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tv   Squawk Box  CNBC  October 17, 2016 6:00am-9:01am EDT

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to break a 41-year-old record. it's monday, october 17, 2016. " squawk box" begins right now. ♪ the simpsons >> live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" here on cnbc. i'm andrew ross sorkin along with joe kernan. we have more coming up from the data front. monday today at 9:15 a.m. time we get industrial production. tuesday, consumer price index. wednesday, the fed speak and thursday jobless claims. on monday we get to hear from stanley fischer. on wednesday we get to hear from john williams and thursday new
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york fed president bill dudley will speak. and the u.s. equity futures at this hour looking down. the dow is going to open down 42 points. the nasdaq down 16 points and the s&p down 6 points. in asia the hang seng is down. the shanghai composite is also down. the nikkei is marginally up this morning. european equities at this hour are also in the red across the board. again, we'll call it marginal for now and take a quick look at wti crude. we're looking at 50.20. it has come down a little bit but hasn't cracked the 50-mark in terms of a downward pressure. >> if you feel like the s&p has not done anything for four months, you would be correct. >> yes. nothing. >> nothing. just as flat as can be. now the things that trouble me. >> what troubles you this morning? >> what troubles me is our distance. >> that's a whole other story. >> politically, fphilosophicall
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and -- in the meantime, it looks like something could happen. good or bad. which is -- >> it's good. i remember when you built the wall, remember that? >> i'm going to build a wall, it's going to be a big wall. but you're going to pay for it. >> thank you. >> 181 on the ten-year. we said above 177 and we're on our way. the thing that concerns me, did you see the atlanta fed forecast went from 3.4 gdp to 1.7. the there aredollar is already like we have tightened and we have not tightened. and we said the -- all the analysts said the headwind of the stronger dollar will wear off.
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suddenly, we're right back in the soup with the dollar. and what did rosengren said on friday, i have not raised conditions. they are not going to raise -- >> do you think we're in a recession and we don't know it? >> it would be kind of like -- i hate to say walking pneumonia, but you don't even know you have it but you sort of are in one. i don't know. we're muddling along, but better than anybody else. but the s&p has done absolutely nothing for four months. it's just like watching paint dry. watching grass dry. you can't even do that. or paint grow. let's move on. while we're at it, we're bring in a couple people to talk about the fed and what happened. it's another big week of earnings. i'm sort of interested in netflix for some reason. it's something other than bank earnings. i never get that excited about that. >> did you see the wall street journal piece about netflix? >> i haven't read the whole
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thing. >> they were very down on netflix. >> anybody can do it if you pay the content providers, right? >> this is true. >> here's a quick round-up of the big ones to watch. we mentioned bank of america is expected within the hour. so we got that going for us. after the close, we have ibm, netflix and united continental. and then tomorrow we're going to get results from goldman sachs, j&j and intel. wednesday, morgan stanley and american express. and then on thursday, verizon and microsoft on the headlines. so that is some pretty big names to look forward to this week including ge and mcdon naltd's, which will come on friday. and a programming note, this is exciting, we have not had him on. we have the united ceo eric munoz. he looks great, doesn't he? >> yeah. >> remember, he had kind of a
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rough beginning. >> you're a united man. >> i'm a newark man. i bruise on the inside. no, i've gotten a united credit card that i use everything for just -- i've got so many miles now, but now it's an obsession. i save them, i hoard them. i have hundreds of thousands of miles. but if i need them -- >> i'm going to leave here tomorrow after the show. >> that's good. have you -- excuse me just for a second, since you are davos man, the original davos man -- >> you were a davos man, too. >> you are davos man. this is where man has come. did you see the spangler? our spot over there? >> no. >> it's got a restaurant. our hotel in davos has a restaurant? >> that's new. >> is that not unbelievable?
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that means you can be in your room at this place, in our room where we are like this and sleep with your head on the toilet, but you can order food to come. >> it's the first time. >> you didn't see that? >> i don't know if the audience appreciates that. we stay at a hotel in davos. >> i saw that. i know it's just us, but i'm promoting that we'll be in davos. we're almost there again. >> coming up in january. we'll get you caught up on today's big corporate stories. shares of deutsche bank moving this morning as the firm reportedly is reviewing u.s. operations ahead of the expected settlement with the department of justice. abandoning the united states altogether. very unlikely, but deutsche bank, because it is the most important market, but the german up be lending giant could scale activities to focus on german clients. that's one way it can go.
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>> i was happy panasonic is an ongoing entity. tesla and panasonic are teaming up. the electric carmaker will team up with the japanese firm. they sell solar cells and modules that will be used in energy storage pacts. they also have another tesla vehicle on the way. panasonic has been replaced by tech not. people leapfrog and i think of panasonic more more tvs now. >> panasonic is so far behind if the --
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>> samsung, a lot of people have gone to samsung. >> we have old school plasma because they have the deepest black. they are supposed to be better. we are a couple years behind. >> it's not like you. >> thank you. talk about being behind, we are expecting another news release out of tesla this morning. we were there but then elon musk tweeted that the announcement will happen on wednesday. they need a few more days of refinement. there are rumors of a crossover vehicle. >> did you see the hoopla with the coal guy we had on. he said something about emon
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musk -- elon musk. he did research on coal energy. he was totally talking out of his -- out of the other side -- talking out of the wrong side of his mouth. he was totally wrong about it, he flew off the handle reacting to this -- >> i want to go see the numbes.s >> you don't read cnbc's stuff? >> i try to read every single article on here's a developing story out of the middle east this morning. iraq's prime minister announcing the start of a military offensive to take back the northern city of mosul from isis forces. iraq's military will take the
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lead and advance. the u.s. will provide air strikes and artillery. there you go. we are two days away from the third and final presidential debate. just under 22 days now until voters hit the polls. officially, there are some states where voting is underway. a new cnbc poll finding hillary clinton now holds an 11-point national lead over donald trump. the poll was conducted after the second presidential race. in a four-way race, clinton holds 48%. a truck gets 37% in a head-to-head match-up. the e-mails leased by wikileaks over the weekend have not been authenticated yet.
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i don't know if it is true, i have not confirmed this, but a state sponsor -- >> did you read the wikileaks over the weekend? >> well, people have been reading them for me. >> when you look at the goldman or any of the speeches -- >> what are we supposed to take away from that? that's what i thought i would know. i thought it was very on -- i'm not going to go vote for her, but do republicans say she lied? that's another reason why not to -- is she more where i want
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to be. i think if you were on the right, you would be somewhat hardened that she didn't move quite as far left as she appeared to. based on the primary. you know, we know where you are. you're in a good mood, so that is fine. i watched your tease with "worldwide exchange." you were so happy. you have a bounce in your step, that's fine, that's good. you should. life is good. >> let's check on the markets this morning. we'll look at the futures. they aren't so good. we are down 437. friday's session we were up nicely for most of the session.
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ended up less than 40 points higher. on friday in europe, it's not really adding to any positive sentiment this morning. it's all -- i just watched the nikkei a little bit in shanghai, they stayed above 3,000. that was a problem -- has it been a whole year? then as far as oil goes, we are staying above 50. the ten-year note is one we should have looked at other. it is below or right at 1.8. you can see that as a multi-month high where we are trading. then the dollar is problematic. the dollar is strong, 1.09 on the euro. 104 on the yen.
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if the fed does raise, you would think maybe the old 1200 tesla level. but then people are talking about recession, and gold may be the place to go. then the fed was supposed to raise -- we had the bad employme employment. i was going to buy some maple leafs. and then you got to sign all this paperwork. i like gold. have you seen gold? >> i was going to buy some jewelry. >> so if it raises you'll go down to what the jeweler is trading for. and you're probably, what, a harry winston guy? no, i'm the cheapskate.
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i negotiate. joining us now, ed camel and karen -- i'm announce iing that they said they would do another one. >> in december. i think the odds are still th e there. i'll believe it when i see it. they are going to look at it and say, well, the data is good. >> it's better than it was but still not great. >> i'm learning more about the signaling impact if they don't come. >> we have repaired the market many types before and seen the same story and they don't raise. i just don't think at this point
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they have enough economic data on their side to go ahead and do it. they say the economy is not as bad as the interest rates say but i don't see it happening in december. >> how is -- >> so the much anticipated second recovery in profits hasn't shown up in the third quarter. so we'll get another quarter of negative earnings on the yield. >> and it won't get better from here? >> they are going to beat expectations and -- >> so we lower the bar, we lower the bar. and then we eventually clear it. >> i think we're going to see some positive growth. we are very close, but we're going to get good positive surprises especially in
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financia financials. this is what the market needs to get some juice through the end of the year. you were talking about the s&p not doing anything in the -- they need to look at the biggies, which is earnings. >> you pointed out that banke bankers -- some people are fairly valued multiples right now based on where we are. that helps. >> right, that helps. and it also helps -- the fed is absorbing the risk. when you are further on the risk spectrum, that's why we see small and large caps.
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>> why won't the outlooks be based on where the dollar is again? >> i agree with karen that sort of earnings are the key factor here. with multiples on the s&p 500, unfortunately, that's where i stink a lot of the downsize risk is in the low nominal gdp. we are in the low numbers here as the economy continues to be soft. >> several quarters worth, like 32 quarters. >> yeah, multiple years. we have been stuck in this 2% growth mode since the crisis, and the dollar is stronger than last time. this has pushed back another quarter. and i think the risks are that
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t the. >> the strong dollar is going to be on janet yellen's mind, too. >> she's afraid of her own shadow. the slightest thing happens and -- >> we are at levels in -- >> are you getting a raise? >> so you got your own views or do we know what you think from him? >> trend to hash out our differences at the table. then we come forward with a unified -- >> are you a communism? >> no, i don't think i am. ed is not. nice guy.
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thank you. coming up, peter thiel is putting up cash for donald trump. we'll talk about it as we find out who else is opening the latest place. still to come, we'll bring you numbers and reaction from wall street. keep watching "squawk box" for up-to-the-minute analysis right here on cnbc. 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. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should
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welcome back to "squawk box." scott has an amazing lineup with david temper, carl icahn happening today at noon. you won't want to miss it. then later this week on the l t list, duke chenos, mark diamond, rich penzi and gary rossen. that starts today on "halftime report" at noon. and pepsico's ceo indra
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nooyi sat down with sara eisen talking about the transition to healthier products. anything that changes in tos is not that healthy. don't change them that much. cheetos, doritos, you know. they want to lower the saturated fat in its products. >> in the case of saturated fat, that's a challenge because people love fried snacks. so we really had to invest in technology to reduce the saturated fat. it has taken us a while, but now we have done two things. we are frying our snacks in many countries in hot, healthy oils. and we have a tech not great for a significant technology break through, which is now commercially being adopted in china, which is a new frying technique, which actually reduces saturated fat levels by about 20%, and increases capacity of the machine by 20%.
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so we're very excited about that. >> it would be good if you could have the same stuff, you spend all this money going to mars, we should make fatty, greasy, delicious things that won't kill you. that would be brilliant. >> it is. >> sara will be joining us later, sitting right here. we haven't done the intro yet. >> i like this about the show that you just kind of jump in whenever. >> we do that. >> yeah. >> i couldn't see the last part. indra on "squawk on the street"? is that what i saw? >> maybe we can persuade her to join us here. >> if you talk about vegetables and keeping them in sticks -- >> what do they call them, veggie straws?
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>> i have seen you eat -- >> kale chips. >> what are those things? >> it's like seaweed chips. >> that's un-american. >> that was years ago. that was like three to four years ago. >> we all have a problem eating inappropriate. if you're not doing carbs, it is hard to have your snack cravings. i tried something really disgusting, people said, what did you eat? pork rinds. you might as well go to the doritos. >> ouch. how about peanuts or any kind of nuts? >> all fat, no fun. >> i don't know, i eat a lot of nuts for a protein snack. >> they are good. almonds. >> boring. >> there's the seven almond -- we have to move on to talk elections. kate kelly is here with the latest data on who is opening up
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their wallets for the candidates. and one surprising person. >> i'm getting to that. that was great new york times story. key quarterly filings from over the weekend to show that hillary clinton has a massive fund-raising advantage with her victory committee raising $261 million in the third quarter compared to trump's $61 million. missing 200 there. that said, some trump supporters who seemed to have damned him with feint giving are stepping up. sheldon adelson promised to give trump $100 million. and joe ricketts gave a million himself. despite differences, he's supporting trump and pence. meanwhile, this is what andrew was getting to. the new york types reporting that peter thiel who endorsed trump at the rnc but later said through a spokesman he had no plans to donate has pledged
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$1.25 million. but the contribution so far hasn't shown up on the public record. maybe later this week with additional filings. and a couple money managers vocal on trump's behalf but have not given a lot considering their net worth wrote additional checks this past quarter. i'm talking carl icahn who gave an additional $150,000. john paulson gave $250,000. at the same time, continental resources harold hamm gave $450,000. and bruce berkowitz $125,000. >> it looks like harold hamm was given $450,000 because of the negative. >> you're saying that was approximate. >> yeah, like a wavy line. not a negative sign. i don't think they refunded the money. can i run through hillary clinton? >> okay. i just didn't want those at home to be confused by it.
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>> the word is about 450,000. meanwhile, hillary clinton's supporters continue to back her like donald sussman, fred eychaner and calvin klein gave six-figure donations. so did black stone's tony james. pretty significant donors. >> can i ask a question on peter thiel? >> yes. >> officially on the record he said he was not giving money. >> this was in august. he said no plans to give money. >> i had -- >> you made that point a lot. >> i thought it was fascinating he was speaking at the rnc and not giving. so the question is, do you think by speaking at the convention he had to give money? >> well, no. if he felt that way, he would have given money shortly after and had a spokesperson to say i
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have no plans to give. i checked in september and within the last week because i have been following the mega donors. if you look at the rnc speech, he talks about what is wrong with america and what needs to be fixed, but it's not until the end he says i encourage you to vote for donald trump. he does not list trump's attributes or anything like that. it felt, at least on paper, a little feint. coming up, we got netflix sinking millions of dollars into original programming. but is the strategy paying off? we'll tell you what to expect when the company report this is afternoon. and don't have a cow, dude. america's favorite family from springfield hitting a major milestone. the simpsons are on the verge of making television history. that's next. guess what guys, i switched to sprint.
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welcome back to "squawk box." netflix set to report quarterly results after the bell today. t they are getting a boost after rumors of disney taking them over. i should start the conversation by starting with ""the wall street journal." let me get the paper out. what is going on with this company? >> the article is bearish. >> a little bit bearish? >> too bearish. >> how has it change in the last year or two? >> i don't think things have changed that much. >> here it is. netflix picture getting darker right here. you can catch it on the cover of
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"money invested" this morning. tell us it is wrong. >> it is wrong because it is short-term focused. it will take international that has more time to play out. there are comparisons because of the launches last year with southern europe and the rest of the world in the first quarter. but the u.s. business is strong. the u.s. business is strong in terms of content and longer-term you have to remember three things on netflix. the singular focus of the company, they don't have a legacy business to protect the way traditional media companies do. the scale of the company, we're talking 47 million u.s., 83 million locally, the ability to spread content costs over that scaled subscriber base. and then finally secular growth. the world is shifting to internet video. this is the world market leader. 35% of the downstream bandwidth. these are probably short-term headwinds that have to do with the following things, the racing
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of prices in the u.s., which is a good thing, they are accelerating revenue because of the price increase. and a little bit of short-term in terms of the -- >> let me read you something, netflix faces slower growth and more competition, you agree with that statement? >> i think it could be slower subscriber growth but not necessarily revenue growth. >> in an environment of rising prices prompting higher than expected children -- churn -- >> the stocks rich evaluation looks particularly unappealing. don't hedge this stock. take that on. >> that's a simple-minded way of looking at the evaluation. because you're adding in the investment in new territories. if you look at the new business, it's very profitable already at 15% to 20% fully attributed harmen. if you look at the international territories that were launched
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pre-2014, those were very profitable, over half a billion in profits. so what is happening in the 100 times earnings is you're factoring in just the way it happens for amazon. you're factoring in the way new investments have yet to yield the revenue. >> what am i supposed to watch here? have you seen it yet? >> i have only seen the first one. >> the three hits were "stranger things," a massive hit. >> have you seen "stranger things"? >> i have seen the first couple episodes. it's excellent. really good. >> you're saying for the kids. >> no, for me. >> for the kids or people in the 30s or 40s? it's very e.t. and spielberg. nostalgic '80s type show. you have a very high bar. you didn't like "bloodline" at all. >> i do like "bloodline."
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>> you had to get through the first couple episodes. >> what it is, the content is really strong. as long as that content continues to be good -- >> i'm looking for something else. what about "marco polo"? >> "marco polo" is from last year? what about -- i'm sure the netflix recommendations will find something you like. >> you're in limbo right now, too. >> a little in limbo. i was thinking of starting up streaming things. >> "west word" is good. >> yeah, "west world" is good. >> i need more content. >> you're a showtime guy.
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>> but i told everyone that i love -- >> you need a true detective to come back. >> you have "the affair" coming up. it's season three. >> i'm not watching divorce. >> divorce on hbo. how does that do? >> okay. >> why do you like to watch somebody getting divorced? >> it's a dark comedy. but it is hard to get the ratings on these individual shows. so they are not always nielson rated. so it is very hard to track how well -- >> next time you come in stark with this instead of all the stock stuff. >> all right. thank you, guys. coming up, breaking up the all boys club. our extensive executive edge looks at the lessons learned betrayalblazing women in corporate america. more "squawk box" is coming up.
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welcome back to "squawk box." here's the futures where we are going to open, that's a little better. the s&p is down 6 and the nasdaq
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weaker than the other two down 15 points. europe has been mostly red for most of the session as well. okay. it is now time for the executive edge. we want to bring in a woman interviewing more than 50 female business leaders who dismantled the old boy clubs. the author of a new book "earning it: hard lessons from top trail blazing women from the business world." you are literally one of my favorite writers because you have been writing about corporations forever. >> and the book comes out tomorrow. >> the book comes out tomorrow. but she's the one to break every story about what ceo is about to lose their job, which one is about to take their job, which board member is trying to screw over the other board member and all the sort of great soap opera entry. so thank you for all that you do. how did this book come about? >> well, this book grew out of
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my experience about writing just about those very issues. i've been covering management issues for a quarter century. met a number of these women, and it occurred to me that these women had something to give back to the next generation of women. >> so we all hear about the glass ceiling. the new yorker brought up this issue of the glass cliff, have you heard about this? >> correct. >> do you think that's true? there are so many women that the idea that women are hired into companies that are troubled. >> well, i think there's been extensive research to suggest that there is such a phenomenon. and that is part of because the fact is that we have a different expectation of women as leaders as men. so the women are given sort of the thankless task of cleaning up the mess. men and women have made. and often then they fail. >> where are we now? i remember a stat about a year or two ago that was 23 women of the -- 23 women on the s&p 500
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list -- >> actually, if you look at the fortune 500, i think it is two dozen now. but it is nowhere near where anybody thought we would be two decades ago or even longer. and that is part of the reason i wrote this book. what is it that it takes to get to the top? and why is it so slowly? >> what is the single issue? >> the single issue is that women are afraid of success. >> women are afraid of success. >> yes. they don't have enough confidence that they can do it. >> i could never say that -- i don't know if it is true, but -- >> that was what was so impressive about so many of the women i met for this book. they were not afraid of success. they were not afraid of failure. and the point of the book is you don't have to let failure sidetrack you. >> how do you change that? >> how do you change that cu
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cultur culturally? >> well, the whole culture changes. plus, you get men into ceo positions that believe that women in big numbers actually ruins results for shareholders. >> what about hiring? how do you do it? we all talk about it and people say, should there be affirmative action in terms of how you think about hiring culturally? >> i don't think that will change the culp set by culture. the fact that it is okay to go home at 4:00 in the afternoon because your kid is playing in soccer that day. it has to be okay for men to do that, too. >> final question from me, i don't know where joe wants to go with this, i have an activism question for you, which is that it appeared about a year or two ago if you looked at a lot of the companies being attacked or
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targeted by activists, they were run by women. and i wanted to know whether you thought there was truly a correlation for that or was it just a happenstance. >> i actually got whispered the same thing, which is why are they targeting the head of this company and the other company. rosenfeld who just recently interviewed the book. if women are aiming for positions of power, they have to take this outrageous fortune. i don't think women are singled out. i think it is underperformance. >> the book is called "earning it." great to see you. we do have bank of america here -- it looks like 41 cents is well above where the street was at 34 cents. 7 cents above the stock is trading higher premarket based on this. quarterly revenue, the net
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expense increased $23.6. and that charm is declined to wave $188 -- you can see the stock up 1.5%. wilfred frost -- >> is going to join us. >> to talk about -- not bank of london but bank of america. what the heck does he know about bank of america? he's been here six months and is an expert on bank of america now? >> he's a great host. >> yes, and he's very tall. coming up, a major hill milestone for the simpsons. and the cubs are a step closer after the world series. we'll see how it went last
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night. and tomorrow on "squawk box," we have the ceos of eli lil lilly. and buy the book "earning it." mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t.
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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's the value what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter.
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morgan stanley
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welcome back to "squawk box." a major milestone for "the simpsons." the series is now in its 28th season, and it's just 36 episodes away from passing "gun smoke," which is the only other primetime show to reach the 600 level. the cast of the show has signed on through season 30, and that helps because 28 seasons, you know, if it was a real actor that was getting old -- 28 seasons, you change, and you could not be the same, and that's why we keep changing. >> hank's voice, he does like two or three more of the voices. amazing. >> yeah, it is amazing. "gun smoke," do you remember it? >> i heard of it. >> it was mr. phelps' brother,
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from "mission impossible," with james arness. he was cool. i liked him. calm. a big and tall dude, tallest actor, ever. he and george clooney could not work together unless it was part of the rings. a pitchers duel in game two, the dodgers beating the cubs last night, and clayton kershaw gave up two hits in seven innings of work, and the series heads to l.a. and it's tied at one game each. that was one of those games that you have to like pitching to sit through. >> google says clooney is 5'11". >> they are graded on the curve.
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>> i am 6'6", that's what my -- and the firm has been under pressure since the elliott management report said shares were deeply under valued. the shake-up at mcdonald's. the firm's chief field office and vp of customer experience will leave at the end of the year. and then later, business leaders for donald trump, andrew puzder joining us. "squawk box" returning in just a moment. ♪
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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 the art and expertise of high-conviction investing. translation? why invest in average? and it's got the spring and bounce of a traditional mattress. you sink into it, but you can still move around. and now that i have a tempur-flex, i can finally get a good night's sleep. buy the most highly recommended bed in america for as low as $25 per month and a 90 night free trial. now that fedex has helped us we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything.
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thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce. 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
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earnings alert. bank of america rolling out results. >> we will have reaction from the street straight ahead. we will tell you how much one tech billionaire is donating to donald trump's campaign. and plus, the binge, we'll have the debate as the second hour of "squawk box" starts right now. ♪ ♪ video killed the radio star ♪ >> welcome back. the "squawk box" here on cnbc,
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and i am joe. >> i have not been on "squawk box" for a while. >> you have tried the new technology. >> less salt and saturated fat? >> yeah. >> just as many carbs, right? >> they are trying to reduce carbs, but that was not one of their goals. they are cutting down calories big time. >> you thought it was snacks. there were no calories or sugar or nothing. >> maybe ai some day. >> you can think you have eaten like a whole bag of doritos but nothing. how do you make it salty without salt? >> you can do it with other flavors. apparently there's more salt in a piece of white bread than chips. we are rolling it out on "squawk
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on the street." we will see what we are going to see in terms of brands, and we will go through all of the brands. >> got it going on. >> look at the stock price, too. >> and they have 4.2 growth. >> what is used to describe what it was like in the bubbles, and the ecstasy you get from drinking pepsi. >> she's into it, and she likes the real pepsi with sugar. >> sometimes she sends things, too. >> around earning. >> yeah, lots of earnings. >> i am not trying to plan the anything in her mind this time around. probably sending it to "squawk on the street." >> i can put in a word for you. >> please do. a look at the futures.
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they keep getting better. they were down already 50 at the beginning of the show, and now down 23. even the nasdaq was down 15 now down 11. italy, should be 14 every day in italy. northern italy, southern italy, central, south, east -- where is the food not great. where do you not take your time and have wine for lunch. where are you not in a good mood in italy? >> in the banks, where they have mountains of bad loans. >> oil prices. holding above $50. maybe we already looked. i was not paying attention. yeah, down 8 cents. >> stanley fisher has a
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lunchtime speech followed by a q & a session. investors will be paying close attention. samsung's troubled note 7 has been banned from flights. german officials are asking tesla to stop testing the auto pilot feature in its cars, and they feel such ads will suggest drivers don't need to pay attention. and just a few more days of refinement are necessary, and no need for a press release when you have a twitter account. >> two more days and it will be much more refined. >> it's just the announcement.
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>> just the announcement? >> i assume. >> you think they will make the thing available? >> correct. >> immediately? >> i don't know about that. >> maybe it would be auto pilot because that's something you roll out over the year. >> auto pilot, batteries, speculation goes on. >> bank of america out, beating estimates on the top lines. and the takeover of "squawk box" continues by the worldwide exchange. >> yeah, eps, 0.1, so a decent overall dps. and that's a fraction when you make adjustments for accounting over the quarter, and an impact
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of low rates taking an affect. and then consumer banks, a big portion of their earnings. and encouraging overall compared to where we would say 3%, and that's behind what jpmorgan hit. it's more similar to what wells performed on that measure on friday's earnings, and the beat once again coming through on the trading revenue, like citigroup and jpmorgan, and it was focused on fixed income that was 39%, and equities, disappointing down 17%. citigroup tanks on the equity performance, so better on that area, still focused on fixed income, a strong performance. in terms of looking for balance, on friday we saw the shares boost the open and sell off during the day, and part of the reason it was just fixed income that will perform well and that will trade off as we go into the
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next quarter, and plus 13%, and that's more encouraging, so overall the cfo quoting in the release, and so the beat again coming again on the trading side than the loan growth side. and this is a continuation of that improving trend that we have seen across all the banks. we saw a buildup and concerns about credit, and that's improved steadily. overall, a decent eps beat after the shares, and then at 1.4% for bank of america in the premarket. >> when goldman comes out, will we see you again? >> indeed, on wednesday. >> you are not covering football for us, too, are you?
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no? >> i watched a bit yesterday, but we had this discussion, and i am waiting for you to take me to a game. >> i have problems doing that. the simplest one, you are 6'6", and i am not standing next to you. >> we will get you a little box. >> yeah, that's embarrassing. i don't have a team here. i don't. i don't really care -- in fact, i don't have a team right now because of the bangles, and again, they showed -- we got killed. we will talk about it. i have other concerns, other issues. let's get back to the markets. joining us now david href wits. they can raise because the market has done it for them? >> well, the long end of the kwrael has done it for them.
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whether they fall through, they are screwed because the inflation numbers are moving to the target, and the economic data has been slowing down. and so we will be raising in the context of the slow growth rate, but the inflation recovery is getting close to 2%. >> i think there has been four quarters in a row for gdp, and the atlanta fed, every single time, and all of a sudden i see an alert and they are down at 3.1 quarters now. and it could be the fed staying in that has us in this. >> rule number one for the fed, you don't wait until after you meet your mandates before you raise your rates, and you should be done raising your rates. >> you say inflation -- we don't think of inflation being the problem, we think of deflation
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being the problem globally. >> and so the context of -- the talk about deflation is nonsense, and commodities have stabilized, and natural gas, and gasoline and heating oil and crude oil are all up, and so the inflation numbers are going to start moving higher over the next three months. >> isn't a hike already in the currency markets, the dollar? >> they so desperately want -- >> the dollar could go down. >> it depends on if they hint after the hike, right? >> i suspect it would be similar to a year ago where you go, that's it. especially with the growth rate being slower today than last december. >> do you buy more stocks? >> i agree with with a lot of it, and i think the only thing i would add is the markets seem comfortable, and when the market
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pukes, that's what makes the fed scared about hiking rates. >> just to show we can, the economy is strong enough? >> low rates are not doing anything for the consumer at this point. the house to debt ratio, and i think because u.s. consumers have more interest baring assets than liabilities, low rates are hurting the consumer at this point, and not helping. and they have met their targets, and monetary policy took nine months to filter into the system. >> the stock market, as more and more people start saying they will do it, the stock market will get out of its own way. >> hopefully what we see is the microbeg begin to improve. if companies go back to an environment where they can make money, maybe the stock market can weather higher rates.
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>> the dollar is strengthening again, and oil prices are back a bit but they are still around $50 a barrel, and if the economy is software does the earnings recovery come from? >> i would say the dollar is strengthening again, and it's not strengthening anywhere near the amount it did. >> that was a 15% july move. the dollar is up 1.25 -- >> it will be higher than back then. >> it's the shock from the dollar, it's the shock from lower energy prices. you have seen the multinationals adjust to a world where the dollar is stronger and foreign currencies are weaker, and it's still a headwind, but not -- >> must have been doing business in the uk. that rate of change -- >> yeah, and you are waiting for the big market crash, and you will be disappointed if we don't get one. >> it's all about rates for stocks. stocks have not cared about
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earnings or the economy over the past couple of years and it has been all about easy money, and accommodating central banks and interest rates, and if we are on the cusp of the change, and the uk ten-year yield is up 45 base points in two weeks and that's an astonishing move here, and the 10 year yield is where it was the day before the uk voted to leave. >> we have to go. thank you. >> we have to go, and nice to see you, though. when we come back, bank of america out with their quarterly results. and then netflix paying chris rock $40 million for two specials. we will take a look at how the streaming service is upping its game as wall street gets ready. that and more in just a moment.
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welcome back to "squawk box." we were down 23, and now 24, and down four on the s&p, and down 11 on the nasdaq. we will get a little clarity as far as corporate earnings. ibm and netflix at the close of
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the day, and then on wednesday, morgan stanley and american express, and thursday, verizon and microsoft are the headliners and on friday, general electric and mcdonald's. >> we just got bank of america quarterly results, and beating the forecast on the bottom and top line. and joining us, jeff hart, and it looks like a good number and the stock is rallying. >> it's a good number. when you look at the core banking stuff and it looks pretty much in line, and i think with fairly healthy expectations. it means the core business is outrunning the portfolio on the consumer side, and the biggest numbers comes down to fixed income trading and banking, which we expected after citi and
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jpmorgan on friday, and it looks like a good gain in banking in which the street backs out of thinking. these are good results and stronger than we thought, and they beat in the areas we thought they would beat given what we heard from people last week, and i am not sure it's going to be enough to drive stocks up. >> and the bond trading helps to drive the beats, and is that sustainable? >> yes and no. how is that for a nonanswer? i think better than we have seen the last three or four quarters, it's definitely sustainable, and as strong as we have seen this quarter, probably not. it was a really good third quarter and i would not extrapolate a third quarter forward like this, and the street's expectations for trading have been too low.
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the street had a tendency to take the current quarter and extrapolate it forward, and the last few quarters are pretty bad, and this raised the bar a little bit, and don't look at a strong quarter and figure we are backed up to the glory days. >> and clearly wells fargo new ceo faced a number of questions and the stock fell on friday after its results, and how do you expect some other banks to handle these types of questions. do you think brian phaupb ahas not will bring these issues up. >> i think. and we heard last week that we have done an intunnel investigation and looked it over, and while there are some issues nothing too big, nothing too serious. and a differential point for b of a, when you look at account
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growth versus growth on the accounts, they are focused on decreasing some of the account numbers and trying to focus more on the accounts with higher balances, so the way they are trying to cross sell should insulate them a bit from the wells fargo issues. i am hoping to hear about that when we ask about it on the call. >> did not hear you mention the cost cuts, and this was in the last quarter when it was said they would slash billions in the next few years, and is that going to be a tail wind for the stock in the business? >> yeah, i think so. the expenses came in a little bit above what we were looking for, and i think we were more aggressive than the street there, and the net expenses probably will make investors happy. i would expect the commentary on the call to reiterate the forward guidance. they put out with what seemed hraoeupbg lofty goals last
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quarter, and it doesn't sound like they are backing off those at all. we will get those reiterated, and nothing on the expense front today to make us think those expense saves won't be attainable. >> thank you. coming up, pepsi co-. still to come, the streaming giant doubling down on original programming, but is it paying off? we will dig into the numbers ahead of the company's earnings report, next. guess what guys, i switched to sprint.
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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
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pepsico out with new sales goals. the company announcing it will reduce the amount of sugar in its soft drinks and plans to lower sodium and fat in its products. we asked which retailers are responding to the big shift we are seeing in the consumer. have a listen. >> for example, i have had many
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meetings with tessco, and they had conversations with us on what can we do to help with the journey, and i think there's no exception, walmart has always been somebody in spite of their size asking them to give us healthier products and soft drinks, and every retailer wants balance. they don't want to swing the pendulum one way or the other but to give the consumers a choice. >> can you see more of the interview this morning on ""squawk on the street." and i thought it was interesting she named names including walmart. >> any surprises? >> in the interview? >> in the whole interview? >> yeah, a whole lot of surprises. hearing her talk about the macros in the environment, and when people say healthy, it's a
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squishy topic, and what is healthy, right? look at a chipotle burrito, they have twice the amount of calories as a -- >> most of it is -- so preservatives aren't healthy, and have food without preservatives and see how that works for you after you have meat sitting there. it's all the, you know -- >> gmo, a classic case. >> yeah, just blanket -- >> when i learned the carbs are good for us, then -- >> well, yeah, when they -- science can solve these things for us, but just the whole, you know, the healthy idea, a lot of it is places that earned their
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entire reputation on really voodoo type of health stuff. seriously. anything in moderation. that's the other thing. >> including energy drinks, which are the fastest growing carbonated beverages. >> loaded with caffein, right? >> and sugar. and then we are going to talk about the future of pharma and treating cancer, and take a look at the u.s. equity futures at this hour. 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 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.
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♪ ♪ among the stories front and center this morning, a number of notable earnings reports will be out after today's closing bell. no countries have been named as quote, currency manipulators in the latest treasury report and that does include china, and now it fills only one of three
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requirements for such a label. "the accountant" was at the top of the box office. looks good. warner brothers movie stars ben affleck. >> remember in "the incredibles," i said if everybody has superpowers, nobody has spuperpowers. and it's like -- >> oh, you are back to the other news. >> yeah, that's a joke. >> trump says he will name china that in his first day in office. >> china intervenes directly.
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we do qe and other sorts of more enter operative manipulation. >> the entire world raced to the bottom with competitive evaluation. i would have -- there was a large hint of irony in the story that they decided nobody was a currency manipulator. >> that will tone down the rhetoric sharply when on the campaign trail, it's sky high. let's talk a little politics. and peter peter teal. we will talk to andrew puzder, and he is unveiling a letter of support for trump from business leaders and will join us at 8:00 a.m. to talk about his decision to go public with that.
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one of the big bosses out there. and do you know what today is? >> monday? >> it's boss appreciation day. >> every day for me is boss appreciation. this is the day. >> it's tough to distinguish one day from the other. >> you might want to thank them all the way down -- >> you are going way up. >> it's boss appreciation -- >> i thought you meant our pr guy. >> him, too. go for it. >> matt quail. >> who else do you want to name? this is an important thing. >> it would be tough to distinguish. >> and meg joins us. >> thank you for having me. appreciation day for me, too. >> and he's a boss. >> we appreciate you. >> thank you. >> what you guys are working on
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are the incredible new technology, and it's a new way of treating cancer and tell us about the timeline for getting on the market here because you are getting apparently close. >> well, last when i was on the show we had a lot of promises, and here's what a year can make in that space, which is changing by the weeks, and not by the month or years. right now we have just announced completing the clinical trial which is the pivotal trial, and we are preparing the filing for the fda and anticipate to be on the market in 2017 if we get the okay from the fda, and in order to do that we have right now a manufacturing plant ready to go, and we have the commercial manufacturing and we are working on additional new technologies, and that's the fast pace. >> a lot of people questions
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have are the durability, and how long are people staying with their cancer in check and what you have been seeing and what do you expect to see as the results mature? >> this is an excellent question. what we can show is we can create a pivotal study that started in november of 2015, and by june we finished the khreucl trial in record time, and what we can infer is for patients that were treated in smaller studies, some of the patients are now approaching five years, and these are patients that had no evidence of any cancer now while in the past they have failed every possible therapy, so we believe you will see some of our patients continue for a long period of time. what we have announced, 39% of
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the patients that have absolutely no other treatment options has survived with no evidence of any disease at three months, so we hope that this will continue as is. >> of course in this environment right now, it's a tremendous amount of focus on pricing, and you are precommercial, but this is one of the biggest questions investors have for you, reinvestment and pricing, and how are you looking at that? >> we have now the best commercial team in the industry. this is a new era, and we are paving the way in a new treatment that has never done before, so with that we will do the best we can in order to identify the right price, which obviously we will not announce until we have a drug in the market. >> it's an interesting treatment, though, because it's
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not a chronically taken thing, and there are not several doses and one time you go into the hospital and do this procedure and get personalized treatment, so do you have to think about pricing in a completely different way than for a dose-based treatment? >> that's correct. chemotherapy, you have to give repeatedly and you have to give it multiple times and the toxicity each time you get the treatme treatment, and this is a single infusion, and we take cells and create super cells that are designed to identify, seek and destroy the cancer cells while sparing normal cells. this is a single infusion. the patient has some side affect in early days after the treatment but then he is free of cancer. the 39% of complete responses, complete remissions that i have
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discussed earlier is after a single infusion to this treatment of the patient, so this is a new problem or issue for payers of how do you reimburse one single infusion. >> we are just about out of time, but i have to ask about the competitive landscape because it's shuffling, and do you know what put them on a hold with the fda and that was relieved, and do you sense the excitement around this area at least among your competitors, has that changed? how are you looking at this? >> absolutely not. this is a new era in treatment that can change the entire way patients are being treated with cancer. this is no way to stop technology. we see every week new treatments in engineering therapy that is
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coming to life and this will make its way to the fda over the next years. somebody needs to pave the way and open the door to the fda for the approval of the genetically engineered t cell therapy and we take your own cells to fight. >> i don't think all cancer can be cured by t cells, and it's going to be antibody generated, right? does this work on solid tumors, or just b-cell tumors? >> you ask me so many good questions, and it would take time to answer all that, but that is correct, and we had blood cancers, specifically in aggressive hodgkins, and we are
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addressing solid onkaulg. there are challenges when you go to a tumor, a solid mass, and we have seen large tumor masses dissolving with this, and now you take a t-cell and create a super t-cell and now it can do things it couldn't have done before. it's all about engineering and people that are into the synthetic biology. >> i want anti-bodies there, too. >> combination therapy is something we will definitely see in the future. >> use it all. >> we will. >> doctor, thank you for joining us. >> thank you. >> the people that hate gmo's,
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any of the new cancer -- >> don't label it that. >> that's where all of the advances are being made. we can do these things logically now, and to dismiss all gmo technology is crazy. how many people are tuning in, and we will look at that ahead of the key report. and happy birthday to the "halftime report." the show turns five today, and they are packed today with heavy hitters, and quite a celebration, and that's today on the "halftime report" starting at noon eastern. "squawk box" will be right back.
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we've just been hearing so much about how you're a digital company, yet here you are building a jet engine. well, ge is digital and industrial. like peanut butter and jelly. yeah. ham and cheese. cops and robbers. yeah. nachos and karate. ahh. not that one so much. the rest were really good. socks and shoes. ok, ricky...
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♪ ♪ >> "the squawking dead," coming
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up on amc. and the announcement comes one week before season 7 premiere of the zombie drama, and it will debut in late 2017, and anybody's guess who of the regular will still be around, and at least one is going to be gone when we come back and see -- megan killed one -- >> that's amazing they are up to eight already. >> yeah, and you know this, right? do you watch this one? >> never watched it. >> come on! are you kidding me? >> too busy running a startup. >> that's right. that's a good reason, i guess. looking forward to this and it will make sunday nights good again, although "west world" is pretty good. >> it is good. netflix, a big boost can be
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coming and new streaming can be coming, and 800,000 cable subscribers suspected to cut the cord, and joining us is andre swanson, the ceo of true optics. good morning. >> good to be back. >> let's talk netflix first. >> sure. >> what do you think will happen here? >> i am not exactly sure what will happen in terms of their quarterly subscribers, but in the big scheme of things, it doesn't matter, and i know to the street it does, if i am executives at netflix, there are three core concerns i have regardless of what the last quarter looked like, and first it's increasingly expensive to license content, and second, there's no barrier to entry technologically anymore, so competition, and with international expansion, i can't just rely on american content i have to go and produce local language content and that's very expensive. >> sounds like you are negative,
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and we talked about this netflix picture getting darker, and this is ahead of the tape, don't binge on this stock. so given what you just said, what happens? gets taken out or taken over? >> i am not a stock analyst, right, so in terms of what happens to the specific stock? >> if you are running the company, what do you do? >> when you look at opportunities to buy a company, and typically people buy companies because they have intellectual property, and because the business model is still evolving, and there's really no ip there, so i don't know that apple or disney is coming to buy the stock at some huge premium. if you were trying to get into the future of television, which is streaming, netflix is by far a better position than anybody, so maybe it's not the wall street darling it is, so who would trade places?
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>> who would be a potential buyer if that's the only way out? or -- >> i think it's becoming increasingly difficult to find a motivation to buy netflix, and i am surprised apple did not by netflix next year, and apple has the money and they can compete with netflix right now if they wanted to, and they could out bid netflix, who knows? >> do you think subscribers will turn these services on and off, and once you are hulu, or name your amazon prime -- amazon prime comes with it, but you don't see people getting out of these things? >> well, churn is much higher than what people subscribe to cable, and that's because you
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rely on cable for not only tv, but internet and sometimes a phone, and i think it's unfair when people talk about the churn rate on netflix is high and it's unrealistic, and people overestimate the impact of pricing and when that $10 comes off your debit card i find it hard to believe with all the value netflix is providing, when people see the extra 99 cents, people say they will cancel, i think it's over played. >> and the price hikes, as they start to kick in, people are realizing their prices are going up, and there's a saturation problem, where in the united states, at least, the would be clients are already subscribers. >> i think saturation d domestically is tremendous. i think the pricing or ungrandfathering is way over
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played. if you look at the cost of tphr netflix compared to hulu or others, it's competitively prized. >> what do you think about the money they are spending on content? we saw $40 million for two concerts by chris rock. >> if we look at what are they going to make in terms of new s subscribers from that, i don't see that, and if they try to take that mantle from hbo, it could make sense. >> what about the content and does that model work? >> if i am netflix one of my biggest concerns is i am so reliant on licensing content from other companies and tphout other companies are launching their own services or increasing
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their price, so i am kind of forced to go out and produce my own original content. >> part of the model in producing their own content, but not only would you produce the first five or six seasons, but like "walking dead," it's syndicated or sell it on a second round where it used to be the second sin dtkaduh -- syndication. >> netflix is doing some of that. "house of cards," netflix does not own the rights to that in every single market, and netflix is becoming more and more like viacom or disney and all of those companies are trying to be more like netflix. >> when everybody is competing, in past performance -- remember when ge bought and suddenly they are in the movie business and they are like we can't do this, and we have no idea on any given
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year whether you are going to have a big year at universal or not a big year. that's a scary business to get into, isn't it, to be able to do it again and again. i would rather buy -- >> it's a portfolio approach. >> yeah, that's where you get into big risks and big rewards, right? >> go hard or go home, right? if you try to be the dominant player in professionally produced media entertainment -- >> look how hard it is to develop it. >> tell us how it lines up. what do you think about amazon prime relative to netflix or hulu, and do any of these steal businesses from each other? >> you could argue amazon prime, and amazon's original content is not in the status fear, and hulu, the compelling piece is netflix often has to wait six to nine months before they are
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getting shows, and that's the bigger threat is we are all impatient, and netflix is still by far -- >> i wonder if the election is a threat, and everybody tuned into the owe -- election and live events. >> i banned cable in my house. >> it's boss appreciation day? >> not that cable. when we return, one of the biggest movers. but first tomorrow on "squawk box," we have a ceo triple play. we will talk to the chiefs of united airlines, eli lily, and hasbro, and it starts at 6:00 a.m. eastern time. stay tuned. "squawk box" returns in a moment. .
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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.
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welcome back to "squawk box." let's check out futures right now. we see some improvement, and futures now only down 13, and s&p futures down 2.5, and nasdaq down seven after two weeks. >> a slow and steady improvement this week. we were way up on friday and didn't hold the gains, and up less than 40 so we will see what happens today. hasbro reporting a profit well above estimates, and hasbro's disney related
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offerings that did especially well, and in a programming note, don't miss brian goldnor tomorrow. and then highing bank of america to explore alternativealternati. this must be -- oh, it's you. it's that anchor. >> exactly. >> but you go ahead. coming up, your money, your vote a. new op ed for support from top business leaders, and we'll discuss that on "squawk box" next. instead if getting caught up with the crowd, the investment managers at pgim take a long term view,
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house. 100 business leaders join forces writing an open letter in support of donald trump. ceo andy joins us.
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>> talking about new products and innovation as the final hour of "squawk box" begins right now. ♪ ♪ go big or go home ♪ >> announcer: live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc. i am joe koerner. futures have been improving as the morning goes on. and the tenure was about 1.8 for a while but now has gone back under there, and is at 1.79, and oil prices have been staying above 50 for most of the session, and now they are up but were down a little bit earlier, and now up a percent. and stanley fischer has a
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lunchtime speech today following by a q & a session, and a lot of people will talk about that, and he will talk about the impact of low interest rates and give us a hint on whether december is still on or off the table. and then tesla, a mystery product planned for today will be now planned for wednesday because of refinement, and we don't know really what that means. and here is tesla, and take a look at what is going on in the premarket up marginally. and then our good friend, wilford frost, just off a conference call with bank of america. >> let's dive into some of the reasons we have seen the beat today and start with that trading performance, which was a big surprise as it was with city
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and jpmorgan. it was fixed income led and not equity led, and it was a macro and not micro. and people are concerned whether the boost would continue and he said the performance built momentum as the quarter progressed and that carried through into october as well, so that's pretty encouraging as well, and he did caution trying to extrapolate which is a soft trading performance, and he said on the investment banking side, continuing a trend of growing investment fees for the quarter this year, and then the main driver as we said was up over the quarter, and i did ask him about the shares, and he said client activity was the driver for this quarter and you can't
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look at market share for the quarter's whole but they were taking market share over time in that space and he would not say if it was off deutsche bank. and he says they spent years monitoring governance controls, and they have doubled their efforts but not found anything that concerned them, and mobile banking yoon -- users grew, and that's what they like to talk about often. guys? >> shares up 17% over the last three months and trading higher in the premarket. thank you and we will see you later. other stocks to watch, speaking of banks, deutsche bank not likely to abandon the u.s. market but may scale down its activities here, and deutsche
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bank fighting a department of justice fine over a mortgage crisis bond sales and the stock in europe up over a little less than 1%. mcdonald's losing some executives, and that comes after other departures including soon to retire mcdonald's u.s. president, the chief administrative officer, pete benson, and growth markets manager, david hoffman. selling the canadian wine business to the ontario teacher's plan. the price tag is at about $760 million. wells fargo downgraded, and the firm cutting its price target to $48 from $57, and they do not feel the price is low enough to help the uncertainty. i guess they did not get inspired with the conference
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call with the new ceo on friday. >> i don't know what they see in wells fargo. maybe there are issues at that bank. the federal election commission, kate kelly is here, with more on who broke out checkbook. >> while trump got additional support from key business leaders, including a promise from peter tael for over $1 million, but clinton still has the lead. and sheldon adelson gave nearly a quarter million dollars to the trump campaign, as did his wife, and then a super pac is dedicated to defeating clinton,
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and that's double of what they were to give last month. and td trade joe ricketts gave a million himself, and then peter thiel has in fact pledged $1.25 million. no comment from his spokesman on that this morning. and then karl i con gave $150,000, and bruce burke witnesses told us he was likely to vote trump and gave $150,000. and hedge fund manager, donald
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sus phupb gave $200,000 to clinton. a lot of support here. frankly in the business community, even just glancing down, one committee filing, she is the mainstream candidate. >> like hedge funds, they don't care about consumers that much. our next guest is kaurlz junior and hardees. trump campaign economic adviser, andy puzder joins us, and he is the ceo of a restaurant. it's not what keeps a lot of prominent business leaders from backing donald trump, it's all the other stuff, the focus for
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the last -- well, you know, you are in the world, you know what the focus has been on, and how do you square that as a ceo where you need democrats and republicans and men and women to come into carl's jr., do you worry about the backing of trump? >> there's always a risk when you take a political position, but i think people understand ceo's are just like everybody else, and have the right to have their own political positions and if felt that way, i could not go to the movies because there's hardly a movie star out there whose political position i support, and it's america and you are allowed to support the candidate you want and believe what you want. >> hillary had 11 of the s&p 100, and romney, if you looked at his plans, all 100 of the
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fortune ceos probably should have been on romney's side, and he had 28 and he didn't have one-third of those, and these guys, i wonder about them sometimes. i mean, sometimes i think they support people for cron capitalism, not in terms of what we know is good from hundreds of years of free markets, and i can't believe more of them don't sign on regardless, but sometimes i think they may support somebody for crony capitalism. >> if you are a large business and do a lot of business with the government who controls a lot of the economy at this point, you want the government to grow and want more government spending and you want government types, and not people that really know how to negotiate the deal. >> i know exactly what you are
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talking about, too. we won't mention names, but the huge multinationals -- andrew issing haveis having a hard attack over here, and the -- andrew, do you want to take it from here and tell him these guys are hicks? >> i have a different question, which is to say, how do you feel about his comments about women? >> first of all, you know, i am not here to be a donald trump apologist, and i am here to talk about the economic issues. there are much more important issues than the personal deficiencies from the candidates. >> you can't separate his values and what he represents economically and what he has said. this is your own ethics policy at your restaurants and so i am curious whether you get to keep your job under these circumstances. you say to -- this is
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prohibited, request for dates, sexual favors, unwelcomed sexual advances, slurs, offensive jokes, and any similar conduct that creates, encourages or creates -- would any of his comments come under those categories? >> andrew, let me answer your question. first of all, we have two candidates here that are not perfect people. i view one of them as a very corrupt and very dishonest power hungry candidate, much like a richard nixon type, and the other one is a an alpha male type of candidate, and if i have to choose between a john kennedy and bill clinton type of candidate, i think they would make a better candidate and corruption does serious damage to the united states.
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you can't take donald trump out and look at him like there are no other candidates in the race, and he is running against somebody with her own personality problems, and i am not here to talk about the tabloid aspects of the candidates, and if you want to talk about economic issues that's great, and if you want to talk to somebody about the tabloid aspects, get somebody there. >> i disagree. some are worried about the rhetoric about threatening chinese tariff's on the imports and they are worried it's not realistic to negotiate a more than two-decade old trade deal, and why are you confident and what would you tell the cia of a multiglobal national that is afraid of that policy? >> if you are going to negotiate better trade deals -- by the
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way, if your company is dependant on bad trade deals and get the benefits of low labor and lax environmental laws that raise the cost of manufacturing, you want to vote for hillary clinton because you want those bad trade deals to play in place, and nafta, hillary clinton said she wants to renegotiate nafta out, and i wouldn't say renegotiating that is a problem. if you are going to go in and negotiate with people, the first rule of negotiation is you have to be able to walk away from the table, and if the other side doesn't believe you will walk away and if they don't believe you will do what they say, you will not get a good deal. donald trump doesn't want american companies to have to disclose trade secrets when they do business in another country
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and he doesn't want trade monetary current manipulation out there, and doesn't want taxes imposed that run contrary to the deals, and you want to go in with your strong position. everybody knows trade is important, and what are not important, is massive trade deficits that help american workers and it destroys american manufacturing so we will negotiate these deals, good deals, and there will be trade but it will protect american workers and companies from unfair practices, and free trade has to be fair trade and we don't have trade fair. >> do you worry we will run up the debt, and he plans to cut taxes and perhaps that will spare the economy in ways we don't fully appreciate at the moment, but we are not cutting back on anything? >> if you look at what the tax
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foundation did in what hillary clinton's tax plan and donald trump's tax plan, and they looked at what plan would help growth, and gdp, it has been horrible, it's been anemic, 1% so far this year, and 2% since the recession ended and we would lose 700,000 jobs with her plan. with donald trump's plan, they said we would at least have an increase in gdp growth of about 7% and add about 2 million jobs. when you increase gdp and increase revenues and increase revenue profits and personal incomes, and it allows you to reduce the deficit, and if you have enough deficit reduction, no, i don't worry that a pro growth very positive plan to grow the economy is going to drive us deeper into debt or increase our deficit. i think it will do exactly the
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opposite. and steve forbes thinks we will have a 6% to 7% growth, and i agree with him. >> and none of the s&p -- you don't have any of the s&p 100 guys, and they are all chicken, and you don't have any of those guys in there with you, do you, andy? >> i don't know who is in the s&p 100 -- >> the guys that signed on to your letter, these 100 business guys, do we know any of them? who are they? >> herald hamm, one of the people that really developed the fracking technique. you have karl icon, who everybody knows. you have wilber ross. you have bernie marcus with home depot, and there are an array of people who are very prominent business leaders on the list and i encourage people to read it and we intentionally included small business leaders and small
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business ceos and leaders, because they are the ones that are dependant on gpd growth to see their businesses doing better, and these others may want to influence how much the government regulates them, but small businesses are the ones who are affected by gdp and they are the ones that create jobs and can lead us out of this nonrecovery recovery. >> so not all racist on the list. >> deplorables. >> thanks, joe. coming up, when we return pepsico's ceo speaking out on innovati innovation. and this is the anniversary of the "halftime report." it all starts today at noon.
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welcome back to "squawk box" on a monday. new this morning, pepsico laying out new goals to respond to consumer tastes, and they are going to reduce the amount of sugar in the soft drinks and plans to lower sodium and fat in
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its products, and we asked about the innovation we will see from the company over the next year. here's a nap shot. >> lots of lower sugar products, exciting lower sugar products with a little twist, and you will see a lot more in the nutrition area, where it's expanding quaker drinks a lot more, and the beverage has the equivalent of bowls of oats in a drink. it's expanding, and you will see more of the naked juice which is over $1 billion in the sales today. more of that coming to the market. and you will see a lot more innovation coming from the portfolio. >> we were just talking about
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trade and global ceos, and while i pushed her hard on trying to talk about the election, she obviously would not go there but as a global ceo, keeping america open for business on trade is critical. they operate within 150 countries. billionaires speak out on the new survey of the wealthiest americans, and the details, none on this side, details coming up next. coming up, panic in the kitchen, and it has been one year since chipotle's crisis, and still trying to win back customers. can chipotle recover? we will debate it. "squawk box" will be right back. under $30 million. t and now, another mercedes-benz makes history selling at just over $30,000.
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welcome back to "squawk box." a milestone for "the simpsons," and the series is now in its 28th season, and just 36 episodes away from passing "gun smoke," the only other scripted primetime show to reach the 600-level. the voice cast of the show, and i mean the cast that does the voices has signed on now for two more seasons, all the way through season 30. now to the big screen, "the accountant" topping the box
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office, well above forecast by movie industry analysts. the warner brothers movie stars ben affleck. you have to get a couple more weeks of good numbers to make it all work. >> so far so good. coming up on the show, it's a busy week for the markets. tons of economic data and the feds speak on the agenda, starting today. we will get you ready for the week ahead. and u.s. equities improving. the dow only down four points. stay tuned. "squawk box" will be right back. guess what guys, i switched to sprint.
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♪ ♪ welcome back to "squawk box." here's what is making headlines this monday morning. 45 minutes away from the government's latest report on industrial production, and analysts are expecting an increase of two-tenths of 1%.
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and upgrading stock saying investors are underestimating the fundamentals. and ibm set to report earnings after today's closing bell. new this morning, ubs out with a new billionaire's survey, and one reporter who knows all about billionaires is here. >> asia is creating a new billionaire every three days, and the weakness in the u.s. and europe led billionaire wealth to its first decline in eight years, and the wealth of the 1,400 world's billionaires fell to $5.1 trillion, so they are doing okay still. and there was a slight increase in the number of billionaires, and half of the new billionaires were in asia, following commodity prices and the stronger dollar meant that
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dollar billionaire wealth failed to beat the stock market or gdp for the first time in eight years, and failed to meet the pci. and ubs says 460 of the world's billionaires will pass more than $2 trillion in the next decade. >> the millennials involved with the family in the next generation, they are more, i would say, socially inclined and want to be part of the giving piece of it. one family we interviewed said they are more interested in values than valuables. >> that means that many of the family businesses held by billionaires will be sold and the fortunes to start new companies or invested. >> robert, thank you. we turn to the markets now,
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getting ready to absorb a string of economic reports, and steve lease phupb joins us now. what will ultimately end up moving the market this week? >> earnings tend to trump -- can i use that word? i guess i can use that word. tend to trump the economic data when there's a slew of earnings, but it's a big day for the economic data. starting today with a visit by the fed vice chair, stan fisher. that could have a variety of benefits. >> increased business sales would almost certainly raise the ext productive of the economy by increasing capital spending especially if a company is
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reduced by uncertainty of prospects, and in addition a tight labor market might throw in potential workers that might otherwise sit on the sidelines. >> and one says the overall takeaway is that yellen is inclined to put some weight on the thinking and let the economy run a little hotter than would be appropriate, and while being careful not to overdo it. here's the economic calendar. industrial production, 9:15, and then fischer at 10:00. and the fed's kaplan, and then we will ask sarah what she is waiting on. john wayne speaks a variety of times, but maybe one to watch carefully is at 2:30 on friday. it's a 6.7 for november. >> for december? >> it's, like, 60%, right around
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there. >> you saw atlanta fed, 17? >> gdp came down? >> yeah, 1.5. >> we are not running that. remember, atlanta fed is -- >> i know, but the dollar is so strong already, steve. >> i brought a chart that agrees with you partway, which is if the fed is not going to hike, it ought to tell everybody it's not going to hike. take a look at the two-year. each peak co-insides with the fed meeting, so all of the volatility, which is 20 base points up or down in the market comes from the belief the fed was going to hike and then it didn't hike. if you are not going to hike for a full year, a full 12 months, save joe the hassle of listening to me and the viewers, perhaps, for a full year talking about imminent rate hikes and that's where you see the volatility
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there and let's get on with the business of lending and investing and all that stuff and not worry about it, and they have a full year of about to hike and lost a lot of the benefits of not hiking. if you are not going to hike -- can i say hike or get off the pot, which is what we are talking about here. >> a lot of bad things can happen between now and december. >> terrible things. >> what is interesting, you are not pummeling them on november. why not november? if you are ready to go in september, why not november? >> they need to do it in december because they just need to. >> why shouldn't they do it six days before the election? >> because they can't. >> and they have not done a whole lot of moving so there's not a whole lot of samples -- >> yeah, one data point in ten years. big earnings names coming this week on top of bank of america's report this morning, which is a beat after the bell
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today. imb and netflix, and then johnson & johnson, and microsoft and ge. joining us now is todd gordon, founder and ceo of tradiin the banks continue to beat what seems to be too low expectations, and the group is flat under the year, and it's still an under performer, and do you need to rethink the approach to by banks? >> much to the conversation you are having, the increased of the volatility with the starts and stops of the fed raising and the volatility added to the bottom lines. i like goldman heading into earnings. i think the financials are set and that could be the one sector that saves this market with the potential of the fed rate hike, but as the stock market is coming off, though, will the fed back away and not be as hawkish.
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>> here we are again hearing they should have done it in september but probably going to do it in december and the chinese currency is weakening, and there are's flash backs and this year we started the worst start of the year for stocks ever, right? >> i feel like the market does not like the uncertainty here. no way they will raise in november with no press conference. i really would like to see what the fed is made of post election in december, as i believe the stock market will sell off at the end of the year. the rising dollar starting to hurt rising nationals and ge on friday will be important. ge technically has broken support ahead of the earnings -- >> honeywell had that warning. >> i think hillary will be good for the market. i think she will leave rates low. let's face it. they want to see inflation before we begin to hike, and
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whether that is going to be too late or not, i think donald trump will come in there and shake things up and yellen may not have a job any longer, and short term bad for stocks but i think stocks will rebound, and joe loves my longer term, 2,500 target, and i had to pull it down, joe, sorry to say. >> what is the timeframe? >> end of december, 2017. >> where is it now? >> 2,300. 2500, and had to bring it down. >> you think there's a selloff no matter who is president? >> yeah, no matter what. >> that's a december proposition or it started now already? >> if we could get a look at, like, 1980, and 1990 s&p, i think we rally into 2017. >> we talk about the election and doesn't it matter what the house and senate, which way they go? health care stocks now are the worst performers, and had a terrible week on the idea that the democrats may gain more
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power in the senate, and maybe in the house? >> ultimately wall street likes gridlock. i have a short position. and i bought bonds last week, and i am not an investor but a short term trader, so if you look at longer term bonds in terms of increasing environment, and the 10-year and 30-year treasury, we are not out of the long-term declining rate environment, and i bought bonds. >> treasuries. >> i think if we do one interest rate hike, that's fine, but i think bonds bounce from the area. >> what about the bond sensitive -- does that mean you will buy staples -- yeah, cvs is one of the weakest performing staples, and it has come back and made we sweat the position a little bit, and i am starting to seat staples rebound against over sold levels indicating that
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rates might be towards of a top hence the long tlt position here. 275 is what you have to look for on the 30-year, and then i think it's 2.05 on the 10-year, and once you get through those, you can say we are increasing in the environment. >> thank you, todd. coming up, when we return, an in-depth look at chipotle nearly a year after the chain's food was making people sick. we will talk mexican food in a minute, but tomorrow a rock star lineup of corporate leaders, eli lily, united airlines and hasbro. stay tuned. you are watching "squawk box" right here on cnbc. we're back in a moment.
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welcome back to "squawk box." futures right now, take a quick look, down 20 again after -- no, down ten on the dow jones, and s&p down six on the nasdaq, and the 10-year note, now 1.78, and the yield has been coming down a little bit, and the morning session has gone on. some stocks to watch this morning. group-on trading higher. the price target there, $6.50.
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toy maker, hasbro has estimates, and disney related offerings doing especially well. don't miss brian goldner who will be on "squawk box" tomorrow morning. and then it has been a year since the outbreaks that happened at chipotle restaurants, and the chain has been working to win back customers with promotions and a temporarily loyalty program, and i don't know how you have a temporary loyalty program. there's the interview you did with -- i think you did this, this is you, right, who did the interview with mark crumbbacker?
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>> yes. >> that is also fascinating. >> i love that you were thinking about what you were saying, and you are right, what is a temporary loyalty program? that's what i am focused on. >> what is a temporary loyalty program? >> chipotle after years of pressure from investors gave in and rolled out a rewards program, and it was a summer-long program, and you basically sign up and gain rewards depending on how freak you go and they didn't want to go down the path of the starbucks-like loyalty program, because they can't afford to do so because their food is too expensive. >> the reason i mentioned mark's name, he had been arrested -- >> indicted. >> i apologize. indicted for cocaine possession,
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and then he came back and had a interesting journey that you wrote about in the piece -- >> not like you to go to the salacious part. >> mark, there was complications with an inindictment and he has been reinstated in the company, and he has been important to the marketing for years and it will be crucial to their recovery and the broader issue is if the cocaine issue complicated things because it mixed in this issue around trust and reputation which chipotle is trying to recover from. >> what are the chances they fully recover? >> interesting. first of all, i spent a lot of time with the co-ceo, and monte told me he doesn't know when they will recover, it would be one or two or three, four years. >> what do they think they have to do? >> rebuild brand trust. when you build the brand around
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food with integrity, you break the trust, and it's an insult when you get people sick -- >> yeah, with the norovirus? >> do they know where it came from? >> the story is 20 pages because it takes a while to get to the bottom of what caused this. and the investigation was from beef from australia, and they get a lot of their meat from the same suppliers as you might find from mcdonald's or burger king or subway, and that's another threat of the story we examined as well. >> how do you get the trust back? what do they talk about to get there? >> they are doing a lot of marketing. their new brand campaign is about how their ingredients are royalty, and they treat them beautifully whether it's
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avocados or onions, and the rewards program is the second thing. their options are limited. when jack-in-the-box had their e. coli crisis in 1993, they could offer their food at a significantly discounted rate, but when there is a high cost of food with integrity, so you can't afford to lower things to 99 cents and market it -- >> where do they think they are losing the business to? >> if you walk down the street, you will see more panera's, and high-end design, sort of beautiful representations of the restaurant experience, and i think chipotle has a lot of issues not with the fast casual market but with mexican-inspired food, and there are other markets popping up. >> is it the piece about it, all
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the franchises -- can't be too many mexicans? >> are you a big fan of taco bell? >> yes, i am. why do you say that? yeah, and just with breakfast offerings from taco bell, and i might have mentioned that i liked hard-shell tacos. >> one component if you like breakfast tacos -- >> no, i don't. they -- >> i like breakfast tacos. chipotle spent a year and a half exploring the breakfast burrito. they couldn't figure it out. >> why not? it's big business. >> it's still available at one or two airports for a variety of reasons, because the eggs don't sell well. and they introduced chorizo as their first new menu item in years, so -- >> thank you. a copy of it right here.
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>> that's not related to chipotle. >> yeah, inside the crisis, k u chipotle at the top. >> i will hook you months. >> might need a change from mexican food in general so. when we come back, jim cramer joins us live from the new york stock exchange. we'll get his take on today's top stories. busy week for earnings. he's gearing up. but first, as we head to break, a check on futures at this hour. recovering a bit here off the lows. dow futures now only down five. s&p down two, nasdaq down nearly four. stay tuned. you're watching "squawk box" on cnbc.
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welcome back to "squawk box" this morning. vice president joe biden is warning russia that the u.s. could retaliate against moscow for cyber attacks. >> why haven't we sent a message yet to putin? >> we're sending a message. we have the capacity to do it -- >> he'll know it? >> he'll know it. and it will be at the time of our choosing and under the circumstances that have the greatest impact. >> u.s. intelligence community has publicly blamed the russian government for hacking.
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of course wikileaks and everything else people think they were behind. >> that was sort of cryptic. >> yes, very cryptic. >> joe. let's get down to the new york stock exchange. jim cramer joins us now. you're back. was that last week or time flies, doesn't it, jim? were you in san francisco? then you were -- you're down in d.c., right? i follow you like i'm not spying on you -- >> yeah. >> but were you at georgetown or something? >> georgetown for parents weekend and then watched the eagles play. i brought donny jones, our punter, in today. he had a great game. we never slag the eagles even if they don't win the game, but that was a tough loss. by the way scott wapner thinking i don't remember the redskins down there. >> yes, he is. >> congratulations on the fifth year, scott wapner. >> i think four or five straight for the redskins. kirk cousins, right? >> yeah. >> they look pretty good. weird every year, isn't it? different teams seem to get really good? i never know what to expect. the only thing i know the
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bengals are not going to be very good. >> no, but the nfc east is supposed to be the worst and suddenly it's the best. it's like the old days chlgt. i love it. >> jim, we've been talking again, sorry to say, even though we're in the middle of earnings season been talking about the fed again -- i know, i know. but this week we'll get pretty good indication of corporate america and where we are right now. i'm interested in the outlook based on where the dollar is. because it hasn't been -- you know, on a percentage basis it hasn't moved as much, but it's back up to the highs where we got all these problems last year, right? >> yeah. i mean, look, i think that bank of america was really good this morning. citi was good last week. j.p. morgan, hasbro, none of this matters if we have stan fisher speaking at 12:00. i mean, stan sell them all fisher, this is a guy you know to sell ahead. this is the two-rate hike guy. it's amazing. this is a guy who could cast a paul on anything.
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but that's the way it works right now. we've got the fed versus oil. if oil goes up, stan fisher doesn't matter. oil turned around this morning and futures went up. we're kind of in a market that makes no sense at all. bank of america did have a great quarter. >> jim, we'll watch in a few minutes, about four minutes, and we'll see you. >> thank you. >> okay. coming up, we have this morning's biggest movers. then later today, don't miss the beginning of the anniversary week on the "halftime report." scott wapner will be joined by david teper, carl icahn and jeffrey gundlach, all starts today as it always does at noon. whether it's bringing cutting-edge wifi to 35,000 fans... or keeping a hotel's guests connected. businesses count on communication,
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and communication counts on centurylink. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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welcome back to "squawk box." stocks to watch, bank of america beating the street on the top and bottom line. strong trading results help make up for weakness in some of the bank's consumer businesses. just heard jim cramer talking about the solid report. toy maker hasbro also topping estimates. don't forget, tomorrow we'll have hasbro ceo brian goldner will be on "squawk box" tomorrow morning with a first on cnbc interview. final quick check of the markets here. futures have recovered a lot from earlier lows. dow futures down only -- now up
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positive. nasdaq down two, s&p down half a point. >> thanks to taco bell. >> taco bell, they were on the time when oil turned around. that's a miracle. >> that's no small feat especially on a monday. >> thank you, sarah, for coming in this morning. >> thank you for having me. this was fun. >> make sure you join us tomorrow. in the meantime, "squawk on the street" begins right now. ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. we set the table for a jam packed week of earnings. 80 s&p companies will report. the last presidential debate, fed speak all week long. europe with mild losses at the moment and ten-year's come back in from 1.8 on friday as empire had its fourth straight miss. road map begins with a big beat for bank of america. shares are up on strong trading results. >> goldman says


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