this is a pretty gutsy call by larry culp.ople would make the argument that the conglomerate motto itself isn't necessarily dead. maybe you keep this together, maybe there is still some success to be had out of that model. some arguments say you still see it here in the united states with companies like amazon, or some would argue -- which somewhat argue is basically a modern version of that old conglomerate. this is going to be the stock of the day, no matter where it ends up. flip up the board real quick. just a couple of other quick movers to keep an eye on. lumen our technologies has a great deal with nvidia, providing those autonomous sensors which at some point they're going to make their way into a lot of cars. smile direct club down 23% on a huge drop-off in sales. their guidance for the fourth quarter is about 30% below street consensus. roblox had earnings last night, they beat handley above what the street was looking for. tom: thank you so much. greatly appreciate it. the feedback we have had on this show shows wha

it is the most sweeping and can change for ge since larry culp became ceo. would argue 2008 comedy pivotal turning point. i remember being there at that point, and once the financial crisis hit and ge finance started to his billions problems, be this was always on the cards. carol level hard -- carol level hard -- carol a villard joins us now. this has been on the cards for a long time. my question is why did it take so long? >> a couple of things. the debt structure had to get in much better shape. they were very overleveraged. they needed cash flow from health care and aviation. they weren't in a financial but is in -- financial position to do it. they are now. they will have debt down $75 billion. that is the timing part of it. frankly, i think the timing of the announcement was a surprise, earlier than i certainly expected. the timing of the split, the planned timing, sounds really right. health care first, the power business later. 2023-2024, aviation will be in very good state -- very good shape, so the timing sounds right. alix: which has the most ups

and larry culp will be on the program later this hour, david. >> in some ways, not a surprise becauseany of us have follow this company closely for many years anticipated at some point it would be split into its component parts. but at the same time when you see it in print and you think about the long history of ge and the fact it will sort of come to an end as a conglomerate that was known and loved for many years by investors, but not for a long time, it still is somewhat surprising. if you haven't heard the news itself, three separate companies will be created from the current ge, health care, renewables, power, digital, health care one company, renewables, power, digital another company, and, of course, aviation being the third. they don't have the names yet at this point it's going to take years 2023 for health care, 2024 for power, renewables, digital, but you will get there, jim. and, of course, speaking of larry culp briefly this morning, we're going to have him join us, he's talking about the things that we talk a lot about, which is focus, you know, the ability to track the

not the least of which is that, and larry culp of ge said it, that it allows top people, it is a tough world, complicated to make jet engines for example, tough to make hip replacements like they do at ge, and to give top management an opportunity to focus on the business line, to use alex gorsky's phrase, greater agility, greater capacity to get the job done. simply put, it's good for management and definitely for consumers. romaine: you mentioned twinkies and car rentals being under the same roof, i assume that was a reference to itt. what he did was very successful at the time. you talk about a company worth a few million dollars and turn into a multibillion-dollar company, but as soon as he left, this is what, 1970 nine or 19 80, there seemed to be at that particular company some sort of awareness that having a multi-headed company or conglomerate in the way he built it was not necessarily the best way to run an operation. if itt and the shareholders and the board and executives realize that in 1980, why did it take us until the two thousands before general electric seemed to get t

congratulations to you, larry culp you save the company and while we miss the ge name, the divisionves with the house dievided which could not stand. i promise to find it tomorrow. "the news with shepard smith" starts now >> grieving family, lawsuits and prayers for a 9-year-old victim, the expanding investigation of the astroworld tragedy i'm shepard smith. this is "the news" on cnbc >> help, help! >> people in critical condition fighting for their lives the concert tragedy that killed eight, now being investigated by the fbi. one of the charges against the kenosha shooter, kyle rittenhouse, thrown out by the judge as -- >> the state formally rests its case >>> new subpoenas issued in th

release, it plans to spin off the healthcare unit by early 2023 and the energy unit by 2024 ceo larry culpe joining "squawk on the street" at 9:45 in the next hour >>> and up just before that i'm going to have the opening bell that is in about 90 minutes. dom chu joins us with pre-market movers >> lose stream with the last hour we are seeing some expand gains this morning in the pre-market trade, first of all, one of the bigger stories with regard to electric vehicles and charging stations evo makes that network of charging stations that can go across the country those shares are up 36% right now, largely in part because of two different separate but linked kind of headlines, general motors expanded with evo to provide more additional charging stations, 500 additional ones, that brings the total to 250 charging stations across the country and uber and evo have a partner where they provide uber high volume drivers with access to electric vehicle charging stations, ev go, general motors all moving. also, with regard to autonomous driving in the future of transportation, check out shares of l

welch and onto what we have with larry culp at ge. your thoughts on the end of ge as we knew it?: it is a sad situation for american corporate life. you might think about it that way. this was one of the most powerful companies in the world when jack welch was running at. it seemed to be the most impressive company in america and now the company is being broken up. larry culp -- if his conclusion is the best thing to do to break it up it to unlock value, he has probably made the right decision. it is unfortunate but no company can stay as big as ge was forever and has to make changes. they did not make changes quickly enough and that is why they have to do what they are doing. lisa: do you think and 10 or 20 years will be saying the same thing about amazon? david: there are few companies that stay at the top of the world for as long as ge did. amazon could be one of them but amazon is still a young company. there is no doubt there will be more companies that we've not heard of that will be the dominant companies in the world. 20 years ago who heard of amazon, tesla, even apple wa

here's ge chairman and ceo larry culp earlier today. >> i think the logic is pretty straightforward.ure like this always increase. we think we have an opportunity here to have sharper capital allocation and more strategic flexibility and clearly this is a good thing for the teams in each of the businesses, the teams today and the teams to recruit going forward given the discrete missions that each business will have. >> mike, it is off the session highs but interesting to see how just the breakup and the idea of slightly better valuation is welcomed by investors even though they have done a lot of work in the last couple of years. >> the industrial logic is very sound and in fact if anything seems an overdue capitulation that people thought is desirable, when ge became ge in terms of a premium valuation and great performance consistently it is the context of an aaa credit rating, huge capital division and therefore like one plus one plus one is more than three and it's a difficulty that larry culp had as an outsider coming in to change the psychological cost basis of the employee bas

coming up, larry culp at 12:30 in new york, 5:30 in london. this is bloomberg. check it on the bloomberg first word news. u.s. climate envoy john kerry says he believes cop 26 negotiations will produce a deal on carbon trading roles which would be a major weight after more than six years of failed efforts. carrie spoke with the blue -- kerry spoke with the bloomberg editor-in-chief at the climate change summit. >> we are pouring our efforts into research across international lines and i am confident we can get there. human beings created this problem. human beings can solve it. ritika: kerry added he was working with russia and china to curb methane emissions. -- that is according to health secretary. care home workers have been told they must be fully vaccinated as of this thursday. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. alix: definitely a positive you turn for the once bankrupt hertz. the rental company is poised to go publ

also i think larry culp has a lot of experience doing this he did it at supply chain management and understandscal and dismissive of ge a 's attempt to do various things including a share split back when some of this seems to be optic, but if you look at the businesses they run, they belong separately this is no longer a world of conglomerates or where ge uses them to smooth earnings, ha ha, back in the day. i think the core customer base, especially in their aviation business i like the move. i think these companies can be better capitalized than the mother ship. >> for a move that is meant to bring value, the stock is only up 2.7%. what is your take on that, karen? >> the market was down a couple hundred. at one point it was up like six bucks. but as you pointed out this isn't going to happen right away it will happen in stages so it is a little ways off but i really do think they are doing the right thing. they are dismantling the ge used to do everything right it hassen been that way for a long, long time. i think empire building is over. as culp said, you are providing incentives for those

it is larry culp, the ceo of general electric. cpi just around the corner. 42 minutes away.ng into that, equity futures down 11, they give 0.2% -- down 11, -0.2%. eight days of gains going into yesterday. a little bit later after the close, earnings from the walt disney company to wrap up earnings season. tom: it is a different disney. i guess they are waiting for "mende lori and -- for "mandalo rian." did you watch? jonathan: i did not. tom: should we talk to an expert? michael nathanson, senior research analyst at moffitt nathanson. i want to talk about disney on this profit call and the fear they have over the streamers. i've talked to apple and coverts goodie, doubling employee count to 3000 something. netflix with 300,000 square feet, they've got a million square feet in l.a. how scared is disney about the new streamers joining them in l.a.? michael: i don't think disney is scared about competition. i think disney is going to be focused on how can they accelerate their growth because in the past couple of quarters, it has been a slowdown in disney plus. i think there is

caroline: the ge ceo and chair larry culp speaking with my colleague david westin earlier.le, we will speak to the blue apron ceo about the third quarter results, and what is next for the meal provider, as we, the pandemic. and poshmark, forecasting missed estimates. we will keep. this is bloomberg. ♪ -- we will keep an eye on the story. this is bloomberg. ♪ ? caroline: let's talk about shares of blue apron. dropping in trading after the company missed third quarter estimates, forecasting a bigger loss than compared to the year previously. what is the outlook moving forward, and what is the company managing -- how is the company managing with the supply issues we face? let's get more with the ceo, linda findley. thank you for joining us. let's talk first about the future as we look at a loss continues. you hope to gain profitability? how do you see the world evolving in meal kits? and you are branching into delivery now, fully processed food. linda fish so we see this as a standard impact of seasonality with a twist. q3 in the milk industry tends to be the highest cost quar

the most sweeping and significant changes for ge since larry culp became the ceo in 2018.he health care division will be the first to be spun off in early 2023. president biden has interviewed federal reserve governor lael brainard for the top job at the central bank. that took place last week, a sign that fed chair jerome powell has a serious rival to his current term that ends in february. the longtime ceo of royal covering -- royal caribbean cruises will step down, but stay on board as the chairman. cfo. panera brands plans to g einstein brothers bagels. peloton is expanding beyond cardio. they have launched its first strength training device, a $495 set-top box with a camera that guides users through exercises. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ >> we are very focused on doubling down in our core markets. you many times want to talk to him, and we went to deliver that. jonathan: trying to get these cities functioning once aga

caroline: the ge ceo and chair larry culp speaking with my colleague david westin earlier.le, we will speak to the blue apron ceo about their third quarter results, and what is next for the meal provider, as we come a fully out the other side of the pandemic. let's look at poshmark shares, plummeting after forecasting missed estimates. we will keep an eye on the story. this is bloomberg. ♪ caroline: let's talk about shares of the meal kit provider blue apron. dropping in premarket trading after the company missed third quarter estimates and posted a bigger loss than compared to the year previously. what is their outlook moving forward, and how is the company managing what we hope is a post-pandemic world? let's ask blue apron's president and ceo, linda findley. thanks for spending time with us. let's talk first about the future as we look at a loss that continues. do you hope to gain profitability? how do you see the world evolving in meal kits? and you are branching into deliveries now of fully made processed food. linda: so we see this as a standard impact of seasonality

ge ceo larry culp tasked with fixing theish issue says the split will help each unit maximize individual session. liz: ge not the only company coming up with unique solutions to its problems industrials and manufactures are feeling the pinch of the worker shortage and one group developed a mobile road show aimed at finding and recruiting skilled workers. connell mcshane is on the verme er corporations plant seven production floor to tell us how they're trying to convince this. connell: yeah, i mean, the simplest way i would say is the manufactures there's so many job openings, around the country right now, so the manufactures and the road show that's setup, and it was around a van, it's basically like in the room if you ever had that experience with the kids and to make the industry attractive to young people might be interested in science and technology and they seen how things work and they are talking to ceo's about it and they say something needs to be done to bring in workers and one of the issues is getting people the proper skills. there is a skills gap. >> we certainly at vermeer

congratulations to you, larry culp you save the company and while we miss the ge name, the division themselves with the house dievided which could not stand. i promise to find it tomorrow. "the news with shepard smith" starts now >> grieving family, lawsuits and prayers for a 9-year-old victim, the expanding investigation of the astroworld tragedy i'm shepard smith. this is "the news" on cnbc >> help, help! >> people in critical condition fighting for their lives the concert tragedy that killed eight, now being investigated by the fbi. one of the charges against the kenosha shooter, kyle rittenhouse, thrown out by the judge as -- >> the state formally rests its case >>> new subpoenas issued in the insurrection probe as the former president's attempt to block records is rejected by a federal court. >>> ivf nightmare. >> the heartbreak and confusion cannot be understated. >> reporter: a family sues their fertility clinic after giving birth to the wrong baby. >> we missed an entire year of our daughter's life. >>> congress mandates new tech to stop drunk driving. fast food workers hit the picket

and the name and the ceo, larry culp, will go on to live at ge aviation.s america's biggest company, but as you know, it's struggled over the past 20 the years. ceo larry culp has been trying to turn the company around for the past three years, and ge did that reverse stock split this summer. it helped the stock, but it really didn't help the business, and we know that the aviation business, its main supplier will be to boeing, right? $22 billion sales business, power renewables, that was actually surprising, actually a bigger sales business at $33 billion. stuart: got it. now let's talk about nvidia because luminar ask is nvidia have some kind of deal going here, and i believe it's self-driving technology. >> absolutely. the world's biggest chipmaker continues to get bigger, nvidia with that lie dollar 3-d laser mapping company luminar found by that 25-year-old billionaire austin russell when to listed on the nasdaq just last year. nvidia will use luminar's lasers in self-driving technology. up 135% so far this year, and one ofif the main benefactors of t

about the ge financial accounting situation >> well, the reason i mention is only because when larry culpe in there, were a lot of issues that kind of no one knew about and they led to having to have $75 billion in debt offloaded. they led to this kind of combination of power in renewables, that was supposed to be doing very well and david and i reporting endlessly that it wasn't doing very well. was there anything mr. culp could do to keep this company together >> i found it interesting. i sent the announcement to my youngest son, who started a business in atlanta. sent it to him and said hey, just a heads up. he sent back a note saying, yeah, i remember you said two or three years ago this was going to happen. i senlt back a note say saying well, i appreciate you remembering that i felt at the time that the cultural cohesion, the operational focus, the performance, verses the s&p 500, which i think is important dynamic for any company, especially for any kind of conglomerate all of that was missing. when you get to that point, the best thing to do is get it stable enough so that you can

just replaying a couple thoughts we got last week, at least dan coty had been -- and we heard from larry culps worth listening again both of them hit the theme hard. take a listen. >> the supply chain challenges the world over, material, logistics, labor are very real i can't tell you today, unfortunately that things are getting better i'm not convinced they're getting worse, but they're challenging. they have every expectation they will be challenging through thus the next several quarters. >> we're starting to see our data centers that will be unable to be completed. at the same time, we're dealing with aggressive inflation, most of us as business leaders have been saying for months this is not transitory, this is not a two-month issue. you're starting to see that the labor market, and i find it astounding that our political sluice to this commission fire we have right now is to pour gasoline on it >> carl, that gets back to the debate about the current $2 trillion potential social infrastructure bill and whether that will in some way be inflationary. >> larry summer with a good thread this