barry knapp joins us managing direct at iron sds sds macroeconomic. michael farr wit us.sident of farr miller andsh gton. he says the bull market is strong. gentlemen, well nice to have you with us. >> thank you. >> thank you. >> barry a rough start obviously but you think things could get worse. why?y? >> well, first of all, all growth is not created equal. so what actually matters significantly for corporate revenues and corporate earnings is -- it's not just the manufacturr.g secin it's the spending on capital equipment and how that affects the inflationary aspect or implications or iimpulse, you will, from growth. a year ago capital involvement was quite strong. revenues were strongnd earnings were strong. this year we've had a significantdeacceleration in that capital investment. part of the. econo part of the recessions have started this which. it wash.commonplace in th 50s for example or 2001 when we had a tech there is no bubble today. but trat deacceon in the capital spending part of the economy has put significant downside pressure on earnings and revenues and c

have mentioned when we were talking about google's reported bid for fit bit earlier in the week, barry knapp-mailed me and said garmin's the way to go if you do anything fitness related i should have said it then then maybe people could have bought the stock because he's absolutely right. but let's move on and talk about hbo max, which at&t is unveiling. it will cost $15 a month media mogul barry diller was on squawk box this morning and saying there's no way all these streaming players can keep up with surging production cost. >> the question is, how many subscribers does it take times x dollars to equal the massive costs that are now taking place? because those costs are literally insane three television programs. three episodes of 20 each television programs will cost $1 billion today. >> they're not charging what these things cost right now, right? i mean -- >> well, no. you can't spend, as i say, it'll change by the way. i mean, if you're -- if you're a producer, make any deal you can in the next six months. >> by the way, how good does the new squawk box set look? >> looks amazing. >>

coming up on "the open" with jonathan ferro, barry knapp will be joining him.s in people able to hold onto that 3000 level. above that yesterday. seeing volatility in the futures market. part of that will be earnings. procter & gamble on the upside, mcdonald's on the downside. the upside, mcdonald's on the downside. always taking a look the action in the cable market, down .4%. apparently there might be a bill withdrawal if conditions are not met. some buying coming into the bond market. yields lower. happy tuesday, everybody. happy brexit, everybody. this is boris johnson's next last chance. watch for the vote at 2:00 eastern time. this is bloomberg. ♪ jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ jonathan: adam neumann stepping down from the board of we work. 30 minutes until the opening bell. here is your tuesday morning price action. equity futures firm or four points on the s&p, up another .1%. in the fx market, the euro weaken the dollar stronger. treasuries bid. yields lower,