Transcripts For CNBC Squawk Box 20130911

Supporters in congress are pledging to cautiously back the president s pursuit of a new russianled diplomatic solution. But critics are slamming the speech for what they call a haphazard response. We fail to see its National Security interest in a war twren a leader who gases his own citizens. John harwood is going to join us with more in just a few minutes. We have joe watkins and Jimmy Williams. Theyll be joining us at 7 00 a. M. Eastern time. Then a number of perspectives from capitol hill. Senators Heidi Heitkamp and John Barrasso will join us at 7 40 eastern time and then senator bob corker will join us at 8 15. The canadian Ontario Government will be selling nearly a quarter of their Common Shares in gm for 1. 1 billion. For those who didnt raelsz, its part of a longer term plan to shed the stock they had acquired back in 2009 when they helped the u. S. Government bail out the automaker. You have to imagine theres going to be some pressure on that stock. This could be a good thing, this could be a bad thing, depending how you look at it. Texas instruments narrowing its Third Quarter forecast. Revenue between 3. 15 billion and 3. 29 billion. Analysts currently expect the company to post earnings on sales of 2el 3 billion. Shares slid in extended trading. You can see there right there. Apple has been granted a license for its new iphones to run on the largest of chinas mobile networks. But no deal with china mobile has been announced. Many had been expecting one at an event in beijing today. That was probably overshadowing the bigger news, the colors and everybody else we learned. Well have more from eunice in just the next hour. Joe, are you going to be buying a new iphone 5s . C, c is for cheap and s is for and i know you didnt find the video, but i do think the s indicates wow, a different color. And, you know, this has been something that we worried about. Is tim cook going to have you know, like when a drug company, they extend their patent protection by an extended version release or is it going to be what else is there . They did the slightly smaller mini pad, i suggested a slightly larger maxy pad for the ipad when they never did. That was already copyrighted. Theyre talking about that now, a sixinch screen on the iphone would essentially be when you say that, you know what im going to say. Whenever you say six inches, something is going to come out. Andrew, one thing about the iphone that struck me was that towards the end before everything was recapitalized, gms market cap was almost zero. It will so much debt that its entire enterprise value was based on debt. Thats not the case any more. Suddenly, this stock has a 51 billion market cap. I was thinking about the 1 billion. Thats 2 . So its noteworthy to mention it, but in the old days, that would have been a huge amount of the equity in the company. But now its only 2 . Lets check on the markets this morning. The markets just dont want any military action, i think. And you saw what happened yesterday. Were down a little bit today. And i dont think the markets, like, think about our longterm interests, our credibility in the world, our security, how others perceive it. They just care about what the uncertainty of the possible repercussions could have been from a strike. So this sort of gets it off the table. Maybe well be back to do they taper or do they not taper . Plus some interesting stuff from goldman sachs. Are we talking weekses, months, years . Did you see yesterday they showed the Public Opinion and how it had changed in two weeks. Right. And it went from Something Like 50 opposed to 65 . So the time that we had waited already has gotten people saying, you know, sitting back saying, i dont think this is something that we want. I cant imagine with the chance of a diplomatic solution. I think we all know if youve got a thousand tons of gas spread all out, all over the country and youve moved it around. You cant even find it in a peaceful country. Inspectors cant go in. Its hard enough. During civil war but the idea that you have people who will now be able to sea theres a serious diplomatic solution, that means youll get even less support from politicians and the public. But he used the gaffe and he used it for a region because those were those areas where the rebels those were stubborn placeses. So he used it and now its going to consolidate any gains he made. Weve got time. Were not going to do anything. And i know the rebels are weve talked about them. Theyre not a Homogeneous Group and theres a lot of radicals in there. If you watched Richard Engle last night, theyre the ones that are like, youve got to be kidding me. Theres no help coming for them at this point. But it would prevent him from gassing his people again. It would be hard to imagine pretending hes going to turn it over to u. N. Inspectors, it would be hard to pretend he could use it again. The tale is not working here. You should be up today based on what the u. S. Did. Lets check asia. And see whats happening there. Asia, its mixed. You see joe graham . I did see that. He was a big deal. People dont remember. He did a lot of the work for technical analysis. He got a little crazy because he dressed up like a fair row at one point. But the crash that you called, 27 points. It was a huge crash at the time. Oil should be going down, but its not. 107. The tenyear, still something were getting back to running this every two seconds because were back to tapering and Larry Summers versus jan the yellen and fed speak. If it gets us back to that, maybe thats a good thing. Lets check out the dollar, which is interesting in terms of the yen recently. You can see the yen back over a hundred. And then i alluded to a call from goldman earlier that once tapering starts, that the weakness in gold is going to and its been strong. You know, its rebounded, made back some of the losses it had last year. But that it could extend into 2014. There were some movers after the bell. Andrew. There were some movers after the bell. A couple corporate movers. I dont know if you bought a couch this quarter, you about you might have helped restoration hardware. The furniture chain offered up guidance, shares climbing in extended hours trading. Take a look at the stock price there. Best buys ceo, schupert jolley, he ended up selling about 10. 4 million of his stock to cover the cost of his divorce. The sale was disclosed in a filing just yesterday and finally, International Paper lifted its Quarterly Dividend by 17 to 35 cents a share. The Company Announcing a 1. 5 billion repurchase program. Becky. Andrew, thank you. Lets get back to this mornings top stories. The situation with syria, john harwood joins us from washington this morning. John, what is the talk in capitol hill this morning after the speech from last night . Well, i think, becky, the dominant fact underlying all of the discussion and debate about a potential strike against syria is the fatigue that the country feels after 12 years of war in iraq and afghanistan president obama and his speech last night tried to address that directly by telling americans that whatever happens, even if hes ultimately the choice, its not going to be like iraq and afghanistan. Heres the president. I will not put american boots on the ground in syria. I will not pursue an openended action like iraq or afghanistan. I will not pursue a Prolonged Air Campaign Like libya or kosovo. This would be a targeted strike to achieve a clear objective. Deterring the use of chemical weapons sdpe grading assads capabilities. Now, of course, the question is whether that option ever gets decided. They were going to pursue a Diplomatic Initiative for now. The administration is going to face a test internationally as people watch over the next week or two to see whether or not theyre holding on to something that is not credible simply to avoid a difficult decision or whether theyve got something promising and thats a truth test that the entire world is going to make and the United States is going to have to make a decision accordingly. I do think joe got to one fundamental truth, though, when he was talking about reaction here. The markets think of that as deeply on Foreign Policy as teenage boys do. The same way they think about fed accommodation. I have in idea what it will do lodge term, just give me, give me, my stock is up another quarter. Exactly. John, im glad its not going to happen, and im also kind of glad that the president doesnt need to suffer a humiliating defeat if it that may never happen, either. And its like so many the one thing that amazes me is that after all is said and done, its kind of working out almost. I dont know if its going to work out in syria, because as bad as some of the rebels are, theyre like, wow, were not going to get any help. And assad feels like, wow, nothing is going to happen. But for a lot of americans that didnt want any engagement, its happening. I wouldnt be sure that nothing is going to happen, joe. And i would say if you had to bet, if you were betting on the both the sincerity of syria and russia and the technical capacity in any reasonable period of time to accomplish what theyre talking about but its impossible to do it. You would bet against those things. And if that becomes too obvious and unavoidable six months we cant do it. Let me finish. If it becomes too obvious and an unavoidable conclusion that the president was being played by putin, i think it is possible that we strike without going back to congress, which was the nut of the difficulty. You know, the president felt he had to go to congress, but decided at the last minute and it was looking tough. If that was the case and hopefully he doesnt feel the need to do that. I think you would do that once the proposal becomes evidently not workable. And that is a you know it when you see it kind of thing. And i think that but youve got at least a week, maybe two weeks before the diplomatic oopgz to be pursued. And i was talking to a white house official last night. Theyre counting on the idea that as people see diplomatic events play out on the ground, see that the administration tried, that the world tried, britain and france throwing in with the United States on this. If it fails, then its going to about be easier to have International Support for strike and the more International Support you have, the easier it is for the president to launch without going to congress. Does he have to go to the u. N. At that point . They will be going to the u. N. They could not they would not be able to get a oourn Security Council resolution, because of russian objection. But you could get more and morale lies lining up behind the administration. Again, im not predicting that. Im not saying that thats likely to happen. But i dont think anybody can put too much stock. It is a sense of relief and a bit of a life raft that the administration has fallen on to with the russian syrian proposal. But i dont think anybody can put too much stock at this stage in the fact that thats actually going to bear fruit. Fallen on to you choose your words carefully. Im trying to figure out how long it would take to get the language of what theyre going to try to do. And then when do you find the first couple of tons of gas and actually destroy it . It seems like it would be i think its already out there. I saw four points out put out by the french laying down. When would you find a sequ t sequester and destroy it . Getting the diplomate can language done the language is at four points. Theyre pretty stiff points. John, it sounds like it would be very difficult to go ahead with a lot of these that are put out there. Not only finding the stuff, but it takes years to do this and how do you accomplish it and, yeah, i its very difficult. John, we have to wrap it. The way you said fallen, i was trying to figure out what this its almost like a night at the improv. They dont have any script, they dont know what the comedy is going to be. They just go with it. But the way this has happened, i would think i would hope that the secretary of state would choose his words very carefully whenever he was representing the United States and saying something. Well, joe, in fairness he said unbelievably small. Then the president has to come back last night and say we dont to pinpricks. He threw out the weapons thing to say this something they never do and then its something theyre going to do and then it becomes policy. These things are bouncing off the side of the pinball mbl. Youre properly identifying some of the encore heerns at the heart of the policy. On the other hand, on this russian syrian proposal, the president and putin have talked about this over an extended period of time. I dont know that they expected when secretary kerry gave that remark at a News Conference that it was going to actually materialize via the russians and the syrians after he said so. But there was a little bit more forethought and discussion than appeared evident the other day. I think biden did the gay marriage on purpose. Im not sure kerry did this alone. I think that was planned, im not sure about this one. Anyway, we have to run. John, thank you. Okay. By the way, we will continue our coverage all morning. Joe watkins and Jimmy Williams will be debating what happened last night and where we go from here. Then we have senators Heidi Heitkamp and john parrasso will be joining us at 7 40 eastern time. At 8 15, we have senator bob corker. All right. Ross will give us the uk euro perspective, although i dont know, i dont know how long you guys are going to be part of the European Union at this point, ross. Youve got to will you go into all that force, it looks like its evenly split behind you. You have a little green, a little red. Exactly, joe. Not going anywhere fast this morning. The Dow Jones Stoxx 600, excuse me, is at about the high point for the session this morning. And the ftse is fairly flat, as well. Just down 6 points. Xetra dax up 34. Cac 40 down 0. 08 . Yields were higher than they were in august. We have had a die into the Senate Hearing into whether mr. Berlusconi should be kicked out of the senate until thursday. We still dont know whether thats going to happen. We are focused, of course, on the apple announcements, those two new phones they announced last night. Mixed reaction to stocks in europe. First of all, im holding the chip arm up 4. 3 . It was confirmed that apple is using its own 64 bit processor. Its believed to be based on an arm designed for which they get more royalties. Thats good news. Gemalto, on the other hand, down 4. 6 because the new iphone does not include Near Field Communications technology. Dont ask me to explain what it is. But its not in the new apple. So apple is down 4 in april, as well. We now officially have a target for the year. Unemployment today coming in better than expected or the mroimtd picture, the Unemployment Rate dropped to 7. 7 . Gilt yeerlsdz are higher. Firmly on the euro and the pound. Thats the highest for a couple of years. Back to you. Ross, thank you. Back here in the United States, a couple of events in the credit markets worthy of watching today. First up, verizon is expected to bring the biggest corporate Debt Offering ever to market. Thats happening today. The company upped the offering to north of 40 billion because demand for the offering was so strong. Verizon is using the proceeds to bridge the loan in acquisition to its vodafone stake in verizon wireless. Meanwhile, 20 billion in tenyear notes for verizon will be happening at 10 00 eastern time. There were questions about liquidity in the debt markets. Forget about that, we see see the ten year goes where it wants to go. We frit we have to sell it. Theres been questions about liquidity and regulators are apparently now looking into it. I just thought you meant demand. Demand and liquidity on both fronts. So like a 40 decline. I have to find the story in the ft. Is the nasdaq suddenly running the exchange or something . Is it no. No, no, no, public demand out of all of it. I find the verizon story crazy. It shows you what a great some of it was more unanimous 7 . It shows you how great the potential is when they own the whole thing, right . I might want to own part of that Company Given that theyre going to be the player. Someone yesterday compared that deal to our deal, remember when comcast bought cnbc, what that did . Sort of a quick, great thing for yep. What i thought was a great thing for the company. What i thought was theyre replacing a bridge loan of 40 billion, which apparently a bank or banks are on the hook with their money for 40 billion. If you have glass steagall, how do you do that . No, no, no. There were bridge loans that for a while. This was the letter of the law. That is a fallacy. The fallacy of the advocate vo is that somehow youre going to get rid of risk and banks will be riskless. The biggest risk that banks take every single day are making loans and making bridge loans, commercial loans. Theyre loaning the real estate brokers, for cash Partner Rights rules. So they would be precluded under a no. If bank of america or jpmorgan decided to invest in verizon they were deciding to invest for a week. But the goal of a bank has to be to provide credit to the country, has to be able to provide they could lose money on that. It doob the london whale. You guys are agreeing with each other. I dont want taxpayers paying for verizons miscue over vodafone. Thats a strong argument. Forget about it. Weve got to take the other side, right . Lets talk about a group of economists that have written an open letter to president obama arguing in favor of janet yellen as the next fed chairman. More than 200 economic professors signed on to this letter. These are names of people who we knee knew were supporting yellen. Larry is going, yes. They highlight her issues on labor initiatives and blinders on reviews. And i read its all roens why it should be yellen, but and the but if you read them, its like because she can work with people without being a total sob. Its like, what are they talking about . All they do is give positives on her. I was looking to see where larry is a bad choice. But you can read through the lines. Some of the at rtributes that ty give to yellen by the way, did you see yellen could still be the chairman of the board briefly . I thought that was theres a chance that its an interim situation. Although my question is, would bernanke actually leave . A lot of people saug he will stick around until they actually name someone. Yes. What do you say about this . Weiner is down, down and out. Spitzer, you heard what i im not going to repeat that. Really . I dont know. No, maybe we better not. Coming up, new york city rejecting comebacks for Anthony Weiner and spitzer in his quest to become controller. Well have details next. Your guy is looking strong. But first on a day where we learned about wealth disparity again you saw that. Yeah. We need this. Just move it over. First, lets check on the National Forecast with the weather channels alex wallace. Good morning, guys. Tracking a cold front. This is going to be a big player for us in the coming days. Right now, its helping to bring us a few showers and storms. Parts of the great lakes into the plains. It will move through those areas and eventually getting into the northeast as we head into tomorrow. That could bring storms to some of these areas. Today, its mainly great lakes interior northeast where we have the threat for strong to severe storms. There will be a lot of lightning to those storms, damaging tail or tomorrow. From maine down into the midatlantic, over the ohio valley. The good news is, behind this cold front coming through, much cooler air will be coming in though drop those pictures from the heat would he have been dealing. Some relief is in sight by the end of the week. [ tires screech ] [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutionizing power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Time now for the executive edge. Senator bob corker says he is opposed to volkswagens plan to have a uaw in his home state of tennessee. He said the autoworker would be a laughing stock if it goes through with a deal to represent workers at the tennessee plant. 10 00 a. M. I dont know what to make of this. I am almost surprised that he would get involved. If woex waggen wants to do this, do they think that they are employees are going to unionize otherwise . I dont know what the lead up was. You heard corker says that its that it would make him look ridiculous, so theres some precedent. Unless hes pushing it didnt sound ridiculous to me unless he was pointing back to detroit and the automakers getting in so much trouble. But i was surprised to hear him weighing in. I think part of it was that he attracted volkswagen the first time around. Sure. Which was the mayor. And we wont be unionized. And so now things seem to be flipping around. Did you see the latest aflcio that you dont even have to work to be in the union now . Yeah. Theyre looking for ways to boost their membership. Its a good idea. You may not get a job if youre one of the i dont know how many people are unemployed plus out of the workforce, 10 million, 12 million. Might as well be if a union. And theyre figuring that they have viewpoints very similar. Do you have to pay membership . I dont know. If you dont pay the membership due toes bribe the politicians. You could be talking about aarp. They should merge with them. Why did you say that to me . Why did you think i was saying it to you . I know why you were saying it to me. I would never join that, but they sent me a car. You automatically get enrolled when you turn 50, dont you . You automatically get it. But the stupid clear view cinemas, its still 65. Are you 62 . All the things about being a Senior Citizen and its expense itch, popcorn full price. It will get you a cheaper metro card. Short for metrosexual. Otherwise to get you on the subway. Results are coming in for new yorks primary elections yesterday. Voters rejected Anthony Weiner in his race for the mayor and former Eliot Spitzer in his quest to become comptroller. Sadly, we did not win this time, but i could not be more proud of the campaign that we ran. I could not be more proud of all of you. In the race to become mayor as bloombergs tenure ends, bill deblassio is the clear leader. He needs 40 to advance to the general election without a runoff. He would be running against republican joe loda. But the votes are still being counted and reports say it might take until monday for the final number toes be tallied. All the papers endorsed quinn, but tompson was second. I cant tell you how many i was with some people yet who were diblassios people. No, right the people you hang out with, the people you live with, your entire neighborhood, i got it. Who said theyre going to vote for now that diblassio looks like hes going to win say either we have to move or we have to voed for loda. Because your friends would like diblassio only until they realize, whoa, whoa, youre going to tax me that much . For those of us in the limousine liberal camp youre a jet liberal. The whole soak the rich thing sounds good, but doesnt becky, will you do the spitzer thing . No. Will i tell your joke . Every madam in the five burrows is trying to sleep and her blackberry is going buzz, buzz, buzz, on the night table. What . What . Back in the saddle, baby. Campaign is over. Ready to go. Ashley dupre is getting married. She is. Shes got the kid already. To like an asphalt tycoon. It did give us a lot of fodder and a lot of things to talk about. It did. Weiner is down, it says, on grudge. And out. Actually, spitzer did talk about mounting this campaign. I heard it in his speech this morning. It was a twominute speech. You can see the mind right there already. He had to go with it snch let me tell but a well known booster pickens is back. In a period from 20012011. Oklahoma state booster t. Boone pickens is not holding back in his response. Theres one word i have for the Sports Illustrated reporting on Oklahoma State. Disappointing. The series is not reflective of Oklahoma State university today. Many of the sensational allegations go back a decade. There have been wholesale changes at the school in recent years in leadership and facilities. During that time, i have given more than 500 million to osu for athletics and academics. Have i got my moneys worth . You bet. Yes has donated more than 5 million to the school for academics and athletics. He was not mentioned in this report for improprieties. You wouldnt pay the players . Id pay the players and call it a day. I think its ridiculous that you cant sign an autograph and get a dollar for it. You just let i be use them and whoever is the best i dont put it in the same category. Its level for the competition and is youre going to get paid down the road. Its supposed to be the idea that these are students first and athletes second. Unfortunately thats not a reflection of reality for many of these big schools. Thats not to say that its not a reality for a lot of them. Plenty of these schools have gone through and tried to clean things up. As boone points out, they allegations went back to 2001 in some cases. You know who played saturday . Alabama versus a m. Johnny rutgers . Only you would bring up rutgers. For becky. But when were talking about alabama and texas, didnt you lose already to some krooppy team . Rutgers is playing michigan. You already lost in the first game, didnt you . I know. Is cornell playing . Isnt that a Football Club . Im going to come in and wear a jersey. I actually had an emailer come in and say theyre going to send me a jersey. Well see if they really want me to start hyping. Well find out. Investors less than impressed by apples unveiling yesterday. Then a deal that was expected with chinas largest mobile carrier didnt happen. And today marks 12 years since the terrorist attacks of september 11th, 2001. Sth a live picture of ground zero where a commemorate ceremony will be held honoring those we lost that day. Welcome back to squawk box. Headlines from this morning, hedge fund southeastern asset management. Do you know that . Ive heard of them. They had a thing going with dell. Do you remember that . Oh, yeah. I do remember that name. Where in the south do you know what do they mean southeastern . Are they down south in the east somewhere . Like atlanta or something . Scooped up a 12 stake in news corp. That makes the firm the second largest stockholder behind chairman rupert murdoch. It probably means theyre down in, like, the west village, right . Southeastern asset management, here it is, recently best known as an ally with carl icahn. Where is it . Memphis, tennessee. I like that when theres some of these funds that are not just based in new york. In an ally and his fight for dell. We have news about aluminum use onners. The Group Includes cores and othermakers, drink cans, calling on the lme to implement bigger changes to increase transparency. What i dont understand is at least allegedly, if i had aluminum in my warehouse and the client can get the aluminum, wouldnt the client call up and say im not using you any more . You would think. The whole thing seems biza e bizarre. But apparently everybody is in cahoots with each other. Moodys says all the states except delaware have moved out of the possibility of falling back into a depression. That would be the deleware spelled like that, not the other one. This is that new state called deleware. Do we ask for degrees at all . It was a typo. Nowhere near e. It was probably a typo. There we go. Delaware alone is in moodys states of at risk of recession. Thats a category that is held up. But, again, the only one left is delaware. Apple has been granted a license for its new phones to run on the largest of chinas mobile networks, but no deal with china mobile has been announced. Many had expected one at an event in beijing yesterday or today. Thats where we find eunice une. They have more than twice the population of the United States just in terms of users, eunice. That the. Everybody was hoping it would be a big announcement and its a really important deal to happen. China mobile is the biggest carrier here in china and it has 700 million users. So everybody wants to see apple and china mobile come together and strike some sort of deal in order for apple to really expand its footprint in the country. I spoke with china if a mobile to see if they would give us anything else. They said they had no comment. Theyre still negotiating a deal with apple. But a lot of people online were competed about it. There are a lot of china mobile users hoping this news would eventually lead to some sort of deal because they want to eventually switch to iphones, guys. We dont know any timing on it, but there is something in the works, its a mart of when, not if . Yeah, thats what it appears to be. Because this was on a government website. And it did say that the licenses had been granted to apple so that it could sell the iphone 5s and the 5c on china mobiles network. So we saw that on a government website. Its just a matter of time. But i wasnt going to ask, i thought it was pretty interesting, joe, earlier, you were talking about thou c in 5c stands for cheap. But here in china, people are joking that the c stands for costly. And here theyre talking about it stands for costly just because theres been a lot of talk about how people are hoping had hoped that apple would bring some sort of cheaper model to this country in order to really capture more market share so it could grab some of these more budget conscious consumers. But that didnt really happen. The u. S. Thought it was bad at 550 a palm to the 5c in the United States. Here in china, its 730, which is just 100 cheaper than the iphone 5s. So people are saying, you know, theres not much of a different here. And maybe thats the whole point, that apples stratdgy is to continue to target the premium market and to really go after the margins, even though theyre facing so much competition from the low end of all these budget smartphones that are hitting the market here. That could quell some of the criticism that came from the abdomen list community saying we dont want the no margin situation. Thats interesting. Eunice, thank you so much. Again, eunice yoon. They said its a laminated plastic and it has a poly carbonate and other things. The whole thing makes no sense to me. I have to say it was one of the great disappointments. Theyre missing reload, watching the whole thing. I wanted to see the last did you, really . I did. Thats how much of a dork i am. How about that . You know what . Thats the first step. Admit theres a problem. Yeah, i know the problem. Theres a higher power and then thats another problem. Coming up, five years after the financial crisis, barclays holding a major banking conference in new york today. The man behind us is going to join us right after the break. Welcome back with everyone. In our headlines this morning, an fda panel has recommended an approval of new drugs to treat chronic obstructive pulmonary disease, better nonas copd. And barclays is hoeding a Global Financial Services Conference today. Jason gold brerg, senior equities analyst at the firm. Jason, good morning to you. Good morning. If i remember correctly, five years ago, this same week, you guys were holding a conference right at Lehman Brothers was falling apart. Is that right . That is correct. And i believe that bob diamond went to that conference. Did they follow that conference, as well, back then . Ironically, the conference did kick off with bob diamond of barclays. So we can talk about the crisis, but five years later, is there a major take away . Youve had one day of the conference thus far. When you think back five years ago to where we are today . Oh, a world of difference. Its amazing how much stronger the u. S. Financial Services Industry is in terms of capital, in terms of liquidity. You have loan losses below historical levels and declining further. And, you know, a lot more highly regulated industry. Right. You know, weve heard that as Interest Rates creep up, you probably saw the story in the wall street journal earlier this week suggesting that youre going to see banks start laying people off. How much have you heard about that at the conference . You know, certainly in the mortgage arena, you are hearing a lot about that. Mortgage refi applications are down 60 from their peak in may. Banks predicting mortgage originations down 30 in the Third Quarter. To compensation for the new environment, you have to lay off environment, you have to lay off people. Off 3,000 people. Mortgage dealer doss the same. The top three banks. Are they really your top three picks at the same time . Not necessarily. I think it takes success. Bigger banks are doing quite well. Wells fargo is cutting people and growing in other others. They continue to expand, take market share, lending and deposit businesses. My favorite topic, are we going to see more transactions between now and christmas . Within the banking industry, not really. A lot of banks would like to be bigger and do acquisitionacquis. Real quick on mna chlths im thinking about mna fees on other types of transactions. Youve seen a decent start to this quarter announce transactions up from the second quarter. It does feel like thats continuing to gain some attraction. Started off slow. Seems to be a pick up. A lot of corporates under pressure due to Global Economic growth. Consolidation helps that. Jason p weve got to run. Maybe we can invite you back to give a speech five years later. Thanks so much. Coming up, reaction to president barack obama s prime time speech. Opinions on both sides of the aisle still ahead. With the spark miles card from capital one, bjorn earns unlimited rewards for his Small Business. Take these bags to room 12 please. [ garth ] bjorns Small Business earns double miles on every purchase every day. Produce delivery. [ bjorn ] just put it on my spark card. [ garth ] why settle for less . Ahh, oh [ garth ] great businesses deserve unlimited rewards. Heres your wake up call. [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose double miles or 2 cash back on every purchase every day. Whats in your wallet . [ crows ] now wheres the Snooze Button . [ female announcer ] its time for the annual shareholders meeting. Therell be the usual presentations on research. And development. Some new members of the team will be introduced. The chairman emeritus will distribute his usual wisdom. And you . 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[ male announcer ] and our priority is you. Go to usps. Com® and try it today. [ male announcer ] and our priority is you. Dont tell mom. Dont tell mom. Dont tell mom dont tell mom. Okay. Dont tell mom. Dont tell mom. Dont tell mom . Yeah. The best stories youll ever tell start with, dont tell. Dont tell dad. Start yours in the new santa fe. From hyundai. Take a look this morning after six days of gain. Futures are ever so slightly lower this morning. This is coming after a significant move that weve seen two days in a row of double digit gains for the dow last two sessions. In our headlines, verizon seeing strong demands for largest ever corporate issue. Investors put 90 million that could push the offer to 50 billion. Verizon is using the purchase to purchase 45 stake in percents. U. S. Treasury sold 807 million shares in august. South Eastern Management disclosed 12 stake. Thats up 1 from held at the end of june. Carl was part of the effort to find alternatives for the 25 billion take over bid in an effort that ended earlier this week. The story of the morning. President barack obama addressing the nation saying military will be will be to strike if syria does not give up chemical weapons. Good morning to you. Good morning. The early part of the speech may have seemed familiar. He said chemical weapons were used in syria, that assads regime was responsible and that the United States should do something about it. The president put himself in the center of the political spectrum. To my friends on the right, i ask you. The failure to act with a cause you plainly suggest. To my friends on the left. I ask you to reconcile belief in free dorges dignity in all people with images of children in pain and going still on a cold hospital floor. For sometimes resolutions and statements of condemnation are simply not enough. By the end of the speech last night, the president said hes willing to listen to russian overwhich you are on whether or not they can sequester chemical weapons in syria and cause the regime to give up the weapons in a verifiable way. Hes going to let the debate play off. He asked congress to hold off on authorizing military action in syria. The president making the case for military strikes saying hes going to hold off authorizing the strikes until the diplomacy plays out. A little different from the speech last night. Thank you for that report, joe. Joining me, Jimmy Williams, democratic strategyist. They have a chance to get in here. Former chairman and ceo of honey well also a cnbc contributor. Im going to address everyone here. Initially there was a time when i thought the absolutist Foreign Policy was something we needed to do. We had to be clear, strong, had to have red lines, enforce everything. What weve seen happen, the improvisationalle reaction this has been handled i thought maybe we were crazy and losing credible. Im not so sure jimmy. If it keeps us from going in where we dont have credibility necessarily anywhere we open another hornets nest. Maybe it was meant to be this way. I will come right out of the gate and say i think the white house has handled this situation remarkably poorly. The message is muddled. We dont know what we want to do. We get this coming out of left field. Message wise has this been handled poorly . Yes. Let me be clear n. 1933 prehitler established the first concentration camps and began gassing people in 1941. Fdr said lets study this. 6 Million People dead. We got bombed by the germans as john calls it. We have to do something. I agree with what he said even though leading up to this it has been muddled. We should do something here. Ill say this quickly. This is nothing more than a bunch of countries that hate each other. Shiites look at what happened in egypt. You dont know whos on whose side. It was a bunch of bad options and worse options. I dont know how you can plan exactly how to go about it other than reacting to the situation as it changes. I have a hard time criticizing them that much on this. Well, joe, the power of the american presidency is the the fact the commanderinchief always hold the option to strike if the commanderinchief chooses to do so. This is an option reagan used in the 80s, bill clinton in the 90s. The National Security by student rights made this case a couple of weeks ago. The white house has put itself in a corner. The secretary of state was set to make a strong case for a limited strike against sir i cant have because of the use of chemical weapons. Now were at the point where the president is ready to accept a deal from rurk sha to allow oversight with the chemical weapons in syria. Who trusts that this is going to get done . Who trusts the u. N. To get this done . Its already said in the International Game of chess, check mate. The United States considers proposal and got to take a limited strike. Where do we go from here . People have said our credibility is down. The strongest economy on earth, biggest military on earth. People know what were capable of doing. I dont know if our credibility stands. Youve managed through business situations. Do you wish the president had use standard executive power and done something already . We dont know who to root for here. The rebels dont like us. Government doesnt like us. Were going to be criticized. Why should we send american treasury to consider a situation like this . You think tossing a couple of missiles over there is that going to change how do we get out of this . We shouldnt talk limited strike if you dont mean limited strike. You shouldnt talk limited strike if you dont mean limited strike. If you do mean it, you shouldnt talk hit. What goods is it going to do to drop a couple of missiles over there a couple hundred people are dead. Are you kidding me . Only the last 1400 matter. The first 14 thousand we dont do anything i agree. Dont let genocide happen. Its not a happy thing. If it happened to us, do you think we should set back and say oh no big deal . Of course not. The question is what would you do . Id go in and take assad out. Youre the only democrat that wants to do that. Theres no retaliation for that right . What are they going to do to us . I disagree a thousand percent. What is this going to do, use Nuclear War Heads against us . Of course not. Worse thing thats going to happen, youre going to have the arab nation try to bomb israel. Theb theyll rip them apart. Who are we empowering . If we take out assad, how who are you putting in place . I completely agree. Nobody knows who the good guys r. You dont put the United States out on a plichlt we went on a limb several weeks ago. The secretary of state made the strong case for limited strikes against syria and assad. You dont put us on the limb and then put us in the places we have to go through the United Nations. Ive said earlier mate. Weve got to agree to use limited strike. Were not going to do that or should we. You said you wanted them to bomb israel . No. I said that would be their reaction. Some arab state would go in, perhaps syria, they would bomb you would welcome that . Israel would wipe them off the earth. Their fire power is my point is, there are no good people here. A hundred thousand people are dead. If were going to walmart and not worry about that all day long, thats fine. I think we should have to live with that. These dictators dont see it the same way. You know atros the is in north korea occur on a daily basis. Theres horrible things happening in the world. We do want the moral high ground. The people over there dont give us the moral high ground. Theres more reviews in wmd to invied another country. Well get no thanks for this. This is like iraq. We go in there, take out saddam, walk away. No. I did not have the same view on iraq. Weve seen that go over. Who goes first. We often dont know. Before we know who is on forks who the perpetrators of this genocide happen to be, we dont know anything. You dont make threats. That sounds familiar too, jimmy. Colin powell told me about it. He was lied too. Liar is easy to say. Tough to figure out whos lying. Jimmy, thank you. Like i said, the stock market doesnt want anything to happen we want it to go up so maybe it will get back to new highs. Okay. Still to come, marking a lot of things 9 11 today. Also the anniversary of the crisis. This gentleman was in Constant Contact with dick folds as he tried to save Union Brothers from collapse. Roger going to join us after the break. And apple looking to gain in china. The information there did not materialize. That is straight ahead. Welcome back. Our next guest. How would he prevent another financial crisis . We are joind now. Good morning to you. For those that dont know who roger cowen is, everyone should. You were behind the scenes aig, working with gold man sax. At one point, wachovia, lehman brothe brothers. When you look back five years ago and look at where we are today, are you satisfied with all the things that are taking place in the regulatory side and where the banks stand . Andrew, good morning. I am somewhat satisfied not fully satisfied. We still have quite a way to go in implementing the regulations that frank has required. I think we will be there by the end of this year. We cant really grade the government and grade the effort until we see those regulations in final form. How do you grade looking aback at bailouts, from the outside we think they worked to some extent. Still some larger questions. On the inside, if you could do it again, how do you think it would change . I do not think it would change very much or should it change very much. We had a group of small group of individuals in the government who made courageous decisions basically without political consideration other than left to the country. You can argue that this or that could have been done better or differently but the final result was we were saved from the total financial catastrophe by the efforts of those in the government. One of my great worries is that if we ever needed a bailout again, the political world wouldnt be there. It would be so politically unpopular. Even hank paulson would struggle to put together a bailout. This is where you come in. On the banking side. If i was a ceo of a bank that gets a call from hank saying i need you to merge tonight and well subsidize it. I think youll look at hit and say hell no. Im not going to do it. Youre going to sue me for what youre forcing me to buy. Nobody is going to be there to catch the domino. I couldnt agree with you more. That is probably the area where we need the most focus. Im not sure we have done nearly enough. The only answer is to really insure the title 2 with the orderly liquidation. For all reasons you mentioned were not going to have the large rescues in the future. There are critical aspects which need to be implemented. We certainly need to have a Long Term Debt requirement so the methodology called single point entry will work. We need to clier identify what will work with orderly liquidation fund. Most important we need International Cooperative approach dealing with the failure of Large International institutions. We absolutely must get away from this nationalistic sense. Nice to see you. My pleasure. Does it concern you with the upcoming regulation thats going to be the banks in terms of Competitive Position . Secondly, do you think the break up of Investment Banking and commercial bank as good positive in containing the possibility of going back to 2008 disaster . Let me start with the second of those questions. It itself was enalkted on the false premise financial banking had created the crisis in 1933. Virtually every economic historian thats gone back and looked that the period has concluded seekingle had nothing to do with the financial crisis. It didnt have much to do in 2008 either. To try and artificially place barriers on combinations in the Financial Sector to me doesnt make a lot of sense. With respect to the first question, certainly there is a danger, not in any one of the regulations but collectively how they work together. We need somebody, fed, treasury, both. Sit back, put a circle around regulations and make sure theyre working in a synchronized method to have a ro bust scheme. You dont think it should be artificially imposed on the bank. Over a year ago, it was said the climate has changed for banks. If regulations arent clear and beneficial to sticking around and having sierp banks, he thinks the banks should split themselves up. Theyll be able to do more things that they wouldnt be able to do otherwise. Do you agree with that idea . Im not sure i do. Great respect for mr. Wild. The idea of Free Standing investment banks without a Bank Holding Company federal supervisory apparatus without having access to retail funding, that is inheritly an issue. Im not sure we have the safer system. But the predecessors of the crisis there fanny and freddie they were much more linear in their approach. Obviously you were part of all of these mergers. I was part of the crisis to save the system. I dont think the intent of the system was to create these as big as they have become. You do it in crisis. In a normal xized time, is this the right way for the system ultimately . We do have limits and very significant limits on the size of financial institutions. No institution can have more than 10 of the domestic deposit. No institution can have more than 10 of all liabilities. We do have limits which i think should be affected. We should be concerned that institutions are so dominant they adversely affect the markets. I think limits should be affected. Raj thank you for joining us. You did important work five years ago and continue to do that today. Thank you. My pleasure. Thank you. Apples china problem. The company trying to gain market share there. Can the Company Ground gain in the largest market outside the United States . Well answer that question when we come back squawk box. The answer when squawk box continues. As horrible. Pays you cash when youre sick or hurt . [ japanese accent ] aflac. Love it. [ under his breath ] hate it. Helps you focus on getting back to normal . [ as a Southern Belle ] aflac. [ as a cowboy ] aflac. [ sassily ] aflac. Uh huh. [ under his breath ] i am so fired. Youre on in 5, duck. [ male announcer ] when youre sick or hurt, aflac pays you cash. Find out more at aflac. Com. [ male announcer ] when youre sick or hurt, aflac pays you cash. Nascar is ab. Out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. Now the answer to todays aflac trivia question. How many lobsters are born with the defect that turns them blue . 1 in every 2 million lobsters. Welcome back. Apple is granted a license so phones can run on the largest of chinas net works. Yedss unveiling event failed to wow. Good morning. Good morning guys. As you said, this event definitely did not wow investors. The chinese journalist next to me was asleep part of the product line. What was exciting is what happened outside the event. As you mentioned, the chinese regular lay tors able to confirm actually said they granted licenses for apple to be able to sell itself 5c and 5s on china mobile net work. This is important. China mobile is the largist carrier here in largest carrier here in china. Many believed and hoped apple would come with a deal with china mobile. It would expand footprints here in the country. No deal though. China mobile basically said that they are still negotiating with app ale. As of right now, that deal isnt happening. There are indications that a deal is in the offering. Thank you for that report. Coming up, were going to get Market Reaction to the president s address. And were going to get the reaction. Aaron, Lessons Learned fyffe years after the financial crisis and who he thinks should run the feds. Squawk box will return. Lecocacola is partneringg. With nashville parent and charlotte parent magazines, along with the mayors of those cities, in the fit family challenge. A Community Wide program that offers free classes that inspire families to get out, enjoy moving together, and even track their activity online. Its part of our goal to inspire more than three Million People to rediscover the joy of being active this summer. See the difference all of us can make. Together. Welcome back to squawk box. Now trying to get the lawsuit against him dismissed, the alleged to properly overseek the brokerage firm. Now documents fail to show he didnt provide proper supervision. It doesnt say i dont supervise properly. Exactly. 13. 5 average 30 year rate to match the 2013 high. The Mortgage Bank Association Says financial fell lo lowest in more than four years. The man that cowrote the hit song ymca has regained control of the songs copy right. Victor hold on. Get the camera. Victor willis who dressed up in performing the 1978 act allowing strong writers to gain control even if they signed away their right. The current version of the song they fully anticipated my move. You need botox im going to call john kerry. You better call the suppliers. Theyre out after what hes gotten. I think it works for diplomat. Anything someone says to you, totally no reaction. Probably works for news anchors. He doesnt look like the droopy dog. He cant move anything up here whatsoever. He cant do that. He looks like a mannequimann. He does. Nears over the strike on syr syria recede. President barack obama spoke about it last night. This is not a world we should accept. This is whats at stake. After careful deliberation, i determine its in the National Security interest of the United States to respond to the assad regime use of chemical weapons to a targeted military strike. Joining us now campbell, executive director at mkm partners. When you look at this, they like the idea that the attack is no longer imminent. This is put on the back burner. The market has picked up steam over the last five to six sessions as they watch this become more imminent. What happens next . Good morning becky. Thanks for having me. The longer discussions go possible. Russia takes the lead in the vacuum created by the u. S. s conscious decision to lead from behind and seize control of international discussions. The United States says well engage in discussions and consider them seriously. Thats foolish for risk assets. Like a lot of decisions like corporate decisions involve tradeoffs. Its foolish in short term. In long term it poses new dangers. The credibility of the United States will be perceived by foreign leaders to move down one or more notches. This is important because with whats at stake here is not just syria in regard to financial markets. Others such as iran as or credibility moves down, that raises the problems for the country. Why is the u. S. . We havent had new administration in three years . We will in three years. Markets wont look out so median term. Obamas credibility . We risk issues in the median term if we had gone ahead with the strike. You dont know the retribution or fallout correct . Thats correct. The the president and his secretary of state do not want to begin new military initiatives nor do they wish to be associated with winding the military initiative. This is why the president sought the approval of Congress Even though he admitted such approval was not necessary. It reflects the president s open uncertainty about how a response to syria crossing the red line with use of chemical weapons, how he should respond. Weve heard, if you think about it, much more about what the u. S. Will not do rather than what the u. S. Has done. Charles, do you think the market is more concerned about the foeshl of a threat of said tapering as opposed to potential of conflict in syria . The syria element of uncertainty is receding. The question will increase. With tapering, the markets are expecting taper light like 10 billion. While inflation and unemployment may not be at the the targets for removing zero policy mandate theyve imposed on themselves, they have the opportunity to address the markets expectations and say were confident enough in the market, the economy is moving in the right direction. We can begin the model taper. We dont have to increase in future months. It can stay 10 billion six months or later. Larry, we havent talked to you about tapering. If this happens next week, lets say taper of 10 to even 20 million, what do you think . I think it will mean higher Interest Rates. The economy is performing well on most fronts. Employment is concerning. Other than that pretty good. Its going to have to happen sometime. Weve enlarged the Balance Sheet four fold. I think we need to get on with it. The taper right is the right philosophy and i hope begins in september. Do you agree with that charles . I agree with lou we short term markets are disappointing. If we get new cycle lows as weve seen recently i think the move down would quickly be reversed. Charles, thank you very much. We appreciate your time. Before we go to break i want to address this. We heard charles say about the president not wanting to go to congress. I almost commend him on not knowing no one has the right answer for all these things. People expect he can do it. Hes got the executive power. What would the country have done if he had gone ahead last week when he got 70 against the strike. Should he have done that just to prove hes president . I commend him. In fact theres a 70 opposition, i dont think he can do it. He can in terms of his office the president is supposed to take all things in account arent they . I think one of the questions you dont want him to go in. Bottom line. Cant we be happy he didnt . I did. You commend him on that decision . I dont give him credit for it. Its nothing to do with it. He did have something to do with it. He said lets go to congress. That was because of his we should ask why we have a strategy for the middle east . You develop a strategy every time a country no. What do we do in libya, north korea well have washingtons reaction to the president s address to the nation coming up. Who should run the fed . Larry bossity . Im a federal former reserve chairman. Allen blinder phones in with his thoughts. Squawk box will be right back. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . President barack obama addressing the nation last night saying diplomatic efforts will be given time to work before a strike in syria. Joining us now a member of the former senator relations committee. Senator, its dr. Boraso. I will call you doctor. Senator hike camp who gave the resolution last week. If not the senate would give the President Authority to respond. Weve been like everybody, all of us armchair quarterbacks trying to decide what the right path would have been. I made the case senator, the president is there to try to gauge everything. It doesnt necessarily mean youre undecided or weak. This is a matter with possible repercussions. Nobody wants it to go unanswered. I think we can sympathize with the president and decisions he has to make as commander in chief. Im not convinced he did the wrong thing at this point. Weve had the zigzagging messages. I think the president was right to hit the pause button. If the vote had been held yesterday, i think he would have been lucky to get a hundred votes in the the house and wouldnt have passed the senate. He was right to hit it but youre saying for the wrong reasons. He made a mess of that before that. It was right to do it, but you dont give him credit for it . I dont think they have a Clear Strategy for this. Weve seen different things. This would be an unbelievable small attack. Weve heard different messages. American people are confused about what the president wants to do. This is not a direct threat to the security of the United States. We should not be involved. Senator, lets assume we cant work out a deal with russians in terms of disposal in collection of chemical weapons. In your mind will there be another congressional vote . If not, do you think the president is out to strike any way . I think what we have to do is right now take a pause. Take a look, watch to see how this plays out. I think what the president is trying hard to do is figure out a way this country can speak with one voice. Yes, weve gone through the messy democratic process talking about how were going to get that done. I think were on a path now to see this diplomatic effort. See if that plays out, if thats absolutely real. We need that verified not just talk. Were going to have to look at that. Bottom line, this was a heinous crime what the regime did, used chemical weapons against all international standards. That needs some response. I think its right for the president to ask the congress to participate in the response. Were going to work through that this week and continue to have discussions. Senator, we were talking earlier about how long it takes to put together the resolution that russia, syria and we all agree on. How do you ever start doing the process with the civil war going on . How do we know its going to work . If i was assad, i would figure it gives me at least a year before i have to do anything. When you look at this process, i dont think anyone thinks given what happened last week in media hearings, more proposals coming forth this week do you think well know within a year that in good faith that hes going to allow us to identify, find, sequester and destroy well know in a year if hes going to destroy all chemical weapons . Well know in much less than a year if this is a real proposal. If it cant be in that short amount of time, we need to go back and refigure discussions. We cant verify russians are destroying their own chemical weapons let alone the syrian weapons put under their control or involved in the destruction. To destroy the amount of chemical weapons that they have, youre talking over a thousand tons. It would take two decades. One of the problems in this town, Everyone Wants to preguess whats actually going to happen tomorrow. No one last week thought there was a diplomatic option. Here we are talk about whether thats real or not real. Lets not let the 24 hour news cycle determine how we look at this. Lets let this play out and do the right thing for this country, the humanitarian principles we have agreed to. 98 of the world agreed to this principle. Lets give this time. Give the president the opportunity to do the right thing by pursuing a diplomat aic solution. If thats not real p were going to have to come back and talk. Its not a year process. I think we said two years ago there should be regime change. We know this guy did it. Now he complies with stuff we want to do, and we say fine you can stay as the leader of this country. If the use of chemical weapons was the most important thing for tous do is destroy the chemical weapons. The rest of the approach to syria is something well continue to be debated within the Foreign Relations committee. It will continue to be pursued by diplomat aic and military officials of this country. Rebels, you dont know what to think of them. If you were a well meeaning rebel, this would look like you were abandoned. It give has assad as much time he needs to prevail. The military efforts he e described werent aimed at regime change. Six major subgroups and maybe 40 on the ground now in syria. That would have been tough any way. All right, senator. This is one of the situations where no one has the monopoly on a good idea on what we should do. We appreciate both your viewpoints. Thank you. Thank you. Up next, former Federal Reserve vice chairman will join us. Take a look at figures this morning. After six days of gain for s andp and nasdaq, now down. S p off by 2 points. Well be right back on squawk box. Welcome back. More than 200 economic signed a letter to the president to call to take up the reigns of the feds. Plenty of big names among that list. One of them joins us to talk on the squawk news line. Economic professor at clemson university, former fed vice chairman. Good morning to you professor. Good morning. Im sorry i couldnt be there today. I have to teach today. Were glad to have you. Why do you think the white house is not . Thats a good question. I know what i read in the media and read things like the president is familiar with lou we summers and doesnt know janet. Summers is very brilliant which is he is. So is janet yellen by the way. Hes the soort of person you want managing the crisis. This is what i read in the newspapers. You take the opposite side of that coin and suggest that yellen is the better choice. Why . I do. Start with experience. You look at what seems to be planted as a mole. Thats not the case. Thats the career path shes followed. Then it goes to judgment. As you probably know she was one of the early people on the fed virtually screaming at the board in washington when she was running the San Francisco bank to do something about the meth developing in housing. Then later she was one of the early member of the federal open Market Committee to see this was not just financial catastrophe. It was going damage the skmi and wanted to do something about it, a lot about it by the way. Then you have the about to disagree without being disagreeable which is so important on the consensus Bound Committee as opposed to whom . Anyone in mind . Did you just say the opposite of larry . I mean yeah as you said at the opening of the piece, as far as anyone knows, certainly as far as i negotiation there are two candidates in this. I think thats fantastic. It. Professor, we hear don cone is another name. Yeah, sorry. Let me ask you this. I dont understand, but for some reason it appears the president has decided he wants summers. I dont know if its an antiyellen decision. If you were left with summer s s and cone, who would you take . I would favor cone. You start this by looking at letter that was not antisummers at all but proyellen. I wrote a piece in the wall street journal that didnt mention yellen. Do you have anxiety about how political this has gotten . Theres never been a situation like this in history. Maybe you know differently of local campaigns of who should be the chairman. I dont know of any president in history. Its very unfortunate. Its led to a situation where people like myself and two or three hundred other economists that you mentioned, that list keeps growing by the way every minute. They felt compelled to come out and take sides because its like a campaign. Its most unfortunate its come to this. It seems to me one of the arguments building up against summers, theres a reputation of him being volatile, arbitrary and not inclusive. If that is in fact reality, those are good reasons to think hes probably not going to be the choice. I dont know if hell be the choice or not. I think you talk to a lot of market people. People in financial markets, people involved in Trading Assets and managing money and so on are mostly looking for a continuation of the policy. That doesnt mean exactly thats what yellen represents. You dont see them in shades of gray. All these people have relatively similar policy. I dont think theres shades of gray. One of the reasons i think we havent mentioned this yet. P on Bank Regulatory policy, financial regulatory more broadly, there are substantial differences. Allen, theyre playing us out. We appreciate you calling. Get out and read. Thank you. When we come back, senate Foreign Relations Committee Bob corker. The moment of silence held at 8 46 today the 12 Year Anniversary of the terrorist attack that shocked american. 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Im john kaplan and im a member of a synchronized world. This is what membership is. This is what membership does. Nascar is ab. Out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. Well talk to senator bob corker about the president s speech. And the two new iphones updated with the faster processor and if anything her print scanner. The cheaper version in favor of plastics. Were going to talk to walter isaac, best selling author of the biography steve jobs. That starts right now. Welcome back to squawk box on cnbc. Our guest host this morning larry, former chairman and ceo of honey well. Our stage manager is mack. Well have more from larry in just a second. He was here a second ago. Right now check on the markets. Futures down 11 points. Nice day yesterday. Well see whether anything positive today after the nice move well above 1500 on the dow. They forgot about tapering for a while. Now syria looks like its not going to be imminent. Market will trade back on tapering. Looking at 10 billion, 10 to 15 taper light right . You do 5 billion . It doesnt matter for heavens sake 5 or 10. You would do five. I would do 15 and get going. We have a long way to go before this is out of the way. It may take a year to get to zero from adding in. Not to mention taking it off the Balance Sheet. It wont matter. Were going to get to headlines. Our guest host for the morning. Apple unveiled the latest iphone model. The 5s features the faster processor and fingerprint verification. The cheaper form 5c, pricing starts at 99 with a two year contract. Apple has been granted a license for the new iphones to run on the china mobile net work. No deal has been announced. Many expected one at an event today in beijing. Of course the best selling author the biography steve jobs. There are a lot of things, states that work with fingerprints. Is this going to work . How many fingers can you put in . It takes lots of fingers, goes very fast. You wouldnt need a pass word anymore. It definitely works. Ive been looking at reviews. People said its amazing. We do have them already. Its not like theres not that technology. This is a much more use of it. At the gym you can put your finger down. You can wait three minutes. This is supposed to be a security device as well. Is it going to serve that purpose . The big question is if they let other developers have access to the fingerprint. You can open your phone and go to itunes. You cant make a purchase on amazon or other things. One day your phone will be the keys to your car. Youll put your finger on your phone, walk in your car. Where is this . Its not on the screen. Its on the bottom. You dont like the fing fingerprints any way. They are gross. Every time i wipe it down, i see the screen. Youre wiping constantly. I know you. President barack obama make his case for mill stair strikes in syria. I will not put american boots on the ground in syria. I will not pursue an open ended action like iraq or afghanistan. I will not pursue a Prolonged Air Campaign Like libya. This is degrades capabilities. I have therefore asked the leaders of congress to postpone the voice to use the military force as we go on this paths. Bob corker is the Ranking Member of the committee. Thank you very much for being here today. I know you supported the idea of strikes when they came up. Do you support the idea of holding off for now . I dont think theres any choice, becky. The president gave a good speech last night. Hes a good speech maker. I could not have been more disappointed in the content. Sunday night and yesterday at lunch i thought he was going to make the case of interNational Interests. Whether you like the president or not, support him or not, when your command her in chief draws a bright red line and the country passes that, its about our credibility as a nation. I authored with me then dez this authorization of military force. It has more to do with iron and actions down the road with our credit nlt and whether we can be counted on. I thought the president would talk about that red line. Chemical weapons interest me, but what interests me regarding us is our credibility around the world. He did not make that case. He alluded to me he was. He did not. He did not really make the case regarding the region in iron. When you add that to the fact that months ago he stated we were going to arm the opposite ive been in the region three times this year, just there three weeks ago. We still have not carried through on this, quote, covert activity on the ground there. I think the president has done more in a short period of time to damage american credibility around the world than any modern president. The Silver Lining is this and hopefully nothing happens over the next three years. The president makes everything about himself, about his image. I do hope that the world understands this is about the president. Its not about our country. I am very concerned about the argument that hes putting forth, the lack of connecting to what is interNational Interests. I still believe as a person who cares about our nation, that i should support this authorization but not on the grounds he laid out last night. To me, its about our nations credibility. We hurt ourselves down the road and make our nation and other nations less safe. Senator, if you laid out a red line and the situation has gotten cloudy, more complex and hard to pick the good guys becky, i know thats the narrative. Thats not exactly the way things are on the ground. Theres no question its muddled. I think the president is doing everything he can to slip the noose in one of the big hat no cattle issues. Again, i stand firm with where i am. I dont think he made the case in the way it should be made. Im very disappointed and will let them know that this morning. As the Ranking Member of the former relations e km, you know more than any of us about whats happening on the ground. We hear whats happening on the ground is that the infiltration by al qaeda and other extremist groups 40 to 60 on the ground. We hear about a stoun cleared out because it was attacked by the rebels. What is incorrect . The 40 to 50 number is way incorrect. It is happening. The moderate opposition that is going to be and led by a guy named ed i spent time weeks ago, theyre not as organized as the foreign fighters that have come in from places like iraq and other places. These are black beard fighters. They make much more of a difference. When everybody collectively is trying to get assad down. The large bulk are you, me and others in the neighborhoods. The regime came in to crush them. Theyve taken up arms, not trained well. Thats the other piece of this the president has not followed through on. That is really training and equipping the opposition. We know who these guys are. Ill give you credit. This is a complex situation. And im not defending the regime and what its done. Its horrible crimes against humanity. The question is who steps in to take place. Egypt was such a mess. We didnt get involved in egypt. Even if you dont support that piece, which i do. Our president , the commanderinchief accomplished a red line. Hes backing away from that. I thought what he did in sweden last week, i immediately fired off in email to the chief of staff who was defensive. Now hes trying to shift this to be the worlds red line. Last night he never brought that up. We could still respond with a Surgical Limited strike to degrade his capacity to be able to do these things. We talked extensively about how that can happen in classified settings. That could still happen whether the second part is something you support or not. Again, its to me about our nations credibility. I think unfortunately as closely as weve worked ive spent more time with the president this the last two weeks than ever. Constant, constant, constant. I have supported his request on authorization. I couldnt be more disappointed in the case he made last night. Its evident hes trying to walk away from where hes been and looking for every outlet he can. I hope hes lucky and our nation is lucky. I hope that some how something coming out of this russian discussion. I think its important for us to take a pause for a moment. Id much rather see this fall diplomatically. All the efforts i talked about before relative to the nhrnrsolution. Assad thinks hes crushing opposition, its difficult for us to get to that place. Senator, with you now in the situation, do you think theres a real chance we could bring this potential piece of cord to reality with russians . In other words, you know the difficulty locating, collecting and moving these gases. Do you think thats possible . Is this a realistic possibility . Look, larry, theyre scattered around the country. You know that. Some places are more important than others. We still are destroying the ones we have. An earlier guest was talking about the fact it would take decades to do away with the chemical weapons in the appropriate way. Whats got to happen, lets face it. These have to be blue hatted. You have to have the United Nations or somebody within the country making sure these are safe while theyre deported and done away with in other countries. All of that is very come bli date complicated. I wish the president and others god speed in coming to the solution. That would be the best outcome. As you mention and bring up as a business man, there are lots of difficulties. Im 1,000 supportive of us bringing about the issue. The fact is again, i think its in our nations interest to pursue this for a period of time. Would you be willing to say this is not working . Is this something youll know a week from now, two week, three months from now . I think becky, look, i think the russians and syrians know if they can stop our momentum here, maybe nothing ever happens. I think i dont know when well know whether this is a real offer. The president made it clear after he had the former relations passage last week with me then dez and had the 107 vote with the committee, he brought this up. I dont know whether this happened or kerry spoke about it this week and people jumped on it. I dont know the facts. The fact is there is this opening. I dont know when were going to know whether credible or not. Is it real . Is it a ploy . I wish them god speed. I hope its real. It is crazy. If you were from a different civilization and looked at the history of the United States in the past years, look at the efforts weve made. We know for a fact theres a thousand tons theyre everywhere. Its just weird the way that morality becomes subjective about what we should do or shouldnt do. We had a bad experience in iraq, but deciding whether this guy needs to go based on what we know, huge stock piles dmd, people would understand we have no real objective morality or plan to deal with this it seems. This whole issue has been so muddled. I was just in iraq three weeks ago. It is unraveling quickly. I think this administration really just wishes that these problems would go away. I know the American People are really tired of the middle east. My wife when i get home on weekends wears me out over the middle east. I understand. I think theres a larger interest here relative to iron. I thank yall for having me back on. I miss you guys. I wish we were talking financial issues. Unfortunately this is important to our nation. Thank you very much for your time this morning. Coming up, well talk all things apple with Walter Isaacson author of the biography of steve jobs. As we head to break, check out the squawk box indicator. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. [ male announcer ] staying warm and dry has never been our priority. Our priority is, was and always will be serving you, the American People. So we improved Priority Mail flat rate to give you a more reliable way to ship. Now with tracking up to eleven scans, specified delivery dates, and free insurance up to 50 all for the same low rate. [ woman ] we are the United States postal service. [ man ] we are the United States postal service. [ male announcer ] and our priority is you. Go to usps. Com® and try it today. [ male announcer ] and our priority is you. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Welcome back to squawk box. Verizon launched the 49 billion bond make it the biggest ever corporate debt sale. The company increased the offering because demand was so strong. 49 billion. You can put them all together. Regional banks arent going to do that. Demand was so strong they increased it. Obviously going to replace the bridge loan used to finance acquisition voted stake in verizon wireless. Hopefully after he gets his way, youll still be able to do bridge loans. Im not convinced youll be able to. I want you to think about that before you say these things. Have you read my columns . Thats the problem. I come out on the other side. Where is it, the journal . In a newspaper. They used to call it gray lady. Huffington post. The release of the new iphone model. To join us now the author of steve jobs, Walter Isaacson. We have a picture of the new paper back with a picture of mr. Jobs in i believe 1984 in the same pose by the way you had on the last cover with his thumb on his chin. Where did you find that one . This picture from the paper back was from norman see. He did that for Rolling Stone in 1984. The one seen on the hard back, the great portrait done for cover of Fortune Magazine has become so iconic. Apple is using that symbol as well. I wanted to do Something Different but have it echo the original. I loved it when we found that picture. Help pus just a little bit try to parse through what happened yesterday with apple. Are we ever going to compare cook and jobs in the same sentence . Cook is a cool, competent person. When you watched the video of product announcements, there wasnt the spark, the soul, spirit of steve jobs. He used the word incredible two or three times a sentence. He used it so often, had it been the mystery word in the drig game, you could have knocked out the entire fraternity half way through the show. Nothing was incredible. It was just sort of taking a little here, adding a little there. Every few years starting in 2001 with the ipod, steve jobs would come up with something amazing, truly incredible. You didnt know you needed a thousand songs in your pocket with a beautiful device until he told you that you did. Thats whats missing. Clearly steve jobs is missing. Do you have any sense were going to get that excitement back . This is a story thats shifted. I remember reading your book and commen comments apple made upon jobs death, is the Creative Products from apple. Were not seeing it yet. Of course we could see them. Very good people are still running apple. In the last year of steves life as i described in the book, and i have a new blog talking about it more, steve had a vision, a real dream for certain products to come along. Obviously things like watches that his original mentor was pushing. Or a camera that would take dozens of exposures in a nano second. And of course television, the about to do from television what youve done for music which means on a simple device, get anything you want when ever you want to watch it. That was another dream of steve. I think apple will produce those. Its been three years now. Walter, do you think tim was the right person to replace steve . You sound as though you have reservatio reservations. Was there another person in your mind that could have continued majesty evident . Even with steve jobs, it wasnt just one person. You had a team of people to compliment steve, work around him. Cook was a key part of that as was danny ied, johnny. What steve done was awesome. He needed tim cook by his side to run the company. My answer is tim cook is great. He needs somebody else to be part of this spark and leadership. Is there a statement to be made apple would be in the same place if jobs were rung it today. So much competition invasion that he brought has been put in other products. Its really hard to come up with the next one, the same with a drug company. I think steve jobs was a genius. Every time he turned around he thought different, thought of something new. You saw that. We have evidence. In mid 70s things come out. Wilderness 15 years and things decline. He comes back and blows us away with new ideas. Steve had a magic. We know that. We were talking about tim cook. What they do now, like extended release lip tore or something. They take one inch off the ipad and add one inch to the iphone, take 1 hundred off the iphone. Thats not blowing us away with new products. At some point theyve got to have the amazing product person that says hey you didnt know you needed this. We have too talk syria half a second. You have a view of the historical parallel of whats happening . I think that you trust the russians. You trust the russians to act in their perceived National Interest. They always have. You have to ask yourself which i dont think we did well here is what was the National Interest . It was probably not to have chemical weapons and radicals. They joined with us. Thank you for that. Well have more on syria next. We appreciate your time this morning. Thanks. In charge of long weekends and longer retirements. Ask your financial professional how lincoln financial can help you take charge of your future. How lincoln financial can help you take charge of your future. Lecocacola is partneringg. With nashville parent and charlotte parent magazines, along with the mayors of those cities, in the fit family challenge. A Community Wide program that offers free classes that inspire families to get out, enjoy moving together, and even track their activity online. Its part of our goal to inspire more than three Million People to rediscover the joy of being active this summer. See the difference all of us can make. Together. We have regulation that precludes investment bapging opera Investment Banking that operates in a way that can be destructive. A group of economists have written a letter to president barack obama. Over 200 economic professors have signed on. Among them princetons blinder. Columbia joe. Heres what blinder said on squawk box in the last hour. She was one of the early people on the fed virtually screaming at the board in washington when running the San Francisco bank to do something about mess developing in housing. You have the about to agree to be disagreeable which is so important. This expire at the end of january. President barack obama making the case on military strikes in syria but asking for a delay from congress. The president laid out the case last night. Its a case that might seem familiar to many viewers. The president made it before. Cabinet members have made it before. The president sought to put this in historical context. Franklin roosevelt once said our National Determination to keep free of foreign skbars entanglements cannot prevent us from feeling deep concern with ideas and principles that we have cherished areal which aed. The president said u. S. Principles and ideas are challenged in syria. He said the National Security of the United States is at stake in syria. Nonetheless it comes at a moment when it appears there might be diplomatic solution to happen. He wants congress to postpone the vote on the use of military force in syria and wait to see what happens with the russian initiative. Theyre proposing to allow the syrians to turn over chemical weapons. If that happens, there could be a diplomatic way out for the president. He was making the case last night for military strikes. Little bit of this and that in the address is not clear. Thank you very much. You bet. Coming up, fitzgerald hosting the annual you charity day today on the anniversary of the attacks on september 11th. Celebrities make contributions. Well talk to the chairman and ceo when we return. Can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. Welcome back to squawk box. Lets look at stocks in the news. General motors trading lower. The canadian government represents nearly a quarter of holding in the auto maker, separate of the u. S. Treasury issued a report saying it sold 811 million shares during august. Ubs updated bank shares to buy from plu which you will saying its positive on Morgan Stanley transition. Apple shares under pressure. Credits to bank of america, merrill lunch and ubs downgrading the stock of apple new Version Unveiled yesterday. Apple did not announce the deal with china mobile as expected. That put pressure on the stocks this morning. Counter fitzgerald is hosting the annual charity day to honor those lost during the attacks on september 11th at the world trade center. Celebrities come and make trades. Proceeds go to 30 charities. Joining us now, lp chairman and ceo. Thanks for joining us again. How many of these have you done . Is it me or is time going so quickly . It seems like yesterday. Its been 12 years. Thats exactly right. You feel like sometimes september 11th is so long ago, but then times like this morning i came back to that morning. In a lot of ways it feels like just yesterday. Luckily your firm was able to flourish. For the simple fact of doing this charity day, give details of what you guys do. We had 960 new york employees. We lost 658 on september 11th. We had 302 left. We had secretaries without bosses, Corporate Bond divisions. One division had 86 people and only four survived. Now we have 3200 in new york. These guys in here behind me have waived their days pay. Movie stars, musicians, all come in. Last year we did 12 million of business and gave that to 30 to 40 charities in the u. S. And around the world. You have raise sod much money youre able to broaden the amount of people to benefit from your efforts. Its like a quarter of a billion isnt it . Its huge. Last year you remember Hurricane Sandy ripped through you the new york area. We adopted 19 elementary schools. My wife got together her friends and my sister who runs a charity went out and adopted 19 elementary schools. We gave each family from the school a thousand. It was about 10 thousand. Were going to do the same thing in moore, oklahoma. We know unfortunately what pain is. We want to go out and reach out to people who are suffering in a way we understand and show them love. New york will show a lot of love to oak oechlkt well give money to parents and let them take care of their kids. Howard lowery how do you think the culture of the firm has changed and if so, why . People who joined the firm after 9 11 knew the firm was broken. Its a tough place to work, tough place because of the people that thought there must be a negative cloud. Wonderful people got killed so long ago at the trade center. We also knew we were going to do good. We had a heart that was pure. We were going to take care of families who had those loved ones lost. We have people with hearts of gold that joined the company. The key to the company, we hire people we like. We have the famous no jerks rule. We hire people we like. We hire best friends, anybody that thinks they can do the job and have a connection to us. Thats who we brought to the if i were. We lost 30 sets of brothers who got killed on 9 11. Weve hired great people. Thats what people are willing to do is give a days pay to help others. Its an Extraordinary Group of men and women. Do you know people that save up for today . Well, a little bit. I would think a little bit. Might as well do it today. I wish there was a way i wish there was more retail where people watching now even if they dont have a relationship with canada that could do a trade. We do business with all brokers on wall street. Bcg partners is our Public Company in the wholesale stock and bond manager. If you have money with a stockbroker, there are great accounts with bcg partners. They all come help us today. Our compliants are spectacular. Thats why were alive. Make no mistake about it. Thats how the company got to stay standing. Youre a good guy. You took slack through the tough times. I heard one voice in the back. Its horrible to try and do an auction at a Charity Event where you can sort of hear crickets. You stepped up to the plate for me. I can vouch on a personal level for howard. We appreciate it. Go ahead. Look, having the pleasure of being alive. You dont really understand what that means. All my friends for the fact that my son who is 17, i get to stand here. Because of that luck im here. Im really appreciative of you guys taking the time spending it with us. Were trying to make it good on a very tough day. Were trying to make a tough day something beautiful. Thanks how this is made possibility. Thanks howard. The former chairman and ceo of honey well. Plus get ready for the trading day ahead. Stick around. Squawk box will be right back. If you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do face time and think time make a difference. Join us. [ male announcer ] at edward jones, its how we make sense of investing. [ bell ringing during moment of silence ] welcome back to squawk box this morning. See how you know, it kind of takes your breath away. We thought thered be better pricing. There wasnt better pricing. Theres not a lot of innovation. I believe there had to be some things we didnt expect. We got some things we didnt expect and that was bad pricing. I understand the downgrades. At this point are you selling the stock . No. Theres got to be some catalysts. We did go from 430 to, say, 500 on the strength of carl icahn tweeting there was going to be a letdown. If you want to blunt samsung, you have to offer something thats better and cheaper and they offered something that was more expensive and not better. But this stock cant move on carl icahn. It has to move on a product. How long does the honeymoon last . Does hope spring eternal . When do people say theres something wrong here . It becomes ultimately if they dont develop something, its like microsoft. They talk a dividend, breaking the company down. Maybe apple yawns at 450, maybe at 500 but its a yawner. Gm, you have views on this . Been waiting for that to happen. I think once the government is out, youre going to see big dividends. There shouldnt be a cloud or an overhang here . No. I think people snap this up. In the interim ford has moved up to 16 to 17 1 2. It very well run, much better run than it used to be. Go ahead. No, jims weighed in on syria before. Just real quickly, neither one of us we both said its above our pay grade, right . What does it matter that i thought the president did a good job. Im sympathetic and im actually saying, look, if you were him and you had i mean, this is such a huge decisions and the repercussions could be so great, wouldnt you not know what you were thinking until you watched everything happen and if youre ambivalent, youre ambivalent for a reason, right . The idea that we know everything were doing because were america, it isnt like that anymore. It is the the moral imperative i think was traced out really well. But should we do it . Whats russia going to do . It has become something that is just were all so gun shy, joe. Were just gun shy. There could be civilian casualties with a strike. I dont know. Its just hard to figure out. Every day you pick up and say the rebels arent that there are different kinds of rebels. This is not the red coats and blue coats here. Very tough. I have one final thing. Verizon. Does this offering mean anything to the company itself or the market . The market is quite bad, the refis are kwai bad. Theres still so much bond money, much more bond money than we think and the money still hasnt come into stocks, even though every day we get new highs. What if they say were sticking with stocks . Theres still a lot of bond money. Jim, well see you in just a couple minutes. When we come back, well give larry the last word. Tomorrow back from the brink, bob benmosche. Well ask him about the Lessons Learned in the fall of lehman and the future of the financial industry. Has never been our priority. Our priority is, was and always will be serving you, the American People. So we improved Priority Mail flat rate to give you a more reliable way to ship. Now with tracking up to eleven scans, specified delivery dates, and free insurance up to 50 all for the same low rate. [ woman ] we are the United States postal service. [ man ] we are the United States postal service. [ male announcer ] and our priority is you. Go to usps. Com® and try it today. Tens of thousands of dollars in hidden fees on their 401 k s . go to etrade and roll over your old 401 k s to a new etrade retirement account. None of them charge annual fees and all of them offer low cost investments. Etrade. Less for us. More for you. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to share . A data plan. At t mobile share for business. One bucket of data for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. At t mobile share for business. Nascar is ab. Out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. Welcome back to squawk box. Lets get back to our guest host for the last word. I love this from washington. But obamas syria speech an illogical argument from a parallel president. I dont know if im in the wrong. I dont know who i am today. I dont think this is the time i feel like criticizing because im not sure what the right move is here. Youre ready to say he made the right move but for all the wrong reasons. No, im not saying he should be criticized. For policy going forward, i dont see the benefit of lobbing a couple missiles. Would you arm the rebels . I wouldnt because i dont know who the rebels are. This is a situation unparalleled in history where we didnt know what tied to side to be on. We didnt in egypt either. You think the longterm reputation is gone . I dont buy that either. I understand the president s ambivalence but i hope we stay out thereoof there. You think putin is sitting there snickering absolutely. He comes out of this i dont think this deal with be done. I dont think the deal with putin can be done so this is going to be only the second of a number of acts and well have to see how it plays out. No facesaving way to do this . I dont like to say no fac facesaving way to do it but i think its a long punt. A long punt. Theres a lot of obstacles to overcome. If you were on the board of apple, what would you do . I would be supportive of cook. I think hes done a decent job. I think its too early to make a final call but he needs more time and hes done some good things and so my position is lets wait and see what develops over the next year or two. Were you hoping honeywell was going back in the dye yesterday . I would like to have seen it go back it, deserves to be there. Do you want ten seconds on yellin . If i had a preference, id pick yellin. Youve had some personal experience there. Never mind, i just think hes the better choice. All right. Thank you. Well see you tomorrow. Squawk on the street begins right now. Good morning on this 12th anniversary of the september 11th attacks, as we pause to remember those lives that were lost, this is squawk on the street. Im Carl Quintanilla with david faber. Were going to keep our eyes on futures as well. S p is on