Transcripts For CNBC Squawk Box 20140902

According to the situation. Dollar general will be offering to divest up to 1500 stores if required by the ftc. Now, before they had offered 700 stores. This even though Dollar General says it believes that the pledge to divest those 700 stores as part of the proposal provide more than enough to clear any regulatory review. It includes a 500 million reverse break up fee. And the important point there is to ensure how confident they would be. Its a long, sordid story. Skoe and i have gone back and forth. On august 21st, Family Dollar rejected ads 7. 58 share a bid for Dollar General. What they did at the time is they cited and they didnt think the deal would clear. Family dollars board has been suggesting a stock proprosal. Now were at 80 with the addition of or with the edition of the reverse breakup fee and saying they would get rid of more stores. Remember when the press release came out with the initial deal . They trumpeted the fact that they would be the largest, that they would have so much stores. They saw that as a selling point. We should tell you they just added boys shce shiller. But more importantly, a guy named richard fine sateen, who is the former head of antitrust at the fcc. They think a deal will get done. We do expect this announcement should cross the wires hopefully in another minute. When youre tauing about how big they were and just that they would be the biggest in terms of numbers and stores. Originally, we talked about comparing the former. But i think when youre talking about revenue, thats crazy. In the market theyre in, there was an antitrust issue. Does this take care of it . I dont know. But it gets you probably closer. Theyre selling things for 1, in some cases 2. Thats a specific market on a relative basis compared to everything else. So they dont see walmart as a competitor . I think in this case, walmart does not fit the well many of how they think about this. Whether theyre thinking about it differently in the way the ftc will think about it, im not sure. Nonetheless, that is what is on the table. We think we should be seeing this news cross in just a little bit. But sources telling us they should be coming a little bit later today with an 80 a share bid. There you have it. All right. You got it . Yeah, yeah. When it does come out, weve already done it, though, okay . You dont want to trumpet it again. No. Its done. People get it. If theyre interesting in Dollar General becoming got it out. Theres nude pictures everywhere. Weve got to get to some of these others i know you had a busy weekend. No. If they ever find my catch that ive got even if they broke in on the cloud, all these people keep naked pictures of themselves . Everybody backs up everything to the cloud. Everything is accessible to being hacked. If you knew the pictures of myself that ive got the many of them . That ive got on the cloud. Really . Hundreds. In every disgusting position that you i mean, across the board. Its 4 00 in the morning. Youre going to send people akrod cross the board. Now, i think they saw mine and just never mind. I think they got grossed out. They probably dont even want you were at a hotel this weekend . What was the wifi bill like . You dont get the hotel wifi. We always talk about wifi. The pictures. I cant believe you see, you do this because you dont laugh on purpose. No, i dont. Let me do this one. The fbi and apple are this is the story that were talking about. Are you safe . Oh, yeah. Are you safe . Clearly not. The if i go and apple are investigating the hacking of icloud accounts. The breach led to nude photos of Jennifer Lawrence, super model kate upton. They didnt do male stars. Thats probably the only reason that they didnt get to some of mine. Apple says its actively investigating. This is what ill tell you, my ipad and my iphone constantly say, you are not being backed up on the cloud. Mine, too, because yours is full region right . Yours is full. Im constantly clicking dont worry about it or i dont care or whatever it is that i click and its just stop telling me. I dont know how to back things up on the cloud, anyway. But you see . I was ahead of the game on this. Nothing i have is on the cloud. I have a recommendation for you. The cloud is not safe. Dont we know that now . This is unbelievable. They went in and found it was just out here. Here is kate upton and here is this person and this person. All of these people have naked pictures of themselves . One of them said they downloaded hundreds of its like, why are you posing naked for all these pictures . Why . Theres a lot of naked pictures in hollywood. But just one other comment thats important for you. Yes. Its not that theyre sitting up there and somehow they hacked into apples clouds and hooked into everybodys account. How did it . They literally tried to get after each actress individually. But they knew it was on the cloud, right . They knew these people had eye phones. So you a thentfication. You have a password and an additional password, everybody can sign ud to do this. It would be impossible to get your i dont want to get its impossible, but its much harder to get Jennifer Lawrence or somebody else you have to be in possession of your iphone . You have to have the actual phone. Your drop boxes, anybody should move to anybody theres an opportunity to do double you a thentfication, you have to do it. And be careful with your password, fix mind you would not use sliekly. As the first password coat yeah, yeah. I still have other questions. I cant believe what but i think its very weird that you can just pick people that you want to find. It was that locallywood actress. They all do nude scenes in a movie. But thats art. Shouldnt be violating your sprieftsy. Kate, god bless you, kate, but those bathing suits . I had a pretty good idea what she looked like naked. I had an idea. I was missing 0. 001 of whatever was covered up on some of those. Right . I sort of felt like i had an idea of what a naked you know how close you get times on Sports Illustrated and stuff like that. It doesnt leave a lot to it does not, to imagination. I knew they would be a big story for us. It is. Anything that is on the cloud. Isnt that like your money and bank accounts, a lot of that is there, right . Bank accounts arent on on cloud, are they . Do a degree. The cloud is just a server in the sky some. Not even in the sky, but its on the ground. The important thing is not that apple itself was compromised. You have to advisely decide, im going after becky quick or Andrew Ross Sorkin or whoever it might be. That doesnt make me feel safe. The idea that the cloud is susceptible, i mean everything is susceptible. Everything is susceptible, but when you looked on various news aggregate websites, it was all about i because everything you do on you iphone these days youve backed up to the cloud. No, no. Except for you. Except for me. But for most people it does. The new incarnation of the iphone is even more so. Are you still carrying that . I do. I never put my credit card numbers into the internet. God bless you. So you think about being cool with technology, its a negative. Lets talk about the markets. The southbound has set 32 of the closer of the year. Hosting their best august performances since 2000. Year to day date, the dow is up 3 . The s p gaining more than 8 and the nasdaq is up by about 10 . We have a big week on the economic front. Building to fridays allimportant august jobs report. Today we get ism manufacturing and Construction Spending. Tomorrow we have factory orders, auto sales and the feds beige book. Thursday, its the adp report, international trade, productivity and cost and ism nonmanufacturing. Friday, it is the governments big employment report. Forecasters say the economy probably added 220,000 jobs last month. If so, it would mark the seventh straight month above the 200,000 mark. Thats the longest streak like that since 1997. Right now, lets take la look at the markets. This morning, futures are indicated higher. Right now, dow futures up by about 36 points above s p 500. The nasdaq up by just over 11. If youve been watching oil prices, youll see theyre do i know down slightly. Wti right now down by about 76 cents. All the way down to 95. 20. Ice brent is at 101. 98. Weve been keeping an eye on whats happening in the bond markets. The tenyear note at this point is yielding 2. 38 . And the dollar, thats interesting to watch, the euro has been under pressure. The dollar is up against is, 1. 3112. All of this with the ecb decision coming later this week. Well be hearing more from them. The dollar is up against both the pound and the yen. Gold prices this morning look like they are down by almost 10. Why wouldnt they be . Turmoil around the world. Putin said i can take kiev within two weeks and you guys better not mess with me because ive got nuke lawyer nothing i gist seems were not tighten that much yet as murp moves into it. Depending on what they say this week, it could be this week. So well see. And then last week japan was under 0. 5 for the year. Under 0. 35 . Well below 1 . And we were above spain. Theyre triple b, right . Which is like 80 points below right. So its fortunately, we have the perfect person to talk to us about all that. Mark is the manager of southwest securities. Would he have been talking with you all year about how strange its been watching whats been happening with yields around the globe with some of these bonds. What do you think is happening right now . Well, becky, weve got a couple things going on. First is the question of relative value. If you look at the german tenyear, under 0. 9 . The french tenyear at 12. 25 or at 2. 38 , the money thats not mandated for a given part of the world, the Central Bank Money or pension money or money managers. The United States treasuries look like the best value on the planet to me and i think thats why were going to keep going to lower yields. I do remember when i told you we were going to break 2 1 2 and like you were crazy, i remember. I remember. You send me reminders frequently along the way. Were still below 2. 4 today. Mark, let me ask you, with everything thats happening around the globe, how much does it matter what the ecb is . That was driving things relative value, but the ecb with the decision this week could continue to really demarkate those differences in value. Becky, after the decade weve been through, i hate to say this very often, but its a different world these days. I wont say the difference, because the Central Banks are certainly driving the markets, all the markets, even the equity market. In fact, weve had lower Interest Rates, in my opinion, its big one of the big equity markets this year. The ecb is going to have a Significant Impact not just on our sovereign debt and bonds in general, but also on equities especially if they keep driving the yields down. They started in the asset backed Purchase Program or they began quantitative easing. Were expecting all of those things and i just wonder how much of that is baked into the market and if they dont do some of those things, if that would be reflected in a big snap back of the market. Becky, theres so many people in year, as you know, that have said the average consensus was for by this time, we were going to have a 342 yield and close to 4 by the end of the year. I still any theres a significant amount of people that Interest Rates are. In my opinion, i dont think its baked into the market at this point. Lets talk about whats been happening in geopolitical news. Joe was just bringing up what putin has said most recently, saying he could take kiev in two weeks if he wanted to. How does that impact things . Theres no question that the geopolitical events with putin, with isis, with what happened in the gaza strip, with iraq, that had a significant effect upon treasuries, though not as significant as the trillion banks. But certainly in times of trouble, many has driven back into u. S. Treasuries as the biggest, deepest market in the world. And i dont see that discontinuing any decade soon. What does that mean in terms of the stock market . You continue to think stocks will do well, u. S. Stocks . I think the biggest driver for equities is the war on rates. I think were going to 2 on the tenyear and down from there. Interestingly enough, you take germany, spain, france and italy and average that out, that would be a yield of a 1. 50 compared to 2. 38. So theres still room to go. Plus, i would make the point, you were talking about it earlier, how well the dow and the s p has been this year. Dow is only at 3 . But the s p is up 8 . Right. If we use the 20year index, bonds are up 16. 95 . Wow. Way overshadowing equity markets. That is crazy. But thats where it is. Yes. You were right about yields, thats for sure. Were you more negative on the prospects a couple of years ago . And we dont think of it as insolvent. We just think of it has not growing. Theyre certainly not insole Vice President , sdwroe. We thought that for a while. We thought there were times where they were never like greece, we thought that was an insolvency probe. It was of themselves and two problems but it was cured by what the ecb did. It works to some extent. Maybe not in terms of growth, but at least theyre back, you know, yields arent 9 over there now. They got their house in order. Joe, the biggest things with the ecb did was they had the put where they said whatever tank, draghi said whatever it takes, and the next thing is they lowered Interest Rates. Its a carry play so they led many of the banks at 0. 15 and then he curved them to buy sovereign debt which they allow them to carry risk free and it mass droiven down, down and down aut sovereign dates in europe . It sounds lining if all 23 illegal country can know hit in the next km of months, thinking you can do that in super and fix everything, probably masks some of the problems were going to see in the future when all this printed money becomes less valuable. When you see it that way its like, wow, thats nice and pat and it works and things arent that simple a lot of time, month . Central bank mistakes dome back to haunt us before. Thats how people made on the of mope. Well see. Do you own a tie . Who owns have you ever been on have you ever worn a tie . Never, never. Have you ever been on with the a do you have images with like on the icloud . Never, never. Were you hacked . You see, that i no, but i dont have beckys pictures, i promise. Yeah, good. I dont have my pictures. I hope you havent because i dont think you can see unsee you naked. You dont want to do that, no. All right. Thank you, mark. Coming up you know what . I just had a visual and i cant undo it. Of him in a tie . Just a bow tie. Now ive got the image. Are millennials a pack of liars . A new Research Says how this generation may say anything to get ahead. Dont look now, but we are running out of sea captains. Squawk enters the rough job waters next. Back in a moment. A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome back, everybody. Right now, im tight for the executive em. Labor shortages are now being forecast in many professions. This is according to a report being released by dorchbs board today. Among the reasons and areas expected to see a shortfall in the next 15 years, you have librarian, sea captains, occupational therapist and plant operators. There are two main reasons. We have a demand for the workers in the case of Many Health Care areas or lack of interest in the jobs in the case of librarians. We hear about this where theyre having a heart time coming in were other places where you have many. Im confused about the librarians issue. The future of libraries, i think, are probably under threat to some degree. You havent been to a library to some time. They hold all kinds of groups for seniors, for little kids, the Library Hours to get them in. They have dvds to rent while youre there. They have computers set up. Libraries in ralt of towns are still vibrant places. I dont know why. Ive been in ours a lot. You see, its like i think youre the job might be defined differently. As in different than as opposed to a librarian to help find you a book. Can you imagine taking a job as an insieinside low peaeinsii salesman. We have books. I had them. We had them, too. We had the world books one. I didnt even have the good ones. We had the world book, too. Do you like world book better than britannica . For my high school graduation, i was given i think a 12 volume set of the dictionary. 12 volume set of the diction anterior . Dictionary. Yes. No wonder youre a word smith. Mine were put on a shelf above my bed. It pulled out of theway wall or whatever it was. Encarta, do you remember that . I cant imagine what honestly, we go because they have the childrens hours. I see a lot of people coming through. Our library is expanding. Speaking of the workforce, a new study finds millennials are more willing than others to lie to get ahead. The group is defined as anywhere between 19 and 36 years old. Millennials say they would take credit for someone elses work more than five times as frequently as boomers. One more headline from that survey, the younger employees are more hikely to selfidentify as workaholics. Im not a millennial, so i cant comment. Youre closer than i am. No, no. Are my kids millennials . No. 19. You have to be 19 to be a millennial. 1929 . 19 to 36. How do you feel about millennials . I feel like are demos broken out . I feel like we can say anything we want about them. I think we should try to attract some millennials. What i will say is that teach me how to cheat at work so no. We always thinking the younger ones are lazy, they have a sense of entitlement. And what part of all those things would be wrong . No, but thats what every generation thinks about the next. No, i think its worse. Joe, with the snappers nowadays and the music theyre all listening to get off my yard, kid. I think its worse, though. You dont think theres an entitlement issue . Absolutely. 100 . Youre missing being a millennial by like a year . You dont think thats new . The entitlement . The sense that ill tell you what it applies to these interns who say i wont do this, i wont do that. Ive had people say i wont do this or that. When i was an intern, you would xerox and staple and whatever you were told to do. Having read some stuff is in the New York Times about god for bid some of these kids are growing up libertarian or conservative. Gay marriage. They just assume pot, stuff like that. But then they look at what the government they look at the last eight years and they would like a job because they want to buy all these apps and all these electronics and they know how sorry the state of the current, you know, or 2 , its a 2 world. And a lot of them, the theme that maybe gets the government thats what im hopeful for. Im the opposite way. Opposite way of what . On a generational basis, the younger the millennials would be considered democrats or liberals than conservatives. I think thats starting to change. Thats what i mean. Socially. They think of liberals meaning socially liberal, but then theres a lot of people on an economic basis they think that, too. They may not appreciate you didnt see the article that was just written about i think it was in your paper, too. Ill send it to you. It was it was god forbid they might turn out i think it was one of your friends. Ill show it to you. You go find the story and send it to him. When he we come back, two months from today the midterm elections will be held. John harwood will take us through some of the big agenda Items Congress will face when they get back to work. Flum, the flame broiled inversion controversy. Why some think it is time to ditch the womhooper. More quack after this. Thankful for many things,tary y the legacy of usaa Auto Insurance could be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Welcome back. Im joe kernen along with Andrew Ross Sorkin and becky quick. Compuware is reportedly making a deal to sell itself. A deal could be announced as early as today. Compuware started this process a year ago after activist Hedge Fund Elliott manager tried to buy it. And iliad is still in the hunt for tmobile u. S. The French Telecom operator cfo said talks are continuing with partners to possibly improve its bid. Last month, iliad offered 36 a share. The German Company Deutsche Telekom rebuffed the bid. Atlantic city is one casino smaller today. Rebel is officially centimetering down today just two years after it on opened. Looked like those lights were off this morning. Drove up from down that direction today. 3,000 workers lose their job just in the case of rebel. Two other casino res also closing. Well have a live report from the boardwalk in the next hour. And we go to Washington News this morning about our friend, our squawk friend, former House Majority leader eric cantor. Hes joining Investment Bank molis company. Moelis said says cantor will provide strategic directive to corporate and institutional clients. Nice to see somebody go into the private sector and do something theres been a lot written about that, politico and other places and almost sort of in a snarky comments about it. Oh, now, so this is why he left early. Ee hes going to go a big, fat paycheck. The president with all the connects the. He would have taken this job this summer, he would have taken it it wouldnt have mattered. Hes been a strong supporter of business and but i would say happily. I dont know how uflt about it in terms of the revolving door. This is not one of those jobs that puts him in a lobbying position. Why not . I think in this role, its less about washington per se. He will be advising companies about how to deal with washington, but i dont think well see. In the same way that you could say roger altman has the effort where he talks to people in washington. It will be different than him actively lobbying on behalf of companies, i would think. Okay. Am i being poly annish about this . I dont know. Hes going to make a lot of money. If he could have left that position about a month ago before it went public im sure they can figure out something. Lets get to some of these. John harwood, i saw something it was written that the it was a good election hearing tactic to focus on minimum wage and they could do much better. Last week, i think it was written in either the New York Times, it might have been over the weekend, said this is a core issue to try to maybe do better in november with. Then i saw in the president s radio address, talked about the minimum wage and there were headlines, the world is burning, obama talked about the minimum wage. Then i saw biden go off, you have to take to a union audience, we have to take our country back. This is the beginning of what were going to see for the next what is it, its just about two months, right, still november. Do they think that is an issue that can, like, maybe that the damages wont be quite as bad as what were looking at right now . Lets hope. Minimum wage is something that unites democrats, it does appeal across party lines, divides republicans. Theres a significant number of republicans who are for it, but that doesnt mean its going to drive the election. Both sides are looking for ways to motivate their supporters relatively small numbers of people turn out in midterms. And so obama is trying to stoke that and its a sensible play for democrats. That doesnt mean its going to result in a but once again, you know, weve talked about how its 2 of the population and maybe it helps a little within certain you know, people argue about whether its a good or a bad thing. But it certainly isnt address the big problem. Now were going to spend the next few months, were thinking small, not trying to do anything that might help a lot and then were stuck again and two years left. Its not the only thing hes trying to do, but it is one thing hes trying to do. The bigger things that he wants to do on Economic Policy quarterback infrastructure but john, the people that he promised he would do something before the election on immigration, theyre not going to vote for anybody but democrats, anyway. And now he sort of if he delays that decision, some of those executives actions until after the election, thats pure election hearing, too, and thats trying to help people that are in vulnerable positions. That was all the scuttlebutt over the weekend, theres dissension within the ranks of the liberals and now hes going to put that off. Its not so much descension in the ranks. If youre marked prior at running in arkansas or marion landreau, do you want to at a time when your president is not very popular, do you want to take on the additional water of arguments that he has unilate l unilaterally unionized millions of people by congress . Thats part of the calculation . As it becomes clearer, they are annoy planning their but they didnt quite say it that strongly. They say the odds are true that the gop is going to win both chambers. Here is what they do when they do win. Thats scary. When you start planning out what youre going to do before it actually happens is there a risk in football at the five yard line, do you think . Yes. I mean, thats not a great strategy. It might not be a good idea to hawk about what youre going to do until you actually do it. But what republicans are trying to do there is signal that it is not all about blinding washington to a halt, shutting down numbers. Theyre trying to say were going to be measured and mature and go after concrete things that are attainable. This is a version a slightly cleaned up version of what Mitch Mcconnell is saying to donors. Its not fundamentally different. Its about using the appropriations process, the bungts process to make a head way on particular issues. Is that going to work . We dont know. But by talking a little bit about how youre going to conduct yourself with the majority, given the images that have been out there, the republican party, that is something that republicans want to use to reassure voters, especially in the center of the electora electorate, that theyve got a handle on how to govern. All right. What else . A lot of sports . By the way, on the on the discussion you were just having with andrew, andrew was being a little poly annaish there. You think . Hold on, i want to go back to harwood. What do you think his role do you think hes participate of a secret shadow lobbying system . There are very few former members of congress who do the kinds of lobbying that people talk about. You know, run around, down the halls and work on particular issues. A lot of them go to 10,000 feet and say im doing corporate strategy. Thats why you hire a former member of congress if youre an investment i want to go back to polyanna and say this is a revolving door at its worst, then . You know, honestly, i think the revolving door stuff is its a useful issue to raise, but people are going the to leave political life and go into the corporate sector. Corporations have to interact with government. They need political advice and they need to know the lay of the land. The toxicity of that is a little overrated. What about rg3, do you think its going to work this year . Are you optimistic about the skins. Youve got your fingers cross . You know, it does not look good in the preseason. Hes got a load of talent. I think that if he can adapt himself to this different style of play, well be in good shape. The jury is way out on that. And college, i see our colleague chuck todd, it makes me wonder about him, you know . Miami . Seriously . Thats where he went to school. I happen. Youre such a fair weather friend. You dont mess with somebodys identity. Sooner or later, you have to say maybe i should pick another team. Are you going to try to make becky give up rutgers . No. And they won, by the way. They went against washington. It was their first win against a big pack 12 team. It was huge. Great stuff coming up on nbc. Weve got all the good games. Joe . Yeah . Big win for duke over elon over the weekend. You know, thats the kind of teams you should play, john. Anyway, thanks. Ouch. I thought that was an irish drug company. What the hell is an elon . Elon musk. Next, preventing the next fender bender or worse. Well tell you how General Motors and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. I know what my money is doing. I rebalanced my portfolio on my phone. You know what else i can do on my phone . Place trades, get free real time quotes and teleport myself to aruba. I wish. Welcome back, everybody. General motors is getting ready to launch the first of its cars that are said to detrekt distracted driving. No word on what exactly they would do about that. Maybe slow you down, maybe beep at you, make you Pay Attention again. Again, it is an interesting development. When we come back i see a lot of people on the phone and a lot of people texting in their lap going 75 miles per hour. In west port over the weekend, because of a guys that was texting, he plowed into the guy in front of him. My kids watched it. Yeah. Bad news. Anyway, when we come back, the back to School Edition of the chairs. Dow futures up by about 35 points, s p futures up by about 4. Squawk box will be right back. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Chocolate, soybeans, thisand apricots. Made with what kind of chef comes up with this . A chef working with ibm watson, on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform their industries. Today theres a new way to work. And its made with ibm. Weve a lot to say about the u. S. Open. Brad gilberts going to be on again and you were there. I was there. Im going to talk about it. I also want to talk about wozniacki and rory. Yeah. Because in my family, both my wife and my daughter love caroline. You got to tell the story about for people who dont know. Well tell about it. But rory mcillinois the wedding invitations were out. Yeah. And he broke up with her on the phone. I thought it was like a text or something. I dont know. It was bad. I like rory. I hope he doesnt go on a bimbo binge because shes a great gal caroline. And tiger, he youre famous must be good for both of them. Theyve both won. They have. And she did, you know. Were watching her, i think she plays today. And im anyway. But, andrew, we talked about this. This is your guy leonhart. Leonhart. Here is what he wrote. And i summarized it when it came out. And the title was why teenagers i remember this. Why teenagers today may grow up more conservative. And heres what it stressed was. They were born after george bush, so they really dont remember what a really just let me talk, please. They wont remember what a really bad president was like. Thats already in the past. And now theyre watching this president , who, unfortunately, stepped in to a bad Economic Cycle through no fault of his own. Thats true. True. True. No fault and hes got these horrible republicans that wont let him do any of these really good things, according to David Leonhart which would help the economy. Therefore, theyve got to we need to be wary that these poor young people may be so clueless they turn out conservative because they dont really understand that it wasnt his fault. And now there was another article out also that said young people, by nature, are, its a given that theyre liberal socially in terms of gay marriage and in terms of a lot of but thats what they consider liberal. They dont think deficits are great. They dont think high taxes are great. They dont want the government intruding in their lives and controlling everything. So its possible you end up with someone like me that they really do get a clue where all they care about is prosperity through free markets and the government can just get out of the bedroom kind of like libertarian almost. Yeah, we believe in safety nets for those that are truly in need, but we also think that the best things in life come from earned success and come from, you know, and the dignity of providing for yourself. And not being on the dole. How can you argue with any of that . I cant even believe youd look at me to think of arguing that. Because i love arguing with you. But you look so wrong about everything all the time. Let me ask you this, you said memories are short that people are not remembering a really bad president. So whats to say they dont remember this president . Because theyre living through it. I mean they werent there living under bush. This is like you with your conversion under carter . This is like me watching carter and then watching reagan come in. Exactly. That okay. That forever set me set you it scarred you. I think you always have a pendulum swing, too, though. You had the country pushing far left, and i think it tends to come back. You will have a pendulum swing. Yeah, yeah. Well, we had a lot of other stories to get to. We got 30 seconds. I thought you would enjoy this story because its a sto story you can do a lot in 30 seconds. College football coaches, how much theyre paid and a study that says theyre actually paid what their worth on a relative basis to ceos in america. Really . The average football Coach Division 1a is paid 1. 9 million. They believe that thats actually within line on a relative basis to other ceos. They talk about a number of coaches, who get private planes as part of their deal. And also some other so its a pretty interesting study. A lot of perks. A lot of perks. If youre a winning coach. If youre a winning coach. If youre not a winning coach can make a huge difference. There is no parachute. Golden parachute. Whats the word that im looking for. Anyway, should investors brace for the september swoon and will this job weeks jobs report trigger a sharp reaction. Back to school for the kids. And back to business on wall street. The markets brace for the jobs report. Economic turns in europe and more unrest around the world. Flame broiled fire storm. One top democrat says it may be time to ditch the whopper. We hear the argument against the king, and tim in just a few minutes. And boardwalk empire cracking. The revel closing its doors this morning. Says Atlantic City have a chance of recapturing their former glory. The second hour of squawk box begins right now. Good morning and welcome back to squawk box. Dnc have that back in there, but i know youve been with us, im joe kernen along with becky quick and Andrew Ross Sorkin. A big weekend of tennis. I managed to get to the u. S. Open as i talked about last week. We saw serena completely overpower her opponent. I mean, watching serena play is like watching me play my wife. I mine it really is. Its like you lose that badly . I lose that badly. What did you think i meant . Thats exactly what i meant. Im overpowered. 62 to the same yeah, what did you think i meant . Thats exactly we also caught a match with andy murray, who now will move on to face novak djokovic. Murray is classic to watch. I was just close him when he played it. These two guys each serve 135 miles an hour. Nobody hits it harder. And some of the volleys and rallies that they had are as good as tennis ever is among any two opponents. This guy you got to go like this. You stuck your hand in your hair. This guy tsonga and now its up in the air. Now it needs well people already you got it. Someone wrote in the twerp and the wig are both back. Am i the wig or am i the twerp . I dont think youre either. I think theyre happy youre here. Youre the wig. Im either i dont want to be the twerp. Ill give you both. Theres brad gilbert. See my hair could look like that. But were going to talk to b. G. At 7 40. And that is proof your hair is real. Because who else would reacts to humidity. Thats real hair. Yeah. It was so hot. I know. This was me at the beach all week. Hell be joining us at 7 40. Andy murray is classic to watch. He gets mad. He gets so good though. Im excited about this next tournament, too. Serena, this is her first quarterfinal in a year which i dont understand. First time was she out . Was she injured . Shes dominating. I thought she was injured one of these past years. Lets get you to some of the mornings headlines. This will be three in a row. And shes won five already. Lets tell you whats happening in corporate news. Dollar general has raised its bid for Family Dollar. That new offer worth 80 a share in cash compared to its august 21st bed of 78. 50 per share. Dollar general also says it will divest up to 1500 stores if required to do so by the ftc. And its also offering to pay a 500 million breakup fee to Family Dollar if the deal doesnt happen and isnt approved on an antitrust grounds. Now Family Dollar so far has been sticking to its guns, saying that its deal to be acquired by dollar tree is the better deal in part because it worries about the antitrust issues. This deal perhaps gets them over the finish line. We will see if it gets them a little bit closer. And one point that i just want to make because i was wrong when we were talking about it earlier. We talked about whether they look at this deal relative to walmart. And i suggested to you that they didnt. Thats the view, frankly of dollar tree. Dollar tree worries that its a small universe, that its not relative to walmart. The Dollar General folks, of course, want to say, look, this deal compares to walmart very favorably, walmart needs more competition. It doesnt matter what Dollar General or dollar tree thinks. All that matters is what the ftc thinks. The question is going to be how the ftc thinks about it. The other piece of this is they just hired david boies firm who also employs the former head of antitrust for the ftc. Really sort of strengthening their sort of lineup trying to suggest that theyre more not only committed to this deal but that they believe it will go through. Lets tell you about some other news, apple says its investigating reports that intimate photos of celebrities like Jennifer Lawrence and kate upton were hacked through its icloud service. Apple says it takes privacy matters very seriously. And by the way, joe, one other point on this, apparently, this according to gadget the way that the hackers just figured out how to do this, they used the find my iphone feature. Have you used that feature . Yeah my kids do. And as long as they could figure out your email address, they were able to use that find my iphone feature somehow to exploit a loophole. But again, it wasnt that the entire cloud was somehow hacked. It was that each individual account was hacked. But you had to get the email addresses. In other apple news the company is said to have struck deals with visa, mastercard and american he press. This is important because it turns on whats going to happen to the new iphone, and the potential it becomes a mobile wallet. The newest version of the iphone expected to be unveiled during an event that apple is now scheduled for september 9th. A lot of people going to be watching for that. It is a huge week ahead for jobs and for the markets. We have a ton of data coming up. Kicking off today with manufacturing and Construction Spending numbers. Auto and truck sales later in the week, as well as feds beige book. Its all leading up to the big report on friday. Thats when we get the governments jobs report. Joining us is michelle meyer, senior u. S. Economist at bank of america, Merrill Lynch and mike ryan who is chief investment strategist at ubs, and folks its good to see both of you. Mike before we jump in to what we think is going to happen next lets talk a little bit about what has happened. Were halfway or three quarters of the way through at this point. Almost. And it looks like after augusts numbers were looking at the s p up 8 . The nasdaq up 10 . But the dow only up about 3 . What do you think happens from here on out for the rest of the year . Well, i do think the gains are going to be moderate. I think we had a pretty decent runup, obviously not the mike, i hate to cut you off but i think were missing your microphone. I dont know if it slipped off. Well give you a chance to figure that out and let me ask michelle a question in the mean time. Michelle we do know that we have the big jobs report coming up on friday. How important is that to the market . How important is the ecb meeting this week, as well . This is a data folds week. Both in the u. S. , and as you said in europe in terms of the ecb. In the u. S. , jobs will finish the week on friday. Were looking for 245,000 for job growth which would match the threemonth moving average. Its a bit above the Consensus Forecast but we think that the early indicators on labor market all have been healthy. In the sense that initial jobless claims have continued to come down hovering around 300,000. The Consumer Confidence numbers were strong, in particular labor differentials narrowing as more people are saying jobs are plentiful. The manufacturing data has been very healthy. And thats suggesting that we should see continued hiring in that sector. So to me i think that the jobs report should provide one additional and important piece of information that the economy is, indeed, continuing to grow and continuing to expand. Which is absolutely critical for people when theyre thinking about the rest of the second half of the year. Okay. Lets get back to mike. Mike we cut you off in the middle of that. But what do you think happens from here . Look, i think the markets can still grind higher. We see the following. We still see corporate profitability continuing to be at this moderate kind of high single digit range. Which i think as we saw in the second quarter, thats the kind of environment that typically translates into better equity market performance. We think while the fed at some point is going to begin the process of tightening, we think thats not going to happen really until about midpoint of 2015. So from a profitability standpoint and a policy back drop i think the equity markets are still set to see higher. But its still going to be choppy. Were not going to get the straightline movements we had in 2013 even earlier parts of 2014. I still think theres going to be a fair amount of volatility as we price in some of the geopolitical risks, continue to focus on what the next move by the ecb will be and exactly what the timing will be for the fed. Mike, what weve seen to this point is nothing to sneeze at at least if youre looking at the s p or if youre looking at the nasdaq given what weve seen in the last couple of years with the markets. When you talk about continuing to grind higher are you talking about north of 10 , are you talking about north of 15 when you look at the s p . No were looking for moderate gains going forward. Our price fargate for the next six months is 2050. That translates, 7. 5 s p gains. I think its going to be a decent pace of growth in terms of s p profits and i think thats going to translate to decent performance but its not going to be the kind of double digit returns we saw last year and even the first part of this year. Michelle lets talk a little bit about what you mentioned. You do think the jobs number is going to be stronger than expected. You do think the economy is pushing along. The other thing we have happening is the ecb and again where were getting out of that whole cycle of the fed maybe starting to really finally tighten while the ecb may be getting into it, that makes these markets look more attractive. Which of those big things do you kind of pay more attention to . Well i think thats right. Theres the dynamic of Monetary Policy globally. You cant just think about what the fed is doing and youre right were later in that stage. We think that were starting to set the stage for the eventual exit. Although were up in the champ that theyre not going to start hiking Interest Rates until september of next year. We still have a while of this extremely accommodating policy before we start hiking Interest Rates. The markets are forward looking and theyre looking at a fed thats beginning that exit process and potentially in the ecb that is going to start to engage in qe. Our european economists dont think that theyll see an announcement this week but one of the things that is something the markets are looking for is a rate cut from the ecb. Which would, i think, do a lot in terms of signaling that that theyre going to begin an easier Monetary Policy environment. Mike, do you expect to hear any big announcements in terms of qe from the ecb this week . Not in the shortterm. I really think, becky, the bar is set a bit higher than that. Wed have to see certain conditions being met before they take that next step of qe. Wed have to see the inflation data continuing to disappoint. Continued concerns about the Growth Prospects in europe and you may have to see a further escalation in whats happening in terms of the ukrainian crisis. Likewise the bar is set higher for the fed as well. I think for the fed to begin tightening were going to have see certain conditions met as well. You have a relatively high bar for the ecb to begin quantitative easing. But also a high bar for the fed to begin tightening. Thank you to both of you for joining us thank you the Burger King Tim hortons hookup gaining negative attention on capitol hill. House Budget Committee Ranking Member Chris Van Hollen says it may be time to ditch the whopper. He sounds off on the deal, thats next. When fixed income experts work with equity experts who work with regional experts who work with Portfolio Management experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Female narrator sleep train challenged its manufacturers sleep train challenged its manufacturers to offer even lower prices. But the mattress price wars ends sunday. Now its posturepedic versus beautyrest with big savings of up to 400 off. Serta icomfort and tempurpedic go headtohead with three years interestfree financing, plus free sameday delivery, setup, and removal of your old set. When brands compete, you save. Mattress price wars ends sunday at sleep train. Your ticket to a better nights sleep welcome back, everybody. Weve been keeping track of the futures this morning. So far it looks like we will be opening higher. Off the highs a little bit of the morning but the dow futures still indicated up by 28 or 29 points above fair value. S p futures by about three points. Also another example of the revolving door between washington and wall street this morning. Former House Majority leader eric cantor is joining Investment Bank moelis as vice chairman and managing corrector. Cantor will also be elected to the board. I think this is shadow lobbying. You hire people for their expertise. If you think youre hiring them for expertise on wall street i think actually you should be able to go back and forth. I dont get completely crazy about it. But i think kind of earlier was a little off. Thats what your expertise is. Thats exactly why its just a different form of lobbying. Its access and everything else. I mean no one thinks that you hire all of a sudden the guy becomes a great the guys going to become a great Investment Banker. Yeah. All of a sudden. Hes going to be in there thinking about which companies are undervalued and how does geithner is out there to raise money internationally for sovereign wealth funds. And thats all about access, too. The big Burger King Tim horton deal has lawmakers upset. One of those angry members of Congress Says its time to ditch the whopper. Chris van hollen is the Ranking Member of the house Budget Committee and also the cosponsor of a bill to halt corporate inversions. Congressman its good to see you. Is it upon to get support from the other side of the aisle to actually do this. Well i think theres growing awareness in the American Public that the public is paying the price for these corporate inversions. According to the joint tax committee, which as you know are nonpartisan tax accountants, it will cost the american taxpayers 20 billion if we dont address this issue. So, sandy levin and i have introduced a bill, we hope, that our republican colleagues the answer is probably no, though. Okay so 20 billion. There are trillions of dollars with a t that arent here because of the tax system the way that we do things. And if you were king, if you were burger king, congressman, or king chris, would you change the way that we do that so wed only tax corporations once . I mean there is a motivation to do this. Fish got to swim, birds got to swim, fish got to fly. I mean theres a reason this is happening and theres also a reason that our companies here are able to be bought by Foreign Companies because theyre valued more because when a foreign companys tax profile is put on our domestic companies, theyre worth more to them. So, this is broken. This is broken. This what youre doing right now is fixing someones fever by packing them in ice and not doing anything with an antibiotic. Hey, look. My view is this, yes, we need Corporate Tax reform. Theres no doubt about it. But right now you got to stop the bleeding before you perform the larger operation. Because as you know, and you just said, youre not going to get Corporate Tax reform in the next couple months. You may not get it for the next year. But you wont get this, either. Why not shoot big and do something that would really help . Listen, right now Corporate Tax reform is being used as an excuse not to solve this immediate problem. This immediate problem is actually simple to solve. We could vote on the bill that weve introduced today. We could vote Corporate Tax reform lets just vote that Foreign Companies can buy any of our companies. This is just another form of protectionism that were doing right now. Thats not true. Bee have a law in place that prevents inversions and the final company, when the u. S. Company represents over 80 of the final company, this simply says when the u. S. Company represents a majority chris, u. S. Companies will still build facilities outside of the country. There will still be a net outflow of capital. This is all this is just one small part of what happens. Yeah, but youre right. But your argument is, we should not solve this problem until we solve the entire big problem. Im for solving the larger problem. But if this youre just doing it to look good. Its just electioneering again. No, thats nonsense. Look. The reality is that the one piece of tax reform that was put on the table was by david camp, right . The republican chairman of the ways and means committee. Who was the first person to walk away from it . Speaker boehner. He said, blah, blah, blah, so the notion that youre putting forward that somehow were going to get Corporate Tax reform in the near term, as the solution to this problem, doesnt it doesnt make sense politically so why not true and get this done now . Congressman thats my question to you. As you may already know, i happen to agree with the idea of putting a tourniquet on this issue right now and trying to deal with the larger issue. However im surprised that you and others have taken up the issue of burger king as a central example of the inversion issue. I know that burger king is widely known. But that particular transaction, at least as far as i see it, would probably be legal, even if you change the law such that 50 of a company that the company has to have foreign owners of at least 50 , because that and that that deal doesnt seem to at least be driven in the immediate term by taxes. What do you say to that . Well, i think the burger king case is a closer call with respect to the law that sandy levin and i have prepared. I think thats true. But and we should be very clear, were not talking about blocking mergers. Mergers are an important part of the market system. What were talking about is mergers where the larger American Corporation takes on the foreign flag in order to avoid u. S. Taxes. And in the case of burger king. They dont have all these profits sitting in overseas bank accounts, but the reason they would change their tax home and residency to canada is to engage in earnings drippings. Where the Canadian Corporation then lends money to the u. S. Portion of the company, and the interest is then deducted from their u. S. Taxes. So its a way to dramatically reduce their u. S. Taxes through earnings stripping. Thats the only reason they would change their tax home. In other words this transaction is perfectly acceptable with that exception the only reason they would do that is to engage in earnings strippings. Congressman what do you make of the fact that Warren Buffett is involved in this transaction . A democrat. Hes argued for higher taxes at least on the personal income level. Well, this is one of those situations where people will continue to play by the rules until the rules change. So, no one is arguing here that this is somehow illegal. But, the answer to it is to change the law. Just like we changed the law in the early 2000s when you had a lot of these American Companies going off to the Cayman Islands and bermuda. We changed the law. That helped reduce the number of inversions. Now we have a situation where you see more flight, i couldnt agree more that we should do longerterm tax reform. Thats a problem. But people are arguing for longerterm tax reform as an answer to this problem. Know that theyre simply allowing this problem to fester. Because were not getting that in the nearterm. You know you go like there were two places to go, cayman or one other place. At this point any other country, basically, would be more favorable. Eu mean, what if illinois, you see everybody leaving illinois or some of these high state taxes they go to texas, you see businesses go to florida can you even imagine just trying to just make that illegal and saying, you know what . Youre not very illinoisic, youre not very patriotic to illinois, are you leaving your tax dollars . Well what what do you think of illinois . You dont like chicago . Youre going to texas you would never say that. You would never you would see that the flight of capital is causing it to happen, and you would try to do something to make it more business friendly to attract capital. Instead of just trying to do it this way. Yeah, but again, no ones argues that we shouldnt do Corporate Tax reform. Okay . But as you very well know, theres no Corporate Tax reform plan on the table write now that has consensus. The republicans couldnt even agree you know, chris, i think we ought to let them go. They still havent gotten their fries. So burger king still got that crappy smoky taste on the burgers. Let them go. I dont even care if they leave, do you . Hey, look, they can merge anywhere they want but they shouldnt leave american tax pacers holding the bill. How about that weird king they used to have with the plastic face. How creepy was that guy . Let them go. All i would say if i was mcdonalds id start a big buy American Campaign right here. Mcdonalds has its own the clowns are pretty scary, too, if you think about it. Speaking of Congress Speaking of congress anyway, chris, thank you. Good to see you. Always good to see you, as well. Likewise. When we come back tis morning, another leg room battle at 35,000 feet. Plus, the crumbling boardwalk empire. The revel closing its doors this morning. Shutting off the lights. Is this the beginning of the end for Atlantic City or does the gaming town have a chance to recover . Thats coming up in the next half hour. P breath in. And. Exhale. Aflac and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. You just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. In a we believe outshining the competition tomorrow quires 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. Another flight diverted due to a flight between passengers. This is the third time such an incident happened in the last week or so. This one a delta flight going from new Yorks Laguardia to palm beach, florida. I dont know if you heard about what happened last week. Witnesses say the altercation began when one of the passengers tried to recline her seat. And the passenger behind her got upset. The airline says the pilot diverted to the closest airport out of an abundance of caution. Last week of course a flight was diverted after a fight broke out when a passenger used a socalled quote knee defender. Thats this new little gizmo you can use the device prevents a seat from being reclined. What . So you can put something into the seat is that legal . Well apparently not. Unless its kind of a health issue. You should be able to do i cant wait to hear where sorkin is like, manhandling a little baby or something, and trying to physically take it back into coach, and they have to divert to get to because you want kissing the baby. Who got in trouble the leaner backer . The person who put the device on thats preventing the leaning back. Coming up more tax inversions. Were back in a moment. Bulldog quarterback takes the snap. Oh, he fakes a handoff and hes making a run. For mattress discounters fall kickoff sale right now, save up to 300 on Sealy Posturepedic and serta mattress sets. Even get 24 months interestfree financing on every tempurpedic. Youre going to love their football fieldsize selection. This calls for a little touchdown dance. Dont miss the fall kickoff sale at mattress discounters. Mattress discounters welcome back to squawk box, everybody. The eu wants more information from facebook about the social networks prepared 19 billion acquisition of whats app. The wall street journal reports european antitrust officials sent a second round of detailed questions to both companys competitors and customers. The main focus seems to be identifying the differences between a social network and a messaging application. Al by baba is reportedly planning to launch its u. S. Ipo next week. The sale could raise more than 20 billion. The company is still waiting for s. E. C. Approval to launch the sale. And former s. E. C. Capital advisers manager Matthew Martoma is scheduled to be sentenced today. Prosecutors are calling this the most lucrative case ever brought. Our next guest is allen murray. This former wall street journal Deputy Managing Editor is set to talk about everything from tax inversions to apples major icloud hacking headache. And good morning to you. Thank you, andrew. Good to be here. First of all, congratulations youve been in the job now two weeks . Two weeks. Ive got it all down. You figured it all out . Have it done. Look fortune is a great franchise. Im really looking forward to working with what should we expect to see . The big challenge is with the split of time inc. From time warner fortune came out of cnn money so were really creating a digital presence from scratch. Thats the first big challenge. And figure out what a multiplatform business franchise looks like. Thats a tricky thing these days. We look at newspapers. We look at magazines. We know how challenging it is. When you take on digital can you do it and get out of the frame that so many businesses that have been stuck with in that industry trying to do more and more every year with less . No, its hard. But i think its doable. The one thing i learned at the wall street journal is if you have a really strong brand you can come in, you can even come in a little bit late and you can still win. And i think thats what were going to be trying to show over the course of the next couple of years. Lets talk topics. We were talking about tax inversions before with the congressman. Yes. You have a cover thats really all about tax inversions. That was before i got there. Becky is in there. Theres a lot of people in there on that issue. Positively unamerican. This is taking a really strong stance saying that these companies are what kind of abandoning the country. What kind of feedback did you get from the business look the interesting thing and this is what happened in your conversation, you guys like, a fight with each other but we all end up at the same place. Which is, our Corporate Tax system is broken. Right. It needs to be fixed. Everybody agrees it needs to be fixed. We might disagree on exactly how to fix it. Right. And the other problem is washington is broken and so washington cant take on a big i covered the 1986 tax reform. Right. Where are you . Are you on the so alan sloan wants a torn ek it put on this thing. You trying to get me to disagree with alan sloan . He wants a torn ekate put on it might not have been the same alan was at the journal he actually understands some things. Lets hear it. I think a tourniquet might make some sense. Probably other people think we need to force the issue that the tourniquet wont allow the larger reform to take place. The larger reform is not going to take place certainly not before the next election. Washington is too dysfunctional. What happens these things really, really complicated and hard to take on and washington just doesnt have the ability right now. You have to hope after the next couple rounds of elections we have a chance at fixing that. Its not what is it 10 of the tax bill, it would be so easy 20 billion over ten years. And two trillion is over there and then alan you think about the if we unencumbered businesses completely. Hes worried about a race to zero. I think it should be zero everywhere and then you pay personally. You pay through dividends. Thats right. But then you have to take on the personal then you have to take on the very difficult problem of the personal tax on is it going to be and how much you know the election is coming up. Its probably only going to get worse for democrats. And its not going to pass now its more electioneering, its popular to say corporations dont pay enough tax. Its popular to say that. Almost everything that happens in washington right now is electioneering. But if youre going to try thats the real sad story here. I mean you talk about positively unamerican, thats the fact that we cant tackle so heres what we have both sides agree needs to be tackled. Democrats are going to push the tourniquet, republicans are going to push the overall thing and neither one of them is going to work. What happened back in 1986 . A lot was different in 86 but it was one of the great bipartisan achievements of modern times. It took a couple of years. But, one of the things thats changed is that in the 80s you had a group of professionals in washington who werent particularly partisan. Who really thought their job was to take the partisan impulses of their bosses, and turn it into good policy and good legislation. Thats been blown up in the last couple of decades. It doesnt exist anymore. And its not going to be easy to put back. I want to transfer over to segue over to a different topic which is apple. Because you guys have been writing a lot about it. The icloud hacking situation over the weekend. The nudities or the nude selfy whatever theyre called. I think this is a big issue. Not so much the celebrity nude photos. Last week we had jpmorgan and a handful of other banks that were being hacked by russians. Right. In that case they think, jamie dimon talk about what 600 people he has on his staff working on cybersecurity. And the amount of money that they spend every year he wrote about in his annual report. Huge amount of money and this affects every Single Company in america. Cybersecurity has become a huge issue. Look, apples coming out on what september 9th, talking about a new mobile Payment System. Well how are we all going to go to a mobile Payment System if people dont feel that their money is secure. Do you have anything in the cloud that you should tell us about right now . I can im quite confident that there are no nude photos of me in the cloud. And i certainly hope there are none of you. I was just going because you couldnt see me either, right . Thats what i said earlier. How safe should consumers feel though . When you had up what happened with target, the banking situations, look at whats just happened with the cloud. It gives me a little bit of pause. Absolutely. Its very frightening. Its frightening on the consumer level. Its frightening on the National Security level. I talk to guys who run big sort of infrastructure companies, mines, power companies, theyre worried about this, too. About somebody hacking in to their systems and being able to can i make a different argument . From the bank stuff when you think about target or anybody else, nobody has been ef eerily or not even severely truly harmed. Everyone got the money back. That we know of. On the banking stuff it was very expensive for target. For the companies. But im saying on an individual basis, everybody wakes up and they see this news and they freak out and think oh, my goodness everythings going to be hacked and if you really think about it, the celebrities are hacked. It was on an individual basis. And it cost a lot of money. It cost a huge amount of money. A huge amount of attention. The consumer will pay for it on the back end. But in terms of the sort of from a sort of individual perspective we have yet to be truly sort of and so you thankfully. You have to keep hoping unless youre Jennifer Lawrence. Yeah. You have to keep hoping the good guys win the arms race. But it is escalating every passing day. Its a really big, big thing for american business. I cant even imagine how much its even costing them. The banks have talked about how they billions are effectively fighting nation states. And theyre effectively fighting nation states at this point. Correct. They have to protect themselves. Im not arguing this isnt a big issue for business or a larger issue for society but on an individual basis sort of the emotional reaction that people have to this type of thing when they say oh, my goodness is my stuff really safe, i think its actually safer than they think. You think im totally not if youre one of those celebrities who had your photos hacked. You dont feel very safe about it. You are the caretaker now of quite a brand and you remember even buddy fox, holds up and says this is the bible. And it was fortune with a picture of gordon gekko. But he did hold up a picture of fortune. Thank you. Thats the nicest thing youve ever said to me. It probably is. My advice to you would be number one my advice to you would be get a web strategy together. Thats figure out digital. That is figure out that is so wise of you. That is job number one. Because print might not be as lucrative i think magazines will be around for a long time. But you got to figure if youre going to grow your audience you have to have a good Digital Strategy and its not easy for a magazine to figure out what a daily Digital Strategy is and thats what were going to do. Thats all im saying. Get the digital get a Digital Strategy. The articles are better in fortune. The articles are better in fortune. We have some good comments. We have some very good columnists, becky. Thank you. Not that youre talking about me. Theres nothing in the cloud on alan sloan is there . Tell me know. Coming up. Alan thank you. Coming up, a a steamy labor day. A steamy conversation here at the u. S. Open legendary tennis coach b. G. Will join us next on the big weekend winners and losers and whats to come and then later, the plan to kill amazon. How the retail giants competitors are attacking amazons market share. In new york state, were changing the way we do business, with startup ny. Weve created tax free zones throughout the state. And startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. Thanks to startup ny, businesses can operate tax free for 10 years. No property tax. No business tax. And no sales tax. Which means more growth for your business, and more jobs. Its not just business as usual. See how new york can help your business grow, at startup. Ny. Gov its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. When im working, things can get so hectic. So sometimes i need to find an easy way to express whats most portant to me. Like, with my crew, i use shorthand to talk to them and tell them what i need. And when i need to talk directly to my fans. But the most meaningful shorthand of all is the one i use when im about to drive x. Its an easy way to tell everyone that im about to drive. And i do it every time before i get behind the wheel. Use x to pause the conversation before you drive. Because no text is worth a life welcome back. Making headlines, europes Ryder Cup Team is now set. The captain naming three wild card picks this morning. Ian poulter, you might pick him. Lee westwood who is just always stolid and steven gallagher. They will join the nine automatic qualifiers, including rory mcilroy. U. S. Captain tom watson expected to announce the american wild cards later today. The matches against the u. S. Will take place at gleneagles scotland starting september 26th. Supposed to this year for us . I dont know. Not tiger. I dont know who will pick. It will be interesting to see who watson picks, and that tournament is actually the week before at dunhill links. Talk more about that. We do have to talk more about that. Serena williams reached her first grand slam quarterfinal of the year with a 63 victory over kaia kanepi. At the u. S. Open yesterday. Keeping her head in the running for a Third Straight flushing meadows crown. Does this guy have two names . No. B. G. Brad Gilbert Joining us now to talk winners and losers is brad gilbert. Twoname guy. The twoname guy. Former professional player and coach, and met up with you, brad, thanks for coming down yesterday, it was great to see you. Family loved seeing you. And he was hes amazing. Gives us analysis live. While we were there. And one of the matches that we saw, well get to serena in a second. But between andy murray and tsonga, thats as great a tennis as i mean certain of the volleys and rallies, thats as great as it gets, bar none. Bar djokovic, nadal, anyone. It was tremendous tennis. I was there till 2 26 a. M. Last night when the match finished. Hes showing off. I did not get back to my hotel until 3 05 in the morning. And all of a sudden i got the wakeup call at 6 50 from the driver outside youre there. I was like, okay. It was great tennis yesterday. I thought murray played fantastic, in beating tsonga. And he sets up a blockbuster on wednesday night with djokovic. And the tennis was outstanding. For murray covering the court like a hawk yesterday. Tsonga with his athleticism. Its the best ive seen murray look in a straightset victory since wimbledon in 2014. We were fully dug in for what i thought was going to be a fiveit was he could have won the first set and i was sure he was going to win the second set when he was up a break. But, andy murray dug down. And whenever hes won, brad, he has the ability to dig really deep and to get to that level you need to be able to do that. We all are able to do it. Well, hes really struggled the last 13 months beating top ten, top 15 players. And i think this was a luge step for him. He lost the match to him a month ago where he was up 30 in the third, in toronto, and i think that really disappointed him. But he took care of business yesterday. And i think thats the best ive seen him look from start to finish. Ill tell you, start watching and you start really getting interested in all the stories. Serena, she was nice to say that the girl gave her a run because the girl did not give her a run. I mean serena was just overpowering. How come she hasnt made been past a quarter finals . I mean you expect shell win or will caroline give her a run for her money . Well, serena, if she would win, stands to make 4 million, would be the biggest hit in tennis history. Shes peaked this year in wta events and surprisingly enough has not played that well in slams. Nobody in eight sets so far, super jo has taken her past three games. She plays Flavia Pennetta in the quarters who she trounced last year in the semis. Just crushed her a couple of weeks agoa cincinnati. Shes playing outstanding. I think the leopard print dress that shes wearing is working for her. She goes ah that works for her. I said that looked like when i play my wife. I mean the power game versus someone who can barely return it. You know what i mean . But right, my wife is serena yeah. Thats the only problem. So who is playing today brad . The big forecast . I mean isnt caroline playing again today . Caroline wozniacki is playing sara errani. Its a great story. A lot of people know about, you know, what happened before wimbledon with rory mcilroy. You should talk about that. Because, in my house, theres a huge, both my daughter and my wife are huge caroline fans. And theyre just mad at rory. Theyre just mad that he did it over the phone. And then he started winning again. And shes a great girl. And im worried, i said, i hope he doesnt go on a bimbo binge. Was she not a great girl for him . And look at her now. We go from the cloud to tennis, to you slide in a bimbo reference. Good, everybody. I just dont want him the tiger problem. I mean, i just think she was a really good catch. And i think shes better off without him. Shes been winning as a result. And i love rory. I mean not to disparage him. Im taking my wifes i know when to argue and when not to. You think that she can beat serena this year . Im going to say her stock just went back up on the upswing, and she is doing something unusual to prepare for her tennis. She said that in early november shes running the new york marathon. Shes been running upwards of eight, ten miles a day. To get rid of some of her things going on in her head, she said a little bit. And now finally after a couple years shes playing the best tennis that ive seen from her. Played fantastic the other day against sharapova. Plays sara errani today. A very tricky player. But listen, if anybody there is to root for her in this tournament, its her. Shes a great story. And i would love to see her go all the way to the final. All right. So who do you think will be in the final . Djokovic and federer could meet, right . Is that right . Love the way that federers playing right now. Remember we talked about that stock the other day. Pays huge dividend. Can still go higher. Hes playing great. I think potentially hes on a collision course maybe with dimitrov. But i think wednesday night match, dont count out andy murray, 128 down headtohead versus djokovic. I think thats a great matchup. But right now the eye test tells me the two guys playing the best tennis are djokovic and federer. And women just real quick . Winning it, i pick fed before the tournament but im starting to waffle now a little bit. Seeing you know, how good the djokovic is playing no, no, women. Who is in the final, quick . Well i picked in my draw i picked djokovic and fed. I really went out on a limb there. I picked number one and two seeds. But right now, im liking what i saw from andy murray yesterday. For women who is in the final, for women who is in the final . Wozniacki and williams. Thats going to be awesome. All right. Super joe who is in your bracket . Same. Same. Same picks. Same picks. Andrew, you were quiet today. Im sticking with you. You know, i got im going im giving up my middle name for brad. We need pronouncers on all these names, brad. You got too much of an earful from the cloud. The tennis took us down. All right. See you later. Thank you. Thanks for getting up early, too. 2 20 last night. All right. That was i got up before he was finished last night. Wow. When we come back this morning, Atlantic Citys revel casino shut down early this morning. Less than three years after its open. Up next, were going to talk about why september looks to be a particularly devastating month for Atlantic City. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready for real business. Welcome back, everybody. Some big trouble in Atlantic City. Showboat casino closing on sunday and the 2yearold revel casino closing early this morning. Morgan brennan is there, and she joins us with more on this story right now. Morgan, good morning. Good morning, becky. Yeah, tell take a look behind me. This is a 2. 4 billion revel. It just went dark officially closing its doors just a few hours ago. And if you look just past that, thats the showboat. The caesars casino that as you mentioned closed on sunday. Now together both of these properties employed 5500 workers, the majority of which dont have new jobs lined up. Now that coupled with the fact that this ask a redeveloped part of the boardwalk thats now going to sit vacant made for a very sad Holiday Weekend among both residents and tourists. Its just very emotional. I think its kind of surreal. I dont know if its hit me yet. You know, were going to get in our car, were going to drive home, and at some point then were going to say, were not going to the revel next week. Unemployment of 6,000 or more is not good for anyone. And so its very sad to see that happen. You start laying people off, a lot of crimes start coming with that. Later this month another boardwalk casino trump plaza will also close and thats going to bring septembers job losses to a total of 7,400. Or nearly a quarter of the entire casino workforce. Triggering one of the biggest mass filings of unemployment in new jerseys history. So big, in fact, that the Convention Center is being rented out as a resource center. The three casinos accounted for over 30 million in tax revenue, or about 15 of the citys budget. And that means hundreds of Municipal Workers could also face job cuts moving forward. Now, were seeing this because more casinos continue to open in other states. Baltimores horseshoe casino opened just last week. And thats contributed to an almost 50 drop in gaming revenue here since 2006. But while gaming analysts say less supply will actually benefit a. C. s remaining casinos, the job losses are the biggest worry. And remember, a. C. Struggles with 14 unemployment, and a poverty rate thats double the national average. So this is a very critical time both for Atlantic City and for the region, as a whole. Becky, back to you. Morgan, thank you. I know that one of the huge issue is just these casinos going dark its a limited skyline to see all of those go dark at the same time has a lot of people worried about what happens in the city. Are there any plans at this point whether they can actually figure out whether they can keep those lights on on the boardwalk . I know theyre looking to potentially keep minimal lights on. But right now, the biggest, i think the biggest push is trying to get new investors in to these vacant properties, and also keeping security guards at least minimal security around the properties to keep the socalled riffraff from coming in and squatting here. So, well have to see what happens. But, word is there are investors looking at these properties. All right. Morgan, thank you very much. Morgan brennan. Okay. Coming up, the bull market has plenty more room to run. Thats at least according to squawk market master Jeremy Siegel. Hes going to join us next on his target for the year end and his take on this weeks jobs report. Plus, nude celebrity photos leaking online. Raising concerns about privacy on the cloud. Find out if your photos depends whats in your photos, could be at risk when squawk box returns. Location. Location. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. Frotheres no reasonn average 17 we cant manufacture in shuthe United States. Here at timbuk2, we make more than 70,000 custom bags a year, right here in san francisco. We knew we needed to grow internationally, we also knew that it was much more complicated to deal with. I cant imagine having executed what weve executed without having citi side by side with us. Their global expertise was critical to our International Expansion into asia, into europe and into canada. So today, a customer can walk into our store in singapore, will design a custom bag and that customer will have that American Made bag within a few days in singapore. Citi has helped us expand our manufacturing facility; the company has doubled in size since 2007. If it can be done here in san francisco, it can be done anywhere in america. Vacations over. It is time to get back to work. Looks like youve been missing a lot of work lately. I wouldnt say ive been missing it, bob. Good one. Well get you ready for the short trading week. And jobs friday with squawk market master Jeremy Siegel. Plus the plan to kill amazon. How the ecommerce giants competitors plan to chip away at amazons market share. And a high profile hack attack. Nude celebrity Photos Leaked online. Well tell you how the breach may have happened and what apple is doing to fix the problem. Welcome back to squawk box here on cnbc first in business worldwide im joe kernen along with becky quick and Andrew Ross Sorkin. Take a look at this video of kate no its Something Else. Were showing you right now at we arent going to show that. If youre tuned in for that. This could be making you fat. Not just soda makes you fat. This video could make you fat. Were going to tell you why later this hour. How . I dont know. Oh, thats chris whats his name. Which one is this . Is this guardians of the galaxy . No. I saw tom cruise over there. I saw tom cruise. Yeah i saw chris pratt. Is it just one video . No its more than one video, yeah. Because i saw chris pratt. Maybe its going to the movies. Maybe popcorn. You know popcorn. Its the new study on carbs maybe. We can talk about it. Making headlines this morning a major u. S. Business lobbying group says Foreign Companies in china feel targeted for unfair enforcement of antimonopoly and other laws. The American Chamber of commerce in china now warning that investment there could decline if conditions dont improve. And the wall street journal reporting that chinese officials are giving microsoft 20 days now to respond to antitrust questions. Regulators there questioning the Software Giants bundling of windows and Office Software and a deal just crossing the wires right now. Norwegian cruise lines agreeing to acquire Prestige Cruise International for more than 3 billion. The tieup would give norwegian access to luxury cruise ships and more affluent clientele. Shares of norwegian are halted at this point. Of course well bring you more about that deal as we get it and well see where that stock goes when it does get released. Lets get a check on the mark markets. So far it looks like the u. S. Equity futures would open higher although weve seen those futures pair their gains by about half. Dow futures up by about 15 points, s p by 2 points and the nasdaq by 6 points. In asia there were strong gains in the nikkei and shanghai markets. The nikkei in japan was up by 1. 25 . Shanghai composite was up 1. 3 and in europe in the early trade moderate green arrows for most of those markets. The ftse and mib in italy is up by 0. 8 . Okay. Markets posting better gains, best gains in four weeks ahead of a full week of data, and on friday really we just had a jobs report. Is this the jobs report . Ready to go. All right. Thats right. Yesterday was september 1st. Okay, okay. I guess it really is going to happen. Finishing off with fridays jobs report. Where does squawk market master Jeremy Siegel think that were headed . The Wharton School professor of finance joins us now. And has stayed steadfastly positive on things. And unlike a lot of people, jeremy, you use the word secular all along not sick u lar. Sill secular . Were still in a bull market joe. Joe when we get older time seems to go faster. Thats why those monthly reports seem to be one right after another. I know. But were not over with this. Were not over with this bull market. Im still sticking with my dow jones projections of 18,000 by year end. We are creeping closer to fair market value which i think is approximately 18 times s p earnings. Stocks over time it shouldnt be a surprise, they just tend to go up. Obviously. Because they were, you know, they were at 30 or 40 on the dow. Its now 17,000. So, we understand that. It would be nice to know, though, if Something Like 20082009, would be nice to just go to cash at times like that. Are the central bankers of the world paying us forward too much . Is there a risk at some point that weve just lived beyond our means, in all ways, and that the debt builds up to the point where we have another collapse . Well certainly thats a chance. You know, we got a cbo report on federal debt, a new one just a week ago, the next three, four years actually look very benign, as far as the debt situations concerned. Its that far out debt, you know, we know about medicare, we know about Social Security not being solvent far out but thats not seem to be any nearterm threats. Of course, europe is still stuck. And the reason european markets are up is they expect draghi really to move in to quantitative easing. Were moving off of quantitative easing. And its been my feeling as i voiced many times that the low Interest Rates are really mostly fundamental forces in the economy, theyre not just because the Federal Reserve, you know, is pumping in liquidity. So, i dont think were going to get much higher Interest Rates. I mean maybe the, you know, the tenyear will go up to 3, maybe 3. 5. But that will only happen if the economy really booms at 3 to 4 and that means better earnings for corporations. You just worry about Currency Debasement and youve seen the ads that we have of all the Central Banks just printing out money. And if everybody debases their currency, then nobody nobody loses relative to everyone else . It just seems like a free lunch. It seems like, if productivity gains arent there, and were not were not actually doing things that significant things to raise everybodys standard of living, and yet everyone lives high off the hog, isnt there theres never a day of reckoning just from printed money . Well, when we talk about debasement, we should see inflation. But we dont. Because that is the first sign that were really debasing the currency. I mean take a look at zimbabwe, and mugabe definitely debased the currency virtually to zero. That is classic debasement. If we dont see inflation, that means that the public at this time wants to hold that cash. The banks want to hold that cash. Now certainly the Federal Reserve has to figure out, you know, how to reduce that cash, how to absorb that character in the future. Ive written several articles about that. But we dont see any debasement of the major world currencies, deflation is still more of a problem than inflation. Debasement is more of a problem than so deflation. Deflation is more of a problem than inflation. Which is of course the debasement of the currency. Right. So that makes me seem like were still on the side where, you know, where you could ease too little instead of easing too much which is just hard to believe dont forget 2015 event. Dont forget in october, fed is stopping the quantitative easing. Oh, my god oh, my god theyre crazy. Theyre wacky. Theyre insane. Youre kidding me theyre going to stop the qe. Youre kidding me. But were still at zero. Weve been in a fiveyear recovery and weve been at zero. Jeremy what the chance when we do go to zero theres a little bit of a blip at minimum a blip in the market . When we get out of that zero . Yeah. I mean all depends on what you know the fed funds futures markets say its going to happen next summer. If it happens a little bit earlier, there will be a little ripple in the market. But my goodness weve lived long enough to see treasury rates at 5 , 6 , 7 , 8 , you know. Im not scared 6 of 3 , im not scared of 3. 5 . And thats only going to happen if our economy continues to increase, and we got another employment report friday, probably north of 200,000. This looks good for earnings. Were going to get about 120 on the s p. I like that. Jeremy youre talking about the United States for the most part. What do you think about japan, what do you fwhi europe . Europe, yeah, europe, ive been saying that the euro has to go down. Its too expensive. Weve seen it go down from 1. 40 to about 1. 31. Draghi is going to try to talk it down more maybe with a qe of 1. 20, 1. 15. I think were going to get the recovery in the euro market particularly the peripheral countries which need a better competitive position. Japan, yes, shinzo abe has faltered a little bit. The third arrow is not in place. Dont give up on that country yet. Stock investors actually take a look, have said we still have some chance of recovering there. But, theyve got the most aging economy in the world. They have to grabble with that. Thats not real really the same problem that the United States has. Our economy is the best of the three major engines in the world, and thats why i still have faith in u. S. Stocks. Hmm. All right. I get it. Im not worried. Im not either. Just relax everybody. Not worried until we have the next guest on that says look out could be like 15 minutes, jeremy. But, you know, that if it was a once in a lifetime financial break that we had. Crisis. Right. Hopefully you know, i hate this expression jeremy for, and have you figured out as because is it one year is now one 58th of my life, is that why they go so fast now . Yeah. Youre your perception of time goes log rithismically. To a baby a year is forever. To us its getting shorter. The great Downton Abbey star maggie smith said its like at her age its like she has breakfast every hour and i hate that expression. I hate that expression. Because thats what it seems every day im waking up. Every day its oh, my god its 4 00 a. M. Again. Time to make the doughnuts. Jeremy, thank you. When the singularity comes upon us and we live forever then it wont matter. Ive got a big problem. With the singularity . Icloud. My icloud was just hacked. Seriously . Look on twitter. You wont be able to unsee it. Let me look. You guys a leaked photo of andrew. Oh, i cant even say the name of that twitter thing. Whoa oh, you know who that is . They put your head on george. That was a seinfeld that was from seinfeld. That was George Costanza in one of his modeling shots. Wow. There you have it. You have a really hairy back. Among other things. And your socks. Its sort of a spitzer pose you got there. Oh, boy, oh, boy. When we come back. Were going to talk about the race for fda approval for a new kind of cholesterol drug. Its a massive market, and there are several Companies Working on it. Well be talking to the ceo of rejen ron next. And later thats right, nude photos of celebrities leaking online over the weekend. Well tell you what apple is doing about it and how you can keep your data safe. Stick around, squawk box will be right back. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Welcome back to squawk box. Take a look at the futures right now. See how the market is setting itself up on this Tuesday Morning after this long Holiday Weekend. The dow looking like it would open up 20 points higher, the s p about 2. 5 points and the nasdaq up a little over 7 points. Shares of novartis getting a boost this morning. That Company Announcing positive Clinical Trial results for a new Heart Failure drug. As a result analysts are raising their Sales Forecast for the medicine. The Company Calls the expected launch of the drug next year quote the most exciting ever. Says Profit Margins on that drug will be good. Can we show that picture . I dont know. I dont know. Because people are now saying its a fake. Because you dont wear socks. Remember how many times you dont wear socks . And a naked shot of you, you would not be i dont want to tell people where to look on twitter because of the twitter handle. I would argue its a fake. You would argue i would argue its a fake. Maybe well make it and show it. News also out on a big race over new cholesterol drugs. Biotech reporter meg tirrell got all are you going to be age to talk about this now after thinking about andrew . I dont know. Im a little flustered. With an exclusive guest, and leonard i want to just see what this market cap is on this stock now just because i watched you just you you you where was it . I mean ive known you forever. Where was it ten years ago, was it a billion dollars ten years ago . No, no. 35 billion now. Give him a high five. I cant reach him. 35 billion market cap for sorry. Thats okay. Theres a reason for that. Its a potential 10 billion market. A new class of drugs being pursued a multiple pharmaceutical companies, lowering ldl levels of bad cholesterol. Leading the pack are amgen and regeneron which part nred with sanofi. Over the weekend regeneron and sanofi released new data on their therapy. Joining us now is regeneron chief executive officer len schleifer. Good to be here. Lets talk about this race. Amgen saying its filing for approval. You guys shocked everyone a couple weeks ago when you bought this voucher for priority review at the fda. Who gets to market first . And how much does that matter in gaining market share . Well you know, i think that everybody would like to think this is a winner take all race. And i dont think thats exactly the way it is. You know, theres if you think of the statin class which was the sort of the standby for and will be for treating lowering cholesterol, they were four or five different statins. So theres plenty of room for multiple entries. Of course were pretty competitive and wed like to get there first. Does this voucher which gives you a sixmonth review instead of the standard ten does that get you there first . It might. So maybe you can tell us about how big this class is potentially going to be. This is folks who dont respond to statins. How many people could this benefit . Well you know, i think that you have to think about vard cardiovascular disease as a whole. By the end of the next decade, it is if not the number one killer its really a big problem. And while statins have done a great job at lowering the risk of dying from cardiovascular disease we find that many people just cant get to their goal and still have a very high risk. Theres probably 20 Million People in the European Countries in the United States who are who have a high risk or not at goal and probably could stand to have their cholesterol lowered further. What is the current state of what we know about good cholesterol, bad cholesterol, and heart disease. I mean do we know for sure that bad cholesterol will lead to a heart attack down the road . Yeah, this is unquestionable. This all started over 40 years ago, when Mike Brown Joe goldstein figured out that people who were dying at a very young age had very high cholesterol because of a genetic defect in whats known as their ldl receptor. And what this receptor did, that they discovered, won the nobel prize for that, is that it was age to take bad cholesterol out of the bloodstream and lower that bad cholesterol and then reduce the risk of heart disease. From the first statin, that was introduced actually by my chairman when he was at merck, introduced the first statin they showed in a classic study that you really lowered the risk of dying of cardiovascular disease if you lowered bad cholesterol. Thats unequivocal. Its unequivocal. The bad cholesterol forms the plaques of atherosclerosis or whatever causes but theres other things involved but if you could just lower bad cholesterol that goes a long way. Theres no question. And the genetic data and the clinical data, the testing, everything is with the bad cholesterol. Theres not a lot of strong data for the socalled good cholesterol. Making a difference. Really what you have to do is lower the bad cholesterol. How does this drug class act differently . How does it work . Well the beauty of this it acts rather similarly. And what it does is it upregulates this ldl receptor, much like statins do but it does it even further and these receptors can suck the bad cholesterol out of the bloodstream much more efficiently. So the side effect profile is also better for this . There are some people that dont tolerate some of the statins well. Thats a hotly debated area. Whether or not thats true. But in terms of whether people dont tolerate statins. A lot of people feel they dont. Although that hasnt been established. This is an efficacy play, this works better than statins. If you take patients. We reported data over the weekend that if you take patients at high risk, max mali treat them with a statin you can still lower their cholesterol by up to 60 . So its not instead of statins. Its in combination. I think statins will be the main therapy and then you had on top of that you can lower cholesterol even lower. Most people even with statins arent getting to as low as they should be. But these are injected drugs. These arent pills. Thats one thing thats kind of interesting. How much do you think thats going to be a barrier to uptake . How often . Once every couple of weeks is probably the typical dose. I think that what we found over the weekend with some of the data that was reported at the esc conference in barcelona that the compliance rate for these drugs was very good. And you know the compliance rate for statins is pretty poor. Theres a high fraction of people even if theyve had a heart attack after several years dont stay on their statins. But at least in our trials, people stayed on this. No way to make a pill eventually with Drug Delivery technology . With a protein therapeutic as you know you cant get these things absorbed. But its a shot. Its an auto injector. Takes about ten seconds and lasts you a couple of weeks. I dont think that people find that too objectionable. They studies they stuck with it. This is a call for a low carb diet in the New York Times. Because they talk about good cholesterol, bad cholesterol and they found the low carb changes your internal whatevers, and apparently you get a lot of good cholesterol people who did the low carb thing had a lot of good cholesterol but it didnt change the bad cholesterol so its the bad cholesterol the good cholesterol doesnt matter at all . Well i dont theres not a lot of strong data that what there is really strong data for is the bad cholesterol. Ldl cholesterol you really want to get that down. I read that article about the diet and i dont know today theyre that was proposing that you eat no carbs and lots of fat, and last month it was lots of fat and low carbs. But i mean, a well balanced diet probably makes the most sense. But keeping your cholesterol low and if you need it to take statins, and we hope some day to take our class of drugs if we can get it approved, that may be the way to go. Youre almost big enough where youre not going to get bought anymore, are you . Youre really expensive. Youre really expensive to buy. Although sanofi owns more than 20 . We have a Great Partnership with sanofi. Just stay with we like what we do. I mean this product was invented by its a tax inversion. Sanofi owns 20 how much do you still own . You can be a french company. I own a fair share of the companies. Like what . I dont calculate it on a daily basis. Last time you looked . It was a lot. But we held on for 25 years. I know. I know. You is it bigger than a bread basket . Is it double digits, above 10 . No i mean its good, its good. A 35 billion company. Len, thank you. Do you own Marthas Vineyard or just part of it . We were just up there visiting. We werent in the hamptons at the big party that you were at this weekend. Oh, right exactly. Thank you. Great to be here. Coming up, the plan to kill amazon. New York Magazines kevin ruse says the Six Strategies competitors plan to use to stake down the retail giant. Were back with that and a lot more. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Welcome back to squawk box. Guardians of the galaxy winning the Holiday Weekend box office. It came in with nearly 275 million in sales so far. It is now the highest grossing domestic movie of the year. But passes fellow marvel hero captain america. Still to come this morning we do have some new data on Small Businesses from Payroll Processor paychex and the fbi investigating a hacking incident that resulted in the release of nude photos of celebrities, including oscar winner Jennifer Lawrence. Well tell you how the hackers may have cracked the stars cloud accounts. And what you can do to protect your data. Squawk box will be right back. And. Exhale. Aflac and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. In a we believe outshining the competition tomorrow quires 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. Welcome back to squawk box. Take a look at some stocks on the move as wall street returns from a threeday Holiday Weekend. The big one tesla upgraded by nicolas to buy. That buy rating with a 400 price target. Company saying that that company it will now be well positioned for growth in the luxury electronic electric vehicle market. As it is as it is ahead of schedule for ramping up its production. Also compuware to be sold to a private equity firm. The wall street journal says a deal for the Software Developer would be announced as soon as today. And tmobile u. S. May receive an improved takeover bid from frances iliad. The company says it has set limits on how much money it would want to raise to fund such a transaction. And shares of furniture retailer kahns getting hammered this morning. That company cut its outlook for the year with company citing particular problems in its credit operations. Paychex is out right now with its latest Small Business jobs report. The index showing some mixed results for employment growth last month. Joining us right now with the details is the president and ceo of paychex, and martin, what happened . I know there were some concerning outcomes, and even downturn in some areas. What was the problem . We had a little softness in the last three out of four months, becky. But overall were very strong still over last year. Its been a solid one on one which shows the growth rate for unemployment is still stronger than last year and good solid 1 growth rate over the base year. I mean thats good news in general that were better than we had been. Why the third decline in four months . Is there something thats happened this year . Well, i think, you know, youre seeing a little bit of a mixed reaction in housing. So youre seeing new Housing Starts are down a little bit. Where existing home sales are up. I think that always drives a lot of Small Business growth in jobs because we have a lot of jobs at paychex around that. And that could be part of it, is what youre seeing and it could be just kind of a summer effect. The good news is that overall when you look at the last eight months of the year its been a solid pretty much 101, which is one percent stronger growth rate. What regions are seeing the strongest growth and the weakest . The Mountain Region is still the strongest. So were youre consistently seeing that. I think thats helped by arizona and some of the growth in arizona and phoenix area. Youre also seeing that nevada Mountain Region. The central weeken west north is also very strong and thats a lot of energy jobs in like north dakota. Producing more oil than texas or second to texas only, i think. So youre seeing growth there at the most. Weve talked to some economists today. Some who are looking for Even Stronger than expected numbers this friday. When we get the government jobs report. So that surprise you to see a very strong number given some of the weakness that youve seen in these reports . I think wed see something consistent. So it would be my guess. So might be around 200, or 220. I dont think it would be a real strong number based on at least what were seeing. But this is measuring Small Business growth. Is what our measure is. And employers under 50. Which do make up 95 of the businesses in the u. S. Is there a way to break down by industry which of the Small Businesses are doing the best . We had looked at it personal care right now, and thats a good sign i think people are spending Discretionary Income on personal care products, thats starting to pick up the most as far as the jobs standpoint. Okay. Marty, thanks a lot for joining us this morning. Thank you. Story everyones buzzing about this morning, nude photos popping up on social media after the apparent hacking of icloud accounts. Jon fortt joins us on set. Andrew keeps telling me dont worry, its not the whole cloud. Not all of icloud. Just they went after individual people. And that does that does nothing to allay my fears of how serious this is. Because hes got so many nudes in his collection. No, no. But if you could just pick someone out and go in and hack whatever they have on the cloud, and get access to it. Thats a problem. It is a problem. Its kind of scary stuff. Now the first thing to know about this is theres this thriving underworld economy in trading peoples naked photos. And its not just celebrities. Also individuals. When its just ordinary individuals it tends to be called revenge porn. And people will go out and find photos of people, either through their email accounts, or through Something Like icloud, and then trade them, sometimes try to blackmail them or harass them or threaten them for sport. And this has now spilled over to kind of like baseball cards. That many people have naked pictures of themselves is it easier to get into a bank account . Its not necessarily easy to do. The question of the question of that many people have maked photos . Yes. Its apparently become a thing since i cant well is it less of a crime to why not go right after where the money is to the bank account . Why mess around with black mail and thats crazy. I think the thing is you need two things in order to access someones accounts, whether they be on g mail on icloud and from what i can tell these photos that were released and gathered probably came from multiple sources. You need an email address and you need a password. And too often emmail addresses get out there because theyre on a list and then you can figure out a password because a lot of people either dont have secure passwords or they reuse passwords. And weve seen a number of these hacks recently where big trolls of user names and passwords have been released. If you know a celebritys user name and you have a big trove of data you might be able to find something from that. Its not at all clear that icloud itself has been compromised in any way. Apple doesnt have theyve got a short official statement out on that. They are investigating whether theres been some breach some speculation that people were using the find my phone technology to somehow get in there. No. What im hearing is that no. The reports that there was some sort of find my iphone hole that was just patched up a few day s ago not true. This is literally people getting the address and guessing or doing Something Like that to figure out the password. There are multiple ways you can do it. You can guess. Maybe if you have a database of possible passwords you can run those. There are password cracking software that will try multiple different combinations and if your password is short i told everyone if you have double authentication with your phone youre in good shape. Am i wrong . Youre in better shape. A lot of times, if youre not a celebrity, then chances are youre less likely to be a target. And if your password is a bit tougher to crack, then people arent necessarily going to spend as much time trying to crack Andrew Ross Sorkin when they can crack Jennifer Lawrence instead. Well, you never know. Her photo is probably going to fetch a little bit more than yours. I found that i have a fan on twitter apparently. So i think you got a couple fans on twitter. More than i do. This one has a they know that my password is joe kernen 1 and therefore you have boxers, and heres another issue, though. Its kind of a canary in the coal mine. We know that 100 plus celebrities photos were posted. Some of them claim theyre not actual authentic photos. Keep in mind, i would think probably two to three times more celebrities were actually hacked, just those people didnt have naked photos. So we dont know about them. If youre a celebrity change your password and maybe the email address on your account. Dont take naked pictures of yourself. That, too. But its not just about the photos. People store all kinds information people are taking more naked photos, right . Thats a thing . Yeah. I mean, we hear people do it all the time. Its not just the kids doing it. Celebrities doing it, too. Apparently its like the weird thing is, when you had to develop the film and send it out to somebody, people didnt take pictures or people got their homes broken into people got their homes broken into and photos or videos that they had taken with their significant other would get exposed. Now you dont have to break into the home. There are passwords you can crack. Everybody sort of looks the same naked. I dont really understand the big attraction. You know what i mean . To the whole naked weve all seen it i dont know. Go to a nude beach. I put the clothes back on. Half those people. I saw that picture of you at the beach already. You know. It stuck in my mind. You cant unsee that either. Jon, thank you. How do you know about this huge you know, this underworld with all the naked you read about it . He had to do some reporting this weekend. Ive been reading about this for revenge porn. Its scary stuff. Revenge porn, there are laws that have cropped up in california and elsewhere trying to go after the people who do this to people. Joe you block all those people on twitter. I block watch out for the revenge blockers. Coming up the sixpoint plan that amazons competition is planning to use to take on the retail giant. Kevin ruse of new York Magazine is going to reveal amazons weak points. Plus why action movies could be making you fat. Weve got that story in just a moment. Cute little guy, huh . This guy could take down your entire company. Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. Welcome back to squawk box everyone. In headlines out of europe this morning a Frankfurt Court banning Uber Taxi Services across germany. The court argues that ubers drivers dont have the necessary commercial licenses to pick up passengers. Okay. Amazon continuing to be the king of ecommerce with an empire worth 75 billion. But can the king be dethroned . Several startups making their way into the ecommerce space think they can. What would it take to topple the online you know what . Because of you whenever i see the word behemoth i think of bemoth. Not because of me zbp joining us is new York Magazines Business Writer the author of the recent article six ways competitors are trying to kill amazon. You are up early this morning on the west coast, kevin. Help us here. Can anybody really kill am zoon . Well thats what i wanted to find out. I sort of we take it as a, you know, as a sort of precondition that amazon is too big to fail right now. And they certainly are huge and growing every day. But i called around, and talked to analysts, and people who watch this space and just sort of basically asked them, what could companies do to kill amazon if they wanted to . What are the sort of weak points in the armor . And they told me basically, six things. Three of which i thought were the most important are mobile discovery and sameday delivery. Okay, so lets talk about that. Sameday delivery, google has teamed up with barnes noble. Do we think that barnes noble is all of a sudden going to sell books more than amazon . I dont think so. And i dont think many people would tell you that they are. But whats interesting is that amazons always been sort of a logistics company. Theyre very good at getting things to you quickly. But people are impatient. They want things the same day. Not one or two days later. Right. But dont when i think about that the cost of trying to get something there that day, a, the cost goes up remarkably. And, two, i would think that if anybody has the infrastructure already built to get it to you the quickest its them. So whoever is going to come in to try to replicate what theyre doing is going to have to pay a fortune to do it. No . Right. None of these things are going to be easy. I mean competing with amazon as borders or borns and noble or circuit city will tell you is not an easy things to do. Google, for example, has the cash to really invest in sameday delivery infrastructure. Weve already seen them partner with brands like target. And barnes noble and people are willing to pay a surcharge to get things there more quickly. Thats what were seeing. I actually think the biggest problem for amazon, thoughs, is going to be in the mobile ecommerce landscape. I mean, weve seen google and apple, which are platform companies, which build the operating systems that run on our phones and tablets, they have in some ways power over amazon when it comes to mobile shopping. Which is why amazon wanted to make a phone of its own. I dont know about you guys, i havent seen even of these amazon phones out in the wild. I dont think anyones buying them. And i think thats going to be a real weak point for amazon going forward. Kevin, i am so glad youre here today because you just wrote Something Else that i absolutely loved. You went to burning man with Grover Norquist . I did. This is not my burning man costume. But i did spend some time out there in the nevada desert last week, and i hung out with, among other people, Grover Norquist. It seems like an odd bedfell bedfellows. The way you describe it he has a lot in khorn with the libertarian views. It is fascinating. It is 70,000 people in the desert and basically very loosely controlled environment. And free market libertarians like Grover Norquist love it because it shows that you know, you dont need a whole lot of infrastructure to make a civilization work. Obviously theres some, you know, there is some infrastructure there. More than he would say. But, he had a great time yeah, kevin, was he sleeping in a tent and sort of hardly wearing clothes and rolling on ecstasy . Was he or was i . Either. I am pretty sure the answer to both those questions is no. I dont on my case im sure it is. But i was sleeping in a tent. He probably had a little bit better digs than i did. Did you actually have to describe to him what a free tank wash was . I did. And i dont think we can go into it a what . You have to read the article. Thats what drew me in. Im not taking that. What is it . Youll have to read the article. Its a Family Friendly show. Give us a hint. I did end up describing some i ended up having to explain to him various elements of the the anatomy, and i also, we had a very bizarre experience. I mean burning man is whats it called . Never mind. You dont need to say it again. Okay. Ecstasy for a bunch of libertarians. Is that a joke . No, thats what ecstasy at burning man . Thats like a rage. Kevin will tell you. People are taking ecstasy . People have been rumored to be taking some drugs there. Grover said if you think its just a bunch of naked people running around you completely missed the point. He said thats about you and your perversion and not about burning man. Right. Although we did see as we were talking a naked woman rode by on a bicycle. So it is i mean it is kind of a strange place. She could use maybe we could use that service after being on that dirty bike. Kevin. Thank you. There is no money, by the way, burning man which means there are no taxes so norquist probably likes it. It says free look it up yourself. No, i saw. I know exactly what that is. Thats never heard of it. Theres some value to that. Like a bid day, andrew. Get ready for the short trading week with jim cramer. The coffee war is heating up in california why duncan is making the move new after conceding the state to starbucks for more than a decade. Tomorrow a guest host whos never shy about speaking his mind. Noholdsbarred with sam zell. Plus the ceo who runs ihop and applebees on the recent struggles of the fast casual sector. Squawk box starts tomorrow at 6 00 a. M. Eastern. For you, success is a starting gate, not a finish line. For you, the ats isnt just a trophy. Its a sleek, chiseled instrument of your ambition. And for you, the Winners Circle is just another pit stop, because youll always be. Coding it. Torching it. Chopping it. Making it. The new 2015 cadillac ats. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Welcome back to squawk box, new details on life after congress. Heres how much hes going to be paid, fcc filing says the base salary will be about 400,000. Hes receiving 1. 4 million in a signing bonus b, and 1. 6 million in comps. Too low . Other stuff. Some restricted stock could go up. Exactly. Down not new york stock exchange, jim cramer joining us now, i dont know now, cramer, i think, might have i never really thought we were at risk with the cloud, jim, huh . Got any just wearing the beard, thats it . I dont use icloud to store things. He didnt say no, did he . The other thing that, you know, for me and andrew, you have to be a celebrity to have someone interested in you, and i think you qualify there as well. What kind of passwords, i mean, i have to admit, mine is complex. Mine is too. It is complex because its hacked so many times. You have to do a huge number permutations to get mine, not that you are interested in doing it. Dollar general, following . Andrew had news on that. To tell you the truth, i thought the interview was big because the drugs these are multibillion dollar drugs that get announced, people forget them, and then the numbers, and the fact is, theres a head start. This is a 400 stock right now. Youre right. When you ask, where was it . Come up with the mac cue lar degeneration drug an a drug taken with the others, that lowers heart risk, and stroke risk, its going to be huge. Thats all people are going to be focused on over the next week in the drug world. I was a little bit im frustrated that the best this great industry can do is add on and stuff, but theres a need, obviously, as far as heart disease. I hope for the rational drug design for the cancers in a way of actually, you know, making them chronic diseases and making headway there. You know, we had i want something new. I want the promise of the future. I get that. Were not far off. Alzheimer alzheimers. Theres not a breakthrough here. Diabetes, all the cancers. Right. The breakthroughs are for areas they already made breakthroughs. We need new breakthroughs where theres no breakthroughs. Thank you, jim, see you in a few. When we come back, taking on starbucks in california. Jane wells joins us next. Plus, a warning to action movie buffs, the favorite movies might be making you fat. That storys next. In new york state, were changing the way we do business, with startup ny. Weve created tax free zones throughout the state. And startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. Thanks to startup ny, businesses can operate tax free for 10 years. No property tax. No business tax. And no sales tax. Which means more growth for your business, and more jobs. Its not just business as usual. See how new york can help your business grow, at startup. Ny. Gov big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Listen up, action movie lovers. The video were showing you right now could be making you fat. Strange story. According to a new report from Cornell Universitys food and brand lab, people ate twice as much food watching a fast cutting action film than a slow paced talk show. Citing audio seemed to be a factor. Those who watch action movies with the sound on ate 98 more food than those who watched the talk show. Does that mean i guess i get it. Gets the blood going, gets you moving. And you want to eat more . I dont know. The coffee wars eat up in california. Jane wells joins us now with more on the story. Jane . Reporter im in santa mop ka, yet to find innative california here. Florida. New york. Baltimore. All right. Baltimore. America runs on dunkin, california runs on starbucks. Maybe not. This morning is the first stand alone Dunkin Donuts prepared to open in santa monica. Doors open about an hour ago, and they left the golden state in 2002 under different management and poor sales, returned with plans to open a thousand stars, franchise only model now to take on starbucks, coffee bean, mcdonalds, east coast transplants gets everyone excited like johnny hoops first in line waiting since sunday. What do you like about it . The coffee. I dont know. You just said coffee. I know. I still have that. Everything is different this time. Opening before, we were ahead of ourself, and this time, we have the infrastructure. We have the people. We have the right franchisees. We have a solid distribution system. How competitive was it to get the franchises . I thought i was applying to stanford or harvard. It was really difficult to get this. Reporter now, dunkin shares performed like mumplgkins this year. These are the first of the stapp alone traditional stores, betting on big, big, big sales out west, debuts a new darker roast here in california, which is sort of more like starbucks, but traditional. And the franchisee has several back east, planning to open ten in california, since, by the way, cost 60,000 for the fee, half million to get the store up. He hopes to do that double that in sales in one store. Back to you. Thank you for that. Nigel, you know him . Sure. He had an idea, thinking of Opening Stores in california. Im, like thats really profound, really . Dunkin . Move to california, the growth spot . Go west, man. . No wonder youre a ceo. Thats a good idea. Open some stores. They got out and now going back. Great to see everybody. Join us tomorrow. Right now its time for squawk on the street. Good Tuesday Morning, welcome to squawk on the street, and i hope you had a great long weekend, guys back together, its nice. Im carl quintanilla, david faber, and jim cramer. As we set up for the fall season, ism this week, ecb meeting, nato summit, and jobs number on friday. The road map beginning with the markets and s p, 3,000, a bullish call to kick off the first trading day of the month. Family dollar,