Transcripts For CNBC Squawk Box 20141105

12 months. Check things out this morning, if you want to see the knee jerk reaction to some of these things, youll see already the futures are indicated higher. We knew the republicans were likely to whip, but if you take a look, there were some this was what you would absolutely call a wave with some races that hadnt been expected to go their way going their way, as well. Dow futures are indicated higher. S p futures up by close to 7 points. Nasdaq up by 16 points. As for the bottom, weve been watching oil closely once again. It is down again this morning, down by about 31 cents. 76. 88. Thats about where we were yesterday at this time. This morning, the tenyear looks like it is yielding. I cant see it because theres a line over the one place where it says 2. 35 . The dollar this morning at this point looks like it is up against the yen, up against the euro, up against the pound. Euro is trading at 1. 2484. Dollar slrn yen, 1114 and change. Gold prices look like they are down, as well. 1,444. 80. A republican wave did sweep the Midterm Elections. Lets get you to some of the highlights. The gop netting seven senate races. The party only needed to win six or rather needed six to win control of the senate. Notably three of the contests were in the president ial palths ground states of colorado, north carolina. As for the house, republicans are on track to pick up double digit seats there. Scott walker. A little History Lesson there, too. Scott walker, rick scott, as well. And early on, you saw something with gillespie and but i didnt see the ads. Did you see the ads . You guys are both redskins fans. You saw the ad that he bought . Yeah. That almost did it. That helped him. It was in virginia, always. Lets get to oh, are you guys ready for this . Born ready, man. Speaking of experts, you will notice, joe, that republicans are at 52 seats, which is the number that i told you yesterday. Yeah. You were right. You were right. Now it will probably going to 54. John, ive been giving you just slight just little pushes about maybe its going to be a wave and you kept pushing back at me and i kept giving you the chance because it felt wavy as you were getting closer and closer. The thing that got me, and i try to watch a lot of different news outlets, there are two narratives. One was it was a lot of the Mainstream Media was antiincumbentsy. People are just mad at washington. They want to throw the bums out. And those outlets would not say anything about unhappy ps with the president s policies or just with progressive rule of growing government, never said a word. And then the other side, it was all antiobama all the time. I was surprised by some of the polls, though, that showed the economy was the number one issue and that they it should be. Isnt that what people feel . Yeah. I think thats what this was about. But look, you can see this was health care. In 78 sorry, i didnt mean to interrupt, but ben white and Megan John Harwood are you from cnbc . Im here. Okay. I thought becky makes a good point. 78 of voters in the last nights exit polls said they were very concerned about this economy, but they broke heavily to the republicans. Its the economy, stupid. Isnt that the saying . It always is the economy. Its almost like it is both things, both antiincumbentsy and they were reelected, though. The economy was clearly a repudiation of president obama. You cant have republicans winning in his home state of illinois, the governorship in maryland, a lot of blue states and sweeping to possibly nine seats. This is a repudiation of this president , no question. There is a reason that every time in the last 100 years, except two, with a second termer or in no. That president obamas have lost seats in the midterm reaction. The reason is the president of the United States is the most conspicuous in the country and people take out their unhappiness on that person. Theres a lot of things that were different this time. He was taking it to new levels with the number of seats that hes given up. Thats not the point. The point is we knew that was going to happen. It was a bad map for democrats and the president is low. Hes at 40 . That has consequences for members of the party. But we should not underscore what a big victory this was for republicans. Republicans within governship in maryland and massachusetts and here is where i disagree a little bit partnership thought and said often that this was going to be an antiincumbent year. Republican incumbents did much better and governors particularly. Thats the combination that ben was talking about. Double digits. He won by a wide margin. It was almost like the left knew a party and no one came. I watched again on the nightly news. I saw more still shots of her. Looks like she was already governing very effectively on the shots i saw on the Mainstream Media. They did it and they worked they spent so much time prop her up and it never happened. Wendy davis in texas early on was supposed to be there they lost by a million votes. One more thing that i remember talking about. One more thing . No, no, this is not bugging me. With the Huffington Post there was i talked about it here. It was they were air a huge win for obama, a huge endorsement. And i looked to see, who you, who said it . And it was mark pryor, a democrat that voted for obamacare, admitted that finally finally admitted that he had voted for obamacare, but he didnt call it obamacare. I got an email from the nation last night. Their hell was the democrats lost big, why obama should double down. And the neat is now republican, here is why that sucks. What i wonder about this, the left is not going to let up on the president. Does he respond by saying we have to compromise or does he thats a big choice for him to make. Hes going to dig in. You made the argument by this morning that he was digging in by going to asia approximately. Is he going to do that . Yes, he is. That will be a stick in the eye for a Republican Congress and it will sour relations for the last two years. He will get nothing. Remember at the white house, i think hes mad, hes probably madder now than he was. Im sure he is. And do what he wants to do. Look, i agree with ben. Hes going the take the action on immigration. Although with his he takes his sir couple scribe by this reven majority. The opportunity and the potential for republicans to push back effectively is much bigger because of this win, not only on immigration, but also on the Environmental Protection agency and the rules on carbon. I like that. Yes. But remember, the core disagreement between the two parties is what happens to the size of government and do you close the gap between our obligations and the money coming in by producing more money . I dont think hes going to bend on that. So the question is, Social Security and medicare, for example, do they get smaller . How much smaller do they get . If you dont have any revenue, they have to get a lot smaller. Hell fight on that and theyre probably win. Immigration is right. Nobody is going to work dead here. Yeah. The question is not the question is what can the Republican Party do . Is there a waiver with no. But there should be consequences from elections. This is the public saying they would like to see some sort of compromise on issues. I dont think that right. But i think its the opposite of that. I think republicans are going to be in this wave election to say we dontny to compromise with you on anything. We just blew you away and but this is the but were not this is the danger of both parties. It is unfortunately probably the fact, but this is a huge opportunity for the Republican Party and if we dont seize it, we will have no chance of winning in 2016 elections. It is coming together and passing legislation. The president can tax reform, economic growth, Social Security reform. But that gets to the core question. Tax reform, republicans want to cut tax rates and cut revenue. Okay . I think corporate better Corporate Tax reform will grow the economy, which will give something for republicans to run on. Look at what yeah, but republicans havent been willing to move on Corporate Tax reform without personal tax reform. If they dont disconnect those two, not happening. Look at what gillespie did in virginia. It is still too close to call. He ran on his own health care plan, on his own economic plan. He ran on policy. And yes, he had a really great ad in the football game, but i think he did well last night because he is one of the few people who actually ran on something. And voters rewarded him on that. But there will not be a Republican Health care alternative to obamacare that is enacted into law. Thats not happening. I agree with that. But then we can have an intelligent debate in the president ial rate about what policies were moving forward as opposed to a race to the bottom and to which party is worse at governing. Dont we need to have a debate on some of these things before the president ial race and dont republicans have to demonstrate before the president ial rate race that they can govern with a majority . And i think theyll be able to demonstrate that for some of the reasons john said. Whats going to get done trade deals, maybe . Yeah. So two trade deals. Maybe a little bit on infrastructure because i think that republics are going to want to show an interest in delivering on that. Very, very little. This is i know you disagree with me, but there are big swings in the u. S. Politics, sort of the in the way the public views overall directions for the country. And there have been times in the past where youve seen the pendulum swing. My point was if both parties have a chance to screw this up over the next two years, but if the republicans dont screw it up, i would say it wasnt just antiobama rhetoric. It wasnt just antiincumbentsy. It was antiprogressive policy backlash that could swing the country even in 2016. What is the republicans dont because if the republicans zaupder this, were going to go back to smaller government. Lower taxes, less regulation. More i think it was. More disagreement between the drn. I think youre right both parties in the country. Except for social issues. I agree with you. We are center right. But the core disagreement between the parties is really about Social Security, medicare and medicaid. Size of government. Thats where the size is. And last night and do you want to address those at some point. Maybe even the republicans but thats did any republican run last night on cutting Social Security and medicare . No. But i think the country Social Security is different than cutting it. Yes. They can make an agreement on those issues if republicans put some revenue on the table. But you the party that the country wants to try to jump start the economy in the exit polls is now the republicans. And that wasnt the case for the past couple of years. They thought, hey, lets try some of these things. Lets try this 800 billion stimulus. Lets try infrastructure. With the counterfactual. I think this economy is much more tepid than it should be. Markets up, unemployment markets up. Look at the fed. Theres a lot of we can both argue about that. I agree. But i think at this point were back to trying some version not of trickle down, but of making business to allow job creation to come down from the private sector instead of a government sector solution to everything. Thats what this election is. And if they dont lessen up thats one thing you wont see the last two years is president obama making a deal with republicans on some version no. I dont expect him to get any friendlier with the private sector, i dont. Its obviously true that theres a republicans were given the keys to the economy saying you can do some things they had a key before. They ran it into a ditch. Remember that . What do they do with those . Thats what i mean. They can make the economy get better and and in two years they can squander this in two years by being bad winners, by being sore winners, they could squander it. Theyve done it before. We saw ted cruz last night. He would not pledge his support to mitch mcconnell. Mitch mcconnell doesnt need ted cruz right now. Welch, all his friends are calling him, hes jumped the shark, theyre calling him, what are you, a wing nut now . The republican has to run ted cruz. Hes folding on things to go with go with you say that. I know that. And i think i would agree with you. It goes back to your social issues. Yeah, right. When he was here, he said if the states decide to do these social things, he has no problem with it. I think for the vast majority of voters who think about a president who gets to select people who are on the supreme court, for example, and those look, then all i know is changes in dynamics how does it into learning another youre lowering me into running another romney or mccain, youre making me think, yeah, youre right. But why should i listen to you . I dont want the other side to win. I want the there you go again with that. If you guys want to win, you should run a moderate. Run someone right in the middle. There you go again. There you go again. Thats how you we had the same coloring, too. Becky made a point earlier, which is a secular problem, okay . The problem is that the American Economy is not delivering rising Living Standards to average families. That has been true for a long time. Who do we believe can fix it . Thats the question. A couple of years ago when we were just moving into the 2010 cycle, i talked to bob leischauer, former director of the congressional budget office, a democrat. He said we were in for a long period of voter discontent and of turbulence with one Party Getting in, getting kicked out, another Party Getting in, getting kicked out. Why is that . Because we are now in competition with hence of millions of people around the world with lower Living Standards than we have and others are not rising. Right. That is a problem and the age old question. Do you solve that with redistributing a smaller pie or do you solve it with growing the pie and hoping that everybody you saw the growing the pie. The question is, how do you grow the pie . By getting out of the wait of the private sector. You dont incumbent the private sector and redistribute more and put more regulation. And thats why the bush economic record ended so successfully . Thats why the reagan economic record ended so successfully. Were going to continue this conversation. Were going to continue this conversation for the next two years, actually. Up next, why equity futures are indicating a bullish investor reaction to the election results. And then later, adam richman will join us to talk about why theyre hanging out with tech and foodies and how hes recovering from an inextra gram battle. Well tell you what that was all about in just a moment. 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. 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, everybody. What impact the midterms could have on the markets . This from jm morgan may give you a bit of an idea. The stock market rarely embraces change, regardless of which party is in power. Stocks traditionally rally in the year after the midterms. Take a look at that. You see the average incumbents gain seats versus the average when incumbents lose seats. I thought the one thing that always holds true is you get a republican and democrats in both houses and its always good, right . Its like twitch, right . Yonl about that. This is a very small number of cases. Stocks go up these days. When we go through an appointment it does matter. Joining us now to talk more about it is drew mattes. James lew is the Global Market strategist at jpmorgan funds. James, why dont we start with you. We saw what happened with the election. This was bigger for the republicans than some had been anticipating heading into this. What does that mean for the market . I think it is good for the markets. Its more turned out the way we expected i. I would think the energy policy, it has increased. Which coincidently, we also pushed down Energy Prices to an extent. I think Immigration Reform is slightly more likely, although finally, i think Corporate Tax reform is slightly more likely. Also no terribly optimistic. It would be great if it does happen. There were some things this morning, ben white pointed this out in this mornings money notes, that House Majority leader Kevin Mccarthy has been saying things like were going to dry and govern differently. We dont want to be lurching from crisis to crisis. We dont want to be dealing with the fiscal cliff issues. Is that something that you think fits . If thats the case, what does that mean . Im optimistic about this. You look at last year. Those events hurt markets. From my perspective, the best situation for government is to kind of get out of the way of markets. Were still up. Thats the markets over the in fact couple of years. How does this change your forecast, if at all . It really doesnt. Our guys in washington called it. Everyone is worried about investment. But from our point of view investment in the Energy Sector . Investment in the Energy Sector going forward. But from my point of view, were in that sweet spot still where Energy Prices have come down enough. The consumer is going to have more money to spend heading into the holiday season. Its a sliding scale, right . So theres a continuum. And some people are basically priced out of the market when the oil drops below 80 and they dont want to make further investments below that level. Other people are at 75. Some people will be at 70. So its a gradual move as constantly erodes the investment cycle. But once again, also, we should bear in mind that it has to be sustained, right . You and i go into the gas station one week, two weeks. That makes more of a difference than someone who is out planning what their investment profile is going to look like for the next 12 years. Let me get your idea of what would be the perfect washington scenario over the next couple of years. Something gets done or nothing gets done . I would just caution that usually the people who get things done and solve longterm perhaps pay for it in the end. Thats part of the reason why you see in washington not a lot gets done. If you solve a problem by raising taxes or cutting benefits or doing whatever, you get blamed for it in the end before ungz the benefits and before people understand that in the longterm you did the right thing. And thats part of the reason why it seems to me Like Washington has much more of a shortterm focus because you get to get reelected. James, joe mentioned this. A lot of times lately its been Central Banks and International Headlines that have moved the markets more. Is this something that you look at and you think, okay, this matters, but not that much . Yeah. I think u. S. Investors should continue to focus on u. S. Events. Despite the Midterm Elections, despite the uncertainty. Were having a record earnings season right now, about 10 year on year growth. And they are into guidance for the fourth quarter. But broadly speaking, especially with low Energy Prices, Consumer Discretionary could see a bounce. I think earnings are what we should watch and we have the labor we in between 9,000 and 17,000, how many points for the fed . I think with the fed, were going to see shortterm volatility. How many points were if he fed . How many points for qe . I think very little. Really . I think qe but even if you say it just helped the economy . You would have to i dont believe it helped the economy. It didnt help the economy at all . Thats an interesting so its not passing the baton, all along they are start to get better when the fed pulled back. When they start tapering, thats when the xhp economy began to accelerate. I dont think its a coincidence. So all of this talk that this is build up on when you tell people these guys are not going to theyre supposed to do it all here. Very strong in the u. S. Thats not cheaper, but forget about anything else. Nothing to do with it. Thank you, guys. James hes just happy the republicans are back in to just go crazy again, whatever it wants to do. Right, james . Sure. I said that before, you know the ceo like the president. Liked the president. Which one . Jamie . Yes. Oh, jamie, long ago, said im he said five years ago, im barely a democrat any more. Did you ignore him when he said that . I was there. I interviewed him. I remember that. That was five years already. It would be interesting they put a hit out on him. Coming up, the french government gives the green light for the ge option deal. Well have those details next. Shares of tesla more than 50 this year, but theyre down more than 5 last month. Elon musks company, is it slowing down . Thats next. And as we head to break, a look at yesterdays s p winners and losers. Act i. Scene 3. 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 . 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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 . Good morning and welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and andrew ross sorkin. Taylor swift, selling 1. 3 million copies of her new album, 1989 in the last week. The data out from nielsen sound scan, its the first album released this year to sell a million copies overall. Its the years second highest seller overall and the top selling was was frozen. These are real albums. We were talking about this yesterday during the commercial break. There was a great article. Remember she wrote that piece in the wall street journal, and said that she didnt want to sell on spotify. Her manager has a it might be that he doesnt want to put it on spotify because he wants to get a higher valuation for his company. It doesnt seem to be hurting her. But i would argue what shes done cannot be replicated by most artists. Probably not. On the saturday night live of a week ago, they did the that for people that admit they like taylor swift, theres like a drug that a new medicine for those affected by the vertigo after they discover their love forte lore swift. They had a bunch of people going, oh, my god, i like this song. Im getting dezzy. After they find out its her and they like it, they get vertigo. Were ow saturday night live this week . Was i on . Did you go there . I went there. With chris rock . Yeah. That was the that was probably the best saturday night live in quite some time. It was something. He was at the after party, yeah. I dont understand why youre keeping this from us. Im not keeping it from you. It was a saturday night. I just tell you what happens during the week, usually. It was literally one of the greatest saturday night lives ive seen if a long time. I agree. And chris rock telling jokes that were completely you knew somebody . I mean, i know everybody. In corporate news, the french government, the french government, i know them, giving the green light for ges planned acquisition of the power business, shares of ge at this hour. Lets take a quick look up. Theres a oneyear chart, up and unchanged. For more than 40 years, lauren has been doing tried to connect the dots between the biggest stars of hollywood and where they came from. Unbelievable. Oh, lauren is the and is a businessman. Everything. Unlike most other tv producers. Huge fan of his. Thats my idol. We know each other from working here for 20 yearsing on together. Lets get behind the wheel and talk about tesla. Its a huge focus. It will be on u. S. Sales figures after controversy that happened in late october when ceo elon musk called out the wall street journal on twitter saying, quote, article in the wall street journal regarding tesla sales is incorrect. It was a record high worldwide and up 65 year over year in north america. Joining us now to talk about it, george gallo with isi group. What are we going to hear . Yes, good morning. We think the for the quarter will be on Global Delivery number and also on the growth margin. With respect to the global deliveries for the quarter, the company are gooit guiding around 7,800 units. We are looking for just under 8,000 units. And with respect to gross margin, were looking for 27 in this quarter. George, the thing that i dont understand, the wall street journal has been sent after them on all sorts of fronts. What do they have to tell us about, for example, the x model to make investors truly happy . Well, i dont think the Investment Cases resolving around the x. But, of course, the x will be a key model when it comes out for tesla, given the Global Growth were seeing in the s p demand. With respect to the x, at the moment, were looking for delivery data towards the middle of next year, maybe q3. Its the x actually ends up coming out a bit later than that for whatever reason, could it be the price restraints just by a decision by tesla to bring its market later . That doesnt really change the Investment Case here. This is a longterm strategic play and we like them telling us. George, i have a question for you. Its the headline of a forbes story that ran, i believe, yesterday and it said is it time to admit defeat on franchising independent dealers . Effectively, should they start franchising deepe ining serials opposed to trying to do it on their own . We could see an argument for that if we felt that it was preventing them from selling the volumes they were producing. But clearly, its production where you have the constraints and not on the sales distribution. We like the direct sale models. For us, its advantages, not only the margin on selling the vehicle, but greater control of the customer and, of course, the direct feedback. Okay. George, were going to leave it there. They do make beautiful cars. I dont know about their valuation. But thank you so much for your time this morning. All right. We should tell you about some news just in from goldman sachs. Goldman sachs has been named a defendant. The suit allegations misstatements and omissions in connection with the 2013 bond offering. This occurred last month after gt files for bankruptcy. A time of people on the street mentioned that to me because they thought with the new iphone they were going to be the ones to provide all the glass. Gorilla glass. It was heavily shorted. A lot of people said how come you never talk about that . Its the next big it didnt work out. Well see what happens with those shares today. Up next, food is on the menu this morning. The man who has made a living georging on monster burgeres and spicy peppers will join us right after this. I take prilosec otc each morning for my frequent heartburn. Because it gives me. Zero heartburn prilosec otc. The number 1 doctorrecommended frequent heartburn medicine for 9 straight years. One pill each morning. 24 hours. Zero heartburn. Introducing synchrony financial. Bringing new meaning to the word, partnership. Banking. Loyalty. Analytics. Synchrony financial. Engage with us. 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. Taking place this week, its the dublin webb summit. One of the bits that the techkies are biting on is the intersection of food and technology. Our next guest knows a lot about both subjects who has made a living out of eating everything from 72 ounce steaks, hes learned the hard way that technology, specifically social media can give your brand. The major indigestion sometimes. Good morning to you. Good morning. We have a bit of au delay, bt i have about a million things i want to talk to you about. Adam has gone up and down in weight over the years. Because he has to eat all this stuff over the years. I want to talk about social media just for one second before we get into the future of media and food and everything, which is this. A lot ofviewers, both individually and in business, are trying to figure out how to react with social media. You had your own kerr flulel to put it mildly over the summer with some remarks when you put out this hashtag inspiration and that came back to bite you with all sort of haters saying lots of things. And then you hated them back and that created its own firestorm. I dont know if you want to talk about that experience, but how did that impact you and what was the lesson for everybody who is watching this kind of thing . You know, thats the exchange you make. If youre in the public eye, there is a degree of expectation there is an expectation put upon you. Like it or not, there is no sense in engaging in any twitter or instagram altercation. Also, recycle something larger than yourself. The network, your brand as a whole. And, you know, the thing is, the ramifications that were greater than myself, this was my judgment, but then my crew lost work, over 50 people and every restaurant ive ever shown has been an independent business but got 100 to 300 more business because of being on my show. There is a trickle down effect. I guess if there is a lesson learned, simply there is no person and you just have to swallow it and move on. There is no upside to engaging with hatred. And the show got pulled at the time. How much time to you spend on social media . I mean, i check it daily. I check it daily. Im on facebook, i twitter, instagram. I have my own website that im building. But i love it because its actually its right where the rubber meets the road with fans, with foodies, with restaurants. You know, when i hit a new city, ill ask for new recommendations. If i have a recipe, ill share it. If someone has one, ill share it. That is a beautiful thing with social media and the way the internet is intersectioning with food. The flow through of ideas happens in realtime so you can gauge reaction to what do you think of this recipe . Or im about to judge this or which one do you think would win when i judge the vending awards for the vending trucks and push cart vendors in new york. Thats whats beautiful about it. But im on social media daily. Adam, is there a way to turn criticism . Meaning to the extent that there is criticism, and as youre saying the haters online who, you know, can make these awful comments, sometimes very hurtful comments, is there a way you suggested perhaps to ignore them, but is there a way to take it head on in a way that actually works . You know something that ive found, regardless of whether or not its intellectual discourse or lashing out, obviously, is a poor idea. But jimmy kimmel has been very supportive and he said at the end of the day, people can say what they want and we cant respond. More eyes are on us than on them. So regardless if youre very articulate and very forthright and very well thought in your response devoid of any profanity or intense thought, at the enof the day, by you responding, you are laying credence to these faceless keyboard warriors. Again, it sort of slows you down. When people want to know great places to eat, great meals, ive had experiences through this summit, any sort of acknowledgement of hatred or dissent steals your shine and ive got no time for that. Awesome. Adam richman, thank you for joining us this morning, man versus food, we appreciate it. Coming up, attention, road warriors. The hotel counter is about to be the thing of the past. How hotels are putting you in charge with a simple scan of your smartphone. The companys ceo will explain when squawk box comes right back. What if we finally had a back yard . That would be amazing. Hey, what if we took down this wall . What if this was my art studio . What if we were preapproved . Shut up from finding to financing, howd you do that . Zillow. No question about that. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Starting today, guests will be ail to use their smart phones as room keys in ten hotels around the world with. The plan is for the technology to go company wide next year, but investors have not been cheering the other recent moves by the companies especially when you look at starwoods performance with marriott over the thats year. Joining us now, the president and ceo of starwood resorts. Thank you for letting us now though it works, its a smart phone. You check on yourself to get into the room, and the staff can, i dont know, give people massages or something, frees them up for other service orient thin things, right . Thats rights. You book a room, a few hours before you check in, a text say your room is ready, click on the green number, you see your room number, come to the hotel, put your device right up against the lock, and youre in your room. Wow. Other people have some type of wireless stuff going. The industry is moving this way. Right . Is this is your system better or sort of a me too . Well, i dont know. We have not seen our competitors actually do this. For us, though, what we do with keyless is enable ourselves to begin a dialogue with the guests on the way to the hotel and when they are on the property. Like the mobile is your remote for how you live, its the way you interact with us and get better service, and so as you said, going keyless takes a pain out of the travel process, and it frees up the people in the hotels to take even better care of the guests. So in the most recent report, earnings report, theres you know, come of the analysts scratch their heads, others wonder about the forecast. Theres issues as well as some other things people do not understand in terms of asset sales, hotels converted to franchise hotels. Whats happening at the company . Why were people surprised things were not going as well as they had hope . Well, there were a few surprises to the upside, first of all, the Third Straight quarter this year, we beat earnings expectations, and the other thing is in agate, the hotels out perform their direct competitor. Because we are are more global than any other Hotel Company with 80 of the growth and 60 of the rooms outside the u. S. , when the u. S. Gets stronger, our business is relatively less strong, so whats been a tail wind for us the last four years as the worlds economy grew faster than the u. S. , this year, right now, its a bit of a head wind, but its minor. Well continue the growth, not only in the emerging markets, but as occupancy now is at the sixth straight quarter high in the u. S. , we see growth coming to the u. S. As well. How long is it is it a new cfo . Yes. So we have a new cfo as of september, on his first call with us, and hes a quick study. He came to us with someone with global brand experience, understanding how to operate, was president of a division after having been a Public Company cfo, so hes a great add to the team. We have been having a lot of conversations about buy backs, and theres been talk about some of the buy backs that starwood has done and the stock is down from the timing issues on the buy backs which we wonder, should a Company Always buy back stock other only when the stock is cheap . So heres the thing, joe, and you eluded to it earlier. We are in the process of making an asset like company. Today, 65 of the earnings come from the management and franchise fees. The others is from earned realize. We said by the enof 2016, well be at least 80 fee driven, a more pure play in the asset light return of capital side of business. What that means is were going to be selling hotels and as we increasingly are fee based in the business, we get cash from that as well, and as we got into this year, we were very under lev ramged, so this gives us the opportunity either to buy back stocks or invest back in the business if theres an opportunity, but what were doing next year is evaluating both options. As you sell more hotels and move to the feebased revenue model setup, how do you make sure you control the brand . Star woos be starwoods a good brand and name consumers rely on. How can you continue to control the brand . The key for us is to find the right partners to work with. In fact, today, already, 97 of the hotels are owned by real estate developers, investors around the world. The business is built on making sure when we manage a property, we deliver branded experience, or when we franchise, work with partners who know exactly how to manage the hotels and deliver the experiences we know our travelers expect. All right, thank you. We looked at long term charts, looks great. At the end, theres an illustration of what analysts thought was not great communication. Maybe the new cfo, maybe back on track, well watch and have you on in the next few quarters if possible. Thank you. Okay, coming up, former house leader eric cantor first interview since the loss months ago, and we return with mr. Cantor in a moment. How could a luminous protein in jellyfish, 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. 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. Big shift of power in washington, the senate turns red. What is the g. O. P. s next move, expect gridlock or more action . Cantor sits down with us in the first tv interview since leaving congress. Its time to go in a new direction. The other power struggle. Crude prices keep falling. Good news for consumers. The bad news for the oil patch. Is the Nations Energy boom in jeopardy . The worlds power players from putin to the pope, who has the most influence over the globe . Second hour of squawk box begins right now. Welcome back to squawk box on cnbc, capitol hill waking up to a new republican majority in the senate and more power in the house. Im becky quick, and our guest host this morning, eric cantor, with us for two hours to cover a lot of ground. First, the markets reaction to the news. The futures are higher, dow up a 1 points above fair value, and s p up 7 points, and nasdaq up 16 points. We have to take a look at the price of crude oil. Its down this morning, but has picked up some steam from where it was yesterday at this time. Its down by 5 cents. Lets get the midterm highlights this morning from cnbcs washington chief correspondent. How late were you up . It was late, lets not talk about it. You dont want talk about anything no, no, no, were about to talk about it. We have the difference between the ordinary election and wave election. What defines that happening is when the race is on your side that you think are going to be close turn into to be blow outs. The races at the other side to win easily become very close. Look at mitch mcconnell, for example, that was a race that polls shown was close throughout the fall. Mitch mcconnell won by 15 percentage points. Thats what happens in a wave election. Look what happened in the state of virginia. This is a state, mark warner is the incumbent democrat, and he had been expect the to win easily over the former Republican National chairman, and look what happened. One point difference, could have a recount. Mark warner is not the apparent winner, but thats what happens in a wave election. The governors race, totally out of nowhere in maryland. A very blue state, Martin O Malley a popular governor, and brown was nominated to be the standard bear, and he was crushes by hogan, and lair hogan won the election easily. Heres another surprise on policy level. We had in five states, four are blue states, minimum wage on the ballot, and what we saw in states like nebraska, in arkansas, in alaska, illinois, that test, on policy, theres some issues where even though democratic incumbents were defeated last night, even though president obama was smacked down hard by the electorat where his position is prevailing, guys. Wow, okay. I guess thats thats sort of a silver lining, a bright spot. For 13 years, eric cantor, our guest host, served in the house of representatives, and after a primary defeat this summer, returned to the sector, and vice chair, eric, joining us now for the first tv interview since resigning as majority leader in august, and great to have you, eric, and we got to get it out of the way from the start. Whats the target for the s p by the end of are you a banker now . Do we have a whole new set of questions for you . Who are you . It is great to be here, be back on, and, yeah, im newly vice chairman, a great opportunity for me, and ive been on the show for years, and very focused on the intersection of policy and business, so, really, have been doing a lot of travel since i first started, not domestically, but internationally, and, you know, its amazing to see the focus own clients have whats going on in america, and everyone pining to see americas return to leadership. Again, last night, i think, is an example that hopefully the world takes stock, sees decisive moves by the voters of our country, and now itll be up to washington to step up and deliver so we can see the return to the Growth Engine weve all been longing for. You talked a little bit off camera about all the things that were written about how you handled what was kind of an adverse situation that happens had a lousy introe i dont know about that, but we all have things that happen in our lives, and that depends on how you handle it, and almost universal acclaim, and you say even a lot of people, even democrats, suddenly, they like you. They do not call you that eric cantor anymore, right . It was amazing. Its amazing what happens when you and you went to wall street. Right. You cashed in. They are still not bizarre. You did, kudos on the class you showed. I think you what the hell happened . At the wrong place at the wrong time. Bittersweet at all youre not there to enjoy this . Listen, you know, i think in life, you know, and if you have kids, you know what youre always telling them that a lot of times you dont understand what happens and may not seem fair at the time, and all of us know as one door closes, others open, and, you know, i feel i have a great opportunity now to bring to bear the experience i that had as majority leader, so, again, at the intersection of a lot of very complex problems and personalities, business and policy and politics, and now be able to take that experience and the judgment, hopefully that came from that, and bring it to work for our clients, and to be able to do so in the way that the firm has, theres a real mission to do it in an i want mat passion in a nonconflicting way. Very excited. Look, you never know. You never know why things happen. Im always one to look forward, not look back. Eric, what do you think happens now that the republicans have the victory . We have been talking about it all morning long. The question is can they make something of it and get it done or does it turn into what weve seen for the hast six years, every party that wins squanders the win and gives it up in two years. Part of that, its a game of expectations. You have a resounding win and wavelike effect last night, and people begin on the republican side, saying, hey, now we can do that which we have been wanting the last six years, but the problem is the president s still in the white house. Thats measuring expectations is probably some good advice from former friends and colleagues in the house. I know that leadership, boehner, mccarthy, and others want to get something done. The majority of my former colleagues want to deliver, but as we saw over the last several years is as audiotaoftentimes a minority gets in the way to bring about things we saw prior, whether it was a fiscal cliff or a shut down or the near approach of a debt default. Those are things that i dont think the majority of members want and hopefully we can steer clear of that. Did you hear from president obama . Actually, i did not. Not a word . Not a word. I did from the Vice President several times, and several of the members on both sides, obviously, have a lot of friendships there. Huh. You know thats well, because you know him, and you had your moments with him, and i was thinking if he had contacted you and sort of youd have a better idea of what we can expect now on which way he moves. I mean, since there was no love lost back then, youll say you dont expect him to attack the center, but be on his heels or you know him, do you think we should be optimistic how she reacts to the election . I think well be able to tell not only from his stand point but from the republican stand point in six weeks about what 2015 looks like. Theres two things that are telling. One, the president has continued to say hes going to continue with his mission on Immigration Reform with or without the congress, and if he goes ahead and yunilaterally signs an executive order to do what hes talking about, my sense is that that will light a fuse, and we dont want to light a fuse. I dont think that the American People want to right now. I think they want to see folks Work Together. Thats number one. Number two, on the republican side, again, i think that leadership is firmly committed to trying to address the spending question to get the kinds of things that still are left undone off the table. As we know, we have a spending package that continues resolution expirie ining decemb 11th, and if that is addressed and able to see spending bills completed, signed into law to get on to the next year and look at the new issues that are confronting the country, most likely, hopefully the progrowth issues weve been wanting to get across the table, if that happens, i think youre going to see a great 2015. If, on the other hand, you see some folks say, hey, wait a minute, we want to make sure we kick the can so we deal only with republicans in the senate, and we can deal with the Republican Congress, then that that gets complicated. Eric, heres the question. Joe biden, a friend of yours, does he have enough sway to persuade the president on Something Like immigration . To hold back or to find a way to do something that feels a lot more like compromise . I would hope now the signal that the president takes from last night is you have got to end but who is around him that you think, if you dont think he, on his own, will make that decision, who would have the influence to do that . Andrew, ive seen articles written that gibbs, they a all out of favor. More isolation. Thats what im trying to understand. Put us in the room to explain how who is advising Vice President biden knows capitol hill. As we know, hes been in that town for i bet almost 40 years now. He understands people, knows how to make a deal, and 23 the president is intent on trying to change the response to last night, i think hed be well put to say that Vice President this morning, go, lets see way we can do to Work Together, bring both sides together. I mean, in the tax deal that finally got done bidens the guy who makes stuff happen. Decided that gay marriage was okay, and the Administration Takes it. Talk social issues with you, youre not running for election now. We can see how you feel about this stuff. You know, joe, i have said on this set before that the mission for the conservatives and the Republican Party is to make sure we broaden our appeal. Yeah. It helps to be able to get elected so that you can govern. I mean, if you stand by your principles and, you know, i dont know and then youre not elected it helps to get things done. I think thats the critical piece. Dont abandon the principles, but move with society and look around. Cant be in the 18th century as a republican for the rest of your life. You have to be tolerant of diversity of others on both sides. On both sides. Republicans have to decide who they are in 2016, you know . The next two years gives us the ability to put out there and see what we stand for. Last night was a repudiation of whats going on. A repudiation of incumbency or the president . Progressive policies, it was all of those. All of the above. I think youre right. Much more with leader cantor, and youre going to be there i have told you that ive years ago back then. You say dont, you say, yeah, yeah, call me that. Well, thank you, eric. Well continue with eric in a bit. When we come back, though, the senate turns red and gop picks up more seats in the house. Will this just mean more gridlock, though, on capitol hill . Ford, jr. , the democratic response, and power for men and women. The most power. Thats next. Squawk box returns 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. 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. Watching the futures, and after the midterm, things picked up more, and dow futures up 71 points above fair value, and s p up 10 points, and nasdaq up by 19 points. Among the stocks to watch today, time warner reporting adjusted Third Quarter profits at the 7 cents a shear, three better than the street expected, and Strong Revenue growth for turner broadcaster and hbo. Talking about the fallout from the Midterm Elections this morning. The big turn, republicans grab the control of the senate, and joining us now to discuss this and balance of power and potential field for 2016 as a result of all of this, harold ford, guest host, eric cantor, giving us a bipartisan version, but, anyway, the democrats this morning cant be too happy. Do you look at this as a repudiation, if you will, of the president . First of all, good morning, and good morning to my old pal, eric. I think its hard to disagree with the way that eric described what happened last night, and theres going to be a lot of autopsy and appraisals. Main thing is do what you are doing this morning, look ahead. If i were to advise the president , and hell give remarks later this morning or early afternoon, he has to take responsibility and say all of washington understands the resounding message sent by voters across the country. This is not unusual for voters in midterm and president ial elections to send big, big messages to washington. Hopefully they get it. I think the country wants republicans and democrats it work tailgate on all of the issues you have touched on this morning. I was pleased to see mcconnells message and reids message last night, different tones, but both interpreted last nights results as the country urging them to get to washington, Work Together, get things done. I hope, if, indeed, if the president disagrees with the Republican Congress on energy, trade, taxes or any spending or defense spending on changes to defense policy, he offers acceptable alternatives to the congress in which they pass or find compromise on. Hey, harold, its eric, good morning. Good morning. I would ask you good to see you always whether you think the president and white house are willing to take your advice . I would say specifically, you know, what has gotten a lot of republicans upset is the unilateral moves by the executive branch and president , and theres reports hes doing that on immigration shortly, and you can imagine that gets tempers flairing in wash. Will he refrain himself and the pen and phone route . I hope he does on a variety of matters. I hope theres compromise. I think one of the things we have to watch for in the senate, and i know eric has not been in the senate, but ran the house, but i hope and i said on the network yesterday that the leader of the republicans is not the cruz wing of the party, but the portman wing of the party. If thats the case, eric, theres room for agreement and compromise to be found, and, you know, certainly hear voices like mine, moderate democrats. Its harder if cruzs voice or wing of the party is a dominant force, for that matter, the negotiating wing of the Republican Party. Harold, you know, this is cnbc, not some other network. If you were thats a joke if you were answer me honestly here, youre on a continu continuum. Portman here, president obama here, where are you . In the middle . Leaning towards the president in terms of Economic Policy and private sector . Morgan stanley as well, dont forget, i know you know that, but closer portman or obama . Seriously . Depends on the issue. Joe, im a democrat. Youre from the south. Youre morgan stanley. Youre i think youre thats equal distance, my friend. Im a believer that markets and business are critical to creating jobs and creating growth. Okay. You said portman then. You said portman then. You just said portman. I heard you. The president s done a good job he didnt stop it, but the market has grown. He didnt stop it. I would agree, joe, but lets look, theres good things that happen. Now, to your question. I know where you are going. We need compromise. Portman is one of the voices, representing the most important factions in politics this morning. If the president and white housements compromise, its portman and that wing of the Republican Party in the senate that gets it. Eric asked a question, do you believe the portman voice, wing, and used rob as a metaphor for an approach that i think he file many times in the congress, do you think thats the wing that leads . Or cruz . Alarmed it hear cruz not publicly saying he would support mcconnell for leader. I dont know if hes running or leading a renegade effort. Thats a critically important question as well. Where are you . You know as well as i do, i try to affect results. I was there pleading with a small minority in the caucus and house saying a government shut down is not a good thing, to sit here and play with the debt ceiling in our country was not a good thing, so i think you know that im much more about trying to advocate for results. I think that is what the electoratemen electoratements. I agree. Our republican brand needs to be focused and to say, look, we are about trying to be there for the working middle class and for the progrowth advocates in the country. Work with us. One question yes, sir . About the democrats. So becky raise the issue of the magazine the nation this morning and the position theyve taken. The new republic this morning, headline, obama lost the battle for the senate, time he waged war for rio, they say. Just two weeks ago, you had Hillary Clinton out campaigning, making observations and comments clearly antibusiness, clearly more to the left and more progressive. Does this really change things for them . Well, fortunately, the nation magazine and new republic are not innocent. I heard that email this morning. I do not align or resemile my politics do not resemble those remarks when he speaks whether this state or washington or the capital, and you grow the economy and make the country safer. No doubt that ebola and isis contributed to what voter the Democratic Base is now being led to some degree by sort of the Elizabeth Warren regressive thats where you dont think thats where the base is now . I have not hear the case that the new republican and nation those editors write magazine editorials, and where i come from, bless their hearts. We have people now charged with leading the country. I think this president , well learn a lot today from the tone and from the substance. This morning, im a believer. We have to find ways to Work Together to find compromise in trade and taxes and energy and immigration. If, and, again, 23 the portman wing of the Republican Party is leading, i think we have a real opportunity, and im one of the democrats critical of democrats if they choose not to. Okay. We look forward to seeing you again. Bless their hearts, we know that what means. Yeah. Coming up i like you guys out of the politics and in the private sector, but sometimes i think we need guys like you. I dont know. How do stocks perform after the midterms . Well have the numbers and that could mean more records frustrate s p 500. Well be back in a moment. Im new ensure active clear protein drink. Clear huh . My nutritional standards are high. Im not juice or fancy water. Ive got 8 grams of protein. Twist my lid thats three times more than me. 17 vitamins and minerals. And zero fat hmmmm. You bring a lot to the party yay new ensure active clear protein. 8 grams protein. Zero fat. 17 vitamins and minerals. In delicious blueberry pomegranate and mixed fruit. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Still to come this morning, crude oil hitting a three year low. Prices could keep falling. How much pain can the oil patch take . Plus, the price of gold trending lower. How this plays out for investors. Talking about that next in the trading box, and squawk box will be right back. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. I take prilosec otc each morning for my frequent heartburn. Because it gives me. Zero heartburn prilosec otc. The number 1 doctorrecommended frequent heartburn medicine for 9 straight years. One pill each morning. 24 hours. Zero heartburn. Welcome back to squawk box, among the stories front and center this morning, president obama holds a News Conference at the white house this afternoon, after the Republican Party swept the Midterm Elections to control both the house of congress and the senate. Pimco reporting a record, and the firm comentinues to see mon pulled after the surprise departure of bill gross. 98 of drivers say they know about the dangers of texting and driving, but try quarters of them admit to doing it anyway. Findings released as part of at ts antitexting and driving. Use the dictation, and, in fact, you can use it where you talk into your radio, and it comes out. Can i make a quick observation . Yeah. Doing that and talking on the phone while youre driving is supposed by the equivalent of driving drunk, they say. Should you talk to people in the car if you have other people in the car . Is there a line anywhere . You talk to other people in the car is different than talking even on the headset on the phone. It does something cogtively different. I believe that. You have to change the crazy words the phone comes up with, like, what . Some of the easiest words, and thats what you come up with . Find out how stocks perform following Midterm Elections. Chu has the number, and it looks like things are strong, and thats okay, dom, whatever happens, thats good when stock prices go up. Can we expect that . We can. Heres why. The distractions for investors for cell phones and cars are whatnot are slowing economies, geopolitical risks and whatnot, but certainty of elections every four years, we know they happen. S p 500 all the way back to 1946, sam stovall said he crunched all the numbers, went to every single Midterm Election going back to 1946, there was 17 them, and on average, the s p 5 00 goes up by an average of 17. 5 in the months between october and november. If you bought in object on the s p for the years, you would be up. Heres the interesting part, not once has the market been negative in the 12 month span between october and october. Its batting a 1,000. 100 of the time you make money in the s p all the way back to 1946. Thats why investers are bullish regardless whether republicans won or democrats won. Thats why they say sometimes the best strategy is to just buy the s p 500 around midterms and hold for a year. Youre always going to make money. You have in the past, and, remember, joe, past performance no indicator of future performance, but, still, the bulls say historys on their side for 70 years. Back to you. Yep, all right. Thank you. This still me . Thats becky. Yep. Crude prices sink to the three year low, and gold at a four year low, and stocks at record highs. Time for the trading block. Joining us on oil, matt smith, commodity analyst, we have frank holmes, and on the markets, we have jim, director and cnbc cricketer, and, gentlemen, start off talking a little bit about oil. Thats what i want to go to first. Matt, where do you think the bleeding stops . Oh, my gosh, yeah, were going to have a few more weeks, really, of up certainty. We got three weeks one day to go to the opec meeting, and that shows weaknd were seeing considering we had two days of the crude market getting clobbered, and we really cant manage to crawl into positive territory yet today, and so we are really going to continue to be volatile ahead of this opec meeting, but probably airing to the downside somewhat begin all messages we got from the Cartel Members are bearish. What if we break below 75, then what . Well, i think well probably gravitate around the area. I dont think well move below 70. I think thats just going to be too much buying interest. Theres so much talk around at the moment about the break evens for shale. You know, the secretary general of opec said that 50 comes offline if prices stay at 85. The irea is saying that number s lower than that, but consensus seems to be we would see the impact if prices are sustained in the 70 area, and that puts a flaw in the market. Go ahead. Just looking at it in a falling knife, not not below 9 o, wont go below 80, wont go below 75. He said 70, though. I heard 70, gave himself breathing room. The matt, theres no way that that is no way this is the enof some megasuper cycle. You know for a long time, oil was where everybody was trying to make money because they couldnt make it. It was financial. It was not necessary Global Supply and demand, but financial types in there. What is the true value of a barrel of oil . Do we we were convince ed it was hundred eight or nine months ago. Absolutely convinced that was the value. Any way the value is 60 . By all means is, it could well be higher than that, joe. What we had higher than what . Higher than 60. Any way it could be lower than 77 . The thing was, joe, back six months ago, 100 was defended by opec. You know, you have venezuela, iran, saudi, russia, all the countries that need the high oil price, and even in the last three weeks, sau drdi were not defending prices, but market share instead. Thats what i mean. Defending a price is different than what something is worth . Maybe well never get to the actual, you know with Everything Else being equal, the supply demand, what the thing is worth. We still need a Million Barrels a day. Next year, the year after that, the year after that, higher each year to keep up with demand, and so, were going to see production come offline because of the lower prices. I know, we keep hearing that at 85 and 90, so im wondering. Hold in there, joe, have the faith. I dont want it to go up, but down to 30. Joe, what do you think of the domestic outlook . Its great. That really goes to the point. What is the value . What is, though, my question would be, i mean, the impacts of all the increase in production here, this congress may very well look to certainly engage in policies on say, gas imports, but what about oil exports, lift the ban on that, whats that do to pricing . What happens with a tail wind rather than a mild head wind which we have with obama . Were all in on public lands, keystone, what happens . Unfortunately, though, it costs more to get a barrel of oil out of the ground here, between 6 and 65. So there is a point wells are shut in. You say that, but part of the problem now in the tight formations, you have trapped crude because you dont have the transportation ability to get it out to the population, and the congress may very well look at the possibility of lifting the ban on oil exports. Refind r refineries here may have a problem with that, but lifts the problem fdomestic producers. Crude is at 400,000 barrels a day shipped up to canada on special waivers, but we see 4 million a day leaving the u. S. In terms of products, and so we are likely to see more being exported. This sort of lightly refined oil that the well has, that then turns it from a crude product you cant export to an actual product that you can export. We are exporting 4. 5 Million Barrels a day now. Talk gold quickly, what happens . Is the hay day for gold over . Well, i dont think its over for a couple reasons, and two is right now whats driving gold down now is the strong dollar. Thats the fear trade. Any time you had a strong dollar, gold comes off. The other key component, the love trade, is the gdp growth. The real growth takes place in china, india, southeast asia, and the middle east. That is then slowing down, has the impact, and we go back to the peak at 1100 sorry, in 2011, gold hit 1900, you had both factors, strong global gdp growth, real growth, and you had the fear of the u. S. Dollar being downgraded, and you had gold all the sudden spike to 19 00. But is that is that a scenario you see replaying . Thats the aftermath of 2008 and 2009. Is gold more likely to wind up in this trading range somewhere between or lower. A thousand and 1200 or do you see it ever getting back . Yeah, whats important to realize is gold goes up or down 17 with a notary publnevent. There was a big rally in june when the u. S. Dollar was weakened and negative real Interest Rates. Now you have positive real Interest Rates again on the 10year government, the five year still slightly negative, and that impacts the price of gold. It is an incredible Arbitrage Trade between governments here. Bet it never hits 800 or not . I dont know. I dont bet that way. You know, i youve been staying long. Youve. Staying long. Weve been busting on you for a year now staying long. Weve been, you know, giving you grief about staying long, going lower and lower. Yeah, but it has also a spectacular rally, joe, and i advocate a balanced fog tor and motion money in the stokt, but in 2007, gold was not a thousand dollars and paid 35 times for gold mining companies. Today they pay five. Emotional sentiment is so bearish on gold stocks. I think thats where theres incredible values on Companies Like nevada, a Royalty Company with 70 gross margins, theres a yield higher than a fiveyear government. I think stocks like that are important in portfolios. Jim, stocks quickly. The futures are indicated higher after the Midterm Elections shows gain for republicans. What do stocks want to see over the next two years . More of a progrowth policy here. I think that dom said stocks are up after the Midterm Elections. People run to the dollar, sell g gold, buying stocks. They tell us today thats a good sign. This is in the shadow of unemployment numbers friday. If they are a disaster, all bets are off. Were talking about possibly the fed coming back. I dont think thats going to happen, by the way, and the dollar trade swings and got is higher. Were not giving credit, and someone else said the dollar trade was the fear trade. No dollar trade is delivered by policy because things are better heen, and if the ecb goes dovish. This, this morning, is more fuel to push a trade going in that direction, but this is good for stocks. All right, gentlemen, thank you, all. Thank you. Still to come, oil and we just talked about this oil and natural gas from shale bases are a a boom for u. S. Energy and falling prices. Jobs in jeopardy . An indepth look at that at the top of the hour. Next, check out these faces, the worlds most wellknown leaders. How would you rank them by influence . Who is the most powerful . Well give you forbes magazines top four after the break. Location. Location. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. 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. Alriwe need to do somethinguble widifferent. Ranch. Callahans . Ehh, i mean get away, like, away away. Road trip . Double wings, extra ranch. Feels good to mix it up. The allnew, fuelefficient Volkswagen Golf tdi clean diesel. Up to 594 miles of adventure in every tank. Before the break, we showed you six of the most powerful people in the world, the pope, putin, president obama, mark zuckerberg, and four of the people made the cut according to fobs ranking. Here with the list the executive editor of forbes, lets start with the top four in order. Number one is vladimir putin, the president of russia. Number two is barak obama. Number three is ping, and number four is pope frap sis. That order is unchanged from last year. This list is compiled by we have a panel of seven forbes editors including forbes china, forbes russia, here in the u. S. , vote on four elements. Its complicated, but thats the ranking. So i could if i could vote, and i think you couldnt have waited to the election for obama . You know, the results if i could vote, i put jrg i jinping at number one, and putin is one because hes crazy doing crazy things now so were aware lost ta lot of power. I suppose if he decides to go completely crazying you would think hes the most powerful person. I have to say the chinese political system is such hes not going to go completely crazy while the russias political system is such that he has, in fact, done that. One of the things that we asked the editors to look at in addition to Financial Resources and things like that is scope of action. The fact of the matter is we look at putin world until 2024, and hes pretty much proven. You know, last year, we got a lot of heat for putting putin in his place. I had to defend him in a couple why the president . Hes not powerful in his party anymore, seriously. Europe is still Worlds Largest economy. Cant get his party to stick with him. Amazing the president of the United States is number two. That is shocking. Let me ask you, two people off the list were yellen and zuckerberg. Just number six politics trump business . If you look, theres 72 people on the list. One for every hundred Million People on the planet. Its a small world. Theres actually a lot more Business People on the list because forbes, you expect only ak sieve business guys, gates in the top ten. Whats the highest a fed chief has been . I think theyve never cracked the top five. Yellens six. The ecb draghi was ahead. Dunlack is on. Isnt that interesting . 69, hes at the bottom, a future about him in the magazine. Hes the new and were just watching i saw the pimco outflows, and hes undoubtedly the most powerful man in the bond market. You took the google guys apple, the biggest company. We are looking at what we call an innovator entrepreneur premium. Jeff cook is a hired hand. Hired hand . Yeah. Bieber . 74 out of 72. Beieber is . 74 out of 72. Theres no pop stars. [ laughter ] joe . Who . Bono . No. Thank you very much. I know its fono, i know, i know. Im speaking to myself. Thats whats its come to. Talking to myself. More from eric cantor including live from the private sector, and dont forget about jobs in america. The adp employment report coming up at 8 15 eastern time. As we head to break, heres a look at the senate, how it lookings a day after the midterms, more races yet to be decided. Sidewalk box will be right back. 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. 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 . Its in this spirit that ingu u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. Welcome back, everybody, turning to our guest host this morning, the former majority leader, eric cantor, and weve talked off camera a lot what to expect. Some say gridlock, others say compromise, but we spent time talking about the worst Case Scenario. What is the worst Case Scenario . Well, the worst Case Scenario is if the president goes ahead and signs the executive order on the immigration move hes been talking about. That will light a fuse, id think, and will really ag strait on capitol hill. Republicans said, did you to the hear the election . We have to Work Together. Not unilaterally act. I think if the republicans, and i know my former colleagues in leadership and most of the members of congressment to complete the spending bills this year, but there may be a small group, a minority to thwart that saying we dont want to complete anything, just kick the can in the next congress so we dont negotiate with reid one last time. If that happens, i think equally there could be trouble signs about what to expect in 2015. This is a vote that has to be decided before december 11th, just in terms of government funding the next time around. Youre right, i see people saying forget about it, deal with it in january. Again, you got Unfinished Business from congress, and typically, you come to the election time, thats what happens. Continuing resolutions have passed. Temporary spending bill, and then it expires on december 11 th. The question will be, can congress complete this years business . Theres a lot to do in 2015, plus things i think people want to see happen in terms of progrowth policy. Are we going to see some movement on energy, on trade . Are we going to see some movement that get the economy going again . If we cant finish the business this year, i think youre going to have a lot in the wincluding progress people want to see. Coming up, lower oil and gas prices good for the wallet, but disastrous on jobs in america . Speaking of jobs, the impact of jobs and oil at the same time. 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. Ye yes we have the new iphone. Cause everyones coming in for the new iphone. Whwhat. Kind of service plan can you get . Well right now if you select the 15 gig plan well double your data and make it 30 gigs for the same price. Well that great youll take it. Are you inside my mind right now . Nope where was i. Albuquerque who was the porcupine what is my fave hollandaise sauce no way. The new iphone is here. And now you get 30 gigs of data to share starting at 160 dollars a month. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov midterms and money, how markets react to republicans victories. Price of oil slides to three year lows, but how low does to go before it takes its toll . Speaking of job growth, an early read on hiring in object with the adp private payroll report. Third hour of squawk box comecome begins right now. Welcome back to squawk box here on cnbc. Im andrew with joe and becky, and guest host is eric cantor, now, of course, vice chairman of the investment bank, and thrilled to have him the day after the Midterm Elections. Lets get you a road map of what to expect. This is a big hour ahead on squawk box bringing you a run down of Midterm Election results and Key Senate Races you might have miss. Oil prices hitting the three year low, and that could mean problems for the Energy Sector. At 8 15 a. M. Eastern time, adp payroll numbers expecting a gain of 220,000 private sector jobs for october. Also, michael dell own why he was happy to leave wall streets influence behind taking the name sake company private. Okay. Lets get to the midterms. Chief washington correspondent joining us now with a break down of the results from overnight. John . Well, andrew, the short story is it was a great night for Republican Party, all across the country, and senate races and gubernatorial races, but the thing we were foes kused on was the battle for the senate. Where it stands now, you got republicans at 52 seats given what happened last night. Democrats at 44. There are two outstanding if you believe in miracles as a democrat, get up to 46, but those are also where mark has been trailing significantly, and louisiana, very conservative states where mary faces a oneonone runoff with the republican challenger compared to having it multiple conservatives dividing the vote yesterday. How do they do it . What were the pickups . Arkansas, mark pryor down, colorado, a state obama carried, mark udall was defeated. Iowa, another obama state in two president ial elections, joni beat bruce braley, montana, of course, that was exacted, and north carolina, a lot of hope here, she could not hold on, and two others, you got south dakota, of course, a very red state. You got a brief flurry when you had larry running as an independent, and West Virginia where shelly wins the seat from rockefeller, the retiring democrat. She wins that handedly. I say that because we were in college together and she dated one of my fraternity brothers. You have the house at 250 seats at this moment, the largest majority theyve had since the 1920s. Democrats are at 185. You still have some give in those projections because not all races are decided, but what you got is a strength in john boehner as the house speaker, microphone mcconnell with more votes than x. Ed going in the election with a majority, giving both leaders more flexibility to push back on some of the renegade members of congress, although, the renegades will be emboldened by the size of the victories. Thank you for that. President obama holds a News Conference today at 2 50 p. M. , eastern time, we have full reactions of the elections, and well see which way he seems to go with all this. Oil prices, one of the big business stories in the past six months in terms of the price of crude and Energy Renaissance in the country, but the crude prices plummet to the three year low, good news for consumers at the gas pamp, obviously, and concerns mount about when the sharp drop in prices impact the boom seen in america in the jobs in that sector. Meantime, theres evidence this morning that a long standing federal ban on crude exports is a thing of the past with the lead story in the wall street journal, set to be the First Company to ship oil from the u. S. , and without formal permission, actually, from washington. Joins us now is the former governor of pennsylvania. His state boasts close to 2 00,000 jobs have been created as a result of fracking and the industrys needed to support it, and, you know, our own becky quick is one you know, as far as i think we have her now able to export we have enough now, right . Thats the agreement made with ukraine cant horde it. I dont know. Charlie says you can. He wants to use every elses and be the only one left with it. Governor, youre definitely there are people in the party who look at you and must say, what are you thinking, at times about your advocacy here, no . You should see my twitter feed. I get pounded from the left all the time. First, its important to make the distinction between shale gas and shale oil. Shale gas has multiple uses. Just doesnt go in automobiles. It is stock for the Chemical Industry and produces electricity. I dont think theres a problem with continued shale gas exploration. Theres just so many using for that that and ill we can start exporting shale gas as well, and certainly crude oil, the time has come to lift the ban, but i think we want to focus on more than the short run. I think prices will continue to flux wait, but as energy and populations grow, as more and more countries become developed, theres an increasing demand for energy of all sorts. I think this downward trend is a blip, and i think weve got to be dead set and determined to create Energy Independence here. That means continued use of shale oil, shale gas, as well as alternatives. We can be an energy exporter. We can make money off of that. We can do something about the balance of trade. We shouldnt let the temporary blip, you know, discourage us. As more people come on board, as more nations develop the need for energy is going to increase. Watch how i do this, ed, because, i mean, youre here. We might talk about other things besides energy after yesterday, i think, but starting it this way, so the house in the senate, this new senate, passes a Keystone Pipeline bill. Whats obama do . Well, what i would rem to the president is before they pass the bill, bring them in and say aisle sign the Keystone Pipeline if you pair it with the production tax credit for alternative and renewables. I think we need an allin energy bill. We got to sit down, do this matu maturely, and Keystone Pipeline, im for it maturely . Woah, that might be a problem. I dont know. Seriously . We have an opportunity for an allin energy bill, guaranteeing american Energy Independence for five or six decades. Okay. I want to broad p en is out wit eric cantor, and i dont know you know governor rendell. There was a time, i thought back then, republicans thought it ushers in 20 years, maybe 50 years of conservative dominance. When president obama was elected, finally, progressive era would be here, 25 years finally saw the light of how to help the people in the country. Is there something about where we are in you mentioned twitter in this world, instantaneous world, is it a two year siegle all well ever have again . Two years, say, what we were thinking legislating all the republicans, and in 20 14, thats what we said in 2008, then 2010, then 2012, and it seems like, you know, either these parties shoot themselves in the foot, or, you know, our mentality is short term at this point. Well, youre right. The incredible state of our communications makes it much more difficult than 40 or 50 years ago. No question about that. But the republicans have a real opportunity here. They now are in a position to govern. They are now in the a position to act maturely. Thats important. If they do that, i think they have the opportunity to at least hold the congress for a long time to come. You think Hillary Clintons a shoein in 2016, dont you . For the nomination, but if you run a candidate like a jeb bush, its going to be a close election. Why would you tell republicans that they have the right thing to do, not like saying, hey, you have to run mccain, run romeny. How do we know i know what you want, why tell them the right thing to do . I dont believe you. I permly am from ted cruz. Haha youre yanking my i will send him a check. All he has to do is ask me. Governor, i say theres republicans who would say were for elizabeth wairp. Yeah, exactly. Yeah, absolutely. I happied warren raise money, a good person, and theres a need for elizabeth warp in washington. If she were our nominee, you could say law professor, in the senate for less than ten years, that sounds vaguely familiar. Well, governor, i dont know, i just think that, you know, some of the kinds of things that shes about when she talks about business the way she does and condemns those who are in the investing world saying, hey, we dont need any of that. I dont think thats where the American People are. I think the center right and left of the country does not want this kind of divisiveness anymore, and i think partly thats what last night was about, how can we be in this together . Yeah, theres something to that there, eric, but i think Elizabeth Warren raises issues that ought to be raised in the country. I think what happened in the wall street, you know, it was disgraceful. I dont think theres been people paying for it the way they should, and in equality, i heard you speak. Youre troubled by income inequality too. Theres a place where warren with a body of a hundred people, no question about that in my mind. I dont agree with what she says, but theres a place for her. All right, governor rendell, eagles are doing great. Thanks, guys. A look at jobs from adp. Stick around. The Conference Call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Welcome back, everybody, watching the futures, indicated higher this morning, and the futures for doubt indicated by 84 points, s p up by ten, and if you watch the note this morning, at least right now, the yield is sitting at 2. 36 . We have private payroll data out, and steve leaseman has the numbers. Ahead of expectations, 220,000, and in line with the estimate for the friday jobs with we were at 233,000, and the reason we are not adjusting these days because Government Employment is not declining. Its flat, slightly up, call it up, 5,000. If the adp is correct, then the bls number friday should be around this number. September reviced up 12,000 to 25,000, and good sector up 48,000, Services Strong at 181,000. Lets look at the places where there have been job growth. Small business serging ahead, 10 2, great month for medium size. Look at the screen there, construction, that was a good number. Up 28,000. Manufacturing half of what it was, up 15, and transport utilities, and broad based business, but if you look by business size, which you see is up 122 on medium business, a good month for that particular size, 50 to 500 Small Business up 102,000, large, not carrying its weight, large greater than 500,000 workers, up 5,000. Adp has been doing well. The three month average absolute difference. You can see if its lower to the right, that means they are closer together, and its been doing a good job, down into, like, a 20, 25,000 monthly absolute difference, so when did she take over . A year ago, had the spike there, but it look like its improved a bit in terms of the i agree that he has, you know, can concern himself with doing all of these things like this, and people away from the policymaking side of things with the stimulus designed, but spent a lot of time just crunching numbers and getting what i need to ask here, one thing one thing. Am i going to shave my head . No, you know no, no, no, you know theres app election coming up. Which just had it yesterday. No, im talking about 2016. Youre already in the throat. Ive started. Youre done Christmas Shopping right . Did you mark the time . No. Theres a theme coming. What do they want in job growth in the economy . Ask this guy. Does Hillary Clinton have to be relegislated oh, my god. Kill me. Kill me, someone put a gun no. Does she not really. Will the democrats win the white house again if the economy continues at 250 or 300 . Just an asterisk on the question, due at 300, 250, the numbers at the polls, and the notion of economic expansion not getting down to the middle class say it does. Remarkable. We moved into higher growth. Its higher growth. Its the wage issue, right . This whole concept of why are people upset . Real wages have not started to accelerate the way they ought to. Theres been some evidence in the last coupling months that weve seen wage. A little bit. That could help spur consumer demands, that could bring about a more robust economy. Yes, i think that if you get the middle class feeling more confident how does the Republican Party react to results at the polls when it comes to the minimum wage . I note all of them were less than what the president asked for, all by a state level rather than federal level. States do it. The interesting piece is, right, the state ballot questions. You may see a lot of initiatives on the part of the Democratic Party saying, hey, we get to go put this on the ballot. Now, youve seen Republican Senate candidates say its a state issue. Theres broproof to that. I agree. Whether they hurt businesses or not, higher wages in the state its different everywhere. Never made sense to me. Border states that you create complicated issues there. Thats right. You have since gn cincinnati, across from kentucky, all those places, where you have issues. Thats a region for federal, but maybe not enough of a reason to do it that way. I think states have been competitive with one another about attracting business and creating, you know, competition for economic growth, and thats going to be the trend, and that ballot initiative, i suspect youll see more of that. That issue you wanted to raise. Yeah, you think i prefer prefer what . The election coming up you were darn close, youre darn close. It was 8 it was after the adp report in october. Mentioned it earlier today saying theres an election coming up 37. I didnt know what you requester talking about. I want to be first, though. Talk about the new Senate Dynamic of the republicans. Theres been several prominent senators critical of the Federal Reserve that obama has two new appointe appointees, nominations, put you on the fed, and they wanted to strip the fed, and rand paul me mentes a bill to audit the fed. Is it an issue . If it is, does president obama veto the bill . I think its a good question and broader from the judicial and executive appointments calend calendar, reid may kick in full gear now to dispense as much as he can before he exits in december. I do think that there is some ability now for a Republican Senate to start to influence not just monitory policy but regulatory policy. How much influence do they have over the fed, though . Well, thats what im getting ready to say that the fed is one thing, but the regulatory i think thats where you may begin to see some agencies react to the new senate prominence as far as republicans are concerned, as far as approving additional appointments and the rest. Theres a lot of folks upset about the loose money policy. You know, if we can see, you know, continued course that were on in about, you know, getting rid of qe and trying to go in and being more con receivertive on mop tear policy, i dont know how thats going to play out. When you say regulatory do you expect some efforts to roll back or ease restrictions right now . Well, i would hope so, honestly, and i think theres many house bills that passed over the past year that ened up in the culdesac in the senate. A lot of dodd frank tweaks, if you will, have to do with distinctions between end users and the use of the financial instruments, but it said to smaller businesses, why saddle the Smaller Banks and the smaller financial interests with these huge burdens dodd frank places on them. The interesting piece is what about cfpb . Right . With Consumer Financial protection board, inside the fed, bitterly opposed by the republicans. Republicans didnt want to fund it. Interesting question inside the fed. Theres no oversight right now as far as congress is concerned, and what will the senate do . What does the house do to pull that in under some accountability . Taxpayers want to see that as well. Elements of dodd frank in ways what do you mean . What needs rewritten . Its a tough thing to rewrite it legislatively. For example, the whole question about metlife and whether Insurance Companies thats a bill the Senate Already approved, the house, i bet in lame duck, the issue will be addressed on the question about metlife, and that is something systemically important abbreviations. Sifi is the Foreign Investment in the u. S. Okay. Steve, thank you. My pleasure. Mr. Cantor sticks around. When we come back, sticker shock, sour grapes about a wipe bill in the Atlantic City restaurant. The battle for pc dominance, michael dell joins us on the first year since going private and happy to be done with wall streets influence. Stick around. Well be right back. How much money do you have in your pocket right now . I have 40, 21. Could something that small make an impact on something as big as your retirement . I dont think so. Well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. You can bring back from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. 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. Case of severe sticker shock. Wow, that was close. In atlantic that was very close. Sticker shock. It was almost sh yeah. Okay, pieces. A dinner at bobby flays steak hotel and casino asked the waitress for a wine recommendation. The customer says the waitress suggested a bottle for 37. 50. Andrew knows what they means. When the bill approved, the price, meant 3750. The restaurant gave him a discount negotiating the battle down to 00. How was the wine . He said it was not great, it was not terrible. It was fine. That could happen. 3750. You know what . I dont know whether they sell wine at a restaurant for 37. Oo honestly. A half bottle. Not a full bottle. Do you assume it means 3,750 . Depends on where you were and who you are. I would have. I would have just had a cup from yesterday. Coming up, what the election means for your money. The s p in the 12 months of the year following a midterm is on average up 15 , should investors continue to speak with republicans in charge of congress . Well debate that when we come back. Welcome back to squawk box, everyone, stocks on this move this morning, time warner beating top and bottom lines. Its a strong growth and revenue for the hbo and turner broadcasting units. Beating estimates, revenue fell short, but the snap maker raises Earnings Guidance for the full year, stock up 6 this morning, a little above that. New skins earnings and revenue better than expected, but the Current Quarter forecast below estimate, and that stock is down 2 1 in the frpremarket. A former bank ceo says he led a double life as a cia agent. Crazy story. In an interu view, ed hale found himself in the hunt for bin laden, a former chief of First Mariner Bank suggests the day job of a perfect cover for the cia. He was all over the world. Whether in vessels and trucks. Why do they say that . It was the perfect. You now have people sus pecking every banker out there is a cia double operative. Working with joe nacho. Wasnt he for a while . No. They were no, he was working with the government because of the lines they were using. This guy too . I dont know. Again, why do you say Something Like that . Not suggesting he was a spy. You put every banker out there at risk. They look like they a are an operative. That picture. He has the cool secret agent look going. Desperate for attention. Looks like Michael Keane or something, doesnt he . Anybody wearing a turtle network, the good air. That is a dead give away. I believe the guy. On a baltimore tv channel . Whats wrong with that . First of all, people who do this keep it silent for the reason for the safety of the other people out there doing it, and seg of all, you have operatives all over the place looking and calling americans very emotional response. Passionate. Someone could get killed, somebody not in that position because of saying Something Like this. According to the producer, he has a book coming out. Oh, that makes much more sense. Explaning it. Do you remember secret agent . I do. People put their life on their line and its a selfless thankless task. How do you feel about mark seal, the fellow who wrote the book about the bin laden at least that was not an undercover position youre coming out to talk about. How do you feel about it . Look, i think theres a lot of interest in the you just the leader of the house . Was that all you were . You sure . Was that a cover . This new role, going around the world with vessels and trucks. Yeah. Watch yourself. Sweeping win for the republicans in the Midterm Elections, but how do the markets react . Joining us now, chuck gabriel, good morning to you. This morning, we brought a lot of statistics this morning, chuck, about what happens post election midterms to the market. We have suggested that the math demonstrates the market goes up, in some cases materially. Do you buy that . Yeah, andrew, if nothing else, negative ads cease. You know, we are headed into by definition, heading into the third and fourth year of what we call the president ial monetary cycle. Its the best two years of the four year of any presidency anyway. Theres truth to it, for sure. When you say some truth, thats the question about these numbers and how they relate to election cycles, how much do you put on that versus if you actually were to spend time looking at the different periods that these numbers are calcul e calculated from, and whats going on in the economy at large . I think thats much more important. I agree. The fact that we had such an unexpected and very sharp recovery rally in october, means that were were going to be somewhat testing the envelope here near term. If nothing else, look back, this market rally sense 2009, is a wall of worry from another. We just removed a wall of worry, and the ebola strains are fading, and its interesting to see what feeds the market. Amazing the ebola stuff is straight off the front page until it comes back, if it does at all. Being in the business, when does the 2016 election season start . I started already, chuck. Am i jumping the gun . I said at 8 16, we have an election coming up, therefore this. Have you used the terms yet, we have an election coming up, so whether do you do that . Its not too early to start. I agree. Were already basically, you know, giving grades to christie with recruiting gubernatorial candidates. How it affects hillary, going to arkansas, not attracting candidates, its in the prism of the election. I think Hillary Clinton ben fi fits here because of the wipeout for the democratsment i think she has range of movement rather than being pressed by progressives in the party, the bash banks and student loans, i think shell have a little bit more flexibility to move to the center. That should be helpful to her. Interesting point. Were talking about it. Ask the question about whether its too soon. Were taking it as a serious question now. Real quick, though, chuck, in terms of your sense what happens next that the congress and how that achgts what happens in the market, is there anything on the table that takes place . I think the cast of usual suspects held out in all shows this morning, trade, taxes, Immigration Reform, taxes is interesting because you have a Nice Alliance merged between senator hatch and wyden, and congressman cantor, former friend, paul ryan takes over the house ways and Means Committee to add star power there, and you could move a bill with a 51 votes, and the president has to back off demands of territoriality and pushing any savings back into a stimulus bill, and republicans have to reduce the scope. Chuck, thank you so much this morning. Cheers. Well talk about 2016 with you well, we already did. Say were going to because its embarrassing, but we are, and we are going to. Coming up, taking the name sake company private, michael dell was happy to leave wall street behind. He will join all the clowns in cable business tv to talk about his dpaens plan. The take on hp. Was that the word . Clowns . On ibm. Circus clowns that we are. 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, orbital Science Holding a Conference Call as we speak on the explosion of the rocket last month that was to bring supplies to the International Space station. The company says ef suggests one of the refurbished engines was theexplosion. The dell convention in full swing taking over in downtown austin. As a private company for a year now, dell is set to be on the attack taking on hewlettpackard and ibm. We have the chairman and ceo of dell, michael, great to see you this morning. Great to be with you again. So i know its been a year that youve been able as a privately held company, away from the publicly held, away from the trappings of wall street, how does it feel . It feels great, you know, we are demonstrating here the broadest range of solutions weve ever been able to create, pouring tremendous amounts of innovation in the course over the past year, just in the last quarter. Our unit shipments here in the United States grew 19. 7 compared to Industry Growth of 4. 3 . That Industry Growth includes dell. Take dell out of it, the rest of the industry grew. 2 to the 19 preponderate 7. We are growing across all businesses, across all geographies, energized with new customers, partners, the turmoil out there in the industry with the other firms creates great opportunity for us. Talk about some of the turmoil. I assume youre referring to ibm and hp, the issues they had to deal with. How does that create opportunities for you . Weve seen a tremendous influx of new partners, channel partners. The channel now represents 40 of the business, a fast growing part of the revenue stream, and as, you know, these companies are splitting off and splitting up, and dividing themselves every which way, this is worrying and troublesome to the customers, and that creates chaos and confuse, and that, for us, is opportunity. We created a dell very broad set of endtoend solutions, and we believe fundamentally you need both ends of the solution to be able to create those solutions, so were excited about our positioning and, you know, thrilled with the progress over the course of the first year as a private company. What does it mean to not have public investers, to not have Conference Calls, not deal with the stock price trading on a day by day basis . Becky, it really means that we have the freedom and the flex the to focus 100 on the success of the customers and partners, and that is really a liberating feeling. We feel unleashed, energized, all about the customers. Michael, i i want you to ask you want me to ask . I asked you to ask him. Okay. Michael, things are going so well, i mean you do it. What about all the people, oh, wow, this is rough, worth this month, and now youre kicking ass, what do you say to them . Suckers . Sold for the price you bought it, you got a good deal or you know, i think as you all well documented and many others did as well, there was an extensive process that our independent board of directors went through to find the highest price possible for public shareholders. Thats well documented. Thats well documented. Its clear, yeah. I think theres also a plague of short term thinking that exists in our country. In many sectors. In education. In finance. In politics. Im sure theres other guests who can speak more eloquently about those other topics. You know, we firmly believe in the long term future of the business. It requires investment. Were making the investment. Were seeing results. Im quite proud of the progress weve made as a private company. Being able to innovate without a 90day shot clock we had for 25 years as a Public Company. Michael, is there a way to such the dynamics in the market in a way that you could have dope what youre doing now with public investors, or do you think thats just impossible . I think we could have done many things as public companies. We were certainly doing many things. It was slower. Certainly, you know, you all document and have many guests that come on and talk about how Certain Companies should, you know, have a share of buybacks or dividends or combined with this company or submplit off th company. These actions are not necessarily motivated by the long term interest of the health of the business. And as a founder of a company, as, really, a long term steward of a business, i think about the outcomes over a lifetime. And so just a different perspecti perspective. Go ahead. Youre afraid to ask now. What . Go ahead. Heres what theyve been talking about. There were times you called them circus which of the competing Business Networks were you referring to when you called them Circus Clowns . You know im not talking about you, joe. I resemble that remark. Im going to assume youre talking im talking about im talking about some of your occasional guests who will remain unnamed. Oh, okay, i see. All right. I lake that answer. You guys know who im talking about. Im not talking about you. Im not talking about you. No, i know exactly who you are talking about. Whisper it to me. Im not going to whisper it. I know who you are talking about. Joe, great to see you. All thats missing is the red nose. Whats the last thing you said, michael . The only thing missing . Is the red nose. Okay. Oh, boy. I know who hes talking about. Mr. Tough journalist, i had to do it all. You did it. See, i have to keep my job, but not actually i like the answer. Now that he says it, i know who he is talking about. Lets go to break, you tell me, and coming up, the sweeping election win, what it means for the markets, and first cbnc interview with alex gorsky at 2 30 p. M. On street signs. Thats great. Well be right back. Hey matt, whats up . Im just looking over the company bills. Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. 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. A tax on sugary drink approved in berkeley, california, vote with about 75 of residents saying yes. The city becomes the first in the nation to approve such a levee on soda drinks. A similar measure fell short in san francisco. Everything in moderation. There was a gmo ballot question in colorado and oregon that were defeated. That was a huge win for the food industry. That means people a lot of times the public is a lot smarter than the elites that are telling them how to think. Alaska approved pot. Third state now. And you can also not a lot to do up there. One of the other ballot questions was a reduction in penalties and sentencing. Rand paul has been big on. Obama as well. All these sort of state ballot questions may play out. I love alaska. Its beautiful. You can hike, hunt, fish. Six months out of the year. Lets get down to the New York Stock Exchange. Jim cramer joins us now. Jim, as long as youve been doing this, youve been through i dont know how many elections. Even if you talk the ones every two years. Any words of wisdom that work all the time for investors right now . High water mark for taxes, High Water Mark for the government intrusion into business. We have now seen it. Monday was the High Water Mark. We had a new world. Wow. So i always ask that question, jim. Can government do can it be active in its assistance to the private sector, or a lot of times all it has to do is just be passive and just not be part of the problem. Are there active things we can do . No, we just want them nowhere near. That makes us more confident. We pick up the paper, find theyre not in our faces. Corporate taxes, great. But small Business People dont care about Corporate Taxes. Small Business People generate the jobs. Small Business People could go a day without worrying about something coming from washington. I think theyd do some hiring. I think banks would be willing to do some lending. This is the beginning. Its the beginning of a sense that maybe the government is not against you every single minute while youre trying to build a business. Someone i saw, it was a mckenzie study that said redefining capitalism. I thought, oh, lord, let me read this. I thought it was going to be one of these ways of changing capitalism. I didnt know what it was going to be. What it said is dont explain it as a way to build wealth and shareholder value. Explain it as the most effective way that society solves problems. If you look at the way the private sector and entrepreneurs and people, they address issues. They address health issues. They address problems here. They address getting from one place. They address all these things, and it ends up benefitting not from wealth accumulation but from solving the problems of society an making life better. I think that capitalists need to start e planing it that way. I think thats right. Look, lets just go a little off topic because im not this was not a social issue, i think, for me. It was interesting to see that tim cook revered rfk and mlk. You know what . Theres the logical extension of the people who a lot of us idolize is now a ceo. I dont hear a lot about rfk and mlk last night. I do hear the ceos being more responsible than the politicians. Maybe the ceos can have a bigger role now that theyre not going to be i think theyll be less afraid of washington. A lot more friends down there now. All right, jim. See you in a couple minutes. When we return, more from eric kantcan karan cantor. 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. There was no question she reminds you every day. 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. 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The doctor found that the tech giants device may actually cause a blind spot on the right side. Last night when New Hampshire first opened and it said 60 40, it was 32. I think. And it was there for a while. It was like, wow. Then it said 32. I really think it meant 32. I think, i think. I hear we have a doctor conducting a study with three people. That matters. Two out of three. All right. Lets get back to our guest host, eric cantor. We have about 60 seconds or so. You have a positive outlook for the future for this country . You know, being here in the private sector now, you know, and talking to so many of our clients, i do think that there is frustration about the pentup demand for growth. With the election last night, i do sense that were going to see continued growth in the m a markets. This is where theyve been so focused and giving clients the advice on their strategic decision making. You know, i think theres just a lot of confidence going on with sellers. Given what weve heard from some of the guests today about prices, stock prices, yeah, i do think were going to continue to see growth. So lets see if washington can step up and join that. Thanks for coming here today. Great to have you. That does it for us today. Right now its time for squawk on the street. Good wednesday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer, david faber at the New York Stock Exchange at the market prepares to trade on the outcome of the election. The gop taking the senate, expanding its majority in the house to some historic levels. Futures are higher. The dollar is higher. The nikkei is up about 10 in four days. The tenyear yield meantime back to 235. Its the highest in about a month. Then crude oil, some