Hearing from ibm among others. One economic report the october National Association of Home Builders survey this will give us a snapshot of construction heading into the winter after a strong summer for the industry. All the big stories were watching. A top u. S. Security firm reporting that china actually tried to hack at least seven American Companies in the three weeks since that key meeting youll remember between washington and beijing leaders from the two countries which it agreed not to spy on each other for commercial reasons. Security firm crowd strike said its software detected and rebuffed these attacks. Also, high profile of bribery allegations against walmarts mexican operation found little in the way of new major offenses. The wall street journal says the threeyear on u. S. Investigation likely to hand in a smaller case than expected. Investors did say they found evidence of bribery in india as part of that same program. The retailer is said to likely face u. S. Foreign bribery charges under foreign following on this one that were going to that theyre worth more . Widespread. Horrific bribery down in mexico. There was horrific bribery down in mexico. There werent additional bribery. They didnt find nearly a big a risk as you made it out to be. Maybe the india thing will blow up. Those are very small potatoes. I dont want it to blow up. Andrew was reporting it. The numbers. Im more concerned. You do . Just one. Really just one. Im going to tell you one. Thats not you, thats you telling us what someone else thinks we should tell. Go ahead. See how they do that. Humana going to vote on the deal today. There are major challenges ahead. Well watch that as well. A big wave of megadeals. Yes. You have your that thing that you love, hh i dont know, hoffman hirfdol. The hirfendol hhi. The antiquated 1930 based looking at whether market cap has gotten to a certain point. Based on the market. The fed going from if you go from 3 to 2. Market market share. Thats what i meant. Whether it passes anti its like looking at sirius xm. Whos controlling satellite radio and looking at the market share of satellite radio. Its about how you define the denominator. Thats the issue. Exactly. In todays disruptive you talk about unicorns all the time. In all the things that are happening, to look at the way things used to be done and measure market share based on that doesnt make any sense. They were measuring inflation properly. Humana. Humana . I need to move down the street. But not in every industry. Right. The beer industry. Well, this one, yoobama cares causing this. As long as you look at it properly. They ruined you. You want to operate in a new world or not . Maybe. Deutsche bank announcing a major Restructuring Plan submitting the bank in two. Carolin roth joins us in london with the details. Good morning. Reporter good morning to you, joe. Big news coming out of germany. Better control, lower cost and more focused bank. This is what Deutsche BankCeo John Cryan wants to achieve. He split the firms Investment Banking business in two, a Global Markets unit which will look after sales and trading activities and another for Corporate Bank and Transaction Banking operations. There will also be a new independent Digital Banking unit. Guys, the overhaul doesnt stop there. A host of new executives have been brought in by john cryan to run the new businesses as hes really trying to distance the bank from the faces associated with the past demeanors, misdemeanors and poor performance. Colin fan, he coheaded the Investment Bank and he is one of the biggest casualties of that call. Stefan krause will also leave. Jeff irwin is coming in to run the Global Markets unit. Also, a woman will join for the first time as part of the shakeup to the management board. Sylvie matherat. Back over to you guys. Carolin, thank you very much. Eunice young joins us from beijing. She has the details. Eunice . Reporter thanks so much, becky. Third quarter gdp for china came in at 6. 9 . This is the weakest since 2009 since the depths of the financial crisis, but the message here from the chinese leadership is that the economy is stable. Over the weekend the chinese premiere said that it wouldnt be easy for the country to reach its Economic Growth target for the year of about 7 . He suggested though that the employment as well as wages are Still Holding up. Also the chinese president whos on his way to the u. K. Said that he understood there were concerns about the chinese economy but he did believe the country would be able to weather through the downturn. Now the problem is that theres an increasingly wide array of economists who are very skeptical about the integrity of the data. Theres always been questions about the quality of the gdp data as well as other data but more recently it is becoming more difficult for economists to really believe that the gdp is really where its supposed to be. They say its being overstated for political reasons and mainly because the government is being measured by its Economic Growth. So theres been plenty of focus today on the industrial numbers. Everyones been talking about how china is in an industrial slump. The fai or fixed investment as well as manufacturing numbers, industrial output just werent there. Theres concern that the services industry, though it did expand, is just not expanding fast enough to really offset that slump. Guys . Theyre starting to write the articles now, eunice, about we took a concerted effort back when japan was taking over the world to complain about their exports and their currency and ever since then, i mean, a lot of other stuff has happened, but the yen got much stronger, much tougher for japan to operate and, you know, we still are complaining in this latest trade deal. Were saying theres currency manipulations as if china is keeping things under valued in terms of their currency when a lot of people think its over its too over valued at this point. Right. So theyre starting to write the articles. Are we seeing the beginning of i guess thats not the first time someone wrote that, but that would be disconcerting for the entire world if there was a japan scenario setting up, eunice, dont you think . I think yeah, no, i think absolutely there would be, and theres a lot of debate here as to whether or not china is in for a hard landing, but whats interesting is that when people talk about china, theyre complaining a lot about how the headline number is skewed, that the gdp figure has been manipulated. Actually, most people here still think that the Economic Activity is relatively robust. Theyre pointing at property saying theres a bit of a recovery there. Theyre saying, yes, theres an industrial slump. We are seeing expansion in services in i. T. Might not be exactly the amount that we need in order to support, say, 7 growth for the long term, but its still there. S so theres been a lot of questions as to why is it really that the leadership feels the need to skew the numbers so much . Because all theyre doing, at least from the economists perspective, is undermining their own credibility at a time when investors outside are looking to chinas leadership to shore up the credibility and show that it is actually in control and understands how to maneuver the entire economy. Eunice, thank you very much. Were going to continue talking about this quite a bit today. In the meantime, why dont we get a check on the markets. As we showed you right now it looks like the futures are a little mixed. Nasdaq barely hanging on. Indicated up by 3 points. Dow futures down by 28. S p down by just over 2 points. If you check out the early trading in europe youll see that the dax is up by. 8 of a percent. The cac is up. 3 . The ftse is up and in italy up by half a percent. Overnight in asia you see the nikkei was down by. 9 . The hang seng was flat and oil prices which gave back just over 2 last week over the course of the week, they are down by another 1 this morning. Thats a decline of 53 cents to 46. 73 for wti. Check out whats been happening with the tenyear note. Last year it closed at 2. 026 . This morning it looks like its sitting at 2. 04 . The dollar is up against the euro at 1. 1318. The dollar is down against the yen. Finally, gold prices this morning down by about 10. 1. 173 an ounce. Not that im not hip. I dont like pop, thats all im saying. Adele . Were back to adele . I dont like pop. Shes not like that. You know courtney i dont like that. Florence welch. Florence and the machine . Shes not the typical pop. How about fka twig. Hyne. You like different music. Im not the typical pop. Hyne opened for taylor swift. You dont even know any of the adele stuff. No, i dont. Im proud. I dont know any lady gaga stuff. I dont like lady gaga. This is pop. Im not proud you heard it. I havent heard oh, oh, oh. I dont listen to the alternative stuff you like. Oh, my god, lets bring in you dont noah dell. Im pointing out that its not that im not hip. I dont like pop. I dont think you should knock her because shes different. I dont like a lot of pop stuff. Shes different. Dena, your girl from frozen. Yeah. God bless her. You dont know her . I do. Youre looking at me like what did alec baldwin john travolta. Called her some jumbled the word. Speaking of pc, jumbled letters. It fits on the prompter though. We had a guest last week who did not. Boris schlossberg, head of Investment Strategy at pro shares advisors. You were listening to eunice, boris . Yes, i was listening to eunice. I think there is one mistake i think that shes making. If you read overnight comments from all of the crisis strategists, one of them that was bad was the real estate investment. It was down by 3 fixed income. That is troubling people even more than any of the other data. Even if you assume the gdp data is doctored, the underlying data is troubling. The crisis, some are predicting youre going to have a cut for the pboc, a rate cut which, you know, if you believe that it creates an interesting situation. How is the fed going raise rates . Thats an interesting question as we move forward. So the shanghai markets done better . Yes. People are thinking they have that under control. I thought we were starting to assume that the worst was over in terms of the chinese economy. We need to know whether this is like the mid like a stopping point where it goes lower or whether its making a bottom and going well, it feels like it doesnt feel like theyre crashing but it definitely looks like they are just in a sort of mild slope. Certainly the industrial depression or recession and the Services Component of it is just not going up. The real estate issue i think is very interesting because that is a danger point. Theres been a mass amount of ma malinvestment. If the bubble bursts thats the danger point. How about dudley . Not dudley do right, how about bill dudley. Did you see that, sorkin . Too early to raise rates. Too early. Thats why were at 17. By the way, i am imagining the economy is going to be lousy in 17 so im imagining 18. Is he still on goldmans payroll . Obviously those guys want rates to stay low. Expressing a very key point. Basically we talked about this earlier. No central bank has been able to come back from qe as far as we know in our history right now. The fed is going to have to be the first one to actually be able we never i dont know. The world needs to end . You still have an asymmetric trade. In the 11 down draft in the s p 500 in august you made 1 on bonds at 10 basis point pull back in the ten year. You know, the natural rate of the ten year even if inflation is off has a three handle on it. I still say maybe you make a percentage bond but you can lose 10 this year and next year even if the fed doesnt move. So i think bond market complacency is a little misplaced even if the fed has to hold off. What about stock market complacency . Are we out of the woods here . I think if you exclude the energy and materials sector, yes. The realist thing that we know from china, there will be continued pressure on commodity prices. Saudi arabia is deferring payments to contractors for six months so even if oil prices dont even if they rise a little bit, theyre still at a level thats putting pressure on those sectors. But the rest of the sectors of the economy dont look so bad and the rest of the sectors of the stock market dont look so bad. Its a time now to ask it maybe. The lows are fairly far away from where we are right now. Those lows that we needed to retest. Do we hit do we go back above 18,000 on the dow and test new highs before we retest those lows . Well, you know, everyone who comes on here will remind you will remind you that if rates are rising slowly from a low level that has been a bullish sign for the stock market for a long, long time. The markets been acting and it starts low every morning and last week was even though it was quiet, it was a big week again. It was like 130 points. The market likes the fact that the fed isnt moving. Thats it . Thats it. Thats where we stand. Were in a Jerry Maguire economy. Show me the money. For the week. For the week. We havent had we just have not had income growth. Thats really the determinant factor. Job growth has been to keep us alive and keep the economy slowly moving. Until we see income growth, wage growth, the fed is not going to move on rates. Thats keeping the bid under the equity market and keeping everything quiet. As far as the bond market goes, thats been the smartest market so far. Its sort of its the first one to as soon as you saw the fmc minutes the yields on the bond market start to go down. They were the ones to properly react for the idea that the fed is not going to hike rates. Maybe their complacency is justified for the time being. Also, youre trying to keep the dollar in check. The pound is probably going to be a reasonably safe place to be. The euro probably not a bad place to be. U. K. And european equities are not a bad place to be over the next 6 to 12 months. Euro is kind of an interesting story this week because we have the ecb coming up. I think a lot of the market is expecting for draghi to come out. They want to guide it lower. They dont want to see the euro at 115 pause theyre slowing down. They think draghi will come down thats the only game in town is everybody trying to jostle with the currency . Yes. Whats happening in the Global Economy is the only people participating are the Central Banks. The fiscal component of policy has been completely abdel gated by the gdp. Monetary stimulus is all thats left. Thats the only game in town. Last week was kind of flat but it was the previous week because on definitely build. On october 2nd whats today, the 19th. 19th. 17 days ago we were right at 16 even. 16,012. Weve made 200 points. Part of that was the bad jobs report and the the jobs report, thats right. It was right aroundyeah, thats when we started taking off again. Okay. But, again, back to boris point, the Central Banks are the only ones that are around. As long as the fed stays easy, that keeps us in the game. Sentiment is not bad. But they need to see thats why the wage growth is going to be the very key component everybody will be looking at in the next couple of months and the job report. Next couple of years . Years probably, yeah. Dell ray, you love her . You heard of her . Yeah. Im good with adele. I know you are. My point. Theyre playing it. Listen to adele right now. Im going to get some for you. The xs and os. Im sure i have. Were going to play that. Sing it. I did. How does him spell their name . Him. They are amazing. Thats like a hebrew letter. It is. Is that jewish . From l. A. I dont have a super pac. I dont even have a backpack. I carry my stuff around loose in my arms like a professor between classes. I own one pair of underwear, thats it. Some of these billionaires, theyve got three, four pairs. I dont have a dryer. I have to put my clothes on the radiator. So who do you want as president . One of these washington insiders or a guy who has one pair of clean underwear that he dries on a radiator . That was larry david on saturday night live portraying democratic president ial candidate Bernie Sanders doing a pretty good job at it. The skit getting a lot of buzz on social media. He was doing larry sanders. Larry david was Bernie Sanders. You kind of similar like that. Playing himself. Yeah. Guy in the god father. All right. Harwood did another speaking he did. He did. Got to ask him about biden. Were going to get the chance for that. Right. As we mentioned, we are now just more than a week away from the next gop debate. You can catch that, of course, right here on cnbc. Ahead of the big event john harwood has been catching up with the candidates chatting about some of the biggest issues on the table. In the latest edition of johns speak easy series, here is rand paul. Bernanke has said that he was a republican, of course appointed by george w. Bush, but he no longer is because republicans have been taken over or have given in to no nothingism and he was talking about people like you who want to audit the fed. Well, he should also selfexamine and look back at how hes been part of the problem and he should make the answer how is it a good thing to have price controls over the price of money. See, this is the real contradiction that they dont quite get and theyre unwilling to get. If you ask ben bernanke or any of the other socalled free market economists whether or not theyre for price control of eggs, potatoes bacon. Oh, no, it leads to abundance, food rotting on the shelves. You ask them about money, they say we should control the price of money. Thats a fallacy. If price controls are bad for the market theyre bad for the money as well. You reject the charge of know nothingism. Lets have the debate. Ben bernanke, come on. Lets have a debate about whats best for the economy whether fixing the price of money and fixing it below the market price is a good idea. Hes going to have to defend the policy that led to the extension of the Home Building and then led to a precipitous crash. These are all the same people, too. Look at all of their interviews leading up to 2007 and theyll say, theres no way home prices can go down. Home prices have always gone up. Theyll go up 10 perfection percent again ne 10 again ne year. They were wrong. No, they need to answer that. And i thin