Lets see how we are fairing, right around 2. 2, somewhere in there. I say it from memory. We wont show it to you. Hanging in there around 44, 42 for wti. Lets get to our road map. Investors seemingly in for a repeat of yesterdays losing session at least at the open. The final hurdle cleared in its largest acquisition ever. An exclusive interview with ge chairman, jeff immelt. Former treasury secretary, Larry Summers, standing against a fed rate hike, will join us shortly. Stock futures giving up some early, early gains, extending their losses from yesterdays clothe close. Jobless claims down 6,000 to 275,000. Import prices falling 1. 8 . That was the biggest drop in seven months. All of this one day after wednesdays big game turned into a big selloff. Another 400point intraday swing in the market. Intraday reversal has become the name of the game in wall street. It is nothing like what we started at here in the morning. Another 400point swing. Yesterday, it was spread out a little bit. The fact that we closed down shouldnt mask it. We had another extremely volatile obsession. The japan nikkei up 7 . The session before had almost no impact. Nikkei went lower overnight, china went lower overnight. David tepper, he didnt say he was shorting the market but he did sound kind of negative. He suggested that margins were peaking on wage pressures. Suggested that eps estimates were too high. And the multiple consumablely a bit higher than he would like to be and the cushion of satan , is not there, so to speak. He said he is not the greatest and doesnt focus on shorting stocks. Running a hedge fund, you do do that. He certainly seems to be at least taking more cautious view. Im not sure what impact that will have. There have been a couple of times in the past where mr. Tepper, appearing on squawk box, has moved the market. No doubt about it. Are you referring to the tepper rally . Yes, i am. In this case, i dont know that we will see a significant down turn. He said, listen, remember the days when we had 15 20 corrections. This he may not be over. Take a listen. If we have a 20 correction or a 15 correction, i would buy. I have to see what the world looks like but i would be buying. Mi meaning, all right, you get a 20 correction. He steps up and says thank you. Right now, he doesnt appear to be in a buying mood. A lot of people seizing on his two rivers analogy. If you are saying, i can trust that i should be buying into these selloffs as opposed to selling into the rallies. If you had Warren Buffett on, im sure what Warren Buffett would say that history tells us the u. S. Stock market rallies, because the u. S. Economy gross. For tepper and others that make their money in more of a drexel situation, he doesnt seem quite as convinced for the near to slightly near future. The point he made was the discrepancy between the u. S. Economy, which he said was fine and the u. S. Stock market, which isnt necessarily a straight reflection of the u. S. Economy right now with 30 of earnings coming from emerging markets. Thats where the problems are. Obviously, very concerned about china. He said they are making policy mistake after policy mistake. I thought that was an interesting point on his part in terms of making the distinction between the u. S. Economy and the u. S. . We always hear about china. It is not the chinese economy. All the things can come up with our next interview with the guest that just snuck in to the right. General electric earned approval to buy the power business. 13. 5 billion deal. It would be one of ges largest acquisition. Joining us is the chairman and ceo of ge, jeffrey emmelt. I said 13. 5 billion after asset sales that are going to be required under it. It has been 9. 5. Less than 10. I have seen you do a lot bigger deals than the past. Why is this important for g. E. . Just another step along the way of the transformation of the company. It is a perfect fit with our energy businesses. It helps us grow globally. A lot of synergies and it helps us accelerate our industrial earnings at the same time that we are doing distribution and ge capitals. Perfect business fit and wellpriced. You have been talking about the industrial earnings and telling the market we are going to be doing between 1. 13 to 1. 20 this year. There is a lot going on in the world. I just had the last two days in ge, all of our business leaders. I get a pretty good panorama of the world. It is slow growth. It is volatility. It is uneven but there is still growth there. I look at the rest of this year and into next year seeing a lot of opportunities for the company. I think some of these things get overdone. It may be the case that the fear of chinas slowdown is skroefr done. You would be a person to ask. What are you seeing in that particular market . I think it used to be easy for everybody in china. It was a macro story. Everything in china grew. Now, it is more of a micro story. If you are in the Aviation Business like we are, things are booming. If you are the electrification business, things are booming. If you are in the mining business, it is quite tough. If you are in the construction business, it is quite tough. This year, up high Single Digits. It is probably slower than it was in the past but it is not terrible by any means. The orders are up 15 , i believe, in the first half in china. They are up about 8 , 9 in the first half. They will be up low Single Digits in the Third Quarter and up 8 , 9 for the year. What are your expectations tear . We hear about how quickly things may be slowing. Frankly, we dont know. I think it is more volatile than it has been in the past. The underlying growth rate is still 5 , 6 , 7 . We see it in revenue miles. We see it in electrification. We see it in the businesses we are in in china. It is a well wbellwether for thr emerging markets. There is a lot going on even despite the economy. There is real reform so people are more rest tant hesitant to. Underlying, there is still growth there. We see it. It is going to be the largest market for aircraft in the world. It is going to be a big gas turban march ca turban marquette. Some people would say it is a little overdone in terms of your stock price suffering as a result of peoples focus on oil and gas despite they are not a preponderance of the businesses you have. Oil and gas, you got so many questions on oil and gas, jeff. What are you seeing there right now . I know you are taking a lot of costs out of the business. Our team is executing extremely well. Clearly, it is less fun with oil at 50 than it is at 100. Our premise always was, around oil and gas, more technology, more consolidation, more focus on customers would be a winning hand. I see that in spades right now. Our organic Earnings Growth is going to be positive this year. We think next year is going to line out to be okay. It is a challenging environment but not one that you scant execute in. I would say the industry has gotten massively sloppy in the past. There are ample opportunities for everybody to clean up their act and take costs out. You are talking about some big numbers in what you think you can take out in costs this year. We think that over two years will take out 1 billion in costs. So with revenues, lets say, declining slightly, like it has been, we still can hold margins flat and still have decent earnings performance. Meanwhile, aviation is booming. Good for cincinnati. I just think, slow growth, volatility. Thats the world. There are pockets of growth out there. We are doing a couple billion dollars in egypt this year. We will do 1. 5 billion in pakistan. Africa is still growing massively for us. Mexico is quite strong. People tend to get fixated on one thing. The u. S. Economy is doing better. In europe, one of the things we talked about, europe is doing much better for us. Currencies have been hurting you with such a big internation international. We are so wellbalanced globally. We can mitigate. Are you worried what would happen if the fed does raise Interest Rates sooner rather than later . I think the dollar is going to continue the strength more than likely. We just continue to watch where our production is and tradeoffs are. Interest rates have been zero for seven years now. Time for a change . I think the fed has a challenge. The u. S. Economy is Getting Better but we dont see anything thats inflationary at the same time. So i think it gives the fed some optionality about where it goes. I actually think Interest Rates starting to go up, thats a good thing for us ultimately, no the a bad thing. In terms of globalization, we worry more about things like the xm bank not getting reauthorized than we do quite honestly about currency. On that point about globalization, for the last 10, 15 years, it has been the working premise that the world is flat and getting flatter. That makes it great for businesses and in some ways, great fort worlds consumers. The other day in the journal, Brett Stevens said, the end of the World Without fences, whether it is the migrant policies or some of the others, for the next decade, having done the awesome deal, it is going to get a lot tougher for businesses internationally. It is a great question. There are fewer traders today than there were ten years ago. Lets face it. Now, for us, being positioned in 175 countries, thats an advantage, not a disadvantage. You have to be very flexible and very persistent in globalization. The opportunities are there. When i became ceo, we were 500 million in africa. This year, it will be 6 billion in africa. The opportunities are still there. You have to show some flexibility like we did in austin in order to be successful. It is hard to grow from 175 countries. You are basically in all of them. Is there any risk in the years to come that american businesses retrench and focus more on domestic operations where there is the right political, Legal Environment as potentially the risk reward would be. The best companies are the ones that are adventurous and continue to go forward regardless. Governments are harder today than any time in my business career. If you let that slow you down, your toast. We follow markets. We are in the energy business, the Aviation Business, the health care business. If indonesia needs 30 gigawatts of power, we are going to be in indonesia. We are going to find a way to be successful and better than siemens and other people. I think everybody right now, the market is in a bad mood. Everybody wants to follow anything on china. It is volatile but it is not that bad. The Global Economy has enough opportunity to grow that we raised our numbers at the end of the second quarter. We confirmed them the other day. Nobody seems to care. We are looking at 2016. Look, david, it is always about the future. I look at the fourth quarter. We have synchrony that is going to happen. We are exceeding our plan. Our organic growth rate in this environment has been 4 , 5 . We think our organic growth rate for the year is going to be at the high end of our estimates. I dont want to complain about that. Few people would except you are not getting rewarded for it in the stock market. We have had this conversation for 13 years now. Your Investor Base is frustrated and im sure you are specially after the g. E. Capital announcement when the stock really seemed to have something. You have a ton of volatility still going on in the marketplace. You are going to reduce the flow with synchrony and g. E. Capital. You are going to get down to what, 8. 5 million. Our industrial eps rate is going to be in excess of our piers. Look, i could always look backwards. Im super excited about the future. This is your company. You have completely changed the portfolio. It is an Industrial Company. Once the ge capital split is completed. We love our portfolio, leading franchises. Buffalo would say, big modes, Good Opportunity for margin expansion. Returning 90 billion plus to investors. In the world we live in, that is volatile and slow growth, uneven, we are in a pretty good place. We are in the places that are going to grow. What about the regulatory battle with the d. O. J. Over the electrolux, the appliance unit sale. It is 65, six appliance makers. Retail customers are extremely strong. Sometimes i look at these and say, i just dont get it. I still believe it will get through. We want to complain about europe. We have tougher regulators in every corner of the world. We have to be consistent with that regard. Fed up with this administration . Who knows really, kelly. We are fighting xm at the same time, which is more driven by republicans. If you ever pointed to me a country that said they believed in exports but was going to blow up their export tank, we look insane to the rest of the world. It seems like we are getting a little bit from both sides. You fed up with connecticut. I think we are a hightech exporter. We want to be looking forward in a place thats going to be supportive of where the company is going. A lot of us live in connecticut. We have been there four years. We would never do anything like this carelessly or casually. We are quite intent on being aligned with where we go. It is the only way today. What does that mean . Indonesia. It means you want to be some place where people support job creation, where its attractive to talent, good cost of living and very supportive in terms of what a hightech exporter has to be about. It is a global battle that we are in and we need people that are on our side. It is the only language people understand, when you talk about it in the context of jobs and the future. Where do you make that decision . In the fourth quarter. You only think about it every 40 years. Do you think donald trump can make America Great again . Its a process thats going on right now. Im a republican. So im always anxious to see whats going to happen there. I want to ask the hudson river. The New York Times implored g. E. , even though you finished the dredging to do more. Any chance you will listen. We have been at this 50 years. We have done everything the epa has asked us to do. We have been very supportive and they have been very supportive of us. All things have to end someday. I think we have fulfilled what everybody has asked us to do i think this is coming to an end. You really feel like you are a 30yearold. Isnt that what you told Mary Thompson . Seriously. These jobs are marathons, not sprints. I think about what we can do in the next three or four years. I think we have a lot to prove to investors and i want to prove it to them. 14 years in. I like to hear it, jeff immelt. Take care. Chairman and ceo of general electric. Still to come, Larry Summers upping the ante. Lets take another look at futures. Dow looks to open lower. Only about 50 points. After that session yesterday, much more squawk on the street live from post nine at the New York Stock Exchange when we come back. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Lets show you where we are on futures. Ahead of the opening bell, looking at a down start. Not as far down as we had been. Dow set to open lower by 41 points on top of yesterdays more than 200 point slide. S p down six. Nasdaq down 10 points. Another volatile trading session. Already volatile in futures. Larry summers speaking out on the fed and Interest Rates pleading with the fed not to raise. More squawk on the street straight from the New York Stock Exchange straight ahead. They come into this iworld ugly and messy. Ideas are frightening because they threaten what is known. They are the natural born enemy of the way things are. Yes, ideas are scary, and messy and fragile. But under the proper care, they become something beautiful. Welcome back. Six minutes away from the opening bell this thursday a week before the september policy season. Director of floor operations with ubs. Good morning to you, mr. Cashin. Is this move to be in focus . It spooked the markets overnight. A larger than a 1 move in the offshore currency and a big debate whether the chinese officials themselves had moved into it. Markets are getting a little calmer now. It made all the markets around the world jumpy not knowing what the full motivation was. I think the markets are going to trade nervously. The other thing i would watch for, kelly, is keep an eye on crude. We are going to get inventory numbers around 11 00 today. That could be important if crude breaks, 44. I think it will put the market back under pressure again. Is that what we saw yesterday . It didnt get a ton of focus, because there were other things happening like apple for example. We had a big reversal here to the clothse on stocks. If you look at a minute by minute chart, they gave up the opening rally by noon. It was after apple began presenting that things changed. 15 minutes into the apple presentation, the market looked like it ran out of patience, like, where is the surprise . Where is the beef . They didnt get that. T the other thing was, as i said, crude broke 45 and it looked like it was going to threaten to break, 44. Thats going to be critical to what we do today. Did you listen to tepper at all in the earlier . Worried about margins and sounds particularly cautious on the stock market. He admitted he had a tough time saying it. He said, i dont like being a bear and it makes him nervous. These are volatile times. I think you want to be cautious here. I think that was said properly. Particularly about margins. We have had some problem both here and in china with people reaching a little too high in margin. We are making a little triangle here, a series of high or low or lows or highs. I think it will stay rangebound until we break out either side. On the up side, you need to break above 1995, 1996. And on the down side, about 1911 to 1915. Thank you very much, art. We have the opening bell in about 3 30 minutes. Stay with us on squawk on the street. My name is chris hughes and i am a certified arborist for pg e. I oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. At pg e wherever we work, we work hard to protect the environment. Getting the job done safely so we can keep the lights on for everybody. Because i live here i have a deeper connection to