Flat that really does obscure a lot of drama up at least 2 s that has been pretty dramatic. Also why the nasdaq has been down so a lot of those profits are coming out of there. The hang seng up by 1 3 4 mentioning those tariffs that china will be taking off those goods. We have more on that front in a moment also an American Chamber of commercesaut u. S. Chamber services have been getting hurt and many of them are moving away more quickly than anticipated redirecting businesses there in the meantime, lets look at what has been happening. For the most part, green arrows. The ftse is up the dax up about. 75 . And cac is up. The trezy market and yields, they have firmed up. The 30year trading almost 2. 2 . 10year at 1. 714 . Twoyear note at 1. 67 breaking deal news, Hong Kong Exchange proposing a 36. 6 billion cash and stock offer for the London Stock Exchange saying it approached the lse with a bid last year, they agreed to buy refinative in a deal peloton says it plans to price shares between 26 to 29 each the road show could start as soon as today. The company has been a member of the cnbc disruptor 50 list for the past two years today, going through and grading each of these ipos and how clear they are saying peloton is a little different. Being clear with facts its a much better situation well talk to him. It is a relatively clean Business Model you could have a lot of disagreement of how big it could get. They give actual numbers versus so many of these other ipos or potential ipos in the meantime, related ipo news, it may be full speed ahead now for wework the company is president ising ad with plans and the road show could kick off as soon as monday softbank wants to halt or cancel the ipo. The backer of a company which really does need more capital. And will softbank be the one that gives them more capital right. Some trade news out overnight. Beijing out with a list of products that will be exempt to additional tariffs is this something of a peace offering yeah. First of all with the list it includes 16 types of u. S. Imports. The counter tariffs are going to be suspended for more than a year products are around feed and drugs. The Foreign Ministry said today that it was hopeful in the u. S. That the chinese would create favorable conditions for the chinese. Just an hour ago, the state radio gave a little hint why they decided to do this saying the exemptions are meant to impact the trade dispute on companies in china so similar to how the Trump Administration decided to delay some tariffs to december in order to not disrupt christmas which was seen as more of a concession to business and consumers, it likes like the chinese are being more practical to ensure they dont affect some of the more serious issues one is the african swine fever that has been killing off a large part then there is the fall army worm, which is a bug which has been invading the crops and has been a serious issue here. It looks as though the chinese are going to be much more practical when it comes to these tariffs. I had seen another report that said the American Chamber of commerce with u. S. Companies and operations in china. Many of them are moving operations out at a more rapid clip than expected 26 of companies surveyed said they are redirecting to other countries. I think that was really a high light because that number of 26. 5 was higher than last year that really showed that American Companies are being affected by these tariffs. One of the motivations was that the tariffs were affecting their revenue. The combination hasnt been good for the business more of them are redirecting investments meant for china outside this country looking forward, they werent really optimistic about a trade deal and said if there isnt a deal in 2020, the situation will get a lot worse. Those are longterm Strategic Investments and it is hard to change a flow once they start moving out of the country. Does that resonate or is it a concern or, look, the price of trying to get something done in terms of the chinese perspective on this . I think it is a very, very difficult situation now for a lot of the u. S. Companies. When i talk to manufacturers, a lot of them told me that they are stuck. They might want to move some of the business aside a lot of people have been sending teams to other countries to assess how practical it is to move their businesses out and diversify more the infrastructure is so strong and the skill set is so strong they are being hit by the pressure so pretty much everybody i have ever talked to is at least thinking about, if not already redirecting investments. That was the crux of what was coming out of that survey. Thank you an expert about all things happening there. Eunice, thank you. Apple hosted the annual fall Product Launch yesterday a quick run through on what was announced. First three new Iphone Models. The 11, the 11 pro and the 11 pro max with improved cameras and Battery Point and a lower price point. The newest ipad also has a lower price point starting at 300 the new watch has an always on display and you get up to 18 hours of battery life. The new model starts at a lower price point. Tim cook also announced the new streaming service. We are excited to tell you the new shows will be available november 1 well be adding more apple originals every month. Apple tv plus will be available in over 100 countries at launch. It is just 4. 99 per month for your whole family. That price point undercuts disneys new streaming service which starts at 6. 99 a month. Some of the stocks were underpressure yesterday. That will seem to restrain likely people thought it would be double that, perhaps we are okay with just very increment al introductions now it seems like it. One more thing and then you get blown away in this case, the watch stays on this company has been transforming it has. They also introduced the gaming platform. Subscription services foretell vision and gaming. Revenue from services has become a much bigger issue. For a while, we went back on the notion that cable and other companies were going to get their lunch eaten by streaming then eventually we said streaming would cost as much as cable. The phones are bigger. I like this. I can carry it around. You have a small one the bigger ones. You like the small one . You can still get those the battery for this, i think is 50. That appealed for me just get a new one, a smaller one. Can i get everything, the pictures moved over. Arent they on the cloud . I think they are. How much better can the cameras get . I want a new camera im a couple of versions behind. Can you add more dog ears and noses . Just a clearer picture. The phones after my phone, they do take better pictures. Maybe for us i dont know. Im not on instagram pictures are a big deal. How people communicate. Work with me and bring me along. I havent brought myself along. Santoli seems to be clicking on not really on instagram im on to monitor my children more than anything else. I dont really post. You dont but you are able to look in . Sure. Consumer ive posted there maybe 20 times. A likth much bigger than twitter for teens, yeah why it is a cool factor they think so closely about posting the right picture at the right time. A popularity pool every time you post and they are talking about deemphasizing likes or getting rid of them . Im glad i have no danger of being a teenager. Coming up, Central Banks decision starting with the ecb well show you what jamie dimon said a look at the winners and losers in the dow, in this case it was sophies big day. By the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Go where my baby lives b[ growl ]olle s good boy. Hey. Hey. You must be stevens phone. Know whos on your network and control who shouldnt be with xfinity xfi. Simple. Easy. Awesome. President trump apparently watching and just tweeted. China suspends tariffs on u. S. Products being hit very hard supply chains breaking up as Companies Look to move to other countries. Much more expensive to china than originally thought. I think those are quotes from you and eunice we were just discussing this matter and giving insight to what is happening. It was hurting china badly in terms of the pesticides and other issues this is a limited number of items putting put on this list it is targeted to bring less pain to the chinese public like pesticides and cancer drugs. You know what this means . I wont be able to look at my twitter feed again for about four days without seeing, literally a thousand notifications. I look and none of them are directed at me at all. I dont know. Exactly. But it is insane twister followers, hes got like 60 million then he added it all up ands it over 100 i dont know he has his, the real donald trump account and the potus account for the two. All right, in other news, jp morgan Ceo Jamie Dimon says he does not expect rates to hit zero but is preparing for it either way back in august last year, he was saying he wouldnt be surprised to see the 10year at 5 hes been leaning in that direction a while. A lot of folks havent been able to get 5 0ly mated to these rates. If you run jp morgan, you got to by ready. It is a busy month for central bankers with a closely watched ecb decision and the Federal Reserve meeting next week joining us now to talk about what that means for the markets. For the folio manager and head of fixed income industries at s p down jones good to have you here. Chris, we were just talking two days almost dead flat s p 500, a lot of movement at the surface this crowded growth momentum stocks, cheaper value stocks how does that affect you a real shift or mechanical adjustment here . It is real. We are benefitting from it more of a value vesting firm the momentum growth for people were crowded over the summer looking to buy growth. We are seeing that pull back for us, it is working well do i think it is going to continue into the long term, probably not it will be some good buying opportunities. We are not in the camp of a recession. We think as 2020, as people want to get reelected, that growth will come back we are going through an air pocket and are still pretty bullish on the out look. If growth will come back, doesnt that mean value stocks would be out performers. Value is seeing inflows out there. Certainly outperforming the last few days. There is legs to it. I wouldnt count out some of the growth stock, the software names. There will be great opportunities there to put the money to work. Dealing with that opportunity, we are seeing a pronounced rise in treasury deals, how does it all speak to you now . We are seeing a rise in the tenyear over double what we were seeing. Jam ji dimon was calling for rates to be hire up 8. 7 compared to s p 500 at 3. 7 a little more than double. Looking at the treasury index over 14 Investment Grade bonds 13 everything is green. Looking across the world in terms of our fixed income basis. We are getting some volatility now in the market. People that say bonds have gotten too overloved, theyll start with those numbers the returns have been so good and a lot of money has chased those and maybe they have to swing away from there. Right they have to see what level of yield are they attracted to. Not necessarily chasing 10 returns. I think of the bond index yielding about 1. 6 . After tax basis up about 1. 2 . Would you take that over the italian 10year or the greek 10year. These are yielding higher than those. Someone will say ill take the s p at 2 and take my chances. We view the steeping of the old curve as a bullish indicator. A steeping of that yield curve is really good and broadens out the participation in the marketplace. Your value names continue as well pattern has been in that meeting in terms of the market i would say they are sure theres going to be a cut here coming up. Longer term, i think the fed actions are not as significant we want to see resolution to the trade. We are hearing some of that today. Look, the supply chains we talk to, he is right. They are moving out making the right decisions. Thats what capital works. Well leave it there. When we come back, a potential set back for the gig economy. A bill in california possesses a threat to the Business Model of Companies Like uber and lyft well also tell what you it means for investors. Squawk box will be right back. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Were changing whats possible every single day. With technology that helps you offer shoppers a better experience. Take your companys app. We can add in all sorts of capabilities, which help your customers manage rewards, offers, and payments on the fly. And now, applying for credit can happen in a flash. That way, more people can start shopping with you on the spot, wherever they are. Hows that for changing whats possible . Theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Classical Music playing throughout a bill that would give new workers protections. In california, it could spell big trouble for Companies Like lyft and uber who rely on thousands of socalled gig workers making it harder to classify workers as contractors. Both companies have proposed a referendum theyve also asked to be able to pay some sort of fee to get out of having to do this in other words, well pay the state so we dont have to pay the workers. This is a threat the question is will it spread to other states and municipalities what does it mean for those stocks the companies have said they dont expect to get any profit anytime soon the companies have mostly succeeded by going between the cracks regulatory cracks yes because it is a different employment style. You could call yourself a Technology Company for all the states who need uber and lyft, california is the one traffic is already so horrific in places where it has gone into effect, they have raised prices and consumers have been willing. If you are raising prices to pay workers more im saying transit in california is not effected if youve got to go from pasadena to santa monica, it is healthish. They say they should be earning a minimum wage and treated as workers not as contractors some of them are not making minimum wage because they are not employees. When you look at the cost of running the car. If it was a terrible situation, you wouldnt have any drivers. Are the Taxi Companies involved with the lobbying like this maintaining insurance or the cars to a higher extent. The weather is nice there but the traffic. It is a close call you are right the traffic here is awesome. Not like out there. Once you get out of manhattan. There are six lanes that arent moving it might be different with google maps. Apparently waze has destroyed. Anything is better than sitting on the santa monica freeway for an hour and a half to go three minutes or the san diego freeway. Brutal horrific out there when we come back, peloton preparing for its public debut out with a price range for the ipo. Leslie picker joins us with more based on those numbers right now, lets look at yesterdays s p 500 winners and losers losers through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. I can shine. Imma do what im made to do. Built for excellence. You start from the foundation up. The excellence is reaching dreams and chasing them at the same time. Great riches will find you rewhen Liberty Mutual customizes your Car Insurance, so you only pay for what you need. Wow. Thanks, zoltar. How can i ever repay you . Maybe you could free zoltar . Thanks, lady. Taxi only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back. You are watching squawk box live from times square good morning, u. S. Equity futures continue to be around the flat line more or less especially the s p up. 01. The dow indicated up 15 or so. The nasdaq weak again this morning down around 3 points ipo news out. Peloton has a price range for the public offering. Leslie picker is here with more on that front. Peloton preparing plans for the 1 billion offering. The company is selling 40 million shares between 26 to 29 each the terms officially kick off the road show where the inhome Fitness Company valued as high as 8 billion. It makes spin bikes and treadmills and charges for subscriptions. Investors need to decide whether they see them more as a hard wear or Software Company comcast is an investor smile direct club is expected to price in its startup allowing them to sell at a fraction of the cost of traditional work if both of these Companies Price as the high end of range, they would be the fifth and sixth largest ipo of the year and both are listed here on the nasdaq, guys. Higher than i would have anticipated. Weve had so many ipos coming down the pipe. This is the size of pintrest. Relative to sales, the peloton valuation is about nine times sales. They have about 915 million for the fiscal year through june 30, 2019 smile direct is about half of that they are looking at double the multiple peloton is cheap if you think it is a Software Company and expensive if it is a stationary bike seller. A Software Company, look at zoom communications that is trading at 55 times the sales now. It is really nice well have a bunch of really fit thin people with nice smiles yeah. A bit of optimism. And new iphones to post their pictures and better instagram posts to