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tv   Squawk Box  CNBC  November 16, 2015 6:00am-9:01am EST

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this all raises questions about what will happen next from the fed. that may be part of the reason you're seeing all of this today. miracerciracle merkel being the we will talk more about the markets and all of these issues. we are now approaching noon in leader. her domestic position is weaker, france. we've been waiting to see what how is she going to deal with happens. there's going to be a moment of that? will she still be able to provide the same leadership? silence that's observed and we're going to observe that here as well. take a look at some of the over here it will have political impact as well, but both on the pictures. you see the french president. immigration debate and on the debate about secretary clinton's francois hollande. record. i think more has political implicatio implications. >> wilbur will be with us the rest of the hour. >> washington to talk about how friday's attack in the fight against isis are playing out on the presidential campaign trail. later our political newsmaker of the morning, republican presidential hopeful and leading the polls right now, donald trump will join us live at 8:00 eastern. stay tuned, you're watching "squawk box" on cnbc. ♪
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[ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] ♪ my mom makes hospitals you can hold in your hand. ♪ my mom can print amazing things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] ♪ my mom works at ge. ♪
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i built my business with passion. my mom works at ge. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands again, that is the moment of silence in paris. of dollars each year going back into my business... american markets will have more this morning. the nyse and the nasdaq both that's huge for my bottom line. announcing plans for a moment of what's in your wallet? silence at 9:25 eastern time. >> it's hard to go from that to some business news. we do have a deal just announced literally within the past minute. it's a big one. marriott international is acquiring starwood for close to $12.2 billion. this is a big deal. a lot of people had expected a transaction to occur with star
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wood. it was in play. a number of chinese were considered the acquirer. for marriott to come out of nowhere, it's a big transaction. let me give you the details for shareholders looking to be under the terms of the transaction. marriott will be paying or starwood shareholders will receive .92 shares of marriott international and $2 cash. bob dylan. to improve my language skills, in total we can tell you this represents about $72.08 per i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. starwood share. that's if you look at it over a my analysis shows your major themes are that time passes. 20-day period. if you look though you'll see and love fades. that stock is now down in the that sounds about right. free market. i have never known love. the nasdaq is marginally up in maybe we should write a song together. i can sing. part we should just say this you can sing? do be bop. be bop do. stock had moved a lot prior to do be do be do. this. >> that's weird. if you're getting one share of do do do be do. marriott is 72.74 which is wh$7 where it closed. we don't know where it's going to open. $2 on top of that would get you
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to $74.74. >> right. let me throw one other piece at you. there's something called vistina which will be disposed of which is worth $7.80. in total, $79.88 is what the world leaders are meeting in turkey today for the g-20 company is saying the value of summit. shifting agendas obviously given the transaction. what happened. >> so that's why the stock is. president obama and russian president vladimir putin talked it's at $12.6 billion. on the sidelines of that buying it for 12.2. gathering for more than 30 getting rid of what you just minutes yesterday. said. >> exactly. syria was among the topics being marriott expects to deliver at discussed. the french airstrikes on isis least $200 million. they say annual savings as a overnight were carried out in result of this transaction. it will make this a much larger coordination with u.s. forces and president obama is urging firm combined. more allies to get on board. they will have 1.1 million rooms and more than 5500 hotels. >> the killing of innocent people based on a twisted >> on october 27th, andrew, it had closed the day before at 67. ideology is an attack not just on france, not just on turkey it was up 7 or $8 whenever that but it's an attack on the was. so it took a huge jump. it was trading around looked like 68 or so for a month. civilized world. >> and john harwood joins us
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from the white house lawn with then it went all the way up to the latest. 70. good morning, john. then be the next day it went up to 82. >> reporter: morning, joe. you know, you mentioned shifting agendas at the g-20 meeting. the question is, does it cause a shift in strategy. the early indications from the white house are that it will not. ben rhodes, the deputy national security adviser, told reporters yesterday in turkey that u.s. troops are not the answer to this question. they've indicated that the same basic strategy they're using, special operations, airstrikes on isis in both iraq and syria, trying to partner with local forces, especially sunni tribes on the ground, the kurds on the ground, that that's the fundamental nature of the strategy, trying to get more arab allies involved in the fight. that's where they're going. and he met with vladimir putin, one of the key aspects of their discussion is what did we do >> the latest there russia. about syria long term? . the administration, of course, is pushing for some sort of we're here at the plaza of the republic. political process that will result in bashar al assad
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this is serving as the central point for all parisians here. leaving power in syria. vladimir putin has been opposed to that. he's been trying to defend assad. that's the fundamental problem. you have that playing out where on the campaign trail at home increased pressure for action from the republican candidates, but they are also bound just like the administration is, guys, by the reluctance of the american people to commit ground troops. so, for example, marco rubio, the senator from florida, who is one of the leading republican candidates yesterday was talking about a moreau bust approach but was asked, do you support sending, for example, 10,000 ground troops. he said, i wouldn't put a number on it. that's the vice grip that political leaders both on the left and right face. pressure for action but awareness of the fact that the american people do not want another war in the middle east. and how that gets resolved is the key question over the next several weeks. >> a lot of chatter that we're
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hearing also, john, about deposed dictators and what happened, and you just go down the list. take your pick. even egypt, supposedly, was in much better shape with mubarak. which makes you wonder whether the notion that you have to -- it's a prerequisite of getting rid of assad before you do anything, you wonder whether the -- you wonder whether that starts the change, that notion, and that, you know, you may be -- >> reporter: it's a great point, joe, because, you know, the question is when you pull the top off of a society by taking a strong man out of the equation, what bubbles up from there? >> libya. >> well, libya. iraq. >> iraq. >> egypt as you mentioned. that's -- that's the set of problems that american political leaders are more conscious of than they've been in the past. regime change has been a very popular approach, and we saw,
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you know, bernie sanders in the democratic debate over the weekend saying, hey, i may be a little bit more conservative or a little more cautious than hillary clinton on that. i'm not sure regime change is always such a great idea. >> right. you start to wonder whether a strong man, whether it's putin or assad in terms of isis, you start wondering -- starting to think maybe that looks pretty good at some point, you know? someone with an iron fist like that to crush. maybe we don't have the -- you know, we're not over there. obviously we're an ocean away. maybe that's not a ridiculous notion, john. >> reporter: well, the question constitutes what constitutes crushing them. vladimir putin has a downed airliner to deal with. he's been making a show of going into syria. some people think that he has been trying to take out groups that are opposed to isis that are also opposed to assad. you know, how that gets resolved and how those competing
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pressures get resolved is what we're going to be watching over the next few weeks. >> john, do you think these attacks change the debate around? we were talking about encryption and security and sort of a post edward snowden world where everybody decided, especially u.s. companies like apple, decided to encrypt everything. obviously the government -- the u.s. government was against a lot of these moves and measures, but that was coming in part because of the public sentiment on both sides of this. do you think that changes both here and abroad? >> reporter: i absolutely think it changes, andrew. i think this is a case where now because of the fear of the american people it is much easier for the government to say, hey, wait a minute, there are tools that we need to keep us safe and the argument from the snowdens of the world and people like rand paul in the political realm, that, well, paris is just so, so beautiful. >> right. you're infringing on our liberties. >> okay. those arguments, however valid they are in substance, become michelle, thanks. less resonant in a moment like
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>> our panel is chairman w. this. >> yeah. >> we certainly saw that -- have seen that in the republican ross. and covering oil. debate over the weekend. cnbc contributor, john kildoff. >> and then theournal writes even if isis is completely again, not sure, wilbur, how to destroyed, islamic extremism will not go away. interpret the moves in europe. if anything, the destruction would increase the religious very muted. fervor of those in europe who i kind of understand the move long for a caliphate. here because this is one of the it's just -- i don't know. things that maybe puts the fed that's just the options are, you know, they're bad options and on hold. thursday and friday down 450 then worse options. points and we talked about try to work through it. friday, 4 1/2 weeks is a long anyway, john, thank you. way off. appreciate it. coming up when we return, a lot can happen. the military options for fighting isis. i was thinking about market breaks and percent. retired army colonel jack if the market broke they weren't thinking of something like this. >> it's always in the back of someone's mind. >> well, it is. jacobs. we'll join glen hutchins. i don't think this will provoke donald trump will join us live a 10% market crack. at 8:00 eastern time. if we hadn't already had the we'll talk about paris and a lot more. tragedy of 9/11, the russian stay tuned. "squawk" returns in just a moment. (exec 1) well, directv beat us in customer satisfaction airliner going down, beirut, now
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par paris, after a while there was an incremental effect. >> >> if there had been an attack and the market had gone down 10%, that might have been related. at this point given that we know europe is going qe while we're supposedly going the other way. we already know 107 we know were worrying about. it looks like this will cost some slowdown. it makes qe more paramount. they will follow through with the move in december. maybe they still do. >> no, i think you're probably right. they seem to have been looking for one reason or another to hide behind and not have an increase.
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>> kathy, 107 at this point. you don't expect it to be to parity immediately. it certainly seems like it fits in more of a down trend given that there will be a safety to u.s. dollar. the yields will go down here. >> you're absolutely right. what's interesting is we haven't again for the 15th year in a row. seen as much of a decline in the but we have a plan. euro as you would normally (exec 2) when our customers are on hold, expect after such a big crisis let's up their satisfaction with some new hold music. and tragedy. the markets and the people prove ♪ that terrorism doesn't, you know, provide too much of a (exec 2) that's glenn from the mailroom. he djs on the weekends. scare or a long-lasting impact (exec 3) sorry, who is it? (exec 2) it's glenn, from the mailroom. on the human psyche as well as he dj'ed bill's wedding. the markets. (exec 3) he what? overall i think everyone proves (exec 2) he goes by dj glenn, he works way downstairs. to be much more resilient. we saw that with the january (exec 3) what'd he say? (exec 2) glenn, from the mailroom! attacks. we saw that with the july 2005 (vo) get rid of cable. and upgrade to directv. london bombings where the impact call 1-800-directv. even in july 2005 which is a more broader act of terror only had a four-day impact on the markets. so i think, you know, not to say
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that the market is, you know, trying to ride this out and see how -- whether or not it happens again, overall i think, you know, they're looking at possible ecb qe. they're looking at -- basically much more resilient. >> again, it's like circular. if this removes the fed from the december decision, that's why the euro already got down to 107 before any of this happened, because the fed was going to raise in december. they're not going to raise in december, maybe that's why the euro doesn't go down further even on something like that. >> that could be a reason, but i think the tragedy is so recent that the federal reserve is still watching how the markets react and want to see if the ecb comes through with a powerful amount of qe. if they do, perhaps there isn't that crash that you see in the markets. france obviously economically is going to be hurt significantly by this, but if we had a december payrolls, it's still very strong. this he could push through the case. and i think the language you're hearing from the federal reserve is they haven't quite made the
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decision themselves yet. >> japan's had two straight quarters of contraction in their economy as well. beknew that there were multi-speed economies. the last thing they want to do is have to come back and then lower rates again at some point. welcome back, everyone. i don't know. >> that's certainly the thinking the latest from france this of the markets right now but i morning. think we'll just have to see how as part of what the country is calling the war on terrorism. the european markets perform. authorities are expanding an >> can i just ask you guys real international manhunt looking quick. we'll have a lot of security for potential accomplices. intelligence people in a little bit. there is a sense historically these have been sort of one off france launching massive events where they happen and for airstrikes. it was carried out in several years nothing happens. that's where the market seems to coordination with u.s. forces. be pricing today. having said that, and maybe this joining us is jack jacobs. is kind of different and you colonel, thank you for being here today. >> my pleasure. just don't know, but invariably >> what happens next? a lot of intelligence people say >> very little. this time is different. >> it didn't happen. i think more of the same what >> the question is how do you we've seen before targeting price that? >> the russian airliner wasn't a year after the russian airliner various places where we have some intelligence but these are was brought down. it was only two weeks. all tactical strikes. >> right. there's no strategic plan or but if it is different already, even a strategic objective. how do you -- again, which is -- nothing basically. is there a topic beyond that and >> this proves that isis is not
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how do you figure that out? going to be held in this region, >> figure in a response. in this area, it proves that i was waiting for the russians it's very dangerous for any to go nuts over the airliner if western nation to sit back and it was linked to isis. say, okay, we'll just let this we haven't gotten anything like that. for oil i can tell you this. what i'm watching now, around ride out. the market over the weekend, does this sort of end the saudi >> we think they're very punishment of russia and some of dangerous. the others in the region because they come together over this to strike a solution for syria? the saudis were punishing russia what isis is looking for is the in iran because they were backing assad. caliphate and they've said it if that ends, if they all come together and cut a deal, this could end the saudi themselves. they want territory very much overproduction to a degree, different than al qaeda. maybe have them all come they want to control all that together and rein in production. that's what i'm watching on that territory. it's an apocalyptic view of front. >> i think that's a very unlikely event. islam, and they're not going to if we make a deal on syria now, be deterred. we're negotiating totally out of >> when you say nothing is happening in terms of what we're going to do to them -- weakness rather than out of strength. >> that's right. >> -- my question selfishly is that's about the worst time to try to make a deal. what they're going to do to us. >> you look at the situation and i know you're not an >> oh, there are plenty of plans to do the kinds of things that intelligence officer. >> no. >> would you look at this and you saw in france in lots of other places including here. >> and their ability to do that say this is different or say, right now? >> well, it's -- it's the same
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look, i have to see how they've gone historically. as it was in france. i don't know if this is a one i mean, there's no way that off but maybe this is a you're going to possibly be able different situation. to control in an open society >> maybe. there were reports over the weekend of tens of thousands of the kinds of things that you see in france. tweets trying to encourage there's a little bit of a russian nationals to rebel against the government. difference here, and that is that in europe, and particularly in france and belgium, there's i don't know how much will follow through. it's not inconceivable that you no mobility whatsoever. will have some short-term follow there's no integration of people into the economy. and here you've got an open through. >> isis at this point seems like society which is difficult to it's become a much bigger war in control in terms of security. the last couple of days. but it's very, very good for -- >> yeah. >> you know what you're hearing, it's that putin with the idea of because it doesn't isolate propping up assad at this point people like people are isolated in europe. and doing that first to try and get rid of isis before you get so disaffection is high in rid of assad. we're going to have to consider that. did you see there was a shot of france and belgium, unemployment the president and putin and they looked like they're in deep is enormous particularly among the arabs. >> with all of this going on, conversation. >> deep conversation taken aside how can containment be an at the g-20 meeting. >> unlike the allies. intelligent strategy that >> quick allies after something apparently is president obama's strategy? >> no, it's not an intelligent like this happens.
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common enemies. >> andrew, i just want to add, i strategy as we've just discussed. i mean, their objective is to think the trade is quite clear take over large swaths of the in the euro. the situation has gotten only areas in the other hemisphere more dire for the eurozone. i think euro dollar lower as and to that end are going to well as euro sterling heading lower is two very clean attack everybody. >> but to this point we've been opportunities for anyone who's actually looking to take able to say, it's not our advantage or, you know, transact backyard. >> we're not worried about it. we're an ocean away, we're big, we're tough, we can defend on these moves. ourselves and so on, but that >> scary in hearing that there doesn't matter to these people. are, you know, chatter about >> you can stop 19 out of 20 of the attacks, then the one is other, you know, attacks. just horrific, right? >> well, you can't stop them >> one response, joe, apparently the french are taking out some all. >> no. >> i mean, i'll be surprised -- we already know that there are of the ois sis oil sale. plenty of plans afoot, plots they hit the black market oil being hatched. that they sell to generate the people get arrested all the time in this country. hard currency to pay for the >> but you said it's true, the french nationals visit syria, miscreants that run around and the other things that they do. they just come back. a lot of things are hanging in hey, i'm french. >> they have a real problem in the balance here in terms of they're only 30 miles from europe also that we don't have, baghdad, isis. so, you know, it's going to be a excuse me, they've got open very tumultuous time and to the borders. once you set foot in europe, extent they get more desperate you're in and you can go from to your question, andrew, is one place to another with what do they do sort of impunity.
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that's not the case. >> would you advocate changing asymmetrically to assets and that policy? >> well, i was always -- i was in the banking business when infrastructure everywhere. >> you wonder about issues as they decided they were going to go to the euro. >> yeah. >> i was astonished that they well. >> we've talked about the thought that they were going to political implications of angela have a bunch of separate merkel who has been out there countries and one currency. it didn't make any sense. with the security issue, and it really didn't make any migration issue, what happens. sense to have european >> france would not say go ahead and ramp up the homeland stuff integration. >> if you close the borders politically, what happens? >> well, i think there's -- that's a labor intensive thing if butch did it. >> it's much more complicated as to do. but i think what happens inside europe is that there's an michelle brought up. for 30 years they've had open increase in domestic security if borders. you close the -- they're already >> so is the encryption closing the borders in some apparently being used by these guys which you know probably. countries. actually erecting fences to >> we'll talk a lot about. prevent syrian refugees from >> you can go to the companies that provide the encryption and coming in. >> i mean, the next elections they're not telling you how to are going to be -- the ukip and break the code. it's crazy. farras and lapen, they already >> okay. thanks, guys. had movement. appreciate it. talking about a very >> huge. difficult topic. we're going to continue talking i don't know if these guys are about a difficult topic. much more on the wall of worry going to win. >> there you only need 30%, for the global markets following the deadly attackness paris. right? they're always cobbling stuff plus, a big deal in the together. >> and there's a huge hotel world. polarization of society inside marriott officially buying
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europe. all that's going to do is starwood for $12.2 billion in separate the people who are cash and stock. disaffected more from the people marriott ceo arne sorenson going who -- with whom they would otherwise integrate. so it's going to be nothing to come there and talk all about that deal as well. but -- >> you know what i said earlier, we're back in just a moment. i was reading them saying you crush isis, it might work, but then everybody's even -- there are still islamic extremists more angry and more emboldened and more fervent for the caliphate. >> here's the more immediate problem. everybody is focusing their attention on destroying isis. identifying targets, blowing them up. these are tactical measures. strategically if you really want to destroy somebody, you have to good. very good. use nuclear weapons. i'm not making this up. you see something moving off the shelves if you're a military person you and your first thought is to investigate the company. know that the only purpose for you are type e*. airstrikes is to assist ground shorten the distance between intuition and action. e*trade. forces in taking and holding terrain. at the end of the day, that's the only thing that's going to work. nobody's going to do that.
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>> no. >> we're not sending troops to take over terrain. >> we're not going to send a nuclear bomb over to isis either. >> exactly. the guys who should be talking about that, who should be doing that, who should be participating, the arab states in the middle east, they don't want to have anything to do with it. you have france dropping bombs on raqqa, the headquarters of isis. where are the saudis? where are the turks? they're the guys with the formidable assets and the interest in the area getting things done. you don't see them doing anything. and as long as there's not going to be a regional force to occupy terrain that's liberated by the dropping of bombs, this business will continue. >> all right. kournl jacobs, thank you very much for joining us today. coming up when we return, europe's response to friday's attacks. former german defense minister will be here. he will join us in studio to talk about the political implications. we're back in a moment. > welcom
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it's gotten squarer. over the years. brighter. bigger. thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. investors taking a flight to safe havens on friday. so far this morning the global response has been fairly muted. you can see the dow futures are
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higher up by about 32 points. s&p futures higher by just over 2 points. the nasdaq up by 10. part of that can be explained by some people becoming more immune to things like this happening and recognizing that this will be a short-term issue. others will say that this is the central bank. if it looks like the fed is no longer going to raise rate, that changes the picture for investors. joining us to talk about it is john sylvia. chief economist from wells fargo. lou breen. lou, what would you say is the reason behind these moves this morning? >> i think as you've said, we've been here before with madrid and london. even recently we've had the russian airliner and things like that. i guess the markets and the people are just resilient in that regard. and unless it actually affects business or if it's repeated, you know, and we have to see how that goes because we have, as has been said on your program, we had the airliner, we had
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beirut and now we've had paris. if this pattern continues maybe you're going to see some people being more cautious and not going out and spending so much. but right now i think it's just a matter of we've been there before. now how does it go from here as also has been mentioned. you know, merkel in germany has been a very big proponent of the immigration and she is kind of having a tenuous position now as chancellor there because of that. does this now take her position and make it a little bit weaker? what does that mean for europe as a whole as well as the schingen agreement. now people are resilient. >> john, that raises good questions about the economic impact and in europe and france. how do you think this through? >> i think it's going to be a stronger dollar. probably less tourism going into
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europe from the united states. so, actually, it could be positive for a lot of tourist destinations in the united states where people stay home. i think it would be of course negative for some of the travel into europe as well, but stronger dollar. probably, again, a little bit of a safe haven with respect to ten-year treasury yield. i would say that the feds' move probably is more dependent on what we get the first week of december for november's employment number than it is the current situation. as was hinted at. this is something ongoing long term. i think the fed will focus more on domestic issues. >> john, if you try and figure box". europe dealing with the aftermath of friday's attacks in out the economic growth or the gdp for europe, would you take paris and karl theodor zu your numbers down based on what happens over the next several guttenberg served as defense minister under chancellor merkel weeks? >> oh, absolutely, becky. and here to make sense of all i think you have to take the this. politically what does this do to numbers down. i think, again, it goes to the angela merkel? core of what people thought of >> she's weaker than she was a
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the european experiment with couple of weeks before when we respect to open borders. sat here together and discussing now you're going to have a little bit less travel. the refugee crisis because now the whole thing is feeding her people are going to become more conservative, a little bit more critics. critics that say you opened the saving, less consumer spending. perhaps a little bit more gates, you didn't set a limit so cautious on trade and remember, where are we now? becky, one of the arguments on at the very moment we see her in this immigrant story was that europe needed immigrant -- turkey at the g-20 summit where >> looks like we're having an she still supposed to be one of the last remaining true leader issue with john's camera. wilbur, you're a major investor of the so-called western world. nevertheless she has to fight at in europe. home. when you start thinking about >> you have this. how this potentially changes the you have the security issue not situation, does it change any of just open borders but encryption your investment strategies? >> i don't think so unless and electronic security and they're follow-ups, unless things of that sort. what happens to her and what they're more in the sequence of happens to europe? >> we have to come to terms events. just one isolated event i think here. will not make of any real big talking about that same, my utu difference. >> it does raise some questions as john brought up, about the open borders, about whether that will work. when you look at the schengen finger pointing in the last couple of years accuse of each agreement, that's 26 european countries. other spying on each other if you go through any of these points, latvia, estonia, the far instead of aligning our forces flung greek islands you have and bring more power -- access to the entire continent >> is that as a result of this
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that everybody comes together or at this point. >> that's true. more finger pointing. it could be an awful follow-up >> we'll see a longer period of finger poining because the on it. i think other than that, you really have to go country by european union does not deserve country. french economy has not been the term union. it's not unified. particularly strong anyway. it's chaos at the moment. >> what about the entire idea of i think this will just compound nato. france says this was a nato their problem. euro skeptics in england. attack and we need our nato brethren. >> that's a very tough call. remember what we have seen during libya crisis where nato proudly said well now we're back in the business. what happened? more or less good number of european, european members backed away. germany was one of them. it comes to the question of bringing in troops to syria, to fining a conclusion on the surveillance and aligning all the intelligence factors, we'll see a couple more slightly or see couple big debates within the member states and that will
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harm the modern institution than strengthen it. >> would you close the borders? >> we have to distinguish here. closing the borders within the european union is absolute nonsense. that would further the disunity we're having right now. closing borders around europe at the borderline of the european union that makes sense to a certain extent. >> at this point though hundreds of thousands of refugees that came in and concerns what happened i can under why france wants to close their borders. >> i under the emotional factor of it but do you think it makes it easier to cooperate? do you think it makes it easier to bring forces together within the european union if you renationalize. it means strengthening the far right. strengthening those who say why
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should we cooperate. what we need is more cooperation here and not going into fragmentation within europe. >> can angela merkel do that? >> angela merkel needs to find a way now actually to get back on top of the surface. >> what does that mean? i one what you want her to do. how does she get there if that's what you think has to happen? >> a couple of things need to be done. she needs to be in the front for a strategy for,000 realign european allies. people are looking at her right now. she needs to be bringing putin and others around one table although they are not nice players to be a part of the solution and she needs one to show the german public willing to set a number and not all refugees are terrorists but we need to look into them more thoroughly. >> if there was god forbid
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another one of these, is there any chance for a european union patriot act, something like that? in other words where all the privacy concerns are put on hold briefly to try to do as much surveillance as you possibly can. >> i don't see a european patriot act because the cultures are two distinct. there might are a german, french, uk patriot act that doesn't make it easier. those things you need to put into adherence and we're back into the quagmire. >> what happens to angela merkel if there's an incident in germany? >> there's always two possibilities. one is that people will rally around flat. how long that holds we've seen in paris 48 hours. they are fighting each other already. an attack at the very moment would not strengthen her position. >> thank you. >> wilbur thank you for coming
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in. coming up, more on the global fight against isis and the implications around the world. and former cia director james woolsey will join us and bob hormats. the future belongs to the fast.
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mourns. france's government launching air strikes on isis in syria, live reports from paris and reaction in global be markets straight ahead. former state department official bob hormats joins us for the hour and we'll talk to former heads of cia and department of homeland security about keeping america safe. >> plus the chairman of north are ireland a board member of the new york fed.
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the next steps by the fed and state of the u.s. economy. second hour of "squawk box" begins right now. >> announcer: live from the beating heart of new york city, this is "squawk box". welcome back to "squawk box," everyone. this is cnbc, first in business worldwide. i'm becky quick along with john kerry and andrew ross sorkin. france launching major air strikes on isis in syria two days after massacres in paris killed 129 people. overnight french police launched more than 150 raids as part of a colossal manhunt. authorities are searching for a 26-year-old man named salah abdeslam. he's described as dangerous and potentially linked to the attacks. michelle caruso-cabrera will join us from paris in just a minute with an update on the manhunt. >> some business news as we've been trying to make sense on
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what's been going on in paris. marriott is buying starwood hotels for $12.2 billion. starwood shareholders will receive $2 per share in cash in marie at clac marriott class a stock and will dispose of another business they have that they suggest will bring that closer to $79. we'll talk about this with marriott's ceo who will join us on the set at 7:30 a.m. >> he's a genius. >> his stock is up a buck and a half. >> that's in part people expected starwood would be acquired by a chinese company. >> right. >> still genius. his stock is up the other is
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down. turning back to the fall out from the terrorist attacks in france here's what we know. death toll stands at 129. there are fears that number can rise because so many people are in critical condition. seven of the attackers are dead. six died from suicide bombs. one was killed by police. there's now a large manhunt across europe. michelle caruso-cabrera joins us now, again, from paris. she's always got a suitcase packed. this was not a great reason to take a trip. but she's there and we knew she would be with an update. michele. >> reporter: thanks, joe. we're here at a very sad place the place de la republique which turned into the center of mourning for parisians because it's a few blocks from the le bataclan theater where so many people died and the restaurants. all day long we've seen hundreds of mourners come and place flowers and candles at the
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statue which is the symbol of liberty and freedom in france. let's get to the manhunt. salah abdeslam is 26 years old. it's not clear exactly what his connection is too the incident that happened over friday night. the french police tweeted out his photo and said they were looking for him and it appears he's made one narrow escape perhaps two. the french police acknowledged he got through a checkpoint, he was stopped but there were no alerts put out for him. there were reports coming out of belgium he had been arrested. those prove to be incorrect. an nbc employee on the ground outside where the raid occurred the mayor spoke with reporters and said that salah abdeslam had escaped the raid. we'll wait to see if we get more details out of that and how close they were to getting to him. syrian air strikes by the french military happened overnight. the military response was quite swift. ten french fighter jets bombed
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the city of raqqa in syria. the self-proclaimed capital of the islamic state and french military said there will be more. in the meantime quite a lot of the evening on streets of paris. the prime minister of the country this morning said that they know that there are more attacks being planned not just in france but also in the rest of europe. i want to show you some video from what happened last night to show you the tension level. here at place de la republique hundreds if not thousands of people there were firecrackers that people mistook for gunfire. there was a stampede, people went running because they were so frightened. we were at notre dame where there was a memorial service going on. police were running. clearly a huge response from the police and the alert level here and the tension level here is very, very high, guys and everybody is waiting to see if they can find this additional person that they believe is connected in some way to the attacks on friday and, of course, hundreds of people have either been put under house
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arrest or taken into custody in raids over the last couple of days. back to you. >> all right, michele. thank you. we'll see you soon. for more on the latest developments in paris let's bring in two experts, bob horse smats our guest host much he's virus chairman at kissinger international and jim woolsey is a former director of the cia. we talked off camera about the emdolden emboldened threat. paris attack puts a dagger through the heart of liberal europe. probably the most liberal individuals in france and germany at this point have moved to the right of the political spectrum based on this. >> that's right. we'll see this very quickly. the french are having regional elections in december and la
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penn will do very well. a lot of these right-wing parties will do very well. the problem with these right-wing parties is in addition to their very tough right-wing points of view generally, most of them are anti-american, most of them are ain anti-nato. most are complicit with putin. he has close connections with many of these parties. >> what does that mean? >> he's going to encourage these parties not to encourage nato to take a tougher line on areas line ukraine. putin may turn out to be an ally they need in syria to bring the syrian government around. so actually europe is going to move closer to putin because, first of all, these parties are working with him. second, they see putin as a
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country, as an individual who can convince the syrians to produce a compromise and he's also taking a stand, more of a stand against isis. >> director woolsey is there anyway to look at this and not be pessimistic about the world's chances here to avert future events like this? i mean we talked about a patriot act for france or a patriot act for germany. i mean, that won't solve -- teen degradation of isis won't stamp out islamic extremism either. any reason to be optimistic about our future? >> it's hard to substitute other steps for the actions of the american president. if the american president isn't going to take lead, if he's going to continue to regard this as a law enforcement matter from the way he talks, if he's going to continue to deal with this as
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if caught terrorists are like trout, catch them and release them, we're not going to be able to lead and we got another 15 months of basically the world believing that we are just sort of flaccid documents. we're unlikely to be doing anything that's substantially important in pulling together a coalition. we could and should work with france, with the french government completely support them in their retaliation and ourselves. you know, we sent thousands of sortees a day in the opening days of the first gulf war. hundreds of sortees and now
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we're sending an eight a day. the french at least are doing something. but we have to get into much of this as france if we're going to have any chance of influencing where people go. >> jim, real quick, again going to sound like a selfish question. in terms much greatest risk still in europe or do you think that there's a real risk that they come here? >> i think they will come to the united states too, but if all we do is try to predict where they are going to go next and see if we can't defend that spot some way, we're going to lose. because an open society is always going to be vulnerable to lots of people being killed in restaurants and the like as happened in paris. we have to go after them. we have to pull together a coalition with us and france and others and nato has to go after them and destroy isis and their
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caliphate. >> you're talking about the caliphate. aren't there potentially isis actors that have infiltrated all over the place already. >> sure there are. but you have to do both. you have to defend against individual attacks. you have to make reforms so we don't have sanc turn ary cities in the u.s. where felons who are immigrants are perfectly free not to be taken into custody. there are lots of things we need to do differently but one of them is to take out the caliphate and france, i think, has that right. >> i also would like to add in addition to what jim is saying we have to take out the caliphate is the recruitment process is on a level we've never seen before. no other group has used social media as effectively and as broadly so for every jihadi john we kill there are going to be two jihadi joes cropping up.
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we don't do that we'll be in trouble. >> using sorties on a daily basis won't help. i want to read this quote. president obama's inability to have an adult conversation about islam's manifest problems with modern life, tore christianity apart kept the west's loudest bully pulpit kept a debate from muslims defining what being muslim means. he knows american people are war weary. what is it? >> sound way to have a foreign policy is to have some objectives and figure out a strategy that would work to implement the objectives and then manage your tactics and your politics and so forth to
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make that happen. obama administration, i think, starts with public relations. and works backwards to the narrative then works backward to their view of the facts and what they are willing to say. and it's all very sort of pr focused. it is hopeless, basically, in terms of making it possible for us to win in this situation that's developing with isis and with the jihad against us by radical islam. >> do you think that our foreign policy should switch from the notion that we have to oust assad and that maybe we should align with russia in some way and allow assad to stay there to beat isis? >> no, i don't think the time has come to ally with russia although we did that once in the 20th century, we needed them
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even though they were a terrible communist dictatorship we needed them against the nazis so we allied with them for three years and eight months of world war ii. i don't think it's time to do that again, no. >> we should just be leading. the united states should do whatever we need to do even if we don't have a -- what is that, an alliance of the willing or whatever we call it. >> we ought to talk to nato. france has already said they have been attacked, at war. and under article iv of the nato treaty there would be consultations and if they reach a conclusion under article v we would come to france's assistance. that's what we did after 9/11 and nato did that. >> this guy wants to get out of wars. no way he'll get us into a war. >> i don't care what he wants. if he doesn't want to defend against this jihad he's wrong and we need to do everything we
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can even though he's a president and then have a president who will. >> bob? >> i think we got -- if the french call for utilizing article v we ought to do it, we ought to go in. it won't be the american troops. >> do you think it will be more likely to do that than barack obama. >> i think she's taken a tougher view on syria all along. on the question of russia and then also you have to add iran to the equation i think we should not as jim says ally ourselves with them. but the fact is that if we're trying to get some kind of rational arrangement in syria and don't forget one of the reason that isis is as strong as it is in syria is that it's using the accuse of bashar al assad to do it. but if there's a transition it's not just going to be article v efforts by nato we're going to
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have to work the iranians and russians. they have more influence over him and if there's some transitional effort which i think will be difficult in any case we have to work in parallel with them if not as allies. we won't be allies but they are in there and we have very little influence on what's going on in syria. they have more. >> you haven't minced any words. what do you think when you hear the president and secretary of state john kerry saying climate change is the biggest threat to our national security. >> we need to work on climate change but i think its terribly -- >> are they serious? do you think they believe that? >> i don't know. depends on how fast the seas rise. just because you're paying attention to the seas rising doesn't mean you should ignore a jihad trying to destroy your civilization.
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>> all right. thank you to jim wolsey and we'll have much more from bob hormats throughout the hour. >> when we come back we'll get a check on markets. we'll do that in just a minute. let's throw that board up. you are looking at green arrows, surprising to some. dow looks like it will open 49 points higher perhaps because of an expectation the fed won't move. s&p 500 looks to move up five points. then marriott ceo will talk about the deal news his company buying starwood hotels. and glenn hutchins will join us. more fallout from the terrorist attacks in paris. information homeland security secretary michael chertoff will weigh in on u.s. protocols.
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>> welcome back. u.s. equity futures are indicated higher. no small feat given the events over the weekend. europe holding up pretty well as well which was maybe a bit surprising after seeing some of the other markets. but i guess bring up the house. look at the european markets. board is not working. when it does maybe it is look a
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european markets. there's the dax really flat. flat across the board except greece. oil, how does oil react after selling off -- up today. up 2%. up 2% to 41 and change. amazing. look at the currencies, also something that gets more and more important as we try to figure out what yellen and coe will do. >> with greece down is that a function of a worry about merkel's power and if she's no longer going in power what that means for them. we'll talk about them and a lot more. after the break, marriott ceo arne sorenson will be joining us. north island glenn hutchins will join us on the set. he's on the board of the new york federal reserve. and then later gop presidential candidate donald trump will weigh in on the terrorist attacks in paris and a lot more. "squawk box" returns in just a
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moment.
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. welcome back to box this morning. deal news breaking earlier this morning marriott buying starwood
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hotels. marriott's ceo arne sorenson joins us right now. we want to talk about the transaction. want to talk to you about how it happened. want to talk to you about what's going on in europe and paris and the implications and how you see that playing out in terms of the economy there. first let's talk about this transaction. starwood was in the news. there were rumors the chinese three different firms were about to buy them two weeks ago. had you been talking to them prior? >> they started their strategic review about seven months ago. we jumped in right away. we sign nondisclosure agreements. initially we were dissuaded. we thought the company was expensive. initially backed away from it. as the months went by we saw relative shift in the values of the company so it made it more attractive economically and became convinced there was value we could create by having those two companies together.
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>> i want to talk about the price of the transaction. you can save $200 million annually as a function of putting these two companies together. you're saying that in terms of marriott's stock, then there's $2 consideration in cash then a spin of what is the time share business and that you're saying is worth $7.80. your stock is trading marginally up. starwood is trading marginally down right now at 72.99. what are they missing? >> i'm not exactly sure. i haven't seen the market data. the markets haven't opened. we obviously need to see how the markets perform over the course of the day. course given the events in paris this is a more complicated day than we anticipated a week ago. >> this happened over the weekend. you put this deal over the weekend or finalized it over the weekend. was there any sense given what took place in paris on friday
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that habeas corpus you should wait? >> it would being a great to wait. but practically it doesn't happen. you think about it. it's a $13 billion deal. weeks have gone into preparing this. boards are meeting to approve. it's big news. you can't sit on this news and say we'll wait for a convenient day to come out and announce it. the numbers you went through are all looking at 20 day average trading prices for the time share spin that starwood is committed to and will occur before we do, before we acquire the company. the other pieces of security. i think it's a good deal for them and for us. one reason why it's a good deal for them is because we've become one. we're using our equity which allows them to play on the upside of this company. >> one thing you mentioned this deal became more apparent and looked as a better deal. you're talking about when the share price fell when their stock fell from 87 down to where it is now >> relative performance. from when we first backed away
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to when we really aggressively reengaged we had a 15% swing. >> so this price didn't make sense at those. >> yes. >> you'll have more than 500,000 hotels. how many will be in europe? >> about -- let me think about this. we're about 9% in europe and they are about 15% in europe. so weighted between the two, 11%, 12% range. >> given the awful tragedy that took place on friday i don't know if we call it a tragedy, the terrorist attacks how do you think about that situation relative to the economy, relative to your business, dare i ask. i know it's a human tragedy, but we talk about the business and the economy and its impact. >> first reactions of course are look at people, our guests and our associates and see how they survived this event on friday. fortunately we lost nobody. i think there are very few
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people in paris unaffect because family or friendships or some other connection with the events. we want to work through that fine. now we're attractive to this deal in part because they accelerate our globalization. we have been in the business for a long time but starwood is more global than marriott and we think it's a good thing that we'll have more source from around the world. at this moment in paris that may not be ideal but when you look at potential performance of the euro in years ahead and look at growing markets like china and india in the long term that contribution is fabulous. >> you don't think from an. investment case that things have really changed, that what took place in paris is not just a one off but perhaps could be the beginning of something more dire? >> let's hope it's not. let's pray that it's not. i think on some level one of the advantages of using stock we
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don't change the risk profile of the company. we're still in the same industry. we're still subject to the same geopolitical risk we had before. we think we can compete relatively better and earn relatively more by being together whether we're in a strong or weak market. >> for example, you have a great niche hotel near the renaissance. over the next month if there's bookings, how many would you say have cancelled, 20, 30? >> no. at the moment we think the cancelations are running about twice the level of last year. >> what was the level last year? >> presumably a normal like level. this is all very recent. >> we ask in part because one of our correspondent in china has been talking to travel agents there suggests that just in terms of beijing visitors coming from beijing about 50% of the people planning to visit
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paris are now cancelling. is that reflective of the broader community or -- >> i wouldn't think so. that doesn't surprise me. i think you'll tend to have a few more first time travellers coming out of the developing market for whom news like this will be that much more ominous and i think when you look at business travel, for example, much more resilient. we got a big green summit coming up in paris in a couple of weeks. i expect there are political reasons and business reasons for that to occur anyway. and we'll see that a lot of people continue to take advantage of it. >> how much of this was driven by china. starwood spent a lot of money building hotels in china. >> we've done a nice job in china. in beijing and shanghai we're very strong. they are a bit bigger. but it is not principally china focused. the global piece is powerful. i think the value we can get by pulling together marriott
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rewards, these are two if not the two leading loyalty programs in our industry. put them together. spend that much more on technology and marketing and other things we need to do. >> when you talk about $200 million in annual savings that comes from where? >> that doesn't include the annual savings we can deliver to the hotels we manage and franchise. think about cheeper reservations. think about the cost of systems for hotels. we think there's a lot more cost synergies. >> long term you think you want both brands? >> our philosophy is to merge these companies as quickly as we can and run one company. i think we'll keep the brands. >> you'll keep all the brand independently. you think some shift -- to say all -- >> generally we've have these brands. they are good strong powerful brands. we want to take them, strengthen them and grow them faster than they've been growing in the past. >> one thing we talk about
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throughout the show, andrew brought up a few times. you know there's madrid. there was 9/11. how long ago was that. 14 years ago. the tube. these things have happened. but for someone in the business that you're in, if this were actually different in terms of isis, you know, looking in the last week or count the russian airliner and then beirut and baghdad then you got france if this were to ramp up -- the world can't live normally and things like tourism will be impacted. what do you think we need to do to get a handle on this isis situation as the united states. you must hear the hawks talk and think you got a vested interest in us dealing with this and leading as the united states. >> it's really hard. way above my pay grade. i sit on the brookings board. we talked a lot about what's happening in the middle east what the right u.s. response is.
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i don't have the expertise to have a real recommendation. >> i want matters across all businesses. >> we seem to be going through the same conversation over and over again. the hawks say we have to step in and participate and others say we have stepped in and participated for 15 years and not made things better. how do you reconcile those things and find a way to reduce this level of risk around the world. i'm an optimist. people will travel. people want to see the world. i think ultimately when you get to the statistics these -- it's not that risky to travel. but to say that -- >> some of your domestic ritz-carltons are looking pretty good. >> some people will stay at home. >> we got to thank you arne. hour and a half after the transaction gets announced. we do appreciate it. coming up, we're going to get a read on the markets and
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the economy from glenn hutchins chairman of north island. he'll join us on set for the rest of the show.
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welcome back, everyone.
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we do have some breaking news from berkshire hathaway. the company is out with their filing. this tells us a little bit about what warren buffett has been up to. what he's been buying and selling. if you do go through the math on there there are some changes in his portfolio. ibm that stock increased as buffett mentioned to us last time he was on cnbc he was buying some more. that stake in ibm did go up. more importantly perhaps there's a couple of major holdings that saw a decrease. walmart, his stake in walmart dropped by 7%. his stake in goldman sachs looks like it's down 13%. i just got off the phone with mr. buffett and asked him why he was selling. he said what he's doing with precision castparts. he plans to spend $22 billion of berkshire cash and borrow the other $10 billion.
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sales of goldman sachs and walmart said these were both non-insurance subsidiary. that's why they were sold. it's not a reflection of a loss of confidence in walmart or goldman sachs. he also talked a little bit of what he's doing because of the paris attacks. i'm not selling any securities because of the attacks in paris. not at all. won't be doing anything differently at berkshire based on what they saw on friday. he bought stock on friday, he didn't say what. >> can he be any more specific about ibm? did he buy a hundred shares? >> still doing the numbers. >> i want to know about that. >> he's doing the numbers. >> oh, yeah i bought a hundred shares. he's so under water on this. >> i'm going from the last quarter. >> i need to know. that hit new lows last week. >> that was from last quarter.
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if you want to do this live with me on air we can. >> will you get back to me. >> 278 straight across. he had 689,588 shares and that went to 721,288. 474, 843. he also added in this account from 77.1 million -- >> pocket change. >> talk about an additional 1 million shares. >> pocket lint. >> roughly i'm still adding the exact math but looks like roughly a million shares. >> if it went down people would panic. >> we will continue to keep an eye on this. take a look at shares of ibm down by three quarters of a percent. joining us now is our other guest host glenn hutchins. still with us is bob hormats
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vice chair at kissinger associations. glenn, thank you for being here today. >> thank you. >> buffett said he's not changing his behavior based on the paris attacks. markets are holding up pretty well. what do you think? >> i think the underlying economy is very strong in the united states and i don't think this is something that's going to affect global growth significantly. this is not a moment in my view to think about the markets. it's a moment to think about the people in france. many friends there including very dear friend who is the ambassador. >> we, obviously, have been thinking about them am day. >> that's true. >> but it does raise the concern that francois hollande has said there are other attacks that they are planning and plotting not only in paris but other places in the world. what do we do at this point? >> two things. one, the events of september 11th all the way through "today
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show" our economy our markets are resilient. i think what americans and people around the world can do is get their kids to school, go to work and carry on. and so i think people should not worry about the economics of this. i think it's very, very important for the countries in the world to rally around france. i think there are three things the united states has to do as we think about the middle east. one is to protect ourselves and allies from terrorism. second to defend israel and third global flow of oil. i do think two things, one you might remember that i grew up in the middle east. living in cairo my father was at the american ambassador. i was evacuated at the beginning of 1967. it was a personal experience for
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me. and i think the nine state policymakers have to understand the moist has always been and will always be chaotic. the flaw assumption with the invasion of iraq is to turn it into a rational order. the goal right now is to contain it from the chaos in those parts of the world from expanding the terrorist threat around the world. we have to realize that france could be us just like it was on september 11th. we have to rally around them. but do it in a way that doesn't destabilize it. >> we heard, unfortunately, and talk about bad timing, but the president said isis was contained. that was on thursday. then jake tapper said if this is containment i wonder what containment isn't like. >> i don't want to get in tit
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for tat. the president was talking about geographically. keep it from expanding outside the middle east to endanger us is my point. look the most successful war we fought since world war ii was the cold war. and what we did with that was to contain a threat until the collapse of its own weight. the hot war in iraq was a mistake. right now, though, we have been attacked or our allies have been attacked by isis. it's time to take them out. like we should have done with the taliban in afghanistan after 9/11. but to try to go from there to re-ordering the entire middle east and expect to it be a rational kind of little democracy i think would be a fool's errand. the republicans made this same argument. this is not a democrat versus
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republican, liberal versus conservative view. this is where foreign policy stops. >> this is the difficulty. we should have done this a lot earlier. now it's spread out and they are getting allies like in sinai and north africa and central africa, various parts of the world. and they've recruited so many people over the last several years and months. that's what really troubles me is that they have used social media to recruit information their deviate ideological way of thinking. jihadi johns, there's jihadi joes being recruited all over. they are taking not only lone wolves but we haven't seen the beginning of the impact of a lot of these foreign fighters who fought in syria and iraq coming back. >> geographic containment is not -- >> we can't think of it in terms of borders. we're thinking of the world differently now.
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we should be anyway. we should contain it in that region to the competent we can. don't forget they are still in month suing, still in falluja and lost a little bit -- >> when you say contain, almost means co-existent. contain but don't destroy. >> i think we need to destroy them where they are and destroy them not just be content with that. they are all over now. you have to go after all these pots and groups so that containing is regional and broader in dealing with them throughout the world. we can look at it as one part of the world. it's all over now. >> we'll have more from glenn hutchins and bob hormats throughout the program. >> more fallout from the terror attacks in paris. a closer look at the agenciesing charged with keeping america same. michael chertoff will join us in a few minutes. "squawk" returns with that.
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theand to help you accelerate,. we've created a new company...
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one totally focused on what's next for your business. the true partnership where people,technology and ideas push everyone forward. accelerating innovation. accelerating transformation. accelerating next. hewlett packard enterprise. welcome back to "squawk box" this morning. we got an update from the fallout on the terror attacks in paris. seven attackers are dead.
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six died from suicide bombs. one was killed by police. there's a massive manhunt for the last one. take a look at the futures right now. they are looking up perhaps surprisingly so. expectation now fed won't move and take a look at the markets in europe. actually been relatively flat on the margins. coming up when we return former homeland security secretary michael chertoff is going to join us right after the break. we'll ask him about the threat of terror attacks in america and across the globe. we're back in just a moment.
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containment . welcome back to "squawk box". paris still reeling from the terror attacks on friday night. joining us is michael chertoff former secretary of homeland security and executive chairman of the global risk management advisory firm, the chertoff group. good morning, michael. help us understand and i know it's a selfish question but the risk here at home. >> first of all, let me extend my condo lens to the people of paris. for french this was like a 9/11 with over 125 killed. many more wounded. i think underscores what we've known for some time isis is now is a metassizing organization.
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obviously europe is an area where there is a large, relatively large pool of potential recruits. you have people from the region who are little bit disaffected. we've seen that with identities of some of the perpetrators here. we have foreign fighters going back. we have a little bit of that in the u.s. that's the concern that was articulated recently by the fbi director who said there are now ongoing investigations in every fbi field office in the country related to terrorists. >> so when you think about our borders and what we should be doing than my grant crisis and who should be allowed in or not what do you do >> first we do a good job at this point of vet organize examining people who want to fly into this country, whether they come from visa countries or visa waiver countries. we want to make sure we continue to integrate the intelligence that we use as our major tool in doing that vetting as we go forward. in terms of the syrian refugees obviously most of them are
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innocent but we have to be concerned about infiltration by operatives and that's why we have to vet and examine those people who we'll admit into the u.s. for asylum purposes. that might take time but we can't rush it or do it in haste because we can find ourselves on the receiving end of what citizens of paris experienced last week. >> given the situation of european and proximity you're talking about would you close down the borders? >> i think europeans find themselves in a very, very difficult position. first of all, they are overwhelmed just by the humanitarian challenge of people being processed. it also makes it very difficult at that point to determine whether people might be operatives. ideal le people who are seek being asylum would be processed some place in syria and iraq. which is why i'm a believer we made a huge mistake in not
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creati creating safe hey convenience a coup -- safe-havens a couple of years ago. and the problem is it's going to be difficult now but we need to try to talk about creating a safe-haven and orderly process for these people. >> what about post-edward snowden world when you think about privacy. we see so many corporations trying to encrypt everything in part because of those security concerns. does that change? does that dynamic change in u.s. and europe as a result? >> look here's my view. the reason we encrypt is to protect people's information from criminals and terrorists. it's a positive security measure. i think the major tool we use in terms of identifying potential terrorists is what we call meta
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data, see who communicates with who. who pays for whose airline flights. that's information we still get. sometimes europeans resist that. this will be a wake up call for the europeans to institute and elaborate on this process within their own borders. >> okay. michael, we really appreciate your time this morning helping us sort through all this. thank you. >> we want to thank bob hormats for joining us for the hour. >> thank you. i can make one quick point or two. safe-haven is critically important. we should have done that a couple of years ago. we need to do it now. we need to work with the russians and iranians. another risk is this could weaken the leader of europe today and that's mrs. merkel, chancellor merkel because she's been a big supporter of allowing people in. now she will be criticized for doing it. it will weaken her position. bad for us and bad for europe. >> coming up a reaction to the terror attacks in paris from the
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gop presidential candidate and front-runner, donald trump. he'll join us after a quick break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. go to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com.
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launching air strikes. a new wall of worry global markets taking the news out of paris in stride. glenn hutchins is here to help us make sense it all. a "squawk box" news maker, republican presidential candidate and leading candidate, donald trump joins us. we'll talk politics, the economy, the war on terror and everything in between as the final hour of "squawk box" begins right now. >> announcer: live from the most powerful city in the world, new york. this is "squawk box". welcome back to "squawk box" right here on cnbc first in business worldwide, i'm andrew ross sorkin along with john kerry and becky quick. we're oet minutes away from the opening bell on wall street. futures surprising to some given the tragic events that took
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place in paris on friday, dow looking to open higher and nasdaq as well. city of pittsburgh city of pittsburgh up about 3.5 points. that may be in large point a function of the fact people believe the fed may not raise interest rates. checking out shares or the markets in europe, you do have a mixed picture. flat for now. oil prices at this hour. we're looking at the euro right there, looking at u.s. -- now crude at 41.72. >> there is a manhunt under way for a an individual connected to the friday's attacks in paris. the death toll stands at 129. hundreds have bern detained or put under arrest under house arrest over the weekend. michelle caruso-cabrera is our chief international correspondent and she's back with more of the details. michele. >> reporter: hey there, becky. let's start with the manhunt. 26-year-old salah abdeslam, french police tweeted out his
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photo and description last night and now there's a manhunt under way across france and europe as well. his brother was one of the suicide bombers and they say he's also the renter of a car that was found outside the less bataclan theater where 89 victims were killed by the attackers. the le bataclan theater just a few blocks from here. business owners are coming forward. our team spoke with the owner of a restaurant which was right nearby here as well. there were many there were several spots across paris where there were incidents. this particular one there were attackers who shot up his restaurant. you can see just the bullet holes in the windows. he told our crew that he was sitting outside in the sidewalk cafe of his restaurant and watched the black seat circle the restaurant for more than an hour and i want made him nervous. it was cold. decided he would go home.
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it was a very mild night in paris. he got a call from one his employees who sounded very, very scared. something terrible had happened. he came back and the incident had happened. and he says he's just completely devastated by what's happened. he done think he'll re-open for at least a couple of months because it's just been such a horrific situation. the owners of the le bataclan put out a statement on facebook saying no words are enough to express the magnitude of our grief. they went on to say we know you have requested you would like to come and get your personal belongings or your family's personal belongings but the police aren't allowing us to do that. we'll let you know as soon as that is possible. so we keep hearing minute by minute here the ripple effects of what happened here and i suspect we'll hear from more business owners as the days go on as they try to recover much
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like the country and the city do as well. guys, back to you. >> yes. very appreciate in everyone's minds. thank you, michele. we'll be there throughout the day. joining us now, donald trump. mr. trump, thank you for joining us. i have a couple of ways of asking this first question. what would you urge president obama to do today and in the coming weeks number one or if you want to take at any time other way if you were president right now what would you do? >> well i like the second question better frankly because the first he's done nothing. the fact is that all of these sites that they hit they could have been hit and should have been hit a long time ago. their training centers. we knew about them, obviously. they just hit after a tragedy. they should have been hit a long time ago. they should have been attacking the banking system because isis is getting its wealth through the banking system that you folks cover very nicely and you
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know more about it than he does. the banking system glitches them tremendous wealth. the biggest source of wealth is oil and as you know, joe i've been talking to you about it, we should have been attacking the oil. i say attack the oil for two years. people laugh and scoff and yoke and now two tase ago they started attacking the oil because that's a significant source of their wealth. so it's been, you know, just terrible when you look what's going on. we have a president that doesn't even want to use the term radical islamic terrorism. he won't use term. how do you fight someone when he doesn't want to use the term. some day someone will ask him why. we have a president who doesn't get it and he's weak and ineffective and that's what's happening to us and that's what's happening throughout the world right now. real question is when they hit these different sites and a lot of them are training sites why wouldn't they have done that months ago? >> when we do things like this,
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mr. trump, we're always trying to balance out, you know, even iraq has said that a lot of the fervor is increased when you respond and that's one of the things people are saying today. even if we destroy isis or attempt to do it, the remaining jihadists get even more emboldened and it's a recruiting tool. how do we approach the whole problem we have of islamic extremism not just isis? >> well that's really the big question because this is like no other war that we've ever had. this is a war. believe me it's a war. they don't wear uniforms. it's not one country against the other. this is a war where you're sneak being around corners and sneak being under tables and you have to find out who it is. in fact, i just saw that somebody was, you know, looking and they saw suspicious
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characters throughout various sections of france and they didn't really know and it turned out to be some of those people that were attackers. this is a much different war than we ever had. ate war based to a certain extent and even to a large extent on the internet. and they have better knowledge and understanding of the internet in most cases than we do. so we're going to have to get intellectually much smarter if we're going to win this and be much tougher. we have to give up certain privileges we've always had. we have to get a lot tougher and smarter with our intelligent agencies. and we're going to have to knock them out and knock them out hard otherwise this will be a cancer that festers and festers and just gets worse. >> mr. trump, if you were angela merkel, or even francois hollande , how would you -- i mean you talked immigration here. they have open borders in europe, totally open borders. that was one of the benefits of the european union.
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what do they do now? what would do you? >> i said never let them in and you know that. i've taken a lot of heat for that. i have a bigger heart than anybody. you can let people into this country. you know president obama was talking about 200,000, 250,000 on the debate the other night. they said 65,000. i heard numbers much higher than that. we have no idea who these people are. we are the worst when it comes to paper work. we have no idea who these people are. they have no credentials. no papers. no nothing. when i look at that migration i see very strong young men in that migration and i see far fewer women and children. i'm saying what's going on over here. we cannot let them come in to this country period. if they did and i said it, if obama through his weakness let's them coming in i'm sending them out if i win and i'm leading by a lot right now. if i win they will be going out because our country has tremendous problems. we can have another problem.
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this could be one of the great trojan horses. as far as merkel is concerned she ought to be ashamed of herself what she's done. germany is having riots in the streets. they can't believe this is happening in germany. i had a lot of respect for her as a leader and she blew it when she allowed this to happen this migration. what we should have done taken a big area, big swath in syria and countries get-together including the gulf states who have policemen of money and are not taking anybody, but countries get-together and build a safe zone for these people so that some day they can go back to their homes. what they are doing to europe, you go into paris, you go into sections of paris right now and the police are afraid to walk into certain areas. i don't know if you know paris. you go into areas of paris that are just loaded up with folks that are not looking for good and the police are afraid to even walk into those areas and this is all -- it's a different city than what people think.
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we think of beautiful paris. but it's a lot different place than it was years ago. and so we have to stop this. when merkel did that i couldn't believe she was doing that. i couldn't believe it. and now germany is in turmoil. europe is in turmoil. we can't let it happen in our country. >> mr. trump, you're a businessman. we've been trying to figure out some of the ramifications of what happens here. what does this do to the economy of europe >> it's terrible. terrible thing. take a look at areas that have already been settled and see how those areas are doing. they are not doing well. and this is a terrible thing for europe. this is a terrible thing for the world, becky. terrible thing for the world other than people that make military detection equipment, this is a terrible -- that's the only stock smart to buy right now. ate rough thing for the world, believe me. >> donald, on the issue of surveillance, of course, there was a debate after edward snowden here in the united
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states and europe around civil liberties, number of u.s. businesses because of the revelations of edward snowden started encrypting a lot of their stuff without, you know, there's been a big debate whether the government has a back door so companies like apple and google have done that so they can get businesses in places like china and elsewhere where countries said look if it's not encrypted if the u.s. has access to it then we don't want to do business with these companies. what should u.s. companies do and what should the u.s. government do in terms of our ability to actually be able to surveil a lot of these issues? >> surveillance took a big turn over the last 48 hours when you get right down to it. 48 hours ago everybody was saying well we want our freedoms, we don't want this to happen. now all of a sudden people are saying hey listen you can listen to my phone conversations. an amazing in this. i had people, friend ever mine saying oh, absolutely not i don't want government involved. well when you look at the
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alternative maybe it has to be involved in some form at least more than it is right now. we need strong intelligence. we need strong intelligent agencies. we don't have them right now. a lot of people say they knew about the attack. they had an idea it was coming. all these things you're hearing after the fact with hundred of people dying and you have many of these people dying. they will be dead. and these are really seriously hurt people. when you hear the description, the cold-blooded nature of the killing just one by one. by the way, france is -- france and paris is one of the strictest in the world with guns. those people were sitting there with no guns whatsoever. hundreds of people. there wasn't a gun in the room except for the bad guys. had there been some guys carrying a .45, some guys with a gun, there would have been a shoot out and probably the primary people that got whacked would have been the killers. you can say what you want about all of these people that preach
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guns but france, you can't get any tougher than pearce or any tougher that were france. these people walk into a room with hundreds and hundreds of people not a gun in the room except the bad guys. they just shot these people at will for a long period of time and killed them and had there been other people carrying weapons you would have had a lot different story believe me. >> we've seen, i think candidate clinton, hillary clinton maybe distance herself a little from president obama's policies in syria and elsewhere and actually i think she's on, you know, she's hooking historically it's not she's changing now. she was much more, i guess, aggressive in terms of how you tackle syria two years ago when she was secretary of state and overruled i think. does it make tougher for you if
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you're the candidate and she's the candidate? can she actually say i would have done a lot more than barack obama? does that diffuse your attack on the democrats for that? >> she's weak. i know her. she's weak. she's not the right person for this job. and, frankly, if you watched the debate, joe, the other day and i don't know if you did, it was pretty boring. she refused to use the term again radical islamic terrorist. she refused to use it. that tells you something right there. she's weak and ineffective and the one to a large extent got us into this mess. she helped cause the migration between all of -- between the decisions her and barack obama made not to say going into iraq in the first place was something that should have been done because i was against that as you know right from the beginning. i'm the only one that was because i said it would destabilize the middle east which it totally did and iran would take over absolutely take over iraq which is happening now and take over the second largest
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oil reserves in the world. i was against it. one we were there you look at the decisions that were made by hillary, clinton and barack obama, and those decisions led to the migration and led to all of the problems you have right now. so i would love to run against her. i think she would be -- i mean i just don't know how somebody like that could win. she did a terrible job. destabilization. just a terrible job. she still refuses to use the term. she still refuses to say what it is that's happening. she probably thinks they people come from sweden or something. she refuses to say what is it that's happening in the world. she can't use the term. she's just taking orders from obama. how can she not use it. she doesn't want to say what's happening. if you can't say what the term is, and you can't describe it, you can't solve the problem. >> the president -- there's photos in all the papers this morning in deep conversation
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with vladimir putin. i'm just wondering, you know, you talked about this as well, should the united states change its stance on whether assad gets to stay since we've seen what happens when strong men from other countries, when they leave it seems like it's not necessarily much better when they were there. should the united states, putin and assad get into some type of arrangement where they align themselves against isis? >> first of all i love seeing that picture. it's about time there was a picture. it actually looked like they are intenthly trying to solve a problem. i've been saying for weeks taking a lot of heat that it's great russia is bombing the hell out -- it will be isis. they foregynecologist knocked down a russian airplane. isis took credit for it. so there's no love with putin and isis. so i think it's great russia is doing the bombing. i think that assad is a bad guy. but we have no idea who we're
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fighting with gaze we have rebels that could be isis. i have generals telling me thinking the people we're backing against assad is isis. we don't know. we're spending hundreds of millions of dollars backing rebels and in my opinion they will be worse than assad. what are we doing? the bottom line is when i saw the picture of russia and united states working together, i've been saying this for five, six weeks and we should be working together. a lot of people said oh, that's terrible. some of the dumys that are in the senate and congress said oh, we want to do it ourselves. why do i want to do it ourselves? it's a quagmire. the middle east has been a total quagmire whether it's iraq where we spent trillions of dollars where we got lives and wounded warriors. we got nothing. iran will take over iraq. we don't do it right. it's a quagmire. i love the idea that russia and
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us work together on isis. >> that means even working with assad, going ahead and figures these despots are better than the alternative? >> the problem is we want to get rid of assad. look what happened, if you look at -- look at any of the places we attacked. look at libya. take a look. are we better off in libya right now? libya is a disaster. libya is a training ground for terrorists. libya is what happened. you know when you talk about benghazi and all of this, i remember the ambassador was riding through the streets, holding the flag and everybody was so proud and then a few days later these absolute animals killed him. so, you know, are we really better off? assad is not our biggest problem, believe me. assad is not. russia wants assad. we don't. but the problem is it's not like we have george washington that we're backing. we're backing people we have no
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idea who we are. we're probably backing isis. >> there's some, just switching gears. i saw some stuff today that said that the calendar is starting to benefit you and maybe to a lesser extent ben carson because we go into thanksgiving, then the holidays, then next thing you know it's the iowa, people are going to put their money where their mouth is at some point and that people are starting to realize maybe things aren't going change that much in term of where people are in the gop sort of who is in first, who is in second, who is third and fourth. they expect you and carson to be there. who do you worry most about your rivals on the gop right now? marco rubio? >> i think everybody. but i'm way ahead almost every place. i'm leading big nationally. i'm leading big in new hampshire and south carolina. i'm leading in iowa.
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so i don't know. we're doing very well. the message is resonating. i'm drawing tremendous crowds. i'm going tennessee. today we have, you know, going to have at least 10,000 people, probably much more than that. so we're getting a lot of -- we're resonating every. it's common sense and tough talk but common sense talk and we'll make america great again. it's as simple as that. we'll make america great again. we won't be stupid we'll be smart. >> you're tied with ben carson on some poles ls. this is the most recent i guess trump comment that got you in trouble with ben carson. once again next one i saw you're like 42% and he was back down to 19%. >> i told the truth about ben carson. he wrote a book and said that he's pathologyical. you can't be pathologyical. we have enough problems.
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he said he went after -- that's a bad statement. i didn't say it. he said it. he wrote it in a book before he thought he would run for president. he said he had a pathsologyical temper and pathologyical disease. he went after his mother with a hammer. he stabbed somebody. we have enough problems. all i did is say what was in his book and it probably had an impact on his numbers. i don't know. maybe people didn't hear about these stories. look, i'm doing very well, and we'll see what happens. you know like about 80 some days we go to iowa begins and then we go to new hampshire and south carolina and it's going to be -- it's going to be amazing. i'm leading in florida big over rubio and bush. a lot of good things are happening. i promise you one thing joe, we've known each other for a long time i'll do a great job for you. >> a lot of people are talk being about maybe that, you
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know, you're an outsider but you need a brown game, you need the organizations like seasoned political type would have in a lot of these states. an organization on the ground. you need to spend money and you haven't been spending much money. sthapt all in the works? >> joe, i'm proud of myself. i spent the least money and have the best result. wouldn't that be nice if the country could do that. i spend the least money. i'm going to spend a lot. i have a lot of cash. i'll spend what i need to spend. so far i'm very proud of the fact. that a badge of honor. but i'll be spending money. i'm starting commercials. honor nefrtly i haven't needed commercials because i'm so far out in front. i haven't needed commercials. i'll do them anyway. we're starting commerce shalgs and just started them in iowa and i intend to spend quite a bit of money. we have a great ground game. we have tremendous team in iowa, tremendous team in new hampshire, south carolina. >> donald one of the questions
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that invariably gets asked whether you'll be spending your own money, whether you'll accept donation and using those donations and you criticized some of your opponents for accepting some of those donations if you will and using some of that money. how are you going square that? >> i'm self-funding other than little donations where people send in $50 or $100. that's a great thing when they invest in the campaign invest in the country. other than that i'm totally self-funding. i have no super p.a.c.s. i don't have anybody i'm beholding to and i want seems to also resonate with the voters. they like that very much. >> watching the dynamic between you and ted cruz from the beginning has been interesting to political watchers too, donald. i saw you as kind of frenemies.
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what do you think of cruz's ascent since the last debate. >> he's been very nice and supportive of everything i've said. more than anybody else. we'll see what happens. if he catches on we have to go to war. we have a lot of same ideas. we'll build a wall and be effective. my walls are effective. we're going to have a border and no drugs pouring across and people that are illegal coming in and just walking across in front of the border patrol people who want to do something but told to stand down. very supportive, actually. >> glenn hutchins is here. he has a question for you. >> hello, donald. you said raising the minimum wage would make the u.s.
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uncompetitive but all minute wage jobs don't export like your hotels. >> basically my feeling is i do a lot of business outside of this country, glenn. a lot. i just feel that we're becoming more and more, because you know when you talk about exporting goods, i mean people getting minimum wage are making product. we have to make product that's competitive with other places because if you look at vietnam now is doing so well because of wages. and they are taking a lot of business away from china. we have to keep our wages -- i would love to say from a political standpoint increase it to $15, increase it to whatever because politically it's positive. we have to keep ourselves competitive. our taxes are noncompetitive. our taxes will bring us down to a competitive nature. our taxes are totally noncompetitive and our wages are noncompetitive. so we do make a lot of product glenn whether we, you know we don't make as much as we should be and we don't make as much as
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we used to. we have to keep our wages down. i feel strongly we'll be more and more noncompetitive. >> donald trump, thank you for all your time this morning. we appreciate it. we'll talk to you again soon. >> thank you very much. great honor. >> coming up when we come back much more from our guest host glenn hutchins including his take on the 2016 race but warren buffett's comments to becky about his firm's latest portfolio moves. he talked to her moments ago. stay tuned "squawk box" will return in just a moment. are more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists,
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welcome back to "squawk box," everyone. let's look at the stocks mentioned in the latest 13 f filing mentioned by berkshire hathaway. increase in ibm bio.19%. he told us this morning it was not because he done like those companies but because he had to sell some stocks so that he could make the acquisition for precision castparts. they plan on paying about $22 billion themselves. also he took a look at general motors, increased that stake by 22% and charter communications by 21%. when we come back could the paris attacks take december off the table for fed.
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steve liesman will explore that debate next. stick around, "squawk box" will being right back. no matter how fast the markets change, at t. rowe price, our disciplined investment approach remains. we ask questions here. look for risks there. and search for opportunity everywhere. global markets may be uncertain. but you can feel confident in our investment experience... ... around the world. call a t. rowe price investment specialist,
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welcome back to "squawk box". we've been talking to major investors this morning asking them about the global market implications of friday's paris takes. wilbur ross told us the situation is unlikely to cause any big correction. >> i don't think this will provoke anything like a 10% market crash. >> could the ripple effects of the paris attacks take december off the table for the fed? steve liesman is here with that story which we talked about a lot. >> back and forth. >> we thought, you know -- they've taken it off the table for less in the past. >> that's a point. if wilbur is right it will not take it off the table. the way i could see the fed not doing a december hike and i'm interested in our guest host's opinion on this is the risk off trade. right. you have people coming out of stocks and you don't see that this morning. right? out of stocks into bonds, into a trade that strengthens the
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dollar. you do have a stronger dollar this morning. the euro doesn't want to get below that 107 level. let's imagine a world where the euro goes to one. that would cause another disinflationary or deflation engineer impulse that the fed would that have to take notice of. the irony here the best way for the federal reserve to help europe is to actually hike. to create that bigger difference in the currencies and help europe. so if the fed really wants to help europe it will keep that hike in place in december. >> what we thought, see, the multispeed economies, in other words us going up when everybody else is going down is what causes the disparity between the currency and this is definitely going to slow europe, slow france. even domestic people might not go dinner as much and tourism is hurting across the continent. so even more qe -- >> you have not seen big
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economic effects from even large terrorist acts. it's just not the case. >> this is the time when we're worried that it might not be another two years before there's another one. >> if you can imagine something and this is where it sounds crude were they to ramp up defense spending, ramp up hiring to man the borders, you could imagine a keynesian sort of economic stimulus in the near term. there will be fall out from closed borders in europe but i just don't think it's a done deal. i would watch the risk off trade. it's remarkable how calmly markets are trading. percentage comes down they would do it. but still big on the thumb on the majority side. >> i said this before and i'll say it again. i don't speak for the fed. i'm not involved in this decision. look, on the issue of this effect on the global economy, i think it's our duty and
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responsibility as people who make decisions either in the economy or government to be optimistic. of the many things that are problematic about what donald trump just said one was his negative tone about this event, these events describing it as disastrous consequence. we need to say a bad thing happened, bad thing happened, let's keep calm and carry on. project optimism. that's why we have gotten through these things. i agree with steve. secondly, i'm not sure they will increase rates or not. i expect they will sometime in the future. it will happen at some point. i don't think it will make a big difference because i think markets expect it. and if you look at historical data what you see we have the ten year number below 2%. it needs to get to 5% before it influences equity markets to any significant degree historically. we do need the room in interest
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rates to be able to respond to future problems of guesting rates up a bit so we can have them back down again. >> have you thought about this for a long time. >> i didn't say they should raise rates. we have to take into account a bunch of things. when they do i don't think it will be a big problem. we should remember they read the newspapers and have bloomberg screens too so they understand what is going on in the markets. they will adjust if something problematic happens. should they, will they take into account what's happened recently in addition to what's going on in france, the notion that you've seen japan's down recession. will that be taken into account? of course. >> it's also important to recognize while i was away they dramatically changed the outlook for the third radiator the previous quarter. they added about half a poin to it. we're now above 2%.
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we're running 2.3 in the fourth quarter. the dip in the third quarter didn't happen. things are somewhat better than we thought. i don't know how you felt, becky. if you feel badly. >> it did feel there was a downturn. >> certain softness but it's not in the data right now. you have that weakness. so the one place i think the fed would react and react politically is if this country along with europe ends up being on more of a war footing, into that environment i do not believe the fed would hike. i don't know if that's going to be the case. it depends on the response, if there's some form of -- let's make a suggestion if 50,000 american troops are on their way to europe or syria for a boots on the ground kind of thing which i don't think will happen. let's say it does. i don't believe the fed will hike to it that analyst. >> glenn, in terms of how you measure things, strength of the dollar that's the other big
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concern that people have had, that a worry for you or do you think the fed just needs to go ahead and do this because relative to the rest of the world our economy is in better shape. >> my biggest worry or biggest concern, becky, if and when we get jobs to translate into wages and wages to translate into consumption. mother we're in a 2%, 2.5% trap for at least five years now and well below the fed's projections. and we're not seeing that. >> wage inflation followed by actual affiliation. >> increases in consumption our economy is 70% consumption and we can break out of the 2%, 2.5% unless we get consumption going. i've reached the conclusion we got a couple of very, very different features to today's economy post-great recession than previously that has muted consumption and i think the biggest one of those is what i
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describe as income in security. if you look at american households you see that 40% of american households spend all their pay during a pay period. 50% of american households couldn't raise $2,000 to meet a monthly expense. as many as 80% of american households or everybody but the 20% richest of that 80% half of them in any month experience swings in income and spending greater than their savings. so a combination of a lack of liquid savings would mean fluctuation volatility in spending. consumers are unsure. they are very insecure. if you look at opinion polls many, many more people focus on their insecurity than they do something like inequality or getting higher wages. it translate into conservative consumption. i think it's one of the reasons,
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for instance, why the gasoline price dividend wasn't spent. and i think if you combine that, we can talk about this later, if you combine that with changes in nature of work and our economy the result from the growth of par time and contingent work plus the use of modern technologies for both scheduling of labor and taking jobs dividing them into tasks. put that together you have a fundamental change in work and in incomes and household security that i think is translating in to a consumption conservatism. that's our version of what happened after the great depression. that's the problem. >> makes sense. steve thank you very much. of course glenn will be with us for the rest of the ram. >> when we return, crude prices trading higher this morning sparngd by geopolitical fears. we'll have a live report from the nymex when "squawk box" returns.
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that is cia director john brennan making some comments. very troubling here. but here's couple of them. he said the paris attacks were planned over several months. he also said he believes the islamic state has more attacks that are already in the pipeline. there's also i guess a video, someone from isis saying, you
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know, d.c. better watch out. anyone that is in league with france or anyone else has to worry about being a target. >> the huge concern is that these attacks were months in the making, and yet our intelligence agencies western able to pick up on anything more than just generalized chatter. >> the chatter that there's, you know, just worries me and a place that's still reeling, paris that there could still be guys there they don't know about. they didn't know these guys were on the radar screen yet weren't on the radar screen. couple of guys they knew about for three, four years, fire years. >> one attempted to go yemen in the past and had been stopped. >> couple came back. let's check out the u.s. equity futures. at this point, we've been really muted. if it had been, if the market opened saturday morning it would have been a different reaction. but he were up 35, 40 for most
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of the morning. now you can see we're down just a little bit. nothing significant. >> we're also keeping a close eye on oil markets. jackie deangeles join us. >> reporter: commodity traders are having a calm reaction to this. maybe if the market was open on saturday it would have been different but right now we saw a little knee jerk reaction to the upside when it came to crude oil. those gains are paring a little bit. we settled relatively low on friday. it's not unexpected. two schools of thought how this can go. we need so much more information. first piece of this is whenever there's a terror attack like this that causes geopolitical instability prices go up. at the same time the concern for commodity traders is consumption. will people be traveling less. will they be less willing to go out and consume and bring commodity price lower. we reported on friday a 3 billion barrel storage glut
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globally. there's a lot of oil out there. this is very different than some of the things we've seen in the past. having said that traders are buying gold this this morning but nothing like we would have seen in the past. gold prices are still under $1100. markets are saying we need to wait and see what happens. will there be a boots on the ground response as you guys were discussing this morning. that could be a game changer. right now it's a wait and see approach. a calm approach here. it will be interesting if washington comes out with more and more statements, more information what happened in paris. when we talk about energy we're well supplied. it's a little bit of a game changer, the field is different than some of the things we've seen in the past. right now crude oil is trading under $41 a barrel. be interesting to see if we head under 40 today. it's possible. futures are changing their tone. energy markets could above from positive to negative area.
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>> thank you so much. when we return we'll go down and see jim cramer. we'll get his views on what may happen today. we're back in a moment. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity.
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let's get down to the new york stock exchange. jim cramer joins us now. do you have an explanation why -- were you expecting worse today, jim? >> no, i always think there's a patriotic bid at a certain point. people say, listen, we'll buy stocks. not going to let them influence us. there's also a lot of stocks that were down friday. i know this sounds like a conspiracy, it was almost like people knew it was terrible to think that. you know, market was down horribly. it wasn't because of nordstrom and cisco. i don't know. we do feel washed out at a certain point. there are still plenty of stocks, joe, that absolutely just look horrible. i don't knnoknow how to stop it. gwen is talking about a rate hike. a rate hike is being built in by stocks. it's not like they suddenly came
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out and said there is no rate hike. we're under the assumption there's going to be a rate hike at a time when there's a dramatic decline in imports, a slowing in everything but housing. i think autos are slowing. autos have peaked. i don't understand friday's action. so, so horrible. i think that's one of the reasons we're not down much today. >> yeah. yeah. we had a lot of different thoughts. watching thursday and friday, my conspiracy was that these guys are going to keep running the market down until they get the rate hike off the table. >> that's not a bad -- look, it does feel conspiratorial. you and i have been around a long time. it probably is in it, just paranoia. it does feel like that's what's happening. >> once the awful evil events in paris happened, i figured it was off the table just by definition. maybe i'm wrong. >> another way to look at it, i
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listened to donald trump this morning. i think there are people who feel this is a tipping point for the gop. the gop would be better for the stock market. that's far away. it's a long time from now. but when you listen to donald trump and he says certain things about the gop versus the democrats, i'm sure there are people out there who say this is a place where the gop is stronger on the issues. these things are so far away. i don't see anything fundamentally to drive the market higher. >> i didn't either. i was concerned about -- i saw dubai open -- that was the first one i saw open, down 5%. europe wasn't bad. >> i know. >> crazy. >> i think people feel, look, this is -- i'm not saying they're one off. "usa today" has a good piece on how things act after these horrible tragedies. i can't find a reason to buy a stock. one reason not to sell. but to buy a stock, to put money
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to work just seems -- well, i guess maybe bottom fishers, people who feel the fed is not going to raise because of this or feel mr. trump makes sense. the gop doesn't seem as irrelevant as it did because they're harder line on defense. >> yeah. i sort of felt guilty enjoying some of the sports over the weekend, jim. i couldn't help -- i couldn't help -- you can take the jets out of sanchez -- you can take sanchez out of the jets, you can't take the jets out of sanchez. >> i think the eagles would have won that game. i hate to slag the home team. when he came in, terrible. >> he was -- it was, like, wow, he's a different guy. >> then he passes. we never forget. >> i know. >> the butt fumble. >> yeah. >> they should merge those two teams, they both wear green. >> see you, jim. when we come back, we do have much more from gwen
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welcome back. this is an unsettling morning. people are trying to figure out how to morn ve on from here, wh
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happens next what would your advice be? >> leaders need to lead. i said earlier today we need to keep on, carry on. that was an intentional reference. there are more chances for terrorist attacks around the world, but we need to get up, go to work and build a future for ourselves. my litmus test for the politics around this, leaders do not politicize issues like this. to the extent this is used as a gambit in a political campaign, that's unfortunate. we need to stop the politics at our nation's shores and work with allies for a safe today. >> there are questions about what we do with foreign policy. how we deal with complicated issues. >> it's a subject for rationale discussion. but presidents and people who are presidential do not
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politicize something. >> like a mass shooting is not politicized every time there is one by this president? some of the people are on the way to the hospital when it's politicized. >> i'm not sure what you're referring to. there's an important time for the president in a domestic incident like we had to present himself or herself, help people grieve. that's not about politics, that's about leadership. >> your points, the three most important issues you said we need to focus on when it comes to foreign policy at this point? >> mideastern policy. >> mideastern policy. first, you want to make sure we protect israel. that we make sure that we deal with the oil situation, make sure oil is freely available. the first part? >> protect ourselves and allies from terrorism. >> tall order, glenn, thank you forl being with us tod for being with us. >> join us tomorrow. "squawk on the street" is next.
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the wall street, the nation and many around the world standing in solidarity with france following friday's terror attacks in parparis. welcome to "squawk on the street," i'm david faber along with jim cramer. carl quintanilla has the day off. let's give you a look at futures as we always do at this time. we're set up for what would seem to be a potentially lower open. nothing too dramatic at this po
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