Transcripts For CNBC Squawk Box 20171009

Closing up for the fourth week in a row the nasdaq once again closing at another high and lets take a look whats been happening in asia overnight markets in japan and south korea are closed for public holidays. You did have the china markets open with the shanghai markets being closed after a week long holiday. That index was up by. 7 of a percent. In europe this morning in some of the lerl i traearly trading, like things are relatively flat. Slight declines, very slight declines in germany and france the ftse down. Spain is up by. 7 of a percent finally, check out crude oil prices and youre going to see that right now it looks like wti is down by by 10 cents still below 50 a barrel at 49. 20. Thanksgiving in canada. Today unless someone is playing a joke on me they tweeted that in there i dont know what that means exactly. Is it the same they didnt have. Turkeys, pilgrims thats our holiday, isnt it . One of ours. Come on, joe. It can be a totally different reason to give thanks maybe. Lets say happy thanksgiving to our friends north of the border. They could be having thanksgiving the day their country happily located right above the greatest country in the world. October 9th. I would give thanks for that. Every day exactly you learn something every day here hsbc needs a new ceo did you know that . I did now hsbc plans to name a Company Insider to be its next ceo the times of london says hsbc wants john flynn to take over from sturewart gulliver now you have something to talk about at a Cocktail Party tonight. The change at the guard at hsbc. Honeywell plans to spin off some noncore assets and create two publicly traded companies. Reuters says the company will resist calls by activist investor dan loeb to spin off the Aerospace Division. Honeywell, we talk about all the time im not sure what dan loebs problem is its been a monster. Closed at an all time high ges been a laggard. Dan loeb can say all he wants but honeywell is just fine in my opinion. I tonight know what his problem is where do you start with dan . No, hes a great man good man come on. Curious about his problem. I dont know what his problem is in terms of honeywell. Maybe he should be giving thanks today, you know right good to give thanks just about every day, i think barrons is positive on walmart. It jump starts profits and Revenue Growth separately walmart announcing that it will launch mobile express returns at stores when you buy its items online. New this morning, Richard Thaler has won the nobel economics prize. Hes from the university of chicago. Hes a guest whos been here with us on squawk box before some of the things he has weighed in on include limited rationality at this, social preferences and lack of selfcontrol apparently hes shed some life on the notion that new yorks prize. Case western reserve grad due wait from the great state of ohio in cleveland. Well see what happens right, guy with the yankees, they won last night. Did you stay snup. I stayed up for the entire game on friday passive. Youre passive. Its fun to watch looking for a new sport no, im kidding anyway, i did watch the entire you can turn to english football perhaps. Thats right. Your favorite thats an idea. Arsenal or tottenham hot spur i have you today but i have someone who can bring mea long in terms of tutoring me. Daniel ross sorkin . Media mogul Harvey Weinstein has been fired from the company that cofounded amid Sexual Harassment allegations the weinstein companys board revealing that his employment has been terminated effective immediately. They detailed decades of Sexual Harassment allegations against weinstein. On friday weinstein was placed on an indefinite leave of absence after the firm said it would investigate the long rumored allegations according to variety. Along with his firing, weinstein is said to control roughly 20 of the company a source says a member of weinsteins boards will discuss changing the corporate name. What happens . I almost just said no to that. So its sort of like the dam breaking so a couple of people finally came out and said something with their personal anecdotes a lot of people over the years obviously didnt feel comfortable saying anything or sure. Afraid to or whatever and im just wondering, if youre a major Motion Picture star right now, something did happen, you probably still wouldnt say anything about it because you didnt say anything for so long, but theres still perhaps and, yes, the questions are but there will be some people, i guess, that come forward and after reading some of the anecdotes i dont know if i want to know the details of some of it. Thats whats so shocking about it. Shocking, yes. Open secret that he was kind of an out there personality but i dont think anybody had any ideas about the details of some of these things. Exactly so well just leave it political news, the white house releasing a new list of immigration principles its part of a proposal to replace daca that is the obama era progra that protected nearly 8,000 dreamers from deportation. Allowed them to secure work permits. Among the items on trumps list, money to fund the border wall. Thousands more immigration officers and a crackdown on unaccompanied minors who enter the United States. Much more on the immigration situation in a few minutes. Vice president mike pence abruptly left the colts 49ers Football Game after a dozen members, a dozen of the 49ers team knelt for the National Anthem a senior official said the decision was plants ahead of time that the official said the Vice President had been hopeful that all the players would stand. He had discussed leaving the game with President Trump if that was not the case and then in overtime he did not get to see the colts actually beat the 49ers, which i read happened i didnt see the game. I did watch some yesterday. Im sure he was home to watch the overtime im certain he did in fact watch you know what i did watch yesterday . I watched the giants lose. I didnt see the jets win. He thinks the jets are headed to the super bowl, your husband. They did kick the longest field goelg in history. 57 yards. Green bay dallas was pretty good. Outstanding. If you are a giants fan, suffering giants fan, you took solace in the fact that the cowboys went down. Aaron rodgers, some guys do stuff like that. I would encourage you to ask mr. Quale, the season starts this sunday when the jets of new york play the patriots of new england. I know that. To quote coming to america if you recall that. I know that lets get to the other markets not the sports markets now joining us is David Lebowitz beth ambivino and our guest host is guy adami okay so its been a its not quite a meltup, but its been a trickle up or something. Its been pretty solid advances quarter after quarter. Yeah in terms of jobs . No. Im just talking about if you were to deploy money now, youd be risk on or risk off if i was allowed to yeah. You know, i see the momentum is there it seems that worries over what happens on capitol hill doesnt seem to be filtering in. What about the jobs report on friday first i dismissed what happened with numbers was employers couldnt get into stores i was looking at the Household Survey you had 500,000 people coming back to the market and twice that amount getting jobs my one worry is that people get excited about that wage jump im a little bit more circumspect on that. I think the reason why we saw that jump was because a lot of people in low paying jobs werent able to be accounted so i think it was distorted. Do we want a good number or for people that are long the market, do we want a good number or we dont want a good number is it still about the fed . What the fed will do . Lets see. Whether the feds move in december or they move in january, we know theyre going to move. I think thats already baked in the cake most likely we at s p global november is when theyll feel more comfortable making that decision. David, what are you telling clients right now . I would agree with a lot of what you said about taking the employment numbers with a grain of salt. I think the trend in earnings has, in fact, been firming labor markets tight, 4. 2 is the feds estimate for unemployment at the end of this year. So i think what weve been saying to clients is, look, the fed looks on track to hike once before the end of this year in our opinion, possibly the beginning of next year as long as the data remains healthy. The data remains healthy the economy looks good as long as the fundamentals are there and the feds going relatively gradually, we think theres still up side in risk markets not to mention the potential policy reform. So, adami, what did you guys say about the jobs report on friday do you want a good jobs number of course you do. You absolutely want a good jobs number there was some strength there. Let the chips fall worry about the fed later. Theres been strength worry about the fed later. My concern will be the fed has seemingly done everybody right in terms of the fact that the markets at an all time high this morning you have to ask yourself, how is this exit plan going to how is it going to formulate and how is it going to end i cant believe theyre going to carry this landing and get us into this position and get us out of this position and go unabated to the up side. My concern is fed misstep which you have to believe is coming will sort of derail things. Misstep, you mean raising rates too quickly. I just think that the market yes. I think first of all, i think theyre absolutely behind the curve. Theyre going to raise rates and see what happens weve been in eight years of basically policies weve never seen in the history of this country. Put on a prop trade thats the biggest of history in man kind easy getting into a trade, not as easy getting out of a trade i was going to add one more thing. We were talking about what do markets think the feds going to do what if the fed didnt move on the Balance Sheet stabilization. What did they see that we dont know i think communication will be key. To your point of a misstep, that gets exacerbated as you see the ecb start to tiptoe towards the exit as you see this global liquidity that weve had from policy makers be taken out if the market isnt ready for the fed to do something that the fed in fact does. How much would it change things or complicate the situation if you have a new fed chairman coming along . Talking about communication issues potentially potentially changes in what the markets been expecting. Any of you, if theres a new fed chairman, what does that mean . Obviously that throws another unknown into the equation. I still think yellen has a decent shot of being reappointed. I think in order to see some of the policy developments that people are expecting you need very low Interest Rates and shes about as dovish as they come throwing an unknown, particularly somebody without an academic or as strong of an academic background would cree aid fed funding. Its not just the chair youre talking about several more seats. Right. That is a key market different fed all the way around. Going to be a concern. The president was pretty critical of this fed when he was running for president. Now he seems to sort of embrace them a bit more. Now i totally get it, by the way. I understand how politics work i do agree continuity especially at this point would make a lot of sense, but if gary cohen is still in the mix, which apparently hes not, i mean, whos better suited to get out of the biggest position of all time than somebody who did it for a living for a long time at Goldman Sachs . Now i understand hes not an academic, wasnt trained that way, but it will be interesting to put a trader in a position that a lot of people think requires a traders expertise. Good point. I thought you were going to say who would you like to get you out of it other than the person who got you into it. But the person who got you into it the person who got you into it is writing books, doing speaking engagements. He had friends along the way and the current person was enabled that to happen shes fully engaged in the numbers on the way in. My inclination would be to allow her to finish the task at hand youre not a big fan no, i dont know how its going to end. I dont know how its going to end either. I thought it was funny you said, cohen is used to getting out of positions where theyre potentially perilous positions. Yes that a risk firm gets into that a risk has to manage. Interesting. Getting into positions are relatively easy thing to do. Its getting out where you need some artistry. Get out but you might lose your money on the way out. Sure. Which none of us want to see. No. Unless youre looking for noted, again. Goings to use that a lot. Thank you. Beth an, when we introduce you now we say Beth Ann Bovino we dont say where youre from did you notice that at the top im from new jersey. We figure youre so wellknown now that everybody is going beth ann. Isnt that nice. Cher and after that madonna thank you. When we come back, political roundup. Trump versus corker. Pence walks out of an nfl game and the white house issuing new immigration priorities we have a rundown and what it means for your money thats next. People dont invest in stocks and bonds. They dont invest in alternatives or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful can happen. Those people might just get what they want out of life. Or they could get even more. But we should be seeing ymore range of motion. , im fine. Okay, well lets see you get up from the couch. Im sorry, what . Grandpa come. At cognizant, were uniting doctors, insurers and patients on a collaborative care platform, making it easier to do whats best for everyones health, every step of the way. You may need more physical therapy. Ugh. Am i covered for that . Yep. Look. Grandpa catch grandpa duck woah ha there you go grandpa. Keep doing that. Get ready, because were helping leading companies see it and see it throughwith digital. Witness katy perry. Witness katy perry become a legal witness. Witness katy perry and left shark. Or a card shark. Grandma . Witness katy perry work. Witness katy perry firework. Witness katy perry swish. Witness katy perry. Aaaaaaw look at that dog katy perry with music videos and behind the scenes footage, xfinity lets you witness all things me. Welcome back to squawk box, everybody. The white house out with a new priority list for immigration. Ylan mui joining be us with more on that. Good morning. Reporter good morning, becky. President trump laid out those demands last night and topping the list is the border wall. The white house calling for full funding and complete construction of the wall it also wants to crack down on sanctuary cities and move to a merit based immigration system in a letter to congress the administration said these priorities must be reflected in any bill that addresses the children of undocumented immigrants, also known as the d. R. E. A. M. Ers. Democrats are furious about this here is a joint statement from senator Chuck Schumer and representative nancy pelosi. We were open to reasonable Border Security measures alongside the d. R. E. A. M. Act this list goes far beyond what is reasonable. This list fails to have any attempt at compromise. Chuck and nancy thought they had a deal a month ago that had explicitly ruled out the border wall this isnt going to help trump convince schumer to Work Together on health care. The president said this weekend that he called the senator from new york to talk about the possibility of a temporary fix for obamacare. Doubt that is going to happen now. Meanwhile, trump is also facing fresh blow back from within his own party. Senator bob corker of tennessee told the New York Times that the president s cryptic and threatening comments could be leading the country, quote, on a path to world war 3. Corker is clearly uncorked and hes definitely going to be one to watch as lawmakers wrestle with their very packed agenda. Joining us to talk more about all of this is Nick Johnston he is editor at axios. Nick, thanks for being here today. Hi. How are you. Good morning. Thank you lets start off with the immigration story because thats on the front page of the wall street journal and New York Times. Does this mean the bridge to the d. R. E. A. M. Ers act is dead . We knew this was going to come steven miller, one of trumps top aides, was preparing a wish list and as ylan said, democrats are apoplectic immigration is a policy graveyard because of things like this any attempts to move in one direction gets a lot of things added on like Border Security, fundamentalists are upset. It will make it much, much harder to get a deal on d. R. E. A. M. Ers. What does that mean for tax reform, particularly when you see bob corker and the president going back and forth my good friend mike young got a text yesterday after the corker tweets and it said byebye tax reform this will make it harder i think you need to pause and think for a second whats going on right now the president of the United States, republican, is feuding with twitter with the chairman of the Foreign Relations committee, another republican. And a vote youre going to need for tax reform corkers already come out and said he thinks theres not enough spending too much deficit increasing for it. So you think this is a way to get corker more on line with tax reform i dont think so. Where does that leave you in a situation where you need 50 votes at least to get through . Youve only got 52 republicans in the senate. Right. Not dealing with bipartisanship if youre not dealing with corker . I shrug emoticon. This is a struggle the president had. Theres not a lot of leeway. Theres not a lot of gives in the senate they were one vote shy on health care theyre now maybe one vote shy on tax reform as well and what kind of outreach is the president doing trying to get republicans on board with this what kind of negotiations going out. Get some of the democrats with it the solution is not fighting with bon corker on twitter. Lets talk about Foreign Relations while were on the subject. Youve got north korea and you have iran. Where do we stand with these two situations it sounds like at least with north korea some of the sanctions that weve kind of thrown out, it may be working. Yeah. I think an important thing on north korea is to separate the rhetoric from the action separate president s tweets from whats happening behind the scenes with nicki haley at the u. N. , bob mattis at the pentagon a lot of it the president says these things voting rocket man as he calls them but what hasnt changed as much is the military posture. Unconditional forces being moved. We have the u. S. Civilians not being evacuated. Look at what china and russia are doing on sanctions when people get pay a lot of attention to the tweets, theres a lot more happening what does this do though . These additional pressures for countries not to do business with north korea are starting to work, what does that do to north korea . The hope is if you cut off enough of those things it might bring him to the bargaining table. I think thats very tough. May also make him feeling cornered yeah. For 25 years this has been the approach of the u. S. Administration and it hasnt worked so far. Trump had a point on that tweet there. Theres no other solution. The other side is war. What about iran iran. Well, thats going to be kicked to congress. I think the president has said its a bad deal over the objections of some of his advisers now the iran decertification in front of the hill, remember, congress has a lot of things on its plate right now. I think most of that moves to the back burner. Is this something where you find more agreement in congress or not i dont think theres a huge push in congress to blow this up there are certainly some members, contenders like tom cotton who think the u. S. Hasnt been tough enough on iran so far. Remember, weve got immigration, weve got tax reform, we have another spending fight, we have the debt ceiling i dont think thats a big fight thats going to happen. Nick, thanks for joining us today. Absolutely. Coming up, its earnings season again already almost like it happens every three months, isnt it three or four times a year it seems like well tell you what to expect when the big banks report next when we head to break, heres a look at last weeks s p 500 winners and losers give up, skeletor youre finished curse you, heman, you interfering imbecile give us one good reason we shouldnt vanquish you to another dimension ok, guys, hear me out. Switching to geico could save you. Hundreds on Car Insurance. Huh, he does make a point. I do like to save money. Catch you on the flip, suckas geico. Because saving fifteen percent or more on Car Insurance is always a great answer. Welcome back youre watching squawk box, live from the Nasdaq Market site in times square. Good morning u. S. Equity futures at this hour, take a quick look after five straight quarters lots of gains. More gains indicated this morning. Up 9 on the dow. Nasdaq Even Stronger up 9 but obviously thats a bigger percentage move and the s p also indicated higher. Start of what is earnings week and check out what is happening with the turkish lira. Maybe not the first thing you thought of this morning, but look at it the currency falling hard after the u. S. Embassy in ankora suspended all nonimmigrant visa services, a move that turkey immediately matched. The u. S. Statement cited a need to reassess turkeys commitment to the safety of u. S. Personnel. Last week a u. S. Consulate employee in istanbul was arrested accused of links to a cleric i think that gentleman lives in pennsylvania, right no, i think hes in pennsylvania. In this country, right . In the mountains somewhere. In the meantime, gasoline prices have dropped more than 6 cents a gallon over the last two weeks. According to the lundberg survey the National Average is 2. 55 a gallon it led to a backup in crude oil prices thats what put pressure on the price of crude. A long awaited sequel topping the Weekend Box Office blade runner 2049. Earning 31. 5 million in its debut. That was according to comscore the movie reportedly cost 150 million to make. Second place goes to the mountain between us. Its an adventure slash romance movie. It brought in 10 million with its debut weekend. Well, folks, some of the biggest banks getting set for earnings this week including jpmorgan, citigroup and bank of ameri america. Joining us is Jason Goldberg for a preview. Hes at barclays thanks for being here. Thank you. Financials have done well do you like this entire group . Constructive. The group had a bounce of late as Interest Rates have backed up a bit, but looking out we continue to be constructive. Meaning that you expect rates to continue to climb we do we think the Interest Rates will continue to back up. We also think were in the midst of a regulatory roll back phase. After seven, eight years of Regulatory Environment getting more stringent, starting to see signs of easement. Even friday treasury put out its second installment of white papers in ways to make it work a lot of the recommendations dont require congressional approval, just getting some new people in the fed and on the occ confirmed. We think thats going to happen in the not so distant future. Banks so far, are there any that are particular standouts . This week, certainly the revenue vernements will be challenging. But as we look to the biggest banks, the jpmorgans, citi groups, they kind of have those adversely impacted by the Regulatory Environment we think they have the most to benefit as it comes back. What do you think of wells fargo after everything that this bank has been dragged through continued trips to capitol hill. Its certainly been a tough 12 months for wells fargo. Longer term we think theyll turn the ship. Theyve made a lot of progress since the issues came to light last september we have a little bit more to go. As they clean the decks in 2017, we think theyre poised to make a comeback in 2018. Uy, what do you think about wells fargo and the reputational sting . On principle i wouldnt buy wells fargo. I think theyve made strides over the last few months weve talked to mr. Buffet a number of times so i dont need to tell you. I think in terms of the banks, its probably one of the cheaper ones in terms of valuation, but i think its cheap for a reason. I think jpmorgan is getting towards levels where price at the book makes it somewhat expensive. I think citi is probably the cheapest in terms of price to book look at the peak of the banks. I think a lot of them were trading 2 1 2 times price to book im not suggesting we get back to historic levels, but i do think you could see the banks trade somewhere between 1 point be point 6 and 1. 9 times price to book. That puts citi, for example, probably north of 95 bucks i think thats still a reasonable stock we want to mention this news just in from General Electric tryan Funds Management ed garden, who weve actually had on last week, this is one of his partners, has been elected to ges board of directors. Garden was chief Investment Officer at trian said hes disappointed in the performance of ge stocks this guy is sharp. He Still Believes its a longterm investment opportunity. Trian first became involved in ge in october of 2015 when it bought a stake of 2. 5 billion at probably 28, wasnt be it . 28, 29 right they had an agreement. It seemed like they were working with management at that point. You know, we should probably also point out there were changes announced in the Management Structure at ge, too. No company car for Senior Executives what kind of car do you think they were driving . Bet you they werent bet you they werent crappy little compacts. I bet they were american made. Im about to get go ahead. Ask. Ask. Ask. You said on principle i wouldnt buy wells fargo what did that mean yeah. Really . Yeah. Mr. Socially im not im not. Going to buy a tobacco company, guy what about fossil fuels . I have no issues with you wont buy a fossil fuel company. I have no issue with tobacco, medical marijuana, with alcohol, i have no issue with snacks. Hes not allowed to have an issue with no. But warren buffet is still in wells fargo. Becky has spoken to mr. Buffet a number of times. Youre more principled than warren buffet . Am i more principled than warren buffet . Yeah. Of course not if its good enough for him its not good enough for you hes already in it. This is a new side of you im seeing. Is it a bad side . Yes no. Its just a wimpy virtue signaling. Im not trying to virtue signal anything. I get it from the virtue signal that i think ars, your he wouldnt i dont think anything is left for him to buy. You know what, all of these companies are sinking profits. I wont buy any company that has a profit because im too greedy. At the there seems to be a mass there seems to be some fraud going on at very high levels that offended me and it dragged wall street into the mix and in my opinion for all the wrong reasons. Now is there a time where you say, okay, they have actually earned it to your point, i think theyve done over the last month and a half, two months, i think theyve made incredible strides along those lines. I think they were really slow though for the First Six Months of when this happened. I still hold that against them in some ways. There could be a point when you step back . At a certain point to joes point, youre in this to make money. Dont shake your head. I guess that that order for stern rueger canceled for you this morning, huh . I was just on the internet now on the line canceling that yeah. Okay noted. Noted thank you very much for joining us today we appreciate it. Sorry to drag you into this. No, its good need to be you saw what happened with tricks. Trix are for kids. Real sugar, have you to get out of that. What happened now people like thix again because theyre no longer selling cale flavored trix nice, sugary sweets. Thats definitely off your buy list at this point. On principle. Coming up, muhammad elerian will be with us. All these companies that you buy are profit mongers. I do. Theyre all profit mongers. None are nonprofits. You might need to reconsider tax debate showdown, grover rqstnd Jared Bernstein stay tuned, youre watching squawk box on cnbc retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. People dont invest in stocks and bonds. They dont invest in alternatives or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful can happen. Those people might just get what they want out of life. Or they could get even more. A used car, what they want out of life. After reports that amazon was considering selling drugs online anna gupta wrote to her clients that amazon is reportedly in discussions with mid market pharmacy benefits managers and has been hiring talent to assess the drug Retailing Market for its entry. According to an email, the giant will make a decision on drugs by thanksgiving, at least american thanksgiving, not canadian thanksgiving, which is today. Which is today. Martin shkreli doesnt seem to mind prison live. He penned a letter to a friend detailing his time behind bars as he awaits his sentencing. Shkreli says in his words, things are not that awful here hes apparently reading, shooting hoops and playing chess. He added, im teaching these prisoners some new things and hopefully some ways to change their lives. But shkreli did note adami, im not this is going to be without comment, did note some down side. His cell mate snores and his bet is cramped and incouncomfortabl. You get that zepa thing in the pen there, you know, zepa . You ever hear those commercials . Like zika. Its zepa maybe he can get some zepas for his buddies and make everybody happy. Its one of those stories. You didnt want me to go down that. You called it a significant other. No, i did not call his cell mate im not going to do anything with this prison story i think prison stories why was it why did you read it . Ask quale what it was doing in there. You trying to set us up, quale . Its just a story. He likes prison and hes teaching you know, lets go to dove. This is unbelievable what were they thinking . I have no idea. This is another one we might get ourselves in trouble with, but dove dropping its latest ad campaign after drawing tons of criticism. The Company First posted a three second gif ad showing a black woman removing her brown shirt to reveal a white woman and a white shirt underneath many people were outraged by the ad calling it racist the company has since apologized saying that it is committed to representing the beauty of diversity adding that it missed the mark with this ad. Okay. So thats what they were trying to show, diversity when it was pitched by the madison avenue, whoever pitched it, what do you think the rationale was . I didnt even understand i dont understand it to tell you the truth. I dont know. Weird but, you know, someone should have said, are you sure . Yeah. Not the best idea all right right when we come back, milwaukee bucs president peter fag began going to be joining us to talk about the College Basketball bribery scandal. Yeah, he didnt know he was talking about all of these things well talk about his teams new arena. Right now as we head to a new break, take a check at whats happening in the european markets. Things are relatively flat the ftse is down the dax and cac are flat when this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Theextreme risk of burstd a pipes and water damage. Y. Soon, Insurance Companies wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. Get ready, because were helping leading companies see it and see it throughwith digital. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Well talk about his teams new there was no magic up his sleeve. He didnt have wings, or a cape. He was but just a man. With the will to go beyond. Welcome back, everybody. We have some stocks to watch for you this morning astrazeneca says that the fda has given its drug to treat a form of lung cancer a break through therapy designation. This move helps speed the approval process of the drug. Shares of airbus are lower today. The worst performer on frances cac 40 index theyre citing tom enders on friday when he warned of Turbulent Times ahead as corruption and fraud probes in france and the u. K. Could lead to large corporate fines the stock is down by 2. 3 . The milwaukee bucs are unveiling a brandnew arena in 2018 joining us with the details on the construction milwaukee bucs president peter feigin. Good morning joe and becky. I think about lazry and wes edens buying that team when it was before the clippers went for gazillions of dollars. Like everything they touch, it was like midas probably double the value of the bucs franchise. They bought it about five fifty and two weeks later bomber bought the clippers for clippers people that have money, that helps. To make money if you have money. Have you noticed that . I work closely with him, and theres no surprise like why theyre successful so is jamie dimon finger on the pulse theyre all good bosses, right . Theyre all great bosses. Whats your favorite . Theyre different on different days theyre all its kind of having an Incredible Group of advisors that are all very, very, very different west is a private equity guy he really is p and l mark is a distress guy jamie is an equity trader and mike is one of the preeminent real estate guys in the world. Mike got a billion dollars or just the other three the other three have more than that a piece thats interesting mike is very generous how much would it cost . Squawk box arena kernan arena. Quick arena cnbc arena its what we need to get done its the cornerstone of kind of financially as we go forward its a 7 million to 10 million deal over 20 years its not a local deal. You incorrectly say its the jewel of the midwest most people know that. Cincinnati. I was just there in the last year or so it is a great spot right on the lake there one of the things they all did when they bought this was, like, how do we become the preeminent salespeople for milwaukee . Unbelievable city. Great destination. The state of wisconsin as a whole. What we want to do is build a magnet were developing 30 acres of downtown milwaukee, and really become a catalyst of Economic Development to create density and population, a place that doesnt really have it in downtown milwaukee how are your prospects this year, do you think your first game is the 18th, isnt it in boston in boston we play at home against cleveland. On the 20h. On the 20th. Right. The cavs with dane gilbert. He says he is going to kick your ass. Did he say that im going to have to tell west and mark and jamie. You should. I think were excited we talk about i dont want to get into all the controversy, but adam silver said stand basically said thats in the bilaws of the nba for the National Anthem. Are you okay with that i think are the players going to be okay adam and our owners have made it really clear. I think what were doing is kind of celebrating unity during the anthem without really curbing peoples personal opinion. Adam, wes, marc, jamie, theyve all made it very clear players can voice their opinions just not during the anthem really use the anthem as a time period for unity and promoting unity among the team i saw some i dont know are these polls real the most popular sports in the u. S. The nba leapfrogged over the nfl in terms of popularity unbelievable metrics. Think about participation. I ran with it with your buddy kenny. Kenny dicter. Wheels up raised some bluechip money on friday its a point of differentiation. Not a question net jets is a preeminent fractional provider in the world. You know what, kenny is the greatest sales guy in the world and positioner in the world. You are talking to a biassed guy. You know, theres if anybody can do it, its kenny. I think he has unbelievable niche in the market. I think he certainly understands the service quotient of what it means, and he certainly understands what the business off side of it is. When people look at Corporate Jet travel and most recently we saw with the trump administration, obviously, but that happens corporate as well you know, with shareholder money, and you are wondering if you are using it wisely. Theres a niche for if you can drive down the price per hour as much as you possibly can thats what the king air does on short flights. Even shareholders with accept a price if you are hopping from one seat to another on a smaller plane, right bucs have appreciated in a big way. What the clippers went for 2 billion. The Houston Rockets just went over 2 billion. These are all teams that just arent available you know, its what the market you said right there with those guys on the floor . You get to do that i do not sit right there with those guys you are the gm. Well, i make sure those guys have everything they want. Make no doubt. Smart smart. Theyre much like kenny im an operator. I love midwestern cities. Because theres a rebirth of a lot of them. Thanks for coming in, guy thank you. Remain here for this hour. Learning experience squawk box we appreciate it. Its great to see you. Kernan arena. Kernan arena. Kelliller. Your old magic set . sigh and this wrestling ticket. Which you still owe me for. Seriously . 25 . I didnt even want to go. Ahh, your diary mom says it is totally natural. 25 is nothing. alert beep abracadabra, bro. Settle up with your friends on october 17th with the bank of america mobile banking app. Settle up with your friends on october 17th not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. The markets right now pointing to a higher open as traders gear up for earnings season oh, good well open up with Mohammed El Arians market playbook in a minute overnight President Trump calls on congress to fund a border wall for the deal for the skaultd dreamers well have details straight ahead. Senator bob corker telling the New York Times the president could put us on the path to world war iii. Well talk raurn, north korea, and corkers comments as the second hour of squawk box begins right now live from the beating heart of business, new york city this is squawk box. Good morning, everybody welcome to squawk box here on cnbc we are live from the Nasdaq Market site in times square. Im becky quick along with joe kernan andrew is out today. Weve been watching the futures, and theyve been relatively flat looks like a little bit of a pickup. The dow futures now up by 14 points above fair value. Nasdaq futures up by nine points above fair value the s p futures up by one and a half points. This comes after a down day on friday for both the dow and the s p 500, but four weeks in a row now that we have seen gains for those two indexes. Nasdaq was up on friday, and it continues that pace this morning. Ge elected it to its board of directors. Trian first took a stake in General Electric back in 2015. Gardenings he is disappointed in ges stock performance, but he Still Believes its a good longterm opportunity. Ge also announced several executive changes, including the impending departure of cfo Jeff Borenstein he will be replaced by jamie miller, who is currently the head of ges Transportation Business Eric Rosengren says more rate hikes are needed keep the economy on track he says keeping rates at historically low levels risks overheating the economy. Rosengren made his comments over the weekend in montreal. He is not a Voting Member of the fomc for 2017. Tesla is delaying the debut of a planned semitruck it had originally been scheduled to be unveiled on october 26th, but thats been pushed back to november 16th. Ceo elan musk says that the automaker is diverting resources right now to try and help with production bottlenecks for its model three as well as increasing battery production for hurricane ravaged puerto rico price at the pump falling. The latest Industry Survey shows the average price of [ horn honking ] average price of gasoline dropped by 7 cents in the past two weeks. The 2. 51 a gallon that was a its really not like this. The move comes you know if you watch the show its not like this. The move comes as crude Oil Prices Fall and fluttered refineries on the gulf coast are resuming some Operations Air bnb is testing a new feature for business travellers. Its teaming up with wework. It offers shared work spaces theyre launching a Pilot Program in new york, los angeles, los angeles, sydney and London Business travellers who book a room with air bnb will be able to reserve a desk at a nearby wework location. You dont stay in the left lane if you are going the speed limit . Only if im not paeg attention. There are times i realize, oh, gosh, i need to get out of here. For passing some people think its like its optional. I can be in the left lane. I can be in the right lane why do they think that no, no, no. Move over if you are there are times i have heard that, and times i have frofb forgotten. You know i have had to replace horns. You dont really still do that, do you oh, yeah. I thought you said you have been getting better. Im trying to get better because people recognize me sometimes. Rarely rarely every once in a while im in full, you know, road rage, and they go its like, uhoh. Never mind. Im sorry. To politics now, the white house releasing a new list of immigration principles as part of a proposal to replace daca, and that is the Obama Era Program that protected nearly 800,000 dreamers, socalled dreamers, from deportation also allowed them to secure work permits among the items on trumps list, money to fund a border wall, thousands more immigration officers, and a crackdown on unaccompanied minors who enter the United States republican senator bob corker warning that President Trump risked setting the nation on a path to world war iii he made those comments in an interview with the New York Times over the weekend. The two then took to twitter yesterday with the president tweeting senator bob corker begged me to endorse him for reelection in tennessee i said no, and he dropped out. I said he could not win without my endorsement he also wanted to be secretary of state i said no thanks he is largely responsible for the horrendous iran deal hence, i would fully expect corker to be a negative voice and stand in the way of our great agenda dont have the guts to run senator corker responding to the president. Its a shame that the white house has become an Adult Daycare Center someone obviously missed their shift this morning. Mad money. I dont even do. No. On twitter. Im not the most mature person in the world i didnt say that but still, im above these two. Yeah. Well, i dont know. Anyway, a couple of stocks on the move this morning. Honeywell reportedly planned to think about that. Let that sink in i didnt think it was that big of a deal. Locked fore never. Well be back. Honeywell, reportedly plans to spin off noncore assets and create at least two new publicly traded companies this would be the first major move since honeywells new ceo took over in april reuters says the company will resist the call by dan to spin off its Aerospace Division barrons is positive on wall street barrons thinks the shares could rise 15 or more in the next year as the ecommerce strategy at walmart jump starts profit and revenue groert, and then separately walmart is announcing today that it will launch mobile express returns at stores for items that are bought online. You can take them back in the store. Harvey weinstein has been fired from the company that he cofounded amid Sexual Harassment allegations weinstein had previously taken an indefinite leave of absence the weinstein and Company Board of directors, which includes weinsteins brother, announced the firing yesterday it happened just three days after the New York Times published a bombshell report dealing detailing decades of Sexual Harassment allegations against the film producer. According to variety no financial settlement was put in place when this firing came about. Weinstein is said to control roughly 20 of the company the board is discussing a name change for the Company Mohammed el arian mohammed, Everybody Knows you. You need no introduction welcome. Thank you your beloved patriots i told i played golf with someone who is a good friend your mom took you to mets games like all through your childhood. Thats right. Thats what started it. Youre huge she would insist on leaving the seventh inning, which used to drive me crazy. Why traffic. She wanted to miss the traffic. Thats the only thing. Im so grateful. Are we on the ground floor . Are we near the penthouse, do you think . We are in the midst of a very long and rewarding journey one that has been like life like your life. One that has been characterized by unusually low volatility and for good reason in fact, a person who won todays nobel prize in economics has written a lot about it about behavioral thats that investor had been conditioned to expect that their back will be covered by Central Banks repeatedly as i have been saying over and over, you need a major series of shocks to dislodge this market this market is not dislodged easily basically what you just said is that we have been conditioned perhaps falsely into thinking that theres no more risk, that Central Banks will not let markets go down indefinitely we have been conditioned to buy everything, and if you notice, the dips are less freque frequent, almost never happened. So far this year weve had the lowest daily decline in the history of the s p think about it despite everything thats gone on in the Global Economy and politics and geopolitics, north korea, all this other stuff, the smallest daily drawdown in the s p. He thinks more Interest Rates are coming market is completely dismissed they can get away with a few rate hikes without disrupting the markets. In the past it just seems like if you get lulled intocen y complacency, it seems like theres a day of reckoning, and i think about i can remember companies. I remember economists say weve learned how to manage the Business Cycle i remember the housing industry saying we know how to deal with inventory now. Were not going to have a boom and bust period again. Ive had people say when the fed steps in every time that gets dicey and they dont let it flush, they dont let it they dont clear the trades where they would normally be cleared, they clear them up here by offering support sooner or later theres going to be a day of reckoning. We bought enough time for the underlying economy you used to talk about that, the gap between the underlying economy. Maybe weve caught up, and maybe we never have a day of reckoning. Really for all that theyve done. First, youre right that stability can breed instability down the road. People get complacent. A different guy a different guy were seeing a lot of risk, excessive risk taking. Were seeing a lot of people give up liquidity too easily you are absolutely right second, yes, we have bought enough time for the fundamentals to start improving when over 180 ministers of finance and Central Banks gather in washington this week, theyre going to celebrate the synchronized Global Recovery however, that recovery is not yet Strong Enough to warrant and validate existing asset prices you need something more. I think this is where washington comes in higher def dends. All of that is recirculating liquidity back into the marketplace. This is a liquidity driven market, and now we can get validated by fundamentals, but we need policy actions so we didnt need to let the chips fall where they would have its okay to have the government why not lets start a real plunge protection program. Lets do that. Theres been conspiracies that will just buy s ps when the market starts going down in august 2010 when then chair fed ben bernanke talked about qe2 as a way as he used the asset markets for economic outcomes, he said its about benefits, costs, and risks remember these three words benefits, costs, and risks the longer you do it, the lower the benefits the higher the costs you cant do it forever. You cant have protection. You cant do this stuff forever. There is unintended consequences, and that is misbehavior that occurs, but you just hope you can validate the funds. Just hard to realize when you have crossed over. Correct to the point. I think with our deficit, its the same kind of thing were at 20 trillion. If you just threw caution to the wind, we could spend money on a lot of stuff god all mighty, think what we could do if we had a limitless we do have a limitless supply because we can sell more bonds. We can always the federal government is the debt its going to be, you know, wherer youre going to be able to replace the existing debt by selling new bonds. You do think its going to come back to haunt us snsh. Excessive risk taking look at the proliferation of etfs that promise you instantaneous liquidity at good office spreads, even though the underlying assets are in i illiquid markets you and i know that doesnt make sense, but theyre proliferating, and people are buying it. Be careful of the unintended consequences of the small period you said that it would take a severe risk to really shake the market what kind of things are you thinking about we cant even imagine what it is on the geopolitical funds, it takes north korea doing something not just brazen, but something really stupid, and the u. S. Reacting. Next thing you know, youve got a major crisis in asia on the economic front, it takes a mistake not by the fed i think the fed is in this context to adapt the way values raised the other context is in the process of a beautiful normalization. I do worry about the eb, the bank of japan, and peoples bank of china a policy mistake could do it or you can have a market accident dont underestimate the amount of risk taking going on in the nonbank sectors i think central bankers dont focus on nonbanks they foekts on whats familiar to them. You mean like the Insurance Companies, like an aig or somebody else . Like mutual funds, like what individual investors are doing because they are so confident that volatility will remain low. Buying every dip has made sense, and we know that in the marketplace, nothing works better than something that consistently rewards you until it doesnt i like your tie im going to retweet it thanks for the shadow whoopz, im sounding like a he could get maybe he can earn his way back. Have you ever unblocked someone . She made she appealed to someone that wrote her, and i think i may have misinterpreted. So you know how to unblock somebody i know how to do it its very rare mohammed is our guest host. He will be with us for the rest of the hour. When we come back, oil prices edging up today after sliding back below 50 on friday well take a closer look at where prices could be headed as we move into the winter months thats coming up next. Later, republicans under pressure to get tax reform done. Were going to speak to americans for tax reform founder Grover Norquist, and former chief economist and Economic Policy aadvisor to joe biden, Jared Bernstein, about the latest push. Stay tuned you are watchingsqwkox ghhe on cnbc because, when you really, really want to be there, but you cant. At cognizant, were helping todays leading Media Companies create more immersive ways to experience entertainment with new Digital Systems and technologies. Get ready, because were helping leading companies see it and see it throughwith digital. A used car, thats why at comcast were continuing to make4 7. Our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Welcome back. Crude oil closed under 50 a barrel on friday after opec production rose in september and u. S. Production draws closer to its peak of 9. 6 Million Barrels a day. Jackie deangeles is here she has the latest with the chances that well see another slide in oil prices. Good morning, jackie good morning to you, becky. Thats right the crude reality here is that oil has been stuck, and its been stuck around 50 a barrel now for several weeks time many investors think the support is unfounded and that signs of that are starting to show. Three factors you need to watch when it comes to this trade. First, u. S. Production continues to slowly rise each week, and its just off of that peak of 9. 6 million barrel az day. June of 2015 why . Well, 50 oil is an attractive price for producers to and thats what theyre doing. If we surpass that 9. 6 million barrel mark, it will be a key factor to show that the numbers here are going in the wrong direction. Psychological factor too second, opec production, it was up in september. About 10,000 barrels a day yes, thats a small amount, but also, moving higher. Not lower. Libya and iraq push those numbers up venezuela has reduced production offsetting those other countries, but not really enough the third factor here is seasonality. You mentioned gas prices before. Fall and winter are the seasons that we see a drop in demand because consumers are driving less the gas prices and the oil prices go down the Summer Season certainly was robust, but everyone gets back to business now. Well start to see that have an impact over the next few weeks, the bears still say the 40s are more likely than the 50s and that the support that weve seen so far was technically driven, and also hurricane driven as well this weekends storm in the gulf, nate, not likely to have a sustained impact on price as refinery shutdowns are expected to be temporary. Guys mohammed, do you have thoughts on this we still hear a lot of the demand side, and your three factors are all on the supply side the demand side is really important too, but the stunning reality there is that nothing is really changed theres been no major uptick to offset the kind of increases that weave seen in production. Thats really the key. The shale producers will come its more lucrative for them to do so. A selffulfilling prof eswhy i, and the opec countries arent helping either jackie, thank you sure. Coming up, tax reform front and center for investors and business were going to talk north korea, iran, and their nuclear ambitions. Squawk box will be right back. Thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. 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When we return, Grover Norquist and Jared Burnstein will battle it out over tax reform as we head to a break, take a look at the u. S. Equity futures. Theyve been higher. Dow futures up by 15 points above fair value the nasdaq up by ten squawk box will be right bk. Ac this is a financial Transaction Secure from hacks and threats others cant see. This is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. This is not the cloud you know. This is the ibm cloud. The ibm cloud is the cloud for business. Yours. Im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested Flexshares Etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Zbliefrmt among the stories front and center today, it will be a quieter day on wall street. Today is columbus day. That holiday has shut down government offices, banks, and the bond market. The stock market, however, is open for normal trading. Subprime lender one Main Financial is up for sale according to the wall street journal. The paper says one main is in talks with several interested parties. Although theres no guarantee that any deal will result. Next month its going to be rolling out a program thats called mobile express returns for items that were ordered on the retailers web sites a few months later it will integrate in store purchases into that news return system as well a note for then National Anthem a senior official on the Vice President s staff said that the decision was planned ahead of time and that official said the Vice President had been hopeful that all the players would stand. The president just tweeting moments ago the trip by vp pence was long planned he is receiving great praise for leaving the game after the players showed such disrespect for the country. Americans for tax reform president Grover Norquist and center on budget and policy priorities i want to start with you, and im going to make you king for a day, or, you know, the leader of i like this. I see democrats now basically say that its a Corporate Tax cut thats just another tax cut for rich people and wealthy people if you had your way, would you raise Corporate Taxes, keep them where they are right now, or try to lower Corporate Taxes i would lower the marginal rate, but i broaden the base the key to a Corporate Tax reform that simply without sacrificing revenue, and, by the way, thats the big problem with the trump tax cut is its so costly to the deficit and debt we could simplify our corporate code, take that rate down a bit. You know, widely broaden the base you can call it demagoguing, but they will look in the camera and say republicans want to cut taxes on corps because they know that thats a knee jerk reaction among certain, you know the American Public at this point that is what the trump plan does, by the way the trump plan why do you let your colleagues use that as a pajorative as a criticism of the plan, saying they want to cut taxes for corporations, and then they say these are profit mongers, ceos they want ceos to make more money. They know that that that it might be helpful in terms of growing the economy. Yes, it is a Corporate Tax cut, and it will largely resound to the benefit of those at the top of the scale who are already doing great. Dont confuse my plan with their plan i know. Grover, i see all of them. The Big Government politicians is everyone can pretend athat somebody else pays it the person paying the biggest market is the person who hasnt had a job over the last eight years. Weve had such pathetic Economic Growth its the worst recovery in modern American History. Its still chugging along very poorly we need to get more Economic Growth the person who benefits from cutting business taxes is the guy who gets a job thats the biggest winner. A guy who goes from zero to 25,000 zero to 35,000 we think say i would be willing to take the rates down i talked with senator kerry when he was the leader of that committee to try and come up with a deal. He wanted 1. 4 trillion in net tax increase out of any tax reform she admitted to at least a trillion dollars in higher taxes that she would put a number on, and then a series of tax increases that could have been another trillion that she didnt put a number to. She ran on it and lost, hillary clinton. Obama governed with it and governed poorly. Rate reduction and reduction in the total tax burden taking it from your left hand pocket rather than your right pocket zblie know that was all. Over the weekend you got corker. You got rand paul. I dont know where ted cruz is going to be on this. Corker is a grownup. He can have i afight with a president. He has already done the negotiating that he has focused on to try and, in his view, limit the size of the tax cut. Im not sure i agree with corkers reasoning on it, but the other senators came to terms with the number that he put together 1. 5. He should be fine there. He is a serious guy in terms of wanting Economic Growth. Never any hyperbolic why americas bad tax reform plan is bad economics. His article today, i saw it in the washington post, is a must read on this tax plan because it really gets underneath a lot of what you just heard from grover there is no correlation between tax cuts and Economic Growth although reagan did raise taxes. He clawed back about half the revenue he lost. You can find Even Stronger growth in the clinton era when he largely raised taxes. This notion that you are somehow going to help downtroden neighborhoods by implementing a tax cut that gives 70 of its benefits to the top 1 that actually ends up raising taxes like many in the middle class, and thats because of getting rid of the personal exemption and some bracket creep in this plan the bottom line here is while you are tilting the tax codeine more to the very wealthy, so you are exacerbating our inequality problem, you are whacking the heck out of our Fiscal Health by robbing the treasury of trillions of revenues. If you want to help the downtrodden people that grover allegedly stands for, you are going to need to support them through programs that offer them training through infrastructure programs, through job creation programs, through subsidies, wage subsidies like the earned Income Credit arks a favorite of ronald reagans, by the way, and youre not going to be able it on do that if you are adding a couple of trillion to the deficit. Democrats do something when they have a chance why dont republicans . Two things. The democrats had briefly at least 60 votes in the senate the republicans have 52. The democrats have one central funding source, and thats coerced union dues in terms of billions of dollars every year theyve taken from workers without their permission, and that money is centrally controlled they own each of those senators. There arent any independent democratic senators. There arent any independent thinking democratic congressmen. You do have republicans who wander off i think at the end of the day theyre moving in the right direction, but theres nobody who tells any republican senator what to do theres no aflcio saying we have several billion dollars in coerced union dues, and you wont get reelected, and we will take your head of on if you dont do what we want. The democrats have a big club and the organized labor tells me what to do i thought you made them all sign pledges well, weve had tremendous well, weve had tremendous success as long as weve had a republican house, senate, or president. Theres not been a tax increase. The only tax increases in modern American History had been the two years when clinton had a democratic house, senate, and the presidency the recovery started the day the republicans took the house and senate and when we cut capital gains. Grover, i mean i did let him have the spending in the two years of let me ask you a question how are these republicans so independent if theyre signing tax pledges to your organization saying i wont raise taxes even if the country needs a tax increase im going to assume you misspoke rather than why you know perfectly well that the pledge is to the American People its written down. You can go to the website, atr. Org, and the plenl is from a congressman or senator saying i will not, if you elect me, American People, people of my state, i wont raise your taxes. Thats a pledge to them. I didnt mean to imply anything other than that you said it was to me, which is what obama used to say, and he was lying to your organization. No, no. You just lied again. Its to the American People. Its not lying. Now, come on read it atr. Org. Your organization is has these politicians sign a pledge to the American People, as you say. Yes where is their independence they can choose to run as tax increases if they want, but that would make them democrats. All right well leave it you dont have to get nasty, grover you dont need. You dont need to use the im sorry about that anyway, thank you both see you later, jared when we come back, President Trump making comments over the weekend about dealing with north korea. Well talk nuclear ambitions, the dismantling of the iranian deal and other geopolitical risks of the market right after this break in the meantime, check out the futures. Picking up a little. Dow futures now up 28 points s p looks like it would open up by 2. 5 points. The nasdaq up by 10. 5. Building a website in under an hour is easy with gocentral. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. But we should be seeing ymore range of motion. , im fine. Okay, well lets see you get up from the couch. Im sorry, what . Grandpa come. At cognizant, were uniting doctors, insurers and patients on a collaborative care platform, making it easier to do whats best for everyones health, every step of the way. You may need more physical therapy. Ugh. Am i covered for that . Yep. Look. Grandpa catch grandpa duck woah ha there you go grandpa. Keep doing that. Get ready, because were helping leading companies see it and see it throughwith digital. President trump could set the nation on the path to world war iii by threatening other countries. The senator making those comments during a New York Times interview over the weekend. Are your levels of concern racheting up i dont think theyre heating up everywhere. For example, i think that the dealings with russia, while extremely complicated and largely because of last years elections, as we you will know, havent really intensified in that swath of eastern europe. Its still a tragedy beyond proportion i dont see it as a place where dangers are intensifying countries like china will squeeze north korea more effectively and thereby give us an economic way to push towards denuclearization that seems to be it sounds like countries are backing off in terms of dealings that theyll get into with north korea. Im not totally defending his approach, but there is the potential logic to it, and if there also is a combination of that with a plausible negotiation strategy at some point in the near future, this all could actually make some sense. Philosophically its hard to figure out what the right path it for the United States in these. Theres leadership, and then theres appeasement sometimes. Im wondering what gets you in to world war iii it can be being too aggressive, but then again, Richard Haass wrote a book about the last eight years. That seems like its moved us you could make the case that thats moved us towards world war iii, and then the takt that were taking now is the only thing that was left almost i dont know the loyal opposition saying that about the sitting president. Even you it are not necessarily saying that its a slippery slope to world war iii theres two ways of getting into world war iii. Appeasement and leading from behind and, you know, remember the president already did order a strike into syria that was actually, you know that was aggressive, and that was not appeasement, but it actually seemed to work a little bit. Didnt it . Terms of chemical weapons and assad . I think the symbolic effect largely symbolic effect of that strike was not the kind of thing you can translate into a useful option in north korea. On the north korea, i think youre right both parties and president s going back 25 years have essentially tried some combination of cajoling and negotiation. Ive also supported the spirit of that myself what there hasnt been is a credible way to apply economic pressure on north korea. Coming up, final thoughts youre okay, arent you final thoughts for today from my god final market thoughts. You look fine. From gustoes Mohammed El Arian witness katy perry. Witness katy perry become a legal witness. Witness katy perry and left shark. Or a card shark. Grandma . Witness katy perry work. Witness katy perry firework. Witness katy perry swish. Witness katy perry. Aaaaaaw look at that dog katy perry with music videos and behind the scenes footage, xfinity lets you witness all things me. Mohammed el arian mohamm mohammed, before you go, lets talk more about what to expect from the fed you dont think the fed is going to mess this up . Youre worried about the other Central Banks out there, but would that change if theres a new fed chairman i dont think it will change if theres a new fed chair and a new vice chair i think the fed for now is on automatic pilot. It will raise Interest Rates whenever it has an opportunity to do so without disrupting markets. Dont get too excited about the global synchronized recovery its not yet has deep enough roots. And take seriously the insights of Richard Thayler about how we make decisions because we tend to make repeated mistakes. Try to understand his work is incredibly accessible and very important for investors today. Is it does care its going to go very, very carefully and gradually. Its about an a pleasure to see you. Thank you thank you, mohammed we appreciate it thank you very much all right. Coming up Procter Gamble shareholder vote is tomorrow well take a look at what it means for the stock. Then, later, would you give up your television to watch shows on a mobile device a new study showing that your home tv is slowly fading away. Not in my house. None of my ten flat screens are fading away. The details straight ahead squawk box will be right back. He wasnt the stuff of legends. There was no magic up his sleeve. He didnt have wings, or a cape. He was but just a man. With the will to go beyond. 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. so they called the fire, yodepartment for us. Clearly, thank you. My first truck was on the scene within five minutes. I am grateful we all made it out safely. To protect what you love, call 1800adtcares zplienc Procter Gamble proxy fight. The battle culminates tomorrow in a shareholder vote. We have the latest on the fight between the company and nelson pelts. Tax policy showdown well debate the controversial proposal to end state and local Tax Deductions with alex from aei. Plus, new data on the way americans consume Television Turns out bigger isnt necessarily better the third hour of squawk box begins right now so get ready get ready live from the most powerful city in the world, new york. This is squawk box. Good morning. Welcome back to squawk box here on cnbc live from the Nasdaq Market site in times square. Im joe kernan along with becky quick. The futures right now are indicated higher again. Up almost 30 points now. The s p up two and fiveeighths. Overseas in europe nobody really has the blues necessarily for a monday not too bad. I dont like mondays people have said that before did you have trouble this morning . Its tough because of us starting. Once youre up in the air, weeks rolling. Were on our way it helps to get up early on saturday and sunday. Which i do. I cant flip my time clock anymore. Its too hard its hard to stay up late friday night and then its hard to go to bed early i was up at 6 00 a. M. Sunday. Yeah. All right lets get to the top stories of this hour in political news. The white house releasing a new list of immigration principles its part of a proposal to replace daca that Obama Era Program that protected nearly 800,000 dreamers from deportation and also allowed them to secure work permits here in the United States among the items on trumps list, money to fund a border wall. Thousands more immigrations officers and a crackdown on unaccompanied minors who enter the United States. New this morning, Richard Thayler has won the nobel economics prize. He is a professor at the university of chicago, and he won the prize for his contributions to behavioral economics. You just heard us talking about him saying its very easy to understand a lot of his science and that he is recommending people take a look at it also, several pieces of news regarding General Electric this morning ge has elected ed garden to its word of directors you may remember trian first took a stake in october of 2015 for 2. 5 billion garden says that he is disappointed in ges stock performance, but Still Believes its a good longterm opportunity. He is also announcing several economictive changes, including the impending departure of cfo Jeff Borenstein. He will be replaced by jamie miller, who is currently the head of ges Transportation Business looking to see where it was to get an exact price. October 2015. October of 2015 wasnt too much different. All right. A few stocks to watch this morning. Honeywell will spin off noncore assets and create at least two new publicly traded companies. Thats according to a reuters report quoting people familiar with the matter the report says honeywell is hoping to unveil a plan as early as this week wells fargo look at that stock. Is that the one we were talking about. Thats honeywell. Thats honeywells performance. He has a problem with that performance . As well as a few other stocks he needed to be in ge wells fargo upgraded Johnson Johnson from market purchaseance to out performance. Seeing solid performance from key drugs as well as bottom line benefits from its acquisition earlier this year of Swiss Biotech Company actellia where. Frokter gamble shareholder vote is set to take place tomorrow after months of the companys shareholders will decide whether or not he is going to be getting a seat at the table. Leslie micker is it here and she los angeles more right now leslie, go am. Good morning, becky at this point its largely like a chess game, and the king pins are those that are the index funds, and, you know, nelson peltz has the support of big investors like yackman and that may not be enough Institutional Investors like those tend to vote with activists, but Retail Investors often side with Management Index funds, however, can be more of a wild card. P g shareholder breakdown looks very similar to that of duponts when peltz lost a proxy battle there in 2015 index funds voted for management and tipped the scale that way. P gs Shareholder Base isnt an even bigger uphill climb for trian because of its large retail component, and that is where peltz has made a concerted effort to go after individual p g shareholders with ads in local papers and tv programming. Especially in cincinnati where p g is based and has a large retail contingency there that helps explain why both sides are expected to spend upwards of 60 million on one board seat no doubt its going to be close tomorrow, guys so we may not know until late probably noonish well have a good idea of who is coming out top for this one, and a lot of people have been talking with some sources this morning about, you know, what the announcement with ed gardens seat on ge means for this current proxy battle. Its unclear at this time whether that will sway those key pivotal index funds towards the p g side or the trian side the timing is interesting because they come out the day before this major proxy battle i think the situation with ge is quite different if you saw the stock chart earlier. It was largely trending downward p gs stock price has been trending upward over that same amount of time i dont know if people will be really comparing the two when nelson peltz was here. Are you gone if you dont get this board seat, and he said that was a complicated question for him because he doesnt want to indicate to people that it doesnt matter if he gts a board seat in the past, though, it hasnt necessarily meant that he has gone away. Exactly with dupont, for example, he lost that proxy battle that was the first proxy battle he ever lost as far as i know, its the only one he has ever lost he has stuck around, and then all of the changes he was hoping to be implemented were actually impolicemened and, you know, at delivering alpha they had a great panel with the current ceo of dupont, ed green, where they talked about what it was like to Work Together. Snoo lets talk about it lets bring in nick modi what are they so afraid of in terms of the one guy, and how is it different than General Electric its ins lar im from cincinnati. I know this country. Very ins lar very oldfashioned that way. One guy in thesize of that board would make that big of difference what is p g thinking yeah, look, weve actually been conscious on proxy for eight years. An activist stepping in four, five years ago made a lot of sense. David taylor, you know, weve been writing in our work that he actually is an activist internally i mean, p g, youre right, has been ins lar, but theyve definitely made a lot of changes. They have hired people from the outside. This whole debate, you know, i think its relevant in food and beverage because i cover beverage, and i can definitely see locality and preferences at the local level. When it comes to products that clean and, you know, there is something to be said about Global Brands that work. Procter has the best products in the marketplace, and you can see that in any Consumer Report you look at. Tide cleans better than most detergents, right, and tide is gaining market share you think about the price premium, and that is a great anomaly to what nelson peltz is talking about about local brands in terms of the operating structure, i think if p g were to go through another restructuring and reorganize the way nelson peltz wants, youll have basically a one to two year gap of just really tough fujdss. What is procter worth as a stock . Right . No one is talking about that were just talking about headlines and this board seat and that board seat and this paper and that paper the reality is we think procter is overvalued regardless of the scenario we think theyre discounting already 5 top line growth in the stock. I think he has put out a price target pepsi. Denone, state street, lazard wendys. I dont see a single one for p g. Whats it worth . What does he think its worth . When you go et to a size like p g, the law of large numbers hits a lot of these companies. I dont know if the answer is trying to go back to, you know, to whats the name of that stupid soap . Its 150 million. You get 20 growth on 150 million, and its another. 1 of a cent to go back. How do you go back to rejuvenating Procter Gamble by trying to go back and built all these small brands its like youre stuck with tide youre stuck with pampers and crest. You got to its you know, its by getting that big, its great when a company can provide innovations where the consumer sees value, then its a company this big brand or small brand debate goes out the window joe, i would say its all about do you have relevant brabds or not relevant brands . I think thats the way the consumer makes a choice. Do you know what to do with p g, and is it possible with something that big to all of a sudden get, you know to double earnings per share Growth Without doing it on the expense side is it possible to do it just for managing it better or innovation i think there are two things. There are two things if you really wanted to fix it immediately, i think they need to narrow price graph which is would really hurt earnings and their existing shareholders. It would be great for new shareholders then they could just buy on the dip and things would be great. The tide pods a great example. The problem is i think going back a couple of years, the ini dont he vegas management i would say didnt really do the best things for the business they lost this china diaper premium china diaper, and its doing quite well what do you think is going to happen did you place a bet . Its going to be really close. Is it really going to be close . Its going to be tight. You can pretty much count on that Retail Investor to vote your way a lot of them are i think 7 are part of the company plan, so, you know, they are kind of p g lifer. Theyre going to vote with what management wants instead of this to them a stranger i do think it comes down to index funds and which sides they take, and speaking with people yesterday and today, it seems like theyre still a wild card at this point, and so i dont think well really know until tomorrow around noon its just a coincidence when they sold pringles that thats when things started i think im not sure i wanted to bring those back i wasnt sure what those were. Think that was a good i dont know really not theyre weird. Theyre constant cant just have one only potato ares . Definitely potatoish. Just like mcnuggets are chickenish. Im word about the ish. Anyway leslie, thank you. Thank you, guys i think that was a good move on the pringles. You can get the weirdest shrimp pringles and sour cream. Salmon pringles i have never tried those. Anyway. Nick, thank you the p g proxy battle ends tomorrow with the shareholder vote well have full coverage throughout the day when we come back, the controversial part of the gop tax plan eliminating state and local deductions aeis alex brill will join us at the bottom of the hour then the squawk ceo call is in session. The chief executive from therapeutics md will talk about the move from the nyse to the nasdaq right here. Stay tuned youre watching squawk box on cnbc the governor has declared a Winter Weather emergency. Extreme risk of burst pipes and water damage. Soon, Insurance Companies wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. Get ready, because were helping leading companies see it and see it throughwith digital. The nasdaq 49. 29 unchanged. Well, weve got the friday jobs report. Now weve got some firms updating their gdp forecast after that number. Also, got everything with the new Nobel Prize Winner for economics. Lots to talk about. Look, the jobs number the jobs number took a whack, right . We saw that. Right why would anyone update their gdp number on a number we said doesnt matter because there is other data that came in that day and plus, you get an tanch hourly earning. Stuff that feeds into remember, what were following with the rapid update are the things that feed into the gdp calculation, and we had a whack to the jobs number what didnt get whacked . Wanlz didnt get wacked. Wages did pretty well. They were flattered, by the way, by the hurricane data because of the mix of jobs. Then the unemployment rate, which the dlx specifically said was not affected by the hurricane. That came down, again. The big story im telling today today is how impressed ive been with gdp despite the hurricane i want to show you our rapid update, and we have i think seven or eight tracking forecasts in here. Its still running 2. We were up 2. 8, and then look at the bottom number there. We did 3. 1 there was every reason to think we would have a falloff back towards the 2 . We didnt do that. Now were running. You see the range there as 1. 5 to 3. 2 still a wide range thats a wide range still the september data to come in that could be more effective, but so far so good. Were only off a couple of tenths let me show you, and you can play the gdp game at home. Pick your favorite forecaster and go with it moodys who puts the survey together for us, theyre on the high side at 3. 2 mark would be whacking it down more if it was really coming in week bank of america, 2. 8 atlanta fed, the body follows to the middle of our survey at 2. 35 Goldman Sachs down at 2 , and High Frequency economics, thats Jim Osullivan down at 1. 5 . The other thing you can gauge from the gdp is lets look at what happened with the fed funds prolkt where did they go . They went up they believe the fed is going to look straight through this number, and you can see were running about 80 this morning probability of that december rate hike, and only a 1. 6 for november thats really where we are in terms of the hurricane so far were not seeing big whacks to the gdp data, which makes me think that the economy may have been Even Stronger up towards the 3 number if not for the hurricanes Richard Richard is weve had him on this show one of the most interesting picks out there. Richard has led an insurrection into modern economics, which decided, you know, everything all the models are based on people acting rationally richard comes people dont act rationally people come in and make all kinds of decisions there are crazy reasons they make decisions you would buy you wouldnt buy a sweater for yourself your wife comes along or husband comes along and buys you that sweater, and thats perfectly fine we keep separate accounts in our head we make different decisions for crazy reasons. The way a question is asked and peoples letters that say your neighbors are paying your taxes their taxes you are more likely to pay your tacks. When theres a sign at a National Park that says people are leaving the petrified wood, people other people leave the petrified wood the reason for making one of the great things, one of the great opportunities i had meeting with him, richard did a not with cass, but another study on the nfl draft thats changed the way the draft happens. He found that people dramatically overpay for those top picks relative to the value. Money ball. Its money ball. Its money ball these are a lot of the concepts of money ball that we have all of these prior decisions inside us affecting us and making us not act rationally basically were idiots. He figured that out. I think theres a whole lot of human and emotional things at play by the way, you see some of the m a guys some of the hedge fund activist guys going we have this inc. This they call i forget what he called it when you are heavily invested in something that you have gone down this road and you start making decisions way beyond the value of what something is worth. We want you very excited about this we want you to i want you to mention when he is on that its not really its called a nobel prize. Theres nothing to do with it in fact, if you read about it, it will say its not exactly the same, but it is announced with the other nobel prize laureates, and they actually do get to go to the same ceremony to get their award, but its really im sorry. Economics is not really a science. Ba humbug. Rain on anybodys parade. Its not a real were excited because Richard Thaler is someone very closely followed and who has been your lifes work, it doesnt really rank up there with medicine or physics. Whats the nobel prize . Where is your price talking heads the value for what you add. I win one every day you want to talk about a market failure right there economics is a dismal at best. A dismal Vice President pence throwing the flag at the San Francisco 49ers. President trump tweeting this morning details after the break. Then later, a tax battle in washington american eerntprises alex brill will join us squawk box will be right back. Alerts wouldnt you like one from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Aggressive styling, so you can break away from everyone else. The bold lexus is. Experience amazing. Mike pence abruptly left yesterdays colts 49ers Football Game after about a dozen members of the 49ers team knelt for the National Anthem. President trump tweeting this morning. The trip by vppence was long planned. He is receiving great praise for leaving the game after the players showed such disrespect for country. A senior official said the Vice President had been hopeful that all of the players would stand new overnight media mogul, you see things when they happen. Harvey weinstein has been fired from the company he ceo founded amid Sexual Harassment allegations. The weinstein companys board revealing that the cofounders employment has been terminated effective immediately. It happened three days after the New York Times published reports of decades of Sexual Harassment and allegations against weinstein. A source familiar with the matter says that members of the weinstein companys board have already discussed changing the corporate name even though his brother is still there he was the one picking the films and doing so much of the marketing around trying to win an act my award. Millions of dollars spent reaching out to the academy trying to make sure. The members and geg almost kamtd really call them bribes, but one of the other interesting things i thought, not many people stood up to him, but did he see Daniel Day Lewis . Did you see that i didnt see that one Daniel Day Lewis. I mean, he is an actors actor, obviously. Doesnt care what anybody thinks anywhere. He said harvey, youre only redeeming qualities are that you can read scripts and decide what would be a good movie. Other than that you are a horrible human being basically just said that nathan lane said that too zbloog you cant hurt me because i dont have a film career all right when we come back, one of the most controversial parts of the gop tax reform proposal. Eliminating state and local Tax Deductions well talk to alex brill from e eranntpre institute. That is next that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. Somewhere along of selfdiscovery a breakthrough. Its in our nature to need each other. This is not a cloud. This is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. This is a financial Transaction Secure from hacks and threats others cant see. This is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. This is not the cloud you know. This is the ibm cloud. The ibm cloud is the cloud for business. Yours. Good morning welcome back to squawk box. Live from the max market site in times square among the stories, front and center gasoline prices are down 7 cents over the past two weeks, according to the latest lund birg survey. That puts the arng price at 2. 56 for unleaded regular analysts trillby lundburg says she expects further drops in price as we move into the winter season bond insurer assured guarantee has withdrawn a lawsuit. The it challenges the legaldy assured Still Believes a fiscal plan is illegal, but it took its action because of the impact of Hurricane Maria on the island. Assured guarantee and fellow insurer mbia could be on the hook for as much as 9 billion in bond holder losses. Blade runner 2049 topped the Weekend Box Office, but the sequel to the 1982 original took in only 31. 5 million no nrt american ticket sales. Thats less than expected. The films producers had been anticipating an opening of more than 40 million the state and local Tax Deduction has taken center stage in the tax reform debate it is the largest itemized deduction filed by taxpayers alex brill thinks repealing it would raise 1. 4 trillion in new revenue over a decade. Alex brill is resident fellow at aei and he joins us right now. Alex, good morning thanks for being here. Good morning. Thanks for having me on. Lets talk about this. A lot of people have heard about this they know its called salt what it really is taxpayers who are paying local or state taxes can then take a deduction on what theyve paid from their federal taxes so that their overall tax bill doesnt soar too much it benefits people who are in blue states, highpaying tax states like new york, new jersey, connecticut, illinois, california how did it wind up in the tax bill to begin with or in our tax laws sure, its been there from the beginning, quite frankly theres an argument that it relates to federalism. That the federal government shouldnt be impeding on states abilities to tax their local residents. Actually people talked about taking it out in 1986, and that reform, but its been there from the beginning. Its there today i think its time for it to go so states rights sounds like something you would normally hear conservatives defending not so in this case. You think its time to go, but its going to be facing a pretty difficult uphill battle in terms of trying to convince republicans in those congressional voting blocks to go ahead and do something that very likely could hurt a lot of their constituencies how do you think it work out politically . Well, lawmakers are going to have to look at the deal in its entirety any time you start to break down tax reform into the individual components, theyre going to be people who are going to be upset. Quite frankly, were seeing that we saw that over the last year with the border adjustment tax thats no longer part of the plan this is another provision that raises a similar amount of money, and some taxpayers will be adversely affected. Thats actually part of the definition of tax reform it is eliminating and changing the winners and losers arrangement and kraelgt a level playing field. Right congress mern who represent people who are going to be losers to go ahead and vote for that so my sense is that inthose congressional districts, the republican districts in the blue states where this is going to hurt a little bit more, you know, there are other things in this plan that are going to be good for their constituents overall. Were going to see lower tax rates. Were going to see a larger standard deduction were going to see people in the middle class better off. Lawmakers are right to sort of raise the concerns, but the impacts it has on them locally or at the end of the day if they put together a comprehensive plan thats good for the economy, i think theyre going to get a lot of support. What do you think it will mean for a state like a new york, like a california, like a connecticut . What happens to their state economy at that point . A lot of those states you think about illinois and new jersey. Theyve got really high pension liabilities at this incident positive anyway. The states have not been in great shape. Sure. I think it will over time result in changes at the state level. The chachksz that were going to see is the states are going to reinstrustrukinstruct structure raise their revenue. Theyre raising subsidy by imposing high marginal tax rates on high income individuals when that subsidy goes away, they themselves will go to a broader base and lower rates in order to generate the revenues that they need what happens in the meantime . I just think about that. You think this is something that gets rolled in, or you think this is something that would work better if it were eased in over a period of years taxpayers cant claim more than, for example, 6 of their income as a deduction in this regard the next year 4 the next year 2 so alex, is American Enterprise aei do you think its a good idea to do tax reform in and fashion that the republicans are talking about here is that something aei is backing giving support to. I certainly cant speak for my colleagues at aei, but i can tell you on a personal level, im a strong advocate of tax reform im a strong advocate of many of the principles that weve seen outlined the concept of having a broader base and lower rates you dont consider yourself to be a bad person, do you are you greedy do you like just lining the pockets of your rich friends is that your motivation . I actually think that what weve seen from republicans while vague at the moment, i think on the individual side, were not seeing large tax breaks for the wealthy what we see is a big tax cut for corporations, and then theres a debate about who benefits from that well, you know, corporations are mostly fat cat ceos anyway im leading somewhere with this because its you know what the fight is going to be heres larry somers today. Leading the witness why americas mad tax reform plan is bad economics. Heres my point. When the democrats i said this earlier when the democrats did obama care, they all are on board. Thats what they do. They dont care. Theyre not going to sprinter off. Now you have the republicans with a president that some people think isnt really the head of the Republican Party obviously. You are already seeing that these guys are at least waffling on certain aspects of this now, you are going to have larry somers, and you are going to have the enablers in the main stream media that are going to be you know whose side theyre going to be on in tax debate, right . You are seeing it already. You think the republicans have the backbone, some of them, to vote to do this i mean, how do you handicap it im not convinced that they do theres at least three or four of them that are going to wimp out. I definitely agree that theres a battle ahead theres a long road ahead. There are folks who are on the fence. Theres no question. I think we need far more leadership from the executive on helping lawmakers make some of these hard choices we havent seen that materialize yet. You mean from President Trump . From President Trump, from the treasury secretary there needs to be more engagement, and there needs to be a little more clarity about what the plan is, and i think im hopeful that well see that. At the same time i would note the republicans have chosen this battle they have chosen to pursue a strategy where theyre taking away some of the good kbris in the tax code in exchange for a simpler, fairer rate they didnt have to pick this battle they believe the tax reform is going to be good for the economy. Its not going to be pretty. I dont know if they you know, they just dont seem to have the solidarity when push comes to shove that the democrats are able to exhibit. As they did with obama care. Something like that. Well get it done. They will line up finally to do something. We saw with the repeal, they dont on the right right . Fair point. Theres a road ahead of them, but if theyre drifb ven by the economics and the opportunities for fairness, i think that theres a good prospect early next year. Be like jelly you know, like i dont know spineless. Spineless spineless, alex. Thats why aei has to help get Arthur Brooks on the circuit. Send him over here ill see him right now and send him this way. Thanks, alex. Coming up, its tough love. Squawk ceo call is in session. The chief executive from therapeutics md joins us to talk about the companys move from the nyse to the nasdaq it seems like a no brainer to me squawk box will be right back. Its not just a car, its your daily treat. Go ahead, spoil yourself. The es and es hybrid. Experience amazing. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Welcome back to squawk box. Weve been watching the futures this morning, and theyve been picking up all through the course of the morning. Giving background here still in the dpreen. Dow futures now indicated open up by 17 points. S p futures up by 1. 5 the nasdaq up by 12. 5. You want to take a look at the price of gold this morning not something we often check you are going to see this morning that gold is up by about 8 Biotech Company therapeutics md is leaving the New York Stock Exchange to list on the nasdaq this marks the 304th transfer to the nasdaq since 2005 pushing the total market cap of companies that have switched to the nasdaq to more than 1 trillion joining us now robert we estimate between four million and six million shares of buying will happen just by switching to the nasdaq that we didnt have in the nyse. Do you think it makes more sense . Thats not a lot of stock to a big company. Right were about 1 billion market cap. Its material to us. On top of that spechks to biotech, pharma, or clinical research, the in a case seems to have the indexes being covered we didnt that as much as we loved it index buying seems like it has grown exponentially over the last decade. What are you seen . It is the ranl. Low fees not actively managed money is the trend. The fees associated with that just arent pulling the weight like they used to. Youll see a lot of the Bigger Companies that do manage money that we go and see on the buy side quite often they just dont have the growth that they used to. The indexes are really shooting up for the purpose us it was a wash the only reason. We really like the nyse. Fee trurkt was similar it was great support the indexes are over at the nasdaq we wanted to come to the party we broadcast from the nasdaq. Some of our other we have competitors at the big boards. Some of other shows on cnbc. You havent played softball in a while its almost split evenly. Squawk on the street and closing bell versus fast money is down here we get all the traders. Right thats why im having trouble giving you a tough interview here because i think the nasdaq is a i like the leadership. I like how did that happen you have products that just happened to be in that space, and then you just added to it . We saw the void cofounder brian is an obgyobn i just saw the lack of resources being invested women nowadays spend half their life in menopause, yet none of the Big Pharmaceutical Companies are refrping natural horm observes or things to alleviate the symptoms associated with it. What do you do when you are an entrepreneur you go with a competition, and weve been really successful we hear aboutasso a lot thats one of the things that happens. Bones and so forth there are other things that replacement therapy can do we have a drug thats submitted to the fda for approval for volvo vaginal atrophy. Half of all women will spend half their life with an atrophic vagina the estrogen used to treat this, with every single medical society, theyre from the is 19, 1980s, 1990s weve been able to come up with a product that is 175th the strength of a dose of the leading seller, and on top of that its placed in the vagina and our data suggests compared to the placebo, its not getting into the blood which is really important because too much estrogen can lead to potential cancers or other issues absolutely. These are chronic progressive diseases where women will be on these drugs for the rest of their lives. Half of all women will have moderate to severe vaginal atrophy. We modernize something that doctors are comfortable with, and the market is massive. Theres 30 million women only 7 being treated. Its 1. 7 billion in the u. S we dont even hear about these ierkz, let alone the treatments for them. Were here for you. How do you get more attention . Its a tip cal cyclical cycle. Are you ringing the bell . Pressing the we are today. We are today how are you feeling have you seen what you are im a little sore you know what has to happen exactly. Victim ago hey reasonable doubt auto time getting past 29 to 30. You know no pressure take a look beforehand. Get all your ducks in a low. Okay its embarrassing if you screw it up. I do have an honest plug for you. My wife, who is here, can verify my morning routine, i mean, if you are a farm suit cal ceo, and you want to know what happened quick when you wake up in the morning, i turn you guys on. As i wake up and dust off across i was going to say sorkin, but when we return, new dieta out showing how americans are watching tv and no surprise viewing on smartphones is trending higher. That story next. People dont invest in stocks and bonds. They dont invest in alternatives or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful can happen. Those people might just get what they want out of life. Or they could get even more. Becareally want to be there, but you cant. At cognizant, were helping todays leading Media Companies create more immersive ways to experience entertainment with new Digital Systems and technologies. Get ready, because were helping leading companies see it and see it throughwith digital. Throughout my career, ive been fortunate enough to travel to many interesting places. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right Financial Advisor, life can be brilliant. Ameriprise a new stud zi shows more consumers are moving away from traditional tv viewing, making the shift towards mobile devices. A lot of people are happening in the world that i cant understand i know you have the details but a 70inch flat screen, really, ive got to get rid of that . I love it. You dont have to get rid of it but no matter how big that flat screen tv in your living room gets, viewing on phones is still going to be on the rise. A new study predicts that by 2020, half of all video viewing worldwide will be off of your tv set and on mobile devices, thats an 85 increase in 2010 and half of that mobile viewing will be on smart phones and the younger you are the less likely you are to be watching television in the u. S. Over 60 of 16 to 19yearold viewing is on demand thats more than double the amount in 2010 people in their 60s spend three quarters of their viewing with lifeli life linear tv. Recently expanded free hbo and tmobile started offering free netflix to the unlimited family Plan Customers as well a third of consumers will take viewing into the next dimension with vr and see a vr head set prices come down as they make those investments, joe all right, i dont believe it really half by 2020 thats unreal. Its so think about all of the opportunities there are to watch when youre commuting and youre on the subway and maybe even watching a video clip on say youtube or facebook when you have Something Else playing on your big tv set. Some might be simultaneous. Youre right, its going to happen and i cant stop it ive tried anyway, thank you. The world keeps spinning around. Thanks, julia. When we come back, the Procter Gamble proxy battle ends tomorrow, watch cnbc for coverage live from the Shareholder Meeting in cincinnati stick around, squawk box will be right back. Win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. If you could book a flight, then add a hotel, or car, or activity in one place and save, where would you go . Expedia gives you the world in your hand, so you can see more of it. Expedia im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested subprime lender one Main Financial is up for sale onemain is in talks with several interested parties but theres no guarantee any deal will result i almost called it theres no space between it but onemain. If youre going to name your Stupid Company something, it ought to not be so up in the air what it could be walmart, returning an item takes about five minutes but walmart wants to slash that to 30 seconds. Next month it will roll out a program called mobile express returns for items ordered on the website and few months later integrate instore purchases into the new return system. Shares of drug retailers tumbled on friday after reports that amazon was considering selling drugs online an analyst in frequent squawk guest host anna gupta wrote to her clients that amazon is in discussions with mid market pharmacy managers to assess the drug Retailing Market for entry. According to an email from amazon viewed by cnbc, the retail giant will make a decision about prescription drugs by thanksgiving. Martin shkreli doesnt seem to mind prison life. The socalled penning a letter to a friend detailing time behind bars as he awaits sentencing in his words, things are not that awful here. Hes apparently reading, playing some basketball and chess. He added im teaching these prisoners new things and hopefully some ways to change their lives. But shkreli did note some of the downside, his cell mate snores and his bed is cramped and uncomfortable. When we did the story a few hours ago, something wrote, shkreli has friends . Remember, madoff is fop you lar in prison too because helping everybody financially. I dont know. Three square i guess, but i dont know three square meals. Yeah, i dont know. It would be tough. No thanks. We also talked about this earlier but for those who werent here then, dove dropping the latest ad campaign after drawing lots and lots of criticism. It posted a three second ad to facebook showing a black woman removing a brown shirt to reveal a white woman in a white shirt lots of people were outraged calling it racist. The company says its committed to beauty of diversity and admit they missed the mark they missed the mark, putting it plig politely. Were they trying to be insend dairy i dont know if they were stupid or remember united colors of bennetton. Right now, its time for squawk on the street. Good morning, welcome to squawk on the street. Im david faber along with melissa lee. Jim and carl have the day off. Stock markets are open despite the holiday. Bond markets are closed. Lets look at the futures, europe also kind of mixed. You can see the ftse is th