Transcripts For CNBC Squawk Box 20160823

We did a piece on these flipflops. Come to the camera. She asked if she could get a pair of flipflops. We want to get her the flipf p flipflops and stuff with will give away a little later. Its not going to fit me right now. Its really soft. Id raet having it for fitting longterm. You gt me a large. I cant wear. Youll be working out. I know, that makes me you should have been a medium. Im going to try it on. Its the thought that counts. Thank you for thinking of anything. I would not probably have. You were on a quota, too, right . You werent allowed to you only could spend so much down there. This was personal. This was personal money. Because the expenses. He paid for this himself. Bought it with my credit card. Thats even nicer. You can write it off. I cant write it off. Who is reading this . I am. Were going to take a look at the u. S. Equity futures this hour. Thank you andrew. Very sweet. Take a look. Things looking positive for the bulls. Dow futures indicated up 66 points. S p up 7. 5. Nasdaq up 21. Story on the front page of the journal today points out this is the least volatile stock market weve seen over the last 30 days thats happened in the last two decades. Its been 20 years since weve seen such slight moves in the s p. Moved by 0. 5 in either direction only five times. Why is that negative. I dont know. The expression never short a dull market. This is more of the same sort of, wow, this market. The market slowly moved from prebrexit to new highs. And as everyone is staying at 2100 on the s p target, talking about a lot of uncertainty. A lot of uncertainty. Valuations. Last time this happened was 1995 and the fed was at a pause between hiking rates. This is a time where the fed the at a pause between we dont know. Its the same story as it was 20 years ago. Its goldy lox. They cant raise an election year. I agree with joe. Decedent economy going on. You think there is a decedent economy. Decedent. Not amazing, but decedent enough the job numbers are. Yes, all right. I agree with you. I think its he agreed with me. That means you. What is the transitive property. I dont think theres going the be playing with numbers. I dont think theyre playing, but the numbers are going to be good leading into the election. Lets check out what happened overnight in asia. Take a look and youre going to see for the close, the nikkei was down about. 60 . Shanghai comp and china slightly higher. Very slightly higher in the case of the hang sang. In europe this hour, pretty positive moves. The dax is up 1 . The markets in italy and spain. France is up. 60 . Take a look at currencies this morning. Youll see that the dollar is under a little bit of pressure. Euro at 13. 22. Yen at 100. 22 and pound at 131. P 6. I think these economic numbers are going the be hotter than a roll ex. Dirtier than a possums mouth. I used that earlier. Sara was talking over me. She wanted to take it back. Whats the other one. Shakier than cafeteria jello. Hell be on at eight. How long was he on 60 minutes . He was 60 minutes hes a giant. Why does Judicial Watch have to be the only place trying to get these emails . Why does Citizens United have to sue to get at them . Where are your heros . Where are you journalistic heros in trying to get to the bottom of this . Im looking at becky. Lets get you caught up on some headlines this morning. Goldman sachs out with a new call on oil and rally prices saying the recent recovery is fragile and not driven by fundamentals. Goldman arguing prices moved higher on expectations of a potential output freeze and firm holding forecast at 45 50 at present crude prices. Wti at 46. 96. Housing in focusing today. On the kbhik agenda, july new home sales out at 10 00. Expected to drop 2 . Following a 3 jump in june. Other data today, flash are manufacturing, pmi. Monthly rich mond earnings. Speaking of earnings, Quarterly Results from home builder toll brother crossing the tape in the last hour. Profits matching revenue coming in better than expected. Number of unites delivered and price topping forecast. Coming in stronger than the street had expected. Other stock to watch this morning, shares of tableau rise. What . I dont know. Tableau. What is it . Its a software. What does it do. I would bet it has something to with the cloud, probably, if its software. Probably has a more scaleable system, i would think. In terms of being. Youre really good at cocktail parties. Thank you. Im going to go work for mckin zi. I think right nowky ki can go. The new chief will also serve as a president used to run sales, sales and marketing on amazon well services. Hey there, cloud. Thanks. Wait, its a digital. Why dont you know . I just came back from rio a couple of hours ago. Digital dashboard. Take data from Different Services and manage your own integrated data. Oh, so its a digital dashboard allowing you to and a cloud. And a cloud. Im sure. Thats the only way you can make this work. Called it. Shares of zoes kitchen going in the opposite direction. Reporting a Second Quarter revenue miss and lowered Sales Guidance and premier disappointed wall street. Health Care Technology company loss worst than expectations. Revenue was above expectations. Heres this amazon music. I still like my apple music. This would be cheaper . It cant that different . Its more like a let beckty kel ty tell us a amazon stepping up music game. Launch sub skriscription servic tochl go against spotify. Amazon wants to launch both services in september, but hasnt finalized deals with major music labels or accomplishers. Seems like a big steppingstone before you can actually launch. So, i have an echo in my house. I have one too. Do you like it. Im still figuring out how to use it. Do you ask it to play music . You can say play hamilton. If they have the rights to it. They already have it. Its free. You dont have to think about it. If you want other songs it says please buy the song. This will replace that. They have to get all the rights figured out. But you also end up paying five a month. Or you could replace your apple. I mentioned echo and we got one a month and a half ago. I have no idea how to hook it up. Say alex. Ive had someone say to me, i bought this for you. And youre home. I gat ot it for a birthday present. Youre home all day long and its still sitting here. Are we sure you dont have to assume that youre on a reality show when you hook that up . Are people listening . I actually am worried about that. I think technically they are listening. They say theyre not listening. Theyre not recording. Amazon is not recording, but in the future i think within the future everything is going to be recorded all the time. Its whats going to happen. Can you imagine what i say at home. Can you even fathom what i say . Given whats happened during the commercial break. If only we could sell the off air squawk. Im not kidding right now. No, i worry about it because well i think in when you have deal knowledge or Something Else comes up, that does work. I also have the little thing. That thing. That you put it on the appture on all your things. I put that there too. This is to cover the camera so the camera cant see what youre doing. Camera on the phone. Camera on the computer. Why should we trust google . When have they given us any reason to trust that theyre not. The whole tradeoff, this is an old generation thought process with this. The millennials are very willing to trade off privacy for what they get back. I dont think people who are under the age of 30 will thinking that. Their experience. They would love the experience of being humiliated in front of the entire planet for doing something or saying something. This is a clash of the generations. This is not something that younger kids worry about at all. You didnt worry about that. I do a little bit. Can you come over to my house and hook this up. Im happy to do that. What do i need to do . How do you hook it up so your microwave goes on or something. Thats much more complicated. Whatky hook it up to do. Give you news, weather, play music. Just using any iphone and alexia. What do you need to hook it up . The iphone. Once it starts working you dont need the app. The app is for the installation portion of it. Are we going to do or chairs thing . I need to talk about the robot brothel too. I have a big question about whether theres a viable thing. A robot. Lets leave that as a tease. In the meantime, samsung shutting down music streaming service. Just two years after the launch. Did not provide specific reason for shutting down the program. As weve been talking about with the markets, investors are waiting for janet yellen to speak on friday in jackson hole. Joining us for a look at the markets and whats happening is sara hunt. She is Portfolio Manager at alpine funds. And todd gordon. Cnbc contributor. And sara and todd, thank you for coming in today and being patient and hanging out with us this morning. Been a blast. The off air comments were the best part of this whole experience. Am i right . Would you do a pay purview for that. Absolutely. Bring it back. Stream it live during the commercial breaks. Have we had you sign something about not talking about. No, but i come relatively cheap. What goes on here stays. Its like vegas. Lets talk a bit. Like a fraternity. Its a brotherhood of broadcast. Lets talk about the markets volatility. The lack of volatility is a bad thing. It could snap to a correction. Do you agree with that . I do. Its extremely quiet in here. Too quiet. Theres a lot of potential energy built up. I think theres so much going on in the go political front. It will turn into kinetic energy. Im sticking to by 2500 call on the s p. Fed is in a wait situation. All the macro environments are setting up. I do think it results to the upside. I think right now it definitely is. The fed is in a bit of a box. Even though they have being talk about rates they havent been able to raise them. I think that reaction function has changed and i dont think theyre going to raise so that pushing everything higher. This is artificial situation thats really keeping volatility at bay. And thats what happened back in 1995. Pause for the fed. It makes people really nervous. Journal points out that people are like updating the screens to make sure theyre actually on. In longterm happens and asian currency crisis happens two years later. By 2017, you dont mean by the end of you mean youve got until december 31, 2017 to get to 2500. Give me 18 months. Were just shy of 2200. Another 10. on the topside. I look around the globe. Sara and i had a great discussion in the green room before. You see bond prices right at the high. Gold remains big. All the risk on, feds on hold market, nothing has changed. The one thing that gets in the way is crude oil. Up against technical resistance. If crude oil does fail, thats going to be a problem, but this whole disinflationary, low inflation, bond signal could be the one impetus that could get in the way of the stock market. If it staying 20between 40 a 50, is that okay. Yes, if we can maintain that range. Goldman calls 45. Not too cold. Is that goldmans call. I think it is. Theyre so good. Were going to have to reat a time. They made that last week. Theyre so good. Rotate back into consumer skrergs nare technology. Pick up the reigns and charge ahead. Were not going to get it from Energy Materials and stuff like that. You need nmore spending. More consumer spending. I thought it was Business Investment were not seeing enough of. You need enough employment and better jobs for people to feel comfortable to spend ticket on bigger items. Between businesses not spending and restauranting starting to roll over a little bit. Some of that is starting to be weaker. Isnt that a factor of people maybe even having jobs, but not sure theyre going to last. I think its the insecurity factor. Thats been since 2008. Yes. How do we shake that . You need to see more Business Investment, but they need more confidence too. Its the ch chicken and egg. Its the same similarity between negative Interest Rates and what are we doing to do with interest markets. Theyre not low because theyre low for recession. Theyre low because theyre being stepped on. This is the ka numb drum and vicious cycle. Coming up when we return, sponsors dropping ryan lochte after he apologized for exaggerating. Joe just promised you hes going to tell you about robot broth brothels, the rated version. When squawk box continues. Youre here to buy a car. Welcome back to squawk. Were in the chairs. Ryan lochte lost all four major sponsors yesterday. Dropped by speedo usa, ralph lauren, hair removal company. Is that just hair off your chest. It may be nare like. And speedo saying theyre going to denate to a charity for brazilian children. Those have expired over the weekend. He apologized for what he called an exaggerated story about being robbed at gunpoint at the rio games. This was the story we spent the last 72 hours of being in rio covering. Joe was mentioning earlier this usa today story which sort of tried to take it back a little bit. The one from yesterday. You could see how you could be on both sides. There were guns brandished. Who were these guys . They werent cops. They really were cops that were working off duty as security guards. Did they show a badge. We dont even know who they are. Its all complicated. Im over under on this. Not that hes going to get a corporate sponsorship any time soon. Plans to make a career in entertainment in los angeles. I can manage him being on a reality show in the not too distant future. He was on one on e that didnt work out well. I he wants to play in the 2020 tokyo olympics. The question is what olympic swimming decides to do with him. Whether they will allow him to try to make the come back. Saw people comparing it to phelps getting caught smoking marijuana. It is a different story. Im not overwhelmed by looking at him in judging him as just a horrible person from this at all. Im not either, but the idea of somebody smoking pot versus maybe exaggerating and stepping up the circumstances and spreading to an international crisis. That weighing differently. No one had the intention of you loved that story. It was the water cooler story. You didnt want to do anything else while you were down there. Between, we had usain bolt, michael phelps, and this. Those are the three big stories of the olympics. The question i have for you guys, la is competing for the 2024 olympics. They made an effort to appear this is going to be a humble olympics. The u. S. Is this humble country and how theyre approaching it. Its basically la versus paris saying they didnt think that the ryan lochte situation would, but im curious if you were running the ioc if this would impact. The ethical standards in this company can rise to the level of the ioc in the history of how theyve handled things and the crime free rio where even the insinuation that something untort happened and that city where nothing ever happens. I mean, andrew. Im just asking the question. And there were some other. Michelle said, there were food shortage and things going on down there that maybe wouldnt reflect so well on rio. Look. Were talking about two developed nations. Paris, if you go to paris. Olympics should only be in developed nations from now on. Thats interesting because the other thing it does give an opportunity for certain cities to sort of put themselves on the map. Theyve pulled back a bit. The plan was to go to india and africa. The cost is too much. Places where theyve had the olympics, once they leave, the people are still in the. Where the money goes instead of necessarily for the thing. Well continue to see this play out. I dont know that lochte will have an impact on that. I think youll see developed nations probably have a bigger seat at the table for some of the next olympics. Maybe he could join us on our raeltd show. That pr guy he got is good. I started to feel everyompathye i he seems like he struggles to explain things. I dont know if hes a horrible person. Let me do this story quickly. I dont know you want to talk about this. People do want to hear this, but amid public outcry, congress is demanding answering of the skyrocketing cost of epipen. Now senators are sending letters to mylan, the maker of epipens. There is no generic version. Theyre asking the company to justify the increase. Officials back it up, prompter. Officials say the cost has gone up over 400 since twaikt. Congress members say theyre concerned parents cant afford the pens for children as they are heading back to school. Mylan declined to comment on the price hike. These are things that used to cost 50 60. Now cost 600. No generic. Didnt comment specifically on the price increase itself. Look, the deductibles are the reason that congress men are getting involved with this because their constituents are having to pay more out of pocket. Mylan, was inverted itself. This is heather brush, we had her on the ceo. Her father is the senator, congressman from West Virginia. Makes it all a little complicated. It does. The story weve all been waiting for. Joes looking at robotic brothels. There is a number one. This is a british tabloid. Whether were any near this, it say s cyber prostitutes could become a reality. One of the prostitutes kills someone and escapes. Theyre very life ai is assumed in the show to have gotten to the point. Theyre not saying that here, but theyre saying places like amsterdam, thailand, that have some problems with stds or child prostituti prostitution, its not great. Its not a great occupation probably for the women that are forced to do it. Its sexual trafficking. If you could do it with life like sigh borgs. Reduce the risk of sexually transmitted diseases, safers lives for working girls. And sigh borgs could cater for desire of sexual variety. Freedom from constraint or complications, the men wouldnt fear a lack of sexual success if they were unable to you know, in the Technology May become better at developing emotional bonds with their clients. My question. This is an economic story. It kind of is. My question is im looking heres a couple of the, these are real dolls, one of the worlds most accessible doll companies. Its a visual medium. Do you want to show the viewer. No. Theyre dressed in bikinis and stuff. They are like dolls. Im just in general if they have not developed ai, is like is that okay with the robot . Isnt there need to be some. This is the conversation on commercial breaks. You need a connection. My point is mums already do this to each other. They completely dehumanize. People do it for money. Look, it happens all the time with actual humans. You know. But guys always. The guys still think i think she likes me. But its delusional. Thats suspend your disbelief. Weve been deluded for a long time. Yes. Andrew, what about a rubber doll. Right. Thats what i mean. Its already there are already people who have this emotional disconnection. Some people need an emotional connection. Clearly some people dont. I think we needed to be in commercial about four mings ago. They need to pace the development of this. Campaign showdown. More emails now causing trouble for Hillary Clinton. And donald trump postponed the major immigration speech. We had kelly ann on yesterday. We understand where they are. Some stuff is tbd, to be determined. Well talk about the campaign trail next. As we head to break, look at s p 5 500s winners and losers. Experience more confidence regardless of the conditions. Get great offers at the lexus golden opportunity sales event. Get up to 5,000 customer cash on select 2016 models. Ends september 5th. See your lexus dealer. Some say they lost sosomeone they loved. Ng. Many say its to save lives, as many and as often as possible. Theres a hundred reasons why someone becomes a doctor. But at md anderson, its because theres nothing, and we mean nothing, we wont do in making cancer history. Hello prashant bhuyan. Cofounder of the Fintech Services startup. Hello watson. Your analysis of social media and conversations on various trading floors, helps us uncover insights. Insights that help investors predict market closes, well before markets close. You know, your analysis has helped us improve our predictive accuracy by over 500 . 550. 2, to be precise, but we can always do better. I like your attitude watson. Welcome back to squawk box, everybody. This is cnbc. First in business worldwide. Been watching the u. S. Equity futures. They have been higher this morning. Still about 60 points above fair value. Nasdaq up by 18. Check out crude oil, which was down yesterday. Its down once again today. Decline of just over 1 . 46. 88. Okay. Donald trump is postponing a major speech on immigration. Meantime, the state department is planning to release nearly 15,000 more emails from the investigation into Hillary Clintons private email server. I might have flipped those, john. Thats just mean. John harwood joins us now with new poll numbers and latest on the campaign trail. Do you have the cnbc monkey stu stuff. Reporter i do joe. Are you getting undermined by the producer in the order of your intro. If you wrote your own, why didnt you reserve the order. I didnt write it. Producer wrote it. Right, but it seems like you feel you got a little sandbagged there. I thought you wrote your own int intros. Reporter no, i didnt write it. Kidding, john. Those are i will tell you though, i looked at the papers to see how the different publications would report on the story. It is funny. It always is interesting i think how you know how it is characterized. Anyway, you go ahead, john. Both stair stories are interest we had Kelly Ann Conway on yesterday and the immigration is tbd. I understand it too. People want trump to pivot and when he pivots they say what are you doing pivoting. Reporter you cant pivot away from who you are and donald trump is weve gotten to know him pretty well over the years. Look, no one ever really thought theres going to be squads rooting out 13 Million People and sending them out. Its impossible to do and everybody said its impossible to do. I would agree with that, but trump said it was possible. Everything has been a negotiation with this guy. Heading into a certain direction and seeing whats possible and what you get from the other side. At least head in that direction. Thats one way to look at it. Good. I think thats the way we need to. Reporter okay. Let me talk first of all the campaign as always is a study and contrast. If you look at the nbc survey monkey poll, you see Hillary Clinton holding a large lead over donald trump. 5042. It piqued at 10 points a couple of weeks ago. Nine last week. Coming down a little bit, but Hillary Clinton still if you look at the battleground states has a substantial advantage lek to torially. She feels confident enough to go on jimmy kimmel and joke about the rumors that have been started about her health. Speaking of rumors that have gotten started. The new one is youre unhealthy. You had a concussion. That Rudy Giuliani was on fox news yesterday and today and saying you seem to be sick. You look tired. Et cetera, et cetera. Are you in good health . This has become one of their themes. You take my pulse while im talking to you. Make sure im alive. Oh, my god. Theres nothing there. Theres nothing there. Back in october, the national inquirier said i would be dead in six months. Every breath i take, i have a new lease on life. Humor is a way to deal with rumors like that. Chi should say theres no evidence to support the rumors. Donald trump is getting serious on a different topic, the Clinton Foundation. The release of emails between interaction of the clinton fusion and state department. Calling for a special prosecutor. I dont think anyone is going to hold the breath for appointment of special prosecutor. Its an issue and donald trump is going to press it. Yes. Not going to go into the emails. It is a little bit what i keep hearing is i always hear the email story introduced with republicans are saying and thats getting a little bit weird. I know theres that goes back to the original vast right wing conspiracy. A lot of this stuff. A lot of the stuff is getting reported in the liberal New York Times. Just reporting what Judicial Watch and Citizens United have found out. Theyre not the ones suing for the information. Theyre not the ones chasing down the story at this point. New york times did have a big issue on the Clinton Foundation on the front page. I would hope so. Its the time story that led to the whole conversation. I dont know. They havent they havent followed up on it. Thats the big story. Heres the thing, joe, they wouldnt all be reporting it as coming out of the Judicial Watch if Andrew Sorkin wasnt sitting on them and trying to suppress the honest discussion of the issue. A lot of the stuff is in the server and the pay for play, a lot of that stuff has nothing to do with republicans. That doesnt matter who said it. These are things that were done. I just wish. Sure youre right. Thats a serious issue, but the only question is what is the play exactly. Is that what we havent seen. Wow, there really is nothing there not for you. I wish you could take ethical poll. It was beckys arm and she had a strong one. Thats why jimmy kimmel said i feel nothing right now. Heres the serious part of the Clinton Foundation and state department, we have seen people communicating with one another. Weve seen people seeking meetings and in some cases there were emails that came out yesterday that somebody got a meeting. We still havent seen all that much in terms of the actions following related to the request. So for example, when you had the guy sha gorry, the big do anymore to the Clinton Foundation who wanted to see substance expert on lebanon, well he wasnt connected with the guy. Doesnt matter. If you thought you were going to get connected and gave the money and it didnt happen, that doesnt matter. You were buying. Why. Because you thought it might work and thats what resulted in your giving the money in the first place. Reporter well, thats what every political donor gives every large political donor has a motivation for something. The question is what is done in response to the donation. She said that looked at every individual email to see if there was anything business related. Clearly not true. Another 15,000 that they didnt not look at. They supposedly put in words that they were going to distinguish between business and nonbusiness. These are 15,000. The Clinton Foundation and the emails bother me. Also bothers me i dont know more about the trump businesses or what he would do with that. He says the kids would run the foundation. Thats not using government influence to enrich yourself to the tune of 100 million. We dont know that. Not to this point. In the private sector accident anything is . If he were president , its not enough to have a blind trust in the situation. Ting Clinton Foundation, the emails bother me in a huge way. Its too late to do it now. She was secretary of state. There are questions if either one of them wins. We have dan rather on harwood later. Im going to ask him whether hes got connections at 60 minutes. Because i dont know what theyre spending all their time. He probably does. What are they doing while this is going on. Twid lg their thumbs. Thank you. Wow. I guess the ethical thing is called a polygraph. Is the way you would be doing that. I would love to have that hooked up. Coming up when we return, tell you whats going on, qualified coders. Education Company Holding boot camps to get workers ready for employers like ibm, t. Ceo on in just a moment. [announcer] is it a force of nature . Or a sales event . The summer of audi sales event is here. Get up to a 5,000 bonus on select audi models. Welcome back to squawk box. In the executive edge today, boot camps for technology and programming skills. A lucrative Business Opportunity atracking the businesses looking for major talent. Galvanize offers coding classes in campuses in nine different cities. Youre now teaching people how to code. And effectively helping them put them in position to get jobs at all sorts of companies. Companies like amazon and others are picking up your students. Thats correct. How much does it cost . We all valbelieve any with te and determination should be able to succeed. Its a Six Month Program to learn to be a developer. 21,000. Whats the background of most of the people. The background are usually somebody that typically has filed some post second darl education. In their late 20s, early 30s. Usually ended up in one of three categories. Unemployed, which is the worst. Underployed or a third category. Unhappily employed. Most of these folks are career switchers and want to have the opportunity for true upward mobility. One of the things people talk about all the time, if we could just teach everybody to cold, we could upgrade entire Employment Situation in united states. Is that possible . Is that real or overstated. I think technology has a new common denominator. A new base. Any level of Technology Literacy is super important. I dont think everyone is going to be on that path. Do you offer financing . We do through lending. Not directly through galvanize, but lending partners. Skills funds in austin, texas. One of the things people talk about is instead of offering pell grants or different type of government grants, to anybody who wants to study anything, it should be based on what they study. You might offer a better loan at a better rate to someone going into coding than someone going into dare i say russian literature. Does that make sense to you. It definitely makes sense. With most of our lenders, we are taking some level of shared risk in lending. Were just basically an arbitrator of quality a lot of that is, judge on a starting point of salary entering and exiting. Steve lore did a piece on us. He profiled three different students. One was paul. He had an undergraduate degree. Was weighting tables making 20,000 a year. Went through the program, the Data Science Program in this case which is 12 weeks and 17,000 and paul now makes a six figure salary. Thank you, sir. Its great to see you. Thats great. Youve raised the fortune, by the way. 45 million. Abs capital just let our series b announce last week. Are you going to have to sell this company at some point to make them happy. We will make everyone happy we hope. Capitalism can be used for good and we aligned ourselves with a wonderful partner. Thats a someone argues with you about that people dont believe capitalism can do good. That should be a mainstream proposition. I thought it was. I did as well. But youre right in this day and age. I think you do need to emphasize that. Were all in sync here. Good. Capitalism in certain circumstances can be good. Thank you. Thank you. When we come back, choppy waters ahead for shipping containers. Details right after this. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Welcome back, everybody. Peak season is kicking off for the container shipping business. But this years forecast is looking a little bit choppy. Morgan brenner is here and she has more on this. I think choppy is the keyword here. M as retailers and other Consumer Industries stock up on inventories ahead of the day. Were off to a slow start. Thats what the report of long beach is calling this on the heels of the 7. 7 drop. Theyre citing market uncertainty and high levels. Thats plagued the transportation sector all year. So weve got that on the heels of the National Federation global port tracker report. That forecast, peak season activity will be flat. Possibly even negative this year. Compared to last year. It also estimates that imports will fall 2 or more in august and september. Adding to the sentiment, Expediters International noting a filing that transpacific capacity basically how much car go can move between asia and north america may shrink 4 in september. The firm does not, quote, recall seeing capacity pulled prior to the peak season in the last six years. Or since the mismatch. Coupled with too little command globally speaking. Many analysts are now expecting this key season to be muted. I would say this is a bit worrisome because 98 of the worlds manufactured goods move by container ship. When you see these numbers, it raises questions. Mismay be a selffulfilling prophecy. We had the ceo of macys joining us and they got burned really badly last holiday season. They had way too much inventory. It turned out to be a warmer than expected season. They had to give all that stuff away. July is when the retailers planned for their next season. He said were going in much slimmer than last time. Theyre not going to get stuck with as much inventory. They want to make sure they have profitable sales. It may not even be a lack of demand from consumers but retailers who got burned last year and said forget it. We want profitable sales. It makes sense. Because we saw a surge in inventories. From my side of it, the whole first half of the year from truckers to railroads to logistics companies, high inventory levels are what have been cited through and through. That does make sense. On the flip side, if we see larger demand, we could see a big spike in the last couple months of this year. Well see. Thank you. Coming up, retailer best buy is set to report. Well bring you the numbers and reaction. Then later, the author of in trump we trust is here. Conservative columnist ann colter joins us to talk about the race for the white house. I think the book comes out today. Its her 12th, i believe. S squawk box will continue. Im anne. Im a scientist. Why dont you let me. And me. Help you out . Youre gonna hear what i say. I love taking stuff apart and building new things out of it. Anne pals my most advanced annedroid. [gasps] this is awesome. Oh anne you havent seen anything yet. Announcer give your Cardboard Box another life. Thats why a cutting edgeworld. University counts on centurylink to keep their global campus connected. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. Goldmans new call on oil. Why the firm says you shouldnt get too excited about crudes rally. Plus what investors should take away from yellens speech this friday. Well talk the state of the economy in minutes. Tech jobs wrecks. Cisco, microsoft. A look at where the next round of cuts could come is straight ahead. Plus ann coulter is here to talk her new book in trump we trust. Were going to talk about the shift in american politics as the seconds hour of squawk box begins right now. Live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernen along with becky quick and andrew rothss sorkin. Were getting a boost from action were seeing in europe. Most is trading higher today. Were kind of in limbo trying to figure out whether the fed is just once again talking tough about september which i think or whether there is a possibility that they think things have improved enough i think theyre looking at december. Theyre just trying to talk tough until then. After november. Right. That would make sense. Although its still an election year. I guess by then you could do it. Its after. You wont influence the outcome. Youre influencing the outcome by waiting to do it based on influencing the outcome. But thaur going to be very gun shy about being accused we can continue this conversation. Anything to rock the boat. Meantime, some headlines for you this morning. Were going to get to some fresh Housing Market data in a few hours. Out with new home sales. Thats coming up july. Consensus forecast calling for a 2 decline. Also volkswagen has now settled a contract with two key parts suppliers. It will be able to continue at german plants affected by lack of parts. Toll brothers matched estimates. But revenue was above forecast. Thats the good news. And Electronics Retailer best buy we said would be out with quarterly numbers. Here it is. Earned by 7 cents a share. 14 cents above estimates. Revenue was also above forecasts. Were seeing a big move in those shares up almost 13 on the news. This isnt the big quarter. Interesting. Fourth quarter is the big quarter. Theres not volatility in the overall stock market. You see individual stocks that are vulnerable. Thats a nice move today. And the demise of this company has been many times. That people shop at go look at best buy and then buy somewhere else online. I think theyve bolstered their digital presence to some extent. And they also figured out how i went there, bought something, then they lowered the price like three days later. And i went back and said will you lower the price. And they did, right . They didnt. But then they replaced the guy that was there. They didnt lower the price. And i said so i can take it back and buy online for that price. Yeah. I said you can keep the sale unless you really want to take it. But they knew you werent going to take it back. I did. Yeah. They canceled it. Well, dont get too excited over the rally weve seen in oil prices. Least thats what Goldman Sachs is saying at this point. The firm says the recent recovery is fragile and not driven by fundamentaling. The firm is holding its forecast for brent to 45 to 50. Thats interesting. For awhile we had seen a big spread between wti and brent. Not so wide today. Youre looking at wti at 47. 04. Brent at 48. 75. Goldman thinks its going to stay. A lot of markets seem to be playing the waiting game with many looking for answers. Janet yellen joining us now for some insight into these eerily quiet markets. Thats quoting i think david leibovitz. And steven rishuto. Well start with the economist that we have on board. I couldnt tell whether you agreed with me that they wont raise or you thought it was a cynical viewpoint. I dont think it is. Again, to your point im much more in your camp than beckys camp about the fact whoever gets in in this kind of election is going to be beholden to whatever the fed does anyway. So the december date is immaterial. Its the data. Its not giving them the excuse. The result is i think theyve backed away from it. Whether they do it december or not is something. Would something that janet yellen says on friday, does it matter . I dont believe in anything she says anyway. It seems like theyve played us so many times about oh its a live meeting. And it was never really a live meeting. Or the slightest thing on the planet can scuttle their best laid plans to raise. I think youre looking at a committee that wants people to believe theyre ready and willing to raise rates. And theyre not willing to do it unless they have the dau da ta. The problem the market goes from youre all in or all out. Theyre trying to be gray. Thats the disconnect between the markets and what the fed is saying. They want everybody to feel theyre in this gray zone. They could move, might not move. The market says youre not going to move again. Is it a big deal if they go a quarter . Should we think of it as some pretentious thing to go up a quarter po i want . Does it affect the yuan a certain way . Thats what im told. Theres all this linkage. There are linkages. But a quarter point . You say it like its nothing. That is nothing. Look what happened with spreads. Spreads are out fairly wide already. They went from 2. 5 growth somebody searching for 21 basis points is big. You say whats the point of 25 basis points. The economy eke thats assuming that 2 or 1 that one or the other dictates whether the economy is good or bad. I dont think 2 is good. Do you want to take a chance from going to 1 to 0. 5 . Negative rates arent helping. Maybe the economy and what happens has nothing to do with where rates are. Negative isnt great. Zero hasnt helped. I disagree. Zero has. The definition of insanity is you keep doing the same thing and getting the same result. I think the Federal Reserve should be at zero Interest Rates. Because the globe is so and the economy would do better. So theyre responding to the globe. Theyre responding to zero, not causing zero . I think theyre causing the problems that theyre creating themselves by their vacillation and by their commitment to the wrong process. Theyre looking at labor market data. So what do you do . You make a good point. Now we have the rumblings about where is the neutral point . It makes a quarter point move matter that much more. I range from the range of 50 to 75. Is it going to move the needle for the economy . No. I think low rates could be hurting the consumer because Interest Income is at its lowest level in over 50 years. But i think to your point this is a data dependent fed and we need so to see if yellen prime this pump on friday. I mean, i remember when going from 8 on the 10year to 5 on the 10year made a difference. Thats a commentary on where we are down here. Its a commentary. You should have left well enough alone. At zero . Yes. What do you do about all this . Theres lots of things that should be done about this. Unfshlt washingtons not in it. Were dealing with excess supply, number one. Versus excess demand. Im not saying what the fed should be doing. Im saying you as an investor should be doing. Oh, as an investor, theres several things to do. Well let david answer the question as well, but the answer is grab yield wherever you can. Whether its in yielding stocks or whether its in yielding bonds. Youve got to grab yield. Theres no credit risk. Theres no Business Cycle risk. Do you look at the multiples right now and say theyre too high . One, i would agree investors are more comfortable picking apples off the tree whether or not making sure its going to keep growing. Its made all these defensive assets you couldnt pay me to buy well, they do. There are people who look at multiples, theyre being if youre not going to get a yield if youre going to get a negative yield, gold doesnt have yield. Buy gold. Or dividend yielding stock. Its an interesting that the breadth of the universe of asset has grown. People are much more Comfortable Holding gold than they were. But to your question, with multiples where they are if rates start to rise, thats going to be a head wind for the equity market. And as a longterm investor relative to defensives from a valuation standpoint, cyclicals still look cheap. Wheres the s p 500 at the end of the year . I think we are slightly higher than we are today. Around 2,200. Slightly higher though . Yes. Its the biggest bond market probably were at negative. Its the biggest bond market bubble historically. Sooner or later, i dont think we go to minus 5 . So its going to change. But i dont know how much it has to rise to derail the s p. I mean, why couldnt it go back to 4 before you really start you know, before you start seeing the valuations . I think that leads to a rotation. I think we need to be sensitive to whats going on globally. The European Data has held up much better than people expected. If the ecb disappoints, were going to be back to where we were when people were questioning how the policy was going to be. It was because rates were so low at 5 . What is whats the normal what is the peak multiple at zero . It could be 25 again. Exactly. I would say theres an element of exuberance around the tech bubble that isnt present today. I think people are still cautious. And thats why were seeing the income. Thats the wall of worry. We dont want people complacent. I would agree. Better to be cautious than overly optimistic. You dont tell people what to do with their money, do you . Youre an economist. God forbid. I also dove nail strategy as well. They should never let an economist in that. Thats your opinion. Not everybodys opinion. Ill tell you the basic issue going on here is a simple one. Youre making a statement that Interest Rates are in a bubble. I disagree completely. Theres a world of excess supply. Theres a world of excess savings. Youve got Central Banks buying assets left and right. Youve changed the dynamics. Would you agree that bonds are would you agree that bonds are at a top . If the Federal Reserve raises rates again, we could go to 12 0 on the 10year note . The answer is 150 is not necessarily the top. Its a function of the dynamic as to how its close enough for me not to lock my money up for ten years. I wouldnt either. There are other things i would do. There are some Corporate Investment what can i get in a 1year . I could get 5 in preferred stocks if i wanted to. But thats thats a fixed income surrogate. I would go out in the kompt bond space and get some stuff. Or in the high yield stocks. Even though Central Banks are going into corporates too. They have to. Theyre just they bought everything else. Thats part of the process. Thats why im saying these things are not a bubble. Fundamentally different. Must have a dim view of Global Growth prospects then. I do. I think the global expectations, the economist expectations of Global Growth higher than they should be. Based on the savings glut or something . Again, the savings glut is a function of more corporate savings. How do we get into this slow growth mess then . Basically you transfer from a world of excess demand to excess supply. The globalization of wealth. And earnings expectations on a threemonth. At least you admitted its because of that. Were going to bring it back. Because were going to make America Great again, someone once said. Thats going to be done nationalistically. Ann coulter is coming on. Are you going to wait for her . You might get to meet her. Guys, thank you. When we come back, a job in i. T. Is not what it used to be. Are more layoffs looming in the Tech Industry . Well look at why some of the biggest names in the valley are cutting jobs. And later, author, syndicated columnist ann coulter will join us to talk about her new book. Squawk box will be right back. Used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Welcome back, everybody. Some dark clouds looming over the Tech Industry in the wake of recent job cuts. Cisco is the latest company to lay off thousands of employees. Tech job cuts are up more than 70 compared to where they were at this time last year. It has a lot of people wondering is there more pain to come. Joining us right now is roger kay from a tech Market Intelligence company. Roger, this does feel a little different. Some of the biggest names in technology laying off thousands of people who are highly qualified engineers. Whats causing this and is this the new reality . Yeah, becky, it is. Essentially what youve got is a move from a kind of holistic hardware based company where skills are now moving over to a more Software Based. You have fewer engineers that can do more work, provide more value, and essentially the cost structure of the Old Companies isnt what it needs to be. There are a couple other things. Theres saturation in tech markets. Theres competition. Cisco in particular, for example. It used to sell internet switches. When the internet started out, they could sell switches by the boat load. Now they have a situation where they are converged appliances. Youve got a switch, storage, and server in one box. So competition, saturation, and a shuft of the cloud. Everyones leasing space essentially from amazon and google and microsoft. And so you dont need to have all those hardware engineers anymore. What happens to those hardware engineers. Can they be retrained or are they just kind of left in the dust with no way of reentering the workforce . Well, a little of both. I see a lot of guys entering other businesses. They start Small Companies themselves. They try to join other companies. If their skills are really out of date, then its hard to do something. But a lot of them could reskill. Theyre highly educated. You know, if they learn how to Program Software programming is still highly in demand. And there are good case example here. Erickson. In 18 months about a year and a half ago, they had about a 3,000person change net change in their personnel. But that involved tens of thousands of people leaving and tens of thousands more joining up. So it was close to a net zero. It was a slight negative. That shift was all about old Line Hardware engineers moving and and now people moving in. Roger, all the companies we just showed are what might be described as Legacy Technology legacy companies. You dont have on that list google, facebook, the like or even an apple. Do you think that that dynamic is going to change . Well, you know, the sort of five horsemen or whatever you want to call them which includes apple, they are actually in pretty good shape. Theyre Software Based companies. Theyre leading this charge. Microsoft has gone through a lot of turmoil and let a lot of people go. But they also hired a lot of people. Apple is the one really interesting exception because apple still has this different model. Theyre a hardware company. They make money selling high margin hardware and the software is a way to sell the hardware and services. So yes, they have a lot of software. Roger theyre making a lot of money doing it. Net, if you were to count up all of the people in tech land getting jobs versus losing them, what does it look like . Well, i think therell be a net exodus. You have to realize were in the middle of consolidation. You can say were in the earlier stages. Look at the more Mature Industries like aircraft and automobiles. I mean, hundredyearold industries have consolidated down to two or three companies. And in tech, theres still quite a lot of companies. The way were going is towards fewer companies, less personnel and more consolidation. So i think that is the direction. Roger, outsourcing, how big of a problem does that play into this . Or is that a nonstarter . I have heard from other people. Outsourcing was a big deal awhile ago. But its not as much anymore. Because the new model is really cloud services. Im a cooperation and ive been running a data center and i have lots of people in it, i can say, you know, im going to have some programmers. Were going to write this stuff and run it on amazon. Well just lease space on amazon. Then when christmas is over well go back to less space and amazon will accommodate us. So thats a good model. Ill use less people doing it. Itll be maybe cheaper in the long run. That doesnt mean i need to move data centers to india or something. All right. Thank you very joining us today. Youre welcome. Coming up, north korea taking Tv Technology to the next level. I say that somewhat sarcastically. Well tell you about it after the break. And later, donald trump calling for a special prosecutor to investigate donations made to the Clinton Foundation. Ann coulter will be here to talk politics and your money. And earnings out from best buy. That stock getting a nice pop. Well hear from an analyst about that. Squawk returns in a moment. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. Welcome back to squawk. A little news for you. North korea seems to be at the forefront of some amazing technological advances. North koreas state broadcaster Korea Central Television is now introducing a rokuesque set top box that will allow those to have documentary films about the kick family dynasty. Saying, quote, if a viewer wants to watch an animal movie and sends a request to the equipment, it will show it to the viewer. It explained how they can search through listings and replay favorite broadcasts. Unfortunately only a few thousand people will get this because they have to be approved by the government. So in case they havent heard of something called netflix, welcome to the world, people. This is a ridiculous story. But north korea making a big deal of it so were pretending to make quite a big deal out of it. Going to turn us to rubble for some reason. Dont they say that . They say it a lot. But hopefully did you see the movie olympus falling . Theyre trying to take over the white house. The North Koreans are . Bingo. Saw it yesterday. Would you go if there was an opportunity to see it as a journalist . Totally. Absolutely. Why wouldnt you . Because i wouldnt set foot in that place. Im afraid of a guy getting a souvenir and doing hard labor. You wouldnt be an enabler. Id be asking tough questions. Which they wouldnt let you. We should think about this. We have tough questions to ask her. We do . Ann coulter coming up to discuss her new book. Shell talk Hillary Clinton and donald trump and the shift in american political issues that matter to your money. As we head to break, take a look at u. S. Equity futures which are indicated higher at least so far. Okay, so you launched your banks app. Now what . How will you keep up with the new demands of todays Digital Economy . The fact is some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial Services Companies Think digital, be untraditional, and reimagine what the bank of the future can be. Our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. Were creating new platforms across channels so customers can effortlessly invest, borrow, lend, transactwhereverwhenever they choose. And were digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. Digital works for banking and Financial Services. Lets talk about how digital works for your business. Welcome back to squawk box. Shares of Electronics Retailer best buy surging in premarket trading. Beat estimates by 14 cents with quarterly profit of 17 cents per share. U. S. Same store sales up 0. 8 . Now, analysts had been forecasting a drop in comparable sales. Stock up now 14 in the premarket. Samsung will shut down its u. S. Streaming Music Service next month. It did not say why it was ending the service which will still be offered overseas. I didnt know they had one which may be the reason. Amazon is going the other way. Rico reporting its works on a 5 per month Music Service that would only work on the echo hardware. Its hoping to launch for next month. But that wont require alexiale help. A game against the rays last night, steven souza hits what he thinks is a home run. But red sox rookie Andrew Benintendi makes an amazing catch. He goes teetertotter to reach over the low fence in the corner. And haul this one back. The 22yearold is playing in just his 19th big league game. Wow. That was a nice catch. See this intro. I havent looked at it, but im going to read it well. While trump has been taking the heat for his unconventional president ial stumping, it doesnt seem to be hurting his efforts to raise money. The republican nominee raised over 84 million in july. Thats just 10 million less than Hillary Clinton according to the l. A. Times. Our next guest says thats because donald trump in her words is the heart and soul of america. And her new book is out this morning. She says that hes the only plausible candidate that can save america. Joining us now, ann coulter, the author of in trump we trust. Good morning, ann. And i saw ive already seen some of your comments. Ive already used some of your comments this morning in terms of, you know, the latest grilling is coming. Now he pivots on maybe not deporting 13 million which you think could be as high as 40 million. And everybody wanted all the left wanted him to pivot because hes such a heartless racist bastard. They want him to pivot. Now he does. Now hes a flipflopper. But your point is that one candidate is trending this way with immigration issues. Maybe open borders eventually or whatever. The other one is at least thinking about somehow enforcing current law in some way although we dont know what the end result will be. I dont think there is going to be any pivot in any meaningful sense. I mean, this is Donald Trumps signature issue. I remember during the primaries, there was an off the record meeting with the New York Times editorial board. I heard for half the primary he was flexible on a wall. Hes not. If theres one thing were going to get out of a trump presidency, its a wall. If he was flexible, if it was this to be determined answer weve gotten from kellyanne conway, is that a problem . Yeah, no. His election is over if he were flexible on the whole plan. But she was answering only on the deportation force. Which was always sort out there anyway. What is rain shower clear is we get a wall, i. C. E. Can do its job, wave reduction on muslim immigration and probably overall. Thats what his immigration papers said. What are the chances any of this happens . If he is president . If he gets elected at this point. I think its more likely than not. Zblechb given the polls . Yeah. Ive just always thought that. Just as a gut . I mean, look. I thought it was 90 hed win the primary. 60 hed win the election. Well see. Maybe im wrong. Maybe im right. Before anybody else called that, you were saying that. Thats right. Yes, i did. So you should hang on my every word now. We have a lot of time left to go. Why . Because of his three main issues. Immigration, ending the jobkilling trade deals, and, you know, ending these endless pointless wars in the middle east. I think those are popular policies. As i say in my book, im sorry you dont have copies. Ill send some so we can discuss it fully. Nobody said people say trump only want him because of his personality. You dont look around the country and say we need a reality tv star in the white house. It is his issues. In the last 24 hours nothing thats come out about Hillary Clinton would indicate that maybe this is going to be fluid . You mean on the foundation . The foundations not new. A lot of this is new. The 15,000 emails where she said absolutely they all had been released. And more pay for play. But whoever the democrat is so the stuff that trump said, that came out of his mouth is that much more defining than what the clinton what Hillary Clinton has done over the years . Ann, youre making a point that its not the personality. Youre saying its the issues. Right. I think shes not a good candidate. But whomever the democrat was except for sanders. App lot of his issues were the same as trumps issues. Protecting american jobs. Do you want to see his tone it down and stick to the policies . I think what hes been doing. And the media is paraphrasing it. But the speeches hes been giving basically the past month i can tell the viewers with look at the speeches. Theyre fantastic. Which is why the media is not showing you those. But do you want the teleprompter version of donald trump or the offprompter version . My personal preference is the crazy comedian. But i dont think it works. I said it was my personal preference. I like what hes been doing. And hes been giving beautiful perfect speeches. Which are its not like its a new person. Theyre all of his positions its just he stays on topic and theres a logical progression. When hes reading off the teleprompter. When hes doing that thing where hes doing standup, the points are the same. I think its hilarious, but no, to look president ial he ought to stick to the teleprompter. Does he need to look president ial or can he go on twitter and get off message going after people on morning tv . Well, i love the twitter thing. He can do both. The reason i like the twitter part is he has to get past the media. Which is a large focus of my book. How heinous they are. Sell your media stocks. But twitter and the speeches he gives, this is the most direct, you know, from the candidate to the people. Hes communicating with millions of people on twitter. We can see his unfocused, unfiltered thoughts about things. That doesnt seem president ial, right . 20,000, 30,000 people showing up at his speeches. They used to come just because hes entertaining. Then they start to listen and they say yeah i agree with that. Why are we dumping of millions of low wage workers on the country. Thats how he wins people over. Its not being filtered through the media which is lying. The twoweek period where i think it was by many polls, it was close. Within a margin of error. Then it goes to i dont know. You get two weeks of that. He did give the media some of the stuff he said whether you agree with it or not, at least gave the media something to talk about in the face of some bad news for Hillary Clinton which was probably a mistake. But i do think its kind of funny that the media can hammer for two weeks and then report for another two weeks that the polls are down. We hammered for two weeks now the polls are down. Then they report on how mainstream republicans are panicked about the polls are being down. And its just at this point do you think its eight points, five points . The l. A. Poll, hes up two again. Rereason trump won for votes in primary history is because he isnt a republican. Because of the Party Leaders attacking him. I always thought the Republican Party didnt care about the working class and middle class and it turns out they dont. The fact hes being attacked by the leaders of the Republican Party, people are saying fantastic. Newspaper is always talking about how all of this billions of free advertising trump got. But even during the primaries, its billions of dollars of negative advertising unless trump himself was on air speaking. But in that twoweek period youre talking about, oh my gosh the attacks on trump. Ive never seen something about it. Ive read about goldwater and nixon. You dont want to see his tax returns . No. You dont think the public has a right to see the tax returns . Not at all. I think the only people that care is the media. If theres tax evasion, then hell be prosecuted. If its tax avoidance, who cares. No, no. To me its not about how its how philanthropic he is . No. Its understanding all were trying to do is understand who the candidates are. What their motivations are. In the same way you want to understand who Hillary Clinton is and want to see all of the emails. We all want to see the emails and want to see her tax returns. The reason we know about the Clinton Foundation is because they have to file the stuff and make it public. I dont think thats an issue. I dont think anybody cares. Except the media. Thats why even if the audit were over, i hope he says screw you im not giving you tax returns. We know hes a wealthy man. We know its a real estate. We know he has more deductions in real estate which you know about. We know hes going to give an e mor nous amount away. Although the media, they only count it as charity if its a 501c3. He doesnt care about that. We talked earlier about the fact some argued the Clinton Foundation should be shuttered if she were to win the presidency . Yeah. Second question is, if in fact trump wins, what should how should he deal with his businesses . Thats a good question. Because theyre going businesses. I dont think he can shut them down. I mean, thats a good cnbc question. He says hes going to turn them over to his children. I suppose, i guess their argument is what are you going to do just shutter them all . Off the top of my head, turning them over to his children, hes going to be kind of busy getting that wall built. He wont be involved in the daytoday business. And theyre spread out enough that one of the things i like about trump ask his business is real estate. If america goes down, his business goes down. Unlike many watching your show right now who do make money from outsourcing and dumping low wage Foreign Workers on the country. So theyre coming around. How is this going to play out . The media narrative right now is that its over. Basically its blown it with those two weeks. You could never come back this late in the race. Thats the media narrative that so lets say that the polls narrow given all this current news. And it gets back to where its in the margin of error. What happens to i mean, there will be panic in the streets at that point. Theyll ramp up. I dont think theres a possibility of going after trump any harder. That will continue. Do you think it will narrow and it will get back within a margin of error . I think hes going to win. Ive made that cheer. I think hes going to win. Yeah, the polls will get closer since he is going to win. But i think the price of my book is worth it alone for the genius appendix where i quote six months of the primaries of people not only denying that trump could ever win the nomination, that hed even make it through New Hampshire or ohio. But doing it in a snooty, snotty way. You can get a prediction wrong, but my gosh for six months all we heard was hes dropping out, hes just doing this for publicity. Apparently what people say about an election can be wrong. Although there was one lonely voice in the woods that was right from the beginning. Do you think hes going to start a Media Company if he doesnt win . Thats been the speculation. Ive been recommending that since the mexico debate to get fair coverage. But im not sure its worth it. Look, if he loses, hillary has edge. You wouldnt want to go into business with him . I would love to go into business with him. If hillary wins, she has said tim kaine has said, amnesty for all illegal immigrants. We know thats 30 million, 40 million. Shes going to open the southern border. Shes going to quadruple the number of muslim refugees we bring in. There will be no hope for any republican ever winning another election. Theres no work for what i do, what fox news does. Nobody goes to the game if you cant win. Do you agree with him because the polls are rigged or that he cant get a fair shake in pennsylvania or other places. Do you agree with that . Well, there has been a fair amount of vote fraud. And it is true that all of the powers that be are against him. This is a real populous movement. It is trump and the people. Thus the twitter feed and the 30,000 people rallies. But the idea that the polls are wrong unless theyre with me. The elections are wrong unless theyre with me. I think the polls have been right. It is that the media has been if hillary loses, i look at this if she loses, she loses. The electoral vote went against her. I look at the same thing with trump. I hate this idea of questioning our democracy if your team doesnt win. Well, how about i hate the idea of there being vote theft and vote fraud. Theres a lot of it. I hate that too. And it always goes the other way. Look, democrats would say theres issues where you dont allow people to vote. And that gets in the way. Its an imperfect system. I grant that. But any close election will be stolen by the democrats. George bush al gore. I know. Thats why republicans were so hysterical about that. Because we all sat back and thought it was a close election, hes going to steal it. Were not going to let him steal it. Thats why republicans finally got off their butts and fought to preserve a victory. And it was a victory. A Strong Majority of americans think its not out of the question to ask for identification if youre going to vote. No. But what bothers me is questioning the entire system. That isnt even the primary way votes are stolen. Its usually its the gerrymandering in the country thats the problem. For petes sake. Hes got more conventional wisdom than liberals have finally noticed jergerrymand gerrymandering. This is why they report last. Theyre big city machines that wait to see how many vote dos we need. If they need to steal a million votes, they cant. If they need to steal 50,000, they can do it like that. Thats how elections are stolen. I dont know about whether, you know, both sides have to be good losers. There cannot be good losers. Thats my concern. The idea half the country is going to be mad no matter what. I think it has more to do with and it is utterly unfair the way the media is treating donald trump. Didnt you agree with did you see that piece he wrote for the post, the Michael Goodwin on the media . Yeah, yeah. Its shocking, its unbelievable. And you have your newspapers saying is we dont have to be fair because hes hitler. No, no. Hold on. Ones an abnormal candidate. Im not going to suggest to you theres not a trust deficit on both sides. But there are things that trump says that are categorically wrong. Were you here the other day . Two weeks ago he talked about the child the program for children. Right . He wants to offer child care. Says we offer child care at the trump corporation. It comes out, he doesnt offer it. He names them. They happen to be for the customers of his hotel and the golf clubs. For petes sake. Such nitpicking. What he says versus what the clintons have made a living doing for 30 years. How is it even the same ballpark . Im saying theres a trust deficit on all sides. I disagree with that. I think trump, he engages in rhetoric. Hyperbole. Thats when he gets caught. And i have a whole chapter on the alleged disabled reporter attack which is a total lie from the media. But that was all about whether there were thousands or hundreds of muslims celebrating the 9 11 attack. Come on, media. When i say i called you a million times yesterday, are you going to call me a liar . You didnt really call a million times. He flipflopped on whether obama started ie cyst. They found out obama didnt actually go to iraq. He actually was not a founder. And youre going to roll over under the circumstances. Come back. Thank you. Well send you some books. Stick around. Squawk box will be right back. 3w4r57 businesses count on communication, and communication counts on centurylink. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back, everybody. When we come back, best buy results out earlier in the hour. Well hear from analysts after the break. Also at the top of next hour, dan rather. Axs tv, the big interview. Hell join us for the next hour. Amazing sleep stays with you all day and all night. Sleep number beds with Sleepiq Technology give you the knowledge to adjust for the best sleep ever. The time is now for the biggest sale of the year, where all beds are on sale save 50 on the labor Day Limited Edition bed. Know better sleep. Only at a sleep number store. Welcome back to squawk box. Lets take a look at stocks to watch this morning. Jm smucker beating estimates of 1. 74. Revenue did come in on forecasts in a drop on demand for pet foods. But the bottom line benefitted from cost cuts. Youre looking at that stock down 4 . Also mobile Payment Company square upgraded to buy. Points to valuation at the progress and developing the plot form. Theyre now lending money through square capital. And thats helping their shares and their bottom lines a lot. Monsanto and talk abouts of takeover from bayer progressing. Lets talk best buy. Shares are surging after reporting earlier this morning. Lets look at this stock right now. It should be up almost 15 if you can see that. Earned 57 cents per share. Thats 14 cents above estimates. Revenue also above forecasts. Joining us now is managing director at citi. Thanks for coming in. The question is whether they can continue to beat like this going into the fall. Yeah. So well see. The guidance was better than we expected for third quarter. Which is the next quarter. They did keep comp guidance for the year. So well see what happens with that. But i think the good news is that the census data was down almost 3 in may and june. So, whos in the right, whos in the wrong . In terms of what the expectations were or did these guys really outperform in a way that nobody could have imagined . I think they outperformed more than people thought. Quite honestly, theyve been very successful in 4k tvs and appliances. What was the miss . What did you miss in all of this dare i ask . Probably market share gains, honestly. Because you thought the business was going to amazon . You thought the business was going to walmart . We thought best buy was holding their own. But tablets and pcs have been weighing on camp. Amazon is a good competitor. Weve seen hints of good things. Costco had a good consumer electronic number. Its competitive. If theyre better than expected, who are they taking those sales from. Or is it the consumers are spending more than expected . Again, compared to the census data, they did much better. We think its more of a market share thing instead of a consumer strength thing. But theyre stealing from . Not sure. Target didnt have great consumer electronic trends during the quarter. So thats possible. Going into the fall, obviously apple is going to be the big news. Going to be the new apple phone. And perhaps some ipads. Maybe even computers. How big of a piece of that is going to matter for best buy. It can matter a lot. We saw when they did the iphone 6 their comp was up 3 that year. So it can matter. Can get people into the store. The problem is its never in the guide. We got to run. When you go back to the office, what are you going to put the stock price at . I cant tell you that. Youve got to listen to the call. Got to try. Thank you. Appreciate it. When we come back, at the top of the hour dan rather of axs tv. Host of the big interview will join us. There he is right now. Well get to the futures well check that when we come back. Squawk box will be right back. New this morning, Goldman Sachs says dont get too excited about the recent rally of crude. Well tell you why. Our special guest this hour, a man who has seen it all. Veteran news anchor dan rather. All that plus a risk for retailers. Forget the weather. Why student debt could put sales in jeopardy. The final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box here on cnbc, first in business worldwide. Im Andrew Ross Sorkin along with joe kernen and becky quick. U. S. Equity futures at this hour, take a look. Dow open higher. Nasdaq higher as well. Up about 17 points. Take a look at crude prices. Were now trading at 47. 10. Lets tell you about todays top stories. Best buy posting better than expected revenue and same store sales. They have been up sharply. At this point best buy shares are up 15 for the morning. Thats a gain of 4. 91. Also Toll Brothers reporting a stronger than expected. Increased from a year earlier. That stock right now down by just under 1 . And toll ceo doug yearley is going to be joining the network. The auto maker will now be able to gradually resume at german manufacturers. Viacom out with details of the settlement which resulted in the resignation of philippe dauman. Its usually in the spring. Six independent directors will have their terms expire at that meeting. National musements which hold the stake in viacom will nominate three incouple bepts for new terms. A couple of individual names you might want to keep an eye on today. Mylan under fire for increasing the price of its epipen. Urged the ftc to investigate the price hikes. Okay. Now lets get to our guest host this morning. Joining us to talk about politics and the media and much more, dan rather. Host of the big interview on axs tv. Glad to have you. Great to be with you. Lets get to talking politics. Youve been talking politics on your new medium of choice. You seem to write a lot. Im still trying to get my head around facebook. But very recently and this is not a brag because plenty of people have more, but we did a piece that reached almost 30 Million People. And when you have a vehicle that can reach that many people, that gets any journalists attention including mine. Heres my question for you. Were going to talk about hillary and donald. You write we could argue for days on whether clintons perceives untrustworthiness, but her ability to govern its reality. Does it matter . Thats the real question. How much of these issues matter about the trust issue . On both sides. I think they matter a great deal on both sides. And that includes, of course Hillary Clinton. Shes got big problems with the Public Perception of trust and trustworthiness. The emails are part of that. The Clinton Foundation is part of that. Shell be hearing about it right up until election day. Whatever happens in election day beyond election day if donald trump loses. Thats not going to be the last of his hitting Hillary Clinton with everything short of and she has these serious problems. In a way i think shes very lucky that donald trump is her opponent. My opinion is if the republicans nominated anybody other than donald trump with the possible exception of ted cruz, that Hillary Clinton would be way behind in the polls at this time. But well never know. Because it is what it is. Its trump versus clinton. You made a comment about obama and a lot of people look at Hillary Clinton especially on the republican side as a proxy for obama. Going to continue the obama frame. And you suggest that actually people trust me. Well, i suggest that because i think by every indication, the majority of people do trust him. That hes had, what . 7 1 2 yearsplus of no scandal, no personal scandal around him, no corruption, no scandal within his administration. And weve had 7 1 2 years by and large of the market going up. Im not saying Everybody Loves him. But on trust factor, its hard to make an argument that the majority of the people dont trust. Scandal is in the eye of the beholder, probably. I think the irs situation and i dont know why it didnt go further than it went. Thats a good question. It probably should have gone further than did it. That was a bigger question i wanted to ask you. Dan, in certain circles youre seen as someone who was part of the mainstream liberal media. But i view you as someone that at least in what your intention is to be adds absolutely objective and fair. I appreciate that. That is what ive tried to do in a lifetime of journalism. Others like to judge how well or how poorly i did it. I want to be fair. I want to be accurate. I want to be tough when its called upon. Which allows me to ask you this question now. I dont know why Judicial Watch is the only entity suing for this information. Or Citizens United. I was going to ask you, do you still have connections at 60 minutes or at an investigative entity to ask them to do the work that theyre supposed to do at thus point. Well, this is a fair question and on point. I still have friends at 60 minute. I dont have a connection to Decision Making process there. But i think the Central Point is that somebody other than Judicial Watch and some clearly right wing conservative reaction, whatever you want to call it republicans are the only one asking for that. There are some serious questions to be answered about the whole irs thing. I agree. Have you ever do you think the media at this point is slanted in terms of coverage during this election . As slanted as its ever been . No. Not as has ever been. But not great, right . Well, in the modern era, you would say its right up there. But going to try to make the case for it. What some people see as slanted, that trump is such a phenomenon the likes of which weve never seen that by any objective standard, hes lowered the Campaign Standards on civility, just common decency to take one example mocking the person who had physical we just had someone take issue with whether that was but he has said things that maybe has lowered this. But the 30year career of the clinton as a duo and looking at one thung after another as it goes. For people that are not Hillary Clinton fans, thats like a mountain and youve got the media circling around this mole hill of these i wouldnt agree with that poking around the base of the mountain. I do agree that they havent been tough enough. I do agree with that. Is there any way this foundation isnt dirtier than a possums mouth . Well, you have a good memory. I think that used that on a program the last time. You did. And i adopted it. I dont know if he used it in relation to the clintons . I think we need to know before we can say that. What we definitely need to acknowledge is a lot more needs to be known about the Clinton Foundation. There are many people in this campaign who dont like either one of these candidates. Talked about the press being slanted. There are all kinds of people who dont like the clintons. But who will wind up voting for Hillary Clinton because of what they perceive as the nature of the person running against them. But your Central Point is has the press been as tough, been doing its job as it should have been doing and the answer is no. And i include myself in that. I dont accept myself in that criticism. Because the president s job is to be basically adversarial. A lot of people in journalism who dont agree with that. But thats the role of journalists. Were supposed to pay no favors, pull no punches. I think you can make a strong case during the Election Campaign that have been a number of campaign cases on both sides but not necessarily equal. Your friend actually made the point that normally that would be the case. Unless youre in this weird one off situation where youve got a normal candidate and an abnormal candidate. Now, thats an example of hes judging. Hold on. We have a candidate that judging whos normal and abnormal. Its in the eye of the beholder. I think republicans have been theres been a sense of we talked about civility, what it means to be president ial. You may think those are all normal things. The state department as a slush fund to enrich yourself for 200 million. But we have a guy making fun of people on twitter. Hes not doing things. That may well be. Look, im not going to defend Hillary Clinton here. You are im just suggesting there is a sense of what used to be normal and maybe the world is changing. Im shocked saying something is the same as doing something totally just ethically bankrupt. Becky, becky, i thought this was squawk box. Turns out to be some version of the mad husbands of new york or something. I live in new jersey. I agree with both points. On the decorum front as a mother of children, i dont want them seeing this every night on television. It bothers me. At the same time, look, i do think there are serious questions that the clintons have to answer about with the foundation. There is no answer. The answer is we know but i will say to you if youre going to take this position which i think is a valid position of not enough tough questions, investigative reporting, it hasnt been done on trump either. For example, where are his tax returns . Why hasnt he released his tax returns . Let me ask you a different question. Which is somebodys going to win in november. What happens the day after . Given the trust deficit we have in this country, given how divided we seem to be, whether you think we are at the most divided level now or not, how does this play itself out . Well, i fear i hope im wrong about this. I think the next Campaign Starts the day after this election is decided in november. If it hasnt started already. Because you dont like either of these candidates . I think donald trump whether especially if he loses, will continue what hes doing. He may form his own third party. He may form his own Media Company for all i know. The hammering on whoever wins whether its trump or clinton is going to be begin just seconds after the election is decided. Were going to be in the same position except worse with each side set in concrete on their own beliefs regardless of who wins the election. Congress is likely to be who knows where the senate will be. The democrats might take control of the senate. No chance to take control of the house. And this is whats worse about the election. You talk about the press. I think the press has not raised this point often enough. Folks, it isnt just the Election Campaign. At least as important is what happens immediately after that. And id have to say the prospect is not very good. It does seem like there has been more and more of a divisive nature of politics, of washington. That it had started probably 2008 and continued since. Its not getting better. Its getting worse. One of the things thats been exposing is how out of touch washington is. Out of touch the press is with whats really going on out in the country particularly between the two coasts. Because donald trump is one thing. Trumpism as the wall street journal has called it, is another. Bernie sandersism. Trump hit a nerve with people really concerned about immigration that dont always say pipt theyre really concerned about the globalization of the economy. Theyre really concerned about law and order. These are the themes that keep donald trump up there. If he wasnt hitting this nerve with a Broad Spectrum of people out in the countryside, then given the kind of candidate he is and the kind of campaign hes run, he wouldnt be anywhere. But hes touched something. And thats the reason hes still in the hunt, if you will. I know a lot of people think that old dog wont hunt. But i think its far too early to say that. I still think that donald trump has a chance to win. His chances for winning have been somewhat diminished since the time of the democratic convention. Made the mistake about what he said about the khan family disrespecting a gold star family. And you go down the list of things hes done since that time. Hes hurt himself some. But even at this fairly late stage, hes by no means out of it. He has a path o victim pi. The path has narrowed and Hillary Clinton has a wider path to victory. Partly because the revulsion that trump personality has gone. But i come back to the point of whats keeping trump in the race was keeping him in the hunt is he has touched this nerve with a broad swath of the American Public who have had it up to here with what they call ridiculous immigration, law and order, and the globalization of the economy. And you mentioned the stock market having gone up. Its true, but theres plenty of other gdp, for example. Maybe its a global phenomenon. Wage gains. Parttime positions for whatever reason taking over people working more than one job. All of that is true. And its 70 wrong direction. Then you throw in the insecurity we feel from the terrorist attacks we see in europe and its just theres a lot of things that make people think. And im but and im surprised the Clinton Campaign isnt hitting this theme every hour of every day. Any way you cut it, stock market is up for 7 1 2 years. Keep in mind where the country was when barack obama came in here. Heres the narrative on the other side. The narrative on the other side is that because we havent had progrowth policies that have built the economy up from the ground, we havent gotten out of a 1. 5 below 2 gdp growth. Thats kept the fed at zero which kept the stock market artificially because theres nowhere else to go. But the fundamental underpinnings of whether weve shown we used to grow at 3 consistently. Maybe its a different world or maybe weve got too many regulation. After eight years of republican administration, where was the economy when thats youre looking at that in a vacuum. The housing bubble was a global phenomenon. But for most voters, youre speaking some version of swahili. They dont get all this background stuff youre talking about. They dont. But they dont get the stock market being at new highs either. They get whether theyre getting ahead right now. And in this economy theyre not. I come back to i still think the Clinton Campaign, that their best card to play you may want to argue its not a good card. Their best card to play is when the republicans were in the last time, we wound up with 2008. With obama its been better. We always come back from recessions. It was a bad recession, but weve come back. But maybe you shouldnt have blown the Political Capital on obamacare. Which is sinking like its certainly shakier than cafeteria jello. This guy has a good memory. The premiums are rising faster than i dont know. When we come back you got to have something for us. Coming up, shares of best buy are surging after beating the street. But slumping prices of 4k tvs could be a hit to the retailer. Well tell you why next. [announcer] is it a force of nature . Or a sales event . The summer of audi sales event is here. Get up to a 5,000 bonus on select audi models. Welcome back, everybody. Best buy shares getting a boost. The stock up by 15 last time i checked. But todays numbers may not tell the whole story. Courtney reagan joins us now with more. Good morning. Best buy posting a strong Second Quarter with earnings beating by a wide margin. Profit revenue rather stronger than expected. Comps positive when the street had been looking for negative. The consumer Electronics Retailer full tilling its fouryear outlook. Analysts are waiting to hear more about the specific category performance. Comparable sales improved in help in wearables, home theater, and computing. While mobile phones and gaming saw comp sales fall. Target called out slowing sales of apple products for a third of its double digit sales decline along with the lack of new innovation. That broad category makes up a third of best buys total sales which grew 4 this quarter. 4k tvs are also in the category. And the 115 different models have been a driver for best buy. But prices are falling. In some cases by 30 in the last 18 or so months. And jeffreys Daniel Binder says that best buys comparable sales could take a hit as a result. Binder says looking back at the cycle, prices fell as they do. And so did best buys comps. While at the same time target and walmart said their electronics were strong because shoppers went to the discounters to buy the tvs. So this is jeffreys theory, ahead of us seeing it in the numbers to watch the 4k tv prices and see what happens with best buys comps as a result. What will the 4k do for me . Do you know this . You know the wrinkles seem deeper. Oh, good to know. You went the other way as a viewer. When im at home, when is my next upgrade . I think of it as a phone. Its more important to me than my phone. The curve thing didnt work, did it . Arguably. The 4k tv everyone says is just a crisp picture. Same thing we have from the 1080 but more, right . Darker blacks and bluer blues and whiter whites. We have to wait for the content though. Thats always the problem. The hardware doesnt match up. Whos the leader in that . Comcast . I gave the right answer in creating content. I said comcast. You said porn . Its true. Thats the leader yes. Adult entertainment. Then everybody else catches up. I made that point myself, but i decided to go for the you made me do it today. I went for the ass kissing rather than than the porn. Thank you for springs us down a notch. Well tell you why amazon may be giving a run for money. Squawk continues after this. Oh. Were back on. Yeah, were back on. Doesnt matter. Im willing to forego this. Were talking about the apple watch. Dan rathers here. When do we got to go . What is this . We already did this story. All right. Okay. Did you look at an apple watch . No. I went into an apple store. Ive been in twice sorely tempted. But to tell you the truth, im so ignorant of these things. Among other things i look at this e and say its going to make me impotent or something. Dan, youre 84. Things are going well . I mean, what can i look forward to . Things are good . Things are good. Awesome, man. Dont mess with it. I wouldnt get that watch. Thats good to hear. Man, oh, man. You have convinced him to stay out of the market. Well done. Have you heard of people that hip kind of like this doesnt have the apple watch already . Next thing you know hell be wearing to the office or something. Supposedly im not being gender whatever. But women like the apple watch because they have a purse that has their phone. So it let yous know the phone is ringing. Folks, when we come back well talk about the fed. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Welcome back to squawk box. Heres whats making headlines this morning. Shares of mobile aye jumping. Partners with delphi automotive. This is cool. The goal is to build an autonomous drives platform they would sell to auto makers worldwide. They hope to have the system ready in two years. Youve seen the stock jump about 2 . The physical cameras and the like some of which used on teslas already. The idea they would go into business to do this on their own, interesting stuff. The government is out with latest figures on new home sales at 10 00 eastern this morning. Looking for a 2 drop for july. Partly reversing a 3. 5 drop in june. Pressing on the recent price jump for its epipen product. Chuck grassley is asking the ceo who justify the decision to sharply raise that price. Another Committee Member is calling on the ftc to investigate that price hike. Theyve inverted. Theres been a lot of political mashes. Do you know heather brushs father . Is she married . It may well be. Her father could have a different joe manchin. Senior senator West Virginia. Yeah. Interesting. All right. Hes kind of a i dont know if i call him a blue dog because thats for the house. But hes from West Virginia so that goes without says. Amazon stepping up its music game. Reportedly in talks to launch a Music Subscription Service that would rival apple music but be cheaper. And cheaper than spoth ify. It would cost just 5 a month but would only work on amazons echo hardware. Roers that amazon wants to launch bate services in september. But it hasnt finalized deals with major labels or umajor publishers. Several fed president s will meet with a group called fed up. That is a network of Community Organizations and labor unions that want more transparency, more diversity, and more focus on income inequality at the fed. The group has some powerful allies in congress. Back in may, 127 lawmakers including Senators Elizabeth Warren sent a letter wanting more diversity among fed leadership. This is coming at the feds from both sides. Populism on the right and left saying they dont trust the fed. They want more transparency. I like it. They want the fed to focus more on income inequality than they already have for the past seven years. Quantitative easing and all the assets of wealthy people going forward. Havent they done enough for income inequality . Greg i rks. P is joining us. We know, greg, if you have an asset and you make that up by keeping rates at zero, you probably do better than those who dont have assets. We know already how savers have done in a zero Interest Rate environment. Hasnt the fed done enough for income inequality already . I think the fed looks at that as look, folks, we can do a lot of stuff but thats something we cant deal with. I bet at some level they do worry that their policy disproportionately is felt through prices. Thats why youll hear officials say, look, fiscal policy, other parts of the apparatus have to come in and lend us a hand here. Saying we have slow growth and wage in productivity. Thats an issue for fiscal policy. Stop looking at us. Yeah. September or december . I say they cant do it before november. Does it matter what . I think shes going there because its nice. Beautiful weather in jackson holes. This will not talk place in the shadow of a crisis. I think its ironic. Even though they dont have a euro breakup or a collapse of a big bank hanging over them, i think theyre kind of looking at whats ahead of them. We are going to lose the next war. Because the highest we think well be able to get Interest Rates in the next cycle is 3 . Typically we have to cut by five percentage points. This is going to be an interesting meeting for a lot of reasons. I think theres going to be much more existential soul searching for ways to completely overhaul the way they do their job. The risk is that even funkier stuff like quantitative easing. I think everybody agrees that has unintended consequences. Talking about emerging markets and how thats weighing on miss yellen and her colleagues. How much do you think its weighing on them . Earlier it weighed on them a lot. I think one thing that has hit hard to them and ive heard officials talk about this in the public remarks is the realization the zlar not the world currency. And the fed controls the supply of the dollars. So this year as they actually, over the last two years, the more they talked about tightening Monetary Policy and the supply of the dollars, they really caused a lot of indigestion and heart ache in brazil and china. I think emerging markets look at the fed with a great deal of nervousness. And as the fed lurches towards the increase, i wouldnt be surprised to see another round from those markets. That said, i think we vented some of the greater risk and leverage that was buried in the emerging market complex. I dont know what your other sources are saying. I think they can perceive a little bit more with a bit more confidence this time. That has been ae background worrying them. Well, just part of what theyre supposed to be talking about is this idea that we cant sit around with negative Interest Rates and quantitative easing for another seven years. Theyre supposed to be brainstorming about ways to get out of that. You got any ideas to what finally happens. It seems were on a vicious cycle at this point. Number one is the status point. They say we got through the last problem, we can get through the next problem again. Weve got forward guidance. We can go negative on Interest Rates. Honestly i think thats because this is a conservative institute. Its like wr theyd like to go. I just dont think its tenable. The idea they would blow the Balance Sheet up even more in the next cycle is problematic. Number two is go ahead. Well, number two is what i call the Larry Summers policy. That will boost Economic Growth and get the natural rate of Interest Rates higher. Perhaps the most interesting was raced by John Williams through the fed last week. Which was lets raise inflation targets. Lets make it 3 . That means we can make real Interest Rates more negative in the next recession. Oh, god. That seems like a dangerous path. The dollars weak and people complain about the yen strength. And oils gone back up on a weak dollar. Its time to raise. They dont have to worry about a strong dollar this time. Its trying to raise. Get some dry powder in the tank, greg. Its time to raise, raise. So joe, hold me to this one. But if they go ahead and move in september or december, this weak dollar, they will be i invite you to come back to the show and challenge me on that. Just have to live with the strong dollar. Im sorry. I thought every treasury secretary in history says we favor a strong dollar. But what were talking about is jobs its like Looking Glass environment. They talk about hiking, the dollar goes up. They say oops cant tighten again. Were in an endless loop. There are going to be tariffs on china and all that. Greg ip, thank you. Huge. Thank you. Wow. This guy obviously didnt go to school just to eat his lunch. This guy is he knows stuff. Greg, stick around. Listen to dan. He doesnt just read the wall street journal. By the way, greg has gone to the economist in different place. But he started at the journal i think about 20 years ago. And dan if youre only going to read one, i would read the just read the journal. I wouldnt even look at that other one. Theres another newspaper that starts with new york that i like. What i like about greg he came back from the economist. Anyway, to use the expression bb hes understandable. He puts it down with they can get it. For those of us who would score in the high 90s on a dumb test if with anything with the fed, its understandable. I give him the tip of the stetson. You asked earlier and i cant remember if it was on air or during the break about the bond market. Why were looking at bond yields at ridiculously low prices. What did you hear in that commentary that made you think, okay, this is what we have to watch out for . What i heard out of this is, one, i dont think its certainty that the fed is going to raise rates in september. High probability but not certain. Even the fed know what its doing . With bonds behaving as they are, i just had a conversation the other day with somebody who knows something about bonds. He said ive thrown up my hands. Nothing has happened in the bond market like i thought it was supposed to happen. But i suppose thats an old story but it was new to me. Lets talk about the rise of populism on the right and the left and what that might mean for not only the Federal Reserve but other political institutions. This is something youve covered very closely. Does it remind you of any other error . It reminds me of the 1960s which was a much more explosive dektd than even this decade has been. The president ial races were not nearly as strange, crazy, weird, whatever you want to say as were going through 2016. But populism was coming up on both the left and the right during the 1960s. And i agree with you that were going to base a period of populism that is going to be defined differently on the right than it is on the left of the population. But there are some areas where they rhyme. But something has to give because people in the middle and below socioeconomic class i hate to use that phrase. Theyve had it up to here with both parties. My guess is that were going to see that worsen as time goes along. Because nothing anybody can do with change things immediately. Than people in this socioeconomic thing. By the way, the lower you go down that scale, the more resentful people are, the more convinced they are that washington is totally out of touch with their lives as they actually lead them. And both parties are going to be scrambling to address this. It surprised the democrats on the left. It surprised whats now known as the republican elites. The start Republican Party on the right. But now its exploding from below. Where we go is anybodys guess. We have not talked about trumpisms. Depending on where you sit, the threats from the way he moved to private Sector Solutions are inferior or have been shown to not work over time and we can again revisit these experiments with socialism and just, you know, its expanding the everexpanding government entitlement. To other people thats much more dangerous than the populism youre talking about with trumpism. It depends where you stand. I it does. I do agree the Sanders Movement moved Hillary Clinton further to the left than she wanted to go. Right. We dont need to go further left. After the last eight years, dan b. Were far enough out there. We need to bring it back a little. How left do you think she is right now . And would govern if the run . Im sorry . How left do you think she is now given the pull of Bernie Sanders and how do you think she will govern . How far left . Who can judge that . I will say american elections are generally won somewhere around the middle. Right. Either middle right or middle left. My point is that by having to respond to sanders, Hillary Clinton moved the party furthest to the left and was healthy for her overall election chances. She may yet win. Trying to pivot back toward the middle. Now, with trump, a different situation there. Trump is hard to make a case that trump moved the party even further to the right by his rhetoric and what he stands for. But trump up to and including now and i doubt that he can overcome this, but trump is trying to now pivot back, if you will, to right of the middle but more toward the middle. Thats where hes suddenly talking about the need for racial tolerance and talking, by the way, to say trump is addressing africanamerican voters. Hes not addressing prern voters because he knows he isnt going to get those voters. He knows when he says to africanamericans what the hell do you have to lose. Their resounding answer is everything. Im not saying thats the case. Im saying thats their perception. He isnt going to get anything hes not going to get 10 , 12 of the black vote. He is trying to convince white voters that hes not a racist, hes not a bigot. Is that his fault that why watching whats happened in these cities run with democratic administrations, the mayors, the ones we talk about, why wouldnt you nn maybe some other Something Else might be a viable alternative versus the status quo . Every time trump talks about going back to the policies of the george w. Bush administration i dont know whether were talking about that. Im talking about something other than what weve seen in places like detroit and philly and welcome back, everybody. A new report from moodys projects the 1. 3 trillion owed by students across the country will soon impact big retailers in the united states. Joining us is the author of that report. Charles, thanks for coming in. Thanks for having me. Its good to be here. We know the student debt has changed all kinds of issues for the millennials. Theyre not buying houses as soon as they would have, theyre putting off savings. But you think its going to get down to the level where individual retailers are affected by their inability to have extra cash sitting around . I think thats already happening. The number has gone to 1. 3 trillion over the last five or six years. I think in the report we cite that thats more than amazon sales in a year. Its roughly double home depot and more than home depot and lowes. Its already being felt. The question is how does it keep going . One of the things i focus on are car sales. Were at historical high. So it hasnt really affected them yet. At some point that demands going to slack and the fillin demand which will be the younger people moving up through the food chain, theyre not going to be there. Whats the Tipping Point . I think were there. I do. We put three kids through college already and have one in grad school. I see their spending patterns changing. I see their friends spending patterns changing. A lot of them had to move home. So theyre not buying furniture and consumer electronics. Clothing budgets are getting hit although if youre living with your parents and not paying rent, youve got more disposable income. Does it go down to a bare of jeans youre not going to buy . It depends what demographic youre dealing with. That part of the argument needs to be played out as well where youve got somebody who really struggled to go to college. And maybe doesnt have a really good paying job where theyre not going to be able to service the hits them there, yes. Whats the answer . Everybody from oh man. Bernie sanders will tell you to forgive the debt. Others tell you to change the bankruptcy laws to declare bankruptcy, leveraging the student debt piece of it. What would you do . Thats a tough question for a retail analyst to answer. What i think needs to answer is College Needs to be more of a retail oriented decision of families sending kids to school. I was talking to someone out i was talking a Makeup Artist and a lot of my friends went to Community Colleges and transferred and saved a lot of money that way. Theres Community Colleges back in michigan that are pretty inexpensive where i grew up. Maybe thats an option. Maybe families just need to spend less on the education part of it and try to leverage it and make it more of a retail economic decision. Is it practical to think about a version of what we had immediately after world war ii with the g. I. Bill . I dont know that theres a catalyst for that, though. I mean, i know people that want my fatherinlaws friends in college typically wept on the g. I. Bill because he was of that age group. I dont know that thats a solution. You know, we tried to just hit it from a retail perspective. And try to stay out of the Global Solution for this because i think thats far above my pay grade, certainly. We were just focused on retail and i think this is a piece that will be revisiting over time because we have kind of planted a flag here i think and said, this is our view, this is where we think its going to go. We have been talking to investors about it for a few years and we needed a real compelling data point to launch the piece. And 1. 3 trillion is a pretty compelling data point and when you start looking at the Debt Service Burden and the retailers and i think graphics in the piece that talked about its more than amazons revenues by a lot and then you add up six or seven big retailers and the Debt Service Burden is greater than annual sales and something is leaking somewhere. And our thought was we just get the point out there an enthen see how it evolves over time. All right. Charles, thanks for coming in. Thank you. I appreciate it. When we come back, jim cramer, going do see him down live at the new york stock exchange. Well get his take on todays top stories. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Theres no one road out there. No one surface. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 369 a month at your local mercedesbenz dealer. Lets get godown to the new york stock exchange. Jim cramer joins us now. Jim, dull market, you dont short. Whens the journal talking about today . It says eerily quiet and this means its going down. Is that the way it works . Should have been down and nasdaq. Oil was down. Correlation, did it break . Well see from goldmans note today. I agree with you. Im looking at a stock a lot of people told me to do poorly. Best buy. Because best buy is levered to games and to cell phones. Well no. Its levered to appliances which was plus, you know, double digit at home depot and plus 8 here at best buy. Thi i think that people short best buy is making sense and why did we short the dull market . Why did we short the dull best buy . Restaurants are doing poorly. Retail is pretty good. Yeah. Our guest host is dan rather today, jim. Ive watched him just realize how much he wishes he wishls to watch squawk box and mad money. I did a 60 minutes ii piece about his program and i went out and watched him do the program and you talk about a performance. Forget about the rockettes and everything on broadway. When cramer goes to work, its manager to see. You know, their legs got nothing on his legs either. It was an honor to have dan at the show. It was an honor. Thank you. All right. Thanks, jim. Coming up, parting shots from dan rather. Also, some details about the newest project. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. Guest this morning we dont have any time, dan. In a nutshell, ten words, what is your special project working on now is. We do something called the big interview on access Neil Young Neil young. We start with neil young. Awesome. Just after labor day with him on that. Musical genius. Try to be active on facebook and keep myself generally out of trouble. We missed a great opportunity earlier. You said uglier than what . Couldnt respond. Well, how about egglier than a frat house bathroom on new years eve . Bingo why. Maybe the next morning. Keep on rocking in the free world, dude. Dan rather, thank you. Thank you. Come on back. Join us tomorrow, everybody. Squawk on the street begins right now. Good tuesday morning. Welcome to squawk on the street. Im jim quintanilla la with jim cramer this morning. The dollar resumes falling. Futures to the upside right now. Europes green. Pmis there hit