john flannery is out and you have lawrence culp who was ceo do not how long john flannery how the ceoob total? months as ceo, 12 month. 365 days. david: one of the things i find interesting is when he was coming onto the board he was in expert and accounting issues and he could figure out what was going on p read just had another accounting problem and they took down their estimates. goodwill wellion will follow this news throughout the morning as well. much more coming up on ge. this is bloomberg. ♪ alix: this is bloomberg a risk on rally in the u.s. as a new trade deal between mexico, canada, the u.s. comes to the foreground. european stocks up a touch. italian banks of severn trent tenths of 1%. despite the fact that citibank blowing out to 400 basis points. the market takes it all in stride, even selling has stopped a little bit. and to take and what happened with the tory county -- tory province. you have the cad at a four-month high. pesoonger cad and mexico mean a broad late we can dollar but that's not yet 100% clear in the market. telephone not long and. crude not reacting at

also a consensus that culp will be more aggressive and have a sense of urgency than ceo john flannery did a word that keeps coming up, outsider, in a good way. jeffrey sonnenfeld told me he's confident in culp and new lead director thomas horton will

it's been called off, though i was very enthusiastic about john flannery. knew him when he was a last-minute substitute at a big event we were doing in india for jeff immelt and of course we were disappointed because of all the indian titans and what i saw him do before my very eyes on a cold call, he closed a multibillion dollar deal with one of india's largest companies and he had just basically parachuted in there. this is before he moved into health care. and i thought he was a very smart guy. i think something that perhaps bob could speak to it has to do with atmospherics here is flannery is -- he might come off as sluggish, almost academic seeming and that his -- he's not the most sort of charismatic back-slapping sort i think there's more of a dynamism, personal dynamism to culp and horton, they're fabulous guys but john is a good, honest person. and i think his plan analytically is close to what's here i would not jump overboard as some people on this network did giving nelson peltz any credit nelson peltz bought into ge when the stock price was fou

john flannery is one. a final thought on this or a brief question for jennifer if you have one. >> the brief question is, if they chose you and you had no relationship, it doesn't show much investigation. maybe they just hope that you would make a complaint and create a bogus story in terms of the dimensions of accusations against the special prosecutor without any real evidence that any such thing occurred. and they were just hoping that it would feed the alt-right sound machine of attacking and believe to be true, attacking mueller so that in the days ahead when he does do something, they'll try to discredit it. i guess they hoped that when i say they, rudy giuliani and company, hope that the only attack on the president could be a report for impeachment that may or may not be made public, it may or may not be acted on. >> there's so much flying around. you're referencing the wider pushback from the white house. we're not reporting any link whatsoever regarding his counsel and the attacks they have publi

and general electric jumping after dumping its ceo john flannery. we will go inside those moves straight ahead "power lunch" with a special guest next >> welcome back to "power lunch. i'm courtney reagan. new highs and nasdaq 100 hitting record levels. s&p on track for record closing high and dow up triple digits off session highs. it was up almost 280 points earlier on oil prices rallying too fueling the energy stocks. they're the best performing sector this hour led by marathon petroleum. new 52-week highs for microsoft, mastercard, boeing and invidia now to our special surprise. >> i am the special surprise >> you're it. >> or you are the special surprise >> tyler is just a surprise every day. i'm brian sullivan we begin with president trump taking a victory lap speaking at a news conference earlier about that trade deal between the u.s., mexico and canada. trump says he, quote, pillar of national security is economic security and trade and he called the deal a new dawn for the u.s. auto industry. >> this deal will also impose new standards requi

this is some what remarkable because john flannery just started. n he was trying to deal with the hammer that jeff left him. the hammer is too hard he was fantastic i think the company is in better hands. >> do you think some of this is a clean slate from the prior regime or something or is there more to it that we don't know? >> i think you are right, it is a clean slate. while the statement basically saying the plan of flannery's is going to be enacted. everybody is on the table is what the culp telling us right now. it was amazing, flannery just could not do it fast enough. he was not getting the job done. let's see if it stays up there >> jim, i notice that you're tweeting about us, it is walter, i guess you disagree with us on unvetted tweets. >> you are right i did that because i love you and just thought it is funny i think there are a lot of people who could benefit on what i regarded to be dissemination by somebody else you should not disseminate by yourself there is too many issues that could happen >> what's going to happen to tesla's sto

. >>> ge shares closed 7% higher after the company's board ousted john flannery and replaced him withlast year flannery announced a turnaround plan that would return ge to growth. shares have lost more than half of their value since he took the top job. >>> bill griffith has more on this surprise shakeup. >> reporter: the ceo, larry cult, may be new, but ge is facing a lot of familiar problems, like jack welch and jeff immelt before him, john flannery was a company veteran spending 30 years at ge, but his 13-month run saw ge stock decline by half. kulp is the first outside tore take over ge in his 126 d-year history. he ran daniher for 14 years, and with him in charge the stock gained more than 460%, more than four times the s&p's 105% gain over the same period even with ge's poor performance this year, it's a stunning and unexpected move. >> the people who are there are some of the best people in the world in engineering, science and math this is a jolt to them now. they'll need to be feeling that they're valued, really valued, and that they won't be taken advantage of for quick deci

general electric shopping wall street monday ousting john flannery as chairman and ceo. the stock soaring on that news, closing well into positive territory. the fight for 15 makes its way to big tech. amazon raising its minimum wage to $15 an hour. it comes after the company came under fe f working conditions. maria: an historic agreement, the united states and canada reaching a deal on a new trade agreement. >> it's going to be a manufacturing powerhouse to allow us to reclaim a spry claim chain that has been offshored to the world because of unfair trade issues. >> it's an agreement that removes uncertainty for manufacturers and investors andism proves labor rights for all north americans. maria: home depot co-founder, and author of the book, i love capitalism. ken langone. this trade agreement is called usmca, that's u.s. mexico canada. >> i think the big thing is it brings the stayed deal more into balance with the u.s., canada and mexico. ross perot ran for president in 1992. one of this themes was the giant sucking sound from mexico when they hadn't passed nafta y

ge dumps john flannery and names larry culp. stock leaving on that news. and, as london looks for a .ompromise on the irish border let's talk about where we are in the european markets. less than a half an hour to go. we are seeing a significant turnaround. over the last hour, you have seen this. trading down by 3/10 of 1%. we checked in one hour ago this market was trading in positive territory. the pound is moving higher, and 100 lower. one reason we are seeing london lower is because of warnings earlier. vonnie, go to the breaking news. vonnie: the managing director warning about trade wars and tighter credit. we do have an exclusive interview with christine lagarde in this hour. we're going to bring that to you. presumably she will be saying more about the world outlook dinning. -- outlook dimming. here is abigail doolittle. abigail: big gains for the dow. take a look at that. the dow and the nasdaq off or third day in a row. the best day since august. the fact we have christine lagarde of the imf saying they will take down their growth outlook. invest

also a consensus that culp will be more aggressive and have a sense of urgency than ceo john flanneryord that keeps coming up, outsider, in a good way. jeffrey sonnenfeld told me he's confident in culp and new lead director thomas horton will bring a new outlook for ge. >> the market seems to appreciate their communication skills strategic strategically, i don't think there'sing in wrong with the path they were on other than the fact that you might almost argue -- and people are going to blow up on this -- they were moving too fast! >> investors should expect urgency in action. even with that, analysts feel it will take a change in culture and possibly organization to improve this stock price. >> frank holland, back at headquarters thank you. >>> lights had gone dim on ge for a long, long time since august 28, 2000, lost almost half a trillion dollars. yep, you heard me right. half a trillion dollars in market cap, more than the market cap of two boeings put together and plunged 80% since then this, while the overall market has almost doubled and hit rocket highs with ge falling so fa

later tonight i will give you my take why john flannery was fired after 13 months on the job but ge is unique in that the company put itself in the path of its headwinds that's right it's their fault the company put money into fossil fuels doubling down as the price of oil collapsed a few years ago. they virtually stopped investing in two best businesses with fabulous tail winds, health care equipment and aerospace. there is endless demand for health care equipment that can save lives and save the system money. 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 n

you have given the previous ceo john flannery over a year. have technically he was in there a little over a year which is difficult to change such a large company over that amount of time. can this new guy do the exact same thing? they did cut the dividend. that was the second time since the great recession. there are rumors it could happen again. cheryl: rumors it could go away. >> those holding the stock could get hit. big issue came out with ge, they will be writing down $23 billion in a non-cash charge for their power business. $23 billion is more than some of the values of entire company, publicly-traded company. many don't even have a market cap that large. definitely a huge write-down. the company warned they may not hit their free-flow. their earnings per share could be lower. cheryl: because of the power business. it is all tied back -- >> they're reporting october 25th. some people wonder should i get in right now? the stock is up. is there potential what i'm seeing with some analyst reports that the market is very optimistic right

john flannery ousted after just 13 months.res fell 51% since august 1, 2017 when he took over the reins of the conglomerate. today it's up six and half percent. investors have been disappointed with ms. after ms. on financial targets in a turnaround effort many criticized as moving too slowly. new problems were the final straw for the board and the latest management's shakeup for the one-time darling of the doubt. the man who has been chronicling the fall from grace, charlie is joining us with news that i don't know if investors will like what you are about to break. >> i'm in a do the story and doctor evil speak. >> here's what i've been speaking with senior former ge executives, guys that used to run the various units over there, and i'm asking them, be ther there pretty plugged in inside the company, ge is turning to some of these guys for suggestions and help recently, they been talking to them as an ongoing basis since jeff was ousted a year ago and replaced by flannery who was ousted today. is what they expect, a massive

john flannery fired. new ceo comes in, lawrence culp. stephanie link, look, wall street's out i have a stack of notes in front of me today. and more positive than not you actually bought the stock yesterday? >> mm-hmm. >> i'm surprised to hear that. tell me why. >> i have been so negative on the name the last time i owned it, i got lucky, i sold at $30 and that was the time they spun out symphony i haven't liked the power gen business for a long time i still don't like it. i think the management changes are substantial. culp is the best in the business horton, the lead director, phenomenal he turned around american airlines, which is a very hard industry and a very hard company to turn around i think all options are on the table in terms of what they're going to do. they could keep health care. they're going to keep aviation, of course. what they do with power gen, i don't know we know it's troubled. we also know that they can restructure it to a degree so i also think there's a very good chance they do an equity offering, a very good ch

john flannery is out after 14 months in charge at ge.takes the wheel. : president trump says it is too early to talk to china. u.s. stocks higher with the s&p and the dow moving higher. let's see how this will translate in asia. sophie: a mixed start to the tuesday session, kicking it off with korea. looking little changed, but could be heading lower. this as digesters digest factory output. in tokyo, we are seeing the nikkei 225 extend gains, at 827-year high. -- trump says the u.s. is working on a trade deal with japan. sumitomo mitsui cautions that the climate slow. speculative shorts are on the rise. now with the kiwi dollar 90ding, confidence fell to a below. 23% of companies reported weaker earnings. see ang in on bonds, we overnight drop in treasuries. risk appetite is picking up. traders will be focusing on 10-year debt. demand could be healthy as investors shift away from that superlong sector which has pushed 30 and 40-year yields. gains onl building on ongoing supply concerns. handle.eing the $85 iran's exports dropped to a 2.

john flannery out. the new guy is in. kristina partsinevelos is here.akes you think or anybody think that the new guy can save ge? >> they need somebody to do it. larry culp did it at another company, danaher. he was there 14 years. turned the company around. they hope a respected outsider, 55 years old can come into the company to fix things. the stock has been plummeting for years. the company faced a lot of profit, shrinking margins. the power business is struggling, they're hoping to your question, larry culp, this new guy will come in. that is very unexpected change. the board had john flannery he was there not even a year. august, a little bit over a year. a year and two months. so the reason they moved so quickly they expected some movement. you had his turn around plan, john flannery said would focus on aviation and power. didn't convince investors. still the drop in profit that the company has been faced with. they thought clock is ticking we need to move quicker, let's put the new guy in. if you look at precedents. before flannery past 54 year

. >> 150% we are talking >> we are all upset of payroll rising by 8% and john flannery was doing hisest and he had a chance to make $21 billion >> why should i feel good about that >> by the way, that's our prooe previous occasion. musk is out of line in terms of it >> why would it be something i want >> i think mr. flannery got really bad hand and had to do a lot of dirty work. >> but a basal flannery of $2.5 million, the appreciation that he could get and everybody in america would like that that's a contract that if you are performance is oriented, it is the best performance oriented i have ever seen i don't think anyone seen it better >> well, listen, there are a lot of shareholders with extraordinary pleased if the stocks does arrive everyone to 18 or so and it will be roughly 15% and take it up from there, jim. >> and of course the greatest comp is danneher i think this man is not going to fill the plan. he's going to do exactly what flannery did if he's going to do exactly what he did, they would not need to fire flannery. >> he's embracing the strategy we'll see who's right,

ge dumps john flannery and names larry culp. stock leaving on that news.oks for a .ompromise on the irish border let's talk about where we are in the european markets. less than a half an hour to go. we are seeing a significant turnar

the plan that john flannery has is not edgy stuff. >> you mentioned you will look out for tusa >> andy confirms a lot of our these this that a lot of the power issues are execution >> i think tusa is waiting and he's worried and you will get dividend cut is it going to be an equity offering, we don't know? stephen tusa, he's been so right. i hesitate to say that he should change his mind. he wants to see what this quarter looks like flannery lost his jobs because he has not gotten his arms around the size of the various charges. >> right, i was reporting later in the day was when he brought in the $23 billion charge to the board and the elimination of the previous guidance that they said -- again the conversation on the board, is it time to replace him and it moved quickly there. he did tell people there would be no more charges and no more surprise >> this was very much a surprise it should not be if and when the dividend of something happens there. i think people were so confused that dividend is going to change once they complete the exit from healthcare that's different from what

in june, john flannery said he would sell off the bonds of the last ge capital.siness -- coming up, a with the call for mattress firms. -- mattress for them. the company with plans to close 170 stores. what is next for the troubled retailer. this is bloomberg. ♪ shery: america's largest bedding store has filed for bankruptcy. about 700 leases -- there were about 3000 masters firm stores ins the u.s.. how did it get this bad? >> what happened was mattress bought, wasto being a serial buyer. they bought a lot of smaller regional players. the last when they bought in eeze, that was the largest. they were highly levered. they were purchased by steinhoff. that hurt them as they were transitioning. they were on the high-end of the market. they were a little ambitious in those strategies. they were technically agnostic as to brand. shery: the environment is hugely different. >> yes, yes, particularly on the low end. they are not as profitable. the mindset of the younger consumer. shery: i had to change mattresses, so i went to mattress firm, but there are so many option

john flannery is focused on aviation and power. the makeover wasn't fast enough. he is replaced by larry culp. he is the first outsider to lead ge in the company's 126-year history. that is really saying something. >>> tesla stock roaring back after elon musk made a deal with the s.e.c. shares jumped 17% after musk agreed to pay $20 million. that settles claims that musk misled investors tweeting he is taking tesla private. musk will pay the fine and leave the board and stay on as ceo. that is what investors want. keeps the genius of elon musk at tesla. tesla produced 53,000 cars last quarter meeting the production goal. musk e-mailed they were close to making a profit. a lot of folks have been telling him publicly and privately he needs a chief operating officer. he has the boring company. >> not boring. >> and he has tesla. you know, he raises a lot of money. this is good. >> perhaps back on track. >>> "early start" continues right now. >>> i wanted to be comprehensive. i actually think it's a good thing. >> we'll be voting this week. >> the senate leader has ma

june, john flannery said he would sell up the bulk of ge capital. equity firm bain capital has agreed to purchase a majority stake in a rocket business. -- and theervices deal would allow it to increase spending. rocket is owned by foursquare capital partners. the next ceo at airbus would also be the head of commercial air class. tom anders will be replaced in april. ceo of airbuse since 2012. volkswagen is close to having an initial public offering. the truck business has a value of about $38 billion. your business flash. interesting times to be looking at selling off. romaine: mercedes is doing the same thing and they are pursuing the same options. maybe there is a way to get better value out of it by letting it run free. caroline: whether the share price will be heading any highs at the moment. google said it found a software glitch in its google plus social network in march. the company did not tell the public until today out of concern it would trigger a backlash. u.s. politicians are stepping up their attacks against the influence of technolog

so much for the john flannery era and ge. he was ousted after a little more than year at the helm.hares are soaring on the shakeup will suffer more, let's bring in jeff windau, who is with us over the phone. it is the top performer in the s&p 500 right now, which would seem to's adjust investors think the new ceo will continue to carry out the changes that were planned and it will be a success. what do you make of this? i think that is a read. honestly, we have a lot of changes, a lot of things in the pipeline. i think the key thought right now is there might be some more exhilaration and things might get done a little quicker than anticipated. i think that is why the market is looking positively and the opportunity for an experienced leader to come in and accelerate some of the changes that were ongoing. vonnie:'s acceleration really the only question mark? if so, why did they give him a little more time? jeff: it is part of it. another is potentially the information and maybe the acknowledgment that power is probably worse than what we originally anticipated. i think with the cha

announced 23 billion-dollar charge for its power business and got rid of chief executive officer john flannery: facebook is trying to ease concerns about the latest hack. tracee: still learning more information, facebook says it hasn't found any evidence that third-party apps using the companies log-in service were affected by the hack m worry that the third-party apps like tinder and spotify may have been access when 50 billion facebook accounts and facebook is investigating the breach and wasn't sure if account ifg was misused. lauren: still we saw on dark web log-ins posted for $2. cheryl: mines were 5. lauren: what does lama and frisbee have in common? tracee: text messages or emails will get exciting, apple will add emojis for iphone and ipad users with ios12.1 update available to beta testest right now later this month for rest of us, lama, racoon, mosquito, red-headed emoji coming soon. cheryl: i love those. lauren: getting very populated. tracee, thank you very much. cheryl: okay. well, everybody, standby because the kremlin man is back. lauren: my other favorite story. cheryl: russian

looking at today's dollars and cents. >> reporter: general electric removed john flannery and also thehe board at ge. analyst say that other board members were frustrated with the slow pace of change at the company and on the news at ge stock is up more than 12% this morning. tesla stock is also up when the opening bell rang this morning. we have been reporting that elon musk is off the board of directors at tesla as part of the settlement with the s.e.c. tesla also announced it made a record 80,000 cars in the third quarter. more than 50,000 of those were model 3 and investors seemed to like that. checking on the numbers announced trade deal between the u.s. and canada definitely helping stocks this morning. the sentiment on wall street that this is good for the economy and there is a live look at the dow jones, of more than one point, 269 points, 26,728 of the s&p 500 up .75%, and the nasdaq is also of about .5%, and a facebook could be penalized $1.6 billion for its recent data breaches that are -- affected 50 million users. the ireland data protection commission is the lead privacy

>> john flannery we thought was an exceptional manager sometimes in corporate america things aren't about fairness did john deserve to get fired? we would say no. is larry culp an exceptional talent even the most bearish refers to larry culp as superman i don't think you can fault the ge board with taking an opportunity to put larry culp in as ceo and we're as positive on ge as we were previously >> wow glad i asked you about it. i didn't know you would have that opinion about the changeover in the ceo. you were okay with the speed in which ge was moving under flannery >> look, i don't want to argue with the ge board, but in a five quarter period or so that john was ceo they stopped construction of a new headquarters building, got rid of something like 70% of corporate staff, changed 16 of his top 50 reports, brought in a new cfo. i think the pace of change was dramatic versus what we're normally seeing with new management teams perhaps if you're going to fault john it was trusting the people that reported to him a little too much and larry being an outsider it might be easier for him to

john flankery. we'll bring you -- flannery. we'll bring you more details as they come in.here was a shortfall relative to the 2018 guidance but the big news in this press release is lawrence kulp named chairman and ceo. he's been named to this post by unanimous vote by the ge board of directors, effective immediately. tom horton as lead director, mre been members of the board since april 2018. ge has taken a sharp turn down. >> look how the market -- it's up 5%. the market was looking for some change there, shareholders are frustrated with where the company is right now so this is the kind of move you get manufacture we've got a big move in the stock this morning. sorry to interrupt. >> that's all right. i don't think the kavanaugh confirmation affects ge at all. i>> it affects the color of dagen's dress. dagen: does this not reflect how many republicans feel about what's being done? >> i think republicans are very hot. i had many conversations over the weekend, had a couple of speaking gigs with very different groups of people as to which will affect the midterm turnout.

the reporters who broke this story, attorney mia wylie, and another former federal prosecutor, john flannery to all of you. shelby, what is the verification of the actual fund-raising due to the story? >> well, the money trail always matters. so what we know is he raised at least $100,000 from at least four people. and the timing is significant, because it came just one month ahead of the election. there is an e-mail sent out to some of his friends, some of his donors, and it was addressed to the clinton e-mail reconnaissance supporters. he was talking about establishing a scholarship fund for russian students. and in the e-mails, he says the students are pleased with the e-mail releases they've seen so far. and this email came four days after wikileaks started dumping emails. so it suggests in this e-mail that the students are pleased with the releases, hints at the fact that they're talking about these e-mail releases. he had been on this mission to get hillary clinton's e-mails. he was after those 33,000 missing e-mails that hillary clinton said were personal that she didn't turn over to

. >> general electric shook up naming itss morning new ceo and moving out john flannery after two yearsabout what this means going forward. we have justin bergner. he was only there about 14 months. and this new ceo coming in, with some of the changes flannery put in place, is this going to be a change in the complete direction, or just a change of the figurehead? >> that is a great question. my view is the strategy will not change much under larry coker'-- larry culp's leadership. takenk the execution will a renewed focus on the urgency. larry hats experience from his time at -- as ceo and dana herne. different accountability and goals for that type of structure. joe: what can he learned from his dana herne experience compared to what we will expect at ge? there is an element of confidence he brings to the market. from his time and dana and i think he proved himself a capable ceo on numerous fronts. in terms of his managerial leadership, grooming talent, running industrial businesses with appropriate incentives and structures for individual business units and driving strategy and folio

. >> do you think that the path that john flannery laid out in -- and was approved by the way by the board including larry kulp at the time is the right path if kulp is operating at blink speed is it enough to move at that speed on the path already laid out by flannery and presented to the board. >> i think -- i think what larry did was concur with the plan but obviously the plan didn't develop the way it was laid out financially with speed and so forth. i think larry is looking at the dividend we talked about that earlier i think, you know, it probably needs a good hard look we talked about maybe not cutting it to zero because some investors are going to need to have a penny or two in dividend to stay, as you indicatesed. i think that, you know the baker hues thing that's been talked about is a way to get cash the latest forecast where power systems is dragging on cash. they still have over $30 billion pension liability. over $120 billion in debt. if you look at, you know, the impairment charge it took on the biggest acquisition in g.e. history, to turn around with within a couple o

. >> live, as you know, inmate reported on the show that they were considering a different john flannery the ceo and he later confirmed that but has been sometime since we've heard much from the company about the dividend and they confirmed that they're looking at it which was we reported that essentially they were looking at a cut. it's up to the new ceo and i believe his name is to make it has the right? list. liz: i got his name right, right? >> is up to him. that is not his problem the theory goes that he is cut it to zero. my guess is if they do cut this thing is a good chance they will but we can report that they are looking at it and we can report the are seriously considering cutting it. they will keep it at a few cents and the reason why is if you keep it in a few cents certain mutual funds that have that dividend stock to keep it in for folio and you don't want to force all the selling tomorrow if this occurs? that's where we are with ge. if they cut it, i could be wrong and i know they're looking at it in my guess is they don't cut it to zero because of the one reason that the

this whole idea you alluded to with the new ceo, john flannery, former ceo pushed out.ew ceo lawrence culp, former head of danaher, a tech company. thought his new eyes, new ears, new brain will really help ge be more streamlined and be more efficient. the stock is up 3%. no longer a dow component but that said moving up all the same, helping to limit, as you can see this, limiting broader losses. liz: one of the old bull names. so many people had it in their portfolio. deirdre, thank you. >>> we're in october, and it's fall, fall we have fashion apparently making a comeback, so says our next guest, who believes there are a few fashion companies, specific ones particularly well-placed to take advantage of changing styles and you should try them on for your portfolio. kim forest says so, fort pitt capital group vice president. apparel, places that sell them bricks and mortars was yesterday. you're telling me no? >> they are not but they are probably not the things you're familiar with or maybe even the places you like to shop. it is where millenials want to go and how th

the company is coming off the firing of john flannery, and the naming of lawrence culp.stay with ge stock, shares up 8%, the best week in some 3 1/2 years that tells you a lot about how ge has traded lately we want to bring in an analyst who made a big call on the stock. dean dray of rbc capital markets joins us now dean, good to have you on today. >> nice to be with you i'd like to start with i guess what's fair to say i'm a little confused i'm sure you know where i'm going to go. on september 27, said the stock has not bottomed on october 1st after they name p ed mr. culp, the ceo, you called it a outperform. >> we see a sea change at ge you go back to friday, we put out a note and said here are all the things we see that are wrong at ge that need to be fixed. here's the reason that the stock hasn't bottomed. they need to cut guidance and if you wanted to be optimistic, you could look ahead and look on the board, the lead director, we said at that time, we said this back in june and we said it in april, watch larry culp. he could turn out to be the next ge ceo and that

as most of you have heard already the company firing its ceo john flannery after just 13 months on theob. he's being replaced by the former ceo i should let you know that i had tweeted out earlier that the number one ranked industrials analyst at jpmorgan, somewhat of a ge whisperer, if you will, was supposed to join us. he will be with us tomorrow on "the halftime report." stick around tomorrow for that interview with steven tsuza. the stock is up dramatically that 10% move isn't even the best of it today >> you tune in tomorrow and i'll be here. i want to hear what steven has to say and steven moves the market on ge the reality is this is a very surprising move. mr. culp came in in april. they've quickly now gotten rid of mr. flannery and i think there's more to come also within this change is thomas horton, the former ceo of american airlines. he's coming in as well so you've got mr. culp coming in as the first ceo in the 126-year history of ge, mr. horton coming in from outside of the company what does that mean, though? they're going to cut the dividend further i'll tell you one t

wall street where we cover the things wall street is buzzing about this morning. .he ge shakeup john flanneryft with little to nothing. and the $1.5 billion fine and we prepare for customers to get around sanctions. the threeer revealed series sedan with state-of-the-art gadgetry. tell us about mr. flannery. it looks like he may not get huge payout. >> this is so fascinating. reacted to it and there are so many leaders to it. you are not going to get a lot of money. the idea that they will bring in an outsider. was a radical move for them where company has struggled. story going back and reading about. david: they don't have big contracts to guarantee it. someone should get credit for having him move in. they brought him on the board. >> ge has been well-known. all the derbies that have taken place. bring in an outsider and it will danaher.sting to see they left after having a bit of the fallout. alix: les moonves get set of cbs under allegations and still gets a pay package of like $160 million. can someone explain how this makes sense? david: he had a really great contracts and i know somet

. >> do think you should keep the portfolio plan laid out i john flannery over the summer?smayed? made -- tweaks made? mike: i think it has been successful. i think will be successful for ge to stay with the power business. there's a tremendous amount you can fix. when you fix it, you can always -- off into our company if you want to. it is a pretty good business that split the company where ge owns half of it and lot tech owns the other half. that is a hell of the business. people lose sight of the fact the health care business and aircraft business are dominant business with market share positions and have done fantastic overtime and have great defensive -- as well. david: coming up, we are going to talk about one of his own holdings. this is bloomberg. ♪ david: time for the bottom line. danske bank is one i am going to look at. i do not think i see another headline. they lost their ceo because they had that money laundering thing and now they have -- put a new ceo in. that guy does not have nearly this earrings you need to run a big bank. analysts are saying they think t

john flannery was ousted it, after ge did not meet profit expectations this year.d enough orders uber can limit the amount of financial information it has to share with investors. former trump economic advisor gary cohn has a new job. he is now an advisor at spring labs, a blockchain startup that wants to change how banks share credit data. posting an undisclosed amount in the company and calls it a unique opportunity. your business flash update. scarlet? scarlet: we are looking at a recovery in u.s. stocks, but for the week it is a sea of red. the faang stocks having the worst week since march 2013. the vix is within spitting distance of 29 yesterday, coming down to 25 today. this is bloomberg. ♪ i'm all about my bed. this mattress is dangerously comfortable. when i get in i literally say, ahh. meet the leesa mattress. a better place to sleep. this bed hugs my body. i'm now a morning person. the leesa mattress is designed to provide strong support, relieve pressure and optimize airflow to keep you cool. hello bed of my dreams. order online. we'll build it, box it

they looked at it, john flannery, the former ceo looked at that.hat would be three separate companies. how much would it be worth is anyone's guess. it might be worth more than $10 a share. might be worth 11 or 12. the other possibility is managing this thing to a point where you have cash flow, you can pay down debt, you can manage the existing businesses some which are very good. that is the way to look at it, even there that might be problematic. they have a lot of debt on the balance sheet and they have the unfunded liability. this new guy, this is not a ge guy, this guy is outside company, flannery was a wrong-time ge guy, immelt was, before that you had the great jack welch. it is not worth it. we blow the place up. connell: sometimes the outside perspective -- >> interesting you don't hear much from immelt and jack on this. connell: has jack said anything about ge's future? >> very little publicly. a lot privately. blames a lot of it on immelt not doing the job, managing the asset he gave him. immelt turns around, tells people, well, you kno

. >> what's your take on john flannery getting the boot after 13 months now. >> we have a running joke at our firm, you never want to be the first crisis management firm you want to be the second or third because the first gets fired now we're seeing a relatively new concept in the last few years in management controversies that when you absolute i will have to change the orbit of a story, you just bounce the ceo, whether it's fair or not. i tend to think it's not this is where we are when you have a lot of calls coming in to the media operations of a company, why aren't things better, the fastest way from "a" to "b" is bounce the guy i have my own reservations about whether that is a good strategy. this is where we are it's a head rolling contest. >> you also have a side hustle we understand besides just managing crises, you are writing about spies. apparently de niro is in the middle of the story? >> first, "best of enemies" is the true story of a cia legend named jack platt and a kgb officer. they were assigned to flip each other in the late ba'70s they became best friends this woul

as you saw, john flannery got a year he was -- what he was doing was good it just wasn't fast enoughy not bold enough and what larry culp has to do is explain to us how he's going to fix power. in the current iteration of the restructuring plan, power is 50% of revenues after medical is spun off and oil and gas is sold so 50% of revenues is his poorest performing business in an industry that i think i can argue is in secular decline. he needs to tell us how he's going to fix that. >> there's a book to be written here, santoli. you can go back to the final days of welch, the selection of jeff immelt over nardelli, and then i remember all the -- jack, you remember had to sell nbc i thought we restructured this portfolio so many times to prepare for the future, then fast forward to flannery, he had a couple of kitchen sink quarters so many things he had to immediately exit then culp comes in and looks around he says after my first few weeks on the job it's clear to me -- fill in the blanks clear to me this is just a excrement show unbelievable what happened over the years to this great

it is not only because of john flan flannery he put a lot of things into motion that, you know, larry 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 for success. john went in thinking it was a lifetime reward for a lifetime job well done. he finds all o

john flannery, former ceo of ge, was an insider and homegrown guy and spent something like 30 years ofge so investors like the fact that he is an outsider and will look at the company challengers with a fresh set of eyes, listen with years and you have the stock up 70%. since this change in management was announced but last week 30% in one week not bad and as you can see on the big board there better than to have% for confessions of our. charles: thank you. walmart is getting a deal with - >> no details on this financially will mean but will learn more later this week but the question is are they trying to get in and take on netflix and who and what have you and will they produce their own tv shows. walmart says, no. they want to boost their video in demand service. they say they want to boost it and don't want to get involved in the programming that we see on the other services. it is interesting that listen, walmart tried to bet that people would rent their movies and buy their movies on the service but does not really work. you need more so they're dipping your toe into the water. h