Transcripts For CNBC Squawk On The Street 20170928

Yields dont strengthen. Ten year approaching 2. 34. Road map begins with the tax reform push. Tech is under fire. Senate Intelligence Committee is calling for public testimony from executives at twitter, facebook and google. Another equifax apology. The companys interim ceo shares their new strategy to protect users data first up republicans pulling out all the stops to push their tax reform plan which includes cutting the corporate rate 20. Gary cohn said he disagrees with those who say it will cost 2. 2 trillion because it will be paid for with growth. We think we can be substantially be above 3 gdp growth with what well accomplish on deregulation and tax reform said i he agrees they would have preferred 15 but 20 on corporate is a bright red line, a bright line test if they were going to do that and do repatriation this would be like speaker ryan talked about. It could just happen the fact is that those of us who have gone through what looks like a plan have no idea what it means. I know they will say wait a second, its so obvious, jim its this, its that nobody seems to really know, even within the committee what it means so lets just accept the fact that yes, when you cut taxes it does spur growth but thats really kind of all we have so you would have tried to do just corporate thats a tough political sell. They cant get through just corporate. Repatriation could have made up for corporate. It will come back to what the speaker said they dont need democrats they have enough republicans. Those of us who have gone through tax officials who have asked what about this property tax. What about the state and local theres a dramatic my taxes go up. You think the jersey people, new york people. Even after amt. They most likely do even if you go down to 35, no longer state and local the point youre making and we made it before the republican delegation front, california and new york and new jersey could conceivably if they stand in unison represent in getting this done if the deductibility of state and local taxes are no longer allowed under this plan we dont know. Then i would assume to take it further why is there they keep going down the road well use reconciliation get to 52 vote we have 52 republicans in the senate well get the 50 votes we need here others wonder whether or not youre going to end up needing more bipartisan approach im not talking about my taxes. If youre from one of these high tax states and youre a republican its almost inconceivable to me you would vote for this without being thrown out the concern for states like were in now or california is that businesses and high earners are going to look for another place to live. Unclear whether that will actually take place. Do people make change in lifestyle for a lower tax rate sometimes they do. They get put on a higher rate remember gary said they may have to do a higher tax rate. You get rid of these deductions you may think its bad for the poor and big windfall for the rich taxes go up so dramatical lui i cant believe anybody in these higher tax states could risk voting for this. Republican or democrat wall street journal looks at a tax cut with unemployment at 4. 4 doeshat for the fed to tighten faster and does that offset any benefits you would get to growth look, i said last night on mad money. Were fortunately at a rate thats solo that the fed could raise multiple times and it would not necessarily slow this economy. Even after all the debt, u. S. Companies have added over the past say five years. I really believe that thats a cry wolf scenario rates are really, really low we got people who are freaking out at 2. 3 that said, we got cohn talking now we got 3 now they are talking higher gdp numbers. Wishful i just want to step back from the rhetoric i heard this morning. What i heard this morning this will sail through. I heard all republicans are in favor of it. I heard this morning its great for america. Then guy to the Tax Professionals and they say what is it . Could you tell me what it is really serious Tax Professionals saying could you give us some details. I dont want to say the devil is in the details in this case it is. It is i love the fact that they can all pass through everything. Sparked better morale it did. Our Parent Company comcast saw some life in it. Because tax rates go down its sad but not dead. A little more life to the actual stock if youre buying stocks on this i suggest you just one of my lucky numbers is i do 21 when i play rowleulette last few weeks or couple months im just moving on because i want to get to this. A lot of companies have moved on from worrying about tax reform thats all im saying but with this now playing out here and the prospect of repatriation once again there may be Certain Companies cert n certainly looking at something lets put the brakes on and see what develops. Do you remember the last time that speaker ryan said he had the votes for something. Yes yes, i actually do. How many times did he say he had votes for health care. Do they just like theres no you can come on air and say anything you want. Its not like wait a second. That study in yale where they zap you theres nothing theres no zap remember that study. Yes i think you made 100 opening scene of governme ghostbusters not clockwork orange. That was brutal you can say whatever repeatedly health care will pass. I just gave you the scenario where there will be a pack to vote against every republican in a wealthy state. A state that went for hillary clinton. A lot of states went for hillary clinton. I cant find out from twitter. How about the russians twitter the house and senate Intelligence Committees have invited tech giants google, facebook and twitter to appear for public hearings on russias interference on the election they are scheduled to meet behind close doors with staff today. Time has a big piece on how twitter with all of its anonymity and exposure to box has gotten ignored in the focus on facebook. This resonated more than most when you talk to people about social media this one resonated a lot of people have been saying they are phoney anyway its really hard to have a phoney facebook entry. Right its harder you can do advertising as soon as i heard that grows margins have to come down because they need people you have to have actual humans scrutinizing this stuff. Scrutinizing a twitter account. Same way they were setting up Facebook Accounts you can set up twitter accounts like a real person in particular, twitter doesnt make the case that its a real person. Im just saying if you have to hire people, to see where the orders place and whats done, can you imagine what it does to the grows margins of these companies. All these companies are done by computers, Artificial Intelligence facebook . Alphabet has the same problem. Real people to check this stuff. Real people to do the job. Im sure real people can be replaced real quickly by video not my dog they can be replaced Artificial Intelligence will do the job. Until we get there you need people people cost money. The great thing about these companies, alphabet, facebook, twitter, they do things with machines amazon, no people there. Plenty of people at amazon. Analyzing whether somebody is true or not. You dont have to talk to twitter. I dont believe that guy is real when it comes to facebooks margins i dont think investors are particularly concerned about how much they hire a thousand people it doesnt make a dent. Grows margins are down. 06. Sell im on those calls by the way deutsche not only raises numbers on facebook and the target of 220 from 215 they say their conversations indicate growth and client spend acceleration in 3q relevant to q2 i loved that note this is the absolute bull case for facebook to be forgotten which is that people, the advertisers love it. With the exception of maybe proctor and gamble at the end of last quarter they did cutback some of their spending online. But this piece is about how the money is still going to facebook when i speak to les, he had great numbers, right so theres still money going no doubt. This facebook piece basically says internal investment in an ad in facebook is really great are you guys members of any groups on Facebook Like what would virginia wolff do. That was targeted. You dont need to join a group. Anything you say is put in the algo its wow i was just thinking of that. Boom now 1,000 more important. That thermal blanket thing did you click on that. Wow im cold zuckerberg responded to the president yesterday. Said facebook is against him both sides are upset about ideas and content they dont like. Thats running platform for all ideas looks like some argue this is when he says that, saying this whole thing was crazy, right that he now regrets. Does that set him up for what he says later on. Whenever you change your mind, there are hearings and this was rather amazing. It did make me feel like wow did they not know this at all . Because did they not watch homeland did they think they made it up homeland knew there was a troll farm there was a giant troll farm in the series homeland modeled after the troll farms on facebook and twitter zuckerberg didnt. Apparently he didnt watch homeland. Thats not where i was going. I hear you. What whats wrong you okay writers they are good writers never mind. The writers from homeland they do a tremendous amount of research i know novels look novels is the only place where truth is told in this country novels are the only place where truth is told in this country. You want to tell the truth you write it in a novel. Im going to tweet it the russians already tweeted it solzenhinsten already wrote that where did the germans get to and stopped on december 6th, 1941 the homestead. When we return its time for equifaxs ceo toize for that massive data breach. Comes up with a new plan and jason rman well get his take were back in a minute is the monolithic view of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise want sure ck . Alright, looks like weve got chips, popcorn, pretzels . Pretzels plain, sourdough, spicy, sesame, honey mustard, chocolate covered, Peanut Butter filled, this ones in german, it says, reindfleisch . Plain. Great. So what are we gonna watch . Oh show me fall tv. Check out the best of the best handpicked fall shows on xfinity x1, online, and the Xfinity Stream app. Thirsty . Equifax issuing another apology for its massive data breach this time coming from the interim ceo. In todays wall street journal he writes on behalf of equifax i want to express my sincere and total apology over tory consumer affected by our recent data breach equifax will allow consumers to lock or unlock access to their craig dawson data any time they like Richard Cordray made news yesterday. Thats closing the barn door after the horses have left the people im involved with, involved with your Checking Account and savings account, saying that you should put a st stop make sure your Bank Officers know you do not authorize a credit line. Im not saying everybody in america should do this im saying i did it immediately yesterday because of this hack and that anyone who keeps a balance in their Checking Account of some size should have a stop put on their credit line because of equifax okay credit line you dont apartment credit line thats how people will use a equifax data senator warner said could it happen in a month, two months, three months what you will hear is not from fax fairfax. This is of no value. If youre one of the 140 americans where they may have compromised you its imperative you tell your banker without my personal authorization you cannot offer a crediline with a pin number thhatats ws going. Thats what they are doing, the hackers are doing. I know this from more just from Cyber Security people. I got it from the best Cyber Security people. This is what americans must do with equifax not being talked about by equifax because equifax doesnt need at that reason suddenly why youre calling your bank but thats what im being told to do if im being told do it i want other americans to do it as were changing your number completely just make sure they know theres a stop because what the hackers want to do is get they dont want to take 5 out of your account. They want to start a credit line that they can tap that you dont know this is a vital thing since equifax that you didnt have to worry about before its a brutal thing. It will tax the whole system im sure equifax is worried about losing business because of this this is what ive been advised to do. I check my balance every day this is what they are advising me to do another ceo just retired were going to talk about not just chevrons ceo but kellogg ceo as well when we come back. Hes out. Spending more time with family well get kramers mad shda as well and well count down to the opening bell in a minute can i kick it . Yes you can can i kick it . Yes you can can i kick it . Yes you can well im gone i mentioned this at the close of the last segment. The long time ceo of kellogg is retiring hes going step down october 2nd as ceo he is kellogg step down as the executive chairman on march 15th jim, its kellogg. Its General Mills gee, i wonder, tough times in this business. Three titans of the industry. Bryant rosenfeld and king pao they made good combinations, did a lot right. Theyve been evisserated by the brickandmortar model millennials no longer like it. Ken is my age. A year ahead of me in college. Its not like these people are young. Okay. But they are not old its not like look that they are done. They are 47. Natures bounty the new ceo, david that natures bounty that connotes almost hain steven catalane will take over and most recently president and ceo of the narcissitures h and downy. When a new ceo comes in is it more than likely someone comes in and swoopes in. I dont think kellogg will merge with General Mills when a board made a commitment to a new ceo they give him the right to run the ship for quite some time theres some examples where someone has come in and then the company gets sold. People were talking about getting the tailspin numbers of private jets coming to battle creek. I remember. Here we know youre doing special k. Thats what special k is me its a cereal to the younger viewers something you take to have a better time is it i dont know. Maybe you do. When my wife had her elbow dislocated, wow that felt good well be keeping an eye on kellogg. Not too big of a response. Well check on chevron opening bell a few minutes away roku going public. 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Youre watching cnbc squawk on the street live from the Financial Capital of the world, the opening bell in just about 60 minutes busy morning as we watch the pitch continue for tax reform. From all members of the administration meanwhile puerto rico remains a story. The president waives the jones act Effective Immediately after seeing some lobbyists in the shipping industry didnt want it done important that these goods get to puerto rico no matter who owns or runs the ships yes we had this Superstorm Sandy when we were out of gasoline in the northeast. Jones act is a reason why a lot of our oil cpanies have complained that you cant shipby he way, we ship a lot of oil out of this port big numbers in shipping oil. Keep that in mind. Oil landscape is shifting so rapidly, there are multiple reasons why oil may be able to stay above 50. Just chatting with the ceo of core labs. The science of oil he says its for real. Hes been a bull the s p is bebottom of your screen autoliv and nasdaq celebrating its ipo, roku. What a journey they had to the public market. Price is at 14 top of the range value is at 1. 3. Software side, the hardware side not doing as well amazon coming in after them. Not unusual today to come in, see amazon come in after them. Amazon coming in hard against drug stores particularly against prescription drugs you wake up every day, a good article on amazon this, amazon that now affecting europe what happened to the mall 8 just gone, tax base essentially knee capped. Owners of the mall buy their stuff from amazon. My wife and i looked at a piece of real estate on that main drag. We did it seemed ridiculously low shes in real estate and when we looked at it it was just ridiculously cheap and we couldnt understand it then i pick up that article. Holy cow everyone should read that article. This is the town that amazon destroyed. The demalling of America Thanks to amazon as you said the journal has a story on the effects its having in europe on retailers there or beginning to even though the stocks in europe have been far stronger, our retailers as you know have suffered the economy is coming back there. I think its ridiculous that rates are solo there but thats been a common theme of mine. In the meantime europe has been good ive had a bunch of companies in the last few days asking about Europe Europe is a stand out over and over again with the vm wares stand out with most of the Big Technology companies that i follow in terms of their business. Business. Yeah, business is very, very Strong Data Center businesses are strong europe is really embracing the cloud very quickly right i know isis could know kris g well in europe one of the most important in japan, potential delisting from the Tokyo Stock Exchange a lot of different moving parts. They got a deal announced offiallyndre investors such as dell and apple and eagate david, will they be able to transfer the money given the fact that Western Digital has got this suit against them its being arbitrated now internationally, in an international court. Toshiba says if we get the money well be in the black. Its an imperative for japan as a nation to keep toshiba rolling. I thought it was amazing how quickly bain came in and didnt worry about liability. And if western does succeed in some fashion, maybe being able to cutout that business where the joint venture is in place. But its worth mentioning. Clearly something weve been following. When i look at the fate of Western Digital, it must get bigger and flush because disk drives are going down. Why are disk drives going down because flash is so good 50 years of applied materials. Isnt that incredible mr. Morgan wrote a great book. Great american treasure. Yeah meanwhile were a couple of days to the end of the quarter it is the least volatile september ever for the s p isnt that incredible we havent had a positive september since 2013 what does it say we got through this month i have a bunch of technicians saying this is the month where things will go bad ill start it. This is the 30th anniversary of the crash coming up. I know some are hoping if i talk about it too mh we wont have to cover it later. It was remarkable given all the things that happened in the month of september that nothing the stock market basically didnt do anything think about this september. This has got to be the noisiest newsiest september i can recall. Both fake and real news. But it was incredible. And the market didnt do anything not only that but look at the end everything reversed. Oil is just so strong. We stop talking about it the dollar has been remarkable we dont want it too much stronger because it will Impact Companies that is about to report now were convinced that theres a rate hike. Now leadership of banks, incredibly strong. So its got your head spinning its a swivel. I feel its a lazy susan head i got going. What about the flattening of the yield curve. Historic term rates. At certain point theres got to be Credit Demand. Where is the Credit Demand the individual Federal Reserve banks each one say theres great Credit Demand. Im watching this stuff. Any rally thats led by the banks, good rally. A lot of good things about your country it says. I believe it. Jim, mcdonalds is leading the dow almost 2 . Theres some talk of the journal about what tax reform may mean obviously they get a lot of revenue from overseas. One of the most Amazing Things that happened i want people to understand how refrench works you had it in mcdonalds. I have chevron. Blackberry down here amazon. I saw it. P and g, the new heinz guys does nobody alphabetize this stuff for you. I had an email on it the story is the stock was knocked down from 162 to 157 with the report that mcdonald was going to have surprisingly bad domestic same store sales. This report says they will have surprisingly good same store sales. This is saying they will be on fire 4 to 5 . He cant come out and said but let me just say that if this can be the daniel maul of the surprise attack, close lining that he does this could be a 15 could be thrown out of the game out of the game if mcdonts does a much better domestic same store even though it was knocked down six points by the story that said it will be weaker, this is it this is just truth and consequences bad implications for starbucks which is trying to plowed its way back. Im waiting for the pumpkin latte and i have to lose weight so i had to stay way from it the pumpkin latte. Lets report on hain. A couple we follow frequently. Hes shown up here they had accounting issues they had Significant Shareholder activist pushing for change on the board. They are taking credit here for a lot of the changes on the board but the push back from the company itself is we were going to do a big board refresh after we were able to. We havent had an annual meeting in two years they are getting two seats even though they are claiming credit for as many as six as for this idea that were for sale, were not for sale im not getting that for sale thing. Im not either. Someone wants to come take a look thats not what were doing doesnt want to sell the company. I do feel what could happen some people say the consolidation, were white wave was bought without a doubt in the right area. Health and wellness. A lot of small product lines unclear whether it will appeal across the board to the larger company. We talked already about kellogg or General Mills who have changed ceos or will do so challenging environment there. It was made clear to me this company is not for sale. Doesnt mean if mebody comes knocking as they often may, its possible they will entertain offers but not going to an auction. Campbell soup is proud of its bold house products. Good salad dressings youre from bring a seven seas guy. They also make spaghetti os too . I could live on that. Chips ahoy i had a wine punch. I grew up on that dont want to get too estranged from the facts here. Campbell soup is the kind of company that can buy them and immediately claim they are much more than just canned goods. But i only mention it because our company could move the needle hain is a whole Different Group of products thats more Consumer Product oriented and niche, the kind of thing that he likes. Proctor gamble is shying away from it. Buying niche products. P and g you have a late take on p and g as we get closer to the vote itself i liked them. Proctor issued a statement, close your eyes to that. Yeah. Anyhow on hain just to wrap it up stock was up came down a little bit you just killed it. No we didnt. Its a big board refresh going to use this as an opportunity as all these activists do to market they want it to look as good as pointly can out there in the press. Why not. If youre an activist and you have success to some extent it will result in assets coming in. True success is when the stock goes up. Still well down from when the accounting scandal began or accounting problems. Recognition remember they did not have to do a true genuine restatement that makes it more disorganization situation, i think one thing we have to mention is that these Consumer Product Good Companies have not been faring well with Interest Rates goinhigh machine saysel sl those stocks machines are in action here. Comcast is morose. Comcast is moribund not moribund that means dyeing morose it does not rhyme with flower it rhymes with there was a piece yesterday looking at the stability of comcast, Free Cash Flow related to other immediate okay companies. Wifi servicing broadband when you have your kids listen i dont have cable any more i have netflix. How do you get netflix into a house you need power, water and broadband. Thats pretty much where we are right now. Mcdonalds helping to support the dow but were still down lets get to bob pisani. A little bit of a flutter market leadership is still intact lets look at the sectors. Banks made a big come back this month and they are leading energy has made a big come back. Those are your turn big turn around plays health care good we know whats going on with Interest Rates they are to the down side. Ill have more on whats going on with september tomorrow but some obvious trends going on in september that i think is important. The reflation trade is back a little bit weve seen global inflation readings overall china and other countries. Higher oil prices. Global bond yields rising. U. S. Tax cut talk. Throw this all in as general reflation trade going on thats the main thing for september. As you see whats happening with the russell 2000, its far outperformed the s p its up about 7 this month versus the s p 500 up 1. 5 . One month. Russell is the white line. Thats largely a tax cut issue some is the reflation trade. Well keep an eye on that. Hurricanes, more companies are coming out with comments southwest air lowered their q3 revenue. Sherwin williams cut their guidance earlier in the week and last week Carnival Cruise cut some numbers. Dr horton cut some numbers carmax closed. Autozone closed a bunch of stores fedex had a hit. And cintas how big is this all in aggregate . Not quite clear whether this will materially affect the s p 500 situation for the third quarter. Were expecting a growth of 6 in the s p 500 for earnings. This is down a little bit from prior quarters my suspicion is based on these numbers they are providing, these companies are providing, not a dramatic hit to the overall s p 500. However, i am quite sure there are companies waiting until their earnings actually come out before they make comments. This may be Insurance Companies as well. Lets just see i can tell you right now today if you look at southwest and sherwinwilliams, the stocks are not affected by the announcementsthemselves. Lets talk about the ipo roku, 14. High end of therange thats a unicorn 1. 3 billion overall. Float 220 million. But only floating about 10, 15 of the Company Opening on the nasdaq in 45 minuteor so. The of you who love to talk about corn cutting, this is it roku is the ultimate play on cord cutting 15 million active User Accounts and its growing growing nicely 50 . Heres the down side its still unprofitable. You know the competitors thats out there. Amazon is there. Apple is there even google is there keep an eye on that one when it opens in 45 minutes. Carl, back to you. We did get some gdp this morning from Rick Santelli lets check in with him at the cme. Most of the day this morning wasnt bad as a matter of fact i like seeing some of the bills and inventories. Lets hope that translate into actual sales all these things have positive implications about gdp they look backward on gdp, grasp an extra tenth 3. 1. Third quarter isnt f. A. I. R. Ing that well at least as you look at areas that handicap that. Ten year note yields are up a little bit as are 30s. Basically all sovereign yields especially long are up one week of tens should we close here hovering at the highest yield since the 25th of july. Lets switch gears and move to bunds. See that 50. Thats significant right now as it sits look the highest yield closed since august 1st we havent closed since above 50 since july a lot of different sovereigns. Jgb. They manage to manipulate their fixed income sovereign market more than. 30s and 40s escape that. Yeartodate, jgb is under 90. Lofty leve 40 year is about ready to take out its 110 close for the year. Hovering at 109. If you look at the front starting on august 1st you can see theres upside pressure theres. Everybody is marching together here its how its calibrated with respect to the scaling and relative value trade between inter sovereigns and euro versus dollar the ecb president was on with me but the euro has been down every day. Back to you. Well check in back with you later on roku making its public debut today. Well bring you that opening day. Dow is down 16 minutes were back in a minute is the monolithic view of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Tonight will and grace returns to nbc after a decade off the air. It enters a much different entertainment world. More shows growth of streaming and our Digital Series binge we ask the creators about todays content world. Hey does it make it more challenging. Were not watching will and grace. Its not there and if you decide that this is the kind of thing you like it will be there. People have 24 hours in a day, right yeah. Im wondering, people have to make decisions it gets harder and harder every day. You have to watch this what will i watch . Theres so much stuff on every single stripe and kind how do you compete in an over crowded marketplace. To that i would say theres a base, theres a precedent. Theres roots. And i hope people just want to live there again thats what it comes down to not heres the latest thing. Here are old friends interesting content decisions on a day where amazon will stream its first nfl game tonight, jim yeah. Its very sudden glad you got this interview. One of our absolutely favorite shows. This is us is big. Its all overlooked because we are convinced the networks dont know how to produce content which is nonsense. Just nonsense. Well get mortring e adwith jim. Dow is down 20 who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to initymobile. Com. Lets get to kramer and stock trading. Abbott labs has a competitive product to their Glucose Monitoring it has certain characteristics that people find attractive. This is a real shot and abbott labs has much more promotional ability and abbott is a buy off of this even up here because of the fda and medicare are going to like this i want to hear from dexcom we have the hottest stock which is thor. Its a hammer on the short recreational vehicles. Its a big deal. And then one of the Great American companies, equipment stocks have been red hot i cant wait to speak. So i think we have an exciting show tonight cant wait, jim mad money 6 00 p. M. Eastern. When we meacco bk jason furman on tax reform in a moment. Duncan just protected his family with a 500,000 Life Insurance policy. How much do you think it cost him . 100 a month . 75 . 50 . Actually, duncan got his 500,000 for under 28 a month. Less than 1 a day his secret . Selectquote. In just minutes a selectquote agent will comparison shop nearly a dozen highly rated life Insurance Companies, and give you a choice of your five best rates. Duncans wife cassie got a 750,000 policy for under 21 per month. Give your family the security it needs, at a price you can afford. Since 1985, selectquote has saved over a million families millions of dollars on Life Insurance. Good thursday morning. Welcome back to squawk on the stre m Carl Quintanilla with susan eisen and david faber. Were looking at our first positive september since 2013. Our road map for the hour begins with tax reform on the table administration and House Republicans unveiling their proposal cfos from two Different Industries will join us. Leadership changes being announced at chevron and kellogg. Well give the details amazon getting ready to kick off its nfl streaming. What the move means for the companys stock price. Trump administration and republican lawmakers unveiling their plan for tax reform. The proposal would provide cuts to corporations and individuals. We go to washington for more details. Reporter were getting early estimates of how much this tax framework from the big six would cost 2. 2 trillion. Thats the number from the center for responsible federal budget loss assumptions are baked in there. This plan doesnt have a lot of details. Its way bigger than Senate Republicans had in mind. They are looking at a 1. 5 trillion deal and the house had planned for it to be deficit neutral. So its going to be hard for them to get these numbers to work on our air earlier this morning, gary cohn said that he does not agree with that analysis because it doesnt factor in Economic Growth he also emphasized 20 corporate rate is nonnegotiable. We would have liked to start lower and given ourselves at negotiating room were at 20. 20 is a bright line test the president said it yesterday. Hes very clear. Were not going over 20. 20 is the top of what were willing to go on the Corporate Tax rate house speak paul ryan was on cnbc and in the past he had given a range of low to mid20s for the corporate rate but today he said republicans in the house are committed as the white house to holding the line at 20 guys, well see where it lands back over to you a lot more to come, of course President Trump unveiled that tax reform he promised tax cuts and econom boost for middle income earners they will bring. Paul ryan speaking to cnbc earlier called the new plan a game changer take a listen. There is not another thing we can do in congress, in law that will do more to grow this economy, lift wages, help people get a raise and bring confidence in our economy and hit that 3 growth average we used to have than doing tax reform. This is it this is the game changer for our economy. Were joined by jason furman former white House Counsel of economic adviser and mark summerland mark, ill start with you. Its been a while since we had a chance to talk all interested to hear your thoughts ill give you the broad opening here i mean has this thing got a shot and what do you think about the plan as what we know at this point. It definitely has a shot. Taxes are home for republicans this is the plan we were hoping to have in february. We now have it in september. Its a little late but it does what is the most important thing that we need and when you look at tax, the big question today is are companies and capital trying to come to the United States, or are companies and capital fleeing . We simply need to correct that system back in 1980 the typical Corporate Tax rate was 40 and now its about 20 around the world so we heard this morning director cohn, speaker ryan drawing a firm line around a 20 Corporate Tax rate which would make us competitive again with the rest of the world. Jason, i assume you embrace another view here. What are your thoughts particularly given the 2. 2 trillion some are citing in serls of not being paid for . We need to reform our tax code we need to bring the rate down mark is absolutely right everyone else in the world has lowered their rate while we havent. But we should do it in a way that the house started out, the white house started out, that senator mcconnell started out and Business Roundtable started out. All four said it should be revenue neutral, not adding to our deficit. 2. 2 trillion is an enormous amount to add to our deficit the debt to gdp tio today is twice as high as what it was when marwas back there cutting taxes. The policy may have made sense back then. Can you debate the pros and cons makes no sense now while adding to our deficit theres much better way to reform the tax codes than passing a burden to the future we won get that 3 growth that speaker ryan is calling for if we have these big deficits weighing on us that will outweigh any economic benefit. Jason, the democrats have become the party of fiscal discipline and everybody sounding the alarm about the deficit. Where were the democrats and liberals over the last eight years . Where were they the Affordable Care act cut a trillion dollars in the second decade the tax rates in 2012 cut a trillion from the deficit. Ive done an awful lot of deficit reduction. Balanced the budget for four straight years this is an issue i cared about an issue that democrats have cared about. Again, all im saying is why dont we do this the way that every one of those republicans, white house, congress, Business Community as recently as six months ago said we should do Mitch Mcconnell is out there saying he couldnt do this by adding to the deficit. You wont find any serious economist out there that says this will generate enough growth to pay the 2 trillion cost. No one thinks that it will be added to the deficit. Thats a big mistake people should speak out. Its the wrong thing to be doing right now. Mark, your response to that your one of those that believe it will get above 3 gdp growth and pay for it self . In the first year or o you can certainly get above 3 gdp growth over the longer i dont disagree with that. Over the long run it depends how much higher Capital Stock you get that bleed into productivity growth and bleed into wages ill give you a couple of numbers to put this in perspective. One, were expected to have 240 trillion of gdp over the next ten years under cbo. So these are we deal with big numbers. Some of them sound scary second, by cbos own rules every tenth percent of growth you can get aedes about 300 billion in revenue over a ten year period so while jason is right that tax cuts do not pay for themselves and i would expect in this process as it goes through the senate and as it goes through with deficit hawks the plan will shrink in terms of the impact on the deficit and it should. But you can certainly, if you can actually make the plan work and get higher growth thats the most important thing what do you think from a legislative standpoint as it goes through the process whats going to sling is the offsets in this plan so far you put out border adjustment, you float different things, they get shot down its the offsets that will get shot down. Maybe well add some gimmicks in the legislative process to mask the cost but the costs wont go down you heard the 20 rate is nonnegotiable. I hope they do a bipartisan approach when i was there in 2001 and got to be on the negotiating team for the tax bill we got 13 Democratic Senators on board which was an important part of why the tax plain, stayed most of it over time. That doesnt seem to be where they are going thiti around. And when they need to hold 50 out of 52 senators, the reality is they will have to deal with the deficit hawks and the number will come down below a trillion dollars when all is said and done thats the key point isnt it, mark trying to go this alone one reconciliation and cobble together those 50 votes will be very difficult jason, do you see any hope the last administration tried to get some sort of bipartisan deal done to bring down taxes it went nowhere. Is there any expectation on your part as mark alluded to they will get to some i solution here . I would love to see that. As i said at the outset i wont defend the tax system we have now especially on the business side its indefensible what i wish you had seen is the way tax reform happened in 1986. One treasury put out a serious plan hundred of pages long. Lots and lots of details about the offsets thats very different from what weve seen here and, two the ground rules were set from the beginning and it was revenue neutral and distribution neutral you can get a lot of democrats on board if you say revenue and distribution neutral from the beginning the plan is to cut taxes for high income households, raise the deficit and thats not something youre going to get a lot of democrats on board or you should because ultimately that would hurt our economy. Yeah. Well we got a lot more details to come and a lot more wrangling to come. Thank you for joining us now im sure well talk again soon thank you very much meantime the Federal Reserve vice chairman Stanley Fischer making his final speech before stepping down early. Its coming next month Steve Liesman has the news speaking in london whats his final speech central bankers should be vigilant the kind of words you expect from a guy who is known for teaching other central bankers. Heres his last quote. History and Financial Markets are masters of the art of surprise and never say never because youll sometimes find yourself having to do things that you never thought you would. Hes talking about things like getting into quantitative easing he makes one last pitch. His criticism of doddfrank that he thought took away too many tools from the fed to fight the crisis they are not large and Battle Tested i know you know stan fisher and i think youre not surprised that this is the way he would decide to choose his last words as vice chairman my guess well hear from him as a civilian its interesting we heard that same message from janet yellen at jackson hole after stan fisher has been warning not to roll back too much of the financial regulations. Very much a topic du jur in washington they think too much was taken away from their ability to act this is what the critics of the fed have claimed is the price of them acting, even though they thought they had to do it and do certain things, to save the Banking System theres a political backlash this is the eco of that backlash steve, thank you. Steve liesman on that speech when we return the president waiving the jones act. Juanet a live report from san take a quick look at stocks. Dow is down. Dow is down. Were down 29. Youll want to check tripadvisor. We now instantly compare prices. From over 200 booking sites. To find you the lowest price. On the hotel you want. Go on, try something fresh. Tripadvisor. The latest reviews. The lowest prices. Want sure ck . Alright, looks like weve got chips, popcorn, pretzels . Pretzels plain, sourdough, spicy, sesame, honey mustard, chocolate covered, Peanut Butter filled, this ones in german, it says, reindfleisch . Plain. Great. So what are we gonna watch . Oh show me fall tv. Check out the best of the best handpicked fall shows on xfinity x1, online, and the Xfinity Stream app. Thirsty . President trump waiving the jones act restrictions for puerto rico for ten days which allow foreign vessels to ship from american ports into the territory. Shipping companies are protesting that it will make the problem there worst. Lets get right to Contessa Brewer reporter good morning. Were just wating this cargo ship coming in to dock here. It is loaded with those Cargo Containers full of supplies for puerto rico. Supplies that people desperately need they say they are feeding their grandchildren crackers no Running Water cant get fuel look at this there are 3,000 Cargo Containers here, one of the biggest shippers in puerto rico. These are refrigerated units each one of them operates on a generator. Crawly is now 4,000 gallons of fuel every single day to keep the operations here at their terminal up and running. But Truck Drivers cant get to the terminal to get their container out. Each one of these has medicine and food, construction supplies, building equipment and all of that needs to get to puerto rico at this point, though, were looking at Truck Drivers who cant be reached by their businesses, by cell phone. They dont have the gas to get to work. Even when they do get to work their semitrucks dont have fuel the problem is the supply chain. Heres what the executive pror crowley told me about the problem. People of puerto rico are fighting hard but theres no way were going to be able to do this by ourselves. We need much more support from the federal agencies right now we ask that the Trucking Companies that in a way thats possible please come and start moving the cargo here because we need to make room in order to receive the cargo thats on its way. Reporter i just wanted to give you and example of the Grocery Stores 226 supermarkets around the island ready to open but dont have diesel for their generators at crowley terminal alone, it has 104 containers here. Another distributor has 114 containers walmart has 70 containers. They are stuck when you talk about lifting the jones act the executives say how will that help its not that we dont have the supplies we have the supplies we dont have the Distribution Channels to get them from the terminal off site and oh, by the way they are running out of room look around. No more room left to put containers here. Its all fuel. The problem is how do you get the supply chain back up and running. Diesel fuel is one of the big missing links here contessa, if youre able to get fuel there, via shipments somehow is the bottleneck or is it the drivers, if you get drivers are the roads passable reporter its a great question first of all heres what crowley executives are telling me. They say the problem is not natural theres no fuel. Theres fuel plenty to fuel recovery on the island the problem is distribution. They got Security Issues they got federal agents guarding the federal Distribution Centers. They got a requirement that there are two armed Law Enforcement officers accompanying every truck to deliver fuel to gas stations and issues with drivers. Got to get the drivers from their homes to place of employment that takes gas and cell phone communication and then you got to fill up the semitrucks so they can come pick up these Cargo Containers and move them to the Distribution Center one problem that they havent addressed is how you get the shipping containers back to crowley, back on these ships, back to e United States so they can be refilled with re supplies they are not even there yet. First they have to make more room contessa can i ask a broader question of what youve seen so far the devastation in puerto rico the economic problems have been well telegraphed 74 billion in list. A recession. The list goes on and on. Youve covered recent hurricanes in houston and florida that if puerto rico didnt have such deep economic problems and maybe some representation in washington it would have been better prepared for a category 4 hurricane . Reporter the pro state folks in puerto rico are making that point. This illustrates why we need to be considered a state and considered on the same level as florida and texas. Theres resentment about that here on the ground in san juan itself, there are businesses that are operating on generator power and they are serving food and they got refrigerators going and microwaves and all of that as soon as you leave this area and we havent been able to. Fuel is in short supply, news media have to be very careful how we spend those resources when you get outside of the city center, the situation becomes dire very fast let me give you and example. People who live uphill need their water pumped theres no fuel for those pumps. They have no Running Water the distribution supply chain that would be getting bottled water to them is broken. The bottled water is all sitting here at the terminal Contessa Brewer, it sounds like a logistics nightmare a multiple of what we saw in rveynd irma. Unbelievable story well come back to you Contessa Brewer is in san juan when we come back amazon is getting ready to kick off its nfl streaming. The Company Announcing some new products ldiuss what it means for the stock. The dow down 22 points squawk on the street continues in a moment. From prudential. Look forward to your 401k plan. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. 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Amazon is set to stream its first nfl game later tonight as it kicks off its streaming partnership with the nfl for more were joined by amazon analy analysts a lot of news between the game tonight, the echo refresh yesterday. What does tonight mean, if anything i dont think it will be meaningful just part of the strategy that amazon is pushing, getting deep into the home with devices as well, getting more traction in the home voice acty indicated devices just pushing further into it and being competitive with apple, with microsoft as well and aws as well as with netflix. From a production standpoint tonight, in both engineering and just shine, packaging what do they need to do and how does it need to compare to what twitter did with their games they obviously just need to make sure that the feed is flawless and High Resolution is not interrupted in any way give the customers what they are looking for sway high fidelity feed uninterrupted and that should go a long way we talked to mark cuban earlier in the week nothing come fires sports or any production the way it appears on television, broadband is just not that reliable. Is tonight a test of sorts i think that test was already answered to victors point earlier. Twitter feeds last year were autiful. From an infrastructure capability, amazon every bit as good as twitter if not much better because of their assets in the cloud i think its more consequential, though, in terms of their advertising strategy what they are really doing here and testing here is a way to attach attribution to the, the linear ads and show correlation between Brand Marketing in these type of events to where they generate sales thats the bigger picture. This is a small test and a starting point for that strategy the twitter feeds may have been beautiful but they only averaged 266,000 viewers i think if you compare that to a thursday night football with 15 million its a tiny fraction what do you think amazon will do differently to get more . Yeah. I think one they have a lot more audience already watching Amazon Prime Video than people were tuning into twitter. Theres a bigger base to draw from its going to take a long time for these digital only feeds to rival the broadcast audience thats years away. Well have to start with small numbers. I expect amazon will do somewhat better but still not blowing down the doors down in terms of audience numbers how do you feel about the stock . I like it in three years, if the Current Trends persist which is taking market share, aws, market gains in advertising, he sees amazon becoming a force in advertising, ai across the different plat forms in the home, entertainment, i think they can become in the next three years, they could supplant apple to be the largest market cap in the world. Youre almost out doing rob here in terms of positives but im not quite sure he did. You know, you are seeing a 1. 6 trillion market cap. Whats the reaction from clients when you say things like aws will be the largest, i think you said the most valuable tech company. You get some attention. People are interested in this framework in the way of thinking about it because amend azon is challenging stock. They have some of e best reinvestment opportunities available in theorld why would they show earnings, pay taxes and grow a balance sheet. At the same time we have to have an understanding and at least a framework for where they are going and what this might be worth. Theres quite a lot of interest in that note and that Analytical Framework illustrating for what it could become. Theres various reports about what they might want to do with pharmacy management, buying stores down the road to complete their programming offerings. Are they done buying big things. No. This continues over the next decade amazon will continue to invest in category expansion, pharmacy, continue to invest in video. Amazon will become all things i think to everyone over the next decade the they are of them being the only retailer, you think is l legitimate i think so. A few years ago i was pitching amazon would be disruptive to Retail Companies mostly in the u. S. Hell see that internationally as well. Across retail, across advertising, aws and Technology Amazon will become a dominating force. It will cost them. Its a tiny cost amazon will have to pay. Revenue growth will continue to accelerate and youll see leverage and margins expand. Rob, let me end on that note. He just said all things to everyone is the risk for amazon then one on the regulatory side when you hear the way you guys describe its potential dominance in numerous businesses you have to start to wonder whether that argument of a monopoly will gain credence and perhaps thats the road block i think thats true for a lot of the mega caps in the technology and internet sector as they just grow more and more market power looking at the regulatory policy i think that would require a policy change and thats not out of the question, but within the current framework there really isnt harmful things these companies are generally promoting good things for the consumer they are not intentionally stifling competition there are policy frameworks for not discouraging companies from being successful maybe theres a policy framework modification in the future but under the current rules it doesnt look like theres any harm being done and amazons share of overall retail is still very small under the current rules thats the key in that sentence. Thank you guys good discussion. Lets send it over to sue herrera. Good morning good morning. Heres whats happening at this hour the department of Homeland Security has waived the jones act. That lifts shipping restrictions for puerto rico for ten days because of the impact of hurricanes irma and maria. Widespread devastation has caused a lack of electricity, drinking supplies, food and gasoline Airline Passengers around the world were delayed or prevented from checking in due to a software failure. The spain based company which provides the software confirmed a networking problem caused the disruption ryanair scrapping 18,000 flights in a second round of cancelations following the airlines admission it messed up the scheduling of pilots vacation and playboy founder hugh hefner has died hes credited with ushering in the sexual revolution in the 1960s with his mens magazine. Hes survived by his wife and four grown children. He was 94. Thats the update. Ill send it over for the inventory Port Department of Energy Reporting an injection for natural gas vince up 58 billion cubic feet less than expectations and also substantially less than weve seen for the three year and five year averages. Prices were trading a little bit lower here and they spiked all the way up to 3. 06, close to 3. 07 this price has backed off the 3. 15 high we saw traders anticipate once this unseasonably warm weather starts to back off Natural Gas Prices will go back down breaking 3 again. That cube few weeks away back to you. Thank you and when we come back ceos taking on tax reform well be joined by the heads of two industries to discuss the impact of the recent gop proposal plus two big changes at the top. Chevron and kellogg announcing they are getting new ceos. We have the tails for you when we come back new mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov president telling indiana crowds about his new tax plan last night which includes lowering rates for corporations and businesses gary cohn speaking with cnbc earlier this morning on the benefits of a lower rate for american business. Take a listen. Deregulation is important and were running down that path were making it easier for businesses to operate and expand in the United States but more importantly our tax plan will drive growth if youre looking to invest capital in the world or looking to start a Business Today and you look at our 35 Corporate Tax rate versus the rest of the world you wouldnt choose to invest in the United States. If we lower that to 20 you start with a 15 tax advantage where we are today that becomes much more enticing for you to want to operate out of the United States joining us to discuss, American Apparel ceo and, another ceo. We want to talk winners and losers specifically in Corporate America for this plan. The retailers didnt get the border adjustment tax. They pay among the highest tax rates thats mostly domestically exposed. Are they the biggest beneficiaries. Retailers are thrilled. Our consumers are thrilled theres no question about it this could be good for us but dont mistake it, we do have some question marks. Whats your biggest questions . Well, a couple of questions you know, President Trump has been very voluntacal. We did defeat the tax. But theres the figgy pudding strategy theres concern. What if nafta were to implode. What if chorus implodes. We would raise prices. Youre talking about concerns away from the tax field. No. Theres no pain for the tax field. Thats what bothers us is there a back door pay for we want to make sure well take the tax cut put more money in our consumers pockets but watch out, watch out for that back door we dont like this reconciliation process that speaker ryan was speaking about this morning because its private. We like public we want everybody to know whats going on those are our concerns in a nutshell frank what about the tech world . For those Technology Companies that keep a lot of cash overseas are you expecting trillions of dollars to come back on shore or is that an exaggeration. Ive and about proponent of Corporate Tax reform for a number of years. And i thinits defina very big positive for u. S. Based Global Companies because it allow as much more balanced competitive world. Because the tax rate right now 35 , the highest tax rate in the world for corporations having the ability to have a lower tax rate enables many Technology Companies and companies in general to be more competitive globally yesterday the head of met life had an oped in the journal in which he says as long as tax rorm doesnt threaten by companys Business Model i support it do you see this environment where everybody looks at the collective good even if its a bit of a sting to their own sector it can be a sting people will look for the elective good. We all believe lets face facts. Were among the highest taxed country in the world, except for maybe emirates and chad. You take it, we want it. We want to make sure its done right. Well be gender neutral on this. Every division, every company, every sector will take it. But lets be sure we do it right. Highest tax when it comes to corporate. Yes corporate. Frank when it comes to the actual expectations you have in terms of epatriation, what well see and what will take companies to get their money back whats the right formula combination of lower tax rate and repatriation back to saras question. That will bring us significant amount of cash to the United States and most companies, my company has been a part of and other companies, ceos and cfos have talked about making investment, creating jobs in the United States because they will see their business not just the buy backs. Theyve had trouble accessing cash why would this incentivize them. It will provide additional amount of cash a lot of that cash is pretty much stuck outside of the United States having that cash and making that investment in the United States, helps the economy, helps businesses, so i think it will be a major advantage for the u. S. Economy and i think also for the Global Economy what if this thing is ten years. What if it sunsets does that impact businesses long term decisions my understanding of whats being proposed and of course it will go through various stages as part of going through congress, this is to be more permanent. Thats more important here not to be a short term couple of years. Its important to have a change over a longer period of time tax law hasnt been changed for many decades well see well have you back on thank you very much. Were watching roku today. Started trading at a 14 a share. As you can see nice opening trade up 13 to 15 and change. Well watch that dow has gone green despite being down from 5 06 squawk on the street continues squawk on the street continues in a moment. Im here at the Td Ameritrade trader offices. Squawk on the street continues in a moment. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Why is the institutional memory of wall street is gone when it comes to inflation and rate hesik find out at trading nation more squawk on the street coming up. Some news if you following the back and forth on the proxy battle between peltz and p and g. Nelson peltz won them over after launching a proxy battle p and g spongd, the board thanking the alumni but saying they are not taking the easy way without and conducted their own Due Diligence to conclude that peltz is not the best solution for the bod. More back and forth on that lets get to the cme group Rick Santelli in chicago with the santelli exchange. Good morning. I want to welcome my guest, charles mellard. Welcome, charles glad to be here, rick listen, were in an interesting time in the country. Were trying to do tax reform and theres a lot of detail here we want to hear the cbo, many on both sides of the aisle want detail how it will look five, ten years down the road but it looks like an exercise in futility if you learn a lesson from minnesota went through. They changed some rules regarding pension liabilities. Tell us, charles the government accounting standard and gasby said you could use your expected rate of return to value your liabilities. So almost nobody would actually want to value their liabilities today at 7. 5 but most public plans have been at somewhere around 7. 5 . For a corporation rates go up, go down, liabilities go up and go down because the Interest Rate they use changes. So gasby said we cant do that 7. 5 is too high so they made it lower. Suddenly what looked like, lets say, a trillion of underfunded which is an enormous amount anyway for public plans is nearly 1. 2 trillion of underfunding minnesota still owes the same per year but the present value calculation of it has changed. Right additional 6,000 forvery man, woman and child in the state of minnesota. To me what is a big issue here is that were talking about taxes and trying to get a fine pencil but in the big picture we need to address this. Many states cant go bankrupt. How is this all going to end especially at a time where government treats this issue in their own backyard so much different than they are treating the taxation of its citizens privately . Its a great point. Great point. Its not really a ticking time bomb because it wont explode. More like a slow leak and that tire will go flat. About ten years ago philadelphia spent about 5 of its budget on pension and retirement today its about 15 so thats either a 10 budget cut for Everything Else or a 10 tax hike in a city that cant afford a 10 tax hike. Where were talking about federal taxes which of course is important you need to realize if you live in philadelphia and many other cities have similar robs, if you dont do something about the pension liabilities, its the same thing as having a tax hike or a budget cut exactly taking it a step farther what did we learn from the credit crisis uncle sam takes responsibility for a lot of things. So in that regard were now trying to lower taxes and i one its a jolt for growth but in the end this issue is going to force higher taxes because the federal government most likely will have to get involved. Your final thought is that something we should worry about . I dont think theres any room for the federal government to actually step in and bail things out people should understand cities can file for bankruptcy and states cannot. Some of these pension liabilities depending on your state perhaps could be cut bust most cant have to be paid. People need to be putting their contribution in now. Gasby makes a rule, called your annual required contribution the problem is the word rewired is just a word and if states dont make their contributions they will make this hole deeper and deeper charles, its really a frightening topic. We need to get some of these things on automatic pilot under control. David faber, back to you now its time to send it over to mr. Ford for whats a ls coming up on squawk alley. John facebook, google, twitter, now asked to testify in front of the senate Intelligence Committee as President Trump pressures facebook atrk zuckerberg responds whs silicon valleys next move well look into it next on squawk alley another big secret of season lives of the super rich premieres tonight. Robert frank joins us with a look at the ultimate condo tower for car lovers hey, robert. Were going to take you tonight to the Porsche Design tower in miami its got a high speed glass elevator for your car, so you can roll it straight into your private residence in the sky check it out somebody can drive in this building, pull into this little secret chamber and the whole car and you are whisked up to the apartment. Thats it just an elevator ride home gil is the developer behind this porsche lovers paradise and his idea the deservator. While residents dont have to own a porsche to live here, gil says an appreciation for the german roadster is a must, as it inspired every inch of this beach front building i love their look, i love the aesthetic. I said it has to be in the building aside from the deservator, residents can enjoy a state of the art spa, private restaurant, and a racing simulator dreamed up by the Porsche Design team. That building is sold out, including the 32 million penthouse, which just went into contract thats got 20,000 square feet and room for your 11 cars at the very top of that building. Guys, back to you. Love it the deservator why shouldnt your car have a view of the ocean . Exactly robertfrank, thank you so much when we come back, black berry reporting an unexpected profit the stock is up 13 . The ceo of blackberry, john chen, wi be lljoining us next on squawk alley. Dont go away. Is the monolithic view of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, we take you to washington, d. C. Steve scalise making his first appearance on the house floor since being shot june 16th in virginia on that day, taken to the hospital in Critical Condition and 106 days ler is back at work take a look. [ cheers and applause [ cheers and applause [ applause ] the chair wishes to mark the return to the chamber of our dear friend and colleague from louisiana, mr. Steve scalise [ applause ] our prayers have been answer his bravery and his familys strength have been such an inspiration to this house and to the people it serves america is grateful for this moment the chair now asked for what purpose does the gentleman seek recognition . To speak out of order, mr. Speaker. [ applause ] the gentleman is recognized for as much time as he may consume. Wow, thank you, mr. Speaker you have no idea how great this feels to be back here at work in the peoples house [ applause ] as you can imagine, these last three and a half months have been pretty challenging times for me and my family, but if you look at the outpouring of love, of warmth, of prayer, my gosh, jennifer and i have been overwhelmed with all of that outpouring, and its given us the strength to get through all of this and to get to this point today. And it starts with god [ applause ]