>> announcer: live from new york where business never sleeps. this is "squawk box. >> good morning, everybody welcome to "squawk box" here on cnbc let's look at u.s. equity few y turs nasdaq down by about 14 points this comes after a down day yesterday. muted losses with what is happening with the oil patch and concerns in the middle east. it did end an eight-day win streak for the dow red arrows across the board but pretty modest losses oil prices were up sharply wti and brent both up about 14%. wti had its best day since

december 2008. brent had its best day since collecting data. you are still looking at wti at 61.81 and present at 65.85 in asia, the knnikkei up about 3 points this morning, some early trading in europe, fairly muted there. ftse slightly higher in france, the cac slightly down, so is the dax. check out treasury yields, the so-year is now yielding 1.833% the 30 year a little lower but well above what we've seen in recent months. >> let's talk about the corporate story of the morning

wework now delaying its ipo. surprise but says it will still go public by the end of the year the company has been prepared for its investor road show which was supposed to take place today. but made the decision last night to stand down. this reportedly over concerns that there is not enough stock mark et investors. work reporting they will not go public until at least october at the earliest adam neumann wants to get through the jewish holidays before he considers the next steps. >> because that is what is keeping the interest down? >> i think in terms of the calendar when you might begin the process. the company's valuation has been slashed by as much as $37

billion since its first ipo filing the biggest investor has been pushing to shelf the deal entirely saying we'll hold a company webcast for employees this morning. my understanding is that softbank and wework has come to some kind of compromise. i don't know if there were additional ratchets or monies or softbank was going to buy part of it. >> they wanted to shelf it but do they want to put more of their own money in it. >> my understanding is they want to put more in the issue is not getting money from softbank but that they couldn't get enough from public investors. after smile direct club which was a disappointment and everything else, i think there is a few that for better or

worse, there is not the appetite out there. how much guests have we had on the last couple of weeks >> how much guests have panned it or have we had on >> is this a high water mark >> i think it has to go public to be a high water mark. i think it will be a very low water mark i'm trying to have human to human interaction today. >> what does your horoscope say? >> it does say not to be cynical. so amid all of the crap and everything going on, seriously that's the latest book. >> his points are, put down the

cell phone interact, look at people in line. >> when you are standing in line, it will be hard. go to a movie, wherever you happen to be and you are waiting. talk about them and ask a bunch of questions and look interested lean in and look in their eyes >> he said he learned that from oprah and others. >> if somebody did that to me, i would leave. if i do it, they would think this guy is a creapster. he's a hollywood type. >> he's highly successful. >> yes, he is. i'm trying to do it? aren't i >> insincerely

>> you, by the way, have not had cynical comments yourself at all about wework >> i was thinking -- i'm on "fast money. i share this work space. we have our own little version of wework. we have too much capacity in everything cars, houses -- >> i don't see you sharing in any of those things anytime soon >> air barc&b was a problem i don't want to sleep in somebody's dirty sheet >> you know what dust is dust is skin so you are sleeping in people's skin >> that happens at hotels as

well inbev, the company plans to raise up to $4.8 billion and will offer 1.3 billion shares at a share of 27 to 30 hong kong dollars each valued at $45.5 to $50.7 billion. it could sell up to 40 more shares the company will begin taking orders for that tomorrow >> some new developments on the attack that took place in saudi arabia over the weekend. nbc news says american intelligence says that the strikes originated from iran in response to the attacks, maybe a little bit of softening to comments. we'll go now to riyadh with the

latest hello again, hadley. >> reporter: good morning. if anything was really needed to show you how much legs this story will have. president trump suggesting that secretary of state mike pompeo could be in riyadh within days and the king's council has been meeting. we heard this morning, there will be a press conference around 8:00 p.m. local time with officials from aramco, and oil minister the question will be not just the obvious ones about output. we've been hearing a lot of reports about saudi aramco contacting customers with warnings that they'll not be able to fulfill their october commitments and questions about what kind of crude they have in

reserve and that they would offer as replacements. so a lot of questions later today. we'll head off there in a few minutes. saudi arabia foreign minister releasing a word what is going on here. suggesting that the weapons used in the attacks were iranian weapons. they did stop short unlike the president and unlike mike pompeo of blaming this squarely on tehran and that saudis don't seem quite ready to put blame for the attacks yet. >> we'll wait for that nothing major in the works at this point from anywhere

thank you. we'll check back later this morning. energy majors also responding to the attacks and impact on gleobal production. here is chevr o's ceo. >> i will tell you saudi aramco is a reputable company there are still damage assessments be eing done, signs they may come back on line fairly soon. that is the question, for how long will this supply be off the market there are some areas that will come in perhaps more quickly for the ramp up from the united states >> and showing that risks in the energy sector are real and markets had grown comfortable with those risks >> coming up, it is fed week

we are just days away from the fed's decision we'll tell you what to expect from fed chair jay powell. reminder that delivering alpha investor summit is back in new york we have a big lineup including one on one interview with mike pence. you can register for tickets now. as we head to break, a look at the biggest pre-market winners and losers on the dow. we think you would really shine in the aflac program. aflac! coach saban we have health insurance. did health insurance pay for everything? no, we still have bills.

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>> the feds two-day meeting kicks off today. the latest results of the survey more on what he found. >> good morning. 43 strategists polled. they are pretty much right about the next stuff 100% see a 25 basis point rate cut. 92% say the next cut would be in december note that is only one more after this one 1.56% is the average fund rate

seen in 2020 another one dialled in for sometime next year or a debate about how many 51% say the fed should cut some of those say the fed should cut by 50 basis points the probability this morning have change. 44% say the fed should not do anything 25% of the reason is put on the trade war. we took a couple of the reasons out. people do not believe that the market is reacting to pressure from president trump just 8% of the reason of the rate cut chief market economist says while the fed does not want to underwrite the john going trade war.

we look for four cuts in 2019 completely unwinding the four rate increases in 2018 saying economic data and conditions are not exactly screaming for cuts but someone at 1600 pennsylvania avenue sure is >> i've been thinking about what we've been hearing the past week or two, after the last couple of times we heard from the fed, we saw the market sell off. it was expecting everything it got. if you have 100% already expecting a 25% rate cut and 92% expecting a cut next time they meet in december, it seems like they could be setting themselves up for the same condition. they expect it will happen anything in the commentary that would make it seem like we are not in the rate cut. >> that old adjustment, that

stuff matters in the day to day and the total easing in the economy. if you were to show a chart of the 10-year, which you've completely forgotten was what in november 2018. we've all forgotten this all up near 3% do you remember that >> no, i don't >> guys in the back, if could you put up that 10-year chart going back to september, november last year. >> it was up there a lot of easing that has come through the mortgage market, fixed income, bond market. all these easing the fed has to meet the easing it has been delivered by the market >> if you were jay powell, you have a choice. i'm either doing what trump wanted me to do or i'm

acknowledging you as right you could come back and say, well you caused it yourself with your trade wars. >> why are there even four people at the table when you could have the conversation with yourself you are right. that's exactly what i would respond. >> because i know you. i'm thinking wow, i don't know which is worse, admitting i was succumbing to the pressure to president trump admitting you are right but then i would say, well, when you do it yourself, it's pretty easy to engender your own right cut right? >> i think that is probably a good response. >> all right you can stay >> there are si reason other

presidents have chosen not to talk about the fed >> we've gone back and seen many presidents have jaw boned over the years. >> come on come on. you give me your list, i'll give you mine and we'll compare >> social media allows it to be widely disseminated. >> if you think a president would have trouble with the remarks. >> who is the pred that through the fed chief up against the wall >> he used to kick everybody with his boots what do you think jeffery. ahead ahead of fixed income. >> mild mannered portfolio manager by day

>> what do you think >> i think this is a conversation about the yield curve and not so much the rates. i think the curve inversion spooks them or gives them a concern. we've been three-month build or 10-year notes inverted twos and tens inverted when we look at the drivers, the back end is the global growth. the front end is central bank policy if you run a chart against 10-year booms, that holds up well that is pretty solid i think european longer term rates might drive the rate here when you've still got the policy in the ecb through a whole laundry list of easing in the market

you still get the list that has paused part of the flattening anyway is the fact that the feds will ease in here but that they are a little behind. does the flattening create an inversion. i think the back end responds more to global pressures the front end still saying in tune >> would you buy treasuries here >> we would not buy treasuries here i think barring any kind of real inflation or growth scare you'd have a hard time selling me on 2 to 2.4 would be a fair share you can build a-year-old curve about 40 to 50%. that feels like where we should

be we have reasonably good trend growth here in the u.s inflation is kind of within or close to that band positively slope yield curve around 40 to 50 basis points kind of feels right. it will just take a little while to get there a little news and relief on trade and stimulus how are we going to find capacity to do that. you'll get a more normalized curve. >> good to see you thank you for coming in today. >> my response to you would be the weakness that was manifested in europe probably wasn't mainly due to the trade wars. that that was already -- >> my response to you, joe, would be -- >> i respond to you for me. >> i don't talk? >> yeah. and the trade war is hurting in

europe increasingly seen as responsible for global economic weakness >> when brian says talk to people, he doesn't mean talk for them >> really? >> i felt like you were communicating with me. >> that's what i was trying to do >> impress the flesh >> i'm always trying to impress the flesh. >> if you were doing a comedy show, they say the guests are the furniture. you are not supposed to say anything that is totally different. coming up, when when where he return if you are thinking about buying the new iphone 11, don't go

anywhere we've been test driving the new models we'll have the review when we return from the break. >> today's big number, 1.47 billion how many ionphes released to 2018 they stopped releasing unit sales at the end of last year. ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse.

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and we use those insights to show you what they might consider buying next. mid-century modern, nice. that way, you can keep sending them offers for the perfect products. and that keeps them coming back. how's that for changing what's possible? >> it has been a week since apple unveiled the new iphones our editor has been test driving. you are holding one. what do we think >> very nice phones. worth the upgrade for people all the way back to the 6.

if you have the 10, i'm not sure you want to upgrade yet. two things consumers care about. batteries and cameras. they had the best camera >> people thought the google pixel was better >> now they have the night vision and super wide. super wide, regular wide the two-time zoom. iphone 11 has everything in the pro max but just a little different screen not as bright and colorful also doesn't have the zoom lens. this is what most people need to buy. it's $699. everyone is complaining that

iphones are costing too much these are becoming service devices. portals to serve you have apple arcade, apple tv plus coming. you have apple news. you can pay for all of that. >> here is the thing i can't figure out i hate to say this the camera, more innovation. ios 13, which i can get on my current phone. is there something coming? have we maxed out on what they can do >> that's a good question. you saw that with the samsung and galaxy fold that didn't work yes, down the line, we'll get to seeing new devices that will get people to say, wow i need that

things people care about >> next year, we are going to get 5g >> for people who want to buy this phone and get the next upgrade. you have early upgrade that's what i have >> this is a better camera that what we see here >> it is pretty good apple is working with developers to film multiple developers about what you see on the back it is impressive it is crazy what that can do. >> of the three, you are going with the cheapest one. >> i personally am going with the large one, the max i like the screen. >> how many hours can i really go >> they say five extra >> five extra over what? >> over last year's model.

the 10 s 10 s max. >> on this, i can get through most of the day, not all of the day. >> yesterday, i was at 50% i woke up and flew home and was still charged when i went to bed. >> were you on the whole time? >> on the plane, i was in airplane mode. impressive >> so five extra hours >> it should go all day. >> do you think the battery just dropped -- another thing after about six months >> the battery does drop off apple does go through the battery program. they can change the battery for free or for $30. >> i need it because i'm at 85%.

>> you need to upgrade >> a lot of people i talk to have the 6 or the 6 s. get the 11. >> your door is locked >> my whole house is fully connected. >> should i get a battery? >> he needs a new phone. upgrade. >> it seems fine but i'm at 85%. >> that's apple's problem. the older phones are still good. >> is everything going to be a bigger screen? >> can you get close to this size with the iphone 11 pro. >> i'm looking at these pictures like we have a little annie leibowitz in the room here >> i'm not joking. the quality is better than we

are seeing there >> todd, thank you he's going to be back here tomorrow with a review of the apple watch. you can see more of todd's reviews on cnbc.com in a bit. >> when we come back, content wars netflix lands the streaming rights to "seinfeld. take a quick look at s&p winners and losers through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet...

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>> announcer: welcome back you are watching "squawk box." live from the market site in times square >> down about 42, 43 points. nasdaq down around 12. we broke it yesterday.

w we had eight in a row. seinfeld is heading to netflix the video service acquired the global streaming rights to the sitcom will offer all 180 episodes of seinfeld starting in 2021. the latest escalation after they lost the rights to stream friends and the office a source tells cnbc that's price far exceeds $500 million they paid for "the office." >> seinfeld did not do as well on hulu. unlike friends which accounted for much of the viewing on netflix. there is a big question mark on both the audience and platform

in terms of finding shows and who is watching and why. >> by the way, the s&p was down on friday, the dow was up on friday when we come back, the future of work we'll talk about big changes to the labor market coming up, our guest for the hour, aryeh bourkoff will talk about content wars stay tuned to cnbc was ahead of its time.

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they're effortless. just slip them right on and off. skechers slip-ons, with air-cooled memory foam. welcome back to "squawk box. the auto workers union has restarted talks. should we think there is any movement on this or okay, we are back to talking -- >> they started talking again yesterday at 10:00 in the morning. i've been told the talks went on pretty regularly throughout the day yesterday. i wouldn't read too much of that in terms of they are closer to making a deal. you know how this goes this is a slow process two steps forward, one step back is it possible we'll see some type of resolution

they've said don't be surprised if this extends out and how many workers general motors has and the health care benefits being paid in terms of supply and show rooms, you don't have to worry about general motors running low anytime soon the bread and butter, you are talking their silverado pickup they've got a 90-day supply. in terms of context, 60 to 61 days would be considered the opt ma opt imal supply to have. >> a strike meaning no more than one or two weeks is comfortably supported by their inventory

they have $17 billion in cash and $16 billion available. when you look at shares of general motors it was down more than 4% that is to be expected do we see this stock moving dramatically lower >> this would have to stretch out several weeks before you see a huge pull back in shares of gm >> thank you now for a look at the changing face of the labor market we'll go to chairman of man power group. obviously unions aren't what you talk about jonas i think union membership has been on a decline. i know the impression that people have of unions is at a multi-year high in the current

environment. i wonder whether you view this gm strike as a commentary on whether the labor market is tight and they feel that they have some leverage at this point or whether unions are back in a big way? >> if you look at union membership in the u.s. and other parts in the world, union membership has been coming down significantly over the last decades. this strike is a reflection of workers wanting to have something back from many years of stagnant wage growth. i don't think structure of unions have bounced back here in the u.s. or other parts of the world. >> you think what we are seeing in the labor market is being affected by our issues in trade? >> when i travel around the world, with he do business in 80

countries. we have 400,000 companies we work with every year as a traveled last year, because we started to see head winds especially in europe and european manufacturing about 12 months ago, the answer to that was reasonably uncertain companies weren't exactly sure if they could see a softening. today, the answer is very clear. the trade wars and tariffs are having an impact on business confidence and manufacturing companies all over the world >> you are talking about here on a relative basis, we are much stronger if you had to say china, much weaker in terms of hiring. so there are winners and losers in the trade war >> i would say manufacturing in the u.s. has softened. we have just released our forward looking survey where we ask employers in various sectors

how they are feeling and what their hiring intentions are. in the u.s., both manufacturing is one of the sectors that is the weakest it has been. the same is true for china -- >> but u.s., one of the strongest of hiring, 10 across all 44 china, one of the weaker >> right in the u.s., one of those sectors is manufacturing >> i hear you. i'm talking about overall. >> overall, the u.s. is he avery strong japan is very strong if you look across the surveys, we see a greater volatility. >> i have one question that goes back to the uaw, in the battle between labor and management and cost of health care which seems

to be what that is all about, are people asking for more cash or more benefits in that case, they only pay 3% of their health care compared to average americans that pay 28% how do you see that playing out? >> i think when you have a labor market when unemployment is below 3% in the market to retract and retain the talent. for unoyounger generations, it s about flexibility and a lot of people aren't really expecting job security as they are looking for employment security and how do i manage in between times >> what do you maybe of the difference between job security and employment security?

if a job can't guarantee long-term employment. >> a lot of legislation is focused on protecting the job. increasingly, employees know they are likely to change jobs many times they are looking for training, reskilling, they are looking for benefits for the time they are there but for more -- >> andrew, i think you are eluding to an interesting dynamic. that is medicare for all and single payer would be a step down democrats can count on union members but they'll be hesitant to give up those things and jump on board with bernie. i you know that ast happens. >> that's true - so. let's talk. we're built for hearing what's important to you,

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welcome back to "squawk box. a california man has died in what is believed to be the seventh vaping-related illness canopy growth co-ceo bruce lipton who is here announcing a new venture. before we get to that because that news about that death and vaping i think is what i want to actually start our conversation with though. i want to talk about what's on your shirt most people come in in a shirt and tie. they are respectful. >> i'm probably never getting invited back i'm boring and dress poorly. what are you having me here for. >> i spent the summer and i found a bunch i want to be involved in. these are companies i'm investing in >> arts and crafts. >> i wish to be involved with one multi-state operator and for a bunch of reasons, regulations didn't conclude the one under here so that leaves the door

open i'm trying to figure out which one will i be involved with. that's why i had to cover the name i thought why not turn it into a billboard, i'm in new york. >> you are a billboard. >> you're in times square. >> it's working. >> it's working. >> what's our rate for billboards >> it's probably high. >> let's talk about it. >> let's talk about vaping we are seeing these deaths what is really happening here? >> i think there's two or three things happening on top of each other. you're seeing the products people are vaping not being what people thought they were where do they come from. my worry is when regulators say we're going to stop it, they will get things into the market. so it's a cracking down is probably the wrong word. educating. inhailing stuff into your lungs overall isn't the smartest idea. >> to begin with. >> that's the business you're in. >> where i put my biggest bets was beverages. the track that it takes is a

much lesseesly vantaged track. >> can you get on our bandwagon. i'm not sure any of us actually think vaping is such a great idea at all? >> i think that vaping could be for medical patients if you really said where is the right place, the reason people inhale it through a vape is it has instant onset. suppose you are somebody with parkinson's, you've been rigid, it's hard to get moving. >> sure. >> that person should have a medical device. >> that's heavily regulated. the thing with vaping and with any of these ingesting it through beverages or anything else, all of it needs to be regulated. >> the more you regulate this area and the less you ignore it, bad for criminals, better for public safety. >> you're saying it needs to be -- >> needs more, more, more regulation. >> more regulation >> right for example, what temperature does the problem begin at? what if you have a vape device

that actually heats these things up -- >> you're not going to get that unless you have federal regulation. >> correct you might start where the fda starts to look they left the barn door open on what can these nicotine vapes do and non-nicotine. >> can i ask you a question. your industry has been lobbying for the opposite to happen >> i sure haven't. i think that good companies prefer more rules and the reason is that if they're competent and the rules get built higher, the less capable fall further back. >> what the fda has done is left the door open but they've said the onus is on you as the industry to come up with the studies. we're going to assume it's not safe unless you prove that it is. >> i don't think they're going to rush to get back. what if your evidence doesn't support your business? >> right >> for example, when you think about are any of these companies running a health trial, meaning have you sold vape products? yes. do you have a registry for adverse effects? most don't

if you do have a registry, what was the source of the problem? it could be from a person inhailing and having a cough to an adverse reaction where they have an allergic thing what i've been looking for in the companies i get involved in is science driven, regulation strong and capital markets like that. >> bruce, thank you for coming in this morning. appreciate it. we'll send you the bill for the billboard. always good to talk to him. >> you can come back, just come bearing gifts, you know what i'm saying, bruce, buddy. >> it won't be vapable. >> i'm kidding i'm kidding. >> i'm not so sure about the whole -- >> what about cbd gummies to go to sleep >> what you really want is you want an outcome. >> we've got it. >> you want an outcome that's what the science has to deliver. >> aryeh bourkoff joins us next. he'll talk streaming wars.

saudi arabia, the fed and trade. investors paying attention to three big stories that could sway markets we'll cover them all. also get you caught up on this morning's corporate headlines. plus, one of the most powerful bankers joins us. aryeh joins us and "squawk box" is ready for takeoff with academy award winning producer brian glazer. the man behind movies like "apollo 13" and "a beautiful

mind" joins us to discuss the film business and so much more ♪ this is ground control to major tom ♪ ♪ you've really made the grade >> live from the beating heart of business, new york. this is "squawk box. good morning welcome to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures. 2 1/2 hours before the market would open we would open down dow off 15 points. nasdaq off 20 points and the s&p 500 looking like it would open down about 5 points. let's get you caught up on some of the headlines at this hour federal reserve policy makers are set to begin a two-day meeting today with an interest rate decision and policy today

steve liesman survey showed that 100% of the respondent's expected that rate cut tomorrow. beer brewer an hughes ser bush is making a second look at the ipo in the asian business. the company had abandoned the planned $10 billion ipo citing market conditions. and sony has rejected a call by third point to spin off its image sensor business. they call that a crucial growth driver third point has maintained tha sony shares are under valued and that its portfolio is too complex. in the markets, all of them are paying close attention to the world's heaviest crude producing region a record jump in prices yesterday. crude this morning is pulling back a little. nbc news is reporting that american intelligence indicates that the strikes, indeed, originated from iran but president trump signalleding

he's in no rush to jump to a military response. >> well, we have a lot of options, but i'm not looking at options right now. we want to find definitively who did this we're dealing with saudi arabia, we're dealing with the crown prince and so many other of your neighbors and we're all talking about it together. we'll see what happens >> i don't envy the president in this case. we're trying to get out of afghanistan. getting a lot of pushback. one of the things he confidently points out is in his view he spoke out against the second iraq war. >> it was a campaign promise. >> right but, you know, how many times and people pointed out iran punches someone in the nose how many times before something -- you know, there's some type of a response i don't know so it's a very tough situation saudi arabia's energy minister set to hold a press conference later today on the attacks at the aramco facilities which have cut the company's oil supply by 50%. iran's supreme leader says in

his words there will be no talks with the u.s. at any level that the upcoming u.n. general assembly meeting in new york m&a, mergers and acquisitions our guest host is the man behind more than 100 transactions in the last 100 years aryeh is the founder of lion tree he has been here for the last several years. they were part of charter's purchase of time warner cable. lion tree advised viacom thanks for being here. >> thanks for having me. >> let's talk about what you see out there. people are expecting the fed to cut rates. almost 100% are expecting rate cuts we've heard the economy is slowing down we know there are concerns about trade talks. what do you see when you look at m&a and what does that tell you about the broader outlook? >> first, m&a is busy, it has

been for the past few years. it's been abating given market trends all of the markets are open. but the m&a market is very strong and rates are low so we're seeing a lot of movement a lot of that is driven not by the interest rate environment, it's driven by the necessity of the companies in the media and technology industry to get more scale. once you have the scale, it's not the be all/end ll. scale players are in motion still. so via com, cbs happens, discovery scripts happens, comcast sky, disney fox, then what we're still moving. >> let me just ask because at&t finally putting all the pieces together in what they've been doing and then you have an activist investor who comes along and says, no, no, no, you're not doing it right. then there are questions of scale. is scale what businesses should be seeking at this point >> ultimately business should be seeking value creation scale is a means to get there in certain cases but the execution of that is very much the forefront. so once you have the merger,

executing those deals and ekts cuting the plan to compete in the broader landscape, especially as things slow down, which is true is more challenging. i think that's where the pressure comes in. >> let me ask you. randall stevens is going to be in new york city at the goldman sachs conference today responding in part to what we've heard last week from elliott manages. , paul singer's group going after that firm, and specifically him and this strategy scale may be something everybody is looking at but how does scale is maybe the fundamental question in terms of do you need to be in the distribution game and the content game do they need to be together? you might need to be in the content game with scale, you might need to be in the distribution game with scale but there's been a question of whether it's together. >> you know you work for comcast? >> i'm going to make a comment about that i think the lesson -- the lesson of the comcast/nbc-u transaction has been missed on most people

the reason that transaction was successful, i believe, was because we, comcast, bought nbc-u at a remarkably low price, put in -- >> i wasn't asking for an explanation. i was pointing out that comcast does own distribution and content. you don't need to educate me. >> it made sense. >> all right >> aryeh -- >> i feel like you don't need me. >> this is what's happening to our other guest, steve liesman. >> pointing out we have distribution. >> you tell us what you think. >> every deal is different i think the rationale for the comcast/nbc issue you hit, plus other reasons. we were involved in that transformation is difficult. transformation in the public markets are difficult. it's not just diversification where distribution and content together it's trying to move a business that's slowing, like telecom business, into new businesses. that is hard for an existing team to do

so we're seeing that transformation theme play out. it's difficult at&t and randall talked about this are doing some things to pare down. >> that's been their plan. is this elliott push trying to get them to do it more quickly they've been doing that and executed so far. >> the ideas that elliott lists are largely underway at at&t the question is if those don't happen, does elliott keep pushing for more to hit the bone. >> we can talk about this later but let's talk about what's been happening in the battle for streaming. the reasons they're looking for growth is because the existing businesses are coming under attack you have netflix challenging all of these media players same thing with telecom, all of the issues how does that play out and let's start with the direct streaming business. >> look, we've had this big shift in the content landscape

from what were b2b businesses. now it's becoming a b2c business they're trying to reach the consumer on their own. cbs all access, xfinity, it's happening all the time from the media companies. they're doing that to catch up to what the cable companies have and the streaming platforms who are competing heavily with each other. every why one uses the consumer very liberally the consumer wants this, the consumer wants this. what are they saying you have to look at engagement consumers will come to us and churn. >> that's what i was going to ask. from a straight margin perspective, i understand the revenue growth story so long as, by the way, you don't lose too much of your legacy business if you completely lose the legacy business, what kind of margin actually exists on the streaming side netflix aside because they've succeeded but i think maybe in a way that others may not. >> well, the margin will be affected by the cost of the

content. >> right. >> that is going up because everyone has to play into the content game once we've crossed the ocean, you're going all the way to the other side i'm sure brian glazer will talk about that as well what is the churn rate what is the loyalty of the consumer on the platform the longer they stay on the platform, the longer it is. >> i think we're going to move to a day, i'm pretty convinced that some smart app, i know there's folks working on this right now if it doesn't already exist, are going to get to a point where literally on a monthly basis you're turning netflix, hulu, hbo, show time, all of it on and off based on whether, you know, the handmaden's tale is finished or not. >> that's why platforms like roku is so successful. they can come over the top and be the new interface the new interfaces will be emerging helping people navigate that easily. at the same time it's a lot of pressure on loyalty content.

the key in media is authenticity, right? people follow brands, sports teams, you guys, shows because they have a loyalty to the content. that will win out, right not here today, gone tomorrow. >> some shows are here today gone tomorrow that becomes the issue. >> yes not you guys. >> what, 25 years? >> 25 years. >> but that -- i mean, that becomes the problem, right as you're trying to go after the content and make that part of your platform. >> yeah. >> i mean, content can be flash flashes. >> fleeting. and people have short attention spans these days. >> what are you saying >> people have -- yeah, remember what i said five minutes ago >> no, i got it. >> who do you think will be the winners in this? i know it's tough for you when you have clients all over the place, but when you look at disney and a netflix and a comcast nbc, universal's

offerings, at&t's, apple, which ones will consumers pay for. >> the winners will be the ones with the best strategies and management team. we went to execution in a landscape where you're having giants compete with each other with infinite amounts of cash, the cash is not the issue. how do you accumulate assets, fit them together and serve the customer with a very strong management team. i think we're seeing a transition we're seeing rupert mourdock transition we're seeing sherry red stone and bob backes at viacom so i think you have this transition of owners into effective managers now for the new generation and that will be the ones i think to watch. who's bold who can execute? how you take it to the consumer. >> aryeh is going to be with us for the rest of the hour. >> we have to talk wework with him this morning.

coming up when we return, aryeh bourkoff on the ipo market including wework and what the company is now telling investors. that ipo, as we told you earlier, is delayed. they say it's still coming we will see about that check out the futures at this hour. we are in the red. dow off 62 points. watching "squawk" on cnbc and we are back in a moment as a struggling actor, i need all the breaks that i can get. at liberty butchemel... cut. liberty mu... line? cut. liberty mutual customizes your car insurance so you only pay for what you need. cut. liberty m... am i allowed to riff? what if i come out of the water? liberty biberty... cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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seinfeld heading to netflix. they're acquiring the streaming rights to the sitcom offering all 180 episodes to seinfeld starting in 2021 it's the latest escalation in the streaming wars avnet flicks lost the right to stream "friends" and "the office. they didn't indicate how much they were paying for "seinfeld." it far exceeds the $500 million that nbc universal paid for "the office." on hulu "seinfeld" was not as successful as friends and others. >> this you could explain to me. >> what? >> mansplain this to me. why would hulu not work? >> different audience.

i don't know if it's an interface story. >> do you have a take? >> we don't know if "seinfeld" is going to work on netflix. >> "friends. >> but it was the illennials >> one place -- >> right i don't know why one works and one doesn't work. >> on hulu. >> although i think hulu is more of a broadcast model netflix is the traditional cable model, direct to consumer, pay for subscription hulu is like the free model. >> it's a freemium. >> paying lower fee with ads. >> how many users on hulu? >> i think hulu is around 25 million and netflix has 150 million. netflix is much more global i think. at the end of the day, every company is going to have both. they're having the disney plus and hulu offering. >> the one thing it shows is the deep pockets it's well above the $500 million that nbc universal had paid for it there is a bidding war underway

for every type of content. >> absolutely. >> i'm wondering if generationally "seinfeld" might not be millennial friendly. >> that's what i would think, too. >> whereas "friends" is. >> millennials since they don't go out and have friends, they can have their friends on tv basically because they're -- >> millennials have more friends than you and i do. >> i'm kidding but i do -- >> we're really attracting the millennial -- >> bitcoin segment. >> that's the key thing. they're gamers one in three millennials are gaming. >> they are? >> oh, yeah. that i think is the future of media. >> while they're vaping. that's fantastic. >> right >> gaming and vaping. >> vaping, netflix and -- >> wonder why we have problems wonder why -- >> chilling. netflix isn't chilling. >> it means watching netflix. >> no one chills anymore >> no. >> when we come back --

>> not chilling and vaping >> vape and chill. >> i'm going to get us out of here when we come back, wework's parent company walking away to proceed with plans for a public offering and later academy award winning producer brian grazer is our guest. he's out with a new book he's going to join us to talk about the business of movies and why you should look people in the eye. right now as we head to a break, let's get a look at today's aflac trivia question. what publicly traded company was originally called the rocket chemical company we think you would really shine in the aflac program. aflac! coach saban we have health insurance. did health insurance pay for everything? no, we still have bills. aflac gives you money directly to help with those.

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welcome back to "squawk box. did you get the answer here it is to today's aflac trivia question. what publicly traded company was originally called the rocket chemical company anybody want to take a gander or guess? >> let me guess. wd-40. >> that is the answer. california-based manufacturer of

household multi-use products originally designed wd-40 to prevent rust and corrosion on the atlas missile. >> excellent. >> that was a little extra cocktail party information news you can use check out wd-40's stock. i need to get some, we have a squeaky door. >> it is a miracle. >> you get one and it's got a long straw attached. >> yeah. >> shoot it right in -- >> you can shoot it on the swing set -- it's really kind of cool. >> gets the hinge just right. >> are you working on swing sets >> i do. we have a swingsets. we still use it. >> are you swinging on the swing set? >> i don't that's not advisable at this point i don't think. wework signaling -- not for me, for the swing set really signaling a delay to its much awaited public offering saying now it expects to complete the offering by the end of the year.

leslie pickering with more not necessarily a news flash go from 47 to -- >> something's amiss. >> a lot of people will be waking up saying we saw this coming, but wework is now we wait a source -- >> we wait. >> -- saying the ipo. >> we won't. >> we can't. >> until we go away. i don't know what happens. no to launch a road show to market shares to investors. wework saying in a statement that it expects the deal to be completed by the end of the year, guys the delay comes after wework scrambled to appease investors and slashing the valuation it planned to use in a debut, but the investor demand was still tough to come by the company was having a hard time committing to an ipo plan sources say. softbank is wework's largest investor and is pushing for a

delay. softbank had been considering buying up a large portion of the ipo to limit the company's need to sell shares elsewhere still it's unclear exactly what the delay accomplishes wework was banking on $3 billion in equity from the ipo plus a contingent $6 billion credit facility if you believe much will change in the next few months that will allow wework to boost its valuation beyond the $15 billion range. the risk is that the market conditions could turn and investors would bulk even more into a money-losing company in the business model it hasn't yet been tested before in a recession, guys. >> can i very quickly, leslie, want to talk about this. can we bring up an alert on something we're seeing now 3g which is i believe the second largest shareholder and shares of kraft heinz has sold 24 million shares in the open

market stock is down and reacting i think that's significant because 3g obviously partners with berkshire hathaway in this entire situation. >> yeah. >> warren buffet has told us again and again, he's in this. they made a mistake, they bought too high he's in this like he is in almost all stocks for a very long time. i think part of that was precipitated on the idea that 3g is in this i don't know why they're selling. stock has been down 15% in the last few months. the shares are down another 2.7% i don't know what this means for berkshire hathaway, if they would do anything with it. just my supposition, just my understanding. i don't know if i'm right on this either that buffet was not going to sell because he was partners with 3g if they sell i wonder if that opens the door for berkshire hathaway to sell >> that's that they sold at the same time. don't you think they would have done it -- i would assume that 3g would call -- >> only 25 million shares which i'd like to see what their

entire shares outstanding are, but just the idea that they would sell would potentially mean, okay, we're locked in this together maybe that deal is off again, this is just speculation. obviously the market is speculating on the same thing. >> maybe 3g is more value sensitive than hathaway. >> could be. >> the valuation matters all of a sudden doesn't always make a difference when we're in momentum driven economies, right, when rates are low. when you start to see things more discerning and slow down you start to peel back the onion. this valuation is what i'm comfortable with you pare back and sell down. it may be a buying opportunity if they're committed over time there is an entry point dynamic versus staying in things forever at a high valuation. >> which gets us back to we work. >> i think that's what we're dealing with is how do you value unicorns how do you value the companies that have benefitted the most from the private markets we've been on the show for a long time talking about how the

private market is so robust, we don't need a public market now we're seeing the other side of that trade. when you do want the public market it's going to get valuation sensitive. >> doesn't this indicate that the private market just doesn't know, meaning that the accuracy with which private investors either have information or actually are able to ascribe the proper value to these things, that they're off if you look at wework, softbank kept propping up the value in the media world you could argue the buzz feeds, the vices, the voxs were all propped up by new investments layered on top of each other so every time we had this new headline. >> it means there's a disconnect between the public market valuations and private market valuations. >> it means they're made up. >> have you ever looked at the high the 52-week high and low on a

stock? many times it's either half -- the public market values the same stock at 50 or 25 in a 52-week period. >> who's right >> it's not apples to apples >> it's always hard to value anything there are so many variables that go into it. >> at the end of the day valuation is a function of wh s who's -- metrics and -- >> the greater fool. >> supply and demand has a lot to do with it. one thing i would point out is the m&a market may be a better home for the private companies. >> that's interesting. >> that's a private valuation and strategic. public might remake of it. >> what do you make of softbank and what he has done in terms of pushing up these private prices? i say that in the case of wework, uber, you could go down the list. >> he is a bold investor and hopefully a long-term investor he can't play cycles i'll give you a statistic.

right now there are $600 billion of aggregate value of unicorns, which is 187 unicorns. that compares to 25 billion and only 12 at the end of the last recession, almost 25 times more. we have really exploded on the private market high valuation game here last cycle. >> but is this whole process, meaning as we're watching all of this play out, does this mean as you look forward over the next decade that we're going to see more private markets or are people going to say, you know what, this whole vintage, this didn't work the way we thought we're going to see people try to go public earlier, give public investors opportunity for growth >> for sure. i think you'll see companies go public earlier and have more up side through a longer period of time for the public market to enjoy. i also think you'll see valuations reset and the m&a will reset with lower market rates and take these off the ipo docket. >> where do you think we are in the cycle to the extent that you

believe m&a is -- i don't know if you think it's a leading indicator or a backwards looking indicator. you can look at an s&p chart, look at volume and it maps relatively closely given the confidence in the board room that seems to emanate oftentimes on the confidence in the markets. >> well, i think the confidence in the board room is not solely related to economic cycle. it's related to what the needs are for its companies to secure its asset base -- >> when everything is going to hell in a hand basket. the problem with m&a is people do deals at the exact wrong time that's when you're supposed to be buying. >> that's the valuation discussion if things are paralyzed, that's the best time to buy i think from an economic cycle, we are slowing i do not think we are in a recessionary environment i think there's a lot more to come. >> you don't think prices are coming down any time soon. >> prices are coming down and resetting. that is healthy. >> only individual names, not

the entire market. >> correct. >> separately on 3g, that's $725 billion. so 3/4 of a billion dollars market cap on kraft heinz is about $36 billion. >> they own 22%. that's not a significant chunk. >> it's not a huge chunk. >> less than a billion dollars and 22% of 30 billion. >> we will have to find out what wb thinks about all of this. aryeh bourkoff is here. >> thanks, leslie. the man behind some of the most memorable films is going to be joining us in a minute including "apollo 13." "the grinch who stole christmas" and "a beautiful mind. brian grazer will be here to discuss his films and his new book we are in the red with the dow off about 48 points. a little better than ten minutes ago. we're back in just a moment.

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still to come on "squawk box" this morning, the head of nato expressing concerns that tensions could escalate after the attack on saudi's largest oil facilities the latest details from the oil rich region and what it means for the markets is coming up. later, senator rob portman will join us to talk about trade, china, the attack in

saudi arabia he serves on the energy and foreign relations committee. plus blackstone ceo steve schwartzman will join us on set. an will cover market trends, the fed d his new book "squawk box" will be right back.

let's welcome brian grazer and he wrote "face to face". >> glad to see you. >> he heard the $4 billion number he was like, what? >> closer to 40. >> 4.2. >> 40? >> in the stats it says 13.5 billion. that was a 1980s number. >> where did we get 4.2. >> he's thinking back end. >> this is a business show i know the numbers. >> and there's proof of it right there. >> well, some. >> let's talk about your new book. >> okay. >> we read through it and have been debating whether we could follow some of the rules that you lay out in it. it's all about face-to-face communication, relationships you build with people, not transaction naryurytransaction

naryury. tell us why this came about and how. >> well, what it means is first of all, for 35 years every two weeks i go out and i meet somebody new i reach out into the world and pull somebody into my life or we meet and these people are experts in anything other than show business. could be financial, in fact. but it's science, medicine, politics, religion, all art forms, athletics and the point of that is to import new ideas or fresh perspectives into hollywood. in other words, you probably know this pretty well, otherwise you're breathing the same hollywood air in the same way you might be breathing the same sort of financial air. so you want to disrupt that and inform yourself so you can expand your emotional, intellectual possibilities then i realized none of these conversations would have been of any value had i not actually looked at somebody face to face because when you look at

somebody, you immediately validate them as a human being you're saying, i see you you see me we're both -- there's a common thread we're in the same -- part of the same species then if you do this and you -- you can actually reach somebody's heart that's what movies do. great movies reach your heart, and that's why great movies are really effective in creating memorable emotional moments and that's optimally what you want to do. it differentiates you or the movie differentiates itself from other movies you want to be different. >> what you say i think applies not just to the movie business though something you just said struck me the idea that we could be talking to too many financial people and be in our own bubble. >> yeah. >> that's how problems like the financial crisis come about, if you're not out there listening and talks to other people. it's true in every business. >> i have just found that doing -- having these -- being very open -- a couple things are

just -- are a must, are constant you have to be open minded. >> uh-oh. >> uh-oh we were just talking about somebody that isn't open minded. >> exactly. >> you'd have to be open minded and you have to put your smart tools like your phone and your ipad, those are very, very good resources. they're the greatest invention of all time, your smartphone, but you're not going to really connect with somebody if you're doing your smartphone and talking at the same time because they're going to feel disrespected they're not going to -- it's not going to make them feel good and what you want -- if you're trying to raise money or you're trying to have an impact on somebody, your story starts the minute you see them. that's where the story starts. you know who understood this really well? walt disney. if you go to walt disney, his theme parks are different than

any other theme park the story starts in the theme park the madderhorn, the story continues in the line. other theme parks don't do that. so i think that stories are everything they're the subjective experience that pull you into something and make you care. >> can i ask you a generational question though. >> generational. >> no, no, you talked about the smartphone i feel like there's an entire generation that are communicating in a completely different way. i'm not part of that i agree with you i still call people on the telephone. nobody calls. >> my wife thinks it's crazy that i do that. >> nobody picks up the telephone anymore. >> yeah. >> so the question is sort of, a, how this applies to this next generation or is it just that they need to learn that this is the only way it really is going to work in the end >> i think they have to learn this is the only way it's going to work in the end i really do. because, i mean, there's the goodness part of it.

it's impossible to really have -- understand humanity. it's really hard to understand what's going on in the streets or in a population of people and it's almost impossible to have empathy no matter how smart you are and how much you search. empathy comes from seeing and feeling people it just comes from that. empathy is central to the survival of our species. >> yeah, i think he's on to something because what you're getting at is can you integrate human interaction with technology. >> there's a whole generation of people who don't interact at all. they can be in the same offices and nobody talks to each other anymore. >> anything major needs at the end of the day interactions. even when we do mergers, massive, complex fundamental infrastructure behind the companies, every company is led by one person at the tip of the spear that needs to interact with the other person to create the magic, create the deal >> i love that you say that because it is really true. no giant deals ever get closed

without a face to face, right? >> right >> because you have to have compatibility. you have to be like minded you have to find similar values. >> right. >> that comes that way. >> correct that's how you read the variable everyone at the end of the deal says let's get in the room. >> you're not raising a rounds and b rounds without looking at people i'm not selling movies or evangelizing the amorphous idea and convincing denzel washington pass up on five jobs to work on an idea that's not even written, but you can -- that can be done by being face to face and evangelizing a mission or a vision. >> are you going to be doing a project with denzel? >> i've done two of them one was "american gangster." he stayed with that for three years while they started it, shut it down and stopped it and then i had to re-start it with a new director and that included a new actor that would join him, which would be russell crow. russell crow, even though he had just won an oscar, believed in

me and what we would do in collaboration to build this role that didn't exist in "american gangster" and you can do that when you're with people. that's how youcreate teams. >> what about some of your ideas, just bringing in normal people who aren't related to the movie business what are some of your favorite movies that have developed out of -- >> that come that way? >> "backdraft" >> no, i never talk about that "backdraft" came about, i was surfing in malibu, a place called old joe's some guy says, hey, aren't you the producer i -- whatever. i said, yeah i wanted to blow him off he was -- he had this idea about firemen and he was once a s.w.a.t. team cop. he was the sheriff in malibu, which i didn't know, and he was a martial arts expert which i -- by the way, i was interested in

the martial arts i said, i'll let you work in one of my tv series as a consultant if you teach me akito karate then i bought the "backdraft" thing for a substantial amount of money you don't have to write anything, i'll do it, and that became the seed that became the fireman movie "backdraft." that's crazy i have entire foods chains that are built on random conversations or meetings. i was sitting in the back seat of a taxi cab here in your city, new york, over 20 years ago and one of your shock job guys is interviewing on the radio old dirty bastard, odb. >> i remember him. >> you remember him? >> yeah. >> so he was the insane voice of the -- it was 25 years ago and he's so wild and crazy and he doesn't know how many wives he's got or how many kids and i thought, who is a man called odb?

who's odb? so i decide i'm going to meet odb. i meet him two days later. it's more insane he won't let me go in the studio odb, because i met him, turned into knowing narizza which turned into "american gangster" which turned into "made in america" a concert i produced with jay z which became "empire" which became the "wootang clan" that is out on hulu all because you met one person. >> we have to press pause. one very quick question. you got a meeting in two days. you have a great calling card. kids often call me and say how can i get to -- what do you tell people to get to the other side? meaning like to get them on the phone? >> we were once absolutely nobodies. >> right when you were the nobody. >> i would research, in this case i couldn't do it, i used my smartphone i'd research everything to do with my target person. i'd research so that i have a

compelling first sentence to say to their assistant and sometimes assistants blow you off and you find a way to meet them in a parking lot or you find a way -- you don't stalk people, you don't do weird shit, but you have to prove you're informed. if it's just like i'm asking questions, i blow all those people off and they blow me off. >> it's that first line you mentioned. >> it's the first line. >> you have one chance. >> yes you have one chance. did you know in the amish community there's another community that survives similarly in utah? i just made that up just now did you know thing always gets people's interest. >> did you know? >> did you know this is cable? >> yeah. >> did you know we need to take a break? >> we have to take a break. >> buddy fox got some cigars on gordon gecko's birthday. brian -- it wasn't real life though, was it movies become real. >> are we on the air >> still on. >> come back and talk a little -- >> we're going to continue our

conversations. >> yeah, streaming, with brian grazer and aryeh and at the top of the hour steve schwarzman of black stone group. get left beh. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand p-tech students around the world. it's a game changer.

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even though it might not be a theatrical viewed experience it could be under a streaming platform but as long as people see it on the street, as long as it's promoted on your show and other shows so it's differentiated. >> but is the issue there's too much content right now >> people say constantly netflix, you can't find this i see a billboard out here for

netflix, i see great stuff, i go on the service, i can't even find the stuff that's being advertised. >> you're sort of drowning in it >> yes >> that's a different question yeah, there's too much. >> what's the best way for content and technology to interact >> but if you're able to convince or your content is able to convince the netflix or disney or comcast that it's important, then they pay for it and you're going to find it. >> how does that go into your decision making when you're trying to decide >> it's central to my decision making. >> i tried to make shows that already are pre-branded. so i don't have the big sequels. i don't own marvell but i'm making aretha franklin everybody knows who aretha franklin is hopefully. making aretha franklin places me already on that differentiated tight rope i just now have to make it good. >> right. >> hopefully i'll do that.

and, you know, in the case i'm doing, we are making two movies at netflix one is ron howard's "hillbilly elogy. i think it's good enough it's emotional epic. soon have to see i believe it is. i'm doing lin manuel miranda's first theatrical directorial debut. i think he'll do something pretty special as well you have to see how they'll stand up when they are done. do they produce epic emotional experiences? >> "parenthood" i'm making a movie about parents. you didn't need a big theatrical release except a great, great thing that connects with -- >> it's so relatable. >> it's amazing. >> technology gives you reach you wouldn't otherwise have, right? >> yes, exactly. >> more people can see the content? >> yes. >> technology does give you reach. so if you've made something and it's great, it goes into every country in the world, there's a

lot of power in that there's no doubt, a tremendous amount of power. >> doesn't replace the face-to-face interaction >> i know it doesn't. >> brian grazer everybody. thank you for coming in. >> thank you. >> book is "face to face". >> aryeh, thank you. >> comp the book. >> thank you. >> thanks for having me. >> thank you for having me. when we come back, another biggest. wait wait wait, blackstone's steve schwarzman on the market trade and the fed. later, senator rob portman will serve on a number of committees that will be taking a look at the attack on saudi "sawbo wl ia quk x"ilbe right back. xpectatio, there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products.

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buckle up. investors on high alert as the fed prepares to kick off a highly anticipated policy meeting. our newsmaker of the hour, blackstone ceo steve schwarzman will join us live. amazon wants you the latest hiring spree tells us about its plans for the future as the final hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square the futures have improved. nasdaq has turned positive the dow is down 40 or 50 the nasdaq is down less than half a point treasury yields are sort of in that new range that we're seeing actually 30 years up well over 2 at 2.28. >> let's get you caught up on some of the top stories. but for now wework is postponing the offering as it tries to assess investor demand

47 billion was the number that was originally floated at the high water mark. beer bur is making a second attempt. fed ex says it's raising rates it said it would not apply holiday season residential surcharges the january increases are going to be an average of 4.9% for deliveries that use jets and 5.9% for those using ground transportation fed ex shares up by 17 cents. >> want to get to washington because we have new details on this weekend's attack on critical oil infrastructure in saudi arabia eamon javers has that. >> president trump yesterday came all but up to the edge of naming iran as the sponsor of those attacks that we saw over

the weekend in saudi arabia. the president saying it looks like iran is the culprit here but very careful not to say that he's making a definitive finding here the president seeming to leave himself a little bit of diplomatic and military wiggle room here's the president in the oval office yesterday. >> well, it's looking that way we'll have some -- we're having some very strong studies done. it's certainly looking that way at this moment and we'll let you know as soon as we find out definitively, we'll let you know but it does look that way. >> the president saying as soon as we find out definitively, that is a look at u.s. intelligence resources and understanding what the united states knows about this attack and understanding what it doesn't know about the attack. that's where the president is. we had this unusual moment yesterday where we had the secretary of energy and the secretary of state both out there making a hard and fast attribution to iran. the president clearly not willing to go quite that far yesterday. meanwhile, some news for you

guys to flag on the vice president. vice president mike pence and ivanka trump are going to be hosting a group of ceos and others at camp david this evening. they're going to have a dinner and they're going to give the ceos a tour of the facility. this is the american work force policy advisory board. they're going to have their third meeting tomorrow in advance of that. they're all going to camp david. we'll see what the dialogue is tomorrow >> thanks, emon. >> speaking of vice president pence, we should mention he'll be sitting down with joe on the stage at this year's delivering alpha conference >> another guest who is going to be on the stage as well this time with becky quick is steve

schwarzman he is with us this morning he is out with a new book this morning, first day, first interview, "what it takes, lessons in the pursuit of excellence." details steve's career from growing up in philadelphia where he worked in the family business to building blackstone into the world's largest private equity firm really gets also into some of the philanthropy. >> finally being able to appear on "squawk box." >> this book is a quasi memoir, quasi life lessons how would you describe it? >> i think that's fair you have to get what you know and the reason i wrote this is to pass on the knowledge that has been hard won over the years. >> i'm going to repeat the question we did an event together last night and to me what was so remarkable actually about this book was what drives you and

what motivates you we're going to talk about china and all sorts of other things, news, but i want to get at this. >> sure. >> which is there seems to be these moments in this book where you are this remarkable, dare i say insecure at moments, but you seem to have confidence. even at times over confidence depending on what is going on. i'm trying to understand where you think that came from and how you sort of explain the two. the insecurity and the confidence. >> i'm not particularly insecure when i'm in a situation i don't understand or things are happening that i don't know. or i'm in a place where i don't know that's normal. where i'm confident is where i've figured out what a solution is then i'm willing to bring that to anyone at any level in

society. i've always been like that i'm just trying to be helpful. i'm not trying to do anything else if you think you're solving somebody else's problem,. >> alfred business school. >> i think that's the right thing. >> it's less popular

>> they lay them out said here in two or three solutions. he didn't want it. >> is that it? >> you could not -- it was only men at yale at the time. >> i was the last all male class. >> right you were responsible for being the last all male class almost it seems like because there was a rule women were not able to sleep over in dorms and you decided you were going to change that. >> yeah. apparently that had gone on for 278 years and i was dating a local girl so i felt we needed a change so if you just went to an administration in college and

said you ought to get rid of this, they would have given you reasons why that couldn't happen i figured they figured them out in 278 years, it was going to disturb other students, going to be parties, going to be music and so what i did is i just, you know, took all the objections and i put them in like a survey and i got 11 people go to 11 different colleges where the dining halls were and everybody who went in to eat took one of these surveys, came out and we found out that 99.6% of the students didn't have any concerns so i got a friend of mine, who was deputy editor of the newspaper, he put it on the front page four days later, you know, those restrictions all went away it did make me somewhat popular at an all male school. >> let me ask you another question you have been defending for a very long time the reputation of the private equity industry. there's a scene in the book where you happen to go visit

with angela merkel this is before she was running the entire country. >> she was running it. >> she was chancellor. >> and she did what? >> well, it was -- it was funny. there was a whole thing about private equity people being locusts and, you know, probably 10 years, 15 years ago and she had just taken the job she had asked me for a meeting and she said, i understand you are locusts so i'm looking at her doing locust and i said, i am goodloe kus this is what started the conversation. >> yeah, she's a physicist she didn't know anything about finance but she got stuck with managing a financial crisis for

europe so you could explain things we hire more people, make more profit and policemen. >> you could give this lesson at the times. >> what was interesting, she says to me, well, mr. schwartzman, if it's so good, why aren't all companies private equity companies i said, that's a very good question i said, a lot of them are unsuited like mining companies and other companies with huge capital needs. >> the staff person in the room, was it mario draghi? >> yans. >> i thought you meant the head of the central bank now. >> in germany. >> we are going to press the pause button we're going to talk about

private valuations and we were talking about wework and we're going to talk about china, iran, what's going on geo politically. steve's going to be sticking around for some more. >> where is the pause button i didn't know we've had one. i've heard it twice. >> going to press the pause button >> over near you >> coming up, much more with our special guest blackstone chairman and ceo steve schwarzman and ohio senator rob portman is going to join us to talk about the economic fallout from last weekend's attack on saudi arabia stay tuned, you're watching "squawk box" on cnbc

part of that is because we're positioned in the alternative asset industry we buy companies we buy real estate we lend to people who are doing that we invest in hedge funds that businessis a structurally better business. we can have a growth plan to make that business if it's a company accelerate its growth and the faster it grows the higher we put leverage on it and if

you're growing much faster than the stock market averages and you put leverage on you'll make probably double the indexes over time >> wework is postponing it how do you reconcile. >> some are immature companies, some have profits and no prospect for profits i've seen this happen a few times in my career when people believe things, whether they were counting eyeballs around the start of the century. >> 2001. >> and you get these periods of excess where people get so excited about a concept that they price it on metrics that typically disconnect from reality.

you get like a bubble. >> how's your average company doing? >> the company is doing pretty well not as goods as they were doing like a year, year and a half ago. manufacturing on the whole is softer the consumer businesses are holding up really well consum consumer's like 70% of the economy. some say 72. >> the forecast of recession going higher by so many different places does that make sense >> i think part of that is technical because of inversions of certain securities which have high correlation it's sort of now in the game of confidence if the consumer were at full employment, close to it, if the consumer remains confident, then, you know, with 70% of the economy -- >> oil, is that on your radar screen oil for the consumer, for the global economy >> well, what will create a problem, some geopolitical issue, not a normal economic

cycle. >> we had one. >> you just have an introduction to one >> yes. >> it depends where that goes. you have all these hot spots and we have our own odd internal political stuff. >> right. >> it can take a country one way or another. >> and china. >> so you've got china so for people like ourselves who, you know, we have a company on the one hand and then we've got sort of the risks and call it the whacky world. >> when you sit around on a monday morning in the famous blackstone meetings are you talking more about harvesting the investments you have or about making new ones? >> i'd say we do both. we are definitely harvesting but, you know, it's fascinating that there are some really interesting things to buy. the prices are higher. so interestingly you have to -- if you're going to pay a higher price, you better get really accelerated growth because then it works out

you can't be paying those prices for more traditional companies because it's really hard to make those numbers work. >> in terms of what's happening with the trade talks, we've asked you from time to time because you are somebody who speaks to the white house and speaks to leaders in china you have a good idea what's happening on both sides of this equation where would you say we are now in terms of maybe getting a deal >> well, it's -- it's the perfeperils of pauline china has in the last four years had more growth than i think any country in history it's an astonishing miracle what they did but they did it behind tariff foils, markets that are not accessible, they did it with other approaches to intellectual property than are shared in the developed world and so their

desire to give all of that up and the very high growth rate is obviously low. on the other hand, the west has really suffered. developed world has suffered and we've got 40% of our people, you know, who are really hurting in this country, whether it's can't write a $400 check, don't pay income taxes not because there's something they don't want to do, they're hurt so that leads the developed world to say to china, we've got to like rebalance this this is working for you. it's not working for us. so when you make that kind of approach, they realize that they need to do changes they've got their own internal political, you know, things going on with their hard liners who just like to continue. the reformers who recognize it's good for china so we've had these experiments of getting close somebody backing away.

now as the countries look like they're decoupling, together they're between 35 and 40% of the world economy. huge, these two countries. these aren't two regular countries. they affect everybody. if you're an emerging markets company and china slows, you can't sell to them if we start slowing, which we are, china is slowing and europe is slowing and europe's going to have a tough time stimulating itself it's affecting the whole world so at this point this round i think china recognizes that everybody going their own way, u.s. and china decoupling is not good for them because it's just going to slow growth rates and it's going to slow the whole world. so it's time to get together and it's interesting they're sending what i think i saw in your show it was called the low level delegation it's not so low.

it's vice ministers and the reason they're going to come over typically is they're going to tell you what the terms of trade are. this is the pre-meeting and if they do it right, our negotiators will know what's really on the table, which makes it much easier when lou heb, the vice premiere and his senior leader come over, so this is set up better where people fly across oceans, have a two-hour meeting and say, let's schedule the next meeting we'll see what happens i would doubt there's a miracle cure in one meeting. it doesn't work like that. >> you think we can deal with china and get some type of reciprocal trust with that you've dealt there a lot i've watched the piece on "60 minutes" and i was disgusted with the behavior of the chinese and i'm wondering.

i don't know if i could deal with them. >> what's interesting, i was there. i was there with china about three weeks ago. they went over a whole thing on fentanyl and what they are doing. i don't know when that piece was actually recorded. it was horrific. >> horrific. >> the piece was so scary and so depressing that basically china was sending the stuff in mail order. >> no problem doing it either. and knowing full well that we've asked them to stop. >> right. >> but what they indicated to me, let's assume this is the truth for the moment, there's a huge reorganization going on in china regarding fentanyl to try and shut it down and if what they said is true, you will see this really going down quickly. >> we'll have rob portman on later. he's had a lot to do with it. >> steve, thank you so much for being here the book again is called "what it takes, lessons in the pursuit of excellence. we're going to make sure that we

want to remind everybody about cnbc's delivering alpha summit it returns this thursday some of the world's most influential money managers and figures will be there, cluing steve. steve, thank you again for being with us. it's great to see you. >> thanks, becky. a lot more coming up on "squawk. we're going to talk about amazon, a peek at where the retail giant is heading next through the tens of thousands of job openings it is hoping to fill and then later, an in depth look at the markets with a very special guest. executive chairman david booth is going to join us. you don't want to miss that interview and what he has to say. ay tedstun, you're watching "squawk box" right here on cnbc.

something on the line. >> brick andmortar stores are going out of business like amazon is the future now the people we have talked to here, there's many of them, are looking for jobs in i.t., marketing, managerial positions, operations. we even spoke to a guy who's here not looking for a job but looking to pitch jeff bezos on his own security company, which

says a lot about what amazon has to come. it is now america's second largest employer and it's moving into businesses beyond ecommerce. we took a look at open positions on amazon's career websites. we saw a majority of open positions are still at amazon's open businesses. take a look. this is the booth right here you see there is lots of interest also a lot of open positions at retail, fulfillment and operations there are less open positions, according to the careers website, in amazon's newer, more innovative businesses like original content and advertising. guys, i want to mention that right across the street from here is a reminder that not all is rosie amazon is not just hiring. in some places it is scaling back there's a whole foods where just last week amazon said it would be cutting medical benefits for workers starting next year we'll come over here on our lunch break, guys.

>> coming back, ohio senator rob portman. stay tuned, you are watching "squawk box" on cnbc what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley.

they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.

welcome back to "squawk

box," everyone this is cnbc and we are live from the nasdaq market site in times square let's get you caught up on some of the big stories of the day. kraft heinz, the shares are lower. they sold 25.1 million shares. the company still holds 245 million shares it's notable because it is a big partnership that 3g and berkshire hathaway were in as of now the market is selling off. >> the executive suite shuffling continues at seaworld. the chief executive officer gustavo antorcha is leaving seven months after taking the job. in a statement he mentioned a difference of approach the cfo mark swanson will serve

as the interim ceo. financial aid recipients will be able to graduate debt free it will increase the scholarship offerings. that matches other schools in new york including langone. >> new cnbc data this morning on president trump's handling of the economy. the one and only steve liesman's got that data to share with us steve. >> thanks very much. respondent's to the cnbc fed survey have ratcheted up their concern and the effects of the trade war. they've lowered their outlook of growth and slashed their approval of president trump's handling of the economy. spiking the 32%, the highest level of the trump presidency and the highest since 2011 it was below 20 for all of 2018. now recession is not the base case for the 43 respondents. slower growth is

gdp slowing to 2.1% this year from 2 1/2 this is q 4, q 4 and slipping lower to 1.8% in 2020. the hit to growth is a hit to president trump's economic rating president trump's handling of the economy dropping to 20 points to 41%. his net approval which is approval minus disapproval is at 2% the lowest of his presidency we talked about this in the 6 a.m. hour. 62% say that trade changes are playing a significant role in the global slowdown. that is up from 31% in april respondents still say there's a 51% chance the president's re-elected to a second term but that is down from 58% in july. >> steve, thank you for that

appreciate it. we are going to look forward to more survey results. you have them all day. >> throughout the day including some stuff on what people think about the president's comments on the federal reserve >> you're not going to give us more than a hint that that's the question what about the answer? >> they don't like it in a way that they were not bothered by it before. it seems like the president -- >> what do you mean about before >> we have asked continuously this question about is it appropriate, is it not appropriate? they feel like the president's crossed a line here. >> was it the boneheads zment. >> it might have been the enemy comment. >> xi or -- >> who's a bigger enemy. >> i was thinking, are you still the mud rakers, your band? >> i have two bands. one is the stellar and the moon cussers. >> jay powell and the boneheads. >> jay plays guitar. >> does he really? >> pretty good. >> there was a jay jay and the -- i can't remember. there was a band

just jay and the -- >> jay and the thunder birds, blue birds, something like that. yeah is that your question about my federal reserve survey. >> jay and the americans. >> you don't have anything more specific you'd like to ask me about the fed or the growth -- >> that was really -- i didn't need any comment back. >> you didn't need a comment >> no, i was going to rob portman. i wanted to get to the senator. >> let's not leave the senator waiting. >> let's talk more about where the things stand in the economy, trade war, all of this following last week's attack on saudi arabia former u.s. trade representative, former omb director, star of "60 minutes" that i watched on sunday night and we'll talk a little bit -- we were just referencing that again, senator that piece was staggering. >> powerful, yeah. >> horrible. i just wonder if "60 minutes" knew that it played into president trump's hard line against china and whether they inadvertently let that get on the air waves that it was bolstering the case, i think,

that china isn't necessarily negotiating in good faith with us at all times. is that fair to say after that piece, rob >> for those who didn't see it, joe, this is about the fact that china for years has been sending us this poison through the mail system, fentanyl, and it's coming directly from china in the mail system. they've done very little to stop it they have the power to do that so even now, joe, we still don't have all the data we need on the mail that's coming into our country to be able to identify the packages and try to keep some of this out. >> senator, it affected the way i view everything else in the negotiations though. >> yeah. i think so i think it -- i think it is one of the irritants in the relationship and the president has raised it at every meeting i've been over there and i've raised it with senior officials in their administration. in the chinese government. >> it's insidious. i'm wondering whether it's the money or whether there's

something even larger to the whole notion of, you know, sort of infecting a society with the poison as well, rob. i mean, that's bad news. >> yeah. it's -- it's -- fentanyl is the killer fentanyl has been responsible for more overdose deaths than any other drugs and even today while we have some progress on heroin and prescription drugs, fentanyl continues to be mixed with others. >> more than guns, more than traffic deaths. >> yeah. yeah 72,000 people died of overdoses in 2017 at the high water mark again, a little better now fentanyl continues to be the top problem and they could do something about it and they should >> what should we do with iran right now if you were the president? >> well, we need all the information first. we need to get the europeans on board. i think that's possible from what i know because it appears that the initial claims that this came from yemen just aren't true the houthis claimed responsibility but it came from the direction of iraq or iran.

the question is who in iraq might have sent these drones and these missiles we need better information when we have the information i think we need to get the europeans with us and others in the region and respond. >> if you were -- i mean, you know -- you're a trade representative so you know exactly what's going on. can you just play out what's going to happen in the next two, three, four weeks. you have the lower level delegation coming now from china, then after the october 1st date or whatever we're waiting for to do it in earnest, do you see this proceeding and do you think they're coming back to where they were in april or is that still going to be -- are they going to be half measures or maybe separate security from trade or something like that what will we be able to do >> joe, the smoke signals are a little more positive including coming from china saying they're willing to talk. you look at what's happened to the chinese economy. it has weakened. their devaluation of their

currency helps with regard to trade but the fundamentals are not as strong. i think they see a need to do something. one thing that's been happening, there's been some discussion of this, that some companies are choosing not to manufacture or locate in china but, rather, choose other places like vietnam, malaysia, indonesia, other spots. i think that's part of what the chinese government is concerned about. lack of investment in addition to the trade issues. so i think this one might work and, look, we need to make progress on three big areas. one is the imbalance overall and they need to open up more of our products but the big ones really are tech transfer, intellectual property which is how this all got started with the 301 investigation and then they need to stop subsidizing so much. they have the enterprises that are obviously heavily subsidized they subsidize other industries and sectors of the economy that's not fair. that's not consistent with our international rules.

i think it's a great step forward. >> are you going to be able to get usmca done before the end of the year, senator? >> gosh, i hope so give me a break. >> i know. >> this thing is -- it's a no brainer to look at this and say it's better than the status quo, which is nafta for democrats it's better than the status quo by far and i think for republicans it is too for those of us more on the pro trade side because this agreement does have enforceable labor standards, it does have enforceable standards, it has a minimum wage of40 to 45% of th auto industry. it brings jobs back here the itc has said that. on intellectual property it's an improvement. on digital economy there's nothing in nafta that's absolutely needed this is better in every respect than the status quo. >> we've got to run, senator are the 49ers really that much bet wither this year, senator? i mean,, is that really -- did you see that did you watch any of that?

>> i think the bengals offensive line was our biggest problem that's a serious one >> i want the three hours back watching the bearcats play ohio state. i'd like that time back. >> well, ryan day is doing an awesome job, 3-0 i think ohio state is real this year. >> they are tough. i watched that against indiana so exbasketball. that's it. >> as of last night the reds are out of contention. >> duh they're like 15 games below .500. >> just 11 down. >> 11 down hope springs eternal there's nowhere to go but up. >> exactly. >> in washington with you guys. >> in washington and with cincinnati sports. >> thanks. >> take care, joe. thanks, guys. still to come this morning, some top stocks making moves ahead of the opening bell and our special interview with legendary investor david booth who will weigh in on the markets, interest rates and recession risks when "squawk box" comes back. don't go away. servicenow put our workflows in the cloud.

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welcome back, everybody. it's under an hour to go dom chu has a look at the biggest morning movers what do you have for the day >> we have a mix of analyst calls and news driving the early action we're going to start with shares of at least home depot we're talking about lower by about maybe 3, 1 1/2% at this stage. roughly 25,000 shares pre-market getting downgraded to a neutral from a prior buy they've removed the price target the elevated valuations related to the broader market. so those shares are off 1 1/2% there's shares of zynga higher by over 2% premarket just around 80,000 shares

premarket. the maker of online games is being called a best idea in the video game industry by analysts over at stevens. the stock remains over weight by $8.25 target price they say zynga is a beneficiary within mobile gaming and that the shares deserve a premium valuation. we'll end on shares of shopify down 5%. roughly 230,000 shares pre-market the online shopping platform said it will raise money through a secondary offering to the tune of 1.9 million shares. shopify plans to use the money to shore up the balance sheet and give it flexibility. the shares up 5%, andrew, premarket. i'll send things back over to you. >> thank you for that. here with us to share some perspective about the markets and the economy is legendary investor, david booth. it over seas half a trillion dollars worth of assets and this september marks your -- is it 50 years?

>> yes. >> 50 years. >> since i took gene's class. >> where this all began. >> that's where it all began >> even though everyone says you can't time the market, i want to ask you at least where you think we are in the cycle. you can't time the market if you can't get it directionally right. >> i agree with that the evidence is there is no compelling evidence that anybody can systematically time it right. that's the problem it doesn't mean you shouldn't pay attention to what's going on in the market but you shouldn't be trying to time each individual move. >> where do you think we really are? >> well, where i think we are is that we've had 11 years of a very good market these -- but -- and frequently people say, well, you're close to a high. does that mean something and the evidence is it really doesn't. i mean, the -- for example, markets have a tendency to go

one direction for a long time. you just don't know how long when we started the firm in 1981 the s&p hadn't kept pace with treasury bills for 16 years. people go, how long do you have to wait? we don't know. >> you know, we've been watching yield curves too and trying to read whether that's a signal for things you say not for -- >> well, that is interesting and it ties in actually with the 50 years of friendship with fama starting 50 years ago leading academics starting to tweak conventional wisdom in a way that turned out to be very beneficial this movement towards lower fees, better risk controls just this week or just in the last month fama and his colleague ken french hosted the dimensional blog a study of what is the inverted yield curve say about future stock returns a lot of people -- i mean, i've

seen a lot of people on the show comment it means this or that. they've done an exhaustive study looking at all of the inverted yield curves all around the world and the conclusion is it doesn't mean anything for future of stock returns half the time it's beneficial, half half the time it hurts there is no reason to take corrective action based on the shape of the yield curve in terms of investing in stocks. >> what do you make of negative yields in europe when you build your models, do you ever think that was a plausible scenario >> no, never thought -- i still can't believe it, right? if you give the government more money than you expect to get back, it still comes as a shock. >> you think about equities and think about that is coming here. >> well, i mean, the thing -- the counsel is the real returns and real returns have to be negative because nominal yields are negative

that's -- in terms of real returns, interest rates are at the normal level a lot of times when real interest rates have been negative. >> how much work have you done on tariffs you looked at history. that's another piece of this, last 50 years, there have been tariffs all over the place, not here typically, though >> right starting after world war ii, they started coming down a lot in the 19th century, tariffs were a big part of the platform of the republican party. no, i mean, i think -- obviously, coming from chicago, not a big fan of tariffs only excuse would be if it is necessary to get fair tried long-term, then you can make a case for it. otherwise, not much of a case for tariffs. >> unfortunately everybody else has it that's the problem >> that's the problem. that's what i'm saying as long as -- if you can make -- what you want is a fair game.

>> you can't mackke a case for t unfortunately they're everywhere. >> yeah. that's where we are. that's part of the problem >> i got a different question for you. he can didn a number of ceos, 180 of them with the business round table a couple of weeks ago, announced they were changing their -- talking about university of chicago and -- their purpose if you will where they said, you know, not only are we in the businessof making profits, but we have other responsibilities a number of people didn't sign it, including steven swartzman, i interviewed steven mnuchin, our treasury secretary last week, he said he wouldn't have signed it eerither. what do you think of this phenomenon >> a lot had to do with guns the whole -- as a -- as a person, not an investor, i can't figure out why you need to have the ability to buy an ak-47, right? that -- i think i would -- i

think there is a point to say, look, we are, in addition to bringing a company, we are citizens you can't -- you can't get too carried away with it i think the spirit is right in that letter. some of the people that signed it, i thought might be blushing a bit, because of their previous actions. but -- >> who are you talking about some of the ride sharing companies that are dealing with issues for -- >> ride sharing or, you have -- the banks. >> you have banks that open fictitious accounts and now they want to be holding themselves out to be good corporate citizens some of that i think is a little self-serving. >> great to see you. >> thank you. >> congratulations on 50 years come on back. >> okay, great. >> good seeing you. >> thank you >> down to the new york stock exchange, jim cramer, what is on the radar for you today, jim

we had eight in a row until yesterday in the dow little weakness today. >> i just see kraft heinz deal, the shopify deal, some fun coe, still a bunch of ipos coming it was nice to see a relief by not having wework come saudi aramco these were the kinds of things that made me feel like, look out, there is too much supply, it is not what we want so that's good news. kraft heinz, though, wow they got so much behind that what happened? that was a great company and now it is just bad discouraging >> what data points should we be ready for? i feel like we're sort of -- we're actually going to have earnings reports not too far from now again >> we have fedex tonight fedex is important look, the fed is in a box because of what you guys have been talking about, which is

with stevie. you have problems with bone head, problems with who's the enemy. i think it will be difficult for this time, for the fed to dodge these comments i know jay powell is a diplomat. if i were in that audience, i would keep hammering on how do you do your job, how do you do your job what is it like? i think he may think the question is inappropriate. they're no longer inappropriate. because it is front and center that the president hates the guy. i don't know that's a hard call on how to run the fed. >> we talked about that earlier. when he cuts, he has one of two things, if he -- he either trump was right and he's cutting, because trump said it, or he's finally saying, okay, mr. president, i'll do what you tell me to do it is one or the other trump was right in the first place or you're doing it because trump is telling you to do it.

neither one of those are very good. >> we can write those stories and decide which ones to put in. used to write everything but the top, and then whoever won you put in the first paragraph cincinnati beat so and so. you and i can write these stories. a front to the president, in a complete cave to the president, and both of them sound bad i just think that it is a no win, but it is worth watching. >> all right we will -- "squawk on the street" worth watching at 9:00 we'll see you then see you -- >> thank you >> 3 1/2 minutes don't miss an exclusive interview later on "squawk m.asrn with bob bakish, 11:00 a. ete time. stay tuned "squawk box" is coming right back (nervously) ready? ok, ready sweetie? nice, you ready to go again? are you ready, dad?

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welcome back final check on the markets the futures are indicated down again this morning not massive moves, but down by 60 points after some weakness yesterday. that was the first day out of nine that we actually had seen the dow -- the dow close lower s&p was down yesterday, only by -- on friday, by 2 points down yesterday as well you can see right now, s&p futures indicated down by 4. dow futures down by 58 nasdaq indicated off by 6.66 points look out with that oil prices rebounding slightly they were the last time we checked on this. down by 1.4% even after the

steep declines we saw yesterday, wti and brent down by 14%. for brent, that was the biggest decline they have seen since they have been keeping records in 1988 on that. all right, folks, have a great day today. join us tomorrow right now it is time for "squawk on the street. ♪ >> good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber a lot of corporate news from wework to fedex to at&t. fed begins a two day meeting, overnight repo squeeze getting interesting. the saudis make their first official comments today. road map begins with just call it we wait wework delaying the ipo rollout plans after a frosty investor response >> we're going get a look at kraft highs around