Transcripts For CNBC Squawk Box 20131106

Ipo market and tonight is expected to be the cornerstone. Twitter is expected to price its ipo in the range of 23 to 25 a share. The company plan toes sell 70 million shares. This offering represents about 13 of the company and it values it at as much as 13. 6 billion. Were going to talk more about expectations with the money manager in just a few minutes. But andrew, ill send it over to you. Thank you, becky. We have a little couple of notable after the bell movers this morning. Tesla posting betterthanexpected earnings, but the electric carmaker sales and profit forecasts disappointing investors and shares falling on that news. Abercrombie fitch are lowering their profit forecasts below consensus. Also, earnings at 21st century fox, they missed the mark. They missed wall streets mark, that is. And the tv and film companys results were hurt by investments in new cable channels, also weaker performance from its movie releases. Open tables and earnings revenue topped analyst expect ages. The company allows diapers to reserve restaurants online. It says its going to be strengthening its mobile platform. And papa johns earnings, they were in line with consensus. And finally, lets ed ad one more to the list. Live nation entertainment, their earnings falling short, but revenues beating the street. Joe, over to you, sir. Andrew, i dont 21st century fox. I think thats a mistake. You know you know, i thought it was, but how can its 20th. Is it a Different Company . Its outdated. Is it a Different Company . No. This is the staple at 20th century fox . What is this, y2k . Remember conan obrien, in the year 2000 i know you dont like change. 21st century is a Clothing Store in new york, isnt it . Century 21. Its a cheap Clothing Store. But i like it. Thats where i go. Just because the date rupert . Yeah, i believe it was. I think they took a poll of the staff, either Senior Management or the whole place. And they said change it to yep. 20th century was so backwards. So im going to have to go through this again . In a hundred years . Yeah. If youre still living im on the grid and im a cyborg. And becky changed her twitter name. Yes. joekernanshair is available. How do we know Anthony Weiner really didnt get you dont know whether thats his thing. You got caught. He eventually admitted it. But what if someone takes over that was his excuse at first. You what if someone takes over joe squawk . It got hacked and then oh, my god. And this guy was like an ax murderer. Who shut it down . I dont know. Twitter shut it down . I dont know. But its available. It would say all kinds of things about you and now im going to become that and youre not going to go who it is. You know, today i was looking at im gullable. Im like the girl or the guy who uses whiteout when he can on a computer i was watching notice how i said girl or guy quickly. I was looking at today on a twitter thing there was a little bug. Have you seen that . I havent seen it. Im going to look right now. Have you seen bugs moving around . If you go to a certain person and then i theres a bug. Its a spec moving around. It looked like theres a little flea. Where . It has to be on the person. The person does it that way. The person on their picture somehow gets a bug moving around and then you see it i saw it and then i went you were trying to swish it . No. You but i went to see if i tried to pull this thing off to see if its underneath. But then i realized its a person thats always moving around there. Did you know you could do that . No, i did not. Im going to do that. joekernenshair is a bug. On the next commercial. Your jacket is on. I know. Youre looking really sharp. No belt, know. This is a suit. It doesnt take a belt. I know that. But you buy the suits that dont take belts because you dont want to remember your belt. Correct. When you travel, you dont want to for me, im cantly wearing a belt. These have the tabs on the side. Yeah. I dont think those work well. Lets check on the markets. Yesterday, we had triple digits losses for a while and then it goes to flat. Were looking good today. Up 70 Points Partnership started thinking about something. You guys remember how long ago when it used to yell at everyone about did you say because they all said there has to be a correction . Yeah. And theyve missed how many points now . Yeah. But now no one is saying that any more. Everyone is saying, dont fight the fed. I dont know what it means. I wouldnt fight the fed, either. But even if you theres that story that says that i was saying where is the correction . Maybe it means well, he said it for a totally different reason. Hes not one of our normal guys. Hes not a market guy that comes in. We asked him the question of what he was going to do with his stock. The indication was at the beginning of the year im talking about a guy who works at the firm and his duty is to say what the stock market is going to do. Hes an investor like us. He happens to have done pretty well. No, he had. Im saying you wouldnt use him necessarily, the contrarian thing. He might be right and nobody else is looking for a correction right now. Lets look at oil. Oil is going to help the christmas season. Maybe we should go long retailers. Oil is down to 94. Lets look at the tenyear. Going back to about 265. Thats been creeping higher. We understand that. The fed is still buying. The dollar, we need it down below 1. 30. Thats what were looking for is below 1. 35 finally going has been down in the low 1300s today. 1320 at this point. Time for the Global Markets report. Ross westgate standing by in london this morning. Do you have twit ner london, ross . Has that made its way over there yet . Whats your twitter handle . Yeah. 75 of the users, right, are from overseas outside of america, joe. Theyve got to make money out of that somehow. Who are you . Whats your people that arent in america. Whats your name . Whats your twitter handle . Oh, rosswestgate. Oh, thats it. Youre one of these people that dont you see, i social myself with squawk and im proud of it. I dont need when you just get your name, is it because you could go somewhere else and be beckyquick. Somebody else took it and it was a guy. How did you get it back . I had mary catherine, she called twitter and it was a guy who was squatting on it. And i dont own beckyquick. Com because somebody else bought it. Thats an ugly visual that he was squatting on your yeah. And so they told me initially, they gave me it wasnt somebody who was named becky quick. They said you can do squawk joe, joe squawk or something. So its interesting that twitter will give it back to you. I think its only if somebody who doesnt you couldnt take it from another becky quick. Theyre nobodies. No. I wouldnt try and take it from another becky quick. But it was a guy who was sitting there there. And the guy who owns beckyquick. Com was a fan and no. Some people say at the real who are you, just andrew . Im andrewrsorkin. But for years, i was in a battle with a zaeter on a deal. Com. We ultimately settled with them. I think we we did pay some money just because it had gone back and forth forever. Anyway so, you do have twitter over there . Anyway, i wasnt really listening. So the twitter ipo tonight, its going to price tonight. So just keep that in mind. Yeah, no. I know. We know about that, joe. Its amazing, isnt it . There are no other becky quicks, are there . Oh, there are a bunch of them. Not that matter. No, i actually look i followed some of them. Theres one in ohio and some other places. Really . Yeah. Another rebecca quick. Thats amazing. I couldnt believe that. Were following it. Its big news over here, joe and becky, as well. And equities, you can see a bit more green behind me than red at the moment. Advancers current i outpacing decliners by around 7 to 2 and were near the best levels of the day. We just got a bit of a boost, actually, as well for german industrial orders. Better than expected up 3. 3 the on the month. More buying of big ticket items. They were expected to only rise 0. 5 . So thats up a little bit, as well. Thats helped the euro, up to a better level of the day. Take a look at the individual prices on the indices. The ftse 1 is 00 is fairly flat this morning. It was only down 16 yesterday. We had more good data out of the uk today. Industrial production and manufacturing coming in better than expected. Again, stronger data is now big market expectation that the bank of england will revise its Forward Guidance and bring it forward a little bit for when they think rates will go up and when well hit the employment start of 7 rate. The xetra dax up 0. 5 . Cac 40 up 0. 9 . Boosted by numbers from the likes of alstom and lafarge. Big earnings today, ill pick on three for us to focus on. First of all, lets kick off and see what weve got. Adecco, up 5. 75 . The worlds temporary Staffing Firm today, bullish, easily beat forecasts. Breezed through them. They say they expect increasing demand for flexible labor in europe as the region emerges from recession. Pirelli, tiremaker up 4. 5 today. This is on their latest industrial plan. And theyre exercising a focus on Premium Products and emerging markets, as well. They were another company that came out today and talked about the headwinds caused by the strong euro and still a patchy european market. And ing, the insurer, up 4. 8 today. It beat forecasts and its on track to complete its restructuring by the end of 2016. That is what were tweeting about, as well. Thats some of the news out of here in europe. Back to you guys. Thank you, rosswestgate. We will see you soon. In the meantime, were going to talk more about twitter. Twitters ip on is set to debut today. Joining us with what to expect is jeff seco from seco wells management. Youve been following this for a while. Is this going to be different than what we saw with facebook . I was one of the feeb that came out with facebook before the ipo and said it was going to be an unmitigated disaster. This has been very different. Coming off the wet blanket that they had, talking about how theyre going to make money and breaking news in media, not talking about the other channels of revenue that they tend to explore. So this was a deliberate intentional strategy to lower expectations. So i think there is going to be somewhat of a lower expectation, but thats beginning to thats beginning to unwind rather quickly. You think people are competed about it. But i think theres theres clear differences with facebook. Like what . Well, i think one of the reasons, coming off the coming off the road show, i think one of the reasons its different is because well, first of all, there was no movie made about the founders, so there wasnt that overwhelming hype that we had then. And then there was also the recollection of the opening day of facebook. But what i see is that this will be very different because facebook at this point has a valuation of over on 100 billion. And looking at the valuations coming in right now, if we come out at around this range, its a moderately priced ipo compared to where facebook is now and where linkedin is now. So theres more enthusiasm. The one question and concern i would have about this im a twitter fan, but twitter hasnt made a profit and warned in its prospectus that it may never make a profit. So its not at the same stage facebook was at this point. Does that give anybody cause for pause at this point . The worst thing for anybody to do is come up with a curse of high specations. High expectations are one thing. But ever earning a profit . Twitter has taken this to ta whole new level and saying they may never earn a profit. But the excitement is over the dream. Its the dream that twitter will one day be among the titans, like amazon, like apple, google. Everybody wants to be at the party. In this case, thats where twitter benefits. Is this just a case of good timing, then, when we happen to be at an ipo market that is going to be the best ipo market weve seen . Yeah. And i think if twitter would have hand picked a day in history, this is the day. I mean, valuations dont matter much. Fundamentals are pretty much out the window. We have a momentum driven market. That is for not investing in it. Well, yeah. Its an argument for where particularly at the market top, so but youre suggesting to invest in it. Well, because i think at this oint, if you look at the valuation i think the key is the valuation of facebook and to some extent the valuation of linkedin. If you look at those valuations and compare the potential that twitter has, if we get even a third of those valuations, we have a successful ipo. And that is the key. Is it fair to say that things are looking a little toppier at this point . Maybe its getting late in the party for stocks overall. A little pape toppy i think is an underestimate. The fact that you have companies that are coming out and saying that our stocks are mostly being driven by netflix, that are mostly being driven by momentum. Just understand, the suggestion is to buy youre saying buy the ipo at the ipo price. Lets say this thing runs on day one. It may or may not happen. Well, if you have access to morgan stanley, whomever normal people cant. Lets say it runs tom. And lets say it runs up 10 , 20 . No, i would never chase a stock right after the open. If you get shares allocated to you, i would say keep them. But i think thats a fools game to buy right at the open. That makes no sense to me whatsoever. Because a lot of people are looking at trading this momentum either on the upside or downside. You could be the biggest client in your office, somewhere around the country if you are one of the biggest clients, you get a hundred shares. And you get it and all it does is defray some of the other commission pes. Exactly. What im saying now is the thats the way it works. The institutions get the bulk of the shares and whatever the institutions dont take, they push down to retail. And what i saw with facebook is facebook was pushing a lot of shares finally had a few, area. They were down from the retail levels. Retail, yeah, they were barveging you dont want to join a club that will have you as a member, thats true. Facebook was basking in the are at the tail investors were basking in all the shares they got. Now the institution res going to hold a lot of these shares. That puts that puts twit ner a much better position in items of its stability. Keep in mind, the institutions had to come in and support the pipe as it was falling. And at 27 or 30 tomorrow, you would not buy it . You can buy it today on the open. Thats the choice we need to give our viewers. You buy it today or not . No, i dont think so you do. I think youve taken your allocation, you take your ipo allocation, if you get them, and you dont buy at the open. The choice youre trying to make is whether to buy at the open. Yeah. And i would refrain from buying after it opened. Not good or bad, just good. Clarify that. Jeff, thank you very much. Good. Appreciate it. Now to its not even an election year. Im getting a little bit, you know, i know virginia is important, but even when i go to washington, i dont think i even go through virginia. And so i dont do i care who the governor is . I dont know. Now to politics, a number of because were going to talk about this all day. I think you do because its one of the few doctor. We are looking it is. Trying to determine what happened, what whether they were right. But police has become all front and center. Im sort of getting tired identity almost. A number of key races that decided yesterday in new jersey, Chris Christie winning reelection with more than 60 of voting, 60. 5, its been a long time since that happened. In virginia, Terry Mcauliffe, he was supposed to win by seven and he won by two been and then theres the new york mayoral race, which was an interesting one. The big am will be run by a democrat for the first time in 20 years. Bill de blasio is featured in the Huffington Post on the lead story as americas mayor. He won with more than 73 of the vote. And i dont know whether theres any hyperbole there or not. Im not really sure america would have hes your guy now. You better watch your butt, too. You have to do something to get named americas name. Not yet. Not yet. Yes has to earn it. You do have to earn it. You giuliani was americas mayor for a period, too. I would argue that mayor bloomberg was americas mayor for a period im be watching to see if youre in different neighborhoods now or maybe back to west chester. When you start talk about, you know, some of the stuff thats going happen. We shall see. We shall see. Coming up, were going to talk about microsoft narrowing its ceo short list. Were going to talk about the names that made the cut. But first, alex wall yax joining us from the weather channel. Its a little cold out there, my friend. Chilly, but warming numbers. Its earlier in the east. Well warm up more this afternoon, but more changes on the way thanks to this system right now in the middle of the country. Thats bringing some rain now to these areas across the midwest and the great lakes. This is all going to be heading east to bring in some rain to that 95 corridor. So here we are for today, moving across the western lakes, ohio valley with chicago, indianapolis, cleveland dealing with that. Then dont, we work our way through the interior northeast to serve buffalo, syracuse, and by our thursday, tomorrow, now we see that rain up and down the east coast. That includes d. C. All the way up towards boston, as well. The thinking is it will be an early day affair with the rain and things drying out by the time we get into the afternoon. But wind this same front comes the cooler air. So today, upper 60s. New york should get up to 62 degrees. But as we work our way through tomorrow, temperatures are dropping and by friday, lower 50s are in place. There in nyc, 40 back to the west. Thats your forecast for the nation. Squawk box, more of that coming up next. [ male announcer ] how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Time now for the executive edge. Microsoft has narrowed its ceo short list to about five people. Reuters is reporting that alan mulally and steven elop both made the cut. There are at least three internal candidates said to be in the running, including former skype Ceo Tony Bates who jou overseas microsofts business development. Microsoft had no comment on this for any of the internal candidates, as well. Ford went back to what theyve been saying about alan mulally that he is here through the end of 2014. So, by the way, if youre add ford, isnt this hard to have your ceo constantly in the press . Nobody, i imagine, in the management ranks knows really who is in charge. Is he a lame duck, what . They were already talking about his retirement, so maybe youre already looking at the other people who were there. He was on his way out, anyway. They knew. Maybe he would just end up leaving earlier. I dont have any comments about this other than to say i think its really gratifying that hes 68 and theyre considering him for this huge project where hed have to go for, you figure, at least five years, right . And its no longer youre out at 65 with mandatory retirement. And hes you look at him, he looks is there any reason why he should not be exactly. So you guys will you know, i know youre going to live forever, both of you. Youre never going to be in your 50s, 40s, even. But some day, it does happen if youre lucky. Because the alternatives arent good. For me, its good to see, even though ooets hes way older than i am, but its good to see. I just want to see a real visionary. Who would that be . How would you pick him . Do you get the guy that says, im a visionary . Who do you think that would be . You look at its somebody who has had tremendous success in technology. Thats wa i think you have to who, like Reed Hastings or somebody . Like Reed Hastings. Why would Reed Hastings leave what he has . You say Reed Hastings is more successful in technology than bill gates . No. But its a different category. Hes a very smart guy. And i dont even know whether you see that about balmer. Heres the thing. When you look at Marissa Mayer going back to yahoo or going to yahoo for the first time and what that did to reinvigorate the brand and the ability to attract talented engineers and excitement, thats what you want. Now youre positive on her. Yes. In terms of what she has been able to that was a brand that has been left for dead. Yeah. But you were not positive about whether she was the one to do this at yoohoo. No, no, what i said was is she a visionary . Im not sure. I dont know if shes a visionary or not. Is she doing a good job at yahoo in terms of Corporate Strategy . I think shes doing a fine job. I think the stock has run up more in large part because of the valuations of alibaba rather than thats what you said before, that the only thing theyve got going is alibaba. No, but i say what you mean. Im saying what i mean. Pretend the camera is not off. Like you do when pretend and my view is that she has reinvigorated the brand. People talk about it as if its not dead. She just breathed a huge sigh of relief that you said you liked her, i think. Im sure. Im sure. Becky, what else is going on in the world . Let me tell you about this story. Cargo announcing that it will start labelling these products that contain finally textured beef. This comes after last years public outcry over the socalled pink climb. Finally textured beef is made by separating the bits of meat stuck on fatty trimmings and they use antibiotics or something to make sure theres not nasty germs in it. It got picked up after the New York Times picked up that story about the slime and how it gets made. I think thats cool. Theres a technique to separate the fast fat from the little pieces of protein. But ive argued with you that, you know, bug parts are i know. Another argument this morning about germs and im a germ phobia. Its protein one way or the other. Its the name thats in it. At least tell us whats in it. You dont want to know it. I know. But now that i know it, i dont want to talk about it. Do you ito girt . Yes. Its all the excrement of the nastiness. You know, the rat hair stuff and the things that come in the spices, thats im not the rh factor, not in favorite of that. Great source of protein. Whelm coback, does Chris Christies win yesterday in new jersey make him a likely gop contender . Double down. Squawk box will be right back. 20 years with the company. Hool. Thousands of presentations. And one hard earned partnership. It took a lot of work to get this far. So now im supposed to take a back seat when it comes to my investments . Theres zero chance of that happening. Avo when you work with a schwab financial consultant, youll get the guidance you need with the control you want. Talk to us today. Explaining my moderate to severe so there i was again, chronic plaque psoriasis to another new stylist. It was a total embarrassment. And not the kind of attention i wanted. So i had a serious talk with my dermatologist about my treatment options. This time, she prescribed humiraadalimumab. Humira helps to clear the surface of my skin by actually working inside my body. In clinical trials, most adults with moderate to Severe Plaque Psoriasis saw 75 skin clearance. And the majority of people were clear or almost clear in just 4 months. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Make the most of every moment. Ask your dermatologist about humira, today. Clearer skin is possible. Leadership is less about talking than it is about listening, bringing people around the table, doing what needed to be done to bring people together and to achieve what we needed to achieve to move our state forward. Now, listen, i know that if we can do this in trenton, new jersey, maybe the folks in washington, d. C. Should tune in their tvs right now. See how its done. Thats new jersey governor Chris Christies speech last night. The book, double down game change 2012. Lets talk about this. Lets talk about Chris Christie for a second and lets talk about money. To the extent you think he is going to be running for president , when do you think he has to step down as governor of new jersey to go out and raise enough money from wall street, given the rules . I think he can wait a good long while, depending on what if jeb bush does. If jeb bush doesnt get in, people will be lined up. He has the free media to go out and give a speech. Hes pretty well known. The other thing is, he can have a super pac and a super pac can do a lot of the groundwork. So i dont think the money issue and pay to play is a big thing for him. Jan, in the book, you guys detailed why romney decided against him. There was a litany of reasons, in part because romney hated his team. That was part of it. And all of these what they were describing as ugly facts. Were they really ugly . And now that theyve come out in your book, does that help or hurt the situation for him down the road . Look, andrew, what we have in the book is we have the we went pretty deep into the vetting of Chris Christie and talked about what the vetters found both in the public record, things that were raised in the 2009 governors race in new jersey or things that kind of just lurking below the surface. Things that are in the public record, but not necessarily widely known nationally, like a lot of the work that christie did as a lobbyist, a bunch of stuff that was kind of why there was a cumulative weight of it rather than any one particular dispositive or disqualifying things. And then there were a series of things where the vetters were asked to provide more information. Stuff about his household help, stuff about a defamation lawsuit that had been brought against him. They felt like he wasnt forthcoming enough. They didnt have enough determination. It was is sum and substance of the whole thing that made romney pull the plug on christie. And i think the maybe thing Going Forward, although t true, they would sometimes say a lot of the stuff has come out in new jersey. Governor romney would say, well, thats different from a national scenario. Its different if hes on the ticket or hes running for president. I think the blessing here is that people think they know a lot about Chris Christie. Hes gotten a lot of attention for a governor. The truth is, theres been very Little National scrutiny to the totality of his background and whats going to happen Going Forward is hes going to get a lot more attention than hes ever gotten before. Big money in politics. Mounding obviously a Massive Campaign against the president and getting behind people like newt gingrich. And then you have this terrific story which maybe we can talk about. Joe i can tells, t. D. Ameritrade, working very hard to take the president down. And its not working. How much does the money matter or not . It matters a lot. They spent a lot of money exercising their First Amendment rights and they failed to beat barack obama. A lot of those people now are thinking about 2016 examine how to get behind someone who can win. And that money, that early money, ta sign, that show of support is hugely important in terms of selecting the nominee. And look at virginia last night, Terry Mcauliffe raised in huge bars part because he raised a lot of money. Hillary clinton and bill clinton, theyre great fundraisers, too. The real challenge for a lot of people in the Republican Party, how many of them go to Hillary Clinton . How many of them look at Hillary Clinton and bill clinton and say we may not like barack obama, but this is a real brand we can get behind. You guys know full well the billionaires around here wanted christie in that last election. And, i mean, if you throw a bunch of money at newt gingrich, i dont know whether you can say the big money didnt work. It was never going to work. Really, i dont know whether gingrich ever could have been elected. So well see. They wanted Chris Christie back then. Here is my question. Yesterday we tell on a democratic operative and a republican operative and it was amazing because they got their talking points already to go for 2016. And the democratic operative talking about Chris Christie said the number one thing is, hes from new jersey. How is that going to play in the midwest . These midwesterners dont like these east coast, they new jersey types. And the other guy said hes going to have trouble winning the conservative base. So those are the two raps against christie. But then i got some mail that said if you dont think Chris Christie looks like a lunch pail midwestern guy that you want to have a beer with dont you think hell translate well in the midwest . I think he has great political skills and great retail skills. We have plenty of people that said george bush couldnt translate. George bush came here and raised money and did just fine in politics. He looks almost more midwestern than jersey. Hes pretty jersey, but i understand your point. But navigating the Republican Party, thats the big challenge for Chris Christie. Mitt romney tied himself in knots between trying to satisfy the big people, he won them over after Chris Christie decided not to run. But Chris Christie has to navigate the big money people and bring them altogether. He was brilliant has a politician in navigating between the left and the right of the country. Thats thats the big challenge for governor christie because just that one iconic thing we write about appearing with barack obama after hurricane sandy. I hear that embrace all the time, both the billionaire donors in some categories, also the grassroots, you hear it for a lot of times, thats going to be a high hurdle for him to get over because they think thats a huge part of the last election. Guys, if the republicans often get tagged and in the book you talk about joe i can tell trying to mount this campaign against the president. Next round, do you see playing ugly, too . Both sides are prone to play ugly. In this case, we write about the ricketts the socalled ricketts plan. To be fair to joe ricketts, he never signed off on the plan that the republican consultants put forward to him. We report about in the book about how they wanted to try to tie barack obama to reverend rice. The whole thing blew up in their face when someone leaked the report. It turns out, this is one of the nuggets in the book, someone leaked that report almost directly from the meeting where it was presented to the ricketts family, leaked that report to the Obama Campaign which if you believed it to the New York Times to help kill it in the crib. So ricketts cant be tagged completely with that. He was looking for a way to try to take barack obama down. Theres no doubt the democratic billionaire res going to want to play in the next race and its going be super rough. Whats not true about his relationship with reverend rice . Whats ugly about it was factual for 20 years. I dont understand that. Well, i think many people would say it would have been a relatively ineffective. But its not like its hearsay or not factual. You think if you want to look at the proposal that they wanted to run and the ad, its the tone of the ads, not the fact that he had a relationship with reverend rice. Andrew referred to it as ugly in the idea that you would bring up reverend rice. Maybe andrew should have brought it up more. Andrew saps has a sense of frailty. He does. We have to deal with that. The book, double down, congratulations on it. Well talk to you soon. Thank you. Coming up, what do twitter and. Obama care have in common . They both mean big business and money for our next guest. Afghanistan in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation because it offers a superior level of protection and because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Shares of cognizant intelligent up 40 over the past five months. Currently trading near alltime highs. The companys ceo earnings as you reported and not all of this is from helping the states, some of the Insurance Companies set up these exchanges. Is it . Business has just been good in general. No. We had a terrific quarter. We reported the 22 year on year. Thats really good top line growth. He had gietance for the full year up over 20 . Stronger growth than last year. Well do at least 8. 84 had billion revenue this year. Growth was very, very broad based. Our Health Care Business did well, but all of our other sectors did well, too. Talk about how are you satisfying what Insurance Companies need to set up exchanges. Do they come to you for that . Yeah. Well, you know, the health Insurance Companies need to participate in the exchanges. All of us, and, of course, getting ready for the additional volume to gear up operations for the additional member that will come with that, so on and so forth. So were helping other peer clients for everybody from planning the strategy about how theyre going to get ready for health noor exchanges and getting them ready for the increase in volumes. Do you sent people out to their facilities and they write code or something . What happens . First of all, we look at how they want to participate in the exchanges, are they going to participate at the state level, will they participate at the federal level. They we do a lot of strategy planning around that. We do systems implementation work. We write code. Well modify their existing systems and connect them into the local exchanges. Does the president have your number now or does sebelius . Can you help . Can you its good when the website is working, right . That happens . Look, were talking about a tremendously complicated set of systems that need to get built here. So you want to prepare, do it right, test it and do everything thats necessary. Exactly. Who are some of your clients . Are these big names that we know . In the u. S. , becky, we do work for all of the large major Health Insurers. That group of companies. 27 out of top 30 Largest Pharmaceutical Companies in the world are clients of ours. So we play it very, very deeply in the Health Care Space overall. And when this is done, what are you going to do . We are at a very interesting time, joe, in the evolution of technology. We have these brand new technologies, what we call smack, social, mobile, analytices and cloud. These are having a profound impact on all businesses. You know smack . Ive heard of it. Im going to start using that. Please do. Weve been talking about smack for a couple of years now. And these technology res having a profound impact on businesses. If you look at what theyve done, for example, retailing with amazon or what theyve done to videos with netflix, these are tremendously Game Changing technologies. But theyre having the same type of impact in cross industries. So plenty for you here on out. And you can find the right people to hire, right . Were hiring all over the world. Were hiring very much here in the u. S. We have 75 pull time recruiters here in the u. S. Looking for talent. But its not enough. Rerecruit all over the world. Thank you. Thank you for coming in. When we come back, one of a handful of Business Leaders called to meet with president obama yet, roger altman will join us right after this. At farmers, we make you smarter about insurance. Because what you dont know, can hurt you. What if you didnt know that posting your travel plans online may attract burglars . 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Will the debut go off without a hitch . See if investors are ready to take a chance again. Analysis from twitter plaza. Exclusive on cnbc. Welcome back everybody. President barack obama met with Business Leaders at the courthouse to push immigration reform. Among attendance, roger. We know the Business Community is lined up behind the idea of immigration. Senate has a bill. House doesnt like it. What has to happen . Becky, i dont think its true the house doesnt like it. A Strong Majority of democrats, almost all in the house, are for it. The house leadership doesnt like it i should say. A lot of republicans are for it. Votes are there now. If the speaker sk scheduled a v tomorrow it would pass. This is a question of when and not if. The substance is a no brainer. Cbo and a whole series of other independent sources all come to the same conclusion. It raises growth. 5. 4 over 20 years. It cuts deficits according to cbo, reduces income inequality. Everyone in the Business Community more or less is for this. The most interesting question really is underneath this, the question of the relationship between the republicans especially in the house and the Business Community. The Business Community is not thrilled looking back on the shutdown and default crisis. They want this bill. Roger, that was going to be my point. You can have something that makes sense on every level that is logical and it doesnt necessarily mean its going to get passed. Weve seen things in the past. Corporate overhaul seemed like a slam dunk. Do you think its enough for business to put pressure on them . First i think the house will pass this. Its a question of when. Theres all kinds of political arguments as to whether its better from a 2014 point of view, elections in 2014, to pass it now early before the elections or pass it closer to the elections. Im not smart flusnuf enough to this out. You think this leader slip will bring it to a vote . I think this leadership will bring it to a vote. After all, Everybody Knows what happened in terms of the hispanic vote in 2012. You can see Election Results along the way that make clear the Republican Party is in a difficult position with the Fastest Growing sector. They know that and know they have to remedy that. They also dont want to be split from business. Theres a real risk from the Republican Point of view and the Business Community turns passive on financing republican elections and so forth. I think this will happen. Its a question of when. We have 30 seconds left. Switch topics. De blasio is today called the new liberal mayor. Do you think hes going to be as liberal as some suspect and some viewers worry about the Business Community thinks about him . I really dont know, but it doesnt make a lot of sense for him with four years ahead of him to start off in conflict with the business and financial and real estate and other interests which are the center of the citys economy. So i think hell probably make some efforts to start off. I dont honestly know. Do you support him because you agree with limb or because he was up 40 points . I support him because im involved in education reform and care a lot about being sure that certain education reforms have been going on continue. Thank you very much for being us this morning. All the best. Appreciate it very much. Were going to come back and talk about twitter when we return. Impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. With investment information, risks, fees and expenses help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, where experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Good morning good morning everybody. Welcome to squawk box here on cnbc. In studio with us this morning, richard the president of the organization. Good morning becky. We have a lot to talk about. Nice to see you all. Havent been here for a while. Great to have you back. Lets take a look at futures. This morning futures up a little bit. Dow up 66 points. S p 500 up 7 1 2 points. In headline, twitter ipo is expected to be priced tonight with the stock debuting on the New York Stock Exchange tomorrow. Twitter president ands to sell 70 million shares 2325 each. The auto maker Beat Estimates one profit. The Sales Forecast was below some analysts forecast. That stock at this point down 11 for tesla. Health and Human Services secretary has another date with congress today. Todays appearance before the finance committee. Joe. Some more notable races on election day. Republican governor Chris Christie won a second term defeating barbara in the democratic part. I was feeling bad for her. They didnt have a Single National democrat try and come help her. Its like barbara who . Christy was going to win by such a arrange amount. Won by over 60 . He reached out to all in new jersey and suggested what worked in his state could be the answer for washington. The biggest thing ive learned over the last four years about leadership is leadership is much less about talking than it is listening. About b bringing people around the table listening to each other, showing them respect. Doing what needed to be done to be able to bring people together and achieve what we needed to achieve to move our state forward. Listen, i know if we can do this in trenton, new jersey, maybe the folks in washington d. C. Should tune in their tvs right now and see how its done. We know him. Hes the antipaul. They say hes a prank or can something. Theres times hes not putting up a balloon. You see him answer in settings he knows the camera is. Hes got a lot i dont know. Hes an unbelievable retail politician. One of the most talented retail im sorry. Hillary might have problems with him. I want to warn you now. That may be the case. Theyre all talented. The only people we can elect are clinton and bushes. Thats the only two we can draw president s from . That would be a great matchup. Hes a good talker. I know him very well. Hes the greatest retail people are drawn to him when they meet him. They are. Its not all what should i say to make it look good. Its like im going to honestly say which may get him in trouble. If you say everything you think on the national scene, does it come back to bite you . Right. Take things out of context and you know where that goes. New york city voters have elected a democratic mayor for the First Time Since 1989. De blasio easy victory paving the way for outspoken progressive to leave the city after 12 years of michael bloomburgs leadership. This caps a turn of events for de blasio months ago placed fourth in the polls. Tuesday night he told supporters in the victory rally new york has chosen a progressive path for greater civil rights considerations in Law Enforcement and more commitment to affordable housing. Also democrat Terry Mccauliffe beats his opponent. He said the race was about whether or not virginia could continue the tradition of working together. This is the key Democratic Victory in that state. Colorado voters approved the measure to tax recreational drug use. The proposition implements a 15 pot excise tax but 12 sales tax. Taxes are estimated to bring in 70 million a year. Sales of Recreational Use will become available. No comments about the mayor there all over the news yesterday. He showed him saying it like i was trying to avoid it. The funny part was like, it was not my fault. It was one of the times i was just totally drunk which i do all the time that you already knew about. So if i smoke a little crack when im totally drunk, im no different than the guy you know. Any way. If you were bonding the revenue from the colorado pot tax, do you think that would be a more reliable source than the detroit Real Estate Tax . Im thinking maybe a high quality. Aaa. You dont need backing. Probably short perspective too. Twitter expected to price tonight. Should you consider buying it after the debut tomorrow. Leer the director of finance at university of florida. Master of figuring out evaluations in the market. Richard of abr, Senior Vice President of research and internet tech and media. Let me start well we can start with either of you actually. Jay, your view on this is that this is for the dogs. The evaluation on twitter at 25 a share prices in a lot of optimistic assumptions. Theres definitely upside. Theres a possibility that the company can be another blackberry where couple of good years and then disaster. Thats your sense . Just from evaluation perspecti perspective, do you see any road this isnt disaster . Yes. Twitter has a Business Model that potentially could earn huge profits. Google and facebook have demonstrated targeted advertising can be incredibly lucrative Business Model. Twitter owns a space. Its a defensible space. If we had you on and maybe day year ago before facebook ipo where did you come out . I predicted facebook would be bad long Term Investment for investors. I was right for the First Six Months although facebook has turned things around. Well see where that goes. Richard, where are you on this . I think twitter has got a very powerful Business Model. Its a unique communication channel of social media. Its compelling for users and advertisers a like. Its more compelling for both users and the advertisers than facebook. Its real time information and consumers as you know are obsessed with real time information, news about favorite stars, athlete, entertainment, business news, political news. Its very compelling for users because its real time information. Its intended for public consumption which is also unique relative to facebook which is more enclosed private intended for private conversations with family and friends. Twitter is wide open. You can follow anyone you want. That aspect is unique in terms of reaching a greater number of users. Are you not anxious about the val val evaluation . Not at all. Twitter price range up 25 recently. Its still very compelling. Theres another 50 upside from levels. Stock is worth 35 to 40. Youll buy tomorrow . Depends where it opens. I will buy up to 35, yes. Youre not going to get it then. You think it will trade below 35 . I mean, its hard to say these things. Theres clearly going to be a lot of demand. Any manager will have to have it in the portfolio as well. Thats why they a raised the ipo price range. Its compelling model for Revenue Growth of three years 75 each year. I think we can justify higher multiples than facebook and linked in and other social media that plays out there. Why is richard wrong then . Theres a difference between a good company and a good stock. The issue is evaluation. I think twitter does indeed have the possibility of being an incredibly profitable company. Its not 100 . Not 80 . Not even 60 probability theyre going to be able to pull it off. And richard, one last piece on this. One of the big issues is advertising. Clearly theyve cracked the code or partially here in the u. S. So many of twitt eter users are broad. Why are you convinced thats going to work out if so many use perre ers are a broad . Facebook painted the pros is of whats possible. Facebook has International Users two or three times higher than twitter. Theres no reason to believe twitter wont be able to generate the same level of modernization once they expand overseas and extend Self Service Platform exchange and products theyve come up with recently in the international regions. Theyll generate same amount as facebook. What i dont get facebook already using young users. Were how many years into facebook and it seems to be on the decline. Theyre not having the number of growth in terms of numbers of users. They talked about that on the conference call. Why is that not the same case with twitter or these other social medias. Twitter has a powerful net work effect. Every user adds more value and content making it more compelling for the next user to join. Its much different than facebook. Provides more utility for users and businesses alike. Thank you guys. Appreciate it very much. Thank you. Thanks. Coming up, richard on washington politics, state of the economy, Real Estate Investments and his thoughts about de blasios big win and what it means for the Business Community. Squawk box will be right back. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Richard our special guest. I wont say it unless its true, the favorite. Who are you talking about . The guy on for the first time. I mean it when i say it. Thank you andrew and becky of course. Youve got an apartment in new york. Are you a new york City Resident . I am. He won 75 of the vote. Everybody is saying new yorkers want to tax the rich and fund. Its true because i would say isnt 75 falling below what you consider rich in new york city . Right . Id say probably minimum. You could go up to new york city 200 to 300,000 doesnt get you far. I dont think its lard to get the numbers when youre not the person. Youre voting for something thats not going to affect you. Correct. However rich people that decide to live in new york city should know in a democracy, the 75 are going to be allowed to vote to tax them and move the money from one side of the ledger to another. Its your own fault for living there. Im guilty. Heres what im worried about. Ask him if hes moving. Is that what youre suggest . No. My real honest question is whether you do am i one of your favorites . Yes. Will it cause an exit like weve seen in france. Yes. The economy gets hurt. Look, theres another factor playing in. Were getting all the baby boomers getting older. Its florida time to begin with for a lot of them. On the margin, a few may go faster or sooner. Just on the margin . Just on the margin because i dont think anybody is going to leave because half a point of income tax is being is that all its going to be . He said 4. 8 to 5. 3. Its some small amount. I think whats far more important is if the rhetoric gets too hot, people feel uncomfortable or if the quality of the city deteriorates. It was grim in terms of equality of life. In terms of crime issues and r garbage wasnt getting removed, traffic, lots of things. The funny thing about the election and we dont know how good a manager or not de blasio is. Well have to wait. The jury is out. Its not his primary expertise. The primary objective of the mayor of city is manage a highly complex organization with hundreds of thousands of employees. Youve got to get them all to do their job. So if hes busy making policy pronouncements which most of which he cant any way because theyre outside his spear of power. He cant raise taxes himself. He has to go to the state. Is he going to manage the city, maintain quality of services, maintain quality on the streets and all of this stuff . Its ironic. This is local politics at its best. One of the things that kind of escalated him in the electorate was the decision by the judge that got overturned on the stop and frisk. He was outspoken about weather. Lets go back to the Business Leaders perspective. You have a lot of interest in new York Real Estate. Do you change plans in youre making, sell anything, not do projects as a result of concerns about quality of life . I dont. My investment is longer than traders. My real estate portfolio is generational. If hes a great mayor or not great, in the end hes only mayor four to eight years and somebody new will come. Four, eight, twelve. No. Cant you change it again . No. I dont think of it from my point of view i would change anything. I still believe new york is the greatest city in the United States and possibly the world. There will be people who will say you know what, we could go through the downturn. This is a time to trade assets. Maybe thats an opportunity for you. They sell you buy. Why not. Real estate question. Theres a lot of foreign buyers that come into the new york area. Huge. That has helped price across the board. Bill de blasio rhetoric is against that. He hates that. Hes been very clear on that. There have been questions whether he might try to change tax policy around the wealthy coming in to be there even though theyre not really there. I read that in the New York Times. That would be a very, very complex problem for the Real Estate Industry especially for real estate portion of the industry that caters to that group. Okay. As a matter of fact later in the show, we have a guest that in the middle of that now. That could frighten people. People could say i dont know if i want to buy a high price apartment. Do you think it will make the city better . How do you make that happen . Thats what hes going to push for over the years. What role do you and other developers play in that right . Theres lots of reasons it doesnt happen. A lot are regulatory and a lot are financial. Regulatory reasons are you make land available in order to build affordable housing. We havent been that generous in terms of rezoning areas al to i have to say in the last few years bloomburg broadened the horizons past manhattan. Youve seen development pass. A lot is just math. Construction cost are high in new york. You cant make the math work. There has to be a form of subsidy. I sympathize with him on that subject. Theres a vast majority of people that cant afford to pay huge rents in new york. Its an island. Brooklyn is not cheaper these days than manhattan. No. I read last week queens is becoming the new brooklyn. Whats happening is youre trying to fit five pounds of sugar in a two pound bag. Whats going to happen . Maybe the island in dubuois. Richard sticking around two hours. Were going to keep talking to him. On the kucusp of golden era. Were going to meet the man thats the subject of shareholders. Hes from water view advisors, joining us right after the break. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Bny mellon combines Investment Management investment giving us unique insights which help us attract the industrys brightest minds who create powerful strategies for a countrys investments which are used to build new schools to build more bright minds. Invested in the world. Bny mellon. Help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, where experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Manager following the manager following the investor. Should you invest when carl or bill take a big stake . Well find out after this. Futures up. Dow up 65 point, s p 500 up 7 1 2. Squawk box will be right back. The world is changing faster than ever, creating new opportunities for those who stand ready to seize them. In a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, our flexible, collaborative approach helps forwardlooking companies not only run better, but 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 now more than ever, the future belongs to those who challenge the present. Mortgage Mortgage Applications falling 7 last week. Applications for new home purchases and refinances were lower. Rates were unchanged. Time warner above estimates 12 . Driven in part by strong growth at the time warner tv net works. Heavy you slight he below street consensus. Take a look at that stock up 1 1 2 on the free market. Texas voters have rejected a bond issue. We talked about this yesterday to convert the houston astro dome into the convention center. The first multipurpose Indoor Stadium was once referred to as the eighth wonder of the world. It hasnt been used since 1999 for sports and closed to all in 2009. It was cool though. 46,000 jobs last month. The big question certainly weve seen steady job creation. Slow dropping of the unemployment report of that number that should continue. And the Government Shutdown is going to mean what . Well it didnt seem to make a big difference long term. Gdp value up. Maybe 20 billion is the estimate in that range. Long term for layoffs other than changing consumer confidence, maybe theres less trust the government has it together. Has made a big impact on layoffs in the month of october. Mortgage applications are really down affecting the banking industry. Thats where cuts are happening heavily on a widespread basis. You talked about banking. What other categories should we be worried about or happy about . Pharmaceuticals saw heavy job cuts that led the way in month of october with over 10,000 cuts announced. Whats that about . That was cost cutting. If you think about the health care system, the one thing that both parties agree on is that we have to cut costs out of the health care system. That usually means when companies do that, there are going to be job cuts. Inevitablvidence from government are slow. A lot of Hospital Health care systems are cutting jobs as well. Are we supposed to think this is a good thing or bad thing . Certainly when you get into Industries Like that where you want to shrink the cost. Then you see the impact. Well the paradigm is changing. If you think about it, theres pressure on that industry. Its going to look a lot different from today in a few years. 40 million more people were going to have to take care of. Theres more pressure to add jobs. We dont know how its going to shake out. Thank you for joining us this horn i morning. Thank you. Joining us now is guss oliver. Guss is a managed member of oliver press partners. Thank you for coming in today. Happy to be here. Would wow agree its object rise and the right time for it . I agree certainly its on the rise. Virtually everybody in the business seems to be in it one way or another. A lot of people are doing it today, many more than years past. I think theres a great activity among institutional investors. Youve got ideas you think will enhance the value of the scene. Youre going to get the receptive audience. Theyre much more willing than they were many years ago to accommodate. Its a great period. Activists investing, is it hit and run type of situation where you get involved, or you get involved and see new management and hang onto positions . I guess that depends on perspective of whats a quick pop. For the most part, its a much longer process than that suggests. You have to accumulate a position, engage management. Typically proposing things that are going to enhance value and one way or another in various initiatives. Most initiatives take time to implement and ultimately takes time for the market to recognize the value. At least in my experience, typically you have to be prepared to be in the investment two years before you realize the benefits from it. Let me ask you a question. Is activism a force for good or evil . What is it that investors know about managing a company . If youre the ceo or management of the company, some investor calls you up and says do xyz. They say have you run a company . In my view thats actually a fair statement. Often at least the way we go about it, we think of ourselves sometimes as basically investment bankers. Were looking at companies from a more Strategic Perspective thinking of how you might enhance value through Balance Sheet changes or possibly sales of the entire company. Thats different from going in saying by changing the way you run the company you can increase gross margin. Do you differentiate between carl and bill . I think carl and bill would like to be lumped together theyre such great friends. Nelson is definitely different. Hell go in the company with the perspective of changing the way its run. Thats what we call applied Management Consulting as opposed to implied investing banking others engage in. Carl icon is an interesting unique person. He has a unique approach to his activists investing. It covers a wide spectrum. Do you think good or bad . Generally speaking its certainly is somebody whos been involved many years. Is a proponent of activist investing is good. Some examples over the past 20 years you can point to that. Lets talk quickly to one of yours. This is a company that settled with activists investors in march of this year and gave up five seats on the board. I dont remember the exact number, but yes they gave up board seats. You still hold the stake. Actually its interesting. In the preview of this y, i mentioned we were in it now. We took a look and didnt like what we saw and then sold. One of the issues create problem for future investments, markets are tough today. We go into a company and want to see at least a 50 upside potential. In todays environment thats very hard. Thanks for coming in. Thanks. Coming up at the top of the hour, talking about a doctor shortage that could get worse when obama care is fully you implemented. Kenneth davis is going to join us. Squawk box is back right after this. Still to come, a different kind of housing crisis. The boom in fracking has create sod many jobs in north dakota theres no place to live. Senator on her states booming business and her push for more housing. Squawk box is back after the break. Oldest peryouve known . We gave people a sticker and had them show us. We learned a lot of us have known someone whos lived well into their 90s. And thats a great thing. But even though were living longer, one thing that hasnt changed much is the official retirement age. The question is how do you make sure you have the money you need to enjoy all of these years. To enjoy all of these years. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit card. Whered you get that sweater vest . Your ford dealer. I love chalk and erasers. But change is coming. All my students have the brand new surface. It has the new windows and comes with office, has a real keyboard, so they can do real work. They can use Bing Smartsearch to find anything in the world. Or last nights assignment. And the battery lasts and lasts, so after school they can skype, play games, and my favorite. Do homework. Change is looking pretty good after all. At bny mellon, our business d is investments. Managing them, moving them, making them work. We oversee 20 of the worlds financial assets. And that gives us scale and insight no one else has. Investment management combined with investment servicing. Bringing the power of investments to peoples lives. Invested in the world. Bny mellon. The oil boom in north dakota left the state with a big problem, a housing crisis. It spans across the entire state. Joining us now the senator heidi. We have richard who owns fracking properties in north dakota. Senator, great to see you again. We talked when i was down in washington. You put it off on minnesota. I dont know why you didnt take if owner ship. Any way, were really crying for you. Things are going so well in north dakota. You cant hire enough people and theres no housing. Its a blessing in disguise right . Were not complaining too much. Were pretty resilient people. Were encouraging people to look to north dakota for employment opportunities. In order to get families there, we need more housing. My main push is for single families. Senator, i dont know at this point you handicap it. Keystone gets built or not. Keystone gets built. I dont think theres any reason to delay the keystone. I absolutely hope we do not delay it another construction season. As you know in my part of the country you desperately need to get shovels in the ground when spring comes. When winter comes its hard to dig through six feet of ice. This has got to happen. Allison red ford, the premiere of alberta coming at my request going to try and do pushing next week. Unfortunately youre using common sense and jobs and benefits to the economy. Youre using these reasons to think it will get okayed. Do you have any reason or talked to anyone in the Obama Administration making you hopeful its going to happen. I dont think it looks hopeful. Number one i look at this if i were making a decision actually following the law and doing whats right. I think this idea that some how carbon you need to look at oil stands and make a decision on carbon. The decisions are with trucking it out or sending it on rail. When you look at it, this is the best way to move oil. The thing people dont talk about enough. If you look at the oil shell in north america, theres a lot on the border between British Columbia and alberta. We need infrastructure to push to become Energy Independent with great friends in canada to the north. Im really concerned if people think they can control the Energy Source by controlling the transportation, were going to see this all over the country. Were seeing it with the expansion for am bridge up there. This is something people say why do you fight so hard . I say because you cant have the Energy Policy without transporting energy. You cant stop this. This is wrong. Senator, youre preaching to the choir on this one. Thank you. Appreciate your time. Come on again. I dont know. It never gets old for me. Hearing the accent you mean . Absolutely. Id embrace it. I think its a great accent. You mentioned friends in canada. Thats where it comes from. Thank you senator. Take care. Up next, a real estate outlet from richard la frank. And how the companys market plan is pushed. Its business embracing birds. Squawk box will be right back. Im beth. And im michelle. And we own the paper cottage. Its a stationery and gifts store. Anything we purchase for the paper cottage goes on our ink card. So you can manage your business expenses and access them online instantly with the Game Changing app from ink. We didnt get into business to spend time managing receipts, thats why we have ink. We like being in business because we like being creative, we like interacting with people. So you have time to focus on the things you love. Ink from chase. So you can. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Welcome welcome back to squawk box lets get back to our guest host. Mr. Real estate, mr. Investor in all things. Lets talk about real estate. Where would you put your money in terms of developments, new projects . I have projects going on in new york, new jersey, florida and los angeles right now. I mean thats my money speaking for what i think where i want to be. I still think the multifamily space is best space of all real estate. There are reasons why. There are demographic components excellent for it now. House prices have gone up a little which is going to make buying a house less affordable for people. When you compare it to the retail and office sectors, the internet and technology have not destroyed part of the multifamily business. You cant put a kitchen in a bathroom in an ipad. You picked markets that are relatively hot though. Yes. Have you gone to detroit and said should i invest there or vegas . We had investments in vegas after the crash in 2008. We just sold them because there was a uplift in the market. Theres no question theres a bunch of secondary cities now that are thriving. Seattle which may or may not be secondary. Orlando which is doing well. I think nashville is doing quite well. Lots of other cities. Global capital always wants to go to a small number of places. Right now you can count on things. When you were on the show last time, you were about to leave to go on a trip to europe. Yes. Did that trip bear fruit . Well i had a good time. Very tough to do anything in london. London is really kind of the escape center of global investing in real estate now. Theres a huge amount of money. A lot coming from the middle east and russia. But everywhere. You look up and say whats that . Its tough because the expectations are so high because of cost. Would you touch china. I was just in china. Yes, i would not go there. Youve got to have the right partner. Its not a transparent economy. Theres a number of Real Estate Investors taking advantage of new rule or rules that have been around this visa program. If youre a foreign investor and have 500,000 and invest in the state, create so many jobs with the, theyll staple your visa on top of that investment . Right. This is kind of a clone of what they did up in canada where they told the people from hong kong if you come with a 400,000 investment in canada well give you a see svisa to live here. Part of rebirth of vancouver was because of that. You still have to relate the number of investment to the jobs. Its very effective in hotel space. Its inexpensive capital but expensive because puyou have too through brain damage of getting it from the chinese. This is not coming from a chinese Insurance Company. This is coming 500,000 at a time. If you need vast amounts of money its not cheap capital . Its inexpensive but cost you a lot of time. Will the Foreign Investors make money on those deals is this. I would say thats 500,000 visa. They wont get money back . Theyll get their money back. Its more of a form of a loan than equity investment. Its like cheap capital. Its not cheap equity capital. We were you can at thtalking new york. Do you think well ever get back to massive entitlement deal, grand bargain in washington and whether that will ultimately hit . Theyre insane in washington. Any business man looks at the way they behave there. They have no use for any of them. Theres no common sense in the place anymore. Actually i have to say ive lost a lot of interest in the political process at this point. You were involved . Yes. Im a big fan of chriss. I think hes a great governor. He would be interesting in the president ial election if he decides to go that way. You know, you cant hear the same thing over and over again. Its frustrating. They keep fighting about nothing. Theyre fighting for political power and not for the average person. When you say youre sick of it. Schultz from starbucks likes to say if you hate it so much, dont support candidates dont help anybody. Im leaving. Right, remember when he did that . Do you just say i probably get every week ten emails asking for support from different people running for congress, running for senate, running for governor in states other than states im doing business. By in large they get deleted right away. Im not interested. Theres nothing new. I want something new. I do want something new, somebody to talk common sense to everybody. Its not just about taxes. Taxes are just one component. We still have america and have to protect our country. Somebody had to give us enough leadership to protect our country. We have to go to a break. You see whos leading . Cftc. Where have you been . Yesterday they announced that. We havent talked about it. I thought we just did. Did we mention did we make a coach or new james bond . Wheres he going . All right. When we come back, the ceo of the Health System and his take. Well join our guest host Richard Lefrak when we come back on squawk box wiggle your toes. [ driver ] and it got his okay on treatment from miles away. It even pulled strings with the stoplights. My ambulance talks with smoke alarms and pilots and stadiums. But, of course, its a good listener too. [ female announcer ] today cisco is connecting the internet of everything. So everything works like never before. Because what you dont know, can today churt you. Urance. Ng the internet of everything. What if you didnt know that posting your travel plans online may attract burglars . [woman] off to hawaii what if you didnt know that as the price of gold rises, so should the coverage on your jewelry . [prospector] ahh what if you didnt know that kitty litter can help you out of a slippery situation . The more you know, the better you can plan for whats ahead. Talk to farmers and get smarter about your insurance. We are farmers bum pa dum, bum bum bum bum help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, where experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Customer erin swenson ordebut they didnt fit. Line customers not happy, im not happy. Sales go down, im not happy. Merch comes back, im not happy. Use ups. They make returns easy. Unhappy customer becomes happy customer. Then, repeat customer. Easy returns, im happy. Repeat customers, im happy. Sales go up, im happy. I ordered another pair. Im happy. both im happy. Im happy. Happy. Happy. Happy. Happy. Happy happy. I love logistics. It is. It is the most anticipated ipo since facebook. Twitter has become part of a culprit culture. Were going to ask how the social media platform has helped jet blue take off. And the titan of new York Real Estate. Har harrys latest come back helping the skyline. Well talk about the new york citys new mayor. Third hour of squawk box returns right now. Welcome back to squawk box here. Im joe kernen along with becky quick and andrew. More from Richard Lefrak our guest host city ahead. The companys quarter earnings rising 70 outper forming japanese rivals. Toyota is raising the four year profit forecast for this year and next year. Also keeping an eye on shares this morning. Better than expected earnings posted yesterday. After the bell what caught wall streets attention was the electric car makers profits and sells. Thats why you see the sell off. Earnings at 25th century fox for warner missed the mark. The investments in new cable channels and weaker performance of new releases is the cause. Markets high this morning. Does up 58 points. Just a little below this morning highs. S p 500 up just over 7 points. Number of key races decided yesterday in new jersey. Chris christie winning reelection 60 of the vote in virginia the governor by a small margin. Then the new york mayoral race. De blasio won with more than 73 of the vote. Tonight also a big night for twitter. The company is expected to price the ipo in the range of 23 to 35 per share. Twitter plans to share 70 million shares representing 13 of the company. Its valuing it, the company that is, at 13. 6 billion. Right now twitter is all about advertising. Its taking steps to expand into entirely new businesses. We are joined now you with more on the deal. Well, andrew, looking at the future for twitter, the fact twitters business is ads, theres today potential to sell stuff online and on the moment in twitter. In august, Nathan Hubbard was hired as the head of commerce. Twitter allows user to link a credit card to their account for purchases within twitter from papa johns pizza or donate to red cross. Twitter could take a share of the costs. It would be a far less clunky version of the system called sink where users link credit card, tweet a handle with a hashtag in order to make a purpose. They could partner with ebay and amazon to link accounts. Users could make purchase without putting in credit card information. It will allow twitter to build real time bidding into the ads also serving ads elsewhere across the mobile web. We can expect it to strike more deals to sell the Companies Like brand watch a. Thats not all. To peak capital market, anthony points to twitter to expand to video saying it holds promise as an overthe top video platform to compete with youtube. Thats where twitter goes next. Thank you very much. Lets look at how twitter uses companies to boost their brand. Offer, discounts, deals, flash give a aways. Joining us now. Marty. Ive been looking at deals. Heres a quick low deal on twitter. How much of an incentive or how great would it be to do that with one click shopping like amazon so people wouldnt have to leave, go to the website and enter a bunch of information . Thats something to consider. We use social media commercial purposes. We havent done it yet but do a lot of offers on twitter, social media and other channels. Were trying to figure out if twitter will be profitable. Theyre not now and dont know if theyll ever turn a profit. As much as you engage in the brand, how much do you spend . Is it the big budget you put on this or would you have ads on this . You get to do it for free. Thats why its great. We are extremely heavy users of social media and twitter. Twitter is more Customer Engagement channel. We have spent money with twitter. Theyre not an incredibly part of the budget. Thats the challenge they face of how to turn the channel people love and generate money. In terms of engaging with customers, you do that free right . How big is the team . Roughly 25 people in the support center in salt lake city. We call them social media ninjas. Theyre well trained. Theyre part timee timeers. Where did you find out you got excited about . What are they doing you can get wifi now. Heres the thing ive been going on other airlines they have wifi. I want to say im a dork. Im saying the seats are so close together. Dont start surfing on wifi. The seat is right here. It could be a kid there, an elderly lady there. Do not do the wifi. The hotels youre constantly missing wifi in. Theyre introducing cabinets. Take it to the next level. We have the most leg room of any airline. Oh man. I didnt offer to take this here. Right. You got so excited that they got wifi. Seats are right there. Their lot of people in my camp using other airlines because it doesnt have wifi. Now theyre introducing it. Its better. Im now doing an ad for you. Its better than all other wifis like go goes. We went a different path. We looked at that several years ago. When a lot of people use it, it doesnt work well. Were work with Satellite Companies and have the broad band. I got excited. I said there are new faa rules which im always excited about. We talk about going into Airplane Mode and what that means. He says youll get wifi as soon as you get on the plane. Even on the ground theyre not going to make you turn off the wifi piece of it. That is correct. Well have that next year. So youll turn off your cellar but got wifi . Correct. How will they know. If im on my phone, are you going to know which is on . Its going to be tough for them to know. Is it going to increase more agitation on a flight . I get in trouble every flight im on. Ive heard about you. When somebody looks over . No. This is triple x. Single, double, triple do you see how easy this was. Now you see this is no problem at all. The problems can come in when customers engage back in a public way. What do you do about twitter bullies . Thats a great question. One of the things we struggle with. Theres information about what we know about a situation and what a customer knows. Its what i tell my kids. Theres three sides to every story. We have people come in aggressively. I cant go out there and say by the way you were drunk. Cant say stuff like that. I have Horrible Service on the jet blue at jfk terminal. This flight attendance has been rude to me. Were focused on inspiring humility. We can engage sincerely. We mess up. Every Company Messes up. The fact were engaging in the conversation and oewning it and making amends. Do you try to engage the angry customer on twitter . We engage the best we can. We try to figure out. Sometimes theyre talking to themselves and sometimes they want to hear Something Back from us. Thats the first challenge. The seconds challenge is getting as much data as you can. Sometimes you answer somebody and it can create a horribly long report them for spam. Thats what i do. Block them and report them for spam. Disgruntled customers are not spammers. Its like could this guy get anymore spam than anyone . If twitter were to decide they were coming up with corporate policy which is that all Corporate Accounts have to pay some kind of annual fee to participate in this conversation, do you think that would work or not . I think thats a great question. We have a question internally. The real issue is to a certain extent the the engagement you see on brands makes twitter cool. Thats part of whats built in the platform. If you have brands opting out because theyre not going to spend 10,000 a you month or whatever, it diminishes the platform. Jet blue does good things giving good offers out there. Charmin is funny. Im not going to follow every single corporation. I think were lucky if you think about what people get excited about. They talk about sport, politics, entertainment and travel. People are passionate about it. People arent quite as passionate about toilet paper. Theyre passion about travel. Joe knows im passionate about the wifi. Im passionate about toilet paper. Follow charmin. Thank you very much for coming in today. My plumpt. Appreciate it. Coming up, obama changing the way hospital doss business. Well talk to the ceo of m. Zion hospital. Then later, new york developer Harry Mcelroy on his recommissioning. To Luxury Real Estate and changing the new york city skyline. Here we are, me and you on the road and we know that it goes on and on [ female announcer ] youre the boss of your life. In charge of making memories and keeping promises. Ask your financial professional how lincoln financial can help you take charge of your future. Oh, oh, all the way oh, oh welcome back to squawk box everyone. A billion dollar day for the latest offering. The company says it had sales over a billion on day one for call of duty ghosts. Its setting records for average players. Take a look at at stock up after the news. 2. 8 . Billion day. Thats something to talk about. The roll out. Now joining us ceo of mount sinai systems. Thanks for coming on doctor. I want to go back to a couple of weeks ago. Listen to these sound bites. Maybe you disagree. Our kirnt system doesnt look at the complexity of care or range of outcomes. Theres nothing in there to motivate and stimulate moving towards the system. The Affordable Care act is insurance reform, eligibility and access. Basically theyre going to pay for that by reducing the reimbursement. It doesnt modernize how we drive to Higher Quality care. Theres nothing. Its all about covering the uninsured and nothing about Cost Containment . Its a complicated bill. Think about what it does for access, prevention and well, the cost of care. What does it do in three categories for patients, provider, hospitals, doctors, and Insurance Companies. Depending on that three by three matrix, where do you stick a box and where do you put your finger in. Youve got a different answer. One of the points you make in our preinterview is that it does move the fee for Service Model a side and move us towards outcome and wellness. I can can remember that happening at least ten to 15 years ago. I knew we needed to move away. Hmo and capation and all things already doing it. They had nothing to do with obama care. A real question is why do hmos fail and why might this not . The reason the hmo care by the Insurance Companies, whats happened recently from Insurance Companies or obama care, the care people and doctors are em powerred to coordinate that care. In the accountable care, its not the Insurance Company telling you you can or cannot have the particular type of service. Its the physicians telling you, you dont need test. Theyre in line with the same way providers are. When you put the Insurance Company in between you and your care, you begin to think well their interest is for me to get less and less care. They dont know about me. When your doctor tells you you dont need that care. The way its said up doctors get tees for services. The more tests you do, thats how you make your revenue. If you could get medicare to pay you if the patient does well youre a 1000 right. We move away from medicare to more shared savings or sharing risk with the government with organizations. That moves us away free for service to a different kind of payment. Its an institution with every specialty where many hospital bed, thousands of doctors. Why isnt it just an Insurance Company . Why cant we go to you and say tell me what youre going to charge me to take care of me and employees. Thats the future. That is the future. Part of the motivation for us to become a much larger hospital system, bigger Geographic Area was to accept risks. Thats very interesting. If you get to that point, that changes the game. Costs truly do come down. Absolutely. Are you comfortable that for example you saw some of the different News Organization play up different situations that happened in the first month. On a 69yearold couple is mandated to pay for Maternity Care or when someone with Substance Abuse just because we need to collect more money to cover the sicker people, do you have a problem with that . Doesnt that highlight that the government isnt good at telling us what to do . Nobody is good at this. Thats part of the problem. There are no good answers. We can focus on those owe people who wouldnt be buying maternity coverage. We can just as easily focus on people that have enormous Mental Health problems and dont get coverage. More than 50 of disabilities in the world are mental. All right. Were worried about the promise of if you like your plan you can keep it. It seems to not be true. Then you explain this. What about down the road. Will employer after employer at some point decide to move their people to obama care. The plan you had from your employer, you can no long per keep. To say only 14 Million People is a bad comment. I dont disagree with what you said. Nobody can afford health care. The Macro Economic Health Care Environment is whether if youre an employer, individual, the government, state or federal. Nobody can afford this. If it were individual where you knew you were in charge of your own yutilization. You might use it less. Youre responsible for the outcome you have. A lot of times if people know the government is responsible, they dont take owner ship of it. Is this the right way to do it . Were going to only find out. You think when you empower people they make the right decisions. Thats not true. Behavioral problems are driving Health Care Cost for those that dont make the right decisions. The idea of Insurance Company, i want to hear from you. That could change the whole game. Absolutely. Coming up, hes been called the ultimate survivor. Happy to have harry as real estate career has been hit hard. Hes bounced back time and time again. Hes going to join us on set to talk about 432 park avenue, the largest residential tower in the hemisphere. Squawk box returns right after this. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. 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. Back tome welcome back to squawk box everyone. Colorado voters have approved the measure for tax recreational drug use. The proposition implements the flat excise tax on top of the sales tax. 25 . Taxes are estimated to bring in 70 million a year. Sales of Recreational Marijuana will become legal in colorado january 1st. Coming up titan of new York Real Estate joins us on state. Well talk more about Luxury Real Estate, the economy and new york city s next mayor right after this. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial does. Thats what they can do with you. Ameriprise financial. More within reach. Customer erin swensonan do ordebut they didnt fit. Line customers not happy, im not happy. Sales go down, im not happy. Merch comes back, im not happy. Use ups. They make returns easy. Unhappy customer becomes happy customer. Then, repeat customer. Easy returns, im happy. Repeat customers, im happy. Sales go up, im happy. I ordered another pair. Im happy. both im happy. Im happy. Happy. Happy. Happy. Happy. Happy happy. I love logistics. Welcome welcome back to squawk box lets catch up on earnings that came out this morning. Third quarter profit 16 cents above estimates. The the Health Insurer said earnings would decline in 2014 because of expenses related to the Health Care Exchanges as well as the medicaid programs. Thats down about 3. Injectable drug provider earned for the Third Quarter six krece above reports. Never like had the name. I forget who spun them off. Do you remember . I cant remember who spun them off. Reminds me of something. They paid something for it or something. Revenue well above estimates. Oil and natural gas. Rob reported fiscal profit of 323 a share. Evan . Yeah. It raised full year forecast on expectations of strong Holiday Season and raised dividend 12 1 2 . Perhaps the most famous product the beltless pants that andrew wears. Are those ralph lauren . If you tighten them enough, do they hold your pants up . If your waist expands, you loosen up. After 32 33, theres a limit on that. Like pregnancy, depends on how much you eat for lunch. We have a legend at table, the man of the hour. We want to introduce manhattan developer harry macklowe. His recent project 432 park avenue, the tallest residential tower in the hemisphere. Hes considered the ultimate survivor. He has bounced back again and again. Harry is now with us on the set. Ceo of macro management. Thank you for being here. I dont think weve had you around this table before. Thank you for being here. This is the first time im here. Im happy to be here. Richard invited me. Its exciting. I enjoy talking about two park avenue. The building is tall, graceful. For me, its very exciting. Weve been able in my career to do some wonderful buildings. Gm building. The smallest building that weve built and had greatest amount of influence certainly retailing on fifth avenue. The smallest building surprisingly enough had the impact. The tallest building now im lucky enough to be build as good progressingen ining with the 40. You dont make small bets. The Development Site was very difficult to acquire. As we made the acquisitions it became larger. The real estate demanded that we get the most out of it. The center 57th street park avenue really requires in terms of making the math work youve got to go that high . It requires a wonderful building, good architecture and ability to get views really backed into this wonderful building. How risky is this given the ups and downs of your career. We called you a survivor in many respects. Where do you put 432 on the risk spectrum for you . I feel that its a risk free deal. The real estate was very expensive. Were extremely well capitalized. Very small debt. The sales have been extraordinary. Weve been able to sell more than half the building. Were still two years from completion. The volume of that weve created in excess of a million in sales is heartening and gratifying. Real quick. We have a new mayor in new york. Starting today. Hes not going to be in office today, but as of today, we do have a new mayor coming in. How is that going to change the real estate landscape for you as an investor . A significant amount of our sales are new york domestic. Also a significant portion are farm. The mayor i hope will be good for all of the people. Im not sure that his campaign was as good as it might have been. Perhaps more decisive than he should have been them and us. We had 12 years of administration nourishing. Very friendly to the city and invited industry and people to settle here. We hope that this will continue. The mayor is extremely important. New york in my opinion is really the thrown of the the United States. Its the Stable Community where everybody wants to be here. Foreigners really led to new york by children. Their children have gone to college, gone to brown, work for financial companies, have homes in long island. Parents want to come here and visit them. Theyll really continue to come and continue to be in new york. It will be great if we had a mayor who could continue policies that are friendly to people and not. The mayor when he gave his acceptance speech made it clear he was committed to a progressive he use had the word in acceptance he said im committed to a progressive program. In the past he has spoken about the catering to the wealthy or 1 that he felt mayor bloom berg did. I dont think hes aware of tax revenue and good things that come from that. Do you feel in the end that if the attitude and rhetoric is negative that that will affect what youre doing . I think it may slow things down, but no, i dont think that the mayor himself is going to have policies difficult to enact. You cant turn around the city in a day. It really requires the approval of the city council and approval in albany to raise taxes. I think it would be a slow process. However, think about the rest of the world. Because theres been such in europe, governments have turned to social programs that bankrupted the company. Those people want to come to the United States. And you see a vacuum occurring in europe. Were losing generations of talent. That talent is located here in chelsea tribecca and east side. Parents follow the children. I imagine that of the 500 or 800 billionaires in the world or more, probably 25 or 30 perhaps more live in the United States or want to live here. The mayor cant room people together as opposed to rooming them as opposed to saying i want your donations to be spread in different parts of the park. I want to give to central park and my donation doesnt want to end up in stat ton island or brooklyn. I heard central park is going to have a real problem. I heard it from my wife that does things down there. Things are going differently there. Theyre being divided or something. You talked about the device campaign. What about a 40 point gain in winning 75 would cause him to second guess the campaign he ran. This worked. All rhetoric and everything he did, id think hed almost feel he has a mandate to pursue things he ran on. I believe that he will try. I also believe once you get an offer and see how the city runs the city after all once you set a side politics is a business. Richard said he was disappointed in whats happening in washington. I think we all would be disappointed the city did not continue to run with check sks balances, spending money you generated and not going into exce excessive debt. And providing services. If you dont provide services, nobody will stay. If you believe in the campaign he ran, all bets are off. You say you cant do it right away. You could mess this place up in four to eight years. Weve seen it. Weve seen irresponsible politicia politicians. And to quote, richard, we lose confidence in somebody who is continually giving you negative pitch. Somebody who is not thinking in terms of how to both build, how to nurture and how to make things better for everybody but for everybody. Thats on a National Level too to some extent. Yes. We see something different. Its grass roots. Its happening everyday. You have a large enough base where your city council and albany to provide a sensible balance. So if you looked here. He hasnt had a fight or strike with anybody. He has been able to narrate difficult situations without panderring because he was an independent. And a Good Business man as we know. Ive got a personal question. You are 76 years young. What do you want at this point . The reason i ask is, you had empires. Youve had empires fall and rise, fall again. Now you have this 432 project. What sort of drives you to do this . Whats the next step after 432 . I think its always thele challenge. Im youthful in my mind. I dont really think in terms of chronological accomplishments that i have. As long as im capable, i look forward to continuing to find projects that i can put my stamp on that i can turn into something that would be better, something that would be exciting. Ups and downs we had. All of us in our business, Real Estate Development community, to a degree, are dreamers. A lot of what motivates us is why not . Why cant i do that . I can do that. I can push this. I can create the hudson yards, can build 50,000 homes on the jersey shore. I can do this. To do it intelligently and to fulfill a need in the market is so terrific that its something you continue to be challenged and want to do it. Not certainly motivated by economics but thats part of it. Seeing it done, having that creation standing long after youre gone is something that makes as the they say the game worth the candle. Thank you for coming in this morning. Appreciate it very much. Thank you for having me. Appreciate it. When we come back, the twitter ipo after the closing bell today. And the changes on the ipo market since facebook went publ public. Squawk box will be right back. E. And let it do its thing. Wow, more fan mail. My uncle wanted to say thanks for idea hub. He loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. [ male announcer ] open an account and get a 150 amazon. Com gift card. Call 18882800149 now. Optionsxpress by charles schwab. Call 18882800149 now. Bny mellon combines Investment Management investment giving us unique insights which help us attract the industrys brightest minds who create powerful strategies for a countrys investments which are used to build new schools to build more bright minds. Invested in the world. Bny mellon. Help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, where experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Everybody. E back welcome back everybody. Deal makers trying to keep the problems that plagued face book ipo. Theres one person trying to make that happen. Theres one thing working in their favor but actually out of their control. Its actually the markets. The markets is going to do thursday decides the demand and supply die maamics are. The market will decide where things go. With Everything Else going on in the world and state of theyearold curve and rate, im not surprised that the equity market is up. Im not nervous at all to be honest. The ceo up next. Major averages up sharper this year. Nasdaq 36 . The most important indicator is the index closed yesterday at 13. No major market moving event on the horizon. 26 , biggest jump in nine months closing at 25. That would startle investors even more. Its a time of the only big ipo in the pipeline. Not only did it reach a high price, the trade and index fell triple digits. Down 5. 3 on the week. S p 500 lost on the week. Dow lost. Markets havent done that poorly in months. There are worries about germany and greece election to take place a month later. There was a meeting coming up. Right now pretty quiet. Tale of two markets. With no sign this is week, the deal could be one big worry out of the way. Whats the range . Tell me again. 23 to 25. Priced pat probably 27. Probably increase the size and open at 40. I dont think the increase size. They do have allocation. Theyll price it above the range and open at 40 or more . Thats what cramer says. He does . I didnt see him say that. He said 40. Hes not happy about it. What do you think about it, it will hope at 40 . Yeah. Its interesting because its not supposed to be close to profitable until 2015. Doesnt matter. Quite a jump. I dont like it. I dont like using it, reading it, anything about it. Thats a hater heaven. Thats where they congress gait. They all gather. They talk about my hair. This is the best thing to happen to twitter though. This guy was crazy. He may have taken over a computer in a prison or something. It concerned me. I watched with alarm. Thank you. Were going to talk more twitter, tesla and more. Getting ready for the tomorrow on squawk box, before the first twitter share trades on the New York Stock Exchange, well tell you what the companys worth, break down twitters ad strategy and talk to analysts about the prospects for the day of trading and the next year. It all starts tomorrow at 6 00 a. M. Eastern on squawk box. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit card. Whered you get that sweater vest . Your ford dealer. Welcome welcome back to squawk box this morning. Lets get down to the New York Stock Exchange where jim cramer joins us now. Good morning to you, jim. Good morning, andrew. How are you . Im great, thank you. Lots of earnings reports. We keep talking about twitter. Might as well get it out of the way. Where are you on all this . Exactly what kayla said. She nailed it. It could be at 40. Do you want it to be at 40 . No. I think north of 28 is wrong. If it goes to 40 at the opening, you may get to 50 eventually. But the pattern on every social media company, every single one, is to see it cut in half to where it gets to where it goes. This is going to come out of the gate tomorrow. Some people not institutions but some retail is going to try to get in there if they can. Should they buy on the open . No. It will open at 40 and go to 43. I dont want it to go to 40. I dont want to be part of a mob that says theres no place we wouldnt pay for twitter. Look at zillow. You did not get a good price unless you were in the ipo. Jim, youre seeing some things in the past. Do you remember when some of these things when theyre really hot back in the old days, they could triple sometimes. You might say you dont want that to happen because of twitter, but just for the news cycle and for investing to become something people want to do again, i think you ought to embrace it. It should do 40 easy. I would love to embrace it but facebook wasnt the single biggest since the flash crash. I know. It will be part of the rebuilding, part of the healing if this were to open at god forbid 70 or certainly look that. That would get your attention. The cab drivers would be talking about the stock market again. If they dont botch the opening and the company does deliver on these tremendous numbers for 2014 and the banker at goldman will be to be able do a better job controlling it, then morgan stanley, which really wasnt all that to blame, it was really nasdaq, when you say that nasdaq screwed up, youre going to get a lot of blowback. Why . Why . Why is there blowback to that . 20 seconds, tesla. Betterthanexpected earnings but forecast not as hot as people were thinking. It wasnt a production problem, it was a demand problem. You cant screw up at infinite earnings, it had to be perfect. It had to be perfect but it wasnt. Jim cramer, we will see you in just a couple of minutes. When we come back, our guest host this morning is Richard Lefrak. Well give him the last word when we return. So you can get out of your element. So you can explore a new frontier and a different discipline. Get two times the points on travel and dining at restaurants from chase sapphire preferred. So you can be inspired by great food once again. Chase sapphire preferred. So you can. Afghanistan in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation because it offers a superior level of protection and because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. A lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Welcome back to squawk box. Lets get back to our guest host, Richard Lefrak for the last word. Huffington post, this just helps us get even further apart, seeing new york city. The country is whacky in terms of where we are. Would you say if you elect de blasio in new york city and Chris Christie in new jersey that we have a bipolar electorate . Its crazy. Its crazy nuts. And sometimes i think for the news cycle its something but for the country i dont think i dont know. Its the way we do things and it is what it is. I hope they wake up in washington because really the country is we need people who dont have jobs the country is poised with these great natural assets we have. Technological. Technological revolution. Whats going to come out of the ground with the fracking and everything, its amazing. Richard, thank you so much for being here. That does it for us today. Join us tomorrow. Right now its time for squawk on the street. One day more we are one day away from twitters debut. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david faber at the New York Stock Exchange. Futures have a decent tone, despite some stocks that will struggle at the open, like abercrombie, like tesla. And europe got a