honeywell doesn't have as many businesses as i recall >> honeywell is much better.well can break up, the climate control business is extraordinary. their aircraft business is just amazing. i mean, really, really incredible i just think honeywell is a very pristine company when that breaks up, it ll be worth a lot and the united technologies breaks with pratt & whitney and the aerospace business. >> do you think honeywell will pick up, and he's pushing for it and he said we're not going to do it. >> you have to read the analysis of the one division that honeywell has that the building and it's the best in history he is a huge backer of honeywell. obviously not that much of a backer >> and i expected based on reporting that united technologies once they conclude the rosswell collins deal that they'll move down. >> remember, 600,000 owned to china. >> and you have ge potentially and aerospace, they try to do something that shows the value there. >> that's a kindf unique situation. honeywell. >> turbines are in a secular decline. >> turbines. >> they call it turbines >>

think about those large conglomerates like ge, like honeywell. the list sort of transformed in

doesn't it, again, make it the face of greg hayes, in the face of darius -- from honeywell, saying,uys, look, we won't necessarily keep you in business we're going to compete against you. >> exactly jim, it's out any suppliers out there look at the deal with klx about a month ago boeing bought them. you're increasingly seeing those pp're being acquired or squeezed even further because you've got those three when it comes to avionics and services for commercial aircrafts. >> okay. phil, we'll keep an eye on shares of those companies you mentioned. thank you. >> thank you, phil >>> when we come back, of course, carl's exclusive with steve easterbrook. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. sc does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, ed by a satisfaction guarantee. if you

the apu area is dominated by honeywell and they've grown their bottom line by offering apus to a wide array of aircraft systems and services to the airline and cargo operators who spend billions on new planes. it's a lucrative business with healthy profit margins, which is why boeing ceo dennis mullenberg wants more of it. as he told us in april, boeing is actively looking to make deals that will grow its services division. >> so where we can find strategic acquisitions that complement our organic services, that's a top priority. >> reporter: last year 1/4 of boeing's revenue came from the global services division, a percentage that the company expects to increase, especially given the backlog of orders and the ability to sell more components and services to customers. phil lebeau, "nightly business report," chicago. >>> howard schultz, the architect of the modern starbucks, is severing all ties with the company. his departure is effective at the end of the month. the news sent the stock initially lower in after hours trading. andrew ross sorkin broke the story and has more from seatt

that's why i mentioned honeywell today. that's where the opportunity is.verall, the sector industrials i like them. >> the dow is up 115 it does it for us. power lunch starts right now >>> thank you, scott it's the big headline making interview of the day warren buffet and jamie diamond weighing in on the markets, economy and trade and why publicly traded companies need to scrap quarterly profit forecasts. >>> america is slapping china's zte with a billion dollar penalty in the deal to end crippling sanctions. wilbur ross announcing the news here on cnbc, but did the u.s. go far enough? >>> everything amazon, scoring a big win over the battle for streaming sports get your game face on, power lunch starts right now

then our guest host at the top of the hour is former honeywell ceo larry bossidy.hen we'll talk to former governor of florida jeb bush then later just gets better. we have commerce secretary wilbur ross. he'll talk about trade loti a.m. eastern me a t of actionable conversation right here on "squawk box. back in a minute >>> it's time now for the executive edge fidelity could be taking a big step towards legitimizing cryptocurrency an internal job posting seeking candidates to help engineer, create and deploy a digital asset exchange would be a big vote of confidence by large wall street firm towards cryptocurrency abby johnson has been a big proponent of crypto. she has been quite public about her support for bitcoin and other thing. >>> the number of homes meanwhile in america without a land line continues to rise. i'm going to keep my land line because otherwise the bots - >> you won't get any crank calls. >> and it causes them to call -- >> these are like illegal cheats that are working around -- >> yesterday honestly i was going to say put me in touch to talk

coming up, former honeywell ceo david cody says he is kiss -- ready to kiss 100 frogs in his new rolen sachs. you are coming in today, listen to our col tom keene and jonathan ferro. tom week, lisa will be with keene from 7:00 until 10:00. live from new york, this is bloomberg. emma: this is bloomberg daybreak. coming up in the next hour, bob steele, the perella weinberg ceo. now to your bloomberg business flash. analysts say the chinese smartphone giant xiaomi could end up being twice as expensive as apple wanted goes public. morgan stanley says it should trade at a premium because of market share gains and faster growth trajectories. morgan stanley and goldman sachs and the company could trade at more than 30 times is projected earnings, roughly double apple's valuation. the debut of the world's biggest maker of electric car batteries has produced its third billionaire in today's. the chinese company known as catl rose 10% in its second day of trading. that pushed the net worth of shareholders pass the billion dollar mark. the founder and his top aide became billionaires monday. pub

last night they found a butane honeywell lab in a home about 25 minutes outside. it is a concentrated form of cannabis. the two men checked in with suspicious burns. while searching the home and they say they found a melted garbage can of marijuana and hazardous materials. both suspects are still in the hospital recovering from third- degree burns. >>> privacy protections for all california. legislation signed just today and what it means for your personal data. >> a red flag warning will be up tomorrow night at this time tracking some heat that could be a real issue for areas in the hills. we will see you back here with >>> first to gunfire in the east bay tonight as officers test technology designed to curve freeway shootings. >>> welcome back. you may hear gunfire tonight along highway four as authorities test out a new shot spotter detection system. >> it's all part of a new effort to reduce the number of freeway shootings. >> officers will be five shots along highway four from about 11 thursday night until 4 friday morning. >> it's a combination of fire and b

looking for a good wedding present a vacation the honeywell bank the perfect.r that we come to the end of another shot now don't forget to friend us on facebook or check us out on instagram me and the rest of the crew here you're all next as always thanks for tuning and we'll see again tomorrow. on the next edition of your remarks looking for a parking lot cologne based artist nick you know if you cannot has a passion for truck refuse their risk especially when the coach is in tough sometimes. using image editing programs he turns them into colorful shops that almost no contest a portrait of a truck driver ties the work together. next time on your mike's. take it personally with the wonderful people and stories that make the game so special. to. pick. up. thirty minutes. and i think one day this war a cruel and unjust war. and certainly all citizens of ukraine every man woman and child in. their homeland if the enemy invades. questions is this. global news that matters. d.w. made for mines. time for an upgrade. on calico furniture grows all by. us with. poor de

honeywell is planning to send the manufacturing work for thefn turkey. while turkey is a member of nato, it is on a concerning path of crumbling democratic norms, and it's in the process of purchasing a missile defense system from russia. that's not the kind of place where we should be manufacturing critical components for one of the most advanced war-fighting machines in our arsenal, particularly when we have trained, experienced, talented, patriotic, devoted american workers in south bend, indiana, who want to continue doing this work, protecting our men and women, and keeping our nation safe. what's more, if the u.s.-turkey relationship deteriorates further, i'm concerned our country won't have acces to a critical component of our most sensitive aircraft or missile or radar. we don't currently know what future threats will emerge to our supply chain. this congress and the american people should know the answers to those questions. i believe my provision will help us get to the bottom and find those answers. another provision i authored that the senate

looking for a good wedding present a vacation a honeywell bank the perfect.r that we come to the end of another shot now don't forget to friend us on facebook or check us out on instagram from me and the rest of the crew here you're all next as always thanks for joining and we'll see again tomorrow. on the next edition of your marks looking for a parking lot cologne based artist nicolo if you cannot has a passion for trucking revue merits especially when the coach is in tough sometimes . using image editing programs he turns them into colorful shops that almost a painter a portrait of a truck driver ties the work together. and he joins it's time on your next. all that remains is rubber band in the syrian city of rock. it was liberated from islamic state in october twenty seventeen now the city's former residents are slowly coming back. to the city they once called home returning. fifteen minutes w. . how the germans came together in one nation from shall the monument to chancellor although from bismarck hints the history of the germans has been shaped by grea

one more is to watch is honeywell.got kicked out of the dow back in 2008 if you look at that timespan, honeywell up honeywell has outperformed ge and the overall dow. and as we look over at the dow jones industrial etf, the diamond so to speak, it will be something we'll watch those particular shares do somewhat better in terms of the overall scheme remember, something just to keep an eye on with regard to, you can't make a blanket statement on whether the dow kicking a stock out is going to have that market effect. back to you. >> dom, thank you. >>> when we come back, a rare interview with the ceo of raytheon what he has to say about the state of defense spending, and what he discussed in his meeting with the president yesterday >>> shares of starbucks down kevin johnson announcing some store closures and weak guidance what he has to say about the future of the coffee chain e r s rsdasie y nc july of last year. hi! are you two getting along? oh, yeah, yeah. [ hiss ] [ gasps ] [ birds chirping] ♪ no matter what you ar

honeywell, 3m and emerson, they have substantial business in china. and all of those stocks have been hurt though continue to get hurt for a little whaile as the trade war continues. but you need to know the truth as i have been telling you for ages judging by the queue for boeing planes. put it all together and i think the same goes for the u.s. economy, china needs us. more than we need them i am going to repeat that because nobody believes that in the mainstream media china needs us more than we need them it is "mad money" and stocks can go lower anyway. we just saw how easy it is to close zte. we are the winner. one wild card. well the chinese risk boycotting apple, that is a trillion dollar question more than 1 million chinese in some way work on apple's product. what is bad for apple is bad for the prc. the chinese economy depends on our market a heck more than we depend on those. i think president trump will take the pain. our economy is strong enough that he will let boeing and caterpillar, and united technologies get hurt. same for proctor an

keen to form this coalition and call upon all other political parties to join us also we call for honeywell meeting with all of the political blocs to rid the country of its current crisis. still ahead on al-jazeera i will tell you what happened when protesters tried to stop a bus carrying migrant children near the us mexico border. i told. me today the weather sponsored by qatar airways. hello and welcome to international weather forecast we begin in europe plenty of showers across eastern areas will trust of low pressure generating some really intense thunderstorms and those thunderstorms extend across other southern parts of southeastern parts of europe so you've seen some big rainfall totals across parts of sr the through into turkey over the last twenty four hours those central areas are generally looking fine plenty of sunshine around but again those high temperatures generated some quite severe storms is cooler and fresher further towards the west just eighteen degrees there as a high in london and then as a move the forecast on the twenty four hours not a great deal of change expect

think about those large conglomerates like ge, like honeywell.he list sort of transformed in the last couple of months. finished products essentially were excluded from the list but manufacturing parts and supplies were left on there we're combing through it and will get you more details on the economic impact of that list could be it seems the ustr has maid significant adjustments to remove finished products in favor of those manufacturing parts. >> a lot of technology in here, too. kayla tausche, thanks. >> joining us for a closer look at tariffs and their impact on the markets, john is chief investment strategist at oppenheim are and david rosenberg. morning, guys. >> morning >> coming off of what we had happen between trump and trudeau just days ooh given what kayla just said about the percentage this affects on total trade between these countries, when would you get worried, if at all? >> i would say that i already am worried. this is starting off maybe as a skirmish and there's too many unknowns it's so uncertain. the assumption is the rest

that can lead to great wealth our shows identification with stocks, stocks like apple, chipotle, honeywell, bristol-myers. we have tried to leave behind the so-called new ideas or hot ideas and instead to give you themes themes that i hope i can make come alive with the analogy, sports, whatever so you can do the homework on them things like living longer, through healthy eating i have written many books. i have got to tell you, that "get rich carefully," is designed to be this new show's companion. a lot of what i talk about in the show i am cognizant that the market is hard. and you have time burdens and demands. you may be bewildered. i am not just okay with index funds, but insist that you use them put $10,000 in an ira. i would vastly prefer you to invest in index fund than mutual funds. managers move on records can change, and pass performance is no guarantee which brings me to point number one. i am not a shill or an oil snakesman for individual stocks. i am a believer in the asset stocks i do want you to have what is known as exposure, that is a technical term, to the stock market

they bring more suppliers under their umbrella if you will and increasingly come head to head with honeywell and united technologies >> trying to deliver one solution we want to ask you about this dog dying on the delta airlines. what do we know? >> we don't know a whole lot we are hoping to get answers for r the next week or so. the family's attorney says they'll be performing an autopsy for the dog so they can determine the cause of death their offer was not accepted the family is doing it independently. boeing once again apologized for this incident. >> something else with the airlines there are about 24 or 25 cases where animals died in airlines in airplanes, commercial airplanes last year. it does not happen it does not mean every case that something completely wrong >> why are we hearing of this one because they are suing >> they have not sued yet but they went to an attorney and to the press, therefore, you are getting more attention nobody knows what happened with this dog or it may die of natural causes we don't know. >> where are animals are not transported when they are not carrie

that's coming up >> reporter: we're in chicagoing and boeing taking a shot at honeywell and united technologiesetails on the rivalry coming up >>> i'm wilfred frost on the trading floor of barclay's bank in midtown, new york, exclusive interview with their ceo coming up as "the closing bell" starts right now. ♪ >> hi, everybody, welcome to the closinbell what do you think of the walk, wilf i did the walk >> i couldn't see it, but i've been told you were doing it, and i need to watch back to definitely have a look at that, and why i'm happy to be here becae as you enter the trading floor, there's two massic flags, a u.s. and british one next to it, so i'm looking forward to speaking to the ceo coming up. >> well, this better be a good interview, i mean, you're there for the whole hour, okay, we got to do this remote thing, we were in the boxes, so, you know, i'm just saying, let's deliver the goods, okay? >> we certainly will it's a great time to have jes on not least because their trading performance in the last quarter was better year over year than some of the u.s. banks of which some of thos

wilbur ross to the conversation in the 8:00 hour a lot to talk to them about and the former ceo of honeywelling to be our guest host a lot of big names commenting on a lot of big issues this morning. >> we'll look forward to it. a huge -- it's bigly, it's a bigly "squawk box. andrew, thank you. >>> joining us is mark travis, and i want to talk about small caps, the domestic economy and your picks in a minute but i can't not ask you about this buffett and diamond news. you're a fund manager, i'm sure you look at this do you think that companies should take their advice and end quarterly guidance >> well, brian, you and i both know it's a silly dance people go through every quarter you know, they whisper a number then they lower a number and they jump over a number and then the analyst community claps for the number so, you know, i think there's probably some long term merit in what mr. buffett and mr. dimon are proposing. you know, i think it goes really to both sides of the street though, brian. i think when i'm -- you know, i glance at the article, i know you have read it and i have listene

all these companies on your screen from deere, utx, honeywell to china, it's not a surprise to see them lower in your portfolio. if you like them as good companies, could this be a buying opportunity? want to look at the other side of the trade here. industrials, materials are the worst performing sectors in the s&p 500 if you want to go shopping. so where does this lead us? this news breaking right now. washington is bracing for a new wave of waivers as the so-called trade dispute intensifies. fox business learned that the commerce department is really being inundated by requests from u.s. companies, everyone from solar panel makers to pipeline manufacturers, chipmakers, begging for exemption from president trump's tariffs. we have numbers on this. congress has received more than 1,200 applications from just steel consuming u.s. companies, demanding waivers from the steel tariffs saying we need an exemption. we are awaiting a very specific updated number, but right now 1200 and as for aluminum, approximately 125 requests from companies asking to be exempt from aluminum tariffs. if you

this happened right after the honeywell ge failed merger where the european commission and the u.s. came to different conclusions and it caused a dialogue internationally that created important changes that are long-lasting. they incorporate many changes and continue to revise them. these commitments are designed to perfectly fit within this and we have not gotten pushback from the civil law countries and they are an important part given how many civil law regimes are out there and the breadth that we would want this to be adopted. >> one more question. >> bill courtney, the rand corporation. in a number of countries, state enterprises are one of the biggest sources of in adequate competition and productivity, this cooperation among competition agencies plate any role in putting more pressure on governments to rein in restraints on competition? >> great question and an important part of the expansion on the culture of competition of antitrust laws internationally and the postal service is one here in the u.s. . we still have some level of state enterprise which might be well-suited

it so she should know how daddy honeywell's i mean them often that in us about ten feet i now have been elysium in and quote and so on and so forth shit in my nothing. or woman come on me i need done to feel for me to come on money my money in a mop. to save me. in my can be kind of your soul what out a deal what a could a home only lets you need to set him free something as you done. it's been one year since its neighbors imposed a blockade on kauto by land sea and air. a move that shattered the region's jew political landscape alliances have shifted and qatar has grown more self-reliant. but what caused the rift between the g.c.c. countries is there an emirate insights and can the gulf ever be the same again the siege of caught up on a just zero. al-jazeera . where ever you are. territorial. ethnic divisions. the daily reality piece in some of france's underprivileged communities. a world first time to come from suburban president. top stories on al-jazeera iraq's parliament has ordered a manual recount of every vote cost in last month's parliamentary elections to accusations of wides

happen right after the honeywell-ge proposed and failed merger where the european diffent conclusions, and the to cost of a dialogue internationally but it could get very important changes will that have been long-lasting, and they should be committed. but they incorporate many changes and they continue to revise those. these commitments are designed to perfectly fit within that, and we've not gotten pushback from the civil law countries. and they're an important part,, given how many civil law regimes are out there and the breadth we would want this to be adopted. >> i'll be one more question. >> thank you. bill courtney, rand corporation. number of countries state enterprises by one of the biggest sources of an adequate competition and productivity. does cooperation among competition agencies, does that play any role in putting more pressure on governments to rein in those restraints on competition? >> a great question. and really important part of the expansion of the culture of competition and antitrust laws internationally has been to liberalize those state-owned enterprises. som

it so she should know how daddy honeywell's i mean them often enough about ten feet out and now i've been elysium in court i'm so on and so forth she didn't mind nothing. or woman come on me and he done hoofy for me to come my money my money in a mob as if it can only save me. in my can be kind i'm your soul what out a deal what a could a home only lets you need to set him free something as he does. we do not and we will not tolerate with people who fund terrorism unity is less this area we need to achieve one year into the gulf crisis al-jazeera examines its political economic and human impacts join us for a special program at eighteen g.m.t. . june nineteenth sixty seven six days they redrew the map of the middle east this would mean record of victory of the israeli army in that war was the greatest tragedy in the history of islam al-jazeera explores the events leading to the war and its consequences which is still felt today we tried everything to be united nations and try to make. contacts through different countries and it was clear that all this was to do with the war in june o

minister mario monte implemented significant changes during his tenure around 2002-'04 right or the honeywell/ge failed and proposed merger that where the european commission and the u.s. came to different conclusions. it cost them internationally and it created very important changes that have been long lasting and they should be committed but they incorporate many changes and they have continued to revive those. these commitments are designed to perfectly fit within that and we over not gotten pushback and they are out there and the breadth that we would want this to be adopted. >> we'll do one more question. sir? >> thank you. bill courtney, rand corporation. in a number of countries state enterprises are one of the sources of inadequate competition and productivity. does cooperation among competition agencies, does that play any role in putting more pressure on governments to -- to rein in those restraints on competition. >> a great question and really an important part of the expansion of culture of competition and antitrust laws internationally has been to liberalize those state-owned e

it happened after the honeywell and g.e. proposed and failed merger where the european commission and the u.s. came to different conclusions. and it caused a big dialogue internationally. but it created very important changes that have been long lasting. and they should be commended. but they incorporate many changes. and they continue to revise them. these commitments are designed to perfectly fit within that. and we have not gotten pushback from the civil law countries and they're an important part given how many civil law regimes are out there and the breath we would want this to be adopted. >> do we have one more question? sir? >> thank you. in a number of countries, state enterprises are one of the biggest sources of inadequate competition and productivity. does cooperation among competition agencies, does that play any role in putting more pressure on governments to reign in those restraints on competition? >> great question! a really important part of the expansion of the cold truck competition and laws internationall

performance for me so far year to date is where i want to increase my portfolio exposure added to honeywell also. i think it's built in. >> look, levinthol yesterday was saying how he was trimming some of the winners >> he was bringing it back to 5% he was just -- he thought that was overexposed for those people who were in apple and they were up to like an 8% exposure, steve. he was pulling them back to 5% because that's where jim wanted to be. not quite the same as a broad market call, saying i want to trim >> still, trimming some positions that have done very well in the portfolio. >> i think that's what you have to do asortfolio manager >> ste, you're out with a number of names you added i center fohave four or so. >> home depot, oxy >> i added to google i think it's a total overreaction in defense stocks you're getting high quality companies pulling back on the lack of potential defense spend. that's not going to happen in my opinion. not anytime soon yeah, i mean, i went back and i looked at companies where they had good earnings, where estimates were going higher and where there migh

there was speculation, could they merge with honeywell or boeing?oint, the communication from ge is this is it, this is the big brick of change we will see. you have to wonder down the road as the power business gets back on stable footing, does that business need to be continued to be paired with aviation? i don't think speculation about the report will you will stop with this but this is significant enough that it is good enough for the time being. alix: brooke sutherland, thank you for joining us. petroleum the qatar ceo will be joining us. qatar, australia, the u.s. those will be the big lng suppliers to the entire world. what a trade war means for them. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and

. >> in industrials, companies like honeywell, which we think are world class companies, add to thosepositions. i think that's where you want to look at. even in some home builders like stanley works, that's come back down, that's a good company. >> yeah. >> might not work for a quarter or two, but longer term, it's good >> there's opportunities to get caterpillar. >> unfortunately, yes. >> and, today, was there even a headline to point to, a reason for another 2.5% drop here >> right from the beginning of the day, there was the daimler news and disappointing fed, the first manufacturing number seen in a while, so i think that just added to the concern there was crude. wa waiting for opec, although, they hung in well, it was the sector that was slammed there was a risk-off feel all day long of course, i think it's all about trade, right trade and the fed, and uncertainty about the fed, and why are they tightening when the ecb is not pulling away at this point, and boj is years away, so there's a lot of uncertainty, and to that point, there's not company specific fundamentals for a cou

wi we own honeywell right now, i think the valuations make a lot more sense here. >> 22% so far this kevin o'leary, how does the chart looks? >> i agree with mike a lot of the stocks are in the aerospace sector weekly divergence have started to show up and the stock moving higher and momentum moving slower at a sense of a time. i think that's a concern when ever you see rsi or the strengthen -- the stock on four of those have been down and 50% or more of the three or four more years to come >> wish to trade at 311. >> we got to leave it there. we got the target. thank you very much, mark and mike you can head to our website on tradingnation.com. >> now the latest from "trading nation" and a word from our sponsor. in rising low volatility markets and short term buy backs represent great buying opportunities. one approach is waiting for the second update after pull back before putting money back in the market ahh. where are mom and dad? 'saved money on motorcycle insurance with geico! goin' up the country. love mom and dad' i'm takin' a nap. dude, you just woke up! ♪ ♪ i'm goin' up the

that's why i mentioned honeywell today. that's where the opportunity is. overall, the sector industrials i like them. >> the dow is up 115 it does it for us. power lunch starts right now >>> thank you, scott it's the big headline making interview of the day warren buffet and jamie diamond weighing in on the markets, economy and trade and why publicly traded companies need to scrap quarterly profit forecasts. >>> america is slapping china's zte with a billion dollar penalty in the deal to end crippling sanctions. wilbur ross announcing the news here on cnbc, but did the u.s. go far enough? >>> everything amazon, scoring a big win over the battle for streaming sports get your game face on, power lunch starts right now >>> welcome to power lunch i'm sara ooeisen. both the nasdaq and the s&p are on track for a fifth straight day of gains but utility stocks are on pace for their worst week of the year nisource leading the declines there. the etf that tracks china on pace for its seventh straight day of gains on pace for its second straight weekly gain. >>> than

it makes it slightly bigger than honeywell which at one point was kicked out of the dow. than 3m. so the question becomes whether or not general electric has lost some of that iconic luster in being one of those bellwether industrial companies in america. it's not just the dow where it's losing some influence. it's also losing it in the s&p 500. it is now the 44th ranked company in that blue chip index. >> no question it's losing that. just i don't know whether this just puts an exclamation point on it or what. but it's been losing it for years and years. our next guest, that's the story we're talking about. so i guess we'll begin with that he'll be with us for the next two hours. david novak. lead founder, ceo of both and a cnbc contributor former yum brands cofounder and ceo. thanks for joining us. leadership, general electric, one of the storied -- thomas edison 111 years in the dow >> almost makes you want to cry looking at those numbers >> you've watched this closely as anyone. and you know all of the players involved what -- how do you explain it? could ogo tenants