Transcripts For CNBC Squawk Box 20131111

To bring in transportation. We have c 130s coming in. Authorities say that at least 2 Million People are affected in 41 provinces. We will have more from a live report from the ground. In the meantime, lets send it over to andrew. He has this mornings top stories. Good morning, becky. Thauchk. We have some corporate headlines this morning. Avardis is selling its blood testing units for 1. 75 billion. Its a very busy market for health care deals. Also shire has agreed to buy viro viropharma. The deal should boost shires rare disease portfolio. Trans ocean reached an agreement with carl icahn to settle a proxy battle. They will pay a 3 dividend. The activist investor tweeting his response writing in part, quote, great news for transocean and activism today. Joe, over to you, sir. I think he just likes us to say his name. A lot, in any context. Carl icahn in. Yes, pretty much. Icahn, icahn, icahn. In every story, in every headline. Icahn wants to be an icon. He is an icon already. Is that what the word is derived from. I dont know. Spelled differently. Not the word icon. I wonder his name. Not either. In other corporate news, the government wants bank of america to pay nearly 864 million in damages after a federal jury found it liable for fraud over defective mortgages that were sold in this case by its countrywide unit. Governments also asking for penalties against a former mid level executive at countrywide. The jury found her liable as well. And vc firm andreson horowicz has sold a third of their shares. The shares were sold between 49 and 50. That makes the sale worth more than 111 million. Kind of interesting that they decided to do that. The firm still holds more than 4. 5 million shares. What do you think about that . At some point he has to harvest some kind of gains about this. Hes still on the board, right . He cant leave but he cant hang out he cant be in there all the time. You know, some people say its never bad. Stocks do go up and they do go down. I remember that barons commercial. The markets go up, the markets go down. From barons they fell down. I dont think they sold any shares after the ipo, therefore, makes sense. You look like youre kind of brooding today. They went wild. What happened . I dont know. They dont do anything to my those are natural . These are natural, these are natural, nose natural. Those eyelashes are not. Theyre that long and luxurious . Theres no latice on that. No. You have no masz kara . No. I. I dont wear any. Anymore. This conversation is getting a little weird. Lets talk about some Global Market news. Close on you. Lets talk about Global Market news. Were watching Oil Prices Today as well. The latest news on iran and the six world powers. The negotiations were aimed at curbing tehrans Nuclear Program. Oil prices you can see are down by about 29 cents to 94. 31. Michelle cabrera will join us with more on iran coming up in the next hour. Also on the topic of energy, u. S. Gasoline prices continuing theirdown ward trend. Prices have fallen nearly 15 cents. The average price is 3. 22. If you take a look at the markets, last week was an interesting day to watch on friday after we got that jobs report. You saw bond yields spiking. They zipped higher to 2. 75 for the ten year. You saw stocks gaining. The dow picked up 167 points on friday. Theres a gain of about 44 points above fair value for the market if it were to open right here. The s p 500 looks like it would open up by about 24 points. Wow. That is a big move for the s p 500. The bond market is closed today because of the veterans day holiday. Stock market is open. Take a look at whats been happening with the dollar. Right now you can see the dollar is down against the euro which is at 133. 97. Back above 133. Weve seen it fall below that briefly. You can check out gold prices this morning. At this point youll see them down by 133 to 1,283 per ounce. As we said at the top, the market was down on friday. This is stupid. Maybe we taper when the ten year is up. Eventually you want a reason to stop tapering. Right. If you want to taper forever, the economy will never be any good. Eventually you need a reason to stop tapering. The journal says because mom and pop investors are they say back, i would say at most trickling in. Marginally. Trickling in. They say that the renewed optimism among retailers considered to be a warning sign. Then i looked for one single professional that theyre sourcing here so that i could remember that they were saying that so that i could you can be the professional. Anyone can be that. Anyone can be the professional. Michael far had been talking about how if the insiders are selling he has never embraced this whole thing. The point is the number of he always gives that caveat about you know, hes never said buy that. I dont listen to him anymore. These being brought to market, it seems that theyre selling. The insiders are locked in for six months. Mom and pops, you dont have generation x and y people. No, i wouldnt argue that point. It doesnt seem like the Retail Investors. There are people that were not seeing if theyre picking up on the ratings with people in their 20s, 30s, 40s. I think they think only their parents invest in the stocks. You remember the 2000 except for the tech stocks. The wall of worry. I dont think retail is back yet. I dont either. What happened . Global markets report. Ross, what do you think . Are you in are you a generation x or generation y . Do you know over there . Because you look youthful. The earlier one. Its the earlier one. Youre rated x . Yeah. Ive always sort of thought that. You and i both. Over there do you think people are getting excited about financial assets, stocks, things like that . Do you feel it at all in europe or the u. K. . I dont think necessarily in the couldnt nebt of europe. There has been excitement around some ipoed recently. The Retail Investment went very big on the royal mail ipo here. Thats the first time weve seen any sort of heavy Retail Investment, and they were right. They got a pop on the open for that. Its hard to say whether theres been greater excitement other than that. Thats an indication that there was more excitement to that particular ipo a few weeks ago, joe. Equities, meanwhile, we can see a little bit of momentum this morning on the up r up side. The dow jones stock, the ftse was down 26 points last week,. 4 . This morning were up about 1 4 for the market. Slim gains. The cac quarante up. The european commission, they may launch an investigation into the imbalances in europe focusing on germanys surpluses. Theyve been criticized by the u. S. Treasury. A number of sectors. Dollar index is up at a twomonth high post that jobs report and basic resources down. The frakt try output was up better than expected in october. Financial services doing very well and technology. Number of individuals stocks focused on here. First of all, its down fairly heavily off 10 this morning. Suspended three executives at their irish unit. Investigating claims and finance functions within divisions. See what happens. Big focus on bt. Bt was the dominant telecom. Its competing in the internet and sports area. Its launched its sports division. Over the weekend or last night they announced that bt has paid 89 p Million Pounds for the right to show Champions League football. Thats showing the muscle they have and the competitive threat theyre going to show. Big sports battles looming here for football as well. Thats where we stand. Back to you. Ross, thank you very much. Lets get back to one of this mornings top stories. Devastation from a super typhoon in the philippines. Sri joins us from the philippines. Can you tell us what the scene looks like there . Reporter well, lots of devastation. Catastrophic is how some diplomats and aid Agency Officials from europe just described it to me. This is pretty much unprecedented territory here in terms of the aftermath of the tie toon. The arc can i pe archipelligo i this. Even they were overwhelmed. It was really the storm surge that this super typhoon created which has krause caused all of the problems and caused all of the deaths in the eastern and central provinces. Weve heard reports of winds up to 300 kilometers an hour. Very, very heavy rain. Very heavy winds and thats one of the reasons why weve seen the death toll which is arguably some are saying could be as high as 10,000, some are saying that we would be lucky if we saw a figure in the region of 10,000. It could be much, much higher. This is still very much a developing situation. The real need is to get essential supplies, food, clean water, and shelter for the people on the ground that need it. This is causing this is the real logistical nightmare, not only for the International Agency but also for the philippine agencies on the ground because communications are out. The roads are blocked with debris and the power is out as well. They are slowly being restored but what is very positive here is that there has been an international outpouring of support, Financial Assistance and aid. Its partly being spearheaded by the u. S. Its interesting that you mentioned veterans day because the u. S. Marines are out here in force. My producer was in an air field out here in manila earlier on today and she saw the arrival of four u. S. Marine corps ospreys. These are the type of heavy lift air that is needed. It can carry a higher pay load and it can carry and go over travel over a longer distance. Thats what we mean in terms of a logistical effort here. Its complicated by the fact that we also have learned that there is another tropical depression. We dont know at this stage whether it is heading to the affected areas and we dont know at this stage whether it is of the same severity as a super typhoon. Its definitely something thats going to complicate the aid efforts which are slow and hampered out by all. Back to you. Sri, you mentioned at this point that that number of 10,000 is really just a guess. Its a guess thats been out there for a couple of days at this point. Yes. Im just trying to figure out if you have any idea when well know more. This is a painstakingly slow process of getting supplies to people and then deal with beyond. It is. It is. Precisely, yes. So president akido has made it clear that the immediate policy is the provision and, thus, the delivery of clean drinking water. Many aid officials are distinctly concerned about the risk of water born diseases now. There is a lot of water standing around as you couldnt imagine. It is an incredibly grim situation where the death toll continues to mount on a daily basis. I witnessed this in sri lanka. Its a slow leap higher. This is such a devastating typhoon. People were literally picked up by the heavy winds and dumped out at sea. Bodies are being found in trees and bodies are being washed up on the shoreline. Incredibly distressing and grim situation. Sri, this is a situation that looks much more reminiscent of what weve seen in japan with the tsunamis there. Sri will continue to bring us up to speed with the situation. Senator Lindsey Graham says he will try to block white house nominations for key jobs until he gets more information on last years attack on the attack on benghazi. This week the Obama Administration will be he releasing Health Care Enrollment numbers. The white house has signaled that the total will be low. We probable know that after weeks of problems with the Website Health care. Gov. They havent said that before. Of course theyre going to be low. I know. They havent said it. Theyve always said, well let you know. Well let you know. It takes time. It takes time for people now when they salo, we expect to concede that its going to be low. North carolina is like the numbers are have you seen this story, by the way, this morning . Cover of the new republic also at the top of ben whites email. Politico think. Hillarys nightmare. A Democratic Party that realizes its soul lies with Elizabeth Warren. Elizabeth warren may run in 2016. Then ive already see, ive said that de blasio is to new york as i think the president is far left and i think that well, if Elizabeth Warren go west, my friend. Obama has been frustrated by the left of his party. I think he resigns firmly on a relative basis. If Elizabeth Warren is going to run. Right. She might be the one person left of our current occupant. The talker this morning. Well talk a little bit more about it. I will sleep okay at night. With Elizabeth Warren for president . No, not worrying about her being president. Ill sleep fine. Coming up, why big banks are talking about disabling traders. In the sunday night game drew brees completed 34 of 41. Four touchdowns. He led new orleans over dallas, pretty amazing. The jets just beat these guys last week. The saints ran up an nfl record 41st downs and a franchise record. 625 total yards of offense. Another reason they need to play these games, because you cant assume anything before the games are played. Anybody can beat anyone on any given day. Most exciting game of the week maybe my poor bengals against the ravens. Here it is, andrew, i told you about this. They throw it into the end zone. Watch how many times its tipped. Two seconds left and then they went into overtime and lost. Oh. And the announcers kept trashing ray rice. He pulled off the biggest play to keep the ravens going after they got the ball in the first overtime. The bengals became the 16th team in nfl history to lose two straight in overtime. That was that was really painful. They lost to miami. So now they look normal again. After the jets they look super bowl bound. Now they look normal bengals. As we head to break, lets check on todays National Forecast with the weather channels alex wallace. Hey, alex. Good morning to you. Dealing with a little wintery weather around the great lakes. Actually following a cold frontal boundary that will be moving through. Out ahead of it we have showers. Parts of the eastern lakes will start out as a bit of rain. As we move through the evening, you can see snow mixing in. Chicago, snow here for us as we head into the afternoon there for you. Behind that system very cold air going to be infiltrating the nation and the rest of the entire eastern half of the nation. Well first start it off with the upper midwest. Today your High Temperature in minneapolis, 27 degrees. Well eventually see some of that slip down to chitown. Coldest day here in the northeast will be on our tuesday. Mid 30s, 40s for the east coast bundling up there. The south is going to be chilling down by wednesday. So get those big coats ready. More squawk box is 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. More shopping. More dining out. More traveling. And along with it, more identity theft. Every time you pull out your credit card, shop online, or hit the road, you give thieves a chance to ruin your holiday. You cant be on the lookout 24 7. But lifelock can. Protecting your identity, your bank accounts, even the equity in your home. When lifelock detects a threat to your identity within their network, theyll alert you by text, phone, or email, protecting you before the damage can be done. Act now and well protect you 60 days risk free. No one protects you better than lifelock. Try lifelock protection 60 days risk free and get a special holiday gift a document shredder. A 29 value free. Jee big jee big banks are reportedly considering disabling chat rooms. Mounting scrutiny from regulators and, guys, the regulators are focusing on this in part of what happened to libor. It looked like there was collusion between different banks. One of the chat rooms that they talked about is something called the cartel. They could have named these things a little more clearly. Can i take the opposite of this. Theyre cesspools as well. Are you on chat . No, i wouldnt go on one. Thats where the dregs of humanity spend their time making comments. My sense is that every time they try to block a site, the zbeen anys out of a bottle. If the banks say forget it, we cant do this, they find out youve gone around it with your ipad. They have a much easier way of tracking. Make sure youre covering it. The policy is you shouldnt bet on these things. The sneaking is those arent chat rooms that youre trying to keep on your personal i dont think incognito works at a bank. Oh, see you say incognito. I think youre talking about miami. I think youre talking about the dolphin. Its weird. The kids name is incognito. I know. You can go to incognito online. I know. If you spend any time on this chat, do not take sorkin and search chat rooms with sorkin. Im telling you dont do that. Have you done that . No. This is ten years ago when i used to look at that. These people, they have Nothing Better to do. Theyll argue all day long with epithets. The internet theres good things about it but theres also a terrible under side. The seemier side. That is true. Lets talk about Johnson Johnson. J. And j. And amazon are in a little bit of a tiff. The wall street journal says theyre in a dispute that amazon isnt doing enough to prevent people from selling expired j. And j. Products. They are a growing business for the ecommerce giant. Essentially Johnson Johnson wants to make sure theres not pirated goods, goods that are expired, goods bad being sold. Amazon doesnt want to deal with it. Its a hublg prge problem. Theyre the store front for so many other third party sellers. If they cant police this stuff, i think theyre going to run into larger problems. Similar problem ebay has. Thats where the money is and margin. Theres very little margin in stuff they sell themselves. Did you read this other story . What story is that . Amazon will start delivery on sundays under an agreement with the postal service. Really . Thats great news for the post office. Why dont they do it on saturdays and save us a buck. The post office was talking about getting rid of saturday delivery. I dont know. I think that would be great. Partnering up with the private sector might help the post office. Offering something you cant get from other private sector things. The post office, it will never be solved. Theyre like the fed. Theyre like the fed. We give them so much money. Theyre like the fed. Thats the perfect i think thats a great thing for the post office. Do you understand thats the way government run corporations. You will never go bankrupt. Thats why obama care will never go bankrupt. Thats a good idea of thinking outside the box. Partner with a private company like that. Amtrak. Any government thats the beauty of it. They never go out of business. They go forever because you just, you know, raise taxes. Lets hope they do. I like that. I have a real free market coming up. Also, office depot is the latest company to consider moving jobs out of illinois because of a tax issue. The Company Completed its acquisition of office max last week. Now it has to decide where to base its headquarters. Officemax was in naperville, illinois. And theyre willing to stay in illinois if it receives relief from the states taxes. A bill offered the chain 53 million in tax credits over 15 years but that bill failed to make it to a full senate vote during a session that ended last week. Now lawmakers arent likely to reconvene next month at the earliest. While they have given away a lot of credits. They raised their taxes to make it the highest tax state in the country, they started giving out all kinds of special deals. Now the governor says hes not going to sign anymore Company Specific deals until they deal with the tension under funding. Welcome to the funbilility of money. Your new mayor, well see what happens. You can move wherever you need to. Look, the idea of raising your taxes or setting taxes at whatever you wanted as a state is one thing. Then giving special deals to anybody who complains and is big enough to complain i think is the worst possible solution on every single situation. You completely hose the little guys who dont have enough heft to get their special deals. Sears got a special deal. They said any special company that had 40 million or some huge number of sales didnt have to be impacted by this. The idea of raising taxes and cutting deals left and right, that is the worst crony capitalism ive ever heard. That is crony capitalism. Theyre making deals left and right. Thats the states prerogative. They have lower taxes overall. They have lower taxes. They also make similar types of deals. Its not just that the rates are lower. They start low and they get lower. Thats true. Sort of a race to the bottom. You want me to host you out in the short hills . Just to look around. Dont come rushing out with everybody three months from now when it becomes clear what your guy is going to do. Are you talking about my guy being mr. De blasio. Yes. Refer to him as my mayor. Do you want to why dont you just come out and try it on for size. Look snarnd around. Go to summit. Millbourne. Well tool around town. Dont come rushing out with everybody. Can we go to the mall . You can go to the short hills mall, best in the country. Go to the mall. Beautiful. You can lead a horse to water. Let me know. Dont call i think he just called you a horse, andrew. Yeah, i got that. A what . A horse i could call him the other thing like a donkey, but i wont. Okay. There you go. When we come back, a stronger than expected jobs report. Questions about the fed. Stocks at record highs. These are the issues investors will be dealing with with the week ahead. Well talk about that right after this. Plus, an exciting day tomorrow. Dont miss Andrews New York times deal book conference. Among the headliners, we have dan low. Cnbc is the exclusive broadcast partner so you can catch the highlights starting right here tomorrow morning on squawk box. Peace of mind is important when youre running a business. Century link provides reliable it Services Like multilayered Security Solution to keep your Information Safe secure. Century link. Your link with whats next. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. 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. Good morning, and welcome back to squawk box here on cnbc. Im bill along with becky and andr andrew. Making headlines, chicagos Credit Rating has been lower. Three steps on 8 million of debt. Fitch is the one were talking about cites the citys growing unfunded pension liability. The agency cut the rating on 8 billion of chicagos go, general Obligation Bond from a minus to double a minus. Thats the city after detroit, theres differences obviously, but one big city that they kind of talk about in the same breath. And markets are getting a boost from a batch of strong Economic Data including that jobs report that we saw. Were also looking ahead to Janet Yellens fed confirmation hearing later this week. Joining us on the markets, jeff mortimer. Bmi. Were going to start saying bmi. They dont say bmo. Its bmo. Weve got to keep this straight. I think he thinks thats hilarious. John ylanski is on the set from moodies, not moodys . Yes. Do you expect the revisions were good, too, so it looks like we got too negative on the shutdown and on the general back drop. Is it better than we thought and have you racheted up . Jobs were much better than anticipated. The Unemployment Rate went up. Were also looking at the, what, lowest Labor Participation rate yes. In 35 years. Thats incredible. I think what it comes down to is whats happening on the spending front. Its really not all that great. I mean, here we have this significant decline by the Unemployment Rate. Were getting jobs growth yet real Consumer Spending is growing by less than 2 yearly. I think thats not going to escape the eyes of policy makers. The ten year still went up, the yield did. The market rallied. Theres a perception that the labor market was better than people thought. Was it . That was my first question. Its doing better in terms of jobs, income growth, no. Average Weekly Earnings up by only. 1. 100,000 of the jobs created in the month of october are in the relatively low paying areas of retail. Wasnt that good of an october . Wasnt that strong. We were looking for 120. It came in at 204. Again, as i said, half of those jobs, about 100,000 from retailing and leisure and hospitality. Not exactly high paying industries. Jeff, do you have any mom and pop clients at bny . Do you see retail interests picking up at this point to a point where you would say its starting to get negative for the market . I also read the article in the wall street journal that you were referring to this morning. The conundrum faced by the individual messenger who is not in is should they get in . Were at alltime highs. I remember being interviewed by mark haines back in april of 09. He asked me what would it take to get the retail messenger to come back into the equity markets. I said, nothing that a double wont care. That was my answer way back when. Were certainly up 175 since then. About 4 1 2 years or so. Flow data shows that individual investors may have just started to come into the market now. So the great rotation, if it is happening, were in the top of the first inning. Thats the data that we see. Our clients are much larger than that typically, joe. Thats what im hearing and reading about. Because it said mom and pop i sort of thought you know maybe theyre right. The people theyre talking about are 60 years old. Mom and pop pop almost sounds older than you know, its not someone who has infants at home. Do you think its mostly people that have accrued over time assets and theyre in there these are the people we think of sort of preparing for retirement type people . I still dont think theres any incitement among the vast majority of people in their 20s and 30s for stocks, is there . I would agree. If you look between the lines, right, the older people are the ones with the wealth that is built that have actually money to invest in that equity market at all. The Younger Generation is still getting on their feet. Theyve had a ten year flat market. They are still accumulating wealth. This is starting to trickle in now. I think the journal has that run. Its pointing out that its happening. Were the flow data shows it was this summer. The spike on taper talk. So a lot of people left the bond market, went to cash. Some, of course, left the bond market and went into equities. If that is transpiring as i said, we are in very early days of that transpiring. Its the last individual investors that you have to worry about coming in, not the first one. So whim i look at the flow data with in great detail, nothing about that disturbs me now that were at the end of the bull run because the individual investor is back. If i dont want them to taper, then i should be happy with what youre telling me . Things arent getting that much better . Youre going to get a taper eventually. You should get it by april, not by december. Friday might come in december. Youre going to need some strong numbers for the month of november. Youre going to need a very strong Holiday Shopping season. Theyre not going to be certain of that. Although oil prices will help. Thats helping right now. Thats down to 3. 25 per gallon. I think its a little bit too early to expects a tapering to be announced at the december meeting. At the earliest. Still again they have this decline by consumer confidence. I know. Hes here. I thought it was the other ransick. Yes . I will introduce him in a second. Hold your horses. Wow. Yes, hes a handsome man. Babealicious. A man like that, took my breath away. What were we talking about . Consumer sentiment. Never mind. Lets go to break. Youre finished. Good luck to you. We have more important things to do. Coming up, a man whounder stands the importance of entrepreneurship. Bill ramsick. He is joining us on the set. He made his name on Donald Trumps apprentice. We have the details ahead. Julian know is not here but bill is. Great to see you here. Good morning. Were back in just a moment. 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. I have obligations. Cute tobligations, but obligations. G. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Welcome back to squawk box this morning. Futures, we have a green arrow. S p 500 up close to 23. 5 points. The nasdaq up 1. 5 points. Also making headlines this morning, Justin Biebers manager, starting a music Investment Fund. Scooter braun is starting a 120 million venture. Its a coalition of managers and musicians. The Investment Fund is designed to strengthen their position in the industry. Hes the manager of bieber, carly rae jepsen, call me maybe and im going to get psy. Well call him psy. Thats spelled psy. Excuse me . Nothing. Thank you very much. This summer soft maker intuit launched a competition to showcase Small Businesses. Our next guest is an entrepreneur. The winner will receive a fully paid and produced commercial during the 2013 super bowl. Joining us is bill ransick. Hes the winner of the first season of thethe apprentice. And the star of julianna and bill. That was not good. You were here to talk about the kicking off. You have the four finalists. You told these Small Businesses they were in the finals . Thats right. We launched it here several months ago and we had tens of thousands of Small Businesses apply and then all 8,000 intuit employees voted. We narrowed it down to four. I flew around the country showing up in person letting them know they made it to the final four. We couldnt have found four more diverse companies. Was it like the sweeps stakes when you walked in and said you guys are in the finals. I felt like ed mcmahon. They were going crazy, tears, pretty exciting. Who are the finalists . Lets talk about the four companies . We were running the whole gamut. I started in raleigh, north carolina. It was a husband and wife actually, boyfriend girlfriend, soon to be husband wife. They came up with an idea to create natural dog treats from beer they were brewing in their bathtub. Spent barley. Theyre operating in their kitchen and theyre hoping to obviously win this commercial because im sure theyll be moving out of their own kitchen and into a major building barley labs. Is there any alcohol left . No alcohol. Completely good idea for dogs. I was thinking, thats a treat. Thats a treat. For my dog. Rrrrr. Then we went to duluth, minnesota. It was a guy who worked in Corporate America. By no fault of his own he was downsized twice, decided to start his own company. He started a locally laid egg company. Theyre all natural. Free range. Solar power the hen houses and just a total family business. Kids work in the business. Thats their motto. Get locally laid. Theyre getting a lot of play out of that. Several mortgages on their house. Hes putting it all in. I love the get locally laid. Locally laid. Napa, idaho. Three guys, one guy was out of work for eight months. The other guy was running his family dairy farm. Its been in business since the 1880s. They had to close down. They get together over some beers and they come up with this idea to create dairy poop. I said that right. They use the ppoop from the cow and make it into fertilizers. Oons, i pooped my plants. Nice. Locally laid and i pooped my plants. We understand where your brain is. Think about this. The last one is a Company Called goldilocks. Its a young lady who wanted to help young girls get behind. She was an engineer and came up with this board game. Shes inspiring young girls to take interest in engineering. Shes really doing well with it. Three companies, completely diverse. One will win a commercial during the big game. The exciting thing is to think about where they will be during the big game. 30 seconds goes for how much . 4 million. Plus, were producing it. Wow. And reaches . 40 million, 50 Million People . Yeah. Thats a way to get on someones radar. Yeah. Take, for example, the dairy poop. If they do get this commercial, its going to be very easy to call up the ceo of ace hardware or home depot and say, hey, these guys are going to be the biggest commercial of the year. Im sure they would love to feature their product. They have to get those products in before the commercial so when people show up after the commercials its in the stores. Thats true. This is the important thing that intuit is doing. Brad smith is putting together a team. Were going to help these people get ready. Were not going to feed them to the lions. A website up and ready to handle the traffic. You need the product out there and available. Thats right. Bill, earlier we were talking about tax rates in different states. Your home state of illinois has the highest business taxes in the country. We own a restaurant. You own restaurants there. The thing thats a little crazy is there have been exemptions handed out left and right for Big Companies like sears to keep them from going sears to keep them from the state. Does that penalize a Small Business owner . Obviously im shining a light on the importance of the t Small Business owner. They need all the help they can get. I was all over the country. People are struggling. Getting two, three mortgages on their home. They need the break. Today want to keep jobs in the state and keep taxes coming in. Its a struggle. It is a struggle. Andrew has something. This is a real question we were talking about during the break. Joe and i are talking about hair, potential hair loss. I see you in ads constantly for rogaine. You are a real spokesman. I am. You swear you didnt have plugs. As god as my witness, no plugs. You already had this hair . My hair was thinning. It was thinning here and here. I try to cover it up. Look at the before and after pictures. Comb your eyebrows up to your hairline. Thank you. Those are unbelievable. Is the unibrow an issue . No. You look like you are brooding. A brooder. Okay. You need to allay some of my fears. I have read the side effects of rogaine. Yeah. Thats a different not that that hair can grow anywhere and it wont stop growing. I have been using it for years. It really it works on your yeah, look at that. I see it. You can go to walgreens or cvs. Listen to me. I wont be disappointed about certain of my other abilities . Thats a different drug. I could use a little bit of that probably. Just to lower me to a normal [ whinnying ] im like a stallion. America needs to vote. Small business big game. Com. Okay. I will be here at the end of january. Hopefully i will be invited back with the winner. Definitely. Since we watch your reality sow at home, do you really think you can get giuliana to move to chicago . Definitely. Our son will go to school in chicago. You have a few years. Thanks for coming in. 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Bachelors and bachelorettes celebrate the single life. Online sales are expected to hit 5 billion, 20 higher than 2012. When we come back, the top stories including a number of morning deals. She loves a lot of the same things you do. Its what you love about her. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, seek immediate medical help for an erection lasting more than 4 hours. If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Budget budget battles, the fed and more. Trying to rise above the washington rhetoric and getting to issues matter with your money. Tracking the momentum moves. What investors need to know pr the trading week ahead and why some think the market may be getting ahead of itself. We are climbing the tower of power this morning with the ceo of American Tower to talk cell trends and how his company could be a way to play the Service Providers as squawk box begins now. Call me any, any time call me good morning, everybody. Welcome back to squawk box on cnbc. Im becky quick here with joe kerr nanne and andrew ross sorkin. The numbers are in positive territory. Dow futures up by 34 points. Its an odd number there. Normally you would see more coordination. Well keep an eye on it as we get closer to the opening. In the headlines, several deals in the news as we open a new week. Rare Disease Treatment specialist viro pharma is being purchased by shire for 4. 2 billion in cash. It is bought at a premium. Switzerlands novardis is selling the blood transfusion testing unit for 1. 7 billion. They have been reviewing which businesses to keep and said it will sell units that are not among the market leaders. Also trans ocean struck a deal with carl icahn. They will pay a 3 a share dividend and cut the number of directors. Icahn has been pressuring for a higher payout of 4 a share. The world is responding to a cry for help from the philippines after the typhoon may have killed as many as 10,000. Angus walker filed this report overnight from tacloban, philippines. Reporter this amateur video obtained by abscbn shows the moment of impact. A wall of water 20 feet high by some accounts crashing into tacloban, leaving the city of 220,000 in ruins. With winds of 150 miles an hour, typhoon haiyan knocked out communications and destroyed 70 to 80 of structures in leyte province and nearly all in tack the lo fw tacloban. Food and water are in short supply. People cover their noses to avert the smell of bodies. This pregnant woman lost 11 members of her family when the waters rose. She says, right now, all we can do is survive the day. I dont know what will tomorrow or the day after that. Taclobans airport was badly damaged by raging flood waters. Now, hundreds wait there, desperate to leave. The young and the frail allowed to go first. This woman is 63. She barely survived. Her family didnt. [ speaking in a Foreign Language ] reporter she only has what she stands in. Security now a concern with tv fo footage showing widespread looting. Dls there is a call for marshall law. A massive relief effort is under way as the situation grows ever more desperate. Authorities say at least 2 Million People in 41 provinces for affected. Horrible situation there. Obviously the relief efforts are going on. Help is appreciated. Lets talk about Global Market news. We are watching oil prices after the latest round of talks ended without a deal this weekend. Negotiations were aimed at a Controversial Program in exchange for easing economic sanctions. Oil prices this morning have been a little bit lower though the deal seems like it fell apa apart. They are down by 32 cents for wti. 94. 28. Well have more on iran in a little bit. A bipartisan budget conference expected to resume this week. Joining us now, our guest host for the next two hours. Judd gregg is a former senator of New Hampshire and former chairman of the Senate Budget committee. Hes so compelling people we ask to oppose him shrink. Rendell was afraid. Actually hes just late. Did you watch the eagles . I watch the patriots. They didnt play this weekend. They are good every year. I think theyve got it together. As far as the budget goes, the problems that we have seen with the president in terms of obama care rollout. More of the articles are coming out that hes unfortunately having a tough second term. Some of his personal popularity has been damaged recently. Does that improve the prospects for something bipartisan because he s not in as strong a position or will that make it worse . Lets look at it as the glass half full. He needs to govern. Congress needs to govern. Republicans need to show they are willing to govern. Where is the best place to start . Well, with a budget agreement. Its not a big deal in the sense that its a big number in the context of what we are spending. You have to reduce the budget over ten years by about 4 . Or reduce the rate of growth. 2. 5 trillion over ten years. We have done enough discretionary . True. We did 900 billion in 2011. Now the sequester is 1. 2 trillion. Its arbitrary. It retards the economy. The president has put good deals on the table. The speaker of the house put good deals on the table. They both need to get in the the room and make the deal. The big deal youre not getting the big deal. In the next three years . No. You will get the mini grand bargain. Sad. Is it enough . It can be close to enough. You have to be more optimistic. I dont need him sad on moond. Are you getting sad . Well get the large meeting grand bargain. Starts the whole week off. The large mini grand bargain replaces 1. 2 trillion of the sequester which you need. We have a trillion the in entitlement savings and some path rate to tax reform that generated revenues through growth. Republicans may go for that because of the defense industry, right . Yes. The sequester is so arbitrary and counter productive to discretionary activity such as defense and things we need like investments and nih. These are cuts which already both of the discretionary side which is 30 of the federal budget has already been cut by 900 billion. You are lloyding another 1. 2 trillion on top of that. It can occur. In the process of it occurring you are not going to get good results. You will get arbitrary retraction of the government in area where is the spending has been restrained. Where you need the spending restrained is where the spending occurs. Willy sutton said he robbed banks because its where the money was. Medicaid, medicare, social security. Did you see the wall street journal . No. Writing about the nih, on the cusp of exciting stuff. Extraordinary organization. You could talk sense into both sides of the aisle. You should be able to. Getting back maybe now you can. Both sides have very serious issues. Wounded. Our party has been led by folks who took us down a side road which is a dead end on the repeal of obama care which the price is passing the debt ceiling. The president is in trouble because he put forward the obama care proposal which isnt doing at all. Hes doing the opposite of what he said he would do and taking Peoples Insurance away. If they want to govern, reach an agreement. What about immigration . The House Republicans are holding that up. Well, i think there is a pathway to reach an agreement on immigration. There is a pathway to reach an agreement on a mini large bargain doing the budget first. That would be the easier one. Immigration the politically difficult. Thats just running the government. It would be nice not to do something again in three months, three months after that. Of course. We shouldnt go through the crisis. They are selfinflicted, artificial. They affect peoples lives and the economy because they slow the economy system is there enough to get the financial deal and the budget and immigration . Can you get it all done this year . Not this year. Certainly before june. I think the pathway to getting it done goes through the politics. Both sides have to feel like winners. Both sides would be winners. There wont be another s setback on the debt ceiling problem . No . Are you a lobbyist or something now . Im trying to sell capitalism, entrepreneurship. Hes a lobbyist. Do you lobby . Not really. Another part of the house. Another part of sifma. Yes. But youre p in charge of all of it. Im one of the good guys. I lobby. For this organization . For things that would be good. Presents its views and tries to convince the government that the views make sense. I work hard to make sure thats accomplished. You will not be Elizabeth Warrens campaign thats where i was going. Will you be her Campaign Leader or run her campaign for president . No. No. You know, my problems with senator warren are that i dont think she appreciate it is importance of capitalism in markets. We already have someone like that. So we dont need another. Well come back to the topic. Shes an exaggerated version of that. She is spjudd gregg will be with us throughout the morning. Well talk next about markets around the globe. Concerns about when tapering will start, a stronger than expected jobs number. Record highs for the dow. Its what you have to watch when the momentum moose makes its next move. Remember the bond market is closed in honor of our veterans. The futures this hour for the stock market show the dow futures are up 35 points above fair value and s p futures by 23. I wonder if thats i believe its true. We have checked. There is a reason in terms of a dow stock or a big s p component. Let us know why. Take a look. Squawk box will be back. Welcome back, everybody. The dow coming off a record close on friday, even as the better than expected october jobs report fuels chatter about a report this year. Chris, lets start with you. You think it is likely that a taper can come in december. There was gossip due to the papers from two top fed economists last week that they would taper in december but link it to dropping the threshold. I call it a trigger. He calls it a threshold. They are trying to tell people we arent going to be raising rates longer in the future. But at the same time well start the taper process. Does he want to set the stage for his successor who was in a position of continuing the taper or being stuck. He thought it was a hardship on americans when unemployment was 6. 1. If he thought it was a problem ten years ago he certainly thinks there is a problem at 7. 3. Hell push as long as he can to ease, ease, ease. Do you want the to taper to begin in december . I dont really care if it begins in december or soon thereafter. I want it to happen. The interesting thing about fridays action is remember the initial reaction was negative. Down. Stock market sold off on the idea the taper would start sooner. Then we had a move upwards. Because . Good news is good news again. The economy is much stronger than people believe. The private sector is growing at a faster pace than looking at the headline number that the strength of the economy will drive earnings. The next leg up in the market will be driven by earnings and sales, not by p. E. Expansion. We had all but written off the friday job ohs report before we got it. We figured there was no way it could not be affected by the government shutdown. We dont Pay Attention to it. What does it tell you . Was there anything weird in the numbers . Well, the period thing was they revised up the the prior month a lot which makes me think they didnt count it properly after the shutdown it came out october 22. But, no. It looks real. Its just you have to lay aside for a moment the household survey, the Unemployment Rate. Its a mess. There is evidence even with that, that even though government jobs went away temporarily, boosting the number, some of the other categories suggest the Unemployment Rate when things normalize after post shutdown, unemployment could be 7. 0 in a heartbeat, like within the next two monthly reports. There was good news. I think its real. If we get down to 7, then what . They will wind down tapering completely. Youre sure . Thats what he told us. Hes changed his mind. There is no magic number on that. He keeps pushing out the goal posts. He thinks, you know, there are problems out there. You think she thinks the most. Janet yellen has research saying she put out excellent charts i use in my own reports that, no, shes not in favor of raising rates until a year later. September 2016. So we are talking about zero Interest Rates for eight years. What will that do to the economy Going Forward . Its a big mistake. Ed, you say you are bullish on the stock market. Judd gregg said he thinks it is likely we could get a mini deal in washington. If thats the case what levels do you expect for stocks in the early part of next year . Overall the market will go up from here at roughly the rate that earnings go up. I wouldnt be surprised to see a 10 run on earnings. We should have a decent year next year. We have had a better yearen this year than anybody predicted going in. A lot of it was due to multiple expansion. Thank you both for coming in today. Still to come, a stock that towers over the competition. The ceo of American Tower will talk business success. The stock is close to a fiveyear high. How this company and other tower reits might be a great way to play the wireless market. And highlights from the big games yesterday around the nfl. Big game this week is stanford sc coming up. Big rivalry. Well be right back. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. A a lot happened yesterday if you were watching. Actually the one game got over so i got to watch the bengals. Shockers and great plays around the nfl. Here are the bengals battling back 170 with two seconds to go. Looked like the it was over. He threw it in the end zone. A. J. Green, after a couple of tips, it fell right into his hands beautifully on the andy dalton hail mary. The bengals got the ball in the first overtime. They lost yards, couldnt kick a field goal and the ravens did. Won 2017. The colts were weird. Getting blown out by the rams. 388. Austin had only two receptions in this one. Both were huge touchdown plays. Andrew luck throwing three interceptions. Let down after the colts beat manning. A short week. They will play thursday against the titans. Drew brees and the saints ripped up the dallas cowboys. The saints break an nfl record with 40 first downs in a single game. 4917. Carolina watched, too. Defense shut down the 49ers. Andrew luck. You have the same first name as him. Good name. Andrew. Never andy. The do you know what song this is . You should know as a new yorker. The dead. Grateful dead. Coming up next, what is next for the greenback . The dollar staging a rally after the fed scaled back the bond buying program. We have a closer look at currencies and the ceo of American Tower and how they stand to profit the towers sometimes covered up by tacti and other things. Well be right back. Yeah, im married. Does it matter . Youd do that for me . Really . Yeah, id like that. Who are you talking to . Uh, its jake from state farm. Sounds like a really good deal. Jake from state farm at three in the morning. Who is this . Its jake from state farm. What are you wearing, jake from state farm . [ jake ] uh. Khakis. She sounds hideous. Well shes a guy, so. [ male announcer ] another reason more people stay with state farm. Get to a better state. Welcome back to squawk box the this morning. In the headlines, the Senate Banking committee set to consider the nomination of janet yellen as fed their on thursday. Shes expected to garner enough votes to have her nomination sent to the senate. But shes like tly to face toug questions about the easy money policy of the fed. I dont know how easy they will be. Fedex. Com has a deal with the u. S. Amazon. Com has a deal to deliver on sundays. Somebody just tweeted that they were in cincinnati and they got something on sunday. I dont know how. Do u. P. S. And fed ex do it . I dont know. Amazon will expand to other stories next year and gas prices continue to fall. Purchase prices are down more than 14. 5 cents in the past three weeks putting the average cost of a gallon of gasoline at 3. 22. Joe, not happy about it. Im less so. You know me. I dont drive. It works out. Let me get this video off. Ed rendell has made it. Former mayor we were down we did the show from your great city. The city of brotherly love. You were mayor back then and graced us on the set. I remember. I was also d. A. Interestingly of all the jobs we have held d. A. Is the one when i called a Business Executive i always got through. As the d. A. Never got through as governor or mayor, but d. A. I got through. We have solved a lot of problems without you here, with judd. I dont know what says. Refund the nih. Give the republicans what they want on defense cuts. Do a mini deal a large mini deal. And dont shut down the government again. We have a president who might be willing to bargain. Give the president some credit. Hes been for things, you know, that have been good on the entitlement phase. You guys always say that. Huge. In the second and third decade, chain cpi is huge. We dont know if he could have delivered. Thats right. I think the biggest test is if we really did do either a bigamy any deal or a big, big deal whether the president could deliver to democrats. Thats as much of a challenge as tax reform that does something to reduced rates and increased revenue. You know people who hate the Government Point to things like this for why the government shouldnt take on big sophisticated projects. With with good reason, by the way. To obama care. Medicare does a good job at lowest costs. I actually am a huge admirer of eds. Here we go. Comma, but. But if you factor in fraud, waste and abuse in the medicare number you are up to 18 to 19 . Its much higher than private sector insurance costs. They have higher administrative costs. By twice. Maybe sometimes two and a half times. The interesting thing is guess who commits fraud, waste and abuse. Republicans. No. The private sector. Good gesds. Guess. You mean the private insurers . Thats where the abuse comes from. Submitting things they shouldnt submit. The government does a lousy job overseeing it. The reimbursement system is all messed up. Instead of rewarding outcomes it rewards utilization. If its too expensive, if health care is too expensive with hospitals and doctors and drugs and medicine, why would you oh think adding in the government bureaucracy and paying for that on top of everything, why is that a better way to do it. I View Health Care as the same as immigration now. Clearly, the immigration system we have now is the worst of all outcomes. The Health Care System we had didnt work. Costs were spiralling up. We had 45 million americans without health care. People were driven into bankruptcy. The question i agree. It could have been better. Incrementally. Could have had a bipartisan. I believe if there were republicans and people attacking obama care and obama care unfalls off we are looking at single payer down the road. No, no. You can let the states do individual exchanges set up by the private companies. States, thats interesting. How about the president saying if you like your plan, you cope it. He should have told the truth from the beginning. No question. Every state imposes conditions. In pennsylvania, if judd had a Health Insurance company he couldnt write in pennsylvania unless he covered autism. Because i decided middle class families were driven into bankruptcy if they had an awe us the i tick kid. Go to other states, is autism covered in New Hampshire . I dont know. It could be. My point is i understand. Theres going to be differences that could be destructive. If you are a business, why not be for single payer . That was my suspicion. We end up with single payer maybe that was the intent all along. In canada your chances of getting an elective significant surgery like a hip replacement or an activity dealing with orthopedics, you have to wait two, three years so you come to the United States and you have it done. You go to canada to get prescription drugs. The system i would design is like medicare. Judd can buy up. I can buy up. We can is have single payer plus. So you have a baseline. A baseline that covers everyone. Gives everyone a prescription. If you were mayor of philadelphia. Dont go there. Lets get to the tradinging block. Mark chandler at Brown Brothers hariman and Steven Schork from the schork report. Thats not a stork. What is that thing your logo . Ibis. You can ask the governor. Wir both from philadelphia. The governor knows it is an ibis. Isnt that an analyst ratings agency, ibis . Never mind. Anyway, mark, is 130 the next flash point on the euro for the collar or are we going above 1 35 . I need to know for the summer. You are talking about the incompetence of the u. S. Government on veterans day. Its one of the pieces that we need to consider about the efficiency of government. The dollar, i think the fed moved ahead of itself thinking it could taper and the rate cut isnt the key rate in europe now. The are refi rate is closer to the deposit rate at zero. Think the move will be ineffective. I look for the euro to climb higher. Maybe 13450 or 13470 before the dollar gets the upper hand. I think it will be on yellens testimony. No one would denigrate our armed forces but there are people who think the governments role is building roads and being about 7 of the economy, not 50 of the economy. Are you saying we are dispa rajjing the government by talking about government inefficiencies. The government executed world war ii well. People didnt talk about the waste in the government at that time. To conflato the two, the post officer or the dmv or the way Government Programs are run with our vets, i dont know. Its the same governments we dont trust with your business but we trust them with security and military. We have to. Thats a role some people think is the governments primary role. I dont want to say infrastructure. Ill get rindell on another infrastructure build out for another 12 trillion. Short track, its been a bright spot for christmas that you havent had your way with 150 oil. Yeah. We have come up to 20 a barrel in the last two months. We had a bubble. And then our keystone cops routine. We are back to 90 oil. Back in the area where i think you will see buyers at that level. Im skeptical. Refineries are coming out of the maintenance season. They will start to boil oil, consume more oil. We have crude oil in the United States at the highest levels since 1930. Product supplies are in surplus. Productions coming online in the north see, in libya, in the mid continent United States. More importantly we have greater acce access. So we have a lot of supply already and a lot more supply to come. 95, new york. I think because wall street loves this. You may see the boys come in and try to buy it here. From a fundamental standpoint, i think we can break 90 a barrel and get into the 85 90 range. Gasoline prices, 3. 20. Thats 50 cent as gallon cheaper than where we were in 1980. Going into the holidays, americans should take advantage. Its a unique, great opportunity. You would think the writing is on the wall for an eventual exit by the fed. As long as we are not at the beginning of the process you would think commodities, gold, any of the things that benefit from the weaker dollar, eventually it will go the other way. I would figure, thats the trade at this point. Thanks, guys. Mark chandler and steven stork schork ibis, whatever. Thoughts on cushing iran ended with no deal yesterday. Secretary of state kerry says no deal has been reached. Talks resume november 20. Michelle joins us with more. Two key things. John kerry testifies in front of congress tomorrow. There is no official deal but hes bringing back something, some framework which hell explain to congress. I expect well get more leaks about whats within the framework. The second thing is john kerry is talking down differences and disagreements between the alleys saying the deal didnt happen because of the iranians. Why do we think it was france france . Over the weekend the French Foreign minister said france would not participate in a con game and the deal on the table was a suckers deal. So people thought france wasnt happy. John kerry is trying to do this for the art of glenmore si, i suppose. Netanyahu, leader of israel, says the shutting down of not one single centrifuge is part of the deal. Going into the weekend all of the reporting was contrary to that. On its face that makes no sense. Heres what john kerry has said today to netanyahu. No agreement has been reached about the end is it game here. Thats the subject of the negotiation. One thing we can say with precision. On the continuum of completely shutting down Irans Nuclear program in every shape and fashion to the other end which was to let them keep it but have Intrusive Inspections it feels like it is leading toward Intrusive Inspections and they will keep capabilities which is not what the United States wanted ten years ago but now is something thats certainly on the table. One other piece of news you should know is reuters has done an invest gay ty report on the Supreme Leader of iran, the ayatollah khomeni and believe the empire is 95 billion. Continuing the long tradition of ripping off people with the shah as well. What do you think of the potential deal . I dont think it will happen as long as netanyahu is so aggressively opposed. He minced no word about his belief this would put israel at risk. I dont think we can sign onto a deal where we put our primary ally in the middle east at risk. I agree. The french probably got it right. Weve got to keep trying. We cant make up progress and Say Something thats really illusory is progress. Thats what we are hearing here. If there arent going to be centrifuges shut down i dont know if i believe it at this point. It makes the no sense. Their heavy water was france leading us on the syria situation, too, being more aggressive. Twice now they have moved to the right of the president. The french are showing the world leadership, the position we used to occupy . Shocking. Is it . Twice now they have been more to the right of president obama. With hollande in the charge. Astounding. Wants to tax the rich. Well see what happens. But tomorrow will be key to see what he says. The other thing i would point out is all my reporting indicates that the iranians are desperate for a deal because economic sanctions have been painful and punishing and they are running out of foreign exchange. They buy bread, subsidize fuel. They have huge inflation problems. So we should hold out for something significant. We have leverage. As you said right. Michelle, thank you. Thank you. Give the secretary of state his due. He said they are not foolish. Right. I have a huge amount of respect for john kerry. Hes a serious guy, understands subtleties and what a significant deal would have to involve. Lets hope it fell apart because they didnt have the right deal. Judd and ed are staying with us. Michelle, thank you very much. Up next, the ceo of American Tower joins us to talk about the wonders of wireless and how his company is poised to take advantage of the next big wave of technology. Squawk box will be back. announcer at scottrade, our clients trade and invest exactly how they want. With scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottradeproud to be ranked best overall client experience. Peace of mind is important when so we provide it services you bucan rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your Information Safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. Customer erin swenson ordered shoes from us online but they didnt fit. 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 back. As the consumer appetite for mobile devices grows so are opportunities for companies that build communications towers. Jam taiclet is president , chairman and ceo of American Tower. Good morning. Good morning, andrew. We were talking practical issues because mr. Rendell, you use what kind of phone . A flip phone. Its a disaster. We have to talk about towers. I want you to explain. You said the phone gets better reception than an iphone. Telephone reception. Right. For Voice Applications the flip phone has a better signal. People laugh at you. Who is the maker . Motorola. It has to do with the circuitry in the phone and the network itself. Those phones were designed primarily for voice and data secondarily. Iphone, samsung, galaxy, they are designed for data and entertainment primarily. You can also use them for voice calls. There are engineering tradeoffs with the hand set. The original trade offs favored the voice. Ed was ahead of his time. Back to the future. A selfish question. Dropped calls. One dropped call happens to me every time across the George Washington bridge. Its on verizon, ile apologize if you are watching. What is that . Signal strength at the cell edge. The cell is a radius of signal strength. As you go farther from the source there is a bell curve. When it is too weak to hold the call it drops. Then it picks up. So you dont have enough towers not you. But verizon or at t needs to rent more space on a tower. Generally lease space on additional towers or construct new ones which we do also. Here is a longterm question. We talk about voice and video. Like us streaming broad band in the air. Do you see a day where telephones compete with cable . They are starting to. I see the governor has an ipad. The screen is terrific. Its a matter of can the ed signal be good enough for a good hd. If thats true can you bypass . Will the phone companies who have broad band ever be able to bypass the wires into the home . Yes. For Certain Applications like internet people use the internet. If the signal is strong you dont need a cable Internet Connection any longer in some locations. In other countries outside the u. S. There is leapfrogging where the wired infrastructure wont necessarily be put in for internet. But people will go directly to over the air. What percentage of business is international versus domestic . We have 60 of the sites international. Only 32 of revenue. What we have tried to do is set up a strong domestic business in the u. S. And complement that with a growing International Business in 12 markets. Do they prefer to hop on yours . It depends on the country. In the u. S. Its almost completely converted to leasing. Other countries in europe, et cetera, the carriers own the towers for dedicated use. We want to make the conversion from owned proprietary showers to leased share towers. How do you make it worth their while . First of all we can go into the country. If they need sites, construct them and make them available to everybody. Another way, becky, is we buy the towers and lease them back to a carrier and make them open and available to everyone else. Its pro kpet ty to do it. Are there countries you wont play . Yes. Given how difficult it is to get what has to be valuable real estate . Sure. Yes, indeed. We have countries we wont go in. We have a process. The first is Macro Economic political stability. That takes a number of countries off the list. We are investing in real estate. You cant move it or get out. Once youre in the country. Do you ever climb to the top . 300 feet up and i started to you did it . Yeah. But i it wave it is higher you go up. I had a plane to catch. I get nervous thinking about it. This is a longer and interesting conversation. One question. What percentage of the United States isnt covered by population coverage is in the 90 . Geographic coverage . Much lower than that. Come on back. This is a long conversation. We appreciate it. Glad to. When we come back, we have more from our guest hosts today. And a programming note. It is an exciting day tomorrow. Dont miss andrews deal book conference. Among the headliners, barry diller. Cnbc has the exclusive broadcast partner for the conference. Catch the highlights tomorrow morning on squawk. Well be right back. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry 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. 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. Welcome back. Green arrows across the board. Dow looks to open 12 points higher. S p up almost 2 and the nasdaq up almost a point. Coming up we talk markets with former wide receiver turned money manager and then a meeting in china expected to be a forum for Major Economic reform. Well discuss the market implications. Squawk box returns after this. Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Budget budget battle. Negotiators in washington this week. Can they rise above partisan politics for a debt deal . Chinas Central Committee meeting to determine policy and set longterm goals. And its veterans day. After all my time as a marine corps drill structure i felt i was ready for a switch. Something calm, quiet, peaceful like a library. We are looking at programs to hire former servicemen and women. As the third hour of squawk box begins now. Living in america living in america welcome back to squawk box. First in business worldwide. Im joe kernan along with andrew quick and becky ross sorkin. We have two guest hosts today. Senatorgovernor judd gregg from New Hampshire, home of the best by far maple syrup. So much better. No question. Than vermont. Vermont dont make it. They buy it from quebec and ship it. Even worse. Hes the ceo of sifma and ed rendell of pennsylvania. Bec becky . Novartis is selling its blood transfusion testing unit to spain. This is the latest in whats become a busy market in health care deals. Also shire agreed to buy viropharma for 2 billion in cash. A premium to fridays closing price. It should boost the rare disease portfolio. Tronz ocean has a deal to settle with a proxy battle with carl eye can. Hell reduce the number of board seats. Icahn pressureford a 4 a share dividend. Hes tweeting his response to the news this morning writing, this is great news for trans ocean and for activism today. In Global Market news we are watching oil prices after the latest rounds of talks between iran and six world powers ended without a deal over the weekend. Negotiations were aimed at trying to curb tehrans Nuclear Program in exchange for easing economic sanctions against the islamic republic. We will continue to work to find a peaceful solution because we believe forceful diplomacy is a powerful enough weapon to be able to actually diffuse the worlds most threatening weapons of mass destruction. As Michelle Caruso cabrera told us, those prices could be coming back. Crude oil down to 94. 23. Meantime look at the markets. The u. S. Equity futures this morning are indicated a little bit higher. Dow futures up by 11 points. We showed you the numbers earlier that showed the s p futures up by 22 points. That was a mistake in the calculation of fair value. Of where it closed on friday. You can see now that the s p futures are actually indicated to open by a point and a half. It is singles day in china. A big Online Shopping day. The hang seng was up 1. 4 . The nikkei up 1. 3 . Singles day . Opposite of volume tans day. They celebrate singlehood. Thats nice. Its the biggest Online Shopping you meant singles like swinging singles. Swinging singles . Swingles. Check out the action in europe. Looks like the big gainer is in france up by half a percent. Relief workers are struggling to reach victims of a super typhoon that killed an estimated 10,000 in the philippines. More than 600,000 people have been displaced. Many have no access to food, water or medicine. Huge waves swallowed whole villages. Well the talk to an nbc reporter in manila in a few minutes. The dow hit another record high, up 167 points after the better than expected jobs report after i tried to figure it out. It initially sold off. Because people thought, wow, they might taper sooner. Maybe its confined to the fast money. People that are so instantaneous maybe. Maybe they are addicted. You want all even medium term. You want all the good things and to end the taper. Do they really want fed forever . I think they finally werent you surprised . I was. Lets talk more about the markets than the economy. Phil mcconkey, president of economy securities. We have a lot to talk to you about. In three weeks im feeling much better. Im not a huge giants fan, but im feeling better. Theoretically they could still make the playoffs. They are a game and a half back of philadelphia and dallas. They have seven games to go. Last year they were 36. The same record the giants have now. There is hope. We have seen the giants peak mid season and then get better and better with every game, too. We were going to talk about bulling. Its just awful. But then you hear about guys like 66, 350 getting bullying and it sounds crazy. Doesnt it . How can you be bullied at 66, 350 . This is one of the most bizarre stories. I have been following pro football for four or five decades now. I played in the nfl. I have seen nothing like it. To be p in the locker room you have to have very thick skin. This richie incognito, maybe hes not a guy i want to play with, but jonathan martin, like you said. I was 59, 160. They tried to intame date and bully me to no end. I cant imagine being that big and walking away from your team. I know i wouldnt want to play with a guy like that. This case is bizarre. Brings me back to what bill parcels would say. This game isnt for the paifainf heart. We are living in a p. C. World. I dont want the to minimize bullying. Its insidious, horrible. You have to take it seriously but it seems ironic with the big hulking football players. Well get back to it in a second. We had to get you on that quickly. Who were the people that initially sold on friday . Its exactly what you said. The shortterm traders. Finally got to a point where good news is good news, joe. If we can get the job growth that the fed wants to see, though the inflation is lower bound and hit that escape velocity into next year for the economy. We saw better manufacturing numbers, a good gdp print. The jobs report. All of thats good news for next year. We have to come to grips with higher rates. The bond market and the stock market need to uncouple. Rates and housing could be hurt if we go to 3 . There could be things to make head winds for the stock market. Its not a problem for the equity market. Just a slight move higher is okay. There are a couple of areas of the markets. As we focus on next year we look at growth versus likd ti winner. It will be technology sectors. Both do well historically when rates rise. You want exposure to sectors that can do well as Interest Rates move higher. They have great oversea sooes exposu exposure. Tech has more cash on the Balance Sheet than debt. The only sector in the s p that it does. We need the to talk about the work you do with veterans. The term hero for football players. Hmm. Not when you think about guys that lay it all on the line, right . You have a lot of work for vets and its veterans day. Yeah. Its a of wonderful time to pay homage to the people who sacrificed so much. There are 2. 5 Million People that went to war for us. They are transitioning back to the civilian world. You are seeing so much in Corporate America at the highest levels and down below. You have 100,000 jobs mission on wall street started by j. P. Morgan and a Dozen Companies. They have hit the threshold and now are going to 200,000. There are 10 Dozen Companies now participating in the mission. You are seeing so many trying to get veterans in business because they have amazing qualities that can help their businesses and help our economy. The Veterans Administration is coming through now with a post 911, gi bill. The government will pay half the salary of a veteran for six months and provide a housing alourns for a few years. A tremendous amount is happening to incorporate veterans back. This is the next greatest generation coming back into our sector and the private sector and our economy to help us grow for the next couple of decades. I just want to ask you to shift gears quickly. There is a Retail Investor. Does your phone ring at the shop. Some people think they end upholding the bag. I would like to see some interest in people that get back in and arent afraid of another 2008. What we do is mostly on the institutional side. Our customers are municipal governments and corporations. We are seeing a lot of activity. Uh of seen a lot of governments refunding their current debt or issuing new debt because Interest Rates are low. Now that the Interest Rate environment is starting to rise, you have corporations now looking to finance some future growth. We see an uptick in things happening. As far as the consumer is concern concerned about oil. Thats a tax break for the consumer, especially as we head into the holidays. As gas prices come down they are as low as they have been. In two years. We have had a an explosion. That will overwhelm demand and have prices go down even lower. The best part is we are surpassing russia as the Worlds Largest energy producer. That provides incredible security. These are remarkable circumstances we are undertaking in this country. You have veterans coming back to fill wonderful jobs. Thanks, phil. What do you think . Retail is back . Absolutely. I dont think it is back to the euphoria state. Third inning . Third. Middle of the third . Top of the third. I like it. The institutional side hasnt come back. The pension funds, charitable foundations, endowments. We are not seeing them allocate to equities. The Retail Investor is starting to do it. Thank you. Appreciate that. We will talk about the horrible typhoon. Relief workers are trying to get to an area that suffer add typhoon over the weekend. Harry smith joins us. Reporter we got in here and quickly jumped on a c130. The marines are running c 130s between here and manila and tacloban which is a devastated area. A city of about 200,000 people. Just as you fly in, everything is just flattened. It reminds me of the tsunami in japan. A similar situation. Its a coastline area where this storm hit so hard, everything was flattened. We were in a tsunami in indian ocean in 2004. Looks the same as that. Looks like certain places where a super storm sandy came in. When the wall of water comes, there is so little that can really stand as a barrier between it and what it will knock down. We flew into tacloban. Did a survey. Walked around neighborhoods there. Its difficult to the talk about. The people who are there are left with the shirts on their backs. They need food, water, shelter. They are making due as best they can. They are literally feet away sometimes from where people are trying to put together a makeshift shelter. There are dead bodies on the shore. One place where there is a devastated police station, a Little Chapel next door. People are laying their dead on the pews in the chapel. There is really no way to attend to them or dispose of them properly. Its a terrible, terrible situation. The one thing i would add is the philippines is not one physical entity. Its more than 7,000 islands. A lot of places, they havent heard from yet. Its very difficult to say just how bad it will be. But from what we saw today, its plenty bad. Harry, thank you for the report. Its extraordinary. How long will you be out there for . You know, as long as they tell me to stick around. You were talking about the jobs thing. We are in the oil patch in oklahoma a week ago and a lot of the Oil Companies are hiringing vets. We met a kid out there, drove a truck in the army for five years, couldnt get a job in california. Came there, starting salary on the rig, 65,000 a year. Wow. Harry smith bringing us news from all parts of the world. Sign up. Absolutely. Coming up, a key policy meeting in china as top officials gather to determine the countrys economic direction for the next decade. A china analyst after the break. And later a key budget battle in washington as house and Senate Members try to hammer out a deal before the january deadline. Well see if they can do it and what to expect after this. When does your work end . Does it end after youve expanded your business . After your companys gone public . And the capitals been invested . Or when your companys bought another . Is it over after youve given back . You never stop achieving. Thats why, at barclays, our ambition is to always realize yours. Welcome back. It is november 11, veterans day here in the United States. A day when we honor those serving overseas and those who have in years past. It is singles day in china today. Think of it as the antivalentines day. Bachelors and bachelorettes celebrate the singles life. It is the biggest Online Shopping day in china. Online sales are expected to hit 5 billion, 20 higher than in 2012. Its nice that they have a day like that. I remember how depressed i would be before i met my lovely wife on valentines day. Do you miss being single . No. Are you pininging in im thrilled. Shes probably not watching. Shes probably watching the today show. Looking at matt lauer. In china, a key Central Committee meeting. Expected to be a forum for Major Economic reform. Joining us from San Francisco is david riedel, president and founder of the research group. What is going to happen there and what are we going to hear publically about what happened . See a mealy mouthed statement about this. This has happened before. It marked a big shift opening up the in the 70s and 80s. I suspect what you will here is a focus on development of the rural economies. Land ownership is a big deal for china. Isnt some of this incorporated in the 30year plan . I suspect you will see more freedom of workers, more ownership of land by peasants and urbanization. Always a question whether you think they will build in a greater social safety net and what it means to the country. What do you think . They have to. The demographics of china demand it. They have more people retiring. Its the fastest aging population in the world. They need a safety net. That loosens the purse springs in terms of allowing it to be consumer oriented which they need for china. In terms of the slow down, what is your if you were going to look out five or ten years, the way the chinese are this week during these plenary sessions, where are you . I think you end up trailing down between the 7s to the sixes and fives. Im not hung up on percentage growth rates. Thats like saying a child should grow at a certain percentage growth rate and an adult should grow at the same rate. Im glad im not double thing every year. There is a misconception about percentage growth rates. They will manage the transition to a more domestically oriented economy which will mean slower percentage growth rates because of the law of large numbers. What about opening up markets to Foreign Investors . I dont really expect it. They are quite comfortable with their own ability to meet many needs. They like the idea of retaining a lot of control of their domestic economy. They were not thrilled at what happened with the u. S. And developed world downturn in 20082009 and the impact on their economy. I wouldnt look for a lot of opening up to the outside. No kgt about living in the closed internet sfwhorld. It will revolve around the chinese players. I dont expect a big throwing open of the doors to Big International players. Wont happen. Thank you. Did you see the story over the weekend . Bloomberg was in china and apparently they killed a story or postponed it because they were worried about whether the correspondents will correspondents accused Bloomberg Bloomberg said it wasnt spiked. They are still being worked on and werent ready for publication. It did get a rot of pickup over the weekend. Coming up on the this veterans day we look at hiring programs for those who served in the armed forces. First, another major retailer announcing plan s to open on thanksgiving night. More on the story next. All day today, cnbc will bring you live coverage from the schwab im pact conference. Go to impact. Cnbc. Com for exclusive content with industry insiders and shh wab executives. 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. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Target target is the latest company to announce it will open on thanksgiving night. Target stores will open at 8 00 p. M. And remain open throughout the night 57bd the following day. Retailers jc penney, macys and kohls will open on thanksgiving evening for the first time and toys r us and best buy are opening earlier on thanksgiving than last year. The calendar is working against retailers. There are six fewer days between thanksgiving and christmas than in 2012. A lot of times that can squish shopping. Amazon is teaming up with the u. S. Postal service to deliver packages on sunday. The service is available now in new york and l. A. But it will be expanded to dallas, houston, new orleans and phoenix. When we come back, its veterans day. We are commemorating the holiday with a look at hiring programs for former servicemen and women. Congress works on a budget agreement this week. Will the debt deadline force washington into partisan politics . The challenges for lawmakers when squawk box comes back. Welcome welcome back. Lets look at stocks to watch in todays trading. Best buy shares on the rise. The stock got positive mentions from jeffreys and ubs. Best buy has joined the growing list of retailers that will be open on thanksgiving. I cant believe it. Look at that. I thought the stock was going to not be in billions. We thought people it was an amazon shopping catalog. Or like a showroom for amazon products. 43. An unbelievable turnaround story. You didnt the tell me. I listen to you. I apologize. Thank you. Cooper tire. A judge ruling apolo didnt breach the takeover contract by failing to sign a new contract. Apollo has a deal to buy cooper. Eli lilly shares now from sell to neutral. Concern about the product pipeline. It is veterans day as we have been talking about. We are looking at initiatives to hire american vets. Hamp ton pearson joins us now. Phil mcconkey was here. What else is going on . First of all, we are joining you live at the wall, the Vietnam Veterans memorial. We commemorate not only the end of world war i today but honor all service veterans. There is a growing emphasis among business and government to try to step up efforts to help veterans who have come of age primary from the iraq wars and wars in afghanistan. The post 9 11 veterans if you will. In the next five years annest tated 1. 5 Service Members will leave the military in search of a civilian job. The Unemployment Rate for post 9 11 vets is 10 , well above the national average. Vets under 25, its closer to 20 . For military spouses, over half of whom its 15 . Now two years ago the u. S. Chamber of commerce launched the hiring our heroes initiative. Its held veterans job fairs in all 50 states and partnered with businesses, both large and small. The pentagon, v. A. , they are all estimating it could be 280,000 to 300,000 Service Members. They will be transitioning each year for the next five. That doesnt include their spouses. Well see a significant number of post 9 11 veterans that will be looking for jobs over the next five years. Now a major private sector initiative, a program spear headed by Jp Morgan Chase includes more than 123 fortune 500 companies. They pledge to hire 100,000 veterans by 2020. They are doubling down. The new goal is 200,000 vets hired by 2020. Other notables, public and private. The uso group joining forces. General electric has the skills to work program. Northrop grumman and health hire here is a coalition of health care companies. Out of the university of Southern California the Business School launched a master of business for veterans. Its a oneyear program of weekend lectures from prominent usc alums and military leaders. Back at our site, 31 years ago the wall was dedicated. It gets Something Like 3 million visitors a year. You can see preparations are under way for a veterans day ceremony that will happen later on here today. Back to you. Thanks, hampton. Coming up, we are a little bit more than two months from the budget deadline to fund the government and avoid another shutdown. More next on this weeks budget conference. Also a quick programming note. Dont miss squawk box tomorrow. Well cover the deal book conference live. And well talk to the winklevoss twins to talk about bit coin and what it means to the future of money. vo our new planes dont fly any faster. But it sure feels that way. Because with power ports. And wifi. And inseat entertainment, for everyone on board, now when you fly, time flies too. Flight Attendant sir, were about to land. vo were adding a brand new plane, with all this, every week. Its just one way were building the new american. Welcome back to squawk box. Take a look at futures. Red arrow on the dow, on the nasdaq. Green on the s p. Virtually nothing. Well talk about obama care this morning. The Obama Administration this week releases Health Care Enrollment numbers for the rocky october roll out of obama care. The total will be a low one after weeks of technical problems with the website, health care. Gov. It should be low. The question is what was the state where there was one . One. Can they fix it by november 30 . Thats the deadline they have now. I have yet to meet somebody in the industry who thinks the this will be solved by then. How much better is it . I have read 78 arent going to do it. In a gallup poll. People who lost insurance . Uninsured people, the people it was designed for. Its not just whether people do it. Its what type. It needs to work. Its structurally flawed. It was not intended i was ranking on the Health Committee and during the time it was, i wasnt ranking but i was still on the Health Committee. The bill was structured to fail, in my opinion because the folks writing it want to move to a single payer system. You dont think it was intentional . I happen to believe thats diabolical. Did hour dean design it . He wants single payer. The staff knew what they were doing. You would set up exchanges that when subsidized wouldnt be affordable and you would collapse the exchanges into a single payer system. You think the whole thing is a ruse . Its designed to move to a single payer system. Corporations will say, i dont need this. You will have folks moving employees into exchanges because why should they pay the full cost of insuring employees when they can put the cost on the exchange and the exchange puts it on the taxpayer. Then the exchanges cant function because they wont be able to be subsidized at that level. Then you have the human cry that the only way to save it is with a single payer. Baby steps. Im not a cynical person. That was a cynical view. But thats the game plan of the staff who wrote it. Obama is on the record years ago saying in a Perfect World it would be single pay. But he designed a system basically written by Insurance Companies and pharmaceuticals. It was written by the kennedy staff. No. Yes, it was. I was there. It was written in the back room of senator reids office. The problem with what judd is saying is you have one example of what something on similar lines worked well. Where . Massachusetts. Has it . Yeah. Its covered people. It hasnt helped with costs. Right. We didnt do enough with Cost Containment in obama care or romney care. Is that what we should do in the states . Look at the state exchanges. We shouldnt have done it with the federal program. It leaves it open the to the in some states someone is covered and in other states someone is not. Thats not a fair system. You will have an individual mandate that says to people if they dont buy insurance well force you to pay a penalty, right . How long do you think that will last . Its done well in massachusetts. No, it hasnt. 96 coverage. Youre not going to get a National Approach which forces people to pay a penalty or buy something they dont want to buy. The uninsured population in this country is not monol ithic. Its 40 million. Of whom 25 million are under 35 who are healthy and opted not to buy insurance because they dont think they will fall off their motorcycle. When they get into an accident or something bad happens or they get cancer we pick up the cost. Absolutely right. It shouldnt be a mandate for a comprehensive program which forces them to get autism coverage, it should have been a catastrophic coverage program. Interestingly, john kerry came up with a good idea in the 2004 campaign. That was called stopgap or something. In other words, the government would insure the Insurance Companies. The government would pay 75 of catastrophic coverage of health care above 100,000. That levels out costs. Probably cheaper in the long run than what this will do. It takes the risk the reason they dont want people with preexisting conditions is they are looking at someone who could be an 2k4r8z 00,000 risk. Or more. So the government comes to reinsurer. Right. That was kerrys plan. The catastrophic care, the high cases are where all of the costs are. Absolutely. That and the final six months of life. 43 of the costs of medicare come from 5 of the population. Mostly in the last months of life. Thats most of the cost. The interesting thing is there are ideas that we didnt try with the Affordable Health care act that we should have. Like . Like that, for example. Thats a good idea. A good question. There is a lot of Cost Containment. They did a little Cost Containment there. There is a lot of Cost Containment they really didnt get to. States have done it on a statebystate basis. Well continue the conversation. The other thing we have been talking about today is the budget conference in washington. It is set to resume on wednesday. It still remains unclear what the agenda of the meetings will be. Joining us now is stan kol lander, partner and National Director of Financial Communications at corvis which has sifma as a client. Judd greg is ceo of sifma. Hes also a former governor. Also with us is ed rendell from pennsylvania. Former dnc chair and cnbc contributor. Former mayor of philadelphia. And a veteran. A lot of formers. As we should point out. They changed the definition of foreigner. Im almost embarrassed to be a veteran. I was in the reserves and my single most hazardous duty was sentry duty of the gold at fort knox. Veterans agree to stand up when called. I could have been called. Fortunately for everyone i wasnt. Stan, thanks for joining us today. We have been talking about what the battle is set up for. Your point is december 13th is the date we keep hearing kicked around. Thats not a real deadline . Not really. First of all, nothing happens if they miss the deadline. The government doesnt shut down the next day. We dont have a debt ceiling debacle. All that happens is like anything but the Super Committee that failed this Conference Committee will fail as well. You know, the really funding bill doesnt expire until the middle of january. They have several weeks later to do something. Thats a real deadline, the middle of january. Thats after the holidays when everybody is away. You cant get much done in congress during that time. With all respect to former senator gregg you will ask 29 people in capitol hill around a table to negotiate and come up with an agreement. 29 people around a table would have trouble figuring out what to order for lunch. I agree with that. Your response . I couldnt agree with the guest more. The fact is that the Conference Committee is not going to reach this agreement. One of the reasons is because a budget conference doesnt include the president. People dont appreciate this but the president doesnt sign a budget. The budget is entirely a senate and house vehicle. So for this agreement to be reached basically you have to have paul ryan and patty murray and the president sit down together. And make the agreement. Thats the only way to get the agreement. Theyre going to have to follow a template there thats workable. Now the template put forward by ed rendell and Erskin Bowles is reform entitlements, set up a pathway to tax reform and replace the sequester. They have to get in the room and do it. Not the budget agreement for folks in the room on the conference arent cutting the bill. Can do and will are different things. How do we improve our standing with the American People . President obama as well. If we did a deal that the markets, the financial community, the Foreign Investors said, oh, my gosh. America has solved its debt problem for the next 30 years. Right. I think it would cause incredible economic explosion. Plus, people would be standing back saying, these guys finally did something relevant. They finally did something important. Their numbers would shoot up. Its in everybodys interests except the idealogues on both sides. They dont want to move over their position regardless. Absolutely right. The way to correct the problems of obama care and the Democratic Party and the problems which our party has so we are following the shouters is to govern. The way you govern is get in the room. You guy s arent there. Have they heard the message. Dont you think . Judd, correct me if im wrong. If the president , paul ryan and patty murray got in a room, not saying it could pass the caucuses, but they could come up with a workable plan. These are all solid, thoughtful. Dont you think things are polarized . Bill deblasio winning in new york and whether no, no. Thats specific to new york. No. Im looking there may be a great middle. This is the story today. Elizabeth warren. For president. Even if hillary runs its more likely i decided im backing her 100 for the democratic nomination. You are . Im backing her 100 for the nomination for the democrats, yes. Im sending my check to ted cruz. Its the same thing. I will help her become the nominee for the democrats. People watching this wont appreciate the sarcasm. I hope she gets the democratic nomination with my whole heart. In fact, im sorry Michele Bachmann isnt running. Sarah palin. Do you think she has a chance . No. If hillary is in the race she has zero chance. You will raise zero money. If hillary is not in the race she could be a 10, 12, 15 er. If she calls and asks, i guess its three words. I would say, are you crazy . You had me worried for a second. I was trying to figure out the three words. Were still on. Could have gone the other direction. You know, i think there is a place in the senate for Elizabeth Warren, i do. Write me the check for cruz before you leave. All right. Im with joe on this. Very quickly, you mentioned in the notes when we talked to you that you are concerned about a number of tax breaks, Something Like 55 tax breaks that expire by tend of the year. What are some of the tax braex and what are the odds that the tax breaks have anything done with them before they expire . Becky, its the right question. This is one of the deadlines no one is talking about. On december 31 there are 55 different tax credits, deductions and other things that will expire without action by congress and the president. Its one of the things no one is talking about. There doesnt seem to be a legislative vehicle to get it done by then. The this includes research and experimentation tax credit which is important to businesses to tuition and other related expenses, tax credits. All of which are important to the individuals that get them and more importantly will have a negative impact on the economy if they are not continued in some form. Now, they can be extended retroactively. Its not the best way to do it. You have to wonder if the Conference Committee fails, as i think it will do, hopefully, there will be a pathway that a tax reform will be reached by the Conference Committee and the president. Stan, i like to ask you or jenna a question or any of our host, representatives are trying to get something done that i think is absolutely necessary, where they say, nobody gets a free pass who has a Tax Exemption or tax break. You got to justify it again before we reappropriate it. And win it back. I think if you do that, you get real tax reform that could amount to lowering rates, at the same time produce some additional revenue. Do you think there is any chance camp baucus goes anywhere . Im sorry, go ahead, senator. Go ahead. I have been telling my cloints for several months now, i think if you will see comprehensive tax reform at all, it wont happen until 20 thrown at the earliest. Remember the Tax Reform Act took three years to pass. That was revenue neutral. What is this one going to be . I think you got the players in place to do it now. Chairman baucus has real incentive to it. Hes not rung for reelection. Hes got a bill. Its going to be marked up probably early next year. So you will have a bill coming out of the house thats a major tax reform bill by midfebruary. Its going to put a lot of pressure on the senate. You got a chairman of the Senate Finance committee that wants to do it. Along with a ranking member, senator hatch. I would put reasonable odds on the fact that theyll get a bill to the floor in the house and pass it and tail get a bill to the floor in the senate. I dont know whether they can pass it. Theyll get it to the floor by june. So i think there is a chance for tax reform. Senator greg and governor rendell are sticking with us. Stan, thank you for sticking with us. My pleasure. Coming up, jim cramer, stocks to watch, thats up next. So its classic. Customer erin swenson ordered shoes from us online but they didnt fit. 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. 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. The down new york stock exchange. Can you believe it . We were both saying, what is the problem here . Do the right thing, right . It worked. Yeah, its funny, articles today about how the individual is finally coming back. The professionals, its true. All they do is just knock everything. We get a good number that shows perhaps the economy is a little betterthanexpected. The individuals are not freaking out. I think its positive. Its early, though, i think. You know, with the kind of feedback you are getting and we all, you know, we are in this business. We have been in it a long time, its not frothy yet. I dont think mom or pop or their kids are back yet. Especially the young people arent in the market. I have talked to a couple people about twitter. I still know people leaving. I know people that think its a crooked class. I dont know anybody coming in. Rendell is here. You glad andy read is gone, do you feel . Rodgers wasnt there yesterday. I am a friend of the reids. I love what chip is doing. I know, its a good season. Anyway, thanks, jim. Coming up, super hero thriller topping the box office. Later, Goldman Sachs chief economist, really, jan hatzius will be joining us. Stay with us. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. 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