the money being spent? >> you have to feed the animal what it wants. you take the largest five stock. they do not want to be downtown. >> great talk. >> great to have you thank you. >> that does it for us today, make sure you join us tomorrow, right now it is time for "squawk on the street" good monday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer david faber is in boston with exclusive ceo larry culp the bond markets are closed for veterans day cpi on wednesday and oils does bound on talks of the saudis the big story of the morning is

david is in boston with ge david, interview with culp, what's the discussion of the day? >> you know we are going to be talking about a lot of different things, carl, the big picture is ge's future. we got to talk about the assertions he made and see his responses and mr. culp has been on the job for 42 or so days he became a director in april. so many different things that are so important for the future of this company that we are going to try to get through with him and the first time he has actually done an interview and while he was ceo, quite a successful one for 14 plus years. not a high media profile at that company. we are very much looking forward to have the chance to sit down and discuss so many issues with him. >> you know what david i got to

tell you it would be calm it was a source of fund that made it so some of the anywnaysr would have to deal with power. power is the problem my problem is i can't see power being contained without taking some new capital in unles unless -- jesus, stock offering? i don't want to hear that. >> no, during the conference call as you know mr. culp says there is no need to raise equity financing. we'll ask him about to see what there is if anything is new to offer. the ge company, jim which they have a lot up until july of next year but certainly there has been some focus of a way to accelerate that to your point. those are the key questions, are they, jim? what did you make of the

movement and stock on friday it was down as much as 9% at one point. certainly ending downward of almost 6%. >> what it felt was a lot of people who had been in it, betting and could turn -- until we see these big issues dealt with it is going to keep ongoing down that's rather amazing. it means that aerospace means nothing and healthcare means nothing. you got a couple of divisions like oil that are now starting to go down specifically. look at lumber jack or halliburton. these stocks are back to where they are when oil was $26 a barrel cording or selling the bad but it seems that power is bad that he had to sell healthcare in order to pay for powell.

>> yeah. >> david, we'll see you in a few moments. >> i am going to ask him those questions. >> huge interview. >> oh my god we'll check in with david with larry culp after the break meantime, stocks are on track, extending their losses from friday's session oil prices as jim notes are on the rise after the saudi saudisaudis saudis -- sighting and softening demand the opec meeting is next month i assume conflicting interest for ge verses your fed calls oil comes down to the point where people are saying it can't just be demand really kind of temper by china i got to tell you, i was looking into numbers, i was doing some work on the tankers.

we are shipping a tremendous amount of oil. that oil has gotten to the gulf. we'll be doing 13 million barrels soon we are flooding the world with more oil than the saudis can take off once you got the pipes out, they turn on. we don't have room for canadian -- look at the refineries they're going down we are getting more money for our oils people don't realize that tankers that eminent them here >> b of a today says the price break even price is 39 >> i think we are some what worried of the president i they wow, we are coming down to 50 for ours we can go to 45. positive note down for oxy

today. the pipe is coming up. >> you mention this a million times. >> i was waiting for the tanker rates to double. and it doubled that has to do with our oil going to the rest of the world replacing iranian oil. it has been a not talked about story. it should be front and center. >> out of money call going into sanctions. amazing. >> when we come back david is in boston with ge's ceo, lryar culp. don't go away. "squawk on the street" will come right back i am a family man.

i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools

that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. welcome back to "squawk on the street," i am david faber at ge's headquarters in boston. very nice to be here and nice to have larry culp with us. thank you for being with us. >> good morning. >> good morning and welcome to boston on veterans day >> yes, that's right

>> let's get right to it on friday of the stock price may be the reason why and we are happy you are talking to us. the stock came out on friday with the new report which you basically says in a lot of things $100 billion in net liability for a company that's generating negative free cash flow and even after the dividend cut with deteriorating fundamentals. is he getting any of that wrong? b, if he's not, what do you tell investors to keep in stock >> david, we looked at the last two weeks. the stock has been under pressure no doubt about that. i think when we announce on our easte earnings call that we'll take the dividend down. at the same time another

unpopular decision but one that was straightforward and that was to take guidance off the table given the fact that we did not have the competition to run our power business at the end of the year that did not do much for our institutional holders. if you step back from all of that and given the way stocks traded, i think we make the same decisions today. those were the right decisions to make sure the company is facing forget ward and dealing with the fact that we have a lot of leverage. we all agree in that regard but we have a number of options to bring that leverage down overtime and the company is committed in doing that. >> that was a focus of a certain extent of the conference that took place 11 days ago where ever we are. it was not necessarily about liquidity. you seem to agree although the numbers may differ what can you do particularly

when it is not just the amount of death but the fact that ibita and free cash flow is not going up >> a couple of things. it is an important distinction that you made to liquidity verses leverage. two weeks ago, folks were understandably asking the liquidity question i think we put that to rest given the fact that we got 20 billion of cash. we have a robust program and $40 billion of bank line that gives us a foundation >> you can tap two of the 40 boll dollars >> whether the agency witness the downgrades, we need to bring the leverage down. i think we got plenty of opportunities through asset sales to do that in the last six weeks is my sixth week on the job. i heard from a lot of people across our markets, people who

have interest in ge assets i think that's confirmation that we have quality franchises the and frankly we have options. >> are you going to quick in the pace of asset sales at this point? is there a sense of urgency? very much a sense of urgency as john wooden the famous basketball coach says, he quit but don't hurt healthcare example, tremendous franchise, we talked in june about ipo. we have flexibility and options there. we could preserve our tax-free there is a lot of cash there given some of the estimates of value that are out there we are tracking very well with the closure with our transportation business. we'll end up and just under 10% of that business and equity and another option there and a lot of people talk about baker hughes

a $28 billion market cap company after friday's closed. so a lot of options just in those three to generate real cash to bring that leverage down >> why not accelerate that people had been focused on it and the price of oil are all over the place it may not be the best time from a valuation perspective. you still use the word several years, i think is what i saw in here in terms of exiting that position why not get moving on that soon. >> i think we'll try to look at everything and all of our options with the sense of urgency. we are not going to talk with great specificity with certain opportunities and past we rather talk about what we accomplished after the fact then negotiate in public. >> what should we think about in terms of leverage then? what should investors be focus on you see the s-spread has widen

as well. does that concerns you >> there are a number of ways to look at our leverage levels. we have no high priority right now than bringing those leverage levels down. it is important to strengthen the balance sheet and our inv t investo investors, everybody and the future of the company and not to mention the fact that it is tough for our business to play offense as often as they should organically and inorganically with the balance sheet and the shape that it is in. >> another contention made by mr. tusa, fundamentals continue to deteriorate, not in aviation or healthcare but in power the number of tuscaloo-- 41% a 2020 when you see or hear those numbers, does it make you shiver >> no. it is a cold morning here in boston but i have note shivered yet.

>> we are working hard with the power team to get better grounding in our reality and we aim to run that business differently. i don't have the conviction to off offer up numbers in the fourth quarter but we will in time. that's what this last week and six weeks have been about getting closer to opportunity and challenges in that business. we probably held on with the benefit of hindsight and held on too long to a robust revenue outlook for the year we'll fall short of that that hides a lot of the progress that the team has made in terms of cost production we produced our facility footprint by 20% >> good thing to doing a manufacturing business but it is not enough >> has power bottom? >> we are getting close.

>> will you know when you are there? >> we'll know when we are there. >> like any business facing both cyclical pressure, it is a little bumpy on the way down we can have good line of sight in this business we have $94 billion of backlog that should give us the potential to run this business not only better but with better visibility >> i mention of course, the director as of april and ceo jobless than six weeks have you in your mind diagnose of what the issues so you can effectively deal with them and get to the bottom quickly and potentially start to pave the way forward? >> i have done this long enough to know that there are always things you may not know. i feel pretty good that we got line of sight on the issues that we can manage to improve the performance of the business and address the risk one of the things we are going

to do that we announced on the earnings call is really stop manage tg busine managing the business at a consolidated levels and run the street p&l's we have a big power organization when you are managing at as consolidating levels, it robs you the visibility relative to revenue and cost and cash opportunity, business by business as we do that, we'll be able to address the specific issues and our gas franchise and other businesses within the power. >> have you been bringing in new people do you need to change up personnel? >> the team is going to continue to evolve, i have said on the earnings call and i have been impressed with the people on ge. they are smart and talented. they got an above average level and resilient and we are bringing in new people we have

in gec our newco comptroller, we brougt other members in, there will be other changes as well. some folks who are here today will be in different roles and others will be promoted as we complement their strengths and skills with noefolks on the outside. >> did the deal break power or was was power on the road that may not prevented as well. >> it is what hard one to answer if you step back and look at the hands of russell's and his team were dealt, there are three things in place. first, the way we restructure and the way we had been running this business. those things relative to market of our reality, we need to

embrace them in order to change them in term of our own operation, we have a lot in our control. we can control our destiny in that regard. >> a little more than a year ago, i sat with mr. flanner here, he talked about having a handle on power. what gives you the confidence and given the experience that you have the handle on >> i have run businesses from over 25 years from the shop and the lab and the customer sight i take abbotts bottoms up apprh i could be wrong but i have a lot of confidence of what we can do to stabilize power and drive a better performance in terms of the top line and in terms o f the cash generation of business. we have seven billion dollars for cost being in that business today.

plenty of opportunity to run that business better >> you have other business that we tend not to speak as much aviati aviation -- you just alluded the plan of healthcare you said the plan is intact for one that the boardagreed with and you came to back in june of this year. >> well, what i would say is this strategic intent that we announced in june stands today the plan basically has two strategic pillars. the first deleveraging and we talked about how important it is we want to run the company differently. we want to be a more detraditionalized business and focusing more on the discreet businesses like aiviation and healthcare

the detail s is how we get ther. 19.9% of healthcare or something more we have a lot of options those details tackle issues far under review we'll be smart about how we faze in sequence of those moves they all serve the strategic intent >> what about aviation tl is there not an tuopportunity to monetize a little bit and show some values. there are a lot of opportunities here i would not dismiss anything once and for all there is no question you said a moment ago aif y aviation is our crown jewel. i think david's team did a tremendous job going forward we would not say no for all time to various options but options along the line of what you just described not high on our list >> our customers, aviation

signed up for long-term agreements, are you hampered by credit rating or long concerns of those customers >> the customers i talked to could not be supportive. when i talk to them what they ask me is what can i do to help? if the operating level, if you are performing well for us, we need ge. ge is important for our business and the country. if there is anything that we can do, let us know. in terms of our degree freedom from an operating perspective, the businesses are up and operating without any challenge. >> that's been a pleasant finding. you know for many years for following and being an employee of the company as well

the conglomerate model was blotted -- it would seem to be going the other way. you have two strong businesses and one weak business, i wonder can you retan ain and attract te talent you need, if you do great aviation, you are going to do great to ge. you are attached to the power business and ge capital and long-term liabilities and things we don't know about that can impact your future >> right there is no question of the stock and criticism that receive. to continue to serve customers and be apart of the mission that we have and to serve the greater ge nobody is happy with where ever you are today.

they want your company to be on better footing and that's what we'll do every single day. can you attract the people you need to and keep the people that you want as well in that environment? >> well, we have to prove that out. i have been encouraged by the response i have gotten from folks that i have reached out to and folks that have basically contacted me directly and not everybody is going to be attractive to a challenge like this given where we are today. the people that we want frankly are -- they don't scare easy they're up for the fight and they're ready to fight and win >> that brings me to you >> you are 37-year-old ceo and 14 years later, great track. compounding of revenues of the stock price, many people would look and say -- what are you doing? why would you take this on given you had a strong reputation, made plenty of money, what would

motivate somebody to do this >> david, it was not an easy decision to join the board and led alone when the board asked me becoming chairman and ceo to take it on the decision points in both senses is were driven by the same logic first and for most, i know having looked at the company for a long time, ge is important what we do in terms of aviation and healthcare and energy, it is important and frankly this company matters particularly to the united states. this is a challenge of a lifetime and certainly worth doing as well. i go back to the annual meeting where i began to see ge shareholders and ge employees and pensioners, people who have been working for the company second or third generation, all unhappy of where we are but

again committed to the company and being a better place i thought if i can be helpful and serve those people, that'll be a good thing doing at 55. >> it is not like you are go i think to wake up tomorrow and have it all figured out and stocks can be double it is going to take and everyone you are right to turn things around >> exactly, i think i have the energy and runway to do this it has been a great six weeks but we did not get where we are in six weeks so it is going to take a while and i am signed up to do that >> finally, larry, when it comes to the stock itself and i hear from a lot of people and the halls of 30 rock as well and fellow colleagues who owned ge, they feel uncomfortable of the

unknown. that goes back to ge capital long-term liabilities and long-term care liability can you give people comfort. do you feel like having been a director since april and ceo the last six weeks where you know where all the liabilities are. the numbers are the numbers if no surprises >> david, i think if you look at cap capital, our intent is clear we have too debt overall we have two big of capital business we'll continue we got a number of great assets there. it is important that people remember we got assets that match the liability. it is a set up we took a big charge last year >> you scared the heck out of people to be fair. >> i think there was nobody who heard that news did not have

their breath stops for a moment. in terms of what we are doing, no issues of capital gets more attenti attention. in our management meeting and actuaries and boarding meeting as we go forward while it is not a liquidity pressure in the short term, we know we need to tend to that and overtime before we fully committed of every option that we can and derisk it for the ge shareholder >> somebody coming into help you in terms of an equity check. >> stock is on sale today. i am sure people are buying it and the mark et is open >> i think conditions change in the future and we may come back

and reconsider that. we are keen to do leverage we think we have a pass. that's the plain we'll work. >> larry, appreciate you having us in today. >> thank you, david. >> larry culp, ceo of ge >> a look at the s&p 500, at the big board today is hanger, provider of prosthetic care. in honor of veterans day today, never forget leverage is down sense of urgency and bottom empower is getting close. >> what that means is we are losing and we got to start in wi winning. he uses those quotes, the most sobering aspect of this was look -- why don't you forget

about us for a little while. there was no call to action whatsoever okay, it is a rebuilding here, maybe two years? we are not going to make the playoffs, don't worry because it is a rebuilding year and we'll not make the playoffs. i don't want that. i want to hear this is the time. i did not hear that. let's move onto other stocks that's tough because there are ton of people, carl, who are saying this is way over done and you got the buy it i did not hear anything that made me feel like it >> does it make you feel better to hear them talk about urgency or not >> well, if it was not urgent, it would be foolish. urgency does not lead to the conclusion that could be done quickly.

he's sticking by the idea where you bring it public and we worry about power, we'll get power fixed. i remember when the former ceo of boeing, when they're having problems with the dream liner, he came on "mad money," are you concerned and how about those fires? no why are you feeling confident? we are a great team. >> we'll check in with david in a few moments and get his take of what culp told him over the last 20 minutes or so. jim broadening out just a bit. the market is at large today as we are near 16 or 17 month high on the index >> when we look at reasons to sell international stocks, we have three the dollar is going up we have the fact that there is not anything that jay powell cares about. up those too

the fed's sheet is full speed ahead. g-20 is going to be so important, i think we are at war against the chinese. it is not over the war is not just trading. i think the time to own the internationals diminishing, meanwhile, the long knives are out for apple. momentum blows up. that's an apple supplier bernstein temper enthusiasm. this 198, if it disnoes not hold it is 188. >> jpm did trim their target they previously trimmed it on a dollar and this time they use declining iphones as an excuse lite is a big supplier >> what happens is that the money continues to go to clorox

to pepsico clorox in particular i think if you go back to drug stocks, you can't hide there forever. the big money, carl, does not want to be industrials and they are fearful of tech. >> david faber, speaking of owning industrial, what a great interview, your initial thought coming out of it >> listen, there is no easy answer as you guys know. jim, we talked about it so often and that's the case as well. you got to come in everyday and attack the problem the focus is on leverage you heard it that was the focus to a certain extent of that report on friday from mr. tusa that sent the stock down again the possibility of asset sales and not just of course the idea of accelerating something on

baker hughes the other assets that the company has access to. we'll be debating it and talking about it for sometimes to come, certainly taking away mr. culp determine to write the shift and be in this job, it would be for quite some time. fully prepared as you heard him say, he's only 55 years old and sees a future and being here for quite some time. >> it was a fabulous interview, you touched on everything and it was incredibly thoughtful. you let off with one analyst, i don't know an analyst that ever had the power over stock this analyst who i don't know personally had been so right that people are afraid to buy it until he turns positive. >> how could this man be in the conversation with the fabulous ceo and once great american economy? >> i saw your lips stop moving

which is good but i do nod actually have what we call -- >> i didn't hear it during the course of all that question. >> david, i like to say it did matter it is about how an analyst matters. how could someone, one analyst, stay negative and as long as he's negative, people we don't want touch him this is a great ceo, culp, this is a great american company, ge. it is a guy, it is just another guy writing about it how did he control the narrative and not this incredible -- >> that's a great question it is rare that we see something like this continue for some period of time without the final analysts are being wrong as it is so often the case i don't know the answer, i will put it back to you i don't know when it is sort of

come clear to a certain extent and he becomes less of a story or less of an influence, jim >> well, i will tell you what i think. he's still living and playing off of the mistakes that ml made ge is taking one particular interview. do not look back here is the mistake that the previous team made and we are not going to make them this idea that they never did anything wrong it is why tusa knows there are more bodies to be found. the past what tells you and informs you what needs to be done as long as it is in denial they'll not get to the root of the problem. >> that's why they call it legacy issues. >> i think that's right.

what immelt has to do is -- if he steps up and say these are the mistakes i made, it is time for immelt to say i am sorry >> let's hope that happens you mentioned athena, $5.7 billion along with sap. their second biggest acquisition ever >> it is kind of front and center and makes me feel like survey monk survey monkey which has been straight down. >> report is tomorrow night. >> maybe that's an opportunity i think sap is always trying to play catch up. what a sector. that's a wrong sector right now. i would rather own mccormick

spice than sap >> you are in boston >> yeah, i know, of course, the athena deal as you know we followed closely we did get it. 160 is where eliot started as you guys call. 135 is where they end up from everybody close to this, eliot played what i am told is playing a constructive role. they'll continue to be a minority and putting their business together with an old ge business and ge healthcare business that they bought not long back, guys. you know the idea to make this into a vertical software a service company, sort of transition to it and not something necessarily that you would be able to do particularly well in the public market. we watched the last two quarters from athena while this has played out it has not been good quarters.

so i think there is relief on the part of the company and to a certain extent of shareholders they are able to get it to the finish line. the opportunity is still there and the mind and monetize and so much of that robust. they have not yet been able to do it. >> you know they have not. i felt this company has so much data you know if you think of a company that sap bought today. if you look at what goes o on -- new relic and you say to yourself, how can this gem not be worth a lot more. the answer there is because the legacy was obliterated by bush >> jonathan bush >> not president -- he put us in a hole last night by a coin

toss >> happy birthday to carmichael today. >> he's so good. >> red hadt ibm and microsoft an get hub, these companies know where the actions are going to be >> it is it is trying to figure out what customers really want. that's a secular theme against that we have this fang which is now weighing on the market in a way i have never seen since i crafted fang. apple is down 4% today >> 196 >> will you look at that the long knives are out ever since they got rid of the idea they did it because of momentum and weakness to me, they did it because they're trying to change the way people think about it. it is sending money to mcdonald's and clorox and procter & gamble and pepsico and coca-cola and kimberley and clark. all the money is going that way.

they're all hiding in these stocks i got to tell you, it is going to get hard to hide there if everybody hides it >> because, what happens >> because they don't have earnings momentum. they're just by default. >> so pay to wait no longer works? we are one and done or you hear from navarro, i think the chinese recognized what they are doing wrong. >> you heard his speech on friday, right? >> navarro -- that is a speak that reagan gave against the voe soviet union that did not end well. the idea of communist regime change, that's what they really want they wants the communist chinese to become what we thought they would be when we put them into the wto. that's not going to happen >> that's a big one.

apple is trading the levels that we have not seen let's get to bob pisani. we are even on the advance decline line, we got strengthen energies and some of the banks doing better, materials, tech is the key story now. take a look, not just apple but the semiconductor group. apple is down 4%, that's below since early august for sure. micron and nvidia are all on the weak side. this is the second day of weakness for semiconductor stocks utilities are notably weak we have a couple of utility names involved in the fire in california right there that's dragging down the entire utility group. oil has been a rally what a disaster. i want to know, people asked me

throughout the end of last week why is oil stocks holding up so well you see most of them are up and balancing today. the key reason oil stocks have held up while oil has been going down is a lot of them have significant gas exposure, liquid gas as well as natural gas exposure if you take a look here in the last month, oil has gone essentially straight down. that's your orange line while natural gas which is the green line has rally significantly those are oil stocks and the reason you are having oil stocks holdup is because of the significant natural gas component a lot of them have if you take a look at oil the last month, stocks that have significant oil and gas, cabot oil and gas and everyone exxon and eqt, it has held up. if you look at the percentage of

sales they got from natural gas, it can be very high. i am choosing the one that has the highest exposure of natural gas. k cabot got 5.7% and eqt it is not just oil stocks. they're natural oil stocks two things that can help a year end rally. any news of some truths on the whole china trade front and maybe not imposing on the tariffs on january 1st the other thing is reasonable valuation rather, we are much al better shape than we were earlier in the year than the last five years. the s&p is at a 16 times and 2019 multiples it is cheaper, energy is notably cheaper. we are down 14 times the decline that we have seen the last few months industrial also are

significantly cheaper. average 15.4 the only thing that has not changed that much is technology. still a little bit expensive compares to its five years average and as we see some of the big tech names like apple coming down. that also goes closer to the five year average. carl, back to you. >> s&p is near the 200 days once again. oil prices getting a little pop here on this news of potential production cut dom chu is at the commodity desk >> after comments from saudi arabia that the kingdom and its opec and non opec partners are seeing some softening demands for oil and the cut in production are warned to keep the market relatively balanced and a little less volatile those comments are the latest evidence that major oil companies could work when they meet up together next month. you can see it has fallen by 20% or so since hitting highs for the year after being swept up in

the broader market decline those provide some relief at the pump the average price for a gallon of unleaded gasoline in america is $2.69 cents now it was $2.90 cents a month ago >> thank you >> it is one of those days where verizon leads and apple lags ahead of its lowest levels since july 31st. i index is down. we'll be back in a minute.

apple is going to weigh on your monday morning here, down back below 200 as j.p. morgan trims its price target to 266, this time blaming iphone weakness and some negative comments out of suppliers we'll get jim's take with the d opratewn almost 4% in a minu anst tding don't go away. breach your firewall in londono & 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... a moment of joy. a source of inspiration. an act of kindness. an old friend. a new beginning. some welcome relief... or a cause for celebration. ♪ what's inside? ♪ [laughter] possibilities. what we deliver by delivering.

dow down 178 here. apple, of course, leading the move down. let's get cramer and stop trading today watching some retail. >> carl, all the retailers have been strong except for one which is l grants.

well, wells thinks there's a turn the balance sheet was always good and i think it's a decent turnaround story they're all moving right from china so i think yell brands is for real what a turn. >> target 55 they do say not calling for an immediate inflection. >> but i like it more than ge. it's the cheapest retailer i followed. >> you're take on ge is being shared stock down below eight. >> there's a big print, bloomberg did a terrific piece about there's a huge print that

came on thursday i don't know where the stock is floating around. we're losing tech. when you see nvidia down 11, apple. we're losing industrial. we can't just all sit here and by mccormack spice but that's what people are doing. i think home depot is struggling between those who think it's a housing play and those who think it's a retail play and you say good-bye, i say hello. it's a beatles song. >> what's on "mad" tonight >> salute to the troops which is totally good news. we have fireeye, led by a vet, and we have starbucks which hires vets we have kevin johnson. but what a job he's done what a turn. what a turn. >> starbucks >> yeah, it's happening very quickly. i cannot wait until tonight.

this is my father's favorite. >> i wish he'd seen the super bowl i'm glad he didn't see last night. >> jim, as we said earlier, never forget, remember your veterans and see you tonight "mad money" at 6:00 p.m. eastern time when we come back, reaction to favors exclusive with ge's larry culp stock trying to wrestle with $8 and dow down 183 (john foley) i was there in chicago when bob barnett made the first commercial wireless phone call in 1983. yes, this is bob barnett in chicago. (john) we were both working on that first network that would eventually become verizon's. back then, the idea of a nationwide wireless network was completely unreasonable. but think about how important that first call was to our lives. it opened the door to the billions of mobile calls

that we've all made in the last 34 years. sometimes being first means being unreasonable. i'm proud i was part of that first call, and i'm proud that i'm here now as we build america's first and only 5g ultra wideband network with unprecedented wireless capacity that will not only allow for phones to be connected, but almost everything-- transforming how we all live, once again. (bob barnett) as you know, this call today is the first call that we've made on the cellular system. is it because so many go after it the same way, chasing after short-term returns? instead if getting caught up with the crowd,

the investment managers at pgim take a long term view. uncovering opportunities for alpha across public and private markets, while anticipating unforeseen risk, has powered our rise to a top ten global asset manager. partner with pgim. the global investment management businesses of prudential financial, inc.

good morning welcome to "squawk on the street," i'm carl quintinilla with sara eisen at post 9 at the new york stock exchange. david faber is in boston a ge's headquarters dow is down 200 points apple below two hundred. dollar at a one and a half year

high and more. >> our road map begins with general electric david civeting down with larry culp moments ago we'll bring you the highlights from the interview and the stocks reaction next. >> oil is getting a boost as opec moves closer to cutting output the former president of exxonened n the arabian gulf will join us. >> and major averages lower. ever corps's founder and chairman roger altman sits down with us for outlook. let's start with ge david neighbor we are more with ceo larry culp not inspiring confidence with the stock falling hard again. >> stock still reacting to friday's report from j.p. morgan we were able to speak to mr. culp for 20 minutes from ge's headquarters in boston he's been on the board of directors since april but known for his long and successful

tenure as the ceo at danaher starting in 2001 we talked about the difficult road ahead that mr. culp makes no apologies for one area he said there should not be concern about liquidity. >> two weeks ago folks were asking about the liquidity question we've got $20 billion in cash. we have a robust program but we've only tapped two. so that gives us a foundation and whether it's an equity analyst, rating agencies witnessing downgrades we need to bring leverage down and we have plenty of opportunities throw

through asset sales to do that i've heard from lots of people across our markets people who have interest in ge assets and that's confirmation that we have quality franchises and options. >> has power bottomed? >> we're getting close. >> will you know when you're there? >> we will it's bumpy and unpredictable but we have a good line of sight we can have good line of sight in this business we have $94 billion of backlog, for example. that should give us the potential to run this business not only better but with better visibility. >> a 37-year-old ceo, 14 years later compounding of revenues of

the stock price, many people would say what are you doing this for why would you take this on given you had a strong reputation. made plenty of money what would motivate snob do this >> it was not an easy decision to join the board but the decision points were driven by the same logic first and foremost i know having looked that the company, ge is important. what we do in terms of aviation, health care, energy, this matters. this is a challenge of a lifetime but more than anything, i go back to the annual meeting

in april where i began to see ge shareholders, ge employees, pensioners people who had been working for the company second, third generation unhappy but committed to the company and keen to see it be in a better place. i thought if i could serve those people that would be a good thing to do at 55. >> this idea of a large shareholder, somebody coming in to help you in terms of an equity check is that on the table? >> the stock is on sale today and i'm sure people are buying it at the market open but we have no plans for an equity raise if conditions change, we can reconsider but we're keen to deleverage we have a path to do that.

>> didn't get specifics in terms of asset sales there continues to be a great deal of focus on the 62% stake in baker hughes, a ge company and whether or not there's a way to accelerate the sale of some if not all of that stake we'll have to see. this will take hard work and focus. eliminating a great deal of cost in terms of the corporate structure that isn't something he was in favor of it will take a long time carl, sara, back to you. >> we always think it's a good

thing when companies come out and ceos talk to cnbc and they're transparent in good times and bad. curious if you can tell us anything about how it came together why he wanted to talk -- he wasn't willing to call a bottom in any troubled spots. >> as you know has somebody who pursues ceos, i'm always trying to convince them communicating is better than not, particularly when there's something of a vacuum dan her was an under-the-radar company and one they didn't focus on unless they did large deals so certainly mr. culp doesn't have a history of communication in terms of sitting down but there's a need to communicate more fully even

if it's not necessarily all the answers that you have in terms of trying to establish that with the investor base. was it friday's action i wouldn't say in isolation it was. certainly we're gratified he was willing to do it and my hope is they will continue as he moves deeper into the turnaround. >> david, he's likely to get more practice. david neighborer in boston dow is down over 200 points. good morning to our guests, good to see you ge just happens to be our lead today but how do you think their story fits in this overall

market picture. >> it shows you debt can be powerful on the way up and down. when people talk about liquidity, that makes people scared so you look at the amount of distressed assets out there. they're getting bigger this is going to be an issue razz we move forward. >> are we saying the problem we see at ge are magnified by the fact the fed is raising rates? >> it doesn't help there was much more money willing to participate in riskier assets that's changing as interest rates are backed up. >> tobias, do you think the discussion about liquidity has happened too soon? are we jumping to debates unnecessarily? >> carl, i won't comment on the company specifically but it

creates -- not necessarily leverage but we've suggesting higher quality balance sheets are important. the bs are larger than they were before i spent a couple days with our head of credit strategy and there is concern about what happens as you start raising rates 87% of s&p 500 companys debt has been turned out you're seeing a number of technology companies having a much broader base. >> consumer staples are shining right now. tobias, what's troubling the

markets? we got that celebration post-midterms. the polarization is it the fed, china, strong dollar what's the main concern. >> i didn't understand the trade. even if you believed tru infrastructure stocks were outperforming, it was almost a nonsensical market on wednesday. the four issues are earnings for next year. what's the growth rate we've seen consensus come down it's probably moving to 6% there will be a trade deal in buenos aires not based on what i heard on friday. how far does the fed go? do they kill the golden goose? and when we're thinking about

the balance sheet structure we have a get a better feel far as swollen to it's a combination of things, not just one thing that causes problems with markets >> right we mentioned the pain in tech tod today. mcdonald's, clorox, coke, american tower how long can this defensive posture last >> for a while when people are now trying to look at safety, it's not about those 15%, 20% returns people thought would come quickly we have to look at our portfolios and say what is our expected return profile over the next couple years? in equities it's 5% to 7%. it's not 15% to 20%. so once you take that down you look at safety stocks and they become interesting >> tobias, what does it mean for your clients what are you telling them about where to be in next few months and into next year >> we continue to be consistent. we look at 2800 for year end we felt that way when we were 2600 and change a few weeks ago.

i liked the value names over growth names i like energy and industrials. not across the board we are not suggesting stocks go back to discretionary where there is more risk and these are areas that investors have a lot of stock in they were the leaders and every rally is an opportunity to lower exposures >> i'm not asking you about targets or favorite sectors but do you have them. >> energy is interesting at this point in time. especially opec comes together and puts a bottom on oil prices. you want to avoid the high multiple stocks. the go go stocks of the last 10 years. >> ten years not just the last two or three >> certainly fang has been in favor for how long now you look at the world we've lived in, it will change and we have to get back to the scenario where you're looking at low

multiple stocks. solid earnings and are consistent. >> shun, tean, tobias, thank yo you soon. coming up, much more from david's exclusive with larry ku. but look at the markets, major indices howevering 1% losses tech is feeling the most pain. wov worst performing group on the s&p. starting off with a bearish tilt quk t sheee "sawonhetreet" will be right back obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪

[ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he.

ge is having a ruff day today. faber sat down with larry culp and talked to him about the cash position at the company. take a listen. >> two weeks ago folks were i think understandably asking the liquidity question we have $40 billion of bank lines, we've tapped two. that gives us a foundation. >> joining us, john inch and senior analyst justin bergener. john, we have culp talking about bringing leverage down, plenty of opportunities to sell assets with a sense of urgency.

your thought >> it's the same game plan john flannery had that was approved by the board in june culp is just affecting the plan so i don't know that there's much change. i think he'll not have to come to a decision to plug liquidity decisions at ge capital but what is he supposed to say? he's obviously going to defend the company and say everything is fine but we think there's serious issues. >> do you think no reason to raise equity now >> well. it's not clear liabilities, which could amount to hundreds of billions of dollars, remain undefined. lawsuits, derivative litigation issues and other things. so maybe they are fine for the short term but it becomes a self-fulfilling prophesy and there is a lot that we don't

know there's a lot the company doesn't know they suspended guidance and the company is earning 25 cents of free cash. that doesn't suggest the stock is worth more than that all else equal. >> we're in this moment here, john where there's a debate about whether this is about liquidity issues or a degradation in major business units. it's debatebly at a peak power is in serious challenges the company is facing a torrent of distraction cost,ing inspiring people and people are leaving. culp did his best to shore up morale so the company doesn't hemorrhage more people and i think ceo said this. these are long term issues that have to get worked through here. no one quick fix, no silver

bullet it's a combination of a number of things request w capital at the epicenter of the challenges. >> so justin, i think you disagree with this and you have to buy rating on the stock why is that? >> yes thank you for having me on the show, sara and carl. i have a positive view of the stock. you have good management team, stock trading at big discount to asset value. we see over $11 per share of value for health care and aviation alone after the liabilities in the company and we think there's more liquidity options than meets the eye there has been news leaks earlier this year about potential sales of power conversion, of the digital core. we're not sure where they stand but if they were sold we could see $5 billion coming in the door within ge capital we think there's the opportunity to sell the business at near book value

without strategic affect on the aviation business so we think there are more options that people are concerned about and liquidity fears are overtrumped versus the underlying asset value it raises the question what is the sum of the parts analysis for ge. valuable assets like aviation and health kcare what should stock be worth >> i would dispute justin's assertion about a quality management team. this is the management team with the exception of larry culp that got us into these issues so i don't know how you can say it's a quality management team with everything having done what it's done with respect to the parts, it's an at best academic exercise companies don't trade to some of the parts. ge is on the hook for all of ge capital's tens of billions of

debt securities and the market understand what is the nature is which isb why ge is performing the way it is. >> one last question about something culp said. they have a good line of site regarding the trajectory for pow power how much credibility does the street give them given their history of portfolio management? >> thank you clear clearly the stock market isn't giving them much credit and that's obviously the problem child at ge and has been mismanaged for some time starting with prior management that's why larry culp can come in and focus on stabilizing power.

will it be a strong contributor to cash flow and earnings, no. but if he canstabilize it to break even free cash flow i think that will go a long way towards fixing operational problems and assuring people liquidity isn't as bad as it looks in 2018 and not as bad as feared. >> interesting good thoughts. appreciate justin, john, talk to you soon i hope. when we come back, it's been a rough month for oil. wti coming off the fifth negative week in a row but see a bit of a pop today as we hear opec talk about potentially moving closer to an output cut we'll go live to abu dhabi after the break. stay with us let's get started. show of hands.

who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

oil seeing a boost as opec moves closer to cutting output our steve sacedric is in abu dhi today with more on all of this chatter about cutting production, steve.

zbri'm having to pinch myself because i was at a key meeting in algiers in late september where they were talking about boosting as much production as possible the kingdom talking about 1.5 million barrels extra. the abu dhabi oil minister talking about more energy because they were worried about sanctions from iran. now they're worried about too much oil in the market and that's led to the market briefly into bear market territory extraordinary turnaround in five or six weeks from opec and i questioned them about was this policy creating volatility that's one big story the other story is around the iranco ipo i caught up with the ceo, i asked if it was going to be $2 trillion, $1 billion ipo and then it got kicked into the long grass and delayed a bit so i asked the ceo, is this still on

or is it gone? let's listen to him. >> the government announced they are committed. there are things people are missing that the government did to facilitate the ipo. we would not go through all of these things to have the ieb pot happening. >> so the government is committed to it happening. we've done the ground work and a huge wall street adviser has been involved in this i asked when it was he said 2020 that sounds like a long time frame to me so two big stories the biggest oil players are concerned about what they're doing on policy. the saudis have said they'll cut half a million barrels in december i asked the same question to alexander novak, the russian energy minister producing 11.4

million barrels which is a post-soviet high and we know the big oil companies will be grudging if they have to cut production again so big fascinating stories coming out of abu dhabi. back to you, sara. >> i'll take it. so many cross currents in the energy complex steve sedgwick watching a huge story. let's get to sue herera with a news update. canadian prime minister justin trudeau says he discussed u.s. steel and aluminum tariffs with trump over the weekend. they met on the sidelines of world war i armistice commemorations in paris. today trudeau said he made it clear that he wants a swift resolution. >> the issue of steel and aluminum tariffs continues to be of concern to canadians like it is of many american citizens and

compani companies. i hope we can solve this by the time we meet at the g20 in argentina. >> vice president pence will s on a trip that will include japan, singapore and australia he will represent the trump administration at the u.s. asean summit in singapore. and the death toll from the california wildfires now rising to 31 but another 228 people remain unaccounted for as crews step up the search for bodies and missing people this is a satellite image from nasa which shows the paradise wildfire in northern california. keeping an eye on that that's our news update sara, back downtown to you. >> sue, thank you. taking a look at the major averages, dow and s&p both down about 0.7% nasdaq down 1.5% biggest loser as technology underperforms the broader index. what's up? real estate utilities and

staples. roger altman will join us right after the break when "squawk on the street" returns. i am a family man.

i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast.

we're working to make things simple, easy and awesome. ge shares are sinking again this morning after ceo larry culp joined us earlier this morning talking to david neighborer from headquarters and joining us now is some reaction is bob wright, former ge vice chairman and former nbc universal ceo. did you catch the interview and did it inspire confidence after six weeks on the job not being shy about the problems. >> i thought he did a good job david had a great interview. it's a difficult thing to pull off and i can make a lot of comments on this if you want. >> that's why we have you on

what about the cash and liquidity concerns >> liquidity, he's down playing it let me talk about liquidity. he doesn't want to talk about what happened. in the last two years. in '16 and '17 ge made decisions in hindsight that were wrong the power purchase at 23 bhld. they spent $4 billion to create an industrial software which is worth hardly anything. if somebody was watching the balance sheet better and i think trion has to look into this. if they get ticken out, they could have put $20 billion into the expect fund, which is underfunded. they could have put $15 million into the long-term care by buying reinsurance

i'm not sure what the price would be but i'm guessing they could have covered it for $15 billion. that would have left them with $18 billion and that is exactly the situation larry culp needs to get leverage down and use his equity to bring cash in he's got a handle on what needs to be done from a performance standpoint but it's sad what happened in those two years, '16 to '17. just hard to understand how that could have happened? >> is it your assertion that overextended buybacks are why we're here >> that was $26 billion. the buyouts were between $30 and

$22 a share. who was minding the balance sheet? they bought that power $23 billion. they were creating a software system that flannery said isn't worth anything that's $5 the 3-billion in a period of two and a half years he looked like he was up for the task and it is a task and you'll be trying to clear the accounts of ge capital. that insurance was on the ge capital side that could have been done years ago but nobody wanted to pay the insurance, the reinsurance costs but it could have been done between '16 and '17.

>> david was there and he joins us david? >> thanks, bob capital allocation, such an important part in so many mistakes and obviously the regime that was buying high and selling low when it came to buying assets or selling him and this added up to leverage on the balance sheet. $100 billion in net liabilities with negative free cash flow how do you from your perspective and people forget in addition to running nbc you've been at ge capital. how do you get out of this it will take a long time, right? >> you have to work through the pieces now i'm not sure what he's including in that ge capital he's going to include 15 or 20 for the insurance based on the fact that that may be possible in addition to what they've already put out. i'm not sure

i would guess because that is ge capital liability and at this point i'm not sure what the rest of that $100 billion is because it's been looked at by so many people so all these returns have been audited but aud torz don't take into account the value of the decisions made with with cash or stock. but i still think that that particular long-term care thing should have been dealt with some time ago especially when they had -- if they're the cash, they could have done that ch. >> i spend some time at 30 rock and run into my current colleagues they relied on ge stock as a nest egg what would you advise them as somebody who saw the stock distributed in the organization and for such a period of time it

was seen as a positive now, of course, people thinking why didn't i sell? >> well, i have a lot of that stock, too, and i am not in a position to sell it because it's buried into s and s issues at ge so this took a tremendous hit for me what we have to do is protect against a bankruptcy that's the issue i don't see why that would happen but it's just -- larry just has to keep making progr s progress he's making power to make it more efficient he's got plenty of orders on the balance sheet. those lows look to be pretty good and the rest of the issue of -- you have to be care fful. that wasn't a lot of support on

the board for nbc. they didn't know how to deal with digital they were afraid of it but the last two and a half years, that's just outrageous. >> bob, thank you for your time and insight. >> everybody has to hold tight now. there's pension money that needs to be dealt with a lot of obligations this company has connections there's no reason why it shouldn't be fixed >> it's a confidence problem on wall street. shares down 7% thank you for weighing in today. >> former ge vice chairman and head of nbc universal. broadly speaking, the market is down which is not helping ge in selloff mode.

>> let's bring in the founder of evercore roger altman at post 9. some of these problems plaguing the market, the fed, the china trade war, strong dollar do you expect that to stay through the end of the year and into next. >> i do. i think the market is dealing with a whipsaw on one side you have to u.s. economy which is still very solid and whether you look at consumer sentiment levels which are high, average hourly earnings, the underpinnings of the u.s. economy are solid now next year is probably not going to be as robust in the u.s. as 2018 was we're looking at 2.5% down from three plus, but it's solid the global picture isn't as

attractive global growth by most measures is slowing you can see that in our own company surveys in terms of europe and in china and you have specific geopolitical overlays, obviously like brexit with new uncertainties. the uncertain thys around italy and certain developing market economies and currencies so u.s. outlook solid, global outlook weakening and there's the whipsaw or the tug so i don't think that overlay is going to change in the next few weeks and it will be with us for a while because the global outlook will get a bit darker rather than lighter. >> i just mentioned the deals which is the headline, another multibillion software deal and whether it says anything about where we are in the cycle and overall confidence levels? >> the transaction market, sara, remains strong and the basics of the transaction market, pretty good levels of business confidence

still low interest rates, robust credit availability, relatively high equity valuations those basics are in place and as a result m&a volumes are strong. you've seen that all year. i don't think that will change until there's some change in those basic which is could be an equity market correction but for the time being and as long as you believe that these basics are going to remain in place, the m&a market is strong. >> you may suggest it's about slowing global growth but the president tweets eight minutes ago, the prospect of presidential harassment by the demi-s is causing the stock market big headaches roger? >>. >> well, it remains to be seen what the democratic leadership will do. i hope they focus on laying out a democratic agenda should they post 2020 be in a position to govern which with orchl one house they're not now so i don't know how much emphasis there will be on investigations. i'd like to see it lower rather

than higher, there has to be some but i hope the democrats focus on the future and what they would do if they were leading and an agenda to that effect rather than flying subpoenas but we'll see. i don't know. >> there's talk about the subpoena cannon they're loading. the other issue is whether or not the white house was unfair in chasesing at&t time warner or whether they were looking to punish amazon rey post office. are those rabbit holes worth going into >> i would say no. at&t time warner went to court the court rendered a decisive decision it was out of the hands of the congress and the white house so i don't see that as particularly productive myself and i'd like to see a positive agenda there will be a focus on some investigations >> does that mean the happy talk

about infrastructure, spending and potentially regulation of tech firms, all the places where you can see bipartisan support is out the window if all we're hearing is about investigation >> well, that requires the president to decide he wants to work with the democrats. infrastructure would be a natural because the president was a builder and rebuilding the country would seem up his alley but i don't know if he'll cooperate. so i'm sure democrats will try to focus on the infrastructure whether they do anything in terms of the legislation depends on whether president trump decides to play ball or doesn't. >> afternavarro's speech about china on friday, what's the best hope for argentina for the g20 >> well, i don't think there is going to be agreement between president trump and president xi i'd like to be wrong on that but i don't think that will be the case i don't think the markets expect

that to be the case. it looks as though the president likes the issue, thinks it's working for him, thinks a broad swath of the public agrees with him and the business community and plans to keep pushing it and isn't interested in an agreement. that's my own assessment i'm not privy to special information, it's just my take a lot of the public disagree with him in trying to rectify serb relationships with intellectual property mandate technology and so forth. >> roger altman, always good to get your take. thank you. meantime, these raging california wildfires are devastating the state. more than a quarter million

people have been forced to evacuate their homes and 31 people have aditi roy is in california good morning. >> we are here at the woolsey fire a long line of fire trucks and emergency personnel. they come from all corners of the state. this is one of three wildfires burning throughout the state and the biggest culprit from the trees behind me, the wind. the winds have gusted up, increased quite a bit in the last couple of hours that we've been out here. the biggest fire, of course, is up north the campfire in northern california and that's been called the most destructive fire in state history. the death toll is just staggering you mentioned it 31 deaths so far 29 of them from the campfire alone. that making it matching the record for the deadliest fire in the state's history first set in

1933 the fires have scorched more than 200000 acres. 7,000 structures destroyed another 72,000 homes threatened and a quarter million people evacuated, including the entire home of malibu, california beyond the tragedy of dozens of lives lost, wildfires are having an immediate impact on some of the utilities with california exposure starting with pg&e. we saw those shares down our worst day since august of 2002 the utilities being blamed for a number of fires in northern california this past year. edison international down in the double digits. meantime, a new report from insurance giant aeon saying while it's still early, it does expect the insurance industry could face a multibillion dollar payout from this round of wildfires this month the cause of these wildfires burning throughout the state still unknown.

coming up. david faber's got another interview, don't miss assistant attorney general for antitrust makan delrahim when he joins us tomorrow on sweet. we are back in two minutes with the dow down 285 (toni vo) 'twas the night before christmas, and all thro' the house. not a creature was stirring, but everywhere else... there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,000 credit on select models now during the season of audi sales event.

oil in the midst of a streak how should you trade the fallout? find out on trading nation at cnbc.com

this is huntsville, alabama. aka, rocket city, usa. this is a very difficult job. failure is not an option. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges. time for the eft spotlight >> carl, this trade has been going on awhile, not just with tough times in september that hit with the market in september and october. quality as wall street describes it as a style factor for in investing doesn't really mean value, doesn't strictly mean defensive stocks but kind of

those things are bundled in there are strong balance sheets, secure margins, things like that steady business, old blue chips. look at the businesses that track this style they have been around awhile they outperformed s&p 500 modestly in the last month or so starting to hear about how it makes sense in a volatile market tech is pretty well represented in style indexes starbucks, apple, visa, pfizer, health care up 11% year to date. that's kind of a quality trade what does it mean? partially it means the market is hunkering down for tougher times, for some kind of slowdown not to say the market has to correct, but before the bear market, this is the way it acts. it goes to areas that are not as dependent on liquidity and cheap

debt. >> you were willing to give the market the benefit of the doubt. is that wearing thin >> i think it is a shorter leash, i think so. last week's balance was i think -- it stopped where textbooks said it would stop but we're up 3% year to date, so i don't think the s&p has told you it is game over, but obviously the market is chewing through the issues and i think the most bearish thing you can say is there's been so much good news, 20% profit growth, a trillion dollars in buy backs, tax cuts, and up 3%. >> thank you let's send it to jon fortt for what's coming up in the next hour on "squawk alley. good morning, jon. >> good morning. apple is down after a strong singles day. should you pay attention to price action or longer term strategic vision find out coming up on "squawk alley.

♪ ♪ ♪ ♪ ♪ the difference between possible and impossible? it's a person who believes they can, surrounded and supported by others - by us - who believe it, too u.s. bank - the power of possible.

welcome to emirates mr. jones. just sit back, relax and let us entertain you... ...with over 3,500 channels of entertainment, including the latest movies and box sets from around the world. ( ♪ ) we even have live sports and news channels. ( ♪ ) and your free wi-fi will start shortly. enjoy your flight mr. jones. world's best inflight entertainment. fly emirates. fly better. welcome back to sidewalk sidewalk stocks are near lows of the day, steep declines in technology

among the outperforming sectors, utilities are moving higher by around six-tenths of 1%. powered by energy and dominion sector hold outs, three california utilities are all trading lower as devastating wildfires rage across california pg&e shutting down power to tens of thousands to reduce further fire risk. that stock is down 15% or so watch those three utilities. back to you. >> we will thank you. coming up later today, see you on closing bell. apple is under heavy selling pressure we are going to look at whether stocks can turn around before the close. always a volatile final hour 300 points lower "squawk alley" back in a minute.

every road in the world is now an information superhighway. and the car has become an accessory to the smartphone. ride hailing, car sharing, carpooling... ...mobility services are proliferating. and there's a new generation who don't seem to want to own cars in the first place. it all means massive disruption to the car industry, cities, businesses and investors. ♪ ♪

good morning, it is 8:00 a.m. in cupertino, and 11:00 a.m. on wall