A couple of big stories this morning. Peloton pricing the ipo. Price tag at 29 a share raising about 1. 6 billion now valued at roughly 8. 1 billion makes about a billion in revenue but loses 245 million annually. Now under the ticker pton. The peloton ceo will join us live this morning. If you have questions sen them in peloton. 245 million in losses well talk about the math of that and where they see profits and what it all means. Does anyone know about the treadmill . I do. It is expensive. It is about 4,000 the bike is about 2,000 plus. I have one. The bike is quite a piece of equipment. It is heavy. It is really well made i just got one two weeks ago. You can have someone screaming at you you can go outside. It is there, all free. Eamon javers is with us the hardware is a highmargin product. Higher now than an iphone. It is the services and the investment and the media component costing them they are doing a lot of build outs is that recurring cost or eventually be built out . Their argument is that those are up front Capital Expenditures they need to do they are building in europe, so it is not just trainers with different accents. It is not like you pay a trainer one time a lot of it is building facilities disclosure that cnbcs Parent Company is an investor in peloton. Separately, softbank planning to put an extra 1 billion into wework the deal that was put together before the valuation was dropped. Noting that their talks are in early stages that 1 billion investment would come and benefit some other shares of previous investments so it is not a clean up if it happens, theyll get 1 billion but softbank will get more of the company for that gm and the uae uaw it is early there could be a deal. Dont jump the gun have you heard about a deal . That would be news. The uaw and gm said to be close to a deal to end the strike. Negati negators have been meeting and talks intensifying see, eamon, it is not just you. That is why you are here. I can talk exercise equipment and washington stuff obviously you dont need to health us about that javers. It is written all over wall street is watching headlines coming out of washington this week eamon javers is with us. You spent a lot of time on this with sully awesome. Yesterday was a day covered by impeachment talk. The president really frustrated yesterday that this impeachment talk really stepped on what he felt was a successful week at a press conference here in new york, i asked him why, sir, is it appropriate for an american president to ask a foreign leader for information about his ukrainian rival. He gave a long answer. Here is part of it the new president of the ukraine is looking to stop corruption there is a lot of corruption going on i just told him about senators that threatened him with no votes and no money coming in thats what people are trying to say i did. I didnt do it it was perfect there was no kwquid pro quo he didnt really answer the question today, well see another day dominated by this story. Well possibly see this whistleblower complaint itself it was declassified last night and may be released to the public this morning. Can i say that eamon did that entire thing without anything written. That was all off the top of his head he did not say take a listen that was really good at the end of the day, if you could get rid of take a listen Going Forward. My jargon Going Forward when they talk about the prospects Going Forward. But do you know who said it best yogi the hardest predictions to make are the ones about the future. So true insanity and brilliance, really close to each other so you are an outside exerciser . I need to swim and jog a little bit but i dont get nearly enough exercise you need mental toughness there. I want to take you to one of those marine one departures and you can see the wrestling. Still thin volume impeachment odds are up about 60 cents now. The finishing the first term are down in the high 70s that is low well it is 20 republicans and youve got like a half mitt is like a half at this point. You need 20. Ill tell you what i mentioned i mentioned fliecher hes not a never trump but hes not all in. This is a fiveyard penalty. Not a 15yard or half way to the goal it is not all the distance and certainly not Something Like a spearing or whatever where you would be deliberately hitting the guy on the chin. That was his point i think republicans will probably stick with that in the senate. But maybe quiet yes you saw Lindsay Graham say, if this is what you have nobody is saying this is good a lot of them have been really quiet. Well see that whistleblower complaint. A lot of this will hinge on what is in that complaint the fascinating mystery here is who is this person or why they made this statement. And interesting that Elizabeth Warren is arrest i dont know what happens to the stock market with her. Im not sure if Lee Cooperman said the market doesnt open the day after. Swro he was just kidding i would think the stock market would go up. What is interesting to me, we dont have the Traditional Chamber candidate. Trump is not a free market capitalist in the sense of a mitt romney traditional republican we have seen before he does like the private sector hes a far cry from Elizabeth Warren zwroo it help or hurt trump in 2020 and does pelosi take it to a vote Going Forward we cant rule out what a firstterm impeachment looks like all the bad stuff is happening to the president in the first term i think peoples minds are made up on this president unless we have some dramatic bombshell you are leaving i got to get on an airplane im taking a 9 00 flight. Im going to have breakfast and then go. You should go to the airport and have breakfast sleep is more important than exercise thats what i told the producers and they didnt buy it dr. Scott and then dr. Oz start branding now you are mentally tough even under no sleep well done. When we come back, more trouble for facebook looking to launch an antitrust probe. Weve the details after this and looking at the biggest premarket winners and loses the dow is leading the dow this morning. 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. Learned ao play second language applied to college applied for a loan started a business started a blog shared a picture shared a moment turn your wish list into a checklist. Learn more. Do more. Share more. At home, with internet essentials. Welcome back to squawk box. Facebook coming under fire again. Reportedly opening an antitrust probe into the company according to a prodding by bill barr facing problems with the federal trade Commission Getting to our guests this morning. Welcome to both of you good to see you guys lets talk about where we stand now. Markets, the dow 1 . S p down 1. 4 . Should we be at these levels one way, we are near annualtime high we back a little above january markets selling this year or next as well that is not a Terrible Market back drop. It is hard to believe well get a huge amount of return at these levels we did see stocks move higher after they said the president could come to a trade deal with china. What would that mean clearly one of the biggest concerns right now is the trade war. Youve seen evidence of that everywhere youve seen pmis here and globally there is no question if the trade war were to be actually resolved, not just a paper deal for a few things but would substantially reduce uncertainty. You would see industrial sector do better. And the impeachment talks, what does that do . Today, with the movement, we are back to where we were before the impeechment proceediachment. Can you see a new nafta deal . A new trade deal with china . What are we going to see hard to predict youll get a tremendous amount of progress moving through those things would all be positive we could come up with a great deal with china. The way to think about u. S. And china, we are longterm rivals it is unlikely youll get a deal so comprehensive to get a deal next or or the year after that getting a deal that would address all of the underlying issues, that would be hopeful. Is it starting to look clear to you that Elizabeth Warren is looking better as you know, im a lifelong democrat but Elizabeth Warrens stated policies are not market friendly but youd vote for her . Probably yes. In we get a recession, President Trumps likelihood goes down and Elizabeth Warren likelihood goes up i think the most likely scenario what do you think the economy would do over the next four years with Elizabeth Warren was president . If you go back and look at the presidency and markets, there is really not that much connection between president and policy you dont think it matters im saying as far as the market is concerned you think 70 tax rates wont be a problem obviously, i dont want those kind of policies the market has worked higher under republicans and democrats. We had 70 tax rates you think it is okay . You need to look down below the surface to the details look at what happened to health care compared to the status quo. You would get a little bit of pax in trade war and that might be good for industrials overall. There is not a lot of evidence to suggest one in terms of another. We are very late in the economic cycle. Regardless of who is elected in the years time, we are likely to face overriding slow down that will be the overriding key regardless that is the key it comes down to fundamentals. Fundamentals of change. If we do get a president where earnings collapse, that will be a negative in the market. Do you think down in venezuela, it doesnt mat who are is president we are a lot different. I know that, things do matter dont want to say you are a socialist. Democratic socialist versus free market sector. Socialism around the world hasnt worked. I think if we look at the tax rate question, it has been the case there have been higher tax rates in the past. The degree of inequality now is close to unprecedent the especially in our lifetimes. It doesnt necessarily mean you reverse to a very slow economy you go back to where you were in the 70s and 80s. Certainly the wealth tax that has been proposed, it could. You dont think over time the higher gdp growth helps . You are not a trickle down person, i guess. I think because over the years, the majority of tax cuts go to purchases. We have to go i didnt have to say a word thank you for joining us coming up, im hopping on a bike with peloton ceo ahead of the companys ipo. I dont know if i should encourage you to see that and dont forget to subscribe to our new podcast. Special content and the latest headlines. If you missed any of the show, you dont want to miss this. It just started yesterday. It is absolute li worth a subscription and a listen. Look every day and go to your favorite podcast app and subscribe. Back in a moment for farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. 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Imagine what it can do for you. Tv aas many safety features powas the rx, the new. The lexus rx has met its match. If theyre talking about you. You must be doing something right. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Welcome back to squawk box. Big ipo today peloton under the ticker pton. I got an exclusive tour of the control room to see how the fitness startup transforms a studio class to an athome experience you may get to see me on a bike now. Take a look. You are building your own hardware and software. What was that about when you thought about getting into this business originally. We all came from software he we said, can we be a software company. We said, its kind of a dogs breakfast of uninspired hardware we decided we had to build the hardware with the media, we talked to some players and decided we could build more integrated experiences if we build the whole staff including the media. The stricter might break the fourth wall and look into the camera and call you out hanging with amy and tammy k nice work. How much do you think of yourself as a Media Company versus a Technology Company. Let me note, we have everybody on the tread here, his heart rate here. So this is a bit of a tech piece. Right we strooem clo we stream close to 1,000 hours a month. We have 1,000 on hand and almost 1,000 hours of live shows a month. We should mention cnbcs Parent Company is an investor in peloton. Coming up at 8 00 a. M. Well hear from john foley live on the set. It is at the high end and that is good for the company. The company is still not making company yet. It is interesting to see it as a Media Company valuation do you want a Media Company valuation or tech Company Valuation . It is hard. The hardware puts you in an apple plus category, or media or te tech i asked him, what are the comparables. This is a complicated one. We should talk to him about that i am a little naive as you know i was wondering, comcast but it is a Media Company with content. If you think tf as purely an exercise Machine Company the other issue is, soul cycle, other companies are coming out as competitors. Different services or media components this is not eamon oply because at the moment. I would be fine in virtual classes and not going to the gym but i need the sauna the way uber goes to uber eats, maybe well talk about a Side Business in sauna construction i need to be able to do that do you after you work out . The visuals im trying to get away with me it is in the pool section of lifetime. All clothed. I think it is weird you went there. Everybody is fully clothed there is a view of the pool, floor to ceiling windows looking outside. It is really nice. Dont make it something dirty. Im trying not to we well have me on a bike coming up im disturbed by that when the editor showed me i was disturbed. Are they going to reuse that bike they are. The very pasty arms and legs coming up. You may want to change the channel. This morning, stocks to watch including another big tobacco name getting crushed first, a look at s p 500s winners and loosers. Classical Music playing throughout announcer welcome back you are watching squawk box live from the marketsite in times square time for todays executive edge a rash of ceo departures turning out to be a big year wework, juul and more seeing a shuffle for various reasons. From board room battles to investor concerns. There were 159 ceo changes in august that is up 28 from july the most ever in a month since 2019 over 1,000 ceo departures. Changing of the guard at the top. Coming up, the crack down of vaping and stocks getting crushed. Dont miss our interview coming up with peloton ceo. Stay tuned to squawk box an cnbc announcer todays big number 55 million thats how many peloton work outs were completed in the last outs were completed in the last year to managing your fleet. To collaborating remotely wi. Your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. 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. Cool. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Shares of British TobaccoCompany Imperial brands cut its profit amid regulatory scrutiny in the u. S. Amid vaping industry in georgia and florida, theyve reported their first vapingrelated deaths bringing the number now to 11 altria and fiphillip Morris International have ended merger talks. And juul ceo has been replaced speaking now with cnbc about juuls future. I think juul is well positioned to be highly successful in the near future. Still working through the challenges we knew they would have they along with others in the industry will have to reverse the increase of youth usage of evapor products joining us now, garrett, head of research. You are reiterating a buy on Phillip Morris in the last three months, would you say it has gone 180 degrees . This has been a tough period this is in question now or is it not . No. Thank you for having me. It is a big concern, altria spent 13 billion for that equity in juul last year i dont think they saw this impending ban on flavored e cigarette sales that accounts for about 75 of juuls sale