well, mess, ge.x: at least they did something. compare that with tesla. we agree with must compared we support musk. until the regulators come in and say not so much. david: there's a lot more to report out, but right now there is reaction of the board during its job. this is not the first time we've had a problem. we did make the money we thought we did an the board kerley said enough is enough. we will lead independent director. you take over for the time being. especially who- is going to want to take the chairman job considering elon musk is coming back in three years? david: it's also why you have strong outside directors. around, he's a turnaround artist. you turn to them in times when you have a little trouble. alix: we will be talking but the threat to shore. emma chandra is here and she has first word news. good morning. emma: president trump achieve the trade deal he wanted. the u.s. and canada have agreed to scrap the 24-year-old nafta and include mexico and a new three-way deal. among mod

ge forrer the dividend. it has been cut. do you think the rest of the dividend is safe or not. >> even with the reparations ealth care companies pay out less than industrial. it would be cut even if flannery was still in safe n it i safe. >> the plan as it stands now is to spin gef.ealth care do you think that is still in the works? or is everything on the table right now? >> i thinkg,enerally speak the idea of keeping aviation powerroenewables isbly what they are going to stick to. that being said, the particulars and how they execute that plan mighting odd. ge cast that's rumored to be on the block. if they can do a comcomposite deal where they get rid of ge casse and some of the lights on there even though it is a good business andn aviat that's a possibility that guess along with aviation. >> if you are an investor with a long term time horizon, is this an entry point in the stock or do you thinkt needs to lower? >> i think right now at our four-star we are saying i can be better than the market. but at

we're talking ibm and ge coming up. >>> we also expect to hear from ge's former chief, jeff immelt the energy stocks at bear best after oil jumps 11% or more in two months, it's happened eight times since 2010 new field exploration tops the list, followed by cabot and pioneer. for more, go to cnbc.com/kensho. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. >>> nasdaq is down the worst today, down 2% technology names are getting hit hard interest rates one of the reasons why the overall market is down. rates hitting a seven-year high today. the ten-year about 318 did get north of 322 so we continue to watch all of that we're also watching shares today of big blue. ibm, those shares are under pressure moffett nathanson initiating

we'll check with bob wright later on speaking of ge, for once, ge is at the top of that list.. making my dreams a reality takes more than just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. >>> tesla up almost 17% takes you back just to thursday levels, almost erasing friday's losses ron baron will be on ""squawk box" tomorrow. haven't gotten his take on the drama that surrounded the company and onel musk. we'll get stop trading in a minute dow is up 217. oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping

ge is now up 7%.out industrials, is ge in its own category with its own troubles that does not really read through to any of its competitors? >> yes, speaking to investors today, people have said that ge is a very individual story, it has been dealing with its own issues over the years, with the turnaround. just not quite coming about. caroline: the power part of the business has also been an issue. >> power can be a market-driven issue, but it is much more than that. is, the power industry, that why they are getting the $23 billion charge and it can be an issue, but there are companies in the industrial space that have been able to capitalize that ge has been floundering and struggling to get ahead. scarlet: ge is only one of 100 72one best ge is only members, and it is no longer in the dow. so it is hard to say that where ge goes, industrials will follow. sarah: i was talking to an analyst today and she pointed out to me that when you look at industrials as a sector, it is made up of 12 industries.

stefanowski: let me start with ge. i'm not sure who ned met with, the ge left because of the worst economic policy for eight years under an malloy. we need to get the corporate tax rate down to keep companies like ge. ge left because of horrible regulatory pressures. ge left because when dan malloy came out from the final meeting with ge to convince them to stay, he started the powerpoint presentation with a picture of a jet engine, and unfortunately it was a pratt and whitney jet engine, not a ge jet engine. ge left because they did not have a businessperson leaving the state. look at what charlie baker has been able to do in massachusetts. we need a businessperson to run the state, not a politician. let me touch on emphasis for a for a -- on infosys minute. i'm not sure if you saw the new york times article, mr. lamont, infosys made $2 billion last year and he asks the taxpayers of connecticut to pay them $14 million to incentivize them to come to connecticut. infosys was slapped with a fine for bringing people in il

taking a look at ge.f course, the company slashed its quarterly dividend power division is a mess, to put it lightly, i think. and stocks have been all over the map. >> down so much. prism of etfs, even as much as the market cap is down, it's still a big part of the indexes of the industrial sector, etfs as well. take a look at where it shows up in terms of etfs with heavy weighting. one davis u.s. select fund it's a stock picking fund not a pure index the fund has done quite well davis folks are pretty kind of disciplined big cap value investors but obviously this one hasn't worked out. that fund has taken a hit recently it's about flat year to date in the standard industrial sector fund xli is the spider. it has about 4.5% waiting in that fund overall it's been weak another one, vanguard industrials, very similar sector fund has a slightly smaller one. but the one i wanted to talk about that shows up with large waiting is the oppenheimer ultra dividend it's a billion dollar etf. not small. it had 4.5% w

that was cut in half a year ago, just where ge is heading and what a new ge will look like are questionsnue to lingerment. >> it was not communicated well to the market. it's a huge disappointment to investors. how long do you let investors twist on the fine, but 13 months is a short window. >> i want to talk about what's happening with european markets today. we are seeing big moves in italy. let's recap what's going on. ftse mib, now trading at the lowest level it's traded since april of 2017. more than a year and a half as the bank selloff continues to pick up speed. yesterday we were talking about the proposal put forward by the italian government, 2.4% that proposal at odds with what europeans were expecting overnight we had some positive comments from european commission by saying we're willing to engage in dialogue with our italian counterparts, even though what they submitted is not compliant with the stability and growth pact. there is time between now and october 15th for things to be reassessed we also heard from deputy prime minister dimaio who said the markets have been terr

costs are rising. >> who is the competition, ge? >> no, disney sure hopes it's disney, right?re a lot of others that hope amazon hopes they're the competition. i think that that's going to start to way on disney. >> that's not adventure. >> i know. >> it's like a boring staten island ferry ride. >> it's like all the presidents at disney. >> it is. >> which happens to be my favorite ride. >> it's not a ride at disney roscoe's turn. >> i think i'm beginning to see how the desk is setting up here. amazon is the biggest competitor and they always say amazon should buy cbs to compete with netflix. >> we always say that? >> one guy. >> you sauls auls say it. >> maybe netflix boats them to the punch and buys cbs i put a $500 price target on mine. >> you lured me in i thought amazon was taking out netflix. i was going to rain on your parade and i kind of like that cbs needs a big brother. >> ironic with their show. good. >> well -- >> steve has a nice -- >> he goes higher than you. >> i would love your adventure to happen. >> see >> shared adventure. isn't that nice? >> i'm going to s

he had $700,000 in ge stoke was going to retire on.he had to go back to work because he's down to $80,000. that's a case of a board asleep at the throttle and a leader who wasn't held accountable. maria: the kavanaugh mess that was a circus is one of the reasons republicans are getting fired up. i think there has been a change in terms of what people are expecting in the mid terms. what do you think? >> i think we'll keep the senate. i think it will be 54-46. the house, this behavior by the democrats, i think there is a better than even chance that if we don't hold on, we'll have a 3 to 4 seat majority. maria: you see a lot of growth stories in your career. where do you see the growth. a young ken langone when you first graduated college, where would it be. >> only go to a job i love doing. i say to kids, would you pay to go to work. if you say yes, i would pay to go to work, that's the job you want. because you will do well. maria: got to love what you do. >> number one, healthcare. thank god the break through. libby announced a drug

has been named ceo of ge.ou make of that, and will you have competition to reckon with in terms of turbochargers? olivier: i will not comment on ge's particular issues. i want to ask you if you are disappointed that the stock is trading down 7%. where do you feel the fair value is or this -- for this stock? olivier: we have a lot of churn into investors on the first day of trading. we have been selected to be part of the s&p 600 small-cap, so we willof trading. something settle down as we announce more about the business. guy:business. olivier, can i talk to you about supply chains and trade and the deal between mexico, the united states, and canada? how big of a deal is that for your business? you worried about how supply chains will be affected when we see how things are going? what do you make of the deal done with mexico and canada? olivier: this is obviously something we are following very closely. when you look at us, we are a global factory -- we are a global company. we pretty much produce in the regio

this is different because ge is a turnaround story and danaher fit together and made sense and ge don't fit together so well with all the parts but gets the benefit of the doubt on day one. >> how long is this likely to take too early to buy the stock expecting that maybe in five years it would double? what do you think? >> well, under mr. flannery i would say more than a year and he wasn't given a year so, you know, certainly it's going to take some more time to identify a strategic direction, he gets a chance to reset the company, maybe health care is not going to get spun off or maybe the parts sold make more sense today. so he getsa chance to take a look at the company. that takes several months right there and to start implementing his vision takes up to a year so it's going to be a while, but in the meantime, they can set reasonable financial expectations and meet those expectations which will give investors and analysts confidence that they know that they're on the right track. >> jim, i think it's only fair to point out he did inherit many problems and only had a year to do what

maybe ge is going to be there too.e adviser peter navarro is going to join us on america's deal with canada we'll talk to him in just a minute let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. i'm ready to crush ap english. i'm ready to do what no one on my block has done before. forget that. what no one in the world has done before. all i need access, tools, connections. high-speed connections. is the world ready for me? through internet essentials, comcast has connected more than six-million low-income people to low-cost, high-speed internet at home. i'm trying to do some

power, renewables, baker hughes and ge all that have is collectively worth zero. we think that's too harsh. >> you think the dividends is any more at risk >> absolutely. our dividend assumption is we assume it goes to 10 cents on an annual basis when we talked to investors since the news came out, no one we've spoken to is expecting the dividend to remain intact. some people even think it could go to zero, but that's not our base case. >> if it does, what happens? >> i think a dividend cut has been largely factored in by institutional investors. so i think if you saw a clearing of the decks on the dividend, we get a clearer path from a new ceo on the higher financial flexibility. what that will be used for is a power restructuring, i think people will like the message they'll understand why the earnings and free cash looking out two years should see a sharp increase >> i agree maybe another cut, another cut to the dividend is potentially factored in and/or expected by investors. what about an outright extension if it does go to zero? is that any sort of change in

. ♪ ♪ we bring good things to life >> lately ge shares have brought good things to investors and thert master said there's something in the charts that point to more gains >>> plus -- be very, very quiet. >> the yield because with the backup rates, a number of dow stocks are orngspti big dividend yields and we'll tell you which ones the traders are buying >>> comments from president trump on the south lawn at the white house. let's join in. >> there was no collusion, no russia it was all made up by the democrats. they're the ones that colluded with russia. the democrats colluded with russia and frankly, the previous administration didn't do anything about russia when they knew that they should have yeah >> [ indiscernible ]. >> got to speak up look >> [ indiscernible ] >> i said that i was going -- i'm not making any changes you'd be the first to know i'm not making any changes >> [ indiscernible ] >> are you concerned about -- [ indiscernible ]. >> i am concerned about it i don't like hearing about it. hopefully that will sort itself out. nobody knows anything about it, but there's

so what is the future of ge? to a lot of senior ge executives, former, what do you think is going to happen. here's what they're bracing for. they're bracing for this guy to radically transform the company, not just cut the dividend to near zero, one penny. they are looking at a breakup of the company into three of the major units, aviation, power systems and health care. they are looking for either two things, if you can maximize shareholder value. they think shareholder value is well above $10 a share. they still have major technology and infrastructure, those are the three main units that they can make a lot of money with. okay. so what could they do? they can sell it as separate companies. the other part that they might do is sell it to private equity. i think those are the two things you are going to be hearing a lot over the next six months. does he radically change it, does he -- you okay there? liz: i'm just amazed. we're at new session highs, 419 points. ge no longer a dow component. >> that's part of th

ge is probably not as bad as it seems. probably had bad luck and cvs is probably not as good as it seems and probably had good luck so in the future ge is probably the better investment and study show stocks that go out of the dow jones actually do better than stocks to go into the dow jones. host: regression of the means when it comes to politics? guest: every president ever elected including the current one has lower popularity rating at the end of their first term than at the beginning. so we go in and for some reason or another we think this person is a god that will save us all. we think this is the greatest politician and that's how they went. we think they are great. they come in. well, we kind of missed judged them. kind of lucky and their whatever and then four years later we come to our senses and say they are humanlike as and even our current president started out with low ratings and they got lower. true with every single president. host: what do we do? guest: not be disappointed. one example i tell my students

that's what ge is going for. abbott labs, others, have been such great performers and are in massive boom market mode aerospace, the tail winds are so strong that boeing just hit another all-time high today despite the fact that they could be one of the biggest losers if the trade war with china continues. doesn't matter there is so much demand for aircraft worldwide that the chinese would have to be insane to cancel orders the wait list could be up to 20 years. people in the developing world we will thinker, more and more can fly. that's why general electric is so desperately needing a weatherman hopefully larry culp, the new ceo, knows which way the wind blows. what else? right now we are close to full employment in the united states with no sign of slowing. the federal reserve doesn't mind full employment. when the economy is this hot they start worrying about r runaway wage growth. it could be a major driver of inflation. that's why they have been tightening they want to head off the cyclical tail winds of hi

ge really turning around.ne penny per share, the new ceo outlined a new reorganization plan that could see $3.9 billion a year. .oca-cola up 1.4% him -- finally, huge movers relative to earnings. let's look at under armour. 21% short interest, they did eat in a huge way. putting up 25 cents per share. the internet services company up 14%, they also beat and the shares upgraded to a buy. their red dead sales have surged. some bullish action here. tremendous bear selling pressure more recently. you for the rundown. we are joined by the senior editor and lead blogger for bloomberg markets. mike, at what point do earnings proceed? >> we could see a little bit now. there is obviously a lot of uncertainty about the midterms. hard for the market two sets out expected winners and losers when they do not have a keen sense on what the outcome will be? there is a sense of benefiting from these gains in the house. companies are believed to get the pricing pressure if the democrats win. highly regulated companies, banks, e

two things that were so important to ge.iolet avenue to be of little people you haven't honestly balanced-budget so we don't go through fiscal health every two years. you can't do that it isn't going to take $11 billion out of the budget, details to follow. that's the wrong way to go. for sam do is get to the balanced budget, no income tax, hold the line on taxes, reduce spending in a serious way and make sure the business community knows we have our fiscal house in order. griebel: i will take the g example and maybe play that out. had it one the governorship in 2010, i said during that campaign and that's it all the years i've been in the state the government has to be the chief marketing officer for the state. what i mean by that if you believe the old adage that you next best customer is your current customer you have to spend a lot of time with employers were here. our legacy employers as well as all the small businesses. make sure you take the time to listen to them. make sure you take the time to tell them they are lov

in the meantime, ge, widely held stock no longer on the dow, a lost its status but ge shares you could call this soaring even though it's 93% gain, up 8% after the ousting of ceo john flannery took over for jeff just over a year ago. ge decided to replace flannery with outsider and board member larry. shares of ge are on pace for their best day since march 2009. this gain is on a trading volume of 262 million shares. by the way it's not all good news. the company says it will miss 2018 profit forecast but the rally continues. let's get to business reaction to the trade deal between the u.s. and canada and mexico, specifically between the u.s. and canada. streaming and minute by minute we now have united auto workers presiden president issuing a statement a short while ago. here's what they're saying. nafta, while it has been disastrous for the working people in u.s., canada and mexico, the uaw is going to withhold final judgment on the new deal until all pieces are put in place in order to determine whether this agreement will protect our uaw jobs in the living standards of all america

you do you know what ge left? it was because of the worst economic policy over the past 10 years under dan lord. when he to keep the tax rate down to give companies like these here. they left because of horrible regulatory rushers on the business. they left because when dan malloy came out for the final meeting to try to convince them to stay, he started with a powerpoint presentation with a richer of a jet engine. unfortunately, it was a , not aitney jet engine ge jet engine. look at what charlie baker has been able to do in massachusetts. we need a business person to run the state, not another polet me touch on emphasis for a minute. to brag.te likes made $2 --infosys billion last year and he asked taxpayers to pay $40 million to incentivize them to come to connecticut. the company was slapped with the largest fine in the entire country for bringing people in 1 visas, putting people in connecticut out of work. they are turning people from overseas to come in and putting our people in connecticut out of work. . i

so in the future ge is probably the better investment. studies show two out of the three stocks that go out of the dow do better than stocks that go into the dow. >> regression of the mean when it comes to politics. >> gary: every president ever elected has lower popularity ratings at the end of their first term than they had at the beginning. so we go in, we for some reason we think this person is the god who's going to b save us all. the greatest politician that's ever been elected. they come in, well we kind of misjudged them, and they're lucky in their speches, kind lucky in their demographics, four years later we come to our senses and we say they're human like us. and even our current president started out with low ratings and they got lower, true of every president. the thing is to not be disappointed. one of the examples i tell my student is we're searching for soul partners, and who knows what we're looking for, i call it pizazz. so you meet somebody maybe at a convention like this. they seem like the best person in the room. do

if you reflect back on ge they were one of the biggest a natural institutions with ge credit. ceo at nci and they were our biggest lender. going into the other question, tesla. that would be a tough one to be on the boardgoing into the othe, musk is truly a genius. he has a differentiable internet -- personality and intellect, cannot be translated to a corporate overlay? solarcity, i did not see why the merger of that company on the automotive side was necessarily in the shareholder's best interest. i don't mean to be great call but if i would have sold them -- i don't mean to be critical, but i would have but sold them. and you don't want to see your ceo on television smoking pot. as a board member that would have upset me a lot. and the board appears to be moving forward. alix: the question but the sec ruling is why would anyone take the chairman job if elon musk could come back in three years? if they called and said would you become an independent chairman for three years, maybe more, what would you say? >> i'm a gm guy so i would have said no, but you are asking a broader

ge had talked a lot about their net debt target. some of their rivals their average with companies are dan herne you tx, they way above some of the a rated peers. really interesting to see how they deal with the deleveraging. ourie: taylor riggs with stock of the hour. this hour it is general electric. thank you. 30 minutes until we close out the european markets for the session. doing a little bit better than some of the other markets. the dax had a tough day. the market i want to focus on his foot demand. .- is the ftse mid we will talk about that in the next hour. this is bloomberg. the closes next. -- the close is next. ♪ jonathan: 30 minutes left in the european trading day. from london, i'm guy johnson. vonnie: i'm vonnie quinn. this is the european close on bloomberg markets. guy: here at the top stories we are covering from the bloomberg and around the world. blinks. amazon bows to political pressure and delivers a prime pay rise to workers in the united states and the u.k.. italian markets have another turbulent day but sto

it is not i want to make ge better. there is a personal incentive. guy: ge is injured nearing. they need to fix? >> a lot of the focus is on its power unit. chargere writing down a on the power unit and it has been struggling. decline.een revenues this is also the unit that adds the most so sales -- to sales. because it ist not doing well. larry colts is going to turn this around. vonnie: thank you. our stock of the hour, ge. it was jobs day. let us check the markets, indices lower, the dollar index a bit lower. david: from new york, i'm david westin. welcome to balance of power, where the world of politics meets business. we're going to head to washington on the confirmation of judge kavanaugh. presidential elections in brazil. the jobs numbers out this morning. let us start with you. i watched that vote. what happens next? >> a dramatic moment on the senate floor. everyone is watching susan collins from maine, the republican. she is going to announce at 3:00 p.m. how she will vote. she voted yes to advance last year's health care bill and voted no against the final bill. she

maybe i'll give you a pass on ge maybe not. we'll see where the stock goes from here. >> okay, thanks for having me. >> always good to have you, bill nygren what do you think of some of what he said >> look, i like the way he's looking at netflix and he's looking at it on a subscriber basis. to stephanie's point -- >> value stock >> look, i'm not going to dispute -- >> value stock >> no, it's not. it's not a value stock come on. it just isn't. the conversation we're having about that is short term versus long term. it has a great growth trajectory ahead of it. i do think it's sentiment and the other thing i do disagree about is there is competition out there. for him to say, look, they can just raise prices willy-nilly, people will start to look away they have successfully done it can't do it forever. can't do it forever. >> there wasn't any competition. >> he makes the case it's a value stock. >> it's hard on a subscriber basis. >> you've been the same way with amazon, though >> absolutely. you can own one of those names and w

maria: we knew ge would cut the dividend.ear. >> not much reaction so far. maria: 12-cents to one cent, the point in keeping a dividend if just paying a penny a share is what? dagen: you don't want to completcompletely eliminate a dd because it might force some portfolio managers based on their guidelines of managing a portfolio to remove the stock all together from a portfolio. so you don't want to give investment managers a reason to sell it outright. so by keeping the dividend it might meet the investment parameters. >> the dividend is de facto gone but it's there for the -- maria: it's still in the basket of difficult depend payers. dagen: even at a cent, a cent in percentage terms is a lot more as the stock gets lower if that's any consolation gl the c. >> the silver lining. maria: the market value was $400 billion back in the day. now we're down to below $100 billion in market value, mike. >> it's scary to see how this slow dribble down in the stock, down almost 50% in the past year, but i think investors more and more

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a rough year for ge. turn things around the company comes out with its earnings tomorrow and everyone watching that. morgan brennan especially. she joins us now with what we can expect morgan >> yeah, tyler, probably going to be a noisy quarter. three big things that are in focus for ge we'll get those numbers tomorrow morning. first comment from new ceo larry culp the first outsider to run ge he tock over abruptly at the start of the month a highly respected ceo and expect an early outline of his plans to accelerate a turn around the details, though, probably won't come until early 2019. that said, number two, guidance. more pain and power means ge will fall short of previous earnings and cash flow guidance. the street had already priced in a miss with 88 cents the current consensus but cash is going to be key, especially since that's already been changing dramatically just over the past two years. that brings us to number three the dividend is culp going to cut or suspend it given the laundry list of ch

ge, down 8%.10% today we are watching that mike santelli is back with what the afternoon might bring, along with facebook earnings one thin that struck me is consumer confidence. people are not rattled yet about rising rates or declining stocks. >> nope. that's not going to be a leading indicator but it would be coincident with the economy feeling softer with the stock market people really taking it to heart the levels we are at in the s&p 500 we hirs first hit them in the history of humanity around thanksgiving last year you are still working with 11 months worth of a round trip and not necessarily cutting into muscle yet. >> that puts it in perspective there are data points being circulated that we see a big selloff, a pullback in stocks this month that you tend to see in end of the month rallies and repositions. >> we are down 18 of 24 days in this month not two days up in a row you are kind of sold out for the short-term and the end of the month. you have all of these mechanics. we talk about

pete, we'll do trade first >> i'm going to do ge.ts in this >> it's in single digits it's going lower than the 9s i think it gets in the 8s, maybe the 7s. >> is there a point where you would buy it >> yes, probably around five >> thank you . >> doc >> cve it's a calgary based energy provider, so oil, natural gas, it also does chemicals and so forth, big call activity in this one, $8.60 stock >> i think you see it go to at least 11.50. >> you think the bounce in fang is real? >> amazon is back above 16, remember it went below 15, that's 1500, of course that's $74 today >> we see the recent low in amazon >> there's no reason to sell it down now, and there's an expectation that it will have a great christmas season >> didn't we have someone say it's dead money? >> next up, 7% >> apple's up 3%, going into the number tomorrow. >> that's if you stutter when you see fang. >> jpmorgan, financials had the right to buy it this week. >> how about the financials, is that a broader space you want to be in. >> a lot of us are in that jpmorgan look

ge needs to do to get investors back into this stock. especially that one third of the retail side? >> it starts with establishing a credible base. and the company basically did not give any update toward its guidance for cashflow, which has been horrific, or its earnings power. the power business, which is one of the primary segments had 11% negative margins they probably don't know larry even suggested that power and aviation, the two principle businesses were not his background it's right now working for power, they still have to work through ge capital i think establishing a credible base is the first test of what you have to do from there. coming up with a plan that's plausible. right now we don't know what the plan is, the company is pursuing the sale of its health care business and its owner ship of baker hughes, for reasons that seem obvious that they just need the money, these are crown jewel assets why are they pursuing this there are so many unanswered questions, it's hard to establish those questions. >> is it not some of the

have earnings from ge. >> ge adjusted earnings at 14 cents.ividend cut from 12 cents a share to 1 cent a share starting in 2019 that change will allow ge to retain 3$3.9 billion of cash per year compared to the prior payout level mike, if you totally get rid of the dividend, do you have to do something to bring it back why keep a penny >> some investors have a rule. >> they can only hold it -- >> non-cash goodwill impairment charge of $22 billion before tax related to ge power. actual orders were up 13%. equipment up 22. services up 5. organic revenue up 1%. larry culp said after the first few weeks on the job it's clear to me ge is a fundamentally strong company with a talented team, but our results are far from our full potential. we will increase accountabilities across the organization to deliver better results. we are on the right path to provide a more focus the portfolio and strength in balance sheet. my priorities are positioning our businesses to win starting with power and accelerating deleveraging, we're moving with speed to improve

we've seen it before i think the most important issue for ge is about positioning. i think the things driving the stock move right now is that nobody is in the stock i think the shortage -- i talked about this looked at the positioning, the shorts are out of the name. a lot of big institutions lightened up that gives you at least a clear runway to react to fundamentals which aren't extraordinary but the bar is so low that agree with steve. >> is the stock out of the woods technically, carter. >> well, i mean, the first issue is when you have the long pro tracted down trend that's unending and then a gap. let's say you didn't know the news and didn't get the price axe. >> when did he get back. >> i invited myself back. >> i thought we were talking about this. >> i invite him back right now and he is here. >> anyway. >> anyway carder. >> just looking at the chart. >> rudely interrupted. and then the issue is let's say we didn't know the news and there was heavy volume gam on 300 million shares and you were sitting and didn't have a name on it. you would ask was someth

the firm says investors should reconsider ge given the company's new ceo.h the price target on the stock. stock is up nearly 2%. ge getting a lift at barclays. >>> also today, ford unveiling a massive reorganization that will include cutting salaried jobs. this all comes as part of a bigger plan to stlalash costs paul, i've got no smart questions for you other than what's wrong with ford what's going on in dearborn >> this is a company that has more questions than answers. the biggest question about this program is jim hackett has been the ceo for 17 or 18 months. why did it take this long to get started on something like this if it was so necessary why wasn't this done earlier people have been -- wall street analysts have been viewing ford as slow and indecisive this kind of reinforces that especially because this program was just announced on friday the actual cuts are not going to be implemented until the second quarter of 2019 which is six more months. by the way, you know, during that time if you're one of the more talented marketable ford employees, y

be sold i think this span uniquely is not going to set baker use in ge company is sold first.have tremendous -- they saw the magic, the magic that he delivers almost david bland likes magic he fought the two numbers in my head last week. >> how did he do it? did you have him over to your house for private viewing? >> he's not a magician it is entirely science fiction >> is he not even real person. >> it is a compassionate man he's a genius. my number was 35 and he said do you think he's 35 yes. he was in my brain he was in my molar i am talking about the fillings in my molar, they said he's 35 >> right >> while the russians are monitoring everything you say because they have that transition in your molars. >> they use the tiny dancers >> apple for the record said over and over again, please, that story is not true >> i know they did >> can i say this is astounding. larry culp, i think he's going to do the job. ge's behind even the worse industrial >> jim, i want to talk about dell which is not a story that we have revisited in while but one that are worth doing now there is a

next, it is out with the old at ge.asked whether the new ceo can jumpstart the embattled behemoth. this is bloomberg. ♪ this is bloomberg. ♪ haidi: it is 9:30 a.m. here in sydney. a bit of a muted response. mild positivity in the wall street session overnight. thatrelief than rejoicing the revamped nafta deal has been finalized. still a question over whether it can be pushed through congress. setting up for a mixed picture as asia gets underway today. shery: it is 7:30 p.m. in new york or markets closed higher. -- where markets closed higher. of course we saw the 11th hour agreement on the usmca trade deal. at the same time small caps ticket beating. -- took a beating. i am shery ahn in new york. haidi: and i'm haidi stroud-watts in sydney. let's get you the first word news now with jessica summers. confidencemeasure of returned to the markets as the u.s. and canada agreed to the new trade deals. is essentially a reworking of nafta. attention now moves to president trump's steel and aluminum tariffs, which are not part

market up 250 on the dow as we look at a big week ahead for earnings, apple, facebook, ge. >> that'sthe hour begins, with stocks raleigh. investors trying to regain their footing in the midst of steep losses for the month of october. >> one of the biggest tech deals of all time, ibm buys red hat for $34 billion. we have details. >>> plus global stocks are rallying as leadership shakeups across the globe are announced from germany to brazil. >>> let's start with the markets. bouncing back as we start another big week for earnings. a global rally, german stocks higher, merkel exits, brazil's assets are higher on the election of a new president. let's check in with the chief u.s. equity strategist at credit suisse and the senior portfolio manager at wells fargo asset management jonathan, you have been bullish and positive going into next year do you think we have seen the washout, the correction over with. >> i don't know if we've seen the lows and i hope that we have but if you're willing to hold for two or three months i think this is an incredibly easy decision to want to be long sto

a lot behind the scenes of ge officials, former and past ge officials in touch with both men.hat is interesting i think jack welch had three guys to pick for his successor which he would recommend to the board. connell: right. >> it was bob nardelli. connell: that's right. >> jane mcinerney and it was immelt. connell: that's right. >> if jack had his druthers right now it would probably be mcinerney or nardelli. connell: i'm sure judging what you're telling us. keep at it, charlie. one of these days you will catch up and break some of this. >> i'm not falling for it. i'm not -- whatever i get out, they drag me back in. connell: you have tremendous respect for those you compete with? >> i want you to know, i'm not going to take the bait. connell: wow. we really are living in a new world. puts his glasses in his pocket. >> i'm not taking the bait. >> we'll come back in a moment. charlie is back next hour. we'll see how he does there in terms of taking bates. connell: as we continue here this will be interesting. facebook being out with earnings. our next guest has a new novel, o

you know, he probably lost a lot of money in ge in the last few years.t only because of john flan flannery he put a lot of things into motion that, you know, larry is going to get the benefit of as we have seen already today up 7% it doesn't seem fair it doesn't seem like the ge way >> he never won investor confidence why? >> i think there was always a sense out there that there was going on another revelation, going to be anothershoe >> some would argue they wished they would argue as well >> no. i think the take away here is that this was still just too big a business in too many different businesses and they fundamentally it is not thesam business that the other businesses they werein >> i think it because lot of surprise that is even he didn't know about when they spun off the insurance business, you know, next thing you know they are holding -- john had nothing to do with that there are hidden liabilities that came back to bite them in the realm of $10 billion john ran businesses all around the world for ge he turned around. >> so larry is set up fo