altman sits down with us for outlook. >>> let's start with ge david neighbor we are more with ceo larry culp inspiring confidence with the stock falling hard again. >> stock still reacting to friday's report from j.p. morgan we were able to speak to mr. culp for 20 minutes from ge's headquarters in boston he's been on the board of directors since april but known for his long and successful tenure as the ceo at danaher starting in 2001 we talked about the difficult road ahead that mr. culp makes no apologies for one area he said there should not be concern about liquidity. >> two weeks ago folks were asking about the liquidity question we've got $20 billion in cash. we have a robust program but we've only tapped two. so that gives us a foundation and whether it's an equity analyst, rating agencies witnessing downgrades we need to bring leverage down and we have plenty of opportunities throw through asset sales to do that i've heard from lots of people across our markets people who have interest in ge assets and that's confirmation that we have quality franchises and options. >> has power bott

we were buying it because of culp, because of larry culp. you weren't buying it because you got any transparency on a fundamental -- >> people immediately said culp can get this turned around because look what he did in the past the problem was this company has a lot more issues in front of it than his company of the past, and he has to take over -- look at all of the debt we bring that up but still to be addressed. >> you know who brought it up? culp brought it up >> we don't want it to be culp that's a mattress company. it's as bad as ge. give me another one. >> jim, give me your thoughts on this power, we're getting close is what he said when david asked him. >> power is like minus three and the jewel is plus three. >> the worst is not in for power. that's what he told you today. >> that's why i say he lowered expectations to the point where you just have to say let's wait. i think someone, stephanie, she is value there's value. they need someone to come in they do need warren buffett. listen, i'm going to buy i'm going to put a floor in.

larry culp is not taking this lightly. he's moving very fast. i think we will know more in the weeks ahead, maybe the next month, exactly what ge, the future of ge is going to look like. but if you look at what the bankers are telling me, the people inside blackstone, about what they're doing, how ge is approaching it, the ge of this time next year is going to be radically different than the ge today. it's going to be a much smaller ge and clearly, it looks like ge right now is a wall street investment banker's dream, because they have at least goldman and jpmorgan, maybe more banks looking at these various scenarios, sales. you have blackstone clearly looking to buy some stuff. that doesn't mean they will, but they are clearly looking at it. here's a kind of interesting thing that i picked up and got confirmed. the ceo of ge, larry culp, has discussed the company's issues with blackstone's david calhoun. if you know anything about dave calhoun, he's a former long-time ge executive before he came to blackstone. he ran the ratings company nielsen

coming up at 9:00 eastern, david fab faber's interview with larry culp "squawk box" will be right backe're voya! we stay with you to and through retirement... with solutions to help provide income throughout. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. oh. so, that means no breakfast? i said there might be breakfast. i was really looking forward to breakfast. i know... voya. helping you to and through retirement. >>> a time for a quick word from our guest host, tom barrick. you had people writing in you are very calm. does not sound like we are ready to fall off. >> no, we are not. it is about partation that the president is forming a lyle log. he's got people around him and we are all debating. >> our two best businesses are digital and logistics. you p i can the trapick -- the c storing data server is better than storing ibm it is better than retail >> meaning that it is better to be in places that are outside of the city right now or is where the money being spent? >> you have to feed the animal what it wants. you take the largest five s

i think one of the problems is that people don't know what larry culp, the new ceo, is going to do.s some things we have been able to cull, just talking to former ge executives. he has been mum about his turn-around plans with outside executives. immelt spoke with outside executives. flannery spoke to outside executives trying to bounce ideas off them. he hasn't really gone there. i asked people if he has actually spoken with jack welsh about what's going on. what my sources are telling me is no, he has not spoken with welsh. they had one call when he got the job, i think jack called him up to congratulate him for being named ceo but he has not spoken with welsh. the ge diaspora, they are scared. they don't know what he's going to do. plus you have the rating agencies weighing in saying this is a company that faces funding issues. they have a lot of debt. they can't tap the triple a commercial paper market. they have to go to bank revolvers which are more costly to short-term funding. this is a company that has lots of funding problems and an unclear plan going forward. what a lot o

. >>> larry culp marking six weeks on the job as ge's ceo with an exclusive interview with our david faber. listen to what he said about the decision to reduce the dividend on general electric shares >> step back from all of that and given the way the stocks traded, i think we make the same decisions today. those are the right decisions to make sure that the company is facing forward and dealing with the fact that we do have a lot of leverage. i think we all agree in that regard, but we have a number of options to bring that leverage down over time, and the company is very committed to doing that. whether it's an equity analyst, whether it's the rating agencies, witness the downgrades, or what we said ourselves, we need to bring the leverage down, and i think we've got plenty of opportunities through asset sales to do that in the last six weeks, it's my sixth, marks six weeks on the job, i've heard from lots of people across our markets, people who have interest in ge assets, and i think that's confirmation that we have quality franchises and frankly that we have options two weeks ag

up 122 >> one of the more insider buys, bought her own funds hasn't done as well for ge and larry culp's purchase. let's get to "the half." >>> i'm scott wapner stocks are higher as america heads to the polls, but what happens to the markets after the votes are counted? will gridlock, if that is the outcome, be good for your money? it is noon and this is "the halftime report. >>> the election day market impact is high on the agenda but so is another kind of leadership -- sector leadership. if the biggest sector in the market, tech, can't take us higher, are we range bound until further notice plus, a big upgrade for a stock traders love to trade. how do you play square "the halftime report" starts right now. >>> welcome. good to have you with us on this midterm election day here to debate and trade the biggest stories of the day are joe terranova, stephanie link, and tom lee is here, head of research we're covering the day's big story, of course, your money, your vote. nice bounce for tech as well what happens next? can stocks get back to new highs or make a nice run jon najarian that qu

. >> larry culp's first broadcast interview this morning at the helm of ge, if you had to give him a ade, what would it be? >> i'd give him a c-plus, maybe a b-minus. larry still thinks his reputation from the past is good enough to carry him and, quite frankly, a lot of portfolio managers don't remember larry or weren't involved and there's a lot of folks that are just waiting for some details, some meat on the bone >> where do you stand on the stock? did you hear anything today that would change that? >> look, ge is either going bankrupt or the stock will double i don't think it's going bankrupt you have $120 billion of revenue with this company. i think they have longer term at least the ability to generate at least $10 billion of cash out of those revenues but they have a balance sheet problem. they're not generating much cash now and they need to plug some holes. it's been a real mess. larry didn't say anything new today. he stayed on script with the earnings release nothing new. i think the market wanted to hear something more conclusive >> we still don't have updated guidance f

we heard from chief executive larry culp tried to ease investors said we're not quite at bottom on the troubled power division. saying we're not quite at the bottom yet did nothing to ease investors. made them more nervous there was more bad stuff from ge. charlie gasparino is saying looking to restructure, sell off assets, do whatever it takes to stay viable. ge, the vaunted, everybody with ge in the portfolio, down to 7.99 a day where the dow is off 600 points, guys. connell: that is something, ge under eight bucks. here to react to all of this, liz peek, "fox news".com columnist and jonathan hoenig capitalist pig hedge fund. ashley i don't think mentioned is the dollar, the strength we've seens liz, in the dollar but jonathan, let me start on the tech selloff, particularly with apple with one of its suppliers cutting the forecast, what did you make of technology today? >> we talked about that a couple weeks ago. as apple goes so goes the market, connell. this is a major part of all indices especially the nasdaq 100. with the broad market so weak, with 250 new 52-week lows, with only

up 122 >> one of the more insider buys, bought her own funds hasn't done as well for ge and larry culp's let's get to "the half." >>> i'm scott wapner stocks are higher as america heads to the polls, but what happens to the markets after the votes are counted? will gridlock, if that is the outcome, be good for your money? it is noon and this is "the halftime report. >>> the election day market impact is high on the agenda but so is another kind of leadership -- sector leadership. if the biggest sector in the market, tech, can't take us higher, are we range bound until further notice plus, a big upgrade for a stock traders love to trade. how do you play square "the halftime report" starts right now.

but larry culp, the new ceo, and by the way, it makes complete conceptual sense.iz: he just made a huge -- well, huge, he bought some stock because when insiders buy, it looks like a vote of confidence here, and he bought it well above where it is right now. i'm not exactly sure. i can check. >> we should point out that unscrambling the egg is not that easy, right? taking this company -- liz: i didn't realize you could unscramble an egg. >> that's what i'm saying. can you really legitimately break these things, this thing up into three pieces? it's hard, but investors are clearly saying you got to do it. the analyst community came out today, jpmorgan said this is a $6 stock now. liz: he bought it at $9.73 per share on thursday. >> well, you know, listen, there is also a theory that he's basically planning for the worst but -- he's basically taking all his write-offs and everything now, making it much -- taking it much more than he needs to prepare for the future to keep a little bit in the bank. i'll tell you, this is where it gets interesting for an investor. it'

. >> there will be support for it but a long way off larry culp signalling that his stock make a comeback was trading at lows not seen nearly in a decade. clearly a positive sign because he's not selling that said, relative to his total comp package, relative to the other example, the diamond bottom at the start of 2016, the purchase is pretty small. >> it is really a signaling effect. part of the new playbook you're already a board member and he did get stocks in those meet >> a bigger story if he didn't in a way. >> ibm, too though. >> huge, huge equity awards, much more than $2 billion worth. >> ibm finally, jpmorgan is letting clients get their hands on a piece of internal trading software for the first time. the bank has started selling subscriptions of their investment analytics program called athena used by jpmorgan's own traders and sales people the firm has already sold more than 200 subscriptions of the program. >> this is interesting goldman sachs has started doing this with its own trading platform the difference is whether you're outsourcing tech to your clients, ie on the bu

last week we had an upgrade from ubs in part because they simply think larry culp, the man who came inrun this company, is going to succeed in turning it around and investors, though, taking a cue from tusa. >> it's this liability wall they're hitting and there's no real easy way around it. will it be asset sales >> but liquidity is not the story. >> and including the industrial business >> nothing going on positive, at least for some time. but we haven't heard anything from ge specific to this they came back to a certain extent with john inch's report that had a similar price target earlier this week. >> we'll keep our eye on ge. below nine is the big story. >>> let's get back to sara eisen in cincinnati with p&g sara >> carl, good morning again. when we come back, we'll have an exclusive conversation with procter & gamble's chairman and ceo david taylor about the big changes. biggest in 20 years. they say the outlook for the u.s. consumer and the state of the global economy, he's optimistic about it, including china. >> china with all the things i've heard about china and read about

eye on investment grade without a doubt and ge, so much of the conversation that i did have with larry culpty and his point being they have a lot of it. any time you are talking about it, people will get concerned and it is sort of one of those subjects where you are not talking about it, you are better off. when you do, everybody focuses in on the leverage and the potential asset sales of ge. when it comes to investment grade, we'll keep an eye on it and at this point we'll wait and see if they are really any true points of weakness beyond those companies that are stressed whether it is ge or pg&e >> a lot of companies are refinanced they make money. david, how about the 92 million shares of baker hughes he traded 31.90 on average last year they did get this deal done. that's a version of liquidity, is it? >> yeah, it is money money is money, right? it is raising it and potentially going to help reduce some leverage yeah, it is. you don't seem convinced, jim? >> i was out someone the other night, why does he not focus putting on resources he has on healthcare which is a fantastic business

comes to execution at ge, we talked a great deal about this it is a week ago since we interview larry culps the key he was not able to say at that point that it was fully bottom but he indicated it was near bottom i am not sure what abbo bottom looks like or how long you stay there so the future's profitability is in question and not to mention you still have the turbin problem where they have to go in and make some changes and issues with the the operating power plant. >> i think it is 200 millions. >> i like the fact that rice is back i think rice is one of the guys who retired in 2017. a lot of people know that he's a firm hand and this was a good move by ge again, an attempt for culp to find out how bad is it remember culp did not -- i think he has got to get to the bottom of a lot of things that were opec to board members. if you get rice in there and rice says look i looked it over and here is the real issues. that's positive. that's why the stock is up i know that there is some stuff out there that's negative. when you get someone who comes back and been there and a lot of people ha

evan spiegel, he's pretty bull issue, right >> larry culp bought $2 million of stocks. >> i would have told him to wait i was looking at how much stock jeff bough through his period? 88,000 shares of 28. 50,000 shares of 31. 141,000 shares of 25 back in march of 2014. >> those are statement buys. you want statement buys? how about ibm this morning four ibm directors and some smart people wily james owen. former ceo of caterpillar or anthem jenny rometty is buying $3 million in stocks her own funds. those are statement buys now we have to start changing it in that buy is a stupid buy. but, let's see if what culp buys is smarter than jeannie. >> ibm having moved down ge was just touching that $9 >> what's the smarter insider trade? >> i don't know. i hate to say it it could be the bills verses the jets >> thanks for that >> no problem. >> oh my god the empire state, whoa man! bad. >> only one play the bills are the only one plays in new york. >> we'll talk more about culp. >> listen, i don't sniff at these ibm buys these are all smart people >> they're all right these are really rich peo

. >> david -- >> it is longevity >> does larry culp have enough in mhiss plate to get power. >> it iso the aerospace division >> really, up to aviation? >> i love his stuff, steph, tusa he's got to deal with the investigation and the if cc and powell >> ge has denied allegations of fraud made in shareholder lawsuit and it is cop raoperati with the government. >> this is jp morgan and they're talking about greater and expected mix impact in 2019. deutsche bank, listen, the good news here is they're not going to have a credit crisise the piece by jp morgan is what we thought is a fabulous cash flow generator and it may not be as great as what we thought. that's a very important division for both governments >> it will be interesting to watch them compete against what hayes says it is going to be a focused utx when it is separated out. that's years from now. david, pvh came on last night is disappointing. how do we know it is disappointing? he said he would fix it. i think people are saying okay, let's give him the benefit of the doubt and this is really good this could be like lululemon

this is a problem for the markets if this company does not, if this new ceo, larry culp doesn't figuret out. it is in too many portfolios for it to go to zero, for it not to have a major impact on the market. neil: hasn't been drastically reduced in a lot of portfolios? the dividend used to be the big lure. >> still out there. what happens when it was 17, people i don't want to sell at 17. then it is at 10. now i don't want to sell at 10. now it is eight. it was up a little bit yesterday. neil: days of jack welch or bob wright handling things, some of best executives of our era. what happened? >> jack welch, my guess, you can ask bob about this, jack welch is not a happy camper. i think couple things happened. jack built a big company. it was huge conglomerate. market says conglomerates. jack welch was too wedded to that. he got sidetracked with environmental stuff and windmills and quote, unquote, tech instead of worrying about the core businesses. i think jack would have done better off bringing in nardelli. bob nardelli was another candidate for that job, long time ge guy. he was an

the pre-larry culp era, i don't know if it is the case he's talking about -- where bhge is marked verses where it is going. >> the sell-office not a large percentage there >> investment down or take a right down >> and these are the questions i don't know the answer by the way. i do think what he does say is why diplomdn't the debt market t positively to the news this is going to trigger an alarm and could trigger another notch down this is all -- this story line that we are at for ge. i am not sure it is the case david, i look to you i don't think ge has dire this the credit market did not like that yesterday and i think china is trying to put a story to it it could cause a big mark down do you think the old g will market it down >> anything in the market that's going to give pause to investors whether they are on the equity side or credit side is going to get a reaction >> you got stories from the journal about them there are three notches above junk but there is no shortages of these stories that can get downgraded the rating agency right now if they follow through the plan, it is not

i did not get to know john flannery for a year before he was replaced about six weeks ago by larry culpast ge was known as a conglomerate for the hole was worth more than the sum of its parts. the talk inside ge now is not the case. and can you keep a company together coherently when the sum of the parts are worth more and analysts question valuations. massive amounts of debt on this company. dirty billion dollars or so unfunded pension liability. $115 billion in long-term debt. they're on the verge. >> in just getting started with this process and how it plays out is still an open question. ge goes away as an option could really quite remarkable when you stop to think about it. i'm not sure, but the goal is just to have a smaller, more efficient. >> i'll tell you i can't get a good read on monaco when i took when i talk to investment bankers seen everything on the table. we have a full writeup on this on fox business.com. there are various scenarios the investment banks are developing with ge and call pass to make the call. one scenario is blow it up yet another scenario is getting dow

culp >> larry is going through the same process ge is different animal than utc.uch more complicated. our split here is quite simple, complex in the tax restructuring but in terms of separating, we already have three businesses that run by themselves our goal now is to set of three public companies headquarters to support those businesses >> it is going to cost more than some anticipated that's why the stock is looking down some of the opening. can you run us through why that number is seemingly larger than some is anticipated. >> you break it down, there is three pieces of that cost. there is about $500 trillion of the one time cost. that's to set up the i.t. and tech structure for all of utc, you got to replicate that three times. one treasury system, replicating the tax system a huge amount of i.t. investment the second big piece is tax restructuring. we have been optimizing tax structure to minimize taxes globally all of a sudden you got to restructure each one of those twelve entitieentities that's going to take a long time about 18-months. it is probably $2