Transcripts For CNBC Squawk Box 20141103

Rosey lately with volatility back with a vep jengeance. The dow is up 4 . The s p is up 5 . And the nasdaq is up by roughly 9 . We have been watching the futures this morning ahead of the opening bell this morning. We do see red arrows with modest declines. The dow futures are just 28 points below future values. The s p is down two points and the nasdaq is down 3. 5 points. Over to you, andrew. Well talk Corporate News this monday morning. Argentina suspending proctor gambles operation in the country accusing them of tax fraud. Argentina accuses the company of overbilling 138 Million Dollars in imports to get money out of the country. They are gaining in mccow with and lists looking to decline year over year. Among the reasons, fewer tourists slowing the Economic Growth and china fighting corruption. And in a monday morning deal already this morning, the publicis is buying sapient for 25 a share in cash for 3. 7 billion. Thats a 44 premium with the deal coming after publicis failed on the commerger. Culture issues didnt work and they want to be in the digital space. Investigators continue to probe into what caused the Virgin Galactic spaceship to break apart over californias mohabi desert. Among the findings so far, a device to slow the spaceships descent is said to have deployed prematurely. The spaceships copilot was killed in the crash and the pilot parachuted to the ground and was found alive. Hes breathing over the accident but determined to move forward. We have always done commercial spacecraft travel is an incredibly hard project. Safety has always been a number one priority. This is the biggest test program ever carried out in commercial aviation history. Precisely to insure this never happens to the public. And the journal weighing in with an editorial saying things like this when youre trying to do something this difficult or are part of the process as unfortunate as it is. There were questions raised. In the past they said this was so expensive. It is the first time they were using a new motor on board. But i read that the journal says it was a structural some people say structural and others say its a change in the motor going from rub tore plastics. For fuel. But i dont really know anything about this, but part of the question raised over the weekend include things like, should you be doing more nonmanned test flights. Critics say its too expensive and wonder if that leads to a push for more difficult things. Well have more. Jane wells will report live from the site of the crash later this morning. Another quick deal crossing the tape right now. The lab man is reresponding with 105 a share for labcorp. Well get the latest and bring it to you later. Check out oil prices because the market has been fascinated with this for weeks at this point. Up slightly this morning by 15 cents. You are still looking at wti at 80 and change. 80. 69 right now. Also check out what is happening with the tenyear note, its yielding 2. 321 . The dollar this morning is up against both the yen and euro. The dollaryen is at 1. 1327. And gold prices at this point look to be barely budging, 1,171. 80. Stocks as we mentioned, a notsoscary it man and on the economy we have kevin cummings. Director economist at ubs. Jeff, well start out this morning just looking back at things harrowing at points, but at the end of the world you saw an amaidsing setback. What happened . I was on yalls show before i left to europe in twoandahalf years ago. Since the october 2011 reversal to the upside, many stocks were at 30 to 40 . So you had extreme oversold condition. You made a bottom and got to bounce back. Typically a bottom is due to the dress. Does that mean theres a oneoff if you missed your opportunity or will the market test the levels . Tippic lip it will cop sol date for six to eight weeks, maybe not tessa but come down half the amount of the rally. I dont know if youll get that. What would you tell people at this point, sit sir . I do think youll be up going into the elections. I think if the republicans take back the senate, youll get a blowout move to the upside at that juncture. I would be selling some trade ing before i would get involve d. Consensus is near 230 so i think it will be a Pretty Healthy report. Were looking for another drop in the Unemployment Rate to 5. 8 . And that will be real important obviously for the fed and how quickly they begin to normalize rates next year. So i think that right now were getting closer to that level where the fed expects to see some pickup in this last week. So this could be an important read from the perspective of how much closer do we have to get to when we look at the yearoveryear basis. You are still near 2 whatever wage measure youre looking at. But with the up employment rate dropping to 5. 9 , thats the first fivehandle since july of 2008. We are probably going to see a further increase in wages. If you look back to the cycle, you didnt pick up in earnings. Over the next two years, you did have a twopoint appreciate in wages. So youre likely to see a pickup in wages over the next two months. Why do so Many Americans feel like they are not happy with the direction of the economy . There are a lot of pluses and minuses that go into adding gdp. You saw two things that will reverl a little in the fourth quarter. You have cut estimates from a little above growth and below 3 on friday to account for that. But i think in the private sector economy, it is taking the baton that we dont need all the assistants from the government sector like the fed and obviously q1 has come to a completion now and the economy can take off from there. Obviously it was as high as 10 a few years ago, but now its not going to feel that great for those dropping out of the law force. They no longer dropping for work, but the economy seems to be moving in the right direction. We are not looking for any kind that things are maybe lukewarm and that keeps the fed in here, are we . I think you start on i think the economy improves from here and youre north of free gdp. I capitol is all many want to talk about, the u. S. And capitol. I think money is going to come here and i think we are in a secular bull market with years left to run. So even though we have snapped back to these new highs, youre okay with that. Its not necessarily wait for another correction, go ahead and keep putting money into play. I would check on a smart term basis, i would take trading positions off the table here. But i think we have another eight to ten years in this thing. Both of you thank you for your time today. Well talking about walking a different tightrope this morning. Daredevil Nick Wallenda made it across two towers with the wire 3 4inch thick. The first part of the act is walking on a 15yard incline to give him the record for performing the worlds highest walk wearing a blindfold for the steepest incline. My heart was pounding out of my chest as i was watching this last night. I almost wanted to look away. Discovery Network Posted that event. I dont know if you saw it while on the water. But they thought he could somehow no, he thought he was going to somehow grab onto the wire. There was a literally my heart was i couldnt believe it. And some of the aerial helicopter shots and the shots of the lot here. I watched the first one and thought, hes doing it again blindfolded . And youre worried. I watched something that could have had much more disastrous consequences and i did, that was the jets game. He said prior to getting on the rope, the people are watching because they want to do th that. It is an obvious thing to say, not really true. But if there wasnt the risk of that happening. Since we are a business show. My question is how much should he get paid to walk across that tightrope . I dont know, i looked online to find out how much they pay. Because it bothers me we celebrate this risktaking that you could die from. Hes going the keep doing it until until something happens, right. Find out how much in any sporting event, find out what the growth is and whatever is fair for him. What was the total pay . Because it was all about him. A twohour live show that works in a rebroadcast a hundred times. You can do it in multiple countries in discovering i was global. This is a conversation i was having with an interesting business in how much you pay for it. It only happens every once in a while. Im ann and im still pounding, but last time he said a lot of time went to i understand, but you dont need to ask for gods help to not fall off. Just dont get on it. I think hes got a pretty good idea hes going to make it. I think he feels pretty confident. I think hes really good at it. Would he be doing this if he didnt think he had a shot at it . I think he i was wondering if he fell and grabbed onto the rope, he wouldnt have to he could have hung for 30 minutes. Within one minute they can be on the track to have the pulley system to come flying over. However, that assumes you catch the wire. If its 40 degrees outside, your hands are cold and youre blindfold blindfolded. I will say this, why wont you attach yourself to it wearing a hardness. Apparently theres a dayer in that, too. Not a death danger. Why not a parachute on. Thats what i thought. You see all the wires that are stabilizing it . Yeah. Youre dragging effective ly but that can make you lose your balance. Anyway, there it is. When we return, gamers getting a first taste of the latest call of duty and advanced warefare. Thats really fight iing. They both left. Squawk box returns in a moment. Are we still on for tomorrow . Tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Csx. How tomorrow moves. What a day. Cant wait til tomorrow. Welcome back. One World Trade Center officially opens in new york with anchor tenant moving in today. The movie giant will occupy floors 20 to 44 with the first wave of 175 employees arriving at their new offices. Other groups of employees are scheduled to move in every subsequent week with the entire move completed by february. The Freedom Tower stands at 1,767 feet tall. A lot of november bringing snow to some parts of the country. The Weather Channel has the latest for us. Hi. Look at portland, maine. Things have improved as you are not seeing all the snow that you once saw, which is good news. You need a rebound. You have gotten double digits in the snowfall. This is the earliest we have seen that on record. Incredible stuff. Bad news is the winds have been pretty brutal. Look at the advisories in place. We have several of them because chilly temperatures and a frost advisory are in place for the nations capital. We have another freeze warning in place, so well continue to see that down to north carolina. But how about a little bit of good news . Temperatures do eventually rebound, but getting your morning kicked off in the northeast, you have some of the snow on the ground. In some places you have hundreds of thousands of Power Outages stretching from new york and maine at the peak there. And still tens of thousands of people in maine as we speak. Temperatures are too cold for that. You have got to get the warmup going because you dont have you need the power to help warm you up. Unfortunately, a lot of folks have backup of wood there. 36 degrees right now in boston for you. If youre in new york, 39 degrees for you currently but well factor in the winds that are going to be chilling you and making you feel it down in your bones getting out and about today. In the northwest, speak iing of the snow. Back to you guys. The carolinas had 100year records or alltime records for snow this early, right . Yeah, alltime records. Thank you. We appreciate it. I would say something, andrew, its not warm, its changed. So it just covers the whole thing, but i have learned my lesson. The constitution guarantees religious freedom. And i dont disparage anyones system. Its your prerogative. And modern warfare is making a big push to release early. In the movie industry, you can decide what to do with the stock based on what is coming. And if theres a threemonth period or a quarter where nothing happens, usually it goes down. This is how we need to decide what to do with the issues, right, eric . Modern warfare is the biggest release of the year, but it is their biggest game of the year. And we do like this company to buy. Stock has been weak of late and a Good Opportunity to take advantage there. This is just like an iphone or new gaming system, what is new about it . I would kind of put it in that context. Like we see with movie sequels. Its a developing new system. This is the first game specifically made for the next syst system. Im ignorant. Do you play online against people . The online element is a very big part of college duty. Its by far getting the most number of people playing online and that is the perk of the game. What does it do and how much did it introduce in the first week . Well, shipping usually runs around a billion dollars a year for call of duty. Ultimately the game sells in excess of 20 million units. 20 million units. How much will it be selling three months from now . Baptist, almost like a movie. The game still has accident legs, but your big one throughout the year is the game can do well for six to nine months. So there is there is additional con places to go. Starting in september and january, updates happen three to four months apart. Friends play with other friends. Do you know all about the gaming days . My best gaming days piqued 20 years ago. It is tough when you cant get beyond the first 10 to 15 minutes at my age. Did you play alien . Who makes alien and who plays it. I hear that its better than watching the first movie. Aliens, i have just came that out. How many are there . What is the total universe now and which ones do you like the best . Among the publicly traded publishers, theres activersion with a buy on, take two and lek tropic arts with a neutral on. The industry is really shrinking over the last couple of years because what you have done is the middle gains, the lowbudget games have gone by the waistside and its a go big or go home right now. We need big event games to attract huge audiences. If you dont have the money to pay for the budget like that, you have gone out of business for the acclaims and the british. Will you play that if youre going to come . Buy alien and play it for me. Because i hear aliens it returns you to the first original movie. All right, ill check it out. Thank you. Thanks. Investors seeing green and Many Companies calling ireland to the emerald aisle. Well have a debate going on. Also, our guest host this morning, youre not going to want to miss this. Check out the latest stocks right now. Tdd 18003452550 [ male announcer ] your love for trading never stops, tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so if you get a trade idea, schwab can help you take it on. Tdd 18003452550 were getting a lot of questions tdd 18003452550 about organic food stocks. Tdd 18003452550 [ male announcer ] sharpen your instincts tdd 18003452550 with indepth analysis by schwab experts. Tdd 18003452550 and if you want to run your idea tdd 18003452550 by a schwab trading specialist, tdd 18003452550 our expertise is just a tap away. 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In case you missed it, the steelers destroyed the ravens. 4323. Roethlisberger threw six touchdowns and now has 12 tds in two games. Thats kind of unbelievable. I dont know if i want to say the patriots destroyed the brop coast but they beat them, they spanked them. Who are you a fan of these days . I actually watch carson palmer. Im being talked into watching the cardinals and they looked really good yesterday in arizona. They beat dallas. I like dallas and the cardinals. I like the patriots. I do like the redskins. I watched the end of that game. Everybody but the bengals. R. T. Got sacked there. You like everybody but the bengals . Whats the other name of the team . Theyre gone. No, they are dead to me. I hope they win the super bowl. Theyre not going to. Dont worry. Making headlines, Small Business borrowing hitting the smallest level in seven years. According to a lending index from thompson reuters, this is correlated with gdp growth two to five months ahead. And Malaysia Airlines receiving the first lawsuit on the missing flight mh270. And apple is reportedly holding an investor call today ahead of the potential bond sale. A banker is working on the deal and the paper is considering issuing bonds in euros. That makes sense. I think the 100year issue is in order. Too bad they dont have cash on the balance sheet. Yeah. I dont know. Maybe they are going to be buying back more stock for uncle carl . I dont know. Now im hearing that im the lost leader. Two straight losses for the cowboys. The bandwagon jumping they dont want you as a fan, you bring the plague with you. Well check on the markets. As we told you, october was a pretty good month for stocks. You never would have guessed that a few weeks ago, but watching the comeback from octobers lows to the end of the month represented the biggest snapback within a single month since march 2009. That was to the dow and nasdaq. At this point, dow futures down by 27 points below fair value. S p 500 down two points. In european markets in early trading there, there are also declines of a third of a percentage point across the board. And if you watched what happened in asia overnight, this is what happened on thursday. Investors seeing green overseas. Forbes is naming ireland the best country for doing business and having the best year ever for foreign direct investment. Plus, a number of top two businesses making a home in ireland thanks to big tax breaks and a highly probusiness environment. Joe is here to tell us what hes seeing, Martin Shanahan is here from ireland. Let me just ask you this, were going negative before positive because theres been recent n s news we dont know what it is, but theres an announcement that they have to pay big taxes on stuff that they ran through ireland. This is the, quote, double irish loophole. Googles under the same issue. How is that going to affect direct investment to the country . I dont think its going to affect direct investment into the country. As youve already said, we have an extremely strong pipeline of some of the top tier names into ireland. Youre away we have made recent changes to the Tax Residency rules, which will prevent companies and future ones from being registered in the island. As youre aware, the eu has an investigation ongoing, but it is just that, an investigation. And both ireland and the company are happy and will stay here. But you are changing the policy . We are changing the policy. We have introduced a number of things in the recent budget. We have set up a road map and changed the residency rules and changed the number of profurther business. Some people are calling this a loophole, is it a loophole . No, a number of countries have the equivalent boxes. We have signaled to introduce a Knowledge Development box. We said it will be alined to best international practice, but it also will attract Lower Corporation tax. And we are unapologetic about completing a corporation tax. Every country the us that. There are a lot of other things that matter with countries coming into ireland. People say they are entrustedal ebt. They are interesting in the broad what do you think of the change that has undergone convergence deals . I think we have to see what the outcome will be in a change to regulations. I think it may give some companies pause to are they against you or no . I think the u. S. Treasury has to do what it feels it has to do. Not for me to really comment. I think that companyies make god decisions on where they can drive value. Do you think ireland has benefited from the u. S. Tax laws for separate corporations. We have not changed since 1986 but when we changed the laws in 1986 it put us on par with the rest of the world. Now we are now. I think countries protect on the future praises of a future tax in ireland. Having said that, you have lower personal tax. So i think each country has decided. We complete in tax and a lot of other things. I think theres probably a disproportionate focus on taxes and on ireland, in particular. This is about the real economy. Its about real jobs. Its about Real Companies making real products. Let me ask you one more tax question before we get to the which is this, i if a company has a new competitor, they have to be focused on the product and how to adjust ahead of time. Do you as the investor sit around to say, you know what . These guys over here may actually change their structure which could impact us or they will never get there. Not just on tax but on every part of the offering. Our objective and my objective is to be as larry as is there a company for them to look at and say, yeah, i think they have things figured out . Ibm global reported last week showing we were number one other than fdi, but there are a lot of countries are on heels. Our nearest neighbor and singapore, israel, all doing good stuff. Let me ask you about irelands economy. I know you recently raised the gdp expectations. I know the factors are really strong. So we are likely to pose the strongest gdp is down 11 from a high of 15 . Thats feeding true to the day to day. And companies are very happy with the environment in ireland and we are seeing a very strong flow. Did you surprise mcllroy when playing . Hes had a good year so far. Nip has just stopped to prepare for it. Only i think hes doing the right thing. I wouldnt second guess him. How does a string of this work, is this another tax . I think its what has the weaker euro meant in weeks of tourism . So, i think parts of the globalized economy, we look to whats happening here as much as we do to whats happening in europe. You have pounds anyway, dont you . We have euros, which. Has a less recovery. I would use the pound. We are very happy with it. What about scotland . I was using scottish pounds. Then you were starting or using sterling. But we use zero. Why would you do that . Why wouldnt we do that . Why in scotland . We are not. Arent you right next to we are elsewhere in the same island, isnt it . On the Northern Ireland they have started to sail along. Thats just cop fusing. It will draw people over with a weaker euro. I think of how extraordinarily strong north america is. Northern ireland is the pound. Northern ireland is the pound. Oh, my god, you guys have to get it together over there. I have to come over to hang out. I was in scotland. Thats right. I would encourage you to visit. We can show you berms, in particular. They want to go with them. I dont know. Thats confusing. Northern ireland should be the one not using the pound. Im not sure i follow your logic. I dont know. Okay. The good golfer is from Northern Ireland, right . Im on both sides. We have good slides for both. Thats probably one of the reasons we have such strong golfers. Use the euro, you should have never done that. Thank you. Up next, the storyline that could become a script for law order. A murder mystery involving a banker. And a quick check of whats happening in the european markets at this moment. Youll see red arrows across the board. [ hoof beats ] i wish. Please, please, please, please, please. [ male announcer ] the wish we wish above all. Is health. So we quit selling cigarettes in our cvs pharmacies. Expanded minuteclinic, for walkin medical care. And created programs that encourage people to take their medications regularly. Introducing cvs health. A new purpose. A new promise. To help all those wishes come true. Cvs health. Because health is everything. Cvs health. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. How couin jellyfish, protein impact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Welcome back to squawk box a british banker appearing in hong kong today to face murder charges. They found two women dead in rory jordans apartment. He was an employee of bank of America Merrill lynch. And one of the bodies with us found in a suitcase on the apartments balcony. There you do have a law order script. Coming up this morning, not that we need an excuse to have food on the set, but today is National Sandwich day. The ceo of jersey mikes will tell us how to take a bite out of the 30 billion industry. Squawk box will be right back. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. You know how fast you were going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. 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 . If you are a sub lover, then today is the day for you. It is National Sandwich day. The food category generates a lot of dough to the tune of 30 billion a year. One of the sandwich Companies Looking to take a bite out of those profits is jersey mikes. The ceo is with us this morning. Pet peter, thanks for being here. So youre peter. Whos mike . The original owner. Since you joined us just over two years ago. I think the last time you were on squawk box was august of 2012. Youve gone to 830 locations. And according to the nations restaurant news, you are the Fastest Growing chain out there. How are you sustaining that pace . Thats what they said. Yes, its we have a good crew across the country. When you only have 800something stores, the percentage is strong. So its easier to keep up. Im guessing franchises . Yes. And what are the difficulties youre facing right now . What are some of the things really playing into your favor . Things now, the economy is at a good state. The money is more available now an it has been in quite a while. I remember the recession of 91 when that was hard times for our company. Where the availability of capital was not there. But now its been the best in quite a few years. Meaning your franchisees are able to get loans. When we look at things like food costs, there has been a lot of inflation in. How does that affect you. Were good. Swre so many different varieties, it never really hits everything at once. So through the years we go against it but come up pretty well. I would guess you are pretty tightly connected with the jobs market. If people are going to work and getting lunch, your shops might be a place they wind up. Thats right. How would you gauge the American Economy in terms of lunchtime sales . Its very strong. Again, the available money to buy the product, were a little bit more expensive than most sandwich shops. Maybe on the level of chipotle where lunch is about 10. So people want the Higher Quality and now looking for that as much as the cheaper products. It smells really good. I cant imagine if you had a subway sub in here it would smell the same way. Whats the difference . Sub sandwiches, theyve got some 30,000 locations. We have 850. So we have a long way to go. So the numbers, you know, i would say thats the difference. I was going to ask about the health story. That is what we were talking about during the break. You were saying five guys you think of as a competitor. Theyre in the burger business. Mcdonalds has suffered because of the health issue out there. Chipotle is doing just fine i assume because theyre doing salads and other things. Maybe they say thats a huge calorie i dont know. Whats the thought . How do you think about it . Just the health with ours fresh made, fresh sliced. And red wine vinegar and olive oil. Same with chipotle. The chicken grilled. Its here to stay. The Health People you know, the health is what people want. How many calories on a sandwich like that . It depends what you get on it. So 500 or under. If i put lettuce and tomato on it . Yes. And oil and vinegar. Hold on. That sandwich is 500 calories. Its going to feed a lot of people. So you get a slice of that. You think of your competitors as chipotle and such. Weve seen some stumble recently. What do you think has happened there . Again, the people want the better quality product and are paying the money to get it. So you have not seen any of your sales suffer. No. Peter, thank you very much for coming in today. Thanks for bringing sandwiches too. It smells good. Great. Coming up, a man who needs no introduction. Jack welch joins us as our guest host. The economy, the markets, and tomorrows key midterm elections. No topic off the table when squawk box comes right back. t your money, your vote. The last hours of campaigning for the midterms with the senate up for grabs. Countdown to the november jobs report. The new month bringing another lightning round of data. And straight from the gut. Jack welch is todays guest host. The second hour of squawk box begins right now. Welcome back to squawk box here on cnbc, first in business worldwide. Im becky quick along with joe kernen and Andrew Ross Sorkin. Our guest today is jack welch. He is in the house. Great to see you. Great to be here. We have a lot to talk about with jack. Were going to get to that, but quickly well give you todays market agenda. The s p and dow coming off two weeks of gains. Check out the futures this morning. Youll see some red arrows. Ace this point still modest declines. S p futures off by three points and the nasdaq down by three points as well. It is a busy week for economic numbers leading up to the october jobs report. Weve got october u. S. Auto sales. Ford has seen a slight decline. General motors and toyota are expected to post increases. Lets tell you about mergers. Two billiondollar takeover deals. Publicist is buying sapient. Thats a 40 premium for sapient shareholders. And medical lab operator labcorp buying covance. 32 above fridays close for covance. By the way, it seemed to jump on friday. I wonder if people were getting word of that. Also investigators finding more clues as to why Virgin Galactic aircraft crashed. They say a key function that allows for a safe landing deployed too early. At this point pilot error cant be ruled out. The crash killed one pilot and badly injured another. Founder Richard Branson says hes grieving over the incident, but hes determined to move forward. Weve always known that commercial space travel is an incredibly hard project. Weve been undertaking a comprehensive Testing Program for many years and safety has always been our number one priority. This is the biggest test program ever carried out in commercial aviation history. Precisely to ensure that this never happens to the public. And were going to have more from jane wells reporting live from the crash this morning. Richard branson said he and his family were hoping to be on one of the first flights and thought it could happen in a year. You were going to go at some point. Little henry and max sorkin, they want to be spacemen. So they need to go. Weve got to get this thing up in the air. Got some time. With one day left until the midterms, lets get a check on the state of the economy and Foreign Policy and everything in between. Our guest host is jack welch chairman of the jack welch management institute. You were ceo at ge, im told. Yes, i was, several years ago. For how long . 20 years, 21 years. 21 years. Did well. We all did, didnt we . We all did well. Thats true. And then two books. Another one coming out in april. Coauthored with susie. Whats that about . The real life mba. And you love your mba program. Up to 800 students right now. Growing 40 a year. Love it. Love the whole concept. We dont have the typical tenure and all typical problems with education. Weve got aggressive students doing well. Couldnt be more exciting. We love it. What state are you a resident of now . Florida. Theres a shock. So youre not voting in the massachusetts election or the new york election. The new york, my vote wouldnt count. In massachusetts i might have some impact because i hope Charlie Baker can beat martha coakley. Heres the quote and i wonder whether you agree. Its that the gop heads into tuesdays balloting with a breeze but not a strong wind at its back. What do you think . It seems like things have started breaking i dont know any more than you all know. I love the joni ernst poll in iowa by the des moines register. But if the republicans dont win, we ought to get new pollsters. That would be a huge upset at this point if they dont take the senate. Ive seen 95 somewhere. But i think both that theyll take the senate. But i think both tthe huffingtn post and New York Times are at 75 . That means its at least 150 chances. I dont trust anything at this point. I was excited about romney and i missed by a mile. The get out and vote thing is so important. You know whats great i love mainstream media. I cant pick which one i like the best in terms of the networks. I love them all equally. The thing they keep telling me again and again and again and again is that people are just mad at both parties. They like to say that. They just want to throw everybody in congress. I never hear theyre mad at obamacare or obama policies. I never hear that. The whole idea of the republicans, as soon as this get the house and senate, well see who the blocker is. Well get a transparent view of policies. Do you like them, you dont. Well get a clear view of the playing field. Now we dont have it. Harry reid has stuffed every bill possible under the rug. Out saying on three of the sunday talk shows that republicans could very well be looking at Corporate Tax policy as one of the first top three initiatives that theyd be pushing. Is that a good thing . I think energy policy, tax policy which hopefully is not way out here. But something that the president can grab. I think we may be able to have the parties come together. Theres enough common interest here, the environment might be the toughest problem of all. Some people are postulating he may move. We see where he doesnt move and where he moves. When you say on the tax policy you hope its not way out here. What does way out here mean to you . Favoring too much the well to do. And i dont think it will. I dont think it will. But im more interested in whether or not we can slow the regulation train down and as epa and labor and so mccarthy and perez are probably the two people that are just to be clear, youd like to reverse a little bit. I think slowing it down would be very nice. I think that would be better because this guy if hes left to his own devices after this election, by the door as to what might happen on carbon, what might happen on a whole mess of things. But this election is about competence. It truly is about competence. And its a philosophy. And when you have liberals and ill call them liberals for the conversation, not progressives. When you have liberals running the government, youve got to tie with the public unions. And you have this issue going on all the time. Let me give you a classic example of why we dont have competence. Take new york city. The chancellor of the school system, she just appointed 15 superintendents. Seven from failing schools, five from disasters. 10 passing tests, et cetera. As superintendents. Okay . Now, when you have a philosophy of putting people in place without differentiation, you get incompeten incompetency. You couldnt run any company if you took 7 of your 15 appointments and made them flunkies, hacks. You cant do it. If that system of no differentiation he couldnt run ever corps if he took the seven worst Investment Bankers he could find and stuck them in there. You cant do it. You just cant do it. Roger has written you know, i go back and forth with him. Hes close. Hes close to joining the good guys. I bet you and roger see eye to eye. Yeah. And on taxes they could get there in ten seconds. Environment, maybe not. You know, i see both you dont see both sides. You cant see both sides on competence. No, i dont mean that. I mean getting something done. I think some people say its going to become clear to president obama that theres enough people you cant you know, it was his quote. Elections have consequences. Thats his famous quote. And he will see that in some respects this has to do with repudiation of some of the stuff he has said. To get things done. But you really see this competence issue come into play youre just calling all these guys incompetent . Im calling the system incompetent when you put leaders in there who dont have a differentiating approach. All youre talking about is theres no ameritocracy. It comes to roost when you have things like ebola, the irs. You dont normally have this pile of things altogether. It really highlights itself when we get these crises. And you see what happens. The va, cant fire anybody. Now they have a bill to fire people. I mean, it is you just have to differentiate in life. I tried to give the union because i and this isnt about other people either. Because i loved the unions, but i tried desperately to give them Stock Options. And they would say to me, jack, you cant pick who gets what. If we give everybody the same, you can give Stock Options. I said i dont want to give everybody the same. I want to differentiate. There are People Better than others in their performance. Not as human beings, in performance. They wouldnt allow me. We had thousands of ge workers miss out on that huge stock run we had because the Union Leaders and my friends philosophically believe everybody gets the same. You cant run an organization if everybody is the same. Right. And thats what theyre doing in government. Republican or democrat. Thats what theyre doing. So when these leaders come in and the leaders arent uniquely competent, you cant get the place to work. Big the irs, pick the dmv. Pick a place where you need to find someone to say this is whats happening beneath you, can you be accountable for whats happening here. Theres no one anywhere thats accountable. Theres no one minding the store. Thats why 90 cents of every dollar falls through the cracks. We know that. Take the new York City School system. We just had the perfect example. 15 superintendents picked. Its overwhelming. And then from failing schools. Five disaster schools. And we make them superintendents. Philosophically, you cant do it. You just cant do it. Andrew . Im not going to debate that. You need to talk to him. Im not debating that at all. I happen to agree with him on that point. I happen to, by the way, think that the mayor i was worried about taking office isnt as bad as he might be. I dont know if you consider that high or low praise, but nonetheless there we are. I had worries about certain issues. I actually think that most democrats and republicans in new york city were probably more worried going into it than they have thus far with how well hes done on a relative basis. We had a skirmish this weekend when one resigned. All right. Thats everywhere in the papers today. All right, well have more jack welch on the program. When we come back, a fresh week for the markets. And were looking forward to friday because we have a big number coming up. Is there anything investors should focus on as november kicks off . Job numbers on friday. See what happened at the end of the week. Another 200point gain for the dow. Also walking the tightrope. Were going to check out Nik Wallendas walk in the windy city. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. 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In our headlines this morning, argentina is suspending Procter Gamble in the country. Accusing the company of billing over 138 million in imports to get money out of the country. And nik wallenda completing chicagos skyscraper walk. The daredevil feat giving wallenda two records. Did you watch this . Yeah. Was this unbelievable . My heart was pounding the whole time. I wouldnt even watch. One for performing the worlds highest walk wearing a blindfold. The other for the steepest incline. I couldnt believe what was happeni happening. Hes talking the whole time hes walking. But the high wire wasnt broadcast live. There was no net. He claimed he could grab the thing. I was worried. He was so calm. Kissing up to the big boss while youre on, that takes giving a shoutout. That is really calm. Yeah. Im going to see him wednesday night. His made may be this big, he may not get through the door. Jack, how much would you pay nik wallenda . What do you think he gets for Something Like that . I have no idea what he gets for that. Thats a great question. I have no idea. Its a twohour primetime thing. Depends on how much they make. Doesnt do well in repeats because you the he already made it. Dont you think he should get half . What if you went up to discovery and took a shot of the tightrope and for two hours just for two hours showed the tightrope. You need someone to walk across it. Hes a big part of what is that . I dont know. What do you think the economics of those two hours are . I really dont i havent thought about it. Weve got to figure it out. If i had a little lets ask him. He watches this show all the time. Call in. Wed love to know. We were all mesmerized. I might have watched it on a little black and white tv maybe. But on a high def, no way. I was too afraid. I was too afraid. It was scary looking. Maybe on a little black and white tv. He was up against 60 minutes in a Football Game and i bet he knocked them out of the park. Well see. They dragged it out, though, too. They should. They should, i know. All right. Lets check out todays Market Action with just two hours before the opening bell. Contributor jim iurio joining us now. Jim, we saw a phenomenal set of action over the last several weeks rebounding from those lows and then some. What do you expect from the first week of november . No doubt about it. Two weeks almost 11 , the story has to be last week where we nudge towards hawkish. So the story is Dollar Strength particularly against the yen and euro. Yes it could be bad for some big multinational exporters. But this has been telegraphed for careers. Its a big week. We have pmi today. We have an election today thats a reference on business friendly or not business friendly. But as you said earlier, the biggest jewel is what was done on friday. If it can consolidate here for a second and then head higher, im all for it. After a move like this, there might be a tendency to whip lower. Is it fair to say the market at this point wants only good news. No more of this hoping theres a little bit of good, little bit of bad in there. I believe what you are saying is true. I think they want good news. I think theyre conditioned for that particularly out of the labor market. I think what could really hurt this rally is that we know that things arent that great in europe. So far theres been no real contagion. Our numbers are still getting better. If we feel that starts to pull us down, that could be a problem. And the market, we have to start losing confidence in central bank. And japan, i heard someone say theyre all in friday. Like the last hundred times. If at first it doesnt succeed, keep trying. Its idiotic and will not work. All it does is transfer money into my stock account. Jim, thank you. Thank you. Were going to go to break but im still thinking about the competency thing. Are you surprised we have to relearn every 20 years that the private sector is where you get accountability . I mean, adam smith, wasnt that 1776 . Yeah. But i think it was highlighted with all the crises that came up this time. I think this changed the game when you had the irs, the va. The isis. Exactly. When we ignored them as a jv organization. Did you read this week in the New York Times magazine story of that guy who was a prisoner for two years. Was a freelance journalist. I mean, these people want to kill you. They do. Its not a jv. No, it certainly isnt. Anyway, well take a break. Well revisit a lot of this with jack. Coming up, the battle of the sexes. Women versus men when it comes to making business investments. Find out which side is winning next. Tread carefully on that one. And check out the price of crude. Squawk box will be back in a moment. receptionist gunderman group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. You want to achieve Financial Success . A new Study Suggests that you should invest like a girl. Or like a woman. The female gender is said to benefit from being more patient and trading less often. Research by vanguard finds that during the financial crisis, men were 10 more likely than women to sell stocks at market lows. And that turned out to be a mistake. When we return, what happens after the midterms . Will congress and president obama be able to Work Together once all the mud slinging is done . Rob jirald is going to join us. Take a look at equity futures at this hour. Red arrows across the board. Nasdaq off about five points. S p 500 off about four points. 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Ask your doctor about cialis for daily use so i can reach ally bank 24 7, but there are24 7branches . Its just im a little reluctant to try new things. Whats wrong with trying new things . Feel that in your muscles . Yeah. I do. Try a new way to bank, where no branches equals great rates. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. Welcome back to squawk box here on cnbc. Lets get you morning headlines. Apple planning an investor call today. Potential bond set. Working on the deal. The company considering issues bonds in euros. Trying to figure what thats about. Also gaining revenues many macau. Looking for a decline of about 20 year on year. Among the reasons, fewer tourists, slowing Economic Growth, and china fighting corruption. Also we should tell you about the high at the box office over halloween weekend. I dont know what you guys were watching over the weekend. Im never going to get the pronunciation of this. You dont know what a ouija board is . I do. But thats how you spell ouija . Universals horror ouija universal has got like six syllabl syllables. Ticket sales matched by night crawler. Thats about the news business. And he lost a lot of weight for that. Looks really weird. They dont really tell you what its about. Hes just a guy that wants to get really scary stuff on hes a cameraman for a news organization. And hes trying to get the best inside stuff. And the question is how hes getting that stuff. Whether hes setting it up. Do you remember network . Their camera crew is kind of in line with the terrorist attacks. And a bout of bad weather. Climate change weather hitting the east coast over the weekend. Check out the snowfall. 21 inches falling in parts of maine. Power outages still a problem in new england. Unprecedented early snow in parts of South Carolina on the first day of november. And charleston saw its earliest snow on record. But records not that old. 100 years or something. Republicans and democrats struggling for control of the senate and tomorrows elections are to be the most expensive in history. Here to talk about whats at state roger altman. He joins us now with more from new york. Good morning to you, roger. Morning, everybody. Do you want to just go at it right now . Is that what upd toot jack . First of all, i want to say i would just like to say its a pleasure to be on with jack. I admire jack. Im here in our mutual hometown of boston. So im happy to be here with you. I thought you were going to have an announcement. Are you coming out as republican . You are close. We have talked through email. Youre close, arent you . Are you going to you have an announcement for us . Well, look. Lets just hope that if, indeed, it is a republican night tomorrow night and it looks that way, even though there are a couple of races that involve runoffs and we may not know official officially until later, if it is a republican night that the next two years are different than the last two and that theres actually some bipartisan progrowth agreements. I dont think president obama should want two more years like the last two. And on the other hand the republicans will need an agenda. Nothing or obstruction wont be good enough if thats really what they do. Because we dont know what that agenda will be. Theyve been careful not to put one forward. But if there isnt but if there isnt one, everything will go the other way in 2017. Let me ask you a question. When jack sat down at the beginning of the top of the 7 00, he made the argument that if is the republicans win as we suspect they will, that this argument about obstruction and being obstinant we will learn it was not the republicans who with obstinate and obstructionist. Do you believe that . I think theres plenty of blame on both sides. I dont think you can say its all the democrats, no. I think, for example, the house of representatives has been a paragon of ineffectiveness the last couple years. And one of the questions im interested in is if, indeed, the republicans take the senate. Whether the Republican House on the one hand and the Republican Senate on the other can Reach Agreement between themselves on issues, for example, like a budget, like immigration, like infrastructure, like energy exports. Those are four progrowth areas of possible bipartisan agreement. Did you really just single out the house in the two houses of congress, the house you dont think the senate has been a paragon of doing things . I mean, you can really single the house out as worse than the senate for the past two years honestly with a straight face . I think so. But my point really is we need two types of agreement here. One is that the white house and the Republican Leadership can agree on some of these bipartisan progrowth measures. I hope they can. And the second is whether and it wont be as easy as you may think whether the Republican Senate and the Republican House themselves can agree, for example, on a budget. Im not sure thats going to be so simple. Its just i keep hearing that the republicans have no agenda and theyre obstruction. But obstructing the obama agenda is what those guys were elected to do in 2010. Thats why it was such a wave in 2010. So that doesnt mean theres no agenda. They had plenty of agenda. They had an agenda on terms of whats that . 300 bills. And in the senate as well. Harry reid hasnt introduced a single bill. There hasnt been one thing thats come up for a vote. Lets not worry about the past. Because theres plenty of blame. I cant let you do revisionist history and then say dont worry about it. Look, im perfectly happy to say that the democrats are equally guilty in terms of all this dysfunction. Im just saying we dont know what the Republican Congressional agenda will be if, indeed, they control both houses as i think they will. And it will be important to see what that is. And, in fact, there is a constructive agenda. That is the point. We will get transparency. If in fact this happens, we will get transparency. We will be able to see well be able to answer this argument you and joe are having. Because well see what the Republican Congress puts in front of the president if they can put something in front of him. And well see whether we get a veto or Movement Forward on the economy, on energy, on all these things. We know we need to get progrowth employment policies. Well, itll be very unfortunately, i want to agree with joe on this. It will be unfortunate if all we see are vee es to. We saw under president reagan and clinton that the last two years of an eightyear presidency can be productive if there is bipartisanship. And so its in the interest of the Obama Administration to want to see some of these progrowth, bipartisan graem agreements. If its just vetoes, that would be unfortunate. It could be executive action. Theres very little, though, that you can do on executive action. I know theres a great deal of talk about it in the administration. In your heart of hearts and youre on tv right now and youre a democrat so i dont know what you can really say, but do you expect the president to be more conciliatory or do you expect him to just dig in his heels . I dont know, joe. Including that im sure there are still hopes on the democratic side that tomorrow will turn out differently and the republicans wont end up controlling the senate. Hope springs eternal. I dont know. I dont know if the white house knows. I think it will depend on the scale of the election result. And i think it will depend on what the Republican Congress if indeed there is one puts forward for the president to deal with. But i just hope its a productive or even semiproductive next two years. Because reagan and clinton showed that can be possible. And i dont think its in the administrations interest to just have two years of vetoes. If you are looking at something where you dont see some sort of compromise, who does that benefit in 2016 . Theres a lot of irony in this, becky. Some think if we have two more years of straight dysfunction, the public will be so unhappy again and by the way we have a very unhappa happy electorate t that it will flip in 2016. Keep in mind that more republicans will be up in the senate, more republican seats will be up in the senate in two years an democratic seats. That the senate will flip. That the democrats will retain the white house and that actually two more years of dysfunction will produce another throw the bums out mentality which will at that time favor the democrats. Some people think that. If i were in the hows or the senate or in some sort of position in the administration, id want to see some productivity, some positive results. Because i wouldnt want to take the risk of an even more unhappy electorate. Before you go, you saw Hillary Clintons comments a week ago that says i love watching Elizabeth Warren giving it to those who deserve it. I assume those are people on finance, wall street, you. She stood up to the National Banks and tried to trick and trap own streets. And later said the corporations dont create jobs. She then sort of rolled that back. What do you make of that . I dont make very much of it. I have a lot of confidence in secretary clinton. And have had the prif ledge of working with her in the past. And i think shes a very practical, very experienced and generally speaking a centrist political leader. I saw those comments like everybody else did. I saw her expanded version of them a couple days later. And i have a lot of confidence in her. Just, you know, but theres only really two ways to look at it, roger. Number one, its complete lunacy to say it. And two, its just saying what needs to be said to the audience youre speaking to. And both of those she was in boston. I know. She was with Elizabeth Warren. Its politics in the primary. I mean and we shouldnt expect anybody to be above politics, youre right. Because theyre politicians. You cant these comments are part of the political process. This ones going to ring those words are going to be in bold print for 2016. Im with roger in terms of that. Roger, weve got to leave it there. Thank you, sir. Thanks a lot. The other thing we hear is that its just people dont like congress. People dont like washington. I think theres some repudiation of the president s policies here too. Thats why in two years i dont know if we really change. I mean, joe, youre right. It may not flip back. It may be progressive policies dont worry. Were reaping the benefits of a lot of the things hes been able to do and it hasnt worked out and we may need to reject him again like in 1980. That may be. Im not going to disagree with you that if tomorrow is a republican night that theres im not going to disagree that theres some repudiation of the past two years and the president inherent in that result. I mean, thats absolutely clear if thats the way it comes out. Okay. Thank you. Okay. Youre close, roger. As you say, hope springs eternal. There will be a time you come on here and say joe youre right. Youre never too old to learn. I agree with jack almost all the time. Okay, good. Thanks, roger. Nice to see you. Ill see you later. When we come back this morning, we will have more from our guest host jack welch. Plus automakers set to rofrt sales. And well go under the hood of chrysler, gm, and toyota after this. And the dow futures are down by 40 points. Well talk Market Expectations in just a bit. In this accident. Because there was no accident. Volvos most advanced accident avoidance systems ever. The future of safety, from the company that has always brought you the future of safety. Give the gift of volvo this season and well give you your first months payment on us. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Just want to say, i bundled home and auto with state farm, saved 760 bucks. Love this guy. So sorry. 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Were just saying it loudly for some reason. Now get 30 gigs of data to share with family or your business. For a limited time, starting at 160 dollars a month. In auto news, consumers are feeling less pain at the pump. You know this if youve been filling up your gas tank. But now selling regular unleaded for less than 3. Total of 35 states are now saying the cheapest prices this year. Oil price informations head sees the nationwide average hitting a bottom of 2. 90 a gallon. They are releasing Monthly Sales today. And phil lebeau joins us with what to expect from those numbers. Weve already gotten the first numbers of the day. Nissan reporting an increase of 13 last month. Peeking of expectations, when you look at october sales, most believe that the sales rate not actual sales but the rate is going to come in between 16. 3 million and 16. 4 million. A very solid month. The transaction prices expected to be up less than 1 . Theyre still seeing growth there. And incentives saw moderate growth, not a big spike and thats what you want to see at this time of year. And one area that a lot of people are going to be focusing on today. What sales strength will we be seeing when it comes to large suvs. Weve seen considerably large interest in suvs. Year to date sales for large suvs up 17. 2 . And theyre being helped by these lower gas prices especially with gas averaging under 3 a gallon nationwide. Keep in mind ford announcing it will be showing a new explorer at the l. A. Auto show. The first numbers will be coming out probably chrysler within the next half hour. 16. 3 million 16. 4 million thats a solid month. Again, not spectacular, but solid. Back to you. Thanks, phil. Do you remember we got welch here. Do you remember the last time you, like, paid for gas with a car or pumped it or even gave a credit card to someone to pay for a tank of gas . Was it do you remember . Do you have any recollection . Yes, in nantucket this summer. You did it with your with my own car. I was driving. I pulled up and got the receipt. I thought it would be the last commercial airlines flight, when was that . That was 1968. Hold on. This is a car or a golf cart . Thank you, andrew. It was my jeep. The inflight movie on that commercial the last one you were on was sound of music, right . And it had just come out. Why am i getting picked on . The dow rising 2 for the month. Seeing if that trend can continue in november. And ron johnson talks the economy, ebola, and the middle east. But before we head to break, a nascar brawl at texas motor speedway. Jeff gordon trying to have some words with brad keselowski. Look at the left of the screen. Thats Kevin Harvick instigating it. Now its on. Gordon came away with a bloody lip. Keselowski had a cut over his eye. Not the first time that keselowski has gotten into trouble. He was fined 50,000 just three weeks ago for a fight at charlotte motor speedway. Squawk box coming back in just a moment. Hopefully no black eyes for us. Tigers, both of you. Tigers . Dont be modest. I see how youve been investing. Setting long term goals. Diversifying. Dip you got our attention. We did . Of course. Youre type e well, i have been researching retirement strategies. Well thats what type e s do. Welcome home. Taking control of your retirement . E trade gives you the tools and resources to get it right. Are you type e . Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. Welcome back, everybody. Lets get a check on the state of the economy with our guest host jack welch. The we havent had a take on the economy at this point. You have a very good idea about whats happening. What do you think . More of the same. Poised to do better. I mean, theres no question that we are seeing an uptick in orders. Still not booming. But somewhere in the 2. 5 to 3. 5 range. If we can get a right election this time and get some regulation fear off the table, i think we can get an energy policy. Get some movement on taxes. Some discussion. I think theres a real chance to get to that 4 economy that. I think its been a couple of years since you said you thought energy was really going to be the thing that drove us out of the recession this time around. I think jobs have been there. Theyve been created. Theres a story on the front of the wall street journal today that says big oil is now in position where they think they need to shrink. But the question is theyre drilling less. Theyre exploring less because its a lot more expensive to drill oil out of the ground than it was just ten years ago. I know youre not an export fan. And theres a huge opportunity for exports if we get the right policies to support that. We could go on public lands and do more drilling. We could the opportunities are enormous for this country and its technology to drive a whole renaissance the next step. Do you think we can come back like we did before . You think thats possible . Yeah. Really . Absolutely. There is a point of no return. I dont know when we get there. Why . Because carter had four years and they could only do so much then. Then came back and you saw the 80s. Andrew, is it morning in america . Is the American Dream alive . Ive always said theres two American Dreams. One of them is very much alive. The idea anyone can start from nothing and get to somewhere is still very much alive. Whats not alive . Whats not alive and i still think its an aberration in history is this sort of paint by numbers leave it to beaver American Dream which was if you just went to school, you got a you know, you got a skrob, a house, a kid. Thats sort of the 1950s type of dream. The whole country has people going to work every day, still going to Football Games. You know but you dont see that. When you get the labor report and the participation is awful, you say its not so. I think it is difficult at this point to i mean, we have to explain where the income disparity is . There is a mourning in america. We get a president with a positive view of the country who loves the country, who talks about what a great place it is, who has a Strong Defense policy, who has a strong military, who has a strong economic program, well have an america. Look, we you forget, youre too young, whatever. You forget how ugly it was with jimmy carter. How impossible it was. He was talking about malaise. This current president doesnt think america is exceptional. It is exceptional. It allows growth for everybody as you point out. It does allow us to come from nothing to something. And we got to get everybody feeling that again. You get the right policies, you get the right president , and youll see it happen. And then a rising tide will carry all boats. This is the greatest game in town, the greatest country in the world. Weve got to talk about it that way. Not all the problems, issues. How do you handle inequality . You get rid of inequality not by handouts and dependency but by growing jobs. Giving more jobs. Thats how you get rid of dependency. You will not fix inequality by handing people a handout thats already poverty. Stop it. You wont do it. But we can have the greatest game in the world. Just you have no idea what it felt like in 78 and 79. It was ugly. Right. Never thought wed get back again. Now were talking about and hes talking about a house on a hill and these wonderful things. All of a sudden it unleashed it and it happened. Shining city. Yep. All right. Thank you, jack welch. We should replay that. I think we should make a commercial like that. I do. Okay. We got more from jack and mourning in america when we come back. Dad,thank you mom for said this oftprotecting my future. You. Thank you for being my hero and my dad. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance could be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Welcome back to squawk box here on cnbc, first in business worldwide. Im becky quick along with Andrew Ross Sorkin and joe kernen. He did it again. High wire artist nik wallenda defied death not once but twice walking between two skyscrapers in chicago wasnt enough. After the First Successful run, he walked back across the river on the ground for a second attempt starting at the same skyscraper and ending at a different one. Its hard to watch it now. I dont like heights. And to mix things up, he was blindfolded. No net, no harness, and no fear either. Afterwards he said he felt incredible and that his only concern during the stunt were strong winds. Ill say. You know, the wind was definitely on that first walk the reason why i didnt take my time. I was ready to take a selfie. I had every intention. Im bummed i didnt. But strong winds hit me in the face. I tried to lean in as im walking uphill. And it stood me up straight. Yeah. Thatll get your attention. Strong winds when standing on a 3 4 inch how was he going to stop and take the selfie . What happens if the winds blowing, youre leaning into it, and it stops for a second and youre leaning . Apparently his mother was unhappy that he wasnt going to go down on a knee in the middle of it to make it more interesting. I avoided this and here i am. Im not looking. Its unbelievable. Discovery hosted this event airing it on a ten second delay. The ratings for that has to be we will see. Labcorp buying covance for 5. 6 million. And also publicis is buying sapient for 3. 7 billion. This coming after the failed omnicom merger earlier this year. Well see whether this impacts other companies. The other big question this morning, are investors ready to kick off another bull run . November historically the secondbest performing month with an average return of just over 2 . Dominic chu joins us on whether there will be thanks this month. What it come douns to, is those investors who like to play by numbers, they look over the longterm. They specialize in crunching these custom numbers and they looked over the past 20 years at the month of november specifically and every other month to see what the president return is over that span of 20 years. You can see here in november like you said, 2 on average return. Thats second place only to the month of april which has nearly a 3 return. This is over the last 20 years. This is the number they came up with. In terms of batting average its positive, 60 of the time november is positive. Not only is it up 2 on average, but its positive 65 of the time. Thats a big deal. Now, if you look at where the bestperforming sectors are, since october 15th since those lows, they have put money in the industrials are up 10 and health cares up 11 . As we look towards november and the second part of the santa clause rally, november into december, right now tech industrials and health care are where investors are putting money just in case the bull run continues. Back over to you guys. Thank you. We do have some breaking news right now. Chrysler sales just crossing the wires. Lets get to phil lebeau with more. Chrysler coming in with a gain of 22 last month. October sales up 22 for chrysler. That is in line with the edmonds. Com estimate. Havent gotten the exact number for jeep. But thats been the engine driving chrysler. Again, chrysler up 22 for the month of october. Back to you. Thank you. Lets pick up where we left off with dom. Wondering what were doing with is the pace. Are we on pace to see a bull run into 2015 . Joining us now is deutsche banks chief executive str strategi strategizer. Good morning. Good morning. What do you think . That was a wild right. Are we done at this point or is there more ahead . October is certainly inspiring and confidence building. Were going into strong months for the s p 500. But dont take too much assurance from that. While its true the market usually climbs in november and december, that doesnt always happen. There are plenty of years outside of recessions as well. 1994, 86, 87, 88. What we need to stay focused on is the profit outlook for next year. I think the u. S. Economy is doing very well, but we have our concerns about china. Europes inability to get traction on growth. And were watching this dynamic with currencies and Commodity Prices because a strong dollar, Weak Oil Prices, its a challenge for the industrial sector. So i am overweight health care, overweight technology. Thats 35 of the s p. I see a good 15 upside at those two sectors. But it pains me, its a seconder i usually love, industrials im underweight. When japan does a qe shock and awe and we go up 250 points on the open because of that, is that okay . The knee jerk reaction to qe has become a positive even in japan . Right. Even in japan where it has yet to show any benefits. But the point is weve seen the yen weaken. But that making our dollars stronger which is one of the problems were talking about. Its a challenge for u. S. Exporters and Commodity Prices. If you look at the gdp data and nonresidential construction, its still very weak. The only thing thats keeping it decent is energy cap x. Oil production. Thats whats keeping nonconstruction high single digits. The strong dollar, you think thats the biggest reason were seeing such Weak Oil Prices . A demand picture . Its mostly u. S. Supply. Saudi arabia saying theyre not going to be the only ones to defend the price. Its mostly supply, a little bit of dmantd growth with the currency over the major region supply. Jack, how surprised have you been to see oil prices at 80 . How does that change the dynamics . Europe has gone in the tank. I mean, lets face it. Were talking about we argue about. 3,. 4. Europe is going nowhere. Back to our argument on policies again. Were 50 of europes gd is spent in government. Were at 38 . Were already gone from 30 to 38 . But europes at 50 . If all that money is being sucked out of the economy to feed the government, youre just going to have slow growth. You got no fundamental support. Thats why i want to ask you if its reversible. Were at 38 and we did well at 30. And we can fight our way back. With the right leadership we can fight our way back. We do have an important election and usually the market does well after midterm elections. I would say we dont have the big selloff. But i want to see. Theres things were looking for. Theres things like that. And at least have more facility and moving it around the country. Keep going, keep going. And maybe just put the financial blame game behind us for good. If you were one of our investors give it more time. Taking away your time. Thats right. If you were one of those investors who has been waiting and waiting for a 10 pullback we got it. No. That counted. 9. 9. Thats it. Im writing it down. Did you miss it . Is it gone . I dont believe we did not have a correction. Oh so theres certainly parts of the market did, but not the overall market. Im not a slave to the correction clock. I did not expect a correction. We did not have one. I dont expect a correction. I would say next year waef watch this dynamic of global growth, investment spending, what it means for profits up against what is clearly a tightening u. S. Labor market in part because the demographics. And that kind of creates the possibility of fed hiking with profits being very anemic in terms of growth. That could be a challenge. That could cause a correction. But i dont see it yet. Thank you for coming in. Jack, of course, is our guest host. Hes going to be with us for the rest of the program. When we come back, Virgin Galactic Space Program suffering after the deadly crash in the desert. And check this out. Passengers aboard the bahamas celebration cruise line returned saturday night nearly a day later than scheduled after the ship hit an object in the water. No one was injured. The bahamas celebration website says there will be no cruises for the next two weeks. The port of palm beach hoping they will be able to find a replacement ship. I wonder what that was. Tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so when a market move affects one of your positions, tdd 18003452550 schwab can help you decide what to do. 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Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Welcome back to squawk box, everyone. Lets take a quick look at the futures this morning. Theyve been under water all morning long. Dow futures down 36. 5 points. S p off by 3. The nasdaq off by 2 points. Were going to get back to our guest host jack welch. We havent talked about a couple things in corporate america. One is activism. But i want to start with buybacks. You guys did buybacks when you were at ge. Yes. We talked about ibm a lot in the last few weeks because of their buybacks. How are we supposed to think about that . Its a perennial issue, but back at the forefront . Our buybacks were aimed at not having more dilution. So we were trying to balance Stock Options with the buybacks. We had 10 billion shares out there. So the idea of buying it back to solve our problem was not to solve an eps issue. When you look at ibm, what do you think of the issues theyre facing now . Im not sure i understand what is stopping their growth right now. What took them off the track. Forget eps. Because sam had taken that thing through a very tough period and came out all right. She inherited that hand and the question would be what she does with it. I thought by the way, i tweeted that. Her performance on cnbc the other morning was a ten. She was straightforward. She was to the point. And she was clear as could be. So im a fan of hers. Lets give her some time to get this track thing going. Wouldnt be easy. Its a tough job. Shes in that brutal, big behemoth fastmoving technology sector. I mean, big, brutal behemoth and fastmoving dont quite go together. Now, ge can be a big behemoth because its not in engines, health care. Thats not fastmove pg. Right. It still has 10 billion shares outstanding. I know it. So you bought some back. But then it was we were trying to break even. Thats all we were trying to do. Thats all i was saying. We were trying to break even. Because we wanted to give stock to the employees. We had 65,000 people getting stock. Heres what i would say. We keep having the argument about buybacks. There are times it makes sense and times it doesnt. When a ceo says i buy it back, you know, when i think the stock is cheap, that doesnt do it for me. A lot of ceos, you see insider selling. You dont even know whether a ceo always thinks his stock is what kind of ceo thinks maybe tesla and when youre at 400 times earnings. But in general as a ceo, youre trying to do the right things for the company. You would always think its cheap. Buybacks are not for ge, let me ask you this. Ge has redeployed a lot of its cash with acquisitions. Do you think ge would have been better served by buying back more stock . You talk about other companies. I am not going there. I retired 14 years ago. Stop it. Lets get to the idea of whether you borrow money to do the buybacks or whether you have a business that kicks off a lot of cash. Does it matter . Thats worked well for home depot, for example. Its worked very well for them. They manage a nice portfolio of businesses. They have judiciously borrowed to buy back. It can be right. But not when youre borrowing and the revenue is going down. If you look at big multinational giants, they have struggled or at least not done as well as those that have been, frankly, here. So look at a cocacola. You look at a mcdonalds. Ibm to some extent. You could argue ge to some degree. Is there a way to fix that . Is that just the way its going to how are we supposed to think about this over the next couple of years . Companies have to think one word. Agility. Movement. Faster cycles. They got to bring products out faster. They got to have a much quicker pace. They cant be bureaucracies. Theyve got to fight bureaucracy relentlessly. What do you think of those Companies Like cocacola or mcdonalds . I dont know enough about them. Theyre big. Theyve got a tough road. People are coming in whether it be panera or the next guy and the next guy with a new formulation. So theyve got to be faster. They havent had enough introduction. When they brought out breakfast. They changed the game. Have you got a new product from mcdonalds to talk about . I cant think of one. Thats the problem. They were a huge hit with breakfast. Coffee too. We didnt even get a touch on activism. Well tease it. Well come back. I like activism when you got a horses ass for a ceo not doing the job. I love activism. And i hate it when youve got to good company and a guy bashing it to try to make a buck on the side. Were going to come back with jack. Hes going to differentiate when the ceo is a horses ass or brilliant. Which is hard to figure out in certain cases. Thank you. Up next, though, space flight suffers a setback after a Virgin Galactic space test flight goes awry. Then a big day for the big apple. The Freedom Tower is ready to open today. We have the details just ahead. Check out the futures right now. Still under water at this point. Dow futures down by 31. 5 points. Squawk box will be right back. 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. Sometimes they just drop in. Always obvious. 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. That investigation into the cause of Virgin Galactics experimental spaceship continues. Ntsb officials still trying to figure out what caused the spacecraft to break apart in flight over the mojave desert. Jane wells joins us with more. Whats the latest . It now appears the braking system deployed early. Theyre calling that a statement of fact, not a statement of cause at least not yet. A feathers device meant to stop the descent back to earth was unlocked early by the ko pilot. Then a second step happened seemingly on its own where the rudders pull up. Shortly after that the craft broke apart. What does not appear to be any part of the cause is the new fuel being used. The fuel tanks were found intact. Richard branson spoke on the today show. His reaction to the news that the early deployment of this feathering system may have been involved. If that ends up to be the case, that is something which is easy to fix. We can be certain to not have it be done again many the future. It is a grand program which has had a horrible setback. I dont think anybody watching this program would want us to abandon it at this stage. Well, the accident killed 39yearold test pilot michael als zb alsbury. Virgin galactic said it has continued to work on a second spacecraft which is 2 3 of the way through. But ten years and a half billion dollars have been spent trying to get it off the ground. Mostly from the company itself but also from an Investment Fund in abu dhabi. A taxpayer funded facility where Virgin Galactic hopes to send its paying customers. One local politician they have yet to see any return on their investment there in new mexico. All right. We appreciate it. Thank you. Usually we can banter and kid around. This is a serious story. Thanks. Got to see jane a couple of times last week in the studio. When we return, midterms and the market. Senator ron johnson on the possibility of republicans winning the senate. Whether washingtons economic divide, resolved. From tax inversion to immigration reform. Talk about the issues that matter. Equity futures are still indicated down a little bit. 35 points. Heres a look at european markets at this hour. Squawk box will be right back. vo watching. Waiting. For that moment, where right place meets right time. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. Welcome back to squawk box, everyone. This is cnbc. Lets get to your morning headlines. Chrysler saw october u. S. Sales jump 22 matching estimates. Sales of its jeep brand surged by 52 . Argentina has suspended Procter Gambles in that company. And a tie at the weekend box office. You had night crawlers and ouija. And it is official. One World Trade Center opens today. Youre looking a at live shot. Conde nast are moving first into the building into the 1776foot skyscraper. They will have offices. The Freedom Tower is the tallest building in the western hemisphere. Cost 3. 9 billion to build. Three times what they estimate snd right . I dont think that needle counts. It does officially. Theres a ruling on it. 1776. Kuala lumpur took it far long time. We are less than a day away see. 1776, man. That was an important time thats when adam smith wrote that book. Yes. Anyway, we are less than a day away from the midterm elections and washingtons balance of power is up for grabs. Joining us now from wisconsin, republican senator ron johnson who i dont know, we got to get this guy out of his shell. Have you seen him before . He never says what he means. Senator, good morning. Tell us what morning kwb guys. Tell us what youre expecting. The wall street journal i read this to jack earlier today. That was theres a breeze behind republicans back. Not a strong wind. Is that how you see it . Well, if i were a betting man, i bet on the fact they pick up a majority. Weve got three seats in West Virginia and south dakota that are looking pretty good. And then weve got nine other competitive races. Two of those are republican seats, hold onto those. We only need three additional pickups. The point i want to make is i think america would be pleasantly surprised if republicans get the majority that theyre going to find out were not the party of no. Were going to be looking for areas of agreement. On those issues that jack was talking about. How do you keep Energy Prices low, some regulatory reform. How do you taxes more competitive. I think americans would be pleasantly surprised when we get that majority. I would like to get your thoughts on what jack has to say. We were talking about hillary earlier, and i think she is at least i know shes running. I dont know whether she gets the nomination. You think we should run a jeb bush or a Chris Christie or do you think weve tried that and we need a ted cruz or a rand paul . Youre putting words in my mouth. Im wondering what you think. I think we have to give a hard look to a rand paul and to ted cruz. I saw ted cruz on your show the other morning. I thought he was fabulous. Ive watched him over the last year. He hasnt done anything wrong in my view. Look, we have had middle of the roadtype candidates. Candidates that democrats say its okay to like them. John mccain, mitt romney who would have been a great president if he could have gotten elected. But the idea of us going to the middle so that we appease new new yorkers, i was on a show on saturday and i said weve got to look at ted cruz hard. But Ronald Reagan was attacked for the same things ted cruz is being attacked on. He would be following obama. I like hillary. I think shes a valid candidate. The clintons are capable people. But i would love to see the republicans. I mean, i was at a black tie party on saturday i can imagine the response you got. I got a, jack, whats going on with you. You used to be sensible. You used to be a sensible republican. Screw new york. Youre going to lose new york. Forget it. Go to the country. This wonderful country and present your ideas with an optimistic view of a guy like cruz, a paul. Somebody over there thats clear in their views. Not somebody whos trying to appease democrats. Steve rattner tweeted me the other day, jack once used to be a sensible republican. Whats wrong with him. He mentioned ted cruzs name. Hes gone around the bend. Whats wrong with this guy, jack. Around the bend and off the deep end. Senator johnson, whats your thoughts on that . Well, what we need is somebody who can analyze the problem facing this country. You know, internationally and domestically. Understand whats keeping our economy from moving forward is the fact we have regulatory overburden. That driving up the cost of energy. They can communicate that clearly. Also someone that understands that as you continue to grow government, government becoming more incompetent. So we do need somebody whos run something, that understands how to run Large Organizations and has a vision. How do you rein in this government that has grown totally out of control. But also recognize the fact that the more it grows, the more incompetent its going to become. So somebody who is dedicated to limiting the growth of federal government, devolving that power back to the states, our government is more competent because its closely governed. Amen. Amen. But senator, i guess you dont want to necessarily endorse anyone, but what are your thoughts on what the gop has done the last few elections. Theyve done exactly what jack describes. We dont want to ruffle any feathers. Mainstream republicans really do respect you because youre good at getting rid of the heretics but they think you need someone to bring in the converts. We havent had an agenda. We havent told the American People what were for. And its actually pretty simple. Again, jack has the main elements. Keep Energy Prices low. President obama got elected saying that electricity rates are going to skyrocket because of his policies. We need to point that out. Thats crazy. If you ought to manufacture things, you need power. Cheap power is better than expensive power. That understands how the Regulatory Burden is crushing businesses. And then also understands how crushing our tax burden is and how uncompetitive it is. Again, this isnt rocket science, what we have to do. If you look at the American Economy as the hull of a ship. Weve had decades of barnacles get up on the hull. The solution is easy. Scrape the barnacles off. Senator, youre kind of at least associated with tea party mentality. I think that you recruited to run. Then you ended up winning. I just got so disgusted i figured something with some common sense ought to join this process. Are you willing to say that is it possible for the establishment gop to nominate someone like cruz or rand paul . That possible that could be the end result . If they put forth a positive agenda and if theyre willing to reach out and figure out what we agree on. Thats what my main point if we get a majority, my approach as chairman of the homeland security, im going to reach from the other side and figure what can we agree on. What kind of rel tour burden is crushing businesses. Lets find those areas of agreement. What harry reid has been doing is just putting divisive legislation on the floor, no chance of passage, and is doing nothing to help our economy move forward. Its also about whats keeping our economy from growing. Thats how you increase peoples wages. People competing for labor. Again, its not hard. See somebody who operated a business because then they understand the burden government places on the businesses and makes it gift for businesses and economy to growth. You wouldnt be saying this if you didnt think it was possible for somebody like that to get the nomination. I think we need a hard look at people with just exactly what senator johnson said. A clear vision of how you become more competitive. How you get more people in the game. How you raise everybody with good jobs. How you get away from this competitiveness. He calls them barnacles. I love that metaphor, if you will. I think its perfect to describe what were doing here. Were slowing down this great countrys engine of growth. And growth is what is the fixture of life. Joe, heres the main point of the tea party. Are you going to grow government . Or are you going to grow the private sector . Thats why im happy to associate myself with the tea party movement. Americans are finding out that growing government does not make us more secure. And thats the main point we have to make. Quit growing government. Im not on a this wasnt a regular Cable Network that uses the saying. I dont know how its conflated with the very far right. Its low its small government, low taxes, and individual freedom. But thats not the way the left pror trays it. Thats what made this country great. Weve got to return to those founding principles. Okay. I just see it happening. Weve had a divided country and theres going to be talk about a uniter and someone whos ready to compromise and its not those guys thats going to be the problem. The countrys going to say you know thats going to happen. I feel that way. Its finding areas of agreement. You dont have to compromise your principles, but isnt that how you did negotiations, jack . You didnt argue right away. You said what is everything we agree on before you figure out the areas of disagreement. Absolutely. Thats the approach. I would like to see somebody who will work with the other side. Its not about compromising your beliefs or changing them. It is about finding common areas. Thats very well put. Im glad you agree. The two parties have totally different opinions on how to go forward. Can you agree with anything the Obama Administration is proposing right now . Right now . Yeah. I think immigration reform. I think we need immigration reform. Health care for everybody. I think thats a way of doing that. All these things are not wrong. Theyre just implemented in a way that has no way for product ift. Productivity is the key to a countrys competitiveness. I call him senator ron john but thats taken by a surf shop so i cant. Senator, thank you. When we come back this morning, well talk about why apple wants to talk to investors. Plus gamers get ready for warfare. Check out this video. Aurora borealis over sweden. One of the larnlest sun spots in 20 years releasing strong solar flares. Its been dazzling in the arctic for the last several weeks. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Welcome back to squawk box, everyone. The futures this morning have been under a little bit of pressure. Youll see right now that they are down. Dow futures down by about 23. 5 points below fair value. But the nasdaq futures have just turned positive. S p down but only by about a point and a half. In our headlines this morning, apple is reportedly holding a call with investors today ahead of a potential bond sale. Deutsche bank and Goldman Sachs are arranging this discussion. A bond offer could come as soon as this week and might possibly be at least partially in euros. The company has never issued debt in anything other than dollars. American companies have been pushing bond sales in europe this year in an attempt to try to take advantage of the continents recordlow borrowing costs. Video game fans lining up at Walmart Stores for the midnight release of call of duty. The franchise has been one of the biggest titles in the industry but recent sales have been declining. Up next, jim cramer breaks down a new month of trading from the new york stock exchange. And wouldnt you know it. Jets, man. Mark sanchez, the hero. Somewhere else. Just makes sense, doesnt it . Fitting. But your erectile dysfunctionthat could be a question of blood flow. Cialis for daily use helps you be Ready Anytime the moment is right. You can be more confident in your ability to be ready. And the same cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. 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These are companies that are not at the top of their game that are being bought because people wants the Sister Company covance suddenly comes in there. If we can get the deal market going, then we wont need the qe, whatever, of whatever country. Thats whats important is confidence. I think confidence may be building if were getting these acquisitions. All right. Mark sanchez . Well, i mean, he never had a running game when he was with the jets. Hes got the best running game in the n if l. So i dont know. All you need is handoff. I think he can hand off just like everybody else. Is it weird, jim . What is it about super bowl teams . We just assume next year theyre really good. What happens, do you think . I just think you lose a lot to free agency, you lose a lot to injuries. Last night we had the afc championship game on, that was an odd one. Then we had two championships. We had ben roethlisberger. Thank heaven b that the eagles are philadelphia is in the nfc. Coming out of the afc is going to be impossible. Way too hard. The patriots have done it before, obviously. But then they always you know, the last couple years theres been something missing. Do you see that catch gronkowski made . Gronk. If gronk stays healthy you cant tackle gronk. It takes, like, seven guys to tackle gronk. And brady. Brady. How do they i dont know why you draft that guy. He was nobody. Nobody. How did that happen . Michigan. Smart guy. Drafted brains. Amazing. All right. Thank you, jim. Well see you later. When we come back, jack welch on the Global Markets and his take on whats happening in europe and bill gates says he wants to end malaria in his lifetime. He says hell give more money toward that goal. This is part of his broader fight against tropical diseases getting more attention because of the ebola epidemic. Squawk box will be right back. Opportunities arent always obvious. Sometimes they just drop in. 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Then run your new idea through the trade and probability calculator to get a quick look at the possible upside and downside. Streaming charts give you the realtime quotes and customized views of the market that can help you make your final decision. And when youre ready to make it happen, walk limit helps you save time by searching for the most favorable price. Find new ideas, analyze and execute your trades with just a few simple clicks, with optionsxpress. For a one hundred fifty dollar amazon. Com gift card when you open an account, call 18889805745 today. Optionsxpress by charles schwab. Lets get back to our guest host today. Jack welch. Earlier today andrea was asking you about corporate activists. You said if the ceo is a horses ass you like corporate activism and if you have a terrible ceo you hate it. How do you tell the difference between the two . No energy. Dead stock price. All of these things are killer. You have to have somebody who e rejuvenates the place to get it growing. If youre not getting it and youre not driving it, somebody is going to shake it up. Like, for example, i dont like activism when theyre not successful. I dont like thousands of people when youre wrong as an activist, you should get hammered. You shouldnt invest somewhere else and get rich and do other things. If youre wrong as an activist, you have injured armies of people for no purpose. That is a bad idea. How do you think about someone like bill ackman. You mentioned jcpenney and target. Hes in that trail deal hes on well on. Hes done well on a number of bets. Right. So hell be right sometimes, wrong sometimes. Whats the answer then . If youre the board of a company thats, you know you have to be right more than youre wrong and when youre wrong, you cant destroy an asset. Karl icahn has been right most of the time. I would have to go back to twa when he wasnt. Hes been right. Motorola. It worked out fine. So in previous appearances, theres been many times when i tried to get you to really go off. You said you dont want to look like a cranky old goper. You have said a lot about the Obama Administration. You have been unrelenting. Talking about ted cruz, that wasnt on national tv that you said it. Yes, i did. On national tv on saturday. Youre going to hear about it now. I am. What i worry about, you live in new york now. You know all of your liberal friends that you hang out with your little thing finger up in air, are you going to get invited . I got blasted on saturday. What about wednesday . Are you going to go i may not be invited. Are you going to grow a beard or something . The facts are we need a republican position that is clear. Ron johnson said it perfectly. We need a position with policies that are voted on. Now, if we win the senate now, the transparency issue will be enormous. People will get a chance to see who is for growth . Who is really going to make this country become the shining light on the hill. Who is going to do this . Who thinks america is exceptional and our best days are ahead. Who is going to give us defense against isis which is a big deal. You look around every corner and all you see is threats. Isis is a big deal. Isis is not a small isis to me is much more important than ebola. Much more important. Much. Well deal with ebola. Well get that under control. Biggest threat facing mankind . That was an insane comment. John kerry, secretary of state. I love john kerry as a guy. Do you wind surf together or something . Im not good enough. Hes a better athlete. Ill beat him in golf. He was at the patriots game last night. I saw him. I saw that. Climate change is not the Biggest Issue facing this country. Its insane to think that. Insane. It makes me worry. Seriously with isis and isis is a real threat. When you see people marching around with signs, kill every american, kill them. This is a big deal. If youre in the wrong sect, you deserve to lose your head. This is a very dangerous thing and this threat is real. We let them build up and we had a chance to get them when they were across the desert. We got played by assad. We got handled. How about with israel . How about that stuff . I think well have a great, great election if hillary is here and i like mrs. Clinton. I think shes a good person. I like her policies. Well see them. I like to see a real clear articulation of the other sides policies. And youre not crazy. I havent gone around the bend. Im not crazy because i happen to think we got to look at ted cruz and we got to look at rand paul. Thoughtful people. You think thats what happens in 2016 . I dont think i think its unlikely the republicans will have the courage to put somebody out there. If not jeb bush and not rand paul and ted cruz, who . If you decide these two were too far over and jeb doesnt want to do it for whatever reason i think jeb and Chris Christie and those sorts of people are too middle of the road to win the country. Theyll be liked in new york. Theyll be liked they wont win. You have to give up on new york. You have to give up on california. Its weird though. Romney said 47 . Theres some truth. Theres 45 here. Theres 45 here. Its the ten that you need in the middle to go your way. I think theres 60 in the middle for somebody who wants to think america is great, who wants to grow it. I think theres 60 there. I think theres 60. Do you think mitt comes back . I dont think he will. Why would you want to do this a third time . I hope if he does, he gets a different staff. Thats all im saying. He has to get a tougher staff. More edgy staff. Thank you for doing this another time. We want you to come back. Jack welch, thank you for being here. Great two hours. Make sure you join us tomorrow. Squawk on the street begins right now. Good monday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david faber. Futures are relatively steady as we enter a week with a lot of data. Tenyear yields above 23. We begin with a new map for the markets starting w