Wednesday. Closing the day up by 123 points still on track for major indices to see the third week in a row looking at dow futures s p 500 down by 10, nasdaq down by 25. What happened . Stocks took a dive it was more a product of the percentages were going up for powell to have another cut all but factored in. Bad news has become good news. Good news has become good news if you look at the december percentage cut, it doubled 30 to 60 . October, yes december, yes. Sort of. The market took that as a positive well see what happens today the jobs report is the all important one that hits in 2. 5 hours time. Looking at what happened overnight in asia. The nikkei ended up by about a third a percentage point the hang seng is up just over 1 you are looking at a mixed picture. Not Much Movement for the dax or the ftse a little weakness in italy and spain. Looking at treasury yields coming under pressure on this data in terms of the ism manufacturing numbers and the nonmanufacturing ism we got yesterday. This morning, the 10yearyearolding 1. 39 . We have a busy morning in asia overnight we have heard from hong kong chief executive carrie lam invoking powers and banning face masks. That happens tomorrow, just a few hours from now there including one year in jail and a fine just over 3,000 u. S. Dollars. Well get a live report from hong kong a little later this hour we have some Corporate News to tell you about the new iphone 11 has only been on sale a few weeks. Apple reportedly asking suppliers to make more this is all due to the Strong Demand for new phones. Telling them to increase production that is about 8 Million Units. Launching three new phones last month. If you remember, the 11, 11 pro and the pro max starting about 50 less than last years iphone 10 the nikkei reporting that the surge in orders for the cheapest one, which is the 11, the 11 pro models, im assuming less so trading higher on this news. The result of this report are also up. You can see it there tech is up close to 2 as you can see others how much of this is the lower price point . They raised it so much last time around i have to assume it is that if it is really the 11 and not the pro model, thats what we have to talk about i keep seeing the pro model but it might be the crowd i hang around with. That might be the case. It is hard to know unless you see the three little cameras that is the bat sign that thats what it is a Pretty Amazing story that apple was at the target of all the tariff issues. The stock is up 40 year to date and seems to be hitting the stride even while they are in that trade war tim cook has managed to maneuver that well tim cook has come and made his case directly. He did give a little push off. I agree. Hes been at the forefront and been the one that went to 1600 pennsylvania avenue and said we need some help and here is the reason. Right. How much of this is people just wanting to be in stocks like this and running from other areas . It is a healthy amount of that but also everyone was looking for services to really tick up. If you have both kicking in. Ceo dudly will retire in march after holding that job for a decade dudly steered bp from a near collapse after the spill in the gulf of mexico shares are up. We are counting down to the release of the september jobs report at 8 30 a. M. Eastern time showing you what to expect and what it will mean for the economy. Bringing in chief economist. Jim, lets start with you. What happened with the numbers we saw this week, it the rest of the worlds slow down catching up with us clearly manufacturing and exports are weaker nonmanufacturing parts of the economy are slowing down as well that is the bigger issue looking at the economy still growth shown above 50. The big drop down from what they were expected. The drop yesterday after the jump the month before, certainly that net has been weakening. If you take the employment parts surveyed together. They ever consistent with close to zero trend. There is a lot of anxiety in the report there is arguably more hard data isnt really a sentiment in there. That is showing no sign of weakening im still looking at the reasonably solid when is the bad news, bad news what does the market really want to see i would say ultimately the question is are we going to recession ornot . I think we are teeterring with this concern tempting to say it is near positive territory we are now seeing these levels going into the 01 level and crisis we are looking at a sign from the Service Sector the very large Service Sector saying the economy is clearly slowed we have seen evidence that weakness was bubbling in the surface. That manufacturing confirmed, it is clear that production sector is dissipating and by extension that is slowing and the concern that it will continue to slow to recession. To jims point, those ism numbers are a survey of what they are seeing. Consumer confidence, those are all soft measures of what is happening. What is the chicken and egg scenario if the company is concerned and reigning those things in, could that lead to bigger concerns down the road . Absolutely. What we do see is a very good predictor of where growth is headed this is in good part to soft data and sentiment businesses, this is also what they are planning to do. They are hesitant in terms of vesting and hiring that will trickle down and effect those numbers we expect it to affect this mornings employment report. We are looking at it to come under at 120,000 that risk is to the down side. This could be a weaker number than we are predicting. They would have to cut to more than zero in the press rating, they said, no, we use the fund rate and go back to Forward Guidance does it happen in the next year or three years who is to say you dont go through another bit of tightening there clearly is a risk of recession. At this point, we are not easing recession ufr asked if you prefer to see three inflation here. Let me ask you clearly with record to the odds you think the fed cuts at the next meeting right now, my call is the next move is december well see what apparels number did this morning if it is weak enough, yes how about you, do you think the fed cuts absolutely. The fed is really being backed into a corner now pointing to a slow down in the economy the fed will have to step up and give us another 25 basis points in october and likely another 25 in december. Thank you both for being with us more on squawk box this morning. Ready for this one well debate this. Capitalism is dead some may take the other side of that well talk all about it. Well show you the context of that comment from last nights conference first, the trade war hitting europe where it hurts. One industry is preparing for the worse. Willem is live in parma, italy with a difficult assignment. They are cheesed off. Parmesan makers say they are being held hostage on this tariff from the u. S. Well have more after this break. 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. The latest threat of tariffs against the eu hitting up to 4. 5 billion of italian Food Products one industry has been hit hard by this. Our own willem marx is in parma, italy. Years ago, they talked about tvs that would carry smell here, can you carry the scent of where willem is. It is a pretty strong scent here in this room. Because 5,000 of these enormous parmesan wheels in this one place where they make parmesan each one of these wheels weighs around 90 pounds retail value in the u. S. About 1,600 once the tariffs kick in, it will be about 1,800 the challenge here and it is not just parmesan but gorganzola and others the American Consumer will look for a cheaper option what they are looking for now is a, a resolution seems to have kicked off these guys would be paid about one euro, so a little more than 1 to keep them on the shelves here they dont want to oversupply the market. This is extremely interesting. You have a bunch of milk made. They take the skim milk then they ad fresh milk, stir it together and add the stuff from a cows stomage. Break it up. That falls as they heat them up. They use these huge cheese cloths they pull up these massive white slabs of occurred this sat here for months the cap ex pretty significant. 50,000 relying on this particular cheese willem, andrew said hed love to have smell a vision you said yes, its a strong smell. Is it overwhelming no. There is a store here that sells more cheese. Its the gorganzola that hits hard this smells a little okay. Just touching here, you can feel the oil. It is interesting to see the color change here. We have to go here. Tell me what is the cow stomach piece . That through me. There is a certain sub stan from the cows stomach the whole point is that they want this to be completely natural. There is a protein from the cows stomach that curdles the milk news you can eat. For breakfast. When we come back, well talk about tech ceo sounding off. Why Mark Zuckerberg may be feeling the burn we head to the break for the biggest winners and losers in the dow. Plants capture co2. What if other kinds of plants captured it too . If these industrial plants had technology that captured carbon like trees we could help lower emissions. Carbon capture is Important Technology and experts agree. Thats why were working on ways to improve it. So plants. Can be a little more. Like plants. There are things we would change about work. And there are things we wouldnt. When work is worth it. Work is worth it. Work can be closer to home. Pay more. Make us proud. Careerbuilder. Work can work. Find your work at careerbuilder. Com you should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. We have three tech ceos speaking out salesforce ceo speaking out. I really strongly believe that capitalism as we know it is dead that we are going to see a new type of capitalism that is not the Milton Friedman capitalism but it is just about making money. I dont think you are going to hang out very long you have to be more than that in todays world. You have to be more than that in San Francisco or in the tech world. I dont know if hes right or wrong. The key thing he said was, especially if you are in San Francisco. The difference is, if you are not hitting the numbers for your share holder, the key component. Going to the next step now. There is how much you need to make how much for the Share Holders no, how much does the ceo you have people weighing in saying that much should they be billionaires Bernie Sanders says no once you head down that path. I notice billionaires are the first to say they dont want any other billionaires theyve already made it, they want to make it tougher. Lets jump in to one of those. Mark zuckerberg held a surprise question a i understand where hes coming from. I dont know if i have an exact threshold on what amount of money someone should have. On some level, no one deserves to have that much money. He compared himself to a robot that needs recharging. He says, i do pretty bad at interer views. That didnt look like an ichter view. It looked like a ted talk. It was a q and a. I think the more he steps out, the better he is. We are an interesting moment. I dont know whats going on i dont know if it is more about the company doing more or the political win. There is a guilt if youve succeeded in anything. Billionaires shouldnt make apologies for creating success or creating millions of jobs in all of this. Joe would laugh if he was here we dont have enough people es spousing the virtue of what capitalism can do. The flip side of that is we havent nailed how we collect and spend revenue as a government to make sure opportunities are equal. I understand, even if we havent nailed it, it is still better than the alternative around the world the question is can we nail it democrats and republicans in the past making sure nobody falls below a living wage. Well go after any success and take it down we have to realize that the lower class and others have more than any other country a devout republican will come on the show and say he thinks the American Dream is struggling too. Thats correct and a lot of times i think to be politically correct, you have to say that. Today, it is harder do you think the opportunity is lacking it is where is it lacking education opportunity did you send your kid to a Public School with a low passing number to get to the next quartile we have not improved weve gone backwards it is still better than any other system it is still better. People that want to succeed, succeed. In fairness, i think mathmaticly, it is incorrect it doesnt matter where you go to school ive been on wall street, i have guys that never even graduated high school that are millionaires because they work 14, 15, 16 hour days it is not about give aways or making the world equal even those that work hard by the way, this comes down to health care because both democrats and republicans said health care is the Biggest Issue. They are still worried about health care. We should do this on air. The hustling piece of this is table stakes i agree with you this is not a paint by numbers operation. I get that save that tape. When we come back, more on squawk fall out from this conversation and wework well tell you how they scrapped ipo is taking a toll on its biggest investor later, well bring you reaction. Boston fed president on tap. 12 20 p. M. , mark your calendar get your dvr ready do people even use dvrs anymore . A look at yesterdays s p 500 winners and losers that was wonderful. That was great. It wasnt bad there were parts that could have been better it was bad. It was awful boo 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. Announcer you are watching squawk box. It has been a wild ride this week you saw so much concern after the ism manufacturing showed real weakness. That is what set us up for the nonmanufacturing numbers yesterday that were also weaker than expected. It was much weaker than had been anticipated. Big swings yesterday stock market managed to finish with gains after being down by hundreds of points today we get the big number coming up. In the meantime, the dow futures are down by 67 points. The dow by 20 and s p by 9 numbers are focused on this mornings jobs report due out in just under two hours. That would be up slightly from the 130,000 added for the month of august. Week planning to layoff thousands of workers saying the job cuts will be between 10 to 25 of its company. Taking a toll on the biggest investor at softbank air report that some have urged him to delay a second massive fund he has said he wants to raise an additional 100 billion after the first 100 billion so that will be very interesting to what happens in the value that has been considered the exit all of these executives at wework not justwork but other Tech Companies as well. A crazy valuation there it is about how much you can cash out with. I dont think youve seen that before when you look at the unicorns, they want to tap that register at the last leg. Weve seen those Tech Companies that have raised money all the way. Im glad that bag is not getting handed off to that investor. Ill tell you, there are a lot of young employees at this company. By the way, they wouldnt have gone to work at regis in a milli million years. But wework had this halo, now they are thinking that is a mistake. Better together. Two of the biggest ad companies coming up. Talking about changes to the ads you see on line. Plus chaos in hong kong. Protesters reacting to the ban on masks well take you there live when we return on squawk box. Welcome back to squawk box. Two rivals are joining forces in the digital ad space welcome. His company is merging these are the companies that place ads at the bottom of websites comcast is an investor i should say we see these ads all the time i click through to the slide shows that take me to see some actor and what they are supposed to have looked like 20 years ago or later is what it is you are trying to figure out if they are as good looking as they used to be thanks for clicking we have been working on it about a decade we are driving hopefully growth to journalism. Question for you, are you profitable i am. Both are you look at Digital Media space on the publisher side. Im thinking of vice and vox and buzzfeed, many of which you power or provide advertising to. Why not . Whats wrong we are still a small portion of the advertising space we are not the majority of that we are still a small portion of that is there is still more work to be done. In general, the cost structure needs to evolve. I think publishers need to make more money for the content they create when you look at the big ones in the industry, google and facebook, how were you even able to make profits or build what youve made . We are not a consumer facing company. We are very in line with our partners if journalism grows, we grow too, it is a huge market. The reason you want to combine is you need to get bigger does that as a result where they wont get as good of a deal. Theyll get a better deal well have more auction and advertisers to consider beyond facebook and google. Well have more in investment and technology i will go on the record to say publishers will double and triple revenue different question for you. Hypothetical, the head of the department of Justice Antitrust Division who is looking at facebook, google and amazon. He calls you up as a competitor because this is how the department of justice operates and says, do you feel that you are being put at a disservice in an illegal way by facebook or google are they, as competitors to you doing something illegal in t