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tv   Squawk Box  CNBC  November 2, 2016 6:00am-9:01am EDT

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2016 and "squawk box" begins right now. ♪ >> announcer: live from new york where business never sleeps this is "squawk box". good morning welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin, joe kernen and kayla tausche is here with us. our top market story uncertainty. investors are worried about the u.s. presidential election and today's fed decision. wall street's so-called fear index giving us good insight. the vix spiking 40% over to last six days. take a look at u.s. equity futures that hour. what you're looking at is a bit of a down day. dow can open up off 43 points. s&p opening down five points and nasdaq opening down 7 points. hang seng also falling nearly 1.5%.
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european equities -- everybody is keying off everybody. again red arrows pretty much across the board and finally can you look at crude prices right now. wti -- >> terrible session. when we were talking yesterday we were up 40 points in the morning. funny way things happen. there's sort of a premise and maybe it's correct among democrats or people who favor hillary that trump would be a disaster for the stock market and sell off. it's funny when you see the market go down yesterday for whatever reason, uncertainty or whatever, it becomes oh, it's uncertainty. you think it's because maybe now trump can win? >> i won't go that far. it's uncertain. a hillary clinton win because more uncertain. >> really in the past two days the likelihood of donald trump winning -- >> not two days. >> five days. >> more than that. >> two weeks.
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>> whatever length of time you want to give it his chances have increased whether you think they are substantial or not clearly the market thinks they are substantial. and i have -- i know you disagree but that in at least the immediate impact is sort of a knee jerk sell off and ask questions later. i do believe, by the way, if you do ask the questions later the market will stabilize and might come back. >> i'm not trying to get you to get any of these places. when you see it sells off that could be an indication that some people think that hillary is not a lock which has been -- three or four times it's been -- the election has been over three or four times. >> the polls are so varying at this stage. you have reuters that says clinton up by five. nbc clinton says trump up by six. >> now "l.a. times" says trump is up by six.
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swing states. did you see the polls. pennsylvania, north carolina. some of the locks that were and florida and ohio now almost look like i won't say safe. but it's getting very, very interesting. earlier people pointed out 538 nate silver had the cubs chances of coming back and trump's chances were almost to the decimal point. i think they had a 25% chance both. and just thinking about what a 25% chance actually is. it sounds like 99%. if you have a 75% chance you think it's a done deal. but the ability of the cubs to win three games that's not out of the question. >> your saying we're in game seven of the election. >> they won two. they blew them out last night. one game. i love seventh games. i may have to stay up. cubs could still lose. 25% chance can, in fact, happen. >> therefore, what happens to
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the market? >> the cubs, i think everybody would be happy and people might buy just based to ending. what is it? 108 years whatever. ending that drought might give everyone -- >> i'm agnostic on that stuff. market. >> i'm going read your piece from yesterday to understand what the markets are going to do. like ed keenan. >> how are you >> he said it in the notes. all right. we're going to get his take and talk to him >> he said that. >> we do have a full economic agenda today. october adp employment report is out at 8:15 eastern. the forecast is for an increase of 170,000 in private payrolls. fed wraps up its two day meeting today, a policy statement but no press conference happens at 2:00 p.m. eastern. press conference will be delayed
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until december which is why fed fund futures are pricing bin a 70% chance of a hike then rather than this month. you can catch all of the news and complete coverage of the decision and global market reaction right here on cnbc this afternoon on earning central. aliba alibaba, time warner is reporting. after the bell we hear from al qaeda. the parade keeps going on. >> microsoft says russia linked hackers are exploiting a windows flaw and behind some recent cyber attacks. the group known as fancy bear has been linked to the russian government -- fancy pants. >>cozy bear and there's fancy bear. they give them bear names because of the type of entry they use to get in.
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>> really. because russia is a giant bear. that's been used to describe russia. >> fuzzy bear. >> that's nice. >> care bear. >> right in the middle of a sentence. the group widely known as fancy bear has been linked to the russian government and previous u.s. political hacks. the bug was revealed by google and caused friction between the two tech giants. google gave microsoft ten days to fix the flaw. but failed to react. microsoft said they will release a fix on november 8th. >> getting a hair cut? >> i am. did you know that? >> no. i just assumed. >> honest to god i am. >> 8th of november is an important day for you. >> the gray is kind of getting frizzy. russian president putin is trying to push microsoft and its products out of russia.
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planning to replace foreign software with domestic alternatives and has already blocked linked in. microsoft is pretty good. what's the russian version of like a windows operating system? you can do a "saturday night live" on this. they don't seem quite as good. like a russian car isn't quite a tesla. is it? >> not yet. you saw some -- >> russian airplanes. feel like flying around on russian airplanes. >> there's new military planes. i was on your favorite website the drudge report. there's these new -- >> what prompted to you switch off the -- your screen saver is the "huffington post". what prompted you to switch off from that. was a flight from mother jones? valeant says its in talks with third-party to sell its salix stomach drug business. reports surfaced that japan's
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takata pharmaceuticals is interested. the deal could raise as much as $10 billion. shares jumped 30% when the news reported but since mode rated. you all cleaned up ed. the presidential election today the fed meeting and this week's job data all potentially big market movers. joining us now is ed keenan. and tony roth. so ed has the advantage there. but tony, you got a philosophy degree like from brown. you got some ph.d. in french or something, and then you went to harvard for law school and you ended up a money manager. >> underperformed. >> how did that work. how did you finally decide i'll -- you got all that great education. you could be suing people in french about philosophy but
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you're not. >> i had a french girlfriend and that didn't work out. that chapter got pushed to the side. >> you knew how to speak french but didn't help out. >> it did until we moved back to states and then she left. >> i read in your notes uncertainty. does uncertainty mean possible trump win or we don't know hillary will win by 60% or 70%. what does uncertainty mean for you >> a possible trump win. you have to look at the polls. the polls are averages over the prior seven days approximately. you look at 538 which you alluded to earlier. >> which is not a poll. that combines all the polls. >> there's a lag. a significant lag. >> 69 this morning. >> you look at 69. you know the momentum is moving quickly towards trump. it will stop at some point. might stop when hillary wins. it will stop at some point. you're looking at pretty much a
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coin toss at this point. the market have not priced that in. markets are starting to price that in. >> so that was my point. a lot of people like to say markets really going crash if trump gets in but if the market is down since august wow the market is down. does that mean, you know, they are afraid to connect it. they are afraid to say what they are worried about might actually happen? petrified at this point. that's why you were -- >> there was a piece the same day as your piece, and he looked at all the polls and the movement and the peso and concluded markets are afraid of the possibility of a trump administration. but on the other hand, i think to put this all in context we're only a few percent from the all time high. >> shifted his 2100 up to 2250.
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>> you jinxed him. >> we knew we were going 2100. is there anyone certainty about the fed? i think we're certain about fed. nothing in november, a quarter in december. >> i don't think it matters now in the short term. we're focused are they going to use the language this month. i don't think it matters. the fed will keep its optionality. what matters who wins this election. if trump win, probably have 10% down side on text markets. significant down side on the currency markets. we're at the tip of the iceberg. >> you think that stays that way. is that a knee jerk, early sell ask questions later but then as people ask questions over the next month or two you get a, not necessarily a quick snap back but something that looks like that. >> you get significant anxiety until inauguration and through the inauguration.
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>> what's going to happen? >> here's what's going to happen. we have a country -- we can put you in the white house or joe in the white house and he would attract some fine talent around him. we got to see what team trump assembles. >> we would govern differently. there would be less government. >> andrew would be in your cabinet? >> my kitchen cabinet. >> what would matter is who does trump bring around him. does he tone down his rhetoric? will he be the temperament he manifested during the campaign or temperament we're more accustomed to as a governor. >> have a honeymoon period and a lot of political capital? >> i think clearly it does. >> either way it will be rocky sailing. >> a lot more uncertainty with trump. i agree with that. >> actually there's some
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uncertainty but fundamentals are getting better. if you step back and look back at the fundamentals, earning season was quite good. >> we were up 1% year-on-year for earnings and revenue -- >> revenue was 2.5% including a big drop in energy. >> dollar strong now. >> it's strengthened modestly but not that much. we did research yesterday where we suggested that a fed hike might help the stock market. if you look at the historically relationship of interest rates and market valuations very low rates usually or associated with worse valuations and little bit higher rates may help people's confidence in future growth. >> do you take risk off for the next few months >> we pull back in july. late july we took risk off the table. so i raised a little cash yesterday. we're playing it pretty
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cautiously. >> if we get a clinton outcome for sure it seems to us we're at a pretty important inflection points in monetary policy. and to ed's point you look at the relationship interest rates and savings, interest rapists goi -- rates go down. so we get a little bit more return on investments, saving rates go down. >> you know your choice. can have kudlow as treasury. krugman as chief of staff. >> i'll give you my list. >> michael moore will be epa. >> he's so wrong on who will be on the list. >> i've given you my picks.
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you want some of my supreme court. i'll give you 11 of those too. >> we have whole commercial break to discuss. >> thanks guys. coming up just six days left until americans go to the polls and election day has been cloud by investigations into hillary clinton's emails and the timing of the fbi disclosure. the latest from the campaign trail. that's up next. surprise!!!!! we heard you got a job as a developer! its official, i work for ge!! what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake.
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so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is?
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obamacare health care exchange is open for you nor enrollment. the process began yesterday. the health and human services department reports the site handled 50% more applications compared to the first day of enrollment last year. this comes despite an increase in premiums as a benchmark. a typical low cost plan will cost 25% more in 2017. just six more days to go until americans make it to the polls and there's plenty of work to do on the campaign trail as the candidates prepare to fight until the bitter end. john hard swood on set with us and he has more on where things stand. >> good morning, andrew. look this is a very close race.
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the polls have tightened but it's still a big electoral challenge for donald trump and i just want to sketch that out for you. remember we start with donald trump assuming the 206 electoral votes that mitt romney won in 2012. he has to build on that. he's got four very strong prospects of taking away blue states and putting them in the red column. we're talking about florida, ohio, iowa and nevada. he leads in all of them except nevada and hillary clinton essentially is tied with him there. however, even if he gets all of those states he only gets to 265 electoral votes. he's got another set of targets that key go after, problem is he is trailing outside the margin of error in all those states, places like michigan, wisconsin, virginia, colorado. all these are states that barack obama won in 2012. in addition to that you've got two prospects arizona and north carolina for hillary clinton to take states out of the red column and put them in the blue
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and that makes donald trump's hill even steeper. her best prospect is north carolina where she's had a lead although the lead is down. in arizona she trails but very close to donald trump. so this is why the math is very difficult, guys, for donald trump to work even as the national polls draw closer. however if he goes a point where he's wane point or two, a point and a half of hillary clinton in the popular vote, that electoral calculus will change because states are uniform enough that once the popular vote gets v-very close then a whole lot of states -- >> how is it possible that, for example, the nbc/"wall street journal" poll has trump up now -- hillary up plus six. >> well it's an old poll. >> old poll. >> yes. we were up six the last time we did it. >> some of the state polls are closer. >> some are. >> even pennsylvania. will you serve in my
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administration as my press secretary. >> what's your agenda? i got to see if i can live with your agenda. >> michael moore epa. leo is epa. i don't know what i was thinking. >> who is your treasury. >> kudlow is treasury secretary. >> and you press secretary. >> what i do get? >> i have to think. >> what i do get? >> would you accept the vice presidency that way we can unite the country. >> you couldn't handle four years. >> going back to the question you asked you were talking about our survey monkey poll which came out on monday afternoon. the difference between these polls is largely not entirely but largely on the composition of the electorate and who will turn out. for example in the abc/"the washington post" poll yesterday
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it showed donald trump plus one for the first time since may. a week ago ten days ago it showed hillary clinton up 12. what's changed? gary langer the pollster says it's not preferences it's the relative enthusiasm for two sides and once you factor in the enthusiasm that's how theycle can you late who will turn out the vote. if hillary clinton's voters are feeling more down cast they will answer poll questions in a way that causes people to say that person is not likely to vote. >> since you know more about these polls and how they are taken, do you believe the polls? >> yes. >> do you? >> you have to account for different methodologies. there's a lot of bad polls out there. there are very smarlt pollsters who know what they are doing including the people at the nbc/"wall street journal" poll. we'll have our last poll this
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weekend. i trust them because i've worked for them for the last 25 years. i trust them more than any other poll. however, the best way to approach it is to average all the polls. >> what do the candidates do themselves different from the national polls? >> that's a key point as well. >> trump was in wisconsin yesterday which wasn't even a state we were just talking about. >> trump has not bean big believer in polls. and tony febrezio is in dispute over payment that he says he's owed. the key difference in 2012 and why the obama campaign polls were more accurate than the public polls, state-of-the-art in public polls has been to do ran tom digit dial. you have a computer and if you do that that's how you do get a
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random sample. the campaigns do it later. they have voerjt strater regist. they have vote history. they have a database. they have a greater amount of information that they bring to bear to figuring out who is going to vote based on past performance and what they think will happen and how they are going to vote. that's why -- when we got towards election day last year our poll the nbc/"wall street journal" poll had barack obama up i think a point or two over mitt romney. he ended up outperforming that and the campaign told us they were going to outperform that and they were proven right. now everyone's models can be off the next time, past performance is no guarantee of future results, so we'll see what happens. but hillary clinton has the same pollster. >> i'm fascinated. >> you've never been called bay
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pollster. >> i've never been called. >> they know who you're voting for. they don't need to call you. >> have you been poll snoed? >> no. >> how far been polled. >> i don't have a home number. >> cell phones >> yes, i have been polled. like many people this another problem with the polls. it's complicated. but fewer and fewer people will answer a phone call from pollsters and sit there for ten minutes and do the survey. if that's the case, it makes polls more expensive because you got to keep calling people and you have to persist with the same number, the same people who initially don't respond. if you don't call them back then you lose the randomness of your survey. this is why cheap polls are easy, and good polls are expensive. >> john harwood, breaking it
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down. that was an education for me and i want to thank you for that. >> i'm still trying to figure out your cabinet. in my cabinet we'll have four or five few perm. like rick perry i'll shut down some. i'll say again energy, energy, energy. >> i can be nba commissioner? >> you don't want press secretary. >> i want nba commissioner. >> tell me what you want. >> ambassador to italy. >> not bad. >> not bad. >> for the pasta. >> will you stay there? >> happily. >> you got to buy wine for the parties.
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♪ ♪ come back any time ♪ playback ♪ come back any time welcome back to "squawk box" right here on cnbc. take a look at u.s. equity futures. we have some red arrows as we talk about uncertainty. we'll see if that's election uncertainty or something else. dow will open up off 62 points. s&p 500 will open off about 7 points and nasdaq will open off 12 points. american petroleum institute reported crude supplies rose by 3.9 million barrels in the last week. joining us to talk more our good fred matt smith director of commodity research. good morning to you. the prices come down, down, down. above the 50 handle. now sliding back. i shouldn't say great.
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everybody has a different feeling of what great is. where do you stand? >> well, with the inventory report today we likely to see a build and that was reflected in last night's report so we're likely to see prices move lower from here. >> how much lower? >> part of it is baked in to the cake because of the number last night. but we have the opec meeting coming up at the end of this month. in terj of the actual physical flows we're seeing opec the week before last loading a record amount of crude, 29 million barrels a day in that week. and so there's physical stress there. they are pumping, pumping, pumping. it's not saudi, iran and iraq, libya is coming back. nigeria is coming back. >> will it be sustained and sit
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where? >> everything is hinging on the opec meeting. we're likely to get some sort of positive rhetoric out of the group. saudi is trying to push for some sort of agreement. should we get that we'll see a bump in prices. the reality is the physical flows are telling us something else so we're still over supplied. so from that perspective we should hang in this 40 to 50 dollar region. >> do you think expectations whatever we get by november 30th is too high? are people making too much out of this? >> people are very negative because we've had a few meetings in the last few weeks where there hasn't been any sort of positive news coming from that. now the expectation, that bar has been lowered so much and i think saudi is so in tune to trying to make some decision that we'll get something that will -- a little bit bambozle the market. prices could get a bump.
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even if we do doesn't mean they will put that into plays. >> i want to thank matt for using the word bamboozle. like a bingo word for me. >> scrabble. is that an actual word. >> you might have to use all of your letters for that. >> good one. >> nice going. the government's small business administration, maybe that's what i would do, sba says women are launching more than a thousand business as day. they are still not attractings much money as men when it comes to venture capital funding opinion our next guest is looking to change that. so you're going live today? >> we went live just now.
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per "squawk box". >> hopefully we don't crash your site right now with all the folks watching. >> we've been testing extensively. >> how many applications are you expecting? how much money your expecting to give women in the next few weeks? >> i fund women is a crowd funding site for women. the crowd funding comes from the people, friends, family and followers of the actual entrepreneur. the funds are limitless, really. we've been bombarded with applications in our beta period. we opened up application about a month ago and got a couple for a couple of 20 beta spots. applications are coming in. now that we're open for business we expect it to be exciting. >> how does it work. if i decide i want to fund one of these businesses is it like kick starter or i do get a staying company. >> it's like a kick starter. just for women. no other platform that's built just for women.
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we're different in three fundamental ways. number one, we off free crowd funding coaching to any woman who needs it. that's something we offer that nobody else does. number two we help women tell stories of their businesses through video. we're video experts and women have a hard time sometimes telling our stories, talking about our accomplishments, and that's a big deal in terms of selling your business. so we help them do that. and the third thing is pay it forward model. this very different than our competitors. where we directly reinvest 20% of our fees into live entrepreneurial campaigns on the site. the pay it forward model is nice for everybody. >> what type of investors are wanting to buy into these companies that feel like they are looking specifically for a woman-led business and they want to go to your site instead of going to indigo go and kick
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starter. >> we're one stop shop. there's millions of women with brilliant ideas and serious street credit in their careers that just need the confidence and the push to start their businesses. so in terms of investors they are every day people like you and i. this isn't for equity, this is to help get the businesses start pandemic we're about funding for minimum viable products, prototypes and products. we like to think of the step before an entrepreneur is ready to go out and raise an angel round. >> what type of companies are involved? >> we have a woman in atlanta who is a landscape architect who is repurposing shipping containers as low-income housing and office space which is incredible. we have a short film. we have another project who is transforming the way people view
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porn online which is pretty exciting. i know. >> what do you mean by that? >> what i do mean by that? go to ifundwomen and check it out. she's legit. we have another, a tech star who, woman who graduated from tech star. a ted fellow. serious women with massive street credit who are starting their businesses that will blow up. we vet our entrepreneurs very, very carefully and only let entrepreneurs on the platform that have street credit. >> can i ask this one last question which has to do with this whole model this idea people are twoilg crowilling to source without taking a stake. >> it works. when you are a real entrepreneur with a real business and street credit and a business man and you just need money to get going, right, $30,000, $50,000,
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too small for an angel round or seed round. your friends, family, followers, they want to help you. so we went out and literally facebook, twitter, i cold called people, i talked to old friends from high school. everybody want toad contribute. we raised a lot of money. that started our business. it works. >> i would encourage male feminists to go on and swroet your dollars and happy these female entrepreneurs get started. and for women watching we're open for business. stocks to watch today, tableau software reporting third quarter revenue that missed estimates. it was particularly affected by softness in europe and middle east. electronic arts now raising its full year guidance.
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company expects to generate record cash flow due to such games as fifa 17 and battlefield 1. and pioneer natural resource reporting lower than expected profits in the third quarter. the company boosting 2016 production targets and increasing hits hedging program for next year. mr. ambassador, would you like to -- >> thank you, sir. >> when we come back a warning for holiday travellers. new airline forecasts for thanksgiving week and things could get ugly. we got tell you about that story in just a bit. back in a moment. opposite coming twoup hours with guest host bob journey founder and founder an lj companies. he joins us at the top of the hour to talk about election, the
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economy and a lot more. "squawk box" will be right back. 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. 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?
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>> welcome back to box. elon musk making his pitch to tesla for solar city.
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the $2.6 billion transaction will add half a billion cash to the electric carmaker's balance sheet and contribute over a billion dollars to revenue in 2017. musk has described the integration of the energy and transportation firms as what he says is a no brainer. here's what he had to say to nay sayers on a conference call to investors. >> predict about outcome how could they predict outcome of tesla in the past and if they had been uniformly -- batting average of zero you should question whether their future predictions are going to be better. >> shares of tesla are down about 13% since that deal was made public back in june. shareholders will sheet on the proposed transaction, the date to watch november 17th. cars are. >> cars are. >> elon musk.
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>> elon musk would be my car czar. he would be head of department of energy. >> stick him in there. >> absolutely. >> are we going to do this for the entire show? >> yes. we're three weeks away database i want to be public. i'm thinking jamie dimon as treasury secretary. it would upset elizabeth warren. >> i thought elizabeth warren would be a shoe in for you. your people down the street won't be happy. >> they didn't put her in charge of her consumer protection -- see -- >> jamie dimon. >> i might put her this. this could filter back to that building with the bars on the windows where you work every day. >> that's okay. >> "new york times" will hear you put jamie dimon in. you'll be booed. >> i feel comfortable with my
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selection. >> he's a democrat. >> he's not running for office. >> now three weeks away from thanksgiving and travel for the holiday expected to be busier this year. trade group -- >> can jamie and lloyd do it together. >> co-counsels like in rome. didn't work well. how about at citi group. trade group airlines for america says more than 27 million passengers are expected to fly on u.s. carers friday november 18th through tuesday november 29th and that's up 2.5% from last year. we'll have more cabinet picks when we return. >> oh, my gosh. bill acminnesota in front of the consumer protection. >> what about valeant. >> i have to think about that.
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>> you let people gouge price on drugs? that's good. >> i hear you. >> rethink that. where do you want to but ken griffith? >> strictly -- >> who is your fed chief? going to leave janet yellen in? >> bring bernanke back. >> ceo double play. ceo and incoming ceo -- >> give sandberg something big. absolutely. >> she's got a pretty big job. >> government salaries are very high. >> like she needs a salary. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere.
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quarterly results just came out from te connectivity. the sensor designer and manufacturer topping earnings expectations. revenue was in line citing strong performance in their automotive and aerospace divisions. joining us now to break down the quarter, tom lynch, outgoing ceo of te connectivity. and current president and incoming ceo presumably. we'll see how this interview goes. don't be nervous though.
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see, we should mention that te connectivity is part of cnbc's i q100 index because you guys innovate a lot of innovation for what you gentlemen do. you're too young, number one, to be retired. it makes sense for you at this point? >> absolutely. been doing it for 11 years. have a great successor. time is right. >> i'll bet the company's in unbelievable position for you to take over at this point given this gentleman's efforts. >> under tom's leadership we've had a great foundation to build upon. like you talked about with the connected trends we're around, we're feeling good about where we can go in the future. >> people may not know the company. i can't believe it's been five years since you named this. it's now te connectivity. is the company doing the same things it did five years ago? or have so many things changed since then that everything is going to be -- >> a lot of things are
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different. we've exited some business on the network side. applications for vehicles, airplanes b factory floor. so highly engineered products that are critical to connecters, kr sensors. >> take into account everything we can do with our hand held device. there are cables that go under the ocean that carry this. at 20,000 feet? >> continent to continent. >> we were talking offcamera. you drop it and it sinks down. how far can you go in what buries the cable? >> basically the backbone for the cloud. all the big cloud operators use our systems. and it goes continent to
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continent and our ships and our fleet as well as our employees actually put those in, joe. we do use rovs to deploy around the world. >> if there's a break, you can send something down to fix it? >> we send crews to repair it. >> how safe are they? >> they're extremely safe. >> so when we hear about potentially internet undersea cables being the next threat, that russia's eyeing them, what do you think? is that a head fake? >> no. i think telecommunications is very important. but by the largest carriers of the world. when we think about a perspective, our customers, we serve them very well. and the geopolitical side, we work with our customers around that. >> so how much is dependent on, like, the automotive business which has been strong. >> about 40% of our business. >> how much? >> 40% of the company is automotive.
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so we really benefit from trends around the world. what are you making that goes into the cars? >> connecters, sensors. think of every application in the car. if you want to improve emissions, you need more. if you want cameras to help autonomous driving, you need more sensors in the cars. >> i don't know. it sounds complicated. are you ready? seriously? how long have you been there? >> 15 years. >> wow. i bet you've got -- probably 100,000 different products. >> 500,000. >> i said 100. name them. >> name a all of them? >> he could, actually. >> other than -- okay. what's your next biggest segment after auto? >> typically the industrial markets. we serve aerospace.
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as well as we also serve the general market. that's a very big business for us. and it builds on the harsh trends. very big business for us. >> when you think of the internet of things, the internet of things is enabled by sensors and low cost computing and connectivity. >> good business for years to come. if you could estimate a five-year growth rate for earnings per share, could you -- >> i'll let him. >> next year we're basically targeting mid-single digit growth. double digit eps. and it is around those electronic trends. we think we can grow greater gdp. dollar has been stable going into next year. when it did strengthen down to the 110, that feels pretty solid
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and that's behind us. >> it's a translation problem but we're balanced around the world. >> so would it matter what the next president does or is it more important that global growth ramped up? >> more important that it ramps up. >> we had something to do in this country. that can make a difference. thank you. when's your last -- you're going to be nonexecutive -- >> executive chairman. >> i'd stay for awhile. hang out. >> so did you plan the matching ties? >> actually we didn't. >> thank you. >> thanks a lot. coming up, our guest host for the rest of the show will be bob johnson. founder and chairman of the rlj companies. we'll talk politics, investing, media merger, real estate, and a lot more. stay tuned. today, i am helpingk better... and also feel better. i am helping hospitals personalize treatments using billions of data points. and working wi medtronic
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to predict the highs and lows of diabetes, hours in advance. and i am working with orreco to use biomarker data to boost the performance of athletes. hello, my name is watson. working together, we can outthink anything.
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the ever-changing media landscape. robert johnson joins us for the hour. from at&t's deal to take over time warner to the election and who should lead the country to the debt crisis in puerto rico. we'll cover it all straight ahead. earnings, the fed, and jobs in focus for the markets. alibaba and time warner reporting this hour. the numbers and market reaction straight ahead. and model and entrepreneur and grandfather of former president george h.w. bsh is joining us to talk about building her business. her company is looking to end world hunger. she's here to explain how as the second hour of "squawk box" begins right now. live from the beating heart of business, new york city, this is quarterback.
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. >> welcome back to "squawk box" here on cnbc. i'm joe kernen along with andrew ross sorkin and kayla tausche. since august it has not been smooth sailing for a lot of the averages. and for a brief time yesterday we were actually below 2100 which hasn't been on the s&p which we haven't seen for awhile. >> and the discussion overnight about what was moving asia markets was uncertainty about our election. so it's spanning the globe. of course we're going to talk more about it. in the headlines this morning, we're a little over an hour away from adp's private sector employment. consensus called for 170,000 new private sector jobs. the federal reserve's interest rate decision and policy statement will be out at 2:00 p.m. eastern time. investors are not expecting a rate hike this time around but
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will be looking for clues about the timing of future increases and whether a hike at the december meeting is all but certain at this point. we're watching shares of square this morning. it did lose 9 cents per share. revenue exceeded forecasts as well. the company also raised its guidance for the whole year because it's processing more transactions and they make most of their money from a percentage fee that they charge on transactions. you get more transactions? you get more revenue. crazy how that works. >> i was watching. what time was that? >> 5:00, 6:00 p.m.? >> the numbers came out and you were analyzing. she knows a lot about square. >> she does. >> i cover the payments companies. >> that's why you were saying it. i was talking to you earlier about it that i was fascinated that you actually knew -- >> people watch it closely because of jack dorsey running that one and twitter. >> you know how to work it? stick it on your phone and swipe it?
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>> it's tougher than it used to be. a lot of phones don't have the jack anymore. the new iphones. >> they use new readers. >> you've seen the apple ads on what you can do. i mean, go out on your bicycle in the pouring rain and stick the thing right on the front and film it while you're doing it and it doesn't get ruined. have you seen those ads? >> i saw one of them. >> yeah. pretty cool, but i don't know if that's enough to make up for not having the jack? being water resistant. although do you ever -- when you go to the bathroom with your phone. i'm so scared. it's going to happen one of these days. it's going to fall into the toilet. right? and it'd be good if you could fish it out and nothing would be wrong with it. right? >> well, the trick was always to put the phone in a bag of rice. take the back off, put it in a bag of rice. >> it's just murphy's law. and you do it enough, it's going to go in there one of these times. >> there's a lot of motion going on.
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>> i'm worried getting out of my car when there's a sewer grate next to my car. and i'll drop my keys in there. >> jeff bezos used to take his kindle, put it in a zip lock bag and read it in the bathtub. >> i thought you were going to sigh on the commode. anyway, bob, glad you came in today. >> great to see you. >> the quality of journalism here hasn't suffered at all. >> exactly. >> it's really great. >> the quality is not strange. first alibaba. the retailer beat estimates on both the top and bottom lines. it earned $5 -- no. okay. it didn't earn $5. it earned 5.26 rinimbi. and time warner in dollars.
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well above estimates. revenue was also above forecast. andtime warner raised its full year outlook. we'll have analysts on shortly to discuss both of these. and if you didn't stay up, the cubbies taking care of business last night. this is the kind of game where you score runs finally. 9-3 beating the indians to force a deciding game seven in the world series. among the highlights, addison russell connecting for a grand slam home run putting chicago up 7-0 in the third inning. just watched the furst three innings, would have been great. for excitement. i don't really have a preference. although there's sentimental favorites on both sides. it was the first grand slam in a world series since 2005. game seven tonight in cleveland. i may be tired tomorrow. one thing interesting, charlie sheen tweeted out cleveland is getting just what they deserved
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because they didn't let him throw out the first pitch. when he was in "major league" as wild thing playing for cleveland. why would the indians put him in there to pitch an opening pitch anyway? anyway, what do you think? are you going to watch? >> i will. but we're going to have to stay up late then. >> but seventh game. the one time when even a foul ball -- you know, it's like -- every pitch is pretty fun. if you care about one or the other team. talking about teams, i don't know who cares about these teams except everybody at this table because it's a media deal. at&t and time warner's megadeal sending a shock wave through the industry. could this spark more transactions? we'll turn to our guest host who has recently struck a partnership deal. we're thrilled to see you this morning. >> thank you. i'm delighted to be here. >> let's start with this deal. what do you make of this transaction? >> this transaction has been
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coming ever since people started disconnecting from cable. and the companies began competing with wireless and broadband. they have to have content. i was at the lazar conference you were at. you heard redstone talk about content. content is king. if you're randall stevenson and you're going to create broadband and wireless everywhere on every device, you can't give them a dial tone. you've got to give them something to watch and compete. >> how do you own the content outright. that's the fundamental question. do the assets benefit each other in a meaningful way? >> you have to own the content if you want to take your brands everywhere. because every time a new revenue stream comes about, if you don't own the content, the content guys a jack up the price. if you buy the content at the right time, you will own it and
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you will be able to monetize it across all kinds of platforms we don't know that exists today. that's what you have to do. so what randall is saying and i was talking to him at the business council, saying they can provide a way to compete against google and youtube and facebook for advertising. give the customer more competition choices. and lower prices. and give them skinny bundles. the end result is i guess what they'll tell the regulators and i would agree, this is in the best instance of the public. they now have alternatives to the pipe and alternatives to advertising choices. >> hindsight is 20/20. time warner used to have a cable company and they split up years and years ago. would this have happened if those two companies were still together? or would time warner the content and tomb warner the pipes been
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able to basically create some sort of competitor to what they're doing with at&t? >> i made a prediction some years back at the alan and company conference that people would not continue to pay for programming that they didn't want to see. and they wouldn't continue to pay to be connected to a set top box that cost them a lot of money that they didn't have control over. and ultimately what happened with the cable operators, they got caught sleeping at the switch as the digital age allowed the customer to start having over the top streaming, other choices, advertising, and interaction with their phones in a way they couldn't do it with cable product. and the end result is this is not the first time that the bell companies wanted to get into content. you know, a long time ago, verizon was going to do that. >> but time warner is not in the middle abges.
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they have a lot of products consumers want. >> andrew thinks they're in the middle ages. >> customer service. >> they're not stuck in the middle ages but their prices are and their demand that you buy everything in a big bundle, that's stuck in the middle ages. you get an iphone, how many apps you want and that's what you get. you get a cable box, you get 500 channels and about 75% of the people watch 25 channels. how long can that model last? >> andrew, you have -- in the past when we've talked about this, to me on face value it makes a lot of sense. but you have said what regulators are going to decide on to approve the deal is going to remove all the advantages to the deal in the first place. >> i think they're going to -- i think it's possible that the deal goes through. but i believe they will handcuff both companies. >> in what way -- you said it'd be better in licensed -- or it won't be exclusive to at&t. >> when i talked about the handcuffing i imagined a
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regulator could tell at&t, for example, "a" you can't do any what's called zero -- no data cap. so you can't set up a situation where -- >> bob's going to tell you why you're wrong. >> tell me if i'm wrong. that hbo is going to come with your at&t service and it's not going to count against your data cap. but if you do that very hbo, you have to do it for netflix and others. to me as a customer, say hey, if you take my service you're going to get a better deal than if you take it from verizon. becomes harder. >> i don't know exactly what the regulators will say, but i do know that the regulators are likely to look at this and say is the public better served by having more competition in advertising, in buying what they want to pay for, and not being tied to a bundle of services.
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on this cable system. greater than they would if you didn't own it. so they did that. now, they will probably do something like that that they can't -- they would probably say to at&t, you can't say we're going to pay hbo. we'll charge this for hbo. but showtime we're going to charge yous this much to be on it. and i think at&t would say that's great. you know, we want to be as much content as we can. the other thing we've talked about is if i were randall stevenson and you've got a bunch of wireless customers. all right. it's a pretty good business. but the ability to buy a studio and all these varied content assets and be that type of company in the future that is a real player in the landscape,
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you said maybe it's better for the customers to buy vodafone or something. right? that's the other thing. does that make sense to get more wireless -- or be able to have scale in the business you're already in? or do you go -- because randall may not be a media mogul. he may not be cut out to be a media mogul. >> i don't think he has to be a media mogul. he has to hire people to run it. and he's already tapped into talent b. he's tapped into talent like peter so he can find talent. >> so it wouldn't be better for shareholders just to buy vodafone? >> why would you buy wireless without having the capability to have -- more than content. advertising. advertising is moving heavy to mobile as millennials and other consumers consume mobile devices. that's the way the television of the future is going to be an individual asset people take
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with them around the world. as long as they can get whatever they want to get. and that's why you want to have the content. because that's where the advertising is going to follow the customer. you know, the customer is going to demand what they want to see. and the advertisers want to say i want to be a part of that customer experience. and so you buy content. you buy advertising. and your phone service becomes more popular as a product. >> we've got to sneak in a quick break, but when we come back -- >> we got to pay our own bills. >> but i want to hear about bob's deal with amc when we come back. >> i thought you were going to say puerto rico. >> that too. >> that's a triple bottom line when you say puerto rico. >> we'll get to all of it. coming up on "squawk," reaction to alibaba. numbers out moments ago. we'll speak to an analyst about the results and see if the stock is a buy right now. only six days away from the next election. "wall street journal"'s holman jenkins drops in to talk what voters can expect in the next week. in the meantime, here are the
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futures at this hour. uncertainty. is happening before our eyes. shift in human history sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management
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businesses of prudential.
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for $5.5 billion in cash or $12.75 a share. broadcom of course is a chip
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makers while brocade is a maker of equipment. alibaba out with its q2 earnings just moments ago. joining us gill luria. your read on the quarter? >> it's a good quarter. they exceeded expectations top and bottom line. revenue grew 55%. very impressive. 79 cents of earnings on stable margins. so initial look is a good quarter. they have stopped reporting the underlying metric which is volume growth. they told us they'd do that. but it still doesn't look great since that was the one metric that was decelerating going into the quarter. >> the stock is rising premarket. it's up about 3.5%. but given how volatile the equity market has been. do you think these are gains that can hold? >> one of the concerns is the
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health of the chinese economy and the chinese consumer. if our election leads to any trade disruptions between the united states and china, that could be a disrupter to alibaba. they have a decent sized business selling through ali express. and their chinese consumers do buy american goods. that could be a disruption to alibaba. >> e-commerce is still the corner stone of the business. but digital media out performing. so some of it's venture investments out performing, cloud computing. how long do you see the time horizon for the diversification of this business, gil? >> they've been able to do it very quickly. they've been able to divorce themselves from the underlying growth of e-commerce. the challenge there, though, is all those businesses you named are big money-losing businesses for alibaba.
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media, cloud, and other innovations. thaur going to have to balance the shift to the businesses with the need to maintain profitability. >> well, they beat on pretty much every single metric. that's why you can see the stock up this morning. gil, appreciate your time this morning. >> thank you very much. >> gil luria. time warner reported earlier. joining us james goss. most of the key metrics look pretty solid, james. is that your take at first blush? >> you know, i think everything did well and was better revenues for estimates. turner was up 8%. warner brothers, revenues were up about 7%. so that was solid and in line. warner brothers also did a
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little bit more. they had a slate although they had some negative comps versus at that time. >> so are there any troubling trends that people see in the big media companies that are manifest in this report as well? and we just had a long discussion on at&t and time warner. i'm not convinced necessarily that jeff needed to sell. maybe it's just a good price. but is there anything that's concerning that you see in the report? >> you know, i have some of the thoughts you just expressed. time warner would be fine with or without the deal. i think it's probably always good to sell at a premium. but i think the -- i saw a little of mr. johnson's comments and i think one of the thoughts that's different versus time warner cable which is arguably a
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better quality system in some ways with a wired system, but at&t provides national satellite mobile. so that national platform and the mobile element i think are good elements that, you know, they bring to the table for time warner. >> james, what are the -- how do you handicap the chance this transaction gets done given that arbitrage and other investors put it at only 30 or 40% given where the stock is trading? >> i think there's the political element i'm sure you're all aware of. i think that's the issue that probably drives it. if every major candidate both parties are coming out against it. the sentiment might be strong to at least bring it down. except the question i would have would be on what basis. i don't think you can turn something down just because you don't like it. i think you have to have some
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reasons. whether or not the blend is more than they could do if they simply partnered, that's another question. but i do think the opportunity to have the deal closed from a stock standpoint is greater than the risk of it failing. because even if the deal did not happen, time warner had a lot at the level of which it's trading or at least slightly lower and it has continued upside in the future. so i think it's on a roll right now. everything doesn't work perfectly every moment. but it has very solid divisions. and i can see why it would be attractive to at&t if they were going to try to strike a deal with a media player. >> one of the things you might want to put in about the regulatory change -- regulatory approval is that the justice department of the fcc is going to take responsibility for this. the fcc's nexus is the satellite
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carries what time warner owns. if for some reason they don't have to change the satellite ownership using me satellites they own, then it might just go to the justice department. as a consumer because you do have big companies competing against each other. and that i think would be the issue in terms of looking at it from a trade issue. >> i agree with that. but to the extent that this is a vertical merger, i think time warner will always have an incentive to find any customer can have whether it's with at&t
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or not. so -- and it's been very mobile focused in recent past. so i think that will continue either way. >> okay, james. we appreciate your time today. thank you. >> thank you. >> update, andrew. i got to find a place for sheila baer too. maybe santelli doesn't take fed chief, i'm going to put sheila in. you could probably use her. and you should have some republicans in your administration. you know, they try -- it's nice to do that. d aflac pays cash. aflac! isn't major medical enough? no! who's gonna' help cover the holes in their plans? aflac! like rising co-pays and deductibles... aflac! or help pay the mortgage? or child care? aflaaac! and everyday expenses?
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now the answer to today's aflac trivia question. which major league baseball team won the first-ever world series? the answer, the boston americans. now known as the boston red sox.
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welcome back to "squawk box." among the stories front and center, investors focusing on the october adp report. that's due out at 8:15 eastern time.
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consensus calls for 170,000 new private sector jobs. we'll have the numbers for you the moment they hit. mortgage applications fell 1.2% last week. that's according to the mortgage banking association. both refinancings and applications fell. and facebook leads a busy afternoon after the bell today. it's expected to report profit of 97 cents per share on revenue of more than $6.9 billion. in electronics arts, look for the holiday slightly below estimates. but expecting to generate record cash flow due to new games such as battlefield 1. i think we're looking at a little bit there. and elon musk making his pitch to investors for tesla's purchase of solar city. musk argues the merger would add more than half a billion dollars
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in cash to the electric car maker's balance sheet over the next three years. he also says it would contribute more than $1 billion to revenue in 2017. musk has described the integration of the energy and transportation companies as a no brainer. here's what he satd to naysayers on a conference call with investors. >> for those that predict a bad outcome, how good have they been at predicting the outcome in the past? and if they have been uniformly batting average of zero, you should really question whether their future predictions are going to be better. >> shares of tesla are down by about 13% since the deal was made public back in june. shareholders vote on the proposed transaction on november 17th. and of course they did post a surprise profit as one talking point for investors. but we'll see what they do in just a couple weeks' time.
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>> saw a headline the other day they moved subsidies in europe for electric cars. and they didn't remove them. they lowered subsidies and sales were down 80%. it's hard to do it without government help. it wasn't tesla, but it was another maker over there. >> this is definitely my director of energy and head of epa. i'm going to put -- >> i know that. >> this way i'm saving money so i don't have to have two of the same people. holman doesn't know this, but we've been selecting our cabinets. >> i got sheila bair as the fed chief. >> sure. gene kimmelman at the department of justice i would think. >> he wants leonardo dicaprio at epa. >> joe is going to be my body man. my reggie love. >> holman jenkins is going to be my chief of staff if you'll have me. oh, he said no.
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>> staff work isn't my thing. >> okay you're going to run the entire place. >> below his pay grade. >> the fbi's renewed interest in hillary clinton's e-mails. holman jenkins writes twice business article. this week hillary clinton becomes the unsafe hand. and we've had some discussions earlier we had kellyanne conway on about if either candidate gets in, it could be -- i don't know what the first hundred days looks like, or the first year. but there's five separate situations going on with the fbi. surrounding her closest associates and herself. this makes it maybe trump. you can say all you want he's going to cause a nuclear war. >> little thing like that. >> you can just say it, bob. say it without any reason for saying it. that's my point. but these are real fbi investigations going on right
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now. the only investigation for trump was for russia and you saw on "new york times" yesterday on page 18 or whatever, they came up with nothing. but let's let holman -- >> a few weeks ago the pitch to republicans was was she was the one who showed a habit of working across the aisle when she was a senator from new york. that's gone out of the window because of these investigations. you already see it with these stories about groups on the left drawing a blacklist of future clinton appointees to make sure there's nobody on board who might have experience in the private sector or have sympathy with business. yo go to your base and her base is the left. that will kill whatever hope you had for a clinton presidency reaching across the aisle with paul ryan and doing something. >> holman, i'll take exception to you based on a couple things. one, i've known hillary for 30 years. i've known the whole clinton group for that long. at the heart of what will happen after hillary is elected is
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this. the republican wills keep the house. i'm going to predict they'll keep the senate because of what results from trump's rise. which means that if hillary is going to have a successful presidency, she's got to move to the senate. and the senate because two years after she's in office, there are 25 democrat seats up for election in the senate. they are not going to want to be running to the left. they're going to be running as moderates there. that's the only way she'll be able to find sympathetic republicans like paul ryan and some of the others in the senate who will say hillary let's sit down and cut a deal as to how to deal with issues and the country. >> that was my argument a month ago. just imagine if there's more wikileaks dumps of e-mails. if there's a serious investigation, there's going to be investigations in the republican house of the clinton
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foundation and of the fbi e-mail server. republicans will be pushed to e the right. she's going to look for sustenance on the left, people who will support her. i think the happy scenario you talked about and i talked about three or four weeks ago is just -- >> holman, you made some points about the original determination. that was when things went off the rails. >> he hadn't seen all the evidence. >> but he had enough to know they gave immunity to five people and let them plead the fifth. they destroyed all the happen tops afterwards. they didn't convene a grand jury. he was trying to play judge roberts and not insert himself into the election. then all this other stuff comes out and he goes, oh, my god, i made the wrong move in july. now i've got to try and salvage it this time around. isn't that what happened? >> i think and the i think the
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big mistake was saying anything at all. he should have let it hang out there until after the election. >> that was a lose/lose situation. it would have leaked either way. >> let it leak. so much stuff is leaking anyway. >> you can't have a democracy determined by a leak. you just can't. you know, if you do that, you know what you're setting up is a process of leaks give reward to -- >> isn't that how washington works 24 hours a day? >> that's how it works. but it doesn't work with this kind of situation we have today. 11 days before the election. the fbi chief on very little information that he possessed, forget the agents for the moment, decides that he's going to put into the hands of the congress a letter that says i think i have to reopen this
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investigation because of pertinent information that appears. pertinent that appears. pertinent meaning relevant. how does it appear relevant if he hadn't seen it? so now he's stuck in a situation where if he calls in tomorrow and says hillary, we looked at that as weiner and huma stuff. you're okay. the other side is going to scream holy hell, right? so if she gets elected and wins and he goes after this way, you're telling me this same fbi is now going to say i'm going to put on a grand jury to impeach -- maybe the house will grab it after to bring impeachment charges? >> i think the house is going to grab it and you don't know what's going to come out yet. that's the thing. i think it's not the e-mails on security grounds. it's the potential obstruction is the problem in the server case. then there's a whole set of clinton foundation issues which come bubbling up with pay for
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play and that sort of thing. >> this is a headline from usa today. the lawsuits involving trump and his businesses remain open. those include trump foundation which is under investigation in new york. there's a headline from the guardian. trump lawyers ordered to appear in court for allegations that trump raped a 13-year-old girl. that's going to happen in december. there's a restaurant lawsuit over trump's racist comments that still isn't settled. that's from the washingtonian. i can go on. the list is extensive and this will go on for actually not even months, i would say years. >> i think you're right. trump has one card that hillary doesn't have. he'll have a republican house investigative committees will be in the hands of the party that he is nominally aligned with. that helps. but i plan to be disappointed no matter who wins this election. >> holman, thank you. >> that's a really uplifting take, holman. thank you. >> certainly we've all been living in the past six months, that's been expressed more than a few times. thank you. >> thank you. coming up, we're going to
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get uplifted. feed founder lauren bush lauren is going to join us. feed is looking to end world hunger. lauren is going to join us after the break to talk about her company and what she's doing. we're back in a moment. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't.
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you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
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welcome back to "squawk box" this morning. nearly 800 million people around the world struggle with hunger every day. and sadly many are children. our next guest saw the problem and decided to harness entrepreneurship to do something about it. lauren bush lauren is the ceo and founder of feed. she's appearing this week at fast company's innovation festival. we're thrilled to have her. she's a friend and thank you for coming in this morning. >> thank you, andrew. >> help us understand what feed does and how you came up with this idea. >> sure. next year is our tenth year which is crazy. and really i was so inspired after starting to travel with the u.n. world food program when i was a student in college and i really saw the plight of hunger first hand. one in nine people in the world face every day. so it's so massive and yet the program i really fell in love with that i saw helping so many children around the world. in 62 of the poorest countries around the world, kids are
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getting a free nutritious school meal. that costs between 10 to 25 cents. so so little. so i came back from those travels really inspired wanting to do more. and to do so i love design and fashion. so i sort of fused this all together. created feed which is a brand, a consumer goods brand. every product we sell has a number on it. and that signifies the amount of meals we're able to give on the sale. >> how many meals can you get? >> it depends on -- so the more expensive the bag, the more meals you get. but they range from $25 to $150, $200. so try to be reasonably priced. but the cool thing is as a consumer you know exactly the impact you're having. so it's not sort of a percentage of profits or proceeds. while that's wonderful. with hunger you can have that meal metric nap tangible,
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meaningful. >> you think about this being an outward looking program. but you also work here at home. even though our standard of living is higher than third world countries that you're operating in. so how do you identify which parts of america need feed? >> so really we relien our giving partners in america and abroad. we work on feed america. the new york food bank, every local food bank is a feeding america food bank. for the most part. so the money we give here trickles down where the need is greatest. >> where's the need rising here? >> the need is rising -- i mean, there's unfortunately so much hunger even in our own back yards here in new york city. i think the appalachia area of america is the highest food insecure area. but unfortunately, you know, 49 million americans rely on food aid, support from feeding
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america and the food banks. and that's not, you know, i would have thought maybe that's once a year. that's pretty consistently, they're finding. so it's pretty staggering, the issue of it. >> the companies that have social emissions but they're also looking to make a profit. there are companies that are 0 5 01-c3s. >> we started pre-b-corp. >> where do you land on that spectrum? the devil's advocate position on this is they say it's great marketing for certain types of companies. i know warby parker gets a hard time on this. people say are they buying the glasses because they want to give them to somebody else, because they love the glasses? how do you think of that? >> i think it's fascinating the last ten years. feed was at the beginning of this sort of social business movement. to see that spectrum evolve and
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see b-corp. actually being a company standing. i think it's great. i think now for consumer who is want to make sure their products are ethically made and have that transparent supply chain. i think when we started feed was that anomaly in a company that gave back in a significant way. we are a for profit. we do give a significant amount of our profits away, obviously. we're still very small team. and i think it is for founders and companies to sort of set up that margin structure and really understand how profitable. how quickly can you grow. and for me i made that decision of never wanting it to be good washing in a sense that it's a penny on the dollar. so we really try to give back. >> where do you think the business goes? obviously bags are the biggest part of the business now.
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five, ten years from now? >> world domination. no. unfortunately the cause of hunger is still there. i hope feed as a brand can grow. i think nowadays customers want a connection to what they're buying or the services they're acquiring. >> lauren, what kind of food do you provide to the consumers who you -- when you buy a bag, what do you get? >> so the food via the world food program, the school feeding is corn soy base. so it's nutrient rich porridge at least. and that's supplemented with what locals can provide as well. what we try to do is buy locally to feed locally so you have that sort of sustainable loop there. you're supporting local farmers
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and communities but also giving back. and here in america feeding america, it's an array of food they can provide via food banks. there is a movement trying to provide fresher food, more produce, more protein. but it is often which i'm sure would be canned goods and preserved goods as well. >> are we going to get a partnership between ralph lauren, david your husband and feed together? >> we did one way back in the day with rugby. do you remember that brand? so we've done a little things here and there. >> thank you for coming in this morning. great to see you. >> appreciate it. coming up on "squawk box," more from our guest host bob johnson from rlj companies. stay tuned.
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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.
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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?
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let's take a look at some stocks to watch this morning. estee lauder reported 4 cents above estimates. revenue was below forecasts. but the cosmetics company says they're pleased with results. s and clorox fell 6 cents short of estimates with $1.36 a share. the revenue above forecasts. why? says that the household maker was helped by lower modty costs but it's also been spending more
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on advertising? is bleach elastic? people use bleach. wow. we sold a lot of bleach this quarter. why? isn't it -- that's what happened though. >> you don't want to know why someone sells a lot of bleach in a quarter. >> if you don't have it, it's like lawyers. don't put them down until you need one. then you take back everything you said about them. >> we only got a minute or two before break. we have not talked to him yet about his transaction with amc. how did that happen? >> well, it happened -- first of all, i've known josh sapan for almost 25 years. we both started in the cable business. >> runs amc. >> ceo of amc. josh and i met at a conference. i started talking to him about the company back three years ago that owns a british mysteries and drama channel called acorn tv.
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these are over the top streaming channels. and an independent distribution business. and josh looked at his portfolio and assets and saw there were synergies there with an urban channel they have. matches up somewhat with umc. then bbc america. that matches up with acorn tv. british mysteries and stories. and of course they distribute sundance and ioc. so when we looked at it, we thought here's a chance to take a look at a company with superior management, got a great ceo and myself. and we said let's do this. and be part of the over the top streaming world. and work together to do something exciting. >> okay. we're going to talk more about this in the next hour. including speculation that amc may one day be a takeover target. but hold that thought. i know you've got a thought on that. coming up, with just six days to go, hillary clinton's
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numbers are slipping in slight of the fbi's probe of her top aide's e-mails. the latest from washington and reaction from our guest host bob johnson straight ahead as well. he didn't know that was coming. take a look at futures right now. we're in the red. dow looks it would open off about 36 points. back in a moment.
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breaking jobs news. the adp employment report is minutes away. we'll bring you the numbers and market reaction straight ahead. cyber attack. microsoft says hackers tied to the russian government have exploited a windows security flaw. plus if you're planning to travel thanksgiving weekend, get ready for record crowds. we'll tell you why as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc. i'm joe kernen along with andrew ross sorkin and kayla tausche. our guest host robert johnson who doesn't believe i might write him in. you don't know what i'm going to do. i may just put rlj down at the bottom. i saw it.
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you're not one of the 18. i guess kasich put john mccain who's not even one of them. but if i put rlj, they'll know who i'm talking about. founder and chairman of rlj companies. the adp employment report now about 15 minutes away. the economy likely added 170,000 private payroll jobs last month. and you know what i'm writing for vice president. ars. >> thanks. >> that's my ticket. it's also a fed decision day. wrapping up a two-day meeting. >> black and white. ebony and ivory. >> announcing at 2:00 eastern today, we're going to hear it. but there's no janet yellen news conference this month. so very unlikely anything could happen. that would be a shocker, though if they decided to go up a quarter this month. >> how happy would you be? >> very happy. but zero chance, right? i think they're at zero probably. or close to it. >> pretty much.
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>> you can catch complete coverage -- there's a chance. sop watch. you can catch complete coverage at 2:00. ahead of these events the futures are down just 36 now. they've paired their losses. really kind of in half. s&p indicated down three. nasdaq down just over one. and the 10-year had been pulling back from really almost got to 1.9%. now we're back below 1.8% again. making headlines this morning, mortgage applications falling 1.2% in the latest week. the mortgage bankers association reports both new purchase applications and refinancings each fell. average 30-year mortgage rates fell to 3.75%. broadcom buying brocade communications for $5.5 billion in cash. brocade is a maker of networking equipment. valeant pharmaceuticals confirming it is in talks to
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sell its stomach drug business. they had pegged the price at about $10 billion. they will only say they're in talks about various divesitures. alibaba beating estimates big time on the top and bottom lines. revenue rising 55% over a year earlier. a lot of people have been focused on the future of alibaba. quite a beat this morning. also time warner posting better than expected earnings and revenue as well. the giant raising its forecast. recently announced a deal to be acquired by at&t. that stock now trading up both on that news but i wonder people will will start trading up on whether it's going to go through. the stock at this point is trading on whether you think it happens and how quickly it happens. >> really, that's not -- >> it's going to be a little bit earnings. but you're topped out at the top
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price. >> but it was conspicuously below 90. now here we are. as we move on. but people like bob talking about it. >> it's too early to tell. >> you think it will help consumers. >> i know it would help consumers. >> if it wasn't an emotional sort of a knee jerk reaction that people take the big mergers, if you look at the actual laws themselves and what regulators are supposed to do when they consider these things, i think that's what randall was saying. both of them were saying if you look at it the normal way with a few provisions, this should be a deal that gets done. right? >> i think on a straight legal basis, sort of straight antitrust it should go through. question is how you define -- the question is whether the world's changed. >> absolutely. really depends on in my opinion if the fcc gets it, it may get caught up in net neutrality.
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i think they got to look at it at the legal facts. does this harm the public? or is the public better served? that's what i think. because i think every time new technology has emerged, competition and content brings more choices. remember when broadcasters controlled everything in the world? they said, my god, free tv. if cable comes along, all the poor people are not going to have tv because they can't afford cable. look what happened. cable becomes this sort of the choice among all americans for variety of content. then all of a sudden, digital internet, broadband, wireless. the same thing will happen. you'll get more choices. randall is smart and so is jeff. political news. election meets business, if you will on some hacked e-mails showing that eric schmidt now playing a crucial role in hillary clinton's technology. >> reporter: good morning. we're learning a lot more
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information through these wikileaks which continue to churn out new information stolen from john podesta's e-mail every day of the week. in this case we learned of a new e-mail that went from eric schmidt of google and alphabet to cheryl mills, a key clinton adviser back in 2014. although it shouldn't be surprising necessarily to find out that schmidt is in contact with democrats, he's a well known supporter of barack obama and hillary clinton. what we're learning now is the level of detail of that involvement. how early on it was for the clinton campaign and all of the different issues that schmidt was focused on. in the memo he writes an overall guide to the 2016 campaign which was then two years away at a level of detail. he's even talking about such things as hiring. he said it's important to have a large hiring pool such as chicago or new york city from which to choose enthusiastic, smart, and low paid permanent employees. another couple of excerpts from this. he said a separate auditing
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function to ensure no one is profiting unfairly from the campaign including at one point he says himself. and then he also says, the computers will be in the cloud and most likely on amazon webb services. interesting he doesn't recommend google's product there. so a level of detail here in terms of the smartphone usage and registering voters. organization and staffing of clinton headquarters. all of that coming from eric schmidt inbound to hillary clinton's circle. this coordination seems to be when you read the other e-mails around it very important to the hillary clinton universe. they're talking about him as a donor and supporter. his input seems to be taken seriously by the clinton campaign. >> eamon, this is wikileaks what? what number are we on? >> you know, they churn them out almost every day now. >> is it 20-something? >> 25. >> we're only up to like 50,000 e-mails. >> yeah.
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and think you think 650,000, god almighty. >> and this is rocking washington. you saw the headlines yesterday with donna brazile over at cnn. she's a democratic strategist and cnn parted ways with her this week as a result of some of the information that came out in wikileaks in terms of her potential coordination with the clinton campaign. so this is reshaping people's careers here in d.c. and significant impact. >> between andrew and me, when they see us making plans on weekends and trips together with the families. this whole thing, this dynamic we have, that's -- yeah. >> i have to say, eamon, those eric schmidt e-mails, you know, people say why is he is great manager? they're actually really well written e-mails suggesting how to manage something like this. >> the clinton campaign kpleerly welcomed this e-mail and was looking forward to his input and his money. a lot of times when you have big
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donors, you have to taul take all the advice. this is a technocratic word he puts out. >> little scary when he's controlling the search terms to what comes up. >> let me mention a couple caveats that are important. one is these are stolen e-mails from john podesta. they have not been authenticated by the clinton campaign. they've never said these are individual e-mails that are accurate or altered in any way. so we don't know that. also we reached out to the clinton campaign and to google on this particular e-mail and asked for their input. they have not responded to us on that. >> but everybody i think who was listening to us today understand that there's nothing wrong with a loyal supporter writing to the campaign or to the candidate and saying here's ideas that i think would help the campaign and the candidate deal with the various issues of launching a presidential race.
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i myself have sent e-mails to john podesta, robby mook, and the secretary giving my advice on how to involve -- >> on the private server? >> no, i sent it to podesta. >> you said to hillary too. >> well, i said it but -- >> you said to the secretary. so you didn't have the private server address. >> no, i didn't have the private server. but i went to -- i know she had it because she responded and said these are good points. >> did she respond on the private server? >> by phone. >> must have been good. >> the idea is we shouldn't get excited because eric schmidt who's been a loyal supporter of the democratic party and the policies would write the candidate. i think it's a good thing to do. >> i can tell you one thing about that. that's absolutely right and campaign managers over the years have said and complained privately that they get all these memos inbound from the big donors and support es and have
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to treat them all seriously whether they take them seriously or not. you get a lot of unsolicited advice. in this case google's competitors are watching this carefully and looking at these e-mails. you know, this gives ammunition to critics of google who say that this is a company that's too powerful, too well connected in a democratic controlled washington and et cetera, et cetera. there is some potential fallout for google here with competitors. it's a level of detail that you never would get other than looking at the campaign filings and see a guy made a donation. now we see what he's recommending and the level of detail and how that's received internally. >> eamon, we appreciate it very much. when we come back, adp employment report due in a couple of minutes. we'll bring you those numbers and the market reaction after the break when "squawk box" returns. today, i am helping people work better... and also feel better.
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because all of us want to help our children thrive. it's time to vote yes on proposition 55. welcome back to "squawk box." take a look at futures at this hour. following the lead of what we saw overnight in asia and in europe. we have been negative much of the morning. although we are off the lows of the morning. if we were to open right now,
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s&p 500 would open down by four. the dow would open down by 41. the nasdaq would open down by two. take a look at where we are on the 10-year note ahead of this afternoon's fed decision. we're at 1.79%. of course no press conference today, joe. but we'll watch the bond market and the dollar to see what the market's expecting. >> okay. the adp employment report just crossed the tape. steve leisman has the numbers. we got to get right to it at 8:15. >> it's a market-moving event. 147,000. private sector payrolls for the united states rose by 147,000. and a big revision to september that i think is more statistical than real. i'll tell you why. it looks like adp has revised its model. that results in a 47,000 upward revision to september but
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202,000 over the course of the year the total revision is minuscule. the goods sector falling by 18,000. going to talk more about that in a second. services surging. 165,000. and there's the nonfarm payrolls. i would say this number is weak enough to create a whisper number that looks for a lower or a less than expected number on friday in the nonfarm payroll. want to show you some of the detail where that weakness was. construction falling 15,000. this after in the bls numbers it rose by 23,000 last month. education also down 12,000. interesting number right there. leisure/hospitality up 38,000. health care up 34,000. financial activities up 18,000. with the big question, is this enough for -- and there's the small, medium, and large business. big number there for large business. the big question being is this enough for the fed to hike? i think so. it seems in line with what the united states economy is able to produce or should be producing
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jobwise. don't take my word for it. let's bring in mark zandi from moody's analytics. good morning here from washington, of course. tell me. the weakness in construction and education as well as the kind of undershoot relative to estimate, how is this showing how the jobs market is right now? >> i think job market is fine. i think underlying job growth is down 150k. a year ago it was probably closer to 200k. some of that might be energy. construction's been a little soft mostly in public construction. but the biggest reason for the slowdown in job growth is i think the labor market's tight. there's a lot of open job positions. a record number of open positions. i think the market's strong. >> i saw that in your report, but i don't know how you can tell from the number of jobs added that there was reason because the job market is tight and that employers can't find workers. >> well, i'm connecting some
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dots. you know, there's no proof. but we do know that there is a record number of open job positions from other bureau of labor statistics data. it's pretty much across every industry. and it's evident in the acceleration in wage growth. so you go back a couple years ago, wage growth was about 2%. now we're closing in on 3%. it's accelerating in those sectors where we have more open job positions. so that's consistent. but you're right. i don't have -- >> it's not -- >> -- a smoking gun here. >> so let's cut to the chase here. is this enough for the federal reserve to continue on this -- should it hike at the meeting today? >> well, you know, if they didn't want to interject into the election, i think they probably would hike today. they're doing what they're supposed to do and not get involved in the center of the election process. they're going to wait until december. 150k means that labor markets continuing to get tighter and
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tighter. yeah. and we're pretty close to full employment. so i think the fed has to get going here and start normalizing interest rates in a much more consistent way. not one rate hike a year but two or three rate hikes a year. >> let's talk about that education decline being down 12,000. is that a seasonal thing or is there really some weakness there? say from the local and state governments not hiring as many people? >> i think there's some seasonality. i don't think it's as weak as this number would suggest. but the educational service sector is under a lot of disruption. you know, the business model there is kind of broken. you know, student lending has been financing the activity there and that's just not going to work going long run. you've got a lot of online competition. my sense is the educational services sector is going to be under some pressure. this number overstates the case, but it makes the case. >> are you going to take the under mark given how you do your estimate for the friday nurnl?
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you're taking on the forecast of 170,000 jobs. >> the only thing i hesitate on, i would take the under. take the 170k. you know, this is coming up to the christmas holiday season. there's a lot of highlighting to that. maybe we get a little bit more juice. underline job growth for 150k. that's the number i would go with. >> right on. thank you for joining us this morning. mark zandi. back to headquarters with andrew. >> thank you so much for that. when we return, we'll talk about alibaba posting quarterly results. beating on the top and bottom lines. we're going to talk about it when we return. give you some highlights from
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the company's conference call in just a minute. plus airports are bracing for a travel surge this thanksgiving. details on that. stay tuned. you're watching "squawk box" right here on cnbc. what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value e capital is to create, not just wealth, but things that matter. morgan stanley the market.redict but through good times and bad... t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.
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welcome back to "squawk box." if you're planning to hit the skies for thanksgiving, brace yourself. because there could be more crowds than usual. travel for the holiday is expected to be busier this year.
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that's according to the trade group airlines for america. more than 27 million passengers expected to fly globally on u.s. carriers from friday, november 18th through tuesday, november 29th. that averages out to 55,000 travelers a day over last year's period. and i will be among them. selfishly very curious about this. and we're less than a week away from the presidential election. polls continue to show the candidates in a tight race. our guest host this morning is bob johnson, a friend of hillary clinton for 30 years. let's think about that. so 30 years. and it wasn't 22 years and then a pause for the current president and then back to hillary clinton. it was 30 years and you actually supported hrc right through the 2008 election. >> i've known bill and hillary clinton for that time period and i've been a supporter of the president bill clinton and supporter of hillary through all of her activities whether it's in the private sector where she was working with a foundation like the children's defense
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fund. or whether she was running for the senate in new york and ultimately of course as secretary of state. >> you're a guy that they should trot out there. that knows her and could probably do a lot to tell people, you know, what she's like as a person because of the impressions that other people -- and to great drk i wouldn't say great peril. but you took some flack for not support b president obama. >> and for an african-american to be on hillary's side at a time when most african-americans were enamored with president obama's historic first, that was a big point. but let me -- >> that shows that you're that in for hillary shows there must be something that -- people don't understand why people like hillary. you probably have some pretty good reasons to convince people. >> my reasons for hillary are very simple. hillary possesses the command presence and the knowledge to implement public policy
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programs, foreign and domestic, that will benefit the maximum number of people in this country. so she looks at the country as if she were a ceo looking at all the stakeholders. not only are the government agencies and the employees with b but what's in the best interest. and who can bring the country together to deal with the pressing problems. hillary clinton has that base of knowledge, has that commitment to it. and i believe fundamentally that when you make a decision -- i'm a business person. so i look at hiring a ceo. if i were hiring a ceo and i say here's your job, you've got to be a great from -- commander in chief, know what issues can be implemented. and how many will be -- >> but, bob, you must have watched in horror as she trends towards bernie santders. implicit in your supporting her
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is the assumption she moves back to the center. and you know she will? >> implicit in my support of her is that hillary knows how to look at a situation and say, how do i make a difficult complex situation in the best interest of the country. i think there should be free education for schools. that comes with a price tag. >> right. >> so she's got to figure out how to pay for it. she can't figure out how to pay for it, she will figure out a compromise where she'll get most of her programs in place, give something on the other side, but get things done in the best interest. >> we're going to take a quick break. "squawk box" will be right back.
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♪ welcome back to "squawk box." let's look at stocks on the move this morning. allergan falling in premarket trading after an initial gain. revenues did missed estimates but announced a stock buyback. electronic arts shares are jumping. the video game maker beating estimates on the top and bottom
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lines. shrugging off what was a forecast. and airline operator -- how do you -- >> avianca. >> higher this morning. citing that avianca is looking at a sell of the controlling stake in the company. said to be among potential bidders. have you flown avianca? >> i've not. i've luckily heard it said before. >> yeah. looks like a jumble of ivanka. >> today's was especially hard. >> it was hard. siding. siding is not hard. it's the ing. alibaba posting better than expected results. with the company's conference call, we're joined. good morning. >> good morning, guys. alibaba is defying concerns about the chinese slowdown. handily beat expectations on the top and bottom lines.
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its core e-commerce business remains strong. it's also having a lot of progress monetizing that growing base. now, annual active buyers rose 14% in the september quarter to 439 million. but the real story here is mobile. it has been for a long time for this country. mobile monthly active users ump jed to 450 million. soared nearly 80% year on year. meanwhile alibaba's cloud and entertainment businesses are growing in importance. have a listen. joe tsai announced. >> enable us to make investments in important strategic areas. two of these strategic areas are cloud computing and digital media and entertainment. both segments are coming into their own in terms of scale and market position. each seeing triple digit revenue
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growth this quarter. >> like in amazon, putting a lot of importance on its cloud business. revenue from that business jumped 130% year over year. the executive team on the call also said that making this business profitable is not a priority. instead they're going to continue to invest and make some price cuts for their customers where they could. now, they were also asked to address the recent "new york post" article that alleged one or more whistle blowers helping them in an investigation into alibaba's accounting practices. here was joe tsai's response. >> we've been in the process with the fcc. we've been very transparent with you guys about what's going on. we've disclosed all the issues involved. and the fact we're voluntarily operating with the fcc in their inquiry. we don't think there's any factual basis to t"the new york
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post" story. so on that when we have real news we will update everyone. i want to say in days leading up our detractors will want to divert people's attention but we're not going to be distracted. instead we're going to focus on what's really important. bringing the best experience to our customers. >> now, this year, guys, investors have been moving past the accounting practices. up nearly -- more than 25% year to date. the question is whether fresh concerns with halt the climb or if these good set of earnings in the upcoming massive singles day holiday will keep the momentum. back over to you. >> okay, deidra. thank you. we've got just six days -- actually five and change -- until election day. the campaigns are crisscrossing the country making their final pitch to voters.
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our next guest was on the trail yesterday. congresswoman, it's good to see you today. i know that you were there yesterday and you are a nurse. so you heard a lot of the obamacare commentary. i said i'd say this for bob's benefit. while trump was talking about obamacare yesterday, you know that he's known hillary for 30 years and when others go low, the clintons just historically have gone high. that's what i think of when i think of the clintons. others go low, they go high. she went high with miss universe yesterday while trump was talking about obamacare, she was parading miss universe around the state. what did trump say about obamacare and you don't like obamacare much either, right? >> no. in fact, that's the reason that i ran for office initially. never having been in politics before, that was my whole goal was to go and help fight this terrible, awful law that was put in place that now all of america
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is finding out really hasn't measured up to what the lies that were promised. we all know what the president promised back in the day. and we all know that it was an effort to, you know, kind of pull one over on the american people and get it into place. hey, you know, the democrats were all on board with it. there were no republicans in congress at the time. and it caused more republicans to get elected. certainly was a surge the year i ran on 2010. here we are americans are being saddled with this terrible law. their premiums are skyrocketing and the president is out there acting as if, hey, no problem. just a little bump in the road. no, it's not a bump in the road for americans. they can't afford this unaffordable health care act. and donald trump wants to change it. that's what donald trump is talking about. he's talking about a very common sense, very concise, visionary effort to change the health care
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coverage policy in legislation in this country that really is what is controlling -- >> in what way? have wha have you heard except for repealing it from him? >> no, no. it is basically you're talking about repeal, you're talking about replacement. you're talking about a safety net for -- >> do you know how it works? >> absolutely. what you do is you make sure that individuals can buy insurance across state lines so that that opens up the market nationwide. that's -- i think that's good for insurance companies. i think increasing the market will create more competition there. but gives more choice to individuals. i think you should be able to buy your health care insurance plan, what you see fit. that's what -- millions had health care plans they believed in. the president came in and said that's not good enough. we know better. government knows better than you do, mom and dad, for you and your family. and that's why we're where we are. buy insurance across state lines. health care savings plans. >> congresswoman -- >> puerto rico.
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>> congresswoman, i hear your comments about what mr. trump is proposing, but mr. trump has never really spelled out specifically what he would do when you talk about replacement. and it seems to me that the strategy of those who want to get rid of the obamacare and the affordable care act is to make the enemy of the good. >> we are well beyond perfect being the enemy of the good. >> you've got some 23 million people who are now receiving health care that they didn't have before and it's particularly important to many people in the african-american community who are not in the job market and therefore can't get coverage at their employers. and so it's vitally important that no one disrupts that availability of health care
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without a very specific plan. so i would suggest -- >> there is a very specific plan. you know, all you need to do is go to donald trump's website. and you can read the full plan. i'm looking at the important issues like definitely repealing the -- both of the mandates. whether it's the businessman date, the employer mandate or whether it's the personal mandate. i'm talking about putting a plan of action in place for the american people where americans have control of their health care again. you know, you're citing that we have more people on health care insurance. you know what we have? we have more people on medicaid. medicaid is not the answer for good health care. if you want to help the african-american population in this country, putting them on medicaid is not the answer. they deserve good responsible accountable health care coverage. >> we want to put as many people as possible on proper health care. >> on a failure on a failure.
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>> a program that has worked for 23 million people. >> no, it has not worked. it absolutely has not worked. it has not worked for the individual who is have the health insurance card. it hasn't worked for the physicians who are supporting and giving that care. >> -- it shows most people favor continuing the health care. so you can do some tweaks here and tweaks there. >> absolutely not. you are absolutely incorrect, sir. you are absolutely incorrect. >> i would urge you to look at the polls and -- >> look at what poll? give me the poll. give me the poll. >> do you want to have -- >> give me the poll. give me the poll that says that america today is in favor of keeping obamacare in place. sir, you are -- >> i didn't say keeping obamacare. i said in terms of a commitment to health care. >> give me the poll. sir, i'm asking you to give me the poll. >> i'm asking you to say that americans are better off with health care that they -- >> americans are not better off
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with obamacare. americans need donald trump and mike pence to come in and repeal and replace. >> ask the 23 million people. >> congresswoman, we want to thank you. quick fact check for you. according to the gallup poll, majority in u.s. support the idea of a fed funded health care system. of course our guest host robert johnson will be with us for the rest of the program. back in a moment. for medicare. the annual enrollment period is now open. now is the time to find the coverage that's right for you ... at the right price. the way to do that is to explore your options. you can spend hours doing that yourself ... or you can call hethmarkets ... and let us do the legwork for you - with no cost or obligation. we'll search a variety of plans from nationally recognized companies to find the coverage that's the best fit for you ... at a price that fits your budget. and we'll do it at no charge to you. just tell us what you're looking for ... what deductibles you prefer ... what doctors you want to see. let us know if you want prescription drug coverage
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because we know you have better things to do. call this number and let healthmarkets find the right medicare plan for you - without cost or obligation. call a licensed agent now before open enrollment ends. call now. welcome back to "squawk." our guest host this morning is bob johnson who in a letter to the puerto rican controlled
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board outlined a $14 billion revenue plan to help solve the island's debt problem. bob, you're a media guy. what's a media guy doing meddling in the fiscal woes of another country? >> well, kayla, i'm also in the gaming business in the caribbean. we've been involved in caribbean islands providing video lottery terminals for governments who want to generate revenue from legal gaming that they use for educational and social services issues. and it's a benefit to them because many of the jurisdictions don't have tax revenue. and they're looking for other sources. puerto rico has over 100,000 illegal gambling machines that the government is trying to get rid of and we have been working with the government for over almost two years to replace those hundred thousand machines with 30,000 video lottery terminals that are connected to a central system that will allow
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the treasury department to monitor the system for compliance and tax revenue. right now according to the government's own report, something called a christiansen report, there's over $15 billion seeping out of the real economy into the underground economy because the government is not taxing these machines and not rei replacing them. recently a unanimous appeals court ruling in puerto ricoed that the government had the right to remove these machines and replace them with a vlt system. what we look at it is -- i was talking about the triple bottom line. puerto rico has some $30 billion in debt. and if you believe senator hatch's analysis, there's probably another $40 billion of underfunded pension liabilities approaching some $70 billion. where our program that we've put on the table, what i call the cage team.
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and we brought together for the largest gambling and gaming suppliers in the world to bid with us on this effort and to present a proposal to the puerto rican government and to the control board. >> right. >> that will generate over $14 billion over 20 years. and in addition i spoke with the head gaming investment banker at morgan stanley who indicated receivables from puerto rico could generate $650 million after nine months of this program with the 30,000 machines being operational. >> so this is a partial plan. i mean, the island owes what $70 billion in u.s. denominated debt? >> if you include the -- this is a recurring revenue stream. but more importantly it rids puerto rico of the evil of an underground economy where people are not taxed and therefore no
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revenue, people are leaving the island. what i want to do and i've been encouraged by a number of puerto rican business people and political people to move forward with this proposal because puerto rico needs more revenue to fund a very good revenue. for the university of puerto rico. they need money mofor medical. they need money for police and fire protection. running out of gas to solve some of the problems they have. in social services and fire and police protection. all of these things can be solved simply by the secretary of the treasury entering into this proposed -- >> you get the sense there's no willingness to do that? >> i think the secretary in my opinion is receiving bad advice from someone or a group of someone. or he doesn't seem to understand
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the critical need that puerto rico has for new and recurring revenue. and in addition to that, the need to send the signal to u.s. markets that puerto rico would rid itself of underground gaming. and legal -- >> we've got to go, but just response to this. this is a viewer on twitter says sounds like he wants to exploit the poor in puerto rico in his for-profit gambling business. >> to the viewer who wrote this, let me say this. puerto rico already has 100,000 illegal gambling machines that people are playing every day. we're not talking about bringing gambling to puerto rico. it's already there. we're talking about converting 100,000 machines to 30,000, regulating it so young people can't play, regulating it so the money goes to the treasury to help all those problems. so please, please understand that this is a program to benefit puerto rico by removing
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illegal gambling, not bringing new gambling to puerto rico. it's done in 12 states across the united states of america. >> all right. before we go to fact check the fact checkers, maybe you were talking about a federal health care plan. but she was talking about -- the congresswoman was talking about the affordable care act. the current real poll lick average of all the polls average 48.8% oppose obamacare. 39.2% favor obamacare. in the history of the polling, it's usually been below 40% for the favorability for obamacare and up above 50% of those that oppose. you can go back -- you can look at the chart. if you look up real clear politics for the entire history of the law, it's never been a majority. never been over 45% of the people that -- and it's never been below 46% disapproving of obamacare. that's all she was saying. you're talking about some federal health care program. >> no, what -- >> but now you're mixing up the
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language. >> now, joe. the distinction is this. you put obamacare's name on a cadillac and nobody would want to buy it. >> call it the affordable care act. call it whatever you want. the majority has always been against or at least the plurality. this is the average this is th average today 48.8, 39.2, it's a -- >> a federal health care program. >> okay. but she was saying obamacare has never been popular. and it's never been popular. it's never had a plu ral rality there's obviously disagreement on how we do it. but in terms of checking the fact checker, we always got to do -- fact checkers are supposedly worse than -- anyway, when we return jim cramer joins us live from the new york stock exchange.
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we'll get his take on the day's top stories next.
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let's get down to the new york stock exchange. jim cramer joins us now. another deal, jim, and kind of a market that i don't know. go under 2100 again on the s&p.
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is 2,000 the next step? >> we drip down every day. yesterday i thought there was going to be a moment where we were going to breakdown and then buyers come in. they seem to want to come in when things look like they're extreme particularly into selling retail and tech and then we bounce. i almost wish we'd have a washout. i guess we can't have a washout until after the election, or at least that day. i just feel like this has become torturous. all anybody wants to talk about is politics underneath everything's translated through politics whether it be really interesting quarter by eaton yesterday where at the end the ceo just said, hey, listen, it's all politics. i wish it weren't but all people are talking about is politics. it was the first ceo who actually just came out in the quarter and said we're not getting anywhere because of politics. and i was grateful for it. i think that's what everyone's saying behind the scenes. he said it publicly. >> what kind of -- what kind of screen -- you got a 70, inch?
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>> no. >> are you going to be there tonight? >> lisa doesn't want a tv there. she says every other bar has a tv on the block. >> what about tonight? >> we're the people who they go to where the wives say, hey, you're not watching that game, let's have a drink. it's working as a formula. they all have tvs. we're the place you go for romance. >> then you're not going to be in your restaurant tonight. don't you love seventh games? they're rare. >> that's true. i will not be. but my wife does not enjoy the series, so she can -- i was cleaning tables the other day and it's like, you know, the guy behind -- our fabulous cook saying, mr. cramer -- no, no, it's okay. i got time to clean. >> maybe a 30-inch under the bar where you can't see it or something. >> it's because of regulation. >> all right. yeah, that's it. there is too much regulation. coming up, a chicago cubs
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superfan getting a front row seat to game six last night thanks to bill murray, the cinderella boy. that story next. remember here at ally, nothing stops us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in.
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♪ ♪ one, two, - wait, wait. wait - where's tina? doing the hand thing? yep! we are all in for our customers. ally. do it right.
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chicago cubs beat the cleveland indians to force a deciding game seven in the world series. and one fan lucked out thanks to cubs superfan bill murray. the actor gave a cleveland native his extra ticket and the seat was right next to him. bill murray's been a staple at the world series supporting the team on a nightly basis. and it truly is a cinderella story for the chicago cubs. >> take a nap this afternoon. >> yeah -- wow, look at him. and he's been a friend of squawk. he's hilarious to this day. although i actually know more of the caddy shack lines than he does at this point. >> i want to go real quick to bob johnson. hillary clinton question. >> yes. >> you know her. i want to ask you about her judgment. neera tanden said she and bill have sometimes, quote, the worst judgment. in another e-mail to podesta he says her instincts are
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suboptimal. you can tell me life is relative if you want, but i'm curious knowing her the way you do. >> i can tell you that people who are pushing hillary left like neera will say that. but i will tell you people that know hillary or what she will do when she works together with opb. >> bob johnson, the one and only. we appreciate you being here. be sure to join us tomorrow. "squawk on the street" begins right now. ♪ good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. the s&p poised for a seventh straight decline, something we've not seen in five years as bonds, gold, the peso, the vix all point to heightened volatility ahead of the election. europe's lower as well. oil down fou


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