good morning, everybody. welcome to "squawk box" here on cnbc live from the nasdaq market center in times square the u.s. equity futures, things are relatively flat. dow futures down by just over a point. s&p futures up by less than a point and nasdaq up by less than 14 points. dow was down by 2.2% nasdaq off by 2 poip upon 1% we're going to continue to take a look at what's been happening. also check out what's been happening in the treasury market right now. ten year yielding 3.085% as those yields came under pressure last week on thoughts that maybe the fed wouldn't raise rates as many times as had been anticipated. after we heard from the vice chairman >> okay. we have some breaking news out of the auto industry this morning. one of the most influential men

in the auto industry, carlos ghosn expected to be fired today amid allegations of financial abuse and covering up some compensation he was reportedly arrested just a short time ago phil lebeau joins us on the "squawk" line with details phil >> andrew, this is huge news obviously stating what everybody can deduce for themselves. carlos ghosn is the chairman of the nissan renault group to put it in context, in terms of his influence, keep in mind that nissan renault is carlos ghosn and they are his company they march to his drum beat. the report that he has been arrested, that japanese authorities are investigating whether or not he misreported or underreported his compensation, those are details that we're still trying to determine this

morning. there are reports that he has been fired or will be fired, the implications are enormous. he is not only the person who was the architect of putting together nissan and renault. if you go back to the early '90s, he is the man who served for a number of years as ceo for the alliance and most recently has been chairman. he is no longer running day-to-day operations of nissan renault but he essentially is the company. it is his influence, his guidance, his vision that sets the tone for the company, has set the tone for a number of years. most recently he was the architect of the company buying a stake in mitsubishi and trying to weave mitsubishi further into the nissan/renault alliance. the fact that he has been arrested for underreporting or

misrepresenting his compensation has huge implications as well as for the japanese business culture. he is a giant not only in the auto industry but also in terms of japanese business guys, back to you. >> phil, let me ask because i already talked to someone earlier this morning literally as all of this was just crossing the tape do you think this is ultimately going to put nissan and renault in play? >> it's hard to say. i would say initially it's too early to indicate that that would be the case. they are among all the automakers one of the most aggressive in terms of expanding and growing financially it's a company that's in relatively healthy shape. the question becomes whether or not the board of directors, particularly when it comes to this with the board of directors of renault, if they look at this and they say, you know what, we are better served perhaps being a part of another company. i think it's a little too soon to say that this is definitely

going to be a catalyst for nissan renault being put in play. >> it's such a weird phrase, underreporting his income for many years basically that's stealing from the company, right >> reporter: it depends, becky we don't know the case is this an income tax violation so to speak or is this a case where as you are suggesting or questioning -- >> that's what i can't figure out. it's such weird phraseology. >> yeah, that's why we're going to hear from representatives from nissan renault later this morning, there's supposed to be a press conference hopefully we'll get more details then we're waiting to hear more from the authorities in japan. >> fill, theother question is because this sounds to be an issue related to disclosure of what might be a secret compensation or what is reported

everywhere there seems to be a demarcation in terms of how this story came about. >> reporter: great question. it's unclear what was the genesis of this, andrew. that's part of what needs to be determined is this a case where there was some evidence or a tip or something that sparked the investigators in japan to start looking into his compensation and how it was being reported? is there some indication that perhaps this also extends over to france and to carlos ghosn's representation for renault that's very unclear at this point. certainly because this is a true global automaker, that's going to be one of the primary questions. >> okay. we are going to leave the conversation there, but it's a story we won't be leaving anywhere i imagine we'll be talking about it a lot over the next several hours. phil, thank you for this. in the meantime, technology news, facebook once again dominating the headlines ceo mark zuckerberg is under

attack the new management style has driven away new executives amid a drop in miee morale. last week "the new york times" addressed misstops following a series of -- the times says that at the meeting zuckerberg also warned employees who speak to the media will be fired. sharyl sanberg hasn't been spared the journal reports earlier this year he blamed her for the public fallout saying she should have been worried. sanberg is very important to him. >> alex stamos was on msnbc and wrote a piece in the washington post. >> he's the former security office zbler chief security

officers both confirming the communication he had with sharyl sanberg and her yelling at him over the investigations and defending the company. >> it's how you look at the context that still is a gray area what context due -- >> it's interesting that a billionaire is worried about her job. i wouldn't be worried about whether i lost my job. i understand why. >> she's not worried about losing a job anymore. >> she said she was worried about losing her job. >> according to the journal. >> you don't need to explain it to me. i'm just telling you -- >> you would not be -- >> it's an aside. >> you would not be worried about losing your job in that situation. in other tech news, "the wall street journal" reports app willing suppliers are suffering as the tech giant is struggling to forecast iphone demand.

multiple reports in recent weeks. in addition 20 plan cuts, the shares are down to 190 or so today. i'm watching it. the low when it got -- it kept showing that two hfr line, that was 1 6. they have been finding leadership in health care. it's looking for a new leadership entity because apple is not going to be it. i don't know if i would write off apple for good cramer is looking into it. down another three today 900 -- before today's selloff it was 9th. ceo tim cook says get ready

for more regulation. here's what he had to say last night on hbo on action eye owes. >> -- axios. >> i am not a big fan of regulation i'm a big believer in the free market, but we have to admit when the free market is not working and it hasn't worked here i think it's inevitable that there will be some level of regulation. >> also defended apple's decision to take billions from gookle to make safari the default search engine on the iphone >> one, i think their search engine is the best and that's very important but, two, look at what we've done with the controls that we've built in so we have private web browsing. we have an intelligent tracker what we've tried to do is come up with ways to help our users through their course of the day.

it is not a perfect thing. i'd be the very first person to say that but it goes a long way towards helping. >> cook also talked about a host of other topics including augmented reality. cook says ar is going to change everything. >> right now, jim smiegel of absolute return investment and deborah cunningham, chief investment officer of global money markets which we're all -- that may be the more important thing to watch at this point deborah, we focus on stocks but i saw 309 on the ten year today. man, i'll tell you, 30 or 40 basis points threw us for a loop, didn't it? we haven't moved above 3 1/4 what are you expecting december we get a hike at that point do you think they're on hold for data dependency or are they definitely going up two or three

times next year? >> we think they're on hold for data dependency after the height if the data does not support that, definitely the he economy will roll. >> we may be understanding a lot more about the equity market selloff based on what you just said because we thought everything was goldie locks. we were rolling. we had low inflation, low interest rate, great corporate profits. 3% gdp low unemployment and suddenly the market sells off now we're all questioning the whole global growth picture. we're wondering whether the cycle is over. it really has shaken our confidence in everything we believed just six weeks ago. >> i don't think the cycle was

in you have the consumer going strong, maybe a little bit of manufacturing. corporate america has pulled back a little bit. you have other parts of the world slowing slightly but, again, not to the point where we think there's any type of a recession looming in the near future but slower growth is probably what we see on hand for 2019 >> jim, just commenting on where we are with the stock market i thought that this correction, which we've toasted the low a few times, it didn't shape the complacency initially. i'm starting to one did whether it shaked, there are people that are scared to death where we are in the death cycle it's almost 180 degrees from where we were two months ago we have more problems that we didn't know about two months

there is a sentiment but the markets tend to do that. the uncertainty factor has ratcheted up quite a bit we're not any closer to be doing that china is really the big factor there. add in additional earnings and here we are. typical late cycle rhetoric. the important thing which we've already talked about, is there a recession on the horizon we don't see it. we do think the market can handle 3 1/4, 3 1/2. >> doesn't have to, which is pretty amazing diversity any case every time the market has sold off we've seen treasuries kick in here we are back again the good news is it can handle it this longer for lower, the market's just kind of slowly getting used to the fact that it can exist at 3.5% on the table. >> last week i thought we were

still in the middle of the soup and we were down what day was that? i remember -- >> hard to remember -- >> because i worked half day 12 hours we were down -- >> monday. >> monday. >> it was monday. >> was it monday >> yeah, it was monday. >> we felt different today santa claus is coming. maybe we made some progress in building a base down there apple maybe. i was hoping apple watts bottoming out all the way back down to the aces we're just pricing out the high levels of optimism that are there. things are still looking good. we have a difference in their earnings where those earnings are coming from, but the reality is apple was never a high flying stock with already the expectations we are so far

stretched. >> katie, whenever she talks, it's like -- she has no idea -- it's like you can talk to her about fundamentals and she gets a glaze over here. what does that have to do with anything she looks just strictly at the numbers she goes, no, i think we're here, here, here. >> soothing? ignore the headlines. >> yeah. we are questioning i said definitely smeagle, beagle. >> schmigel. >> see, i knew we wanted -- >> you said -- >> he was -- he was -- >> schmigel -- >> but you don't care if we say -- >> well, schmigel is the correct pronunciation. i did bring a gift. >> it is a little schmiegel doll. >> wow >> now i will never forget >> the resemblance, you could say there is a little bit of resemblance. >> no. no no. >> you know, if schmiegel --

>> bring that over here. he had a complication. joe and i were talking about this earlier this morning. >> classic >> there's going to be a fight for this after the show. >> it actually talks, joe. >> if you lived in a cave all alone would you wear anything? >> why bother? >> might get cold. >> it could get cold. >> that's where you don't want to get cold, too, i think. schmiegel. >> that's really nice that you did that we were talking about that >> do you expense this >> i do not. my chairman is watching because we're ripping the nasdaq bell this morning. >> are you >> let's keep it professional. >> 50 years in business -- >> you don't want a carlos ghosn. this was paid for out of my own till. >> you don't under report your

income >> oh, no. we have another very serious story to talk about. lots of new fallout this weekend after the cia said that saudi arabia's prince mbs ordered the death of journalist jamal khashoggi. want to get right over to hadley gamble live in riyadh and she has the latest this morning. hadley. >> reporter: good morning, andrew all eyes are on saudi arabia as king salman prepares to address his council. nbc news is confirming that the cia report they're expecting to release does tie crown prince mbs to gentleman the killing of jamal khashoggi. >> they haven't assessed anything we're going to have a report on

tuesday. it will be very complete in the meantime we're doing things to some people that we know for a fact were involved and we're being very tough on a lot of people. >> reporter: speaking about the things president trump was mentioning on being very tough on a lot of people 17 saudi nationals has been sanctioned by the treasury department right here in saudi arabia they've arrested and charged folks as well, but they have five of them that are going to be facing the death penalty. everyone that i've spoken to in riyadh in the last 24 hours or so telling me they hope very much the government is going to make this a transparent process and allow press into the prosecutions because they want people to understand they understand that there's been brand damage to saudi arabia and they want people to see that the government is actually addressing that this is the big question, guys, as we go throughout the day, whether or not we're going to hear concrete words from king salman and what exactly the saudi's government response is

going to be as we see the report released. >> had lley gamble in riyadh. jack jacobs, a medal of honor recipient helping make sense of this. the president has equivocated despite reports from the cia what do you think ultimately the report from the state department and whatever you think the president is going to say will be >> oh, everything indicates that it's going to say that the crown prince was directly involved in the incident and may have even ordered it one would think that there would be some insulation that he didn't actually get on the phone and so on, but there's plenty of evidence already that's been leaked out that demonstrates that he made the decision and that he ordered it there was a phone call that came immediately thereafter back to

saudi arabia >> the equivocation, terrible coverup on one side and on the other side it will say the evidence hasn't yet confirmed that mbs did it even though the reports that we've heard suggest otherwise that somehow that those reports will be shaded when they actually become public on tuesday >> there are going to be plenty of leaks and there already have been plenty of leaks about it that have and will convince everybody looking at it that the crown prince was involved in it. >> do you believe -- do you believe, by the way, the leaks inside the u.s. government or from the cia, wherever we believe they're coming from, are to put pressure on the white house? >> yes there's not a single reason why people would do that don't forget also that the preponderance of the information we have is coming from turkey and turkey's the big elephant in

the room we've been ignoring turkey in this whole business but remember that there's no love lost between turkey on the one hand and saudi arabia on the other and that puts us in a terrible position. >> i wanted to get to the implications this puts us into there's a piece that's gone i would argue underreported. kirsten fontanrose quit over the weekend. she had gone to riyadh and been involved in a lot of these conversations. she had been a true hawk on this issue. do you know why she was pushed out, quit, or others wise? >> no, nothing that i can report afraid not. >> in terms of the implications, how do you -- to the extent you think there is a needle to be thread here in terms of the relationship between the u.s. and saudi, how do you think the president should approach it

>> so far he's done the right thing in that he's more or less kept his mouth shut. i think he and people around him in particular believe that the less said, the better. and at some juncture they're going to have to be confronted with the fact that the crown prince was involved and they'll have to respond in some way, but i think that the best thing -- >> what does it -- what could that response look like thousand because on one side they want to show their morals and values on the other side this country has been an ally on so many issues and there are good things that have taken place in that country under mbs. >> there have been plenty of instances in history when we've completely and totally ignored the fact that we're allied with people who do bad things i'm reminded of harry truman's

response when he said he's an sob and harry truman said he's our sob. i don't think the united states particularly in difficult times in the northeast isn't going to do that. i think they're going to gloss over it. they'll hope that something else will pop up in the news that will take attention away from it >> jack, final question. we've had so many business executives come on and talk about saudi arabia, some of whom had been planning to go to that conference in october that ultimately didn't. some of whom have heard from employees, investors and others saying you shouldn't be doing business with some of these people and yet while some of them didn't go to that conference, many of them plan to continue to do business. do you think there's going to be pressure not just from on the political side of this but even more broadly in terms of

companies that are doing business with the kingdom? >> i think initially there will be plenty of pressure, but i think it's going to be ignored at the end of the day there's too much to gain and a lot to lose by not staying close to saudi arabia and everybody is going to continue to carry on. they hope the whole story will go away. there will be superficial sanctions, some have already taken place. there will be a few more. >> mbs stays in power, you think? >> i think so, sure. >> appreciate your time this morning. always good to see you. >> you bet. when we come back, what steve correll, jeff bezos and "saturday night live" have in common a skit that has washington talking this morning that's next.

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well, sort of a wig, it wasn't really a wig, to play jeff bezos and take a couple of shots at president trump. take a listen. >> the real reason i wanted to talk to you today has nothing to do with donald trump who publicly attacked our company forex ploiting the post office i'm here to talk about a new delivery amazon caravan it will get delivered by hundreds of honduran and exm i can immigrants unless you or the the art of the deal that costs more to ship because it's heavier i guess it's the only book with four chapter 11s >> anyway, steve carell playing -- it's a longer piece you can catch it online. it made me chuckle >> tapping into the resentment he probably feels but has not spoken himself. >> he has actually made -- he's not made comments --

>> the post office lost $4 billion. >> it's not amazon's fault. >> it partly is. if you don't charge market rates. >> like walmart. you get a discount for the bulk shipment. >> it's amazing. when it came out that they lost 4 billion -- it's been -- it's every year year in, year out. >> the problem with the post office is what they have to put in for retirement. they have to pay out like public companies don't. >> a lot of problems. >> they don't charge market rates. >> they charge enough money to make a profit. >> from the stuff i've looked at they're not losing money on the amazon contract. >> it's not the amazon contract that's the problem. >> you can point to whatever you want for losing $4 billion >> but the rate that they're offering amazon -- >> but it's --they deliver so many more for amazon. >> any time you're dealing with bl blug. >> by the way, in that clip there's a whole thing about the washington post it's hilarious

it's very, very funny. >> i'm stig thinking about you can call that chapter 11 i'm still thinking about that you can call that a wig. >> i guess it's a -- i mean, it goes up the scalp. >> really on there good. >> pretty good >> yeah. he was bald as a -- you can't miss it. anyway politics meeting sports this morning. i couldn't figure out where there's smoke there's fire, could coach condi be in the cards? people love the story. i don't know if there was reports yesterday. the cleveland browns wanted to intervau the former secretary of state condoleezza rights for the head coaching position >> that's what i mean. >> but they both issued denials. the team said -- issued a statement denying the story and secretary rice weighed in saying i'm not ready to could have but i would think it

>> there was a commissioner position she was interested in. >> she wants to be the nfl commissioner. >> not going to happen with goodell there. >> not making 40, $50 million a year >> you would think you might want someone that has coached somewhere. you know, like not necessarily a help coach she wasn't sort of of saying college, huge fan. i kbruthink it's more difficultn the bengals or -- they're pretty -- they're both difficult. the ohio teams -- >> beer locker is open this year. >> what's that >> the beer locker is open >> they look good. >> trying to think, is there a job in sports that she can get right now? >> did you see the horrible thing that happened yesterday? which horrible thing

you nineteen football? >> yeah. with the redskins. >> no. >> okay. alex smith had a horrible day at quarterback, had a horrible compound fracture where his -- >> no, no, there was one in basketball. >> his foot was hanging off the wrong way. >> don't >> the reason that i'm bringing it up, on the 33rd anniversary of when joe theismann, right >> he was in -- >> it was in rfk when it happened to theismann 33 years ago. joe was watching yesterday. >> as it happened? >> at nbc as it happened to alex smith. >> really bad one in basketball last week, too i can't -- all right when we come back, we're going to talk about changing jobs in america. lie eeure north america's ceo juswt joins us with a look at the work force of tomorrow. "squawk box" will be right back. obvious.

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. >> good morning, everybody welcome back today's top corporate story is nissan share man carlos ghosn reportedly being arrested. the veteran executive is under investigation after he allegedly violated japanese financial law. nissan says ghosn and greg kelly underreported compensation amounts. nissan also uncovered other significant acts of misconduct by ghosn including personal use of company assets.

the automaker is expected to take steps to oust ghosn, but as you can see that is putting pressure on the stocks on the group that he manages. nissan down 9. renault down by 10%. mitsubishi down by 1% let's take a look at the u.s. equity futures monday morning, you'll see now things are relatively flat futures are down but you're not talking by much. dow futures down by 16 points. s&p down by 1.5. >> one note on the nissan/renault story, it cuts both ways. it's wild that the stock is down if the number's on his own compensation were fibbed or made up -- >> what does that mean for the rest of the numbers? >> that somehow the numbers are fibbed on the rest of it it cuts the other way in that there are some investors out there that think both of these companies may ultimately get sold and puts them in play what kind of premium did somebody play for them.

>> that worked its way into investor's minds >> both of those things working through this story in the meantime, our next guest is warning that only a fraction of u.s. companies are investing in cyber security. want to welcome julie sweet, accensure's -- >> good morning. >> we always talk to you about jobs it seems to me if i was a parent, which i am, i might tell them to get into cyber security at this point this the ball game. >> that would be a very good piece of advice for you to tell your children. so we are seeing companies spend more and more every year and unfortunately the breaches keep happening. we expect right now for this to be a very fruitful krur. we have a $2 billion business growing double digits. >> what kind of people are you

hiring what kind of talent is required? >> no. it's everything from people out of high school or two-year degrees to much more sophisticated, people are doing advanced threat intelligence. >> julie, i wanted to ask you a broader question just about the jobs picture you deal with so many of the fortune 500 and fortune 100 companies. 93 of the fortune 100 and 70% of the fortune 500. you know what's happening on the ground of these companies. we're watching the jobs picture closely and it's been extremely strong any reticence from the ceos or are they pulling back on the hiring or do they have to pay more these are things we're trying to figure out on a daily basis. >> every industry is in a different place. we've been seeing the same news on the retail wages and what amazon did and what that's going to do. there's a lot of uncertainty you're seeing incremental wage increase and the trade war what we are seeing is still a

very continued big focus on digital transformation, right? companies saying there's a lot going on in the market there's a lot of disruption and we've got to find the ways to cut costs nord to invest and become a digital business. >> meaning that they're still willing to spend capital expenditures when it comes to digital issues. >> we're seeing that still continue. >> what's your gut on the economy? as you're having conversations, has something turned jim cramer was saying he's had a handful of conversations on the phone who have effectively said, you don't understand it's much worse than anybody appreciates. where do you stand on that >> i think it's too soon to tell there's a great area we're hearing different news frankly, we hear both stories. you have the next guest who says, wait, i'm hearing lots it's too soon to tell. what companies today have to do is plan for what could happen, right? while they're staying focused on their business. >> accenture, you're creating

ten innovation hubs around the country? >> that's right. >> this could be like an hq2 trial experiment people will be rushing to become an innovation company? what is that >> if you think about it, half of the fortune 500 in year 2000 no longer exists today the real way to succeed is to become a continuous innovator. >> half of the fortune 500 in the year 2000 don't exist today. >> don't exist >> they either merged or they went out of business and so innovation, the key to innovation is accessibility. it's no longer silicon valley. it's around the world. what we've done is we just opened our ninth hub in seattle. we're opening our tenth in atlanta. they're really across the world, across the u.s. >> guys, can we throw that screen up again? the other thing i was going to say though is it's mostly with the exception there, i imagine, maybe that's chicago, and i guess michigan, but it's all the costs. it's still a coastal situation

>> columbus, chicago, detroit? those are three. three in the middle. so we think about it in regions, right? so in the southeast we've got atlanta and dc the northeast is boston and new york, right? three in the middle. we have see at -- seattle and - >> what did you think of amazon's decision? >> we're down there and we're in new york they're a great partner of ours. it's obviously going to be bringing jobs. >> final question. you recently were -- you guys hooked up with harvard you have a study you've done you know where i'm going with this effectively you have said people who go for a four year degree, this may be a big mistake and is inefficient in terms of the economy these days. >> we're seeing a lot of opportunity for two-year grease. we now have an apprenticeship program. we have 150 professional

apprentices with two year or high school degrees working in tech jobs. we'll have 300 next year we see that as a real opportunity for the u.s. to do big career reskilling and to close the skills gap as well as bring people -- >> do you think it's a mistake for certain people to go for four years that's what the report seemed to suggest. >> yeah, i think it can be a mistake. >> how do you identify yourself at the moment, one, to know actually i shouldn't really go for four year. >> well, i would go back to your advice to your children, right in terms of what are the kinds of jobs and what are your interests? >> four is better than six or seven. >> that's really -- >> one way to think about it. >> two courses every semester. >> julily sweet. >> tuesday and thursday. >> north american ceo of

accenture. coming up, why wealthy investors think the bull market is coming to an end. new survey has answers next. stay tuned, you're watching "squawk box" on cnbc

it's the study we're talking about before we went to break, it's from etrade and it finds that wealthy investors think the bull market is coming to an end and has at most one to two years left they're worried about rising interest rates, but investors with at least a million dollars invested in a brokerage account aren't making major changes in their portfolio after the mid term elections so i don't know what -- a lot of times, you know, you vote with your feet if you really believe it. >> yeah, is there a contrarian indicator? >> that's true >> i think people think things, right? >> right >> and then there's -- >> if there's a year or two to go, you don't want to get out either. >> that's the other problem. >> right >> i'm still stuck with the tina versus -- there is a --

>> tiara. >> tina versus tiarra. >> with rates back down below 3.1, sounds more like a tina environment. >> when you look over time at what asset class performs the best -- >> it's equities. >> i bet you he would say, i don't know where we're going to be this year or next but i do know long term it's best to be in the stocks. >> in the stocks he's convinced me of that. reading his annual report, going to the annual meeting. i'm 100% in stocks. >> you are >> yeah, 100%. i don't have any bonds >> okay. >> now we know why she's so risky. >> right. >> not conservative about any of this. >> it is conservative. you're going to lose money over time if inflation is 2% or higher anyway, when we come back -- >> tinas, there is no alternative. >> yeah. >> tiarra. >> tiarra. >> i know. those coming to the tina/tiarra. >> gotcha. te connectivity's chief will

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welcome back, everybody. ceos with business in china are watching international trade developments very closely. joining us on set is one of the leaders of the u.s./china business council who is the ceo of te connectivity thanks for being here. >> thank you for having me >> you all make products for autos and commercial transports. lots of different things everything from sensors to wires to cables. and you have a major market share. you work with 30 of the largest auto companies in the united states you're a third here in the united states, a third in europe, a third in china what has it meant to hear all the trade and tariff talks ramping up >> you've talked about it a lot here on this program it creates uncertainty and friction what we like to do at te is how we innovate. we innovate at the design centers of the world we stay close to it and that's how our engineers bring value.

but that being said, we have seen what has been over the past couple of years a very stable growth environment and even when we got it here a month ago, we did see some changes and certainly i think tariffs and some of the trade rhetoric are part of it but certainly we saw that geographic slowness occur both in europe as well in asia. i think that's what we're all watching as a business leader, we all like certainty i think we're dealing with that and that's coming into the discussion we have about global trade. >> so you are hoping pretty hard, i would imagine that there is some resolution to the u.s./china trade talks >> i think it's any trade talks. certainly china and u.s. are one element of it. and we believe in global free trade that's fair. we believe any of that helps us do our innovation. we're broad at where we innovate with and we're in a third in the united states, third in asia,

third in europe. we see those continuing. we would like to see you csome reconciliation of some sort. >> even without that, even if the trade talks don't go well, you should be able to handle it. how? >> how we handle it is through innovation where we've deployed ourselves around the world we're in automoti automotive what's happening in the autonomous vehicle, that's not going to slow down. >> no. but if you have to pay 25% more for fit, it seems like a difficult thing to innovate your way out of >> it is small what they impact us certainly to your point, how that inflation goes back onto the consumer, that would be difficult. what we've done to make sure we don't get that much exposed to the tariffs is we have designers that are in design centers of the world. also we manufacture very locally. if we're dealing with a customer that's in asia or a customer in

europe, we very much over the past ten years balanced it in. but there are other industries that have the item that you're talking about which says this is real inflation that comes in many companies are looking at how they push it onto their customers. >> what would impact you would be a global slowdown >> absolutely. which is how does it impact and demand more than what it impacts in our business. >> i want to thank you for coming in. i wish we had more time. i hope you'll come back in >> thank you >> appreciate it coming up when we return, this morning's top stories including nissan planning to 'sees arlos ghosn after report he bn arrested the latest when "squawk box" returns right a after this 300 miles an hour,

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a shortened week on wall street could mean even more volatility we'll get you ready for the trading week ahead are worries about corporate debt overblown we'll hear from a fixed income strategist who says just relax >> i feel -- im so much more relaxed. thank you, helen i'm excited and i feel relaxed >> his take on what's really going on inside the corporate debt market. plus is the move in chip stocks a sign of the broader tech slowdown? a look at the chip wreck and what it means for your portfolio as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york, this is "squawk box. >> good morning. good monday morning. welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square

take a look at u.s. equity futures at this hour the implied open right there off about 36 points. nasdaq looking to open off about six points s&p off about four points. we have several stories we're following this morning let's tell you the big three one, facebook is at war. that according to mark zuckerberg his comments and what employees are saying coming up in just a moment. two, carlos ghosn arrested over what is called financial abuse. we're going to hear from phil lebeau on this news. and three, a shorter market week because of the thanksgiving holiday. that may mean more vol kilt. more as we head towards the opening bell this morning. >> you go ahead and take my read since he took yours. >> you go ahead. >> it was totally hers >> with apologies. >> it was funny. you were so excited about the big three stories. >> i was

>> 12,000 hours of television i've done, it's okay >> it's okay did you know there's a pharmaceutical company called tesoro it's a similar symbol. it's one of the stocks we're going to watch first, though, shares of e-commerce giant jd.com are falling after the company beat estimates. but revenue was short of forecasts. but the bottom line was okay stocks falling more than 40% this year on concerns about growth here's the one tesaro shares adding to recent gains. tesaro specializes in cancer drugs. the stock is up another 8% this morning. i'm not familiar with this

i'm going to get a quick market cap to see what we're talking about here tsro yeah almost $2 billion. all right, andrew. you can -- you want to read this one? how do you want -- >> we're fine. moving along >> separately, facebook once again dominating the headlines over the weekend mark zuckerberg has reportedly adopted a more aggressive approach "the wall street journal" reporting that new management that -- he has a new management style that's driven away management executives amid drops last week. in detail, many of those missteps in action during a q&a session on friday, zuckerberg called that report, quote, b.s at the meeting, he also warned employee who is speak to the media that they will be fired. he seemed to then back track a bit on that as well at that same meeting. sheryl sandberg hasn't been spared from zuckerberg's

criticism. "wall street journal" reports earlier this year he blamed her for the public fallout over cambridge analytica saying she should have been more on top of cracking down on objectionable comments she was rattled by that and questioned whether she should be worried about her job. then last week zuckerberg said sandberg continues to be a, quote, important partner then reports from alex stamos, former chief security officer, in "the washington post" confirming many of the details he said were b.s yet at the same time effectively being defensive about the company and its role in all of this at least what their efforts were about. >> but their efforts and intentions were. >> i think the intentions piece is important >> right i think that's where there is still room to kind of maneuver who knew what when, who should have known what when, and what were their intentions. >> let's just make this

optional >> becky >> it's just so fluid. >> it's a fluid show >> it has jk on it, but i'm not particularly -- i'm not that excited about that but you got the interview coming up >> go for it >> all right sticking with the c-suite -- >> so don't do it? >> no. i got to let people know i'm here i got up, didn't i at 3:45. i'm here sticking with the c-suite, chief executives, the most recent meeting of confidence in november -- if i knew i was introing dom chu, there's no way i wouldn't let anyone else have this i definitely wanted to do this good morning >> thank you good morning i know that all three of you are there and so do our listeners and viewers as well. like you said joe, ceo

confidence is down so the latest data coming out of chief executive group is for the month of november. they asked ceos all across the country -- now, the timing is important here this poll was taken during the midterm elections. keep that in mind during these results. according to this survey for conditions one year out is continuing to trend lower. it currently stands right now at just under 7%, 6.95% if you saw all the way towards the begin og the year around january, it was 7.62%. this gradual trend lower is something that many investors have been paying close attention to and certainly our own jim cramer about some of the ceos talking to him about what a slowing economy means for their businesses overall that is down on trend about 9% from the peak earlier this year to where we are right now. as is the case for much of this

year much of the driving factor behind some of these moves lower in confidence continue to be certain topics we've discussed first of all, the continuing trade war or trade skirmish or trade conflict, whatever you want to call it, that's weigh g weighing end of cycle fear ss. that could be one as well. and a divided government those could all be reasons why ceos are feeling less confident. if you want to look at the positivity and negativity juxtaposed together. this is the ceo forecast for the next 12 months on what they think will happen. revenues, employees hiring, profits, and capex revenue side of things, 76% of ceos think sales are going to be up in the next 12 months versus

where they are right now it used to be 82% about a month ago. we've seen a slight down tick there. and for the hiring side, guys, 54% still think that they're going to hire more employees over the course of the next 12 months the caveat there was it was 58% in october so again, some moves lower there as well. something to keep an eye on as we talk about all these results. becky, by the way, this is just some of the story. go to cnbc.com we've got the full story there >> thank you this is a huge issue we've been looking at trying to get the feel from every ceo and consultant we talk to it usually translates into those things in terms of what they'll do with their employees, hiring, paying more that's why we track this number so closely >> that's right. cap eex on this chart here, it a one of the only categories that showed a gain. >> all right dom, thank you always good to see you folks, some breaking news

this morning out of the auto industry carlos ghosn is expected to be fired today amid allegations of financial abuse. he was reportedly arrested a short time ago phil lebeau joins us right now on the squawk newsline a lot of things we're trying to figure out developing story but what can you tell us >> we're trying to sort out exactly what's happening and what the status for carlos ghosn is in terms of his leadership at nissan let's start first off with the aelss this morning and most of this investigation we should point out is coming from nissan itself in japan. because the prosecutors in japan are releasing very few details, very much information. according to nissan, there was an investigation that has been going on several months they call misconduct by carlos ghosn. allegedly it involves him underreporting or misreporting

his compensation doing this with the help of a board member and according to nissan , ghosn has been questioned by authorities in japan and the ceo is going to be pushing for the nissan board of directors to dismiss carlos ghosn. remember, he is chairman of the nissan renaut alliance whether that would impact his status remains to be seen. if he is removed off the nissan renault alliance, huge implications for this company. he was the architect of putting this alliance together, to the

growth, the global growth that you've seen of nissan renault over the last 20 years he is the man that has led the way. he has set the tone for nissan renau renault. it brings into question what the future is of this alliance does it continue is it possible that these two companies part ways? potentially as andrew has touched on, does it set up the possibility of one or both of these companies being sold off to another automaker just a lot of questions that remain unanswered this morning >> let me ask you this you're looking at those stocks down in large part renault down 10%, same thing with nissan. how much do you think this is about the prospect that investors are anxious there is additional questionable accounting that goes beyond the compensation issue for mr. ghosn? >> i think there's a lot of questions about that

look, if you have a company like this where the chairman and former ceo has allegedly been misreporting his compensation, it makes you question what else has been reported and was it reported inaccurately? i think there's a combination of that weighing on the stock and i think there's also a bit of -- shock might be an overstatement. but certainly bewilderment that here is a man who arguably is one of the three most influential auto executives over the last 20 years. and he now is being accused of serious misconduct and will be out as chairman of this alliance which has truly transformed the auto industry not only in japan but worldwide. i think investors are saying wait a second, you're going to take this guy out? those are the two things that are weighing on the stock this morning.

>> hey, phil, thank you. we will continue to check in with you on this as this story continues to develop phil lebeau joining us this morning. futures are at some of the worst levels i've seen for days. joining us now is founder and ceo of hyder capital management. and another from charles schwab. you two have similar thoughts on these things and kind of sobering if it does come to pass i'll lead you into you, kathy, with what sayyid is saying where unemployment is in terms of how low it is, it's going to be tough for the fed to stop even if europe is not going gang busters. so they're going to have to do what they set out to do even if things are not as flush as we thought before that's not great, is it? >> i think that's right. and the bond market has already,

you know, looking for the fed put levels and they've already reduced the hiking expectations so much already. looks like there's little upside going up here. there's less than two rate hikes or about two rate hikes priced in >> you also think that this thing with china is long-term and it's not -- we're not going to quickly be able to just back off because of intellectual property and they want to -- they have a plan to 2030 to eat our lunch. and so we're not going to come to the table and be, you know, have a kumbaya as andrew -- he loves that word. >> it's really only trump that sounds positive everyone else in the administration sounds much more negative. and vice president pence at the apec summit was confrontational

with the chinese as well. >> no relieves on rates and no relief on trade is bad >> i think we could see a squeeze until november 30th, maybe, then we'll see what happens. but past that, i'm expecting the tariffs to go up to 25% on the $200 billion i think it's possible they don't add the extra tariffs. i think they at least do that. i don't think that's great and the chinese are easing a little so the property market is going crazy. they're letting people borrow for their down payments and they're separately trying to force banks to lend money. but the chinese economy looks like it's in bad shape >> so kathy, you think they do december and then two to three next year in the -- with the backdrop being growth not as strong as it was this year >> yeah. i think the talk of going beyond 3% is now going to die down.

>> that's what i think too >> as growth shows some signs of slowing. and inflation, still, really hasn't picked up that much i don't think that's a terrible scenario 2 3/4 of the fed funds rate isn't sky high but it could flatten the yield curve some more. >> and it probably -- even if growth did slow to 2.5% gdp or so, 3% fed funds doesn't sound like a lot >> short-term and long-term rates have moved up not on inflation expectations but on growth expectations. so as we sort of settle into a growth rate that's not influenced by the fiscal stimulus, that's closer to 2.5%, you would think that rates would level off. but 3% is not that high. >> it's not necessarily your

expertise. maybe it is. but do you feel negative or pessimistic about a china resolution >> well, our house view is it's hard to say because we don't know who speaks for the administration right now on trade. so we're getting a bunch of different views. we think there's still some hope that there's a settlement short of, you know, more appearance. >> i'm looking for a wink and a nod from both sides. china's markets are down they don't need this >> the u.s. markets starting to -- >> and they say we're both winning. yeah we did great things here don't you think that's possible? >> maybe it doesn't play into what the president thinks of trade. >> all right thank you. when we come back, tim cook says get ready for more regulation we're going to speak to axios director last night.

and is the downturn in the semiconductor sector a sign other industries are slowing we're going discuss the chip sector and get a look in a moment this isn't just any moving day.

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welcome back to "squawk box. tim cook says new regulations are on the way >> i am not a big fan of regulation i'm a big believer in the free market but we have to admit when the free market is not working and it hasn't worked here. and i think it's inevitable that there will be some level of regulation >> for more on that and what's going to happen in washington, nick johnston. thank you for joining us this morning. i want to go not to apple. i want to go straight to facebook given those kmicomments it really seems that story in "the new york times" last week has turned things on facebook. what regulation could be coming to them specifically >> i mean, specific regulations i think are a little ways off. not until we have the new desk congress and remember the republicans

still control the senate but i think what people are starting to look at is the amount of information these companies have and it's a learning process for members of congress when facebook and other executives come to the hill, it's like an internet 101 for a lot of members of congress they're just starting to realize how powerful these companies are, how much information they have, how much data they have on all of their users >> does that suggest whatever regulation comes is going to be behind the eight ball, if you will, behind the curve >> probably behind the curve, but i think what they're doing is trying to get ahead of that curve. saying not only do we expect regulation, we welcome regulation tim cook now saying it's time for them to happen >> do you see that type of regulation looks like yet? are there companies behind the scenes with their lobbyists saying, look, this is actually how you do it?

>> right i think there's a lot of education that's still happening. it's not clear what those regulations would look like. whether they be around how much you have to disclose what you can share. i mean, all of this is very unknown. that's what companies are concerned about. it's such an undiscovered country, unknown territory they're trying to get ahead of it now certainly when the committee chairman changes, there's going to be a lot of lobbyists trying to reach an agreement on what regulations should look like there is now bipartisan agreement on that. shows democrats and republicans both in favor of regulation. in fact, a majority think it won't go far enough. >> want to turn our attention now to the situation in saudi arabia the report from the cia what we may or may not hear from the white house later this week specifically i believe tomorrow. the president has equivocated on this issue many times.

did an interview yesterday with fox news where he said, look, there's still an ally, important ally how do you think the president threads this needle? >> the president doesn't want to talk about this. he tells aides he doesn't know why it's such a big deal khashoggi wasn't an american citizen. the murder happened outside the united states. the president also tells aides there are a lot of countries friendly with the united states that do horrible things. he singles out china for the millions of people they have in camps. how he spreads the information like how could you even really know he talked about in the interview with chris wallace, oh, how can you know what's true and what's not? a report may come out today or tomorrow i think it's something the president would like to drift into the background. >> by the way, how much do you think the motivation for the leaks that have come out about this cia report are about putting the president in a corner on this

>> i think there's certainly some people in the administration tried to do that. there was that senior u.s. official that was saudi who resigned over that this is a really big fire storm. this is a "washington post" journalist murdered in the saudi consulate. even though he wasn't a u.s. citizen, it's relatively unprecedented. it's a fire storm of politics around this. but trump views it differently he has a specific view of saudi arabia as an ally in the region, as an important military ally and doesn't want to upset that. >> he said he has not listened to the tape. given the opportunity, but didn't want to >> he said he didn't want to says it's terrible i think that speaks how he's trying to thread that needle >> enand finally, bringing this back to the world of business, do you think business executives, there's going to be a shift on this? obviously we talked about in the last hour with the colonel, a number of business executives didn't go to that conference but

are still doing business with the country. >> they're definitely looking for what to do with that we asked jamie dimon that question, he said it's a u.s. government decision. if the u.s. government doesn't follow through on tougher sanctions, i think business will go on as always. >> axios editor in chief nick johnston the four-part hbo series, i believe the last one is coming up >> elon musk this sunday. it's going to be good. >> thanks. when we come back, it's said the saudi crown prince ordered the death of jamal khashoggi more on that after the break right now the dow futures are down by about 40 points below fair value s&p futures down by close to 4 points, nasdaq by 5. "squawk box" will be right back.

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center this hour, are higher interest rates weighing on home builders we'll find out when the november sentiment index comes out at 10:00 a.m. eastern time. the release expected to show a slight decline from last month also, you've likely been paying less at the gasoline pump in the recent weeks the average has fallen by 12 cents. it's now $2.72 per gallon. the lowest since march still 11 cents higher than a year ago fantastic beasts, the second entry in the harry potter spinoff. warner brothers plans to do five fantastic beats films. >> beasts. >> did i say beats >> i like beets. have you had a beet salad? they usually put some cheese -- kind of like a white cheese on

the beet salad with the -- >> i'm new to the beet salad thing. i like it now. >> they're good for you. apparently >> can't eat too many. >> is there a gassy component? >> no. turns your pee red just so you know >> i think if you add asparagus and -- we got to go. that would be weird. coming up, is the corporate debt scare overblown? we're going to speak to the chief fixed -- i guess he's a fixed income strategist. anyway, facebook is at war that's how mark zuckerberg is describing what's happening inside the tech giant. as we head to break, here's

a look at u.s. equy tus.itfure they're better now down 36. we'll be back.

♪

welcome back, everybody. the record level of corporate debt has been under scrutiny with the fed raising rates and concerns mounting about general electric's balance sheet joining us to talk about what's next is gi lebau how concerned are you about this >> well, on the margin, this seems to be the sort of transition in the credit cycle from our early expansion to contraction. seen a lot of pieces of evidence that fit into that mold. one is that high yield spreads are widening there's a couple of one off situations of the market seems to be afeared of so that combination suggests we're moving towards a more conservative spreads are continuing to widen for some time credit availability for corporations are still in good shape. there's no obvious economic

effects. >> we're in a global debt bubble and we are headed for some very scary moments. what makes you think we're not >> i'm sorry i cut out far minute repeat >> paul tudor jones was interviewed last week. he thinks we are in a global debt bubble. he says last week he thinks we're in for scary moments how do you -- >> credit availability has expanded massively nowhere is that more obvious than in the high yield loans, collateralized by assets and that sector compared to the credit boom in the early 2000s, that sector is 2.5 times its size, the quality of loans have gotten easier. and what i think is also important is that has helped fuel broader economic activity so as that sector in particular contracts, it could be painful both for investors as well as for the broader economy. i agree, of course, there's going to be painful moments in a down credit cycle.

there's not the sort of evidence we have that credit expansion that caused massive problems in the 2007 to 2009 period. >> i think part of the problem people look at it and think, okay, it was smart to be borrowing a lot of money with rates so low good companies were doing it all the time there were plenty of companies that borrowed a lot of debt, that have great balance sheets how much of the debt out there is held by those companies versus how much are held by companies facing declining times that are struggling even in a strong economy and what happens if the economy turns down? >> yeah. i mean, i don't have a magic number or dividing line to separate those two out the traditional dividing line is between high yield credit ratings bbb and above. the area, again, to reiterate a point from a moment ago that provides the most concern is this leverage loan sector. both expanded so massively and

for the most part the underlying assets don't have explicit credit ratings they have ratings driven by a model. and so that sector, it's hard to measure how powerful it's been in providing fuel for broader economic activity. but that's a sector that really provides the most concern. because not on is it sort of the shadow rated subsector of the financial markets, but in addition it's been sold to many investors as a lower risk asset class. i don't think that's the case at this point >> you're aware of bank loan funds, right >> exactly this is a comment about the sector as a whole. it's not about any managers or specific assets. the issue here and i've referenced it is the deterioration in credit quality but more than that the way in which its been sold vee

investment funds if there's a broad credit downturn, valuations on this sector, this bank loan sector is likely to go quite rapidly unlike in the 2007 time frame, we don't have that backstop nowadays >> let's go back to the demarcation line you laid out. between the junk bonds and the investment grade bonds there was an article laying out there could be an avalanche of bonds getting moved from one side to the other. that there's a massive rating at the investment grade based on how moody's measures those things you are then talking about a huge swath of what was investment grade moved down to junk bond status not just ge but a large amount of others that way too would there be a problem if that happened >> absolutely.

we call that a fallen angel. essentially what it results in is as a bond is downgraded to bb-plus, many mutual funds and other investors who previously held the bond for either legal reasons or capital reasons have to sell it you tend a get a big dropoff in price when that transition happens. economywide we haven't had a kind of massive transition from bbb-minus to bb-plus it's a greater risk this time around it was driven by the technical nature of legal agreements that are investment grade debt. or companies that have to hold out a lot more capital >> all right, guy, you are a calming voice this morning good to see you, guy guy lebas, thank you >> thank you semiconductors hit hard over

the past few months. is there more downside and is it a sign that a tech slowdown is on the way we'll talk about that with paul meeks. we'll head to break. here's a look at this morning's premarket movers in the dow. "squawk box" will be right -- trying to hear the sound "squawk box" will be right back. something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for?

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♪ welcome back to "squawk box," everybody. take a look at the equity futures. dow indicated down by 32 points. nasdaq down by about three points shares of apple under pressure again this morning. "the wall street journal" reports that the company's suppliers are suffering as the tech giant are struggling to forecast iphone demand paul meeks, lead portfolio manager for wire of the month but he does a lot of stuff in technology paul, you don't think necessarily that apple is inconsequential to tech, but the real leader in your view are the

semiconductors >> i think a turn in the semiconductors which have shown during this season they're in with an inventory correction, a turn there is probably one of the most important tells for recovery in the health of the technology sector as a whole of course you mentioned apple. and what is the company that has the most voracious appetite for memory chips it is apple. there is some linkage. >> intel is okay, right? that's a totally -- you're talking more commodity chips or even intel has got an inventory problem? >> i think there's an inventory problem throughout even last week whe saw with nvidia that's a company as you know was untouchable. it kept on rising. so it does go through i thinks like chips made by somebody like

samsung. to all the way to seeing graphics processors. when it comes to intel, intel seems to have a manufacturing issue that goes beyond so in my fund, the only semiconductor name i own at all is advanced micro devices. i own it because they are taking some market share from intel >> so a couple of quarters, you say, for the correction -- the inventory correction to work itself out then it's going to be a big deal in terms of when customers start buying again you need to buy the stocks before that happens. how long a quarter away >> a couple of quarters, but there are macro factors that are involved but i tell you this. particularly for something like micron which trades at three or four time gex year's earnings if

wall street is in there, if and when we get some kind of semblance of a turnaround, i think that stock would probably double and it probably would double in short order. >> as far as chips, you mentioned broadcom, qualcomm, and micron as names. nvidia you already mentioned if you want tech, you go techish. mastercard and visa, that's totally -- people don't think of that as tech >> yeah. i've been doing this a long time because it's just too tough to be able to guess the turn and see how deep is the inventory in conductors, i try to play defense. the defense is on the field. i do that with techish names that are much less volatile. i do own payment processors like mastercard and visa. also some tower companies like crown castle, american tower

even a little bit of verizon and recently on the drop, i bought some boeing i think all those stocks can be categorized in some way as tech names and they're great places to hide where you have the "d" on the field before you feel more comfortable and bring the offense back on the field. >> so does tech need to cover for the overall market and do we have to wait for chips to recover before tech can recover? it sounds like you're pushing everything out in terms of the overall averages we've got to wait a couple of quarters for everything to recover? >> i don't know. i think in the more defensive sectors you might have a rebound. it could lead to a big downgrade

in gdp, but i don't see that i see a slowdown but nothing too dramatic i think it's a matter of time in technology when the market becomes more robust typically is the leader i think it'll be okay. meantime, i would play defense and even though i'm a veteran tech investor, i'd probably be tech light for the time being. that's my own sector >> okay. you've owned facebook haven't you? >> it is a small position as is apple. i'm quite concerned about both those companies right now. >> concerned about both. >> concerned about sentiment or concerned about the fundamentals at the company or potential regulation that's coming what are your thoughts on each >> well, facebook, you know, they seem to have a whole lot of issues i am not a believer with facebook all of a sudden people are going to abandon them as far as users and advertisers but their business model is in

flux i don't know exactly how much they're going to have to spend to quell some of these privacy concerns i have a sense at facebook sales will rebound at some point once the smoke clears with all this bad pr but what is their business model? now they have to have expensive employees vetting all the fake news and with apple, i really think despite what tim cook may say, the fact that they are no longer going to give guidance on iphone units is a real tell that we are at peak iphone and yes, i know it's nice to have a services business but until things change, you know, the iphone is still 60% of sales. >> do you think it was how they articulated that decision in terms of going toe cold sturkey approach or do you think it was that quarter >> i think it's more the latter. i'm sure they were trying to

wean folks at least in the investor relations mode to we are a services and no longer a hardware company i do think they are pushing services, the deal they signed last week with a-24 studios i think is encouraging because they need content and they need cloud. but the fact is 60% of their sales are iphones. and the other thing that was a tell which i think was interested is the iphone has been around for 11 years here is a move that would have had steve jobs roll over in his grave after 11 years, they're finally joining forces with amazon to sell not just iphone accessories but the iphone themselves when you go into bed with amazon, it's typically good for them and not you it shows me they're desperate to come up with a new source of iphone sales those two things have me worried. i think the stock is worth between $185 and $195.

so it's probably fairly valued, but i don't see a rebound. and i think for investors, that is a stock that should be -- if it's in your portfolio at all, it's an underweighted position >> tech, chips, facebook, apple, payment processing, boeing i mean, do you know offhand the health benefits of beets there's like seven do you know, paul, why they are so good for you? is it heart? is it antioxidants i got you here you seem to know so much about everything else. what else, becky >> boosts brain health prevents cancer. improves digestion >> it's like the wonder food did you know all of this or have i stumped you on this one? >> you stumped me on one thing this morning, joe. >> so you don't know about that. becky seems to know a lot now. anyway, paul meeks

all right. thank you. coming up when we return, stocks to watch ahead of the open plus one of the most influential in decades of the auto market is out. take a look at the futures ahead of the open. we're back in a moment

♪ let's take a look at some stocks to watch this morning simarex energy is buying resolute energy. at a 15% premium over resolute's friday closing price pg&e is reporting there was another outage after the deadly camp fire started in california. regulators are looking into whether an equipment malfunction related to a previously unreported outage caused that fire to start. look at that chart it's quite amazing

>> the only reason it stabilized is the state didn't want to see them bankrupt. and kimberly clark has announced a sale of its tissue business the company called off the sale after offers came in below its $1.2 billion target price. discount retailer big lots was downgraded at piper. piper says that big lots should benefit from a strong tax refund season in early 2019 coming up, much more on what you need to watch at the open this morning the futures under a little bit of pressure. the dow indicated down about 41 points we'll be right back.

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♪ comfort. what we deliver by delivering. breaking news. carlos ghosn running into major trouble. why he was reportedly arrested earlier today in japan facebook under fire. mark zuckerberg said to be using a more aggressive management style and it's not popular with everyone at the tech giant plus trade turmoil what the global markets want to hear from washington and beijing this week. the final hour of "squawk box" begins right now ♪

live from the most powerful city in the world, new york, this is "squawk box. welcome back to "squawk box" here on cnbc live from times square i'm joe kernen along with becky quick and andrew ross sorkin the futures have been in the red for the morning. 33 points for the dow. the nasdaq almost nine, the s&p indicated down a little over four right around four points the treasury yield curve, you see 3.08% now on the 10-year and the dollar has fallen a little bit yeah >> last week we were unwinding the idea we're nowhere near neutral. that we are near or at neutral

coming from the vice chairman of the fed. >> with liesman. right. yeah in headlines this morning, nissan chairman carlos ghosn has been arrested. the executive is under investigation after he allegedly violated japanese financial law. nissan said over a period of many years, ghosn and board director greg kelly underreported compensation amounts. check it out this morning, nissan shares down by more than 8.5% renault shares down by over 10%. and we're going to have more on all of this. the automaker is expected to take steps to oust ghosn we're also watching shares of apple today apple suppliers are suffering after the technology giant is struggling to forecast demand. there have been reported they have slashed forecasts for all

of the models. cut the production plan again over the past week and shares of china e-commerce giant jd.com are falling this morning after the company beat estimates on the bottom line. but its revenue fell short of forecast the stock has fallen more than 40% this year on growth concerns i want to get so political news this morning. for the first time ever, they failed to agree on a communique. the reason a deep divide between the united states and china over trade. eamon javers joins us from washington this morning with the latest >> good morning. not a lot of cooperation on -- in play over the weekend at this asia pacific economic summit they couldn't get the joint communique together over the weekend. world leaders gathered in papua new guinea to talk about trade and the summit featured harsh rhetoric between the united states and china on the issue of

trade. both sides digging in their heels not able to come to any major agreements there xi jingping also there also on hand was vice president mike pence appearing on behalf of donald trump. he laid out exactly what the u.s. position is here's what pence said >> we've taken decisive action to address our trade imbalance with china we put tariffs on $250 billion on chinese goods and could double that number but we hope for better the united states, though, will not change course until china changes its ways >> so the vice president there saying the united states will not change course until china changes its ways xi jingping for his part has said that history has shown confrontation whether it's a cold war or a trade war doesn't produce winners. the two very at logger heads over the weekend no resolution to the issues on the table between the countries. that means everyone's focused on

the g20 hoping that might be the point at which a deal can come together both xi jingping and president trump will be in argentina, we are told it didn't sound like it over the weekend. >> okay. we're going to leave it there. thank you, eamon appreciate it. let's use that as a jumping off place for the markets. joining us to talk about that is chief economist of the americas at ntixis. and our own mike santoli is here as well. joe, anybody who was counting on the g20 where this gets rolled you have may have second thoughts about this this morning. what do you think after hearing what eamon said? >> mostly negotiation. if there's going to be a deal, it'll come at g20. not at this event where the president wasn't there >> this sounded like a doubling down we've heard some softer language that's been used by administration officials recently including larry kudlow.

what does this tell you? >> this is what the president always does. this isn't a criticism this is his negotiationing tile of doubling down and being tough. staking a hard position and moving more to the center. to me, it's way too early to say whether this isn't going to work i'm hopefully at some point there will be a deal in large part because it's more in china's interest given how weak their economy is and stock markets are. to me the u.s. is in a much better negotiating position. and the policies in my mind reflect that. >> what do you see playing out in the markets >> it's been notable the last couple of weeks that chinese stocks in general have gotten some transaction i don't think -- >> after declining -- >> exactly i don't think it's which side has more leverage or how the negotiation gos, it's much more about the hardest hit parts of the global markets have found a little bit of traction right now. that's all i'm really observing. so i think the markets are not

saying, oh, this is a contagion event or it's going to spiral out of control for that matter, i think the next round of tariffs are all that really matter ifs you come out in argentina with some kind of agreement to keep talking that might be fine but the bigger point to me for the u.s. market, this is just one strand of what's been going on the last couple of months you had this very, very crowded big tech stocks. you had oils crash none of this is necessarily the same thing so you have multiple forces as well as this kind of mini panic over corporate debt happening at the same time. >> well, it does make you think about late cycle end of cycle where are we on that spectrum. >> exactly there is a ton of sensitivity to any cycles that it's aging more than we hope also it was not as universally wonderful. >> it wasn't bad it's hard to imagine we're in a bearish place right now, 5.7% off the highs of the dow

i mean, that's two or three days. >> that is true. >> don't you feel it versus two weeks ago or a month ago that -- >> when you have a correction phase going on more than a month, it's not just the dow down end of cycle down bull markets, end of economic cycles end of growth period end of this, end of that at the end of the debt cycle, we're all over-leveraged now >> the question is are we headed off a cliff or not >> it was bullish if it were not over. >> but the weird part of that is trying to figure out what that means for the fed. people have been concerned the fed is going to raise rates too quickly. now this morning the 10-year note what does that tell you? >> michael talked about tech he talked about oil. he talked about a bunch of things happening in the markets. that's all fed that's the fed raising rates relatively -- very aggressive

relative to the rest of the world. it's upwards of $50 billion. ecb intending to next year not reinvest $30 billion the market is expecting there to be less liquidity, less hospitable investment conditions that is what largely in my mind is what is driving markets until the fed more clearly backs away from what i believe is too aggressive policy, we're going to continue to have these worries. and we're going to be concerned about being late cycle. >> did you hear what rich clarida said here? >> it wasn't enough. >> why >> the fed doesn't even know what neutral is. >> to hear clarida say we're reaching that area >> we are. but the thing is, neutral rates aren't directly observable you only know what they are after the fact i argue when you look at the housing market, it's clear we're past neutral housing would be doing better if

rates were below neutral they're not. rich made good points, but i don't believe the fed has gone far enough saying let's wait and see how things play out. >> i was just going to say the market doesn't like the fact that the people running the fed believe their standing 2019 forecast leaves them room to do whatever there's eight live meetings next year they're talking two or three maybe with a move at this point know whag we know. >> and a move in december. >> if the data go in that direction. look maybe the stock market and the fed are looking at two different set of numbers >> i take the stock market >> how do you define a santa claus rally? how do you define it what are the -- what's the likelihood >> i defer to the old-timers the santa claus rally are only the days from christmas eve through the new year. >> so not into christmas >> that's right. >> okay. let me -- >> it's not like as soon as the macy's parade is over --

>> what do you think the chance the averages see new highs before the end of the year >> higher than here is a decent shot >> higher than here but less than 50/50 -- >> that we hit a record high >> i was surprised 5.7% on the dow, we could be mouthing -- this could be the beginning of a horrible something we didn't anticipate >>. >> that spring loaded move could happen, still, but it's not certain. >> it would shock me if we're saying we're at new highs again. >> also the baron's cover from 2008, the battered bull. >> yeah. but the market was really -- it was down by a third at that point. then it went down another 30%. >> and it was a picture of the bull with a thumbs up. >> right people who are in the business are going to be net bullish whether it's going down or going up i think it's not necessarily a

signal >> all right mike, thank you very much. joe, great to see you. >> good to see you coming up -- >> i'm staying >> you can always say that to me >> thanks for coming in, joe. >> you're welcome. mark zuckerberg and sheryl sandberg, their management amid times of trouble shares of social media giant since the cambridge analytica eaandal broke, hasn't been grt. stay tuned you're watching "squawk box" on cnbc i know you want to leave me for schwab, but before you do that, you should meet our newest team member, tecky. i'm tecky. i can do it all. go ahead, ask it a question. tecky, can you offer low costs and award-winning wealth management with a satisfaction guarantee, like schwab? sorry. tecky can't do that. schwabbb! calling schwab. we don't have a satisfaction guarantee, but we do have tecky!

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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 box," everybody. we are following a developing story out of japan nissan's ceo holding a news conference right now he says chairman carlos ghosn has been arrested. the ceo plans to propose ousting ghosn at the automakers board meeting on thursday. he says ghosn's financial misconduct was unacceptable and serious. we will continue to monitor this news conference. we are looking for additional details on what they found but we'll bring you those headlines as this happen

>> the stock was down 10% as questions continue to swirl about whether there are larger kb implications about these shenanigans on the compensation and whether that translates into larger problems in terms of accounting elsewhere meantime, i don't know if we also want to put it in a scandal category, facebook coming under a lot more fire. the former security chief alex stamos detailing a run-in with sheryl sandberg. stamos was part of the piece on how facebook dealt with the russian interference >> congress needs to regulate online ads it's true that facebook and google in particular have taken a bunch of steps to control political advertising to make it hard to have the same kind of attack but those are voluntary. and they don't apply to the

thousands oth thousand other companies in the space. we have to be careful on what to ask these companies to fix we might grant them powers that down the road we would have liked to have -- >> joiniactually, i'm going to o ken on this. let me start with this after this article came out last week and now there's been a series of articles, it feels like there's an inflection point here the question is whether you think advertisers -- not whether just regulators do something but if advertisers leave, there's a story about how young kids in the valley don't want to work for facebook. is this an inflection point? >> i think it is it's similar to the inflection point that hit in 2000 they went through an anti-trust

trial which they lost. it created a morale crisis young engineers that looked to go forward looking didn't go to microsoft. and they lost over a decade of momentum which they now regained you've seen it down 36% from a high in july you see it with people not wanting to join. you see it with the morale problem they have. and you see with potential division between he and sheryl sandberg >> do you think that potential division is real and how do you think that manifesting itself >> i think there's nuance to that which is in any office environment, any high pressure environment you'll have tok execs disagreeing and the ceo blaming something like a sheryl sandberg you need to fix it then maybe she fixed it and he goes, good job keep going.

what's notable in all these things, doing their own sort of pr misinformation if you want to call it that, that feels very much like a sheryl sandberg operation. it's the type of thing that mark zuckerberg wouldn't have the imagination to pull off or execute. >> the thing about that piece and all of the other pieces that come out over the week or at least raise the question, red flag about what is the intent. meaning, i think everybody thought that whether it was mark or sheryl or the company's intent was to do good, and then all of a sudden this has raised the red flag there's something else going on here >> you're talking about human beings human beings suddenly -- zuckerburg and sheryl sandberg are confronted with evidence that maybe facebook is not impregnable. maybe their algorithms work as they thought they don't want to admit it. they're just human beings and they have trouble doing it

then do i want to take responsibility alex stamos was very aggressive of his criticism for sheryl and zuckerberg for not being proactive. >> mark and sheryl have portrayed the company of being the victim the victim of the press, hackers, all of these things are they victims or did they create this? >> i think they're in charge of probably the most powerful mass communication tool we've seen in maybe ever and that's a hard thing to have to manage. it is their fault. they have to fix it. i think they haven't figured out the depth and the breadth of the effect that facebook has on people and the world and that's the imagination part. they need to be better at imagining the problems >> so you have a company that is controlled by one individual in mark zuckerberg. what do you think the board should but also can do, right?

>> i think the board has a lean on him more than they have but there's no way they're going to replace mark zuckerberg the guy is a genius. their belief is in machines. it's not in people and what happened? the machines didn't work didn't block the fake news, didn't block the bots. in the last year, he's hired 10,000 editors to limit that there are limitations to the machines of the human problem they're dealing with >> it's a content problem. you can't have an algorithm to change every content issue they still think like that the shadow content board that zuckerberg is talking about to vet -- >> but do they need to bring in another -- sheryl was brought in originally called the adult in the room do you have to bring in somebody sne else do you have to bring a chairman in or somebody in to create

sensibility on this? >> there's no question but washington reporters to her, public relations to her, she's lost some of the halo she had. she is a very capable person is she capable of fixing it? yeah but they're going to need some help by the way, pressure from advertisers really is a big important point. 97% of their income comes from advertising. advertising want a friendly environment for their products if they don't perceive facebook as a friendly environment, go good-b good-bye >> one god idea is they bring back somebody like a don graham to the board somebody who has experience with the company going back a long time and who has a lot of gravitas >> i think you can add people with guys like don

i still think facebook's issue is largely structural. right? they still rely on user generated content to drive it. >> do you think they're going to fundamentally change the model create a paid business if you created a pay business in the united states to make up for the advertising dollars lost, you'd have to charge each individual over a hundred dollars a year do you think there's an audience by the way, that's a hundred dollars if every current user were to actually pay. >> subscription model is not an answer for the problem facebook is free and they're giving something some are saying you've got my data, what are you doing with this and it's a too much power issue. you know, there are big issues >> there are ideas to sort of pay people in the day-to-day lives. you might get a dividends back

on a quarterly basis for your supply, right? >> we always talk about tech regulation what do you think that actually looks like in reality in the united states? forget about europe for a seconds. >> well, i'm going to bring it to europe for a second because they present a current model the united states could look at and pick off of. all these notices saying we're going to use your data, okay >> that's the fakest thing around how many times have you gotten those and you say okay, okay, okay, every time >> the other thing, what europe did do, they said in order for you to have my data and be able to target answer me, i have to opt in i have to approve it as a consumer is they don't want that to happen, but that's what's happening in the eu. >> this is going to continue to happen they might not change the structure of how it works, but unless they tamp it down or figure out how these things flow

the the flork, people will find a way to exploit the system. the lack of imagination, a lot of facebook executives that mark zuckerberg himself is a very earnest and idealistic person doesn't suit the company right now. >> final we. does this, you know -- how do we think that users are going to change their behavior? because the advertisers are going to follow the users. that's at least my supposition if the customers really leave facebook, what are they going to leave facebook for instagram which is still facebook is snap the beneficiary? is twitter >> they have lost some support among, you know, the generation "z" which is the teenage generation. >> i'm not sure that's a function of fake news or anything educational >> younger, cooler nobody wants to be where their parents are. >> if there are 2.2 billion

worldwide users and that growth is stalled, it probably is beginning to slip a bit. >> it's all in the u.s. for sure it's creeping downwards in the u.s. my 13-year-old, she's not on any facebook owned products. >> not even instagram? >> instagram on occasion >> adults are overrated. aren't they? don't do this, don't do that they're always trying to put the kibosh on the geniuses on the elon musks. >> you're saying that because there's no adults in this room >> right but what is it is it an age does anyone know >> it's following the rules mentality. >> i think it's a state of mind. many people never reach adulthood. >> yeah. there are a lot of people who aren't there yet >> is doing it overrated though? >> is adulthood overrated?

>> yeah. watching you, watching you >> thank you to all the peter pans at the table. ken auletta from the new yorker and ed lee thank you. when we come back, florida is suing walgreens and cvs over opioid sales we have the details and implications when "squawk box" comes right back sfx: [phone ringing] you still have service? call the insurance company it's them, calling us. it's going to be a week before they can get through on these roads shhh, sorry, i didn't catch that. i said ask how soon they can be here not you. right now? what's now? he says they're surveying our property now they're probably at the wrong house i don't see any hovering his name is hovering? look up? by using machine learning and analytics to automate claims, cognizant is helping insurance companies advance how they serve even the hardest-to-reach customers.

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agree on a direction for the company. drexler is still the chairman of j.crew two other retail apparels will be released earnings today. l brands and urban outfitters. and the housing report is out at 10:00 eastern time. we'll also see october housing starts tomorrow and home sales on wednesday in other corporate news, cvs and walgreens are being sued by the state of florida the two drug chains are accused of not doing enough to stem the legal sale of opioids. the cdc reporting the deaths every day from the drugs walgreens says it doesn't comment on pending lawsuits.

former new york city mayor michael blook berg giving $1.8 billion to johns hopkins it is the largest ever to an academic institution it will be used for scholarships and grants from lower and mid-income families. i don't know if you read this from the mayor what he effectively believes is he wants to create need blind education at all of the major top universities in the country. and says if you can do that, you can effectively change the dynamic in this country. because when you talk about upward mobility, part of the great struggle is that there's a lot of people who could absolutely and deserve to get into these institutions that don't have the opportunity to get there. when you think about why perhaps the 1% stay the 1%, it's because they can pay for it. >> some places have that to some extent the thing is knowing if you'll

get them covered it stops people from going to begin request. >> he also created another not for profit that's now works as a counselor to kids in middle income families and inner cities to get them to apply when they historically didn't think they had a shot >> or you don't know what the package is until late in the process. johns hopkins, he's given more money there than any has been given. oil prices are now lower they had been rising earlier in the session. take a quick look at -- here they are right now $56 which is amazing joining us on the line, helima croft. we'll get a quick comment from you on what has just been crazy in the last six months helima. i don't know if anyone would have seen the spike up and then the drop back down in a word, do you think it's

mostly supply? you think demand is not what we're talking about here globally >> i mean, i think there is this lingering concern about demand because of the trade war fears certainly the story was that saudi arabia and russia put a lot of barrels on the market in advance of iran sanctions. now the question is did they really oversupply the market with u.s. production seemingly unstoppable right now? >> so you used to write cia intelligence >> i did >> you know the nuances around all these documents. where are we and where will we finally end up with the khashoggi killing in your view and in our approach to the middle east? >> i mean, the cia, what we know about what the cia had in those documents was it was a high degree of confidence that the crown prince of saudi arabia ordered the killing of jamal khashoggi.

people have pointed out the assessment is not bulletproof. there is a degree of analytic judgment that is in any intelligence assessment. but the fact is they believe they have a high degree of confidence, that is based on sourcing it's extraordinarily to ve the leading u.s. intelligence agency coming out with a strong finding on a sensitive issue. >> don't you think they're coming out with a strong finding and it's been leaked to put the president in a corner on this very issue >> i mean, clearly somebody with access to that report, a highly sensitive report, believes that the information needs to see the light of day it would be interesting to see who leaked it. but it certainly does put the ci aurks and white house in a difficult position right now because president trump, you know, continues to stand by the crown prince of saudi arabia we've sanctioned 17 individuals. the treasury did last week

but the saudi crown prince is not on that list so we're going to have to look at what congress does with this information. there are a lot of prominent republican senators right now. lindsey graham at the top of the list that are trying to put tougher sanctions on saudi arabia and continue to say that the saudi crown prince would be behind -- >> what would be the result of putting sanctions on mbs himself? >> the question would it block his ability to freeze his assets i think what congress is trying to do right now is they're trying to basically look at the war in yemen and say should the u.s. use this, you know, incident to potentially put more pressure on saudi arabia to wind down the war in yemen. what lindsey graham is talking about doing is blocking the sale of offensive weaponry to saudi arabia they're using the yemen war to have leverage overthe koun prince >> what i'm asking is what are

the implication ifs they were to do that on the united states >> i mean, in terms of what the -- if the crown prince was added to that list, it certainly would be, you know, complicated in terms of investing at anything he had a stake in, for example. i think putting him on the sanctions list would more broadly make it more difficult for u.s. investors to get behind a number of the initiatives that will be required to be successful i think it would be more damaging to saudi's overall economic program if you had the de facto head of state put on a sanctions list. >> what happens if you were put on for six months? >> it's an interesting question. if you put him on for six months, then it becomes up to each individual corporate how they feel about investing in saudi arabia there'll be companies that will continue to have to invest in saudi arabia like energy companies are going to continue to invest in saudi arabia because they have a long

standing relationship with sau lee aramco and saudi aramco in no way have been implemented in this any tech investments going forward, those sectors, i think, are going to find it hard to do business with saudi arabia >> so they're mad that we allowed iran to get around some of these sanctions and they want it back. this is not a great time for them to decide to send it back up to $80. is that what you think is going to happen with the saudis? >> i think this is a really interesting question about why statements coming out of opec didn't gain more traction last week because they were very forceful saying we'll do what it takes. there's a corner of the market saying is saudi going forward removing so many barrels in a situation where president trump remains an ally of the government that said, there's also a view that i heard last week in abu

dhabi that, look, the saudis were led to believe there would be no exemptions or waivers and were not happy eight countries received waivers some believed they were tricked into putting so many barrels on the market in advance of those sanctions. it's going to be interesting to see where saudi arabia comes down on this issue this is a very tricky relationship they have to navigate with the white house. >> all right, helima thank you. >> thank you. >> helima croft, rbc capital markets. when we return, nissan taking steps to oust carlos ghosn after he was arrested today after allegations of serious misconduct the ceo holding a press 'lbrg ence right now wel inyou the latest when "squawk box" returns after this. it's time for ultimate sleep number week on the

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welcome back to "squawk box. nissan ceo is holding a press conference hours after carlos ghosn was arrested it's been a shocking development this morning phil lebeau joins us with the latest in chicago this morning good morning to you. >> and who you are looking at they are is hiroda sakawa. he has worked with carlos ghosn for most of those 40 years this is a bit of a surreal press

conference they're not going into a whole lot of details what they have told us is there are three reasons why he will be pushing for the removal of carlos ghosn as chairman of the nissan corporation and then effectively brings into question whether he is the chairman of nissan-renault looking at misuse of the company's investment assets in relationship to those statements that looks like it's a reporting issue. then finally the -- basically let's put it in layman's terms misreporting financial reports in terms of personal compensation i don't that, they're not going into specifics it's his understanding that he landed in tokyo and then shortly

was placed under arrest. although we have not been able to confirm that independently. he will be pushing for the board of directors to meet on thursday and replace carlos ghosn he talks about how he's bewildered at what has happened and that this is the result of one person having so much influence on a company he then railed a at great length on what he called the cultive personality of one person. so it's hard to straighten out exactly what exactly they are saying about what happened with carlos ghosn aside from a whistle-blower saying he acted inappropriately. but there is certainly an element here of ceosakawa making

it clear he doesn't wecare for carlos ghosn >> it's interesting. that in itself may be more of a culture issue. >> right >> and i don't know what the structure is there, becky, in terms of your corporate governance and its still remains to be seen nor have we heard from carlos ghosn and greg kelly who is also a board director who is also at the heart of this. mr. sakawa used the terms master mooinds. the master minds behind this these are all the details we haven't heard about yet. >> stay with us. joining us now on the squawk newsline is paul ingrassia

we're seeing the stock down this morning significantly for nissan and renault. the question becomes are those stocks down because of accounting questions being raised that leads you to believe if there are other accounting fraud issues or are they down because carlos ghosn is likely to be gone >> well, becky, i think they're down for the fundamental reason that the whole future of this alliance is now in question. it's been a remarkably successful alliance. and it was a very unusual arrangement. when they put these with cross holdings and a common ceo with carlos ghosn, the idea is they would use mutually advantageous cost synergies but they would remain separate in their identities which was probably important to both of them. although it was very counterintuitive it's hard to overstate i mean, nissan was basically dead when carlos came in in 1998 he put in draconian cost-cutting

moves, that no insider or japanese quite frankly could have done. he became a national hero in japan for saving nissan. he was actually -- his life was the subject of a best selling comic book, believe it or not. so it's a remarkable record. he stayed an awful long time look, we have to presume incidence here but who knows whether hubris has set in that's the big big question here the fundamental question for investors to your point about prices, is this going to alive without the pivotal person that is the big unknown. >> phil? >> becky, to what paul's talking about, the ceo talking rite now in japan said repeatedly we believe this alliance is strong. we believe this doesn't check -- influence the day-to-day operations at nissan and that the alliance should

continue but keep in mind carlos ghosn is the ceo of renault and if these allegations are only regarding nissan and there's still an alliance afterwards and the renault board looks at this and says, we and e still like ghosn as ceo. how does this continue if you have one-half of the relationship that say we want them out and the other half that wants him removed. can the alliance continue? >> go ahead. >> the other thing i would add is what's remarkable in the space about six months, becky, two pillars of the global automotive industry, the two most successful are gone it is possible that renault will keep him on.

there is a lot of uncertainty here there is going to be a lot of snarky puns. the fundamental of the certainty and the departure of sergio and the departure of carlos ghosn is a remarkable change for this global industry. >> phil brought up the point earlier of the cult of personality and that's what the ceo is railing against this press conference i guess you can see it if you look back at it historically we have to wait to see how it all plays out. if you look back at a company that's on a verge of collapse and seeing someone come in and run it, maybe start running it like they own it the best selling comic book sort of speak for itself, does it, becky? >> there was a personality cult around carlos ghosn and especially in japan with nissan,

probably more in france with renault. his personal power there served the company very well. there is a lot of issues about staying in a job as long as he has. it would not -- the factor cult can set in this has an incredible ring to it we presume innocence here and see what unfolds if these companies get put into play, who would be a potential buyer? >> boy, that's a great question. for renault, it is hard to do because of the french government controlling you know long influence and not controlling interests but significant states in that company.

although potential with psa, that could happen. with nissan, it is hard to believe. it is a pillar of the japanese corporate establishment. even during the dark year of virtual bankruptcy of 20 years ago. the company did remain you know anomaly independent even though renault took a controlling state and carlos ghosn became the ceo of renault and nissan. it is a at a time when automotives are fairly risky >> all right, i want to thank you for joining us today, paul good talking to you. and phil, we'll see you soon >> thank you, becky. >> general electric announced

its new leadership team. john rice's returning to the company to serve the chair services will be ceo and current power ceo. robert stoelt is the ceo john rice is coming back over the years. you know him -- probably positive for the company >> look, well-liked. obviously season hands are what needed in the division of the challenge. if they can get their arms around power, i think there is some good things happening >> how about apple the latest? it is going to be down again today. >> same story endlessly. that story takes a feedback, we don't know how much some are

slowing down verses others we do know the cfo tells you of the supply chain issues. it is the same story tomorrow could be the same story. it does not stop -- it is like facebook everyday you will see a negative story about facebook or apple or a negative story about ge and it is the same story every time it is okay because it is journalist >> yep >> it is not like you can't write that and a lot of editors out there saying hey, we wrote this last week okay, does the monday guy know what the friday guy did. you can write the same stories endlessly. i bet the same story will be written again by "the journal" or "tthe "times." >> the past is the past, big game tonight

>> i am for andy reed. he used to coach england >> big game tonight. >> oh, it is going to be exciting not having to turn it off or be upset. that will be fabulous. i am looking forward to that >> jim during the halftime, negative commercials and facebook and apple and ge >> did you see the score of yesterday's redskins game? 23-21. it is a weird score, too >> very weird. >> that's exactly 33 years it is so horrible though >> what is the emergency no, that's bad >> exactly >> thanks jim, we'll see you >> i have a negative article of apple and ge and facebook.

it is not here yet i am writing it right now. >> all right werks g, we got too >> all right werks g, we got too "squawk box" will be right back. ♪ >> all right werks g, we got too "squawk box" will be right back. ♪ ♪ ♪

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take a look at the 10-yr note yielding below 3.1% after thoughts that maybe the fed won't raise rates quickly. we heard from the chairman on "squawk box. h he's the main reason those come down anyway, that's it for "squawk box" right now you're joining us for "squawk on the street" right here >> good monday morning, welcome to "squawk on the street," i am carl quintanilla and jim cramer and david faber. welcome to thanksgiving week on thursday ge and facebook andrenault any st. joh and more 10-yr yields t