disproportionate favor ability from cutting rates in emerging markets. >> and the junr miner, a lot of up side call activity gdhj >> guys, thank you that is it for halftime. "the exchange" begins right now. hi, everybody. here is what is ahead of us. keep it on ice the chinese media say they aren't ready to pop the champagne yet on the latest trade agreement with the u.s we'll talk to one of the president's top china advisers on if this means no deal and what else the chinese are demanding. plus breathing room, could the latest china developments take the fed off the hook for more rate cuts is an october cut off the table. and mark juk zuckerberg's p.

and we saw such a big move in markets on friday with trade optimism the dow industrials hovering between gains and losses just fractionally higher. the s&p 500 still below the 3,000 mark however, just fractionally lower on the day the nasdaq as well we're keeping an eye on the banks because big bank reporting season starts, the spdr bank etf, it has a pretty decent recovery, about 21% up off of the lows back in december, but again, been pretty much stuck in this trading range for a while and then we'll end here on the stock of the day, that is apple, once again the most valuable company in the world apple shares right now just about flat near the session lows of the day however, this move since the early part of this year is up 67% and we again are now at a

$1.07 trillion company apple shares another day, another record high. >> used to be a big deal doma l dom, thanks very much. is just days after a partial trade agreement sent are markets soaring, china seems to be hedging those headlines. the country now wants more talks before signing phrase one and reportedly wants the december tariffs scrapped steve mnuchin telling cnbc that yes, there will be more talks but warned that the december tariffs will go into effect in no deal is reached so what is next in this agreement? is joining me with more insight on that is michael pillsbury, president's china adviser. good to see you again, sir welcome. >> thank you, kelly. i'm not president trump's china adviser, that is bob lighthizer. i'm an academic expert

he is kind of tough on me sometimes for what little i know about china. >> i was going to say, you have his ear, right >> he asks me questions, that is for sure >> and we'll ask you questions too. especially because you do have an understanding of what is going on the chinese side. are the chinese happy with this deal >> they are happy, i would say they are relieved more than happy. there has been a lot of talk in the last month about escalation option that the president has. larry kudlow called it a study group had been set up to look at major escalations really beyond tariffs. i think that that may have scared the chinese they were going to get into a serious trade war are with access to our capital markets being cut off and among other things some of their best national champions being placed on our entity list, our black list. these are very scary options, obviously that is off on the table now in the sense that it is not -- there has been so much substantial progress on friday,

there is no need to think about escalation is options at this time >> that is a different way of framing it than a lot of what the discussion today revolves around which seems to be that the u.s. has not gotten much out of this deal, that it is kind of an empty gesture even markets are shrugging it off, trying to figure out how much hinges on these additional talks that the chinese are demanding. what is the substance of those additional talks likely to be and are we all -- is this setting us up toward a signed agreement between the two presidents at the apec summit in mid november or not? >> i think it is setting up a in-soing agreeme in signing agreement. there are more negotiations going on everybody heard steve mnuchin in the oval office say there is more work to be done in china as well i think the good news, what everybody is talking about in terms of substantial progress, the good news is not just the $40 billion to $50 billion purchases over the next couple

years, the really good news is the agreement on the idea of a large office in both washington and beijing that will try to adjudicate disputes before they go to enforcement action that was actually specifically mentioned by steve mnuchin on cnbc this morning. this is very good progress >> although again, these things are -- they are not as exciting in terms of headlines as you might have thought chhing the more you look at it seems to be a little bit more watered down the intellectual property protections. is there really a there there oig or are we just talking about talking about it in the future china has these ten demands, none of which have been met. so what are those demands and are they still on the table? >> china's ten demands were leaked by the chinese side back when the talks first began to bloomberg, your competitor and the ten demands have kind o

gone silent. i think the chinese may regret that they leaked that list so it is harder to tell what exactly china should be happy with there was a more hard line approach just two or three weeks ago when a gentleman who is a fairly high ranking former head of the statistics bureau in china, he leaked some of the content of the talks including this idea of large offices in both capitals, it would be set up to handle disputes over trade. and he said no leader would ever accept this, it would turn china into an economic colony of america. this is the hard line view, kelly, it is not the reformers you have this tension in beijing between the reformers and the hard liners. and they have got to both make their case to president xi before we really get to the final deal >> so if china is not that happy, and you're saying there is not much new in this agreement -- >> no, no, there is a lot new. i didn't say that. there is a lot new in the agreement.

the ag purchase, escalation options temporarily off the table. you could be looking at a major trade war when wall street begins to grasp that the wavering on accounting reporting from 150 chinese companies is suddenly canceled by the s.e.c we'd have a huge stock desclin ov over that. we also have other negotiations over iran, china agrees with us iran should have no nuclear weapons, over north korea, we have the three-way nuclear arms control talks because the treaty will expire between us and russia china is showing some interest in those talks so a lot is going on that i would consider in geopolitics is more important than the trade talks. the progress on all these fronts is really important. and there was progress >> what would the bottom line be then that you assign to the outcome friday is it that the u.s. has the upper hand, that we have reached some kind of important phase one trade deal tell us what is the takeaway for investors here >> investors should be aware of

the options that were being discussed covered in the "new york times" and "wall street journal" and the "post." really serious escalation options. much higher tariffs and nontariff options were being discussed in the white house larry kudlow said there was a study group to exam them the chinese paid a lot of attention to that. they made some serious concessions friday i think because of the fear of escalation options that is the good news. the other bit of good news is the idea that we had agreements in principal, substantial agreements in principal, chai l. chinese used that term in their statement this morning but it has to be put into paper and there is a few he key word, steve mnuchin was very close, a few key words yet to be agreed to but there is still plenty of time there is five weeks to go before the santiago summit and so wrong to say there is no progress, but also wrong to say there is a final deal open the champagne cork

>> which they were also cautioning against too i think the champagne will be aging for a while. michael, thanks very much. good to see you. >> thanks, kelly for more on the doubt surrounding the trade agreement and what a final deal with look like, let's bring in brian gardner and tony fratwood. great to have you here wanted to get your thoughts immediately on what we just heard from michael pillsbury he says that we did reach a serious deal i guess on friday >> i think -- michael's point that, you know, maybe directi--e going in a better direction and that should be appreciated that is fair yes, things could have gotten worse and question could list all those ways and that is a i think this that markets feared and they still could go in a bad direction. but what we got on friday was at

least direction democratall stec from the brink and that is positive the components of it though are not all that substantial i mean, agricultural purchases, we could discuss whether that is even possible to meet some of the agreements on it the currency agreement was announced by steve mnuchin back in february. ip, we need to see what it is. we keep saying this is less than meets the eye, really it is less than meet the ear because we haven't seen anything on paper on any of these things yet so there are a lot of pieces in there that are really ephemeral he at the point and we'll have to see >> and what about the point that mr. pillsbury practice about the office to adjudicate disputes. he is basically saying this is something that we got, that they don't like, right? is that significant to you is. >> i don't think that it is significant to investors

i think they roll their eyes when they hear that talk it is more about process than substance. and to the theme that tony was talking about, you know, we haven't seen anything. this is a lot of hearsay, a lot of ctter about what might or might not be in the agreement. so tough to say how meaningful it is until we actually see a paper which outlines exactly what the powers of these offices would be and the other constructs of a deal i mean, i was out on friday talking with clients and i just was getting a lot of eye rolling. even while the markets were rallying i'm getting a lot of eye rolls that this is the same old -- annen a analogy that i have used in the past with you is i think that this is like a trading range. the u.s./china negotiations are like a stock trading in a range. and we've bounced off the bottom and i think that we'll head back to the top, but at some point, you know, i want to see a deal that actually lets us break through that top and then we can

talk about new highs >> tony, do you think that kind of deal is really coming. >> and the other thing that confuses me a little bit is that if the chinese were intimidated by what they heard from larry kudlow that we have more tariffs and nontariff measures and waivers on accounting that could really crack down on some of their listings here, if that pressure spooked them, then why are they now the ones holding everything up and pressuring us to kind of agree to more talks >> yeah, i think one thing that has been -- that everyone has seen evidence of over these 18 months is that both economies can do significant damage to each other and especially to individual companies. and if we nt to get into that game, the chineainese hold a lo cards there too. i do think that they didn't want this to get hotter and wanted to work to take the heat off. as to the ultimate goal, i don't

see the grand agreement, the big agreement, in the offering before the end of this administration i think you get through phase one, you set up a process to talk and let people go to their corners. but i don't think that it is possible, i think that the chinese have the means and the interest to wait out the end of the this swraiks and sadministr comes next >> are you surprised that they backed down on the tariff hikes due for tomorrow did they get enough in exchange for that ggesture, and if not, does that tell that you they are embracing tariffs less than they might have in the past?that youe embracing tariffs less than they might have in the past >> with everything else going on, the president is looking for re-election. and i think there is a tension in the white house about whether to take a hawkish or more dovish you view and i think it the this point the president probably figured that it was good time to make an announcement he likes splashy announcements

and he can take a victory lap, take some pressure off himself on other issues. so not entirely surprised, but going back to what we've been talking about, let's see what is actually in there. right now we just have a splashy announcement i want to see substance. >> and yes or no, do you think we're seeing tariff hikes on december 15th sn. >> no, i think we keep punting it >> i agree >> then that might be all markets need to hear for now guys, thank you both really appreciate it as we watch the dow hanging on to a small rally, here is what else is ahead on "the exchange." >> coming up, will the latest trade truce between china and the u.s. give the fed more breathing roonl when it comes to cutting rates? and could it rule out an october hike and speaking of rates, it is a big week for banks as earnings kick off can they keep last month's

momentum going and deliver for investors? and elizabeth warren goes after facebook -- again. this time with a fake ad that targets ceo mark zuckerberg. woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

welcome back to the exchange oig. reports that china wants additional trade talks has put the market on ice. the dow 11, nasdaq fraction annually la alley lower. is this all talk and no walk joining me now to break it all down, chief economics commentator at the wall st urnal and also john augustine. what do you think markets are taking away from all of the conflicting headlines? >> the one thing we noticed today is there is still some rotation 3 m, best performer in the dow, procter & gamble, worst performer, so still in our view some semblance of belief that we get phase one. >> like those are relatively encouraging signs. would you kind of keep moving in that direction, does it matter what the fed does in this case for you?

>> yes, fed still has the most expensive money in town let's say to give it a phre and we think that they will still cut end of october, mu we'but we're watching earnings. >> and we'll circle back to that in a moment. greg, let me ask you about the fed. there is a binary thing whereas the trade talks get worse, people price in more fed rate cuts and vice versa. so if we have a relatively can good feeling about this trade deal, does that mean we should not expect a cut this month or fewer cuts going forward >> the fed is not watching the trade talks per se they are watching the effect of the trade talks on the global economy. and honestly, even if there has been a agree xwr breakthrough, take a few months for that to show up in the data which is too late for the fed i think they see a global economy that still seems to be slowing, purchasing managers index pointing to manufacturing sectors possibly in recession in the united states, certainly in

europe and i think that tends to weigh on their mind more than the possibility of a breakthrough on trade. >> although we had a guest last week who said he thinks that we're seeing the bottoming in terms of the manufacturing numbers here, which have been getting worse for a year or so in terms of some of the -- i've seen even german, people with all the german economy saying maybe we're seeing a bottoming there. do you think that is true that we've now priced in a lot of negativity without it necessarily -- that would basically have to be recession at this point to keep getting worse? >> i guess that is possible. although i remember people have been saying something to that effect for quite a few months now, german numbers in particular keep getting worse. one thing we couldn't hadon't h feel for are the i'd i don't syncretic factors. starting in 2018, there was reversal tax break for cars.i d syncretic factors. starting in 2018, there was reversal tax break for cars. that ricocheted into things like exports and investment equipment designed for the automobile industry and that hurt germany

and in addition in germany there was a problem with certification of diesel powered vehicles those things are things that we should expect to fade from the system and maybe that is indeed what is happening. the trade stuff not so much. again, a lot of uncertainty here, but i think that it is way too soon to say that things have bottomed out from the global economy. >> although fascinating the way that china auto tax breaks can end up slowing the entire economy. so let's go back to earnings we get bank earnings tomorrow. expectations low enough? why does earnings season matter to you >> we believe they are low enough, minus 3% right now for s&p 500. that would represent a trough. and then we actually move back up into double digits a year from now so what is important to us, two things can companies step over the lowered bar and number two, what will happen to 2020 earnings estimates. it is at 10% right now our equity team thinks it comes

down to maybe about 8% we think the market accepts that but anything lower than that, we think the market may stumble on. >> and finally your favorite place to be in this market is -- >> we're still in the defensive sector, defensive stock sectors. we're getting so far performance there for our customers, we're getting dividend yields there. we're getting less volatility. the key will be maybe in november do you start to switch more cyclical. >> okay. gentlemen, thank you appreciate it. coming up, a picture is worth a thousand words and elizabeth warren just used this one to make a false statement on purpose. we'll have the latest on her feud with mark zuckerberg and boeing ceo gets stripped of his ro achr. les ai car like i treat mine. adp helps airtech automotive streamline payroll and hr, so welby torres can achieve what he's working for.

welcome back we have a news alert on uber shares up 4% >> and another round of job cuts, uber is laying off around 350 employees across its food delivery marketing and self-driving car teams in an email this morning, the ceo said that this was the last and final round of lay overs, a process that began earlier they year and has reduced its total workforce by about 1,000 people. he also said in the memo, we all have a part to play by establishing a new normal in how

we work. identifying and eliminating duplicate work, upholding high standards for performance, giving direct feedback and taking action when expectations are not being met. and eliminating the bureaucracy that tends to creep as companies grow that speaks to the enormous growth that uber has seen as a start up, but also the cost cutting occurring as public market investors look for profitability. shares up 4%, but they were up before this news >> and what he is describing i think is the transition a lot of these companies are going through in the public markets. deidre, thank you. now to sue herera for a cnbc news update. >> hello, everyone here is what is happening. syrian soldiers are being tee employed to the border with turkey syria state tv showing troopste turkey syria state tv showing troops being womelcomed but it creates the possibility of a wired conflict in that region. a dangerous rescue effort is still under way in new orleans

as firefighters search for a man in the hard rock hotel which partially collapsed over the weekend. an official says that they think that they know where the man is. >> the entire building right how is in very, very precarious situation. because it is a life safety issue, we are putting folks in somewhat risk. it is way different when you start to destruct the building as part of it will absolutely have to be done. when in rescue, are you trying to get people out action you take a little bit horrific and passengers aboard a southwest flight from austin, texas were forced to deplane after a mechanical issue at midway airport in chicago. flight 4448 blew a tire, luckily no injuries were reported. you are up-to-date i'll send it back to you here is what else is coming up today -- >> ahead, mark zuckerberg

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welcome back let's catch you up on a few stories. it is time for rapid fire and here with the headlines are seema mody, dominic chu and kate rogers we've gone from fake news to fake ads here is a political ad that elizabeth warren ran saying that mark zuckerberg endorsed president trump for re-election. the ad outs itself by saying you are probably shocked and might be thinking how could this possibly be true well, it is not. warren said that she wanted to see how far someone can go when it comes to posting misleading ads on the site. facebook has defended itself by pointing to fcc and says it is better to let voters not

companies decide here is what is interesting to me about this. so if warren wanted to make a point about facebook, the fake news issue has been with actual content, not with ads. would it have been more effective to have put up just like a normal facebook post slamming the president doing something to that effect and challenging them to figure out what do with it? >> yes that is the one word answer. i mean, of course it is. the deeper issue being brought by this whole idea is if you can put these things out there, what exactly are the constructs, what is the paradigm and framework that you need. because facebook in defending itself was trying to say that we need to give equal time, equal coverage, we have to be balanced >> but also if you start to interfere with an advertisement action then you are editorializing >> correct so all of these points are being made, but there is no way that you can actually remedy that in a certain way without eliminating all of those processes to begin with. >> one interesting thing that i've learned this going through

all of this, so broadcast networks basically have to air the political campaign ads they are given. not so much the case with cable. so for example, one of nbcu declined to ad trauump campaign so they have to figure out what it is, how to classify it, but think about that for the major broadcast stations, you are not allowed to interfere because then you risk editorializing >> elizabeth warren achieved what she wanted because everyone is talking about it. kamala harris tried to do it with twitter saying they should take down president trump's account because he is spreading misinformation, et cetera. that didn't gain much traction as this did. so i think she achieved what she wanted we're all talking about it i mean this is about mark zuckerberg and facebook. it is shocking to me that it got that far and it has gained this much traction.

>> and she definitely knows one of her bipartisan appeal points here is this -- going after facebook >> and it foes to show how since 2016 they have all come out saying that we are prioritizing digital security, privacy, trying to monitor the news feed. but yet a move like this on behalf of elizabeth warren really showcasing how there is a lot of room for improvement on facebook >> and i'll be watching to see if anyone tries it with -- >> and we're almost talking more about this than bernie sanders putting out the whole plan to restrict share buybacks and raise corporate taxes. it shows you this works more effectively than bernie sanders' plan to com bhbat corporate america. sears will close another 100 sears and kmart stores former chair and ceo eddie lampert brought it out of

bankruptcy so far it looks like his bet isn't paying off even in this last kind of sad desperate chapter. >> and the journal article says that lot of items are no longer stocked including a lot of the hardware and also they wanted to kind of pivot andcus on strictly hardware stores. people can get these craftsman products basically anywhere now because that was sold to stanley black and decker so they are also apparently not even stocking the shelves and a lot of the leases i believe were set to expire. so thipd hey said hey just let o >> and this is at a time of very strong competition amazon, best buy killing it on earnings bed bath & beyond with its turn around strategy. home depot as well so even if eddie lambert can get

sears back up and running with its smaller store strategy, you have to wonder at what point can it really gain market share when the competitive landscape is just so -- >> i grew up in an environment where sears and k martz wemart e the stores of choice you went there specifically for a few different things exclusively almost and that was appliances, that was tools, that was like lawnmowers those are things that weren't as affected by -- we talk about amazon, but those are things that you don't buy on amazon you go to home depot so amazon didn't kill sears. is this a long standing issue of erosion in their business and it just got bigger and a bigger and those brand names are just not as big >> and the stores are run down if you are going in and there is nothing on the shelves, that doesn't in-tientice you to go b be >> the strategy has not succeeded. it is a shame. now this, here is a chain

wall street does love, planet fitness got an upgrade today imperial boosted its rating to outperform from in line. shares have sold off about 25% from their high of 81 bucks back in june, but this analyst says fundamentals are strong, the stock should be a core, no pun intended, long term holding. a best in class fitness operator and this harks back to the jeffries analyst who in february said that planet fitness has an amazonian business model >> and subscription based budget gym. its core business really isn't that innovativinnovative, but as still see it as one that has really taken hold especially amongst middle class consumers outside of big cities where typically in like new york, you have so many options but say kansas or oregon, there aren't as many >> have you ever been a member i have i've paid like the $1 in

addition yaf, $1 in addition yaf initiation, $10 a month or whatever and it is probably one of the best values you can get in the world of fitness and i've been members at other fitness clubs, 24 hour fitness if you are looking for a budget c sen place, this is it. >> and they won't even let franchisees expand they are only offering to their existing owners who know how do it well. >> and with the black card membership, they raised the price, consumers are willing to pay more for it. you get massage chairs, you can bring a guest. it is similar to amazon in that it is -- >> there was tanning when i was there. >> yeah. >> spell la on peloton is suppoh future in fitness.

it is down again maybe the traditional gym model is actually what works >> always go with what is not cool that is my investment tip of the day. finally, students in california can press the snooze button without being late to class. the governor signing a law, classic california, statewide law they will be the first state in the nation to mandate later start times at most public schools. middle schools will begin classes no earlier than 8:00 a.m. high schools can't start before 8:30 the governor saying it is an effort to give students more sleep. i will say, as much as i sort of don't understand because when we were in school, it just wasn't a big topic of conversation, i just acknowledge this is the day and age we live in my school in town, they had these sleep-ins every week or two where they don't have first period, meant to help them catch up on sleep. so this is an approach probably makes more sense than that >> i want to tackle this from a working parent's point of view

i don't necessarily agree with it i'm trying to see as many perspectives as i can on this. but i need to be at work at a certain time to make money, to provide for my family. i need to go in early sometimes. th later you push these things, harder it is for a working family to then put their kid in a situation where they don't have to supervise them and then -- remember there was a school district in colorado that said that they were going to eliminate class on fridays or monday bes or one of those days. and that has a huge impact on working families what happens for child care? you have to take a day off or you can't work it has real impact >> i wonder though because college has gotten so much more competitive, are these kids overscheduled, do they actually need to catch up on sleep? we had activities before and after schookoochool participatel of them, i think it teaches you about time management. but i don't know i have no idea what they are doing these days >> i do wonder about rush hour

if it is 8 ork:008:00, 8:30 -- >> yeah, tell my bosses i'm not going to show up until about 10:00 maybe sand i got and i go automatic by 3:00. >> yeah, high school kids, most can likely take the bus or get to school themselves just saying. >> california just got really cool, gavin newsom going after ncaa athletes. he is really going after the younger audience >> yeah, the 14-year-olds will move there in droves >> and pair patheir parents in w >> yeah, guys, thank you all huang ea bank earnings get under way tomorrow but are headwinds set to trip investors up and wework is running out of money and time the bold move it may have to ahd.s ikeep the lightons ea back in two. s our life's work. but when a recall happens, perfectly good food goes to waste. now, we've got away around that.

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welcome back third quarter earnings season is upon us and it kicks off with the banks. jpmorgan, goldman sachs, citi and wells fargo all set to report tomorrow. the banks have held up relatively well this year. xlf is up 16%. financials were the best performing sector for the month of september falling interest rates, trade turmoil, yield curve all spells trouble. can banks keep up the momentum joining me now is president and senior portfolio manager at menden capital advisers. with the big banks in particular, mortgages will be strong, and then interest will be weak. who does that favor in particular here? >> well, i think, you know, the biggest mortgage lenders like wells fargo will have strong mortgage numbers jpmorgan, bank of america will have strong mortgage numbers 9 ch the challenge is trying to keep up with low costs.

libor is jumping ahead and you can't match up >> but do you think that is -- are people's expectations kind of set for that and how long is this pressure going to last? >> i think people's expectations are set for immediamediocre/wea quarter. banks are underownedshorted, but at the end of the day, people went in to skran the same way and they didn't have great quarters and the stocks went up. >> they have sort of held in there with the overall market, underperformed a little bit. you've had particular plays i know in the regional banks that you like one theme of your is consolidation. how much are we talking? and who all can now combine? >> i think if you are under $250 billion, you've got the green light until the change of administration if there ever is. so i think that is the investment banker's favorite pitch. but things are harder out there.

long xwloet long growth is there, so you cut costs. and so i think that you can look at it like bracketology going if you have good growth in georgia and tennessee, do you get together with florida, texas, do you create a new regional or super regional type of entity. >> and then drawing back out to certainly what has been happening on wall street lately with the ipo being a different being weak this quarter, with wework, so you have goldman with 4% exposure to uber and wework, jpmorgan with exposure viously. how do you expect that to is shake out? >> the question is will they take a charge this quarter or next quarter >> jeffries already did take a charge >> and they are off quarter a little bit but, yeah, there is a chance for a charge here. and i think that they have to justify it and show what they have or not. but no doubt the public markets respond with them. >> and also this is a little bit outside the banks, but e-trade

what has happened lately with the commission-free moves, will that mean bracketology there as well >> absolutely. i think people have thought e-trade would sell years ago and they came up with a strategic plan that said we'll make a huge return in a few years, but now you can't really see the weight of that huge return because the pressures are real pressures are there on interest rates. that was the reason to own it. yield curve is gone. and now with the fee cutting, maybe payment for order flow in the spotlight again, it makes a lot of sense i think if you did like an a may e-trade merger, you'd cut the costs. >> a who should people have exposure to? >> the names i like are names like amerus, first bank in tennessee, fbk, vtx. >> forget the big players? >> don't forget them if you want to write a cover

column on the big guy, you can create some return so i do own bank of america. >> and that audience knows what you mean thanks very much good to see you. >> my pleasure meantime, ceo dennis muilenburg's future at boeing looking unseearn uncertain afte was chipped of hstripped of hisn title. and take a look of shares beyond meat dropping about 4% today.st. and take a look of shares beyond meat dropping about 4% today just above the price target. the company could rohit ad blocks as competition grows. mm-. your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team.

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welcome back boeing's stripping ceo of his chairman title it's a move that will allow him to focus on day-to-day operations we have the real significance beheenb behind this move phil >> let's look at this in terms of the people involved in this transition let's start off with the new non-executive chairman david calhoun.

he's been on the board for about a decade he has vast experience it comes to major industrial companies. he's on the caterpillar board. his focus will be on safety oversight. sending the message and making it clear that boeing committed to making sure it doesn't overlook safety as was the case as developing and starting to build the 737 max. as for dennis, his job right now, his top priority getting the max back in the air. he maintains the company will be putting it back in service by the end of the year. they've got a lot of hurdles that they will have to overcome to get it recertified. they've also got about 600 planes that are parked around the world so eventually they will have to work on getting the planes back in service and getting them back out with the rarls. take a look at shares of boeing, it's had a muted reaction to this news that david calhoun will be the new chairman of boeing this is a stock that looks like it hasn't done anything since the grounding, they took off

about $30 billion in market. when you go back to the high when it was well over $400 last year >> appreciate it very much we'll talk about whether wework can avoid a cash crunch. take a look at shares. smiles direct are sinking today by 10% this is a day after california passed a bill that include ke regulatory changes smile direct club has faced option from orthodontictists we're back in two.

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our network; to find out if you can save on your prescriptions and to get our free decision guide. licensed humana sales agents are standing by, so call now. welcome back wework is wedged between a rock and a hard place to stay afloat. one from their biggest shareholder, softbank and one from jpmorgan. lee let's start with the state of

play wework spokesperson said they have retained a major wall street financial institution to arrange financing. what do we know? >> it could come down to these two options. the major institution is likely jpmorgan if wework will raise debt that will come at a higher cost over the last few weeks we have been reporting how the credit rating has come down. the other option is softbank remember at the end of 2018 softbank was going to invest billions of dollars more into the company to take a majority stake. those plans fell through as the vision fund investors were not on board with that you have to wonder does it come down to adam neumann he has majority control. which option does he want to go wi

with >> what's the significance of them going with softbank >> it has no cash flow what would the debt investors be paid with? >> office space. >> i don't get that. i imagine it would have to be softbank we don't know if neumann still has control or not i think it will end up being softbank putting money in and trying to make it work i'm not sure it can. people thought it would be the end of the middle of next year when they ran out of money and now they are talking about this year something is happening and we don't know what. >> it's mid-october. we're talking about tweengs.

how could it run out of money that quickly there's got to many more happening for it to burn through that kind of cash. we covered uber and lyft it's unfathomable to how quickly that money could be spent. >> any idea >> the expansion is going so fast they may have to be putting down more money. there could be all sorts of things happening we won't know because no s137 who knows? >> appreciate that from you both explaining both what's happening with the cash burn and what happens with these various financing options. we'll see which way they do end up going thank you very much. that does it for the exchange. i'll join melissa for power

lunch which begins momentarily good afternoon here is what's new at 2:00 fazed and confused wall street trying to take in phase one of the trade talks between china and the u.s. is a full trade deal still on track? one farmer says this trade truce isn't enough he'll tell us what he thinks president trump should do, next. rescue we. will justice of the peapmorgan p in to save the day the only other majors to be tradin