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tv   Worldwide Exchange  CNBC  September 30, 2015 5:00am-6:01am EDT

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congress. u.s. lawmakers look to approve a spending plan before the close today as republicans discuss a two year budget deal with the president. >> prepare for failures. the imf warns emerging economies need to brace for the debt market consequences of rising rates. >> the hardest car in the world to build, investors hope can make the auto maker turn the corner. >> and we're back in the wrur row zone because euro zone prices according to the september number they dipped in the month of september by 0.1% year on year. so that is what was expected. we're not seeing a big movement in euro dollar right now.
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11228. the same level just before the data hit but once again this came after the german data fell into deflation territory for the first time in 8 months. the spanish data din look very good and it should be a headache for the ecb going forward. we know this is down to the continued drop in prices. this is very much a temporary phenomenon but will there be more qe on the cards? that's the question. >> we did see a seesaw session yesterday with the dow with a trading range of 177 points. let's take a look ahead to the final day of the quarter and the month. s&p 500, the implied open is telling us we're up some 19 points. dow jones industrials. we're about 180 points above fair value so we should be up triple digits. 178 points higher. the nasdaq also seeing gains at the open today. maybe up some 54 points and
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change. let's show you the month, probably a month to forget because we are tracking for the worst month for the s&p 500 since the third quarter of 2011 and historically the last day, september 30th here, last day of the 3rd quarter is one of the worst only up 38%. let's flip the page and check in on the ftse as well. across europe it wasn't a great quarter either. 3rd quarter of 2011 and if you're wondering where we go back to the third quarter of 2011, if you're wondering what happened during that time, the sovereign debt crisis, yes, greece, so it feels like deja vu all over again. it has to be about china and shanghai with the worst quarter since the global financial crisis. 2008. let's break it down and talk about the sectors and crude, you
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know, crude pricing has since a year ago and that has impacted a lot of the energy shares. for instance, the energy portion of the s&p. if you're looking for declines for the quarter, we're down some 23% and there's a lot more fear back in the markets with these massive declines we have seen in the last three months. a lot of volatility. we don't have as much complacency as some criticized before. we're almost breaking through triple digits up some 93% so you can sniff some of that fear. >> wrae, what a increase. >> let's move on. the u.s. senate will vote at 10:00 a.m. eastern time on the bill to fund the federal government since december 11th. the measure is expected to pass with a simple majority. it then goes to the house which is also expected to pass it by the end of the day avoiding a government shutdown at midnight. the house is also scheduled to vote an an amendment to defund
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planned parenthood but that's not expected to get past the senate or president obama. >> republican leaders in congress have reportedly opened up discussions now with the u.s. p barrack obama about a possible two year budget deal. the wall street journal is reporting this saying that the gop, they want to avoid repeated fiscal crises and a spending fight in the middle of an election year. the talks aren't expected to be wrapped up but it's also unclear whether kech mccarthy that is expected to be the next speaker of the house will take part in these discussions. speaking to cnbc he voiced his opposition to include funding for planned parenthood in this deal. >> i don't believe having tax dollars going to planned parenthood. this deal will move forward but we need to set up a select committee. just like we have been able to do with benghazi.
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in the end the truth will come out and we will win. >> the clock is ticking toward midnight. great to have you. so it looks like we avoid at least a government shutdown but i don't want to call house speaker john boehner a sacrificial lamb but some say he did this to get the stop gap spending bill through. >> that's probably part of it. a lot of it is he was tired of having to fight constantly with the conservatives in his caucus. what they'll pass will get us through december 11th and the big question is what happens then? you have to raise the debt ceiling and fund the government. it's going to be an interesting december and those budget talks you mentioned will begin as soon as this cr gets through but they're fighting right now over who's involved in those budget
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talks. democrats don't want to be excluded from that. republicans wanted to start with boehner and mcconnell and the president so it's not a great sign that they can't even agree on who's going to be in the room at this point. so my hopes for a big sweeping budge deal to get through not super high. >> what will this budget deal look like? what kind of inclusions are we going to see? planned parenthood looks done. the democrats get on board. house speaker john boehner will get the vote here. what about the import bank? i'm worried about the highway funding measures as well. defense spending. what sort of budget deal do you think we'll get through? >> sure, the whole idea of what they're going to talk abouts would be an idea of including the xm bank, funding the highway trust fund, essentially taking all the big legislative fiscal
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cliffs off the table so republicans don't have to worry about it. problem is republicans want to increase defense spending, democrats want to increase domestic spending. it's been difficult to come to agreement on that before. democrats would like to see tax hikes, republicans won't accept that. there's a whole lot that would need to come into a budget package that would set top line spending numbers for 2016 and 2017. can they get to that point? it's possible. there will be incentive for republicans that don't want to be looking at a possible scare over the debt limit and a shutdown in december before the election year but you've also got house conservatives very addiment about not lifting spending caps and continuing the fiscal discipline they installed in 2011 and they're not at risk. they're in seats that are safe and their big risk is primary fights and they can't cave to
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democrats on spending. so it's possible that you can get a deal in the october-november tile frame that takes the shutdown and debt limit off the table but a lot has to go down. >> december might be the month the fed is looking at hiking interest rates. you can comment on the fed as well, do you think that the fed would hold off on raising rates if we're still seeing a very messy situation in washington? >> it's absolutely possible that they could. it's happened in the past. it's not unprecedented for the fed to pause given washington dysfunction. the bernanke fed kept a close eye on the previous prices and would hold off based on those. janet yellen indicated she is keen to raise rates to get started to make sure that they don't get inflation get away
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from them and she's not paying that close of attention to what's going on in congress right now but ultimately they'll have to. if congress is threatening at the fault. if congress is getting ready to shutdown the government those can impact economic growth and consumer confidence and stock market. it's hard to see the fed raising rates at the same time. so if those things were to come together at one time the fed would have to punt until 2016 and wait for washington to figure it out. maybe washington does figure it out. fed stays on track, raises rates in december and we're in good shape but if it's a total crisis in d.c., the fed will have to pause. >> thank you for getting up early. >> as always. i want that tesla. >> 132,000. >> you guys could work that out for me. change, right? >> for you, maybe. >> yes, thank you. >> cnbc contributor. he's asking for a lot don't you think. >> well, you asked for one too
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in the last hour. >> for christmas. but i asked for christmas. just a few months away. let's give you a run down of what we're going to watch for this trading day. the private jobs report out at 8:15 a.m. eastern time. it's up from 190,000 in august and then at 10:00 a.m. september chicago pmi. fed chair janet yellen will give opening remarks in st. louis and then new york fed president bill dudley also speaking today. constellation brands and container store out as well. >> that's a lot of fed speak. let's take a look at today's other top stories. the national hurricane center issued a hurricane warning for the central bahamas as wind speeds reach 70 miles per hour.
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it's sending a team of investigators to the storm which is expected to reach hurricane status in a few hours. >> president vladimir putin has been granted approval to use military abroad including syria. but they said it only relates to the air force and not troops. >> emerging markets should prepare for an increase in corporate failures as advanced economies normalize monetary policy. that's the stark warning from the imf which says indebted companies and em nations are likely to struggle significantly from high borrowing costs. you want to stay tuned to cnbc. our colleagues will be speaking exclusively to imf managing director christine lagarde later on. that's coming your way at 17:10
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cet. >> problems at uber. two executives go on trial in france. >> aan electric atmosphere in california as elon musk delivers the first model x but can tesla continue to charge ahead? >> and we check in on a very sticky situation involving some oklahoma police officers and a swarm of honey bees.
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some m&a news to tell you about, japan tobacco will pay $5 billion in cash for natural american spirit tobacco business outside of the us. it includes trademarks and subsidiaries in japan and jurors. this deal is expected to close in early 2016. we did see japan tobacco shares falling during the asian trading
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session today in retaction to this news because people think $5 billion in cash they may have overpaid. >> axle springer has a controlling stake in business insider. the operation will allow them to expand digital offerings in english speaking countries and the ceo of that firm will be live on squawk box us. >> ab inbev is seeking up to $70 billion to support the take over of sab miller. the world's largest brewer turned to at least 11 of the core relationship banks to request the debt will underwritten but we did see shares tumbling some 14% over the past three months. now let's talk about a debut a long time in the making. tesla has finally delivered it's second production vehicle.
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the model x electric cross over suv at a launch event in california. ceo elon musk estimating that 25,000 customers preordered the model x and it will take some maybe 8 to 12 months for those ordering now to get their hands on one. phil took a closer look at the newest edition to tesla's fleet. >> after a lot of anticipation, here it is. the model x. two things stand out. the first thing you'll hear a lot of talk about, the falcon wing doors for the second row. a lot of people will say what if you have a low garage ceiling or you're parked next to another car, the there are ultrasonic senators built into the door panels which will tell the doors whether or not there's enough room to open up and how high they can move up. the other thing that will stand out, the panoramic windshield.
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this windshield when you are inside the car and you're driving it's unlike what we usual hi see when we're behind the wheel. it gives you a much fuller view of not only the road but the outside surroundings. the electric suv, the model x, the first five have been delivered here just outside the tesla headquaters in northern california. the starting price for these models, $132,000. tesla model x, the first one versus been delivered and now the challenge is ramping up production through the 4th quarter and into 2016. >> still to come on the program, can googles new smart phone take a bite out of apple's market share. we'll break down google's new products. that comes your way next.
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google launched two new phones and a chromecast audio device. yesterday's announcement was the first time investors publicly heard from google's new ceo. josh lipton filed this report. >> he was on stage in san francisco introducing two new top of the line smartphones to show off android's latest features. >> what we do every year is try to push the state of the art and push the next generation of computing forward and to do that we build hardware.
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the reason we build hardware is so we can work together as we build the next version of the operating system we build the hardware along with our ecosystem partners so they can guide it forward. >> it will be built by lg and boast a 5.2 inch display. it's quick to charge with a better battery. the price $379. it's available for preorder on the google store. in the u.s., the u.k., ireland, japan and korea. there's also the new nexus 6p featuring a 5.7 inch display. latest and most powerful processor. better camera, the price there, $499. now they're not mass market hits in the way that samsung and apple smartphones are. fortunately for google they don't need to be because it's core business remains advertising. the companies point is to have a way to show case the latest android software and google services and now they have that with the new 5x and 6p.
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>> inside sales.com is a cloud based sales acceleration platform that uses big data to help sales people identify and close deals. the company is currently valued at over $1.5 billion and recently closed funding rounds from microsoft and sales force. joining us now is the ceo of inside sales.com. pleasure to are have you around. how exactly does your technology work? do i get this right when i think that many of your companies and customers they come to you and ask you so which is most likely going to close the deal and you tell them based on the data it's x, y, z? >> right. it's big data and predictive analytics so you've seen there's lots of buzz. five years, lots of buzz about big data. the next stage about big data, it's like what do we do about this big day? that's what predictive analytics does. it analyzes 100,000 sales.
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as those sales people do stuff we observe the results of that and then we're able to make best practices and recommendations based off of that. it's a work flow platform that you'll see. but more importantly you'll see a 30% uplift in revenue and that could be as quick as frankly, 90 days. >> 30% uplift. >> those are crazy numbers but we see it customer after customer. >> so i would think if this was so promising everyone would want to be in this gail. who is your biggest competitor? >> it's the predictive space. you see companies like ibm doing thing with watson and microsoft though they're an investor. it's the wild west of predictive analytics and it's a very fluid market but right now we're growing as quickly as we can. we have over 120% annual growth. we're hiring anywhere from 10 to
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100 people every month. we have presence here in the u. k. we have an office in dublin and switzerland. frankly, you can see predictive analytics is the next phase of enterprise software. >> you also raise a lot of money. you're hiring 100 people a month and it's interesting that when you started the company in 2004 in utah, you actually didn't raise any money. you only took what, 10 to 20,000 from your mother-in-law. >> yes, from my mother-in-law. >> she gets her money back with dividends. >> yeah, turns out we have board meetings and she is always smiling. >> how much more money do you think you're going to raise. >> it's all about the customers, we're trying to grow as quickly as we can. the reason we're in the u. k. and europe is our customers demanded, they have global sales force. as we continue to grow and there's opportunity to help support this market you'll see it potentially raise more money.
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>> well, you're north of billion dollars valuation. so the question has to be about the timing of an ipo a listing. >> an ipo is a funding event. our goal is to drive value for customers. if it makes sense to provide liquidity to investors we'll do that in the process but that's not my goal. my goal is to build a company that drives value. that helps our customers be suck sa se -- successful. as long as companies provide value based off of generating productive i think companies will grow. some of these younicorns if they're based off of user counts or page views there's a lot of risk there. >> are you saying this is like the 2000 dot com bubble? >> enterprise companies. think about it.
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we have long contracts and 3 to 5 year customer contracts that our customers are delighted with. those companies aren't going to see as much risk as the consumer-based really view based valuation. >> when you do ipo we still want to talk to you even if that's not or your mind right now. thank you for that. ceo at inside sales.com. still to come on the program. she's a reality teal listed by forbes the top 30 under 30 mover and shaker and we'll speak to her next. want bladder leak underwear that moves like you do?
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the pain might not be over as data suggests and today is historically the worst day of the year for u. s. equity markets. >> another midnight deadline for congress. lawmakers look to improve a spending plan before the close of play today as republicans reportedly discuss a two year budget deal with the president. >> prepare for corporate failures. the imf warns that emerging
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economies need to brace for the debt market consequences of raising rates. cnbc speaks exclusively to managing director christine lagarde. >> the hardest car in the world to build says tesla ceo elon musk as he launches the model x which investors hope can help him turn the corner. >> midweek but final trading day of the month of the quarter. thank you for joining us. we have the implied open telling us that the s&p 500 we're up some 20 points above fair value. meantime the dow jones industrials seeing the volatile session yesterday with the 177 point trading range. looks like we are up some triple digits. maybe up 180 points above fair value and the tech heavy nasdaq should be seeing gains of 54
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points or so. here's a good lead from the european markets. look at the green on the screen. some explosive gains today as we are heading for our worst quarter out here since the 3rd quarter of 2011. that's when the sovereign debt crisis took place. where else but right here in europe. take a look at the ftse 100. also seeing good gains today. lifting 2.3 and cac 40 up 2.5% and what trends are investors looking to capitalize on going forward? we have been asking market experts throughout the morning. this is what they have been telling us. >> we have seen such a horrible quarter and you've seen such big flows comings out of equities. we are setting ourselves up to finding a bottom if there isn't an unexpected shock coming from
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out side of that. >> if apple or google are serious about getting production of cars, a small part of their cash pile would buy volkswagen today. it's a really interesting point in terms of the pricing. at this point in time. >> i can see that now turn and that's going to have a major impact on bond markets as well. >> u.s. home prices continue to rise in july up 5% according to the s&p case shiller home price index. it has grown since september 2012.
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>> our next guest has raised some $45 million in venture capital funding for her real estate invest ment company and was named in the 4th annual 30 under 30 list which recognizes the brightest minds across a range of different fields. joining us is the founder and ceo of realty mogul.com. first of all, congratulations. we were just talking about the housing market in the u.s. telling us that we have seen a steady advance for home pricing continuing this year. you tell me, how do you see things right now in u.s. real estate? >> we have continued to see appreciation in u.s. real estate and i think that we'll continue to see it for sometime. real estate continues to go up in today's market. >> you oversee what, half a billion dollars in real estate across the top 25 u.s. housing markets are there good deals out
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there still? revolutionary idea. crowd funding. that's very new in the real estate space. how did you come up with that idea specifically and is it really catching on? >> so i grew up in a real estate family and learned real estate around the dinner table and always wanted to provide access to more investors and crowd funding was the perfect way to do that. you can give access to tens of thousands of investors online and make it as easy to buy stocks or bonds online and it's catching on. >> does it bother you sometimes that you're getting a lot of attention because you're a woman and included on the 30 under 30 on the forbes list. does it make a difference to you what gender you are?
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do you like that sort of attention. >> gender never really mattered to me. it's always about out hustling and out executing but attention is a great thing when you're trying to build a brand. we've always been trying to build a brand and our mission is be omipresent and build the brand in anyway shape or form we can. >> i don't think gender should ever matter. let me ask you, let's get back to the theme, the mobile home parks fund you're starting up. is that housing? >> it is housing. you have individuals living in mobile home parks. in the united states over 20 million americans live in mobile home parks today. >> but isn't there a stigma attached to that because some people see that as maybe, low class. would you want to live in a mobile home? >> so for us it's less about living in a mobile home and more about investing in mobile home
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parks. providing people a safe comfortable place to live and generating income off of the cash flow from the rents those individuals are paying. it depends on how people want to live. many people are perfectly happy in mobile home parks and other people may want apartment buildings or single family homes. >> what's the average return for the investments you put out there. >> it ranges widely. if you're looking at a higher risk investment a higher return. >> give me a couple of numbers here. >> could be anywhere from 7 or 8% all the way up to 18 to 20%. >> that's not too bad given that we're in a low interest rate environment. thank you so much for your time this morning. >> okay. let's take a look at some of today's other top stories as well. the u.s. senate will vote at 10:00 a.m. eastern time on the bill to fund the federal government through to december 11th. so the stop gap measure which
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does not go after planned parenthood is expected to pass with a simple majority and then goes to the house which is expected to pass it by the end of the day and that avoids a government shutdown at midnight tonight. republican leaders in congress also opened up discussions with u. s. president barrack obama on a possible two year budget deal. so the wall street journal says that the gop wants to avoid repeated fiscal crises and a spending fight in the middle of an election year. it's unclear whether kevin mccarthy will even take part in these discussions. but speaking to cnbc yesterday mccarthy did continue to voice his opposition to including funding for planned parenthood in this stop gap spending bill. >> i don't believe in having tax dollars going to planned parenthood on what they're doing. i believe this bill will move forward but we're going to set up a select committee because we want to get to the bottom of this. just like with benghazi. it might not happen overnight
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but in the end the truth will come out and we will win. >> here's a sticky story. a police kuzcruiser in oklahomat itself in a sticky situation when honey bees were all over it. the sheriff's deputy took the video while strapped inside. some motorists reported running into bees as far as half a mile away. how long were they trapped in there for? >> i would call in winnie the pooh in this situation. we're going to go to break here but still to come, a changing of the guard at ralph lauren as he brings in new leadership to run his name sake company. before earning enough cash back from bank of america to take their act to the next level... before earning 1% cash back everywhere, every time... 2% back at the grocery store... and 3% back on gas...
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vince of the flying branzinos got a bankamericard cash rewards credit card, because he may earn his living jumping through hoops, but he'd rather not earn cash back that way. that's the spectacle of rewarding connections. apply online or at a bank of america near you.
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final day of the quarter and we're going for the worst quarter since 2011 for u.s. markets and one of the worst performers when it comes to sector performers is s&p energy. so far we're down some 23% or so. we're looking at five straight quarterly declines for energy and i guess that kind of makes sense since we have seen energy pricing really half of the levels just this year alone, 2015. >> yeah, are we calling the
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bottom here or not? no one wants to take that risk do they? anyways meet the new boss at ralph lauren. the fashion industry sees one of its legendary figures decide to step aside. let's get out to landon dowdy. >> ralph lauren that built a fashion power house based on luxury designs is stepping down as ceo of his namesake company in november. he founded in company in 1967 named the head of gap's old navy division to the top job. lauren will stay on as executive chairman and head of the design team. larson will report to him. lauren's empire includes more than 20 brands. his iconic polo shirt debuted in 1972 becoming a signature item for the company. it is expanding it's luxury and online business. revenue fell 5%. the stock is down about 40% this
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year. larson is credited with reviving sales at old navy. sales of the division rose 8% last year. he previously spent 15 years at h&m where he was global head of sales. he leaves his role at old navy on friday. he's being replaced by jill stanton on an interim basis. the search for a new president is already underway and this is just the latest changing of the guard at a big american fashion house. in june donna karen stepped down as chief designer of the company she co-founded in 1984. oscar de la renta turned over the reigns before he died. and today in europe it's up 3% while gap is up more than 1%. carolyn back over to you. >> thank you for that. moving on, two uber executives accused of criminal allegations go on trial today. the case comes after the french government passed a law banning the uber service in the nation.
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let's get out to stefen. >> well, the trial today is a result of an official inquiry from last year. it's not related to the main uber taxi service. it was made illegal last year. they refused to suspend the service in france arguing that they were against the enterprise. today two managers are facing trial in the building behind me. the head of uber france, they are on several charges including complicity of operating an illegal taxi service, and the use of personal data without the con sen of the french privacy watchdog. in theory he could face up to 2 years in jail but in practical materials they're more likely to get a financial penalty and in
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the worst case scenario for them a suspended jail sentence. >> we know that they're facing many issues in the countries they're operating in but would you say france is probably the most tricky one to operate in for the company. >> that's not their view. i spoke to them about the french situation despite the trial they still believe there's legal frame for private drivers in this country and it's not the case in some european countries like spain for instance. could they face a total ban? it's very unlikely because they have the public opinion on their side. you just have to travel to paris once to realize that there are not enough official taxis, especially on weekends and for that reason the public opinion is more in favor of uber thabn n
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the official taxi drivers. >> head to cnbc.com and read more about the legal head winds in france and the u.k. >> u.s. futures pointing to a higher open as congress faces a deadline to pass a spending plan. putin gets a approval for air force action in sir wra and tesla delivers the first of its much anticipated model x suv.
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welcome back. quick check of european markets. it's the final trading day of the quarter and the month. we are on track for the worst quarter for european equities since 2011 but today we're higher. the ftse 100 is bouncing back. similar percentage gains for the
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xetra dax and cac 40. many auto makers doing well because of tax cuts in chinaful we also have a similar theme for the u.s. as well. worst quarter since 2011 since the third quarter of 2011. we have u.s. markets and the futures imlying a higher open. so the s&p 500 should be seeing gains of 25 points. as it stands we're above fair value. so we should open up triple digits. >> the chairman of the passenger car is con fireworks den that the company can fix some of the things involved in the emissions scandal. he said the main focus now was to restore trust. >> our main focus is really other customers. we have to fix the problems with the customers and the citizens i would say. we made some mistakes. we are really sorry about and we
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are concerned and we will do the upmost to solve the problems and make sure that those problems cannot happen again. >> yes it took awhile but tesla finally delivered it's second production vehicle. the cross over model s. a luxury suv and it tack place at a launch event in california. elon musk estimating 25,000 customers preordered them. the newest edition to tesla's fleet. >> well after a lot of anticipation. here it is. tesla's second mass market model, the model x. two things stand out about this electric suv. the first thing you'll hear talk about the falcon wing doors for the second row. a lot of people will say well what if you got a low garage ceiling or you're parked next to another car. what happens when the doors try
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to open up? there's ultrasonic sensors built into the door panels that will tell the doors whether or not there's enough room to move up and how high. the other thing that will stand out, the panoramic windshield. this windshield is unlike what we usually see behind the wheel. it gives you a fuller view of the road and the out side surroundings. the first five have been delivered here. the starting price for these models $132,000. tesla model x, the first ones have been delivered. now the challenge, ramping up production through the third quarter and into 2016. >> let's get out to greg erwin. we know the numbers for the model s. we know it's market share numbers. do you think it's easy to extrapolate that to the model x?
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is it wise to do that? >> you know i think over the course of the next several quarters it's quite likely that tesla had achieve a similar market share in the model x in the same category. the s, there's 300,000 vehicles in the sedan market they compete with. in the suv market it's a 70,000 unit market. so if they he translate that it means they're looking at something like 60,000 units as a run rate up from just the s today doing about 24 or 25 in the u. s. >> wouldn't be so bad. price tag is 142,000. do you think that was sensible pricing? >> that's the signature addition. that's the most heavily optioned vehicle you can possibly buy. this was something they did when
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they laufsh they launched the model s. they give the most exciting, most interesting vehicles. this makes absolute sense that buyers at the front of the line, those that waited almost three years to get these vehicles so yes that pricing strategy does make sense. >> yeah because that prototype rolled out in 2012. so it took awhile to finally get their hands on one. but do you think this changes this dynamic for tesla? >> no, i don't think it changes the dynamic. the future of the company is still can they cut the cost of the drive train in half? this is something that i talked about multiple times. i'm a believer. i think they can and there's lots of other people out there in that crowd with me. >> yeah, well let me just talk to you about the stock price. i know you can specifically recommend or discuss it particularly but we're way off of 52 week highs.
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for you, you're, would you be putting money in tesla's stock. >> there's a lot of volatility right now. there's oil and adjustments attornto earnings forecasts. if people believe the x is going to drive a much larger market they're most likely to come out constructive. that's probably the easiest way for me to answer your question. >> that's a way to avoid my question as well. but it's okay. i'll forgive you because you got up so early for us. senior research analyst at roth capital. i'm excited about the model x. we're getting rave reviews on it. it meets expectations and i like the bioweapon defense button. he says the button is real. >> i still don't know why you need that. we put out a twitter question before with the demise of the diesel cars are you going to be more inclined to buy an electric
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car? some people said one doesn't have anything to do with the other. others have said well infrastructure to support is the big question. how would the cost change if the masses shift. so the price is a really, really big one. tesla needs to be cheaper and smaller for every day folks. he adds ford did not build it's empire on luxury cars. good point there. >> but when ford built the cars, there weren't many other car manufacturers back then. >> that's a good point too. >> it was horse and cart. it's a differ world but it's awesome. i love those doors. >> those look amazing. >> reminds me of back to the future. >> that's it for today's show. >> u.s. squawk box comes your way next. i'm jerry bell the second.
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and i'm jerry bell the third. i'm like a big bear and he's my little cub. this little guy is non-stop. he's always hanging out with his friends. you've got to be prepared to sit at the edge of your seat and be ready to get up. there's no "deep couch sitting." it's definitely not good for my back. this is the part i really don't like right here. (doorbell) what's that? a package! it's a swiffer wetjet. it almost feels like it's moving itself. this is kind of fun. that comes from my floor? eww! this is deep couch sitting. deep couch sitting!
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good morning, u.s. stock futures jumping right now on this final trading session of september but before you get too excited don't forget october is historically a scary one for the markets. also a county down to a potential shutdown and signed, sealed and delivered. new this morning, tesla boss elon musk handing over the first keys to the highly anticipated model x. it's september 20th, 2015. squawk box begins right now.
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♪ >> live from new york where business never sleeps, this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc, first in business worldwide. i'm becky quick with andrew ross sorkin and brian sullivan in for joe today. the east coast is bracing for very wet weather today. many areas already hit with pretty wet area. flood watches are issued from maine to the smoky mountains. things could get worse. earlier this morning, it officially strengthened into a hurricane. the storms path is hard to predict at this point but the southeast or northeast u.s. could be in the path. forecasters say the storm will be a big rain maker this weekend.

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