and lots to and telling horse he's an auto industry analyst with evercore i.s.i. in london hi and thank you for joining us how would you describe what kind of executive was he. well he was extremely determined he has as we say petrol in his blood but he was determined to win car races he was determined to turn companies around 4 it was determined to deliver the best quality possible in the automotive industry and as you rightly said. in you know just now he was to create a false market you know today what do you think was his biggest success. why his biggest success was turning the fox market brand around from an almost bankrupt situation in 9093 when he took over the c.e.o. folks live in the company generated 40000000000 of revenues and a 1000000000 loss roughly this year we're expecting full time to generate 250000000000 of revenues and profits of more than 13000000000 what about his larger legacy aren't how much do you think he influenced the german and european auto industry is engineering a premium product in the automotive space and the way he turned 45 in a

. >> when we return, evercore founder roger altmann will join us to discuss trade war with china. plus more on the trade rally following the worst day of the year for stocks, we're seeing a bit of a turnaround. dow is up, nasdaq up 1%. meer, it got clobbered yesterday. "squawk on the street" will be right back ood at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. - when i see obstacles, i create opportunities. (soft music) - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [a

>> that was actually -- that was with evercore. that's really if all of the tariffs go through with his math he think they would have to take a $5 billion hit there. of course, there's a bunch of levers cook could try to pull here you know, you could absorb the tariffs. you could try to pass along some price increases. you could do a combination of the two. some people think if push came to shove he could move more manufacturing out of china, maybe to other places like vietnam. i would add that when i talked to cook the last time they reported earnings, at that point he said he had made no significant changes to his supply chain a fourth option could be you could lean on your suppliers to make price concessions to offset the tariff impact. we will see, melissa. >> josh, thank you josh lipton in san francisco >>> dan nathan, what do you think it does? >> here is the thing with the tariffs related to apple and getting an exam shon apple owns the high market in u.s. and samsung sells to a lower price point. to me with double the asp a

call of the day, evercore isi dropping the rating on the stock by two notches to under perform and cut the price target to $64 a share. it comes after square offered up a disappointing earnings outlook. who wants a crack at this? >> yeah. >> what i hear about this one is it is still too rich and the chart is bad. >> the problem you have here, i love square in terms of the long-term projection on what it is going to do but emerging growth is slowing and you have a lot of competition the question that investors have to ask themselves now, is the market saturated how much can they squeeze out of the base they already have how long will it take for other projects to kind of kick in? they did great selling bitcoin but it was a tiny part of their revenue it doesn't have any impact on it so as much as i like square in the long term, for here i think you have to stay wide. >> look, i think square is having an impact on small businesses and i think the total package of services including subscription services that are driver for at least 2020 revenues are things that people should get excited a

joining us now with more is senior managing director and head of the china research team at evercore. you for joining us. thought perhaps a real here because markets seem to like some of the noises that we got really starting with monday when trump talked about the china [indiscernible]that no one seems to think actually happened, but other signs coming from the chinese side about de-escalation. is this a little more real or is this back over the weekend we will get another more tweet and we will back to square one? >> tweets are not reliable indicators of what the president is inking or what the policy will be. we think it is clear that tariffs will go up on sunday by .he u.s. and by china a deal is nowhere near to be talk is noise. that is what it is, noise. tariffs arefar, the not having any dramatic economic impact. i am wondering as we get more towards october and december, and the december 15 deadline, when do we actually start to see a little bit more tangible economic impact? donald: you are exactly on the right point. the tariffs that the u.s. has done in july and september o

in the middle, we see those settlements from teva and purdue and we're hearing from evercore that wall street may look at $1 billion what they're guessing j&j may have to pay. the only company affected by this outcome dozen of companies named in lawsuits and their stocks could be affected, as well his decision will come around 4:00 and we'll bring it all to you. >> matter of fact, stay with us to talk about more of the potential domino effect of this ruling great to have you here so, you think no matter what this amount shakes out to, if any amount, the industry will remain under pressure. >> for a year. everybody will take what is decided in oklahoma and multiply it by 50, which is probably the wrong way to do it and then come up with some sort of settlement. but we've got numerous other cases working their way through the courts in different states >> we also heard numbers that say look at what happened with the landmark tobacco rulings in the '90s and to the effect of multibillion dollars how do we know which path or if all those paths we're heading down >> i think it will be time w

we have seen price targets upgrades from credit suisse, s, jpmorgan, suntrust, evercore, just to namethey listed an adjusted loss of 68 cents per share but came in with revenue of $867 million. coming up after the bell, top rival on the street, uber, set to unveil its latest result. susan li, i need to know your road map to all things uber. susan: lyft is a pure play. they only do ride sharing. they only work in the u.s., whereas uber is much larger. 70% market share here in the u.s. and they operate a lot more diversified companies and operations. not only do they do ride sharing, they also do uber eats, food delivery, they do freight as well, and now bikes and scooters. so we are expecting a much bigger loss for uber which operates in 700 cities around the world. this is close the another billion dollar loss in this quarter. revenue should be over $3 billion. there are lots of questions to be answered by this company that's almost ten years old. first of all, of course, path to profitability. we heard from lyft yesterday saying that peak losses are in the rear view mirror. really? o

apple could try to pass along price increases to consumers that, of course, risks denting demand evercore'sore concerned about levees hitting the iphone. the apple is hit with all potential tariffs. he says the company could take a hit of at least $5 billion to its bottom line, and that is real money, amounting to about 10% of the company's free cash flow on the other hand, we know tim cook seems to have friends in high places. president trump recently praising cook as a great executive and said cook made a great case about why competing with samsung would be tough if iphones get hit with such import tariffs. >> tim was talking to me about tariffs. and you know, one of the things and he made a good case is that samsung is their number one competitor and samsung is not paying tariffs because they're based inform south korea and it's tough for apple to pay tariffs if they're competing with a very good company >> now, some bet that apple, when it's all said and done here, won't be hit with tariffs. not wearables, not iphones, that it will earn exemptions. that's gene munster's view he doesn't

them $500 million or apple can pass on price increases to consumers. >> that risks denting demand, evercorels me, about levies hitting the iphone possibly coming december 15th. if apple is hit with all these potential tariffs, he says the company could take a hit of at least $5 billion to its bottom line but there is another possibility here >> that the u.s. government decides to except apple from these tariffs. in fact, president trump, remember, recently said tim cook did make a persuasive case when he argued that tariffs on his smartphones put his company at a competitive disadvantage >> tim was talking to me about tariffs. and you know one of the things, he made a good case, that sumle zasomesung is the number one competitor and samsung is not paying tariffs because they're based in south korea and it's tough for apple to pay tariffs if they're competing with a very good company >> at the end of the day, some analysts don't think apple will get hit with tariffs on its finished products. neither wearables or iphones munster tells me the u.s. government, he doesn't think, will ultimately

occidental came out today and it was so -- it was so negative that basically just says this was -- evercoree value destruction of the anadarko buy is region. occidental, that's the one to watch. they got a lot of debt there is too much oil coming out of the permian people just completely overlooked this chorizo deal they sold itself, a billion dollar company we're pumping too much oil and when we get rid of the natural gas and gone soon, to mexico and the lng plant, selling 5 million bcf, they'll do 10 million bcf export, still not enough to deal with the nat gas. >> from one commodity to another, gold today, barrett gold, high end of the range. >> they think they're going to be able to integrate barrick with randgold. they kept the symbol, it is bristow in charge. he's a magician. they'll be able to merge those two. there is a dispute between the two on a particular part of land and that will be resolved. i think gold can go up substantially. you have negative yields, there is no competition. >> who is we the journal today actually puts it on the front page, the prospect of negative yields

i think importantly evercore had an important point, global gdp growth, estimated to be about 3% butl ad for the world. they add -- china adds 1 percentage point to global growth it is about one-third, one percentage point of that 3.2 is china. if the china numbers come down, global growth numbers come down. the point is china is really sort of one of the main engines of global economic growth. if that starts to come down, we have a problem we have seen some individual stocks trading in hong kong that have just had frankly horrible months this is macau gaming hong kong, big property developers in hong kong, down 12, the hang seng bank, big bank, they trade -- they deal mostly exclusively in hong kong. finally just quickly, cafe pacific, their own employees may be involved in demonstrations, that's near a ten year low back to you. >> thank you very much we are getting some news this morning regarding potential u.s. china trade talks. let's get to eamon javers. >> duelling statements on tariffs and the trade war. this just in from the u.s. trade representatives office, a new statement

evercore outing the price target to 64 after the company issued q3 guidance yesterday.lways criticize half hearted downgrades i must call it a resolute downgrade. it's gone from buy to sell not settling in between and the share price target $101 down to $64. so a big change in june from them. >> yeah. i guess not to encourage be i the sale of caf area, either. >> yeah. >>> ubs upgrading survey monk to buy. it comes narrower than expected loss in the second quarter. ubs was bullish saying it had confidence that survey monkey will maintain more than 20% of revenue growth over the next five years >>> pinterest getting an upgrade from deutsche bank after beating q2 revenue estimates deutsche bank up against price target for the cheompany by almt 52% from $26 to $40. bullish call they cite increased confidence with pinterest business is faster than expected they talked about disparities strong execution i think they said the best in the entire space they cover within that social media universe. >> yeah. it's growing sales in the rest of europe and montization. people had a q

. >> the -- i think evercore -- is that what you're talking about, downgrading square, no longer a dealhe earnings, they reduced their 2019 to 2023 eps, cut the price target from 101 to 64 21% downside risk on that call. >> do you want to come back to one of my favorites of course here in terms of coverage, which is sprint, t-mobile, dish, not over yet, is it? yesterday, the attorney general of the state of texas added their name to the ongoing efforts of what had been 13 states in the district of columbia, now 14 states, including by the way, the first republican ag to join the effort to stop this deal, even though the doj signed off on it deutsche telekom the owner of t-mobile there is the look at texas ag. some are look at, at&t, texas-based company, he's the -- he's the president of the republican ag's association to which at&t has been a significant giver. okay perhaps that is true but at the very least this would seem to continue to have an impact on the timing of the deal and certainly still poses a real risk that the states and some fashion will prevail if and when they make the