Transcripts For CNBC Squawk On The Street 20170908

Follows the release of the white paper from his Firm Yesterday on Procter Gamble in which they have a 3. 5 billion stake. Lets see if we had set up for what appears to be a lower open at this point. The broader averages down ever so slightly. Things were mixed to a certain extent some what mixed action there as for euro zone indices, they have been done and you can see again mixed because i like to add germanys dax is up ever so slightly the ten year note yield has been the story for the entire week and it still is at 2. 05. Of course pressuring equities when you think about the financials theres wti and brent. Lets get to our road map this morning. It does start with that hurricane. Hurricane irma bearing down on florida and government Officials Say it will devastate the United States. Plus that massive data breach equifax reporting a cyberattack potentially compromised the personal data for nearly half of all american adults. And nelson peltz unveils his plans to shake up Procter Gamble hes going to join us later to discuss. Hurricane irma has been downgraded to a category 4 but irma continues to be a threat that is going to devastate the United States in either florida or some of the southeastern states where do we stand now. We are going to be seeing a very very strong storm. Its only a few Miles Per Hour in regards to winds away from a category 4 so even though theres the talk of it being downgraded its 150 Miles Per Hour winds. Its going to continue to move over warm water as it moves at about 16 Miles Per Hour thats going to fuel the storm. Its going to be at least a category 5 storm as it continues to get closer, category as it makes land fall. Timing here today and saturday for the bahamas and cuba sunday morning, late, overnight saturday night while people are sleeping into sunday morning florida keys and south florida sunday night into monday Central Florida and monday into tuesday for south georgia and conditions will deteriorate ahead of this with winds picking up throughout the afternoon and evening tomorrow sarah. Thank you very much well continue to check back in with you meantime thousands of flights have been cancelled in anticipation of the hurricane. Morgan has more on the south Florida Travel situation ahead of the storm more than 200 flights have been cancelled ahead of Hurricane Irma we are heading west on i75. People are scared and many of the evacuees we have spoken with dont know where theyll end up. We are going to drive to newport and hope for the best. We packed up our five cats and dog and were driving up the west coast so wherefore it takes us theres no hotels anywhere. So their cars are filled with prie points high possessions and extra gasoline and their four legged friends. Based on our journey so far it would seem that perhaps many people had heeded the warnings of officials and have gotten out of town early but were just Getting Started on our trip. We still have to head north and well be reporting to you the latest in terms of the conditions out here as people evacuate throughout the day. Back to you. Morgan, thank you its unfortunate were having you on so often george given all the disasters that have come our way. He joined us often after harvey. Tell us what preparations if any would be different in terms of what we have discussed in the past from the response with fema and harvey particularly as it relates to wind versus flooding. Well, two things. One you have seen textbook preparation by local and state officials to get the word out to warn people and, you know, were into a very high tempo evacuation but the challenge that the state and local responders and the federal government is going to face is the nature of this storm is dramatically different from harvey in that its got high winds but the potential for devastation the high spread given the current track of the storm. Thats obviously not good to hear but why do you believe the flooding will be similar to harvey nobody is talking about 40 to 50 inches of rain, are they no but the key issue here is the storm surge and when you look at both florida and texas its different but look whether you have 2 feet or 5 feet of water in your home it causes very significant damage and so from the standpoint were not going to see a storm that stalls over the florida panhandle, or over florida for an extended period of time and dumps 50 inches of rain but you have the potential for significant storm surge but when you combine that with the destruction of the wind the damage could be much more significant than houston the last couple of weeks. So how much more complicated does that make the preparations . And how prepared can be be to prevent widespread damage . Its going to be difficult but the utilities have gotten good after hurricane andrew and i was down there after hurricane andrew in 1992, they put in a series of plans and they have been moving resources to preposition the resources but look youre talking about the potential for tens of millions of people to have their power impacted youre talking about 150 Miles Per Hour winds youre talk about having to completely rebuild portions of the electric infrastructure thats going to be time consuming and have an impact on recovery and the economy. George it seems like femas funding is going to be replenished here by congress but is there a chance they could be stretched a bit thin here . Youre going to be fighting a two front war with the harvey response and the southeast as well theres a great question and the short answer is no because femas role is to coordinate the federal government assets to support state and local government look theres about 4 million federal personnel. So what i would say to you is that there is an Emergency Management assistance compact that was put in place after hurricane andrew that will allow other states and communities to share resources with florida so i dont think people to do Response Operations or to do recovery operations is going to be the issue the big issue that were going to be confronting really over the longer term is whats the economic Ripple Effect make sure that there were sufficient tools for people to get out of the evacuation area now you throw on top of it miami up through Central Florida and we dont know how far the significant damage will extend once the storm makes land fall youre talking about very high concentrations of population youre talking about a number of homes. A lot of businesses being effected and frankly we have a limited supply of Building Materials at any time in this country and when you have a twofront war as you talked about, a two front storm if you will, we should expect it. Were going to see difficulty in getting all the supplies that are going to be needed both to do shortterm recovery but more importantly longterm rebuilding. In terms of the rebuilding and the cost, we have been covering the harvey damage the fact that its flood waters we dont know the storm surge for irma but the wind damage factor, doesnt that change the economics of this when it comes to insurance clean snup. It does it changes the economies particularly for the Insurance Industry because private insurers are not going to cover flood damage thats what the federal Flood Insurance program is for but in this particular storm theres going to be a very significant amount of wind damage typically covered under insurance policies so florida has target provisions because of previous experiences like hurricane andrew and this could represen a very significant hit on the major insurers in america. Not just in florida but up through georgia and further north depending on the final track of the storm in 1989 it devastated charlton but people forget the level of damage hundreds of miles away up the road in charlotte was very very significant. Thank you as always we appreciate it and i have a feeling well be speaking to you again in the not too distant future. Good to be here. Still to come on the show, equifax shares taking a hit here in the premarket after the company last night revealed a massive data breach. The ceo issuing an apology. Also ahead that exclusive with nelson peltz on his push to shake up Procter Gamble and gain a board seat and boost its performance and futures here ahead of the opening bell, dow down 25. S p down 3 the big story in the marks, u. S. Dollar at the lowest level since january 2015 well definitely talk about re sawonhetrt moquk t seewhen we return. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at Td Ameritrade. For years, at t has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at t. We do business where you do business. Reporting a massive data breach that exposed the personal details of 143 million americans. It discovered the breach in late july and didnt reveal it until yesterday and preexecutives that sold shares were aun ware of the event when they sold it is working with Law Enforcement agencies and is offering Free Credit Monitoring Services the ceo said this is a disappointing event for our company and one that strikes at the heart of who we are and what we do. I apologize for the concern and frustration this causes. I think that some people can get the constant stream of breached news but this is one you Pay Attention to. Well, especially that part of his statement saying this is at the core of what we do its not target or retail or whether its a data breach, its a data company that deals in personal information some of the people are trying to spit ball a total cost potential on t you know, par of home depot and target 300 plus million which is 10 of revenues annually for equifax but those were different kind of breaches. One problem is the amount of personal information that is available to your Credit Reporting Agency which most likely all of us potentially at this desk. Names Social Security numbers, birth dates, addresses and in some instances drivers license numbers all compromised. That feels like an escalation. What is being done with that it could be used for identity theft. Often times we see thief fwves t one place to get another part of that and another to get another and another to put it all together its all available in one potential place you have to wonder why in the world they did not either recognize the breach sooner, we can always ask that after the fact and or have better defenses. In terms of trying to scale what the ultimate liability is going to be are there standards where a company should have certain defenses or should be expected to meet some kind of standard for disclosure or how you prevent Something Like this and was it a really coordinated attack who was behind it. Theres the criticism of the country and questions around the stock sales by executives before this was revealed to the public and just for Consumer Impact they do provide website equifax security where you can go on and put your name in and Social Security and see if you were effected by this the fbi is looking into it this is going to be a big one. Yeah. Mike any other ancillary impact here thats the question you can have people attempt to use this. Already you have people like senator mark warner thats the democrat saying we might want to look at how the government helps protect data and whether Congress Wants to rethink all of this on Cyber Security panels. Watch for fall out still to come an exclusive with new york fed president bill d dudley thats a member of the fed. A lot to be discussed there and the future of this fed but first nelson p efreltz joins us to dis his proxy gamble a final look at futures here into the opening bell. S p futures down 3 dow down 23. More squawk on the street live straight ahead people dont invest in stocks and bonds. They dont invest in alternatives or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful can happen. Those people might just get what they want out of life. Or they could get even more. What they want out of life. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Can i get some help. Watch his head. Im so happy. Whatever they went through, they went through together. Welcome guys. Life well planned. See what a Raymond James Financial Advisor can do for you. Still to come on the show nelson peltz after unveiling the 9 page white paper unveiling his strategy for improving Procter Gambles performance. He wants a seat on the board also kroger on the move this morning. Lower after reporting earnings were all over the cincinnati based companies. The opening bell is Just Moments Away brap some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. Experience amazing. To err is human. To anticipate is lexus. Experience the lexus rx with advanced safety standard. Experience amazing. The opening bell for this friday wrapg ping up trading wil ring about five minutes from now. Theres an argument to be made that the big story of the week has been well your beloved dollar and the u. S. Treasury and of course the impact on financials was seen yesterday. That rotation that you have talked about. And related by the way. The weak dollar t lower treasury yield trade is all connected and both of those things have been very correlated with Stock Performance in the last 8 or 12 months which isnt always the case throughout history wbut ha been now so far the overall market is able to pick it up with the big tech stocks. Also like energy and retailers and the airlines so its trading back and forth but its really a subdued feel in yen rahgeneral e market. January 2015. The yen rallying big today. Its not only the euro. Its a dollar story and its going to be helpful. Its surprising people the magnitude of the decline we have seen so far this year. Way more than 10 depreciation and theres a lot of factors behind it that we can talk about influencing the markets. This idea that the market doesnt believe the Federal Reserve will raise Interest Rates in december. Money always changing yields so that hurts the u. S. Dollar maybe some growth from some of these hurricanes that were seeing the trump factor and the fact that there was so much excitement after the election for this progrowth agenda drove money into the dollar. Thats unwinding thats the great thing about currencies all of those things can be why the dollar continues to be under pressure but it is good news but multinationals are just starting to feel it in their earnings. I can think of plenty including one with nelson peltz that will be ben fish yars efic the weaker dollar. Its always when the dollar is strong. Due to the weak dollar. But never with the wind at their back. No but it should be a prop to 2018 earnings estimates right now for the next couple of months and stocks in general benefitted from that in dollar terms the rest of the world has out performed but u. S. Markets have done okay because of weak dollar. The other question is the federal vefsh and the make up of the federal vefsh. Stan fisher maybe slightly leaning toward a hawkish position in terms of raising rates and moving into normalization. Four vacancies this fall continued reports and concerns about who sit going to be. I dont know how much concern there is in the market but that bloomberg report that theres six contenders and its not a two horse race ultimately names glenn hubbard, john taylor, academics, also former business men like allison, john allison. Yeah, there was a lot of people think that the president likes the ceo type and would consider those as opposed to an academic which is why he may have favored cohn for awhile until he chose to speak out grae gue aggressively. I wonder what his status is and whether thats a market risk remember when there were rumors he was going to step down. Market didnt like that very much. Cohn in general maybe he is under pressure now. Every day were getting that rumor now. Of course the president tweeting this morning that republicans must now immediately get to the tax reform part of the agenda dont wait until the end of september. I believe this comes after he had dinner with paul ryan last night so thats the talk but youre right, cohn has been the face of that effort along with the treasury secretary and whoever these new voices are on the fed theyre going to come in in a heat deed debate about whe inflation is look we have to see something structure going on here. Not just cyclical effect that does seem to restrain rate hike ambitions also going to be a great deal of focus on irma as you might expect and continuing to weather that storm of course the financial one, the one that well be following so closely. Theres the opening bell for this friday. The s p. Back at hq, a bit more red on that over here the Energy Company celebrates its 67th anniversary over at the nasdaq acorn thats a specialty Generic Pharmaceutical Company that does the honors and immediately my eyes are drawn to the financials not much to tell at this point though again yesterday they were the leaders. Well also get to media in a moment and talk about the damage that was done there because it was really significant also. I do think that, you know, the hurricanes, even though its not obviously mainly a financial event its contributing to the subdued attitude out there we dont know what the damage is going to be. Youre already seeing economists taking down Third Quarter gdp estimates. Gasoline prices going up we have a lot of business disruption and even though thats not something out into next year its one more thing restraining this economy from kind of accelerating from here. Im going to be watching kroger today because that is the nations biggest grocery chain outside of walmart reporting earnings the stock is under pressure this morning going through some of the results, you know, the bt tom line was a match. 39 Cents Per Share top line was actually a little bit of a beat and so are the sales that are basically same store sales for kroger climbing z. 7 . Analysts were looking at. 4 what was days pointing about this is number one kroger said theyre not going to offer any longterm guidance anymore theyll continue with annual guidance but because of the environment that is fast changing and people taking away from that to mean the price wars that were seeing already from walmart anticipating from the amazon whole foods deal that thats going to be hard for kroger to try to forecast. The cfo saying we dont want to make any bad decisions that would lock us into meeting that guidance so that was a bit of a disappointment also kroger reduced its 2017 and 18 plan Capital Investments by about 600 million to maintain its Investment Grade rating so there had been concerns going in about the Capital Position and clearly kroger is making moves to sure that up but a little bit of grocery inflation and continue to tell this story, a big footprint. 2,800 store which is is interesting compared to what whole foods owns when compared to amazon and a Loyal Customer base that they understand and some online delivery efforts. Interesting in an environment like this they would be cutting Capital Investment to a certain extent to maintain Investment Grade. You have to wonder whether its worth taking a little bit more risk to make those investments in this environment. They have added that. The Balance Sheet is not really letting them have as much flexibility as they would like and they have a very big pension liability overhang. Which is why they were not in any position. Hopefully in the first place. On the operating side maybe you can see some slight in terms of how comps are going. I do think that sentiment is also a factor here everybody has been bearish on this group not just kroger but target, any grocery player after the amazon whole foods deal closed. We talked to the ceo of kroger just after that deal broke we asked him what his reaction to the deal was and whether he was as scared as some of the investors are. Heres what he said. For me it wasnt as much of a surprise as it was for others. You know, you can tell that amazon wanted to do something from a physical asset standpoint and i think whole foods is a great fit for them. Even said it was a great fit for them so theyre, you know, thats been the narrative. Sure. Theyre not scared of that and the cfo repeated that. They have been in this business a long time. They expected the consolidation to come and theyre going to fight graeaggressively and the profits were down 8 and they have to discount heavily to match this price war theyre getting from walmart. Kroger doesnt hear whole foods across the street in most of their markets its a walmart story and to your point about sentiment, sarah, people hate the super market so much that you can make the case that walmart looks overvalued given how much grocery poeexpose is there its kind of interesting. Get to media and the faber report this morning. The sell off that got a lot of peoples attention yesterday was lead by our Parent Company comcast which had an investment conference, a gentleman named Matthew Strauss for Comcast Cable basically said the following about the quarter, he said this quarter is probably been one of the most competitive that i have seen in recent memory where you have distribeau tors increasing their marketing spend being much more aggressive with their offers. That was enough to send comcast shares down over 6 yesterday. They are currently down another 1. 4 right now the concern though, the news exacerbated by the concerns of cord cutting which have taken so many investors to the media landscape whether it is the distributors in the case of comcast or the providers of content themselves some of whom are seemingly no longer a key position if they dont have the content that everybody wants and they wont be carried on the proliferation of over the top conglomerations that we see these days Star Wars Film rogue one didnt do as well as the year previous. The bamtech is costing us a bit. And the hurricane opposed to thy cutting the cord and going over the top. They have come as strauss said to a level in pricing that is simply not one that comcast wants to match it is our Parent Company some of us own the stock do want to make sure that people know that and it still had a descent performance this year but this Company Stock was up 18 and now its up 9 for the year. It shows how traders investors are with regard to the entire group but also because the story had been they were outperforming the industry when it came to retaining video subs and all the rest of it so this disturbed that idea that they could kind of ride it out. I do think the competitive part of it is kind of not going away. Even smaller ventures like tmobile giving you netflix and this whole idea that portable tv is going to be work against what was a very comfortable economic model for a long time its hard to know when that changes. Any similarity leading people to have questions when it comes to charter well be following that closely as altice continues to try to put together not just the debt its the equity important there and softbank continues its effort there as well. Well see if we have news for you in the next weeks there. Lets head to the bond pitts and check in with rick at the cme group in chicago. Good morning, whether its foreign exchange, whether its Interest Rates of course theyre married together in the differential but theres so many different strat justice and reasons for strategies our treasury yields down because Global Business is down. The problem is history with reforward to what moves different markets its difficult to switch lanes into a mode where a lot of these signals are not just as good as they used to be many, many say rates are down because its telling us that the economies are going to get soft. Maybe thats true and maybe it isnt but it seems impossible to make that statement without acknowledging that Central Banks could have any rate on the long end they want. Just open the door and let the securities out rates will go up but most of all, if you look at a one week chart and intraday of tense what youll notice is yes they have gone down. We settle at 244 last year were down we made it up to 260 plus for a double top weve gone down. Its all highly correlated so what is exactly driving it we could debate. Now if youre looking thats where the action is. Look at the euro versus the dollar the euro versus the dollar going back to the beginning of 2015. Just about the first day you see on this chart starting december of 14. The flip side the dollar index you realize the dollar is at the weakest level. The strongest level since april of 2016 but most important of all, think about this action what it does for trade the yauan strengthening. Its a trade issue with europe and japan and the euro dollar effecting things like the Auto Industry but think about north korea. Maybe thats on the training floor. Back to you. More on what is moving this morning. We started the week with north korea being the key market talker but the conversation has quickly turned to Hurricane Irma and the other natural disasters. The dow off 33 points theyre down about 3 of the week. And now about 2. 06 theres high yield bond attracting inflows of more than a billion dollars in the week of september 6th on this renewed appetite for yield now on track for the worst week in four months on a record run against the dollar up 6 this year lastly gold now trading at the highest levels of the year back to you. Seema, thank you. When we return, nelson peltz making his case for his strategy to improve Procter Gambles performance and why he says he deserves a seat on that bod. Keep it here on squawk on the street their experience is coveted. Their leadership is instinctive. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. 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. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Dad molly, can you please take out the trash . sigh dad molly trash whoo mom hey, molly . Its time to go bell ringing class, lets turn to page 136, recessive traits skip generations. Who would like to read . molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. plan to boost growth and performance in a 94 page white paper this week. His firm proposing changes in the organizational structure and calling for peltz to take a seat on the board the Company Fought back on this one and joining us now on the phone is nelson peltz thank you for calling in. Good morning. Good morning to you back. Now there was a lot here to chew on if theres one take away you want p g shareholders to have from your report, what is it look the most important me trick in the consumer space is market share and thats vital and today the markets look at market share almost even more importa importantly and people dont even Pay Attention to their eps and ill tell you that the hardest thing to do in the consumer space is to regain lost market share its one thing to get a consumer to try your product and hopefully like it. Its another thing to have a consumer try your product, use your market and then have another company give you something that you like better and switch its really hard to get you to switch back. The company concluded that approach would reduce profits and added layer of management complexity they looked at it among other options. Are they wrong they are. Absolutely wrong what you have you have so many people today that need to be inside the gbu. You have a Global Business unit you have ten of those. You have six smos which are sales, market organizations. And theyre separate they will tell you that they work with one another and the president of the smo and there are six of them. He is not reporting to the gbu the globalbusiness unit. Our goal is to have three stand alone local business units, a very lean Holding Company above it and then inside that gbu. All reports, all sales and marketing, all functions report into that gbu and its geography because thats where the action is occurring today you know its local brands and its brands that have some emotion attached to it that have some value and im not talking about price, that are good for the environment or organic and theyre a local platform with local brands and they dont know how to operate with the small brands and the small brands are taking market share if you look at the slide we put forth that shows that p g is losing market share. We started on one bar graph in the lower left, 2011 to 2017 where p g was growing at 14 and the market at 28 and then you look at when david taylor took over p g was growing at 3 and the Market Growth at 7 now its hard for these big guys, the peers, to compete with the digital competition. But p g is losing significant market share to both and our structure will enable p g no, on your structure they say its a precursor to the break up of the company. Call it your cookie cutter plan. They can say whatever they would like, we point very very clearly that we are not suggesting the company break up. We want to run smaller businesses and compete today in a very changing, rapidly changing environment. What is your response to that my response to that is very clear. They can do it and the ceo job is to urge them to Work Together but i want to eliminate a cross center distribution. I want it to become a Profit Center by having it report down below inside the gbu instead of being a function which is just the cost center and nobody is watching the cost and when you run a function, david, the only power that you have is more people its not the power of p and l because you dont have a p and l. Nelson, when you began this interview with us you cited of course your experience overall, you know, they make the case that youre experience is limited to food and beverage companies. And while this has been a fairly civil battle so far they did say the Board Management talked to directors and ceos and others worked with you and positive recommendations were not forth coming saying several people would only speak candidly about their experiences with you if those discussions were kept confidential for fear of retribution and concluding it. On the boards that i served upon there have been 14 ceos and or chairman. No one contacted us. Okay so thats just not true. If they spoke to a random director here or there or they didnt like the suggestions that i made, thats fine. But go to the ceo and the chairman we went to every one of them 13 out of 13 and not one was contacted. You know in mid ma. And usually we would give the company a preview of it. Well from that date in mid may, we asked to meet with all of the directors in total together in groups were willing to travel all over the place. May, june, july, august. We met with jim, we met with david taylor, ween went once and we spoke to angela on the phone. Why do you think that is . Why do you think the company is spending so much time and money and resources to fight you for this board seat . Theyre making it sound like its me verses the board in reality it was me coming on the board with one seat, okay . Because we said that the man or woman that i would beat to get my board seat, my first action on that board was to renominate them immediately so were not even going to knock anybody off the board. Listen its a strong argument to a certain extent, this idea of why not your focused on the past and dealing with the past and you want to measure us in ways that are not fair when it came to dupont for example and your battle there you actually said well it has to be measured on the tenure of ellen coleman. That being total shareholder return and stuff like that Procter Gamble would say why arent you measuring us on the tenure of mr. Taylor as opposed to going back as far as you are. Is that a fair criticism no. The stock is down, was down year before david took over 31 . Their tenure and psr versus the peers. There isnt one positive number except for mrs. Chang that just got out in the last couple of months everyone depending upon length of tenure, everyone is bigger and bigger and and under those gbu heads its regions and geographies and countries that report in and thats where the action is today and thats where theres Decision Making and thats not happening and you look at whats going on today at gillette they. Lost 10 of the market in gillette whether its mack or whatever the fusion whatever they were obsolete it and come out with an old new line they did that every 8 years. You tell me what its been almost 13 years and theres no new product that we have seen coming from gillette and weve only seen 10 content loss theyre very intelligent people and theyre well spoken and they have written us beautiful memos on what needs to be done. We have chosen to work he left a highly respected guy concerned about the retirees. Were up against the clock and you have meetings too so final kwex what are you hearing from investors about how this vote is going to go and what are you going to do if you lose . First of all, i dont know how to spell lose. As david pointed out with dupont, that was just a set back. You won the war you won the war without a doubt. You lost the proxy fight. Exactly we are hearing thank you for getting involved all right well see which way they vote. Thank you for calling in well let you get back to your meetings for making your case. Nelson peltz ceo and founding partner. Its 10 00 so we have Economic Data crossing the tape lets get straight to rick for the numbers. We have our july read on wholesale inventories and trade sales. On the inventory side up. 6. Thats a pretty good number and takes out that mid july read of. 4 which means we now have 3, 6, in a row. Yes we have may, june, and july all up. 6. To find a higher number you have to go back to november of last year when it was up 1. 1. Now trade sales is down. 1 were expecting up half of 1 . Sequentially following. 6 so it isnt looking good there the sales site is quite important. Building widgets for inventory is one thing but if they dont sell thats not a good thing thats kind of the way this report is look sarah, back to you. All right rick, thank you very much. We want to welcome you here to squawk on the street michelle has joined us welcome. Dow remains positive financials got hammered yet. Wti crude down a quarter of 1 which is weighing on some of the stocks, david. Lets get to our road map this morning lets start with Hurricane Irma heading straight for florida well take you there live as preparations for the storm are well underway. That historic cyberattack equifax exposing 143 million americans to identity theft. We have the latest. Plus the largest u. S. Super market kroger getting crushed. Investors worrying that a price war will chip away at the companys profits. Coming up a few moments from now another big interview for us steve is sitting down exclusively with the president of the new york Federal Reserve. Bill dudley in a few minutes. Were keeping a close eye on Hurricane Irma its the most powerful atlantic hurricane on record being downgraded to a category 4 wind speeds are slightly decreasing closer to 160 Miles Per Hour the death toll reached 12 as irma heads straight for florida. First of all lets get to wmaqs meteorologist. She gives us the latest on that path of storm. Still a very strong hurricane category 4, just on the brink of category 5 so taking a look and talking about it downgrading lets just not go into that at this point if we look here at the track, its still ontarget to go toward south florida by early sunday morning as a category 4 storm at least i wouldnt be surprised if we even see it intensify a little bit throughout the day today well see fluctuates between now and land fall on south florida 150 Miles Per Hour winds at this point its going to move through some very warm waters. Now as it moves closer to florida lets look at this as we go into the day on sunday well see some of the strongest winds in the northeast quaquadrt so from miami up toward Fort Lauderdale if it takes the track it looks like at this point. Those are going to be where the storm surge is going to be the highest. Its going to continue to have really strong winds well inland at this point. If youre thinking i cant see the ocean from my house, you still need to make sure that youre preparing and if youre in south florida evacuate. This is not hype at this point we need to prepare for the worst. We will have a better idea of exactly where this storm is going to make that north turn which is huge in regards to where exactly it makes land fall well have a better idea of that as we go into saturday morning. That will be a key. Thank you. Now lets get to jackie in Fort Lauderdale she has more on how that part of florida is preparing for irma this weekend jackie. Good morning to you david well the fact that this storm was downgraded to a category 4 hasnt really comforted the people on the ground here. Its still expected to be massive and they are preparing some have certainly left town but others are saying. You can see at this gas station last minute preparations are being made this is the gas line, about 12 cars deep right now. Thats a short line. The impression that were getting from talking to people is that either they have left already or theyre staying and if theyre staying they have most of their preparations already in place and theyre getting ready, really just to weather through this storm here. This someone of the only gas stations that we found that was open this morning they got an extra shipment of gas. They had about 10,000 gallons and they told me that by noon they may be out of gas one lady was here complaining they didnt have super and she wouldnt take regular rather to be safe than sorry some peoples priorities are a little confused. I want to show you across the street that you have a mobile station boarded up for the last couple of days and thats the majority of gas stations that youre going to see right now. Whats interesting regular gasoline is 2. 69 a gallon thats a little bit higher than the National Average right now according to aaa i have not seen any instances of price gouging but people have been telling me they have been coming across it and the mayor of florida warned that is occurring and you should call a hotline if youre in that situation. Right now everybody has been pretty calm and they have been good to each other on this gas line people are being orderly. Taking turns not cutting in front of each other. Not honking horns but of course as tensions rachet up and people are nervous here, the dynamics could change later on into the day. Last thing i want to add we started to feel a little wind picking up that sort of outer band possibly of the storm and just moments ago before we came on camera the showers started. The first rain that i have felt since i have been down here and im sure theres going to be much, much more to come. Back to you. Still looks sunny though. Jackie, thank you. Sunny at the moment. Sunny at the moment yes. Lets send it over now to steve who is up in new york Federal Reserve sitting down with a very special guest. Steve over to you. Lets pick up with the impending impact of this massacre we just had harvey massive potential for damage for irma how do you think about the existing damage to the economy and the potential damage first the human toil and all the people that are going to suffer from harvey and irma and then if you back out from that and think about the economic consequences, first consequence is it actually pushes down Economic Activity because it disrupts the ability of people to do their business also tend to push up prices. We saw in Hurricane Harvey a big increase in gasoline prices but those effects tend to be pretty transitory it lifts Economic Activity because you have to lift all the things damaged by this storm when we think about the impact of the storms its going to make it difficult to read the Economic Data over the next few months because its going to be hard to know exactly what the data would have been and secondly will end up boosting the economy. Is there a point in which a storm becomes so damaging that the normal rules that we talk about which is this dip and this return dont necessarily apply but the trajectory of this storm looks different. The amount of time could be longer if the disruption is more severe and widespread. Have you parked down your Third Quarter Growth Numbers well probably take them down just a touch because there is definitely some effect on things like refining and retail activity in the houston area especially. That said, getting hit by storms at this point in time the current economy running a bit above trend. Are you overall more optimistic about the outlook on the economy . I fireworthink the underlying trajectory is similar to what its been. A bit above trend and at the margin looks like the economy might be gathering trengtstrenga little bit one Financial Conditions are quite buoyant. The stock market has been firm longterm yields have fallen the dollar has weakened which improves u. S. Trade and the second thing the rest of the world looking better we had a pretty Strong Quarter of growth in the rest of the world in the Second Quarter and so i think thats providing support to the u. S. Economy. Does that cause you to lift them at the margin im optimistic that the expansion is going to continue im confident that its going to continue at the above trend pace and thats why i think as time passes the Federal Reserve will be able to gradually remove Monetary Policy accommodations. You said theyre buoyant and then you said remove those things are work opposite to what the fed would appear to intend, right . Youre trying to make things a little tougher and yet theyre getting easier this morning we have a ten year, i think it hit 202 is that a concern for a Federal Reserve bank thats trying to make conditions tighter and raise Interest Rates in the economy . I dont think it creates a huge problem for us right now because inflation is below our 2 objective i think it allows us to be more patient. Patient with what you have two policy tools. The first is reducing the Balance Sheet and the second is raising Interest Rates are you going to be more patient with both of those because of whats happening i think the Balance Sheet i think thats likely to happen relatively soon. Expectations are were likely to commence with the plan in the near future. I dont see any reason not to do that the market responded to the notion of us taking down our Balance Sheet size gradually overtime in a very very controlled way so i would expect that to happen soon. In terms of increasing shortterm Interest Rates its going to depend on how the economy involves theres cross currents on one hand the economy is growing above trend and that applies we need to continue to remove accommodation inflation is farther below our target than we anticipated and wales have a very easy Financial Condition so i think its too soon to judge, you know, exactly the timing of when the next rate hike might occur but i think the path is still clear that shortterm rates are going to move gradually higher all the time. I want to get to this broader discussion but come back to the storms does the storm harvey that we had with the potential for irma do they have the ability to cause you to delay or otherwise put off the policy tools you want to do i dont think theyll have any effect on the Balance Sheet normalization decision its possible they could have effect on the timing of shortterm rate increases but i think thats probably further out anyway it will be over and well be starting to see the benefits of the rebuilding efforts in terms of boosting the economy. One of the things that is out there is this relationship which is a basis of central banking. Tight unemployment, higher wages leads to higher inflation. Thats not working how skeptical should people be about what the Central Banks think they know the question is what degree of tightness so its possible that the nature of how firms compete with each other and contribute goods and services is putting downward pressure on inflation. That could mean we could allow the economy to run at a lower Unemployment Rate. That would be a good thing and not a bad thing. Stop there. How low . I wouldnt want to make a forecast about where the Unemployment Rate can be allowed to go were going to learn a lot in terms of what inflation does weve seen a number of very low readings on inflation through the summer thats pulled down the year over year headline Inflation Numbers considerably and the core Inflation Numbers considerably is that transitory or is that something thats going to be more persistent. The next three to six months will give us good answers to that question. Were talking about broad policy but of course people make policy and there are, stan fisher the vice chairman Just Announced that he is going to be resigning effective october whats the chance that they could vastly change the policy at the Federal Reserve. You could potentially get a different policy but its important to recognize a couple of things. Number one the mandate for the fed is very clear. Maximum sustainable employment in the context of price stability so thats your mandate and youll probably want to follow a pretty similar set of policies to achieve that mandate as the existing team the second thing its a committee. Its not just one or two people so i think that you would really have to change out a lot of people and those people have to have very different views about how the economy is operating i think. Should President Trump reappoint janet yellen i think she would be a terrific candidate to be reappointed. What about gary cohn . Im going to stick to janet. Sticking to janet now last question i want to ask you, one of the things that the president has been insistent on is relaxing the dodd frank regulations. Jamie dimon said banks can use more of their capital to finance the economy without sacrificing safety and soundness chair at jackson hole said its the regulations that underpin the economy. Can they be relaxed . So i would not want to roll it back on the large Financial Institutions theyre not systemic and dont put the Financial System at risk so you want to be careful about how far you go financial crisis was horrible. It only happened ten years ago i think its a little soon to say oh lets just forget about all the bad things that happened what you want to have is a Financial System thats Strong Enough to with stand substantial shocks and to do that you need add kwequate capital and liquid thank you for joining us this morning. Thank you, steve. So from the gothic temple to money here, michelle back to you. I got the point thank you very much. Well chew on that interview after this break when we come back the massive sign area tack at equifax effecting 143 Million People Social Security numbers addresses and more the stock getting hit hard well bring you the latest details on the hack and taking a look at stocks this hour, the Dow Jones Industrial average higher by 23 points. S p still in negative territory and nasdaq lerow by 16 squawk on the street will be right back dont go away. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats up to 16 times faster than slow internet from the phone company. Say hello to faster downloads with internet speeds up to 250 megabits per second. Get fast internet and add phone and tv now for only 34. 90 more per month. Call today. Comcast business. Built for business. Hackers stole names, Social Security numbers birthdays, addresses and some cases drivers license numbers and credit card numbers. They discovered it july 29th and didnt announce it publicly until yesterday. And in other headlines, the Senior Executive sold stock on august 1st and 2nd after the breach was discovered but before the cyberattack was revealed firms said they had not yet been informed of the incident and had no knowledge of the issue before selling shares worth almost 1. 8 million if thats true you have to wonder about the Corporate Governance of the company. How is it that this existed on such a massive scale and Senior Executives dont know about it is that an employee that didnt want to tell the boss how bad things are either way optics are bad. Correct and not to mention how did they let this much Sensitive Information get stolen how does this happen you did a documentary on this. I did and also the lack of privacy. That was like ten years ago thats why this differs from the breaches we talked about so often and whether it was home depot or target they got it all there conceivably which obviously gives a road map to anybody that wants to create a new identity and get a loan for example. Everybody is going to start to ask questions did you invest enough in upgrading your servers to protect everyone or did you chase margin instead should we get to breaking news now . We have breaking news from d. C lets check in with kayla. Michelle, that vote is happening on the house of representatives floor right now. The vote on the package agreed between the president and democrats earlier this week in addition to extending government funding as well as raising the debt ceiling or suspending it for the next three months. Currently has enough votes to pass 272 to 76 there are expected to be significant defections. And give recommendations for what they would like to see done in addition to this. The budget director, a former member of the House Freedom caucus was making a pitch to republicans on behalf of the administration on why they should vote for it changing teams but that has passed in the house of representatives bachblth representatives. Back to you. Thank you for bringing up that vote. The dow and s p looking to avoid their third negative session and down for the week. For more were joined by Capital Markets chief investment strategist who just raised his price target to 2,600 as well as black rocks Global Allocation Fund management welcome to both of you earlier in the week when the president signals that deal with democrats to avert breaching the debt ceili ceiling i would say that given the fact that were heading toward this deadline mid december we have the holiday of reprieve when congress has to try to get something done. This could be a positive that would force the kids to play better in the sand box together and would force them to get something done so i think its actually a good thing for the markets, you know, the rising tide continues we continue to think that from a stock perspective that the rate is clearly higher. Thats part of the reason we raised the target. Fundamentally u. S. Stocks are in great shape in fact i would think bonds are much closer to a blow off top than stocks for sure. We always think that and then we see yields reach new lows im worried about the credit mark the credit market doesnt appear to be at least when you look at longer term debt worried too much about the fiscal situation. They cant get enough u. S. Treasuries. It does a lot of this is structural. Were used to talk about shortterm cyclical factors and its not that those dont matter but a lot of what is happening in the bond market is for atypical reasons u. S. Rates are lower and german yields have been driving them lower but the big thing we have seen this year thats taking a lot of investors by surprise is despite all the talk at the beginning of the year we have seen a marked deceleration in inflation and as William Dudley said that takes pressure off the fed and off of rates and thats one reason you see the ten year back at 2 . Youre the global asset aloe kay to you mentioned how yields are falling. U. S. Yields have fallen drama c dramatically what does that mean were seeing a couple of things you have growth outside the u. S. , europe, japan, china, the u. S. Still solid outside of the u. S. Not just based on growth but also valuation. Energy companies in europe and select emerging markets. Lets get to sue now for a cnbc news update at this hour. Good morning. Heres whats happening at this hour Hurricane Irma weakened just a bit but remains a powerful threat to florida with storm surges that could reach 10 feet in some places irmas winds dropping to 150 Miles Per Hour a category 4 storm as it moves between cuba and the bahamas its expected to hit southern florida early sunday morning one of the most powerful earthquakes to ever hit mexico struck its Southern Coast killing at least 15 people and tumbling houses and buildings. The u. S. Geological survey says the 8. 1 magnitude quake triggered a series of small tsunamis mexico also has to worry about hurricane katia it is intensifying and expecting to. Killing two soldiers and calling material damage. Its targeted a facility near the western town close to the mediterranean coast. Thats a strong hold of president al assad thats the news update this hour sarah back downtown to you. Thank you, sue. Investor nelson peltz unveiling his plan to shake up Procter Gamble with a 94 page white paper this week as he fights for a seat on the board. I dont know how to spell news what were hearing is thank you for getting involved. That was the end of our interview when we asked him what would happen next and heine is out talking to investors thats a precursor he says they can say whatever they want. Im not proposing a break up of this company just trying to get it to win market share back. They have responded saying we considered those things and we dont think they make sense in part because of Global Distribution a lot of different areas we feel there would be dissynergy to doing that he makes the case they should. This is a tough battle for him he may not be able to spell the word lose but we pointed out many times when you get to the actual numbers themselves, 40 of the shares are held in retail accounts that can make it more difficult for an activist. It will be interesting to see over the next month how things go. He kept hammering at this idea and he has consistently that the dna of the company is big Global Brands and yet they need to be working with smaller brands why isnt he proposing a break up when he talks about these three Global Business units . Lots of critics of the company say he should be suggesting a break up why not go that far . He has not gone there and hes been supportive of the current strategy on the small brands point i would say a lot of the big competitors are pursuing small brands unilever is a good example of this smaller, faster growing brands dollar shave club. They passed on it because they thought it was too expensive. But does unilever do smaller brands better . I think way back to ben and jerrys right it helps them retain market share in a slow growing Consumer Products environment thats probably what you would say the shares are underperfo underperformed and a process that comes with Corporate Governance and p g none of them are in household products they went after peltz for being only in food and beverage companies. Now they all have the ceo experience but its a back and forth. Fairly civil. Fairly civil. A little more personal but they want to try i think the sense is they want to try to keep it more or less civil one way or another they spent 150 million defending themselves we pointed out they have hired a few investment banks. They talk to other people involved. Who wont even talk on the record. When we come back, Hurricane Irma heading straight for florida. Well take you there live. Squawk on the street will be right back stay with us. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Kevin, meet yourkeviner. Kevin Kevin Kevin Kevin Kevin Kevin Kevin kevin kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond James Financial Advisor can do for you. For years, at t has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at t. We do business where you do business. Kate is live with more. This is one of 15 Regional Distribution Centers that lowes has around the country and preps are underway were taking you inside one of the big trucks here. They ship them out 40,000 of these out annually in north and South Carolina as well as virginia and West Virginia but now with the onetwo punch theyre working around the clock to get the crucially needed supplies like generators, waters gas cans and more to stores in florida, georgia and houston the team has been working extremely hard to make sure that our customers have the products they need. Our command center that we activated on august 24th to prepare for harvey has been continuing that work to support irma. So far they sent out about 2,500 truckloads worth of supplies to stores in irmas path you guys can probably tell this place is massive 1. 6 million square feet. You can fit 31 football fields inside and their coo did tell us that the team here really is prepared for storms of this magnitude so theyre working to make sure that everybody gets the supplies they need. Massive and busy. Thanks kate. Lets talk more about Hurricane Irma rick joins us on the phone good to have you here. Good to be with you all. So the viewers that arent familiar with floridas geography youre on the west coast four hours north of miami. The brunt of the storm will be hit at southern florida at this point. Lets see. Still its massive and st. Petersburg is not going to escape a lot of wind and rain. How are you preparing . Yeah, we are obviously watching the track of the storm and its moving closer to where we are located were to the west of tampa and were expecting to see not only an increase in the rain volume were going to get as a result of the storm but its the storm surge that really poses the greatest threat to our residents and those in the low lying area of the city. Morgan was on i75 west. Were already initiated through the county and our Barrier Islands and our special needs folks and those in the low lying area in the city and so were asking them to leave and well be dealing with the storm surge. So this isnt the place where you want to be heading you probably want to continue heading north. Hopefully people will heed that advice. They have been through this so many times the dangerous forecast and hurricane warnings im just wondering how this stacks up to the others you have seen in terms of what youre expecting and what you would tell people that have waited it out before and who have been okay people are taking this storm more serious than in the past. We have given out over 150,000 sandbags in three days were seeing people that are looking at leaving their homes which we want to encourage them to do it as a mandatory evacuation this storm is 250 mile across. The state of florida is roughly 150 miles if this shoots up the center of the state everyone is going to feel the impact of this storm so we need to take it seriously. Florida and st. Petersburg in particular famous for places retirees like to retire to what burden do you have when it comes to dealing with the evacuation of the elderly . Yeah we have been working year around to make sure that those folks are looked after we have school buses that we have activated that have the ability to pick up those that are mobile and those that arent mobile to help them get out of their homes and into a special needs shelter. Were going door to door for those we havent been able to reach by phone that have previously registered with us. We want to make sure that theyre safe and out of harms way. Did you get a sense that people had enough time to prepare and make the decisions they needed to to decide where this was when it hits. You saw our county government here in st. Pete make the call that they made yesterday to make sure that people had time to get on the road recognizing theres going to be significant traffic in trying to move out of the area dont wait until the last minute because if you do you wont get out in time. We try to prepare everybody to get their plans in place with sufficient time and hopefully the majority of folks will have he heeded those warnings. We wish every there safety. Thinking about this storm. The whole nation is watching i used to live at 4th and gandy. So st. Petersburg is special to my heart channel 10. There you go. Thank you mr. Mayor. Thats one of our lower areas right now. Thats in the evacuation zone. Id be leaving too. Thank you. Well we thank you all for allowing me a few moments to get the word out to everybody too all right a quick break. There they are again theyre getting hit hard after reporting mixed earnings and also suspending guidance and taking a look at stocks at this hour we are down a bit just a tiny bit on the s p were back right after this. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. 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Dell Small Business advisor with one phone call, i get products that suit my needs and i get back to business. I like to welcome my guest. Jim thanks for taking the time. Thank you you heard michelle, wild week of treasuries. We settle at 2 44 were hovering around 205 i can remember where you would cover that ground in a couple of sessions on a big numbers day like unemployment but it is interesting to look at u. S. Ten year 206 euro zone at 202 italy at 196 u. K. At 1 japan at 0, canada at 196. These are low rates. Why . All of this amidst a backdrop of Economic Growth Global Growth is still good. So whats going on i think whats going on is there has been so much manipulation of mark prices through quantitative easing and easy money that asset prices, particularly fixed income yields have lost their ability to create information relative to economic fundamentals so why is that a problem . Well for the end user, for the investor and the pension fund and the insurance company, if for saver, how are the savers supposed to make decisions based on investing in the markets today at these current levels of yields they know things are good. The economic backdrop is supposedly good but they cant get a yield to actually create some income and i think creates a manufactured risk in the marketplace right now thats forcing people, forcing the real money investors into lower yield when they should be looking to earn a higher yield and they have to take more and more risk to do that. Jim, you used a word. Its the same word my computer told me about three months ago when it stopped working. Corrupted. You used the word corrupted. I love that word because all the signals are corrupted. Ive had many discussions about this exact topic when we look up and see these prices and these yields who knows what it means. So we see plchltdmr. Dudley tal steve today and to listen to were going to look at two or three more months of inflation. My question you to is how insane is it that we need to try to leverage unemployment so low, keep rates so manipulated to get enough leverage globally to move dropping prices for a bunch of Structural Dynamics that models cant capture . How insane is that so its insane. So i think of it this way. When we had quantity take theive easing, we depressed long in treasury yields such that you switch assets, you switch the buying preference into other assets, equities or higher risk product. Today what is happening is that yield curve is starting to flatten and the yields are lower than what funnel fundamental was suggest. Its the equivalent of having more quantity take theive easing in the markets today to reflat other asset prices that is unintended thats not what the Central Banks are trying to do thats whats happening because there is so much money sloshing around in the system, its depressing the yields, depressing premium and flat ening yield curves. We have to leave it there, jim. And i totally grechlt the next question is, can we ever change lanes when we get on one lane of policy doesnt seem like agencies, governments, or Central Banks have any turn signals in the car. David, back to you okay. Thank you, rick. Lets send it over to jon fortt and get a look at what is coming up on squawk alley. Everybody is talking about this massive data breech at eqifax exposing more than 130 million americans to credit card fraud. Were going to talk about what this means and what measures might need to be put in place whether its regulation, whether its legal to prevent this thing from happening again or at least have some consequences if it does squawk alley is coming up. Dad molly, can you please take out the trash . sigh dad molly trash whoo mom hey, molly . Its time to go bell ringing class, lets turn to page 136, recessive traits skip generations. Who would like to read . molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. kroger profit is falling 8 as they heavily discounted products to fend off competition from walmart and other retailers. But sales and more importantly those id sales or samestore sales did come in better than expected the stock has been under pressure though. Its fallen about 25 since mid june when kroger announced they were cutting the yearly earnings forecast and then came the am zone whole foods deal. Its been under further selling pressure the company is going to do away with long term guidance. This is a tough operating environment when it comes to reducing costs and even though kroger is talking about 2018 growing market share and continuing to grow sales, there is this pressure that elephant of amazon whole foods not to mention that walmart is really get ago gresive. Did they talk about whole foods yet or is this not even with whole foods in the picture at this point that they have to do such big discounting . The deal with whole foods just closed within the last few weeks. That has not made an impact yet. Whole foods just started cutting could haves. Clearly in anticipation of that, everyones expecting another price war on what we should note is an already extremely low margin business when it odometers groceries. I just do have one quote to share from Rodney Mcmullan who wrapped it up. Tend of the Conference Call he said im reminded of the saying may you live an interesting time these are Interesting Times in our industry he says, i know that some of you wonder how crowing kerr continue to thrive in such a dynamic operating environment. Well, he says, we have a history of evolving to meet our customers ever changing needs. The key is to pro actively see where the customer is going and to follow pro actively address the changes. That is what were going to do they keep coming back to this idea that theyve been in the business way longer. They have data and analytics on the competitors to see where the consumer is going. Theyre testing digitsal they have a big foot print and theyre trying to convince investors which is not working to day well see. Disappointing. When we come back, were going to continue to monitor, of course, Hurricane Irma for you as it heads towards florida. Expected to make land fall over the weekend. Well take through live to bring you the latest where the heart beats warm and true, thats texas. Where we always welcome you, thats texas. Where we always find a way, thats texas. Can i get some help. Watch his head. Im so happy. Whatever they went through, they went through together. Welcome guys. Life well planned. See what a Raymond James Financial Advisor can do for you. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Welcome back to squawk on the street. Checking out what is happening on the stocks overall. Financials standing out to the upside today keep an eye on the financial stocks that does it for this hour lets send it down for the start of squawk alley. Guys, back to you. Good morning. It is 11 00 a. M. Here at equfax and 8 00 a. M. Here on wall street squawk alley is live