S p off by almost five and nasdaq down by 24. You see President Trump calling out china and a little afternoon, word about nancy pelosi announcing an impeachment announcement, then President Trump saying hell release the full transcript. This is just the volatility we saw. Definitely wall street watching washington to see what news comes next weworks cofounder adam neumann is stepping down as ceo. The starrup once valued at 47 billion has shrunk in a matter of weeks he said, quote, i am so proud of this team and our company. Our business has never been stronger in the recent weeks, the scrutiny towards me has become a distraction. I have decided it is in the best interest of the company that i step down as executive each will have three votes down from 20. Weworks former copresident and vice chairman have been named coceos of the company the Parent Company, we, could layoff 4,000 to 5,000 in response to this there may be a search attempt for a new ceo. They named two and said they were permanent ones. They are internal picks but outside investors want to bring in an outside operator layoffs seem extreme. How do you chop off a third of your work force . The issue, there is core wework as we know it, which is the office space but there were all of these initiatives undertaken by adam, by his wife. We education, we life, lots of other things much of which has slowed down already. The question is, if you try to cut back and demonstrate what this business really could be, maybe that will help the situation. The big question is still for soft bank. That is an issue there is the issue joongoing. I wrote about it not a situation i think any of them are proud of or would want to be . Did i read it correct that softbank put in 15,000 and thats the whole value at this point . They put in 10. It would have been worse if it was ipod at 47 billion. And the public was left holding the bag. Thegenerous sympathetic vie is that it worked. And the public is not left holding the bag. At the same time, jp morgan was lending adam neumann money against his stock, which he used to buy buildings, which wework was then leasing is he even worth 500 million now or is that money jp morgan is on the hook for probably more than that the loaning process started in 2015. Hes not liquid. But if soft bank put in 10 billion. But their 10 billion is only worth 2 billion he has a lot of the voting but i dont know what he has in the actual got to have more than 5 billion. What was it all about . How much is his stake in the company . No idea. Well figure it out before the end of the show. Shes probably bought 6 to 8 million i thought he was leasing back he does air bnb with the Company Properties talking about a publicly traded stock, dow component nike. Revenue from china rose 22 . Figure that out. Despite the u. S. china trade fight. Saying the company has seen double digit percentage growth every quarter for more than five years. Thats like 20 quarters. In relation to tariffs, we have been strong to say we strongly believe in free and fair trade we are confident feel continue to do so under the current dynamic. Nike shares up to an alltime high yesterday janua was here and pal trussel, i remembered that you were out yesterday in chicago on its show. Im still good prevegen it works. In health news, massachusetts banning vaping sales for four months cdc has announced asking people to stop using the product. Juul will cut back on staff and hiring flavored ecigs make up more than 80 of total sales. In trade news, china says they have no intention of unseating the u. S. As world leader he called on washington to remove all unreasonable restrictions welcome china beige book international. We need a little different color than beige it is a little darker. Third quarter was weaker worse than 2019 in manufacturing, the brunt of that deterioration. Not just that it is weak but weak despite that there is more credit provision going to the key con my the chinese have had the position that they are not doing much to stimulate the economy. Refraining from heavy infa fracture investment. Which is true. But they are doing more than they are admitting our borrowing numbers are sky high borrowing by firms sixyear high our shadow banking numbers are so interesting the ideas that they banked the last few months, weve seen the largest share of shadow banking. Growth is slowing for these industries but it is still growing. It is not declining. Much less is these numbers produced by china. Can the beige book tell us . Si sift through all the noise we dont advertise it, gdp doesnt matter that much our view because we have to play this game. Fourth quarter last year was down do down and it has gotten weaken from there. Somewhere near 6 but not anywhere near the smooth performance the chinese are claiming the chinese, they are used to some big gains and really a quick rise into the middle class. I dont think they take that for granted. This austerity theyll have to be subjected to, do they have a lot of staying power do you think xi is saying uncle when they started to feel how bad the Fourth Quarter was this scared the chinese and we saw a major rebound into 2019. In the short term, xi has said uncle. They are going to hold out the idea of doing all of this restructuring and reform look, you got a lot of head wind enormous debt. It is never going to be easy irdont like to feel pain but when is this reformation gloioig to start so they still need to buy sneakers some companies do really well nike has there are a lot of basketball players in china that have been widely followed. Thats amazing. Best buy and well hear from the ceo and a look at winners and losers in the dow. Nike is there, reportedly, it is a dow component. This is apple card. A new kind of credit card. Created by apple, not a bank. With a better way to track where you spend. A new level of privacy and security. Daily cash you get back every day. And no fees. Not even hidden ones. Oh, and if you happen to be somewhere that doesnt accept apple pay yet, theres this. Nice. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Welcome back to squawk box best buy holds First Investor day. Today under new ceo laying out the new fiveyear target and reportedly hitting 50 billion in earnings. Discussing tariffs on their business here is whats so tricky. The lists themselves are still in the process of being stabilized they are not easy to read. It is not like a perfectlity rated list first, we are trying to figure out what will be on the list we are working closely with vendors and bringing product in early. You are continuing to see supply chains move. In august, there was some conservatism based on what may or may not happen on the whole when tariffs go in if there are price increases, what will be the reaction. We just saw Consumer Confidence hit a ninemonth low are you seeing changes to best buy yet . We are not. Unemployment at 3. 7 we also saw the most Housing Starts in 11 years we are not seeing this degradation broadly. She has said everything stabilized ultimately. Feeling strongly with the instore network, website and services is the right plan regardless of booming Economic Growth or not. I guess that is the question. Players like this like walmart and target, they have other areas that dont get hammered by the tariffs. Thats a point she said, once we figure out which items are subject. They try to use the portfolio approach and move the cost, it is tough when almost all your products are on the list 60 per of products are made overseas they are the last standing large provider she said 60 of goods sold should be 40 next year. It is a great management between between corrie and the others it is amazing the cost theyve been able to cut out of that business. Theyve got more to go they announced more than 1 billion cut of costs this morning. Thank you when we come back, an exciting day. We are launching a new podcast details of how you can take part and crypto alert bitcoin dropping dramatically. You are looking at bitcoin below 81. Stay tuned with us here on cnbc. At synchrony, were changing whats possible every single day. And if you run a business, that means a lot. We create Financing Options for your customers. To help them get the things they love instantly. 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But were also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. From the day youre born we never stop taking care of you. As everyone knows, you can watch squawk box here on cnbc weekdays 6 00 to 10 00 a. M i think the people you are speaking to know that. As everybody knows. As many people know. There are a lot of the smartest most influential people know. They know but i digress we are launching a podcast not going to be the best day of everyones life. Squawk pod brings you the best debate from the best show in business news. Are you the one promoting this when you do it, it sort of drips of insincerity as opposed to your im excited about this. This is a great podcast youll get the behind the scenes you want to intro it every day . I do. My podcast you listen to podcasts. You put these in your ear every day. Backwards backwards like you do but you are hopefully only going to do this if you missed the show some times people see the show 10 or 15 minutes on their way to work and you catch up. You dont see anything . Can i let myself go . You dont have to suck it in for the podcast. What have you been doing . Dont have to worry about fixing my tuepe and everything. Look for us every day on cnbc. Com podcast on Apple Podcast or your favorite podcast app. Squawk pod, subscribe today. Weak start. Strong finish. Coming up, big news in media land vox media buying new York Magazine later from trade talks to impeachment proceedings, what do investors need to know and where to put your money. Asking former white house chief of staff bill daily what is going on and where this is headed but first a look at yesterdays s p 500 winners and 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. It also has the highest growth in manufacturing jobs in the us. Its a competition for the talent. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. Announcer welcome back you are watching squawk box live from the nasdaq marketsite in times square. Good morning. Bitcoin dropping again after it plunged about 15 yesterday. Briefly traded below 8,000. Some are blaming the drop on the tepid reaction to bitcoin futures. This morning trading at 8,024 are you ever you were going to buy and then you didnt do you have an entry point at this point i think i will never ever buy for myself personally. If i did for my kids that they would have it for like 20 years. It went to 20 then 4 then 13. If i did buy it for my kids, it would be a nontradable. I thought it be under 5,000 at this point, for the children. Do it for the children. Like the Childrens Fund. The hedge fund that has nothing to do with children. The sorkin fund do you remember george, for gifts. He didnt like giving people gifts. He would say he gave to charity. Someone pinned him down. He said he gave to the human fund Childrens Fund is the same kind of thing it would be like buying a Lottery Ticket it will be worthless or worth a lot. It can be very volatile currency doesnt move around like that. Like gold but if you are paying your rent in bitcoin. Talking other headlines, at t plans to keep direct tv. Chief operating officer said the service is an important part of the companys strategy those stories of them spinning it off you thought were greatly exaggerated. At least for now. Saying at t spins off a lot of cash and that cash flow is important right now. That is an important machine. Call it a melting ice cube it creates cash. Where there is debt to be paid off, not something you can get rid of lightly there are valuable questions to be asked is it a melting iceberg, which would slow if like Elizabeth Warren with a new green deal how quickly would it melt . If we stopped the rise of the seas it has been kind of in the news . It is melting in the same way do you think one administration could get it to melt a little slower i dont think any one administration could get it to melt slower. Youve got three suvs im talking direct tv this with one is big, vox buying new York Magazine the ceo will continue to run all aspects. It wont result in editorial layoffs. The new yorkrelated publications wont close the late leader, his daughter has been running it. She will become the president of vox media. This is not the new yorker. I need an elitist media guide. Do they have thosegreat cartoons that is the new yorker, owned by same owner of vanity fair and vogue. See, this is what i need. New York Magazine has been an independent magazine the person running it, stepped down a few years ago who is running it now his former deputy wow, this is tmi. Bill daley will join us to discuss the talk of the how much impeachme impeachment inquiry. You are watching squawk box. Todays big number, 15 thats how much of the world easy internet bandwidth is used for streaming. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. 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Today, im announcing with the house of represents moving forward an official impeachment inquiry. Preceding with investigations under that umbrella. The president must be held accountable. No one is above the law. The president was quick to tweet his reaction an important day at the united nations. So much work and success and the democrats are to demean it with more witch hunt news bad for our country. Joining us bill dalye, former white house commerce chief of staff. What does that mean for the next election you are somebody who knows a lot about this having been through the last impeachment proceedings. President clinton was good as co come partmentalize it. This president i think will fuel it president clinton was impeached, evicting him is another thing. It was his second term too. He wasnt up for reelection. I think thats why nancy pelosi has been reluctant to launch this. Do you call this a firm launch because she didnt take a vote it is a process nancy pelosi follows a process she is not holding anyone accountable to vote yes on it. It is a big step. Explain this to me, what do you think her calculus is. She didnt do it before around the russian interference issue does she do this under pressure or because shes more convinced thats it mo that it is more of a problem nancy pelosi is the best politician on the hill i do believe she understands her membership has changed you get so many from purple districts saying they are now for impeachment, it is a fundamental shift. This whole ukrainian whistleblower it has changed things i think right now, it probably helps him. It confirms everything he has said they are doing. You dont know what will come out in an investigation. I maybe would have thought it was less political if they had waited for the transcript and the whistleblower it is pretty obvious the white house will try to block any attempt. Then you have the question of is that enough. Should you have the taips. All of that side show. It has been there position, joe. I dont think there is a fact of total cooperation. I was chief of staff and