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tv   Squawk Box  CNBC  September 27, 2017 6:00am-9:00am EDT

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business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen and melissa lee. our guest host for the hour, joe ter noranova a cnbc contributor. we are calling it blueprint tax day? >> i saw it, i was -- >> that's what today is. >> any tax day makes me have a sick feeling >> you should not be having a--this is tax reform day. you should get excited this should be a great day for you. >> good for me, but bad for you. on high income earners, your taxes are going up i'll probably be okay. >> we'll see >> new york and new jersey, look out. >> sorkin, that thing you did, that stupid web thing. >> the domain.
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>> did you spell bed bath & beyond wrong did you spell it b-e-n >> the first time i wrote it. >> you say i'm a stickler for detail then they think i did this i'm like getting flack for something that you -- can you take it down >> i'll talk to my people. u.s. equity futures at this hour let's show you what's going on now. the dow looking like it would open up higher, 32 points higher nasdaq opening about 16 1/2 points higher. s&p 500 looking to open a little over 3 points higher let's go over to asia. the nikkei off a bit the hang seng and shanghai are looking up if we fly to europe, we will show you what that picture looks like you're seeing green arrows across the board you would be happiest if you were investing in the index there in spain finally wti crude, buying it by
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the barrel, still over -- well, still way over $51 coming in on 52. 51.74. >> here are the big stories we're watching our top corporate story. shares of nike lower this morning. the world's largest sports wear brand reporting a 24% drop in quarterly profit despite strong sales in china nike's outlook was disappointing. nike expects north american shares to decline. twitter says it will test doubling the character limit for tweets from 140 to 220 characters more room to criticize joe kernen >> i don't get criticism anymore. >> you block it. >> i don't like it you use it i use it to watch -- i get information from it. in our business they're asking us to opine on things in this very polarized world that we're
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in now that's setting you up for disaster if you retweet something, someone disagrees with it, you can get flooded with -- >> who cares i mean, who cares. >> because if it's -- if you retweet something and it comes from someone who you don't know, their background, they turn out to have done something in the past that's horrific, then the mainstream media will pick it up suddenly you're -- sorkin, don't act like you're a big twitter. you're rare with your tweets they're innocuous, usually promoting the "new york times. >> i follow all three of you i have to defend andrew. he does a good job on there. >> there's no opinion in there you don't know how he feels. >> i sometimes will put opinions in a little bit >> you'll say look at my column. golly, i have to congratulate a clom uolumnist at the new york sometimes. >> i congratulate you, your daughter >> that's all fine
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it's a dangerous world i would rather look than -- >> to your point -- >> doubling the trolls opportunity. >> exactly >> you're digesting content. >> i don't need 280 characters i guarantee you that they're just grasping at straws now. >> it's a news feed. >> they get zero per word any way. now they're going to get 280 times zero >> 1% or 2% of the platform, the people producing the content, everybody else is a voyeur how do you monetize that do you start charging us do you charge the voyeurs? >> maybe >> make it up on promoted tweets >> you have to incentivize getting better content from those actually contributing. that's a value >> we should note that only a random group of twitter users will be able to take advantage of this. twitter is under intense pressure to improve financials as it added no new users in the
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most recent quarter. >> would this change your investment thesis on this? >> the stock rose on the back of that. >> that's great. does that mean people buying it at 65 or 70 are able to get out? i have zero interest in buying twitter. i tried once to buy it took my loss and got out i don't -- >> you don't think there's a buyer for twitter? >> do i think there's a buyer for the actual company >> yeah. >> that's been discussed over the last couple of years where is that buyer exactly? the names mentioned t makes no sense. there's no synergy ultimately they have to stand on their own and change the model and develop it, try to integrate themselves into a company that understands it's a news feed and they're really distributing quality content. >> i don't think i would have the attention span to read 280 characters on twitter. right? >> right >> jack dorsey tweeted something that was 280 characters, he got
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backlash i lost interest, only read half. >> the other thing that's unfortunate, everyone focuses on how many followers do you have so it's all about the zeros at the end of your twitter account. that's not where the focus should be. >> i like sometimes putting a picture of something up, my kids or the dogs. shy do instagram, then >> why twitter has not figured out how to do video and pictures better you would think that from a technological perspective they could do this and then run ads instagram ads, i click on there constantly i don't know about you do you do that >> not constantly, but they do a better job of it that's true. >> i'm not on instagram. >> you're not on the gram? >> not on the gram or the snap >> you're missing out. >> when we talk about instagram, we thinkfacebook
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absolutely a name to put in your portfolio. uber is halting operations in quebec next month to avoid new regulations. quebec transportation drivers to undergo 35 hours of trading and have criminal background checks validated by police instead of third parties. rather than complying with the new rules, uber is pulling out the company says it will cease all operations in quebec starting october 14th. >> doesn't sound that prohibitive. >> to have a check by a third party? >> they're afraid of what they'll find out 35 hours doesn't seem that bad hey, noah. >> haey. the commerce department is considering slapping a 220% tariff on -- noah? >> bombardier.
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>> you say it with the little -- >> he can roll his rs. >> all right and -- what else do you guys, say? eh >> eh. >> great hockey town >> beautiful, too. got that european feel quebec >> montreal for sure >> you can't get an uber >> you can walk montreal it's beautiful >> in response to a complaint filed by boeing that bombardi bombardier -- >> sorry, i wasn't reading the prompter >> what are you doing? what else do you have to do? >> i'm down here on the wrong end. >> if you are, we'll find out. you'll be out of here so fast. bombardier receives unfair subsidies for its c series planes >> that's the funniest thing you've said in a while use your mastercard. >> your sense of humor is so
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weak in your view -- that was throw-away comment >> that was good >> bombardier calls the ruling absurd wilbur ross addressed the issue overnight. really on cnbc asia let's see. >> this is unrelated to nafta. there have been trade complaints back and forth since nafta was started. bombardier is specific now there's a couple more procedural steps it will be some months before a final determination is made. but this, with or without nafta, this kind of action would have been brought >> we'll talk more about this story in the next hour let's get to our market roundtable for that we have karen cavanaugh from voivoya investment managemt and noah blackstein, and joe terranova will weigh in.
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lea he's still with us did yellen make a speech, karen? i think she did. >> she did, indeed >> she says we will not be -- nothing will keep us from following our plan to raise. is that the headline >> that's what they said, then couched it with dovish tone it was hawkish, dovish, and the market didn't know what to make of it. >> were you watching it closely? was that your thing to do yesterday? >> i did watch it. >> voya said -- they assigned you to keep an eye on that >> i kind of wanted to see what she was going to say she was more forthcoming she seemed to say a lot, but was both hawkish and dovish. investors could have gotten a lot from both. i think it was timted mo etilteo the hawkish tone they want to raise rates >> it seems whatever has dictated the market action for the last six months or year has
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not been the fed they have done a few things. you have to anticipate what they'll do what else -- >> it's not the fed. >> what else are you looking at and what else is more important? >> earnings. it's always earnings the fed will do what the fed will do. it comes down to earnings. if earnings can continue to power forward, which they have, the market will continue to go forward. investors say why does the market keep going up because earnings keep getting better if we get a big tax reform, a good tax package, the market will go higher >> no other landscape -- sorry about blackberry you guys used to hold that up. wow, a canadian thing. >> quick still uses a blackberry >> yeah. >> anything else going on in canada companies? you have some energy companies, right? >> we do >> i love canada great trading partner. i'm kidding. you know, you're managing money
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around the world >> yeah. >> okay. >> i agree in the sense that this is an earnings driven market there's no sign of recession anywhere there's clearly increased ceo confidence the regulatory pause that's been enacted has been a boon for ceo confidence whether you agree with trump or not, these are pro business policies the regulatory side has enabled confidence to invest tax reform will be huge for domestically-based companies i go through the mid cap and small cap names. 38.7 tax rate. 36.5 they don't have the apple, the microsoft, the google tax rates. they pay full taxes. 20% rate is immaterial the one thing to derail is the fed. we're raising rates despite the fact there's no inflation. why? we'll talk about replacing guys wi like me with a computer.
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replace them with a computer >> you got -- you got your guy, trudeau, and trump down here >> my guy. i think he's andrew's guy. >> excuse me >> that's the point i was making you're canadian, unlike many, you probably rather import our president than the one you have from. >> well -- >> let me ask you, would you take trump or trudeau. >> he won't say. because he's canadian. >> for a market environment? >> that's a great question >> as a citizen of the world >> i view politics, i view as a money manager, i view politics as the hand we got dealt >> he's punting. >> i'm not punting i'm not punting at all >> which would you prefer the economic policies of trump's economic policies in canada >> from a global i investor standpoint, the lower tax rate anywhere is a positive for companies and businesses why wouldn't you want that >> the canadian tax rate is
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significantly lower for corporations than the u.s. tax rate you think it's a socialist communist country north of the border how is healthcare up there >> if you use it or don't use it if you don't use it, it's great. >> let me ask you where we are in the cycle as far as asset pricing. what do we need most in terms of economic policy? >> i think tax reform for corporations is the most important thing now. >> tax cuts. tax cuts is the biggest boon to corporations now that's what they need. >> repatriation? >> repatriation would be good as well tax cuts are the most important to make us more competitive in the global economy and if we get that, i think we can see the cycle go longer. people are worried that the cycle is getting long in the tooth. it could be a doubleheader if we get meaningful tax reform, this could go on for quite some time >> it gives another leg to specific caps. >> absolutely.
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absolutely with the high tax rate they will be the biggest beneficiary. we know the small caps, the small companies are the job creators we could see good economic growth there's no real mystery why we're stuck in 2% economic growth we have not had pro growth policies if we get that, then we are going to see some economic growth >> i think we got -- this was good you are okay >> did i say "about" enough? >> not really, but we'll get some for the reel at the end of the year we'll have that, trudeau is andrew's guy that was funny >> i think he liked the mastercard line. >> the mastercard visa joke was funnier. >> that was the most dumbest, insipid -- i say so many other things better. but that's -- >> over my head. >> yeah. that does play to your -- >> my base
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>> yourlevel >> yeah. >> thanks, karen >> it was not nice having you, but thank you for coming in. >> one is a bunny, one is a squirrel >> i think they're both squirrels now. val and verne are both squirrels. >> what happen to the rabbit >> was a rabbit. if i looked the last time -- >> your advertising agency pulled the rabbit? >> we still have rabbits but the green squirrel is the money you use now. the orange squirrel is the retirement money >> we have to keep going >> voya will help you manage your orange money and green money. both squirrels >> all right >> last time i looked both squirrels. >> confusing to the results of the senate race in alabama. roy moore ousting luther strange in the republican runoff the results handed a defeat to president trump. he endorsed and campaigned for strange. moore is an outspoken evangelical christian who won the election with a fierce anti-washington message and a
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call to put religion at the center of public life. republicans have abandoned plans to vote on a bill to repeal and replace obamacare, this after they failed to secure enough support to pass it. the bill's sponsors vowed to fight again but will face steeper sisteep er odds after sunday republicans will roll out a long-awaited tax blueprint later today. for more on tacks, we're joined by ramina bochia from thomas a. rowe institute for economic policies at the heritage foundation help us try to understand what you think we'll hear today >> i think the tax plan will be very much focused on bo pprovid tax relief to businesses so they can create more jobs we're talking about a corporate rate of about 20%. applying a lower rate for businesses who follow through the personal income rate code. the pass-throughs.
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there will be full expensing the idea that the businesses can write off the full value of expenses in the first year that may be temporary, five years for tax scoring reasons to make sure that the plan does not increase the deficit too much. there's going to be changes on the personal side, including a much higher standard deduction that will reduce the value of the special interest loopholes and tax breaks, including the mortgage interest deduction and other policies we'll see a bit on the personal side, a lot on the business side that's what's driving economic growth that's been the president's top priority to get growth to 3 % or more >> are you on board with 20% >> i think that that is a good start. the global average is about 22%. we're at almost twice that right now with 40%, if you factor in the corporate rate at the federal level and the average of
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state levels 20% is a good target i like the president's 15% target better. politics is about compromise 20% is better than what we have now. >> so, just so i'm clear, you would take 15% >> i would take 15%. i would take 10% the best corporate rate would be zero percent corporate rate. we're looking at double taxation all of that income gets taxed at the shareholder level and the corporate rate doesn't get paid by corporations. it ends up getting paid by workers in the form of lower wages. we know this from academic research over the past decade and beyond, workers bear pretty much the whole share of the corporate tax burden in the form of lower wages >> you appreciate the tradeoff >> the tradeoff -- >> the tradeoff being it's hard to pay for the roads and bridges and everything else we have going on in this world if that's the rate >> as a budget analyst, i believe that we can do a lot
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more if we were actually willing to cut spending. the fall budget is over 4 trillion >> that may be, but that's not what's happening here. >> i think because it's politically difficult. spending is a bipartisan problem. neither democrats or republicans have shown an appetite for cutting spending even the president's budget proposal has largely fallen on deaf ears. that's why it's difficult to get real big tax reform done if there's no appetite to cut the spending side of the budget. >> so we have currently seven individual tax rates we're now talking about having three. 12, 25, 35 where am i putting the middle class in that. obviously not the 35 but 12 or 25 >> with the higher standard deduction it depends on what you think defines the middle class you might put them in both tax brackets there won't be details today on exactly what income thresholds the new rates will apply i think that's something that
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they're leaving up to the tax writers to figure out, so we can see how that will score in the end. i think there's some wiggle room in those areas >> romina, thank you >> thank you coming up, the college basketball world was rocked yesterday by an fbi investigation into bribery, fraud and corruption we have new details this morning about the man who went under cover for the fed and helped catch cleat heaters at big schos "squawk box" will be right back. what started as a passion... ...has grown into an enterprise. that's why i switched to the spark cash card from capital one. now, i'm earning unlimited 2% cash back on every purchase i make. everything. what's in your wallet? for tech advice. dell small business advisor with one phone call, i get products that suit my needs
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witness katy perry... aaaaaaw look at that dog! katy perry: with music videos and behind the scenes footage, xfinity lets you witness all things me. big shocker yesterday. the big business of ncaa sports is under the cloud of another scandal. eric chime has more on who blew the whistle on the massive college bribery operation. march madness, man this is september madness. huge surprise in the world of college supports the fbi and u.s. attorney's office alleging top college basketball coaches took bribes to steer players to financial advisers when the athletes turned pro the man at the center of it all, a disgraced pittsburgh financial officer who went undercover while dealing with his own fraud investigation. >> in steering players to a financial adviser who turned out
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was cooperating with the government, most of the coaches never asked the advisor a single question about his qualifications his track record in handling players money, or really anything else. >> 47-year-old marty blazer advised entertainers and professional athletes. the s.e.c. filed charges against him last year saying he wrongly took almost 2$2.5 million from five clients in part so he could invest in various movie projects he pitched one of the movies as an investment to an athlete client after that client said no, blazer took $550,000 from his account any way to invest. when that athlete found out and wanted his money back, blazer took it from a different account. he has a long history of fraud blazer start the hed his careern 1992 he had client complaints going back to the 1990s including paying $850,000 in 2011 to settle a complaint when an nfl player said blazer used his money inappropriately. we talked to blazer's attorney
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yesterday, he said he had no comment citing the ongoing investigation. there you go >> if it's possible to do it, someone will try that's what we know. if there's an angle to work. but for college sports, we were hoping money wasn't -- we understand pro sports. >> it's the junior varsity of pro sports if there's big money in pros -- >> should we take shoe money, all of it out of it completely that's the larger question does this incentivize the bad actors and make it worse should we change the way this whole -- >> does this mean also that companies like adidas won't outfit sports teams? that's at the heart of it here >> that's what it comes down to. >> adidas wants to outfit certain teams. >> should you take the shoe money out of the business? >> these are 1$100 million deals louisville, miami, they're both
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adidas schools if you have already given them the money, you want your best athletes going there that's where 100,000 is going to a mom or dad that's to get them into the school the first case is getting the kids into the school now that they're leaving, there's an agent or an adviser who wants their business >> you take the shoe money out of the equation, you still have schools fund-raising based on the success of their athletic team it's impossible to take the money out of the equation. >> i think the sneaker money is the worst part >> and the concept of one and done that's got to go >> at least pro is straightforward. you know everyone is getting paid they're doing their deals. the college thing, because it's supposed to be amateur, it's clearly not. this is the problem that you'll get over and over again. >> you saw what ohio state's team is worth. university of texas. >> these are big businesses, if you made them publicly traded stocks, they're big companies.
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>> then you throw in with hoops, february and march productivity grinds to a halt the week where there's -- >> it's the american gdp for the month. >> tough to know, do we think this is over or the beginning? >> tip of the iceberg? >> we think the adidas guy, he was a high school basketball coach in new york city for a long time. he's on the older side he will probably flip on people. he's not going jail at 80. we know this was ha been going on for a long time they caught these few guys when we return, a lot more to talk about. china in focus knew data from the chinese beige book that says there are two big trends the market is missing. and we'll tell you what wilbur ross said about his meeting with china's premiere in beijing. as we head to a break, look at yesterday's s&p 500 winners and losers
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>> be enthusiastic, they're higher >> u.s. equity futures, they are adding to gains again. >> no correction >> across the board. it's not mixed sometimes the s&p might be down. nasdaq down. the nasdaq has been weak because of apple >> f.a.n.g. stocks in general. facebook a big weight. apple a big weight >> rotation. >> is it >> you're hoping wilbur ross is calling for a dramatic shift in the u.s. trade relationship with china he was speaking after a meeting in beijing where he met with the country's premiere ross said he raised concerns about the imbalance of trade and the need to lower tariffs and protect intellectual property. china's economy showing growth, but the beige book is saying the market is missing two big trends
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leland miller joins us what is the market not getting in terms of capacity the impression is china is making cuts in capacity and steel prices should be rising, so what are we getting wrong >> what the market thinks is happening is sizzling demand over the last year combined with reduction in supply has led prices to go crazy, a bullish trend that won't stop soon you have your sizzling demand o you've had it until now, but you never had the reduction in capacity we've been told quarter and quarter again that there's no debt reduction in supply what's happening is they will take certain things offline, but put more back on to get there. profits sob ha s online so we have speculative capital flooding into the sector into china you have a big ball of capital, it's called the money ball it's hostage within the closed capital account and it goes to
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where the getting is good. right now it's commodities it's been commodities. that's been flooding into the sector people think that this is because of the supply cuts it's because of speculative capital. demand -- a fall in demand will lead that capital to go the other way. >> so in terms of how that's manife manifest, is it manifest in wall street prices for steel? >> it hasn't the problem is people see the demand our new data show demand faltered this quarter. we this a beautiful second quarter in terms of the commodity sector, every onericsd quarter. on the supply side, the chinese announce supply cuts wall street analysts say yes, we believe you. whatever you say it's a good trading thesis so people bought into it as it becomes clear this capacity is not being taken offline, production is not being taken offline, we'll see a different trend.
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>> since about may or so, we saw a rise in a lot of steel stocks in the u.s would you say some of the reasons why these stocks may be rising are faulty? if the thesis is there arecuts up steel prices, and that's wrong, this will go away >> the china demand faltering to some degree, also a lot tof rose when you had the rumors of the section 232 trade investigations that never happened. it's been pushed back. a lot of these reasons have not panned out >> over the same time frame, chinese imports of steel have raisin dramatically, nearly 30% wh what do we do about that will we see tariffs being imposed? >> that's where we will go eventually right now trump is arming the trade gun. you have section 301, all these
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things where trump is saying not yet, but we'll hold them over to you, beijing what are you going to do? right now they're still in the friendly part of the relationship, trying to negotiate a nice trade pact to make the president's trip look good when this falters, when south china sea blows up in 2018 f it does, you will see some of this reverse. and this could turn suddenly in 2018 >> the communist party congress happens mid-october. what should we expect? should we take with a grain of salt some of the numbers coming out of china >> we should take all numbers coming out of china with a grain of salt. >> maybe an extra couple >> the economy looks good. this is why people are worried about china. a year ago things looked bad your-on-year statistics are beautiful. they have had a recovery just
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about across the board we don't disagree with the chinese message. they wanted to provide a good environment for the party congress they have done that. no qualms about that it's what have they done -- what kind of bargain have they set up about future years in order to bring this growth forward to have such a good 2017. >> thank you for your time coming up, more "squawk box" for this first hour. senator pat toomey will be joining us >> big show. big hour >> you said that you said it so well on "worldwide exchange. pat toomey will join us. the senator at the top of the hour he will talk about the gop's tax blueprint due out later today. did you notice worker yesterday -- >> yes >> he dodged your question >> i noticed what did you know? what did you know, how did you know it. >> i pushed him on answering whether he would run again, then i said i am telling you i'm urging you to run. and then that must have been it.
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once i urged him to run -- >> he's like i'm out >> i saw that and i thought joseph was -- you knew something. what did you know? >> i knew the decision was imminent i wish he would have told us yesterday, which he didn't >> he was not ready. >> i knew if i urged him to -- >> for those not paying attention, bob corker is not running. you asked him the question yesterday. that was a very good question. i thought did you have inside information there? >> do you ever tell me anything you know you always like you know something. even when you don't, you do. then a "squawk box" exclusive. he made it to the big time kevin hassett joins us for his first interview since being confirmed as the chairman of the president's economic adviser later on, we're waking up with -- i don't know if doughnuts are on the way >> no doughnuts? >> i don't know.
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he eats like seven >> nigel travis will join us >> they're light >> he'll join us at 7:40 a.m. eastern. as we head to break, here's what senator corker, bob, really, here's what he said yesterday. >> can you tell me you're definitely going to run for re-election? are you just ready to say this is it. i'm going. this is crazy. i'm leaving. >> look, it'sbeen a tremendous privilege to doing what i'm doing. it remains that. i look forward to being in the center of this tax reform debate so many issues coming up iran will likely be in the forefront in the beginning of october. i'm sy dngbuoi my job, i'll share the plans with you at the right time maybe very soon.
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saudi arabia announcing it will allow women to drive for the first time in the kingdom. it had been the only country in the world left to ban women from driving. the royal decree ordered the new regulation to be implemented by june 24th of next year saudi arabia's ambassador to the u.s. said it's the right
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decision at the right time another indication that this younger individual that is looking -- he's sort of leapfrogging some of the other heirs, and he's definitely more -- seems like there's more western-type thinking coming from this guy. >> there's a high profile fight brewing between major tech companies. amazon saying that google pulled support for youtube from amazon's echo show devices amazon said the move happened without explanation and notification to customers. and there was no technical reason for pulling youtube from echo devices google said the decision was based onion going negotiations with amazon. theism m i think we'll be seeing more of this type of thing we used to have this between microsoft and apple for a long time remember, then there was the point at which apple was in its
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own fight with adobe on flash. >> yep >> there's going to be -- the more these guys go head to head -- >> to many different spaces. >> many different spaces they're all now in each other's space. everyone is trying to be each other. >> absolutely. you have an ongoing battle with apple and qualcomm which has a binary outcome evidence of what you're talking about. apple says a fix is coming for the iphone 8 at issue some users are experiencing a crackling or static sound that disrupts the audio when they make calls the problem seems to affect iphone 8 and iphone 8 plus across different carriers and in different regions. apple says it's team is at work for a fix. coming up, super agent ari emanuel teaming up with mat mati kochavi i transposed them. >> something i would do.
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♪ ♪ >> welcome back to "squawk box" on cnbc. euro league basketball and bull riders association have teamed up with heed it's using the internet of things to change the way we watch and judge sports joining us right now are two of the co-founders of heed. super agent ari emmanuel and co-ceo of img, and also matte gohave we should mention, in full disclosure, that ari, we were in business with ari. ari represents joseph, and yours truly. it's nice to have both of you here >> it's nice to be here. >> we want to get into sports and all the controversy in the
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news, but tell us about heed and what it's all about. >> well, listen, when you look at sports ratings right now, they're down a little bit across the board, and i can see in my kids -- i have three young boys and a daughter, but they watch it, and they do other things they don't watch the whole program. they're getting information. there are going to be 50 billion sensors. how do you keep that generation engaged in sports? we came together based on what he did in his past life and what i do, we took our professional sports and said i think there's a new way to tell a story that keeps that demographic engaged then monty and i came to this business, and he should explain kind of what his company does and now what we're trying to do with our sports. >> what are you doing? >> so think about -- think of
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the robot. right now in ufc fight, and that robot can see much more than any human. it's a robot he has a much better ability to see everything not only the fight, but also the coach and the fans and the referee and everything it can analyze what's happening every given moment, every second, and can tell you what is interesting. when something is really interesting, the robot knows how to package it and send it to people and tell them, hey, you should watch something interesting is happening. the problem we are trying to solve is people don't have to watch anymore if they don't want to watch a 90 minute soccer game or if they don't want to watch two hours basketball game, but they do want to be connected our technology will be able to pick the great moments, and the great moments are not the score. the great moments are all the
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other things that we feel when we're at an event and send it to people and say here is something interesting that's happening >> does this experience happen after the event is over, or does it happen concurrently when the event is on? >> concurrently. >> right >> not only -- i also believe it's an enhancement to the broadcast. it kind of can capture the emotions of what's going on if you were talking about the uc, what's going on with the corner, what's going on with the fighter, what's going on with the referee. it can package it up and deliver it to a wide, diverse group of people that want different things then send them back to the broadcast or kind of keep them there. >> what's the worry, though, that you cannibalize the broadcast, which is at the moment where the real money is >> let's be clear. when you say i don't believe the word is proper to say cannibalize. you have facebook that's now vertical snapchat is doing their thing. that has not -- i actually think it is enhanced everybody says as technology cannibalizes i don't believe television hurt
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radio or newspapers. those -- this is an enhancement. >> you are going to send me the best moments of the game, and i don't have to necessarily watch the game >> if i'm telling you that something really interesting is happening, you're going to say, hey, i'm going to watch the game i'm actually going to move you back to the broadcasting the fact is we watch things differently right now. right? we want to get notifications of great things, great moments. i don't want to watch everything i don't have time. if i'm a young guy, i don't have time to watch. >> it sounds like you were describing what a director does in terms of -- >> or a sportcaster. >> they're the ones saying get the coach. >> i feel bad for the directors. >> don't feel bad for them a brain is getting about ten million bytes per second from our sensors. ten million bytes per second we only analyze about 50 mill n
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million -- 50 of them. >> now all of this can be analyzed >> let's say it's an off the field situation or a game situation. let's say a player takes a knee. would your ai see that and say, wow, there's a moment? >> you could also tell what the audience is feeling in the stadium, what the coach is feeling, what the other players are feeling. >> we're giving you three things one is the physical aspect, which is easy, right how people move, fast. the behavioral issue and the emotional part >> ari, while we have you here, talking about taking the knee. clients i assume must call you during this whole situation both on the corporate side, the players. >> if you want my opinion about it -- >> i want your opinion >> we have a first amendment they're acting on their right. >> do you think -- >> and anybody can act on their right not to watch if they don't. that's what the first amendment -- we're based on laws >> is this going to be good or bad for the nfl? good or bad for the nba?
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>> i don't predict the future. here's what i do know. we're actually doing something on this side of the table that i think is innovative, different, and that will actually enhance the sports that we look at because a three-hour football match right now is actually for certain generation i think getting more difficult this enables them to kind of engage in it and actually then go back to it. >> you're smart because predictions are really difficult, especially about the future our own yogi berra right here. >> real quick, we have to go you're selling this to broadcasters you're selling this -- >> we're selling it to the events, to leagues, to ufc, like soccer those are our customers. >> we should do it for "squawk" customers, right >> i would actually like to know how joe steel feels. i would like to know how he is feeling right now. >> we tell people when it's exciting and when to watch it. >> i d'teel keon fli i'm excited nearly enough. i count on my dell small business advisor
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for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪
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bouncing back. the dow looking to open higher after four straight losing sessions we have your market playbook straight ahead tax reform is in focus a "squawk" exclusive the council of economics advisor, the chair of p after getting that big, big job. we'll talk policy change and the economy in just a bit. plus, the ceo of dunkin' brands talks coffee wars and the consumer nigel travis, yeah, baby, will. >> james: us for a cup of joe as he gets ready to hit the buzzer here at the nasdaq it's the second hour of "squawk box" that begins right now >> live from the beating heart of business, new york city, this is "squawk box."
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♪ the way that you left me >> good morning. welcome back to "squawk box. live at the nasdaq market site in many times square the futures at this hour are looking in the green let's show you what's going on i think they're still looking in the green. dow looks like it would open up 42 points higher nasdaq up about 22 points higher, and the s&p 500 looking to open four and a half points higher here's what's making headlines at this hour another possible data breach is in the news, sadly fast food chain sonic says it has now been notified of unusual activity regarding credit cards used at its restaurants. however, it's not clear how many numbers may have been compromised. also, trade dispute is brewing between the u.s. and canada. the commerce department has slapped anti-subsidy duties on jets made. that follows a complaint by boeing that canada had unfairly subsidized those jets. however, those duties will only take effect if the international trade commission approves them more financial trouble for
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connecticut's capital city both s&p and moody's downgradin hartfo hartford's debt pushing it further into junk territory. the city may default on its debt as soon as november. the other thing i'm just adding since we talked about it -- adding to the news list is sort of a fascinating thing in this whole procter & gamble and nellon peltz five alumni of the hineinze boa that he had joined, sent a letter to proctor & gamble's directors say put nellon peltz on the board he is a good director. i don't think i have seen anything like this before. >> that was back in 2006 that they had -- and they said, well, nelson actually helped by being on the board >> exactly it's just fascinating to have alumni of one company sending a letter to another company saying actually this guy is a good guy, we like being on the board with him, and he made it work by the way, with heinze, he clearly did make it work >> he did. i believe a former ceo of heinze
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is on peltz's advisory board there are continuing ties between the two companies. proctor & gamble has been outspoken. i wouldn't be surprised if they said to heinze mind your own business stay out of this >> it's interesting. >> yeah. >> inviting the proctor & gamble board to reach out to them to share their experience >> talk to us. we'll tell you how great it was. >> so kind >> joe, what do you make of the markets at this point in time after hearing what yellen had said we had a very low volume day yesterday. >> yeah. >> proceeded by a massive sell-off in technology the day before >> again, i think for the long-term investor, the need to be diversified in all of your asset classes and all your sectors is incredibly important
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right now. you just don't know if a correction is going to come, where the correction is going to unfold you have -- you have these dynamics within the marketplace where you month-to-date have energy up 8%, you have financials up 3%, and then you have technology down 2%. momentum shifts. strategy shifts. growth to value, back to growth. overall, it doesn't really lead to a general market dough cline. just more of a rotation. we await now earnings, which are incredibly important >> so do you think that we should be in or investors should be in on this rotation >> no. no it's a trade >> equity is up 10%. you see wti at levels not seen since april. you don't buy into that move >> again, it goes back to my original comment you should be diversified, so you should already -- energy is 6% of the s&p. you should be on either side of that maybe 4%, maybe 7% whatever the case may be you want to slightly increase it, that's okay, but that's more of a trading event, and you are
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seeing all this algarhythmic trading that's going on throughout the day we focus on it a little bit, but longer term the overall trend remains in place, and, again, earnings incredibly important on the other side of that you have what seasonally is the strongest buy-back period that comes in november. >> right nike, would you buy? >> tough one i think longer term, nike will be able to figure out the problems that they're having direct to consumer their relationship with amazon yes, that's going to benefit them you saw the on-line orders were increasing, but, you know, converse clearly was a struggle. i think you have to be patient with it. it's a pause that will refresh it's just a matter of how long it takes >> all right joe, thank you more from joe in a little bit. >> i don't know whether it was yogi you know, you attribute everything like that to yogi, but i think it was neils bore, but it's also an old danish
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proverb. it would make sense that it would be neils bore with the electrons. albert action ne albert einstein. republicans set to unveil their tax reformulator this morning. joining us now senator pat toomey sits on the finance committee. this is the saying for the day, i think, senator, that predictions are difficult, especially about the future. i bet you can't tell us that much about what's going to be in this thing, or can you predictions are difficult. >> but it's so hard to predict the future, joe. >> i think we are going to see lower rates. we're going to see an increase
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in the standard deduction. it's going to be a net tax cut for middle class and working class americans, that's for sure i'm also very excited about the pro-growth implications for the business side. i think we're going to see a top marginal corporate rate that will be below the oecd average, which is about 22% we've got a rate of 35 right now. my goal is to get down to 20%. i think that's doable. i think we'll make sure, of course, that pass-through companies are at a comparable and equivalent rate. moving in the direction of more expensing of capital expenditures, which is great for incentives this is a very strong supply side pro-growth package that i think is going to lead to an economic acceleration, more jobs, up higher wages. i'm really excited about where we're heading. >> still a lot of sacred cows, senator. i don't know about the state deduction. i don't know what that does, how
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it disadvantages certain states. if you go to 35 on the high end and take away the state deduction, you're actually going to be raising taxes on a lot of peop people is that the cost of doing business, or would that be a negative >> first of all, we've got to work through a lot of important details, including that one, through both committees, and let's see what the product looks like let's be honest. the deductible -- whether that is good economic policy or whether it's even -- >> do you know if it's retroactive or not or is that to be decided >> again, i think the timing and the exact effective date, that's to be worked out some elements might get put into effect before other elements important details, but those will be worked out in the committees and yourself dikzs. >> do you know what senator
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corker was planning, senator >> i was not certain by any means. let me just say we're going to miss bob corker. bob corker is one of the most respected members of the u.s. senate a really thoughtful guy that contributes tremendously on a wide range of topics a really good guy. we're all going to miss him. we've got a while with him still. >> no, i know. with you as well you don't have anything to tell us today he didn't tell us yesterday. he had a big chance. first thing in the morning could have reached the widest audience and the most important audience -- >> i'm relukt yabt to
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extrapolate beyond the individual race. every individual race, as identify learned, is specific to that race, and this is a very unusual race in which you had an incumbent who had never been elected. luther strange, who i think is a terrific man, he had not been elected to the senate. he had been appointed. that creates a very different dynamic as well. >> sounds like a really great guy. ran a fantastic race he will help to make -- to maga. is it a number sign? what's that little -- >> hash tag. >> okay. fine it's a hash tag. that is -- you know, he had bannon behind him and sarah
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palin. i heard someone last night say -- i think it was bob bennett say the senator is going to get elected not the one who trump likes, but the one who is like trump. that's what he said about roy moore. >> i haven't met roy moore i look forward to getting to know him i certainly hope he wins the general election that's coming up he will join us, and hopefully he will be a productive member of the senate. >> the left is celebrating that trump looks bad because of roy moore and luther strange this is a guy who a couple of days ago pulled out a handgun at one of his campaign rallies, and the leftists -- do they -- i don't know if they've connected all the dots here. are they sure this is a good thing for the progressive cause? i don't know >> i don't know, but, you know, as i said, joe, we stick to our knitting, get our job done, get a big tax reform package done. >> do you think it's good to --
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>> i just -- >> handgun >> was it good that the guy had a handgun in his car down at the church shooting recently was that a good thing? >> no. >> go ahead, senator >> i don't know. i'm not following the question >> it's not a question it was more of -- did we not flash the commentary this time at the bottom? we're supposed to flash that whenever i get to that part. health care was tough, and it didn't work, senator, and i worry about tax reform why should we think this would be any different whe republicans are -- they got about three parties within their own party right now, just like -- >> sure. it's going to be tough there are some big differences the one is that tax reform is -- it's an issue that most republicans are very comfortable with and, you know, frankly, the projection of an ultimate health care regulatory environment is something that is not quite as much in -- it's not as great a consensus as there has been
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historically on taxes. the second point i would make is that taxes by their nature, most of the features in the tax code, can be dialled up or down, so there's a lot of opportunity for compromise, whereas in health care many much the controversial issues are binary. you know, will there be an individual mandate or will there not? and we've done an awful lot of work already, and what you are going to see this afternoon reflects a pretty broad consensus between senate republicans, house republicans, and the white house. we've got a great place to begin. >> we know about how many times congress voted for repeal, and we know how many different options that we just saw get put forward to try to satisfy rand
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paul or to try to satisfy a moderate they were able to find that the most minute detail to take a stand against and ijust -- there's got to be something these guys on like a -- way on the right in the republican party and why on the moderate side of the republican party there's got to be things that these guys are going to say, no, i can't go along with that there could be a lot of stumbling blocks, and you have no room for error, again >> very little room for error. that is true again, you know, we're going to have milestones that we have to hit. we have to have a budget come out of committee, and it's scheduled for next week. you will see whether or not we hit that milestone then it's got to pass the senate floor, and then we need one in the house. we're going to have this series of very public events that will allow us to measure whether or not we're actually making progress towards this goal i think we're going to surprise you, joe >> oh, no. i'm just -- i'm just trying to, you know, show you guys what some of the problems are going
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to be. maybe -- it's tough love,ing senator. this is tough love i've been watching what happened, and it wasn't pretty to watch for the last six months obviously. >> spoke to jerry jones at the dallas cowboys jerry is a winner who knows how to get things done players will stand for countries. should they stand, senator >> oh, i think they should i mean, look, i think this country has offered so many millions of people so many wonderful opportunities, and quite especially the players on the field are multimillionaires because they're good at playing the game they have every right to protest as they see fit, but i think it would it's totally inappropriate i think they should show their respect for the people that helped secure the country that they -- >> i think it's entirely within the prerogative of the team owner. they are employees of the team, and the team owner can make that
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call i think they ought to be standing >> none of them are wearing 9/11 tributes on their shoes. goodell got that -- at least he took a hard line on that don't want anyone doing that senator -- >> exactly >> all right, senator. thank you. appreciate it. >> thanks for having me. see you. coming up, two market pros on making money now. anastasia of j.p. morgan private bank and mike ryan of ubs will join us after the break. at 7:30 a.m. this morning an exclusive interview with the council of economic advisors chairman and long-time "squawk box" guest kevin hasset. and then nigel travis, ceo of dunkin', will talk coffee wars and the state of the consumer. you're watching "squawk box" on cnbc think again. this is the new new york.
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alright, looks like we've got chips, popcorn, pretzels? pretzels! plain, sourdough, spicy, sesame, honey mustard, chocolate covered, peanut butter filled, this one's in german, it says, "reindfleisch?" plain. great. so what are we gonna watch? oh! show me fall tv. check out the best of the best hand-picked fall shows on xfinity x1, online, and the xfinity stream app. thirsty? futures indicating a higher open across the board. the dow is trying to snap a four-day losing session. joining us now to talk more about the markets, anastasia, global investment strategist at jp morgan private bank, and mike ryan, chief investment strategist at ubs. today's guest host joe terra nova at vertis investment partners and a cnbc contributor. everybody, good to have you with
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us i'll start off with you. in terms of the markets, i want to get your view on the dollar first because that will educate us on where else you see the markets going. you actually see the dollar rising into the year end >> i do. i think that's the most important driver of the markets right now. we've been speaking about it since about last week. snoo i do think the dollar firms into year-end. if you think about the trades at work so far this year, they've all been the weaker dollar trades >> it's going to reopen between the u.s. and europe. in the u.s. we do see inflation
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firming, but in europe not so much >> right mike, do you see the same thing for the u.s. dollar? that would speak to a rotation maybe out of technology into smaller cap names. >> we're not as convinced. first of all, we see the dollar -- there's a lot of repriced in terms of what we expect of fed policy we've been sort of waiting for this fed normalization process and the balance sheet reduction. i do think this did put some upward pressure on the dollar, but i don't expect to see -- >> i think it's going to be in energy >> thus far. >> no, thus far.
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>> you missed my point i didn't say about the roll back in regulation. i said the fact that we're not seeing incremental regulation, and it's about enforcement >> i would also add to that on the banking side, i think one underappreciated fact is deregulation doesn't actually have to come from the act of congress you know, if you get some relaxation of the capital rules as a function of who is going to be appointed to the fed, the sprz committee, that's the place that they got deregulation from. >> just to put a fair point on it, your boss, jamie dimon, we did an interview with him a few weeks ago asked the question, has deregulation done anything to improve the earnings of your bank, and he said no >> we're seeing a lot of
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reinterpretation of what the dol will be. >> you're talking about department of labor fiduciary role >> yes we believe in the fiduciary standard, but we don't believe this is the right approach to it there's evidence about how we're seeing this change in the regulatory environment >> it's also about liquidity think about all the liquidity trapped on the bank balance sheets if you can unlock that and get that into the financial system, that should be stimulative >> yeah. that's right i think those are the types of opportunities we want to look for. it's not just tax reform it's not deregulation. it's a combination of those factors, and, by the way, they also make sense to us from the cyclical perspective banks definitely checks all those boxes at the current time. >> we'll leave it there. mike, thank you. our thanks to joe as well for sticking with us an hour and -- >> i'm here until 9:00 thank you. >> thank you for having me >> oh, okay. >> not you, mr. kernan, sir. >> it's nice to be thanked, joe. >> thank you, joe.
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>> an exclusive interview with chairman kevin hasset. started out cutting his teeth on "squawk box. now cea. big job. big job. then, later, nike's stock sliding after giving a bleak outlook for north american sales. we'll run through the numbers and talk about the competent tiff athletic apparel market "squawk box" will be right back. are you ok? what happened? dad kinda walked into my swing. huh? don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii! you might have less coverage than you think.
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our exclusive interview, council of economic advisors chair kevin hasset joins us right after the break. as we head to break, we just mentioned, take a look, u.s. equity futures have added gains of 52 now onheowon be right back. opportunities aren't always obvious.
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>> among the stories front and center, we'll get an august read on durable goods orders in about an hour from now economists are expecting a rise of .9% following a decline of 6.8% in july mortgage applications fell a half a percent last week according to new figures from the mortgage bankers association. new purchase applications actually rose, but that was more than offset by a decline in refinancing activity the average 30-year mortgage rate rose seven basis points during the week to 4.1 1%. the u.s. has the second most competitive economy in the world. that's according to new rankings from the world economic forum. only switzerland ranks ahead of the u.s. it has the best performance and one spot higher than a year ago.
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>> i'm sorry i'm not in new york, and joe is right you know, i was in senate confirmation limbo for a while, and thergaritas in limbo are really awesome >> i'm working on the perfect margarita. can i call you kevin >> kevin that's the right thing >> i just looked up just to make sure that you were trained in economics i would say at least half a dozen times someone usually a democrat, someone on the left, they have told me straight-faced that there's not a single mainstream economist who believes in either dynamic score i
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scoring or trickle down economics. both of these notions are either inacronistic or zombie ideas that have been proven dead but are suddenly back alive, but not anyone you trust that has an economics degree really believes in them anymore. that's false, isn't it >> that's absolutely false, joe. there are a whole bunch of distinguished democrats and republicans and -- i was on that one too. we came up with a plan for the joint tax committee to gradually move towards scientific scoring that accounted for growth effects, and they started it more than a decade ago they've been using the model for a long time, and i think that now when we push this tax bill, the president is going to talk about it later today, then i think there will be a much more accurate read for congressmen to look at when they're trying to decide what it will do to the economy and how it will affect
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the budget >>. >> are you the cea chair >> the cea chair has moved in and out of being part of the cabinet since its founding i think it wasn't meant to in the cabinet in the original design because it's not supposed to have political analysis to the white house, and it was to be objective it was elevated for some of the cea chairs to the cabinet. we've gone back to the original design it's something i'm quite comfortable with >> you are >> i think that the job of the cea is to provide objective analysis to the president and to not feel like i have to go out there and tow the partisan line. >> we have reconciliati reconciliation, and there are certain constraints on how to do this, obviously. having been at aei, in a perfect world, if you were going to cut
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taxes, and i know we can talk corporate taxes, but just talking about cutting taxes across the board, isn't that something that is preferable than cherry picking different -- wouldn't you -- wouldn't it make sense if you wanted to just philosophically leave more money in the private sector where it can be deployed to take risk and to invest, wouldn't it -- there's going to be no tax cut for anyone that is in the top 10%. rates might go up. that doesn't seem like something that someone from the aei would propose, kevin >> the president is going to be laying out the details later today, and i look forward to being back soon with all the details on the table, but i can foreshadow a little bit that i love this plan, and i think you're going to love this plan, joe.
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>> rates are going up. >> you are actually raising taxes on the wealthy, which is -- which doesn't sound like a republican proposal. i'm pretty sure where we are right now, what the big six have accomplished, is quite impressive in that regard. >> loopholes, corporate loopholes. always the big issue what gets closed, what doesn't there's an op ed -- it's a fascinating op ed in today's
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wall street journal by steve candarian have metlife he says a lobbyist hired to protect such -- always predict doom if they're stripped away, but in our businesses cannot survive without tax subsidies, then we have to wonder how much value we're creating for consumers and shareholders >> that's a key principle that i think all the members of the big six has talked about we've got this ridiculously complicated code there are hundreds of pages for ordinary citizens to look at just to fill out their own tax return then if in the end, you know, i'm giving you a subsidy for buying this thing, but then i have to charge you a higher tax rate because i gave you the subsidy, then all that complexity isn't putting more money in your pocket there's been an enormous effort are in the 86 tax acts style, and i think this isn't foreshadowing too much, it's an effort to simplify things a heck of a lot and make it so you can justify lower rates by taking the complex red tape out of the
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tax code >> in this new role, on a daily basis, you wake up yol what do you watch the first hour, hour and a half of "squawk box. >> "squawk box" has to be on all the time >> then what do you do what's your day being loo like what is your role as opposed to, you know, the rest of the other people that do similar things in this strags? >> sits in the kitchen >> are you officially a member of the cabinet >> he still sits in the kitchen with the other -- >> so what happens is i get to work pretty early in the morning. we usually have senior staff meeting in the white house sometime in the morning, and then i'll end up organizing the cea staff a little bit, talking about what memos we have to have done we have a big economic report of the president that we're producing right now, and we have a big strategic plan to accomplish that. you know, a lot of times ad hoc meetings fill the day, and i guess 12 hours a day is looking like a pretty easy draw right now. sometimes it's a little worse than that. >> who are you butting heads
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with how are you and cohen getting alo along? >> i think joe kernan is giving me the most trouble. >> you are starting on me. >> you are a never trumper, come on, admit it here we go, joe. >> what happened what happened? >> you were making it up you were just making it up >> here's what i used to say for a guy at the aei, and we would have on you employment fridays and we would have, like, jared bernstein in here. he is throwing fire and brim stone, and then we go to you, and it's like, you know, i had to, like, step in a lot of times. i didn't know if i really -- i didn't know if you were bleeding fiscal conservativism, kevin, but apparently you were.
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>> is the white house and their attitude towards the private sector and, you know, you've read arthur's books, i know. is it closer to that, or is it closer to the globalist sort of -- i'm contrasting between arthur brooks and let's say a gary cohen who takes -- who has the upper hand right now >> i enjoyed any first meeting
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with him we're working together as a team to help do that. >> you know, kevin, i'm grat feud you really did come around you really have -- you really have come around thank you for coming here, and thank you for, you know, getting up and -- steams you dvr it, i guess, but other times you are watching live. after worldwide exchange obviously. thank you. we'll see you -- >> thanks, joe >> come in studio, because you're in new york once in a while, right fancy new studio right in times square thank you. >> thanks, guys. dunkin' brand ceo nigel travis stops by. there's donuts coming. i'm excited about kevin hasset, and you are excited about kevin -- >> i will never turn down a donut. >> nigel stopping by for -- i can't. look at me >> your body is a temple, right, joe? >> stop by for a cup of coffee and talk business, consumer, and more that interview right after the break. then, later, the ncaa scandal could prove to be a hit for the athletic apparel sector. we're going to talk adidas, nike, and more with an analyst who covers that sector
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i'm trying to get a donut. >> a glazed donut. >> specifically right over there. this friday is national coffee day. our next guest will mark the occasion by donating nearly 14 tons of coffee to the american red cross to support hurricane relief efforts let's bring in nigel travis. he is dunkin' brands chairman and ceo. nigel, thank you for coming in i don't even know what you brought here i'm looking at that thing now. >> that's from baskin robbins, a pizza, and i've been told to bring you doughnuts. last time i was here -- >> six or seven. >> six, seven p -- >> if i go glazed, which are the -- they're okay for you. >> yeah. >> we're here to actually celebrate national coffee day, which is on friday >> what are you doing with that? >> well, this time if you buy a medium or large coffee, you get a free extra medium. you can bring your friends with you. it's a great opportunity for all our guests to bring in new people to dunkin'. it's a great way for people to try our coffee
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we're excited. >> today is celebrating joy. we've given $1.5 million through our foundation >> recognizing the devastation throughout america we are donating those 14 million -- 14 tons of coffee, which is actually one million cups of coffee
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>> i'm glad you're doing that on the coffee day thing these are always these made up day. who made up national coffee day? was that you >> what about the donut day? >> that goes right back to 1932 as the salvation army, but we've actually researched coffee day we can't find who started it it certainly wasn't us >> starbucks no >> starbucks i don't think was around >> what's the calculus when somebody go in on friday and you have an extra cup and bring a friend, how many extra other things do you sell >> that's a great question we call that attachment, and when we first started tracking this data, the theme we learned that the attachment with just about every product that goes out is a donut even if you buy a donut, another one goes with it the idea is to get more and more people drinking our coffee, our iced beverages, our frozen beverages, says and then attach sandwiches and doughnuts
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>> has the demo on your customer changed at all in the past year or two >> so our demo seems to be getting broader. we have an incredibly broad demo -- >> broad is one word fat is probably the other word >> people as old as me is what i mean by broader. >> i thought he meant broader. >> i'm talking about age, and it goes right down to young people like melissa >> also, the economics of the demo >> well, the economics -- the economics of the demo is right across the board >> okay. >> and that's why we're excited about some of these proposed tax changes you've been talking about. >> what do you think -- these tax changes would change your business how >> well -- >> what would you do >> firstly, we've been talking to the last two administrations, the current one and the previous about the pass-through tax, which is for small businesses. we think that's important to bring the rate down. first, the appreciation of the
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capital expenditure. that seems based on what i read and we're going to hear later today. that's going to stay that's very important for small businesses it's small businesses like our franchisee that stimulates the jobs that the economy needs. i actually think that and a tax cut for middle class america is going to be great for boosting the economy. we're excited about it we're in washington again next week we'll be lobbying to make sure that's there i'm enthusiastic about what's happening. >> can i ask you about competition in the breakfast space or even in the all day space. you see competitors going full force because it is such a high narjin business. can you speak to the promotional activity getting people to dunken as opposed to mcdonald's or starbucks or any other competitor out there >> well, clearly it is important to have what we call value
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>> on the go, people want ultimate convenience these days. that's a major part of our blueprint going forward. >> you know. >> have you tried ordering -- >> i walk in, and they know because i'm there every saturday every saturday >> there's never a line. there's lines at bagel stores. there's lines at -- >> what is going on with delivery >> i'm pleased you mentioned that i've recently came back from europe twice
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i think delivery is the next big thing for our category clearly the model has not yet worked out >> that proves the model is not yet working. someone will work it out we're working with door dash and some of the other people i think amazon, uber eats. this is going to be the next front ear for oier for our induy >> here comes -- >> right back. stay tuned my name is jeff sheldon,
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you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to >> shares rising in premarket trading. on the top and bottom lines also gave an upbeat forecast helped by a jump in memory chip prices. we're also watching shares of nike -- it was the guidance, though, for the current quarter that disappointed investors. let's bring in aaron murphy, senior research analyst at piper jaffr jaffray. that was also a disappointment do they look like they're turning that around? >> from our perspective, we
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still don't see a light at the end of the tunnel yet. we think the north american landscape is still very promotional. the athletic market has slowed here, and nike is seeding shares that concerns us as we sit here. >> nike's direct to consumer business has grown to, what, 28% of revenues as of the last fiscal year. is it a good thing or a bad thing for nike to distribute through so many other channels like, for instance, kol's and amazon where they might not have as much control over the pricing and, therefore, contribute to a promotional environment? >> so we think that channel, the multily points of distribution they have 24,000 points of distribution we think that does sh ripg over time it's a good thing they're getting that better margin after their own direct to consumer business in the near term that's going to cause a lot of disruption. that's where we're seeing the door closures. that's where we're seeing stepped up competition that's where we're really to your point not seeing them able to control price like they used to price is still going to be an
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issue, we think, in the near term for this entire category. we much prefer adidas. we think that's truly gaining momentum, not just with millennia millennials, about but truly across the globe that's the pick we would have today. >> we saw -- we're not sure if that was related to the ncaa scandal and its prominence in that do you think there's any knock-on effect, any sort of restrictions, whether self-imposed or imposed by the ncaa in terms of outfitting teams? >> i think adi is growing that e-combusiness. they're investing behind very
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influential spokes people like a kanye west they're taking a very different approach to building an athletic brand. we would be buying on that dip >> all right erin murphy, thank you so much >> thanks for having me. >> okay. coming up when we return, taxes front and center in washington today. congressman john yarmuth will join us after the break. then we'll hear from senator tim suott of south carolina on the ise. another big hour of "squawk box" straight ahead
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>> the gop will unveil the big six plan today everything you can expect straight ahead >> sford hitches a right with start-up lyft. "squawk box" begins right now. live from the most powerful city in the world, new york. this is "squawk box." >> good morning.
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welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe -- that's, like -- is that four? third. >> there's a whole plate over there. >> i know. >> i'm joe kernan along with andrew ross -- >> it's the best kind. >> andrew ross sorkin and melissa lee. >> it's the celery of donuts >> you're right. you actually eat those, and you burn more calories than -- >> you lose weight eating the glazed >> becky quick is off today. >> love it >> futures have been up about 50 on the dow for most of the morning. let's see. let's check now. 49 -- 49 i overstated it. >> we're wondering, will they or won't they, and now they're back to 2.289 the dollar, which looked like the euro was headed above 120.
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the dollar has strengthened a little bit recently, and now 117 against the euro -- where. >> one donut point to make before we get to the headlines i know you think this is an argument about sugar >> i think it's hypocrisy. >> i know you think it's hypocrisy because you think people should be able to have the sugar. >> anything in moderation. >> i'm proving the point, though that i have no self-control, and most people don't either, and that's the problem you have to have the big brother to keep me from these doughnuts. >> you are admitting you are a nanny state proponent. you are a collectivist you're someone that wants the government deciding for you. >> mike bloomberg salts his
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water. he loves salt, but nobody else can have any do what i say and not what i do. you want a nanny state you want michelle obama lunches of kale and just -- >> quinoa. >> yuck. >> i'm the guy if they bring the thing of bread, if i have -- i often say to them just take it away if it's there, like the donuts, i'm going to eat them. >> it is in response to a complaint that bombbarrdier receives subsidies from the canadian government. they call the ruling absurd. ford plans to test self-driving cars with lyft the companies will work together to design software to allow ford vehicle to communicate with
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lyft's smartphone app. i wonder if lyft is getting a lift from the uber problems? are they okay in london? >> i think so. >> that's weird. isn't it the news comes one week before a new ford ceo jim hackett unveils his strategy for -- one interesting twist, lyft is partially owned by ford rival gm >> the proposed change fueling a ton of responses including from -- he tweeted last night instead of doubling character limit, twitter should do what most companies do when they're out of ideas buy something. it twitter, of course, is under intense pressure to improve financials as it added no new users in he its most recent quarter. >> we're calling it tax day
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today. you're not getting taxed perhaps tax reform or tax cuts are go something on the way. the gop expects to roll out the tax plan today we are joined for more good morning >> good morning, andrew. i've been able to confirm most of the major pieces of this plan so far -- we're looking at a 20% corporate rate and a 25% rate for pass-through businesses. on the individual side, they're taking down the current seven rates to just three rates. 12, 25, and 35 this is a new twist. a source tells me that lawmakers would get the green light to add an even higher fourth rate to make sure the weltsy don't get the big benefits of this plan. two senior administration officials say president trump is fully behind this proposal, even though he hasn't always been on the same page as republican leadership in the past sources inside say when it comes to tax reform, the president is deeply engaged in this issue
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trump will be in indiana this afternoon, and the argument he will make there is that cutting taxes for businesses will help keep and create jobs in america, raise wages for workers as well. >> even though today is a critical first step on this road to tax reform, the hard work is only just beginning. back to you. >> thanks. for more on tax reform, want to bring in budget committee ranking member john yarmuth. what do you think we're going to hear from the president today? is there any chance that he actually goes back to 15% on the corporate rate >> i think he may try to do it, but i don't think that's going
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to be acceptable to most people in congress. i think there's a lot of evidence out there that when you lower corporate tax rates or when corporations pay a lot lower rate than the 35%, they really don't hire anymore people and they don't raise wages he has a hard case to make on that side of the argument about corporate rates. you can make a fairly valid argument that the corporate rate is not competitive with international rates. i think the average is somewhere around 27%, 26%. that would warrant some kind of a tax cut for corporations i don't think anywhere close to 15 % >> is there anyone in your party that you think would be willing to go along with the gop on this >> i think there are a lot of democrats who are probably willing to lower the corporate rate as a matter of fact, barack obama wasle to lower it to 28% he advocated that. i think there would be some support.
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again, they're all very complicated. if you talk about a pass-through rate of 25% and then say you're not lowering taxes on the wealthy, that's just the total sham everybody who can will restructure their businesses and their law firms, whatever, to pay the much lower rate of 25% >> are you willing to accept any kind of dynamic scoring in terms of how, whatever this tax plan is ultimately judged and whether it could potentially be budget neutral at some point? >> well, you know, we certainly would look at dynamic scoring, but you have goldman sachs saying that the tax cuts that are proposed in this outline would only raise growth by .1% or .2% far from actually paying for the tax cuts we challenge that in the budget committee when they talk about these enormous tax cuts $3 trillion to $7 trillion. they said they were going to pay for themselves
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they haven't >> we're going to have to have some kind of budget -- which they tried to do with health care to pass something with 51 votes. i wish they wouldn't do that that kind of -- that says to us we don't want your corporation, democrats. we don't want your participation. we're going to do it on our own. we would much rather have a regular order in the senate as well and the house that's probably what they'll do next i suspect you're going to get that sometime next week or the following week, and then the hard work begins
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the negotiations on taxes are going to be incredibly difficult. you are talking about things like -- they're talking about doubling the standard deduction, which by itself is an okay idea to put lower taxes for middle america and it would certainly make tax returns simpler then you get all the realtors and the nonprofit groups who say if you double the standard deduction, then the charitable deduction and the interest-- mortgage interest deduction don't matter anymore you lose the impact of that. >> i could see us six months from now or two months from now walking out with our hands together on this >> i think it's possible if whatever comes out of here is revenue neutral based on sound analysis, that it doesn't lower rates for the wealthiest
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americans, there's a report coming out this morning that the disparity in income has gotten far worse in the country not better the top 1% are in 24% of the income as opposed to 17% just about 25 years ago. >> you can't use any gimmicks. that's what budget recollect ob sill yags would be one of. >> thank you for joining us this morning. >> thanks for having me. >> talk to you soon. >> now to the results. roy moore ousting incumbent senator luther strange in the run-off. it hands a defeat to president trump. he had endorsed strange. moore is an evangelical christian who won the election with a call to put being religion at the it center of public life. >> spoke to roy moore of alabama for the first time sounds like a really great guy who ran a fantastic race he will help to _#maga.
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>> op ed on the very topic he will join us at 8:48 eaerstn time stay tuned you're watching "squawk box" on cnbc for your heart...
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>> after a multi-year stretch of excessive promotions nike posting a nearly 24% drop, meanwhile, and quarterly profit from the same quarter last year, despite strong sales in china, still above forecast, but the dow component, the outlook for the company was disappointing. expecting north american sales
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to continue to climb check out the sorkin donut calculator people at home, seriously, are, like, this is such a bad example for kids, for adults >> for anybody >> why don't you give that donut to san totolli or we'll throw i away >> leave that over there i want him to eat that >> you must have talked about the marshmallow test we know about this, right? >> what happened oh, that's interesting i think i could hold out when there is a payback, is it a
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stomach payback? what is the main payback it sits in your stomach, and there's a lot of sugar, right? >> a lot of sugar. >> when do you really pay the piper. what -- can you describe what goes on? >> i'll go running later >> is this a morning show. >> it's not like eating six taco bell that's not really pay back that's feeling full. >> you feel full >> there's no reliable way to say why a market top might be in the offing, but maybe how the markets work -- general characteristics about what to watch for. there's at least four categories we're not talking about a typical 5% dip or anything like that something much more damaging
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that lasts a little longer is what we're trying to handicap here the leadership groups of the markets start to lag over a fairly long period of time that would be the industrials. the transports would be key ones financials if they more months on end were lagging the broader indexes while those were continuing it make new highs, it's a yellow warning. >> that itself isn't enough. you actually don't have extreme calm before a major storm. volatility tends to pick up and stay elevated in the final months markets get jumpy before they finally top. finally, investor sentiment. this is a trickier one
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very hard to capture exactly what the mood is right now typically investors will start to get a little more reckless, willing to take on more risk, and here's a key when you get a little 2% or 3% dip, if bearish sentiment doesn't -- during this bull market, that might be another thing to watch for, guys all those things together, who know if the historical patterns are going to hold true this cycle. that's what typically has gone on >> the previous santolli top at 23.16, let's talk about that one. don't chase the market >> where the lead of my column is don't chase the market but don't get out. >> i keep trying to give you an out. it wasn't you that came up with that >> it would probably obscure the idea that it's hard to figure
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out what the market is going to do if i took the out >> pricks are hard especially about the future. >> seven months after that, you're better off in the long bond >> it's up 8%. >> right >> seven months later in early september you were better off in the tlt than the sby that's not me taking credit. >> coming up, velcro, did you start the last one yet do we need to bring up >> no, i'm not >> are you feeling it now? you look like something is changing, like you're feeling the impact >> no, i'm not feeling the anything >> it looks a little -- >> i'm enjoying myself i'm enjoying life. >> i'm worried >> i'm enjoying life >> i'm worried now you have no self-control i'm worried about you're liable to do anything on this set >> what do you mean? zbloog he is enjoying himself. velcro is reclaiming its brand name you have no self-control whatsoever with donuts you had seven that one day
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cell crow with the power ballad. a viral video. we're showing it to you a little bit right now after the break. "squawk box" will be right back. ? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.
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looking to launch j-coin in an effort to wean customers off cash according to the financial times, in time for the tokyo olympics in 2020 there hasn't been any approval from regulators yet. >> the velcro company taking a stand on a sticky situation. releasing this music video asking people to stop using the word velcro when referring to velcroish technology because it infringes on the company's trademark. >> velcro's legal team would like people instead to use the much less catchy term hook and loop hook and loop, referring to the fascinating technology not made by the company. i guess if you look real closely, that's what velcro looks like >> little loops. >> little loops. >> little -- >> an idea >> all right >> i'm okay with that. i don't -- do you -- i don't think i said -- have you ever
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used the word velcro-ish have you ever described something leak velcro-ish? >> i don't think they can sue me >> the news about to hit the tape we'll bring you those numbers, and later the national retail federation kicking off itsen awal conference. we'll talk to the ceo about retail a's changing landscape. ask him if he wants a donut. "squawk box" returns in just a moment newthink again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at
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good morning welcome back to "squawk box" live from the nasdaq market site in times square. >> what are you looking at >> it's just -- >> a donut >> just looking to see >> a lonely donut. >> it's a lonely donut lonely among the stories front and center today, 2017 is seeing a comeback for active fund managers they've been telling us that, haven't they >> that's -- >> they love to tell us that
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this is a market where -- according to new data from lipper, about 52% of those managers are beating their benchmarks this year that's 52% 52 -- 48 aren't. that is the best performance in eight years. they're usually not even 50-50 the outperformance has been driven by large cap growth funds holding popular tech stocks. trying to keep regulators from imposing new restrictions on its -- would you say herbicide or herbicide i think it is herbicide, isn't it it. >> it plans to present data and
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defense, but according to a reuters report, many have declined the invite because of mond monsanto's response. zbloor the numbers please. the survey says 1.7 on headlining do remember this is a preliminary read more puzzle pieces could, of course, make this an even more volatile number when we look at the finer read that's a good number, and it follows -6.8 let's go through the internals take out trgs. it drops 1.2 from 1.7 to .2, sounds like a big drop the .2 as expected if we look at durable goods
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orders, nondefense, x aircraft, proxy for business spending, finally that number is getting a little bit bigger. it's up .9 we're expecting up .9. it's three times where we're expecting. we gained .1 last look, we were at 1% now we're 1.1. if you look at shipments versus orders, that's up .7 that follows a slightly revised down .1 from 1.2 to 1.1 last look on those last two, those are very important they're doing okay we've had much worse stretches headline numbers not bad interest rates, we're getting towards that 230, 230 to 260 was a well -- 227 is where we settled 2015 it's going to be felt, and it may exaggerate other things that we think are moving this, and it's going to put a whole lot of
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pressure on people like mahero draghi and karoto in p gentlemanan. we want to continue to monitor we have spending home sales, and another auction. they've been pretty good too we haven't had really great auctions i think investors see the handwriting on the wall. we're not debating direction i think investors are thinking, whe where. >> you did a great job of talking to kevin >> no i in team, steve >> i know. i'm still learning that. it was cnbc. it was a cnbc interview. the world has got a little more stability from the way that i look at it, joe. there's a good guy out there at
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kevin, and he said point-blank, my job is to give objective pnlz to the president regardless and not to go out and tow the partisan line. there's going to be a guy who is going to run models for all their faults and say here's at least what the model you do what you are going to do, mr. president. you do what you need to do for political reasons or what your gut feels, which, by the way, is a lot of ways that a lot of presidents have done economics here's what the models say, and we can debate that, and he is a pro dynamic scoring guy. >> he with talk a lot about the volt tilt, and a lot of times it's negative, positive. we put together two -- a couple positives in a row when it comes to the business investment side. what i have done is i got a chart here that takes a longer look looking at the first half
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versus the second half >> you might assume people would pull back. on the other hand, it seems like there's been something of an it's okay to kind of dip your toe in the water and do some business investment out there. this is a key part of the economy. we've seen the fed completely change its language on business investment >> terms of the future, productivity, all that good stuff, business investment is a dehere we're watching that closely. it's a good number today both on the shipments and the order side >> i talked to you before about m&a as an indicator of
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confidence investment ultimately is the ultimate indicator of confidence you don't think there is -- you don't think there's still some kind of waiting and seeing thing going on with the tax plan >> there could be. i have to say what an investment banker told me when i was trying to make a macroeconomic point about m&a. don't do that. the m&a numbers are completely reliant on the number of companies that investment bankers can convince to merge. >> is it going to be retroactive? who did you ask? toomey this morning? >> toomey. >> that's fornt too. the idea that we had some pick-up, some from the obama administration, some part of the trump administration, it's not clear that it's all the current president. the idea we've had some pick-up is a good sign, and that's going to help, i think, in the future that you get this balance back
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>> i have asked a lot of these guys wouldn't you like a -- they always promote that. it should be across the board. you shouldn't try to select, and they all drew brees none of them say yes. they all sort of tow the line that that's not going to be possible >> we're living in a world that i think everyone acknowledges that inequality which is one side of the coin that rurnds to the wealth y --
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>> i'm going to finish this off. if you live in a world with returns to thewealthy -- where are the returns to tax cuts for the wealthy? why is it that you would argue that in this world today a lower tax rate on the wealthy would give more incentive to do more when they already have incredibly high incentive, incredibly high -- >> steve, you tried redistribution, and you got 2% none of it trickled -- you don't -- trickle down is all you have growing the pie -- >> it didn't work. >> it did work, though >> when? >> 4% growth you want to see the gdp growth again? >> not a deficit it also worked when you hacked -- you absolutely hacked high rates down and low rates, and you kraed incentive. >> my point is this. >> let's give it a try >> you had eight years you got no income growth, and you got 2% growth.
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>> if you had a donut -- >> i had a done utd. >> liesman -- >> government's percentage of total spending is not higher >> there is my lonely donut. >> i will say that sugar high is coming off a little bit. >> i can see it. >> donut sugar right there >> you had it. >> let's talk retail retail is part of the donut economy. >> national retail federation kicking off its annual conference this week joining us now matthew shay, president and ceo of the national retail federation matthew, great to have you with us sorry we can't get you a donut >> you are making me hungry. it's early out here. >> i know. matthew, we want to talk about tax reform since we are getting a blueprint for some tax cuts.
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will that help ease some of the pressure that retailers face right now? >> we think so absolutely we've been big supporters of tax reform you know, just back to the conversation that joe was having a minute ago with steve, there's a bit of conversation in this country for decades, generations, especially the last two terms of the previous administration, between growth and redistribution of income we are strong proponent of pro-growth policies. we think reducing the corporate rate, addressing the rate for pass-through entities, there are millions and millions of small business businesses, structured we think it would be great for the economy. we think the economy will grow again. it's the where the consumers are spending, not consumer spending. >> i think a couple of things
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there. when we were having the conversation over the past few months earlier this year about the board iradjustment tax, we measured the potential impact on consumers of that tax. >> i know you had representative danforth on earlier, who was talking about the rates, 27% i think it's actually lower than that clearly we're not very competitive. then in terms of the way consumers and households spend that money, that mix is always changing retail is going to grow 3.5%, 3. of% this year. retailers are going to get their share.
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if we put more money in the pockets of consumers, we will see robust growth. >> that stock is feeling some pressure in the premarket. what has been clear from nike results is that it's going more the direct to consumer route and cutting out some of the distribution channels. expanding some, like a kohl's and amazon, but maybe less dependent on a finish line and footlocker is the concern that this is going to happen to other -- i mean, we've sort of seen this happening with the department stores in terms of brands selling direct to consumer is that the real concern here amongst your retailers >> i think retailers are trying to connect with consumers. we're going to have a chance to ask that question of heidi o'neil, president of nike consumer direct in a conversation with kobe bryant this afternoon at our program down at the convention center we're going to ask heidi directly what she thinks about that i think listening to these economic tifds from disney and from zappos and bonavos,
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everyone is talking about reaching consumers in new ways go back to mark's comments, on-line is a means to an end, it's a way to become better merchants. people are exploring partnerships the kohl's and amazon participateship. there are a lot of interesting things happening in the marketplace today, and i think this is the face of the new world of retail, and people have to be very creative and you're finding strange sort of partnerships that you wouldn't have predicted a few years ago >> coming up, republicans scrapping a vote on health care reform at least for now the gop will unveil a tax plan today. we're going to talk toou rona senator tim scott he is next
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♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone
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>> republicans in the bandit plan -- after they failed to secure enough support to pass it president trump tweeting about health care this morning with one yes vote in hospital and very positive signs from alaska and two others, mccain is out, we have the health care vote, but not for friday he also tweeted, we will have the votes for health care, but
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not for the reconciliation deadline of friday after which we need 60 get rid of the filibuster rule joining us now from d.c., south carolina senator tim scott who sits on the senate finance committee. senator, thanks for joining us good to have you on. given what happened with health care, what was this the third time or whatever and given what it highlights about the process itself does this indicate it's going to be harder to do tax reform, or is it going to be easier because you have to get something done what do you really think
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zbloor helping the hard-working people keep their money is going to -- the debacle of health care has taught us many lessons about how to proceed we're starting this on a different page, which is good. we've had conversations with the white house, the house, and the senate working together to form a document that did not happen in health care we are already starting off at a better place >> a lot of sacred cows. you try something. >> that's just say, for example, there's a kentucky senator i don't know
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who is very fiscally conservative combine that with, i don't know, let's say someone from maine just as another shot in the dark how do you knowthat it's not going to be like this again on some issue in the tax reform process because they're like miles apart from how they feel about things >> the good news on this issue is we all want to see the average american take home more money, which means from a federal perspective the best way to could that is tax reform. that means from a federal perspective, we want to make sure we have the environment that's conducive for them. whether you are the conservative kentucky or the more moderate maine, the reality of it is that the team play starts with open dialogue that's already started a couple months ago we're in a better place because we understand and appreciate the nuances within our conference that will allow us to have more momentum going into this conversation than we had in the previous conversation.
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bringing the team together, i think the challenges will be around how much do we believe in the dynamic nature of our economy, and how much will it grow through the dynamic effects? that may be one of the questions that we'll have to wrestle with. the fact is we all want to see taxes come down for the hard-working person, and at the same time grow the economy long-term so that we are competitive in a global competition. >> senator, you don't have that much time left we would love to have you back again. especially if you are ever back here on the set. after charlottesville, you know, you had some concerns, and you spoke to the president, and you said you were gratified because you thought he listened very closely. take a knee, and quite a few people on the other side of the aisle saying this is just a dog whistle for more racism and -- how do you see the latest thing with, you know, the envelope do you think they ought to be standing for the national
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anthem >> i think every man, woman, child in this country should stand for the national anthem. that should go without question. we should also ask ourselves the question why are they kneeling if we were able to "a," reinforce the fact that we should all stand and delve into the challenges that has some players kneeling, we'll be in a better place as a country. we should all seek for unity and equality in this nation. i think the dallas cowboys did a really good job of finding a way to be clear in their support of the challenges and, frankly, the support of the players as a whole. and stand for the national anthem because at the end of the day, not only because i'm a cowboys fan, that is one classic way of showing your support for the flag and reinforcing the important fact that there are some challenges that still remain in our country. >> right it is -- i think it's exploited by some horrific, i don't know,
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i don't know some of these individuals. but you watch what's happening in congress sometimes and i don't know it's happened. we need now a way to unify and draes t address the concerns that were under lying this and been there under the surface and wasn't just when trump decided to call him out on friday. obviously, these issues are long standing and things that need to be talked about. we have to find a way to go forward and work together and unify everyone this isn't what we need, right >> absolutely. no doubt we can inflame the situation without any question we've seen that happen but the reality of it is that this is the country where it is now unamerican to be racist. that is a form of progress and a clear picture of evolution that has occurred over the last 50 or 60 years many good people were quiet and silent in the '60s we're seeing those folks today
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and many parts of our country standing up and saying, let's figure this out together but let's always, always support the american flag and the american people and challenge those within our country who seem to have some prejudice towards some of the folks who are americans. that is an equal librium that needs to be and working together to solve some of these issues. we can do that again >> all right, senator tim scott, thank you. thanks for coming on this morning. we appreciate your time. and good luck on the tax stuff >> thank you looking forward to it. >> wish we could have some unity there, too we all want the same thing, fats that's faster growth thanks, senator. tomorrow on "squawk box" a very big interview you don't want to miss, house speaker paul ryan will be here to talk all things tax reform o. up next check in wh ittim cramer
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at the new york stock exchange i'll have the langoustine lobster ravioli. for you, sir? the original call was for langoustine ravioli. a langoustine is a tiny kind of lobster. a slight shellfish allergy rules that out, plus my wife ordered the langoustine. i will have chicken tenders and tater tots. if you're a ref, you way over-explain things. it's what you do. if you want to save fifteen percent or more on car insurance you switch to geico. sir, we don't have tater tots. it's what you do. i will have nachos!
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get down to the new york stock exchange and jim cramer joins us now bounce in some of these leading
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tech stocks or more work to do in pulling back? >> i think micron helps the group but a market driven by higher oil prices and higher interest rates if we have a market that is led by jp morgan and bank of america that is a market better than led by apple and invidia we need to see the broader market come alive and stop focusing and if we did that and looked into jpmorgan or looked into a chevron, i think we'd like what we see >> all right, jim, i hear the music, but we'll see you in stju a couple minutes all right, we'll be right back
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ameriprise a final check on the markets. i know it's not me, but everybody wants me to eat this d doughnut and it's a peer pressure situation >> what part of the show did it peak, because you were on a high -- >> i was rolling. >> but you crashed you've been yawning and you've been yawning so, what part of the show were you peaking on that tax debate >> it was like five minutes after the last doughnut he peaked >> i have to tell you. >> that's five still better than last time when
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you had six. >> there is self-control there improvement. >> we can't do the dunkin' thing on a quarterly -- >> by the way -- >> happy birthday to henry and max sorkin >> on tv again today >> make sure you join us again tomorrow, "squawk on the street" begins right now david faber at new york eexchange. details on tax reform as the president speaks in indiana and earnings from nike and micron and ongoing crisis in poruerto rico followin


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