sam zell, chairman of the equity group investments.ave been talking internationally and about china, the one thing i wanted to pick up from the earlier conversation we had about sort of pushing on this and the point that you made the democrats have not really come out against the policies of the trump administration, maybe the approach my question is about the approach do you think the approach is right? and what do you do >> you know, i can't help but think about the army mule, you know they tell a story about the army mule, you know, how do you get an army mule's attention you whisper in his ear, but first you hit him over the head with a 2 x 4 i think that's what we're dealing with in other words, you know, the chinese are very adept at not -- you know, not accepting anything and so you have to hit them over the head and i think that's what trump is doing. >> how long do you think this plays itself out for i know you've been waiting for -- >> i don't know the answer to that i mean, there's so much here in my opinion that's in china'

if anybody missed it sam zell was on "squawk box" talking. >> sam prokd disagree with him? >> turned bearish. i'm talking about the bad one. timed it brilliantly this morning was asked what he thinks about fundamentals. take a listen. >> i think i have been looking for a recession for some time. every time i get a signal that it's likely, i get a reversal. which i have never had that experience >> he's never had this experience before. who has more experience than sam zell there is something difficult about figuring out what's happening. >> negative rates. >> that, too. >> i will tell you how the fed will handle it they'll cut a quarter and wait and see. they are not going to promise you the rose garden of multiple rate cuts ahead of time. if you want the fed september 18 or 19. >> 18. >> to promise you 50 basis points you ain't going to get it you'll get 25 and be happy with it. >> no, he's not. >> a lot depends on the random number generator known as non r nonfarm employment. >> it's been stronger than expected hasn't made a difference neil, we'll give you the last word h

could call this the ultrabear case for wework as it gets ready to go public but when someone like sam zelle of the pioneers of reits comes on cnbc and says he's seen this type of business model before, for decades now, and that there's never been a case where a company like this has actually not gone bankrupt, you think, what? is therea sustainable long-ter business model here, especially in a recession >> yeah, you know, it's funny. when you mentioned sam zell, there's an open question as to whether wework should be considered a technology company at all certainly, they do some interesting things in terms of using technology to enhance their environment and workplace environment and product offering but fundamentally, it's a real estate company and i do think we've seen models like this before so, you know, i think, you know, sam may have a point but i wanted to underscore one thing henry said, which is, public market investors are valuing businesses, you know, i think this is good news, because the public market is valuing businesses based on fundamentals and the private market sometimes

various tenants and that's obviously a recipe for disaster any long term property investor like say sam zell would tell you this is this is a disaster and of course we have some headlines regarding this is sort of this is a classic mistake of property developers and now they've turned it into a huge market like that we work to open ear coal we they've signed the billions and billions of long term leases. isn't the idea is to fill it up with short term tenants and now the economy is going under and the company's probably going to go bankrupt and that they're the biggest leaser in major cities all over the world and it was totally predictable there the number one tenant in london denver new york and i think it was a los angeles as major cities around the world they are the number one there if they go under there's going to be huge dislocation and in fact we're going to get to that headline from the fed president of boston he talks about that but here's a 1st tweet if you wake up on a cast for a mattress hail a lift to get to your desk that we work used or dash or a launch and have to bring you

on the squawk show in the mornings, in sam zell was on and threw a lot of cold water on we work if heoesn't like it, why should i we mentioned a way to play this space. i will say it again, nasdaq makes an all-time high and dan ridicules me all the time about exchanges, although it is not in the equity space, the chicago mercantile exchange continues to make all-time highs and, might i add, isn't terry duffy going to be on our show in subsequent weeks? >> i believe in october. >> that will be very kpooesing. >> yes you can read more about we works ipo plans from cnbc's alex sherman on our website beyond meat getting grilled after davidson initiated coverage on the stock, with an underperform beyond meat falling more than 3% on the day. brian holland, senior research analyst at d.a. davidson brian, welcome to you. >> thank you. >> you think the total address of the market is smaller than what most people, most analysts are thinking, and you are saying it is smaller than potentially the milk market? >> yes so i think on a relative basis that's right we view plant-based as a solution wit

one investor, sam zell, is not a fan. sam: the worst part of it is the corporate governance.ble. the idea that jp morgan is putting out an ipo with that kind of corporate governance is unacceptable and is very negative for the whole economic system. taylor: wework may take off next week. but it is not the only company that is disrupting the co-working space. wework competitor the riveter has opened 10 community working spaces across the u.s., designed to accommodate women specifically. since 2017, the company has raised $21.6 million with the goal of advancing workplace diversity. the riveter ceo and founder, amy nelson joined us on tuesday. amy: wework is obviously a giant in the industry but the riveter is standing somewhere else. we are like a modern-day union for working women. we provide a number of different price levels and access for our members. we cater to a demographic that needs truly flexible work. they might need a part-time membership or drop in hour-by-hour. we look at how we can advance our community and the workplace through innovative programming like offic

sam zell. ashley: that was pretty long. stuart: pretty strong defense by the president, quoting sam zell of his trade and tariff policies. check the dow industrials. we were up 200, now we are pea up 170. we'll take it. the dow up .66%. we'll be right back. liberty mutual customizes your car insurance, so you only pay for what you need. i wish i could shake your hand. granted. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ stuart: all right. walmart is opening its first health clinic in georgia, offering everything from shots, x-rays, dental, eye care, you got it, you name it. they're going to provide it. marc siegel is with us, as in dr. marc siegel. that's a revolution. >> i forgot to mention 16-minute counseling sessions. you go to walmart and you are going to be able to get psychotherapy now. stuart: really? >> absolutely. labs, x-rays, immunizations, medications. there are nurses there, doctors there. they are opening up in texas and georgia and south carolina. stuart: that's a big deal, because pe

later this morning, don't miss sam zell he's going to be on squawk box which is the next program. std anby servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you. there were tsunamis fourtin the world. and once they happened, we were in a major hurry to get to those regions to provide aid and support. it was very humbling to be able to help out all those people. it's my dream now to go into clean energy and whatever the next new fuel source is, that's where i want to be. i want to be on the front lines of implementation. here, hello! starts with -hi!mple... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life s

go pear shaped when it gets bad and to your point what put the cherry on soft don't discount the sam zellview on "squawk box." he basically stuck a pitchfork in this thing and it's been going down ever since. softbank doesn't want to be tarnished and a conversation friday unintended consequences, people are looking to throw money at places, quite frankly -- >> that's why it's bigger than an eccentric silicon valley found they're needs to be replaced by a ceo-type to get the deal done this goes to the heart of what's going on this is where the bubble is. this is what's happening remember when you talked about bonds and when things blew up in 2007 and 2008? it's happening again but in the vc world. >> money has to find a place. >> we have a bubble in money there's too much money it's trying to find itself you get stuff like this. i think we'll look back and i'm not saying that things are falling apart tomorrow but we'll look back i think and point at wework and say that's when the vc bubble burst. >> but the fed bubble is not going to burst and by the way i'm not suggesting that there aren'

sam zelle just yesterday said listen, i get there are warning signs, but i don't actually see a recession. >> a couple things. on the china front i feel like we live in a yo-yo on this thing. trade talks are on, off, trump is tweeting, not tweeting. markets are going to go up on the latest but not be any different than they were two years ago. on the economy i agree a slight pullback in manufacturing and some less capital expenditures by business is not necessarily nightmarish for the economy. what i worry about and we look at in the jobs report coming out friday is are we ratcheting down in the number of jobs but is the work week getting shorter? the work week got shorter in july. if it gets shorter again in august that means employers are increasingly worried about recession coming. they're worried about the impact of the trade war, not asking workers to work as much. usually when we see a shorter work week the next thing we see are smaller jobs reports, less consumer spending. if you take that pillar out, manufacturing declining, cap kp declining, and the consumer declining, that is re

if the economy holds, sam zelle said it earlier this week, he does not see a recession before 2020.omy holds, can that carry president trump through the election? >> it is the thing that trump is going to run on. absolutely. we know that he is signaling that. it gives people who want to support him something to hang their hat on. we heard this in 2016. even people who were rolling their eyes but holding their nose and voting for him saying, well, he is a businessman. he'll be good for my business, for my life. >> were there people in 2016 that said that? trump's base wasn't saying that -- the investor class didn't. >> we talk a lot about people that voted for trump in 2016 as if that was the only election that happened recently. there were the 2018 midterms where we saw dense populations particularly in suburbs and ex-urbs of people saying, look. this is just not working out for me. maybe i saw a little bump from the tax break but i don't like what he is doing over all in the economy and for the country and so i'm going to vote for the democrats who are going to hold him accountable