Good monday morning, welcome to squawk alley. Im carl quintanilla, sara eisen, john ford on the New York Stock Exchange joining us this morning from san francisco, kara swisher. Kara, good morning to you. Take a quick check here on the markets at 11 00 a. M. Eastern time dows trading down 75 and that was a very abrupt change from the morning session, or at least the open, after we got these comments from north koreas foreign minister via reuters saying the president s comments over the weekend were a declaration of war and north korea has the right, they say, to take aim at u. S. Strategic bombers, regardless of their airspace obviously, more saber rattling tech already under pressure, we should note, but this was the worst drop for the dow and s p in weeks worst drop since august 17th sometimes we find ourselves wondering why the u. S. Market isnt more vulnerable to some of the threats and escalation in the standoff between the u. S. And north korea. Feels like its the really scary headlines that cause this market jolt im thinking of President Trump using the fire and fury, and now this were only looking at half a percentage point decline, so keep it in perspective were also near record highs for stocks, but you see it in the safe havens. If you pull up the dollar yen, for instance, perversely the yen is the ultimate safe haven in this situation and there was some big buying. So watch those as far as leaders in terms of whether theyll impact u. S. Stocks, which were already starting sort of a little weak this morning some of the tech names that are down the most have had nice runs most of the tech names have had nice runs, but take a look, netflix, nvidia, each of those down more than 3. 5 so far this morning. Amd also suffering, so it could have something to do with just how much some of these have run and how much they seem to be at risk from any kind of change in sentiment, exactly. Speaking of changes in sentiment, big tech and facebook are still under fire the Washington Post today reports the network discovered russian cyber criminals had infiltrated the sites months before the 2016 election, creating fake accounts and buying ads along the way, also detailing a oneonone meeting between the president and Mark Zuckerberg, obama saying to take the threat of fake news seriously, adding if ignored it would only get worse during the next campaign. To that zuckerberg reportedly said the messages were not widespread, there was no easy remedy also a new column from the New York Times expecting a zuckerberg run for the presidency is scarier than ever. Kara, what was your take on this rather forensic look by the Washington Post at what happened last summer yeah, i think theyve known it for a while i think theyve been aware for a while and mark was asked about it relatively soon after the election, i think, at an onstage interview and said there was no influence you know, i think this has been, as ive said many, many time for the past year, this has been a slow roll of revealings of information about what happened. I take them at their word that they werent looking at it very carefully. I dont think they shouldnt have not looked at it very carefully, especially when a lot of these allegations popped up, and i think if youre told by the president of the United States you should watch for something, you should probably watch for something. I think its this slow acknowledgment of problems and now they are trying to clean up the situation by trying to figure out what happened kara, it seems to me to be a very unzuckerberg move. Whether controversy over the news feed or Something Else facebook users are upset about, he always tended to go to the data and scrutinize it very closely to figure out what the truth was. In this case it seems that he reacted to the idea of facebook having election influence too quickly and later had to go back and say, oh, there were these kinds of accounts we hadnt expected or looked for, maybe the influence was greater than expected does it strike you the same way, this isnt how hes tended to respond to other types of crisis no, i think exactly the opposite i think almost every crisis they tend to minimize it and then they slow roll it. I said this so many times, i had an argument with a facebook executive eight months ago about this, quite vehement argument with him, about they needed to investigate this and nobody else has ability to investigate it but facebook, unless the federal government get involved, and now they are i think they have always done this with almost every crisis going back to beacon, if you remember that. That took forever for them to acknowledge, and then they do acknowledge it and tend to fix it, but they definitely their first move for facebook is always what are you talking about, well look into it, no, its not then they move pretty quickly to maybe we should do something about it i think the problem is, water under bridge is pretty toxic water that flowed under that bridge what are they doing for the next series of elections, because its still the most important platform for politics, news, communication. So id like to know what they are doing to prevent it happening again and what theyve put into place and do they have the ability to police or regulate their own content and advertising . Does someone need to do it for them, or is this an Impossible Task with the rise of a. I. And data like this, as weve been warned well, its their system they should be able to run it, right . I think thats sort of an excuse that its real hard and i think ive written this before they always tend to say its real hard when its easy, when they do ads or anything else i know its not the same thing im not claiming that its a simple thing what im saying is that its their system, its their platform, and its not, as i said about 50 times, its not a benign platform and they have to get ahold of it, or else they are going to be scrutinized by the government, which is not welcome by anyone in Silicon Valley for the government to get their hands on these platforms and regulate them in any significant way, at least. One last point about this, kara, the post story says they quote an analyst who says, the feeling that Silicon Valley was the darling of our markets and of our society, that sentiment is definitely turning. I assume you go along with that . You know, i dont know. I think theres probably now every reporter has to write that story. I think Silicon Valley is very important. It has to act like an adult. Its not just facebook, its all the companies. They are not these fantastic wonderful benign platforms they are important, critical platforms. These are very wealthy people, Rich Companies with an enormous amount of influence and they have to take the responsibility that they get when they get all this other stuff so thats all it is. I dont know if its i think there is regulation coming, and its not going to be welcome, and you dont want to be regulated by people who really dont have a grip on a lot of the complexity of whats going on so well see what happens Going Forward. So well see, well see. I think its not a great time to be in the cross hairs of the federal government at all. Or regulators around the world, which brings us to uber and the legal fight to operate in london. Dara issued an open letter apologizing for the companys past transactions, saying the company, quote, got things wrong along the way. Adding well appeal the decision but do so with the knowledge we must also change we had this debate last week, kara, about whether or not consumers are clambering for improvements in technology, things like uber, whether or not these companies will be forced to change to keep some of these licenses who has the momentum right now well, its interesting. I think dara has a lot of good will Going Forward i think that letter was terrific i think i texted him saying stop being a decent person, you know what i mean . I was joking, but it was sort of the antitravis. Bad reputation, costs. And i think if youre going to be in a regulated environment, which many of these some more than others, some markets more than others, you have to play by their rules, and i think at this point hes acknowledging that the Bad Reputation that uber has is hurting its business and it cant hes got to rectify that in order to operate i think they are very well liked in london by consumers, but they cant force themselves in that particular market when the government has such sway over how its done and how powerful the black cabs there are in london so, kara wherever they go, they are going to have to reform, i guess. So, what does that mean in this case . As you mention, uber is well loved and widely used in london by consumers, but what exactly are they going to have to give to break into more of these european cities, where various forces are trying to hold them at bay i think daras going to have to get on a plane and do some theres an expression, and you know what youre supposed to kiss and thats what they need to do. He needs to go there and make nice with regulators, and a lot of regulators, and assure them and also by their actions that they are a company that really cares about safety of consumers, that cares about following, you know, local regulations, a company that is thinking hard about its reputation, you know, its very easy to lose a lot based on a reputation, and its not working to punch regulators anymore. I would take the other side i think, kara, the uk shares some of the blame in this. Postbrexit they want to appeal to business and technology as a hub and not closed off from the rest of the world. I wonder if they are portraying themselves as a more nationalistic, closed regulated type of economy in a postbrexit era and whether that will have bigger implications. I think its simpler than that the black cabs have a lot of power in london at least they have the mayor. I dont think the mayor of london was pro brexit even he wasnt exactly hes the one who came out against uber theyve got to just go there and make nice with regulators, and europe happens to be more regulated than other places. The european regulators are coming for companies, so these companies with either battle them or they can negotiate and probably compromise is an important thing, given whats gone on at uber that its opponents can take great advantage of in a marketing way, in a public forum way. So i just think hes going to have to play its a different game for uber Going Forward in certain markets, for sure. Kara, wish we had more time today. Good to see you nonetheless. See you soon kara swisher and its President Trump versus the nfl ratings from yesterdays games show viewership down 4 across networks year over year. Dallas mavericks owner mark cuban weighed in on squawk on the street this morning here he is when it comes to ratings, there is a bigger issues, you know, the macro issues of people wanting different ways to consume content, but its just beyond us to really promote what the best way is, and right now thats television. Ratings are going to be down, but they are still better than what other shows are experiencing our robert frank has more back at headquarters robert john, well, those falling ratings, head injury controversies, player protests, now president ial attacks none of it seems to be affecting nfl team values or the massive owner wealth the 32 nfl teams now worth a combined 100 billion. Thats up 8 from last year. The top teams are up even more, regardless it seems of their performance on the field the Dallas Cowboys remain the most valuable team in American Sports worth 4. 8 billion. Thats up 14 last year or nearly double its value five years ago. Owner jerry jones has been a master at monetizing from merchandise, stadium sales, naming rights. It had profits of 350 million last year. Its new practice facility called the star generated 20 million in sponsor revenue alone the new England Patriots are ranking second, they are up 9 , now worth 3. 7 billion their Merchandise Sales up 50 after that big win in the super bowl, followed by the new york giants they are at 3. 3 the Buffalo Bills are the least valuable team, but they are still worth a lot at 1. 6 billion. Rising team values are being driven by revenue. 7. 5 billion from media and tv deals alone last year, and they make a surprising amount from other deals. They made 100 million per team in operating profits last year, teams generating 1. 4 billion just from sponsorships, naming rights, and ad signage the Miami Dolphins getting a 250 million naming rights deal with hard rock and the giants stadium. All that means 19 of the nfl owners in total are now billionaires guys, back to you. A lot of big numbers, robert. Thank you very much, robert frank back at hq more on this issue later in the hour when we talking to leigh steinberg. Also ahead, facebook folds in a big way for facebook shareholders well talk to the lawyer in that case live to germany for a look at the fallout from the countrys president ial election. And later, daimlers push to go driverless. Squawk alley is back in a moment the nasdaq is on pace for the worst day since august 17th, led by downside of facebook, among others facebook shares are down 3. 5 . Clearly, the political backlash is building, but broader tech weakness overall, john, as you mentioned earlier, and for the month so far to date its been a weak one for technology, down almost 2 . Just notable, because its still the best performing group of the year, up more than 20 so context there is key. And facebook, as you mentioned, down about a full percent for the month, and others are down, as well nvidia, as i mentioned, twitter also down more than 3 this morning, a lot worse than the nasdaq number would lead you to believe in tech right now. Were going to zero in on facebook, as john mentioned and as we just talked about, falling hard this morning. The Company Actually folded on plans to reclassify its stock shares the planned issuance of new nonvoting stock was the focus of a lawsuit that would have required Mark Zuckerberg to testify in a dallas Court Tomorrow the lead lawyer, stewart grant, thank you so much for joining us im sure youre thrilled about the fact they decided not to reclassify this stock, but for those who werent following if very closely, tell us exactly how this all went down and why facebook caved sure, good morning. I dont know if i can answer why facebook caved, but what was what mr. Zuckerberg was trying to do was to have a nonvoting stock added to the cap structure, and that way hed be able to sell a lot of his economics without losing any of his voting control and what that would do is just increase the wedge between what percentage of facebook he could vote and what the economics that he actually held were. It could get as bad as him down to 2. 5 or 3 of facebook and still having absolute control. We didnt think that was a very good idea, certainly our clients didnt, and most shareholders think thats a bad idea to separate economic interest with voting control doesnt it also, wouldnt the company argue it had to do with the fact hes pledged to give away his fortune to charity and this would make it easier . Well, im sure they would argue that, but number one, this reclassification didnt require that at all. He could do whatever he wanted with that, diversify his portfolio, spend it on political activities, do whatever he wanted so there was no restrictions and the second thing is, whatever his desires, no matter how noble they might be, again reducing dramatically his economic interests in facebook while still having absolute control winds up putting, i think, putting facebook in a situation where maybe the best Decision Making process wouldnt be there you never want to divide economic consequence from Decision Making, and i think thats where this was leading, led to stewart, you dealt with a lot of shareholder rights issues over the years, so im wondering your take on where we are in technology right now this move by facebook was going to give the founder more power we saw snap go public a few months ago, but the stock hasnt faired that well that company not giving shareholders really any Voting Rights at all. Is this a turning point, perhaps . Exactly right, im not sure its a turning point or another step further in the battle between Silicon Valley and a founders are only yeah. Sir, we got to cut you off obviously, weve lost the feed sorry about that that was stuart grant, who, of course, represented some of the shareholders fighting the plan, and they won, because facebook decided not to execute that reclassification of stock, which would give zuckerberg more power. For more on facebook and the companys growing list of Public Relations nightmares, Julia Boorstin is in manhattan hey, john, thats right it was one year ago that facebook announced it was mismeasuring one of its metrics that it was providing to advertisers. That caused uproar among the Advertising Community and also a lot of concern from wall street. Analysts, and if you look back over the past year, that was just one of many negative headlines that the company has had to deal with in addition to those mismeasurement revelations, there have been a number over the past year, there were reports over the last year facebook suppressed conservative news, questions about fake news impacting the election, concerns about brand safety remember the murder streamed on facebook live. There were tens of thousands of fake accounts that were shut down and then, of course, most recently the news of the russian ad purchases on facebook to impact the election, plus the news of antisemitic ad targeting options. Despite this, facebook shares are up by about 30 over the past 12 months they hit an alltime high this summer this as the company has repeatedly beat analysts expectations there have certainly been brands to threaten in the shortterm, but obviously brands want to be where consumers are, and facebook, youtube, they are really, really popular now, instagram, which has not been plagued by those brands, safety, and fake news issues, has been a big driver of facebooks growth. Facebook just this morning announcing that instagram has 800 million monthly active users. Thats 100 million more than instagram had in april, and 500 million of those instagram users are on the app daily plus instagram Just Announced its advertiser base is 2 million, thats double the number of advertisers it had in march. Here at ad week i just spoke to the chief marketing officer of one of the biggest advertisers in the world, unilever he said despite the issues, concerns, about viewibility and measurement and brand safety concerns, hes sticking with facebook and trying to work with them as they sort out those issues he says hes not pulling back any ad dollars from facebook, because he wants to be where consumers are, and thats on facebook and instagram guys, back over to you stunning numbers in just a short amount of time Julia Boorstin at advertising week, thanks when we return, rolling out the latest episode of bgein, dow is down about 101. Squawk alley continues in a moment a lot of markets reacting to these headlines regarding north korea. A few moments ago, stumbled down about 100 points or so at the worst level, but guys, tenyear yields did fall a bit. The vix above ten, gold up more than 9, and oil, not only is west texas closing in on 52, but brent is 58. Thats a new high for the year yeah, and its helping Energy Stocks for sure. Best performing group on the s p up 10 , technology is lagging both in the s p and thats the story with the nasdaq after earlier the russell 2000 index of small caps reached a new high citigroup says theres some catching up to do after small caps have lagged, but also people pointing to the fact transport stocks outperformed last week. Another week when the dow and s p closed marginally higher, so we remain near high levels, on guard for any geopolitical headlines, i guess, is the story. On a much lighter note, will grace is back, airing on thursday on nbc at its peak, averaging 17 Million Viewers a week the show won 16 emmys and the latest episode of our series binge we sat down with the series creators and asked how they plan to address the current state of politics in the country. Hes a man, but hes aged into a lesbian steven tyler. Judd boyd. Newt gingrich . Yes shes dont get me started. Jada pinkett smith. Yes oh, we want to love her but she makes it impossible. Caitlyn jenner. Rich, hostage melania brain patty hurst whoa you said the goal of the show is not to preach, right, story comes first, character comes first, but will there be an obligation to address where we are in the country, whos in the white house . Certainly in as much as they all live in the world in 2017, and they all have their convictions. You cant not address it, but you dont what you dont want to do is put out an ideology or thats not the purpose of the show you have characters who feel a certain way, and those characters should be true to who they are thats our thinking. Yeah, we dont have an obligation to write about politics we have an obligation to the show and the nature of the show and what it was and what it will be, and its always been a show, a story, about these four people that are in this world and talk about stuff thats in the world that were in right now. Interestingly, as far as distribution choices go to bring it back not just to broadcast, but nbc specifically, there was never really a discussion of shopping it anywhere else, they say, it was always an nbc product and if it was going to happen again, it was going to happen at nbc. So, whereas other shows have tried to reboot on streaming, on netflix, not an option they considered seriously at all. Carl, i think people forget what will grace was in 1998 when it debuted, almost 20 years ago. Ellen had just gone off the air, it had blown up Ellen Degeneres career because shed come out gay and heres will grace. Always politically hard extremely edgy at the time. Looking back, yeah, whatever, like i was going to say the kods cosby show, not like that. Not just like friends. Interesting they are tackling politics headon also, they look exactly the same max and david, yes. They dont age, some of those characters not to mention like carl whats that like all of us, i think. Thank you very much for saying that all right, its 11 30 on the east coast, which means markets are closing in the uk. Stocks at their highs of the session after north koreas foreign minister said recent comments by President Trump amount to a, quote, declaration of war against his country we saw the reaction in u. S. Stocks europe followed suit yesterday germans elections also in focus. Chancellor merkel winning a fourth term, but the far right also making history. And that is the focus of investors today. Annette is live from berlin with the latest on where germany goes next after this election result. Annette . Hey, thank you very much. Yes, indeed, its a nightmare victory for Angela Merkel. Looking at the results, crashing defeats for her party, coalition partner, the social democrats, who now will go into opposition. So, she has only one choice left to actually form a government, and that is between her party, the liberals, and the green. Very, very Difficult Coalition talks ahead, because each of these party has a very distinctive view of what actually matters when it comes to policy mix Going Forward. So what can be expected from germany is actually a very long period of no new government. It could drag on perhaps until early next year. Some analysts are thinking but at least some who are more optimistic think we should have a government just before christmas. Of course, the alternative for germany, thats the name of the right wing party, is a problem here in germany, as well, as it will dominate the political debate Going Forward with topics like homeland security, antiimmigration, and so forth but that, first of all, back to you, sarah all right, six tenths of a percent decline on the euro on that uncertainty thank you. Now lets send it over to headquarters, sue herrera with the news update. Good morning, everyone. Heres whats happening at this hour north koreas foreign minister telling reporters in new york that President Trumps words were a declaration of war against north korea, and since the u. S. Has declared war, north korea has the right to take countermeasures, including the right to shoot down u. S. Bombers, even when they are not inside north korean airspace search teams still digging in piles of rubble in mexico city, hoping against the odds of finding survivors. The death toll from that earthquake last week has risen to 324 nationwide. Officials say they have cleared only 103 of mexico citys 9,000 schools to reopen. Former new york congressman Anthony Weiner sentenced to 21 months in prison for sexting with a 16yearold girl. His sexting habit destroyed his career in congress and his marriage to huma abedin, a former aide to Hillary Clinton target employees will soon get a raise. That employer announcing the raise will start next month and 15 an hour by the end of 2020 just in time for the holidays. Thats ourewup ns date this hour were back in just a minute with lots more on the markets watching the markets this morning following some heated comments from north koreas foreign minister our john harwood is in washington, d. C. Bring us to speed on that. Morning, john. Morning, carl this is an illustration of the difficulty of the way that President Trump is conducting Foreign Policy via twitter you have the north Korean Foreign minister citing the president s statements as a declaration of war, and, therefore, from them claiming the authority to shoot down american aircraft. Dont know if that is simply bluster, but in a propaganda sense, Donald Trumps harsh words for kim jongun has made it easier for north korea to state that public position, and its interesting, because i talked to an Obama National security official on friday, who said the actual National Security apparatus led by h. R. Mcmaster and jim mattis are handling this situation in a solid, measured, effective way thats what those b1 bombers were doing over the weekend. That was deterrence on the north koreans. The wild card in this equation is the behavior of the president himself, his statements, and whether or not that either puts the United States in a disadvantage internationally, but also whether it raises the possibility of a miscalculation and an escalation emotionally of the relationship between these two leaders, kim jongun and donald trump well, markets certainly reacting this morning to all of that thank you, john harwood. And amid attacks from the president , this time rhetorical attacks again, early overnights show the nfl ratings do continue to slide, down 4 combined, this following double digit drops in the first two weeks. Joining us now for more, famed nfl and sports agent leigh steinberg. Leigh, good morning. Good morning. Leigh, kind of seems like a very unfortunate scenario for the nfl owners on the one hand theyve got players who they would like to keep in good graces, on the other hand they have fans who are divided about their feelings on this particular issue how much of a Business Risk is this protest issue for the nfl right now . Well, clearly last year a number of respondents said that it was Colin Kaepernick and the protests that were stopping them from watching, but put this in perspective. The nfl dominated the ratings last week with the number one, number two, number five, and six out of the top ten shows, so its not only the most popular sport, its the most popular form of televised entertainment. It has much higher ratings than the president does, and these are not although athletes that are unpatriotic. They value the flag, they are very patriotic they are disturbed about an issue. I would have stood with them this last sunday, and this country has always survived a little bit of protest, and they are just trying to target situations for racial justice. So what do you do if youre an owner in this situation and its not just the nfl, i should mention the nba also getting involved with the president , revoking his invitation to the Golden State Warriors and lebron james sounding off on that on twitter. What do you do, because its not like you can just shrug off the president. He has the power to ignite any of these issues with a single tweet. Well, he certainly does, and listening to your broadcast this morning, im glad that hes targeted the nfl as opposed to north korea or iran or the myriad of problems which are facing this country. The nfl is experiencing a little bit of protests here, players are trying to make a point, and the reality is they need to be very clear that the forum that theyve chosen, which offends some people, because its the flag, because its veterans, because its the national anthem, that they are not being antipatriotic, that they are following the tradition of free speech and trying to make a point. And this player consciousness, which is sort of arisen now as a positive thing in the sense that its players understanding that they are not just athletes, but they have a role off the field and the nfl will ultimately be just fine. And as long as they do a very clear job of explaining that this is a narrowly targeted issue. In the ideal world you wish they could have done this away from stadium, because you dont want them to become ultimately, you know, someone protests for the fact of abortion is held, protests are held in different ways and sports is a unifying force, which pulls together people from disparate socioeconomic backgrounds, to all root for one thing, and well be back to that president soon yeah, leigh, i keep coming back to this question of being on the clock, right . If we as employees of a Media Company want to protest something or express peacefully, thats fine. It might be a different issue if we do it at this very desk so im wondering for owners who believe the players have the right to do this, but it is impacting my business, do they have any recourse . Is firing a player acceptable . Well, certainly, they have all the power. Most of the contracts are not guaranteed in the nfl. And they can cut a player for public conduct, for a whole variety of Different Reasons and youre right in saying that theres a delineation between the public right to free speech and being able to do it on the job, but if you watch yesterday, what you saw were owners in solidarity with the players. So theres no dissonance inside the nfl. Owners are banding with players, who are banding with coaches, and unity. One of the things the owners know is if the team fractures, if theres a rift between management and the players, they are probably not going to be that effective on the field, and ultimately the bottom line in sports is winning and doing that so, again, its unfortunate it had to occur in the stadium, but sometimes protests is a little bit messy. Its a long tradition in this country, and football will thrive well, we dont want a house divided, i suppose thats true on the field and off. Leigh steinberg, thanks so much. My pleasure when we come back, taking elon musk head on. Daimler launching its first allelectric truck, but will that be enough dow is down 72 off the lows of the session. Rick santelli, what are you watching of course, im watching the market down tick and the yields uptick in price, but what im really paying attention is, how different today is post german afonth nemr h 9t ter our elections. Talk about that after the break. Whoo woman class, lets turn to page 136, recessive traits skip generations. molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. and the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. 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On the Halftime Report, the latest on the sudden Market Reaction after north koreas shocking comment that President Trump had essentially declared war on their country full analysis and reaction ahead. Tech taking a brief hit today, apple falling below what may be an important level for the stock. Question is, should you step in and buy apple today . And two former nfl players with a unique take on the nfl protests the Halftime Report starts at noon eastern time. Right now, back to carl. Carl brian, thank you very much. Lets get to Rick Santelli and get the santelli exchange. Hey, rick. Thanks, carl. Of course, the news of north korea headlines and whats going on back and forth between the u. S. And specifically the president and how its impacting the market is going to be an ongoing topic for the rest of the day, im sure, and far longer than that, but we are slipping a bit in yields as the safety of treasuries comes through. The dollar index hasnt changed too much its up more than a third of a cent dollar index always seems to be a delayed kind of safety vehicle if youre looking for a quick eye catch of exactly if the markets are paying attention to that end, september 24th yesterday and today, how the markets responded to the german elections is really a far cry from november 8th elections and what happened on november 8th on the close on the 9th with respect to u. S. Markets. You could see it here in these charts the dow, the dax, pbit of a different picture. The foreign exchange, i had john on and today asked him specifically if the weakness on the euro, and youre looking at the charts, euro versus the dollar, yen, and pound, if they had anything to do with the elections, he said it didnt, and he certainly cant be right. Theres a lot of forces at work here but i would just say the following, that Angela Merkel, if you read all the newspapers in europe, you walk away with especially the lead up to the election, safe, no surprises, even keel, the perfect personality for the time and all the tumult thats going on across the world, the rise of nationalism and how Angela Merkel seems to deal with it in many ways contrasting her behavior, how she acts, talks, to donald trump, but i would say this, status quo versus change, versus uncertainty, comfort zones, the latter is really difficult, and i still say no matter what your feelings are politically, something happened between november 8th and today that really has changed the complexion of the markets and im not sure if its due to our president s personality. I dont know if thats his highest marks, but the idea even messy change could offer rewards that youre never going to get from status quo is a lesson we should not ignore, especially when we see it in the leading economy in europe go through on and see so Little Movement in the marketplace. Sara, back to you. Yeah, really hard to figure e of these political choices Rick Santelli, thank you still to come, daimler, ilan musk head on first allelectric truck in production for daimler, 100 units of this generation to customers in the next two years, with largeScale Production to start in 2019. Joining us now, martin, good morning. Good morning, john. This is a light truck, carries a couple of tons at a time, i believe. Tell me, what is the vision for how many trucks these could replace versus what we currently have on the road. In the long run, it could revolutionize the entire intercity delivery process those types of trucks run 100, 150 miles a day. They are perfectly suited for an electrical drive line where we still battery reach is the biggest problem. You say this has a range of more than 60 miles i believe that you say it offers savings of 2,000 per 10,000 miles. How much of an investment will it have to be upfront for somebody to buy this, versus a more traditional truck and how long until they see a return on that investment . I mean, its still it has still a lot of factors that is easily 15,000 to 20,000 more expensive in the long run than a traditional truck because of the battery the issue about the batteries is how long will the battery last how are the charging cycles . What happens afterwards . Everyone who buys today a truck always thinks about the residual value, meaning the used truck market, secondary market afterwards those are exactly questions where we need to find answers in the next two years before we really go into big Scale Production for us, it is important to Gain Knowledge with those new trucks, as it is important for our customer to have the knowledge to operate those trucks. I imagine it would take a lot of electricity to operate them it takes a lot of diesel to run these big trucks martin, is it possible to make these trucks in a profitable way, without government incentives ultimately, it has to the north American Market is about 370,000 trucks a year. And you cant incentivize 370,000 trucks it has to be profitable for the and we always have to think from the customer side. Martin, having to change the way we think of efficiency as we migrate to electric. A lot of vehicles are efficient in city driving because the brakes regenerate power. Would these trucks be better used in an urban environment, shorthaul deliveries . Its fun to drive them in an urban environment. Im always excited if i do a test drive with an electric truck. Its more like a scooter feeling you have, far more agile there is benefit, alone from the drivability. If we have to extend the reach a little bit as i said, we have to get to 100, 150 miles still without losing too much payload because ultimately a truck is not there to drive around but to carry freight and goods. So, it has to be light so we still have to do some homework on that if we have our act together, have 100, 150 miles, there is a viable, good market for that yes. Not just in the long haul but also in the short haul thank you, martin. Especially on the short haul. On the long haul sorry. Little pun there. Squawk alley continues in a moment markets lower after north korea threats. Some Economic Data in the week as well the Washington Post calls it the most direct and threatening remarks from north korea well see what happens and if it escalates the situation. Lets get to s luchully and e half. Markets taking a hit after a new volley of war talk from north korea. Lets get now to eamon javers at the white house. Reporter no reaction yet from the white house to the north Korean Foreign ministers statement. Since the United States has declared war on our country, we will have every right to take counter measures, including the right to shoot down u. S. Bombers when