast cancer detection. how much of your business is now based on breast cancer >> we're about a third of our total corporate business is in that and what we have been doing really started to leverage off of the breast cancer but we're also leader in reproductive health and traditional pap testing. fibroid removal, a whole range of products in the women's

health space >> hopefully this month we'll also look at the therapeutics too. stuff that you'd never -- like, rates of survival we never dreams of based on your pre-existing genetics. we got to find out more and more but thank you. and good luck with the -- it's not hard with what you're doing, this other stuff is much -- but it's got to be right at 9:30. did you practice yet >> he's been doing this for how long >> as my daughter used to say to me, don't dunce it up, daddy >> was that the word she used? >> that's a good g-rated version. >> thank you, steve. coming up, golf and giving the gary player invi titational brings many together dom chu has a preview. >> the ryder cup, u.s. lost again. they can't win on foreign soil

we're going to get reaction from some of the game's greatest players includinggary player himself. when "squawk box" returns after this break one-millionth order. millionth order. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering.

♪ the gary player invitational getting under way. our dom chu is there with a special guest. beautiful looking course manhattan woods. is that where you are, dom >> bedford hills, joe. and the reason why it's such a beautiful course is -- yes, it'sed a bedford hills it's a gary player signature golf course. so we are here at the gary player invitational. with us is gary player himself to talk about the game of golf and the charitable work he does. thank you for joining us today >> it's a great pleasure always nice to see you and thank you very much. your network always covers this event. it is changing the lives of thousands of people around the world. which is a great thrill. it's better than winning major championships. thank you for your support >> well, you know, gary, joe and i are big golfers.

we have a keen interest in this game we want to get your reaction to what happened this past weekend at the ryder cup outside of paris, france. the u.s. had a dream team on paper, yet they could not win on foreign soil haven't done so for the better part of two to three decades at this point what is going on with this ryder cup team >> first of all, i think that people are always -- if you speak to ten different people, you'll get ten different answers. the fact remains that europe have been predominant in the ryder cup and they play better amen that's all that matters. the bank manager never says how are you hitting the ball this is another great message that comes through most networks are talking about long hitting it's not long hitting that wins tournaments. we keep seeing that. and yet they won't acknowledge that what wins golf tournaments is putting the ball on the fairway and being a great putter and knowing how to play in different kinds of conditions. and long hitting in the ryder cup didn't mean a thing. you had to hit it straight

>> how would you have chosen your team differently than how the u.s. chose its team this time around? >> obviously i would study the golf course and say this is a golf course that has a lot of rough. i would pick two people that really hit the ball straight now, it's very easy afterwards to start saying that i would put a man like kizer in and zach johnson, two extremely straight hitters in my team without offending anybody that's been chosen. but you have to choose a player that's conducive to their golf course when america set up the golf course, they set it up with no rough. american golf is very different to european golf european golf is straight hitting, smaller greens. america is wide open golfers, no rough, bigger. >> joe has a question for you as well >> hey, mr. player good to see you. we go back and forth on twitter once in awhile

>> yeah. >> you would have -- i think you would have done okay over there with how you used to drive the ball but you mentioned zach johnson he was there, he just wasn't playing. that's part of the problem but thomas bjorn knew what he was doing, too, in terms of -- he was able to influence a setup. how narrow the fairways were and how deep the roughs were have you ever seen rough like that maybe never in a previous ryder cup, i don't think >> no, i've seen rough but i've been a professional for 65 years i've seen a lot of tournaments with rough like that i remember the u.s. open at tulsa. it was, in fact, higher than that so i think this is what's wrong. we should be playing tournaments with more rough. after all, straight hitting is part of the game i don't think you should be able to hit the ball all over the place and make birdies and pars. but it's -- the big plus is that

golf benefitted. 55,000 people in a country like france who have beautiful golf courses but are limited as a golf nation shows the world they might have run the best golf tournament everybody had information. there was excitement it's done a lot of good. europeans winning continuously promotes golf more than if america won. because they get more coverage here >> over here, unlike a lot of sports, if i have a team i like there's a lot of their rivals i really don't like the other team, i don't like the players i can't say that at all. justin rose is one of the greatest gentlemen in golf and mcilroy. so i was watching -- i was pulling for the u.s., obviously, but we love those euro players and the panache and team work that they exhibit over there it does make for a great rivalry when you haven't won

now it's going to be 27 years. it's going to be 29 years by the time they get a chance to win again on european soil >> yeah. the guys just play better. we could say pairings. i would never put phil mickelson in a foursome, for example >> right >> the way that bjorn, he was brilliant. i'm always one that says don't blame the captain because he never touched the clubs. it applies here. the captain didn't have anything to do with them hitting the shots. they just played better. we can look for all kinds of excuses and everybody will come up with a different theory but what i will say. if you look at charity, how it benefitted and tiger woods' win the week before, did so much good charity with the fedex charity with the ryder cup and as you said, such gentlemen winning and losing taught the young people of the world when somebody else wins, enjoy their success.

because when you win, you want them to enjoy your success >> you mentioned charity let's talk about the gary player invitational it's run all over the world. tell us about the charity and what you're doing with the money. >> first of all, if you don't have businesses whether it's business or art, whatever it may be, we're lucky we have these from all over the world. you can't survive without them what we're doing, we've built a center in china. we built a home for people sleeping under the bridges in london i said look, we got to do smk for these people we took as many as we could and bought a home called depaul. these people that were sleeping with no hope in life whatsoever, we put them in this shelter. and gave them facilities there are doctors and lawyers and such coming from that. in south africa, we built schools. so we are trying to -- our main

theme, obviously, is education >> it's a great thing you're doing over here. thank you for joining us here on cnbc back over to you guys. gary player here at the invitational a great cause benefitting from this particular tournament >> thank you, dom. when we come back, stocks to watch ahead of the open. plus david faber is going to join us with the big news of the morning. ge selecting a new ceo the futures have been sharply higher all morning we thought because of nafta. maybe ge is going to be there too. top of the hour, white house trade adviser peter navarro is going to join us on america's deal with canada we'll talk to him in just a minute let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team

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is the world ready for me? through internet essentials, comcast has connected more than six-million low-income people to low-cost, high-speed internet at home. i'm trying to do some homework here. so they're ready for anything. let's take a look at stocks to watch this morning. cal-maine foods reporting earnings of 26 cents a share that's well short of the 49 cents consensus estimate revenue also in below street forecast that stock down 8% right now chipotle was downgraded to underperform from perform that stock is down 1 1/3%. coming up, david faber will rejoin us. see what he's found out about

this really pretty staggering g e! news. they don't do this ceos usually last about 20 years. that's the way they pick them. anyway, walter isaacson of perella weinberg wl ins. quawk box" will be right back.

breaking overnight the u.s. and canada striking a deal to replace nafta. peter navarro will join us live. new this morning, general electric removing its ceo and taking a $23 billion non-cash charge for its power business. plus tesla shares jumping after elon musk reaches a settlement with the s.e.c. the final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box. >> changes changes at ge. 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 andrew

ross sorkin and melissa lee. becky's off today. our guest host this hour, walter isaacson who has had so many different jobs and is truly -- you know, andrew wrote a book and everything, but you've got to admire this guy >> i do. he's the top of the top. >> he is i agree. >> well, churning out books, at least. i don't have any tv shows like y'all have >> you're here you've got everything. >> got it all. >> the futures right now are indicated up sharply across the board. triple digits on the dow we were up more than 200 earlier. the s&p 500 indicated up 16. nasdaq up 50 and kind of a start for october. not always the greatest month if you think back name any of the big breaks we've had in the past. it always starts with an october, it seems. not to say we won't, but so far so good. >> lots of news to get you through this morning moving markets and creating lots of movement.

larry culp will be replacing john flannery as ceo at ge flannery in that job just over a year ge also saying it will fall short of prior earnings guidance because of issues with the ge power business more in just a couple minutes. we'll get faber talking about it as well as others. shares of tesla jumping this morning. over the weekend elon musk and the company reached a settlement with the s.e.c. over musk's tweets about taking that company private. musk and tesla will each pay $20 million. he will be allowed to remain as ceo but will have to relinquish chairman title they'll have to bring in two independent directors. ron baron is going to be our special guest tomorrow on "squawk box" at 7:00 eastern time he being one of tesla's big shareholders and a long-time

supporter of elon musk and tesla. in fact, was somebody that elon musk went to during all of this. we should say, by the way, one of the reasons that musk changed his mind and said let's make a decision -- let's take the settlement is not ron baron but had a conversation with mark cuban who had his own run-in with the s.e.c. and musk's lawyer was also cuban's lawyer the other big market-moving story of the morning, perhaps the real reason you're seeing marketing move the way they are. u.s. and china -- that would be good but rather than u.s. and canada repla replacing nafta with a deal. the three north american countries are expected to sign the deal by the end of next month. it would then be submitted to congress joining us now from washington, top white house trade adviser peter navarro. good to see you this morning were you involved with this part

of the trade picture i know sheard kushner is getting some credit for this but were you involved intimately in the deal with canada and mexico >> no. and president donald j. trump is the visionary on this. he was very involved in that i think that ambassador robert lighthizer and jared kushner did have great teamwork on this. both of them should be congratulated for bringing this to the finish line i think it speaks to the importance of personal relationships helping in negotiations i think it's a very bullish day for america. it's a bullish day for north america. >> it seemed like -- maybe it's always darkest before the dawn but some of president trump's tweets last week about the trade representative herself were sort of pointed that seemed like a low point in the negotiations next thing you know, it comes out they're working on getting

something done at the last minute how does that work were you privy to what was really happening there was it all bargaining and sort of posturing >> i think the important thing now is to focus on the future. future's bright. what we've got is a deal that helps main street. it helps wall street, and everybody in between if you look at the details of the deal, what i like best is the head of trade and manufacturing policy, that fact it's got content rules to basically re-establish our supply chain for manufacturing industries, particularly the auto industry. even though this deal won't be signed until the end of november and won't be ratified for many months thereafter, you're going to see from a financial point of view, investment decisions already being made to invest here in america in auto parts capacity and auto capacity the other part about it, joe, i think that's really important to understand is that back in 1994,

things like biologics and digital trade really didn't exist. and so this is, it's a tough and smart deal it's also cutting edge so we have really good provisions there which will benefit all three countries. so i think from a marked point of view, it's certainly bullish. >> what was the last-minute changes or concessions on either side do you know what actually happened to get here >> i can shed a little bit of light on that. basically, the deal in place, the big pieces of the deal were in place when the deal was signed there was a disagreement over dairy. there was a disagreement over this thing called chapter 19 which is a dispute resolution mechanism that the canadians really favored so basically at the end of the day, we got much more access for

dairy. and canada is going to have their chapter 19 and it's all good because at the end of the day, the bigger piece of this -- joe, this is a $1.2 trillion deal. that's the annual trade. it's literally the largest trade deal in history. and that's what -- again, i think that's what we need to focus on it went up to the 11th hour. but, you know, now we're here this morning futures are up and it's all good >> do you give any cred to mexico saying, come on, canada let's do this. >> it's interesting you say that i think the current president, the incoming president, and one of my favorites on the mexican team played a very important role in terms of moving everything along again with ambassador robert lighthizer and jared kushner a lot of this stuff happens kind

of in the dry negotiations, but a lot of it's interpersonal. and so, i mean -- look this is a ratification of president donald j. trump's tough approach remember, joe, this isn't a one off thing. just last week at the united nations, the president signed the south korean deal. amazing. we entered into negotiations now on fast track with japan there was an announcement there. interestingly enough, there was a trilateral announcement by japan, the eu, and the u.s. basically condemning china's forced technology transfer on all cylinders, this president is quietly putting together the greatest performance on the economy and trade of any president in history >> peter, does striking this give more of a mandate to keep its hard line stance when it

comes to trade negotiations with china. should we say the u.s. is less likely to back down because of this win with mexico and canada? >> i don't think anybody in the world thinks this president is going to back down on anything the china problem, and it's a big problem, is simply at the intellectual property and technology level is that they steal our stuff. they force the technology transfer they evade our export controls once they use all their unfair trade practices to gain a huge trade surplus, they bring those bags of money over and buy up places like silicon valley and guess what there's broad consensus across the aisle, cable news across the spectrum everybody should read that statement made by japan, eu, and the united states on china's behavior it's an eye opener >> when you say nobody thinks the president is going to back

down on anything, it sounds there aren't negotiations and the president is not likely to back down. last week, the president at the press conference said he would phone president xi the next day. could you give us an update on where that is. >> i can't shed any light on that what i can tell you is that it's really important to understand the strategy here. president trump basically has declared that we will no longer be the piggyback of the world. all we seek is fair and reciprocal trade that's the approach we take. and when countries come to the table and bargain fairly we sign deals. and south korea. these deals that we're going into are good for both

countries. in this case, all three countries and north america. the china issue will be ongoing. the reality is that china engages in a wide range of unfair practices that are harmful to the global economy and what's called the liberal trading order and something's got to change there. structurally if this is going to go into its faster gear over the next decade, we really have to fundamentally change the way china relates to everybody >> comments on the left about this deal. i read trump doesn't really like it, he needs to look more closely at it. and a couple other democrats, one said i didn't vote for nafta. and this one isn't significantly enough better for me to really support this after the election, nobody knows what congress is going to look like, obviously. but do you think this has a --

the left likes free trade -- or doesn't like it. they have liked it recently because they've been saying trump is anti-free trade then when they have a chance to go back to it, it's historically where they are i don't know if they'd know which side to be on. how is it going to work. >> here's what i recommend i think everybody needs to look carefully at the deal and give it a fair shake. i think as you probably would agree with me that between now and election day, there may be some posturing on this but after election day, which is when the time that this will come to the floor on congress, people will look at it and understand for main street and farmers and ranchers good for america, good for north america.

give this deal its due it is a smart cutting edge deal. it's doing things no trade deal has ever done. we'll see what happens >> let's say that we put on a half a trillion at 25% with china on tariffs let's say we did that. let's say it lasted for awhile do you think the stock market would continue to hit new highs? or do you think that would be a negative for the markets and second -- the second part of the question, what do you think the markets are thinking right now? that trump eventually makes a deal with china? or they really just shrug off the implications of what that would mean for global trade? >> so that's a great question, joe. half a trillion dollars, the way you phrase it, of tariffs, it's a big number but it's a very smart part of overall trade and the overall macro economy.

i think from wall street's point of view looking at this, i think wall street understands that the last 15 years of china's bad behavior in terms of stealing intellectual property, dumping products on the market, putting companies out of business. i mean, ge, for example, ge has been a victim over the last 15 years of the kind of thing china has engaged in i think wall street is going to look at all this and say this a good for america in terms of having china being held accountable. and they are -- i mean, look they're sloughing it off because it's a big number. but a small part of the overall economy. by the way, joe. this economy is doing great. i mean, it's unbelievably strong right now. as we go into the holidays, every american that wants a job can get a job and wages are rising you can't get better than that >> this is walter isaacson i was wondering if an agreement

you now have with mexico and canada, you can enlist them for a more united front to negotiate with china >> great question, sir last week i think the statement that was sent out by japan and europe as a template just for the kind of multi-lateral allied cooperation against china that we need right now. and i think a lot of the motivation for this particular deal, the new nafta. the new usmca, mexico supply chain was getting harmed by chinese dumping. serply the u.s. was as well. so i think that canada, mexico, japan, the eu, we all understand right now that china's behavior has got to change. they've got to stop doing what they're doing for the good of the global economy

>> and really quickly, we were sort of worried that mexico's new president would be a challenge to the united states do you think there's going to be a good relationship between the trump administration and the incoming administration in mexico >> well, i know there's going to be, because there already is they've had phone calls. it's very warm relationship. this deal today couldn't have happened without the cooperation of the incoming president. and so we think that this deal today -- one of the key strategies underpinning this administration is economic security is national security. so when we sign a deal like we did last week, when the president signs that deal with south korea, that's good for the economy but also helps stabilize the region when we enter into a deal like we do today, when president trump sees this vision, this will help mexico's economy boom,

middle class grow. that helps our national security and stability as well. so i think this is going to be great for relations between the three countries. it puts aside an irritant that's been going on now for close to two decades. and it's the dawn of a really new era in the economics and national security for north america. >> all right, peter. thank you. the president is promising a rose garden. at 11:00 he's going to be in the rose garden having a news conference >> i'm going to be there i'll wave to you, joe. >> oh, you're going to be there. >> you're going to be there? >> not yet not at this point. i haven't joined the -- i know you think i have but i'm not part of the administration yet there it is there. news conference on the usmca this morning at 11:00. glen anderson, do you remember that song? >> yeah.

>> i beg your pardon, walter now back to our top corporate story this morning general electric naming a new ceo. david faber joins us from the nyse with the latest >> good questions earlier when i was on the phone coming down here to the nyse don't have answers to all of them i don't know if you've seen, but the stock itself looks like it's going to be up rather nicely investors in the early going here prior to the market open responding positively the idea mr. culp will be both ceo and chairman of this company so you can see there we're talking about almost 14% there it is. 14%. again, let's wait until we see when we open an hour and 12 minutes from now but a couple things for investors to keep in mind. melissa you asked does this mean they'll revisit the plan to break up the company or go further than what was announced late june which was we're going to separate out health care and eventually sell down our

ownership of baker hughes aeg company. and the answer i'm getting ri tt now is no. mr. culp was there when the plan was put into place the expectation is they're going to stick with the plan to separate health care and eventually oil and gas business. but may try to do it in a speedier fashion and that, in fact, seems to have been one of the key problems that some of the board had with mr. flannery which was simply paralysis by powerpoint kind of thinking and thinking and thinking but not moving as quickly as people thought needed to be the case given the problems at ge and they continue to be problems certainly in power with the $23 billion charge much of that, i'm tolding wi, ie to that acquisition which was under imelt and writing it down.

so there is that that had nothing to do with flannery well, not nothing. he obviously was part of that deal to bring it in. but that was under the leadership of imelt. we don't have any answers, we won't get them necessarily is the dividend you've got this impairment charge are you going to get a rating agency downgrade i think that's the key question. therefore if you do get downgrades, does that mean you're in a position to maintain the dividend more than a 4% yield that's something i think the analysts are going to be taking a close look at it i know the stock over this morning thinks the dividend could be cut let's keep an eye on the dividend where we go from here, culp doesn't even have an office at this point just has a desk, apparently. it's going to be awhile before

he gets himself fully settled there. he's the only director who i think bought stock back in the summer so he's still a little bit under water. but doing better today with his own ascension as the chairman and ceo. melissa, to you. >> was larry brought in by the trien team >> andrew, was that you? >> yeah. it's andrew. >> i don't think it was necessarily trien that was behind this. however, i think they were fully supportive of it >> how much of this was activist promoted >> well, you know, walter, trien is activist. already on the board there's no other activist that wants to take a shot at this at this point it's probably too scary. i think this was the board acting on its own along with of course ed garden who is the representative from trien who has had a hard time with this position for quite some time at

this point but again, it seemed to be frustration on the part of some board members. tom horton taking over as lead director amongst them with the rate and pace of change and the feeling that decisions needed to be made in a much more quick time frame >> and horton came on with culp just this past april >> that's right. >> does that mean a change in the strategic review they're doing? >> no. it doesn't appear that's going to be the case it appears they're going to stick with a plan in which you separate out health care or separate out and sell down the ownership stake in baker hughes. but beyond that, you just want to move more quickly it doesn't appear they're going to, for example, walter, take a look at could we really get rid of aerospace they feel at this point they've got the businesses they want in

place that do work together. jet engines and turbines for electric generated facilities are similar as you know. that's a lot of where the business is right now. they feel like they did the bulk of the work with that decision to separate out health care. so we're not necessarily expecting -- and culp and horton were part of that decision, by the way. we're not expecting further moves to separate. >> i have 28, 27, whatever how much of it was ge? it was half, probably. >> of david's tenure >> yes probably our parent company for at least half of it. i'm just wondering -- >> oh, more than that. yeah >> i'm wondering how much you got left i can't find 800 shares. it's somewhere, i can't find it. so i'm stuck with it >> i got nothing >> you got nothing >> i got nothing i got very lucky again, we should always point out for our viewers so they know, we can't own stocks.

the only one we did own was ge because it was part of our compensation although frankly we got all those options all the way up they've expired worthless as we know >> i've got them wallpapered >> i don't expect anyone to cry for us but yeah like so many people when you sell when you needed access to the capital, i got lucky so i'm done. i'm long done. >> were you buying a plane or something? >> yeah. it was that. >> okay. >> you need more wallpaper i'll give you some aol time warner stock >> "new york times." now he's going to tell me -- >> it's doing well >> failing >> failing up. which we know a lot about. >> thanks, david >> thank you, faber. okay coming up when we return, mad men are storming new york today. ad execs in town for advertising week we'll talk to at&t's leader brian lesser in a bit.

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at&t renaming its advertising business it will now be called xander joins us at the start of advertising week, the ceo of xandr. what does this encome paupassen? >> the existing advertising business and we had an internal data look to bring in all the data of at&t that's all rolled up into xandr. >> in terms of the breakout between tv and digital, what sit now? >> the fastest growing part of our business is what we call advanced television. we saw quite a bit of television advertising. but the most popular products we sell are television advertising powered by data. using technology to direct

advertisements on a household level. so what that means is you and your neighbor could be watching the exact same program and getting different ads within the same content based on the behaviors of your household. >> i've got at&t on my phone and i use at&t services on my phone. >> thanks for being a customer >> could you take what i do on my phone, know stuff about me, and direct things on the television i'm watching because of that? will you be able to aggregate all my data from the phone use, who i'm calling, where i've shopped? >> some of that we can use some we won't use because of our privacy policy who you call is not relevant to how we're going to serve you ads. but if you're on your browser on a phone and you are browsing content or using directv now on your phone, we can use that information to direct ads both on your phone and on your television. >> if i'm on amazon and buy a

blue buttondown shirt, will you know that? >> no. that belongs to amazon >> if walter was looking for button down shirts on safari, do you know that? >> potentially, yes. >> what's there to protect me from knowing far too much about what i do? >> at&t is a 140-year-old company. we have a lot of respect for our customers and therefore how we treat data is a big part of our business and our policy is dependent on us having that relationship. which means customers should always understand how and when we're using data they should always have choices as to how we use it. >> how would you know? >> is there an opt in? >> -- use safari to search for something. >> because it's safari versus if i'm looking on something else. >> most of the information we get has to do with how at&t interacts with you, andrew if it's an app like an at&t app, if it's directv, if it's other

information that you give us being a customer -- >> do you use brokers? do you use advertising brokers do you have relationships with an amazon if i'm searching on amazon >> we don't have a relationship with amazon. the policy is the data that we collect from our customers always stays within our systems. and we don't sell data for advertising purposes >> but you're not buying data from extra others to supplement your own >> yes but when we buy data to supplement what we understand, that's anonimized data it's an anonymous version of you likes to watch certain programs on television. you have certain apps on your phone. then we can buy data from brokers to augment our understanding of you and serve you relevant advertising

>> do you have a list of every app of the phone you don't? okay >> do you -- is it even possible to quantify the benefits of the at&t pro am? at pebble beach. is that part of your -- >> we're -- >> there's so many various ways that helps at&t. i don't think you could quantify that >> leaders are gathering in new york to look at measurement. that's the top of our list to understand how valuable pebble beach is. >> you know tiger's back too i'm sure tiger's going to be there at that. >> i hope he'll be there. >> do you see a day where i'll be watching tv, you'll know i'm watching tv on a big screen, and you'll start popping messages up on this screen or vice versa? >> yeah. if you're using directv or use

directv now and have an at&t phone, we know that you're watching one and simultaneously using another. and in fact, that's ka ba big benefit to us. our purpose is to make advertising matter to consumers. that's a great way we can do that fop say you're watching something on your large tv in your living room and we can serve you ads on your phone without necessarily pausing that >> in what kind of -- i guess what i'm asking is, if i'm on twitter which is not one of your apps, can you instantaneously buy an ad on twitter -- you guys pay so that the whole experience is one how does that work >> part of what we're trying to do is partner with other digital media companies so we have the capability to do that. but you can do it now if you're -- both experiences are on at&t. >> if i don't want you all to have my data and know everything, how do i opt out show me.

>> you go to a website and opt out. >> and i can do it with one click right now? so we should try it and see if i could? >> i could show you how to do it >> we can do that on the commercial break thank you so much, brian nice to see you. >> i didn't know you had more serious questions. mine was kind of a joke. >> i'm sorry it was a way to end things >> end things. then you went back to, like, i'm wasting -- coming up, john allison on the state of the nation's ayctor st tuned you're watching "squawk box" on cnbc

the senate banking committee will hold a hearing tomorrow to discuss economic growth and regulatory relief. witnesses from the fed, the fdic, and the national credit union will all be there. joining us now, former bb&t ceo john allison currently an executive and resident at the wake forest school of business good to see you again, john. >> good morning. >> i thought you -- we're going to talk about this in a second, what we need to do you got pretty close to being part of this administration on a couple of different occasions, didn't you

how close did you actually get are you still possibly going to at some point be closer to the trump white house than you are right now? >> joe, i had the opportunity to talk about the secretary treasury job i was actually offered a position on the federal reserve board which was interesting but i felt like the federal reserve's challenges were very difficult in this kind of environment. i didn't think that i would be in consensus with some of the other board members. so i decided not to join the federal reserve board. i probably won't get involved in public policy. it's not my arena. i do better in business and teach teaching >> if i read between the lines, you might even be normalizing interest rates more quickly than the fed is right now which would put you in opposition with a guy that would be trying to get you to do things

you think we should be higher than we are right now in terms of interest rates, don't you >> i do, joe and also, this is esoteric, but on reserves it's very dangerous. it creates the basic money supply but not turn into loans it ends up moving capital to the government instead of private enterprise i think that's not healthy i'd get rid of that. >> where are you on the trade war? would you be butting heads with the president on this as well? >> i would be. i'm a free trade guy now, to the degree that he's arguing he's going to get better agreements, that's an argument but fundamentally i believe in free trade i think it's been phenomenally good to the united states and phenomenally good for the world. we only trade because we get better >> we've made -- is it fair to

say we've made strides rolling back some regulations that went too far in the banking sector and what else do you expect to hear tomorrow? >> well, i think we've made some progress part of it has been legislation. most of it has been how the regulators actually regulate unfortunately we don't have rule of law in the u.s. it gives a wide range for how they're interpreted. and the regulators have really tightened down after the financial crisis and since trump has been elected, they've let up a lot. that has been healthy for the economy and the banking industry i hope we'll see some more legislative moves. i'm a big advocate that the way to really manage the industry properly is a strong capital position then let banks innovate and take different kind of risks. one individual bank making mistakes is not what we need to

worry about. what we don't want is systematic failure. >> john, what's your take on how financials are trading we're in a very good economy by all accounts business confidence is high. consumer confidence is very high business optimism is at records. yet bank share performance has been dismal this calendar year what do you think is behind that >> you know, that's a really interesting question to me the banking industry overall is doing very well. i think there's a question in some people's mind of what the technological implications are for the industry can non-bank competitors with much less regulators gotten better, are they going to take a large part of the industry's business and also i think there's concern about the implication for rising interest rates i do think the better banks will benefit from rising rates. but i think the market is concerned about will rising

rates be detrimental for the industry. >> john, thank you appreciate it. i hope you're doing well down in north carolina and you're fairing well we appreciate your time today. thanks >> thanks. take care. >> former bb&t ceo john allison. when we return, our guest host walter isaacson sounding off on today's top stories we'll also talk about his new paperback that's coming out. and then at 11:00 eastern time, stay tuned to cnbc for coverage of president trump's rose garden news conference on the trade deal with canada stay tuned you're watching "squawk. back in a moment 300 miles an hour,

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some stocks to watch this morning. cal-maine missing on the top and bottom lines increases in pricing honeywell shares are higher after the company announced a deal to buy trans-norm the company specializes in warehouse automation that stock is up by more than 1% and praxair after merger with linde was approved two more approvals needed from the u.s. and south korea to go through.

another executive change in c-suite. pfizer ceo ian read will step down burla a veteran of pfizer of 20 years or so. we're back with guest host and cnbc contributor walter isaacson he is the author of "leonardo da vinci" also other great books as well the paperback is now available >> today thank you for touting that i appreciate that. >> you're welcome. we, off camera, were talking about social media do you think that there's a way in the future to reform or rehab the -- what i think are deleterious effects? there are things we haven't factored in. >> i said twitter and facebook, which we're all using now, will be cohesive. it has been so destructive and

unleashed the worst ininstincts. there's news today nobody a noticing but the investor of the worldwide web is announcing today a new set of tools called nrupt. which means you can own your own data we were just talking to brian about the at&t data being owned by them. where you can have almost like dropbox or something but you can have websites and services that say you control your own data. and he's trying to get these protocols to replace the way we do the web this would make a web and an internet which had control of your own privacy but you also knew who you were dealing with it's not blockchain based. it is basically like the worldwide web protocols. but he wrote those many years ago. 20, 30 years ago and he's saying now we can make tools so anybody -- it's a

platform upon which you can build. in which you allow people to know who they're dealing with and own their own data this type of change is disruptive to a google, a twitter, and a facebook. and i kind of think that's what we need now. not more government regulation, but more innovation that allows us alternatives to the type of social media that's so introductive >> i want to touch on two other issues elon musk. you wrote the book on steve jobs some people have compared elon to being the new steve jobs. i don't know what you think of that and what do you think of this news over the weekend? >> quell,well, i do think the bd was derelict early on not getting to where the s.e.c. pushed them to be. and all the governance issues. i kind of like the fact he was banned from tweeting without showing it to his lawyer

i think maybe that should be applied to a much wider segment of society >> do you think that should be that way across all of corporate america? >> i think obviously whether you're the president of the united states or the president of a company or joe kernen, you should be held accountable for your tweets. and this is what musk didn't realize. >> is musk comparable to steve >> i don't think so. i mean, they were both -- steve jobs was ousted in 1985 by his board in a way that the board of tesla did not do to musk it was a very good learning experience for steve jobs. he comes back in the late '90s and creates the most valuable company on the planet. i think steve jobs was much more disciplined, much more focused, and in some ways had a magic to him in a way we've not seen in the building of tesla cars at the moment in terms of producing them, not

consuming them he knew vision without execution is just a lugs nation. that's why steve jobs had people that could execute >> i'm not a -- i don't twi. tweet while intoxicated or is in >> in this day and age -- you don't see any good tweets. >> you step out more than i do on twitter >> i don't know, i just look at -- >> don't you think it is destructive? >> satan is down there >> and everything. >> it enables people to be just gravitate towards their own try. >> it brings out a lot of good of human nature but there is always bad >> you can put it on and you're anonymous and not held accountable. would you be moral and his argument was probably

not. social media proves that >> one question, you have been o the board of public company before based on the state, you have to have a woman on the board and two and three based on the deadline what do you think of that? >> it is best the government do not dictate the governance of private companies. >> i think it is great >> you ought to have a woman on the board. >> right >> i am not sure every state should start making laws if you do that, you should talk about minorities which is also important to have on the board if you are designating how many minorities i don't like slippery slope arguments because i think that's a lazy way of thinking it is a complicated process for a state government to tell people, companies. >> fair enough >> thank you verothn we return, jim cramer

li fm e new york stock exchange we'll get his big take on this story when "squawk box" comes back

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> let's get down to jim

cramer were you blindsided by the ge news >> i have to admit, there is some news there, no one cares. this is some what remarkable because john flannery just started. i don't know -- i do feel bad for john he was trying to deal with the hammer that jeff left him. the hammer is too hard he was fantastic i think the company is in better hands. >> do you think some of this is a clean slate from the prior regime or something or is there more to it that we don't know? >> i think you are right, it is a clean slate. while the statement basically saying the plan of flannery's is going to be enacted. everybody is on the table is

what the culp telling us right now. it was amazing, flannery just could not do it fast enough. he was not getting the job done. let's see if it stays up there >> jim, i notice that you're tweeting about us, it is walter, i guess you disagree with us on unvetted tweets. >> you are right i did that because i love you and just thought it is funny i think there are a lot of people who could benefit on what i regarded to be dissemination by somebody else you should not disseminate by yourself there is too many issues that could happen >> what's going to happen to tesla's stocks >> it is going to head back to where it was

this is a great deal shareholders should cheer it >> jim knows how to tweet. >> jim knows how to tweet. >> quintanilla twitter. >> tomorrow on "squawk box," >> tomorrow on "squawk box," don't miss ron baron it's like having your cake and eating it too. ask your broker if they offer winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.

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thanks to the great walter isaacson >> thank you >> we got to go. >> make sure you join us tomorrow >> melissa you are great. >> my pleasure "squawk on the street" is next ♪ good monday morning, welcome to "squawk on the street," i am carl quintanilla jim cramer is back to the post 9 and david faber is here. >> u.s. and canada reached that agreement on trade and flannery is out on ge 10-yr is below 308 we'll begin with the g