that's not insignificant to hear that from greg hayes and, you know, he may be in that chair.ersee that split and then exist himself if it doesn't trade at intrinsic value which, of course, is the question in terms of where the pure multiples are if honeywell were to move ahead you would have a clear appear to judge it off of in terms of multiple bases clearly they're not getting the representation in the marketplace. >> that conglomerate that you can never fix perfectly. clear message acknowledging that there will be people who say a split at some point makes sense. it was a sensible one. at one point he did say that the same macro trends that benefit aerospace also benefit their other businesses, which are elevators and commercial buildings in which, sure, you can make that case i don't think an investor frustrated with the multiple that utx traded at would say therefore they should always stay together. >> right somewhat disappointing stock for utx to share price not that the market did not already know to a large extent that that deal was coming. yet you can see united tec

. >>> you don't want to miss greg hayes on "squawk on the street" late their morni hayes on "squawk onhe street" late their morni this morning a. >>> the north korea crisis continuing to escalate the white house saying all options are on the table to address the threat chery kang is live in seoul, south korea with the latest for us good morning >> reporter: good morning. so a lot of scrumiblie scramblo of world leaders, including the south korean government. we are focusing on that phone call between the leaders of south korea and the united states overnight one visible agreement out of that phone call that the two countries agreeing to throw out the restrictions on the missile pay load capabilities. the government here is trying to paint a picture of national security strong enough to deter these provocations coming out of north korea. one media report called it -- described it as south korea taking back its missile sovereignty. but in the meantime, this derivative coming out of this latest tension with north korea is happening again between south korea and the u.s. staying with that

to create collins aerospace systems which would save $5 billion by the fourth year of completion greg hayesill join our colleagues on "squawk on the street" later this morning that happens at 9:30 a.m. eastern time. >>> lego announced plans to lay off 8% of its work force lego reporting a 5% drop in revenue for the first half of the year the company said most of the 1400 job cut also happen s wille end of 2017. >>> and rovio entertainment is planning an ipo. the mobile games studio will list shares in helsinki in a move looking to boost growth the company finally returned to profit in 2016 following the angry birds s 3-d movie. there will be a share issue of about $35 million. >>> a check on the global markets, see if that's part of the problem today with the u.s. markets which indicated lower. japan, not good there. down almost 0.5 points or so the hang seng and shanghai eking out gains. european equities, germany doing best there spain down let's look at the dollar saw that earlier dollar has not continued to drop precipitously. we had 1.20 last week when you were out, sorkin crude is not

i don't think greg hayes, the ceo of united technologies was as good as you charles in new jersey. >> caller: boo-yah gym question for you long-term take on clr? >> it's okay long-term, it's been wrong in short-term but long-term, as i tell club members, it's apache, apa. still believe in alpine high and mr. crispin. rochelle in new jersey >> caller: calling about anthem. it's true in the last couple of days it did creep up somewhat. however within recent history it did go down about $14 from 196 high to 182. i was wondering why that big drop what do you think about the future >> political story went down on politics. same with united health. all buys i like that group very much. charlotte in texas >> caller: hey get them aggies. >> i love the aggies what's up? >> caller: calling about pfizer. reading up on it, seems like going in direction of taking about four of experimental drugs, decided to shelf and putting into new company springworks therapeutics i've come in a large quantity of pfizer stock and wondering where should i go with it? >> hold on to pfizer stock it's doing a terrif

. >>> speaking exclusively to cnbc, united technologies ceo greg hayes defended the deal >> is the right deal the reason, 30,000 new aircraft will be delivered in the next 15 years. the aerospace business is growing dramatically we see passengers up 5% every year growth is coming in the aerospace business with that growth comes pressure from customers to take costs out, continue to innovate. having scale in the aerospace business is essential if you're going to deliver the value to the customers that they expect >>> the german savings bank association warned small banks are being choked by regulation that's been designed for big banks. annette ta spospoke to george fahrenson in frankfurt >> the regulatory burden we have the regulatory systems and rules, they were developed for the big international engaged invest ba investment banks and even in europe, too big to fail we are coming to a situation where he can have to discussion too small to succeed and survive. so europe has to act soon just to get the right solution for our very stable and resilient diverse banking industry in europe es

two things when they talked with greg hayes earlier today acknowledging the rich premium when you buych front property, you're going to pay a premium and he said after we combine these two companies and get some debt paid down, if it's not working, we'll just split it up again i mean, he was pretty frank about that right up front. >> right if you take carrier and the building side of the equation for united technologies, the slower growing part of the business, which, by the way, it's great cash generation that's the appeal of otis elevators. if you take that and up move it away from the aerospace business, bill, look at the growth and the margins on the aerospace side of the business i mean, that would be formidable, and i think that's what people are looking at saying ultimately in a couple of years could we see united technologies split into a couple of companies >> and going back to phil's point at first, helps us explain why boeing is one of the underperformers today with that decline. phil, thank you so much. >> thanks, phil. >> you bet. >> and the dow is down 242 points we're t

keep in mind that just an hour and a half ago, david faber was talking with greg hayes, the ceo of unitedechnologies, and he said, point-blank, we do not see anything that will stop this transaction. so, guys, what we're looking at right now is boeing saying, you know what, with we disagree with that, and potentially, we could see boeing going to regulators saying, stop this deal from going through. unclear whether or not they'll actually do that or if it would be effective, but we expected boeing to have strong statements on this deal, because it is getting into the i haveavionics business and that's what we're seeing here. >> phil, thank you interestingly, more than half of the dow's drop today is goldman, boeing, and utx. we're back after this with art cashin on today's markets. don't go away. not rebalancing your portfolio. pursuing your passion, not reacting to market downturns. focused on what you love, not how your money will last through retirement. let us help you with those decisions, and get on with your life. we make it easier to plan for retirement with day one target date fu

greg hayes, the ceo, he pledged a couple years ago that he would be willing to make big bets, and thathappening right now. mark: are there any concerns then, that this deal could be an unwelcome distraction for united? reporter: big deals are always distractions, but united technologies is a fairly diverse company. they have the aerospace component, making up about half. they also have other sizable elements, like elevators and cooling products. this is a company that is juggling these different assets. they made an acquisition that was made as it says a couple years ago. so, they can spin these multiple plates. at the same time, they have issues going on with their new engine for the airbus plane. some people, particularly at airbus, might be looking at this and wondering if they should not clean house first, get that in order before they embark on this next project? rockwell collins itself is a rather chunky asset. that will take some time, but united tech is quite helpful they can make this work, much in the way they make good rich work. mark: thank you for joining us today, filling

hayes a nuclear weapons state. so he feels he's on the cusp, and i think that plays a little into the economic issue that greg so spoke about where he's permitting those private plots and those private markets. reminiscent of china in the '70s coming out the cultural revolution. so i think kim jung-un is feeling pretty good about himself right now. >> and given we've seen these massive purges of practically all four fundamental fundamental big building blocks of the kim jung-il regime has been purge. and even the inner core of the kim family. both the uncle, the half brother assassinated with a vx nerve agent at a busy international airport. those around kim jung-un will be afraid to deliver bad means to the supreme leader. and this might result in miscalculation, kim jung-un not being able to accurately assess those accomplishments he's so keen on. >> yes, sir. against the wall. >> i'm with "the new york times." preem preemptive war was mentioned of course in the situation where the united states thought an immediate threat was coming. but there's also been talk about preemptive war to simply deny north korea its abi