This comes after a decline of about 29 points. S p indicated up by 12. 5 you want to take a look at whats happening in the president ry market yields look like they are a little weaker. Dow component is reporting. Company is reporting a quarterly profit 3. 88 a share increasing the full year out look we have a nice gain in the stock there. This is a dow component. Thats the headline. It is going to help the dow. That is one of the reasons 3. 5 points adding nicely we wouldnt be up without United Health a lot of different view points on how theyll fare. Depending what happens they have been weak. Wont mention any names. We have an update lets do black rock first we have a lot going on earnings coming in from black rock looks like they earned 7. 15 better than they were expecting. Revenue looks like they are about in line with expectations. Couple other things, they say the longterm net flows. 52. 2 billion. This is a company has has 649. 64 trillion this companys ceo will join us who is larry fink i was watching live it might have been a fiveminute delay. They are not there that long if its going to be jeopardy james. We dont want to get too attached just show me the numbers alex asks these questions. The first guy was wrong. Blk, it was kind of funny. It was a 7 trillion in assets company, the first guy said who is h r block considering what we pay in taxes, 7 trillion would be small. They dont hold assets for long. Were you excited screaming at screen he was sure it was black stone. In other news, an update on the wework saga. From sources i have spoken to, there is now a major fight going on about which way to lean in terms of the potential next step many are leaping towards a 5 Million Financing effort led by jp morgan rather than selling to the softbank announcing jp morgan would be the offer that would be taken. I guess the point is that people internally would lose their stake. By default, if soft bank comes in, everybody else gets pushed out softbank already has 30 . It depends on who gets washed out where. If you take the jpm deal, there is high risk involved. How are they on the hook for that jp morgan is going to go out and market this. On the debt side potentially you are smiling with sort of a cynical grin i think lean forward, thats taken. Yes it is. Do they still use that . I never understood. Better than leaning back. Got to lean in. Separately, the Guardian Newspaper reported wework is expected to layoff about 13 new projects are getting put on hold they closed about 2,300 phone booths those are quiet, private spaces for people to make calls in these shared spaces. They are calling it densifications thesehave formaldahide. How does that happen . I cannot tell you that. There are people who spend lots of time in those phone booths. Really . Superman actually, he doesnt spend a lot of time. Hes going to be ob today. Fed speaker will be on this morning. Making a case for more rate cuts he said insurance rate cuts may help resenter Inflation Expectations sooner than otherwise. As weve come to expect, he adds that a decision will be made on a meeting by meeting basis pimco cofounder says a new warning. Out with the First Investment out look since retiring in march. He said with trillions around the world, investors should hold stocks that promise secure pay outs he says bull markets and equities are run off the rates i thought the warning would be sign a prenup but that was not the story you just wonder how i think you kind of laughed at that. There but for the grace of god, we all need to worry about these things this become very public. He was putting fish in the house where she was. It wasnt fish. It was dooty can we go back to his market calls. If you have negative Interest Rates, that seems like catalyst for pushing equities higher. Hes had horrible calls on stock. Hes never been right on stocks ever in recent years, his bond funds all underperformed i guess we care about what he says i think the opposite. I get his point that it is real low rates that have driven bull markets but we are in uncharted territory. If you have to pay somebody to hold your money in bonds, i dont understand why that wouldnt continue. Lets talk about lebron james. He had some choice words for houston rocket general manager asked about the nbas ongoing dispute. The star player said he believed morey was miss informed or not really educated on the situation. He was praised by those in china and in the u. S. Got some slack he tweeted im not discussing the substance, others can talk about that he continued, my team and this league just went through a very difficult week and people need to understand what a tweet can do to others i think nobody stopped to consider what could happen or would happen and could have waited a week to send it i think part of what he is saying is if he would have waited a week until they were out of the country, it would have been okay he got up and said, you want us to go out and talk about there and you havent put out a statement. You shouldnt be asking us to speak on your behalf until you have a coordinated effort. Hes saying thank you for your response think about who was working for who . And the money involved. To apiece the ccp is pretty bad. Thats right. In a World Without money is a big thing. You would never do that. Lebron is doing it. Seth curry is doing it i know. I understand i do think the league could have orchestrated that better then youve got to call out everybody. Anyway, the nba is in a tough spot 550 million fans this is the world we live in. But if you are an american company, do you stand up and say america first. The wokest of the woke leagues suddenly got bit in their rear end by their wokeness but you are i said nobody should. There are people who have said to him, you know the quote, shut up and dribble. You could say shut up and act. Shut up and read the prompter thats what id say to you right now. You are very woke. Read the prompter. They do have those phone booths at cnbc im told. With formaldahide ill tell you later what they call them. We cannot tell each other to shut up. We are getting very direct we have new news out on walmart. Courtney is here they want to deliver groceries directly to your fridge. We have details. Announcer and later, black rock larry fink will join us that interview is minutes away squawk box will be right back. Obvious. Sometimes, they just drop in. 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. Wthats why xfinity hasu made taking your internetself. And tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Walmart rolling out new details of and in Home Delivery program. Courtney has the latest. Starting now for those in kansas city, pittsburgh and other areas will be launched today after the program was announced with penalties shoppers will need to buy a smart lock kit for 49. 95. You pay 19. 95 a month it is a membership fee walmart employees with a year of service that are background checked and trained get a onetime code and have a camera attached it works via blue tooth. Walmart is an investor in level home nor Tech Security makes the garage door. The program will roll out nationwide over time in december, youll be able to leave walmart returns on the counter and walmart employees will do the rest i dont know. The argument is, you give keys to the dog walker, cleaning people i know who those people are walmart says you get a little fact sheet about your delivery person there has to be a limit gosh, if i could get over that factor, wouldnt it be nice to have your groceries in your fridge it would be more difficult if i was home if you were home, why would you need to have somebody put your groceries away. I saw that fresh direct was being shopped around i was panicking, nobody can do it to the level they can i was like, man, somebody else will buy this and mess this up they will deliver in a twohour window the on line grocery business has picked up in the u. S some people dont want to pay for it what about air bnb, come on in get in my bed. Or uber. A stranger, get in my car. Amazon has an at Home Delivery i thought they should come up with a movie and have them be the suspect. Okay. Coming up, did you see jepardy i do watch but i havent seen it in a week in a half jeopardy james is long gone. The bar tender, he was fabulous check this out. The big statistic for 1,000. Blk on the New York Stock Exchange has more than 6 trillion in asset management. More than any other firm what is h r block no. What is black rock. I just love h r block 6 trillion. And making his way to the set. Larry pink joins us. You got it right we knew. From the start, the cclass was ahead of its time. Still, we never stopped making it stronger. Faster. Smarter. Because to be the best, is to never ever stop making it better. The 2020 cclass family. Lease the c 300 sedan for just 419 a month at your local mercedesbenz dealer. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Welcome back. Black rock out with Quarterly Results. Larry fink is here good to see you. Good morning. You came in with earnings better than expected. 7. 15 versus 6. 96 the street was looking for. What happened . The same consistent theme, clients are moving away from products to solutions. We raised 84 billion. More impressive is that over the last 12 months, we raised 350 billion. It was across the board from fixed income even in parts of active equities that puts us around 46 billion over the last three years. Our Cash Organization has crossed over 500 billion. Across the board, we have been penetrating more clients i think it is showing up in so many ways. Clients new to wall street or taking clients who used to be at other firms . I think we are winning the market share unquestionably. Probably the most important thing is that clients are awarding more and more in the portfolio. It was announced we will be responsible for announcing 50 million for bravo bank that is just the solution to help them and working with and providing that policy. Who was managing that for them before . All inhouse. In other examples, they are looking to go from six managers to two what more organizations are finding out is having dozens of firms is not proving to have them receive higher alpha. More concentrated organizations who can do more for them it has been an uncertain time in the market. With the economic slow down, we are looking at markets that havent really gone anywhere what do you think when you look around this year to date and 12 months would be flat. What is going on in the market, emerging markets are down three. 6 is pretty significant we have Central Banks resuming the Federal Reserve is buying shortterm instruments but it is they are buying more instruments. We have a supportive Central Bank Regime worldwide. U. S. Growth is at least 2 china is somewhere between 5. 8 and 6. 2. We have so much going on with geopolitical issues, we lose sight that world is moving forward. It is not great but not as bad as we field. All of these negative Interest Rates around the globe, he thinks that is going to put a real limit to the upside there is too much other things happening. If you have negative Interest Rates and you are paying somebody to hold your place in bonds. That looks more attractive what i believe the problem is is the transmission of rates in europe and japan, they dont have a Mortgage Market most consumers there own their home if they own their home, they dont have a mortgage. You see the transmission that translates to a lower Mortgage Rate in europe and japan, im struggling with the concept of negative rates because you dont see that consumer transmission in addition, you have the banks who are struggling with their Net Interest Margin. They are not going to be out there lending and lending. I dont believe negative rates translates to more negative activity es spashl especially in europe and japan where 82 of banks are in a savings. They are not enjoying the low or negative Interest Rates. Can you stay with us . Id love to hes love to stick around we are going to talk about jeopardy who is larry fink. That would have been a more difficult question when we come back, we have more with blackrock Ceo Larry Fink announcer later this hour, the official kick off to earnings season. Citigroup, goldman sach and wells fargo all due before the opening llbe keep watching for up to the minute earnings news and Market Reaction for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Announcer welcome back you are watching squawk box live from the Nasdaq Marketsite in times square. Good morning, u. S. Equity futures up this hour up about 72 points on the dow. Nasdaq indicated up about 26 and the s p up as well strong earnings already for blackrock. Futures are down from where they were meantime, we want to get back to our very special guest. Ceo of black ross rock, larry fink we want to ask you about the ipo market the wework ipo that wasnt has the bell wrung on the ipo market it says something about the private growth valuations. I think thats the bigger issue. This is why i believe in the public market. It is harder to hide reality is shown every three months, thats why having exposure is the best outcome for all companies. Firms like blackrock which historically vested solely in the Public Markets now some are getting access through your funds to private markets. True. How should they think about that especially with situations like an uber. Its a wakeup call there was way too much money flooding in through private growth valuations. It is to be set. There was a mantra about growth at all costs i believe that is a bad culture. If you dont set a culture of building a company with longterm profitable having a culture of only growth at all costs produces a bad outcome. I think this reset in the private growth valuations, hopefully theyll be more about the real operating concern i think there will be a big reset on these valuations. What are you telling them they need to be more thoughtful about what they are telling companies. Are they real or just being sustained by private capital i think this dove tales into everything going on. These private companies are staying private longer they should try to respond to that this is why ive been repeating the whole mantra of transparency you dont think this is a sign of something larger in the economy . People say are we in 2000 or 2001 or is this 99 . People look at this as Economic Indicators again, this is another negative. I dont think that will carry on through the whole economy. It can be mod rated quickly through this process i do believe this is not something that will be systemic but it is a problem. You can make a point that it is cheap money well see this is the investment perhaps everyone is concerned about. If we can figure out where the other mal investments are. I agree the transmission of that produces bloated valuations. We saw that in the credit markets in 2007 and 2006 we saw that in the Growth Equity i dont believe for the size of our economy, that will be something terribly systemic. When you have looked to historic vesting in Election Years, what do you think Election Year is next year. Well we are pretty much there. Unfortunately, yes. You look that Capital Expenditures often go down because companies are waiting to see what happens i think that has changed. Cap ex has been mod rating other elements are transcending whether it is an Election Year i also believe the enthusiasm over the tax cut is transcending into Something Different a tax cut i have said on this show is a onetime event you have an 18 cut below of line that is a one time thing there after that, if you want waging more. That is what has gone on reality sets in. Should i spend more money on cap ex a lot of people believe youll have more profitability but that is below the line. It sounded to me like you thought the market is not overvalued here and there are a lot things going on and the market is properly valued. The market is properly valued overall. The central bank is going to be highly accommodating for the year what im worried about is 2021 and where the economy will be there after. The Federal Reserve, they have very little tools left they are continuing to use those tools. The ecb only has the tool of more qe. Hopefully, our new eqb president Christine Lagarde starts core ersing and usi ersing are you a banker that has warren phobia . I havent thought about who are you, steve kerr hasnt occurred to you . Havent thought about it have you heard of her . Not much. I havent. You may question that. You really havent thought about not yet your Share Holders would consider i promise i will. Until we see who are the candidates and what they stand for after the primaries, ill pay a lot more attention okay sorry you didnt like that answer we will not be watching the debates tonight. Ill