Transcripts For CNBC Squawk Box 20150108

Again, that was a moment of silence marking the attack yesterday, the victims who perished in that attack. Hadley gamble is in paris with the latest and she joins us right now. Good morning. Its a national day of mourning here in paris. People gather in simple. We heard from president hollande earlier today, as well. Let me give you the details of what we know now. There are reports that two suspects have been located in northeast france. Cnbc has yet to confirm those reports. This is a very fluid situation. Many reports coming in. Were trying to sift through all of that. Here is what we do know. Overnight, the two suspects believed to french authorities, theyre chasing them as we speak. Many are now saying that these guys have linked to terrorist organizations, as well. They have been convicted on terrorist charges in the past. A third suspect into police overnight. We understand understand several people have been questioned in this incident. In a separate incident this morning, one Police Officer was shot dead. There are no links yet between this incident which took place in southern paris and the incident we saw at Charlie Hedbo yesterday. Can you tell us what the mood is in paris right now . It is a very somber mood. You can see the rain coming down, as well. We heard from president hollande overnight. He said these victims, the shooters, they will be brought to justice. There is a mood of solidarity here, people coming out in support of the folks that were killed yesterday, of the victims. You have to remember that press fro come is something that here in france they take very seriously. This is something weve seen across all the covers of the french dailies today, many of the messages. I am charlie, we are charlie. So, of course, well watch as we go forward to see what european leaders come out in response to this. Thanks becky. Jobless claims are coming out at 8 30 eastern time. Its expecteded to fall slightly to 290,000. The nations retailers will report december samestore sales today. Average analysts are looking for comps 378 during the key Holiday Shopping month. And president obama will be delivering a big speech on housing in phoenix today. We could be discussing the fhas move to reduce annual mortgage insurance premiums and widen financing access to home buyers. Joe. Check on the futures. After all is said and done yesterday after going up triple digits, pulled back and ended up accelerating at the end of the close, about 176 on the industrials. Remember, we were waiting for 18. We finally got it. We pulled back the first week of the of the new year and now 176 is where we are, indicated up nicely again today. For once we really dont have to think about where fair value is. We can look at the futures and that basically reflects where well open. This is whats happening in the european markets. We call this solid session up almost 2 in france. In germany, the stand utah along with the nikkei in the asian markets. Oil was a story, obviously, yesterday, it doesnt take much. It was up less than a dollar. So 48. 1. 5 thats a key for toerchb watch. I dont know 48. 85 looks expensive to me. Hes very interested in europe right now. And very interested in the Distressed Oil sector here too. Once in a lifetime opportunity. Theres the tenyear. Thats about as close as do we go out any further than that . Thats just under two, i would say. 1. 999. The dollar 1. 1980 versus 1. 17. Below 1. 18 on the euro. And a couple of decent sessions. Given all the worries that we now have on a global level in terms of just you know its just not a world where you can count on calm is it in any country at any time. Almost a new paradigm. It shouldnt be. Didnt we end the war on well well talk to didnt we end the war on terror . We have this antipithy on saying the wore on terror any more like that was a bush thing. Are we beyond it . Clearly not. Like you can ignore it and call it a shooting versus a terrorist attack. Just look at the last three months, how much attacks there have been in australia and canada. We called it the Workplace Violence. Were still calling it Workplace Violence domestically. And thats the question. We will bring in retired army current jack jacobs is here this morning. Good morning. When you say a war on anything, it presupposes in military terms that this is objective, that you ever a definable objective youre going to reach and that you have steps now to them using various resources in order to reach it. No matter what you call it we dont have that. We dont have an objective to achieve. To stop the attacks . But thats too loose to say we want to we want to stop the attacks and, therefore, were going to do these steps and were going to take these steps in order to do it. We havent said what it is were going to do to achieve that objective. What would you do given that it sounds by the way, that police and officials in france new of these people. Well known. I assume there are others in europe and i8d imagine there are others in the United States even. Yeah. And points out a big difference between europe and the United States. Cameras everywhere in the uk and france, looking at you everywhere you go no matter where you are. They dont have to go and get a court order to listen to your phone conversations, they can just listen to them collect whatever data they want to process it in any way they want and act on it. You cant do that here. Therein lies a big problem in the United States. We keep balancing the right of privacy with safety and security and the right of privacy wins every single time. The attacks are there despite being able to do all these things. There is not a little bit of malfesance there. Were subject to it also. You know what their movements are, you know what their intenses are, you read their emails and listen to their cell phones and you still dont do anything well more fools. 320 people out open. These are home grown terrorists if you want to call them terroristes. There are terrorists and they are certainly home grown. With as many people as they have in this country, some of them, maybe many of them will be disaffected. And among those, a certain percentage of them are going to do something. Are we at risk in this cup . We vernal are. Weve seen itments before when there have been attacks and there have been a large number of attacks that have been thwarted because we have information on which we can act. You cant prevent anything unless you have good human intelligence. Were getting much better at that. But theres a big difference between the United States on one hand where things are sometimes good and sometimes bad and france and europe as a whole on the other. France is a is really peculiar in this regard. In france youve got 7 to 8 of the population are muslims, many of them born in france. They are disaffected, underemployed or unemployed and theres no way theyre going to get employed and these are the kinds of people who are easily getting more susceptible in france . Much more susceptible. Here, like between people with a lot of money and not a lot of money, there is a lot of arguing about a large variety of services that need the be performed. Where are you in profiling . Im strongly in favor of it. I myself have been profiled frequently. Im not opposed to that. They profile when you go through the lines of security. If you are above or below a certain age, you dont have to take your shoes off. We profile all the time. In france there is no upward mobility. There is no hope of any upward mobility. Two steps down do you think there are ramifications from this . Again, is this a singular event . Are there knock on effects . In france you mean . In france and europe. France and the United States is this a game of dominos or not . No its not. We have to recognize the difference between a place like europe and a place like the United States. These guys or anybody like them have free passage from france to anywhere. They can go from france to the uk and so on. What about here how tough would it be . Much tougher here. To come from there much tougher to come from there to here. Than for them to go from france to holland, for example. But in all of Europe Muslim people are disaffected, no upward mobility. Here, whatever else we can say about how things are going, how things and what we do for people and all the rest of that stuff, there is at least an expectation that if i have a good idea and i work hard no matter who i am i am going to be able to be successful. That is not the case in europe and certainly not the case in france. Andrew your loss of the american treatment needs to be viewed in relative terms. It is rel live youre absolutely right. Thank you for coming on this morning. Thank you. Coming up the bulls are back. Were going to talk about todays test for the markets. Plus the financial world is worried about the upcoming greek election. Now there is shuttle diplomacy going on between athens and wall street. Michelle Caruso Cabrera will report on that. And later, a man who made a mint on europes problems. And sports mogul, he sees a huge opportunity in the world right now. He also tell us about it at 7 00 a. M. Eastern. Welcome back everybody. A big story for the Global Markets right now. The looming greek election it is a little more than two weeks away. Right now, the radical leftist leads in the poll. Some on wall street are trying to make friends with him. Michelle, this is auto man youve met with and interviewed several times. Absolutely. Alex yix syfris has been leading in the polls for the coming election. As a result, we know of Hedge Fund Managers who have been getting on a plane left and right to meet with him and his Economic Team to figure out what the story is there. Keep in mind, the guys who are telling me this say hes far more pragmatic than you would think. They have to say it because they want to believe this right . Im not saying theyre wrong. Its just that they have a book that theyve been pushing. Is this guy going to lead greece out of the euro . Theyve come to the conclusion no. More specifically they want to know is he going to pay me back . He keeps says he wants debt forgiveness. Greece is more than 300 billion in debt. But the vast majority of that debt is loans, that portion is actually the private sector. When we show you the greek tenyear yield, were showing you the tenyear yield of roughly 30 billion of bonds that trade out of those 300 billion in debt right . So hes reassuring them that no he doesnt want to restructure their debt we just dont want to pay those people back. So Angela Merkel yesterday said when she was meeting with cameron in the uk that they were willing to extend the maturities for greece and lower the interest rate. What in the business they call extend and pretend, right . The question is will he accept this . Because he has said thats not enough. He wants a full writedown. He says they look at our debt to gdp ratio. The debt to gdp ratio why do i, why do we like this guy even though hes a socialist . He is incredibly charming. Hes pragmatic, too. Because i agree with him that this whole euro system doesnt work. And number two, his main deal is the ollieigarchlieigarcholigarch. And thats worse than socialism. Over here its not kwies as bad. It will never recover. To even think its capitalism but its not. And this guy will take out the oligarch. I liked it. This is the enemy of my enemy, i think. Right. I dont like socialists here. I hate them. I wish they would lead. But over there its very weird. And you like him too. I knew you would. Oh, yeah. Some of my best friends are socialists. That never works. When they come to take us away im going send me, please. But thats the core question that were going to come down to, right . Theres a negotiation taking place in public right now about what are they going to do about the official sector debt. Here is the bottom line. I have heard for years, years now since they did the restructuring since 2012. Everybody knows they cant pay back the 3 left lane00 million. Now, you and i know that that essentially means youre not getting paid back right . But still but germans can swallow that pill . Easily. They can still tell their constituency, were not forgiving that we are getting paid back. Economically youre not getting paid back but theoretically you are. Do you think fannie would guarantee that . Under this . Maybe. By the way, they have 100 year mortgages in japan. Generations stay in the house and pay them off. So in fact were waiting to see can they come to a negotiation, a settlement around that idea and how hard is it going to be about that . Its talk maybe they can do something, were seen restructurings where they offer gdp warrant and then well pay you back based on the amount of growth we have in the country. Those are things being discussed behind closed doors. That is what theyre thinking. Of course gregxit. Its still a possibly if they dont come to a deal. And what if hes not in charge and somebody else is and they decide not to pay you back too . Unlikely based on the candidates that are out there. The ecb is starting to get tooid tight on greek banks, as well. Raising questions on weather theyre going to start to see money. I just wonder whether the gre xf grexit is kicking the can down the road. How is greece ever going to have the same economy as germany . Why would they have the same currency as because there are many many many people that believe youre slightly right they should leave. The biggest threat to the euro would be im going to introduce you to one in a second. I have friends that are seasoned economists. There are those who say the biggest threat to the euro is greece leaves and actually does better. Right. And then . I love that. Thats where it starts to i have to quick being so you know, people dont like that. Especially not if youre traveling there. Did they broadcast that sometimes . Yes, right now. Great moments. Right now. Theyre with me though i think. And its weird because the far right and the rest of europe are the ones that want the exit right . Right. And its different than right here. But the application in europe, youre not how did she visit in greece . You wanted to do the islands. Here is the thing. A lot of prices havent fallen very much. Thats the issue because they have if they went to the dragma it gets so cheap to travel to greece. I just had a vision of the octopus. You know who is cheap right now . Moscow. The ruble is weakening day by day by day. Andrew youre talking caviar vodka and tall super models. He has that already. You have java for that. Patrick is a chief strategist and as i said one of my best friends are economists. Covering the economic angle, john silva, chief economist at wells fargo. John, i just want to start with you for a second. You are pretty good with the gdp in 2014. Whats 2015 whats your number . A little bit better. 2. 8 , 3 . Not 3 . Not 3 3. 5 but just a little bit below 2 . The export secretarieser, the weaker event from europe, the challenge in china, that is a challenge. So youre worried about Dollar Strength already, that it could hurt oh it already is. The Dollar Strength has impacted our economy. So in wasnt weeks, we started thinking the fed has basically forever. But you think april they move anyway . They could wait if they wanted because people dont think theres any downside . I bet its june. Also because of the financial markets, pricing and trying to rationalize that pricing. The comments you made earlier, it probably will take one to two years to figure out where oil is going to go because we dont have any swing producer any more. Without saudi arabia intervening, we havent seen. No spring producers. And i look at your forecast that thatwell r we go back to the mid 60s, its bullish. I love that were even thinking that way. Why would it go back to 48 if were going back to the mid 60s . Youll be back some day. Yes, i will. And im going to ask you about this. Its still 40 higher isnt it or 32 higher. Yeah. 33 the is a pretty good move. But unlike the 1960s, there arent a lot of people in asia driving cars. Thats why its at 120. No way. Yes it was. Thats why it was headed there. It was headed there in some peoples minds, not mine. All right. Patrick, so it started off the year, the markets as the equity markets started up a little shaky. They had a great i think it was paid for. Didnt we have a great november and december . Wasnt that normal . Well look i think people entering the new year their minds are shifting from so far so good to what happens next . And there are a lot of concerns concerns about how growth wsh how slowly growth in china and europe will affect the u. S. Economy, what the impact of the Falling Oil Price will be on the u. S. Economy. A lot of economists think theres net positive, but its going to hit a sector that has been a strong growth sector driving u. S. Growth. And this is just general were six years into the a bull market, is it just too good to last . So i think youve got you had several periods, several episodes in the last year about five of them where people have these bouts of anxiety, but then as these fears did not materialize in the numbers, you had sharp rebounds. And i think youre going to see a sharp rebound again. Because weve heard theres a lot of idioms and one is that bull markets dont die of old age, they die of recessions. Recessions or the federationing Interest Rates, which they could well do but, you know at 3 thats not raising Interest Rates. No look i dont think that the fed is really the thing to worry about here. What is . You know, its funny, im worried about Different Things from a lot of people. I see the slowing growth in germany and in china as actually part of the positive rebalancing. And i think that we are going to have a hard time breaking above 2. 5 gdp growth in the United States without net exports playing a big role there. But the transition here that i see, the growth thats slowing in europe and growth thats slowing in china is the kind of growth that has been an impediment to u. S. Wait a second you think its good that this recession wont catch us or we wont catch a cold from it . Yeah, look, in china, a lot of the growth thats taken place has been investment growth predicated upon selling to the u. S. Consumer. Almost all in 2011 almost all, since 2011 almost all the growth in europe has been from net exports. It hasnt come from demand in europe. So all that were really seeing is the mass falling away. So were buying less from china and europe but well be buying from u. S. Producers . In china, the price is coming down and oil is a product of that. I think people miss the china story and how instrumental it is to the Falling Oil Price. Chinas investment boom led to inflation in inputs commodity inputs, like iron ore, like oil. But it depressed prices for a lot of the things we make. Tend of chinas investment boom although its put pushing down the price of oil and iron ore, its going to have a reflationary effect. Its going thin out some of that overcapacity thats been created. If youre in the United States and youre paying cheaper youre paying for cheaper imports and youre yet seeing overcapacity in a lot of products that youre making being thinned out, thats a positive thing. Its rebalance, right . And china has the capacity to do that. 14 trillion worth of reserves they can afford to consume more than they produce. Lloyd blankfein, hes like madonna, lloyd, you say, lloyd said theres two reasons to sell china. Theres 1. 3 billion people. And in the United States we have 4. 5 billion people. In other words the whole world is our marketplace and hopefully the dollar doesnt get they all want levis and they all want isnt it six or seven billion . Probably. People have been mating. But then theres probably a few that arent going to buy any of our stuff. Theyre trying to find clean water. The world is amazing. Anyway, thank you, patrick. Thank you, john. So wells fargo . Yes, sir. That doesnt mean were going to call you all the time but thank you. When we come back, we have a report that says most of the money that bill gross mass raised from janus is going to be very surprised, because all that money hes been raising comes from one firm. And you wont believe who works there. Were going to have ta story when we return in just a moment. Hiring new employees can be tough. But it doesnt have to be. Because now you can post to over 50 of the top job boards with just one click with ziprecruiter. Find candidates in any industry, nationwide. Just post once and watch your qualified candidates roll in to ziprecruiters easy to use interface. Find out today why ziprecruiter has been used by over 250,000 businesses. They even offer a 100 satisfaction guarantee. And right now, you can try ziprecruiter, for free. Go to ziprecruiter. Com free30 i think you can do it for a couple. Give it a month. I feel like a veteran here. Good morning. Im recognizing the same people walking by. On their way to work . They look colder. It is cold today. It was minus 3. Minus 3 . I saw 5 degrees in the car. Welcome back to squawk box live from new york city. That was a good friend steve sherpa and ivanka trump wishing us well. Ivanka is going to be joining us in the next hour to talk about the new season of the celebrity apprentice. People were joaning for it after two years. The ratings were up 40 . Also her initiative to empower women. So a lot of subjects to talk to her about. And well talk to her about her fathers famous right . I heard about him. Donald. A couple buildings. A couple things going on. Lets tell you about some headlines going on at this hour. The wall street journal reporting more than 630 . More than 60 of the monies raised from bill gross came from a Morgan Stanley Wealth Management office in california. That office employs one of grosss personal Financial Adviser pes. A broker. Might explain a little bit. That minutes its hit money, a lot of it. Its on the front page of the wall street journal. People have been dmenting on this, janus didnt want to say anything about it. But bill gross said yes, i invested in my own fund a lot of it came from me. The reason thats important is because a lot of big investors wont Pay Attention to a fund until it has at least 1 billion. With his money, it gets up it to. 1. 1 billion. You cant take from yourself, though. No, you cannot. Since march of last year oil is down to 55 . Back then crude was trading around 91 a barrel. It was predicated last march oil would drop to well bloedz 100. Ed is here to tell us what he thinks. Its good to be here. Back then the call you made was that said 90 was going to be the ceiling and that it would fall likely well below that. Yeah. I thought it was an easy call. We made the same call the year before, but we got it wrong and thats because its unpredictable to try to forecast disruptions in the world. And disruptions went up and the market stayed the same in 2013. What prompted that call . Did you think that there was so much more supply from the United States or did you think that there would be less demand . We thought the world had been overestimating demand. We had noticed that the iea progressively was downgrading their specition for global demand. We figured out that the Energy Intensity and the oil intensity, the global gdp was falling partly because it was falling significantly in china. And the other part of it was the growth in light sweet crude production which we thought was going to bring about a glut of light sweed sweet cruise in the basin. Peter tipped us off to your call when he was here on set with us just a few days ago. Maybe it was last week. But he told us about your call. I would say that you were probably even surprised by oil falling to 48, right . Sure. You can really never call a bottom in this market because theres so much momentum that goes into the decline that its impossible to say when or at what level its going to bottom out. So what do you think happens from here having said how difficult it is to prei can tell did those things would you be surprised to see 40 oil . No i wouldnt. Were in an environment where we used to think of the market based on the call on opec. We moved from that to a position where the saudis say hey, were going to move from that. And it takes a longer time to see Production Growth slow down in the u. S. Than it would take time for saudi arabia to say, hey, were going to cut production next month. Although we have heard from Continental Resources and other companies that that are massively cutting their cap expending budgets for this year. Yeah. We think the u. S. Will see about a 40 cut in cap ex but thats thats not a good signal in and of itself. Look at what happens in the gas market. Gas oriented drilling went down 78 after its peak earlier in the decade. Every year weve seen growth to natural gas. There is something magical about the shell play where how quickly where if youre totally off line can you be online . If youre trying to lay off line on the shale price . You ramp up. But how quickly can that happen . It depends on how many rigs you have available in the place you are. Anywhere from a day to three months. Its very very flexible . It can be very flexible on the upside. Its sticky on the downside. Take where the market is now, theres about half a year. Completing a well takes a couple of bucks. The catch flow even at 40 is a significant return on a 2 or 3 investment. Even with the cap ex going down you have unxlooilt completed wells that are being completed. You have the Service Companies compressing their margins. The first 25 reduction in cap ex is kind of met by a 250 reduction in who is going to go bankrupt . Im not licensed to talk about that. Im taking off the hook. What could happen potentially on the upside . Do you still think theres a 90 cap on this . This is unchartered territory. Shale production is still there. Lets say Production Growth depose down to 200,000 a day per year rather than a million. You could ramp up to a million barrel a day response within six months to a year. So that should keep the lid on things. On the other hand, there are massive projects in deep water in particular that are being postponed. So that could say maybe by 2017 there could be a punch again on the price. Peter is betting big on pot. Mark lazry is going to tell us how hes betting big on oil prices. Entrepreneur ivanka trump is going to stop by to tell us about her latest projects. A power packed lineup this morning, newsmakers still to come and squawk box returns live from our new home right here in the heart of new york city. Back in just a moment. We are back in rally mode as far as u. S. Equities this morning. 171 points above fair value. Up 0. 52. So 172 on the futures and we know exactly where we are. Almost 20 on the s p and almost 40 on the nasdaq and yesterday the industrials closed at 17,584. So youre talking about getting back to almost 17,700, 17,800 which is not that far below an alltime high. In this market that is amazing. Coming up vc, venture capital, i assume, on pot not at disneyland as well. And more in a squawk fan favorite, a segment that we like to call chairs. Weve got some new chairs. I dont know if those are the ones were going to have forever. I think were getting new, new chairs. Ill let you know as a tease that sitting over there is problematic for a lot of reasons. You dont know whether to cross your legs. If you dont cross your legs you look really is there a tooez tease for an uncomfortable looking shot . An uncomfortable looking shot. Good. Watch us try to figure out how to sit in these chairs which we think are way too low. And then a billionaire renaissance man part hedge fund hauncho. Part nba owner. Part bff bill clinton and theres no topic marc lasry cant tackle. He will join us at the top of the hour. First, as we head to break, here is a look back at this date in history. So youre going with the sort of the half and half. You stride the back all the way. Tried to do this but its a little hammocky. Im going the full on like i dont know what to do. Im going to lean forward trying to suck my stomach in. Trying to do a lot of things. Were in new york but i want to talk hollywood quickly. Go for it. Terrible year for movies. Dome demows are tough hard to get young people. The oscars ellen last year. She has all these social media followers. Neil patrick harris. So abc is really worried. Theyll have andrew but how many other normal guys are going to necessarily be watching the oscars . I wouldnt be caught dead and the other reason i wouldnt is i bet they dont even nominate bradley cooper. I think they will. But its a im not sure there is i know people think that. Or in Mainstream Media theres no ideological whatsoever. I know that, andrew. Then one other thing. O. J. The movie coming. Fx. John travolta returns to tv. I saw this yesterday. Robert shapiro is who hes playing. Cuba gooding jr. Is going to play o. J. I worried initially about the height difference but in hollywood they cast all people the same size so you never know. When i was at Universal Studios i looked at the building where john wayne used to shoot. They made the doors smaller so he looked bigger. They do it with all these guys. And by the way, cuba gooding jr. Can totally pull this off. He can. And David Schwimmer played kardashian. I dont know who plays kim kardashian. You dont know about schwimmer. I dont know. You see this story this morning . Peter thiel with a pot company. Investing in a pot company. Companys called privateer. The company does an app, but actually sells medical marijuana. So of course the question is who do you think hes going to sell it to and i think somebody who he thinks likes it. Twitters hard to evaluate. They have a lot of potential. Its a horribly mismanaged company. The people you know probably a lot of pot smoking going on there. So there hes he has a market already. He may visit headquarters as a first stop. There you have it. All right guys. Let me tell you a little bit. You know about my Howard Hugheslike fear of germs and Everything Else. There was a story out this morning that nine people who visited disneyland in california between december 15th and december 20th contracted the measles. Measles is a disease that was originally eradicated in the United States back in 2000. But because people are not getting vaccines as often as they used to. Were now getting Something Like 60 to 70 cases a year. These people were at disneyland. The cough can linger in the air up to two hours. You breathe it in over two hours after somebody with the measles cough. Those nine people a couple of them were infants who were too small to ever get their shots. If you get your shots, you will not get this disease. Its not something you will pick up. Its a reminder for anybody who hasnt been recently updated with the shot. Mickey mouse wasnt going around coughing on kids. No. Well, the mumps was im going with the, hey, very relaxed. Im going with the notion that Howard Hughes is not a good guy to say that you emulate in terms of personal what about donald trump . He doesnt like to shake peoples hands either. Thats better. He had big jars of stuff he saved. When people would visit, he would save theirs too. Long fingernails. Dont even bring him into it. All right. Donald trump. Who would only do the fist bump. Who was the comedian who did the show deal or no deal. Howie mandel. That was his thing. We will do a little fist bumping here. When we come back marc lasry is buying what others are ready to throw away. Now hes circling the oil patch. Well talk with him when squawk box returns right here from the Business Capital of the world. Right across the street from radio music city hall. To the big apple. Squawk box starts its 20th year from a brand new home in the city where business never sleeps. On set this hour marc lasry on the markets weakness in europe and his milwaukee bucks. Plus ivan ka trump wants to change the story about women who work. Its the same squawk box attitudes, same off the chart access. Now on the biggest stage in the world. Joe, andrew becky, welcome to new york city. The greatest city in the world. And please make sure you guys save first base for me on set. Welcome back to squawk box here on cnbc first in business worldwide. Im becky quick along with joe kernen and andrew ross sorkin. Marc lasry will join us in a moment. Hes on set with us. But first lets get a check of the markets. Check out the equity futures. They are sharply higher right now. Up about 164 point ifs for the dow. Up 18 for the s p. Up 37. 5 points for the nasdaq. This comes after yesterdays big gains gains in the market. Also check out whats happening in europe. You will see strong gain there is as well. The ftse up by 1. 75 . The dax in germany up 1. 75 . Look at the price of oil thats been the market the tail thats been wagging the dog for weeks and weeks at this point. Yesterday oil prices were higher and that certainly helped stop some of the concerns that were out there for the stock market and other markets. You see this morning that wti is up 36 cents to 49. 01. Brent crude back above 50. Its up 35 cents today. And look at currencies today. The dollar near a nineyear high versus the euro sitting right at 1. 1771. Dollar dollar yen 119. 81. The bank of england keeping their rates unchanged. That was as expected. Among the other stories were watching at this hour the hunt continuing for two brothers suspected of killing 12 people in yesterdays attack at the french magazine charlie hebdo. There are reports the two have been located, but thats not yet confirmed. The Senate Committee expected to approve the keystone bill today. The white house has already said the bill will be vetoed if it passes congress. Ahead of tomorrows employment report, the Labor Department set to release the weekly jobs claims report. We will bring you that as it happens. Our special guest this morning is one of the pioneers of distressed debt spending. Right after the financial crisis and since then his firm has made billions of dollars for investors across its global funds. It is now turning its focus to energy. Joining us on set now for an exclusive interview is Hedge Fund Manager marc lasry. Fund has approximately 14 billion under management but whos counting. Hes also an owner of the milwaukee bucks. Which 18 wins already . No 19. We won yesterday. Saw them play the other night. And they looked really good. Welcome. Good to see you. Well talk about that a little bit later. Just so people that may not be as familiar with who you are and what you do distressed debt can offer great returns, but typically maybe not as much as equity type investments. But its all about the things you emphasize. You have a better handle on the downside a lot of times when youre investing by doing it this way. I think so. Youre going to see it play out a lot and well talk about it on the energy side. You figure whats happened over the course of the last three months. The companies were trading at par or higher. And today that same debt is trading between sort of 50 cents to 70 cents on the dollar. So i think you can generate equity returns, you know i think the consensus when you talk about energy is everybody saying crude oil is going to be at 70 to 90 two years from now. Thats the new consensus. From all the people that had no idea it was coming down. Yes. Last year everybody talked about oil stays at 100 120. Now everybody saying its staying here 60. If thats correct, then everything were buying at 60 cents today is going to be worth par. If you do the math, youll make somewhere around 30 returns over the course of next two years. Do you have a an actual number . Do you need an actual number for where you think oil is going to be over the next two or three years . Do you think its going to be 70 to 80 it doesnt need to be from where were buying that debt. If youre buying that debt today, oil could stay where it is. Because it will go back up. Marc these prices are shocking, but we saw lower prices even six years ago. That was because of a huge recession and the downturn at that point. Whats different about the decline this time or where there just more opportunities because everything fell six years ago . I think six years ago everything was going down. Right . So there wasnt much focus on this. The biggest difference today i would tell you is in the last six years the biggest macro theme has been energy. So the largest amount of debt thats been raised has been on the energy side. In fact, it makes up 20 of the highyield market. Thats why everybody is focused. A lot to choose from. Youre talking about dead. We had Dick Kovacevich on last week. He said buy chevron on exxon. I think he said he was buying it. Does that make sense for viewers who dont play the debt markets but are playing the equity markets, if you will . I actually think it probably does. Because at the end of the day if you believe oils going to go back up really what youre doing, equities are a leveraged bet on that. I want to explore it further too. You say you end up owning the equity if oil prices where they are. If they go back up the debt might be fine and you wont end up owning the equity. But if it does the people who own the equity now arent going to have anything. Thats your point youre making. But if youre going to go out you know the rest of the industry expiration and all these companies that arent as established, that may not be a good idea to buy the equity. Its a big bet. Right. Its leverage. You either get debt money back or on the equity. Chevron is a great example. I think its an easy way for people to play that. And youre right. But what youre doing is making a bet on where Energy Prices are going. Do you worry at all is there any risk in the system that if prices continue to fall that somehow the high yield market falls apart. Somehow it hits the bank. Is there a domino sort of kas kat effect that you could see in a bad way . No, beyond say that. I think where you have that fear was in 2009 because it was sort of pervasive. I think that was beckys comment. I think today its limited much more to that part of the market so im not as worried about that. You own greek debt . Are you down . Are you getting killed in some greek debt . We dont own any. You dont own any . Right. So that would be kind of hard. Where did michelle get this information . He bought it three months ago. Lasry is long greek debt. I invested personally in a fund thats invested in greek debt yes. Okay. Not avenue capital. Yes, thats correct. So ive invested in it personally. You think thats going to work out as well. I sure hope so. Why would you make that bet but not in the fund . Because it isnt to be buying the sovereign debt of countries. You dont have that flexibility. No, were not supposed to be making political bets. Got it. Really . Yeah. Thats interesting. Okay then. So lets talk about the rest of europe. Youve been active there for awhile. Very active. Is it about where it was a year or two ago . Its actually continuing. Last three or four years i would say just in the last year or two, the amount of debt thats been sold has been increased 100 . So thats going very well. So were actually weve actually invested our last fund. Its been fully invested in europe and were going to be raising new capital out there. Youve seen sovereign yields. What does that mean for Everything Else . Its amazing Everything Else hasnt gone up as much as no the sovereign debt keeps on moving up. I think thats why for us we play on the credit side. On the credit side the pressure is still on the banks and its still on the banks to delever. This is a fiveyear process. For us its the guft that keeps on giving. Is europe at this point in an investing phase or is it in a harvesting phase . I think its investing phase. Still time. You know why . You have 2. 5 trillion of paper. Theres so much. The supply side in europe is so great relative to the demand side. What happened . Is europe looking at deflationary for the next five years . Could what happened to japan happen there . Zblit it could. It really could. The way the banks are able to sell this debt is they keep on buying sovereign debt. Right . And then through that they make their profits and then each year they end up using those profits to offset losses on that. And thats sort of what happened in japan over a tenyear period. How do you get off that track . How do you derail it . Where you get off of it is 3 to 4 gdp growth. And youre not having that. So the reason everybody focuses on that is gdp growth in europe today is sort of negative one, flat up one. Right . Its really not moving that much. So back to the Energy Sector because thats fascinating. And you say its the opportunity of a lifetime. And you dont necessarily engage in hyperbole. So how far out do you go on you know, would you buy stocks that are not stocks but companies where the stocks are 2, 4. Like junk stuff. Or are you in the middle between chevron and a speculative company . So i think today youre able to invest in debt of what i would consider to be phenomenal companies at extremely low prices. You dont need to get think of this. Six months ago oncor which is a regulating utility, we ended up buying the debt. And we were buying that debt 60 to 70 cents right after the file for bankruptcy. And its the largest utility in texas. Its one of the best in the United States. Those same bonds today are trading around 115. So literally youve gone from sort of 60 to 115 in the span of march, april last year. So eight months. Youre able to make pretty large profits buying what i would consider to be top tier companies. How much do you have to put down . Whats the margin requirement on those . You can do that at what . Well we ended up investing close to about 500 million. And how much did you we dont borrow. Youre not margining that. Todd shipyards, huge winner. Hardly put anything down and bought them at 50 and get paid off at a hundred. Its fine if it goes the way you want it to go. Leverage is great when it works. The problem with this that youll see on the energy side its volatile. We would never leverage. If things go down to beckys point, if somebody ends up shortterm going down the leverage just hurts you so much that you would youve never used leverage . Weve never used leverage. Its come down broadly. Marc you said its going to be very volatile. Theres potentially swings in the crude market and be all over the market . You could see oil going back to 55 or 60 and everybody would say thats great. If it goes back down to 50 and if youre levered, youre going to get crushed. Its what is really amazing to me and i do love it. If you were doing this show a year ago, the whole theme would have been how high can oil go. Right . I mean thats really what it would have been. And if anybody had said here look, oils going to be at 50 a year from now. You would have thought they were the craziest person in the world. We had a gentleman from citigroup saying 90 was going to be the new ceiling. He was right, but he had no idea it was going to go this low. I think for us if youre an equity player youve got to why are you so convinced its not going to stay at these levels or go lower . Im not. What i do know is at the levels were buying if youre buying that senior debt oil can go even lower and youre still going to be fine. What ends up happening is you own that equity. Right . So you want to play to the senior secure debt. Theres a number of companies, sampson is one. I dont know if you have talked about it. But the debts gone from a hundred to sort of 50 in the span of three months. So all of these companies are getting hit pretty hard. And youre going to have an opportunity to either end up with the new equity of the company or you will end up getting your debt paid off at par. You so many things going on with you. Marc, we knew you might i dont want to bring the conversation down, but you were almost ambassador to france. And we know the new ambassador. I saw yesterday they didnt close the embassy, but theres got to be concern and worry. I was just thinking wow, you could have been over there. And then the other thing im thinking about is Everybody Knows that you and president clinton were pretty close and youre probably going to be a big backer of hillary. The post, supposedly you and katzenberg were talking about someone overheard you and katzenberg. Thats why he has the tan. He always has a good tan. Hes like boehner. Hardly. I saw the kiss of pelosi. It was quick but it looked like he was grabbing her. Was the post right . We had breakfast. We talked about a lot of Different Things. And we ended up talking about hillary and whether she would run and if she ran would we get involved in it and the answer is yes. But were all waiting to see what she does. You think theres a chance he doesnt run . My own personal opinion is i hope she runs. And i think she will. I think shell make a decision in the next three or four months. Would you always vote as a democrat over other candidates over Hillary Clinton . Or would you be a jeb bush candidate otherwise . I think jeb bush is an interesting candidate. But at the end of the day, i think hillary is the far better candidate. To me its not im going to vote democrat or republican. Im going to vote on who i think is the best person. We talked about this a lot. With Elizabeth Warren out there and sanders and other people out there that pulls her more left. She made a comment, i think, a couple months ago about big business. Right. Have you talked to her or to bill about this . No i havent. I think the press makes a bigger deal out of it. She is who she is over the last 20 years. I think the press for whatever reason loves Elizabeth Warren. I think Elizabeth Warren would have no chance of being president. You mean the press, the new york times. Why does the press love Elizabeth Warren . I am not the press. Youre not the press . No, im not the press. All right. So finally, were you kicking yourself with not doing the tinder thing . Did you see this in atlanta . That is a sick idea isnt it . I heard about it. I would say its nothing we would ever consider. You know what . For those not watching yesterday in atlanta, its going to be like a hookup basketball game. But i even said this to my wife and kids yesterday. Tinder could have saved me a lot of embarrassing rejection moments. Right . How many times if you can do it online if you go on your tinder and nobody selected you, youd feel really bad. Id think the internets down. Before you go we had david stern on yesterday. He said he is now in support of gambling on professional sports. Where do you stand on that . But he was qualified with that. He did qualify it by saying if were going down this road anyway we need National Legislation that goes through. I think adams right. I think having National Legislation on it makes sense. Because the question is youve got this unregulated industry that is huge. And why not regulate it. And everybodys made to believe nobody is betting on sports. Is there money in it for you as an owner . I dont think so. Jabari parker will be 100 by when . He had the surgery a couple days ago so it will take 9 or 12 months. Were you knowing in the facial recognition stuff in picking him . We knew about it. Do any of us have facial expressions of a winner in life or any type of sport . Can you tell . Am i twitching the wrong way . Do i look like a loser . Seriously i think you would have our facial recognition thing go off the charts of how good you are. Thank you. Can you bring that back next time. I could. Its an interesting story on facial recognition. It tells you whether people will succeed in life. It would be different on the golf course. Like going up to an 80 yard i know im twitching. Anyway, thank you. Pleasure. Maybe its a confidence problem. Marc thank you. When we return weve got news from another nba owner. Steve ballmer generating buzz at last nights clipper game. The video going viral this morning. Then at the bottom of the hour we get the first look at the Goldman Sachs for the year. And thin ivanka trump joins us. And we also have barry sternlicht. A big program. Were back in a moment. Welcome back to squawk box, everyone. Weve been watching the futures this morning and they are indicating a sharper open on wall street. Yesterday we had the first day all year weve seen gains for equities. This morning the trends are continuing with the dow up 178 above fair value. The s p futures up by 20 and the nasdaq up 40 points. News for you this morning in our headlines. The latest to yank money from pimco. New york city Pension Funds pulling 4. 9 billion. The move was because of concerns over recent organizational changes at pimco. Of course you know that bill gross shocked bond markets last september when he left the company for a smaller rival janus capital. Get this. 52 of americans are not prepared for unexpected expenses. 38 of those surveyed said they could cover an unexpected emergency room visit or a 500 car repair with cash from a savings or checking account. 62 . Hows the prompter with the eyes . You dont have contacts or do . I do. In fact my eyes got a little better. Mine have gotten much better. By wearing them . No like your eyes change shape over time. I think im actually about to need them. I think the eye actually a lot of things shrivel but the eye actually shrivels up and cant its cold outside, i know. Coming up the nbas clippers dominated the lakers last night. But the buzz this morning is about clippers owner Steve Ballmer. What he did at the game thats getting attention next. Better be good. And as we head to break, take a look at the energy board. Is rolled over into a Td Ameritrade ira. Yes so no set up fees wooh yeah so i get help from rollover consultants . Wooh yes no rollover hassle. Great. Woah oh, were spiking things, robbie. For all the confidence you need. Thats better Td Ameritrade. You got this. The clippers dominating the lakers. Blake griffin and company beating the lakers 114 to 89. But the real highlight came after the First Quarter when former microsoft ceo and new clippers owner Steve Ballmer showed off some oh, boy. You know what . Im all in favor of this. This is what i wanted him to do. I wanted him to do this with the clippers. Get fired up. That looks like dennis keselowski. No, just have fun with it. You go. Hes not a shy guy. He paid 2 billion to do that. He should be able to dance out there however he wants. Singer Fergie Fergie sings now . Surprised fans by walking on the floor while her song l. A. Love was on. Coach doc rivers saw ballmers moves and when reports asked for his answer rivers said no comment. Our relationship is too new. That would have been my line. Hes always fired up. But thats great. Thats what the clippers need. What are you a clippers fan now . No. I like Steve Ballmer. I think its cool. Im digging it. And talking about the clippers. If you pay that kind of money, you should be able to dance however you want. Thats right. You go. I like this. I love cuban. Oh i dont like i cant unsee the cuban dancing. No on shark tank, that thing like that. God, no. Why did you even bring that up . Because i like cuban and the way he fires up his players. Being in the moment. No i wasnt talking about that. Okay. When we return weve got a lot more for you. If youre bearish on u. S. Stocks, goldman says think again. Then ivanka trump is here. Shes going to take on women who work. Were going to talk about it when squawk box returns in just a moment. Financial noise financial noise financial noise tdd 18003452550 [ male announcer ] your love for trading never stops tdd 18003452550 even on the go. 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Tdd 18003452550 call 18776703357. Tdd 18003452550 or visit schwab. Com trading. Tdd 18003452550 schwab trading services. Tdd 18003452550 your goto for trading knowhow. Tdd 18003452550 welcome back to squawk box right here on cnbc. Among the headlines front and center, reporting just now under 33,000 job cuts last month. That closes the book now on the year with the fewest job cuts since 1997. And president obama will be delivering a speech on housing in phoenix today. Hes going to discuss the reducing annual premiums. And calvin klein parent plans to close all izod retail stores. I like the little alligator. The business will continue to operate. Check out this video. A runaway horse had two texas boys living out a western. This horse decided to make a run for it. Thats when a man jumped in a pickup truck and his teenages sons followed on horseback. They managed to divert the horse as dad caught up to it. It is unbelievable. You pick the horse based on gentleness. Not doing although who knows what sparked the horses run. Goldman sachs is set to release its outlook for the new year tomorrow. But joining us on set to give us a first look right now at some of the highlights is the manager at Goldman Sachs. She joins us exclusively this morning. Sharmene thanks for joining us this morning. Thanks for having me. So the big take is things look good if the u. S. This is still the place you want to be investing. Yes, that has been our core for the last fur four years. And were emphasizing it again this year. With the key difference the gap between the United States and Key Countries whether were talking about developed economies or emerging markets has actually widened. And its widened across a very Broad Spectrum of factors. So whether were looking at gdp, gdp per capita Oil Production obviously. Whether were looking at financial factors like earnings or r. O. E. Or human factors. The gap between the u. S. And all these other places has actually widened. Entrepreneurialship and freedom to start new businesses freedom to do those again. The preimminence for the United States versus is the rest of the world. That has been true since world war ii. Any time we go through a financial crisis peoples observations are this is the end of the american century. This is the decline of the u. S. Time and time again, u. S. Recovers and comes out much stronger and ahead of everybody else. So its an end of the american dream, income inequality, its not like it used to be. Hes looking at me for that. You hear all that stuff from the media mostly and then it turns out they were wrong every time. Well im not sure if the media is but were a surprised by how quickly people forget that. When people talk about the rise of dhnchina and the rise of emerging markets and this century no longer being the american century, it is very puzzling. All the evidence points to the fact that america is still the economy. Houses not burning. You know they stay in iraq if the house is not burning. Is that because things are doing so well in america and because were taking off or is that because things are collapsing in europe china, and some other places . Its actually a combination. U. S. Is doing incredibly well. If you just look at the amount of deleveraging in the United States thats occurred whether were talking about the household sector financial sector, the United States dealing with its debt in terms of the various legislations that have occurred to reduce debt to gdp relative to what is projected swems the deficits. If deficits are about 2. 8 fiscal year 2014 its slightly below the post world war ii average of minus 2. 4. Its actually quite significant. Both on an absolute basis as well as relative. To your question about other parts of the world, they have not really addressed any of the key faultlines. Theres no labor reform to speak of in europe. A lot of the dependence on commodities hasnt been addressed in countries like russia or brazil. So its on both sides of the equation. Lets talk about oil. We just were speaking with marc lasry and he was talking about how this is the opportunity of a lifetime when it comes to investing and the debt of these oil companies. You are telling people that eventually you think oil price wills come back and they need to be conservative. So theres certainly a supply and demand in balance. Its obviously both. Supply has surprised to the upside. If you just go back to two years ago, the International Energy agency had actually expected the u. S. To do better than russia and saudi arabia by 2020. Its actually done what was expected to happen in eight years in two years. So u. S. Is the largest producer. So you certainly have the supply size side but growth expectations have come down. I spoke to blankfein about it yesterday. That is the fife things im worried about. And you talked me out of all five in the report. None of them really scare me that much because of the low probability of the ebola, that rates go up too quickly, that europe doesnt i dont know. Theres five. What about six . The unknown . As we saw yesterday. Isnt there something that otherwise everybody should just stay long and believe you and thats what shes saying. I know. But i want to know why not. How could that not be right . Theres got to be someone on your team who said theres one thing being missed. Right . Youre quite right. In our report and in all our reports we always tell our clients we can never be 100 certain. So we dont know what we dont know. And theres always surprises. In fact, thats one of the things in the oil industry. Theres always an unexpected surprise. So there are things that could happen. We have to think about all of them and assign probabilities. The issue is underweighting u. S. Equities has a very high hurdle for us. If you believe in the economy and the u. S. If you believe in the institutions they will generate profits. The best way to capitalize those profits is saying invested. Its not as if were saying equities are cheap, but if you have a 5 total return expectation, then why not stay fully invested versus fixed income or cash. And good times they dont die of old age. Something kills them. Right . And fed tightening alone will not lead to all we need to really worry about are, like the scariest things in the world where well all be dead anyway. So you might as well stay long until that day, right . There are missing nukes, loose nukes, theres putin, theres the black plague. We were having such a good morning. Why are you yeah but theres things like ebola leaving west africa. If thats the case youve got bigger problems. Not your concern anyways. Thank you very much for joining us. Thank you. Coming up next tackling the modern challenges for women who work. Ivanka trump is here. Were going to ask her about her new Campaign Retail brands and real estate. Stay tuned for that and a lot more when squawk box returns in just a moment. Welcome back to squawk box. Ivanka trump is proving most of us dont just have one career anymore. Shes executive Vice President of development and acquisitions for the Trump Organization but recently launched the social Campaign Women who work spotlighted the multidimensional lives of women in business. Ivanka is here. And also youre in our commercial. Thank you for introducing us to new york. Were excited to have you here so it feels appropriate. Among all those things you do how do you even divide your time or think about your life now . Its interesting. This famous balance question i feel especially of women is always asked. I think balance by its very nature is something thats not sustainable. You know, the scale always tips in one direction. I try to assess my life and assess everything. Is there one you like more than everything . Is real estate really it or right now you have this huge lifestyle brand thats blowing up . I do. Real estate is my first passion. I mean i grew up knowing that this was what i wanted to do. And my apparel and accessories brand really was happened very organically as something i saw a huge opportunity in and its been amazing for me to watch it grow. But the way i look at everything is just about sort of managing priorities. So i like to think im where i need to be. And a lot of times thats with my children. And a lot of times thats in an Office Working on a deal sort of managing the ebbs and flows of life. You bring up an interesting point though. Thats not a question we tend to ask men who come on. How much time do you spend with your children and the rest of it. And that wasnt the question he was asking but i saw you go to that place because its part of what were asked. It launched when i launched my website because i wanted to explore the idea of this working woman. You dont refer to a man as a working man yet a working woman is called a working woman. I think in media thats depicted as one dimensional. Youre either choosing to be in the workforce or youre choosing to stay at home. And i think the reality is this modern working woman is working hard at all aspects of her life and all her passions. And, you know the rise of Technology Enables us to be at 3 00 in the morning catching up on work because we left a little bit early to be there for dinnertime with our children. Likewise, were picking up the phone in the office and talking to our kids as theyre leaving school. So i think its just whats changed is its sort of become one life. And i think this new woman is able to work in a workforce that celebrates the fact that you know, we have interests and passions. What do you think of the ann marie slaughter world view that you cant have that balance compared to the Sheryl Sandberg theres a way to do it if you lean in mentality. My approach is not to tell people how to live their lives or to sort of sort of instruct them on what they should be doing at any moment. My approach is to celebrate the fact that were really all the architects of our lives. We all have different priorities. So for some thats working harder. For some thats working less. And, you know its really just its really architecting the life you yourself want to live. I think its really nice that you and who was that youre talking about . She wrote in the new yorker. Is there a book that i can read that shes written so i can speak coherently . Was it the atlantic . She wrote a big piece. Shed been working in the administration. She took time off. Can you help me with this so i feel more because you are really in tune. And i commend you. Lets take a right turn and can we talk about the apprentice for a second . Seems tawdry after that. The ratings where crazy. Your father says that the reason is they have unbelievably negative chemistry which makes for good tv. This group is the meanest by far. And this is not an exaggeration. It is amazing. Normally the first couple of episodes theyre sort of feeling each other out. Theyre pretending to be nicer people than they actually are to assess the competition. That didnt happen this time. I mooean, people came too e the first day of filming with huge animosity towards one another that had been from previous lives. You know, the housewives. It was amazing day one. Ive never seen a first board room where theyre already throwing each other under the bus. So its a lot of fun. Its great. Theres amazing chemistry, amazing tasks. We raised a tremendous amount of money for charity which is something thats often overlooked. But we raised over 15 million for charity over the life cycle of the celebrity apprentice. Keshia knight got fired for not calling bill cosby during this thing. It was a year ago. So nobody knew about it was prior to it. But have people talked about that since . Naturally the connections is made. This was actually prior to all the allegations coming out. I dont know if you saw this. They had asked her for a bake sale to call him to pay for a bake sale. And she didnt want to call him. I think it was less about that and truthfully more as a project manager if there a not another obvious person to fire, youre it. How do you feel about firing people, by the way . I feel like you have to be a sick human being to enjoy it. Now youre throwing your father under the bus. No but he doesnt its actually one of the things i think the apprentice has been humanizing. He doesnt want to do it. He does say it well. He does. Hes upset with them for the fact they didnt rise to their potential or what he knows theyre capable of. But i think the only time youre excited to fire somebody is if you find out that theyve stolen or that theyve behaved in a way intentional misdeeds. Yeah. I think most of the time its really challenging. Because middle eastost of the time youre letting go of somebody its because theyre not just quite good enough. Thats the hardest. Do you go to the possible golf course sites . Or do you leave that i do. Shes negotiating the deals now. Is there anything i need to know about that is going to be unbelievable on a coast somewhere. We have some amazing new courses for you to play. I know youve played at our great course in bedminster. We just bought for the british open. We just finished up the ren no renovation. The red tiger on one of the courses. Did it get the pga . It got the pga tour 2020. So were getting the pga there. Its a hard course. I wouldnt want to play that. And we have the seniors in washington. And we have the cadillac championship in doral in march. Its a lot of fun. He never came out to our studio. You know that. I wonder now that you are in much closer proximity trump tower is a few blocks that way. Hes still going to call in. No, hes coming in here. All right. Thank you. Thanks for having me. When we come back this morning, well get to stocks on the move. Meg tirrell reports on a big premarket biotech move after the break. Is then simply select \. Welcome back everybody. Shares of biogen popping. Meg tirrell tells us why. Good morning. Were seeing data coming out from biogen making its shares move. What it aims to do is repair the nerve scarring that you see in diseases like multiple sclerosis. These data did show evidence of biological repair of the system. The study Shows Improvement in the primary end point. But some mixed results didnt show improvement on the secondary goals in the study. Earlier we had seen shares up 7 . Now up only as much as 2 premarket as people are digesting these data. But really this is an important program. Because this idea of remile nation, thats repairing the scars from the nerves. This could be the First Program to actually reverse some of that disease you see. Some of that progression you see in m. S. So we should see more data throughout the year and next year. But some really watched data coming out from biogen. Back to you guys. All right, meg. Thank you. What a stock. Coming up our big lineup continues at the top of the hour. Barry sternlicht is here. Then at 8 30 former sirius xm ceo mel karmazin. Hes not really in our demo thats what he told me. But we will welcome him. We will be right back. Welcome to new york. Welcome to the new squawk box. Straight ahead, the founder of Investment Group starwood capital, barry sternlicht. Plus breaking news on the jobless claims. And then mel karmazin. Plus tom colicio stops by to talk breakfast. Squawk box is live from the biggest business stage in the world. Welcome back to squawk box here on cnbc first in business worldwide. Im joe kernen along with becky quick and andrew ross sorkin. And we begin the hour with news that just within the past few hours weve been reporting. Reports now say that the two suspects in the paris magazine massacre have been found. Just been found in france. Theyve been observing a day of mourning. We had a moment of silence at the beginning of the show. Cnbcs hadley gamble is in paris with more. Hello, hadley. Good morning, joe. Essentially what we know right now, there are reports circulating that two of the suspects have been sighted at a gas station in northeast france. Nbc is working to confirm those reports. What i can tell you is that authorities here in france are looking for two brothers. They released their photos overnight. These two brothers are suspected to have links to terrorist organizations. Supposedly one of them has been convicted and served time in the past for links to terrorist groups. We also understand that the third suspect in the attacks turned himself into police overnight. We also understand that several people were questioned and detained in the last 24 hours on this attack. Also i want to mention an attack earlier this morning that may be linked although we have no evidence of this as of right now. Basically what we heard was that one Police Officer was shot and killed, another was wounded in the attack this morning in southern paris. But no link as of yet to the attacks we saw here in paris yesterday. Okay. Hadley, we appreciate it. Thanks for that report. It occurred to me you know Boston Marathon brothers. Maybe one more dominant feeds off the other. Weird again were talking about brothers as the remaining brother in this country goes on trial i think. Just earlier this week yeah. Were going to switch gears to corporate headlines right now at this hour. Family dollar missing the streets mark on both the top and bottom lines. The discount retailer said its now in the middle of converting from a highly promotional strategy to every day low prices. Also costco reporting a 3 increase in december. That was better than expected. And wd40 reporting lower profit in revenue. A little squeaky. Solutions with the quick Fix Solutions management did see higher sales but that was offset by increasing expenses. And gw pharma dropping a drug. We are less than 90 minutes away from the opening bell on wall street. The futures have been indicated higher this morning. Yesterday was the first time all year i know only a few trading sessions but the first time all year weve seen green arrows for the markets. The dow futures indicated up about 160 points. Also checking the markets in europe at this hour youll see similar gains there. The cac in france is up 2. 25 . The ftse in london dax in germany up by 1. 75 . Lloyd blankfein shared his view of the markets and weighed in on who he thinks is really in control of Interest Rates. You think theres a little bit of an embedded assumption that Interest Rates cant go up sharply to a very high level over a short period of time. And as far as the disorderly nature it becomes the markets decision. Lets bring in our guest this morning. Barry sternlicht. Fast its great to have you here this morning. Great to see you. Happy new year. And to you. The yields have been kind of hard to predict, not too many people had seen yields falling to levels this low. We saw the 10year below 2 again. Whats happening . A lot of people on the wrong side of a lot of trades in the liquid markets. You see oil go right through. We talk 70 50 now theyre talking 13 oil. You talk about a Global Economy, you see europe sort of not solving its problems. The greece issue riding its head. People know the numbers are soft. I was in china recently in december. And you look around and wonder about what kind of spending theyre doing to prop up their economy. So i think and brazil is in the tank. Theres no real source of global growth. And were going to be lower longer everywhere for awhile. I dont think the fed can raise rates much. If they do it will just be a token. With the dollar in the position it is with the way its strengthening against all the global currencies we would put a big halt on the u. S. Economy if the dollar continues to strengthen against the global economies of europe or the euros tanking 117 this morning or yen at 119. We raise rates, the dollar gets stronger, the economy gets weaker. It has a dual mandate. And worry about its the worry about inflation. Theres no issue there. They just got a big windfall im sure the economists missed. So we could have the best kind of inflation. We were talking about commodity inflation. That would be the third leg of a missing economy in the United States. You think that actually happens this year . Well against a weakening Global Economy and u. S. Exports, we talked about the revolution in u. S. Manufacturing. When we still have 3 gas thats good for manufacturing and production. But we dont have wage inflation, but maybe well get it. That would help consumer spending. Theyll have more money. If they actually got wages to go up the u. S. Economy would continue to grow against what would be the so i think i really look forward to wage inflation. Im really hoping that that kind of brings the nation together in whats going to be a fun political environment the next 18, 20 months. I saw jeb bush last night. You did . And . He was in greenwich. You voted democrat in the past. You changed the tunes in the last couple years. Im voting for the nations balance sheet. If we cant fix the economy, we cant fix education. Jeb ruz fantastic, by the way. You were a late bloomer. Thats all. Im liberal. Youre a late bloomer. We left the lights on and you finally you know its like you looked around and said wow, things could be better for the private sector. Maybe the government shouldnt be standing in the way all the time. And, you know whats the expression . If youre 20 and you dont have a heart if youre 40 then you dont have a brain. Most surprising thing jeb bush had to say . The education. His record in florida on education is great. So he can talk about things hes gotten done. Talking about the future opposed to the past. And look every politician talks about the same thing. He has a hispanic wife. He does have hes bicultural. He calls his daughter quadracultural. I dont know what that means but she speaks three languages. You know its not authentic when they talk about things their pundits want. Did he talk about what the Playing Field looks like . Who could that be . Lets think. Well its clear hed like to you know hes not formally announced, but he clearly would like to come out of the box with a big amount of money and scare away what looks to be 16 other contenders in the republican party. What about Chris Christie . I like him. But i think the nation wants to shake it up. There has been maybe he missed his chance. He was everybodys pick all these guys. And now one by one theyve all come around. Theyre talking bush just like you now. Bushs biggest problem is his name. Did he talk about that at all . Christies biggest problem is his state. His state hasnt done very well. Its not doing well. We like him because he shakes things up and you feel he wont be held hostage and hell do things in the longterm interest of the nation. Does he address the issue at all of his name and the challenge that represents . Yeah. He says look at me for who i am. I am what i am. And its like im not my brother. Im not my dad. And its the right message. He says look at my track record. Theres a report out this morning in politico that says hes going to release his tax returns. You saw that. Yeah. This is a brilliant campaign. Im sending you all my emails, im dropping off my corporate interest. He joked at the start of it saying this is the first time in my life ive been unemployed. I was like youre not the only person. He took the plunge early for because hes i just heard anecdotally hes meeting with the most well heeled people one after another. Hes going to have some money. The pac, superpac. Its a shame. This whole thing is a shame. The money part. Yeah. The government should give each candidate 500 million and say have at it. This is the democrat coming out of you. It isnt. Yeah. Everybodys got to right you want to spend all your money up front, its like discretionary. How many candidates do we have to give half a billion to . Its called free speech. Why cant someone its part of free speech. Id rather be able to support a candidate than see the interview. They should be doing laws instead of campaigning raising money. Come on. Politically correct to go that route. Lets go back to business. You mentioned all these problems around the globe. All things that might catch up to us. But right now how is the American Consumer doing . Pretty well. I was kind of worried about christmas with thanksgiving returns and what was it . Whats our day there . Super monday . What is the day thanksgiving weekend . Black friday. Cyber monday. Cyber monday. So the numbers didnt look so good. They showed up late. And they have reported to us the numbers are pretty good. You saw jcpenneys number looked pretty good. A few retailers i wont say who looked a little troubled. Those inside the mall retailers . Im talking about the anchor department numbers. I dont have the store numbers inside the malls yet. I was hoping wed see that happen, that people would translate some of the windfalls from gasoline to spending. And it looks like they did. And some categories are particularly weak. So thats good. And i think youll continue to see that. Its happened so fast oil, that i think people are getting used to the fact that maybe oil will be here for awhile. Although i dont know how long it will be here for. Well go right back because im slowly seeing that wrung out of every one of our guests saying were snapping back to 70 or 80. I was in the middle east recently. You wonder how long i was with them and talking to major oil producers. You wonder how long they can do this for. How long they can continue to keep like we dont care. And theres two bad actors here. Theyre really hurting iran and really hurting russia who may do something violent. Dont put anything past putin. They also have major infrastructure problems there. They need the revenues. But they need to keep selling for the revenues. They cant cut back and wait for it to go up. When you dont have a cartel you need to keep selling. We all missed it. They dont even like each other. Its pretty tough. If youre going to put a number on it . I think oil is dropping in the interim maybe as low as 35. Is that sustained . I think in a year back at 70. This isnt my expertise. I think increaseing demand and youll see supply cuts. Were involved in oil and gas too. There are projects were not funding and doing because the break evens were 65 bucks. It took years for the horizontal drilling to come in. You already built the you drilled the well put up the rig. Youre going to be online for awhile. I wouldnt be surprised if it stayed at 50 for two years. It could be 18 months before it rises. Two years, 18 months. Now youre getting pretty fancy. Talk about real estate for one second changing topics. One thing interesting about the cycle is with the rates where they are, real estate looks super attractive. And having just finished a major fund raise for our new fund weve got weve attracted many Sovereign Oil funds. And they are screaming for yield. Right . As you know. And its getting to the point of absurdity when they already own all these bonds. The german 10year. 4. So they need yields. And youre seeing it. Look out the window. Every one of these buildings is a bond to these investors. Every one of these things i can buy more treasuries. Which we print more over the ecb buildings. Or i can own a real asset which might benefit some day if theres inflation at 3 . So real estate guys are having to get used to the fact that were seeing a lot of strange capital in our market thats here for as a fixed Income Investment practically. I was talking to somebody the crown building down the corner just sold for 1. 9 billion. I think its a 1. 5 yield. I was talking to one of the largest Money Managers in the world saying are you crazy why would you buy this building. If new york city rents double youre going to get 3. 5 yield. He says you know we got a lot of money. So thats the attitude today. But theyre not going to cleveland. Theyre going to cities like here. How about hotel room rates. Hes going to europe. You have a strong dollar. Youd be rich. And i hear about what you just said and i just wonder if were missing theres a lot of money going places it shouldnt go. They have less money if oil stays down here. But think about how much think about central bankers and how much we have created and people worry about it going into places where it shouldnt go. You said it. If it doubles they get to three . Maybe that money shouldnt be there. Well you can certainly have that in other alternative investments. Barry, thank you for joining us. Every time youre here we feel smarter so thank you. Thank you. Coming up hes won six stanley cups including one here in new york. Hes the only player to ever captain two hockey clubs. Off the ice hes become a businessman and philanthropist. Well catch up with messier. And then later mel karmazin will drop in. And then top chef judge Tom Colicchio brings us power breakfast. Squawk box will be right back. Out of 42 vehicles. Based on 6 different criteria. Why did a panel of 11 automotive experts. Name the Volkswagen Golf motor trends 2015 car of the year . Well give you four good reasons the allnew Volkswagen Golf starting at 17,995. Theres an Award Winning golf for everyone. A few stocks on the move this morning. American eagle offering upbeat Fourth Quarter guidance. Pvh corps will close its izod Retail Division by the end of the fiscal year. It should not impact its wholesale business. And aeropostle better than people were expecting. Also raising its Fourth Quarter earnings guides. Up next new york sports icon turned philanthropist mark messier will join us to talk much more. A squawk shapnapshot is next. Hiring new employees can be tough. But it doesnt have to be. Because now you can post to over 50 of the top job boards with just one click with ziprecruiter. Find candidates in any industry, nationwide. Just post once and watch your qualified candidates roll in to ziprecruiters easy to use interface. Find out today why ziprecruiter has been used by over 250,000 businesses. They even offer a 100 satisfaction guarantee. And right now, you can try ziprecruiter, for free. Go to ziprecruiter. Com free30 mark messier is here. Are you more slaughter feminist or Sheryl Sandberg hes known as one of network ease iconic sports stars. Helping getting the stanley cup. Do you remember the winning goal . I remember it like it was yesterday. It was almost more than 20 years ago now. With us now mark messier. Nhl hall of famer. Hes with us to talk about the harvard versus yale rivalry at Madison Square garden this saturday. Theyre the two most storied College Teams and thats always a great event. I was surprised you said the highlight of your career was playing for the stingers. No. I had the distinction of being the youngest player ever to fold the league. And then you heard of buzzy who played for the swords. Real characters back then. It was quite a league. But learned a lot my first year as a 17yearold. Lets start with the game. Its saturday. Its an msg broadcast. Yes. Msg broadcast. Amazing opportunity for these kids to play at Madison Square garden. College hockey as you know is something thats dear to me. Me brother played in denver. I was on my way to denver. Bean pot is big. Those people stop everything. College hockey is big everywhere. 1900 was the last time since last year that harvard and yale met in new york city. They dressed in tuxedos and played in columbus circle. Its got a lot of tradition. But the product is whats very appealing. Great young players. And i never, you know was a big stingers fan. And then hockey in general until the flat screen high def i didnt realize its just it may be the best thing to watch. And in person now we go. And weve got a team in this town. Weve got a team in this town again. Rangers are playing awesome. But youre right. High definition has made a huge difference for the fan thats watching hockey. Its very expensive. Thats the only thing ill say. Decent seats. Luckily nbc is the broadcaster so i may have a couple connections there. You can go see this game saturday night for 25 a ticket there. Its an amazing opportunity to see these kids. You look at the rangers, theyve got six or seven who played in college and learned in the college ranks. Whats the difference between the playoffs and rick nash this yore . Experience. Is that what it is . Experience. You cant expect a guy because hes played in the league for ten years with little playoff experience to be a sensation. It takes a lot of experience to learn how to play in the playoffs. Although hes well into his career that doesnt make up the time theyre on a roll right now. Whats different about playing in the playoffs . A different game. The intensity is ratcheted up enormously. Opportunities are few and far between. You got to make your opportunities instead of sometimes in the regular season. Opportunities come your way despite chance. Big difference in the playoff hockey. Couple minutes we got to talk about some of your businesses and philanthropic efforts too. My main focus right now is building the Kingsbridge National Ice Center in the bronx. It will be the Worlds Largest indoor ice facility with nine sheets of ice. For full event venue. Were creating jobs. Were giving kids an opportunity that have never had an opportunity to get on the ice. Will be a fully functional ice Service Venue with curling, short track speed skating, figure skating, synchronized ice skating, sled hockey. Are you going to coach . There was a story in september you might be up for the oilers. You never say never. My main focus here is in the City Building this ice sheet, the charities i belong with and businesses. Do players make good coaches . I think youre a coach or youre not. You have that instinct. You come by it through your experiences and some people are better teachers than others. I think sometimes we get lost with the words of coaching and teaching, i think theres a good blend. Especially at the minor league lel you have to be a teacher before a coach. The professional league you have to be both. And they have to be balanced equally. You always remembered nbc was there before anybody else was. Will you remember that . Thats why were here talking hockey again. Youre welcome. Harvard yale. Very good. Thanks very much. Good to see you. Thank you. When we come back weve got the jobless claims nap number is straight ahead so stick around. And then media mogul and former ceo of sirius radio will joins up. Squawk box is live from new york after a quick break. The all new, head turning cadillac ats coupe. Its irresistible. Introducing. A pm pain reliever that dares to work all the way until. The am. New aleve pm the only one to combine a safe sleep aid plus the 12 hour strength of aleve. Have you heard of the new dialing procedure for for the 415 and 628 area codes . No what is it . Starting february 21, 2015 if you have a 415 or 628 number youll need to dial. 1 plus the area code plus the phone number for all calls. Okay, but what if i have a 415 number, and im calling a 415 number . Youll still need to dial. 1 plus the area code plus the phone number. So when in doubt, dial it out breaking news. Initial jobless claims. Welcome back to squawk box. Down 4,000 from 298,000 unrevised to 294,000. Continuing claims actually ramped it up a bit. From 2. 35 up to 2. 45 million. So up a little bit there. And were getting close tore 300 versus closer to 275. So many may argue that thats an important aspect to Pay Attention to. But really maybe the most important aspect today is kind of digesting the notion. The always evolving to some issue of whether theres going to be a fed normalization in 2015. Chicagos very own Charles Evans last night maybe put a bit of wet blanket on that notion. And it did show up in a bit of a yield curve. We talked about that a bit. Long an confined new sellers. If the short end finds new buyers and one way to find new buyers in the short end is to say 2016 would be the year. So we want to Pay Attention there as we flirt with 2 . Not a high yield by any stretch but a lot higher than the 188 level from two sessions ago. Back to you and congratulations on the new studio. Thank you, rick. Appreciate it very very much. We are back here at the table. Were here with mel karmazin to my right. Hes been at the helm of many media companies. Who better to talk about the latest craze for content, mergers, the future. We are very excited to welcome mel karmazin former ceo of sirius and former ceo of viacom. Thats kind of a lot. Thats what happens when youre old. You get to have done a lot of things. Now youve done all these things and youre watching all this is little bit, what do you make of all the consolidation thats going on in the media space and whether you think, by the way, the consolidation is going to happen. When i say that youve got Time Warner Cable and our Parent Company comcast. Directv, all these things. Youve dealt with some of the regulators in that instance when you were trying to put xm and sirius together. Its great to be a consumer. Consumers have a great chance to get more content. It really sucks to be at one of the media companies. Can i use that word . You just did so go for it. Ive been part of consolidation my whole career. As far as consolidating radio stations. And outdoor you had the visual for outdoor. Then realized that i need television. So i sold the company to cbs. Then i realized that i didnt have enough assets there because the advertising agencies wanted more cable. So i sold cbs to viacom and thought we had it knocked. Ill never forget in 2000 we had just done the cbs viacom combination. And i got a call. It was a sunday night. I received a phone call from one of our largest investors. Very well known media investor. And said called me at home sunday night to tell me we were toast because aol was about to do a deal with time warner. And you better get your ass on and airplane and get out to yahoo . So obediently i called up jerry yang and i forgot the name of who the ceo was at the time and when out there. Yahoo stock was at 120. And the feeling was that tim coogle and the feeling was you had to just keep getting bigger. You take a look and e soo all of the consolidation thats gone on in the Advertising Agency world. You see there is so much advertising inventory out there that there is far more supply than there is demand. In order to have the position to deal with advertisers, to deal with the distributors, you need to be bigger. You had adversaries to many of your deals along the way. People like netflix and others and other content creators who have come out against some of the other larger pipe deals. What do you think of those challengers, that challenge . I think people are doing things that are defensive and trying to use the government as a way of trying to slow down or add things to the problem. I can tell you that we filed a merger for sirius and xm. Two satellite Radio Companies. Both losing money. This was not exxonmobil. There were four congressional hearings. It took the fcc 17 months 17 months to say is it better to have two satellite Radio Companies or one . Now, there is no way you can make a decision that says you know what . Theres a big universe of competition. You know theres all kinds of but 17 months to get a deal approved . Just satellite. Is that thing that begins with a h, 1932 that your dad still uses. Theyre crazy. At the end of the day they still approved it. And it would have been okay if you said yes theres a lot of audio entertainment, but we dont like. And there were two democrats. At that point there were three republicans and two democrats. Both democrats voted against the deal. There was nothing stop the presses. You just said the competitors were using the government to slow it down. Sure. To get things added to it. The competition complains and you need five votes at the fcc. And the fcc standard is whats in the Public Interest. So its in the Public Interest that satellite radio continue to keep Country Music on in nashville. Okay . That would get my vote mr. Karmazin. And kevin martin at the time chairman believed in a la carte. And he said you want my vote i believe it is in the Public Interest if you offered a la carte on radio. It made zero sense. So if youre a betting man, i know what you want to happen. What do you think will happen . With comcast . Time warner cable and directv. Approved. On both. Because . Because it should get done. Its hard to find good reasons to stop it. And i believe at the end of the day its not anticompetitive. I dont believe there is any monopoly that theyre going to have. I dont think its going to be harmful. And i think that the competition doesnt like it. You mentioned the word a la carte. Other people talk about unbundling. Do you think that i mean it clearly changes the economics of the Media Industry if you unbundle. But it does change it for the better or for the worse . I think the idea of unbundling is good for consumers because it gives consumers a choice. But if im dish network, i want more subscribers, more revenue. I want my average revenue per user to go up i dont want it to go down unless im going to have that many more subscribers. I dont believe this quote, little bundle is going to drop to not have the broadcast networks to not have cnbc to not have all the great content out there. I think the vast majority are going to want the whole thing. I was trying to make this an example when dealing with the fcc. I dont think if you sold a left shoe and the right shoe and the laces separate that giving the consumer that theyre going to opt for that. I think they like the idea of them being together. Cut to the chase dpp you get out while the getting was good . Or do you envy the decisions that have to be made by these companies right now . I dont think the decisions are hard. Are any of them can any of them work out where we can maintain in my opinion when i give my investment banking, you know free investment banks advice the deal that should get done that should be absolutely would be the best deal that i would even invest money in would be the combination of time warner and cbs. That is a match that makes such great lodge erk. Time warner has a studio. They have cnn. Turner sports has a lot of sports. What about young people that what im talking about is can old media survive . Is there a way to we dont have any young viewers going to movies watching cable, watching network. Is it going to be okay . Are these two people with this sweet gig they got, am i in the right position because i only got 50 years left and they might have 80 or a hundred . All i can tell you is that the content is key. People are going to content. Theyll go to the media player thats here instead of the media player thats on television. You just mentioned cbs. I want to know the future of both cbs and viacom. Philippe just sold a lot of shares in december. What do you think is going to happen to that company . Both of those companies. One of the reasons that sumner and i didnt get long was we really werent that close. I cant give you an incite into sumner redstone. I can tell you shareholders in my opinion would be better off if cbs and time warner to combine. It just makes sense. Whats the reason it wouldnt work . You have a lot of cable. The cable will get carried. A lot of the cable wont get carried. The reason it gets carried is because they want the nfl. You know how long did it take time warner to blink because of cbs when they started talking . Right now dish network is at war with a cable news network. They havent blinked yet. If foxs game this weekend was on television and dish didnt have it, i guarantee you that deal would be settled. So if you are a content company, you need not just content, you need mustcarry content. You want to run another company . No. You dont. No. I want to i worked for 52 years. I think that right now what im doing is that if you think about the Department Store of life im running the toy department. I am doing what i want to do. Im doing it mostly not for profit. Do you have an eight pack . A six pack . No. You dont have i am not a pretty sight when i am naked. I know we dont want to go there. Children may be watching. Its not pretty. Im not going to grant you that. Its in the eye of the beholder. Youre looking pretty good to me clothed. So i wonder whether your workout has got ton the point where you have a six pack . No. But youve always had a man crush on me. I have. I dont have a problem admitting that. I wanted you to see my ability. You never saw any of that. Youre an object to me. But you look much thinner than you look in good shape. I got out of the army after being in basic training and everything and that was the thinnest i had ever been. I weigh ten pounds lower than then. And im wearing the same size pants that i used to get at barneys chubby department when i was bar mitzvahed at 13. We got to go. Hows your pal howard stern . Best talent ever. Not just radio. I mean look at this guy. Hes been successful in everything he has done in media. He has. And he says chubby all the time. You mean something else. You got to come back and bring howard with you. I have no relationship with howard today since im not working there. I know youre not his boss. But he did well by you and he did well by him. I did very well thanks to his great programming skills. Hes terrific. Mel karmazin, thank you. Thanks for coming in today. Up next breakfast with celebrity chef and bravo tv star Tom Colicchio. Hes going to be sharing his recipe for Business Success after the break. But first we are watching shares of ford. The auto maker raises dividend to 15 cents from 12. 5 cents. Squawk box will be right back. [container door opening] what makes it an suv is what you can get into it. [container door closing] what makes it an nx is what you can get out of it. Introducing the firstever lexus nx turbo and hybrid. Once you go beyond utility theres no going back. E financial noise financial noise financial noise financial noise that was joe of restaurant startup. He is a new york native. He will be joining us next tuesday ahead of a new season of restaurant startup. Maybe well get tips where to eat. Right now we have another chef whos cooking up success. Hes been one of the few in the city whos made the transition from head chef to businessman. Now has 14 locations including san francisco. Of course he is the lead judge on bravos top chef. Has a new show launching later this month called best new restaurant. Tom colicchio is here. And you brought us breakfast. I did. What do we have here . Breakfast for champions. Granola and honey. We make granola in house. This is an egg frisa and bacon. This is a fried egg with a croissant. Then lunch goat cheese and avocado avocado. Chick peas and roast turkey avocado, onion relish. This is all fast casual. Whats the price point on this stuff . Because its not cheap. The price point right now everything here is under 10. Right around 10. Were trying to keep everything under that mark. Although food prices are going up. We may have to break that barrier. As a businessman looking at this business, do you think now that whichcraft could be shake shack . We thought the whichcraft could be. Years ago when we opened up we stumbled into the sandwich business. But we realized this was a growth vehicle for us. Opening up restaurants takes a lot of capital. The the the are you surprised by the success of shake shack . Would you buy into that ipo . I dont know. Buy into it short maybe. Restaurants usually go up at a high number and then come back. But im surprised at the numbers. In terms of how much its valued at. Yeah. Especially when looking at the growth model. Ten stores a year. People think chipotle or panera or something in their early days. A fast food done . Like mcdonalds, do they have a shot . I dont think fast foods done. But i think people are looking for something healthier, something they can relate to. Theyre looking to food made with better ingredients, ingredients better for the environment, ingredients that are more sustainable. Theyre looking to grass fed beef. Is that everywhere . I think its everywhere its happening everywhere. Its happening to iowa st. Louis, everywhere. Im much more aware than i was a few years ago. I think people are. I think that its a combination of whats better for your body and also whats better for the planet. Just very quickly, you are potentially doing a deal with barry sternlicht. I heard you met up in the green room. Its funny. We are partners. Im doing the food for his new hotel in miami. And weve been working on this project for over a year now. And weve never met until here in the green room. Funny. We try to do that. This one is hard because its like which is your favorite child. But you have whichcraft you have the sort of fancier restaurants, and you have a tv show. Which is your favorite . By far, restaurants. I love doing whichcraft, its a very different business model. So it took some time to get used to doing this business. Business. Its very different than the restaurant business. There is nothing like opening a restaurant. There is nothing like Opening Night. Opening night, when you get a team of people together and pull them together for Opening Night and that first kid comes in there is nothing like it. Its like boxing night. The first round in a boxing match. When a concert is starting. There is this buzz and energy once you do it the first time you cant get it out of your system. The messiest thing you could pick. Are you auditioning for the today show . I hope there is no next segment. These are the notes for this segment. Thank you for being here. Youre welcome, thanks. The same zeal with the teleprompter. When we return look at it. And you had your feet massaged on the air. We have jim cramer on the big rebound in stocks. And what investors can expect in the trading day ahead. Lets get down to the new york stock exchange. Jim cramer joins us now. We had a couple of tidbits that have come up in conversations in the morning. I wanted to get your thoughts on what some of these guests said. Barry sternlicht owns 25 malls. Some of the anchors in those 25 malls have done well including jcpenney and macys. Others not quite so well. This is just 25 stores, 25 mules, not the entire universe. What do you think about that . Malls anchored by sears are really getting hurt because people just arent shopping there. Malls anchored by macys doing quite well. Jc penney we saw better than expected numbers. In the end i like retail because of gasoline. I also know pimco which is more of a strip are both doing really well. Im not going to condemn the industry. I think there is still opportunity. We spoke with former partner of danny myers and talked about shake shack. He is not going to say anything bad, but he says sometimes these restaurant stocks have high valuations and he wouldnt necessarily buy in. Danny myers, terrific guy. He is a friend terrific business book. When i start made restaurant i went to his mixologist. I think samestore sells will be good because thats the way he runs his business. Thank you. When we return a biotech stock getting a big boost this morning. Tomorrow jobs friday. Do y ou like to travel . Im all about free travel babe. Thats what i do. [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with efficiency . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the wellequipped volvo xc60 today. Visit your local volvo showroom for details. Among the movers this morning, biogen idec showing evidence of optic nerve repair in a midstage study thats being tested in patients with ms. Gw pharma shares dropping. The cannabis drug failing to alleviate pain in Cancer Patients in a clinical study. Mel works out. I wondered if you got to point, but i never had that in my life. Im going to see if its possible because i have a trainer. Another great day. We got to see so many people we were eager to see. Tomorrow we are going to be wrapping up a big week on squawk box with a jobs report. We have dick parsons and Larry Summers will give us his assessment of the economy. Steny hoyer on issues facing washington this year and much more. Squawk box begins at 6 00 a. M. Eastern only here on cnbc. Join us. We have a big day tomorrow. Join us tomorrow and squawk on the street begins right now. Good morning on this cold thursday welcome to squawk on the street. Im Carl Quintanilla with jim cramer and dave faber. Futures warming up after the best day for stocks since december 18th. More encouraging signs since the Holiday Shopping season. Oil struggling to get back to 49. It is down seven of the last nine sessions. Then the tenyear pivoting right around 2 after those fed minutes