Decline. Biggest drop since 2009. A real freeze that has hit the manufacturing economy. Thats right. The lowest ism reading this is a kind of this 340 versus last month survey sometimes market moves are inscrutable. Yesterday, markets were up clearly just challenged this idea that the u. S. Economy was resilient enough we are constandly talking about increasing recession fears. Suddenly this data point comes along. The consumer, in 2019, are we dependent on manufacturing to the extent we used to be no. Not even close it is a great swing factor it doesnt go down that much but it also accelerates that much. You take a look at treasury yields yesterday as soon as this number hit 0 years at 2. 089 . We were above 1. 7 on the 10year yesterday. That shows you the market is saying, okay, the fed is likely to give another cut in october not a sure thing probability right now. The october adp report will be released at 8 15 eastern. Reportedly added 120,000 private sector jobs last month johnson and johnson has agreed to settling. They are the fourth drug maker to settle ahead of a federal opioid trial j j said it would allow them to avoid the demands of a trial and brokerage now charging no fee for trading. After that news, shares got slammed but trying to recover. Heresy to a former stock broker most of it, rat fees. They sell the order flow to Market Makers and they make a little money on that draft kings needs to lower their fees you should see i bet 20 you win like 16 something is a miss. Have you looked at this . I need to call ubs that poor guy is starving. You are paying higher fees to draft kings than ubs we are not trading any stocks i dont know how they make any money. Ubs is the old overfrom Everything Else in General Electric fortunate enough to hold all our ge stock to china, the country celebrated national day yesterday now we are hearing beijing could take a harder line against hong kong eunice yoon joins us it seems protesters are taking it to another level. Thats right in hong kong overall this week, the government offices are closed, you mention for National Day Holidays the state media has been in full force. Theyve been praising beijings strength as well as the latest piece of military kit which is an intercontinental military missile. The longest range missile china has ever had said to be capable of reaching americas shores within 30 minutes. On social media, a lot of people saying, this shows china can defend itself. Now china wont be bullied by the United States. Even the state run peoples daily, one of the voices here has been fanning more with 10 cent on a patriotic game a free app one of the most downloaded now the idea is that users can build cities like sim cities by with chinese places the way they level up is learning more about policies in hong kong, people are feeling less than loyal to beijing today, students staged a sit in because of a shooting of a teenaged protester by the police with a live bullet this has been something many people have been condemning. Office workers were out on the streets today, denouncing the move police say the officer acted in selfdefense activists and others are not buying that story. One of the lead activists has said hong kong is now clearly a pleased state. The teenager now is in Critical Condition. The fear is the situation could escalate and worsen even further. Especially if that teenager does pass away and in some way becomes a marter to their cause. I was going to ask you about his condition. It is not the way to look at it, to put life in those terms but it could worsen things quite a bit as you say at this point, Critical Condition. Hes hanging in there, right is. He is what is also interesting is that beijing has not owe fshlfficial responded. Of course the offices are closed but in the state press, there has been very little said about this teenager. Theyve only said that hes in Critical Condition so far what they are doing is quoting the Hong Kong Government saying that they condemn the violence of the protesters supposedly, there was some type of lead instrument being swung at the policeman is that not true how do you decide, it is tough i see how they would say no, there was no deadly force. I dont know, it is tough. You have people on top of each other for this long it is part of a new conversation people are having unlike in the u. S. Where there is so much police video that comes out. In china and hong kong, this doesnt happen because there is not a lot of guns. You do see a Police Officer moving in on this young protester. It appears hes shooting at a very close range and there is a flash of light that video is going around it doesnt look like hes acting in selfdefense. It is hard to tell well check back with you hopefully things turn out in a favorable way to everyone involved we spend a lot of time talking about the u. S. china trade war but today it is the eu talking about tariffs on the United States. Willem, whats the latest . We know the wto will issue a ruling involving european subsidies going back decades a part of a longrunning threat between u. S. And eu. We know the u. S. Intends to respond quickly by announcing products that will face tariffs. Shes only got a few weeks last in office, she talked publicly about what they might do they have their own list they might target the possibility they look at previous wto rulings against the u. S. They are not recently acted on saying we will not wait for these rulings to take action to try and gain leverage of talks between the two sides. Some of those older rulings, do you know what thae might be you wonder if some of those existing issues might still be here the amount of money involved is significant the u. S. Asked for 11 billion on products from the eu. Looking back as much as a decade also worth a billion this is not helpful timing because of those ongoing trade discussions between the white house and European Trade Commission the timing couldnt really be worse. Willem, thank you well be watching. Appreciate your time coming up this morning, stocks to watch including a company that wants to outfit your wardrobe. Also draft kicks as we head to break, we look at the biggest and loosers in the dow. Things you can do with schwab you can earn more when you invest your cash. You can get a satisfaction guarantee. You can also wonder why our competitors dont offer that. Schwab, a modern approach to wealth management. Welcome back. Check out shares of stitch fix shares are down on a lower quarter forecast personalized Clothing Service that has been cutting marketing costs. That stock is now down by about 8 Flutter Entertainment formerly known as patty power bet fair will create the Worlds Largest on line bet company. Flutter entertainment up and stars group up as well managing directly it is october 2. October is thought of as a bad month and not necessarily always a bad month. September was pretty quiet what does that mean for october . Thats right, joe good morning thanks for having me back. Go back in history september was one of the least volatile months in history we think there will be more volatility october has had more 1 moves up or down than any other month october is actually the third strongest month. All these different factors. We are in the Fourth Quarter historically up 15 for the year like we are now. But you tend to have more volatility in the month of october. Tomorrow might be a brighter day. Look at that number, yes, it was very poor. Global ism numbers production has been higher we dont see the impending recession, still pockets of good things the consumer still makes up twothirds the reds passed the baton off to the bangles now lets dont go there, joe it is just a cruel month youve got yesterday and today we are down another 200. We are not starting off great. We are looking at a catalyst now. The negative has spilled over to the u. S. The consumer really still is booing the u. S. Economy. Well have september Employment Data but i agree, we are not tipping into recession here given the relative strength of the consumer and how much that dominates. It is troubling for us, the confidence that is seen. That may be fed or global slow down our real gdp will falwel well below that gdp level if we are not vesting in business, that is a real problem going forward. I think we are right on the cusp of Earnings Seasons have i got that right . Yes next week, well start getting them calendar year. Thats it, yes. Do either of you gentleman think that will bolster or will we see more of the same . Tough comps but historically what happens, lowered expectations, we do beat that bar. Fourth quarter earnings are supposed to accelerate emerging markets will be about 13 . U. S. Earnings, about 10 next year even europe. Their numbers are supposed to be 9 that is a global acceleration. We see all the concerns about manufacturing. We see manufacturing go below 50 many times there are periods you can have that confidence comes back and it is all about u. S. china trade we think well get some type of resolution it is an election year, you need that good news we cant ignore that ryan, thats james. James, thats ryan you have no idea who you are on with meet look over at each other. James camp ryan detrick i do. That would make the comment, the issue there, we had massive policy responses at the ready. I think policy responses are net negative now because of trade. I think Central Banks are diminishing largely. I do think will be more difficult in the capital markets. More modest returns are in the cards going forward. You cant really do lunch we are in the tampa, st. Pete area you do realize they are sitting in a closet stairirring into a hole. They cant see eamsay monitor le we do. Are you expecting some type of break in the markets or do you think youd add to positions here joe, i think the question becomes which market is right. No inflation Global Growth is rolling over. Moving higher, we are going to sit out the Fourth Quarter we are yielding 2 away. Ryan, i know you should buy dips i do. Last year is the last year since 1969 stocks were lower maybe next year. Help them out james can look to the left and ryan look to the right but you have to look at me. Thank you, both. There was a moment there it was nice. Good morning, guys. Thank you. Im exhausted from the world right now. It is nice you can come together a little bit ill take it. Coming up, saying he knows what President Trump might have up his sleeve next. He might be ifnching towards bigger moves with china. A look back at this day in history. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Welcome back. Manhattan Real Estate Sales plunged 14 . The average sales price dropped to 1. 7 million. 25 of condos built in 2013 remain unsold. Ray dalio said Trump Administration may be inching towards bigger moves with china. The possibilities could include cutting off capital flows to china and using sanctions to stop nonamerican transactions could freeze emerging powers in japan like in the 1940s. Last week, the story was about delisting the company. I guess i dont have 20 million. So mine dont matter as much correct that doesnt seem that profound you think about delisting. Then things may be getting ramped up. What i dont see here, what you do as a result last time, we rushed this about a recession call he changed the time frame on it more than anything. It went from 35 to 28 . It was looking at a different time frame come up from that submarine a little slower. I dont disagree with anything hes saying hes not saying anything. Coming up, lenar posting quarterly numbers. Well talk about Elizabeth Warren and the zuck. He used to be really woke. Dont forget to sub describe to our new podcast. Special behind the scenes content and the latest headlines. Apple podcasts on your favorite podcast app. Do you have a reference . I do it on the apple. I should do that. Can you show me how . It is really good well edited. 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. 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. Announcer welcome back, you are watching squawk box live from the Nasdaq Marketsite in times square good morning. Welcome back, everybody. U. S. Equity futures are down after big losses we racked up yesterday after the ism showed weaker than expected manufacturing. This morning, dow futures are indicated down another 180 points yesterday, the dow was enough to give back all of its gains this morning, s down check out shares of home builder lenar. Beating the estimate and what wall street wassing expecting. The dollar value of those new orders were up about 3 . Still stock is up about 3 twitter is back after a global outage. Twitter didnt give any details on what did cause that outage that i didnt know about you didnt notice i saw it. It wouldnt let you on i noticed it was a little slower i didnt have anything for 24 minutes. I said tweedeck what is this . Tweet deck is another platform you can spy on others thats why andrew always knows what everybody is doing. What does he do i dont understand it yet what info does it get hes able to sigh more, a lot more quickly when we come back, well speak to an investor about sentiment in the area in asia. Thats next. Like this lamp. And we use those insights to show you what they might consider buying next. Midcentury modern, nice. That way, you can keep sending them offers for the perfect products. And that keeps them coming back. Hows that for changing whats possible . 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. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Welcome back. Protests in hong kong escalating chery is with us live from the area what can you tell us good morning. That shooting incident from yesterday driving a lot of questions. Police have just wrapped up over twohour long briefing from yesterday on that shooting the preliminary findings, police say the shooting was lawful and reasonable because the Police Officer felt his life was threatened here. They have no shoot to kill or assault to kill order at the moment n is after more tlan than 100 were injured that 18yearold protester is now in stable condition. This is getting a lot of reaction across hong kong. Hundreds taking to the streets in solidarity with the protester. In the meantime, hong kong malls are taking a hit august retail sales are down 23 on year in value that is the worst on record. Now back to you. Joining us now, 30 billion in asset an management. His best selling book came out this year. You heard the latest update on the protests and economic effects. What is this doing to the investment environment in hong kong and the questions of governing there . We are a foreign investor has many investors facing hong kong. Typically Foreign Investors dont vest in hong kong. We are a private Equity Investor we dont vest in hong kong in the past almost 20 years our investments are in area, japan, china, australia. What is happening there does not affect us. To the effect of the unrest, that does affect us. Why have you not vested there over the years hong kong is a very small market 25 years ago, hong kongs gdp is about 25 of chinas. Today, it is about 2 . The business is mostly dominated by profits and retail. It is a small market we vest hundreds of billions, it is difficult to find large buyout opportunities in hong kong the hang seng index is down more than 10 . It seems to be weighing on regional sentiment how do you fit into the broader environment being stressed by this trade war i think the effect of the unrest on hong kong on the rest of asia will be quite limited and largely confined to hong kong itself. To speak more broadly about the u. S. china negotiations and people trying to gauge impact on local economies all over, how do you incorporate that into your view trade war much course hurts everybody, both warring parties as well as the Global Economy. From the macropoint of view, all are affected affecting the businesses in private industry and Different Countries in asia. There for, we are not directly impacted the Economic Growth in china and the rest of asia is affected by the trade war, we are indirectly affected do you not believe that growth has been very affected by the trade war . No. Not so much. You look at the realty fact even by china, that is limited. That will drop about 8 last year 2018 the chinese brought to the United States rose about 7 mercedes or 34 billion. American trade deficit with china widened by 12 last year the first eight months of this year, chinas exports to the United States dropped by less than 4 . American exports to china dropped by about 24 the trade deficit widened. The real effect is rather limited. Psychological effect is quite noticeable where this trade war is headed, they would like to get this behind them if possible. Thank you very much