zbrmpl good morning it's 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ good friday morning. markets obviously enjoying a nice surge to finish the week on a pretty solid jobs number investors say with this recent volatility looking to tech for a

hedge. our next guest says that apple, netflix, and facebook are recession resistant. we're joined by steve malonovich first. >> it's been up and down m micron had a tough number. but tech is holding in >> yeah. i wonder -- i mean, where do you think -- how would you characterize sentiment right now if not on tech than on faang alone? >> we actually did a survey earlier in the week. and on tech overall, investors are moderately bullish for the quarter and next year. however, they're much more balanced on faang. obviously with the regulation concerns there, there are some worries about faang. for the most part, the big cap tech names are holding in. >> i got a question for you on sometimes faang member apple whose headline is out about them this morning suggesting that

iphone 11 demand is better than expected but i've got two buckets of concern about apple. i'm hoping you can adjust. on the near term side, it has to do with supply because of the looming threat of tariffs december 15th. might apple be ordering more iphones to ship into the u.s. sooner to get ahead of that to last them longer there u the cycle and then longer term on the demand side. once we get to the back end of the cycle, do you expect consumers around the world especially in china to slow down because of 5g and the lack of it in the iphone 11 >> yeah, so we have a pure perform on apple which is essentially a neutral. it could be they're ordering more phones. you've got all three phones available at the same time which you haven't had in the last three years. i think we're through the worst. but as you point out, we do think this cycle is going to be maybe slightly down in units you really have to wait until next year with 5g. i don't think a 5g phone is

going tobacco be a terribly dift experience i think you will see a stronger cycle a year from now. >> also with this, us, roy, i wo get your thoughts on this. certainly stoked by these talks about whether we could be moving closer to recession. do you see certain names and these are recession proof? >> what i saw and what i've seen, i've actually seen this since september 23rd or somewhere around there i'm a bier uyer of apple. i've owned apple for 15-plus years. i think tim cook understands the landscape. when steve jobs passed away years ago, they said apple lost its zest i've never sold a share of apple

in my clients' or personal account. the world is changing. i think apple is going to be in the forefront. i'm a big buyer of apple i find it ironic that apple's up $4 today but apple makes me sleep at night. what's important to me is i want my clients to sleep at night a 1.8% dividend. the 10-year treasury less than that i want my clients to go to bed think even if apple stock doesn't move, they're going to get a good dividend rate. >> we just showed a graphic that suggested that you've also -- you're feeling pretty bullish about netflix as well. is that the case does netflix make you sleep at night too? >> there's a lot of competitive companies coming into that space. you've got comcast you've got disney. i'm still a buyer of netflix is there going to be some competition? i think there's enough to go around for those competitors in that space

netflix, reed hastings i think is very innovative years ago when he adjusted the price on netflix, the stock took a little bit of a hit. you can buy netflix for a 30% discount i'm not selling netflix right now. i have a tendency to buy stocks that are undervalued i think netflix is going to be a player for a long time to come >> steve, speaking of competition here, this journal headline this morning that disn disney's banning advertising from netflix across its networks we'll see whether or not it gets harder to book stars from netflix original shows in the coming weeks but does this -- are the gloves off? >> yeah, you've seen bob iger go off the apple board. so you're seeing a lot of competition on on that side

that's coming. my colleague does have a buy on netflix. it's going to be interesting i think, you know, they spend $600 million on "seinfeld" to assure themselves they're going to be one of the top two or three playser. i think you can stay in the top two or three, you're probably okay but there's going to be increasing competition having said that, apple's not trying to be the next netflix. they're about the apple tv app, if you will. i think over time, you know, they'll find different strategies with the same space >> steve, what's going on in hardware and particularly to the peak ecosystem can't help but notice this week hp has the layoffs going on the same week that microsoft which we used to think of as a pure software player is announcing major hardware, not just for windows but also for android coming up. what's going on on the changes

even on the device side of the hardware ecosystem >> well, hardware has been a tough spot to be in. had a strong '18 in the pc business things have slowed in pc and servers. the group is finally catching a little bit of a bid here because of the value aspect. but hp's cuts yesterday were much more because of their printer business, the supply business is in trouble they're cutting 15% of head count. pc has been pretty strong. intel is pointing out there's been a pull forward into the first half so i think pcs could weaken into next year. microsoft, it's strange they've been in hardware in the first place. surface has done relatively well i don't think it works they're trying to sell it with office a little bit there. i think now that cloud's really driving microsoft, hardware is a little bit of a side project for them >> there's certainly been a lot to ad to the debate this week. good weekend to you both we'll see you soon >> thank you >> thank you so much

still to come, facebook ceo mark zuckerberg live streaming a suri mti yteayrpseeengesrd dow is up 165 right now. "squawk alley" will be right back

well, it is jobs friday and although today's report missed estimates, stocks are up for more on this, we are we are

joind by shawn matthews. also with us simona acuda. good morning to both of you. simona, what is your take on this report and the revision given how much of this is due to government versus the private sector >> in my book, this was a decent report i think given where we are in the business cycle, i think this reinforces the idea we are slowing but still growing. i was satisfied with the details especially with the hours numbers. s >> okay. and shawn, given what we saw about the services sector and the signal that sends about how things are slowing and then, you know, the on-balance, some would say positive information we're getting out of the jobs report, how do you parse both of those and what's your take for the week

>> i think there's definitely a mixed message going on the economy is slowing but the question is what is the trajectory going forward economists are trying to wrestle with that. you look at the bond market. it went down and came back so i think financial assets are looking through this and saying, okay the fed is going to be there to ease and ease aggressively which i'm not sure they're going to build in for now for now you're seeing the market rallying in anticipation of the easing >> to that point, that is one of the reasons that's been pointing to for this really kind of whirlwind turnaround we saw in the market yesterday after the dow is down 300 points and then finished the day up triple digits as well could potentially be good news because the fed may now cut more than was previously anticipated. do you think that's actually the case especially after this jobs number today >> i think there is certainly an

element of that. i think whether it's true or wishful thinking, it remains to be seen. to me, given that the fed has already cut twice and given the combination of numbers that we've received this week and especially the labor market which still is very strong, i don't see urgency for the fed to move again we'll see what signals you get from speeches and from commentary from chair powell and others but, you know, overall the economy is in a bit of a holding pattern. >> well, shawn, what does this say, do you think, about the environment for business investment if we're going to get another leg of growth, it seems like that's important but the trade environment has had a number of ceos telling us, you know, there are uncertain which way to go. then with the labor market as tight as it is at the same time,

is there enough slack to really plan on investing in growth? >> i don't think so. and if we look at the marketplace, if you're a ceo right now sitting in your seat, you're clearly wondering what's going to happen with the trade environment. now you're going into the election cycle as well so you want two vastly different kind of approaches to business that's out there vis-a-vis candidates who could be actually in the white house so i think as a ceo, you're very guarded right now. you do have the problem where there's a labor shortage especially in some key areas and you're going to just kind of muddle your way through this which is why i think capital spending is so low it's hard to plan for the next two years, you know, and certainly if you're going to have a big capital project in place, you've got to be thinking years out opposed to the next three months or six months you can continue to try to hire people on the short run, but the reality is it's now about an election cycle that's in place

as well as a trade cycle which no one clearly understands at this point >> that's a really good point. we've been asking all morning long, what's the difference between the capex slowdown and the lack of a hiring slowdown? should viewers think of it as a multi-year commitment? once you're in, you're in for a long part of the cycle whereas workers you can hire and firer on a much shorter term basis >> absolutely that is part of that but there is a silver lining in this dichotomy as well capex is a much smaller part of this whereas consumer spending is a bigger parts. thinking of how much you can get from capex, but not having the upside is not the same as being vulnerable to the downside i think that's where the labor market plays a role. because it helps stabilize you >> shawn, you just touched on

something and i want to dig into it a little bit more everything we see in terms of this political climate, all of the turmoil out of dc right now, that is priced into the market >> i clearly do not think it's priced into the market at this point in time. you have elizabeth warren emerging as the new candidate in front which has tremendous problems for the financial markets as well as for health care and some other key components so it really depends on the next three to six months what happens. but if she emerges as a clear front runner, i think the markets will have a tough slog as they work through what that looks like pretty much the four or five front runners are beating trump now. those are skewed but it's a coin flip at this point for whoever gets in to compete against trump. will they win or not but if it's elizabeth warren

again, i think there are key issues that are out there that is going to have significant implications to asset prices going forward. >> try to narrow down what you think tough slog means sanders' health is now in question biden some argue has withstood of damage. we'll see if she takes any marginal share even at this early stage. but what kind of liability is there to stock prices if she's the nominee? >> it just -- and that'll be based on, you know, what the thought process is but if she is the front runner, i think that has to be priced in at some point. that really depends on what's going on in the business cycle and where interest rates and how aggressive the fed is going to be to bolster prices i don't think it's priced in right now. i think people are just coming around to the fact that she is

the front runner i believe she's definitely the front runner at this point in time and i think prices have to readjust because of that >> simona, your take on the effective politics in the election cycle and the markets over the next several months >> it's -- that's definitely going to be a bumpy ride, i think. still i feel in the near term the most important signal we are looking for is trade policy. the election is important, but it's still a little bit further away and i think there is a possibility that we get a bit of de-escalation on trade i would say there is -- >> well, to that -- >> -- a reason why you might look for that. >> to that point, the president is making some comments on trade right now. >> -- just came out. and they're the best numbers we've had in over 50 years the unemployment number is down to 3.5%. so that goes way, way back we haven't had numbers like this in a long time wages are up by almost 3%.

that's a fantastic increase for everybody out there working. we're very happy about those numbers. the stock market is substantially up as it was yesterday. and our country does well. europe is not doing well asia is doing poorly to put it mildly we continue to keep doing well but the unemployment numbers just came out. 3.5% unemployment and that is a tremendous number. the lowest in over 50 years. so very happy. and i think really very important. again, i'll say, wages are up. when i was running, wages were nowhere. they were going down and people were having two and three jobs and they were making less money than they made 20 years before now wages are up one other thing having to do with poland. so poland is a country, great people we have a lot of polish-americans living in the

united states. i just signed -- i will soon be signing and sign certain preliminary applications we will be giving a full visa waiver to poland that means that people from poland can easily travel there and people from here can easily go back and forth. they can each -- people from the u.s., people from poland can very easily go back and forth between the united states and poland so they've been trying to get this for many, many decades. and i got it for the polish people in honor of the polish people in the united states and in poland. so we're very happy with that. yeah [ inaudible question ] i heard adam schiff got four pinocchios he should have gotten them two and a half years ago that's a nice question let me shake your hand that's a very nice question. almost a surprise.

i figured that was a trick question [ inaudible question ] well, we'll be issuing a letter. as everybody knows, we've been treated very unfairly. very differently than anyone else if you go back in history you'll see how unfairly we've been treated we've done a fantastic job everything to me is about corruption we want to find out what happened with 2016 and as you know there's a lot of work going on in that i don't care about biden's campaign, but i do care about corruption his campaign, that's up to him politics, that's up to them. i don't care about politics. politics is -- as i think i made clear and yesterday somebody asked me a question and i gave an answer, but always in the form of corruption what i want to do and i think i have an obligation to do, probably a duty to do it corruption when you look at corruption, when you look at what biden and his son did, and other people

and what they've done, i believe there was tremendous corruption with biden but i think that was beyond corruption having to do with the 2016 campaign and what these lowlifes did to so many people to hurt so many people in the trump campaign which was successful despite all of the fighting -- i mean, despite all of the unfairness. so we are looking at corruption. we're not looking at politics. we're looking at corruption. [ inaudible question ] i don't know somebody said that a long time ago, was that in 2017? i don't know you'd have to tell me when all i can tell you is this when i speak to foreign leaders, i speak in an appropriate way. if you notice, they don't mention that because it was so good the only time they mentioned it was when adam schiff made it up.

you talk about pinocchios. that should get ten. he made up a story it was a phony story adam schiff. so they don't talk about that anymore. you know, when this came out, it was quid pro quo well, there was none also yesterday the ambassador who i heard was tremendous and a tremendous person, he was 100% for what we're saying. 100% and if you look, he also said there was no quid pro quo. that's the whole ball game but now the democrats don't bring that up anymore because they lost. look they never thought i was going to release the call between the ukrainian president and myself when i released that call, they were jumping around like you wouldn't believe they didn't know how to respond. and then they found out that the call itself was so bad for th

them -- we've handed the call out and they say wow we're proud of that call when i speak to a foreign leader, i speak in an appropriate manner now, we're also doing trade deals with china we're doing deals with a lot of people for the country so i'm not looking to insult people i can tell you that. but we could probably find that out. [ inaudible question ] has nothing to do it no, i want to do a trade deal with china but only if it's good for the country. and it could happen. as you know, they're very much coming over next week, as i understand it. so i'd like to do a trade deal with china but only if it's a great trade deal with china. one thing has nothing to do with the other. >> do you want the house to continue with the impeachment inquiry? >> the way they're doing it,

they've taken away our rights. if they proceed, they'll just get their people -- they're all in line. because even though many of them don't want to vote, they have no choice they have to follow their leadership and then we'll get into the senate and we're going to win. the republicans have been very unified. this is the greatest witch hunt in the history of our country. so we beat the one that started immediately. we went through two years of mueller. and that came out like a ten it came out perfect. and a few days go by and they start this nonsense. and this is just as ridiculous so the democrats unfortunately have the votes they can vote very easily. even though most of them don't believe they should do it. and i do believe that because of what they're doing with pelosi and their real leaders aoc plus three that's their real leaders. i really believe they're going

to pay a tremendous price at the polls. we saw the first glimpse of it two weeks ago in a great state, north carolina we saw a great, great look at what's going to happen because we had two races one gentleman dan bishop was down by 17 points with 3 weeks to go and he won easily. and the other man, as you know, greg murphy was up by a very little bit and he won by a massive amount i don't know, some place in the 20s. 20% or something maybe higher so i think you got your first glimpse of what's going to happen and the big key is that i have to campaign there. but if you look at what happened in north carolina, two races, we won both of them and we won them easily and one was almost tied. and the other one was a big, big lead and that one turned and the tie became a landslide [ inaudible question ]

well, i don't know about mitch i have a lot of respect for mitch mcconnell. his statement said he thinks this is ridiculous he thinks it's unfair. i saw his statement yesterday that he put out where he read my phone conversation and he thought it was a wonderful conversation and it was but see, the democrats don't talk about that anymore. they try and go to other things. these people are looking for anything they can get because they know they're going to lose the election and we're in election season now. for them to be doing this now, it's never been done what [ inaudible question ] so we're dealing with north korea. they want to meet and we'll be meeting with them. it's probably being set up as we speak. but we'll let you know but north korea would like to do

something, iran would like to do something. we have a lot of countries in a very good position right now despite the witch hunt which hurts our country and it hurts america. but iran wants to do something north korea wants to do something. and china would like to do something. [ inaudible question ] i don't know that you'd have to ask -- is the justice department investigating joe biden? well, that you'd have to ask attorney general barr. but i can tell you just as an observer, what i saw biden do with his son, he is pillaging these countries and he's hurting us how would you like to have as an example, joe biden negotiating the china deal if he took it over from me after the election? he would give them -- wait he would give them everything. he would give them everything. how would you like to have that? joe biden would just roll out

the red carpet he'd give them everything. so again, this doesn't pertain to anything but corruption and that has to do with me i don't care about politics. i don't care about anything. i do care about corruption and to have somebody take $1.25 billion out of china who is totally unfit -- he's unfit -- to have him get $1.5 billion and now i'm hearing the number of $50,000 a month now i'm hearing the number of $50,000 a month is very low. it's a much higher number that biden's son was getting per month. in fact, it's much higher. and for him to -- and for him as a total -- for him as a totally unqualified person to be getting hundreds of thousands a month is very, very bad so again, is the justice department investigating that? i just don't know.

[ inaudible question ] well, i think they follow the leader one thing with the democrats i give them credit for, a lot of them don't want it you know that. you interview that a lot of them in trump district where i won and then they won after i wasn't winning but i'm going to win them big. if you look at what's happening with this polls, they're through the roof you know why because of this phony witch hunt if you look at what happened with the fund raising, we've set a record, the republicans. because people are sick and tired of it. i got a call the other night from pastors the biggest pastors, evangelical christian. they said we have never seen our religion or any religion so electrified. they say they've never seen anything like it churches are joining hundreds of thousands of people. and you know that's partly because of you and your partner

the democrats. >> do you think it will pass the house, sir >> well, i think this. i think this we have great -- we have a great relationship in the senate i have a 95% approval rating in the republican party i believe the senate and i haven't spoken to that many senators, but i believe the senators look at this as a hoax. it's a witch hunt. it's a disgrace. should have never happened just like russia collusion delusion shouldn't have happened. that was a witch hunt. so i think in the senate, i think they feel that the republican party has been treated very, very badly now, in the house, they have the majority they all vote with aoc and plus three. nancy pelosi's petrified of them i mean, she's afraid she's going to lose her position nancy pelosi will lose her speakership right after the election when the republicans take over the house.

>> do we talk about the text messages that included -- >> the one text message that i saw was just about the last. i don't even know most of these ambassadors. i didn't even know their names but the text message -- the text message that i saw from ambassador sondland who is highly respected, was there's no quid pro quo he said that he said by the way, it almost sounded like in general. he said by the way, there's no quid pro quo and there isn't for biden there would be but listen to this there is no quid pro quo and that was the text message that i saw and that nullified everything. >> have you asked foreign leaders for anything that don't involve your political call? >> we would have to look, but i tell you, what i asked for and what i always will ask for is

anything having to do with corruption with respect to our country. if a foreign country can help us with respect to corruption and corruption probes -- i don't care if it's biden or anybody else but if they can help us -- if biden is corrupt, if his son is corrupt. when his son takes out billions of dollars, billions, and he has no experience. he just got fired from the navy. when they do that, that's no good so the only -- just to finish your question. anything having to do with corruption, i actually feel i have an obligation to do that. >> -- advising that it is okay to solicit other governments to investigate a potential political opponent >> no. i didn't say anything is okay. here is what's okay. if we feel there's corruption like i feel there was in the 2016 campaign, there was tremendous corruption against me if we feel there's corruption,

we have a right to go to a foreign country. and just so you know, just so you know, i was investigated i was investigated okay me me in my campaign, i ran, i won you won't say that, will you i was investigated i was investigated and they think it could have been by uk, australia, italy so when you get down to it, i was investigated by the obama dministration by the obama administration, i was investigated so when these people talk -- but as far as i'm concerned, what i want to look at and what we want to investigate anything having to do with corruption. [ inaudible question ]

i view china as somebody we're trying to make a deal with we have a very good chance of making a deal ith. we've had good moments with china. we've had bad moments with china. right now we're in a very important stage in terms of possibly making a deal if we make it, it'll be the biggest trade deal ever made if we make it. but i view china as somebody that we deal with on the world stage. i would like to get along with china if we can. and if we can, that's great. if we can't, that's okay too but what we're doing is we're negotiating a very tough deal. if the deal's not going to be 100% for us, then we're not going to make it and i will say this. i will say this. i will say this. china very much wants to make this deal. china is getting killed. the tariffs are killing china. what's happened is they have now 3 million loss of jobs, their

chains are broken up if you look at their supply chain, it's a disaster companies are going to other countries including us china right now is a total disaster [ inaudible question ] no, no, no let me tell you. i'm only interested in corruption i don't care about politics. i don't care about biden's politics i never thought biden was going to win, to be honest i picked somebody else a long time ago and we'll see what happens but i never thought biden was going to win but i don't care i mean, frankly if he won, i'd be happy i think he'd be an easy opponent i don't care i don't care about politics. but i do care about corruption and this whole thing is about corruption

this whole thing -- this whole thing is about corruption. this is about corruption and this is not about politics this is about corruption and if you look and you read our constitution and many other things, we -- i have an obligation to look at corruption i have an actual obligation and a duty. [ inaudible question ] i don't know that's up to the lawyers i know the lawyers think they've never seen anything so unfair. they've never seen anything so unjust i've been president now for almost three years and i've been going through this for almost three years. it's almost become like a part of my day. but in the meantime, we have the best economy we've ever had.

we have the best jobs numbers we've had in 51 years. the best unemployment numbers that we've had in a half a century. the best numbers that we've ever had african-americans, hispanic-american, asian, women, everything we have the best numbers that we've had in many, many, many decades. and you know what? people understand that people are working they're making money if you look at one very important number that was just announced, wages up 3% that's unheard of. that's unheard of. [ inaudible question ] we're investigating corruption we're not investigating campaign

i don't care about this campaign as i said, i didn't think and i don't think biden is going to win. and maybe to answer your question when you say who is going to win, i'd rather not make a prediction, but i have a feeling about somebody but i didn't think -- because i've watched biden over the years and biden is not the brightest person if you look at his other two campaigns, he was a 1%-er. he got taken off of the garbage heap by obama. so it's one of those things. i didn't think biden was going to win i don't think he would be my toughest opponent. just to finish off, i don't

think he will win. i didn't think he was going to win and i don't think he's going to win >> what do you think about facing elizabeth warren? >> i mean, it's fine she's a socialist and maybe worse than that. but we'll see. i haven't seen his poll numbers. i haven't seen biden's poll numbers. joe biden was never going to make it. he tried it twice. he's at 1% there's a reason i went to number one day one and i stayed there the entire primary season i was never given credit for that but that's okay [ inaudible question ] no, they were trying to set up a meeting but we had no interest rouhani wanted a meeting at the

u.n., we did talk. i didn't speak to him personally but our sides talked he wanted sanctions lifted or partially lifted and i said no [ inaudible question ] we're watching venezuela very closely. the people are suffering and we're watching it closely. we're also giving big aid to venezuela. i'm now going to walter reed hospital wier going to be giving out five purple hearts to unbelievably brave young people and i'm going to -- some of you are going over -- i think some of you are going over so we can talk further there but when there, i would like you to respect the process we're giving out purple hearts to brave people, wounded warriors, people who have been -- i mean, they're just incredible people. and i'm going to be back here in probably two hours

thank you. good job >> all right that's a combattive president trump talking about the impeachment inquiry. obviously trade, the jobs numbers, the request for a chinese investigation about the bidens not related to a trade deal he claimed wages were not growing when he was not president. that is false. eamon javers as we're at session highs here, you did ask him about whether he'd ever called for an investigation about someone who was not a political investigation and he said we'll have to check. >> that's right. it's hard to hear some of the questions out there. but i did ask him if he's ever called for a corruption investigation with a foreign leader of someone who's not a political opponent of his. he said we'd have to look into

that so we'll see if the white house can offer any details on that. i also had the chance to talk to him about the china trade negotiations given his statement yesterday that he wants the chinese to investigate the bidens i asked him if he's more likely to do a trade deal with the chinese if the chinese government investigates the bidens he says no the two things don't have anything to do with one another. and i also asked the president what he said to the chinese about the bidens there rb reports he mentioned the bidens in a phone call with chinese leadership he said i don't know he asked me if that call was back in 2017 sort of intimating he doesn't remember that conversation just a wide ranging press availability there as you say, you can tell the combative mood they're in right

now. >> eamon, thank you. stocks are at session highs right now. the dow is up 233 points in what's really been a wild week very volatile week we've got a special santelli exchange just ahd. time, ed lazear is going to sit down with rick next.

stocks up 220 on the dow

let's get to rick santelli >> thank you, carl you know, ed lazear, my favorite economist. chairman of president george w. bush's council of economic advisers ed, welcome. i'm going to get right into it i really need to define some of the counterintuitive variables inside this report markets seem to think it was a positive jobs were okay i think they're jobs light but let's start out with two areas. wages, unchanged month over month. that's the lowest level since october of 2017. and if we look at year over year at 2.9%, weakest since july of 2018 and of course the 50-year low in the unemployment rate. discuss those. >> okay. well, a few things first, let me just give you a couple more numbers then i'll come back to yours particularly the wage one you talked about. one of the good numbers that hasn't been talked about is the employment rate. that's now up to 61%

many economists are thinking that's about the peak given demographics before the recession. it was at 63.5% because of -- >> so you're talking e-pop >> e-pop exactly. and most labor economists think that's probably the best indicator. anyway, that's good news the jobs numbers as you said, you know, they weren't spectacular, but we're at about 157 over the last three months and that is still considerably above population growth. so what that tells us is that the economy, the labor market is still heating up relative to what we need to keep up with the number of new people coming into the labor force. so again, not bad and that number is up by -- it's still about double what we need. so still not too bad now, you mentioned wages i think that's the important one. the wage number as you point out was not spectacular. it's 2.9% year over year i don't worry too much about month to month because there is some volatility in that.

but the way i would think about it is how does that compare to productivity plus inflation? because that's the number you want to think in terms of. the number that we should have in mind is we should be growing wages at productivity rate plus inflation. right now we're a bit shy of that so productivity has been up this year and what we tend to find in labor markets over the business cycle is that things move with a bit of a lag so i guess the only way i can calm your nerves is to say be patient. hopefully this stuff will catch up we are at a level consistent with productivity and inflation we saw over the previous two years. so we still have time. but again, you know, i don't disagree with you. i wish those numbers were higher >> all right now, when it comes to jolt, it's never anybody's favorite, but boy, it's been on a tear the last three years it peaked about seven or eight months ago and we're down about

5% off the highs but the highs are dramatic highs and you pair that with kate rogers today and i know this is anecdotal, but it's a big anecdotal issue. i sent you the transcript. samsung plant in south carolina wants to hire a lot of people it can't find we don't talk about that dynamic much since the slow down equate that within the slow down and the jobs report, are there still lots of jobs that need to be filled and we just don't discuss it as much >> there are, but it actually comes back to what you said earlier. so, you mentioned jolts. job openings and labor turnover survey and guys like me just love that data series because it gives us so much information what it shows primarily is the dynamism of the labor market lots of people being hired every month and lots of people separating but on average we're growing right now. we've been growing at a rapid rate lots of openings so, come back to what you said about samsung. usually when i hear companies complain about that, i don't

worry too much about it at the company level. and the reason is any single company, even walmart is not big enough so that it can't attract other workers from other firms if it's willing to raise wages so, go back to what you were talking about earlier. when we talked about a sector as a whole, though, there is an issue. and i think one of the big problems that we've had in the economy and in this country is that the whole bottom half of the wage distribution is not getting the skills necessary to keep up with the modern economy. and that's going to be a fundamental long-run problem for us so, the complaints that samsung and others are voicing is, again, it does have merit when we think about it as a sector as a whole. i think we need to revisit that. think about our educational structure and perhaps take some lessons from germany, switzerland and austria which train their workers for labor force jobs that they're going to actually have. >> excellent ed, thank you for your time.

i could talk to you for another half hour but we'll talk again in about a month >> thank you, rick and after the break, an exclusive with the ceo of media on its acquisition of refinery 29 "squawk alley" returns in two. ♪ there are things we would change about work. and there are things we wouldn't. ♪

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averages right now at highs.

the dow is up 234 points what has been really a week for stocks keep in mind down 1.5% some restoring for the s&p which is up nearly 1% right now. the nasdaq is actually poised to finish the week higher where it currently stands but we'll continue to keep an eye on those every sector is in the green except for energy. meantime, vice media shaking up the media landscape, once again. refinery 29 in a deal worth about $400 million joining us now on a cnbc exclusive is ceo >> thank you for having me >> why you're buying refinery29 and what it means for vice media. >> thank you we're really excited about the brand. i think it's incredibly complementary to what we're doing at vice additive to our digtiital business. what that team has done in terms

of building out their own franchises and their original business and experimental business with 29 rooms a great complement for vice. obviously a very female-driven business which is complimentary to the business that we already have and given that we are also, you know, global in our nature at vice, it's a great opportunity for us to be able to take them into some of the other countries that we already reach. >> a number of reports out there that say that this deal cash and largely stock it values refinery29 at about $400 million. the valuation for vice now is $4 billion. is that right? >> that's all speculative. you know, valuations are speculative in nature. i think that people like to talk about our valuation because what we do know is that we're the largest digital media company out there. and that we'll set the market in a merger environment you know what we do know is that

we're differentiated in this space and it's very, very difficult to replicate what we've been able to do. and, so, you know, evaluation is a point in time and, you know, we don't comment on what that will be until it's relative to a sale or a public offering, which is not what we're doing right now. >> vox and new york media just got together a few days ago and we keep hearing that these consolidations, these get togethers are not out of nece necessi necessity, they're out of opportunity. but the overall environment would seem to suggest different. facebook and google has been ringing a lot of profit out of digital advertising. companies are looking for other revenue streams which refinery29 has. what is really the impact of the giants on digital advertising? are you trying to diversify? >> we've already diversified i think it's not just facebook and google all of media is going through massive transformation we're seeing mergers in

traditional media, as well and, you know, that's creating a market when there's an opportunity for the right companies to come together, you know, take that opportunity. but i don't think it's scale just for scale sake. right. it has to be the right quality brand. the right fit for audience reasons. also, executablexecutable you know, we don't want to take on something that is not imminently executable for us and we feel that we've delivered on the plan that we set forth about a year and a half ago when i joined we're continuing to make incredible progress and taking on refinery is something that is complementary to the strategy. we're not detouring from what we set out to do. i think that's important in all of these conversations and, you know, i think that new york mag and vox deal makes a lot of sense, too jim is a great operator and that makes sense. not detouring from what those companies have set out to do >> for so long we thought about vice as this adrenaline filled, almost bad boy kind of network

and brand. and you talk about an offset should we still think of vice that way >> we don't want our brand to change and i think, you know, we serve that audience. but we also address what the audience is asking for and audiences have gotten the younger audiences looking for different kinds of content and we've been a reflection of young audiences from gen-x to today. that bad boy attitude of gen-x is transforming today to young people really wanting answers about the environment and wanting answers about what's happening in the world so, we reflect on what's happening in the youth and we reflect on what is happening in this brave new space that we're all going into so, i think the bad boy nature is really about asking tough questions about what's happening in the world and disrupting what people might think of as norms and that's really what the bad boy is about >> nancy, thanks for joining us exclusively on the heels of this

deal appreciate it. >> thank you very much for having me. what a day we had. the job's number and the president's comments about next week's critical china trade talks in d.c both principles and lower level staff. we'll keep our eye on session highs. up to 224. let's get to the judge and the half >> all right, carl, thanks i'm scott wapner stocks rising after the jobs report brings a big sigh of relief is the economy just good enough to save the rally? it's 12:00 noon, this is "the half time report." >> the american economy still adding jobs. the unemployment rate falling to a 15-year low. are recession fears overblown? and are stocks prime for rebound? what does the data mean for the fed's next move. a bullish sign for apple why the big bet on more affordable iphon