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tv   Squawk Box  CNBC  January 8, 2015 6:00am-9:01am EST

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thursday january 8th 2015, and "squawk box" begins right now. >> welcome to "squawk box" here on cnbc. we are proemping 6:00 a.m. in new york. noon in paris. that's when the bells of notre dame are set to ring marking the start to a minute of silence to owner the victims of yesterday's attacks on charlie hedbo that left 12 people dead. [ bells chiming ].
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>> again, that was a moment of silence marking the attack yesterday, the victims who perished in that attack. hadley gamble is in paris with the latest and she joins us right now.
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good morning. it's a national day of mourning here in paris. people gather in simple. we heard from president hollande earlier today, as well. let me give you the details of what we know now. there are reports that two suspects have been located in northeast france. cnbc has yet to confirm those reports. this is a very fluid situation. many reports coming in. we're trying to sift through all of that. here is what we do know. overnight, the two suspects believed to french authorities, they're chasing them as we speak. many are now saying that these guys have linked to terrorist organizations, as well. they have been convicted on terrorist charges in the past. a third suspect into police overnight. we understand understand several people have been questioned in this incident. in a separate incident this morning, one police officer was shot dead. there are no links yet between
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this incident which took place in southern paris and the incident we saw at charlie hedbo yesterday. >> can you tell us what the mood is in paris right now? >> it is a very somber mood. you can see the rain coming down, as well. we heard from president hollande overnight. he said these victims, the shooters, they will be brought to justice. there is a mood of solidarity here, people coming out in support of the folks that were killed yesterday, of the victims. you have to remember that press fro come is something that here in france they take very seriously. this is something we've seen
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across all the covers of the french dailies today, many of the messages. i am charlie, we are charlie. so, of course, we'll watch as we go forward to see what european leaders come out in response to this. >> thanks becky. jobless claims are coming out at 8:30 eastern time. it's expecteded to fall slightly to 290,000. the nation's retailers will report december same-store sales today. average analysts are looking for comps 378% during the key holiday shopping month. and president obama will be delivering a big speech on housing in phoenix today. we could be discussing the fha's move to reduce annual mortgage
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insurance premiums and widen financing access to home buyers. joe. >> check on the futures. after all is said and done yesterday after going up triple digits, pulled back and ended up accelerating at the end of the close, about 176 on the industrials. remember, we were waiting for 18. we finally got it. we pulled back the first week of the -- of the new year and now 176 is where we are, indicated up nicely again today. for once we really don't have to think about where fair value is. we can look at the futures and that basically reflects where we'll open. this is what's happening in the european markets. we call this solid session up almost 2% in france. in germany, the stand utah along with the nikkei in the asian markets. oil was a story, obviously,
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yesterday, it doesn't take much. it was up less than a dollar. >> so 48. 1.5% -- >> that's a key for toerchb watch. >> i don't know 48.85 looks expensive to me. >> he's very interested in europe right now. >> and very interested in the distressed oil sector here too. once in a lifetime opportunity. there's the ten-year. that's about as close as -- do we go out any further than that? that's just under two, i would say. 1.999. the dollar 1.1980 versus 1.17. below 1.18 on the euro. and a couple of decent sessions.
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given all the worries that we now have on a global level in terms of just -- you know it's just not a world where you can count on calm is it in any country at any time. almost a new paradigm. it shouldn't be. didn't we end the war on -- well we'll talk to -- didn't we end the war on terror? we have this antipithy on saying the wore on terror any more like that was a bush thing. are we beyond it? >> clearly not. >> like you can ignore it and call it a shooting versus a terrorist attack. >> just look at the last three months, how much attacks there have been in australia and canada. >> we called it the -- workplace violence.
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we're still calling it workplace violence domestically. >> and that's the question. we will bring in retired army current jack jacobs is here this morning. >> good morning. >> when you say a war on anything, it presupposes in military terms that this is objective, that you ever a definable objective you're going to reach and that you have steps now to them using various resources in order to reach it. no matter what you call it we don't have that. we don't have an objective to achieve. >> to stop the attacks? >> but that's too loose to say we want to -- we want to stop the attacks and, therefore, we're going to do these steps and we're going to take these steps in order to do it. we haven't said what it is we're going to do to achieve that objective. >> what would you do given that it sounds by the way, that police and officials in france
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new of these people. >> well known. >> i assume there are others in europe and i8d imagine there are others in the united states even. >> yeah. and points out a big difference between europe and the united states. cameras everywhere in the uk and france, looking at you everywhere you go no matter where you are. they don't have to go and get a court order to listen to your phone conversations, they can just listen to them collect whatever data they want to process it in any way they want and act on it. you can't do that here. therein lies a big problem in the united states. we keep balancing the right of privacy with safety and security and the right of privacy wins every single time. >> the attacks are there despite being able to do all these things. >> there is not a little bit of malfesance there. we're subject to it also. you know what their movements are, you know what their intenses are, you read their
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e-mails and listen to their cell phones and you still don't do anything well more fools. >> 320 people out open. >> these are home grown terrorists if you want to call them terroristes. >> there are terrorists and they are certainly home grown. with as many people as they have in this country, some of them, maybe many of them will be disaffected. and among those, a certain percentage of them are going to do something. are we at risk in this cup? we vernal are. we've seen itments before when there have been attacks and there have been a large number of attacks that have been thwarted because we have information on which we can act. >> you can't prevent anything unless you have good human intelligence. we're getting much better at that. but there's a big difference between the united states on one hand where things are sometimes good and sometimes bad and france and europe as a whole on
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the other. france is a -- is really peculiar in this regard. in france you've got 7% to 8% of the population are muslims, many of them born in france. they are disaffected, underemployed or unemployed and there's no way they're going to get employed and these are the kinds of people who are easily getting -- >> more susceptible in france? >> much more susceptible. here, like between people with a lot of money and not a lot of money, there is a lot of arguing about a large variety of services that need the be performed. >> where are you in profiling? >> i'm strongly in favor of it. i myself have been profiled frequently. i'm not opposed to that. >> they profile when you go through the lines of security. if you are above or below a certain age, you don't have to
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take your shoes off. >> we profile all the time. in france there is no upward mobility. there is no hope of any upward mobility. >> two steps down do you think there are ramifications from this? again, is this a singular event? are there knock on effects? >> in france you mean? >> in france and europe. >> france and the united states -- >> is this a game of dominos or not? >> no it's not. we have to recognize the difference between a place like europe and a place like the united states. these guys or anybody like them have free passage from france to anywhere. they can go from france to the uk and so on. >> what about here how tough would it be? >> much tougher here. >> to come from there -- >> much tougher to come from there to here. than for them to go from france to holland, for example.
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but in all of europe muslim people are disaffected, no upward mobility. here, whatever else we can say about how things are going, how things -- and what we do for people and all the rest of that stuff, there is at least an expectation that if i have a good idea and i work hard no matter who i am i am going to be able to be successful. that is not the case in europe and certainly not the case in france. >> andrew your loss of the american treatment needs to be viewed in relative terms. >> it is rel live you're absolutely right. >> thank you for coming on this morning. >> thank you. coming up the bulls are back. we're going to talk about today's test for the markets. plus the financial world is worried about the upcoming greek election. now there is shuttle diplomacy going on between athens and wall street. michelle caruso cabrera will report on that. and later, a man who made a
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mint on europe's problems. and sports mogul, he sees a huge opportunity in the world right now. he also tell us about it at 7:00 a.m. eastern.
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welcome back everybody. a big story for the global markets right now. the looming greek election it is a little more than two weeks away. right now, the radical leftist leads in the poll. some on wall street are trying to make friends with him.
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michelle, this is auto man you've met with and interviewed several times. >> absolutely. alex yix syfris has been leading in the polls for the coming election. as a result, we know of hedge fund managers who have been getting on a plane left and right to meet with him and his economic team to figure out what the story is there. keep in mind, the guys who are telling me this say he's far more pragmatic than you would think. they have to say it because they want to believe this right? i'm not saying they're wrong. it's just that they have a book that they've been pushing. is this guy going to lead greece out of the euro? they've come to the conclusion no. more specifically they want to know is he going to pay me back? he keeps says he wants debt forgiveness.
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greece is more than $300 billion in debt. but the vast majority of that debt is loans, that portion is actually the private sector. when we show you the greek ten-year yield, we're showing you the ten-year yield of roughly $30 billion of bonds that trade out of those $300 billion in debt right? so he's reassuring them that no he doesn't want to restructure their debt we just don't want to pay those people back. so angela merkel yesterday said when she was meeting with cameron in the uk that they were willing to extend the maturities for greece and lower the interest rate. what in the business they call extend and pretend, right? the question is will he accept this? because he has said that's not enough. he wants a full write-down. he says they look at our debt to gdp ratio.
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the debt to gdp ratio -- >> why do i, why do we like this guy even though he's a socialist? >> he is incredibly charming. >> he's pragmatic, too. >> because i agree with him that this whole euro system doesn't work. and number two, his main deal is the ollieigarchlieigarcholigarch. and that's worse than socialism. over here it's not kwies as bad. it will never recover. >> to even think it's capitalism but it's not. >> and this guy will take out the oligarch. i liked it. this is the enemy of my enemy, i think. >> right. >> i don't like socialists here. i hate them.
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i wish they would lead. but over there -- it's very weird. and you like him too. i knew you would. >> oh, yeah. >> some of my best friends are socialists. that never works. >> when they come to take us away i'm going -- >> send me, please. >> but that's the core question that we're going to come down to, right? there's a negotiation taking place in public right now about what are they going to do about the official sector debt. here is the bottom line. i have heard for years, years now since they did the restructuring since 2012. everybody knows they can't pay back the $3 left lane00 million. now, you and i know that that essentially means you're not getting paid back right? but still -- >> but germans can swallow that
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pill? >> easily. they can still tell their constituency, we're not forgiving that we are getting paid back. economically you're not getting paid back but theoretically you are. >> do you think fannie would guarantee that? >> under this? maybe. >> by the way, they have 100 year mortgages in japan. generations stay in the house and pay them off. >> so in fact we're waiting to see can they come to a negotiation, a settlement around that idea and how hard is it going to be about that? it's talk maybe they can do something, we're seen restructurings where they offer gdp warrant and then we'll pay you back based on the amount of growth we have in the country. those are things being discussed behind closed doors.
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that is what they're thinking. of course greg-xit. it's still a possibly if they don't come to a deal. >> and what if he's not in charge and somebody else is and they decide not to pay you back too? >> unlikely based on the candidates that are out there. >> the ecb is starting to get tooid tight on greek banks, as well. raising questions on weather they're going to start to see money. >> i just wonder whether the gre xf gre-xit is kicking the can down the road. how is greece ever going to have the same economy as germany? why would they have the same currency as -- >> because there are many many many people that believe you're slightly right they should leave. >> the biggest threat to the
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euro would be -- >> i'm going to introduce you to one in a second. i have friends that are seasoned economists. >> there are those who say the biggest threat to the euro is greece leaves and actually does better. >> right. >> and then? >> i love that. >> that's where it starts to -- >> i have to quick being so -- you know, people don't like that. >> especially not if you're traveling there. >> did they broadcast that sometimes? >> yes, right now. >> great moments. >> right now. >> they're with me though i think. and it's weird because the far right and the rest of europe are the ones that want the exit right? >> right. and it's different than right here. >> but the application in europe, you're not -- how did she visit in greece? you wanted to do the islands. >> here is the thing. a lot of prices haven't fallen very much. that's the issue because they have -- if they went to the dragma it gets so cheap to travel to greece. >> i just had a vision of the
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octopus. >> you know who is cheap right now? moscow. the ruble is weakening day by day by day. >> andrew you're talking caviar vodka and tall super models. >> he has that already. >> you have java for that. patrick is a chief strategist and as i said one of my best friends are economists. covering the economic angle, john silva, chief economist at wells fargo. john, i just want to start with you for a second. you are pretty good with the gdp in 2014. what's 2015 what's your number? >> a little bit better. 2.8%, 3%. >> not 3%? >> not 3% 3.5% but just a little bit below 2%. the export secretarieser, the weaker event from europe, the challenge in china, that is a challenge. >> so you're worried about
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dollar strength already, that it could hurt -- >> oh it already is. the dollar strength has impacted our economy. >> so in wasn't weeks, we started thinking the fed has basically forever. but you think april they move anyway? they could wait if they wanted because people don't think there's any downside? >> i bet it's june. also because of the financial markets, pricing and trying to rationalize that pricing. the comments you made earlier, it probably will take one to two years to figure out where oil is going to go because we don't have any swing producer any more. without saudi arabia intervening, we haven't seen. no spring producers. >> and i look at your forecast that thatwell r we go back to the mid
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60s, it's bullish. i love that we're even thinking that way. >> why would it go back to 48 if we're going back to the mid 60s? >> you'll be back some day. >> yes, i will. >> and i'm going to ask you about this. >> it's still 40% higher isn't it or 32% higher. >> yeah. >> 33 the% is a pretty good move. >> but unlike the 1960s, there aren't a lot of people in asia driving cars. >> that's why it's at 120. >> no way. >> yes it was. that's why it was headed there. >> it was headed there in some people's minds, not mine. >> all right. patrick, so it started off the year, the markets as the equity markets started up a little shaky. they had a great -- i think it was paid for. didn't we have a great november and december? wasn't that normal? >> well look i think people
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entering the new year their minds are shifting from so far so good to what happens next? and there are a lot of concerns concerns about how growth wsh how slowly growth in china and europe will affect the u.s. economy, what the impact of the falling oil price will be on the u.s. economy. a lot of economists think there's net positive, but it's going to hit a sector that has been a strong growth sector driving u.s. growth. and this is just general we're six years into the a bull market, is it just too good to last? so i think you've got -- you had several periods, several episodes in the last year about five of them where people have these bouts of anxiety, but then as these fears did not materialize in the numbers, you had sharp rebounds. and i think you're going to see a sharp rebound again. >> because we've heard there's a lot of idioms and one is that
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bull markets don't die of old age, they die of recessions. >> recessions or the federationing interest rates, which they could well do but, you know -- >> at 3% that's not raising interest rates. >> no look i don't think that the fed is really the thing to worry about here. >> what is? >> you know, it's funny, i'm worried about different things from a lot of people. i see the slowing growth in germany and in china as actually part of the positive rebalancing. and i think that we are going to have a hard time breaking above 2.5% gdp growth in the united states without net exports playing a big role there. but the transition here that i see, the growth that's slowing in europe and growth that's slowing in china is the kind of growth that has been an impediment to u.s. >> wait a second you think it's good that this recession won't catch us or we won't catch a cold from it? >> yeah, look, in china, a lot of the growth that's taken place has been investment growth
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predicated upon selling to the u.s. consumer. almost all in 2011 almost all, since 2011 almost all the growth in europe has been from net exports. it hasn't come from demand in europe. so all that we're really seeing is the mass falling away. >> so we're buying less from china and europe but we'll be buying from u.s. producers? >> in china, the price is coming down and oil is a product of that. i think people miss the china story and how instrumental it is to the falling oil price. china's investment boom led to inflation in inputs commodity inputs, like iron ore, like oil. but it depressed prices for a lot of the things we make. tend of china's investment boom
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although it's put pushing down the price of oil and iron ore, it's going to have a reflationary effect. it's going thin out some of that overcapacity that's been created. if you're in the united states and you're paying cheaper -- you're paying for cheaper imports and you're yet seeing overcapacity in a lot of products that you're making being thinned out, that's a positive thing. >> it's rebalance, right? >> and china has the capacity to do that. $14 trillion worth of reserves they can afford to consume more than they produce. >> lloyd blankfein, he's like madonna, lloyd, you say, lloyd said there's two reasons to sell china. there's 1.3 billion people. and in the united states we have 4.5 billion people. in other words the whole world is our marketplace and hopefully the dollar doesn't get -- they all want levis and they all
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want -- >> isn't it six or seven billion? >> probably. people have been mating. but then there's probably a few that aren't going to buy any of our stuff. they're trying to find clean water. the world is amazing. anyway, thank you, patrick. thank you, john. so wells fargo? >> yes, sir. >> that doesn't mean we're going to call you all the time but -- thank you. >> when we come back, we have a report that says most of the money that bill gross mass raised from janus is going to be very surprised, because all that money he's been raising comes from one firm. and you won't believe who works there. we're going to have ta story when we return in just a moment.
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i think you can do it for a couple. >> give it a month. >> i feel like a veteran here. good morning. i'm recognizing the same people walking by. >> on their way to work? >> they look colder. >> it is cold today. >> it was minus 3. >> minus 3? i saw 5 degrees in the car.
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>>. >> welcome back to "squawk box" live from new york city. that was a good friend steve sherpa and ivanka trump wishing us well. ivanka is going to be joining us in the next hour to talk about the new season of the celebrity apprentice. people were joaning for it after two years. the ratings were up 40%. also her initiative to empower women. so a lot of subjects to talk to her about. and we'll talk to her about her father's famous right? i heard about him. >> donald. >> a couple buildings. >> a couple things going on. let's tell you about some headlines going on at this hour. "the wall street journal" reporting more than 630%.
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more than 60% of the monies raised from bill gross came from a morgan stanley wealth management office in california. that office employs one of gross's personal financial adviser pes. >> a broker. >> might explain a little bit. >> that minutes it's hit money, a lot of it. it's on the front page of the "wall street journal." people have been dmenting on this, janus didn't want to say anything about it. but bill gross said yes, i invested in my own fund a lot of it came from me. the reason that's important is because a lot of big investors won't pay attention to a fund until it has at least $1 billion. with his money, it gets up it to.$1.1 billion. >> you can't take -- from yourself, though. >> no, you cannot. since march of last year oil is down to 55%. back then crude was trading around $91 a barrel. it was predicated last march oil
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would drop to well bloedz 100. ed is here to tell us what he thinks. >> it's good to be here. >> back then the call you made was that said 90 was going to be the ceiling and that it would fall likely well below that. >> yeah. i thought it was an easy call. we made the same call the year before, but we got it wrong and that's because it's unpredictable to try to forecast disruptions in the world. and disruptions went up and the market stayed the same in 2013. >> what prompted that call? did you think that there was so much more supply from the united states or did you think that there would be less demand? >> we thought the world had been overestimating demand. we had noticed that the iea progressively was downgrading their specition for global demand. we figured out that the energy intensity and the oil intensity, the global gdp was falling partly because it was falling significantly in china. and the other part of it was the
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growth in light sweet crude production which we thought was going to bring about a glut of light sweed sweet cruise in the basin. >> peter tipped us off to your call when he was here on set with us just a few days ago. maybe it was last week. but he told us about your call. i would say that you were probably even surprised by oil falling to $48, right? >> sure. you can really never call a bottom in this market because there's so much momentum that goes into the decline that it's impossible to say when or at what level it's going to bottom out. >> so what do you think happens from here having said how difficult it is to pre-i can tell did those things would you be surprised to see $40 oil? >> no i wouldn't. we're in an environment where we used to think of the market based on the call on opec. we moved from that to a position where the saudis say hey, we're going to move from that. and it takes a longer time to
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see production growth slow down in the u.s. than it would take time for saudi arabia to say, hey, we're going to cut production next month. >> although we have heard from continental resources and other companies that that are massively cutting their cap expending budgets for this year. >> yeah. we think the u.s. will see about a 40% cut in cap ex but that's -- that's not a good signal in and of itself. look at what happens in the gas market. gas oriented drilling went down 78% after its peak earlier in the decade. every year we've seen growth to natural gas. there is something magical about the shell play where -- >> how quickly where if you're totally off line can you be online? >> if you're trying to lay off line on the shale price? you ramp up. >> but how quickly can that happen? >> it depends on how many rigs you have available in the place you are. anywhere from a day to three months. >> it's very very flexible?
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>> it can be very flexible on the upside. it's sticky on the downside. take where the market is now, there's about half a year. completing a well takes a couple of bucks. the catch flow even at 40 is a significant return on a $2 or $3 investment. even with the cap ex going down you have unxlooilt completed wells that are being completed. you have the service companies compressing their margins. the first 25% reduction in cap ex is kind of met by a 250% reduction in -- >> who is going to go bankrupt? >> i'm not licensed to talk about that. i'm taking off the hook. >> what could happen potentially on the upside? do you still think there's a $90 cap on this? >> this is unchartered territory. shale production is still there. let's say production growth depose down to $200,000 a day per year rather than a million. you could ramp up to a million
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barrel a day response within six months to a year. so that should keep the lid on things. on the other hand, there are massive projects in deep water in particular that are being postponed. so that could say maybe by 2017 there could be a punch again on the price. peter is betting big on pot. mark lazry is going to tell us how he's betting big on oil prices. entrepreneur ivanka trump is going to stop by to tell us about her latest projects. a power packed lineup this morning, newsmakers still to come and "squawk box" returns live from our new home right here in the heart of new york city. back in just a moment.
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we are back in rally mode as far as u.s. equities this morning. 171 points above fair value. up 0.52. so 172 on the futures and we know exactly where we are. almost 20 on the s&p and almost 40 on the nasdaq and yesterday the industrials closed at 17,584. so you're talking about getting back to almost 17,700, 17,800 which is not that far below an all-time high. in this market that is amazing. coming up vc, venture capital, i assume, on pot not -- at disneyland as well. and more in a squawk fan favorite, a segment that we like to call chairs. we've got some new chairs. i don't know if those are the ones we're going to have forever. i think we're getting new, new
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chairs. i'll let you know as a tease that sitting over there is problematic for a lot of reasons. you don't know whether to cross your legs. if you don't cross your legs you look really -- >> is there a tooez tease for an uncomfortable looking shot? >> an uncomfortable looking shot. >> good. >> watch us try to figure out how to sit in these chairs which we think are way too low. and then a billionaire renaissance man part hedge fund hauncho. part nba owner. part bff bill clinton and there's no topic marc lasry can't tackle. he will join us at the top of the hour. first, as we head to break, here is a look back at this date in history. ♪
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♪ so you're going with the sort of the half and half. you stride the back all the way. >> tried to do this but it's a little hammocky. >> i'm going the full on like i don't know what to do. i'm going to lean forward trying to suck my stomach in. trying to do a lot of things. we're in new york but i want to
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talk hollywood quickly. >> go for it. >> terrible year for movies. dome demows are tough hard to get young people. the oscars ellen last year. she has all these social media followers. neil patrick harris. so abc is really worried. they'll have andrew but how many other normal guys are going to necessarily be watching the oscars? i wouldn't be caught dead -- and the other reason i wouldn't is i bet they don't even nominate bradley cooper. >> i think they will. >> but it's a -- >> i'm not sure there is -- i know people think that. >> or in mainstream media there's no ideological whatsoever. i know that, andrew. then one other thing. o.j. the movie coming.
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fx. john travolta returns to tv. >> i saw this yesterday. >> robert shapiro is who he's playing. cuba gooding jr. is going to play o.j. i worried initially about the height difference but in hollywood they cast all people the same size so you never know. when i was at universal studios i looked at the building where john wayne used to shoot. they made the doors smaller so he looked bigger. they do it with all these guys. >> and by the way, cuba gooding jr. can totally pull this off. >> he can. and david schwimmer played kardashian. i don't know who plays kim kardashian. you don't know about schwimmer. >> i don't know. you see this story this morning? peter thiel with a pot company. investing in a pot company. company's called privateer. the company does an app, but
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actually sells medical marijuana. so of course the question is who do you think he's going to sell it to and i think -- somebody who he thinks likes it. >> twitter's hard to evaluate. they have a lot of potential. it's a horribly mismanaged company. the people you know probably a lot of pot smoking going on there. >> so there he's -- he has a market already. >> he may visit headquarters as a first stop. >> there you have it. >> all right guys. let me tell you a little bit. you know about my howard hughes-like fear of germs and everything else. there was a story out this morning that nine people who visited disneyland in california between december 15th and december 20th contracted the measles. measles is a disease that was originally eradicated in the united states back in 2000. but because people are not getting vaccines as often as they used to. we're now getting something like
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60 to 70 cases a year. these people were at disneyland. the cough can linger in the air up to two hours. you breathe it in over two hours after somebody with the measles cough. those nine people a couple of them were infants who were too small to ever get their shots. if you get your shots, you will not get this disease. it's not something you will pick up. it's a reminder for anybody who hasn't been recently updated with the shot. >> mickey mouse wasn't going around coughing on kids. >> no. well, the mumps was -- >> i'm going with the, hey, very relaxed. i'm going with the notion that howard hughes is not a good guy to say that you emulate in terms of personal -- >> what about donald trump? he doesn't like to shake people's hands either. >> that's better. he had big jars of stuff he saved. when people would visit, he
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would save theirs too. long fingernails. don't even bring him into it. >> all right. donald trump. >> who would only do the fist bump. who was the comedian who did the show "deal or no deal." howie mandel. that was his thing. we will do a little fist bumping here. when we come back marc lasry is buying what others are ready to throw away. now he's circling the oil patch. we'll talk with him when "squawk box" returns right here from the business capital of the world. right across the street from radio music city hall.
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to the big apple. "squawk box" starts its 20th year from a brand new home in the city where business never sleeps. >> on set this hour marc lasry on the market's weakness in europe and his milwaukee bucks. plus ivan ka trump wants to change the story about women who work. it's the same "squawk box" attitudes, same off the chart access. now on the biggest stage in the world. >> joe, andrew becky, welcome to new york city. the greatest city in the world. and please make sure you guys save first base for me on set. ♪ welcome back to "squawk box" here on cnbc first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. marc lasry will join us in a moment. he's on set with us.
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but first let's get a check of the markets. check out the equity futures. they are sharply higher right now. up about 164 point ifs for the dow. up 18 for the s&p. up 37.5 points for the nasdaq. this comes after yesterday's big gains gains in the market. also check out what's happening in europe. you will see strong gain there is as well. the ftse up by 1.75%. the dax in germany up 1.75%. look at the price of oil that's been the market the tail that's been wagging the dog for weeks and weeks at this point. yesterday oil prices were higher and that certainly helped stop some of the concerns that were out there for the stock market and other markets. you see this morning that wti is up 36 cents to $49.01. brent crude back above $50. it's up 35 cents today. and look at currencies today. the dollar near a nine-year high versus the euro sitting right at
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1.1771. dollar dollar/yen 119.81. the bank of england keeping their rates unchanged. that was as expected. among the other stories we're watching at this hour the hunt continuing for two brothers suspected of killing 12 people in yesterday's attack at the french magazine charlie hebdo. there are reports the two have been located, but that's not yet confirmed. the senate committee expected to approve the keystone bill today. the white house has already said the bill will be vetoed if it passes congress. ahead of tomorrow's employment report, the labor department set to release the weekly jobs claims report. we will bring you that as it happens. our special guest this morning is one of the pioneers of distressed debt spending. right after the financial crisis and since then his firm has made billions of dollars for
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investors across its global funds. it is now turning its focus to energy. joining us on set now for an exclusive interview is hedge fund manager marc lasry. fund has approximately $14 billion under management but who's counting. he's also an owner of the milwaukee bucks. which 18 wins already? >> no 19. we won yesterday. >> saw them play the other night. and they looked really good. welcome. good to see you. we'll talk about that a little bit later. just so people that may not be as familiar with who you are and what you do distressed debt can offer great returns, but typically maybe not as much as equity type investments. but it's all about the things you emphasize. you have a better handle on the
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downside a lot of times when you're investing by doing it this way. >> i think so. you're going to see it play out a lot and we'll talk about it on the energy side. you figure what's happened over the course of the last three months. the companies were trading at par or higher. and today that same debt is trading between sort of 50 cents to 70 cents on the dollar. so i think you can generate equity returns, you know i think the consensus when you talk about energy is everybody saying crude oil is going to be at 70 to 90 two years from now. >> that's the new consensus. from all the people that had no idea it was coming down. >> yes. last year everybody talked about oil stays at $100 $120. now everybody saying it's staying here $60. if that's correct, then
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everything we're buying at 60 cents today is going to be worth par. if you do the math, you'll make somewhere around 30% returns over the course of next two years. >> do you have a -- an actual number? do you need an actual number for where you think oil is going to be over the next two or three years? do you think it's going to be 70 to 80 -- >> it doesn't need to be from where we're buying that debt. if you're buying that debt today, oil could stay where it is. because it will go back up. >> marc these prices are shocking, but we saw lower prices even six years ago. that was because of a huge recession and the downturn at that point. what's different about the decline this time or where there just more opportunities because everything fell six years ago? >> i think six years ago everything was going down. right? so there wasn't much focus on
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this. the biggest difference today i would tell you is in the last six years the biggest macro theme has been energy. so the largest amount of debt that's been raised has been on the energy side. in fact, it makes up 20% of the high-yield market. that's why everybody is focused. >> a lot to choose from. >> you're talking about dead. we had dick kovacevich on last week. he said buy chevron on exxon. i think he said he was buying it. does that make sense for viewers who don't play the debt markets but are playing the equity markets, if you will? >> i actually think it probably does. because at the end of the day if you believe oil's going to go back up really what you're doing, equities are a leveraged bet on that. >> i want to explore it further too. you say you end up owning the equity if oil prices where they are. if they go back up the debt might be fine and you won't end up owning the equity.
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but if it does the people who own the equity now aren't going to have anything. that's your point you're making. but if you're going to go out -- you know the rest of the industry expiration and all these companies that aren't as established, that may not be a good idea to buy the equity. >> it's a big bet. >> right. it's leverage. you either get debt money back or on the equity. >> chevron is a great example. i think it's an easy way for people to play that. and you're right. but what you're doing is making a bet on where energy prices are going. >> do you worry at all -- is there any risk in the system that if prices continue to fall that somehow the high yield market falls apart. somehow it hits the bank. is there a domino sort of kas kat effect that you could see in a bad way? >> no, beyond say that. i think where you have that fear was in 2009 because it was sort
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of pervasive. i think that was becky's comment. i think today it's limited much more to that part of the market so i'm not as worried about that. >> you own greek debt? are you down? are you getting killed in some greek debt? >> we don't own any. >> you don't own any? >> right. so that would be kind of hard. >> where did michelle get this information? he bought it three months ago. lasry is long greek debt. >> i invested personally in a fund that's invested in greek debt yes. >> okay. >> not avenue capital. >> yes, that's correct. so i've invested in it personally. >> you think that's going to work out as well. >> i sure hope so. >> why would you make that bet
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but not in the fund? >> because it isn't to be buying the sovereign debt of countries. >> you don't have that flexibility. >> no, we're not supposed to be making political bets. >> got it. >> really? >> yeah. >> that's interesting. okay then. so let's talk about the rest of europe. you've been active there for awhile. >> very active. >> is it about where it was a year or two ago? >> it's actually continuing. last three or four years i would say just in the last year or two, the amount of debt that's been sold has been increased 100%. so that's going very well. so we're actually -- we've actually invested our last fund. it's been fully invested in europe and we're going to be raising new capital out there. >> you've seen sovereign yields. what does that mean for everything else? it's amazing -- everything else hasn't gone up as much as --
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>> no the sovereign debt keeps on moving up. i think that's why for us we play on the credit side. on the credit side the pressure is still on the banks and it's still on the banks to delever. this is a five-year process. for us it's the guft that keeps on giving. >> is europe at this point in an investing phase or is it in a harvesting phase? >> i think it's investing phase. >> still time. >> you know why? you have $2.5 trillion of paper. there's so much. the supply side in europe is so great relative to the demand side. >> what happened? is europe looking at deflationary for the next five years? could what happened to japan happen there? zblit >> it could. it really could. the way the banks are able to sell this debt is they keep on buying sovereign debt. right? and then through that they make their profits and then each year they end up using those profits to offset losses on that. and that's sort of what happened
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in japan over a ten-year period. >> how do you get off that track? how do you derail it? >> where you get off of it is 3% to 4% gdp growth. and you're not having that. so the reason everybody focuses on that is gdp growth in europe today is sort of negative one, flat up one. right? it's really not moving that much. >> so back to the energy sector because that's fascinating. and you say it's the opportunity of a lifetime. and you don't necessarily engage in hyperbole. so how far out do you go on you know, would you buy stocks that are -- not stocks but companies where the stocks are $2, $4. like junk stuff. or are you in the middle between chevron and a speculative company? >> so i think today you're able to invest in debt of what i
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would consider to be phenomenal companies at extremely low prices. you don't need to get -- think of this. six months ago oncor which is a regulating utility, we ended up buying the debt. and we were buying that debt 60 to 70 cents right after the file for bankruptcy. and it's the largest utility in texas. it's one of the best in the united states. those same bonds today are trading around 115. so literally you've gone from sort of 60 to 115 in the span of march, april last year. so eight months. you're able to make pretty large profits buying what i would consider to be top tier companies. >> how much do you have to put down? what's the margin requirement on those? you can do that at what? >> well we ended up investing close to about $500 million. >> and how much did you -- >> we don't borrow. >> you're not margining that.
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todd shipyards, huge winner. hardly put anything down and bought them at 50 and get paid off at a hundred. >> it's fine if it goes the way you want it to go. >> leverage is great when it works. the problem with this that you'll see on the energy side it's volatile. we would never leverage. if things go down to becky's point, if somebody ends up short-term going down the leverage just hurts you so much that you would -- >> you've never used leverage? >> we've never used leverage. >> it's come down broadly. >> marc you said it's going to be very volatile. there's potentially swings in
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the crude market and be all over the market? >> you could see oil going back to 55 or 60 and everybody would say that's great. if it goes back down to 50 and if you're levered, you're going to get crushed. it's -- what is really amazing to me and i do love it. if you were doing this show a year ago, the whole theme would have been how high can oil go. right? i mean that's really what it would have been. and if anybody had said here look, oil's going to be at $50 a year from now. you would have thought they were the craziest person in the world. >> we had a gentleman from citigroup saying 90 was going to be the new ceiling. he was right, but he had no idea it was going to go this low. >> i think for us -- if you're an equity player you've got to -- >> why are you so convinced it's not going to stay at these levels or go lower? >> i'm not. what i do know is at the levels
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we're buying -- if you're buying that senior debt oil can go even lower and you're still going to be fine. what ends up happening is you own that equity. right? so you want to play to the senior secure debt. there's a number of companies, sampson is one. i don't know if you have talked about it. but the debt's gone from a hundred to sort of 50 in the span of three months. so all of these companies are getting hit pretty hard. and you're going to have an opportunity to either end up with the new equity of the company or you will end up getting your debt paid off at par. >> you -- so many things going on with you. marc, we knew you might -- i don't want to bring the conversation down, but you were almost ambassador to france. and we know the new ambassador. i saw yesterday they didn't close the embassy, but there's got to be concern and worry. i was just thinking wow, you
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could have been over there. and then the other thing i'm thinking about is everybody knows that you and president clinton were pretty close and you're probably going to be a big backer of hillary. "the post," supposedly you and katzenberg were talking about -- someone overheard you and katzenberg. >> that's why he has the tan. >> he always has a good tan. he's like boehner. >> hardly. >> i saw the kiss of pelosi. it was quick but it looked like he was grabbing her. >> was the post right? >> we had breakfast. we talked about a lot of different things. and we ended up talking about hillary and whether she would run and if she ran would we get involved in it and the answer is yes.
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but we're all waiting to see what she does. >> you think there's a chance he doesn't run? >> my own personal opinion is i hope she runs. and i think she will. i think she'll make a decision in the next three or four months. >> would you always vote as a democrat over other candidates over hillary clinton? or would you be a jeb bush candidate otherwise? >> i think jeb bush is an interesting candidate. but at the end of the day, i think hillary is the far better candidate. to me it's not i'm going to vote democrat or republican. i'm going to vote on who i think is the best person. >> we talked about this a lot. with elizabeth warren out there and sanders and other people out there that pulls her more left. she made a comment, i think, a couple months ago about big business. >> right. >> have you talked to her or to bill about this?
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>> no i haven't. i think the press makes a bigger deal out of it. she is who she is over the last 20 years. i think the press for whatever reason loves elizabeth warren. i think elizabeth warren would have no chance of being president. >> you mean the press, "the new york times." why does the press love elizabeth warren? i am not the press. >> you're not the press? >> no, i'm not the press. all right. so finally, were you kicking yourself with not doing the tinder thing? did you see this in atlanta? that is a sick idea isn't it? >> i heard about it. i would say it's nothing we would ever consider. >> you know what? >> for those not watching yesterday -- >> in atlanta, it's going to be like a hookup basketball game. but i even said this to my wife and kids yesterday. tinder could have saved me a lot of embarrassing rejection
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moments. right? how many times if you can do it online -- >> if you go on your tinder and nobody selected you, you'd feel really bad. >> i'd think the internet's down. >> before you go we had david stern on yesterday. he said he is now in support of gambling on professional sports. where do you stand on that? >> but he was qualified with that. he did qualify it by saying if we're going down this road anyway we need national legislation that goes through. >> i think adam's right. i think having national legislation on it makes sense. because the question is you've got this unregulated industry that is huge. and why not regulate it. and everybody's made to believe nobody is betting on sports. >> is there money in it for you as an owner? >> i don't think so. >> jabari parker will be 100% by
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when? >> he had the surgery a couple days ago so it will take 9 or 12 months. >> were you knowing in the facial recognition stuff in picking him? >> we knew about it. >> do any of us have facial expressions of a winner in life or any type of sport? can you tell? am i twitching the wrong way? do i look like a loser? >> seriously i think you would have our facial recognition thing go off the charts of how good you are. >> thank you. >> can you bring that back next time. >> i could. >> it's an interesting story on facial recognition. it tells you whether people will succeed in life. >> it would be different on the golf course. like going up to an 80 yard -- i know i'm twitching. anyway, thank you. >> pleasure. >> maybe it's a confidence problem. >> marc thank you. when we return we've got news from another nba owner.
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steve ballmer generating buzz at last night's clipper game. the video going viral this morning. then at the bottom of the hour we get the first look at the goldman sachs for the year. and thin ivanka trump joins us. and we also have barry sternlicht. a big program. we're back in a moment.
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welcome back to "squawk box," everyone. we've been watching the futures this morning and they are indicating a sharper open on wall street. yesterday we had the first day all year we've seen gains for equities. this morning the trends are continuing with the dow up 178 above fair value. the s&p futures up by 20 and the nasdaq up 40 points. news for you this morning in our headlines. the latest to yank money from pimco. new york city pension funds pulling $4.9 billion. the move was because of concerns over recent organizational changes at pimco. of course you know that bill gross shocked bond markets last september when he left the company for a smaller rival janus capital. get this. 52% of americans are not prepared for unexpected expenses. 38% of those surveyed said they could cover an unexpected
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emergency room visit or a $500 car repair with cash from a savings or checking account. >> 62%. how's the prompter with the eyes? you don't have contacts or do? >> i do. in fact my eyes got a little better. >> mine have gotten much better. >> by wearing them? >> no like your eyes change shape over time. >> i think i'm actually about to need them. >> i think the eye actually -- a lot of things shrivel -- but the eye actually shrivels up and can't -- >> it's cold outside, i know. coming up the nba's clippers dominated the lakers last night. but the buzz this morning is about clippers owner steve ballmer. what he did at the game that's getting attention next. better be good. and as we head to break, take a look at the energy board. is rolled over into a td ameritrade ira. yes! so no set up fees!
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wooh! yeah! so i get help from rollover consultants? wooh! yes! no rollover hassle. great. woah oh, we're spiking things, robbie. for all the confidence you need. that's better! td ameritrade. you got this.
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the clippers dominating the lakers. blake griffin and company beating the lakers 114 to 89. but the real highlight came after the first quarter when
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former microsoft ceo and new clippers owner steve ballmer showed off some -- oh, boy. >> you know what? i'm all in favor of this. this is what i wanted him to do. i wanted him to do this with the clippers. get fired up. >> that looks like dennis keselowski. >> no, just have fun with it. you go. >> he's not a shy guy. >> he paid $2 billion to do that. he should be able to dance out there however he wants. >> singer fergie -- fergie sings now? surprised fans by walking on the floor while her song l.a. love was on. coach doc rivers saw ballmer's moves and when reports asked for his answer rivers said no comment. our relationship is too new. that would have been my line. he's always fired up. >> but that's great. that's what the clippers need. >> what are you a clippers fan
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now? >> no. i like steve ballmer. i think it's cool. >> i'm digging it. >> and talking about the clippers. >> if you pay that kind of money, you should be able to dance however you want. >> that's right. you go. i like this. i love cuban. >> oh i don't like -- i can't unsee the cuban dancing. no! on "shark tank," that thing like that. god, no. why did you even bring that up? >> because i like cuban and the way he fires up his players. being in the moment. no i wasn't talking about that. okay. when we return we've got a lot more for you. if you're bearish on u.s. stocks, goldman says think again. then ivanka trump is here. she's going to take on women who work. we're going to talk about it when "squawk box" returns in just a moment.
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welcome back to "squawk box" right here on cnbc. among the headlines front and
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center, reporting just now under 33,000 job cuts last month. that closes the book now on the year with the fewest job cuts since 1997. and president obama will be delivering a speech on housing in phoenix today. he's going to discuss the reducing annual premiums. and calvin klein parent plans to close all izod retail stores. i like the little alligator. the business will continue to operate. check out this video. a runaway horse had two texas boys living out a western. this horse decided to make a run for it. that's when a man jumped in a pickup truck and his teenages sons followed on horseback. they managed to divert the horse as dad caught up to it.
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it is unbelievable. >> you pick the horse based on -- >> gentleness. >> -- not doing -- >> although who knows what sparked the horse's run. goldman sachs is set to release its outlook for the new year tomorrow. but joining us on set to give us a first look right now at some of the highlights is the manager at goldman sachs. she joins us exclusively this morning. sharmene thanks for joining us this morning. >> thanks for having me. >> so the big take is things look good if the u.s. this is still the place you want to be investing. >> yes, that has been our core for the last fur four years. and we're emphasizing it again this year. with the key difference the gap between the united states and key countries whether we're talking about developed economies or emerging markets has actually widened. and it's widened across a very broad spectrum of factors. so whether we're looking at gdp,
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gdp per capita oil production obviously. whether we're looking at financial factors like earnings or r.o.e. or human factors. the gap between the u.s. and all these other places has actually widened. >> entrepreneurialship and freedom to start new businesses freedom to do those again. the preimminence for the united states versus is the rest of the world. >> that has been true since world war ii. any time we go through a financial crisis people's observations are this is the end of the american century. this is the decline of the u.s. time and time again, u.s. recovers and comes out much stronger and ahead of everybody else. >> so it's an end of the american dream, income inequality, it's not like it used to be. >> he's looking at me for that. >> you hear all that stuff from
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the media mostly and then it turns out they were wrong every time. >> well i'm not sure if the media is but we're a surprised by how quickly people forget that. when people talk about the rise of dhnchina and the rise of emerging markets and this century no longer being the american century, it is very puzzling. all the evidence points to the fact that america is still the economy. >> houses not burning. you know they stay in iraq if the house is not burning. >> is that because things are doing so well in america and because we're taking off or is that because things are collapsing in europe china, and some other places? >> it's actually a combination. u.s. is doing incredibly well. if you just look at the amount of deleveraging in the united states that's occurred whether we're talking about the household sector financial sector, the united states dealing with its debt in terms of the various legislations that have occurred to reduce debt to
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gdp relative to what is projected swems the deficits. if deficits are about 2.8% fiscal year 2014 it's slightly below the post world war ii average of minus 2.4. it's actually quite significant. both on an absolute basis as well as relative. to your question about other parts of the world, they have not really addressed any of the key faultlines. there's no labor reform to speak of in europe. a lot of the dependence on commodities hasn't been addressed in countries like russia or brazil. so it's on both sides of the equation. >> let's talk about oil. we just were speaking with marc lasry and he was talking about how this is the opportunity of a lifetime when it comes to investing and the debt of these oil companies. you are telling people that eventually you think oil price wills come back and they need to be conservative. >> so there's certainly a supply and demand in balance. it's obviously both.
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supply has surprised to the upside. if you just go back to two years ago, the international energy agency had actually expected the u.s. to do better than russia and saudi arabia by 2020. it's actually done what was expected to happen in eight years in two years. so u.s. is the largest producer. so you certainly have the supply size side but growth expectations have come down. >> i spoke to blankfein about it yesterday. that is the fife things i'm worried about. and you talked me out of all five in the report. none of them really scare me that much because of the low probability of the ebola, that rates go up too quickly, that europe doesn't -- i don't know. there's five. what about six? the unknown? as we saw yesterday. isn't there something that otherwise everybody should just stay long and believe you and -- >> that's what she's saying. >> i know. but i want to know why not. how could that not be right? >> there's got to be someone on
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your team who said there's one thing being missed. right? >> you're quite right. in our report and in all our reports we always tell our clients we can never be 100% certain. so we don't know what we don't know. and there's always surprises. in fact, that's one of the things in the oil industry. there's always an unexpected surprise. so there are things that could happen. we have to think about all of them and assign probabilities. the issue is underweighting u.s. equities has a very high hurdle for us. if you believe in the economy and the u.s. if you believe in the institutions they will generate profits. the best way to capitalize those profits is saying invested. it's not as if we're saying equities are cheap, but if you have a 5% total return expectation, then why not stay fully invested versus fixed income or cash. >> and good times they don't die of old age. something kills them. right? >> and fed tightening alone will not lead to -- >> all we need to really worry
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about are, like the scariest things in the world where we'll all be dead anyway. so you might as well stay long until that day, right? there are missing nukes, loose nukes, there's putin, there's the black plague. >> we were having such a good morning. why are you -- >> yeah but there's things like ebola leaving west africa. >> if that's the case you've got bigger problems. not your concern anyways. thank you very much for joining us. >> thank you. coming up next tackling the modern challenges for women who work. ivanka trump is here. we're going to ask her about her new campaign retail brands and real estate. stay tuned for that and a lot more when "squawk box" returns in just a moment.
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welcome back to "squawk box." ivanka trump is proving most of us don't just have one career anymore. she's executive vice president of development and acquisitions for the trump organization but recently launched the social campaign women who work spotlighted the multidimensional lives of women in business. ivanka is here. and also you're in our
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commercial. thank you for introducing us to new york. >> we're excited to have you here so it feels appropriate. >> among all those things you do how do you even divide your time or think about your life now? >> it's interesting. this famous balance question i feel especially of women is always asked. i think balance by its very nature is something that's not sustainable. you know, the scale always tips in one direction. i try to assess my life and assess everything. >> is there one you like more than everything? is real estate really it or right now you have this huge lifestyle brand that's blowing up? >> i do. real estate is my first passion. i mean i grew up knowing that this was what i wanted to do. and my apparel and accessories brand really was -- happened very organically as something i saw a huge opportunity in and it's been amazing for me to watch it grow. but the way i look at everything is just about sort of managing priorities. so i like to think i'm where i need to be. and a lot of times that's with my children. and a lot of times that's in an
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office working on a deal sort of managing the ebbs and flows of life. >> you bring up an interesting point though. that's not a question we tend to ask men who come on. how much time do you spend with your children and the rest of it. and that wasn't the question he was asking but i saw you go to that place because it's part of what we're asked. >> it launched when i launched my website because i wanted to explore the idea of this working woman. you don't refer to a man as a working man yet a working woman is called a working woman. i think in media that's depicted as one dimensional. you're either choosing to be in the workforce or you're choosing to stay at home. and i think the reality is this modern working woman is working hard at all aspects of her life and all her passions. and, you know the rise of technology enables us to be at 3:00 in the morning catching up on work because we left a little bit early to be there for dinnertime with our children. likewise, we're picking up the phone in the office and talking to our kids as they're leaving
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school. so i think it's just what's changed is it's sort of become one life. and i think this new woman is able to work in a workforce that celebrates the fact that you know, we have interests and passions. >> what do you think of the ann marie slaughter world view that you can't have that balance compared to the sheryl sandberg there's a way to do it if you lean in mentality. >> my approach is not to tell people how to live their lives or to sort of sort of instruct them on what they should be doing at any moment. my approach is to celebrate the fact that we're really all the architects of our lives. we all have different priorities. so for some that's working harder. for some that's working less. and, you know it's really just -- it's really architecting the life you yourself want to live. >> i think it's really nice that you -- and who was that you're talking about? >> she wrote in the new yorker. >> is there a book that i can
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read that she's written so i can speak coherently? >> was it the atlantic? she wrote a big piece. she'd been working in the administration. she took time off. >> can you help me with this so i feel more -- because you are really in tune. and i commend you. >> let's take a right turn and can we talk about "the apprentice" for a second? >> seems tawdry after that. >> the ratings where crazy. your father says that the reason is they have unbelievably negative chemistry which makes for good tv. this group is the meanest by far. >> and this is not an exaggeration. it is amazing. normally the first couple of episodes they're sort of feeling each other out. they're pretending to be nicer people than they actually are to assess the competition. that didn't happen this time. i mooean, people came too e the first day of filming with huge animosity towards one another that had been from previous
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lives. you know, the housewives. it was amazing day one. i've never seen a first board room where they're already throwing each other under the bus. so it's a lot of fun. it's great. there's amazing chemistry, amazing tasks. we raised a tremendous amount of money for charity which is something that's often overlooked. but we raised over $15 million for charity over the life cycle of "the celebrity apprentice." >> keshia knight got fired for not calling bill cosby during this thing. it was a year ago. so nobody knew about -- >> it was prior to it. >> but have people talked about that since? >> naturally the connections is made. this was actually prior to all the allegations coming out. >> i don't know if you saw this. they had asked her for a bake sale to call him to pay for a bake sale. and she didn't want to call him. >> i think it was less about that and truthfully more as a project manager if there a not another obvious person to fire, you're it.
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>> how do you feel about firing people, by the way? >> i feel like you have to be a sick human being to enjoy it. >> now you're throwing your father under the bus. >> no but he doesn't -- it's actually one of the things i think "the apprentice" has been humanizing. he doesn't want to do it. >> he does say it well. >> he does. he's upset with them for the fact they didn't rise to their potential or what he knows they're capable of. but i think the only time you're excited to fire somebody is if you find out that they've stolen or that they've behaved in a way -- >> intentional misdeeds. >> yeah. i think most of the time it's really challenging. because middle eastost of the time you're letting go of somebody it's because they're not just quite good enough. that's the hardest. >> do you go to the possible golf course sites? or do you leave that -- >> i do. >> she's negotiating the deals now. >> is there anything i need to know about that is going to be
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unbelievable on a coast somewhere. >> we have some amazing new courses for you to play. i know you've played at our great course in bedminster. we just bought for the british open. we just finished up the ren no renovation. the red tiger on one of the courses. >> did it get the pga? >> it got the pga tour 2020. so we're getting the pga there. >> it's a hard course. i wouldn't want to play that. >> and we have the seniors in washington. and we have the cadillac championship in doral in march. it's a lot of fun. >> he never came out to our studio. you know that. >> i wonder now that you are in much closer proximity -- trump tower is a few blocks that way. >> he's still going to call in. >> no, he's coming in here. >> all right.
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>> thank you. >> thanks for having me. when we come back this morning, we'll get to stocks on the move. meg tirrell reports on a big pre-market biotech move after the break. is then simply select \.
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welcome back everybody. shares of biogen popping. meg tirrell tells us why. >> good morning. we're seeing data coming out
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from biogen making its shares move. what it aims to do is repair the nerve scarring that you see in diseases like multiple sclerosis. these data did show evidence of biological repair of the system. the study shows improvement in the primary end point. but some mixed results didn't show improvement on the secondary goals in the study. earlier we had seen shares up 7%. now up only as much as 2% premarket as people are digesting these data. but really this is an important program. because this idea of remile nation, that's repairing the scars from the nerves. this could be the first program to actually reverse some of that disease you see. some of that progression you see in m.s. so we should see more data throughout the year and next year. but some really watched data coming out from biogen. back to you guys. >> all right, meg. thank you. what a stock. coming up our big lineup
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continues at the top of the hour. barry sternlicht is here. then at 8:30 former sirius xm ceo mel karmazin. he's not really in our demo that's what he told me. but we will welcome him. we will be right back.
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welcome to new york. welcome to the new "squawk box." straight ahead, the founder of investment group starwood capital, barry sternlicht. plus breaking news on the jobless claims. and then mel karmazin. plus tom colicio stops by to talk breakfast. "squawk box" is live from the biggest business stage in the world. welcome back to "squawk box" here on cnbc first in business worldwide. i'm joe kernen along with becky quick and andrew ross sorkin. and we begin the hour with news that just within the past few hours we've been reporting. reports now say that the two suspects in the paris magazine massacre have been found.
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just been found in france. they've been observing a day of mourning. we had a moment of silence at the beginning of the show. cnbc's hadley gamble is in paris with more. hello, hadley. >> good morning, joe. essentially what we know right now, there are reports circulating that two of the suspects have been sighted at a gas station in northeast france. nbc is working to confirm those reports. what i can tell you is that authorities here in france are looking for two brothers. they released their photos overnight. these two brothers are suspected to have links to terrorist organizations. supposedly one of them has been convicted and served time in the past for links to terrorist groups. we also understand that the third suspect in the attacks turned himself into police overnight. we also understand that several people were questioned and detained in the last 24 hours on this attack. also i want to mention an attack
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earlier this morning that may be linked although we have no evidence of this as of right now. basically what we heard was that one police officer was shot and killed, another was wounded in the attack this morning in southern paris. but no link as of yet to the attacks we saw here in paris yesterday. >> okay. hadley, we appreciate it. thanks for that report. it occurred to me you know boston marathon brothers. maybe one more dominant feeds off the other. weird again we're talking about brothers as the remaining brother in this country goes on trial i think. >> just earlier this week yeah. we're going to switch gears to corporate headlines right now at this hour. family dollar missing the street's mark on both the top and bottom lines. the discount retailer said it's now in the middle of converting from a highly promotional strategy to every day low prices. also costco reporting a 3% increase in december. that was better than expected.
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and wd-40 reporting lower profit in revenue. a little squeaky. solutions with the quick fix solutions management did see higher sales but that was offset by increasing expenses. and gw pharma dropping a drug. we are less than 90 minutes away from the opening bell on wall street. the futures have been indicated higher this morning. yesterday was the first time all year -- i know only a few trading sessions but the first time all year we've seen green arrows for the markets. the dow futures indicated up about 160 points. also checking the markets in europe at this hour you'll see similar gains there. the cac in france is up 2.25%. the ftse in london dax in germany up by 1.75%. lloyd blankfein shared his view of the markets and weighed
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in on who he thinks is really in control of interest rates. >> you think there's a little bit of an embedded assumption that interest rates can't go up sharply to a very high level over a short period of time. and as far as the disorderly nature it becomes the market's decision. >> let's bring in our guest this morning. barry sternlicht. "fast" it's great to have you here this morning. >> great to see you. happy new year. >> and to you. the yields have been kind of hard to predict, not too many people had seen yields falling to levels this low. we saw the 10-year below 2% again. what's happening? >> a lot of people on the wrong side of a lot of trades in the liquid markets. you see oil go right through. we talk 70 50 now they're talking $13 oil. you talk about a global economy,
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you see europe sort of not solving its problems. the greece issue riding its head. people know the numbers are soft. i was in china recently in december. and you look around and wonder about what kind of spending they're doing to prop up their economy. so i think -- and brazil is in the tank. there's no real source of global growth. and we're going to be lower longer everywhere for awhile. i don't think the fed can raise rates much. if they do it will just be a token. with the dollar in the position it is with the way it's strengthening against all the global currencies we would put a big halt on the u.s. economy if the dollar continues to strengthen against the global economies of europe or the euros tanking 117 this morning or yen at 119. we raise rates, the dollar gets stronger, the economy gets weaker. >> it has a dual mandate. and worry about -- >> it's the worry about inflation. there's no issue there.
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they just got a big windfall i'm sure the economists missed. so we could have the best kind of inflation. we were talking about commodity inflation. that would be the third leg of a missing economy in the united states. >> you think that actually happens this year? >> well against a weakening global economy and u.s. exports, we talked about the revolution in u.s. manufacturing. when we still have $3 gas that's good for manufacturing and production. but we don't have wage inflation, but maybe we'll get it. that would help consumer spending. they'll have more money. if they actually got wages to go up the u.s. economy would continue to grow against what would be the -- so i think i really look forward to wage inflation. i'm really hoping that that kind of brings the nation together in what's going to be a fun
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political environment the next 18, 20 months. i saw jeb bush last night. >> you did? and? >> he was in greenwich. >> you voted democrat in the past. you changed the tunes in the last couple years. >> i'm voting for the nation's balance sheet. if we can't fix the economy, we can't fix education. jeb ruz fantastic, by the way. >> you were a late bloomer. that's all. >> i'm liberal. >> you're a late bloomer. we left the lights on and you finally -- you know it's like you looked around and said wow, things could be better for the private sector. maybe the government shouldn't be standing in the way all the time. and, you know what's the expression? if you're 20 and you don't have a heart if you're 40 then you don't have a brain. >> most surprising thing jeb
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bush had to say? >> the education. his record in florida on education is great. so he can talk about things he's gotten done. talking about the future opposed to the past. and look every politician talks about the same thing. he has a hispanic wife. he does have -- he's bicultural. he calls his daughter quadra-cultural. i don't know what that means but she speaks three languages. you know it's not authentic when they talk about things their pundits want. >> did he talk about what the playing field looks like? >> who could that be? >> let's think. >> well it's clear he'd like to -- you know he's not formally announced, but he clearly would like to come out of the box with a big amount of money and scare away what looks to be 16 other contenders in the
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republican party. >> what about chris christie? >> i like him. but i think the nation wants to shake it up. >> there has been -- maybe he missed his chance. he was everybody's pick -- all these guys. and now one by one they've all come around. they're talking bush just like you now. >> bush's biggest problem is his name. >> did he talk about that at all? >> christie's biggest problem is his state. his state hasn't done very well. it's not doing well. we like him because he shakes things up and you feel he won't be held hostage and he'll do things in the long-term interest of the nation. >> does he address the issue at all of his name and the challenge that represents? >> yeah. he says look at me for who i am. i am what i am. and it's like i'm not my brother. i'm not my dad. and it's the right message. he says look at my track record. >> there's a report out this morning in politico that says he's going to release his tax returns. you saw that.
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>> yeah. this is a brilliant campaign. i'm sending you all my e-mails, i'm dropping off my corporate interest. he joked at the start of it saying this is the first time in my life i've been unemployed. i was like you're not the only person. >> he took the plunge early for -- because he's -- i just heard anecdotally he's meeting with the most well heeled people one after another. >> he's going to have some money. the pac, superpac. it's a shame. this whole thing is a shame. >> the money part. >> yeah. the government should give each candidate $500 million and say have at it. >> this is the democrat coming out of you. >> it isn't. >> yeah. everybody's got to right -- >> you want to spend all your money up front, it's like discretionary. >> how many candidates do we have to give half a billion to? >> it's called free speech. why can't someone -- it's part of free speech. i'd rather be able to support a candidate than see the
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interview. >> they should be doing laws instead of campaigning raising money. come on. >> politically correct to go that route. >> let's go back to business. you mentioned all these problems around the globe. all things that might catch up to us. but right now how is the american consumer doing? >> pretty well. i was kind of worried about christmas with thanksgiving returns and what was it? what's our day there? super monday? what is the day thanksgiving weekend? >> black friday. cyber monday. >> cyber monday. so the numbers didn't look so good. they showed up late. and they have reported to us the numbers are pretty good. you saw jcpenney's number looked pretty good. a few retailers i won't say who looked a little troubled. >> those inside the mall retailers? >> i'm talking about the anchor department numbers. i don't have the store numbers inside the malls yet.
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i was hoping we'd see that happen, that people would translate some of the windfalls from gasoline to spending. and it looks like they did. and some categories are particularly weak. so that's good. and i think you'll continue to see that. it's happened so fast oil, that i think people are getting used to the fact that maybe oil will be here for awhile. although i don't know how long it will be here for. >> we'll go right back because i'm slowly seeing that wrung out of every one of our guests saying we're snapping back to $70 or $80. >> i was in the middle east recently. you wonder how long i was with them and talking to major oil producers. you wonder how long they can do this for. >> how long they can continue to keep -- like we don't care. >> and there's two bad actors here. they're really hurting iran and really hurting russia who may do
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something violent. don't put anything past putin. they also have major infrastructure problems there. they need the revenues. >> but they need to keep selling for the revenues. they can't cut back and wait for it to go up. when you don't have a cartel you need to keep selling. >> we all missed it. they don't even like each other. it's pretty tough. >> if you're going to put a number on it? >> i think oil is dropping in the interim maybe as low as $35. >> is that sustained? >> i think in a year back at $70. this isn't my expertise. i think increaseing demand and you'll see supply cuts. we're involved in oil and gas too. there are projects we're not funding and doing because the break evens were 65 bucks. >> it took years for the
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horizontal drilling to come in. >> you already built the -- you drilled the well put up the rig. you're going to be online for awhile. >> i wouldn't be surprised if it stayed at $50 for two years. >> it could be 18 months before it rises. >> two years, 18 months. now you're getting pretty fancy. >> talk about real estate for one second changing topics. one thing interesting about the cycle is with the rates where they are, real estate looks super attractive. and having just finished a major fund raise for our new fund we've got -- we've attracted many sovereign oil funds. and they are screaming for yield. right? as you know. and it's getting to the point of absurdity when they already own all these bonds. the german 10-year .4. so they need yields. and you're seeing it. look out the window. every one of these buildings is a bond to these investors. every one of these things i can
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buy more treasuries. which we print more over the ecb buildings. or i can own a real asset which might benefit some day if there's inflation at 3%. so real estate guys are having to get used to the fact that we're seeing a lot of strange capital in our market that's here for as a fixed income investment practically. i was talking to somebody the crown building down the corner just sold for $1.9 billion. i think it's a 1.5% yield. i was talking to one of the largest money managers in the world saying are you crazy why would you buy this building. if new york city rents double you're going to get 3.5% yield. he says you know we got a lot of money. so that's the attitude today. but they're not going to cleveland. they're going to cities like here. >> how about hotel room rates. he's going to europe. >> you have a strong dollar. you'd be rich.
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>> and i hear about what you just said and i just wonder if we're missing there's a lot of money going places it shouldn't go. >> they have less money if oil stays down here. >> but think about how much -- think about central bankers and how much we have created and people worry about it going into places where it shouldn't go. you said it. if it doubles they get to three? maybe that money shouldn't be there. >> well you can certainly have that in other alternative investments. >> barry, thank you for joining us. every time you're here we feel smarter so thank you. >> thank you. coming up he's won six stanley cups including one here in new york. he's the only player to ever captain two hockey clubs. off the ice he's become a businessman and philanthropist. we'll catch up with messier.
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and then later mel karmazin will drop in. and then top chef judge tom colicchio brings us power breakfast. "squawk box" will be right back. out of 42 vehicles... based on 6 different criteria... why did a panel of 11 automotive experts... ... name the volkswagen golf motor trend's 2015 car of the year? we'll give you four good reasons the all-new volkswagen golf starting at $17,995. there's an award winning golf for everyone.
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a few stocks on the move this morning. american eagle offering upbeat fourth quarter guidance. pvh corps will close its izod retail division by the end of the fiscal year. it should not impact its wholesale business. and aeropostle better than people were expecting. also raising its fourth quarter earnings guides. up next new york sports icon turned philanthropist mark messier will join us to talk much more. a squawk shapnapshot is next.
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mark messier is here. are you more slaughter feminist or sheryl sandberg -- he's known as one of network ease iconic sports stars. helping getting the stanley cup. do you remember the winning goal? >> i remember it like it was yesterday. it was almost -- more than 20 years ago now.
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>> with us now mark messier. nhl hall of famer. he's with us to talk about the harvard versus yale rivalry at madison square garden this saturday. they're the two most storied college teams and that's always a great event. i was surprised you said the highlight of your career was playing for the stingers. >> no. i had the distinction of being the youngest player ever to fold the league. >> and then you heard of buzzy who played for the swords. >> real characters back then. it was quite a league. but learned a lot my first year as a 17-year-old. >> let's start with the game. it's saturday. it's an msg broadcast. >> yes. msg broadcast. amazing opportunity for these kids to play at madison square garden. college hockey as you know is something that's dear to me. me brother played in denver. i was on my way to denver. >> bean pot is big. those people stop everything. >> college hockey is big everywhere. 1900 was the last time since
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last year that harvard and yale met in new york city. they dressed in tuxedos and played in columbus circle. it's got a lot of tradition. but the product is what's very appealing. great young players. >> and i never, you know was a big stingers fan. and then hockey in general until the flat screen high def i didn't realize it's just -- it may be the best thing to watch. and in person now we go. and we've got a team in this town. >> we've got a team in this town again. rangers are playing awesome. but you're right. high definition has made a huge difference for the fan that's watching hockey. >> it's very expensive. that's the only thing i'll say. decent seats. luckily nbc is the broadcaster so i may have a couple connections there. >> you can go see this game saturday night for $25 a ticket there. it's an amazing opportunity to see these kids. you look at the rangers, they've got six or seven who played in
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college and learned in the college ranks. >> what's the difference between the playoffs and rick nash this yore? >> experience. >> is that what it is? >> experience. you can't expect a guy because he's played in the league for ten years with little playoff experience to be a sensation. it takes a lot of experience to learn how to play in the playoffs. although he's well into his career that doesn't make up the time -- >> they're on a roll right now. >> what's different about playing in the playoffs? >> a different game. the intensity is ratcheted up enormously. opportunities are few and far between. you got to make your opportunities instead of sometimes in the regular season. opportunities come your way despite chance. big difference in the playoff hockey. >> couple minutes we got to talk about some of your businesses and philanthropic efforts too. >> my main focus right now is building the kingsbridge national ice center in the bronx. it will be the world's largest
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indoor ice facility with nine sheets of ice. for full event venue. we're creating jobs. we're giving kids an opportunity that have never had an opportunity to get on the ice. will be a fully functional ice service venue with curling, short track speed skating, figure skating, synchronized ice skating, sled hockey. >> are you going to coach? >> there was a story in september you might be up for the oilers. >> you never say never. my main focus here is in the city building this ice sheet, the charities i belong with and businesses. >> do players make good coaches? >> i think you're a coach or you're not. you have that instinct. you come by it through your experiences and some people are better teachers than others. i think sometimes we get lost with the words of coaching and teaching, i think there's a good blend. especially at the minor league lel you have to be a teacher before a coach. the professional league you have to be both. and they have to be balanced
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equally. >> you always remembered nbc was there before anybody else was. will you remember that? >> that's why we're here talking hockey again. >> you're welcome. >> harvard/yale. >> very good. thanks very much. good to see you. >> thank you. when we come back we've got the jobless claims nap number is straight ahead so stick around. and then media mogul and former ceo of sirius radio will joins up. "squawk box" is live from new york after a quick break. ♪ the all new, head turning cadillac ats coupe. it's irresistible. ♪
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breaking news. initial jobless claims. welcome back to "squawk box." down 4,000 from 298,000 unrevised to 294,000. continuing claims actually ramped it up a bit. from 2.35 up to 2.45 million. so up a little bit there. and we're getting close tore 300 versus closer to 275. so many may argue that that's an important aspect to pay attention to. but really maybe the most important aspect today is kind of digesting the notion. the always evolving to some
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issue of whether there's going to be a fed normalization in 2015. chicago's very own charles evans last night maybe put a bit of wet blanket on that notion. and it did show up in a bit of a yield curve. we talked about that a bit. long an confined new sellers. if the short end finds new buyers and one way to find new buyers in the short end is to say 2016 would be the year. so we want to pay attention there as we flirt with 2%. not a high yield by any stretch but a lot higher than the 188 level from two sessions ago. back to you and congratulations on the new studio. >> thank you, rick. appreciate it very very much. we are back here at the table. we're here with mel karmazin to my right. he's been at the helm of many media companies. who better to talk about the latest craze for content,
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mergers, the future. we are very excited to welcome mel karmazin former ceo of sirius and former ceo of viacom. that's kind of a lot. >> that's what happens when you're old. you get to have done a lot of things. >> now you've done all these things and you're watching all this is little bit, what do you make of all the consolidation that's going on in the media space and whether you think, by the way, the consolidation is going to happen. when i say that you've got time warner cable and our parent company comcast. directv, all these things. you've dealt with some of the regulators in that instance when you were trying to put xm and sirius together. >> it's great to be a consumer. consumers have a great chance to get more content. it really sucks to be at one of the media companies. can i use that word? >> you just did so go for it. >> i've been part of consolidation my whole career. as far as consolidating radio
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stations. and outdoor you had the visual for outdoor. then realized that i need television. so i sold the company to cbs. then i realized that i didn't have enough assets there because the advertising agencies wanted more cable. so i sold cbs to viacom and thought we had it knocked. i'll never forget in 2000 we had just done the cbs/viacom combination. and i got a call. it was a sunday night. i received a phone call from one of our largest investors. very well known media investor. and said -- called me at home sunday night to tell me we were toast because aol was about to do a deal with time warner. and you better get your ass on and airplane and get out to yahoo!. so obediently i called up jerry yang and i forgot the name of who the ceo was at the time and when out there.
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yahoo! stock was at $120. and the feeling was that tim coogle -- and the feeling was you had to just keep getting bigger. you take a look and e soo all of the consolidation that's gone on in the advertising agency world. you see there is so much advertising inventory out there that there is far more supply than there is demand. in order to have the position to deal with advertisers, to deal with the distributors, you need to be bigger. >> you had adversaries to many of your deals along the way. people like netflix and others and other content creators who have come out against some of the other larger pipe deals. what do you think of those challengers, that challenge? >> i think people are doing things that are defensive and trying to use the government as a way of trying to slow down or add things to the problem. i can tell you that we filed a
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merger for sirius and xm. two satellite radio companies. both losing money. this was not exxonmobil. there were four congressional hearings. it took the fcc 17 months -- 17 months to say is it better to have two satellite radio companies or one? now, there is no way -- you can make a decision that says you know what? there's a big universe of competition. you know there's all kinds of -- but 17 months to get a deal approved? >> just satellite. is that thing that begins with a "h," 1932 that your dad still uses. they're crazy. >> at the end of the day they still approved it. and it would have been okay if you said yes there's a lot of audio entertainment, but we don't like. and there were two democrats. at that point there were three republicans and two democrats. both democrats voted against the
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deal. there was nothing -- >> stop the presses. >> you just said the competitors were using the government to slow it down. >> sure. to get things added to it. the competition complains and you need five votes at the fcc. and the fcc standard is what's in the public interest. so it's in the public interest that satellite radio continue to keep country music on in nashville. okay? that would get my vote mr. karmazin. and kevin martin at the time chairman believed in a la carte. and he said you want my vote i believe it is in the public interest if you offered a la carte on radio. it made zero sense. >> so if you're a betting man, i know what you want to happen. what do you think will happen? >> with comcast? >> time warner cable and directv. >> approved. on both. >> because? >> because it should get done. it's hard to find good reasons
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to stop it. and i believe at the end of the day it's not anti-competitive. i don't believe there is any monopoly that they're going to have. i don't think it's going to be harmful. and i think that the competition doesn't like it. >> you mentioned the word a la carte. other people talk about unbundling. do you think that -- i mean it clearly changes the economics of the media industry if you unbundle. but it does change it for the better or for the worse? >> i think the idea of unbundling is good for consumers because it gives consumers a choice. but if i'm dish network, i want more subscribers, more revenue. i want my average revenue per user to go up i don't want it to go down unless i'm going to have that many more subscribers. i don't believe this quote, little bundle is going to drop
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to not have the broadcast networks to not have cnbc to not have all the great content out there. i think the vast majority are going to want the whole thing. i was trying to make this an example when dealing with the fcc. i don't think if you sold a left shoe and the right shoe and the laces separate that giving the consumer that they're going to opt for that. i think they like the idea of them being together. >> cut to the chase dpp you get out while the getting was good? or do you envy the decisions that have to be made by these companies right now? >> i don't think the decisions are hard. >> are any of them -- can any of them work out where we can maintain -- >> in my opinion when i give my investment banking, you know free investment banks advice the deal that should get done that should be absolutely would be the best deal that i would even invest money in would be the combination of time warner and cbs.
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that is a match that makes such great lodge erk. time warner has a studio. they have cnn. turner sports has a lot of sports. >> what about young people that -- what i'm talking about is can old media survive? is there a way to -- we don't have any young viewers going to movies watching cable, watching network. is it going to be okay? are these two people with this sweet gig they got, am i in the right position because i only got 50 years left and they might have 80 or a hundred? >> all i can tell you is that the content is key. people are going to content. they'll go to the media player that's here instead of the media player that's on television. >> you just mentioned cbs. i want to know the future of both cbs and viacom. philippe just sold a lot of shares in december. what do you think is going to
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happen to that company? both of those companies. >> one of the reasons that sumner and i didn't get long was we really weren't that close. i can't give you an incite into sumner redstone. i can tell you shareholders in my opinion would be better off if cbs and time warner to combine. it just makes sense. what's the reason it wouldn't work? you have a lot of cable. the cable will get carried. a lot of the cable won't get carried. the reason it gets carried is because they want the nfl. you know how long did it take time warner to blink because of cbs when they started talking? right now dish network is at war with a cable news network. they haven't blinked yet. if fox's game this weekend was on television and dish didn't have it, i guarantee you that
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deal would be settled. so if you are a content company, you need not just content, you need must-carry content. >> you want to run another company? >> no. >> you don't. >> no. i want to -- i worked for 52 years. i think that right now what i'm doing is that if you think about the department store of life i'm running the toy department. i am doing what i want to do. i'm doing it mostly not for profit. >> do you have an eight pack? a six pack? >> no. >> you don't have -- >> i am not a pretty sight when i am naked. i know we don't want to go there. children may be watching. it's not pretty. >> i'm not going to grant you that. it's in the eye of the beholder. you're looking pretty good to me clothed. so i wonder whether your workout has got ton the point where you have a six pack? >> no. but you've always had a man crush on me. >> i have. i don't have a problem admitting that. >> i wanted you to see my
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ability. you never saw any of that. >> you're an object to me. but you look much thinner than -- you look in good shape. >> i got out of the army after being in basic training and everything and that was the thinnest i had ever been. i weigh ten pounds lower than then. and i'm wearing the same size pants that i used to get at barney's chubby department when i was bar mitzvahed at 13. >> we got to go. how's your pal howard stern? >> best talent ever. not just radio. i mean -- look at this guy. he's been successful in everything he has done in media. >> he has. and he says chubby all the time. you mean something else. >> you got to come back and bring howard with you. >> i have no relationship with howard today since i'm not working there. >> i know you're not his boss.
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but he did well by you and he did well by him. >> i did very well thanks to his great programming skills. he's terrific. >> mel karmazin, thank you. >> thanks for coming in today. up next breakfast with celebrity chef and bravo tv star tom colicchio. he's going to be sharing his recipe for business success after the break. but first we are watching shares of ford. the auto maker raises dividend to 15 cents from 12.5 cents. "squawk box" will be right back. [container door opening] ♪ what makes it an suv is what you can get into it. ♪ [container door closing] what makes it an nx is what you can get out of it. ♪ introducing the first-ever lexus nx turbo and hybrid. once you go beyond utility there's no going back.
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that was joe of restaurant start-up. he is a new york native. he will be joining us next tuesday ahead of a new season of "restaurant start-up." maybe we'll get tips where to eat. right now we have another chef who's cooking up success. he's been one of the few in the city who's made the transition from head chef to businessman. now has 14 locations including san francisco. of course he is the lead judge on bravo's "top chef." has a new show launching later this month called "best new restaurant." tom colicchio is here. and you brought us breakfast. >> i did. >> what do we have here? >> breakfast for champions. >> granola and honey.
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we make granola in house. this is an egg frisa and bacon. this is a fried egg with a croissant. then lunch goat cheese and avocado avocado. chick peas and roast turkey avocado, onion relish. >> this is all fast casual. what's the price point on this stuff? because it's not cheap. >> the price point -- right now everything here is under $10. right around $10. we're trying to keep everything under that mark. although food prices are going up. we may have to break that barrier. >> as a businessman looking at this business, do you think now that whichcraft could be shake shack? >> we thought the whichcraft could be. years ago when we opened up we
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stumbled into the sandwich business. but we realized this was a growth vehicle for us. opening up restaurants takes a lot of capital. the the the -- >> are you surprised by the success of shake shack? would you buy into that ipo? >> i don't know. buy into it short maybe. restaurants usually go up at a high number and then come back. but i'm surprised at the numbers. >> in terms of how much it's valued at. >> yeah. especially when looking at the growth model. ten stores a year. >> people think chipotle or panera or something in their early days. >> a fast food done? like mcdonald's, do they have a shot? >> i don't think fast food's done. but i think people are looking
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for something healthier, something they can relate to. they're looking to food made with better ingredients, ingredients better for the environment, ingredients that are more sustainable. they're looking to grass fed beef. >> is that everywhere? >> i think it's everywhere it's happening everywhere. it's happening to iowa st. louis, everywhere. >> i'm much more aware than i was a few years ago. >> i think people are. i think that it's a combination of what's better for your body and also what's better for the planet. >> just very quickly, you are potentially doing a deal with barry sternlicht. i heard you met up in the green room. >> it's funny. we are partners. i'm doing the food for his new hotel in miami. and we've been working on this project for over a year now. and we've never met until here in the green room. >> funny. >> we try to do that. >> this one is hard because it's like which is your favorite child. but you have whichcraft you have the sort of fancier restaurants, and you have a tv show. which is your favorite? >> by far, restaurants.
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i love doing whichcraft, it's a very different business model. so it took some time to get used to doing this business.business. it's very different than the restaurant business. there is nothing like opening a restaurant. there is nothing like opening night. opening night, when you get a team of people together and pull them together for opening night and that first kid comes in there is nothing like it. it's like boxing night. the first round in a boxing match. when a concert is starting. there is this buzz and energy once you do it the first time you can't get it out of your system. >> the messiest thing you could pick. >> are you auditioning for the "today" show? >> i hope there is no next segment. >> these are the notes for this segment. >> thank you for being here. >> you're welcome, thanks. >> the same zeal with the teleprompter. when we return -- >> look at it.
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>> and you had your feet massaged on the air. we have jim cramer on the big rebound in stocks. and what investors can expect in the trading day ahead.
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let's get down to the new york stock exchange. jim cramer joins us now. we had a couple of tidbits that have come up in conversations in the morning. i wanted to get your thoughts on what some of these guests said. barry sternlicht owns 25 malls. some of the anchors in those 25 malls have done well including jcpenney and macy's.
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others not quite so well. this is just 25 stores, 25 mules, not the entire universe. what do you think about that? >> malls anchored by sears are really getting hurt because people just aren't shopping there. malls anchored by macy's doing quite well. jc penney we saw better than expected numbers. in the end i like retail because of gasoline. i also know pimco which is more of a strip are both doing really well. i'm not going to condemn the industry. i think there is still opportunity. >> we spoke with former partner of danny myers and talked about shake shack. he is not going to say anything bad, but he says sometimes these restaurant stocks have high valuations and he wouldn't necessarily buy in. >> danny myers, terrific guy. he is a friend terrific business book. when i start made restaurant i went to his mixologist.
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i think same-store sells will be good because that's the way he runs his business. >> thank you. >> when we return a biotech stock getting a big boost this morning. tomorrow jobs friday.
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among the movers this morning, biogen idec showing evidence of optic nerve repair in a mid-stage study that's being tested in patients with ms. >> gw pharma shares dropping. the cannabis drug failing to alleviate pain in cancer patients in a clinical study. mel works out. i wondered if you got to point,
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but i never had that in my life. i'm going to see if it's possible because i have a trainer. >> another great day. >> we got to see so many people we were eager to see. >> tomorrow we are going to be wrapping up a big week on "squawk box" with a jobs report. we have dick parsons and larry summers will give us his assessment of the economy. steny hoyer on issues facing washington this year and much more. "squawk box" begins at 6:00 a.m. eastern only here on cnbc. join us. we have a big day tomorrow. join us tomorrow and "squawk on the street" begins right now. good morning on this cold thursday welcome to "squawk on
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the street." i'm carl quintanilla with jim cramer and dave faber. futures warming up after the best day for stocks since december 18th. more encouraging signs since the holiday shopping season. oil struggling to get back to $49. it is down seven of the last nine sessions. then the ten-year pivoting right around 2% after those fed minutes

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