Transcripts For CNBC Squawk Box 20140919

55 said no. 45 said yes. One of the morning papers here, the reUnited Kingdom. The no voters, jubilant last night as the results started to come in. 2 million scotts voted no versus 1. 6 who had voted yes. They were absolutely ecstatic, the no vote, to see what was happening. The yes voters, as you can imagine, extremely unhappy. Uk Prime Minister David Cameron, thats not him, thats alistair darling, but the uk Prime Minister David Cameron just a few hours ago addressed the nation. Good morning. The people of scotland have spoken. And it is a clear result. They have kept our country of four nations together. And like millions of other people, i am delighted. As i said during the campaign, it would have broken my heart to see our United Kingdom come to an end. The british pound rallied sharply overnight as the results started to roll in. Weve seen it pullback now, but still above 163, almost to 164. So maybe some of that priced in. But you can see the rise overnight. Let me show you whats going on with the ftse, as well, which absolutely moved higher. The scottish banks, royal bank of scotland, lloyds also sharply higher. Thats the headline. The scotts said no. Theres an extremely important story here thats now about to evolve in the uk because Prime Minister cameron also promised more powers for scotland, more powers for wales, more powers for england, as well. Theyre talking about the potential of having separate parliaments for each of this is regions so that way they can vote on their own issues. Theres a new political battle thats going to happen here as they divulge powers to these various regions. It could be almost like a constitutional change thats going to happen here. Its a restructuring of the spending. Where each region could have more power over the tax revenues and over their welfare. Theres going to be a battle because he said english laws for english people. That means now the stock scotts be able to vote on english laws, as well. That will be a different kind of battle. Has the position of the Prime Minister weakened . If youre going to have more powers to the idea of the states, say the way we describe it in the United States, absolutely. And then theres a question about the future of David Cameron himself. I mean, he certainly did not provided over the breaking up of the United Kingdom, but boy, it was close. So he appears to be weakened. But yes, there will be less power at the federal level and more power at the state level, to use u. S. Inventovernacular. Kayla tausche is covering the alibaba ipo. Kayla, do you have a gut feeling of the number were talking about here . Could there be three digits or probably not . It could well get there, joe. I think the market is prognosticating it could open anywhere in the 80 to 90 range. Certainly the price last night was very bullish. 68 a share at the high end of the companys range. It was largely expected, having not only been reported by us earlier in the day, but targeted by the company and underwriters during the road show over the last few weeks. Investors said the meeting was hardly suspendful. The discussion centered on the companys longterm valuation creation. Softbank and yahoo alibaba Board Members and early investors gave speeches to the groups to that effect. The debate after alibabas issue, some investors choose to sit on the sidelines, citing concerns of slowing growth in china, think about Foreign Direct Investment weak bing and new stimulus needed for the Banking Sector there, not to mention alibabas Corporate Structure and heavy dependance on the investment. Others are jumping at the opportunity to buy into the biggest slice of chinas ecommerce market. They cite the performance of large cap ipos, as well. Visa up 392 in its first year, facebook and twitter doubling. Gm, though that was a different story because that was a government bailout, up 3 in its first year. These companies do have the ability to overrite ride volatility. Alibaba is offering 22 billion. Its bigger than all of those, and it could yet be the biggest global ipo ever. Market caps, higher than amazon, more than double that of ebay for its closest competitors in the u. S. The true market cap will be determined by where it opens. That price will be decided at post behind me. You can see this all decked out for the ipo. Were told that the first trade could happen in the 10 00 or 11 00 hour. Its going to be a very tenuous problem throughout the morning. Well be there every step of the way. Joe and becky, back to you in the studio. On a programming note, alibaba chairman jack ma will join squawk on the street on a first on cnbc interview. Did you see the story where jack ma is headed today . Meetings with a lot of corporate leaders. We do have Jeff Sonnenfeld later to talk about this. Right now, though, on to apple. The iphone 6 is makesing its way into the hands of consumers. Morgan brennan joins us from new yorks flagship avenue. A lot of people camped out there, right . The number is 4,500. These lines are so long that they stretch up 10 blocks up fifth avenue from the Flagship Store. What we hear is they were stretching even farther, almost a mile, and that has had to cap that number at 68th street because theyre not sure theyre going to have enough supply for everyone. Huge turnout already. This store is usually open 24 hours a day, 365 days of the year. Its closed right now. It has been as the company preps for the launch. Its reopening at 8 00 a. M. Eastern. Weve spoken to apple. Theyre keeping mum about inventory levels and about what theyre speccing today as it compares to previous launches. But some of the staffers here say theyre expecting this to be massive. Its bigger than anything theyve seen before. Of course, weve already seen those record preorders. 4 million phones in the first 24 hours. That was double the 5s launch two years ago and big enough to back up apple and some of the wireless carriers. Websites of last friday. Its very strong possibility if the scuttlebutt here is correct that these stores are going to sell out not just this weekend, but possibly today. Wells fargo estimates that based on the preorders, first weekend sales could hit 10 million. If these early lines are any indication, customers are really, really excited for this phone with the bigger screens and the longer battery life. But more interestingly, not everybody here is get ago phone for themselves. Some folks are being sponsored to stand on these lines for free publicity for businesses. Many more are renting out their spots. And more than that, we have folks here have been in line since labor day weekend. Theyre looking to come in, buy their phones and flim flip them to other customers. Ebay wab for example, if you go on there, dozens of listings for the iphone 6 and 6 plus. One of the most expensive on there right now is a 6 plus 128 gig unlocked, no carrier attached. That fetched 6,300 after 48 bids and the person who is selling that doesnt have that phone in their hands. This is all on the promise of getting a phone today. Becky, back to you. These things, you figure eventually things wear off, people dont assistant in line for the iphone 6. But you also said there were corporations that were hiring out people to stand there . What do you mean in terms of publicity. Are those people that want extra publicity for apple, corporations who want extra phones brought to their workplace . What is that . Businesses who have literally paid folks to wear their name, wear their logo on their bodies stand here. When they get interviewed, they get the free publicity. In return, those folks get dash and they get a free iphone out of it. Theres all kinds of entrepreneurial stories going on here today. Morgan, thank you. Well check in with you a little later. It finally happened at oracle. Larry ellison is stepping down at ceo, being replaced by coceo staffers safra catz and mark hurd. Hes 70. His mow away from the ceo role comes earlier than expected. It has had ten splits since then. The stock is up nearly 90,000 since its ipo shares following the news of what happened and a profit warning. It has been a little bit uneven in terms of the results for the last six quarters or so. This time results were hurt by weak hard wear sales. This was the most interesting story for me today for so many reasons. The co word, if you go back to ancient rome, coemperors, whatever they were, they didnt work. It never works. Remember reed and sandy wile. People do say, though, that these two have been basically running the company asco president s for four years while larry focuses on technology. Hell be chairman. Saffer cast is on the other side. Theyve been, woulding together for four years, but theyve been someone to kind of force that. It tends to create power struggles and part equipment when youre on the job. Hurd, they call him here a Sales Strategy visionary. And then apparently for catz, brilliant with operations, but shun tess public role. Not as good with people. They have different strengths, they have Different Things they like to do within its a shot they can work together. But theyre immediately talking about power sharing strategy carries a pack of challenges. When hurd was ousted by hp, Larry Ellison says it was the worst personnel decision that the idiots on the apple board fired steve jobs. I remember him saying that. They talked about his brusque personality. And then i read this is for you because of me. He was adopted. Oh. Larry ellison. This people kwas quoted as saying being rejected by your mother for whatever reason is something people never get over. And you remember steve jobs. Steve jobs, too. Some of these amazing successful people. It drives you . I dont really you know, weeks in the orphanage, as i recall, i was hupgry a lot. I told you there were nuns there. You and jim belushi. Jim belushi. This is fascinating. I think it is amazing to think of two entrepreneurs like that, both adopted. I think it says something. Its like a sharp man complex. You didnt know you were going to have a i should lie down while we talk about this. Tell me more, joseph. You heard about the guy that went into a shrink and said, doc, i think im a dog. No. No. The shrink wouldnt get down off the couch. That is pretty good. I like it. If anover were here, i would say he was a comedian oh, okay. Were going to talk more about oracle. But also we should tell you sap is buying expense management softwaremaker concur technologies. That values that deal at more than 7 billion. That price is a 20 premium over concourse close yesterday. This happens to be the biggest acquisition in s ps history. The Software Giant says that the tie up will expand its presence in cloud computing. Its always interesting watching all of these acquisitions. Oracle was another serial acquire and management to put things together over the years. And anyone that went up against ellison ended up working for him or getting bought by him and leaving. Between microsystems and yeah. I wonder how many acquisitions oracle made over the years. In 1977, the company was founded. Maybe we could look into it and find out. A college dropout. Another one, bill gates. I know. Home depot announcing about 56 million credit and debit cards were likely compromised in a cyber attack stores. This makes the breach larger than the one at target last year. Home depot estimates the attack will cost 52 million. This number could get much bigger. Despite swings following the first news of the attacks, shares of home depot are up nearly 5 in the last month. Check on the markets this morning, another, you know, big session. Its still the fed, you know, at this point. Stay at zero for a considerable period of time. Theres today. When you see money like this moving around in alibaba, it shows that theyre still interested in trying to make some money in the stock market. Yeah. Remember, we talked earlier about the concerns that people were selling some stocks to make room to get money for alibaba. Maybe this counters that notion. And the idea that its a zero sum game, too. Actually some people wrote in, why, if theres so many money on the sidelines we have to hear about, why alibaba . So were equals 17,260 something. 230 points since he joined us. It was at 17,000 do we have a whole quarter left . Yeah. We have three months, three plus at this point. I was skeptical when we talked to him earlier this week. Another thousand points. Thousand points is what it used to be. As he pointed out, its only about 5 . How about oil . Oil may not have taken into account oh, okay. We may not have taken into account how much cheaper gas prices really helped everyone. That could give a jump start to what has been a below average performance by this was a big cap on oil prices yesterday, must have been. We were above 94 yesterday. Where was the ten year . I just saw it. 2. 63 . Wow. It was 2. 60 and pulled back to 2755 . The pound is at a recent high after they said it would have been great, but it wasnt worth the risk. I like that slogan. Its not worth the risk. Lets stay where we are, which kind of sucks. But to try to stay calm and carry on. It could be awesome. It may not work. So lets not that was their slogan, lets not take the risk. When i was just looking at him, he reminded me of that movie, the guy, the great king of england who had the speech problem. Remember . They kind of look alike. What was that guys name . What is that guys name . Huh . What . Louder. Collin furst. They kind of look alike. Maybe thats how they cast him. Well, he wasnt playing that. No. Collin furst may be english. No wonder he was so good at it the. Yeah. Coming up, the bulls keep booming. Another record close for the dow. So where is the gloom and doom . Is there anywhere we can find a yes . Mark faber, editor of the gloom and doom report. He joins us next. So what were looking for is a way to plus our Accounting Firms mobile plan. And minus our expenses. Perfect timing. Were offering our bestever pricing on mobile plans for business. Run the numbers on that. Well, unlimited talk and text, and ten gigs of data for the five of you would be. Oneseventyfive a month. Good calculating kyle. Good job kyle. You just made partner. Our bestever pricing on mobile share value plans for business. Now with a 100 bill credit for every business line you add. Watch this. Sam always gives you the good news in person, bad news in email. Good news fedex has flat rate shipping. Its called fedex one rate. And its affordable. Sounds great. [ cell phone typing ] [ typing continues ] [ whoosh ] [ cell phones buzz, chirp ] and we have to work the weekend. Great. More good news its friday woo [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. Publish he of the gloom, boom and doom report, mark faber. I guess no one needed to tell you that they would leave for a considerable time in their comments, did they . You probably knew that, right . Yes, i expected that to be the case. Because you have been dshg you know, before qe even started, you said theres going to be a qe1, auto qe2. We laughed at you because you were up at qe14, qe125, qe16. When you do qe up to 99. 99 bottles of qe on the wall. One person made an interesting point. Peter said the other day i worried about the feds ability to conjure up some bubbles. Maybe tech, but there was a tech bubble, there was a housing bubble and now were not sure what to call this. He called this a government bubble in terms of just Interest Rates, owning all these securities, and, really, the size of government, also. Is that where the problem lies, do you think . I think the beauty of today is that unlike in 99 until march 2000 when we had the tech bubble, at that time, the majority of old economy stocks were cheap, commodities were inexpensive. Today the good news is we have a bubble in everything, everywhere. And with very few exceptions. And eventually, there will be a problem when these access markets begin to perform poorly. The question is what will be the capitalist . It could be a rise in Interest Rates. Not engineered by the feds because i think they will keep Interest Rates at zero on the fed fund rate for very long time. The bonds market, you know something most unusual. French government bonds last week were yielding 1. 3 . 1. 3 . Spanish italian bonds about as much as u. S. Tenyear treasuries. And we could have essentially a break in bond market at some point. We also could have a strong dollar, a strong dollar that has already happened in the last two months. Signify signifi signifies that International Liquidity is tightening. When that happened, usually its not very good for asset markets. Yeah. I keep trying to figure out exactly how it happened. Let me ask you, things, when they start, lets say, going down a little, usually there has to be some leverage in the system where people start getting margin calls and theyre forced to liquidate which sort of feeds on itself. Almost every time weve seen markets go down a lot. Is that in the system right now . Marking that is at the very high levels. As a percent of stock market capitalization, its usuallily up to 2007 highs. And we have a lot a lot of leverage in the government sector. We have a lot of leverage in the corporate sector. And unlike the crisis 2007, 2008, when at that time when the recovery came in 2009, emerging economies had a lot of momentum. And were still buoyant in terms of Consumer Expenditures increases. And a sign of whats very strong now. The emerging markets complex is slowing down and isnt going to grow nearly as much as people had expected. If emerging economies overall can grow next year, say, 4 , that would be actually an optimistic scenario. I think it could be even lower. So that a lot of the things that ee meal ur rated some of the things in the past, it seems like all the stars are aligned to where this could be pretty ugly where most people do not see any signs of it right now. And its sort of to the contrary. Theyre very sanguine for prospects for we dont really see inflation, we dont see any recession on the horizon at any time. The way you talk, theres a lot of things lined up that could create some problems. As of today, that basket is 85 more friendly than in 2009. So the money printing in europe and in the u. S. Does not necessarily have to lead to more inflation in the u. S. And europe for the time being. But it has led to huge price increases here in asia, in countries like india, china, vietnam, singapore, hong kong where we have record prices for properties and as property prices have gone up today, your prices in order to maintain the margin. Consumer has gone up a lot in price. So there is inflation in the system and in the u. S. Rates the other day were in chicago. What is to make us think that it wiped up back here . We think oil prices have dropped so rapidly, that made gasoline prices fall rapidly here, as well. Yes. What has happened this year is true gasoline prices from the highs have come down somewhat. Oil prices are down from the highs. Also corn, wheat and soybeans are down. The aural commodities nearing a low. They wont stay at this level tet. There will be a recovery. But the fact is simply easier to take oil today. You see it in front of you, 92. 1999, it goes at 12. Food prices are way up. Everything is more expensive. It calculates its own way and other people have different way where they show that the cost of living for the average family is much higher. I want to just explain to you. One thing is very clear. Consumption in the u. S. By historical standards hasnt recovered much. Its taken a salary and compensation. And the cost of living had gone up more than the salary increase, theyre getting squeezed. Thats why retailing is not doing particularly well. Now, i admit i had in the u. S. And elsewhere an early economy. In aspen and palm beach and in mayfair in london, kensington, bellsy and so forth. And then we have the economy of the average person, very Different Things. But the rich will get creamed one day in especially in europe. Weve got to run, mac. If you have five seconds, the last thing, in the past, these things like ukraine or syria or the iraq war, they seemed to be short lived. Thats usually not what causes something to happen in the financial itself. Im not looking at a geopolitical event. Usually its something were not speccing. Its a slow untraveling that we see. I wish i knew what the canary in the coal mine was going to be that would give us a heads up that starts. In five seconds, do you have a quick idea where it might be . I think that the big surprise will be that the Global Economy slows down and goes into recession. And that will shock markets because with all the stimulus we had, at the fiscal stimulus and the monetary stimulus since the Global Economy cant recover under these conditions, i dont know what it will take to make it recover. I know what it takes. It takes Smaller Government as a percent of the economy. The government is not the solution. Its precisely the problem of slow growth in the western world and in japan. Thank you. Thank you very much. Marc faber. Well check back with you soon. Whenever we check back with you, i hope nothing has happened yet, but fairway hold the press. Well see you again soon. Thanks. Up next, back to baba. How important is the ecommerce giant to china and how much of an influence does alibaba have on the mainland . Plus, an executive from one of the worlds Biggest Pharma Companies is in big trouble in china. Also, scary moments for some jet blue passengers. Well have that when squawk box returns in just a moment. [ woman ] if you have moderate to severe Rheumatoid Arthritis like me, and youre talking to your rheumatologist about a biologic. This is humira. This is humira helping to relieve my pain. This is humira helping me lay the groundwork. This is humira helping to protect my joints from further damage. Doctors have been prescribing humira for ten years. 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We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Good morning and welcome back to squawk box. Im joe kernen along with becky quick. There was an emergency on a jet blue flight. A plane was leaving Southern California when an engine apparently exploded on the airbus a320 a few minutes after takeoff. The cabin was suddenly full of smoke. You can imagine being on this. Passengers grabbed for oxygen masks. Once the plane completed its emergency landing, passengers jumped down the evacuation slides and four people were treated for what were at least minor injuries. Jet blue says its still investigating what went wrong. Have you ever been on a plane where the oxygen masks drop out . I have never. I havent, either. The closest ive been was just about maybe 500 feet off the runway and pulling out because there was another too close or another plane . I dont even think it has to be right on. Anything in the air is disconcerting, obviously. Were glad that everyone is okay. Also some unrelated news from jet blue. The airline is getting a new ceo. That change has been widely expected. David barger will be replaced by the current president , robin hague. The new boss could move the low cost carrier to add fees for things like checked baggage which to this point hasnt happened at jet blue. Cloroxs ceo is stepping down after eight years on the job. He will be succeeded by benna dora. Also, alibaba preparing for its first day of trading at the nyse after pricing its ipo at the top of its expected range. Eunice yoon has a look at what this Company Means to china and to the countrys culture. Eunice. Becky, it means a lot for the country. Jack ma made his mark in china by changing the way Chinese People shop. He got people comfortable with the idea of being things zon line. Walk down any street in china and its easy to find selfdescribed addicts of alibaba. Many are such fans of the ecommerce giants Online Shopping site, taobao, that they wish they could buy into alibabas new york ipo. I use baba every week. They seem to be one of my friends. I think i would invest if i do have a lot of money. Taobao is a national object session here. It means search for treasure, a site where consumers can buy everything from handbags to houses. The Payment System is one of chinas most trusted. Though many wonder if alibaba can feel safe among american investors who question its Corporate Structure, accounting and potential influence from the Chinese Government. I think as a publicly listed company in the west that offers mostly here in china, i think theres going to be some significant cultural challenges as they prepare to do business in a place that they dont have a lot of experience in. And today, theres just an upswell of national pride. People are really excited for jack ma as well as for alibaba. And theres a little bit of stock market envy where people are talking about how they wish that china noo had a Stock Exchange that was able to handle an ipo of this size. Guys. Eunice, its going to be something to watch. By the way, another story would you have been following, the glaxo bribery case, there are new developments on that this morning . Yeah, absolutely. There is a very big development. Its actually a a way in which you can see how its its basically an example of when you fall out of the good graces of the Chinese Government. Basically, gsk, glaxosmithkline was slapped with the largest corporate fine in china. The company is going to have to pay 490 million. This is after a Chinese Court found that the chinese unit of the company did, indeed, organize a massive bribery network, funnels handles of millions of dollars to doctors as well as hospital staff. The executives, there are five of them. They were on trial. All of them got suspended sentences. This included the British National mark riley who is expected to be deported. This is unsettling a lot of people here, especially in the business foreign community. They think a lot of these investigations that have been going on have not been transparent. The company itself has said that theyre very committed to china. They are distancing themselves from the chinese unit, saying that the activity at the unit were in breach of the companys own compliance regulations. And they also issued an apology to the Chinese Government as well as to the Chinese People. Guys. Eunice, thank you so much. Again, eunice yoon. Right now, lets bring in ron josie, covering yahoo stocks for jp securities. Yoohoo has a 20 stake in al by louisiana. Some consider owning yahoo shares as a back door way to get into baba. Good morning, becky. We saw the pricing come out at 68. What does that mean . I think theres been incredible demand. I woond be surprised if it opens directly into the 80s and maybe even in the 90s here immediately. So i think theres tremendous demand. You have a this is what we call a seminole event in the internet industry. Theres a hand full of companies that have gone public here at this valuation, facebook here for sure. This alibaba, weve been waiting for this for years. Investors are students of yahoo for a number of years here. Yahoo has been an investor in alibaba since 2000. Now the event weve been waiting for is here and its exciting. The way you bring up facebook as something you look back to, im should the sure alibaba is not hoping to have those stumbles out of the gate. Its funny, when they originally initiated or published their first tiling here, there was concern or question about how they could transition over to mobile. Mobile is growing very quickly, but the take rates on the commerce that goes through mobile was actually much lower. Then all of a sudden their second filing or last filing comes up with updated numbers in q2. The bottom line is, it seems to me theyre tackling the issue very, very well. When you think about what the issues could be, im not sure what they are. You have a strong company, growing 40 plus coming out in the mid teens on valuation on ebitda. And maybe you have some concerns on regulatory or just the fact that it is a chinese based company. But frankly, from a fundamental point of view, its hard to find knit air in this story. For months and months and months, people have looked at yahoo shares as a potential back door, a way to get into the alibaba shares without actually buying alibaba . Do you ascribe to that theory . Its an interesting question in that it has played out very well over the past couple of years. Yahoo is now, post the ipo, around 16 . Youre buying yahoo and they still call it maybe 20 billion to 25 billion after tax worth of yahoo on alibaba. But now that the ipo is here, if you want to buy alibaba, you can buy alibaba. There might be something more on the core fundamentals. Frankly, that is something that were looking for the turn around here. So im not too sure if it is as much of a back door as it used to be simply because you can buy alibaba directly. What does that mean for shares of yahoo . You know, i dont know if youll see as much of a growth here as shares of yoohoo have done very well over the past several years. But and frankly, yahoo will continue to sell more of their investments in alibaba. Again, after tax, maybe thats 20, 25 billion, a good am of money here. But frankly, you know, we think that yahoo will likely investors will likely focus more on operations. Thats something that theyre in a turn around. We do have were focusing on their display business, which isnt growing very quickly or at all. And so were looking for the turn around there. And i think from a yoohoo perspective, yes, alibaba is still a catalyst, however, i think its less of one just because the ipo is here. Ron, we had peter teal on this weekend. He was praising Marissa Mayer saying that he thinks she has done a great job, probably has added to the value of yahoo when you strip out allibaba shares. What is the value of yahoo ex alibaba . That is something we get debated on a lot. Theres no doubt what Marissa Mayer hahn done has been a pretty great job thus far. Shes turned the company around, the products the better. Now the next question is how do you attract advertisers . Froonkly, we havent seen that yet. Theres a lot offing this things going on for yahoo . They are em brating more enigmatic more and more. You hope that the new products can ininturn drive more. The numbers, theyre just not coming through. It will take three plus years for a company of this size to turn around. Theres certainly potential. Were sort of waiting to see it happen more than just assuming it will happen because its not easy. Ron, thanks for joining us this morning. Thanks, becky. A programming note for you, alibaba executive chairman jack ma will be joining squawk on the street live at 9 30 a. M. Eastern time. This is a first on cnbc interview. I keep catching myself saying alibaba, alibaba. 560 in the Third Quarter . What game . Bucs and falcons. Ugly. Wow. Ended at 5614. Got close. When we return, derek jeter hit a home run during his last home stand at the stadium. As we head to break, a quick check off whats happening in european markets right now. After scotland voted no to independence from the uk. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. [ female announcer ] we love our smartphones. And now telcos using hp Big Data Solutions are feeling the love, too. By offering things like onthespot data upgrades an idea that reduced overcharge complaints by 98 . No matter how fast your Business Needs to adapt, if hp Big Data Solutions can keep wireless customers smiling, imagine what they can do for yours. Make it matter. Imagine what they can do forbig 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. With the top speedou compare of comcast the top speed of business dsl from the internet. Phone company well, theres really no comparison. Why pay more for less . Call today for a low price on speeds up to 150mbps. And find out more about our twoyear price guarantee. Comcast business. Built for business. Welcome back. Lets check out the equity futures. People think this is going to be a big day for alibaba. What else . We had a huge day yesterday. I think you were right in your assessment earlier saying it the fed still. For the last two weeks. But it was and theres still the one question people still ask is, you know, this is this is out of control. This is it cant stay this hot. Thats good. If you were a bull in the market, you complacent, thats nerveracking. Yeah. Only ten games left for derek jeter as number 2 gets ready to retire. The yankees captain paying tributes to his fans in a new gatorade ad. The full 90second add will run during games this weekend. Its already gone viral on social media. And coming up, another iconic figure is hanging it up. Oracles Larry Ellison stepping down as ceo. Shoes so big that they needed two people to fill them. Is that bad news, though, for investors . Squawk box will be back in just a moment. Want to change the world . Create things that help people. Design safer cars. Faster computers. Smarter grids and smarter phones. Think up new ways to produce energy. Be an engineer. Solve problems the world needs solved. What are you waiting for . Changing the world is part of the job description. Join the scientists and engineers of exxonmobil in inspiring americas future engineers. Energy lives here. If you are in need of a vacation but cant afford to get away, marriott has a solution. The company is testing a virtual trip. You step into a phone boothlike setup dubbed the teleporter. And you put on the oculus headset and head foens. Are you joking . I dont know. You are then teleported to a destination. You see the sights and you even feel things like the sand. How this is straight out of an Arnold Schwarzenegger movie total recall. Why would marriott want to do that . I dont know. Do they charge . Is this going to be a revenue stream . How long do you stay . Do you walk into these booths like a tanning booth that you go to . I was ready to read more, but all i see there is tease coming up, bucky. So thats all were going to get. Im confused and im dubious of this entire thing. I think we just got punked. People at home are waiting for more. So they must have more. That was a tease. This is a tease for a continuing story nap sounds like we just got punked. Where do you get the sand . Maybe put it in your hands. Then move the cat litter box over near you. Grainy sand. I dont know. I think ill do a Little Research in e the break. When we come back this morning, we have live reports from around the world own the three events that will dominate the business day ahead. Alibaba, scotland, and the apple iphone. Joe and i got into a heated debate about telling the nfl to police their players. Do they have a right or are they grand standing . Well ask a Crisis Management expert. Stick around. Squawk box will be right back. Right here. With a control pad that can read your handwriting, a widescreen multimedia center, and a headup display for enhanced driver focus. All inside a newly redesigned cabin of unrivaled style and comfort. The allnew cclass. At the very touch point of performance and innovation. At the very touch point of performance and innovation. 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. No. Not exactly. To attain success, one must project success. Thats why we use fedex one rate. Their flat rate shipping. Exactly. It makes us look topnotch but we know its affordable. [ garage door opening ] [ sighs ] honey, havent i asked you to please use the we dont have a reception entrance. [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. [ male announcer ] ship a pak via Fedex Express saver® could mean less waiting for things like security backups and file downloads youd take that test, right . What are you waiting for . You could literally be done with the test by now. Now you could have done it twice. This is awkward. Go to comcastbusiness. Com checkyourspeed. If we cant offer faster speeds or save you money well give you 150. Comcast business built for business. You are looking at a live picture of the new york Stock Exchange. Thats where chinese ecommerce giant alibaba is poised to make it start on wall street. Jack ma is expected to arrive at the exchange at any moment. The ipo pricing last night at 68 a share. And alibaba is just one of the main events today. Our Kayla Tausche is there with the latest on the alibaba pricing. Were also live in scotland this morning. And its early out in palo alto, california, but josh lipton is up and so are a lot of other folk who is are lining up to get their hands on the new iphone 6 that goes on sale for the first time today. Were going to start out today with alibaba. Now to alibaba, the chinese ipo pricing on top of its expected range last night. Kayla tausche joins us with more. Its quite a mob here. There are more than 130 press organizations waiting here to see jack ma and his executive team. Of course, the founder of the Alibaba Group which has created millions of dollars in wealth for tons of people who have started their Small Businesses on this site. And as you mentioned, ma himself has become chinas richest man just by the founding of alibaba. Today hes expected to be worth north of 22 billion himself. At roughly 68 per share, it has a market cap of 168 billion. Thats the biggest global ipo ever excluding an overallotment of shares the company can still sell in the coming weeks. Last night as the company solidified its ipo price, they spoke to the companys aim for shareholders going forward. Made multiple their initial investment that they made in alibaba several years ago. Now, the allocation of shares wasnt completed until very late last night. My sources tell me that half of the shares went to some 25 firms. The majority of which the lions share of which were mutual funds which is expected to create a demand where the stock will pop. Because all those Fund Managers will be scrambling to buy those shares once they become available on the public market. Were not sure when the stock is going to open. The executive team is here now. Theyll go through the procedures at the Stock Exchange, meet with their market maker. But barclays wants to get that first trade right. It wants to create a seamless debut for the company so that could be as late as midday. It could even be early afternoon depending on how many orders to buy, orders to sell come in. That, of course, is the tenuous dynamic they have to figure out this morning. Thats the latest from the new york Stock Exchange. Now back to you in the studio. Get a selfie if you can, kayla. Theyre a little far away, but ill try my best. What do you mean youre far away . Your feet are in concrete . Get over there. Thanks. And programming note, jack ma will join squawk on the street. In the flesh hell be there . He will be. I think he was standing right behind i think we just missed him through the crowd. We could have had that . As he arrives. There are a lot of people lined up to take pictures. Right now lets get to michelle. She is in scotland where citizens voted to reject independence choosing to stay in the United Kingdom. It looks like the markets are breathing a sigh of relief. Definitely. Weve seen london stocks move higher. 55 voted no. 45 yes. That was more definitive than the last poll showed. The cover of the star scotland today says reunited we stand. As you can imagine there was jubilation as the results rolled in overnight. They were thrilled more than 2 million scottish voters said no to independence. Thats the leader of the no campaign as he got on stage to make to call it an acceptance speech, not exactly. But you know what i mean. However, bagpipes played a lament in the major square in glasgow where many of the yes voters had gathered. 1. 6 voters voted yes in this campaign. But that wasnt enough. Thats the major headline. The nearly as important headline is the following. The scots were promised if they voted no, the parliament would get more power to the scots. David cameron, the Prime Minister of the uk today said that would happen, but its not going to happen just for scotland. Hear what he said to the nation just a few hours ago. So just as scotland will vote separately in the Scottish Parliament on their issues of tax, spending, and welfare. So can be too, england as well as wales and Northern Ireland should be able to vote on these issues. And all this must take place in tandem with and at the same pace as the settlement for scotland. That was really important. In other words, what hes saying is that the scots are now not going to be able to vote on issues related to wales, Northern Ireland, and england in ways that they couldnt before. Why should they be able to do that if theyre going to be in charge of their own tax revenue . That is going to set up, one, a new battle in the coming months of how thats going to work out. And its also a really major change about the way the uk is going to be governed with federal powers devolving now to the states if we want to use u. S. Vernacular. Lets look at what the markets did overnight. The british pound rallied sharply as we started to see results come in. Its to a buck 65. Back to you guys. All right. Well talk with you a little later. If you want to take a look folks, back at the nyse, jack ma is standing by. This is who everyone was trying to take pictures of. Our cameras made it through the crowds. Jack ma is standing there. This is as they await the first day of trading for the ipo of alibaba shares. Again, hell be joining us on squawk on the street this morning. Apple folks will get their hands on the new iphone 6 this morning. Josh lipton is in palo al toe where the die hard fans are waiting in line. Has anyone had a glimpse of the iphone 6 yet, josh . Well, ill tell you, it is 4 00 a. M. Local here. Still very dark out, but the apple fans, they are already on line. About 200 people on line here in tents, in sleeping bags. Theyre here with their dogs. The first person was actually here on tuesday and they are waiting to see these. The iphone 6 and the iphone 6 plus. What tim cook is calling here the biggest advancement in the history of iphone. Actually got a chance to take these iphones out for a test drive last night. They are bigger. Theyre faster, better camera, and improved battery life. And fans here in palo alto cant wait to get their hands on them. Ive actually been driving here every night like a week before launch day before these guys were here in line just so i could see the situation. Ive been going to san francisco, Stanford Shopping Center and here. The bigger screen surface, the landscape mode. Overall the whole product of the iphone 6 plus looks amazing. So apple saying demand for these phones this is the 6 plus right here. Preorders actually topped 4 million in just 24 hours. Obviously important that apple gets this right. The iphone still accounts for about 50 of apples revenue. In the past, tim cook has showed up at this store right behind me on launch day. Well see whether the ceo makes another guest appearance here this morning. Guys, back to you. All right, josh. Thank you. Were going to get another shot of jack ma. Because he has aged. Its been a minute and a half. Thats what he looks like now. Thats what he looks like now, in case you didnt thats going toob great picture no matter. They knew the shares were going right up or if theres a stumble along the way, that will be the picture that comes back again. Similar to the last shot. 90 seconds ago . Yeah. Thanks, josh. We got a look at the iphone 6 there. Weve got that going for us. Thats coming up at 8 00 a. M. Home depot says 56 million debit and credit cards were probably compromised in the attack earlier this year. Thats bigger than the breach at target from last year. All malware has been removed from its systems, it says. Theyve been changing the numbers i think what was it 65 million they were talking about originally but thats a number that could increase. In other retail stories, walmart says it will be hiring 60,000 temporary workers for the holiday season. Thats a 10 increase from last year. Most retailers are hiring more than they did a year ago. Maybe thats a good sign. A share of compressor and dresser maker is jumping. Siemens is planning to bid more than 1. 6 billion for dresserrand. Gee. I wonder if this company is more valuable to this foreign entity because of the tax rate over there. Swiss pumping Equipment Company said earlier this week it was talking with dresserrand about a potential deal as it continues. Picking them off one by one. Stop the inversions because its pc. But we wont address the problem so this keeps happening. You leave the country one way or the other, these Great American institutions. And s. A. P. Buying expense in Software Maker concur technology. That values the deal at more than 7 billion. And the price is at 20 premium is that a similar story . Is that another inversion . Not an inversion. But that is another case where because of the tax laws, it makes it much more i dont know what the whenever we say that, theres other Reasons Companies do things, obviously. But it does beg the question. Thats not the same concur we do our expenses with, is it . I doubt it. It is . It is. We just had the ceo on. Remember . I wasnt here that day. You werent . We just had the ceo on. It was in the 90s. It was 129 there. Meanwhile, the marriott thing you looked it up and there are little i did. Let me find this. I dont know if i can get this up on the screen again. We should have had the pictures of the booths. Look. It sounds completely bizarre, but if you take a look. These are we talked about the virtual reality. I just shut off my computer. Never mind. They kind of look like johnny on the spot. On the streets in new york city or l. A. Or something. You walk into it and my guess is this is a marketing ploy. Its a marketing ploy to make you think hey i wish i was on a beach right now. Saturday night live has already done this. All the way back when dan aykroyd and jane curtain and dudley moore was guest hosting. And don pardo did it where they were in an elevator and dgarret morris was a traveler and every floor was a different place. I dont understand this. A married couple walks on and the wife kisses another woman and that was supposedly sweden. You cant do that anymore on but that was the old days of saturday night live where they got away with murder. Then they went to spain and dudley moore was in a matador outfit. It was funny though. Every floor he traveled to. So again, snl not just a predictor of the future. For things to come. For 30 years. Unbelievable. All right. When we come back, an icon and rebel of technology is retiring. Larry ellison done as the ceo of the company he founded in 1997. And will that mean more sailing for one of the worlds richest men . Well talk about that next. Procter gamble is dropping out of a Major Campaign with the nfl. Does the league have the right playbook to deal with this crisis . That is coming up later this hour. The Performance Review. That corporate trial by fire when every slacker gets his due. And yet, theres someone around the office who hasnt had a Performance Review in a while. Someone whose poor performance is slowing down the entire organization. Im looking at you phone company dsl. Go to comcastbusiness. Com checkyourspeed. If we cant offer faster speeds or save you money well give you 150. Comcast business built for business. Welcome back. Changing of the guard in the tech world. Larry ellison is stepping down as ceo of oracle. Joining us now Jeff Sonnenfeld from the yale school of management. Also a cnbc contributor who just walked his dog and got skunked. You dont have to bring that up. This is not smellovision. Thats good. Howd you manage to do that . I did the scrub down. My wife came up with a concoction. That was just a couple hours ago. You live in the wild. This is what happens out there. Way to start a morning. Jon fortts here with nothing interesting that happened. Im having lunch with jack ma today, nobodys going to come near me. Anything happen to you this morning . The alarm went off and you got dressed and came in. Usually you can smell a skunk from a mile away. You did good. Hopefully the dog had the brunt of it. He was actually much more photojenic. I dont think we should bring him to the set. Are you sure it wasnt a cat with a white stripe painted down. Thats a smelly cat. All right. Are you guys going to debate . He said stuff about you before i couldnt believe. But my wife said youre so handsome, how could i argue with you. But you have it right in this case. I think about every analyst who weighed in, i dont know what theyve been drinking, smoking, thinking. This is not predicted by anybody. This is a disruption. The market didnt expect it. Technology experts didnt expect it. People in the market didnt expect it. Youre putting in two people. Everybody so far keeps referring to this as coceo. Theyre not even comfortable using that term. Its like this board has written two different press releases. What do you think actually happened . This is a board that this is a solution with a board that was always very much theyre a fantastic board in terms of individual competencies but carried with Larry Ellison. Weve seen boards that should do better. And in this case the board has looked at the fact that larry is frustrated with all the people including the great jim cramer who was pointing out the performance. Before any of us knew what the cloud was, larry was into this. Industry standard events and conferences and everything. He had his eyes bulging screaming about how in the early 90s that the cloud was the way to go. Not only stealing some of their best talent away, theyve had a mass exodus of their top talent. The number one guy in asia, two dozen people leaving in the last two weeks. Its over cloud issues. And theyre leaving angry. You look at ibm, its up are you laughing at me because im wound up on this . No. Because weve talked about how to pronounce her game again and again. It is remetti. But theyre up by 25 on the cloud. And 7 billion run rate. Ibm is the biggest player in the cloud. Now this happened with larry being, you know, quite visionary about this. But they didnt deliver it. Oracles cloud growth was well over 20 when you look at those numbers. Put up oracles fiveyear chart versus ciscos or ibms and you dont see a big dropoff. Theyre near their highs like an microsoft or intel. Has oracle executed perfectly in the cloud . Absolutely not. But you look at their hardware strategy which is a next generation strategy. The margins theyve been able to achieve. Integrated sun microsystems. Theyve done well on a number of fronts. Then you look at whats actually changing here. Safra catz said not only will there be significant changes as a result of this, there wont be any changes. I think youve got a title shift happening here. President s become ceos. Ceo becomes executive chairman. Youve got a stepback that he was doing. He missed his big keynote last year because he was watching his boat race. At least they won. Yeah. But do you think this is not an unyielding relationship . It was before. They hardly ever work. Very rare do they work. Even at goldman they didnt always work. They were elevating them to chairman. Do you know a ceo mark hurd is ceo and he doesnt have legal report to him, finance report to him. What kind of president was he before . You can have copresident s. If youre saying that this is a misleading move, in fact, larrys still the ceo and this is cosmetic. Im not sure what this buys you. Im not sure. But i think the next move is the important move. This more acknowledges what had happened to this point. But larry a 70 years old. Whats the next move he makes do you think two heads are better than one . Is that the message . I think youve got hurd and catz. Two is better than one. Try running the Boston Marathon as a siamese twin. Youre pulling in different directions. But the question is what happens next. That is an issue. 37 years as ceo. Now tell me somebody else who had 37 years. Fred smith, 46 years. Rupert murdoch, 54 years. Hes been ceo longer than redstone both has. This is a long time, 37 years to be at the helm. This is two generations. Two generations the same guy there. Its time for a change. If hes still the guy in charge of technology, i dont know. Look at the board. George in there, his bios understate him. He, not al gore, created the internet. Hes one of the early guys slashing together and he was a top guy at ibm then. This is the champion of hardware and software and internet. There are people with Strong Technology backgrounds. Also strong administrative finance types on this board. Its easy to draw a bifurcated leadership on this board. That would line up against these. If mark is ready to be ceo, why not make his ceo. He made 78 million last year. Is he planned for retirement . Does have all his affairs in order . I think youre going to carry him out of oracle horizontally. Youll see jack ma today too. Im looking forward to that. Hopefully hes got his retirement in order. Weve got to get out. Thanks, guys. 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. 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. Still to come this morning, the currency trade after the big vote in scotland. Plus scandals versus sponsors in the nfl. Is there a playbook to handle this situation or is everyone avoiding getting sacked . Squawk box. Stick around. Well be right back. Helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. 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Built for business. Welcome back to squawk box, everybody. Among the stories that are front and center this morning on a morning with futures with indicated higher. Scottish voters rejecting independence from the United Kingdom. The vote threatened to break up the worlds sixth biggest economy. But at this point it looks like the markets are breathing a sigh of relief. U. S. Wireless carriers will start taking orders for the samsung note 4 phone today. This happens at the same time iphone 6 launches. And money going to the american society. It will help fund senior faculty at the cornell institute. Thats a Sciences Campus that opened in new york city two years ago. The pound hit a two week high against the dollar is the word of a no vote in scotland was announced and the exit polls. A wide enough margin. Joins us to talk currencies, boris slotslov and dan dicker. What would happen have happened, boris . What would they have used for a currency . Lets say it had gone the other way. Did you prepare for that scenario very seriously . No. I dont want to think about what would have happened. Not only would it have been horrible, but it would have opened a pandoras box and created all other opportunities. In many ways i think this was a welcomed event not just the brits but the europeans in general. Because it put the lid of the breakup and fracture ideas within the eurozone. Is there any reason that now that its all said and done, should people continue to buy the pound versus the dollar . Any reason to do that . When i was here last week, i said the market kind of thinks its going to be a no vote. It had a bit of a burst overnight to 165 as a result of it. But i think youve seen a bit now. A lot of the echblt was priced to the pound. You think the good news is this is pretty good. I think this is where the story in the uk forms our own story. The central breaks are in no rush. Thats why this whole frenzy was way overblown. I dont think its ready to hike rates any time soon. Theyre under no pressure. They dont need to unless inflation roars its ugly head. Then why the markets and im going to talk to dan dicker in a second who loves to go against markets and says the records are wrong. As long as my money holds out. The dollars been strong and indicating rates are going up. Dont get me wrong, i think its still a longterm dollar rally. I think its going to pause here as they try to evaluate Economic Data going forward. The bond traders are not 100 convinced rates are going up. The 5year starts to tighten up. But if the 10year going to 2. 75, then we have a rocket fuel rally. But until that point, the jurys still out. I see all these charts going by of the dollar. Boris, i dont know if youre a chartist, but doesnt this stuff look over extended . Thats why oil has been dropping. Its the one trade thats been making oil drop. Youve got ten reasons why i want to let dan talk. Youve got ten reasons the last time why you told us oil should be at 150. I think its a mirage. How long will you stick with that . At least until it breaks 90. Thats not that far away. Then what would you say . Then id look for another level of buy in. I thought youd say another job. My money is strong here. I can last a long time. Thats the expression. You can lets talk fundamentals. Today is alibaba day. Id be worried on oil if i were you too. You really dont want to update us on whether when do you expect to be right on oil . Look. I think that this is a longterm trade. I think that right now its connected directly into the dollar. Its directly connected to fed speak and what happens but rates havent started going up yet. Why would oil all of a sudden reverse and go back up . Youve been watching it. This is about an expectation of whats going to happen in the next year. It has nothing fundamentally to do with oil. Oil as still got a major problem. They have a major environmental problem in their cities. But theyre going to have to tre place that coal with something. Russian natural gas, oil from a global network. And theyre going to need another 20 Million Barrels a day. We also had Heidi Heitkamp on this week. She said its gang busters. Its already in the market, you said. Were already at 8. 8 Million Barrels a day. What were going to get in total is not going to surpass 10. Thats another million and a half barrels a day going to be added to supply. Again, were talking about in the chinese emerging market alone, a 10 million barrel a day increase in demand thats going to occur in the next 15 years. That you dont get from u. S. Shale. Its got to come from somewhere else. All right. Were going to keep having you back. Youre going to have to keep doing this. I just want to see if it it worked for ten years, joe. Its going to be wrong for a couple of months. I like it lower. Thats what im saying. And the world likes it lower. Youve been talking all week about normalization about oil prices. I wanted to ask you whats a normal oil price . 10 a barrel. Those days will never come back. I want 1. 30 a gallon. I do. I dont blame you. I do too. I pine for were of similar ages. I remember trading oil 16 a barrel. Remember when we walked to school up hill both ways in the snow . Things are so stupid. Buy of tesla and oil will go down to 1. 30. This is obviously in your term not applicable. Isnt there a way to alternative energy and this is something just starting and maybe the oil market as we know is going to completely change in the next five or ten years . Boris, when you get on that wind powered airplane, you let me know. 30 of all german capacity now is done with alternative fuels. And its costing them a major problem in their economy. Theyve had to walk away from it so fast. Its not economically a viable at least not right now. The rates are coming down radically. Thats the whole point. Solar is coming down then shale is wrong and bp is wrong and exxon is wrong and so on. I hope on that 737 thats solar powered, i hope you dont run into some clouds, boris. Into a cloudy day. Because i dont know what happens to your solar powered airplane. Anyway. Where are we going . Were going to wrap. Dan, thank you. Boris is still worried about that extra molecule of Carbon Dioxide out of the million we have now. Have you ever seen more twitter activity you see kayla did this selfie . Were going to do it after the break, but my thing is lighting up because of her expression. She looks so happy on this and its her face and jack ma is behind her. Were going to look at it when we come back. Still to come, Alibabas Jack Ma is at the new york Stock Exchange. Hes a rock star and Everyone Wants a piece of him. Were going to show you after the break with what joe was just talking about. And our jon fortt will be back with a little game of show and tell. Hes brought the new iphone 6 right here to cnbc. Well see if bigger is better. trader vo i search. I research. I dig. And dig some more. Because, for me, the challenge of the search. Is almost as exciting as the thrill of the find. announcer at scottrade, we share your passion for trading. Thats why we rebuilt scottrade elite from the ground up including a proprietary momentum indicator that makes researching sectors and Industries Even easier. Because at scottrade, our passion is to power yours. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. But at xerox weve embraced a new role. Working behind the scenes to provide companies with services. Like helping hr departments manage benefits and pensions for over 11 million employees. Reducing document costs by up to 30 . And processing 421 billion dollars in accounts payables each year. Helping thousands of companies simplify how work gets done. Hows that for an encore . With xerox, youre ready for real business. Checking the futures right now. I think were up 60 points at this point. After a pretty good week. Yeah. It has been. And the fed i think made the entire turn when the market was discounting earlier in the week, end of last week thinking the fed was going to remove some statements and it signalled it would be raising rates sooner than later. Since the fed spoke, all bets are off. Economys getting a little better. Few things happening. Every time i look over, i get ten new notifications. No one ever really cares what i tweet. But check out this thing of kayla. I asked her to take a selfie. Im told this is not really a selfie. Its more of a photo bomb. Thats jack ma in the background. I think jack ma is looking at her though. But someone is pretty happy to be standing there. Thats really cute isnt it . With an expression like that. Shes excited about being there. But people love this shot. And if you follow squawk or what is it . squawkcnbc. I think youre joesquawk. I cant even remember what it is half the time. We should leave that up. Thats cute. And its so its like a big face and then you see the guys behind her. Take a look at stocks to watch this morning. Dresserrand shares soaring this morning. German magazine reporting that siemens is planning to bid for the maker of compressors and turbines. Swiss pumping Equipment Company solser said it was talking with them about a deal. I wonder why no American Companies are bidding. Oh, maybe its not as attractive because of the well just deal with inversions. Those nasty corporations are trying to escape. Concur technologies being bought by s. A. P. For 129 a share. So 20 premium. Whenever you file your expense report now. Youre going to have to do it in deutsch market. There are people. Have you ever had an you use right . He comes with us on the road. He does. Do you have an expense account . Have you used this for anything that wasnt business related . You swear . Under oath . He thought you were skipping jury duty this week. Sworn in anyway. I know. Up next like theyd put him on jury duty. Hed let everybody off. Look at him with whats in his past. The nfl taking a pounding not only from the front pages of the tabloid and talk radio this week, but also have a number of its biggest sponsors. Will any of these big money endorsers actually stop advertising during the games . Were going to debate that once squawk box returns. How do you beat the number one seed . 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. Who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. Clearly you are type e. You made it phil. Welcome home. Now whats our strategy with the fondue . Diversifying your portfolio . E trade gives you the tools and resources to get it right. Are you type e . Welcome back, everybody. Procter gamble pulling out of a Breast Cancer initiative with the nfl because of the recent scandals. A number of sponsors also weighing in with some strongly worded statements expressing their concerns. So far, though, no top tier advertiser has walked away from football. Joining us to walk us through what happens here is karen kaplan and also derek desenhall. Thank you both for being here. Eric, i think the name of your book probably says it all. Things happen a lot more quickly. And corporations, organizations have to be looking at things differently than they did just five years ago. Correct . Well, they do. And i think the important thing to understand about the nfl is theres a very big difference between this Current Media vortex surrounding the nfl and this being a consumer crisis. One of the things the nfl has going for them that most organizations under attack dont is they have passionate constituents. They have people who want to go to the games and they have sponsors when all is said and done want to continue working with them. Even though i think some of them are going to be treading water for the time being. In terms of what the nfl does about this, theres really three things. There are hard tactics which is firing, suspensions if you look at what the nfl did on the injury issue. Theyve changed the fundamental rules of the game. Then you had number two, soft tactics such as bringing in violence experts even though we dont know what the dividends of that will be. But its an important exercise. And finally, the variable of time. I think this will pass out of the news like a lot of other things pass out of the news. You know, just eric, i wish i were you. Because thats ive gotten in all these heated debates and i would have said exactly thats how these guys operate. These pr people know how to phrase what theyre saying and thats exactly what i would say. You put those three things to gt. Because earlier today you know what i did . Its on the front page and everything, but i went to the sports page to see whos playing this weekend. Thats what i did. And i mean, i know its important and youve got two things child abuse and Domestic Abuse that no one is going to ever, you know, condone in any way. So the sponsors have to Say Something to cover their own. But i dont want to get cynical about it, but they have to weigh in on this thing. They do. And they will. But to actually pull when anheuserbusch pulls out and lets coors have its spot, thats when well, Procter Gamble pulling out of the Breast Cancer initiative. Thats what i meant by treading water. I agree completely. And treading water happens all the time. Look. Back in the bill clinton scandal you had the same American Public that wanted every single detail of his sex life. Meanwhile the guy left office with the highest Approval Rating ever. So theres a difference between talking in talk show world about a controversy and people abandoning the controversial figure. Karen, to joes point, hes in the majority. There was an nbc news poll last night that showed 90 of americans while they are outraged by this story says this will not affect the amount of football they watch. So what does this mean . So ill say the nfl like all brands are judged by two different lenses. People judge them as users and people judge them as citizens. And as users, they love the nfl. They love the experience of watching the games, playing the games, playing fantasy football, buying and wearing the merchandise. But as citizens this is whats erupting right now. So people need to understand what are the values and the beliefs of the league. What is the value of the league theyll hold themselves accountable to . They seem to come out with a different position that is based on the daily public opinion. And so the its sort of the citizen lens that people are offended by rather than the user lens. Does that lead to change ultimately or are we talking about a situation that blows over with the passage of time . This is whats interesting. Social media has really changed the way all brands and companies and leaders need to respond to things like this. Because on the one hand youve got a whole different set of influences youve got to worry about. Of course they have to worry about their sponsors and their advertisers and their regulators. But they also have to worry about ordinary citizens who can activate their individual social networks either for you or against you. And that is what influences, i think, a lot of advertiser and sponsor decisions as well. And then the other issue is that everything is visible and observable. So when by the time you see the video, we see the video. You know, every image, every text, every video. Nothing is hidden. And you just cant put that back in the bottle. You know, with what we see on twitter and with social media, its not exactly a you know, it gets ugly at times. And because it exists, it doesnt mean its right. And there are times where talk about no due process. But with twitter as you said, things can happen instantaneously. I mean, theres not even the slightest presumption that someone would be im not saying anyones innocent here, but you dont even hear the other side of anything. Youre already convicted. I mean, twitter would execute people almost immediately if they could. So i dont know whether that makes it right just because its real. And thats sort of what gets me here. When the head of the National Organization of women said the nfl has to do something about Domestic Violence in our society. And that to me just see, i would say we have courts, we have there are things that need to be done by society that you cannot hang on the nfl because ray rice did this in an elevator. But in the game of whack a mole between a company and social media, the company loses. Right. Doesnt make it right though. And contrary to what people in my field would have you believe that theres a way to overwhelm social media with contrary messages, there is no way. Thats one of the things i talk about in my book. That simply because there is an overwhelming presence of social media, it doesnt mean theres a clever way to beat it. Thats why you have to look at a longer term than trying this futile effort to beat things within the twitter sphere. Is it a net positive for society . I dont like the parts of the world that are dictated by twitter. Social media is a negative in Crisis Management because they cant beat it. Anybody who tells you for society thats something thats going to be debated over the next thousand years. And thats not something were going to resolve here. But if you are the target of attack, it is a huge negative and there is no way to beat it in the shortterm. When you talk about some of the hard tactics, eric, what do you think happens . We go to a zero tolerance policy where anybody who gets accused of anything gets taken out of the lineup . No. I mean, theres a thing such as going too far. Youre going to start hanging everybody before we know whether they did something or not. As karen correctly said, now that everybody is carrying these little devices and you can film everything, theres nowhere to hide. Years ago you could jump ahead of controversy by trying to prevent it. The whole cliche of get ahead of the story is virtually dead now. But i think that given is that youre dealing with video cameras everywhere, the only thing you can do is default to hard tactics, punish bad actors, but you have to not overrespond either because i think youre going to see a violent reaction when innocent people are hung out to dry. Youre starting to see this with the issue of spanking a child which has been taken out of context in many situations. Theres a difference. So youre going see that happen over the next few weeks as well. Very quickly, just one word on this. The nbc poll last night less than a third of americans thinks goodell should go because of this. Do you think he survives . I do. Karen . And what i think they need to do is put forward consistent policies that deal with criminal behavior, that deal with all kinds of behavior so that people really have a good understanding of what they stand for as a league. Okay. Thank you both. We appreciate your time today. Thank you. Another blockbuster hour of squawk box is still on tap this morning. The president of the nyse will join us first on cnbc. Is the Stock Exchange ready for todays alibaba ipo . Plus stocks from china. Since they started trading here in the states. And later should American Companies be excited that Companies Like alibaba are coming to our shores . Well ask the u. S. Head of chamber of commerce. Thats when squawk box rolls on. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Alibabas big day. You are looking at a live picture of the u. S. Stock exchange where the chinese ecommerce giant will start trading. The iphone 6 officially on sale. Youre looking again at a live picture of apples Flagship Store in new york city. Thats where folks have been on line for days awaiting this moment. And were live in scotland this morning where it will stay a part of the uk. It is 8 00 a. M. Here on the east coast. And the final hour of squawk box begins right now. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernen along with becky quick. A special night for falcons return man david hester paying homage to his idol deion sanders. More on that and the nfl in just a bit. But first we have some big events happening today. We are less than 90 minutes away from the largest ipo ever on wall street. The new york Stock Exchange is set for alibaba to begin trading. Just about an hour ago jack ma and alibabas executives showed up at the exchange. Lots of pomp and circumstance down there. Were going to get the rundown on whats expected on the day ahead from the president of the nyse. Just minutes from now everything from pricing to the first trade to the safeguards in place to make this event go off without a hitch. But first, putting other chinese stocks in the spotlight. Our dominic choo looking at how those imports from china have done since coming to america. You cant make a generalization what stocks do when they go public. But especially chinese internet stocks have really, really a lot of scrutiny put on them for a number of reasons. We went all the way back to 2005. That was when baido became public. Look at the other ipos that have come to market in the United States and how they did on their first day. Look at this one here. Renren which is like the facebook of china, it popped ep 20 . But since then its down 70 . Not all these stocks go up. But look at some of these other ones. This is leju. This happened this year. It was an ipo at the new york Stock Exchange. Its up 20 on its first day of trading and still up 38 since then. Meanwhile go this one here. Interesting. Vip. Since march of 2012 its up 3,000 . Thats what maybe some investors are looking for. But what they really want to see is what happened with baidu because its like the google of china. This went public in august 5th of 2005. Up 350 on its first day of trading. Then up 8,000 over the last nine years. A lot of people want those first day pops with but the staying power is there for chinese internet stocks. Back over to you. Up 8,000 . Thats jaw dropping. What were were talking about oracle today . Up 90,000 but that was since 1977. People have been waiting to get their hands on the iphone 6. Dont run out to get one until after squawk box. Morgan, at this point nobody else can get on line. Theyre going to run out. Its looking like that could be the case certainly. 4,700 people last time we checked had been on line this morning ahead of this launch. And theyre all on line to get this. This is the new iphone 6 and the sister model iphone 6 plus. The lines have been stretching up half a mile up ten blocks. Two really interesting things going on here. Because theres so many people, businesses have been coming in and using this as a marketing opportunity. Everybody from mcdonalds to grub hub to Double Tree Hotels have been here promoting their products. Also, a lot of the people on this line are chinese. Thats really interesting given the fact that Mainland China is not getting these Iphone Models until most likely. 2015. So these are some of the trends were looking at right now. As you can see people going inside and apple employees cheering them on. So certainly a very busy event here this morning. Back to you. All right. Morgan, thank you. You can hear the crowds cheering as theyre heading in. Joining us right now on set with the new iphone 6 and to give us his take on the ipo is our jon fortt. You have these things. Hand them over. Lets see. I do. And ive brought my iphone 5s for comparison. Okay. I want to get a selfie with the new iphone 6. Can i get a selfie with that . We can arrange that, yes. And here is the 6 next to it. Now, im a skeptical reviewer. I used to review products for newspapers. Im still not convinced. Can i see it . Absolutely. Im not convinced i need a larger iphone. Heres what some of my larger handed friends expect to be getting the 6 plus. Now, people are you either want this thing because youre like heres what aye been waiting for or you go this is a monstrosity. It is so much larger. One handed operation of this thing is virtually impossible. Apple has a one handed mode for this phone. If you tap twice here, see thats what you have to do to reach the whole thing. It makes half of the screen out of the range of your thumb. But there is a market for these larger screen phones above five inches are the highest growth segment of the smartphone market. I wonder what steve jobs would think of this looking down. He realized what the customers wanted. Whether it was he was against the mini ipad until apple had to do it. We saw he was getting convinced on that. And now larger phones. What apple says is we werent against larger phones. We were against doing it the wrong way. But i think they were against it. You left your twitter open and im tweeting from your account. Something good i hope. I just tweeted a hi. But joe, tweet whatever you want. I do like this. I do too. Its thin. I thought it would be thicker. Its thin and its its thinner than my 5s. I think i like that one better. I like the midsize one. Its not like a tv. I do get frustrated because you do so much on your screens nowadays. This i cant even i cant heres what i find. If youre into video and youre a twohanded phone user where im going to take this out and be engaged with the content, you dont mind a bigger screen. Or if youre a giant, right . But if youre like me and im a person whos taking my phone out multiple times a day whether its tweeting, emailing, messaging. You need something you can kind of quick draw. Its kind of like you want a Rocket Launcher or do you want a pistol. Im more of a pistol guy because i use it a lot. People are going to have to make those decisions, make those tradeoffs when they go in the store and decide what model theyre getting. Theres people right off the bat that know. I lost this right as i was trying to tweet something. Now i cant find youve got these Little Things where inside of them they have six things. I dont have any of those. Wheres twitter . Its on first screen. If you go to the home screen, down at the bottom. I tweeted your boss from you. Great. I cant find it. I was going to say joesquawk is much better looking in person. I cant find it. I had my chance to sweet on your phone. I have short arms. Its too far. Here, ill get it back for you if i can. This is the hot stuff thats happening today. What about the alibaba ipo . Heres where i am on the alibaba ipo. Its the biggest ipo ever. Its a huge brand event for china and for chinese capitalism. And a lot of questions about the structure of governance going forward. For me this is the litmus test. Jack ma for me is the first huge chinese tech ceo who gets to be a visionary plp the Chinese Government allow someone to be like a zuckerberg, like a gates. And that will sort of on an International Stage too. On an International Stage. And the will, i think, color how Silicon Valley and American Business in general interacts with china based on how this is allowed to go. Now, jack ma has played in these circles for quite a while. He shows up with some of these people. But even today hes having a lunch that hes going to be meeting with some of the big leaders there. Theres a big dinner tonight and then next week hes going to be at the clinton global initiative. So this is maybe not completely a new way of doing business, but this is on certainly a grander scale. Ltheres a lot at stake. China wants investment. The ceo goes over and the end up somehow the company ends up giving tens or hundreds of millions of dollars to chinese startups committing too building factories or investing rnd in china. Thats what the government wants. But at the same time theres this protectionist attitude towards made in china technologies and companies. Whether its lenovo. They want to give those companies the best foot forward. So which way will that go as we see alibaba get more of the world stage, get more global investors. Will china allow it to go its own way or will they pull back . Thanks for bringing in the phones today. And wait until you see what we tweeted. Thats great. Can i have that back now . Maybe. Maybe. Okay. Thank you, jon. And the votes are in. Scotland will remain part of the uk. The british pound hitting its highest levels in years against the i just said right back to you. So are you, dom. You are much more handsome in person. Not exactly striking as i put for myself. Michelle, i tweeted on jons new oversized iphone 6. Im going to say this edinburgh youve got to roll your r. You should be good at that. Will you say it for us . Edinburgh. Boro. Think of it that way. Scots voted no. And it was a lot wider than what the original polls or the last polls they want is supporting independence. Those in charnl of the no campaign were incredibly jup le jubilant. However over in the square in glasco, they were quite sad about the results. Now looks like scotland will get more power and control. Thats another big story thats going to happen here. You showed the british pound. It moved sharply higher. The first results came out, and bam. It went to buck 65. Its pulled off the highs but its certainly way beyond the buck 60 it first went to when we saw the polls. Rbs, take a look at that. Were going to show you the listing. It is higher on the results. The spanish stock market is doing well. Investors there relieved about scotland because theyre hoping that might temper catalonia which is another area looking for separatism. It rallied in the morning. The tenyear yield. And as a result weve seen it come down 2. 2 now as these polls had show it will go towards the noes. I dont know enough about how the vote came up, but is this a onetime vote and is chance it comes back down the road . Not in their life times. I mean, both sides, on both sides of the campaign they said this is the one chance in a lifetime. They spent a long time negotiating it. Its a twoyear process. Unlikely were going to see this again. Especially because theyre talking about a major change in the way the uk is going to be governed. Maybe that resolves some of the pressure that had been on the Central Government in terms of these issues that brought about the desire for independence. Okay. Michelle, thank you. Up next, the good times just keep rolling for investors. Since the march 2009 bottom, the dow is now up over 160 . The s p almost 200 . How much longer can the party l last . Well ask a top strategy. And then the president of the new york Stock Exchange with us just minutes from now. Squawk box will be right back. T new car smell and the freedom of the open road . 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 e financial noise financial noise financial noise financial noise shh yeah. Because we never talk we never mess up. Welcome back to squawk box. What were you saying . Coming on at 8 00, it feels like the middle of the day. Its almost like noon. You got to sleep in. But we didnt. I know. The s. E. C. Is reportedly investigating a Goldman Sachs internship for the brother of a former official at libyas sovereign wealth fund. Thats interesting. Regulators are looking at perks allegedly offered to the fund. It comes after allegations by libya that goldman exploited a position of trust by urging the fund to invest more than a billion dollars in trades that ended up worthless. The dow and the s p kicking off this final trading day of the week at record highs. Check this out. The s p is now up 41 since the beginning of 2013. Its got people questioning how much longer stocks can climb without a meaningful correction. With us is jonathan golub. Its great to see you. Great to see you, becky. Everyone was nervous before me got to the fed meeting thinking wed hear a different tone from janet yellen this week. We did not. That seems to have everybody off to the races again. How long does that last . First of all, i think that market run is going to keep going as long as the economy continues its recovery. So its not the fed. You think its the economy. Lets be honest. The fed is dancing to the economy. Its not that the economy is letting the fed tell us what to do. And i think that were not your 5. 5 in a 7year soil. I think were in a 11year cycle. Well say how much further can it go in a year or two from now. What makes you feel so optimistic about the economy . What are the signs youve seen that make you think this is for real . I think theres a shortterm issue and longterm issue. Longer term, weve had really by far the slowest recovery weve had since the end of world war ii. Inflation is low, we havent had the kind of job creation. Were not as far along as we should be at this stage of the cycle. That means theres a lot more room to run. Near term, all the economic indicators. Companies are increasing their guidance on earnings for the next couple years. They normally keep they start to ratchet down. Now theyre increasing it. Expectations for the economy are rising. Ism is going up. The whole sweep of data is telling us were reaccelerating. We had mark on this morning and he pointed out when you look at some of these overseas economies like in india, theyre facing much higher inflation. Theyre very worried about whats been happening, what happens when the fed does start to raise rates. Does that catch up with our economy at any point . Or are we able to outrun the emerging markets, china, europe, any woes along the way . I get concerned when mark farber comes on. Its what is he going to say that is going to be water on this fire. But would it be great to see the world growing faster than us and helping pull us forward . Yes. Were also the single most selfsufficient economy in the world. Just because were so large and we have such a vast array of resources and things of that nature. Were the single economy that if its sloppier or weaker we could do okay. Would i like to see japan and europe growing more than zero . Yes. And are there questions on china growth and things of that nature . No question about it. Go ahead. I was just listening to you, it doesnt make sense to me you say its not the fed, its the economy that has the market going. But the reason the fed is staying for a considerable time is because the economy is not where it should be. So its not the economy. Right. So my youre saying it is the economy because the economy is still tepid . My thesis has been that, you know, were in a weaker economy for a variety of reasons. But really, you know, its the aftermath of what happened a number of years ago. And therefore the weaker economy is forcing the fed to basically so its different than a good economy. Its an economy that might be just right. Like the soup. Like goldilocks. Its disappointing. So having an economy thats growing at 2. 25 is disappointing. What does the fed do . They play along to keep things easy because things arent great. Then thats different than what i thought you said. I think the reason that we get a really long recovery cycle is because its not great. You say new normal or put it how you wish. Jonathan, thanks for coming in. Thanks. Did you have an important last moment to make . No. I was going to see if i could knock him on anything. Did mark farber say anything else . Hes got a lot of different points. I guess people wonder just with alibaba out today with the things we get to excited about, does that concern you. Theyre going to roll it over us anyway. Still to come, salt and pepper, chips and dip, now pizza and pot. Peyton manning knows this is a winning combo and hes cashing in. Thats next on squawk. Plus its a big day for the nyse. What has the exchange done to make sure that things go off without a hitch . Were going to ask big board executive tom farley. The world has gotten you far,f 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. So what were looking for is a way to plus our Accounting Firms mobile plan. And minus our expenses. Perfect timing. Were offering our bestever pricing on mobile plans for business. Run the numbers on that. Well, unlimited talk and text, and ten gigs of data for the five of you would be. Oneseventyfive a month. Good calculating kyle. Good job kyle. You just made partner. Our bestever pricing on mobile share value plans for business. Now with a 100 bill credit for every business line you add. Welcome back to squawk box. Business is going well on and off the field for peyton manning. The Denver Broncos quarterback invested in 51 papa johns pizza franchises just before the state made Recreational Marijuana legal. In an interview the nfl star says the pizza business is pretty good out here believe it or not. Due to some recent law changes. So when you come to a different place, youve kind of got to learn everything that comes with it. Shares of papa johns rising more than 17 in the last year. Peyton does the commercials for it along with papa john. The guy, the owner. Yeah. The c eeo. He keeps trying to get better. I think hes okay with it. You do . I think he needs to keep working. I can tell you at the break. Tell me now. Then im not telling you. I take it back. Up next, first on cnbc, the president of the new york Stock Exchange. Thomas farley will join us live. Hell walk us through what investors can expect when alibaba starts trading today. Then the man of the hour, jack ma will be joining squawk on the street. Right now as we head to a break, look at the futures. Dow futures up 50 and s p up by just over 5. 5. Bloop. Welcome back to squawk box, everyone. Clothing maker Vf Corporation was upgraded to buy from hold. That firm expressing confidence about meeting at a recent analyst conference. We mentioned earlier that conquer technology is being acquired by germanys s. A. P. The same not true for s. A. P. Whose stock is actually falling on news of this deal. Down by about 4 . And red hat earning 41 cents a share for the second quarter. 3 cents better than expected. However, the revenue forecast came in below the street estimates. Stock down about 2 . Wall street and the entire world anticipating with great excitement the first trade of one of the biggest ipos ever. I dont think its anxiously waiting. Alibaba. Bob pisani joins us now on the floor with that cant be the head of the new york Stock Exchange. That young, handsome strapper right there is the head of the new york Stock Exchange . How tall is he . If you stand around long enough, the new generation takes over. Tom farley. Big day for the new york Stock Exchange. Big day for your boss. The prior ceo also helped negotiate this deal. Big day for him as well. Howd you sleep . How you feel . I feel good. Thanks for the introduction, joe. We feel confident but not overconfident. Its a big day. Its a big ipo, but thats what we do here is bring companies to market. We have the four largest ipos this year happen here on the new york Stock Exchange. This is our business. And were ready. We dont take success for granted. But i feel good and i slept pretty well. Were anticipating a very large number of orders coming from asia. I guess thats the question. Are you confident that youve done everything you can to test the systems. Make sure everything works as smoothly as possible. Confident but not overconfident. Were constantly testing here. Operating systems from listings, tradings or security industries. Were constantly testing and preparing. Because of the sheer size and magnitude of alba, we did tests. We did three big tests including two industry tests on a weekend. We include our broker dealer customers. All of those did well. I think were ready to go. Theres been a Conference Call this morning with the major market participants. This happened with twitter. This is a process youve gone through before. You mentioned the call this morning. The new york Stock Exchange has a hard earned reputation for doing these things well without mistakes. But we dont take it for granted. We think if something could go wrong how do we need to react. The primary thing to do there is communicate well with your broker dealer customers. We had a call open this morning. I expect to be on that call so we can react quickly. We have open lines with each of our large order flow providers. We have great people on the floor of the new york Stock Exchange who know how to react. While i expect it to go smoothly, were prepared no matter the circumstances. This is a hardwon battle between you and nasdaq for this listing. The most coveted in the world right now. Can you give us insight into how you won the deal . I dont want to speak for alibaba in particular, but when Companies Choose to list here, number one we have the greatest list of companies in the world. Number two, you get incredible Media Exposure by listing here in this iconic building. And we have humans and technology at that point of sale. And humans can say wait a minute, i want to slow this process down if theres an imbalance of buyers or sellers or vice versa and make sure we get it right. Before i let you go, talk to us about the International Business here. We have a chinabased Company Listing a sole listing in the United States right now. Obviously there was some board issues, but tell me about what that means for the nyse. What it means for the global stock market. Sure. One thing that makes me particularly proud about our business is hes not just the premiere listing venue here in the states. Were the premiere listing venue globally. Or even next week we have a billiondollarplus ipo. The worlds leading Global Companies are choosing our venue. There is a tidal wave of ipos coming. Next week 7 billion in ipos. How do you feel about the ipo market right now . Good. Like i said, alibaba is a large ipo, but we do this often. We have a 3 billion citizens pasta ipo so i feel good. Before we let you go, the big question, what time is this going to open . You know, ill answer your question directly respectfully. I want to start by saying i dont really care. Part of what i like about our model is that we have humans that can work with the technology and they can open the market when theres a balance. And when that entrepreneur can get a full and fair price for their stock and the stock can trade as smoothly as possible. Its going to take awhile this morning because its large. Is it fair to say and everybody down here is talking about this, it could be two hours. Could be two hours, could be three hours. And thats the model working. Prediction on price, open, anything like that . No. None at all. Okay. And the important thing is heres where its all going to happen. Theres some of the team, some of the guys back here. Were going to be here. Were going to be behind the scenes. Were not to be back there. Were going to be there with pat and lane the designated market makers. Were there all through the morning with the head of ipos who works for this guy whost going to walk through the whole ipo process, explain to us how theyre building the book and how the process works. Nowhere else but cnbc are you going to be able to see this kind of inside view on how the system works. Good luck. Thanks for being here. Always appreciate you coming on. Thanks so you as well. Appreciate it. Going to be a big day for the nyse and capitalism, i think. Back to you. Yes. From a capitalistic country. The kind we used to be, bob. Years ago. If youre going to ask him a question hes not going to answer like when its going to open, ask him what price its going to open at. We dont care when. Its ask him that. If hes not going to answer something. I think he already has said. You want to answer that . No. Well get him backstage and see if we can get it out of him. That is going to be neat though. And thats great youre going to be there watching everything get matched up. And i have the utmost confidence in the nyse under this gentlemans leadership. Thank you very much. Nothing happens unless human beings Say Somethings going to happen. Doesnt open until the guys back here as well as the book runners get together and say we are ready to open at this price and with this number of shares. Somebodys got to sign off. Humans are here. Yeah. Apparently he spends a lot of time there at the new york Stock Exchange working on that and not practicing golf very much. But hes good at the Stock Exchange. Thats the gods honest truth. Inside joke, folks. We appreciate it. Up next a gatorade commercial paying tribute to derek jeter. You wont believe what tickets are going for for the final home stand of his career. Details after the break. And on monday we are unveiling the results of an exclusive new global survey. Its called the corporate perception indicator. 25,000 people from around the globe weigh in on issues like taxes, job creation, and how corporations are perceived. Its an eye opening survey and you can only see the results right here on squawk box. Monday at 7 00 a. M. Eastern time. 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. 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. 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. The final curtain my friend only ten games left for derek jeter as number 2 gets ready to retire. Paying tribute to his fans in a new gatorade fan. Jeter Walking Around the stadium while Frank Sinatras my way is playing. The full ad will be running this weekend. Its already gone viral. Tickets for his final game are now going for thousands of dollars on the secondary market. Thats according to ticiq. As for jeters final, final, final game which will be played in boston, the average price on the secondary market is currently 445. Safe to say that that is likely to go up. I havent checked our standings. Is there no way they can do a wild card or anything. How do we know its his final, final, final . Yeah, but can they make it in the post season . 99 so youre a fair weather i thought you were a yankees fan. So youve given up. Our producer has given up. Hes saying, stating its the final, final, final game and they cant possibly make the playoffs. How about final, final, final game if the regular season. That should have been in there. How pathetic. Coming up, the al its the voices in your head. The alibaba ipo just another example of how the chinese are moving into america to do business. But will it hurt u. S. Competitiveness . Well ask the head of the chamber of commerce tom donahue. Thats next on squawk box. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Know that chasing performance and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. 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, everybody. Weve been watching the futures this morning. We have seen more green arrows. This is after a week where weve seen positive moves for the market. The dow futures up another 65 points above fair value. Nasdaq up by about 16 points. Ben affleck says he counts cards and is not apologizing for it. He says thats just being really, really good at blackjack. Last spring he was hit with a lifetime ban at the hard rock casino after officials accused him of counting cards. But he said what went down wasnt as dramatic as the tabloids led us to believe. The casino asked him to play another game but he says blackjack is his passion. In other words, he doesnt play other games of chance. If i could count cards, i would. I think theres a way of how many face cards above and below average you are. I dont know how he does it. Id do it. The idea that you cant have an advantage, well no, no, no. Yeah, because the house already has an advantage. Whole feeling of gambling gives me the creeps though. As weve been telling you, alibaba set to start trading in about an hour from now. Its a big deal that the ecommerce giant decided to list here in america. Should we expect more Chinese Companies to come to america . Is that a good thing for our economy and our competitiveness . Well talk about that with mr. Donahue chamber of commerce head. Two forces coming together here today trying to buy prize u. S. Assets because theyre worth more to them because of our tax rates. I wouldnt imagine you say its bad for alibaba to list on the new york Stock Exchange. I think its great for the exchange itself and for the reaffirmation that america remains the center of Capital Investment and the creation of capital for the globe. At the same time, while we welcome them, look forward to working with them, we want to remind the chinese that we expect and want the same treatment of welcome, of fair treatment from the government and the regulators that alibaba can expect to get from the United States. And i believe that we should really focus on the fact that 95 of the people that American Companies want to sell something to are somewhere else around the world. Were in a Global Economy. And a great supporting factor for us is were in that economy as the center of finance. How one thing weve talked about, you look at the history of jack ma. You look at the 45 profit margins. Everybody likes a winner. Do you get the feeling have regulators here were not looking the other way and sort of, you know, not paying as much attention as we should to some of the discretions of jack ma or this company in the past are we just to get it here . Lets look at that from what we are doing. Were working very aggressively with the accounting regulators around the world to make sure that not only companies from china but companies from all over the world try and live by the same standards that we do in counting the money, counting the success, and enumerating the failur failures. Thats the only Way Investors get a fair shake. And we will continue to insist on that on markets all around the world if people are going to have and companies are going to have access to the u. S. Capital markets. I feel better about it than i did a year and a half ago. I think when a number of Chinese Companies had to withdraw from some of the markets, there was a recognition that they had to get their books in order as we and others in the world see them. And i think youre going to see more of that not only from china but from other countries where wellfunded, wellled companies are developing themselves. All right, tom. So today we got a couple of more Foreign Companies do things for different reasons. Mergers arent all about taxes, obviously. But we do have theres interest from a Swiss Company and another one french for dresser at this point. Concur its s. A. P. So when we talk about inversions in our tax rate, all we hear inn our tax rates, all we hear from shermer or jack lew is about the companies in the United States, they try to tell us all they are doing is moving their headquarters and they are escaping taxes. They dont ever talk about these other companies that are able to buy our companies because on a business, just looking at apples and oranges, they are able to its more profitable for them based on their tax rates. We are losing here, as well. Probably losing more here. They dont talk about that. Do you . Let me say that it is an election season. I believe the senator and the secretary are trying to deal with some difficulties as americans begin to understand that we really have a tax system that is unfair to American Companies and has been for a long time. We pay the highest tax rate and we are restricted because we pay it twice. No other country, major country, goes without a territorial tax system. We have to pay it overseas and we have to pay it here. Now, whos behind all of this . If you really look into it, youll find the street, those very same people you were talking about this morning at the new york Stock Exchange, the street is going around saying, look, if you were to do an inversion, youll pay half the taxes of those types while youre still paying taxes in the United States. Then the government comes back and says, we are going to stop that. There is a very, very important thing that the governments got to think about. Well, two things. One. You cant change tax law by regulation. You need a law. But the second thing is, if we were to change it, that would put all the muscle then overseas because the very same markets and the very same investors would go to switzerland and say to a drug company, heres the capital. You go buy pfizer or you go buy another and bring it there. Now then, america is going to lose. Thats whats already happening. Thats what im talking about today. Because Foreign Companies you can do a valuation model on what a company here is worth to a domestic company. Its not the same. The company outflow is going to continue. I know theres elections every two years, tom. But are politicians that dense, the ones that talk about creating jobs and caring about the middle class, theyre that dense they dont think maybe we should do something instead of just fixing the symptoms . I think you would agree that we can sit here and talk about this because we are very familiar with the issue. I think we would agree there are a lot of people in the business that understand about inversion. But the buddy politic, be the people all over the country, weve got to talk to them and explain what its about. Its about double taxation and its very, very much about an idea that jack lew and others have that we would go back and collect retro active taxes. For get that. Tom, tom the bottom line is senators and congressmen sometimes react more to the knowledge of the people than they do the knowledge of the experts. President obama was head of the harvard law review. Hes such a smart individual, you cant tell me he doesnt understand that. Does he . Are you telling me he doesnt understand this . Not at all. I might say he fully understands it, but may not appreciate it. Im willing to listen to any explanation because its confounding to me. I dont understand it. What i hear is that big tax changes and tax reform takes years, three years, five years. Theres all these sacred cows. The Big Companies dont want to do it because they get all the loopholes. So before all the tax dollars are gone, we need to do this now. We need a small fix to prohibit them from doing it instead of a large one. Thats what they are saying. We would appreciate ourselves with a fix that looked at the issue of double taxation and put a fix in on that. You are not going to lose money because they are not going to bring the money back to the United States to pay taxes on it until we change the law. Are you okay with a revenue neutral one that changes the tax rates but remains revenue neutral . Ive been around a long time. Ive had more people walk in my office with revenue neutral tax deals that dont go very well for the business community. Lets see the numbers. All right. Keep the faith, tom. I dont know. Youve got a tough job. You keep hammering away. All this stuff youve been trying to do the past five, six years, you are not getting anywhere . Oh, yeah. We are doing great around the world. We are doing all right in some of the regulatory things. Hang on. News at 11 00. All right. Thank you. Good to see you. Thank you very much. Youre welcome. Tom donahue, chamber of commerce ceo. It is a big day for business and it is just getting started. Alibaba set to start on the Stock Exchange. All the news on the floor. Apple iphone 6 going on sale a short time ago. This is a live shot of the Flagship Store in new york. One thing we havent forgotten today. We saved the best for last. Here is a hint for you. Arrgh. 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. E financial noise financial noise financial noise financial noise hello, maty. We saved the best for last. Its International Talk like a pirate day. Pull out your eye patches and giving pirate talk a try. We are not talking about the somali type pirate. We are talking about the nice pirate. What has eight eyes, eight arms and eight legs . 16 pirate. No, four rookie pirates. Why k did the pirate have red eyes . Why . He smoked too much seaweed. Do you that so well. Arggh. Those are new jokes. We usually do the same. I got the rookie one. Whats a pirate with two eyes and two legs. A rookie. I doubled it. You did. We would be remiss if we didnt say it one more time. Alibaba. Thats it. We are in the final countdown to the ipo of the year. Alibaba set to go public on the nyse minutes from now. Jack ma was greeted at the exchange earlier this morning with rock star status. Kayla snapping a selfie with him. I cant compete. Big day today. Squawk on the street starts right now. 15 years after its founding and months of speculation, alibaba goes public at the new york Stock Exchange today. Good friday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david farber. The launch of the apples iphone 6, oracles Larry Ellison relinquishing the ceo title. Can you believe the