Skip to main content

tv   Squawk Box  CNBC  October 30, 2017 6:00am-9:00am EDT

6:00 am
>> live from new york where business never sleeps, this is "squawk box. >> good morning, everybody welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i thought the music was for the markets but apparently for the new beverage joe was just talking about. i'm becky quick with joer c ker and andrew ross sorkin the pictures were great. >> oh on the dunes >> there it is >> that was pretty cool, and they're filming it, too. now they have film showing you how they took the shot some true behind the scenes magic right there. so it was a great trip it was fascinating to see not just that, i mean, being there was remarkable but independently seeing the transformation of what appears, it felt like there was a transformation happening >> the 2030 plan
6:01 am
>> but really and meeting. >> opening up society. >> what we were talking about just now, we met all sorts of women who were saying i've owned a car for a decade but i have a driver who takes me to and from work and i can't wait to learn how to drive lot are starting to learn how to drive but in terms of how the culture is moving. >> saying publicly they are looking to are a more moderate society essentially. >> by the way -- >> more moderate form of islam >> this is not without controversy though >> i'm sure. >> there is a huge other side. he's pushing through, trying to push through this transformation and there's economic, by the way the entire driving industry, you talk about drivers, because all the women -- most professional women have drivers every day what happens to the drivers? but there's a whole thing going on with all of it but that whole $500 billion economic zone they're going to create, the whole new city in the middle of
6:02 am
the desert >> with klaus. >> with klaus it's amazing we should all go there in ten years from now, when and if it's done >> so we have had a lot of photo shoots >> yes >> and we never get totally i don't think comfortable. were you comfortable, like out on the desert leaning back in that outfit with your leg up and everything was that a comfortable moment for you right there? ♪ i'm uncomfortable watching it. i'm uncomfortable watching it happening. because i've never been comfortable when we're mugging and i can never get a -- >> i felt -- >> you felt good, andrew of ara aarabia? >> i was so jet lagged >> could you do the "si" edition if they ask you to do a male he itition? i could not do the -- >> got to go to the gym but yeah >> maybe go to the surgeon >>. ♪ so sexy for my love
6:03 am
>> i will say -- >> anthony chan is -- >> the lighting on this side, the sun is coming the wrong way. the picture looked good. >> just turn your chin a little bit. was he saying okay, feel it, andrew were they talking to you then? >> no, they didn't >> that's the best one >> no there's a better one than that >> is there really that's good. let's check out the u.s. equity futures in the meantime we've been a little bit mixed coming after the dow and the s&p 500 or sorry the s&p 500 and the nasdaq are coming off of record high closes on friday. the dow and the s&p 500 are up nine out of the last 11 sexes. this morning the dow futures are indicated down by about 37 points the s&p futures down by about 4.5 points but the the nasdaq is indicated up by just over 4 points over night in asia, take a look the nikkei was up but just
6:04 am
barely three points higher, 22,011. hang seng down shanghai composite was down. in europe this morning with some of the early trading and talk we heard about spain and the concern there, spanish stocks still up by 1.4%, even with everything that's been happening in catalan we'll talk about that in a little bit the footsy is down by .1%. italy, stocks are higher up by .4% finally check out crude oil prices up by almost 2.5 dollars last week. 53.90. trading just below that this morning down by 7 cents to 53.83. we have a couple big stories this morning in deal news, dutch paint maker confirming it is in talks now with u.s. rival coding systems considering a merger to create a $30 billion company. you may remember earlier this
6:05 am
year that they faced lawsuits over its decision to reject a multibillion dollar takeover offer from u.s. rival ppg industries other news, novartis, valued at $3.9 billion and novartis says it will strengthen it oncology business. strayer education and compel la education they just announced moments ago a stock for stock merger agreement valued at nearly $2 billion. so a lot going on there and little bit of earning news for you as well. europe's biggest bank is reporting five-fold increase in pretax profits q3, $2.4 billion hsbc seeing that asia was the key growth driver accounting for 87% of its pretax profits. they completed nearly three quarters of a $2 billion share
6:06 am
buy back program it launched back in july. nintendo raising its four year operating product due to strong demand for the switch gaming console they expect to sell 14 million up from a previous forecast of 10 million. another takeover deal that's just out this morning, home builder lenar is building rival dealer calatlantic the transaction will create the world's largest home builder up by 9% this morning on the news that's just out. also, puerto rico is moving to cancel a $300 million contract with whitefish energy the montana company was hired to restore power to the island that was ravaged by hurricane maria the arrangement came under fire after reports that the deal was made without a competitive bidding process. three quarters of puerto rico's
6:07 am
homes and businesses still don't have power from the storm which hit about six weeks ago. they weren't expected to get it back until december and some reports that this could set that process back by several weeks. >> it wasn't just that, all sorts of provisions in the deal. i don't know if you saw the contract, where there was almost like no accountability across the board. you couldn't get sued. it was very weird. it was a very strange contract. >> they have two employees. >> they had two employees a week before this deal he's come out and said that he had absolutely nothing to do with it. >> that's just very -- >> he came out with a statement that said this is the onlyplac being from a small town would be a capital offense. it's weird a very strange bidding process the governor said they want to be out of it just to rid themselves of all the speculations surrounding it. >> are you -- andrew to the poe laz owe stuff? the cover of the post is there, i don't know -- >> i saw the cover of the post
6:08 am
>> quid pro quo thing that, i don't know, i haven't been following it that closely. >> the guy who claimed he bought them for like $150,000. >> lot of stuff in there not just with de blasio with the police and all this crazy stuff going on, plane rides and hookers. >> that part i missed. >> i didn't read the hooker part. >> not with de blasio, this guy who is arranging all this stuff. >> i'll take a look. >> will you see if there's anything to this, please. >> i'll do a little de blasio research. >> he's done he's in. >> yes, probably >> yeah. >> huh >> got a lot of ads that i've seen on tv and it's like new york is doing great from what i can tell, crime and everything, right? >> crime statistics are down pretty sharply. >> it is pretty good. let's tell you about another story this morning too heathrow airport is launching an investigation after a u.s.b. memory stick containing security information was allegedly found on a london street that usb stick apparently had
6:09 am
details on it, things like the route that is used by the queen and visiting dignitaries when they travel from heathrow airports and mapping pinpointing security cameras and a network of tunnels the man who found the usb stick turned it into the sunday mirror. political news, investigators looking into russia interference with the 2016 presidential election are expected to announce at least one indictment today it's been the conversation over the air waves and all of d.c. over the weekend aim injavers. >> a federal grand jury here in washington, d.c. has approved the first charges in the special council's investigation into russian interference in the 2016 presidential election. the indictment we are expecting will be made public today. it's not clear who is getting indicted, how many indictments we're talking about or what the underlying alleged crimes might have been, but that report coming out on friday fueled the
6:10 am
weekend, as you're talking about, speculation as to exactly what's going on here the president very frustrated over the weekend, tweeting out a number of things, including this -- all of this russia talk right when republicans are making their big push for historic tax cuts and reform is this coincidental not. the president had a number of seemingly angry and frustrated tweets over the weekend, but his attorney put out a statement yesterday saying that this had nothing to do with the special council investigation. contrary to what many have suggested, the president's comments today are unrelated to the activities of special counsel with whom he continues to cooperate so, who could possibly be in the hot seat right now it is not clear. speculation has centered on mike flynn, the former national security adviser and also paul manafort the president's former campaign chief as possible targets of the investigation here whether they would be the officials indicted today
6:11 am
unclear. it could also be some very minor or peripheral people involved in the story that special counsel's office would be going after today. we have to wait and see. could happen later on in the afternoon, not necessarily going to be a dramatic early morning arrest here. you could have a situation where the people just simply report to court after their defense attorneys have been notified of the indictment, guys. >> eamon, it has been reported that manafort was told he would be indicted at some point, right. >> yeah. it's been reported that he expected to be indicted at some point. >> is it a mueller monday? manafort monday or general mike monday, we don't know at this point, right >> we just don't know. just don't know. could be anybody you can imagine the media will be on high alert at all the courthouses that are relevant here and if we see somebody going into court somebody prominent or it could be a minor official,
6:12 am
a family member, a lower level figure there have been a lot of reporting -- there's been a lot of reporting about the foreign agent's registration act which requires lobbyists here in washington to register if they're representing foreign governments and there's some indication that maybe investigators have looked into the idea that lobbyists haven't been properly filing those disclosures and secretly working for foreign governments. that could be an issue here as well. >> eamon, i saw a lot of conjecture about transactions with manafort in terms of things that may or may not be evidence of laundering of money going back that was all over the place all over the weekend >> yeah. >> so i don't know whether that -- and then i also say in previous situations like this they -- might be low level because they start out low level and they squeeze these guys to try to move up the chain or something. >> yeah. i mean, old fashion fbi technique is you get somebody
6:13 am
lower level in the organization, whether it's the mafia or criminal enterprise or white collar fraud, you put the pressure on that person and you say, we can give you a slightly better deal here if you give us some information on the guy up the food chain from you. and a lot of times people look at ten years in prison versus one year in prison and they'll say, i'm going to give up th information. >> okay. >> but we don't know what's going on here and we have to wait to see later in the day. >> eamon, real quick, two other things that related to this, the journal calling for the resignation of mr. mueller what's the back story there? >> yeah. well, it's unlikely to happen. you know, mueller is fully engaged here and you saw a number of republicans over the weekend come out and say, in fact, mueller needs the space to do the job even the president is not calling for mueller to resign. the president is saying simply he wants this to be wrapped up as quickly as possible because he wants to get on with the business of the country. the president has called all of this a hoax and a witch hunt, but he's also said he wants
6:14 am
muler to do the job and get it down quick. >> i don't know if you saw the report over the weekend about bannon and trump planning to go after paul singer of elliott management, somebody we talked to historically and ultimately may have funded some of the original russian dossier reporting. >> yeah. that was an interesting one. there was a report over the weekend that paul singer, the hedge fund investor through a subs sid yar of his called the washington free beacon, a conservative news publication here in washington, d.c. had financed fusion gps, the private investigative firm that produced the dossier on donald trump which became so controversial earlier this year. according to the reporting, and i can't verify any of this myself, but according to what came out over the weekend, singer's outfit paid for some research into donald trump through the private
6:15 am
investigative firm and that firm later took on a democratic candidate, the democratic national committee and hillary clinton who paid for additional research and that ended up becoming the dossier so there's questions about whether or not singer actually financed the dossier itself or just some earlier unrelated research that became powerful here in terms of politics of it -- >> but then he paid for some of the inaugural -- they. >> singer flipped. singer flipped he was a never trumper he did not want trump. he wanted marco rubio. >> right. >> and he financed some investigation into trump's background in order to presumably politically damage donald trump and then when trump was elected singer donated, i believe it was $1 million to the inaugural committee and then has been touted by the president publicly as having visited the white house at least once that i'm aware of so that's -- you know, political flip-flop on the part of singer who was investigating the guy and donating to his inauguration and participating in the
6:16 am
administration. >> all right, thank you. you know what's starting trending on twitter, hot desert glamour shots, andrew. >> nice. >> when do calendars come out in 2008 they don't -- it's too late in january, right so what is it, october >> they're in production now because they need to get those out by the holiday season. >> how many different shots -- >> for christmas. >> do you have 12 different shots? >> we have a lot of different shots. sunglasses on. sunglasses off. >> can i ask the most important questions for viewers, are there any other things you're wearing on -- wardrobe changes >> no. it depends on how much you think i hike my jeans up. >> people on twitter -- they do think, really, this is popular any way, let's take a look at the broader markets and the big economic -- don't we try for revenue? ancillary revenue type opportunities at "squawk box." >> go triple
6:17 am
triple play. >> conferences, calendars. joining us now david ballin over here managing director city private bank got a beautiful voice, strong voice. and anthony chan, chief economist for jp morgan chase. it's going to be powell, jay powell you like him you don't like the other guys too tight with their money. >> yeah, well, after i buy andrew's calendar, i think i can make a prediction for this the markets are anticipating no change from yellen's positions that would be the most comfortable place. a worse choice or any other choice -- anything that gives us less clarity on what it is that will happen in the future i think could be damaging for confidence, but not a big deal. >> the dollar would soar if it were -- >> it could. we've already seen the dollar rally 4% off its lows now and in fact, if anything -- you think of what could happen between the taxes and the fed choice, you
6:18 am
could have the dollar rally some more this is a good time for u.s. investors to really diversify offshore given what's going on right now. >> what do you think dollars move versus the euro in the last couple days? >> well, i think realization that mario is not going to be in a rush got nine months of 30 billion euros every single month and tells us that maybe they won't be in a rush i agree with david that it's probably good if we get a fed chair that is not very aggressive identi i've looked at the s&p 500, the fed's rate returns 2% or more, you get 8.2% if it's less than 1% jay powell would be lot less aggressive than other people being mentioned like john taylor. >> see if trump wants his own guy in there trump is not that different than yellen why make the move? that's what presidents do. not always >> no, not always, you're right. paul and alan greenspan, they were all also reappointed previously with other administrations.
6:19 am
>> so why change >> but i think that the president wants to pick their own person jay powell is to some extent somebody that is being favored by steve mnuchin and others in the administration. >> you saw the journal today they got some nice charts of global stock market performance. so it is a synchronized move in a lot of the equity markets and i guess you would say it's synchronized in terms of growth as well. how does the u.s. play into the rest of the world growing faster is it we're all doing it at the same time or part of the reason the rest of the world is growing faster is because we're such a large part of the global economy? >> i think the u.s. is an important part, but we know the u.s. sort of got a head start. europe is coming -- >> has it been tail winds from our economy that's helped globally or it all happened at the same time >> there's no question that you had all central banks keeping interest rates down. in japan they were keeping the
6:20 am
ten-year jgb at 0% and negative rates in europe and of course here in the united states you have very low interest rates certainly over the last two years, joe, you've had close to 2 trillion dollars worth of quantitative easing every single year that has had some sort of an impact on trying to get this globalized sin crow anization of growth and also the imf upgraded their growth numbers not only for this year but for next year. that's encouraging. >> it's the lead story, too, david. investors have been buying assets when ever prices dipped it will continue >> it will continue. this is an earnings-driven story globally now and the ability for the u.s. -- u.s. corporate earnings to continue to grow will be important. but we're seeing a very large differentiation between u.s.-expected growth 6 to 7% next year. what's happening overseas could be 10 to 12% so clients are really well suited to move money offshore,
6:21 am
but the probability that we'll have higher equity markets in 2018 is really strong now based on the data. people told you we would have global growth of this magnitude, everyone would say absolutely not. that's what the data is showing. schizophrenia of what people are feeling in the marketplace and what the actual information is that's powering the market ahead. >> we send cars for you guys today? >> you send cars and calendars. >> do we have the second car following your car >> we can agree occasionally. >> that's the third biggest story. that's deep. >> he's talking the plane. we need to have a second car for you at all times. >> andrew had a second plane unfortunately it was 24 hours later. it was another united flight >> i have to say -- >> your flights follow 24 hours. >> pretty much. when we come back, a big brewer making a big bet on marijuana-infused beverages. we've got the details right after this break guys, thank you. >> thank you ♪ than i've ever been lifted
6:22 am
before ♪ ♪ so keep it up ♪ quench my desire ♪ and i'll be at your side forever more ♪ ♪ you know your love gglobal bonds, >> announcer: monday morning strategy is sponsored by - but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, who knew that phones would start doing everything?
6:23 am
6:24 am
entertaining us, getting us back on track, and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. 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 xfinitymobile.com. ♪ ♪ ain't no mountain high enough ♪ ♪ ain't no valley low enough
6:25 am
♪ ain't no river wide enough to keep me from getting to you, babe ♪ chasing a new kind of buzz, "wall street journal" says the u.s. distributor of corona, corona beer is taking 10% stake in canopy growth, a canadian marijuana company. they are planning to work with the grower to develop and market canabus infused beverages. the company ceo says he expects marijuana to be legalized in the united states in coming years and i mean i guess we need to take the leap that what some day to relax you don't drink a couple of beers, you drink like a pot-infused -- >> drink >> you know, my concern with this still is -- >> well, yeah. >> you can't measure if somebody is under the influence like you can with a breathalyzer. >> a whole new -- you might be able to, but it brings a whole new deal to dwi and driving
6:26 am
under the influence. >> and at a time when we've been cracking down both on smoking and drinking and making sure people aren't driving under the influence, to have this on the rise and be seen as like new, hip thing. >> i knew a kid in high school who tried marijuana. >> but that pot is not the pot that's out there now. >> it's much stronger. >> they weren't sometimes after using it the most motivated people. >> right. >> in the world. i mean, there is sort of a lethargy which isn't there -- >> being behind the wheel and having slow reaction time. >> you have it before you go to school it's like, you know -- >> as a result, you don't apply yourself. >> that's what i'm saying. >> yeah. as a parent, i hate this move towards, oh, let's open things up and make it a much better open -- i was walking down the street walking towards st. patrick's cathedral, i smelled pot on the street. you've got to be kidding
6:27 am
you can't allowed to be smoking. as we're cracking down on all these other things -- >> it's not like caffeine. >> not like caffeine. >> we have a lot more to talk about including the second plane trailing in the meantime, athletic retailers have been under pressure with nike down more than 5% and oh, under armour, down 17% we'll talk to the ceo of brooks running about the health of the athletic business and this weekens w rkity d'neyo c marathon we're back in a moment >> announcer: executive edge is sponsored by - ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network
6:28 am
to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way.
6:29 am
you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital. you myour joints...thing for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish,
6:30 am
prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
6:31 am
♪ >> announcer: welcome back you're watching "squawk box," live from the nasdaq market site in times square. ♪ welcome back, everybody. right now it's time for the squawk planner the fmoc kicks off a two-day policy meeting tomorrow. we'll get a rate decision on wednesday. on wednesday, we also get the data employment followed by weekless jobless claims on thursday and then the october jobs report is here on friday already. on the earnings front. >> every month or something. >> it's crazy. we'll get results this week from under armour, pfizer, tesla, starbucks, facebook, apple and many, many more. and then let's take a look at the u.s. equity futures at this hour right now, dow futures are down by about 45 points s&p futures are down by 5.5.
6:32 am
the nasdaq are positive but just barely up by over half a point. okay runners from all over the globe will be in the big apple this weekend for the 47th running of the new york city marathon many of them wearing the top specialty shoe from brooks jim weber, ceo of brooks running is here this morning and also brought a pair of shoes he's got. >> i did. >> good morning to you. >> thank you good morning. >> we have a lot to talk about just the technology but i want to understand what's going on in your industry, in your business. >> yeah. >> you are doing better it looks like than most we talk about nike and under armour under a lot of pressure what's happening >> it's really dynamic we returned to double digit growth for the first time since 2014 and our category needed to be reinvented it actually got boring and i think runners are eager to find new things that they're curious about new product but needed to be reinvented. we're working really hard on that in this quarter our footwear is up 14% globally. >> when you look at what's
6:33 am
happening in your business and look on the screen right now, showing you the stock prices, but the underlying businesses dare i say are having the same problems or at least similar to some degree. nike, under armour, adidas what's going on? >> it's a big category and consumers are moving around. the consumer is so dynamic today. it's really true they have so many choices and they'll make the decision tomorrow the radars don't work as well as they used to any more. at brooks we're more product driven than merchandising driven we're really trying to create the best shoe in each segment. i think if you do that, you can create demand from customers that's what we feel like we positioned ourselves to do now. >> do you think these brands spread themselves too thin there's reports that under armour might try to sell different pieces, the tennis piece or other pieces for example if you're just doing running then maybe that's the way these businesses are going to go in the future? >> well, that's our model. we want to create infinity and engagement with runners. that's what we wake up everyday
6:34 am
and think about. all of our energy is around that product experience i think it matters it's hard to be relevant in each category when you're running a marathon, we don't think about stopping and going to play golf or basketball all we think about is running. >> do you sell on amazon >> we are throughing through amazon we're present there through seven key partners and hope to add to that. >> but you're not going to go direct to amazon >> we would like to be on marketplace. they wouldn't allow us they kicked us off. >> why >> you know, i think they wanted us to be all in and all direct, but right now we're following runners and we have plenty of distribution on the web, so being present through marketplace really makes sense for our brand and right now we're doing that through partners. >> what about in just in terms of sales how much is online versus the actual stores? >> the running category moved from mid teens to 28% online in the last two years. >> wow two years >> almost 30% of all running shoes are sold online in two years. it's really fast. >> that's the way of the future.
6:35 am
>> right so many of our retail partners are omni channel, fleet feet, rei, but the retail brick and mortar experience is still really relevant. it's still over half the business and we see it stabilizing. actually this year our best retailers are seeing level if not growth in a small single digit way in the marketplace we've seen some stabilization for the moment this year. >> but have you lost a number of store fronts that you're dealing with >> absolutefully sporting goods we've done that but most of the specialty run shops the best ones are really doing well and we're seeing shops added as well there's about 1,000 of those and the real carnage has been in mid price sporting goods. >> what's your single best competitor when you wake up in the morning and think of the other guy creating running shoes who are on your white board? >> there's probably 70 brands creating running shoes i think we have some of the most exciting product in the marketplace but on the performance side, you know, i
6:36 am
wouldn't count out nike. they're very capable of producing fabulous product. >> you brought us a levitate shoe how much does this shoe cost >> $150. we just launched it beginning of the month. >> and how many marathoners will be wearing it this weekend >> i think we'll have quite a few in this shoe most will take their tried and true shoe they're loyal to because they've been training to it >> so you've probably thought about it, never go to like a laceless casual type shoe for people to wear >> you know, the history of brooks, we're 103-year-old brand is we were full-line athletic, joe, up until 2001 and we weren't very competitive at it so since then, this is our 16th year of only solving for the run. and it's such a huge market. it's the biggest category in athletic it always has been so we think we've got great shoes. >> lot of people in suits wearing some kind of weird -- right? everybody is doing that. >> casual lifestyle.
6:37 am
>> what's the best one of those? it should be a brooks. >> whatever is fashionable today. there's a lot of cycles that go through those categories and we don't experience those. >> do you consider this a fashion shoe you're wearing them with jeans. >> no. great shoes -- here is the key i think the fashion, casual, performance, you know, sort of seg mentation we think is kind of crazy if you create a fantastic shoe on the performance side, it's going to have great appeal to a lot of folks out there that's the game we're playing. we have to win at performance first. >> one minor finish from running, i don't know, i buy into that four-month deal if you put enough miles on it, it's not working anymore. then they become casual shoes, right? >> can i ask a terrible question >> what's a margin on a $150 shoe >> what's interesting, obviously it's higher indirect than it is on the wholesale side. our margins as a business are in the mid 40s, which is where the industry is when it performs well >> jim, thank you. >> yeah, thank you, guys.
6:38 am
>> good luck hanging out for the marathon >> it will be a fun week >> thank you. coming up, it's jobs week in america again. we'll get you ready for the employment report and a busy week of earnings as with el. you saw the names. that's coming up at the top of the hour. later, house majority leader kevin mccarthy will be here to talk tax return. the plan is coming out on wednesday. and what it means for your money. "squawk box" will be right back. ♪ get ready cause here i come >> announcer: squawk planner is sponsored by - the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise
6:39 am
6:40 am
6:41 am
welcome back, everybody. president trump's upcoming decision on who will be running the fed won't just be the end of a wall street guessing game, it's also going to have a big impact on the commodities market joining us right now is maxwell gold, director of etf securities u.s. thanks for being here. >> thanks for having me. >> let's talk first of all about what's been happening with the dollar because this year watching what's happened with the dollar it's surprising it's taken investors so long to get the wakeup call that the ecb is going to be completely flooding the market for some time to come they said they're cutting back on the amount they're using but last week said it will continue at least through september of next year. >> yeah, the dollar has been
6:42 am
very weak this year. at the start of the year we were down about 7.5%. if you look at that, that's a key indicator that markets were anticipating some kind of delay, some kind of compromise in terms of monetary policy and fiscal policy you compare that to the other currencies the euro has been very strong. that's been a benefit to commodities, particularly gold. >> it's been so weird because it seemed to me it's been very clear that the fed is going to be the one that will raise rates, maybe not as quickly as some people anticipated. maybe a little quicker i would argue lately it's very clear the ecb and the bank of japan won't get out of this trade any time soon, they'll be continuing to put liquidity out there. >> we'll see continued die verging monetary policy, easing outside the u.s. and begin to tighten in the u.s the hike for december's most likely been priced in. so i think what we'll see is most likely people looking for expectations of changes of a steady as she goes tightening here in the u.s. >> what do you think is happening with gold? it's something that we don't watch quite as frequently. >> so gold has been pretty
6:43 am
strong and is about fairly valued where we are in terms of prices most likely what we'll see is a potential upside risk if we do see inflation overshoot. the fed has two potential scenarios if we do see further tightening quicker than expected, more hawkish position that could be negative for gold, but if we see expected tightening policy that could benefit gold as we see inflation rise. >> andrew is just back from the desert in saudi arabia we've seen oil prices finally push above $50 in quite a while. can that trend continue? when we've seen it push higher like this, it's always been capped by the idea that you'll see a lot more pumping here in the united states? >> right there's two key risks when we have oil at this range between 55 and $60 a barrel. we have the risk of further u.s. production coming online which could weigh on supply. at this range, it becomes attractive for producers to begin to hedge. >> if you were to guess, where would you say we wind up, 50 to $60 oil range or does something
6:44 am
change >> this year we'll most likely see it close between the 50 and 55 dollar range but grind higher tightening of supply and demand. >> why doesn't more production come online here as a result of the prices >> at this level we're beginning to see some pressure on the higher cost producers but again if we do see a further trend upward in prices that could bring some of the producers back into the supply. >> max, thanks for joining us today. >> thanks for having me. >> nice to see you thanks. when we return, we have a lot more to talk about, the health care app heal, trying to reinvent the house call. the company ceo is here to talk with dr. drew pinsky to talk about changing the game for health care. as we head to a break, quick check on what's happening in european markets right now "squawk box" returns in just a moment ♪ ♪ i want to get better, better, better, better ♪ e. e. it was worse. a sinkhole opened up under our museum.
6:45 am
eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day. this is not a cloud. this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for business. yours. ♪ ♪
6:46 am
[he has a new business teaching lessons. rodney wanted to know how his business was doing... ...so he got quickbooks. it organizes all his accounts, so he can see his bottom line. ahhh...that's a profit. know where you stand instantly. visit quickbooks-dot-com. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] mmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day
6:47 am
by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. ...for a free kohler nightlight toilet seat with consultation or visit kohlerwalkinbath.com for more info. we come into this world needi♪ others. then we are told it's braver to go it alone. ♪ but there is another way to live. ♪ a way that sees the only path to fulfillment- is through others. ♪
6:48 am
welcome back to "squawk box. the medical house call is getting a much-needed update shael an app that attempts to deliver comprehensive in-home care on demand joining us here is the ceo and dr. drew penske is here the adviser to heal and of course a celebrity physician and somebody i've been watching and listening for many, many years. >> sorry apologies. >> no, no. help us understand what heal is all about. i think the quickest way to explain it, but you tell me,
6:49 am
it's the uber of doctors, is that right >> yeah. in the app experience it's very much like that you go online -- go on to our app, take a picture of our insurance card and credit card and say when you want a doctor and a doctor will come to your house. it's a real, live in-person house call it's different than uber that we accept your insurance plan and covered by most insurance plans in our market. the cost is no greater than going to a doctor's office and less than going to emergency room or urgent care. >> what markets are you in. >> currently we serve most of the major markets in california, san diego to the mexican border, mexican border to the golden gate bridge minus fresno and then the washington, d.c./metro area. >> how quickly can i get an appointment? >> yes, call heal. just do it. >> here is what drives me crazy. there's infrastructure in
6:50 am
burdening medicine wherever you look. >> take it past the gate keepers. >> takes the doctor and patient outside of that will be better care, more efficient, less care. you're paying for that doctor's office, personnel, billing procedures, if you go to urgent care, you're paying for all that machinery and people >> how easy or hard is it to attract good quality doctors i'm going to say that if i was a killer doctor and if i was an amazing doctor, i might want to hang out in my office all day. i don't think i would necessarily want to run -- >> you are paying for overhead here guys get to do what they want toco. take care of patients, and they get paid better, and they're not having to deal with all the infrastructure they're getting paid more. >> doctors will spend 700 hours
6:51 am
a year of unpaid time charting bureaucracy and paperwork. they leave it frustrating because they only got to spend seven minutes with the patient with heal you're getting to spend 30 minutes with a patient, and there's no unpaid time >> autosomebody has to be keeping the books. you guys do that >> the first year of our company, my wife is our chief medical officer and co-founder i'm the nerd we built software that took out the entire business process in medicine >> would you consider this a private sector solution to one of our problems? >> 100%. whenever -- i thought, i'm in. i immediately -- i have been practicing medicine for 30 years. i know where the problems are. solve it on the private sector side >> i'm looking at this in the u.k. it took three weeks
6:52 am
to see a -- >> doctors in canada come down here to get care >> was it gone by the time you got to -- >> the infrastructure -- i can tell you horror stories. the infrastructure that's already in place >> there are a lot of people that think we're on a slide to single payer are we >> if we are, there needs to be or alternatives. that's not such a bad thing. >> and the problem is that people in washington are barking up the wrong tree. the solution to health care is not cramming more people into the waiting room that's part of now we got into this epidemic. demanding patients ask for things from doctors who are overworked and overstressed, and they get it. they're looking for a quick fix. a doctor needs 30 minutes to say this is just a cold. or you need ice for this sprained ankle
6:53 am
>>. >> the liability is still with the doctor >> tort reform >> tort reform is -- >> are you taking blood? are you doing all of the things that you might do in -- >> a doctor's office >> we come ekwiptd with a curated kit able to do anything that is under a doctor's office, anything urgent care >> the biggest problem we have with people believing that this is as inexpensive and it's the care is quality as it is because they don't understand what's wrong with medicine. >> can you get the same doctor the second time? >> yes >> the second time i really like this guy or i don't like the other doctor then what dow do i'm rating the doctors >> you just set the doctors use like as your pcp in your aepappw
6:54 am
book on demand, and that's -- >> how many doctors do you have? >> we have in california about 100 doctors. >> how old are they? are they mostly younger doctors? i can't imagine a guy in his 60s -- >> a couple of guys were older >> some are just tired of the rigors >> the misery. there's misery medicine. >> can i ask you why you are here big news on friday a tearover between cvs and ae a aetna. in your line of work, would that be a good thing or bad thing >> i think that's to me personally an interesting comment of how afraid the whole world is of amazon it is for us actually not that impactful directly because ultimately, we're where the rubber hits the road care starts with you and a caring doctor who is qualified and has the time to take care of
6:55 am
you, and that's where heal starts, and then whether aetna is giving you your insurance or cvs is plging your pbm or a local pharmacy is delivering the pills, that is less relevant to heal >> do you see a day where -- you just talked about amazon maybe they do that and even buying a heal and providing -- do you expect -- >> your mouth to god's ears. >> you cannot look at the information and gather what a medical student knows and then understand 12 to 14 years of training after that and be able to apply that knowledge. don't confuse your google search with medical training, and don't do it. >> don't do it >> when are you coming to new york >> q1 of next year >> other states as well? >> we're working on las vegas and then a inform other markets. new york and vegas are the next two big ones >> nick, thank you dr. drew, thank you.
6:56 am
great to see you appreciate it. >> thank you when we come back, we're going to be getting you ready for another busy week of earnings we have the headliners coming up apple, facebook, tesla, and pfizer we'll talk strategy right after the break. later, house majority leader kevin mccarthy will join us to talk tax reform and what it means for your money stick around "squawk box" will be right back. because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it-
6:57 am
and see it through-with digital. ( ♪ ) whoo! ( ♪ ) woman: class, let's turn to page 136, recessive traits skip generations. ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ ) thank yo♪. what we do every night is like something out of a strange dream. except that the next morning it all makes sense. to power global e-commerce fedex networks are massive, far-reaching and, yes... a little magical.
6:58 am
fedex.com slash dream
6:59 am
>> ready to run. stocks trading near all-time highs. this week's test, earnings, a fed meeting and the jobs report. washington watch the first indictment expected today in robert mueller's investigation into russia's election meddling. andrew brings us an exclusive look behind the scenes of the
7:00 am
oil giant as it prepares to be public the second hour of "squawk box" begins right now >> live from gt beating heart of business new york city. this is "squawk box. ♪ run to the hills >> good morning, and welcome back to "squawk box" here on cnbc we're live at the nasdaq market site times square i'm andrew ross sorkin along with joe kernan and becky quick. take a check on the futures. let's see how things are setting themselves up on this monday the dow looks like it would open down after 57 points nasdaq looking to open off as well two points off s&p 500 looking to open off about six and a half points. among the stories that we're following this morning, a couple of things going on, homebuilder l lennar buying catalantic that excludes student debt calatlantic will get
7:01 am
seven-eighths. giving the deal an implied value of $61.34 per share. however, they're also being given the option of taking cash at $48.26 per share. the deal creates the nation's largest homebuilder. another deal announced this morning between two for profit education companies. strayer education and copella are being billed as equals shareholders will own 52% of the company once the stock swap deal is completed they'll continue to operate as independent institutions finally, a deal that's not complete, but it could be in the works. dutch paint and coatings maker ax yoes noble says it's in talks to buy u.s. rival axalta reports say that the two were first talking -- it surfaced that the talks on friday akzo has been in the news after rejecting a buy-out from another u.s. paint maker ppg industries.
7:02 am
three quarters are done. cvs health reportedly held informal talks with anthem and united health on its path to a bid for aetna. the "wall street journal" says cvs has been examining different deal possibilities for about six months >> and the government's lone economic report of the morning coming in about 90 minutes with the september personal income and spending figures income expected to increase .4%
7:03 am
where, that would double the august increase in spending. expected to jump .8% after rising just .1% in august. >> last week ended with a technology serve and more titans on the way dom has a look at the week ahead. >> all right as we talk about the market gap gains that we've seen from big cap, large cat, it is massive. if you look at the five biggest companies in america, we're talking apple, facebook, amazon, alphabet, and microsoft. those guys gained just on friday alone $1 81 billion in total market value take a look at the earnings drivers of last week we had intel gaining $14 billion. $32 billion for alphabet $49 billion for microsoft. those are just the earnings movers >> wow >> we have, of course, facebook can coming up this week. we've got apple coming up this week you can see even more happening overall with the market cap gains. now, this just speaks to this idea that large cap technology has been the massive driver for
7:04 am
manufacture the gains. it does worry some strategists out there because it is perhaps a little narrower in terms of the market rally that we've seen mega cap technology has been driving a lot of it. tesla is also a stock that a lot of people are going to be watching because this is a stock that typically tends to trade a lot more volatility during the course of any given year, and tesla shares are right near bear market territory not there yet. on wednesday we get auto sales that's a big driver of the u.s. spending economy in the u.s. and on friday we get the all important jobs report. technology, goo iz, such a big and integral part of the overall equation for the market rally. the sector will have 18%
7:05 am
earnings growth over the same time last year, and even now the overall earnings beat with half the s&p reporting right now is around 5% to 6%. big story. we have intel and microsoft. apple rally, facebook rally on the heels of those really, really high expectations if they don't do something big this week says -- >> it could be the down side of that
7:06 am
>> thank you very much >> infuriating, isn't it >> for more on the narkts let's go to steechb parker head of theme attic equity solutions. scott clemmon is the chief investment strategist at brown brothers herrimon. >> i think in 2008 and even 2000 it's still fresh in people's minds. they're not getting euphoric we're not seeing the type of exuberance you normally would see at previous market peaks i think that's been reflected in the fact that this is really a rally this year around the globe
7:07 am
that's been driven by earnings not by any multiple expansion. >> does that mean the people that are coming to you have not fully participated in this they haven't put as much money in or maybe they've been waiting for a pullback >> that's wuchtd reasons we've seen as little volatility as we've even enseen in markets clients are more comfortable being invested, but there's still that sense of i've got cash on the side liens i'm waiting for that pullback to enter, and we haven't seen more than a 3% pullback this year, and frankly, anybody who has bought any sort of weakness over the last three or four years has been rewarded. that's one of the reasons why markets continue to go higher. >> what do you think about the idea that we haven't seen a pullback in so lock? >> well, becky, his erkz story that dom was taking about, as dramatic as it is, really began in the third quarter of last year that's when we really began to see an acceleration of earnings. i think that's what's enabled the market to do as well as it has for as long as it has in spite of the long list of threats to sentiment i have cautioned my clients that
7:08 am
somewhere out there there's a correction in the works. the important distinction to make it whether or not that development poses a risk to sentiment, and, therefore, price or it poses a risk to fungtss. therefore, value >> what type of a correction are you looking for? >> it could come at any time we haven't had a 5% correction in the markets since the tlgts fibrillation around the brexit vote in june of 2016 >> if people are waiting for that 5% pullback to get in, we're going to see gains of 10%, 15 %, 20%. even if there is a 5% correction -- >> that's why it's important to stay fully vested. we were talking earlier in the greenroom. looking at ten-year returns of the s&p 500, which have compounded at a 7.5 type number, you remember that that ten-year period began with the 2008-2009 crisis and yet compouned for ten years at 7.5%, it really does underscore the importance of importance of long-term invest and not waiting. >> you sht telling people to -- >> as long as the fundamental story is good, and that's an earnings story, the market has further to go.
7:09 am
>> steven, what particular sectors, dom was just talking about ek it nolg, how that has been a huge performer this earnings season. >> yeah, i think you really want to focus on the parts of the markets that can deliver that earnings growth. we really like a barbell between some of the more secular growth or yenned sectors, technology and health care, and some of the cyclical parts of the value like banks and energy we're trying to avoid right now more expensive lower growth parts of the market that have benefitted because they've been bond proxies they're offering investors yield. now is the time you want to focus more on growth >> one thing in particular anything you do like in that growth area? >> so technology clearly you know, it's hard to argue against the earnings story that you are seeing there one of the -- our favorite opportunities right now that's a little bit more on the value part of the market, but i think offers attractive growth is the banks. i think it's not just a story about rising rates, which says what a lot of people are focused on, but it's also a play on the recovering u.s. and global
7:10 am
economy. there's also a big capital returns story. banks have improved their balance sheets dramatically, and you are seeing it. dividends are getting picture up buybacks are getting picture up where, there's a lot of ways you can win with the banks that's our favorite value part of the market. >> scott, there is a lot more noise this week. it's not go egg to be just an earnings story you have a fed decision coming out, and the president very likely going to name his choice for the next person to head up the fed. >> right there is a lot this is a busy week, and it's already started busy this morning. there's no news from the fed we'll read the tea leaves and see if it gets us to the pace of interest rate increases where. >> let's say donald trump weighs in and says it's going to be jay powell >> i think it's a man bites dog type story i think any of the lead candidates aren't really that big of a change. >> what's important? reading what the fed has to say or who gets the new job? i would assume to some degree you almost have to throw out -- not physically throw tout, but
7:11 am
that becomes irrelevant, and the person becomes much more relevant >> i don't know if that's true you should this fed versus 10 or 20 years ago this is a much more collaborative decision making process than it was, for example, whenrallan greenspan was chairman >> isn't that a function of the function and the man >> it's a function of the composition of the committee more than the individual running it, i believe. >> so ultimately whoever runs it, you think, is going to be living inside this collaborative version of the fed >> that's my expectation >> you agree with that steven? >> i do. i think that one of the key points in order for maintain the stability that wrer seeing in markets is a smooth transition of the fed, and a continuation of this policy around transparency and good walism ity that the current administration is very much focused on growth. they're very much focused on markets being well supported, and i think that as we begin to move away from this unprecedented period of monetary policy towards a more normal environment, you need to see that gradualism and you need to
7:12 am
see the transparency that's going to be key for markets. >> thank you very much >> thank you coming up, says when we return we're going inside saudi aramco a look behind the scenes of the oil giant as it prepares to be public oh, goodness that's not behind the scenes there we are last week anyway, you are watching squawk books on cnbc. we are back with that inside look of saudi aramco is this a phone?
7:13 am
7:14 am
or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile.
7:15 am
a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. >> we've been watch being the futures today, and they have been under pressure while we've been watching. the dow futures down by 62 points below fair value. s&p futures off by six, and the nasdaq, which had been positive earlier this morning finally giving way they're down by just over one point. oil prices had picked up pretty significantly. it was gaining almost $2.30. wti is once again up to $54.01. pushing above $54 for wti where. in political news investigators looking into russian interference with the 2016 presidential election they are expected to announce at least one indictment today the u.s. official kwirmgz confi nbc news that the office of
7:16 am
robert mueller will issue the indictment at some point today the charges and the target are not known at this time president trump has repeatedly denied that any collusion with russia took place during the election he called the probe a witch hunt >> and heathrow airport launching an vefgts after a u.s. memory stick containing airport security information was lend allegedly found odd a london street the u.s. stick apparently held dreelts e details such as the route used by the queen and visit ig dignitaries would travel and maps that pinpointed security cameras in a network of tunnels. the man bho found it turned it into the sunday mirror snoo puerto reek dwroe is looking to kaebs a contract with white fish energy. the montana company was hired to restore power on the hurricane ravaged island the came am came under fear. three-quarters of puerto rico's homes and businesses don't have power of the storm
7:17 am
but hit six weeg ago december is what we've been herring. it could be set back by this change as well >> one of the highlights of my trip to vaup u saudi arabia was my visit to saudi aramco headquarters wefrp given access to the world's largest company and went places no camera crew has gone before >> moments after landing in riyadh we jumped on another plane. as we made our way to shava in the empty quarter, it was remarkable awful a huge oil production facility in the middle of the desert >> welcome >> wufrt most striking things to see inside this oil and gas facility was an animal reserve aramco trying to bring back wildlife and balance the ecosystem around this facility for the first time ever aramco allowed our cameras inside the company's command center from this one room, aramco can control and manage and literally turn on and off with the switch
7:18 am
the production facilities that produce over ten million barrels of oil across the kingdom. inside aramco's headquarters we got a joelogical lesson and saw new technology that they used to -- aramc's headquarters are like a city within a city. they include housing, their own hospitals and kooltz >> we also took a hospital over aramco's skpoil production facilities a string of manmade ieltds that they created with aramco's it expected ipo and valuation of as much as $2 trillion this oil titan is pivotal to saudi arabia's plan to transform its economy >> the thing about shava that's the most remarkable part because you go there and realize, first of all, they're producing a million barrels of oil out of nowhere in the middle of the desert just the -- between that and two of the others, they're producing 75% of what exxon does in a day.
7:19 am
you said what do the people do there? >> i'm guessingest a lot of workers, and i'm wondering with the leisure time what do they do >> they have -- when i say it's like a city inside a city -- there's 1,300 people that li out in t -- live out in the desert that have housing and racket ball >> that's what i would do. >> they're just, you know -- there's school, rest raunlts there's all sorts of stuff going on they have flights. they have their own planes that fly in people in and out on the weekend. that's very interesting. they work for five days. they fly out on fridays. they go see their families they fly back. it's -- >> how far are they? they're not going back to the united states? >> no, no, no. they're flying to riyadh which is about an lower ago. there's a multi-national community as well. it's locals and then a whole
7:20 am
other community that animal reserve team that works on that. one of those guys are some of them are british they're flying all over. it's just fascinating to see that they've created their own ecosystem if you will, around everything that they're doing. >> there's no vice anywhere? really is there any under current anywhere i don't know why i'm fixated on it >> i did not see any vices, but maybe there are. i imagine there might be i don't know >> i don't know how that -- >> racquetball >> there's your -- >> really like two hours of really, you know, hard core. like trying for every single point. that gets hard i guess. >> coming up, a new kind of buzz this is what, you know, we talk about it in other references
7:21 am
we didn't do well with prohibition over here. an entire industry is created. remember >> this is what you see when -- >> it's hard to keep -- human nature i don't know why cons las vegas brand is making a big bet on the -- stay tuned. you're watching squawk bks on cnbc
7:22 am
the amazing new iphone 8 is at at&t... and we know you'll love it. because we know you want more. more great camera features and more power. and more than just unlimited data, we give you unlimited plans with hbo included for life. because you deserve more entertainment. and more spokespeople. talking like this, saying the word more. at&t. it's time for more. am i too close? i feel like i'm too close. get the iphone 8 and with all at&t
7:23 am
unlimited plans, get hbo for life. only from at&t.
7:24 am
. >> welcome back. look at the rain unfortunately, it's tough out there. >> 40 days and 40 nights >> a few analyst calls goldman sachs downgrading general motors to sell from neutral. the price target $31 a share the analyst sees a negative earnings inflexion in 2018 also, america downgraded to equal 80 weight from overweight. they cited extreme up side citigroup downgrading jc penney and macy's the analyst noting that some companies specific issues for cvp and says risks are increasing for matescy's it is a little late. in other corporate news,
7:25 am
nintendo is raising its full year operating profit forecast this comes because of strong demand for its switched gaming console. the company says it now expects to sell 14 million consoles this year up from previous forecast of just ten million >> conzel rags brands is taking a nearly 10 % stake in canty growth that's a canadian marijuana company. consolation is planning to work with the grower to develop and market cannabis infused beverages. he expects marijuana to be legalized in thea it's eventually in coming years, and i guess, you know, in preparation for that, eventually legalization makes sense to have a cannabis ub fiezed drink zbliefrmgt coming up, we got this morning's top stories plus, we're going to tell you why shares of afterle suppliers are getting a big boost today. you're watching "squawk box" here on cnbc back in a moment
7:26 am
today, innovation in the finger lakes is helping build the new new york. once home to the world's image center,
7:27 am
new york state is now a leader in optics, photonics and imaging. fueled by strong university partnerships, providing the world's best talent. and supported with workforce development to create even more opportunities. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, theextreme risk of burstd a pipes and water damage...y... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it- and see it through-with digital.
7:28 am
whentertaining us,es getting us back on track,hing? and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that.
7:29 am
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 xfinitymobile.com. ♪ among the stories front and center, general electric's board said it did not know about the practice of having a second jet follow jeff immelt on certain trips until this month that's according to the "wall street journal." the newspaper says that the board also was not told that ge had gotten an internal complaint about that practice several
7:30 am
years ago. >> there were charges that he participated in a bribery scheme to try to entice doctors to prescribe opioid drugs he says he is confident he has not committed a crime and a trial will fully vindicate him also, swiss drug maker novartis is offering to buy advanced accelerations in a cash deal novartis is trying to strengthen its oncooling portfolio with this transaction it says it will fpts the deal with debt. among the stocks to watch this week, to watch cloechl, apple on the list. company set for post quarterly results after the close thursday write that down. meanwhile, the economic daily news reports that apple is asking taiwanese suppliers to double their capacity for the new iphone 10. the paper says preorders for the device have exceeded expectinged.
7:31 am
brooke patterson published this video. tech sites kbilk picked up her patterson now says apple fired her father he apparently violated a rule by allowing her to film the new iphone model yi yikes. >> it's like if you took your kid to work and they do something. it is on you, i guess, right >> apple seems like a kinder, gentler company. >> if you have that happen and then it becomes trend and people starts showing up, and then you have a problem i get it >> mainly for your -- how old was she? >> let's see, 10 or something. >> no. older than that. how old was she? >> she was like a teenager did you see the video?
7:32 am
she's -- it wasn't her fault >> this is a real thipg. >> was the dad paying attention? >> if you have more kids coming in, you know -- >> second chance >> they keep everything under such strict ent secret raps. that's the big deal. >> this f they don't do something about it -- i hate to say going forward, but from here on out there's a tougher rule to enforce. >> if you let this go, right now everybody knows, by the way. >> i'm not going to come down on a hard decision on it. >> kwet is how much did they have this engineer in? you really start though think about it please go ahead and -- i hate to say this, but if there was
7:33 am
squlony odd had a key and this was the kid, did wob more makt to get rid of him. that's all i'm saying. sorry for saying it. the number of billionaire is growing, and so the demand to buy sports team. major ownership tax been at the time they have grown at an average 28% growth rate. joining us is sam aa greenwood at marketing capital we talk alut time about how sport. you, sports teams valuations have gone up, but at any every fleksz point it meals ike they're about to go off the lick cliff given what's going on in the conat the particular time world or something is happening in capping where is this going from your pant point >> it's a great point, and nba teams, for example, have the valuation of nba sports teams has gone up 28% a year on average for the last five years.
7:34 am
at the same time you're now starting to see foreign interest in buying teams, whether it's the joe aside from alibaba nounment the nba signed a seven-year $500 million deal with 10 cent for the streaming rights to nba games in china over 600 people people watched it just in the first season internet companies started increasingly bidding amazon had paid $50 million for the thursday night -- when we saw that happen with the nfl rights, it tooemd seemed like main lfs some over salt rags maybe the rakts -- i am talk about the nba but the nfl today on this. has that had any impact on the valuation? >> yes it's a great point you sigh before the highests appreciation in the nda because there's this growing global
7:35 am
interest to you iks tent you were to see a decline in attendance, just a decline in interest for teams, that's certainly a risk everybody for the nba avgly. so many people. >> 43% discount to fair market value for msg is attributed to the idea that the -- 22% of the stock, but have 70% voting control. interestingly, says other sports companies, the atlanta braiz and formula one trade publicly are voting controlled by john malone, but they only traded a
7:36 am
15% discount maybe it's disgruntled knicks fans, but it seems like there is this higher discount place due to the dolans voegts control, which if you look back -- >> if it's not terrible, the knicks are, that's not the problem. that is -- i would think that would actually be a real problem. >> so -- >> which might be dolan's fault, by the way, too. that's a separate issue, though. >> definitely you see higher appreciation for the best teams in their respective leagues versus the average team. no, i think there is some distrust going back. people have long memories in the investing world, and people remember "news day" and unpopular -- >> is there any sense that the dolans will ever sell? >> well, a sale -- what's interesting is that the sale of msg is very financeable because all of the real estate is unencumbered there's only -- they made over $2 billion last year selling cable vision, and so even at a 40% premium to msg's stock price, you would only need a new
7:37 am
partner to put in 10%. >> what i'm trying to figure out if you think it's such a good deal -- >> agreed. i think a sale is unlikely i think what you could see, though, is spinning off the teams from the entertainment assets then -- that would be consistent with the dolan's history of using spinoffs they've done three since 2009. >> samantha, let me go back at this one more time the nfl teams today, are they worth less than they were a year ago because of what we've seen in terms of viewership and because of the protest for -- have they just increased less of them >> so they are increasing less in terms of the rate of growth of sports rates. if you look at this contract versus the past contract and the average valuation of the teams, they're growth less quickly than the nba, but they still benefit from just the desire -- > jerry jones hired you to
7:38 am
advises him. what would you say >> his -- if you look at the unbundling of rights, whether it's selling streaming rights to amazon five times what they paid for the same rights a year before it's really hard to argue in terms of monotization of the nfl. he has done an excellent job >> voting confidence from you -- you don't know what a year from now looking back on the business implications are going to be
7:39 am
from all this, though, either. >> that's true >> empty seats i know it's raining in new york, but, i mean, there are some good seats available if you want to go to these games. >> our teams have some problems. >> yeah. >> even some of the other teams that don't have problems are quite a few there's a lot going on people talk about how, you know, it's almost saturated. perhaps -- >> two quick questions you talk to the nba and we talk about espn, and they've paid a lot, and they publicly said they -- not that they've said publicly that they think they've overpaid, but that's a big issue in the industry. >> yes >> when that deal rolls off, do they get as much money in the united states for that, or does it get made up for effectively because of the 10 cents to buy and alibaba is trying to bid off for the assets >> the rights. >> i think that is the path for sports leagues they'll look to other ways of unbundling rights and selling rights >> finally, e sports, if you
7:40 am
were going to make a bet on one e sports company, what would you do >> i would go with take two. they and the nba next year will launch the nwa 2k, and that's a company whose earnings we think can double over the next two years. >> cool. samantha, thank you. >> thank you >> appreciate it >> the insurance industry is getting slammed for stolen marine engines contessa brewer tells us how this is happening. you need to explain. this is not a fly by night thing. >> these are not your average pungs down the street causing mayhem they're complex, sophisticated attacks that bypass even the high-tech security measures put in place to prevent thefts and this, by the way, is happening across the country from long island to california all with a similar m. o. >> these criminals just broke into a boat yard they're not after the boats. they're after the valuable --
7:41 am
watch the surveillance video, and it's clear they know exactly what they're looking for. >> it's sickening, and it's garsing, and it just -- it just makes you feel like a total helpless victim. >> they got away with 41 engines worth more than $700 moulg,000 >> these thieves were so sophisticated that they walked past engines that were sitting in the boxes that they could have just loaded up. they had our forklift running, and they took specific types of engines that are more valuable >> the fa account that they know how to do all of this, it's not like there's some casual kid down the street that decides he needsable engine for his boat. >> these are guys that are targeting this particular item there's just no doubt about it >> and, of course, alex may survives the hurricane in harvey and houston. he gets hit again by the same thieves. they go back and gak again even
7:42 am
though he has increased the amount of security they're talking about this being about $10 million both uninsured and insured losses nationwide. that's the insurance industry's estimate here. it looks like this is just something that the marinas are going to be on guard for personal boat owners they can get this device for the engines called the y cop you hit shut it down remotely if your engine gets stolen. it's a real problem. right now investigators are baffled by it. >> if you get that device that shuts it down, does it do something like, oh, slow -- this house protected by or this -- >> no. >> i would think it would be a deterrent if they knew >> i think that the reason why it works is because they get the boat off of the -- or they get the engine off the boat. they shut it down, and then it's not useful anymore if you are going to ship it overseas or send it somewhere elsewhere you are going to resell it you look on ebay or craig's list or in the on-line ads for
7:43 am
boateningins, these things used go for $10,000 easy. >> it's a cry of opportunity they are in the marina why wouldn't you steal -- if you are a thief? >> just figured it out >> they just figured it out. >> all right coming up this morning, stocks to watch. plus, squawk and roll. we'll be joined by the lead singer for a heavy metal band that sold 90 million albums. the fanatics of this band, iron maiden, are -- there's one right there sitting next to him. that's the -- it's the guy on the right. thaes our producer iron maiden's bruce dickeninson is here when we return retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business
7:44 am
to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.
7:45 am
the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. t-mobile's unlimited now includes netflix on us. that's right. netflix on us. get 4 unlimited lines for just $40 bucks each.
7:46 am
taxes and fees included. and now netflix included. so go ahead. binge on us. another reason why t-mobile is america's best unlimited network. let's switch gears and talk music. the end of the summer means the end of summer music tours, and most musicians can't be blamed for taking a little time off then most musicians can't fall back on a career flying boeing 747s, writing novels, and screen
7:47 am
plays. starting a beer business, being a motivational speaker, and an aviation entrepreneur. bruce dickenson, lead singer of iron maiden arks i band that sold 100 million albums worldwide. it's great to see you. your fans are some of the most avid on the planet we know for a fact i guess you realize that too, and it's turned into a whole business for you >> i mean, the music has always been -- everything else we do on the side or whatever else i do the music is always sacrisanct we can't mess with that. our fans -- i said somewhere our fans are like replywooplywood. we have layers of them every sort of five years we seem to grow a new generation, and that just stacks up on to the surface of the table >> what would you say?
7:48 am
it's an 1980s phenomenon the hair rock and melgs, wasn't it or -- >> well, that's -- what we ended up sort of tacking along with that over here, but in a sense, i mean, i made -- we're our own niche now. we're out on our own we're pretty much independent. people say, oh, wow, those guys are still here we've never gone away. >> you can go to any continent, and you can get 80,000 fans. it doesn't matter where. i've seen it a big fan over there has shown me video in countries where, you know, you wouldn't necessarily think iron maiden where. >> maybe not the galapagos islands. we get a lot of turtles. >> chile, all the countries in latin america, massive i mean, we did some shows in south africa we are really big in india, south korea. you know, it's global.
7:49 am
i mean -- >> the urge to go in all these very different businesses, is that because you could accident or -- >> it's very strange i didn't actually intend to be an airline pilot i mean, i ended up working for an airline for about nine years as a full-time job i just took a trial flying lesson, and in the spirit of what does this button do, i went, well, how do we -- how does -- what happens now then? what happens if i do this? in the end i ended up getting a job brewing beer i'm a big fan of beer. you know, i love the stuff, and i like interesting beers somebody came to iron maiden and said why don't you do a red wine i went, huh? they went, no, no, no, you can sell bottles of it just stick a label on it i said that's not who we are that's not what we do. why don't we do a beer they said we're sticking a label
7:50 am
on somebody else's beer. i said no, we design our own it might be awful, i said, but that's in the spirit of who we are. we're going to do it we do it right you know i went out to 18 million pints given that we've sold -- we're catching up with beer. >> we had richard branson sitting in that seat a week and a half ago he said some things that sound very similar to what you are talking about right now. the brand, his most important asset and being true to who he is and who virgin is all part of that >> as i say, the music is what -- the music is call to it. i get the predictable questions. oh, which would you rather be doing? brewing beer or singing for iron maiden really that's kind of a no brainer, isn't it, really in my passport i have the one u.s. visa that's called an 01, and basically it says i can only
7:51 am
be me. there can be only one. yeah when you're officially designated as being unique, i think you need to treasure that. there are lots of people who fly planes and to it very well, and there are many people who can brew beer, but when you have something that's really unique that you spent your lifetime building on, it i think you should cherish it. >> the music business, you may not have inc. chaed, but the music business certainly has what's happened along the way, and what do you think of this adaptation >> well, it's interesting you say that compare and contrast with the book selling business. that's new to me because i did this sort of biograech, and we just went to number one in the u.k. that was yesterday officially. we beat hillary into third place. the book selling business is thriving books are still alive.
7:52 am
>> we're not sure how many people have record players it's more for nostalgia. that's just a guess. books are still very much alive. even though publishing embraced the electronic format almost immediately because they saw what happened to the record industry the record industry really messed it all up i mean, the great big corporations with, you know, dollars all sitting there all fell over within two or three years. they were dead ducks it was because basically it's because they failed to understand that you have all these fans out there and they love music they don't necessarily love the record company
7:53 am
. >> it used to be that you would tour to raise money for the record that made money it's just a reprofiling of the way people think about what's valuable now you can persuade people to pay the price of a cup of coffee for an album or a cd they pay less than that on a regular basis. however, they will pay $100 for a t-shirt. i stress not our t-shirts. but they're prepared to pay crazy money for all things it's because the value of everything is reputation, and that's not changed the plusk hasn't changed the fundamentals haven't changed. it's just depending which side of the fence -- >> everybody is excited to see
7:54 am
you. >> great what does this button do >> next where are. >> i don't know. i just want to find out. thank you. >> when we come back, we have more of the morning's stocks to watch, including the few m&a names. then at the top of the hour we'll talk tax reform with kevin mccarthy is this a phone?
7:55 am
7:56 am
or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. 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 xfinitymobile.com.
7:57 am
7:58 am
flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.
7:59 am
i can't wait for her to have that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise
8:00 am
the zbloinchts republicans will unveil the highly anticipated reform bill this week. our special guest this hour, house majority leader kevin mccarthy >> people are anxiously awaiting my decision as to who the next head of the fed will be. >> the president set to announce his pick to lead the central bank we'll ask former cea chair glen hubbard who is the best fit for the job and who it means for the market >> plus, a triple dose of deal news stocks too watch straight ahead as the final hour of "squawk box" begins right now.
8:01 am
>> the futures have been under water. down 50 on the dow now after some solid weeks, though of upward momentum. the nasdaq still the afterdploe from friday's big moves, they have this average diverging from the others this is actually up one while the s&p 500 is down about five >> 18% or 19% on the dow 29% since the election >> breaking news on the robert mueller investigation. "new york times" reporting that former trump campaign manager paul manafort and associate rick gates have been told to
8:02 am
surrender to authorities this morning. the charges against them not immediately clear yet at this point. >> it's also been a very busy monday morning for merger news let's get you caught up on some of this. hole builder lennar is building calatlantic group. it's worth $5 billion when you exclude the assumed debt calatlantic shareholders will get about 7/8th of a lennar share for every share they now hold that gives the deal a value of $51.34 a share check it out with the gains today. however, they're also being given the option of taking cash at $48.26 a share. the deal creates the nation's largest homebuilder. lennar shares down by 2% c calatlantic shares trading up by 18%. vitra energy and dynegy have a capital -- dynegy shares up by 12% with vistra off by 1.5%. strayer education and cap elia
8:03 am
education with a stock for stock -- it's a for profit education company that would be valued at $2 billion >> the analysts there cite reduced from the natalee holloway therapeutic keytruda, which has been part of the good news >> down 4% >> recode -- montana company was hired to restore power tothe hurricane rafabled island. the governor said that the contract became a distraction
8:04 am
after members of congress and fema raised concerns >> the contract itself was surprising, and some of the provisions in it, which really prevented sort of any sense of accountability that was surprising. we have somebody here on the set who might be able to talk about some of this >> republicans are set to unveil the tax reform plan on sunday. joining us house majority leader kevin mccarthy the optics of a halloween release, leader, i don't think that's what -- it's so many -- so many -- i know. that's why it's on the 1st instead of the 31st.
8:05 am
a lot of the details have been kept secret. i think to some extent intentionally. because you are going to mobilize every lobbying group or special interest on the planet that is affected by any of the loophole closures, and it's going to be difficult. does that go into the thinking that you don't want -- you want to keep it under wraps until you're almost ready to vote on it >> look, it's not easy to do tax reform he especially with your eliminating loopholes. i argue against that it is kept secret we put our framework out before the election we've put out all this year. we're going to lower the corporate rate to 20%. we're going to let double the standard deduction meaning husband and wife or a couple they get $24,000 tax-free instead of $12,000 the first $24,000 tax free single person get $12,000. that's instead of $6,000 we're going to shink are the seven rates down to three. we're going to lower small business pass through to 25. that's a 40% decrease. i think we've been pretty open
8:06 am
now, the final detail. >> is there a detail that there will not be a fourth tax rate. >> they're still working this is what we put out. people can work out the details, look at the others >> how many brackets are sf. >> people -- >> listen. >> i think there should be a bracket and this could pay for the rest of it just on calendar models. increase that bracket. you could pay for the rest of it >>. >> if there was a fourth bracket? take us inside what's the conversation? >> i will wait until weighs and means comes out. that's their role. i believe this the simpler the better. take itf
8:07 am
our lowest ever averaging 1.8. >> it does not pay the argument that more people working with higher salaries paying more revenue does not pay for itself to me that's a different point time and again if you let people, you have to bring their investments. you keep the snent i they say if we lower the rate to bring money back overseas, that that costs america money
8:08 am
we know that's not true. >> we're at -- the specifics are there. you're at 1.5 trillion that's all the dynamic scoring >> we have to have it signed off on >> you have four trillion you have to pay for. it's not done yet. you haven't got all that it's going to -- there are going to be some unhappy people in sacred cow industries that will fight tooth and nail the housing industry is already trying to mobilize i don't know what happened to 401ks. that looks like it's no longer going to be. >> we're going to up the rate on what people can get for 401ks because we know the importance
8:09 am
>> if my kids are younger, i think the roth is great. at my age it's -- >> great editorial, i thought, on saturday from the "wall street journal" about whether -- where we are right now at 39 whatever, for the -- you add in the obama care republicans fold odd that and trying to get rid of that because of class warfare >> be fair >> the house didn't, but the rest did you're back to about 50. you get to keep about half of what you make. the whole point of this exercise that you are doing right now, it's good to help corporations, but the point of it is you are leaving more money in the private sector why would you actually raise taxes on -- and if you talk top
8:10 am
10%, they pay 60% or 70%. >> i don't think they should >> to satisfy people that the democrats. >> they're going to say you got estate taxes, corporate taxes. it's still going to be -- they're still going to call it a big boon for the rich. >> you haven't walked through the plan we eliminate the amt you know how big that is that's worth more than when you go through the home and others we double the standard deduction. one-third of america itemizes. there's only going to be fewer people that have to itemize. you still have the choice to do it when you make it simpler, when we lowered the rates, at the end of the day if people look at the overall tax bill, first thing they're going to say, this is pro growth this is going to create more jobs those who are jobs today are going to get higher pay. it's going to incentivize entrepreneurs for more small business, the lowest rate they've had in more than 40 years. this to me, those who come out and argue against it are angry
8:11 am
because we're closing the loopholes and that's how we're paying for it. if you are going to lower the rates you way you pay for it, and the whole reason we have all the loopholes is our tax code has been crazy >> when it's not really that significant, just do the growth side of things go to 15 because if you end up at 25, it's not worth doing. >> how do you just do corporate? >> because most people are below 25 you know that. >> below 25 anyway >> it gives the incentive. it has the ability to move forward. they create more business than
8:12 am
any corporation. >> you don't think it's a give-away to the wealthy >> letting people keep more of what they earn no not at all sflo so all of those companies that effect tily -- there's a huge -- there is a group that's going to go from effectively 39% right now down to 25 that's -- >> the language we put in watch what little. how many small businesses? i walk around this, and i see the pictures of the nasdaq how many small businesses started in a garage and now have thousands of employees you know what, if you create a disincentive that you only for the big guys, you are not going to succeed.
8:13 am
>> this is the conversation happening in washington. first of all, what do you make of it? >> you have to make news, but let's see what this is first about. we don't know what the issue is or why they're saying to come in does this have anything to do with the president i don't know see what it is the one thing i do know is president trump won this election based on going out to the american public, talking about job creation, talking about exactly what we're doing this week when it comes to taxes. >> are you concerned at all about the russian -- about russia meddling or interfering in the election? >> i think russia meddles in know's election. i don't think russia did anything to influence whether trump got elected or not from the basis that the american people decided from there.
8:14 am
>> most important thing we did do is get the economy moving >> how do you think the dossier was originally kraed by a supporter or at least was created for the -- by supporters of the gop >> it never went forward beyond there, and hillary took it to the next level and took it public spent millions of dollars and now says she didn't know what she spent it on. her campaign manager said, well, i didn't know what -- how do you spend millions of dollars in a campaign and not know and why do you have to have your attorney with you when you answer >> hillary's former campaign manager says it's -- i would have done ten times as much. then you look back at the amount of time spent on donald trump jr remember the meeting there that was treason that was the death penalty >> do you also remember
8:15 am
president obama as president running for re-election saying, hey, tell putin i'll be more flexible after the next election >> the "wall street journal's" editorial page today effectively called for the resignation have mueller. >> that was -- >> i'm sorry over the weekend i apologize. do you think that's appropriate? >> look, i read that afterwards. i think the -- it raises issues the people that he put on the investigation. you know, when i look to attorneys, i belief in the rule of law he was looking at hiring people that have played in politics and given their money in politics. especially from one side to the other. that raises a lot of doubt at the end of the day you want to be able to bring out a report that people are going to trust you cannot start a structure that makes it look political to think that people aren't going to think it's a political outcome. that's the problem to start out with then if he is basing an investigation on a dossier that we know is not true, that is
8:16 am
funded mainly political, millions of dollars, and in an organization that tried to hide what they were doing i think that makes the outcome questionable at this point >> would you have a problem if other members of congress for the senate were supported in part with russian money? would that be possible too >> that would be a major problem. one thing i see with putin wants to do, he wants to discredit the form of government he wants to discredit the media. he wants to do all sorts of things he does it around europe he does it around -- >> the president wants to discredit the media too. >> yeah. >> i think there's nothing wrong with the individual pointing out whether things are right or wrong. this is want the president look at what the harvard study in the first 100 days. look at just cnn they took every show that they did about president trump, 92% of it was negative
8:17 am
>> 9 tax cut, we've had some ceos in that have done the calculations just based on what would happen to their bottom line >> they can't because we've never done it. >> the bottom line -- no, the bottom line goes up. for many of them that blizz down valuations, and that sort of explains why the market is up 25% in the past year >> that's why you don't want -- you want the lobbyiests. >> you think the guys in the senate this time have the intestin intestinal fortitude to with stand the criticism from the right and the left >> that's my prayer. >> all right okay want to slip in a quick break. much more with house majority leader kevinccty rht marig after the break. stupi stay tuned win an uncertain world?k predictable income pgim sees alpha in real assets.
8:18 am
like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential. my "business" was going nowhere... so i built this kickin' new website with godaddy. building a website in under an hour is easy! 68% of people... ...who have built their website using gocentral, did it in... ...under an hour, and you can too. type in your business or idea. pick your favourite design. personalize it with beautiful images. and...you're done! and now business is booming. harriet, it's a double stitch not a cross stitch! build a better website - in under an hour. free to try. no credit card required. gocentral from godaddy. but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch.
8:19 am
i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.
8:20 am
let's get back to tim mccarthy we've been dawg taxes with him this news just crossing the wire the paul manafort and rick gates have been told to surrender as part of the mueller
8:21 am
investigation. whether that's going to -- are you woeshd that's going to overshadow the tax issue this week >> no. tax cuts are too important to the american public. let's find out why this is i mean, all last week is it overshadowing the tax plan now that hillary's campaign did to this president and never came forward with it spending millions of dlarsz making a false dossier that who knows if mueller is utilizing this. i know the basis is not right. we've got to get the country working again. that is really what the campaign was all about. creating more jobs you look the second quarter now 3% growth. something president obama had never been able to achieve all right? we're making great progress. the reg reform that we did, and now tax cuts to the american public, and i think that's the next step that will put us on a great path >> do you believe as our treasury secretary has suggested that if we don't get the tax cuts, that the stock -- a big portion of the stock market gains will disappear >> i think a lot of the gains are the anticipation and
8:22 am
expectation we get the tax cuts. the corporate rate the highest in the world trillions sitting overseas because the tax code forces you not to invest in america the challenge it is for a small business starting a job. yes, regulatory that president trump has done a fantastic job cutting it faster than ronald reagan was able to do. i mean, you look at the 14 cra's. only one has ever been successful in the history of america to president trump yes, this to me is the anticipation, and i think it would affect the stock market if we don't get it done
8:23 am
>> we're watching boem care getting rolled back. >> you know the primary conversation i have with democrats. they realize our tax code is so wrong. they want to vote for it if you read the headlines last week, this is what was going on in the democratic congress nancy pelosi was standing up telling her conference to vote no, and if the republicans can't get this done, we can win the majority next. instead of caring about where the country is going, she's trying to put political pressure on her members not to vote for it if democrats didn't want to vote for it, dwr would she even bring it up? she's trying to pressure them, all using politics instead of worrying -- instead of putting people before politics, she put politics before the people. >> does that mean you think you will get some democratic -- >> i think we will with she's a good arm twister on her side, and he think she'll try to twist every arm the power of this idea, i think, will mauf forward much stronger. >> two other things in the news that had will happen this week in washington. one we may hear from the
8:24 am
president about a new fed chair. well, he said he will. >> in this parlor game of who may be the next fed chair, do you have aic two view? >> i think the president has looked at a lot of good individuals capable of doing the job. let the brez make the choice, and i'm happy with the people he is talking about >> would you be happy with one over another are you more hawkish or dovish >> he has had the discussions with them. it's his decision to make. why should i -- i don't have a play in this i trust what the president will do i've waufrpd the selections it that it is president made. you look at his cabinet. you look at his national security team. probably the best national security team in my lifetime this individual makes kwood decisions be when he is gin all the information. i think he is spending his time looking at this, and this is an individual that comes from the business world i trust this is -- >> the other thing that's happening in washington this week, the big tech companies and media companies, including facebook, there are going to be hearings about the russian
8:25 am
investigati investigation, about russia trying to make their way in temz of how the election came out there's a big question about whether the big tech companies are ultimately going to be regulated by washington. where do you land on that? >> i don't look at creating more government, but what i do think is you have to have transparency what i have watched big tech do many times is kind of run in a different manner kind of against republicans. i think transparency if somebody is putting something up, just as we put something unin a campaign, say where it's coming from and let the public decide whether that information is worth it. >> you guys really did -- guys i mean senate and house, you did the budget thing i'm shocked. almost faint you are on track to actually do this and have it done, you know, maybe by thanksgiving and then signed before the end of the year >> are you a person that believes in metrics? if you put the metrics up in this congress and you compare it
8:26 am
in modern history any first year of a presidency, this congress, want this senate, i foal has passed more bills. >> i guess because it -- obama care didn't get through the senate tax to me is the key to get the economy moving it is a tax cut to the hard-working taxpayers of america. it's a job creation. it's sirp filing and fair. >> what do you atrip the 3% growth to to now that's not arnnual. what do you atrin that to? do you attribute that to washington or the president? >> i'll -- i contribute this just as you watch the stock market every day, what did the market do after the election they saw something optimist because they saw a change in washington look what the president was able to achieve just the regular la toir change in washington. when the agencies create a new rule that reaches $100 million when it's scored, that's a major ruling do you realize we had 82 major
8:27 am
rulings every sing the year for the last five years? a congressional review act lets you repeal some regulation no one has ever been successful but once this president has been successful more than 14 times. >> you made did so simple for you. >> they told you all this. >> i have -- >> outside the country you can see the forest through the trees. >> you have to give the president credit leer. i just came back from puerto rico virgin islands and key west we've gone through some of the most difficult hurricanes, fire -- >> still have dlee -- >> still has 3% growth >> thank you sweo re when we come back, we have some data >> appreciate it >> thank you zar: one of our investors was in his late 50s
8:28 am
8:29 am
right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.
8:30 am
>> welcome back to "squawk box." the latest read on personal income and spending, we're looking for a number up somewhere in the neighborhood of half of 1% that's exactly what the data demonstrates here. up .4. last up up .2 unrevised. if you look at spending, that was income spending up 1% that's actually better than what we were looking for. it follows up .1, which is a strong number. real personal spending up .6 month-over-month up .4 double our last look double still as expected year-over-year deflator up 1.6. once again, even though it's exactly as expected, it's still
8:31 am
a couple of tenths hotter sequentially personal consumption expenditure. is it something the fed looks at yes. month manufacture over-month up .1 that's tame year-over-year up 1.3 that matches last look sequentially i look at the market the last couple of tops have been slightly below and slightly above 240. we've taken them out there's no doubt we may be able to spend some time here. that's the -- it finds the zone. then it hangs out on the street corner for a while to 44. low 240s he it's probably that level. minus 23 in dollar index about a quarter of a cent. you want to pay attention to that in the context amid a strong rally last week becky, back to you >> all right, rick thank you very much. let's get to steve liesman steve, what do you think about all these numbers? >> just sow kn you know, the nu is already baked into the third quarter gdp. the question is whether or not people think that things are stronger going into the fourth
8:32 am
quarter here autohoorz a fresh cnbc forecast for the fourth quarter running at 2.9%. we're going to get the first gdp related data on wednesday in vehicle sales, and we'll start our tracking of the data hopes are high take a look here i want to go through this in some detail. here's the prior two quarters. q1, q4 drks -- that was an average. just about doubled in the past two quarters that is 3% there's our cnbc rapid update forecast for the fourth quarter running at 2.the it continues let's go in deeper and look at the sources of the strength between the two bars on the left there. let's go in and you can see what's happened when you go around, and you see that among
8:33 am
other things, if we can go to et next graphic, yeah, take a look here trade has turned around. some of the effects of a weaker dollar in there. inventory has turned around. gone from a negative you so he that, becky, you with me now it's a positive. consumer spending was contributing 1.7% to growth. now they're contributing two business investment a little bit higher that's everything if you delve into the equipment numbers, that's even better now take a look at the right and see which ones you think will continue i think there's up side for the consumer i think, becky, you already pointed out there's up side for business investment given the trajectory inventories, it's always sort of a mixed bag.
8:34 am
>> they don't say that the stimulus itself is baked in. there's no way to measure the confidence affect here the actual arithmetic -- do you have something i don't care >> it's simulation >> deregulation could be something. the confidence factors whatever you want to call it there's still maybe some tenths or half a tenths to come from potential stimulus from fiscal
8:35 am
policy now done >> the journal is reporting that tax fraud. >> for manafort. >> for manafort. charges including tax fraud. it's unclear what the other charges are. >> all right >> did you see trump also tweeting about an hour ago when that report first came out going after effect tily the obama campaign saying the obama campaign paid $972 -- this is now going to the russian dossier issue. it's all stimulus. this is all happening. it's for the news industry >> steve, thank you very much. let's talk more about all of this growth, tax reform, trump's big fed decision joining us right now is columbia's business school dean glen hubbard, and, glen, thank you very much for being here today. >> my plush. >> why don't we start talking about the numbers that steve and rick have just been going over the growth expectations have
8:36 am
been raised for the fourth quarter. what are your growth examinations for fourth quarter gdp? >> i think we could see growth in the 3% range. maybe just a little bit shy. i agree with what i heard. there is a spring in confidence that's happening we've got an investment that's very encouraging the real question, of course, is about growth going forward >> we definitely need tax reform tax reform is not about stimulus as much as it is about getting incentives right for investments and where companies locate their business corporate tax reform would help
8:37 am
the economy long-term in terms of output and wages. that's the reason we do it >> glen, i'm going to go with whatever you say in the argument that i have been -- the debate we've been having here on set. if you say it's true, i'm going with it. is it possible that the recent numbers, the recent data, is upwardly shifted by confidence, deregulation that some of the business inventory -- -- sorry, business equipment spending, some of the confidence data has worked into the gdp already. >> i think that the confidence has. i talk to business people. they mentioned regulation. they mention generally a more pro-business attitude. i don't think a lot of the tax work has seeped in simply because the tax bill is quite uncertain. whether or not it passes as is uncertain as well. >> how much upside do you see to the economy as a tax bill as currently written passes congress and is signed by the president? >> i'm not enon sure what currently written means.
8:38 am
>> it's probably about the best single thing >> the president has said he will announce his nominee for the next head of the fed who do you think it should be? >> look, that's up to the president. i mean, i think once he makes his choice this week or whenever, the questions turn to what the fed needs to be doing what's normal policy what's its role in regulation. how does it remain independent those are the big questions. i'm sure the president will make a fine choice. >> if it's jay powell, who i guess most people will have him picking at this point, at least, what will that mean for the trajectory that the fed takes starting in january? >> i think jay will be a very good choice. i have known him for about 30 years. worked with him on multiple occasions. i think he is very pragmatic he knows financial markets very well he is very good at building a
8:39 am
consensus on the fomc. i think he would be a fine choice >> we have a couple of market guests here today who said if it was jay powell, they expected, that it would be more of the victim and the market won't be surprised. that would be sort of continuity is that your expectation as well or your read of it >>. >> a lot of the people that said this three is not possible anymore because of population and productivity let's say it does happen do you think they can then come back and say the obama administration had us on the cusp of 3% and global growth was
8:40 am
just about ready to start, and this was to be expected anyway do you think that they can say that with a straight face? i think they're already starting that that's what we're going to hear. >> the economist role should be closer to the golf channel than the nba. i would say they should stop the jargon smackdown >> all we get is a golf clap for 4% i would rather have an nba dunk cheer than -- >> the smackdown is what he is saying the political smackdown. >> it's the smackdown. you need to look -- by the golf channel, and i mean no apurge o ones to golf it's time-consume and slow-moving. we need to be focused on the long-term. we can grow at 3% in the long-term. >> they said we couldn't ever again. >> they're wrong
8:41 am
>> we were ready to do it thanks to the stimulus in 2007. >> okay. thank you, glen. great to see you, sir. >> when we return, former trump campaign manager paul manafort has surrendered to shorts. the "wall street journal" reporting the charges include tax evasion. a live report from washington. [vo] quickbooks introduces jeanette
8:42 am
and her new mobile wedding business. at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed and-ta-dah-paid twice as fast for free. visit quickbooks-dot-com. today, the new new york is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov.
8:43 am
to grow your business with us in new york state, my name is jamir dixon and i'm a locafor pg&e.rk fieldman most people in the community recognize the blue trucks as pg&e. my truck is something new... it's an 811 truck. when you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you don't hit them when you're digging. 811 is a free service. i'm passionate about it because every time i go on the street i think about my own kids. they're the reason that i want to protect our community
8:44 am
and our environment, and if me driving a that truck means that somebody gets to go home safer, then i'll drive it every day of the week. together, we're building a better california. >> coming up, a live report on the breaking new story former trump campaign manager paul manafort has surrendered to authorities. we'll be right back.
8:45 am
8:46 am
throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise
8:47 am
>> at that time it wasn't clear how valuable the deal really was. julie borestein has more on the disney-star wars saga. good morning to you, julia >> good morning to you well, it was five years ago today, and since then, that $4 billion investment certainly seems to have paid off for disney now, since the media giant purchased lucas film back in 2012 it's released two star wars films. together they brought in over $3 billion in the global box office the force awakens is still the third highest grossing movie worldwide of all time. and there are more movies in the works, including the second installment of the trilogy coming up in december. the last jedi. it's projected to bring in at least $1 billion globally.
8:48 am
snoo those shows and other relate content could be reviewed on the direct consumer app, which is launching in 2019 now, disney hasn't an even bigger commitment to star wars at its parks it's investing in bill yobz of dollars of each of the new star wars lands, which are set to open in 2019 it's centered mainly around the lucrative star wars franchise, and the film also includes indiana jones which disney plans to reboot with a film schedule in 2020. over to you. >> julia, looking forward to that wonder what do you -- in the next 20 years, how many more
8:49 am
star wars films do you think countless. endless. >> yes, because now they're coming up with every single -- >> the force will always be with us >> do we have one a year >> probably one a year >> here are the futures right now. we'll be right back.
8:50 am
because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital. gglobal bonds, and high-dividend strategies. sure, these are investments. but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more.
8:51 am
8:52 am
jim cramer joins us now. market -- i don't know if that makes you a little sad but i guess you're still on a high probably everybody is talking the best -- is it? they got to play dallas twice still, right and dallas looked pretty good yesterday. >> you know, the federal courts have to intervene in our behalf. i think what's crucial is that we got to get to that judge. you know, honestly, if this thing is -- if zeek isn't playing, i think it's the equivalent -- there will be like the skins yesterday which was a complete fallout >> will you go to dallas for that game? >> yes >> i figured you would.
8:53 am
>> absolutely. >> absolutely. >> what should we be watching this week? a lot of earnings coming this week friday was unreal with amazon. >> oh, my. i mean, one time joe people would have said it's a blowoff but all of the companies have earnings you're dealing with companies that are just putting up unbelievable numbers, it's not 1999, the earnings are fantastic. and i think when i look at what's ahead, i mean, apple, facebook, they've run up a huge in advance, let's see if they can pull it off. maybe they can apple, there's talk that apple's demand is too great for the 10 and can't meet the demand. these are all positive things. >> so i guess at 53, bezos at 95 billion, we talk about an individual will be worth a trillion dollars some day. >> he's a country. he's a country
8:54 am
>> that's not out of the question. >> bezos is a country, a well run country with a really good budget i mean, i would like to join bezos nation. >> and doesn't he have more than most countries think about it this guy -- i don't know how he can raise -- he can raise taxes on prime. >> technology, logistic stiystes and space program. >> he could be worth a trillion dollars some day. >> bigger than rhode island. >> delaware. >> think of what states he's bigger than? >> definitely bigger than delaware >> we like viewers everywhere though >> jim, we will see you -- got to get past denver first, but they are beatable. >> i think so at home, we'll play at home >> when we return, stocks to watch ahead of the opening bell. let's begin.
8:55 am
yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling
8:56 am
twirling cards e*trade. the original place to invest online. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter.
8:57 am
morgan stanley >> third quarter earnings seasons tend to be good for stocks the top sectors a month late he, tech, consumer staples and health care. >> some stocks to watch this morning, cvs health talks with anthem and united health on a path on a bid for aetna. they have been examining several different deal possibilities for about six months novartis is offering to buy
8:58 am
advanced acceleration for $82 a share. it's valued $3.8 billion the tie-up would strengthen its on koelg business and advanced accelerator shares are up too. ge's board was reportedly kept in the dark about the company's practice of flying a spare business jet the executives didn't tell the board until this moo following a report in the paper. also reportedly weren't aware there had been an internal complaint about the practice several years ago. last week immelt himself told the journal that he wasn't aware -- >> how does nobody know what's going on >> that's hard -- a couple of times took off 19 minutes after he took off. he said if he had known, he would not have allowed it. i don't know the denials are --
8:59 am
>> seemed to happen repeatedly talked about going to anchorage. >> used to happen domestically then it was on some of the long haul flights i guess you know, ge's ceo is required to travel private for security and for other reasons. >> and just timing wise to make a lot of these things happen. >> exactly and i don't know -- >> when do you think this began? >> that's all outlined in the journal piece today. some of it -- i mean, prior to immelt whether it was going on -- that i don't -- >> who makes the decision that this is something they are going to do? >> and some of the -- it was empty and that raised eyebrows -- >> made up names, jeff roberts, roberts something or other i don't know and they were privy that it would look bad at private airports if someone saw it and tried to keep it below the radar so to speak. >> we're going to do it real quick. maybe we're not, we don't have
9:00 am
time. >> what was it about >> google and emojis for hamburger. apple or google? there's a big debate going on. >> definitely cheese on top. >> where the cheese is loektded, cheese above or below the burger >> now we're out of time. >> it's 9:00 >> we've got to go >> andrew and the desert calendar for 2018. make sure you join us tomorrow "squawk on the street" is next ♪ >> good monday morning, i'm carl quintanilla along with jim cramer and david faber earnings and tax legislation and potential fed chair and maybe charges from special counsel mueller, more on that in a moment europe is mixed and bonds ar

31 Views

info Stream Only

Uploaded by TV Archive on