Skip to main content

tv   Squawk Box  CNBC  September 26, 2016 6:00am-9:01am EDT

6:00 am
>> live from new york where business never sleeps, this is "squawk box." good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernan and andrew ross sorkin. we have been watching the futures after big declines on friday with the trend continuing this morning. the dow futures are under pressure. dow futures down by 83 points below fair value. the s&p futures down by 11. the nasdaq down by 29. we should point out for the third quarter all of the major indices are still holding on to gains but for the month of september the s&p 500 and the dow are now in the red. take a look at what happened overnight in asia. you'll see that the nikkei was down by 1.25%. the markets in china down by a little more than that. the hang seng off by 1.5% and the shanghai composite down by
6:01 am
1.75%. and in europe in the early trading there, very similar trends. dax down by 1.5%. the cac off by 1.75%. and the ftse 100 down by 1.25%. wti is up by 30 cents. of course, we did see give back at the end of last week with wti pushing back near $44.78. a couple big stories we are watching today on the economic calendar, we are looking for august new home sales out at 10:00 a.m. eastern time. the fed officials are speaking today. the minneapolis fed press neel kashkari and dallas fed press rob kaplan. and we'll hear from carnival cruise lines and vail resorts. and then the big
6:02 am
geopolitical plan from the boj. they are ready to use every tool to hit the inflation target. there's no limit to monetary policy and that in designing policy the boj will relentlessly pursue innovation. i'm not sure what all that means, but nevertheless, we'll talk about deutsche bank today. the shares of deutsche bank tumble to a record low according to a report in the german magazine focusing that angela merkel ruled out state assistance for the lender and rejected interference into the firm. the doj wants deutsche bank to pay $14 billion for issuing and distributing residential mortgage-backed securities between 2005 and 2007. the bank saying it is not planning to settle at anywhere near that number. we'll see. and in the sports world, they are mourning the loss of golf legend arnold palmer who died yesterday at the age of 87. due to complications from heart
6:03 am
problems. he won 62 pga titles, 7 major championships, 4 masters and also ranks as one of probably -- well, it says here one of the most important figures in golf history. there are many but few broader into the modern age to make it cool. it's tough to -- with the white belts and the plaid pants and some of the overweight guys, i mean, arnie was like -- i read his books and met him a few times and played a round of golf with him once, and even in the book that he talks a lot about his dad, obviously he was a huge influence on him, but he said every shot that he hit he tried to hit into the hole. and it's like if it's a 600-yard hole, you can't really hit your drive into the hole. but he still was trying to hit it into the hole. he was amazing and iconic and everything else. anyway, we'll talk about that. he turned the becagame into a
6:04 am
much-watched event on television, for some people. jack nicklaus wrote, he was more than a golfer, even a great golfer. he was an icon, he was the king of our sport. and he always will be. we'll have much more on arnold palmer's life and legacy later in the show. and i talked to johnny bench a couple months ago who said arnie was not doing -- if you saw the masters, he didn't look as good as he has. but he's 87 years old. he had a battle with prostate cancer 16, 17 years ago, i think. and that caused some scares at the time that we would lose the king. >> it was great to see him all the time, such a regular. >> the thing we used to talk about, it was his enduring
6:05 am
ability to be someone that could come and sit and represent a product. it was 25 years after he won a tournament, 30 years after he won a tournament, let's get arnie to -- >> because he's classy. >> he was. he flew his own jet around. when he went places, he would fly. >> what was it like playing golf with him? >> he was great. he was my partner, too. >> did he offer any tips? >> i was with him a few other times going to bay hill, and i was on the range with him, we just -- we had fun. and we were playing two really good golfers. i'm not going to say whether we won or not, i don't remember exactly what happened. >> come on, man. it was arnold palmer. >> i kind of remember we might have been one down, but i'm telling you -- when i was saying ripe old age, i used to say 87 was a ripe old gauage and it's
6:06 am
getting to be that way the older i get. but he led a great life, obviously. >> i've never been a golfer, that's not my sport. but when i was growing up as a kid, i just grew up to learn that that was the good guy. that was the guy that i was rooting for. and by the time that i was conscious of what was happening, nicklaus was beating him at the major tournaments. but arnie was the guy who inspired the spirit. >> arnie would have won five more majors but he just never -- if there was any way not to do something crazy well let's just play -- you're ahead, he just never did. there was one particular u.s. open where he had a ball on a rock and still decided -- he did lose a couple tournaments from just being so aggressive all the time. mickelson is the same way now. >> he's still endorsing
6:07 am
products, like there are commercials on that will be taken off the air right now, yeah. >> kevin nielen and others. >> we have not officially introduced him, but john harwood is here. he'll be there at the debate. >> i'm declaring this coffee in honorary memory of or nouarnold palmer. >> tell us where we are. the polls are closer than ever. >> i wouldn't say closer than ever but it is reasonably close. hillary clinton is ahead. >> i saw a national poll overnight showing that donald trump was ahead by a point. >> i don't know what poll that is, but the polls that i've seen that to me have a track record suggest that she is slightly ahead. our poll last week, we had her plus six among likely voters. the abc news/washington news poll had her up two.
6:08 am
>> that's within the margin of error. 4.5 is the margin of error in "the washington post" poll. >> right. but you put those two together and you say, okay, maybe it is plus four. >> you look at nate silver and all he needs is colorado according to the thing at the bottom. and there are some polls that have him ahead in colorado. >> it is possible for him to win the election. i'm not saying it isn't. but he does need to make something happen. i think so. >> i wouldn't go into that debate with that mindset at all. the momentum has been his all along here in the last two weeks. as colorado gets closer -- what was the number? per day she has outspent him on, $650,000 a day or more and it's still where it is right now? >> well, look, we'll see. she's got the -- she's got the more sophisticated campaign. she's got more resources. she is outspending him. and i think that presumption of
6:09 am
both parties -- look, they are ron stage together. >> speak about debate prep. i'm curious how both of them have gone about it, because i imagine they are wildly different. >> well, to me the thing that is most hilarious about hillary clinton's debate prep is the person playing donald trump, and that is felipe rains, a long-time aide of hillary clinton. who has has much contempt for the press as donald trump has right now. so he was in character. but they put him opposite hillary clinton because he's not scared of her. he's been with her forever and can throw anything at her. so presumably she has heard about the worst that she might get on the debate stage. >> did he even do this? >> he has done a more looser form of debate prep. i don't think he has sat for mock debates in the same way
6:10 am
that she has. but look, donald trump -- he's been on television for a long time. he is skilled in front of a camera. he showed that during the primaries. this is a different animal from what he experienced during the primary debates. there was a ton of people on stage with him. time was very short. now he's got to fill more time and that's not the friend of somebody who doesn't have deep knowledge. so my guess is that he has been preparing more substantive answers on policy so that he can come across as his principal challenge to persuade some quantum of people, mostly white college educated voter, that he has the temperament and the ability to serve as president. and that is going to reflect -- >> tell us about this gennifer flowers/mark cuban nonsense. >> mark cuban was announced by the clinton campaign as somebody who is going to be sitting in
6:11 am
the debate audience because he's another billionaire, he needles trump, that is kind of a little psychological warfare thing. so donald trump said maybe i'll have gennifer flowers and she said on twitter, oh, yes, i'm coming. it's a weird situation. personally, i'll be surprised if she's there. but the way that the trump campaign denied it was, if she's there, she's not going to be our guest. so she'll be somebody else's guest, i don't know. >> do you think it will be a circus tonight or what? >> i don't think so, actually. look, there is 90 minutes before an enormous audience. this is the biggest audience that either one of them has been in front of in the campaign. super bowl sized audience. >> or that has ever watched a presidential election. >> that's right. and i think that, in itself, imposes a certain hype on the
6:12 am
moment. when you get close to the presidential election, viewers see this differently. it's a much more serious situation. so i don't think this is going to be a crazy food fight. if it is, i'll be back here tomorrow morning and be surprised. >> juanita broderick said she wanted to come. paula jones said, what about me? which is a song. an kathleen willie said if they brought all the clinton sex assault victims, it wouldn't be just the front row but the whole audience. that's a scuttlebutt. >> there was no press release about that, if i remember. i don't think the clintons addressed -- didn't clinton put out a press release around the flowers thing? a statement yesterday? >> well -- >> against donald trump's? >> well, you're only divulge it from the clinton press releases, is that where you get your info? >> no, but the other parts -- was donald trump tweeting about
6:13 am
the others? >> it was around. i don't know if he tweeted about it, but he tweeted about her. >> it's been around in his twitter feed. >> that's right. >> many people are saying -- >> it's a story on brunch. i can show you where it came from if you would like to see it. >> i will -- >> when you check "huffington post" just go to drudge and see what is there. paula jones, kathie willie -- you didn't see any of that, honestly? >> i see gennifer flowers. but that to me is them saying that. >> that is who saying that? >> that is paula jones saying why didn't you invite me. >> that's what i said. i didn't say trump invited them. >> just remember, hillary clinton was never higher in the polls than when attention was drawn to her husband's infidelities. so the idea that -- you don't know why that is. >> the trump campaign would want
6:14 am
to turn her into -- >> there were a lot of other things happening in the campaign at the time. >> bill clinton's ratings were high, too. >> since we're a business network talking about the elections, "the wall street journal" had a piece over the weekend about those who donated to hillary clinton and trump in the business community. and one of the things -- cnbc had a fascinating piece on this, of the top fortune 100 ceos, not one of them, joseph, and this is fascinating to me, not one donated to donald trump. peter teal who spoke at the republican national convention -- >> hillary clinton has 11. mitt romney had 28. >> doesn't that say something. you talk about a guy who is a business leader and a republican on the major policy issues, on the major policy issues you would think would be good for business. that's what the whole concept of the whole thing is. >> you're putting a false narrative in there. anyone with a fortune 100
6:15 am
company knows that trump's reputation is going to distance themselves because they are half democrats. they don't necessarily contribute to hillary clinton either. >> this is a much more politicized election, i think. people are afraid to stick their noses in. >> on either side. >> andrew wouldn't put up a false narrative. >> i'm just suggesting -- >> andrew, you say it confirms your report. you are not out over your skis on that. we knew that. that wasn't like some groundbreaking reporting that you're doing. the fortune 100 executives weren't contributing. and we know that. did you read the comments? >> yes. >> you see how perfectly pr ready those comments were? for a multi-national company that has across the board clients? >> all i'm suggesting is that -- all i'm suggesting is that donald trump has run his campaign on a large part of the idea that he's a successful businessman and understands business, that he's good for the economy and good for business.
6:16 am
>> he's run against a accomplishment corporate cronyism. >> you're both right. >> and you pointed it out all along. >> you're both right. there's no question that major corporate executives in the united states do not want donald trump to be president. there's no question about it. >> there are a few republicans that don't want -- john, it used to be 70% republicans. now most people are tied with 90% republican support for trump. >> yes. that's where donald -- that's how donald trump has gotten closer. >> he's beating mitt romney in some areas. >> some of the polls are done by very different pollsters.
6:17 am
so, for example, tour poll show hillary clinton doing well among non-college white voters but not as well as romney did. the poll sofr the weekend showed him doing better. these are relatively small sizes when you get to the national polls. there's some variation. we don't know. >> he's never been a ceo, never been running as that, he's more of a founder, sble p entrepren >> ceos don't look at donald trump like that. they see him as a bit of a -- faker, you know, show boat, whatever. >> more of an unknown quantity. >> all of that. but it's also, related to the unknown quality, is that there is no doubt that hillary clinton is -- if you're looking for safety and stability, hillary clinton is the candidate. she's somebody whose husband was president for eight years and part of the last administration,
6:18 am
there was less of an uncertainty. we talk about the uncertainty a lot. >> probably the best known ceo ever. welch was with a list of reasons why he supports donald trump. there's one that gave you -- >> there's some. >> there's a list of reasons. and also, the guy is from harvard that was here. who can say -- you don't need to undercut welch at this point -- hardwood. the harvard business school could be part of the disruption. >> of the disruption, absolutely.
6:19 am
john, great to see you. >> the only disrupter on this set is becky quick. >> we will see you tonight live watching this. and hopefully we'll see you again post-game tomorrow morning. >> i'm tired already. after being out three days, i have read the tweets and had a lot of hefty lifting when i got back here. >> the debate begins at 9:00 p.m. here on cnbc. a lot of heavy lifting. i'm exhausted. anyway, tonight's debate could have an impact on the markets where the strategist from ubs and howard lynch are. the u.s. equity futures are tracking what is happening in europe but not quite as bad in europe down 70. "squawk box" will be right back. i'm anne. i'm a scientist.
6:20 am
why don't you let me... and me... help you out? ♪ you're gonna hear what i say... ♪ i love taking stuff apart and building new things out of it. anne: pal's my most advanced annedroid. [gasps] this is awesome. ♪ oh anne: you haven't seen anything yet. announcer: give your cardboard box another life.
6:21 am
6:22 am
welcome back, everybody. we have a few stocks to watch today. germany's lanxess is buying chemtura at a have of $2.7 billion. lanxess will pay $33.50 a share. that's a premium of 19%. the deal will expand lanxess businesses in lubricants and flame retardants. and samsung is delaying the sale of the new smartphone to
6:23 am
october 1st. the moves are necessary to complete the ongoing recall of that device. as you probably know, samsung recalled 2.5 million of the galaxy 7 note. and barron's says cbs will have considerable leverage with the growth prospects as bright as viacom is dark. >> they make a big play. they have it totally powered down. >> they actually say if you have a samsung note 7, please power it down. >> it cannot be on. and i was going to help her walk along.
6:24 am
if they are totally powered down, they don't go off? nothing happens? is that for sure? >> we can only hope. >> anyway, in an election season full of unknowns, we are just hours away from learning how the first presidential debate will shake-up the markets. joining us for a look at how investors are factoring in the two candidates, maryann bartles is here. i would rather talk about the lead story in "the journal" that s&p companies are reporting falling profits. japan feels better and will do whatever it takes to be generous on inflation. has it been 20 years they have been failing? has it really been that long? any confidence that they have the ability to manage the inflation of 2%. >> in japan?
6:25 am
>> yeah. >> the focus on the yield serve there is hopefully going to be more than pension companies, things like that. the demographics are rough and really to overcome. it's not the ghost of christmas future, is that what we're facing today? >> we are in much better shape. >> can we do it? is it possible to central bankers to change the way they are, not just the way they look at this point. >> which central bank, jeff in our bank, japan's bank -- >> i'm talking about general inflation here. can we get under 2%. how much q&e do we have? >> we are not back there because of the banks. we have a lot of money sitting around, sloshing around, but it is not moving. >> so the banks say it's the lack of demand from companies
6:26 am
that want to do that. the business investment, capital investment is well below what we would have expected. >> you're absolutely right. the real cap at the lack of confidence in washington, i think that is why the selection has so much focus. we have had such instability, let's say, within washington. and that's whether it is presidential, a lot of confrontation. you just saw this in the uk, the populist rising. the populist wants change. >> let's go back to the lead story jen was talking about, why kachlt we're now look at a sixth quarter in a rot of -- row of declines. so why are we still looking at declines? >> you are looking at declines
6:27 am
largely because of energy. but that impact is lessening for sure. and that is rear-view mirror stuff. the key question, i think, is what is the interest rate forecast? what is the earnings division forecast. so those look better -- but there is slowing in other places. >> look, we have seen some stuff reported on early on in early days. but we have seen relatively strong tech stuff so far. and we are seeing a lot of the growth here. obviously the heightened uncertainty in the race and the market. and things the folks should recall is that earnings in interest --
6:28 am
>> i could have had 80 visitors before brexit. we said before, we're actually getting a chance to test the counter factual that this is disastrous. and we did. why bother to interpret things like this? >> one, there's a growing sense that the election can move the market. up doubtedly among investors. number with, there's a growing sense we are in the political economy. >> those are both different consensus. >> is it a buying opportunity or do you sell into it? >> if something emerges from the debate that changes the calculus and changes the congressional calculus, where you not only have a leading candidate but congress unified behind that candidate, that's probably a
6:29 am
game-changer. but ultimately if you look back at government policy and how it relates to interest rates and earnings, it is not really -- >> this all depends on the political prism that you're looking for. and whether you think a continuation of policies that never got us out of 2% after eight years, that's stability one side would argue, the stability in the markets, and others argue that's the last thing we see, the continuation of the policies that didn't allow us to get above the speed for the economy. that's the same political prism. so i do not care about the opinions. >> joe, what we're talking about, you're absolutely right. we have done what we can with the monetary policy. now fiscal policy has to step up and that the next drivers moving into 2016 have to be more fiscal drivers to stimulate business investment, to stimulate the economy and the get more
6:30 am
inflation. but there is a positive headline in "the new york times" talking about wages moving up. and how there are some in the united states that are starting to move out of poverty. you don't see headlines like that very often. so we are starting to see some improvement. and in getting back to japan, a lot of people are starting to see wages go up because there's a shortage of labor. so you're starting to see some signs. it's early stages. they still have a lot that they need to do, but the mere fact they're starting to see some pressure come into the economy is a bright spot. >> and in fiscal policy, it's in the eye of the beholder. we could be talking infrastructure or a billion -- jobs, i don't know, you're talking about lowest tax rates and less regulation. what do you want congress to do? >> all of it, joe. all the above. >> that's where we get bogged down with which side --
6:31 am
>> it's true the central banks are out of gas. >> i am with jim grant now and can make things look different but can't really do anything in terms of the -- the appearance looks good but doesn't change the fundamentals. they are out of gas, except for talking. plenty of that left. >> i would just argue that has been the basis of the reluctant rally. people have not believed in it. >> the market is somewhere up here but none of us know why. is it fumes? >> because the sixth straight quarters are really based on one or two sectors that have taken away -- it away. the market hasn't gone anywhere but 80% of the market has gone places. but there's a specific sector that -- >> if it was matching gdp it
6:32 am
would be much easier. thank you. when we come back, facebook making an apology for big advertise i advertising miss. -- as we look at the s&p 500 winners and losers from last we week. ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't.
6:33 am
and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. ♪ we've been hearing so much about how you're a digital company, so you can see our confusion. ge is an industrial company that actually builds world-changing machines. machines that can also communicate digitally. like robots. did you build that robot? that's not a robot, that's my coworker earl. he builds jet engines with his human hands. what about that robot? that is a vending machine, ricky. john, give him a dollar.
6:34 am
yeah. well, we gotta hand it thto fedex. glasses. they've helped make our e-commerce so easy, and now we're getting all kinds of new customers. i know. can you believe we're getting orders from canada, ireland... this one's going to new zealand. new zealand? psst. ah, false alarm. hey! you guys are gonna scare away the deer! idiots... providing global access for small business. fedex. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities.
6:35 am
we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
6:36 am
welcome back to "squawk box" here on cnbc. here's what we are seeing on this monday morning. it is what we saw on friday of last week. the losses are here from the last 15 minutes or so. the s&p futures are down by 85 and the nasdaq is down by 23. the s&p and the nasdaq are both in negative territory. shares of deutsche bank hit a record low this morning. a report in the german magazine "focus" says the german
6:37 am
chancellor angela merkel ruled out state assistance for the lender and rejected interference in the u.s. ongoing justice department investigation into the firm. but the company's ceo says this morning that the company has never requested government day and is determined to resolve problems on their own. if you're talking $14 billion, that's a massive capital raise that the bank has to put up. and the stock is down by 6% this morning. okay. is that me or you? could be you. i think it's you. it's back to me. >> business news this morning. with advertising kicking off today, madison avenue buzzing about facebook admitting to a major measurement mistake. julie boorstin is here. it's a biggie. >> facebook greatly overstated how much time on average users were spending watching video on the platform. they excluded video watch for fewer than three seconds from the average viewing times.
6:38 am
>> when you accidentally click on something and you're like, get me out of here! >> more likely if you saw something out of your news stream and saw for a second they didn't count the one second in the average. so in this overall average viewing time, this is over the past two years. and it shared this with advertisers competing with youtube and stressing to everybody including investors that are focused on video. the duration overstatement by reportedly by 80% did not boost facebook's revenue because advertisers pay, not based on duration, but on the total number of times the video is viewed. so facebook apologized. the vp of video and marketing partnerships david fisher writing, while this is only one of the many metrics marketers look at, we take any mistake seriously. our clients' trust and belief in our metrics is essential to us and we have to earn that trust. and on this news facebook shares ened down 1.6%. premarket they were trading
6:39 am
fractionally larger at light trading. wells fargo issued a note saying they are not worried about the implications of this step saying ad agencies are worried on the cost per view rather than viewing time. we'll see if facebook's arrives use this now. >> the question is, do you get a view count for somebody who trips on it for three seconds? >> well, yes. because basically you always do. >> so i try to shut it down because it accidentally starts playing on my computer. the first thing i do is go to the mute button and then click it off and away. >> facebook pays on the total number of views. even if you see for a second. i asked about this because some advertisers opt to pay if you watched for ten seconds or watched the entirety of it. so advertisers -- do you want to pay for a second click, ten seconds or for a completely different view. they say that neelson says you
6:40 am
have an impression of a brand. >> rather than tim ply case of facebook, offer the news organization today who have changed the way they approached by media at the app side and news organizations spending more and more time to do video because they heard the numbers from facebook over the fwoost years and said, this is where the action is going and the viewer is going. because the numbers looked so positive, even though they were completely and utterly wrong -- that could change the way the business world is working and how -- >> but i think there's aisher issue than that. not only is this chasing, but are we going to trust parties to self-report? because that's what we do with facebook and others. you may argue with neelson but there's an independent third party. >> facebook partnered with a company called mote.
6:41 am
so they have had third independent parties. facebook didn't want to open the flood gates to let anyone access the data because there was a lot of personal numbers in there. last week they announce d that you can use comscore, oracle, any of the companies to use measurement. >> you have companies like proctor & gamble who just advertise out there. >> it's the advertisers, contact creators, everybody has decided we're going video, video, video. >> being able to change in terms of what type of advertising. everyone gets data. it's interesting in reporting out this story, i got a look at what the dashboard looked like if you are an advertiser. if you are an advertiser, you're
6:42 am
based on the clicks. but you get a ton of data. i think the information about our videos are viewed from an average of seven seconds. i do think my boys love to get the different types of data and did have the independent parties. facebook realized he's not responsible for the measurement at all, because they announced more people last week. facebook and twitter are dominating and everybody wants a piece of it. >> fair enough. thank you, julia. when we come back, the squawk ceo phone call is in effect. stick around, we'll be right back, if where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this?
6:43 am
you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
6:44 am
6:45 am
welcome back, everybody. the supermarket aisles are getting crowded, online especially, retailer walmart is offering curb side pickups in certain u.s. cities with amazon planning a similar ordering and pickup system. fresh direct has news to share with us this morning. we'll bring in the ceo jason
6:46 am
ackerman. he's participating in "the new york times" food for tomorrow conference that is touted as the leading conference in the united states. jason, great to see you. >> thank you for having me. >> i'm a heavy user and have been using you for five times multiple times a week and it has changed my life. it makes things so much easier. big news this morning is that you've got about 189 million of funding that you just closed. why don't you tell us what the funding will go for? >> yeah, great. so we are expanding our biggest geography, which we haven't done in quite some time. we're getting behind, you may have heard our new business called food kick, more of the one-hour service for less of a planned customer. we're expanding our prepared meals area, so we have a lot of new inhave to ovationovations c >> you can go online, the food cutoff deadlines for today for the food tomorrow.
6:47 am
and it delivers to your door. you're talking one-hour delivery for places to get it out that people say, i want it now delivered to your door. >> there are a lot of shoppers who spontaneously make decisions. so this one-hour service is different than fresh direct in that it can be there within 60 minutes. >> do you think you'll compete against the supermarket down the street or starting to compete against places like amazon fresh, which i don't think is delivering in new york city yet, but in other areas. and now uber eats and all these people who are delivering food to you on demand. how do you think about that? >> well, we are expanding our share of existing customers. so a lot of times they are made by their planned shop. but they run out of stop, forget something, or have people over friday night and it is that day. so food kick is really about that kind of spontaneous need for food. >> who is your customer going to be? the urban customer in a place like manhattan, brooklyn or queens, or you have done a lot
6:48 am
over the last couple years to really reach out to the suburbs and other areas, too. so who is your core customer? >> so food kick is focused on the urban dweller, more of the on-demand planner, maybe less kids or no kids in the house. so they are more spontaneous. and what we're finding right now in brooklyn where we have launched the service is we're both acquiring new customers who weren't in the fresh direct system and are expanding to the share of customers to involve more of the system. >> i've been using you for about five years and one thing i noticed recently is there is probably problems that are good problems to have, just harder to get delivery times, stuff doesn't arrive probably frozen the way i would expect because you're stretching your distribution system from where you guys are delivering on a few of these issues. talk about those growth pains, how do you handle them? >> it's a really tough business. we have been out of capacity for a building that will give us a $1.5 billion capacity.
6:49 am
but for a long time we have been stretching our business a bit and the funding will help us to take care of those issues. >> how much longer do you go as a private company? is there a point where you go public? >> there's always that point. the fund is going to take us along a five-year plan, but along the way we'll see. >> five-year plan starting today or three years ago? >> we are on the plan. we are on the plan. >> were where he on the plan? >> two years into the plan. >> do you have kids, jason? >> i do. three kids. the bobblehead shot. >> i have to get on my pr people about that shot. >> the new york post. do you like the picture? >> do you want to take this home? we have and extra copy? >> they just put the head on there. >> yeah, that's a little bit of a larger sized head. >> congratulations. >> thank you, guys. >> she says congratulations.
6:50 am
i did, too. coming up, the election effect on small business. a surprising new poll result from entrepreneurs. we'll have that right after the break. tonight, showdown in long island. clinton and trump facing we'll tell you what to expect right after the break. and cnbc kicks off tonight, and "squawk box" will be right back. guess what guys, i switched to sprint.
6:51 am
6:52 am
6:53 am
sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit
6:54 am
this election and its outcome may matter more to main street. >> with about one-third of small business owners undecided who they are voting for, we caught up with a few businesses to hear their thoughts on taxes and regulations. >> one of the things that is a concern for us, we don't have the capacity to increase everybody's payroll to over $900, a doubling of everybody's pay. >> you double that with a tax burden everybody is facing right now, and instead of supporting
6:55 am
and propping up the engine the backbone of america, we are going to be filing endangered species act claims on small businesses. >> and it has to be reauthorized by congress, and it becomes a circus, if you will, and it's exstee extended so late in the year, and we would like to see them put in the tax code. >> they were top issues for 2016, and health care reform is what we will be hitting on. and one-third still undecided, and 25% say they are voting for hillary clinton, so it's interesting. we saw her last month roll out a more detailed small business sphapb and didn't do much to sway the vote. >> it was interesting what your one guest said, about the
6:56 am
uncertainty factor. that's what we talked about for six years at this point, uncertainty, not knowing what the rules of the road are going to be. >> uncertainty at historic highs. it's interesting, so -- >> thank you. coming up, national urban league ceo is going to talk to us about the unrest this charlotte. "squawk" returns in just a moment. whether it's bringing cutting-edge wifi to 35,000 fans... or keeping a hotel's guests connected. businesses count on communication, and communication counts on centurylink.
6:57 am
6:58 am
6:59 am
are you ready for the super
7:00 am
bowl of politics? one of the most-watched showdowns in history happening tonight. who has a better game plan for the economy? how the markets may react. that's straight ahead. a group of senators want answers and are calling for an investigation. senator jack reid is here. and then visions, aol ceo here to talk advertising, and yahoo's security breach. the second hour of "squawk box" starts right now. welcome back to "squawk box" here on cnbc. the futures at this hour have been anywhere from -- i don't
7:01 am
know, i thought i saw 100, but -- >> i definitely saw down 80 plus. >> on the way in we don't -- >> yeah, but we are down less than 70, and down 69 on the dow jones, and the nasdaq down 24 points. crumby session on friday. didn't like watching that. >> no, it was a lot. we were down, but still for the third quarter, all three of the major averages are up. >> but down for september. >> yeah, and nasdaq is still up. because of apple. let's look at what else is happening. and we are keeping an eye on the shares of deutsch bank. capital rising is not an issue and it says it never asked for any help. and tonight's first presidential
7:02 am
debate could decide for as many as one-third of the voters. >> that's tonight? >> that's tonight! tonight! >> got to stay up late, joseph. >> i will see. i'll see. >> i am definitely staying up for the beginning of the debate. >> you don't want to be up until 10:30. we have a responsibility. >> we have a responsibility and will have to talk about it in the morning. >> you will see the highlights. and it's offering buyouts as much as 80,000. >> we are watching the price of oil this morning. crude rebounding after it was said all options are there for a freeze. crude prices, take a look,
7:03 am
44.94. >> doesn't say me? >> it says anchor, and you are an anchor man. >> stay classy. there it is. such a lovely number, $2.25 a gallon, and analysts expect the recent increase to level off in the next few weeks. $2.25. who would have thought? and feds speak, today august new home sales comes out at 10:00 a.m. eastern and there's a trio of fed officials speaking today. oh, good. minneapolis president, kashkari, and kaplan and fed governor, dan tarullo, all speaking today.
7:04 am
>> i am sure kashkari will say something else. >> he will speak to his too big to fail. >> he said it was inappropriate to talk about what they may be doing right ahead of a meeting. >> so december, what do you say about december? >> i would put it 25% odds they raise in december. >> only 25. so not at all after that first one? >> there's just a lot that could happen. >> 5%. >> less than one -- really? >> yeah, i don't think it happens. i am bored by it, frankly. >> that makes it interesting -- >> just set very high bars for what it would take to raise rates and gave themselves a lot of outs. >> get started. >> we should tell you there is
7:05 am
more fallout for wells fargo. a notary leased saying his firms strong support for the wells fargo ceo is waiving. wells fargo is bigger than the ceo, not withstanding a good financial track record during his tenure there should be no more excuses to the lack of answers to key questions, and his note details five issues that they need to address including how long the problems could continue and what wells is doing to impact its customers. it's a long way from the $45 wells is trading at now. senator jack reed will join us, demanding an investigation as to whether or not wells fargo broke labor laws. there has been a few filings of employees who were asking for
7:06 am
billions of dollars for employees that did not follow the rules and did not meet the sales requirements that were there, and as a result were punished, fired or setback. anyway, he's our guest coming up at 7:30 eastern time and we will talk more about it then. and tonight's presidential debate will be honing in on who has the better plan to grow the economy. joining us right now is david bailin, and he is global head of advantaged investments city, a private bank, and guys let's talk a little bit about this, and part is politics and part has to be what has been happening with the fundamentals of these companies. we thought the third quarter would be the time we would see the real earnings growth and that turns out not to be the case, at least based on expectations right now. what do you think that means? which is more important, the politics and policy or is it this idea that companies still are struggling to get earnings growth?
7:07 am
david, what do you think? >> it's definitely going to be politics for the moment, and we are at a point where we are trying to assess what the actual policies will be that would govern the new presidency of trump or clinton, and i think that is leaving the market very unsettled. volatility is extraordinary low on one hand and then the policy is extraordinary large, and it's an unusual circumstance going into the first debate. >> it's partially because people think these are plans for the election and once you get in there you would have to pass anything by congress, so maybe we don't see a lot of change. >> yeah, with the last years with barack obama, it's tough to get things done and i think clinton is viewed of more of the same, which is a little more certainty, and trump is the wildcard, that at least might be worth some more volatility in the short term for the markets. >> if you look at policies, i guess that's part of the question, do people look at policies or personalities, and
7:08 am
how are we measuring this whole thing? >> neither candidate have super friendly policies, and clinton was pulled far left by sanders, and trump is not typically with a we see with free market, and trump is the wildcard that the markets grabble with uncertainty and that's what they struggle to price and some of the stuff that trump is -- has suggested, one of which he would replace janet ye yellen, and one thing in the delicate balance in the low level grow, and inflation too low and central banks that continue to proud markets further, and i think that's where the trump presents more of a problem. >> maybe that takes us back to the fed, david, and just this idea of will they or won't they raise rates in december? is that the right move?
7:09 am
our economy is doing better than probably 0% interest rates would present, and what does that add up to? >> the fed basically took a very, you know, step back, at the last moment in terms of what they saw in the economy and did give it an indication they would be willing to move ahead in december, and when they did that in december it was not pretty for january. we are not dealing with a subtle difference, and trump came out said he would revisit nato and ae vase rate some of the transactions that have been done over time and there is a lot of people things count on and one of them is certainty, the word of america, what we do and mean and say, and i think there needs to be specifics about what he
7:10 am
would do, and we are waiting to see the specifics about what exactly he means he will do, and that is very important for investors and given how low it is. >> what is the bias in the market? do you think there's more room for upside if the market feels soothed about these issues, or is there more potential for downside because we are setting near all-time highs. >> and there's more room. >> which direction? >> on the downside. we have been telling clients they can hedge their equities at this point because of the fact that down sides are significant if markets get signals that are much more uncertain. >> it's what people were saying before the brexit, and if you were looking at that you didn't expect it to happen and it happened and the markets reacted just fine, particularly the uk market. >> we are not dealing with a country that is deciding to
7:11 am
leave the eu, and we are dealing with the economy of the free world and what that person may do if they get that position, and that's very difficult. you are talking about the largest event in the world in terms of this election. >> what do you think? >> i think there's a lot of interesting analogs between brexit and the u.s. presidency. it turned out to be a bull market event in a weird way for equities, and so supposed trump wins, credit spreads rise -- >> i have a question on the brexit issue. in the immediate term it looks like a positive, right? and today there's a big headline about the new study that shows more companies in the uk are planning to look -- to leave the country and what that means for the long term. it's a strange disconnect that has gone on in terms of how people look at it.
7:12 am
sometimes they say it's better than fine, it's a positive, and when you look underneath it -- >> and ceo's have been asking fought to make it a quick exit. >> yeah, they have not done anything yet. they have not gone through the process which could be a tricky and messy process and they have not done anything except do the vote, and the central banks reacted strongly, and if you look at the global yield curves, they have a lower for longer support from the central banks, and the point i was making about trump to the extent the market did get skittish based on the uncertainty of his policies, and where they were talking about three hikes for 2017, they lowered it to two and then one -- >> i guess back to joe's point, are they just whitewashing the situation or fixing? >> who knows?
7:13 am
there's also the big divergence of opinion on whether it's good to stay at zero or curious at this point? i don't think i would shed too many tears with the thought of somebody other than janet yellen, and they are both from berkeley, for god sakes. what has she done except not raise? i can do that. i can go in and not raise. >> there's some degree of re-evaluation of what the central bank policies are doing. >> yeah, the world would not end if -- if she was appointed by a democrat, and other people get in, and they appoint people they are more comfortable. not the end of the world. not like people losing greenspan. >> yeah. >> thank you. >> the super bowl of politics kicks off tonight. the head of the national urban league, marc morial, joins us after the break. catch all the action here on
7:14 am
cnbc starting at 9:00 p.m. eastern tonight. "squawk box" will be right back.
7:15 am
7:16 am
welcome back to "squawk box." last time we looked, it was down. down 25 on the nasdaq. now to the unease in charlotte,
7:17 am
north carolina. police videos of the deadly shooting of keith scott, police killings are likely to be a big focus. and marc morial is the president and ceo of the national urban league. >> good morning and good to be with you. >> before we get to the debate, you saw the new video that came out. >> uh-huh. >> did it change your mind about anything? >> i think people should focus on what the issue is, and the issue really is did the officer have any reason to feel that his life was threatened? that's the standard for the excessive use of force. i did not see anything on that video, and of course it's not conclusive that would give rise to the officer feeling threatened by the actions of mr. scott. >> seems to be a big debate about whether he had a gun in his hand at all and yet you hear but don't see. when i say you hear it on the tape, and the officer saying put down the gun, put down the gun, do you believe he was lying?
7:18 am
>> let me say this. it's important you start at, i believe north carolina is a state where it's legal to carry the gun, so the fact that he is carrying the gun, and the issue is was the gun being held in a threatening posture. the use of force is very limited to where the officer feels his life is threatened or her life is threatened, or two, a third party's life is threatened. that's really the -- i think the standard. what is interesting to me is compare in contrast charlotte to tulsa. little news coverage about tulsa because tulsa very quickly released the tape and the tkafplt made a judgment call that charges should be brought, and in charlotte where if they would have released the tape three days earlier. >> do you think we are living in a reality television world and everything has to be done ins n
7:19 am
instantly, and on the police world, they say we need time to investigate and there's so much public pressure that we are trying to placate the public as opposed to look at all the information. >> every case is different, and i agree, traditionally in the presocial media world that was basically the rule of thumb. we are on live tv now. >> part of the concern, at least some reasons that have been given in the past, they don't want to taint a jury pool. and chicago used that, and the situation in tulsa was clearer. >> i think the reality is, we're in a different time. had charlotte's law enforcement officers said, look, it will take us a week or ten days, but
7:20 am
you see, the police chief made a mistake. you don't quote not release the tape and then say i saw the tape and characterize what you saw in the tape. if you are going to tamp down, then what you have to do is say we are not going to discuss or release evidence for ten days, 20 days -- >> i agree with you, you need -- if you are going to use excessive force you better have a good reason, and that should be -- that should have nothing to do with race, whatsoever. there should be only certain times when they use a gun, and suddenly, and even in north carolina it's bogged down in racial over tones even the policeman was african-american, and then it results in what i don't think is good for anybody, where neighborhoods gets disrupted and property gets destroyed, and if we looked at it, there should never be
7:21 am
excessive use of force when it's not called for, you should be color-blind. >> yeah, and i double-checked this this morning, and from what i understand, from reading news reports, the protests have mostly been peaceful after the first night where there was violence and i support the right to protest but i do not support any violence. >> let me ask you a question that relates to the debate. this is donald trump back in august on race. he says, right now you walk -- this is to a group of african-americans, and right now you walk down the street and you get shot. look at the statistics. we will straighten it out, and if you vote for the same politicians, you will get the
7:22 am
same. >> the issue is what is your concrete ideas to do something about it. that's really the issue at hand. not being diagnostic, being prescriptive and coming up with solutions. tonight -- when i think about tonight i think of three things. i think about temperament, and i think about talent and that's all about presidential leadership x because it's live tv, it's also about timing, so it's about one liners from time to time, too. people love that, and we all love that and remember it. >> do you think the democrats have failed the african-american community? >> let me say this, i think the combination of leadership in this country have not done what should be done to address the systematic problems, and we have a set of challenges, but a grand set of successes.
7:23 am
>> is the choice good or not good? are democrats too tied and bep holdened to the teacher's unions? >> i think what we don't have in schools is the kind of commitment -- yeah, let's try new ideas and let's make sure we resource schools correctly and have good teachers and class sizes. >> choices -- that is different, and that -- when i think of democratic ideas, and solutions to problems like this, all i see is teachers unions and it doesn't seem like we are getting anywhere. >> the problem is there's no evidence where quote, choice vouchers have been tried and had success. >> it came up repeatedly, and do you believe donald trump is a racist? >> i believe that donald trump is made racist statements. i can't examine a person's heart
7:24 am
or mind and i don't characterize a person in that way, and i do look at public people's public actions and statements about building walls and targeting muslims, those things fall into the category of bigot tree and racism. i never characterize a man. i can't see into his heart, his soul, his mind or intentions, but judge public people by their public statements and actions. >> thank you for coming. good to see you. and we have the details after the break of the "magnificent seven." and then failing to pay overtime to employees. senator jack reed joins us to tell us why he is requesting a federal investigation. "squawk" will be right back. us,
7:25 am
this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit
7:26 am
7:27 am
coming up, did wells fargo violate labor laws? we have senator jack reed, and you can join us right after the break to talk about that. and take a look at u.s. equity futures at this hour. dow opening down about 71 points off, and s&p 500 off nearly 10 points. we're back in just a moment. what powers the digital world? communication.
7:28 am
like centurylink's broadband network that gives 35,000 fans a cutting edge game experience. or the network that keeps a leading hotel chain's guests connected at work, and at play. or the it platform that powers millions of ecards every day for one of the largest greeting card companies. businesses count on communication, and communication counts on centurylink.
7:29 am
thiswell we thought geench programmed machines to talk. ge is an industrial company that actually builds world-changing machines. machines that can talk to each other digitally. hello? they don't talk to each other like that, ricky. shhhh, you'll anger it. he looks a little ticked off now.
7:30 am
welcome back to "squawk box." among the stories front and
7:31 am
center, three fed speeches on the calendar today, and fed president kashkaris set for appearances, and they will be voting in 2017, so you don't think they will be raising interest rates now, and maybe they will next year with these guys. get ready for a six consecutive set of earning declines. that will be the longest slump since 2008, and analyst currently see a 2.3% drop in the profits of s&p 500 companies compared to a year ago. snapchat unveiled new camera equipped sunglasses that have a button activated camera that cost $100, and you look a little dorky -- have you seen them yet? they have cameras and you go, bing -- >> i kind of think that is cool.
7:32 am
>> you have never cared. >> yeah. >> think of the karate outfit -- >> i was thinking that would be a good christmas present for the kids. >> they would look much cooler than google glasses if you remember those. >> right. >> what happened to the bad comparisons for oil companies falling off the year-long thing so we no longer have -- >> yeah, and not only that energy companies are at a smaller percentage. >> a year ago they were reflecting the decline -- >> they point to consumer companies like ford and dupont -- it's not just oil. >> so it's not just energy. things are not good across the board. this was -- i was, you know, trying to sleep last night, and my daughter came in with -- nothing like coming in, dad, dad, dad. and it's like, what? to hear that, it was like 9:30
7:33 am
to 10:00, and i couldn't fall back to sleep. arnold palmer died yesterday from heart complications, and he won seven championships, and you see so many shots of him down at augusta, all the way to this year during the tournament when he was there, but he didn't hit one of the first drives, and he ranks as one of the most important figures in golf history, absolutely, turning the game into a must-watch tv, and his long-time rival and friend, jack nicklaus. much more on his life and legacy in the show. >> he was not just a golfer, and
7:34 am
one of the most well-known sports figures in the world. >> yeah, and one of the most successful marketers, and co-founder of the golf channel. >> you think pens oil, and you think -- >> what about the drink? >> yeah, all the time. the cboe is buying bats, and it's just about 31% cash and 69% cbo holding sock, and that would be based on the closing price of its holding stock of $70.30 per share. we should say that the ceo of cboe saying the acquisition expected to strengthen our position, and it's a transformative step in our growth strategy, and so many of the exchanges have consolidated over the past couple of years
7:35 am
and this is the latest of that. a group of eight senators are requesting an investigation into whether or not wells fargo violated labor laws. the emerging poor trait of the company's behavior suggests potential widespread exploitation of its own workforce in order to facilitate the widespread exploitation of its customer base. joining us on this, jack reed, one of the senators that signed the letter. why this approach to try and punish the bank? it seems like on face value there's different ways of doing this. >> the evidence that was uncovered by the consumer financial protection bureau among many agencies including the city of los angeles and the currency pointed to abusive practices, and very intense
7:36 am
motivation to sell, and also suggestions that people had to come in on their own time, and you know, even if they were wage earners without compensation, and all of that together with a rash of individual suits that are being filed on behalf of former workers suggest this is not an isolated incident, this could be widespread and it's the responsibility of the department of labor to investigate these types of serious national charges against large institutions. >> it's not the first thing you would think of in terms of you think of the action that the employees were undertaking, and i don't know, it seems like is it easier to go the labor route or fraud or something like that, senator? >> first of all, you have workers and many of these tellers are making about $12 an hour, and they were hourly wage earners and being forced to come in on their own time and stay latent compensated. it's not only a violation of the law, it seems to be inherently
7:37 am
unfair, and they were losing money making money, and it's part of the aspect that must be pursued. >> what is the next step with this? what would be the final determining -- what would you look for in terms of compensation for this? >> well, a think as the department of labor would conduct the investigation and determine if it's substantiated by the facts and the evidence, and they would make a calculation of the wages that were lost, and employees would be compensated for that, and those steps are rather routine, and again, part of what we are trying to do is to insure that this type of behavior is not something that is copied by other institutions under the financial pressure of making their prophet. if we are stepping in early and effectively, we will not only
7:38 am
protect workers but also prevent further of the expansion of this type of behavior. >> do you think that mr. stumpf needs to go? >> i think the evidence today is very compelling that this system was not only tolerated but encouraged, and there was serious violations of consumer accounts and consumer trusts, and that somebody has to take responsibility and the board has to act, and they have to look at all the evidence, and i think that has to be on the table and everybody's salary, not just one or two individuals, and then, again, they have to make a decision for a most of reasons of whether he can leave the company effectively, and that
7:39 am
should be done promptly. >> and some say that's why the bureau needs to exist, and it was not the bureau that discovered it but it was the los angeles times? >> they had whistle blower complaints in 2013 before the article. they were beginning to look at this, and then the article broke and of course the city of los angeles, i must commend their activities, stepped in dramatically and these were three independent actions. not only did they start it, in their view, at least before the article, and without their presence, this could easily have been something as a small localized los angeles problem that would have been dealt with probably for years in court. >> that kind of goes back to andrew's point for the whole question, if they got complaints earlier it took them longer to
7:40 am
deal with these issues. i am not sure that's much better than wells fargo management? >> i think there's quite a bit of difference there. the management still would be in denial rather than being paled $100 million or or more. without the impact of the nation, and as well as the financial protection bureau, you would not have had this result. i think if they were on the case, this would have been extended, delayed, and it would have been localized into los angeles, and this indeed, is evidence, and able to affect the outcome and the behaviors of companies, and not just punishment, but more importantly to send a signal to the rest of the banking community that this behavior will not be accepted. >> senator, thank you for your time today. we appreciate it. >> thank you. when we return, aol's ceo, tim armstrong, talks about his
7:41 am
thoughts on the yahoo data breach and the possible sale of twitter. in the meantime, check out the futures. "squawk box" will be right back. it's peyton on sunday mornings e-man hey what's up, peyt? you know i've got directv nfl sunday ticket - i get every game, every sunday. all in hd. yeah. i know that. so you want to come over? i'll make nachos. i can't right now, man. i'm playing.
7:42 am
alright. i'll pencil you in for tuesday. get nfl sunday ticket - only on directv. and watch live football anywhere. switch today and get $100 reward card.
7:43 am
seconds can mean the difference between life and death. for partners in health, time is life. we have 18,000 people around the world. the microsoft cloud helps our entire staff stay connected and work together in real time to help those that need it. the ability to collaborate changes how we work. what we do together changes how we live.
7:44 am
welcome back, everybody. so many pictures, "magnificent seven" topping the box office. that movie features denzel washington and a small group of gun fires who were hired to protect a small town from bandits. >> let's talk about the latest innovations in ad technology, and joining us is tim armstrong, the ceo of aol. we need to talk about the security breach with yahoo for a second, and there are lots of questions about the breach and perhaps the implications for this particular deal closing. will it close? >> let's start with what the
7:45 am
situation is, and maybe answer more questions. the situation right now is we have the integration work going on and that's the deal we signed with yahoo. the date tau issue we found out about it last week, and we are working with yahoo to get into the data situation, and we are in the early stage and i will not have a lot of answers for you. >> verizon is ticked off because you found out about it so late. >> yeah, what we are doing is calmly going through the situation and looking at it, and since we just found out last week, it's very, very early in the stage, and i think we will basically work with yahoo on it and see what the implications are, and secondly we have very close working relationships with the yahoo tomorream, and we wilk through that together with them and really verizon share holders
7:46 am
on our end of things, we want to be protective of and watch out for and it's the consumer trust we are focused on. >> does that it depend on how deep the security breach is? >> i wouldn't comment on. if we were further on in the process and had something to say about it, we might be able to comment. but we are early in it, so i think it's too early to speculate or comment. >> earlier today we were reporting on the news, facebook overstated the amount of time people were watching videos on the platform. is this an opportunity? >> it points out how important video is. if you look how important it is for ads and video is important. we are partnering with family insurance, and they are videos that will highlight stories of
7:47 am
individual consumers using 360 video, and what you look at what facebook is doing with video, they are using a platform, getting video in front of many as possible and we have taken a different strategy, which is doing highly engaging and super brand deep videos over all and around our brands and third-party brands, and their scale is engagement, and that's our strategic differences. >> you look at the numbers, and you have your own numbers and you probably have a better sense than anybody direct sh, and the watchers towards videos, and some in part because of what facebook put out, and the switch in business model, if you will, was that the right decision? >> well, we made that same decision as a business. you go back two years ago, almost 0% of the traffic was
7:48 am
off-line, and now about 40 or 50% of our traffic comes from them, and we made the most serious move in the media space into it and i think it was successful for us to do that. and i look at the facebook numbers and look at a facebook specific issue about how they are counting. we have a different strategy around counting, which is we want to move really towards engagement matrix over all, and for our business we see facebook as a very successful platform, and we have our own measurements about how we look at it, and if you are a content media company and you don't have an off-network strategy with facebook and snapchat -- >> you don't think that will change how much money is allocated towards online video over the next year, whether it's facebook or others? >> i don't think facebook can move fast enough, and there's 3.5 billion more people coming
7:49 am
online and they will be mobile first, so if you just invest in traditional ways of hitting them with video, you will miss that entire market. when you have somebody with video and with a great video piece of media, and consumption rates are higher, and you can get 40% increases in online versus off-line. >> one of the reasons why verizon is buying yahoo, so they could create something that could rival google and facebook. do you think you could take them on? does this mismeasurement issue provide an opportunity for you? >> if you look at google's announcements this week, they are tying video into search and things like that and that's their strength, and facebook is correcting their measurement things and it's all tied to social. and tkpwaog sl search and facebook is social, and if you
7:50 am
see a fleet of videos or content as a consumer, you go to the brands you trust and we are trying to build the largest brands. >> it gets back to the state of breach, and as a yahoo user myself i can't believe they don't tell me anything, and you are on the hook for millions, and aren't you mad they did not bring this up earlier? >> i have been on the program and talked to you about this, the core of the basis of the relationship you have. i think the real issue is how do you -- first of all, we're in a world -- the world has changes, security and data is going to be something that goes on for hundreds of years in the future, and we are at the beginning of the stage. i think yahoo tried to do the best job they can. nobody at yahoo wanted the situation to happen the way it did. >> yeah, the idea that they
7:51 am
didn't held out and tell you, and they know they knew about it at least in july. does that make you feel personally betrayed? >> in the deal we signed in the auction process because we were one party out of multiple parties and the question that has to be answered is, when did they know and when was the alert set up to let us know, and that's the stages we are going through right now. i would say the process they went through was an unusual process from an auction dynamic standpoint so all of theirs was in the same situation, and i think what we are trying to do right now, and i think it's a situation where we do want to separate the data breach from how we work with them. >> i get that entirely. i guess my question would be, "the wall street journal" was reporting, one of the terms of the contract was there were no data breaches and contractually are you allowed to go back, and what does the contract say?
7:52 am
>> i think on both sides the contract has very good protections in terms of going through that type of a process on a sale process, so i would say, look, there's incredibly smart people on both sides, and our interest level is protecting consumers and verizon share holders, and making sure that yahoo, the deal goes through and we have a great relationship with yahoo on the way through, and we are at such an early stage on this, that i think if we comment on anything right now, a, it would not be accurate, and b, this is a case where it's a caused for methodical walk through -- >> calmer heads, and i get it. i am mad for me and, i am mad for you, too. >> and the speculation is the deal does not go through, verizon will be interested in buying twitter? >> i would not comment on that, and be careful, and it points to something incredibly important,
7:53 am
the consolidation factor and the scale factor in the businesses is becoming critically important. the deals that are happening and you look at the 3 additional billion consumers, and the $90 billion market opportunity, and there's a real trend where people are waking up and realizing digital is massive. >> i know you will not talk about twitter as a verizon bidder, and other people look at sales force, and does that make sense to you? >> i think, again, you have to take a giant step back and say, what is the landscape. one of the things we did at aol is we built a map of the universe, and we said where are all the opportunities in the companies, and there's ten or 12 or 15 companies that are going to compete for the 7 billion
7:54 am
people, and so the reality is business and consumer have kind of mixed together, and if sales force is interested in that, may not be directly in the strike zone from the outsider looking at it, but you don't know what the long term is. >> i want to see that map. >> google? >> i wouldn't be surprised if anybody on the map is interested in anybody else on the map at this point because the consolidation factor, and many are going digital and it's important in the consumer and media space. >> politics could be great for you. >> did i answer all your questions? >> very well, thank you. >> the verizon dude is now on sprint, now. >> no way. >> oh, yeah. >> it's been beneficial, because verizon has moved on, so have you seen the jamie foxx ads? >> oh, yeah.
7:55 am
what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
7:56 am
7:57 am
when we return, donald trump and hillary clinton ready to face-off for the first time in a presidential debate, and we will talk about the message from both candidates. "squawk box" will be right back. guess what guys, i switched to sprint. sprint? i'm hearing good things about the network. all the networks are great now.
7:58 am
we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit actually making your body feel better... making your whole day better.
7:59 am
hi, everybody. i'm boomer esiason. and that's exactly what tommie copper does for me. now, they call it "wearable wellness" and they have infused it into everything they do. sleeves that help support aching elbows and knees. tops that can help ease your overworked, sore back and shoulders. bottoms that help relieve stiff thighs and hips. and even socks and orthotics that provide added support and comfort. [ angie ] tommie copper's helped me feel better since the minute i put it on. if i could cover my entire body in tommie copper, i probably would! [ male announcer ] tommie copper is the pioneer of comfortable copper compression. relief from everyday aches and pains, effective odor and uv protection, moisture wicking, and incredible comfort! trust the original. add wearable wellness to your wardrobe. call now or go to order 2 or more items and get free shipping. [ boomer ] work, performance, or whatever your day brings, experience the difference of comfortable compression. tommie copper. life hurts, feel better.
8:00 am
it debate day. hillary clinton and donald trump will take the stage for a high-stakes showdown. >> and shares of deutsch bank at a low, and we'll tell you why. >> self flying drone taxis. they are introducing these next week. the final hour of "squawk box" begins now.
8:01 am
♪ ♪ >> announcer: live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc, and the futures right now with been turning low for most of the session, but at 67 now, and it was down on friday, and we are down for september, and the s&p indicated down another 8.5, and the nasdaq holding up better than the other two and everything is red today and red is europe, and i guess that's one of the reasons for fairly significant pullbacks going on in most of the courses. today's top corporate story.
8:02 am
deutsch bank sources. good morning. >> yes, indeed. shares are tumbling to a new record low this morning following a report in the magazine focus that angela merkel rejected any interference in the ongoing u.s. justice department in the firm for the mortgage bank securities between 2005 and 2007. keep in mind, out right bailouts of state funds is not permitted in europe, and this story is not new in itself, but it's at a time when the stock is hurting the share price today. the doj is seeking up to $14 billion from the bank, but the bank has only $6 billion for litigation expenses say they will pay much less than that to the doj, and the head of
8:03 am
communications says the bank does not need to raise your capital. >> yes, the share price is low but that is not what is worrying us and that's not what we are really looking at, and what is really important to is us our credit story which is very strong, fundamentally strong, and those in the market f. they analyze the basics and the tpufp fundamentals, we are quite strong. >> regardless, share shares are off sharply, and the stocks 600 bank index off over 3%. >> thank you, will. oil prices rallying. this as opec gathering for a meeting this week, and volatility at its highest since april 18th. earning season right around the corner. and s&p 500 companies expected to post a drop in profits.
8:04 am
this is the sixth consecutive quarter. separately now, two former wells fargo employees filed a class action against the bank, and seeking $2.6 billion or more for workers to meet the sales goals without engaging in fraud but were later fired, demoted. and then buy bats for $3.2 billion, and pfizer said they have not decided to separate into two companies, and stock looks like it's down by 1%, but major averages is down as well. and disney, the firm points to pressure generated by disney's deal. and then twitter was closer to
8:05 am
the sale in subsequent jump in the stock price that came as a result of the news, and oppenheimer feels a buyer would not be paying much above the stock price. and then the first presidential debate, and 100 million people expected to tune in, and that figure is close to the super bowl. and a wall street journal poll shows the showdown could shape the opinions of as many as one-third of the voters. and joining us to talk about what we could expect from the candidates, trump economic adviser, peter navarro, and i will start with just waxing eloquently to both gentlemen, trying to figure out how to summarize things. i see both candidates not really being deficit hawks, right? we are talking about blowing out
8:06 am
deficits in different ways, and on the one hand you have the free college and some of hillary clinton's free initiatives, steve, and at the same time, though, raising taxes, with trump you with raising for defense, and cuts for corporations, and for individuals, and i am just wondering, is it better to raise taxes and spend more or lower taxes and -- >> i would disagree how you characterize hillary clinton, and exactly matched by 1.$5 trillion on the wealthy. trump has not been specific enough about tax cuts and increased defense spending and a whole bunch of unspecified spending reductions. >> my point was, we watched the last eight years and people talk about stability. the last eight years in the
8:07 am
proposed clinton initiatives, there's no supply side stuff in there at all to try and get growth above 1 3/4, or 2%. >> let me assure you, and everybody in cnbc land, we're not blowing out the deficit, just the contrary. we released our report this morning that shows that our plan is actually revenue neutral, fiscally conservatives, and what is missing in the debate is everybody looks at what tax cuts are going to do to revenues, and sure, the tax foundation comes out with $2.6 trillion dynamically scored down for the trump plan, and what we are
8:08 am
trying to do is look at the overall plan, and so what we did was look at the contributions of trade policy and regulatory policy, and that's four points of the campus along with taxes. we went through the analysis like from the corporate level and we showed 2.4 trillion that stems from additional growth, and it comes out revenue neutral. it took us 230 years, basically, to go to $10 trillion in debt, and the white house basically doubled that in eight. and, look -- you have two candidates -- hang on one second. you have two candidates, and one wants to raise taxes and increase regulation and put a damper on the energy sector, and you have one that wants to cut taxes and balance the trade.
8:09 am
you tell me which candidate is going to grow and when you get to growth, as joe said, when you get that growth, when you go from 2 to 3.5%, you get revenues. >> if your policy prescription is right and it's good for business, and one of the things we talked about in the last hour, not one of the fortune 100 ceo's in america have not donated any money to your candidate, and why is that? >> the business in this country, basically you have the head of domestic manufacturers and the multinationals that benefit from the cheap labor and the currency manipulation, and all the stuff that takes our factories from the mission to mexico, and that's not the people that will be voting in this election pup we lost over 5 million manufacturing jobs, and we have seen 15 years of the flat growth because our investment is going here and not staying there, so i
8:10 am
don't expect the fords and the apples of this world to embrace a presidential candidate that wants to look out for americans instead of china, and it's simple. >> first of all, i think what mr. trump proposed is back to voodoo economics. massive tax cuts that are unmatched by any spending reductions whatsoever, and relying on the concept that we are going to unleash productive forces magically out of the economy, and secondly every serious economists i know, anyway, thinks about trade will result in massive loss in jobs and massive declines of gdp, and there's not a serious economists that thinks putting 35% tariffs on random imports -- >> that's not the strategy, my friend.
8:11 am
the strategy is basically to look at each of the trading partners where we have trade surpluses and say, hey, if it's china, if you are cheating we want to level of playing field and have a better relationship, and -- >> donald trump -- >> hang on. hang on. you can -- >> specifically -- >> can we do this? the plan is very simple on the trade issue. what donald trump is going to do is smart deals, and this defeatism that we can't grow more than 2%, that we are just going to struggle along for another four years under hillary clinton is absurd. she will turn the economy into libya just like she turned libya into isis. we have a plan that is a measured plan that will go through smart negotiations and there will be trade peace and not trade war and this stock market is going to take off. we are in a paper bull now, and
8:12 am
we have money coming in from the bond markets because there's no returns to be had and going into the stock market, and giving us an -- >> if donald trump is elected, the stock market will drop 1,000 points. >> says who? >> that's my opinion. >> do you think the stock market is going to go up or down? >> it doesn't matter what i think? >> it does matter -- you have no idea. opinions are just like what we know they are like, and they all stink. >> thank you. >> you are welcome. >> you have no idea. i say if hillary clinton gets elected it's going to go down 5,000 points. >> so you are right and i am wrong. fair enough. >> at the end of the day, what is nice about this election, it's a clear choice. >> he just said if donald trump
8:13 am
is elected -- >> you have one candidate that wants to keep trade, and declare war on the fossil industrial, and how do you get growth -- >> given everything you said you would think business leaders in america would be stampeding to your candidate. >> we are talking about fortune 100 people. not talking about small businesses. >> those are the businesses that run to mexico and china and to vietnam -- >> why are they running? >> you would think that ceos in america, if they thought this country was turn into libya. >> you got 11. does that seem like a lot to you? they are not backing either candidate. >> at least if you have any reporting and talking to ceos in america, they are not just fortune 500 -- i would go fortune 1,000, if you want to do
8:14 am
it. >> you can rail all you want about that, but at the end of the day -- >> i am saying you have a candidate like he's a businessman and nobody supports him. >> hang on! >> this is not a shouting match. we have a candidate here who is offering a smart deal for america. we had 15 years where we basically turned our manufacturing base over to the rest of the world. let me ask you, and let me ask you a couple questions. >> go for it! >> do you think it's okay to trade with a country that engages in massive export subsidies and dumps 100 tons of steel in here and say, go ahead and have our markets and put our aluminum industry out of business, and ohio, pennsylvania, indiana, these are the states in the country that are at the front lines -- >> i would be the first to say i
8:15 am
prefer better deals and i think we should prefer better deals. >> why don't you think trump will do that? when you see donald trump go to mexico and the finance minister has to resign because of political pressure, and that makes it difficult -- >> what i saw in that moment was a man that acted presidential, and that's what you are going to see tonight at the debate, going to be relaxed and presidential. let's do the numbers. zero to $60 billion in the trade deficit from 1993 to today. zero to $60 billion. what has been hurt? mostly our auto industry and auto parts industry. that's not a fair deal for america. that's not a good deal. when you run those trade deficits, that's a sub traction from growth. >> one of the most celebrated ceos in history was with you, and he gave you a point by point, he knows about business, and he -- >> he does.
8:16 am
>> a point by point -- >> i respect jack welch. >> sitting ceos are not going to contribute to donald trump because they have across the board -- >> forget contributing. >> and if you are retired, if you are an intrapreneur on your own, there are some that have that view, and a majority of them do not. >> how many benefit from the current status quo? >> not if you think this country is going to hell in a hand basket. i was just told we are going to be like libya. >> she spent $5 billion in taxpayer money to get rid of gadhafi, and what did we get? we got isis. and barack obama said it was the worst mistake of his administration. that was not donald trump saying she screwed it up. when i say she will turn the economy into libya, we are at 2%
8:17 am
growth for the last 15 years, but down about 1% growth now, and if she gets in there, andrew, raising taxes and raising regulation, and closing all of the fossil fuels down, and keeping the trade thing going. >> how much in the dow going to go down for the brexit? >> i am not saying. >> let's get joe out on the debate stage. >> gentlemen, thank you, and we have to leave it here. coming up, when we return, our court cutters keeping big stocks unsettled, and we will tell you why companies like disney may have a hard time getting an audience on wall street. thank you for the conversation, gentlemen.
8:18 am
upgrade your phone system and learn how you could save at
8:19 am
8:20 am
could bad news be priced into big media stocks. you wrote something fascinating about this on >> i wrote bad news could be priced in and i think it's hard to know, and we see the stocks look cheap, and massive under performance versus the market because everybody is concerned about the long-term risk, the
8:21 am
subscriber growth, and facebook and google picked up growth and leaving a smaller piece of the growth for the stocks. i think you could make a case right now, not because they look cheap, but because the cable bundle is trending more resilient and they perhaps learned what happened in music and newspapers not to be so quick and rash about how they respond to these things. if you look at the over the top experimentati experimentation, and i think it's actually instructive, apple has been unable to create a skinny bundle, and it can't get the content networks for the value it really feels like it needs to make it work. all that stuff together, and plus you have a deal cycle probably starting up and all the chatter about potentially cbc and viacom recombining, but it seems as though the chess pieces
8:22 am
will move around, and you have a smaller niche cable providers, and the high flying growth stocks looked to be cheap. perhaps we get a little value these could be value chips, and you see consumer companies that look cheap and it's because the long-term picture is not there. >> i was reading over the weekend, comments from at&t's randal stevenson where he said they will be getting a good price for some of the skinnier bundles, i think? >> yeah, it tells you -- what we are talking about the is the consumer proposition is take a lot less content for a little less money, because if you add in the cost of the broadband, it's not a massive thing. and the netflix story, they said they want half their content to be original over time, and it's
8:23 am
ambition on their part but makes them look similar to the networks, so i think at least the playing point arguably is starting to lineup, and you had the disney panic month ago, and today's there's a downgrade of disney share, and i think ultimately they have strategies to try and defend. we will see. >> mike, thank you. >> thank you. appreciate it. when we come back, forget about hailing cabs. uber is looking at something that could take your commute to a whole new height. details after the break.
8:24 am
announcer: they'll test you. try to break your will. but however loud the loudness gets. however many cheese puffs may fly. you're the driver. the one in control. stand firm. just wait. [click] and move only when you hear the click that says they're buckled in for the drive. never give up till they buckle up.
8:25 am
8:26 am
uber has a new plan to beat traffic. uber is researching vertical takeoff and landing technology. >> okay. >> to build airborne passenger drones that would fly short distances across cities. this form of commuting could be deployed within a month -- no, within a decade. really? other companies like airbus and amazon are also experimenting with this same technology.
8:27 am
>> not the same technology, and i don't think amazon is experimenting with hailing cabs. >> a person is just a big package, right? >> i value myself a little more. >> there's a picture of a helicopter drone where a person can be in it. maybe we will show it to you after the break. opec producer holding a meeting this week. we will talk to oil man tom pitrie right after the break. it's been over 100 years since the first stock index was created, as a benchmark for average. ♪ yet a lot of people still build portfolios with strategies that just track the benchmarks. ♪ but investing isn't about achieving average. it's about achieving goals. ♪ and invesco believes doing that today requires
8:28 am
the art and expertise of high-conviction investing. ♪ translation? why invest in average? whether it's connecting one of or bringing wifi to 65,000 fans. campuses. businesses count on communication, and communication counts on centurylink.
8:29 am
8:30 am
♪ welcome back to "squawk box." here's what is making headlines. i didn't know that -- >> his daughter. >> we will get august new home sales, and analysts looking for a drop of 8%, and that's a big chunk of july's gain. and philadelphia based kepl tura
8:31 am
will be bought by germany's lanx -- >> i don't know. >> for about $2.1 billion in cash, and that's 19% above the friday closing night. carnival will be out with quarterly earnings shortly. and analyst will be watching to see how well carnival weathered the affects of the zika fears. gas prices raising 4 cents over the last two weeks and that brings the national average price to $2.25 a gallon, according to the latest lundburg survey. analysts expect that to level off in the next two weeks. for those hanging out at the movie theater this week, "magnificent seven" brought in $35 million, and it features
8:32 am
denzel washington leading a small group of gunfighters to protect a border town from bandits. and then "stokes," debuted. hollywood is taking another addictive video game and putting it on the big screen. they are acquiring the rights to fruit ninja. >> kyle loves this game. >> the script writer says the misfits will become fruit -- it has been downloaded over 1 billion times. you swipe your finger across the sweep and you slice fruit in half, and this comes after the angry birds movie made more than
8:33 am
$100 million. >> i was skeptical of angry birds, and it was pretty funny. >> they are talented an maters. >> and money comedians. and oil prices, there are reports that are surfacing, and saudi arabia does not expect owe peek to reach an agreement when it meets next week. joining us is tom petrie. i was surprised to see oil prices go up so much on the idea that this gang was going to go get together and agree with anything. what did you think about the rumors there was going to be a deal and now the rumors of no deal when they meet this week? >> clearly what they are looking at is a dialogue, deckbecky, an there's some indication on paper at least, the saudis and russians are in agreement, and
8:34 am
the facts cut the other way, and there's facts russians have ideas of increasing their production and will have to spend serious money to do it so i think it's in their interest to look like they are playing ball with the saudis, but whether there's a real deal there is doubtful, and there's still a cold war between saudi arabia and iran, and when you look at what the foreign minister of saudi arabia said in an opt ed in the journal last week, it's clear there's not a lot of basis for cooperation there either. there are the haves and have nots in opec, and they want to freeze things and over time things should open up. i am still from missouri on it. >> you are from missouri meaning show me before i believe this stuff. >> right. >> is saudi arabia still the one
8:35 am
8 800-pound gorilla in the room? >> i do think they are beginning to see embedded declines in their base production, but right now they are still in the position. >> what we have seen, every time prices go back up, the free market tends to step in. drillers in the united states can make money. if you get back up to 50 or $60, you expect the stickets to turn back on. >> i think that's a good way to read it, and really it has been 40 on the low end and 50 on the high end. you get very much above 50 and people get worried. i think a year from now you could see that range become more 45 to 55, and even flirt with 60, but right now -- >> a year from now?
8:36 am
>> right now, 50, that's it. >> we have been talking a lot this morning, tom, just about earnings from the s&p 500 overall and the energy companies within that. even though we are at 44 and change this morning, that is still well above where we had been, and some of the lows we had seen sitting down below $30 or right around, and we were expecting the energy companies would actually be anniversarying very well, and how do you read the energy companies themselves are doing in the united states at this point? >> well, there's a variety of them. the integrated companies are doing all right, because they have the downstream aspects as well. the independents are doing the -- the better positioned independents, they will need a higher price in order to do as well as they have done lately. >> thank you for joining us today, tom.
8:37 am
>> good to see you. >> good to see you, too. again, tom petrie. we are going to ask the cia of a brokage firm what he wants to hear from the candidate -- did i -- i did something -- i mispronounced it. back in a moment. in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests
8:38 am
i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at and get up to six hundred dollars. but the best place to start is in the forest. kubo: i spy something beginning with..."s" beetle: snow. kubo: no. beetle: snow covered trees. monkey: nothing to do with snow. narrator: head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure. kubo: wow! narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: come on, this way. narrator: visit to find the closest forest or park to you.
8:39 am
welcome back to "squawk box" everyone. general motors is offering
8:40 am
buyouts to cadillac dealers. they are worth up to $180,000 a piece. in tech news, snapchat get into the hardware game. the app plans to start selling sunglasses that are equipped with the camera this fall, and it's called spectacles, and they can record video from a user's perspective and you can up load it directly to snapchat and snapchat is changing the name of its parent company to snap inc. here to weigh in on the elect shupz impact on housing is the cia of the largest u.s. real estate firm in the country.
8:41 am
what are you looking to hear this evening? >> well, the driver of real estate is job growth. that's the bottom line. we are now in our seventh year of expansion, and there's already concern the expansion has gone more than the average expansion, and having spend the last ten days on the road meeting with clients that make up the bulk of the market, and advisers, and endowments, and the key concern is what is going to happen with job growth? can we keep the recovery on track? both sides, there are a lot of ideas thrown around and there's a lack of specifics in terms of how some of these ideas are going to come to fruition? >> are you a hillary clinton or donald trump man? >> my private views are not
8:42 am
relevant as our clients and the confusion going on out there. you have got the election uncertainty, but meanwhile we are adding jobs, and the real estate fundamentals, and our clients across the country keep going back to the same country. the fundamentals are so strong in terms of supply and demand. >> i was going to say is that because we are not building as much as we had been to this point and we still have not got to the point where we are lifting supply, and how much is demand and how much is supply? >> that's a great point. the lack of over building, seven years into the expansion is very unusual. too much building, that's not happening. one of the benefits of the great recession was the fact that the lessons learned are preventing lenders from getting too aggressive. there's still plenty of capital. >> in some cases, it's the companies not wanting to build out more, like macy's talking
8:43 am
about how america is over stored and they want to cut back on all of this, and the numbers are really skewed, the amount of retail footage versus the uk or japan, and it's three times as much square footage here per person. >> that is true, and brick and mortar retail which out performed significantly better than anybody expected because of the lack of supply. the supply pull back across the board has been significant enough, and demand, you are creating demand for all kinds of commercial real estate and residential real estate. both housing and commercial are seeing demand outface supply. what will happen more with interest rates and availability of debt, which looks strong. the fed has been very accommodating. >> which candidate is better for your business?
8:44 am
>> again, it goes back down to what happens with job growth and in direct consequences to our business, the concerns are 1031 exchange deferred -- tax deferred exchanges. >> do you know either of the candidates personally? >> i do not. >> i am curious if you have done business with trump? >> our business has, but it has been a while since we had a transaction with him. >> again, supply and demand -- >> both candidates came out and said they don't want to allow carried interest to continue? >> i only heard on the clinton camp that is thought about looking at those particular ingredient in terms of the increase in tax revenue. >> trump said there was a different perspective from hedge fund communities, and i don't know if that would carry over to real estate or not?
8:45 am
>> real estate companies are very much in the same category in that they are obviously investing for capital appreciation, and it's been a very important part of our business because it's something like 50% of all investment type of partnerships in the u.s. are somehow real estate related. >> you are dancing around a little bit. for job growth, you say you would like job growth that, and that would help the real estate market, right? >> clearly. >> either one of them more likely to generate additional job growth? >> not dancing, but let me tell you why i hesitate. the hesitation if you look at the face of the proposals to reduce taxes, and obviously that sounds great. >> yes. >> and the tradition of lowering taxes on the republican side, it all sounds great. >> right. >> but when you compound that with ideas like raising tariffs that could be disruptive to global trade, i can't say what
8:46 am
the outcome of the total package would be. >> both sides -- if you could choose and pick, you might be able to find something you like. >> that's right. so the consequences of the totality of what they are think something what we are concerned about and our clients are thinking about? >> both sides are not exactly pitching, you know, free trade. so you have both sides pitching protectionism, and one side cutting taxes. >> correct. >> you can do a ben franklin close. >> if the outcome would evened up being a log jam in many ways where the government stays out of the way. >> unless it causes the guy in charge to do a bunch of executive orders to get around congress, and they can get around it, and gridlock is not all it has been cut out to be, it got around congress. >> everybody says we want fiscal reform. >> i really want to emphasize
8:47 am
this. we're being viewed -- >> are you talking about trump now. >> this factor trumps the others, and global investors are coming to this, supply demand we talked about and yield, and the low inflation and yield environment, in the 4.5 range, that is a unique place to be seven years into recovery. >> thank you for coming in. when we return, jim cramer will join us live from the new york stock exchange. we will get his take on today's top stories. take a look at the futures. they have been under pressure this morning. and the nasdaq is down by 23, and "squawk box" will be right back. >> announcer: tonight, showdown in long island. clinton and trump facing off on the economy, security and the direction of america. we'll tell you what to expect right after the break. and cnbc's debate coverage kicks
8:48 am
off tonight at 9:00 p.m. eastern. "squawk box" will be right back. d from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most.
8:49 am
the cash rewards credit card from bank of america. but they demand the best shopping experiences. they may want the latest products and services, they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business.
8:50 am
you've probably heard this by now. the sports world lost an icon
8:51 am
yesterday. arnold palmer died yesterday. he revolutionized the game of golf and made it popular on television in the process. nbc's kurt gregory has more on palmer's life and legacy. >> arnold palmer grew up the son of a greenskeeper turned golf professional in pennsylvania. his hollywood good looks and yet unorthodox swing made him a golf superstar. fans crowded the fairways in droves and came to be known as arnie's army. many who couldn't watch him on the course in person did so in their living rooms during the 1950s and '60s. palmer helped make golf the tv sport it is today. his popularity grew. companies wanted arnie pitching their products. >> arnie, they said, you'll like it. the tractor will like it. same pennzoil, new package. >> nicknamed the king, palmer became famous for his strength
8:52 am
in shot making. he loved to take chances on the course, saying, quote, you must play boldly to win. and win he did. seven majors, 95 professional victories including the champions tour. a venture he helped to jumpstart in 1980. palmer stopped playing the champions tour in 2006, but remained a vital part of the game. his golfing empire includes golf schools, golf equipment and clothing lines. he designed more than 200 courses around the world. and in 2012, he was awarded the congressional gold medal, recognizing his contributions as a golfer and philanthropist. >> i thank god for the game of golf. and what it has meant to me -- >> arnold palmer will be remembered as one of the greatest players to ever pick up a club. a blue collar guy from a small steel town who transcended his sport. becoming a hero to so many. >> all right.
8:53 am
>> kurt gregory, nbc news. >> arnie was also co-founder of the golf channel, which is now part of nbc sports group. and let's get down to the new york stock exchange where jim cramer joins us. someone woke me up at like 10:00 at night with that news, which was a little unsettling. but i was glad to find out -- i mean, i was glad i didn't have to find out in the morning, but sad to hear it last night. had troubled sleep afterwards. >> i did not know what golf was until arnold palmer. it was the sport. you heard about these guys who were legendary, ben hogan, mostly because they design courses. and arnold palmer comes along and suddenly it's on tv in my house. and not because we knew what golf was or golf, but because this guy was such a personality. >> he was a personality. and he had -- he certainly whatever it is that takes to have credibility and sincerity and not even to look like you're
8:54 am
a paid show for products, he had it, didn't he? >> yeah, he did. look, remember, this is a game where people didn't make any money. suddenly there was a guy who changed that. endorsements matter. we saw a lot of guys, i think sam snead was a big endorser when i was growing up. you went to go to the white marsh open, a course near me, to go see it. like no one went to see it. it just wasn't something you saw and then he democratized the game. it was not for rich people after arnold palmer. >> it was not tv before arnie, and after arnie it definitely was tv. >> remember like when you first heard you had to be quiet? you felt like you had to be quiet in the room when you watched the guy. it was just such a fun thing to watch. amazing. >> and then, i think -- i can't remember the exact number, but it had been like 35 years since
8:55 am
he'd won a tournament. and he was absolutely second to michael jordan or something in endorsements. it was pretty amazing. >> he was so much fun to listen to. i don't know, that was the guy who was the sport. and everything i hear about was that he was just fun. and i think that's okay. i mean, we don't have enough fun in sports. this guy was fun. >> jim, why are we having another down quarter in earnings if the bad comparisons on oil already rolled off? why is it still bad? >> well, you know, i don't think that -- we still had some oil companies that were doing -- living off some very cheap properties last year at this time. i also know that we have some retailers that have really fallen. and that matters. and tech hasn't kept up. and we don't really know what the banks are going to earn. i think a lot of people felt banks would be flat to down would be a little unrealistic given the fact we thought we'd have two hikes by now. we didn't.
8:56 am
>> okay, jim. thank you. see you in about four minutes. coming up, when we return this morning, stocks to watch. plus a programming note, donald trump and hillary clinton squaring off tonight at the first presidential debate. you can watch it live right here on cnbc. it all starts at 9:00 p.m. eastern. "squawk box" returns in just a moment. it's here. the amazing new iphone everyone's excited about. and t-mobile is the best place to get it. your iphone deserves a network built for unlimited data. so you can use your new iphone 7 to stream, watch and play as much as you want. all on america's fastest 4g lte network. and get 4 lines for just $35 per month each with unlimited everything from t-mobileone on the amazing new iphone 7. what's that? the number of units we'll make next month to maximize earnings. that's a projection. no, it's a fact. based on hundreds of proprietary and
8:57 am
open data sets folded into a real-time, actionable analytics model. nine. eight. three. five. two. you're not gonna round that up? you don't round up facts. powerful analytics driving decisions for the world's most valuable brands. hewlett packard enterprise. you know what, guys? there's a lot of tree branches and dry brush over here. we should probably move the bonfire over there.
8:58 am
[smokey whistling a tune] i'm guessing smokey liked that idea.
8:59 am
welcome back to "squawk box" this morning. deutsche bank shares are under fierce pressure under fears the bank will have to raise capital given the $14 billion fine the justice department is proposing. however deutsche bank saying capital raising is not an issue and has never asked for any government help. of course they are seeking $14 billion. they say they won't pay anything near that. angela merkel saying the german government -- >> well, she's facing an election. >> right. going to become very complicated very quickly. >> that's going to be an interesting election too. >> yes, it is. >> i wonder what happens there. >> well, she has not faired well, her party has not faired well in some of the local elections taken place leading up to that. she said herself if she could reverse her decision from earlier this year with refugees she would, i guess last year's decision with that. coming under increasing pressure. folks, let's take a final check on markets this morning.
9:00 am
the futures have been under some pressure. right now dow futures still down by about 81 points. below fair value, s&p futures off by 9, nasdaq down by 26. europe reflecting the same story with a lot of red arrows there as well. >> well, we'll know what happens by tomorrow, right? and we'll be here. so after tonight make sure you join us tomorrow. "squawk on the street" is next. ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. futures are weak to start the morning as we're 12 hours away from the first presidential debate. tonight at hofstra considered by some to be the most critical moment of the campaign so far. europe is down on more concern about deutsche, the degree to which it could depend on assistance from germany's government. watch for oil headlines today. that opec meeting today and tomorrow. our road map begins with clinton and trump facing off in their first debate tonigh


info Stream Only

Uploaded by TV Archive on