Transcripts For CNBC Squawk Box 20170313

Percent. They are slightly on the aught to. Sited 3 this morning wdi is town boy another eight fooen potential 15 billion take over deal. The industrial called the neil a beamoy iaitthem blut a hot plates in the future. Intell. If youre trying to transform yourself, and woev rr not confirmed this then and then dead you see rour yoiser till reheel. Starting to sound lierv a driver. But i think theyrall retdy tetsing andtle. It makes me furvs because im bored the idea of the kids getting my drivers licenses. Will there be a town when were talking about shoefl pepping kwur rr in thing the in thom yourt where you sit right in the middle. Can you imagine if they were getting you dressed. All got figured out in the jetsens. I want the made with the adjustments. Who came in. I dont want to be in a helitaupter. Im more concerned about collapsing fuping insid toem yoeps house. I dont remember rr goepes to stit in that havic. Thats true. Do you realize its 5 00 amp in reality right now. Im he havely adjusting. From here its a hasnt noitbuse we had the converse athd. Time squkn are pup vinced you hadtop happened. But youre right. I said that to someone today. I ever lt ittime thirmnts is the second the announcement on Interest Rates due on wednesday, followed by chair janet yellen. Er for as for data, we get the considerer price index and thouzing we get thoetal starts, and opfriday frooel prodoukds. And just a few earnings reports. Tomorrow we get volkswagen. Atopy cyst mgs. Trrs the whees economicads vker for are rrm rurk rg to reduce barriers to job creation. How many of you have to give Something Back im faten facie i to houp them though. President does live here occasionsally. To prepare for the potsability of road closures and flight discorrupters. Call for for 18er snowfall royce. It sglifrmntler and i we dont even have any foeper. T toptime it does not. Woev arer been here in blizzards before and not a lot hand on the the street thats why im trying to figure out my skaejt. Fom you got we got the kids coming. Come on. A sleep over party. It would be kind of cool. We have few down. Air mattresses. We have a guest room. Wie can to stuff. You have your own pictures on the wall. 19 years. Remember . You may not want to say the rest of that in an eightby10 year about moy 19 years of ledge but ammon im not going to do it, amy. Foreign minister i feel like it, i do it. If i dont, i dont. Its great. Of course its great. I would know. Ive been airied through year said bp because you got that one year gap and my mother in law counted the months and everything to make shirr peach fn thoniemg poafieptopsert it jm rr oldfashioned that way. To you wunt me to read this. There was news mapging over the weekend. Ch king fellederal prosecutors to resign obummau dlt dittant to it. But it excelo. Are lot of precedent for the thoing this attorney before. They are president ial oappointments. The preppal felt he had a promise directly from november from the. That he would be allows to stay on because highs office has been fairly interfpt. Heres the time line as we fwrep to all of the 26 president ally appointed u. S. Attorney jelling them. He had this deal in place. So the concushion lasted through saturday afternoon at foclks. Thats when you have this rumer between mendy and fur upg ls imfiep tee ed d it if yuz just g asked to resign. And you issued this weet. It it you were u. S. Attorney. Well forever be to the greatest tonner of my so cute. She said boy the way, enow the normant is company, people who love her. Not clear what he because hat g hatingi pmg ethom thepg hays moum mopeple friendship. You know, obviously the new york pipers are going to bield haf thap prrs you know what, we love conjecture. Were not going to shy away from it. Fums ever if p and chuck. Is chuck roads like a prefur arau inthat weps. Kmucher episodes witch. Time hes told gemotty. Will jibe resign. In this case tebet a lot. A lot of hafrant lam bkzs. Squr its political in a sense that rirt clees to with leadership helper. We saw faum and faum frer itope and maybe ea this has something to do the the fem you have to go to the moel white house do. And the question is where fleep. Said in front of heme l tams utezarer trp animal definitely. And that was an iron dplied fiep rp to kpeepg teeltd see neal on sand. Can. It could beads simple as. Kwaetsds if i were give. Upper thereathist taeth i justtop it it it it it if youre in association with him, im done. Because you guys are like ambassadorships. In my opinion, off the rails. Im not withsing for harry rooetd to come back. Idhe clearly had a hitdle it and does that infop pr stoem he stood up to the frup tad nip spration. And the trump administration, on their side, had an invertive to 96ive hey fiefr him. Atul tast ohop 40 tipping is just a changing of the fward. So so sosy youre fired. Quote on kwoeld. Those werent rer efftok he to teamer for. Second for tonight. Flrs our former congresswoman is district afn it it tefor crerit was putt this wootle shomp the door is ajar. Do you believe thats what this was about . Its hard to know. You were there talking about. No one really knows the answer. Sthienchlts have been to get trid all of frye. Fact of the matter sis is the first time they have tried to rebhoouv yes flns attorney president friendship frrts from my point of view is that it appears the pd and hid wide thool krooet saying youre going to stay on. We 3rd from creek. And so this suggests that the president s kurd isnt really worth what it ought to be. Frrs cl is to say i was loun at the time. They were on faendry hap and it ittime squun whos completely independent and called the shots where they are. Nv rr been highly refielded. Little bit of a smupger. I tj tis t friepg. Thtser what joens and then turn around it jrmnt sometime said they keem people there over time. Yeah, patrick pix chartd was arv beap. Fo are more and in between. Just atrapt yer epifennel. Thats trr f squb ktd have beenen ongoing investigation. This is a bit. He promised a imfaem papeper partnership taso trump, as far as personal relationships, he can be very adducivadducive. And then someone gets his ear, bam. Ear Something Like that. Its not that infrrt to fwig kwhar ouds put quasifumcome emat a hiem. Time well, he lives in werp kaush. But iticallythry he was just foeg after those epiaen. Kwlo if there was foom people thought he was a straight shooter. Maybe he took a little toorpt sorry it was a straight shooter. . Tooim praum frock froms not tafoot in foreign minister ir. And tingsricate attorney. Not the first time wooev rr seen a flashy person in that position woosz rr taken a little bipperty. I feel foyerful in this position and it dets the tone for it country to be fraums President Trump. One of your it it it nmer this a thaeng foreign minister and said we were looking at fox nusz friendship of the fames. And hoot tu. Fep. It it that im so confused. Which way am i foeing to go this year. We have everything you need to know to fell out your prakst and thats next. Flrs blrn what you need. More than 24 thousand Companies Run their business in the oracle cloud. Delectinging the piggest ate fep is from trothm nangsal planning and then accounth snmnt saly went to sleep after this party and livestream your favorite sport at the airport. Binge dvrd shows while painting your toes. On demand laughs during long bubble baths. Tv everywhere is awesome. The allnew Xfinity Stream app. Xfinity. The future of awesome. Reliable time. Or fwiv us a call. The ncaa mens tournament bracket is set with games taking off tomorrow and wednesday. Yoin us for a classic break down the editor and chief of sports nation. And maybe ea its just me but everybodys gotten beat by someone that shouldnt have been able to defeat them. Moel him to hap pim theen inone seed pch and this buch a couple of days ago. Is it tee if owe it it it im going to go smoke or eat. They were undefeated coming into the friepon forten prm fwr squutigate faep atault saint marys from i always look to say that as a home owner. Smu, they looked forable. I dont know if i can pick since nal fatty, even in the first frirnltsfirm prp. B ar it till foevau is a team that cant make the. I think a lot of people kwlig frrd theyd jump down to a two seat after yak won. And they really stuck to fauntd fang commiten to my tad. Well, then tark hoar and was a four seed on wednesday. It was a biggest jump any team made within thebreakt. But not enough to get them a run. Wie wie is current relationship rb theyre high walk down hoffense. Everybodys talking about that as the glam prakt. And you have ucla. Not arv pdy. The pack how about arizona . Theyre a great two seat to bet on. The rest of the teams have been erratic and they lost lost the hair shotberinger. You dont know. Dont take any 15s and 16s. No 18 because its a had a wonderfuler t sfint it it it tofr opthois framnt rmnt fap pape tame foreign minister heirmerper and tlart why im so kpun fused President Trump tis point. And thats what is going to happen this year. That connecticut year they finished 9th and came back aporting performances. Wut i cant raw. Frar. In the type are you going to push the button for real this year . No. Im going to pretend like i know what im doing. Cincinnati. If you come out cold like yesterday. It was like 16 to 2 00. I feel like i could have made it. Turous chas it at 10chuck this friendship. Had f hadfer to play together for at least your fp. Ter j you have a twaevl photofent j are trl gauze you just said that. I dont have nothing else. The slightest tip im ready because i hate picking someone and watching an upset and saying i could have had it. Ither him tos they dont mop up. Theyre taking on lan lan vase in ord labtdo. Guys from a flaemes for frp. So its really hard to break them. Thank you. No problem. You have your] t all filled up . I have three different brackets. Wed the mention cnbc universal does have investment in the parent spf tell. And turn the. Ittime winners and losers. Frrsz kwiek is baks in a moment. Finally. Hey ron theyre finally taking down that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. Safety isnt a list of boxes to check. Its taking the best technologies out there and adapting them to work for you. The ultrasound that can see inside patients, can also detect early signs of corrosion at our refineries. Hightech military cameras that see through walls, can inspect our pipelines to prevent leaks. Remotecontrolled aircraft, can help us identify potential problems and stop them in their tracks. At bp, safety is never being satisfied. And always working to be better. Good morning. Check out u. S. Equity futures at this hour. Quiet, still quied. Down six on the dou and the s p. A get out deal frrt of our website. Urous said this rrgist. Specializes now see the remembers that i forgot i hitd your tit hpporous the Federal Reserve is pietdly expect tootd race. Erse frets faup file etog if capable of a a mieb ap. If tom roamy to stop this happening. So if were focussed on the next rate hike. What doyou think sn dwreen. Pleerp friendship that frel focus twoe foreign minister. Prr friendship. Torm and at that point, marcus going to start really hard about getting four bikes next fear. And i think were going to get four fop i think fremer. Hor hereupon kwp j it stowell, thats and we could have a real indegestion in the markets. For now everyone is relaxed and in strides. When we gautd good nobs friday, the market rallied around the strong number, even though we knew it would lead to oo definite rate hike. People saying what about every other month. And people starting to build a little concern about that monopoly when tuz it become and really agreasive with the mom. Er for i think rrtser a question whether her the emfliemd reports from physical prp asit hper. Hoe it it tom what are inflation. So that leaves open the possibility the fed could pass in john. And bruce, what are your expegditions for shocks. Govern you tell me to continue to invest. Time of 16. Tom frk all now the young term friends. Lets tong about some of the structural trachgs in our economy. Thaep there are mebopy you look at things likole price forson and time forer if foreign minister coming back on. And nedded. Him the kpk. How do you add all that up when you ficcier out where the edaneomyest tem been. Tin thirs kwing and staen wu wusz fapical is a puzy had l what we saw is a clear down shift in gdp growth and so the lay market continue to fighten dp thats what the fetd is focussed on. When you hear had press cons fr conferences. Its the net john gesalgd. And the freeld was different than tone or 15 years ago what does this do to the Unemployment Rate . Which is more or less all i care about. Its present falling to a too far. Its not as leap as it waug. Trr and the frierng teal er and weve got to get ahead of the game. She wants to remain ahead of the curve. So weve reached a real inflection point. Whats your favorite area in the markets . I think those are associated with the business cycle. So it would include the business cycles, but not Barbecue Sauce and such. Sglnk you for having you. Our fest woes is going to be co pounder leave. Then the republican plan to over hale health care. Fractsed medicine for over a beck ooid before he entered fum fupz remember teal woor yien us at chak kprm teit it and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia its time now for the executive edge gasoline storage is reaching levls not seen in 27 years. Jacky with the gasoline. That makes no sense. Theres all these suvs. Nobody doesnt drive an suv anymore. It is and theres a lot of oil out there and its been used under the water. Inventory was the last inventory report. And theres also less quan fdant that hes going to karby out our cuts into the pnchgal pd at ought soy bitding and this is the feefs igeekwn fwnb gut put a much bfr dwn fen again. Repoon. Repoon. Entop. On for monopoly so remember, when you reach capacity, its troubling. L mur hands l froich said. Expecting his hepound surprised pie this. Theyve all been telling us were rebalanced as well. 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Various shouting heigh ho its off to work we go woman on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. And each job created by the Energy Industry supports two others in the community. Altogether, the industry supports over 9 million jobs nationwide. These are jobs that natural gas is helping make happen, all while reducing americas emissions. Energy lives here. Japan has become one of the best countries to see partnerships in this field because of significant regulatory reform. Commercializing research is very advanced in japan and the government has been a positive partner. After legislation, theyed the have aprievl projected for much slower and thats why this is gri fleszing. And in our peeks yeriance, theyreerary open foocub laneerate. Frrl we hope oh. As developer, ive been through the hard times. 250,000. Meet me and 60. Its your house, my money. There must be a disconnect. It was invulting. Yifrts hoout jest about the deal. Frirts buts the real to. Er for welcome back to squawk box in news out of europe, the brexit bill will be voted on in both houses of parliament this evening. If passed, they could trigger article 50 as early as tomorrow and its afternoon already. Rer closer. Funny the way that works but theres a talk that nikola sturjen about to call for skutish referendum. They only ones lets talk about the big five insurers, united, aetna, anthem and cigna. How do those five break out . Many of them have said they are out of the business of writing this for obamacare patients anyway. Youre totally right. Im advising clients, hiding out in the big five is a good way to play this, not have concern. We have fundamentals for stand alone. They really dont have much exposure to the aca. Most are out of the marketplace. Even though anthem, united, aetna have very large medicaid businesses inside of those Large Companies we see less than 2 earnings risk associated with losing the medicaid coverage. Of the big five only anthem has a material presence in the individual market where people are receiving subsidized coverage and they can lose that. We think changes in the bill drive more adverse selection in the marketplace. Anthem certainly exposed losing more money underwriting that market. Their guidance is were going to break even. We think adverse selection the market would become worse. Enforcers and people more bullish on anthem say if that happens well exit and the market shouldnt capitalize losses. To be fair, thats a good point. If anthem sounds like least favorite of those five, do you have a favorite pick of those. Sure. Anthem least favorite. One company in the big five were not recommending. Aetna is big favorite. Not particularly imaginative but cheapest on pe basis. Quite frankly after the humana deal broke, aetna suffering from identity crisis where the market doesnt understand what is their strategy, how do they grow. We think they are still solid underlying growth avenue for aetna in the government marketplace, in their ma and medicare vantage business growing nicely and with capital deployment we see that as longterm 10 growth story. Gary, just to put a fine point on this. You say the odds are long but you still think 50 50 shot this bill goes through. You think the market is not anticipating that. Any time the market happens they are not expecting theres an opportunity. What would be the opportunity be . Would it be to short the hospital stocks . At jpmorgan im not allowed to recommend shorts. I would certainly say this. Im advising clients were not chasing the hospital stocks. Were not chasing the medicaid hmos as they have rallied on the news. In fact, if the cbo report comes out today as im anticipating, as it says, 15 million lose coverage, 200 billion cost over the next decade, we think counterintuitively on such a terrible score youre going to see hospitals and hmos rally. The market is going to say thats the nail in the coffin. Theres no way this deal can get done. At the very least id be suggesting to client not to chase the movement higher in those stocks. Thanks. Gary, thanks for your time today. Great talking to you. Thanks for having me. President trump firing 46 prosecutors. I dont know if thats exactly right. Most of them resigned. I guess thats considered fired. After being asked. After being asked for resignation. Talk to former prosecutor annemarie mcavoy. Rest of the show home depot ken langone comes out of his shell. Were going to try and do that. Wall streets top cop fired. U. S. Attorney Preet Bharara gets the boot after refusing to step down. The latest details and tweets. All that plus ed sheeran is coming. Were going to tell you how the pop singer land add cameo on game of thrones as the second hour of squawk box begins right now. Announcer live from the beating heart of business, new york city, this is squawk box. Good morning, welcome back to squawk box right here on cnbc. Were live at the Nasdaq Market site in times square. Im Andrew Ross Sorkin with joe kernen and becky quick. Our guest this morning, are you going to come ut of your shell. A lot more from him in just a moment giving us thumbsup. Taking a quick look at the futures. This morning were going to show you, dow looks like it opens down 12 points, s p 500, 2 points and dow a little over 5 points. Among todays top stories, shells surging, israeli website announcing the deal to buy the Autonomous Technology for 10 billion. A report says the transaction will be announced sometime today. As a result mobileeye shares are up 34 . Yahoo unveiled details about its Management Team after the sale of internet assets to verizon. Board member Thomas Mcinerney chief executive office. Alexi wellman, ceo, currently Vice President of finance. After the acquisition will be known as al tabbaa be trade under symbol aaba. Las vegas gambler Billy Walters accused of Insider Trading allegedly making 40 million in trading in shares of dean foods. This is the case that drew attention because of connection to golfer phil mickelson. Not accused of wrongdoing but degree to pay back a Million Dollars from trading dean foods on a recommendation from walters. Top prosecutor Preet Bharara fired over the weekend after refusing to resign. Leslie joins us now. Good morning. What can you tell us . Hey, guys. He took on political corruption and terrorism but one of his most enduring regular sis is what hes done for Insider Trading. Since october 2009 bharara filed 111 charges against Insider Trading, 89 of those resulted in convictions. A success of about 80 . Among bhararas highprofile cases included the longest sentence for Insider Trading as well as sac capital the hedge fund run by steve cohen forced to pay a record 1. 2 billion penalty. Now, in 2014 the court rewrote Insider Trading, the playbook for dealing with ipser trading, which delta blow to bhararas office and overturned several of his convictions. But in december, the most recent december, a Supreme Court decision melted the chill over Insider Trading cases and bharara and to be back in busine business. Now in interim top deputy will serve in the role until the president names an official successor. Sources close to defense side of Insider Trading say they may postpone settlements to wait for the new successor to come into play with the hope they will receive a much more friendly settlement in that case, guys. Leslie, thank you very much. We appreciate it. Lets talk some more about the firing of Preet Bharara. Joining us former prosecutor annemarie mcavoy. What should we make of this . In our administrations they have been asked to resign or stay on. What do you make of this . Its pretty typical. Although unusual everything thats happened the last couple of months has been unusual with the new administration to some extent. So we have everybody has to submit their resignations. Preet bharara refused. That in and of itself was unusual. Especially after november trump apparently told him he could stay on. So a little bit of confusion as far as how it comes across but not really surprising. When you look at the last few months, there have been a lot of changes in the atmosphere. I think that probably the president thought things would go a little more smoothly with chuck schumer. Hes gotten pushback on just about everything. Chuck schumer not only put Preet Bharara spoke office as u. S. Attorney but also had him as his chief counsel for a long time. There as very, very close relationship there. Given the animosity thats really developed between trump and schumer, its not a surprise that trump would want Preet Bharara out at this point. Why do you think Preet Bharara would say im not going to hand in my resignation. Hes getting a lot of publicity. If he had gone quiet and submitted his resignation we probably wouldnt be talking about him. Hes somebody theres rumors he might run for governor. He might run for mayor of new york. Hes pretty wellknown. Again, most of the talk about him is very positive. So its a winwin for preet to kind of put himself in play like this. Get the play along with it. Ken langone is here. What do you think, ken . I think he did a fabulous garage. Annemarie and i absolutely fabulous job. I understand the dynamics of schumer. Thats for another discussion. Wouldnt it be wonderful this maybe ran for governor or ran for mayor. He would be spectacular in either job. So everything happens for the best. I believe that. I think now that he doesnt have this job anymore or wont have this job anymore, suit him up and bring him on because we need people like this in Public Service. You think hes independent minded . I think hes independent minded. I dont want to beat up on a dead horse. What i was telling annmarie, how i went to see silver about Charter Schools in new york sta state. He had no interest in what i had to say. Not about the kids but teachers, dues, contributions for politicians. Look, these kids need help badly. I see a guy like this. Is he aggressive, is he say all the bad things you want to say about him, he did a hell of a job. The more people we can bring in Public Service like this, the better the country is going to be. Can i ask this, true narratives around Preet Bharara, one is exactly what you just said maybe three narratives. There was another if you remember after 2009, 10, 11 where people said he wasnt aggressive enough when it came to wall street in terms of going after the wall street banks, if you remember that. Then there was another narrative, which was that he was a publicity hungry overreacher when it came to the hedge fund managers. So how do you square all three different versions of this. Wait a minute. So hes an overreacher. So hes all those things you want to call him. He did a hell of a job. Who doesnt have flaws. Maybe not me, at least thats what my wife tells me. Only kidding. He did go after both sides. I think certainly in the legal community, anybody who would talk about Preet Bharara would say he did a fabulous job and that he was fearless, he was strong, he was willing to take on difficult cases. He was welling to put himself out there. He went after both sides, which was important, which made people feel better about what he was doing. He went after both sides. Across the board people would say he did a fabulous job. What are the implications to the cases up next, the cases still on the docket. We talked about the potential. Blah blah blah. De blasio, fox case that may or may not exist. The cases will continue. And one of the things that i think that the press isnt really realizing is that there is often a lot of turnover in u. S. Attorneys office. There are often multiple u. S. Assistant attorneys who are most of the time working on these cases day in and day out. And cases have different people work on them and they continue. So the case actually usually survives whoever is in charge. The difference, of course, there is something called prosecutorial discretion. Thats when it makes a difference. Talking about de blasio, u. S. Attorney will be involved in those decisions. Whatever position he or she may have with the issues involved and what is appropriate could affect whether an Investigation Continues or what the outcome of a particular investigation may be. So thats where the difference will be. Right now it will continue as is. Fair to say conspiracy theories if something is not followed up on, dropped, charges arent brought, thats what well continue to hear about for a while. Sure. Part of it, too, preet was a very, very good u. S. Attorney. I dont know who is going to be appointed. Do they have any names . I dont know right now. They have an acting u. S. Attorney who was second in command, who i assume would be very familiar with everything going on in the office. Right now i would say its pretty seamless the transition. Eventually somebody else will be brought in and they will be brought up to speed very quickly. Cases are generally assigned to somebody at a lower level anyway to actually deal with the day to day. Annemarie, thank you for joining us. Coming up talk strategy. One of three senators tom coburn released a blueprint for replacing obamacare three years ago. Youre watching squawk box right here on cnbc. 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 box, everybody. Weve been watching futures this morning. Lets take a look right now. Things looking around flat line. Down a little bit, 13 points for dow futures. Dow was down last week. It was a rare down week over the last several months. S p futures down by 2 points this morning, nasdaq down by 6 1 2. Jim paulson chief strategist. Good to see you this morning. Good to be here, becky. What do you think well see this week. Fed largely deciding to raise rates. Does that matter for the markets at this point . Were kind of in a unique situation historically, a hugely positive correlation going on for recent years between changes in the stock market and changes in bond yields. If you go back to 1900 and look at all the months over that period of time, weve been running at some of the highest quintile correlations over that 110 year period. What that says, more times than not when rates go up, the stock market has gone up. I think were still in that mode. It reflects looking at yields, less is a threat to stock market that inflation is rising, more evidence that the economy is Getting Better and farther away from deflation. I think thats how were seeing this wednesday rate hike. Normalization of Monetary Policy is actually Building Confidence among stock investors rather than what it would have done in 1970s or 80s or 90s when it would have created fear inflation is getting out of control and stocks would be under pressure. I actually think the market is going to be fine with this rate hike. I still think were doing to see higher stock market and higher bond yields before this thing peaks out, maybe later this year. Before this thing peaks out later this year. You mean the stock market rally peaks out later this year . I think its possible, becky. What im watching for is when does the markets attitude, investors attitude, shift from rising rates and rising inflation as a good thing suggesting the economy is Getting Better to it turns back to its a bad thing, the fed gets behind the curve, bond vigilantes get agitated and higher rates start to bite the stock market. I think that might happen later this year. What are you talking about . Were at zero. How far between now and then. Would you tell people not to get in or a lot of room to run. A lot of run. Saying this for years. I think i think that a lot of markets peak out around 20 times earnings. This is just guesswork but i do think were going to hit street estimates around 130 share earnings. I think the market moves suggest that earnings are going to come through. If thats the case, maybe this thing could run to 20 times, 130 times, 130. Which gets us to where on the s p. 2600. Around that level. Maybe tenyear yield backs up higher than people think, 3 1 4, 3 1 2. Jim, they could raise rates every meeting for the next 20 meetings and wed be back to 4 . Weve been in this deflationary where everybody is worried around the globe and no inflation in japan for 20 years. We could be filling this up for the next three or four years trying to get some actual inflation. How could it happen by the end of this year . I think youre nuts. Joe, joe, im not suggesting the bull market ends this year. Im just talking about Interest Rates and inflation getting to the point where they would be worrisome. Weve been down here for so long. We have lived here is somewhat my concern about what could happen on the inflation fear. Weve got a lot of inflation indicators right on the cusp. Core inflation if it rises by. 1 will go to the highest level of recovery. A quarter breaking back 2 . Wages, i think, are very likely to go for 3 this year. If all those happen at the same time, i think that could create a lot more attention about inflation breaking out to new highs for the recovery. Lets get away from the market. Lets talk about the economy. Weve lived on free money. Thats great. For what, almost 10 years. Free money. Now, it seems to me the only downside to higher rates is the impact its going to have on the federal budget and federal defic deficit, because they are going to go up. When you think about the pain that people who depend on fixed incomes, Social Security people, pensions, we need higher rates. Its unrealistic. It didnt work. We have at best right now a tepid economy. What do we have last seven or eight years, 3 gdp growth. So this to me is a nonstarter. I think when we begin to normalize, what youre talking about, when we begin to normalize where rates should be, i think then weve got a chance to look at this picture and say now what do we do to get it going. Right now you think about, take a state like illinois where there are pensions. What are you going to do with deficits in that pension if they continue to have terribly low income. Im arguing for higher rates because i would be impacted because exceptionally my exposure investments is equity. I think over the longterm im better served by higher rates. Which is what you said, jim, i thought. Im just going to say i dont disagree with a lot of what youre saying. I would say this, though, one of the great things happening right now around the economy, not so much growing faster, its broadening out. Its reaching more corners of the globe than weve ever had simultaneously. The citigroup economic surprise indexes at record highs for the recovery showing a broad global force here at play. But more importantly in the United States, this recovery has finally reached main street in Middle America for the first time. Real median incomes have shot up in 2015. They give every indication they are going to go up in 16. Real wages going up. Were at full employment. Weve got broader participation in this country than weve ever had. I think thats adding to the optimism and animal spirits youre starting to see emerge. Im pretty positive on the economy. Im just worried at some point the good news turns to bad news for stocks. You should be happy. Weve got to say goodbye to you. You should be happy. You should be happy. If you had your way, Bernie Sanders would be president , all right, so just be glad things are happening the way they are. Stop looking at it with a gimlet eye or whatever its called, paulsen. Thank god you only had one vote. Hes late for a picket line. He is. Very quickly, do you think 26 rally just to be clear. Just kidding. Im not. You think 2600 s p before the rally dies out just to be clear . Thats just my guess, becky. I think bond yields back up a whole other Percentage Points and then we have maybe a pause. Did you vote in the primary in minnesota . Did you vote for bernie . I dont have to disclose my political preferences. He does not have to. He does not have to. But youre not denying it either. Its a nondenial. We do not have to disclose our preferences. Its a free country. Andrew told me the day before election day who he was voting for. Shocking. Its okay, look i can tell you, joe, go gophers number five seed. Ive seen them. Watched the wisconsin game for a little while. I cant remember who won that game. Wisconsin won that one. Thats history. See you later, see, hes turning all red. He should be red. Anyway, thanks. He didnt vote for i dont think he was a sanders guy. Sorkin was. Hes had too much of a taste of the good life to vote for sanders. More than most. Compartmentalize. You can continue talking about me during commerce break. Health care in america to talk about when we return former senator tom coburn is going to react to gops Health Care Plan. You are watching squawk box on cnbc. Of course, mr. Langone will be with us when we return. Ur dream. At vicarious visions, i get to be creative, work with awesome people, and we get to make great games. what i like about the area, feels like Everybody Knows each other. And i can go to my local coffee shop and they know who i am. Its really cool. New york state is filled with bright minds like lisas. To find the companies and talent of tomorrow, search for our page, jobsinnewyorkstate on linkedin. Search for our page, uh, yeah. What is . R, larry. The whole wheelie thing. What do you mean . I just got this baby to get around the plant floor. Right, but now Ge Technology monitors every machine. Yeah, it brings massive amounts of information right to you. So you dont need that. Well, it makes me look young and uh. With it. Time to move on. Oh ill move on. Right into the future. Backwards. Youre going backwards. The futures all around us not just on your little tablet, my friend. Welcome back to squawk box. A little breaking news for you. We have an update on a potential deal this morning. Shares of mobileeye halted after an israeli news website called the chipmaker intel will buy them for 15 billion. The deal will be announced today. We will monitor that. When we come by, stop stories. Dont miss Kevin Mccarthy. He will join us on set. When we come back well talk to ken langone about border tax. As founder of home depot, hear what he says when we come back. Yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. The market. Redict but through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Just another manic monday wish it was sunday thats my fun day good morning, everybody. Welcome back to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Among the stories front and center, gasoline prices up 0. 02 a gallon past two weeks. Nbc analyst says now 2. 35, 0. 51 above where it was a year ago. Moodys says United States will retain its aaa Credit Rating despite possible return to the federal debt ceiling as long as it makes its interest payments. Lawmakers suspended the ceiling in 2015. That suspension would end wednesday if its not extended. Moodys industrial writes aaa, downgraded to aa plus in august 2011. Kong skull Island Number one, well above estimates. Warner brothers movie was an expensive one. It costs 185 million to produce and will need a good overseas showing as well. Still irritates me. What . S p. Thought you were saying king kong. That irritates me, too. How many kong movies can you make . I think theres been about seven or eight. They keep finding that big ape. They have gotten bher and better making him do cool things, making him look human. A tough way, ken, on this trig to make you look more human. Quickly before we go to ken, the intelmobileeye deal is happening. It halted on the news it would be bought by intel. That deal is, in fact, happening, mobileeye shares up and intel. This could transform intel if you think about it. I know in the shortterm it probably doesnt but you think about the idea of them getting spot automobile business, seems like anybody could be buying mobileeye, anybody. I appreciate that. Ultimately they are going to be one of the Technology Players behind Autonomous Vehicles in the future, whether its trucks. You must know more about it. Is mobileye the one . Mobileye is the key to a lot of this. Everybody trying to create their own technology but mobileye is one of the top players out there. Get back to guest host ken langone, cofounder of home depot. Its a retailer. Retailers are scared to death. A lot of different ways of saying that. Scared to death of the border adjustment tax. Were going to i hope we built a full screen of what stan said. Right. Ive always said that. Not that truckenmiller is end all be all. The house tax plan as presently conceived would represent the most promising fundamental reform in decades. It addresses both our overlying consumption versus investment as well as leveling the Playing Field with our Major Trading partners. It simplifies and proddens the tax. It encourages production versus financial engineering, discourages moving production overseas while one piece of a larger puzzle, the border adjustment tax essential, a tragic lost opportunity if the bill is carved up or not passed. Youre a retail and you want it, too. Im going to give you a statistic, and i cant prove it. Bernie is for it. Bernie marcus. Im not going to tell you what my net worth is. But i think if you took bernies and my investment in home depot, it would probably add up to more than the total investment of all the ceos of all the other major retailers. So i would say we have some skin in the game. Now, there are people out there that may say this guy is nuts, in which case hes saying this because hes wacky. The fact of the matter is, i cant be more excited about a border tax. Let me tell you why. Mccarthy is coming on . Yeah. Okay. Republicans, democrats, the media, everybody was against trump. The American People elected him president in my mind for one reason, they dont want incremental change, they want major change. He took down three dynasties, the clintons, the bushes and the obamas. This is a tsunami. If you guys dont like being in the majority in the house or the senate, then you make sure we dont get these dramatic things done. Were going to go right back to where we were. Theres a strong argument for term limits. This makes the point. Now, whats the most important thing to a retailer in my mind . Sales. If you dont have sales, you havent got a business. To home depot, we had two goals in mind when we started and we stuck to it, the most important people are customers and our associates. Anything we can do to make it better for our associates and for our customers is good for us. We proved it. Im not bragging, and i dont want to jinx us, but here we are in a period of time where retailers are wringing their hands and struggling, you saw our numbers last quarter. Now, weve got a fabulous Management Team. A border tax if we have the long point of view will be a phenomenal engine for growth in america, big time. Now, while were at it, though, lets be honest. Weve got to look hard at corporate welfare. I know how stan feels, and i share it with him, the interest should be taxed. They wouldnt have that if they didnt earn it. I know whatever i earned in my business is ordinary income. So lets put it all on the table and say, guys, were going to change the setting. Ronald reagan defined his presidency with i call it this is the Republican Partys air controller moment. In 1981, reagan said, guys, hear me out. You walk out, youre out. Oh, my god, the planes are going to crash, not going to be able go back and read the same newspapers that write this crap today. No hard feelings, adam. Here we are with a moment in time and an opportunity. The American People have said to us, the Republican Party, okay, guys, here is your chance. The border tax will work. Puts more money in by the way, a tax cut, the first people that should be fed and taken care of no, i dont mean this pejoratively, the little people. The cafeteria workers, the people that work at home depot, the people that work at taco bell, those people. They should be first at the table. Then we should say to ourselves, all right, who pays the highest tax rate of any industry collectively. Retail. 37 . Why . I think somebody told me last week that the average corporate rate is 8 or 9 . I dont know if it is or not. But you look at a retailer you dont have fancy maneuverings. We mark it up, pay our wages, pay our rent and whats left is ours. Here we have an opportunity. Thats one thing. The other thing is the currency. I think youre going to have to be smart how you do it. For example, by the way, i dont know where home depot stands on this issue as a company. Im not going to go there. I do know i do know craig was not in washington with all the retailers. I dont know if thats a signal or not. Im just confused. How much of the product thats at home depot. About 20 . Is imported. About 20 . I asked for that. Its a guess. Okay . How does that differ, for example, from walmart, do you know . I dont know. But look, look, say youve got a period of time to adjust your contract, so, for example, if were buying from china, the new contract will say we pay in yuans. Let me brag on drucken miller, never had a losing year. I dont want to call him a genius, hell get the big head. Hes smart. I buy into his notion and larry lindseys notion, i agree wit, the dollar will go up if you pay in the foreign currency, you get the play on the currency on top of that. Said the same thing, david tepper. Gradually. But he didnt say the part about paying in the local currency, which makes that do you have time to change but chinas manufacturer wants to sell home depot. The merchant sits down and says by the way from this day on were paying in your currency. He doesnt accept it, he hasnt got the business. The biggest thing of all. The Job Opportunities in america are staggering. If i have a moment ill give you an example. Theres a little town called paris, tennessee, in the northwest corner of tennessee. Emerson electric had a plant there, 900 people. They were manufacturing all the power towels for sears, roebuck. They got a call one day, youre done, were going to china. Chuck knight called bernie. Bernie and i flew out we made a deal. Well move a lot of our private label stuff up. Part of that deal we got rigid brand, a powerful brand in home depot only. We saved 900 jobs. They had balloons. I got a bat in my office, a baseball bat. The point is you bring jobs back to these little towns because thats where you can build a sowing plant. This is nuts. All right. We are going to continue this conversation with ken langone. I have a million questions and i know everyone else does. We have news, intel announcing it will buy mobileye. Big announcement, john joins us to break it down. Put it in context for us. Good morning, andrew. This is a big deal, first of all, for intel. Its about 15 billion, it looks like, to put that in perspective. This mega deal that intel did a couple years back for just shy of 17 billion. So this is huge. This is brian, relatively new ceo of intel continuing to make his mark in the post pc era. Mobileye is all about computer vision. Right now we associate it with driverless cars, being able to understand whats on the road, eliminating blind spots, collision avoidance. Basically the computer being able to seamlessly interact with the physical world with minimal human intervention. Thats not what pcs are about. Pcs are about keyboards and mice and humans ability to interact with the digital world. This is flipping on its head. Qualcomm buying nxp, also an auto related company but not so much about vision of the road but more about basic operations and digitization of the car. This is Silicon Valley pushing further into the world thats about augmented reality. Becoming more tightly integrated into the world in the era beyond pc and even beyond the smartphone. Big price. Does the price tag make sense to you . Well, i mean, you can call it a huge price. Its less than facebook paid for whatsapp. Depends how big you believe this opportunity is. Intel doesnt have the greatest track record on acquisitions but particularly when they are in the consumer space. This is not in the consumer space. Its very much along the lines again of qualco qualcomm jon, explain this to us because we were talking about it earlier, mobileye has this technology. Who else does and where do they rank . Where do you put them relative to whoever else is out there. Mobileye is way in the front of this type of technology i would say. You look at some of the brands that they partner with in cars. They include cadillac, bmw, i think volvo is another brand who they are partnered with. So there are several other names in autonomous and right off the top of my head right now im going to mess them up so id rather avoid that since im speaking off the top of my head. Mobileye is this israeli company, just had them on for ces, one of the cofounders on from ces talking about this. They are in the forefront of this technology. They were actually speaking about tesla, because you recall there was controversy around the use of mobileye using technology as well as they should have been to see the road. This technology is applicable beyond just cars, i should mention, to drones. Brian has been talking about the potential value of drones, acting as a person. Part of that computer vision. Think of this as not being purp applicable to cars but all these situations where you might want computer or Digital Intelligence to recognize whats happening in the world and then react on its own. Jon, thank you for that. Fair enough. A little definition, lidar is a little thing that looks like a siren, has a bump on the top of the car but really is a laser. Selfdriving drones. Lets skip to selfdriving cars, right to selfdriving drones. No tunnels. No tunnels, no traffic. Coming up former senator tom coburn weigh in on gops Health Care Plan. Well talk with him in just a moment. Energy is amazing. How we use it is only limited by our imagination. And at Southern Company were building the future of energy, for you. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. I cant wait for her to have that College Experience that i had. The classes, the friends, when you have the right Financial Advisor, life can be brilliant. Ameriprise. Welcome back to squawk box, Republican Health care plan backed by President Trump continuing to make its way through congress but Republican House leadership pressing conservatives to get on board with the obamacare replacement. Joining us former u. S. Senator tom coburn, Senior Institute fellow. Are you on board, sir . With part of it, sure. But look, theres a fatal flaw in this if you actually want to lower prices. Theres no market in the world where you can have efficiency unless you have price discovery. And by not forcing ive already talked to parliamentarian and senate, you can put price discovery in this bill and not have it thrown out object the byrd rule. So who doesnt want price discovery, the Insurance Company and hospitals. If youre going by the market, you ought to know what things cost, look at the differences in prices and you ought to be able to see quality outcomes. No matter what they do, without that youre never going to lower the cost of health care in this country. What do you think the chances are that there are shifts in the actual bill that are more in line with your thinking . I dont know. Im not a lobbyist up there. I havent tried to change it. But my observation, ive said this for the 10 years i was in the senate and six i was in the house, as former practicing physician and part of outpatient surgery center, price discovery is what matters because people will shop it, and they will find it. I can buy, if i want to shop it, in tulsa, oklahoma, i can buy an mri for 250 versus get the numbers from cbo on what this means and how they will score it. The expectation is the headline coming out of it, we could hear 15 Million People will lose their health care, a number of surrogates and others from the administration came on the air over the weekend talking about those numbers and how maybe we shouldnt think about those numbers. How do you think about those numbers . Well, first of all, thats between now and 2020. Thats four years from now. Thats at the end of fiscal year 2020. Most of that is whatever happens in medicaid. Its not about what happens in real market, not what happens in the insurance market. If they do this right, if you are a smart governor, what you would want to do is put personal responsibility often medicaid patients by creating medical savings accounts. Senator burr, senator hatch and fred upton have a good bill. Im not really bent over bad on the tax credits, because what were doing is equalizing tax treatment for individuals like we do businesses. So i dont think thats a problem. But i would like to see them clean it off and have something. What they are wrestling this is they dont have enough votes in the senate. So what paul ryan says, 99 of it is accurate. Youve got to send a bill that cannot be byrd ruled through the senate. Dr. Coburn, how are you today . Im fine, ken, how are you . Im well, thank you. Question, unrelated to everything were talking about this morning with health care, isnt this a moment in time where we ought to begin to consider some form of review at least and hopefully implementation of something to do with tort reform . Because when you speak about health care cost, think of the enormity of the liabilities that all of us, and im peripherally involved in the Health Care Industry, but think about the risk to all of us and doing our best, which doesnt always come out to be the best, not because i havent tried, its because were dealing with humanity and were dealing with variables. It seems to me that while we have everything on the table right now, why wouldnt we also address the issue of tort reform certainly as it relates to the Health Care Industry . Great question except our founders wouldnt agree with you. The fact is as tort should be controlled by the states. Oklahoma totally reformed their tort system. Guess what, malpractice rates are half of what they used to be. Bingo. Same thing in texas. The point im making, ken, is we have too much Big Government now. I agree. We dont need the government involved in tort at the state level. Thats a state function. If states want to have a stupid tort system where it raises the cost of health care, let them do it, but they are not going to. They are doing to eventually get smart and say were going to cut this down. Doctor, real quick before we go, given your experience in washington and with the health care system, if youre handicapping whether there will be something, in fact, that does get passed, you think something does happen . Yeah. They cant afford not to have something happen. They made a promise to the American Public. They are going to have to do it and have to figure out the compromises, which is what the senate is all about. Youre not seeing one side play now. But what there has to be is compromise. People have to move. So you cant stake out this is the only way you can do it because youre not going to get it done. Okay. Doctor, we appreciate your time this morning. You bet. Good to see you guys. Nice talking to you, doctor. Good talking to you, ken. When we rush well have much more from guest host today ken langone. 8 00 p. M. Eastern time house leader Kevin Mccarthy will join us on set. Squawk box will be right back. . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley im on it. Ar does weathertech go to protect your vehicle . Weathertech. Made right, in america all right. Welcome back to squawk box. Boeing downgraded equal to overweight, bogey up 40 since mid 2016 and earnings potential largely unchanged. I. T. Consultant higher, upgraded to top pick from outperform at rbc capital based on potential for january acquisition of Technology Consulting firm ceb. A big hour ahead on squawk box. When we come back, House Majority leader Kevin Mccarthy will join us on set, have a busy week on capitol hill. Plus more from guest host ken lank langone. Youre watching squawk box on cnbc. The greatest population shift in Human History is happening before our eyes. Sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. Squawk box is in session. Health care, taxes, the budget. Well call this hour to order with the House Majority leader Kevin Mccarthy joins us ahead. The sheriff of wall street no more. Preet bharara fired after refusing to resign. The full story coming up. Plus bracing for potential blizzard. Getting worse. The final hour of squawk box begins now live from the most powerful city in the world, new york, this is squawk box. Make me so happy. Good morning and welcome to squawk box on cnbc live from Nasdaq Market site times square im joe kernen with becky quick and Andrew Ross Sorkin. Our wonderful guest host this morning, so generous, such a good man, ken langone, cares about his friend. Does a lot of things for him. Thank you. Futures right now are indicated a little lower last we looked. When i say little bit, i mean little bit. Down three on the dow, nasdaq down a little, five and change. S p flat. Freshry yields moderate. About 2. 6 last week, 2. 7. Intel buying mobileye, you can see shares jumping more than 31 increase, still below that deal offer at 6214 the last trade for mobileye shares. Intel shares down about 1 this morning. Mobileye, of course, is provider of autonomous driving technology. Intel ceo is going to be joining squawk alley this morning. Fed concluding with policy decision and janet yellen News Conference wednesday afternoon. In global news scattered showers leader says shell seek authority for new independence vote wants it held between autu autumn. Important to know they can actually grant scotland another referendum but can put pressure on them to make it happen. Another busy week expected on capitol hill. I think from here on out its going to be busy. The white house will release its budget thursday and republicans will be pushing forward with the american Health Care Plan as well. Joining us now on set House Majority leader Kevin Mccarthy. Its great to have you here close where we can kick this stuff around. Good to see you and you look good. Ill take that as a compliment. Thats as good as youre going to get from him. What were hearing is the votes arent in the senate. In a nut shell, votes arent in the senate. My question is, can you keep the conservatives in the house on board if you mollify some of these senators that want even more the conservatives in the house dont want to give as much as they are giving now. If you have to give more to get votes in the senate, can you keep those guys on board in the house. Look, i think were in a good place right now. Youve got some from both extremes of the party complaining. So that means youre in a very good place. Is it just bargaining now, blowing off steam. Every member wants to legislate. Weve been working six year, everyone giving irn put. As long as the bill is moving people want to make changes through it. I think once we get up through the house, the senate will look at it. I think this bill is going. This is the bill President Trump supports. This is fundamental change were looking at cbo score coming out today. Remember what c bflt o score is going to do. This is three phases of changes were going to make. This is phase one. They are only looking into phase one. They dont take anything into account tom price 14 different elements of power he has in it. They dont take anything into account of what phase three is going to do. We all know why were here. Obamacare has collapsed. Obamacare is failing. Onethird of the entire country, have one provider. 16 counties in tennessee have no providers next year. You watch prels continue to rise. You saw 23 come opposes given 2 billion, 18 of those collapsed. You saw what he said, dont walk the plank. Youre going to vote on this and its going to the senate. There are problems right now with trying to wrangle all these cats. I think theres a bigger problem if we do nothing and allow people to continue to suffer. I agree. There are some guys who would just like to totally repeal it. It is the genie out of the bottle. There is a new entitlement, its going to stay . How is that a new entitlement . Were repealing taxes, individual mandate, mandate on business, medical device tax. This the bill we sent tax credits. They used to be subsidies now tax credits. If businesses get to write off but individuals do not, that levels Playing Field. If youre allowing somebody to keep more of their own money and make the decision where to go with health care. To me thats conservative. I dont understand how thats an entitlement . Look, last november the American People did something nobody bet would have happened. Whats wrong with the democrats today . They still cant believe it happened. But the republicans have to understand it happened, too. Im not going to sit and argue this piece is good and that piece is bad. But if you dont get your guys in a room and say, guys, this is our moment. The American People will throw you out, too, the next time. They are fed up. They did a very dramatic earth shattering thing. They elected i think has the capacity to go down as one of our greatest president s ever. Why . He does things people say cant get done. Im going to Say Something not to threaten you but point out a moment in history. One of his Campaign Promises was term limits. I know what i would do if i were hill and didnt get cooperation from the house and senate, okay, boys, were going to our nuclear option. Im going out and saying one of the reasons none of this is getting done, these guys are worried about getting reelected. You know and i know Election Night when youre told youre a winner, you go what do i have to do to get reelected again. Like it or not it is what it is. I dont worry about my job. Have you to worry about the job. Im telling you this is for the Republican Party not democratic party, get it done. If you dont, American People will speak again. We didnt have one single vote for obamacare. Thats good. We said back then its bad. We shouldnt idot. So our fingerprints arent on it. Nothing is perfect. Youre not getting what you want in that bill. Get the guys in the room and say, guys, here is your choice. Do you want to take him with you . These are the exact discussions. Im not going in the room. Just go and give a little seminar. I was just talking to the president in the last week. Many times weve talked. This is important. This is also a part of going into tax reform. Why you start with health care, you can repeal all those taxes, which we are doing. That lowers the baseline by a trillion dollars, lets you expand growth even further. If we finish up, weve gone reg reform, health care reform, tax reform, infrastructure, this country will see growth like they havent seen in quite sometime. Give us 3. 5 gdp growth. All of americas problems for the most part financially, economically go away. We cant solve our problems without growth. Growth is the underlying factor we need. On health care i want to ask you this. Aarp says the following. Would weaken sustainable dramatically increase Health Care Age 50 to 64 put at risk health care for millions of children and adults, seniors longterm medicaid and supports and other benefits. The other analysis suggests it will cost people about 1542 more a year. Read that very first line again. It says its going to weaken medicare. This bill does nothing to medicare. Remember what obamacare did, cut that 500 million from medicare. These scare tactics will not work. How does is hurt more choices, humana pulls out, aetna says its on a death spiral. Everybody agrees something has to be done. This audience probably knows better than anybody else, when you bring more competition into the market, what happens . People get greater choice and the price goes down. Id rather rely on history and the idea of economics of what works and we know it will be better. Were giving people a greater choice when it comes to health care. We do nothing with medicare. If you get your head care from the company, nothing to you. Remember, obamacare only did three major things. One, it took greater control and put regulations and restraints from government. It created exchanges which now have collapsed. Only a third of this country has one choice, and it expanded medicaid. What it did around medicaid is now going to cost us within a tenyear window a trillion dollars in one year. Put that into perspective. We spend a trillion dollars on all Discretionary Spending for government. So thats unsustainable. We cannot deny the fact that this has failed and we put a new plan out. This is phase one of three phases so youre going to hear a lot of scare tactics. Youre going to hear a lot of things that do not take into effect the entire bill and whats going to happen. Putting politics aside a Health Care Analyst from jpmorgan this morning. He said if you look at health care stocks, he broke it down into hospital stocks in particular, he thinks well be hit pretty hard if this bill goes through. Hes giving it a 50 50 shot it will get passed, better odds than markets doing. Hospitals will be hurt potentially 15 Million People that wont have Health Care Insurance who will still be showing up to the hospitals and the hospitals will have to pay to help them get healthy. Access is not care. How many doctor take medicaid and how many specialists take medicaid. Emergency rooms in the hospital. Why emergency room when they have more choice, onethird of the counties only have one option. Youre going to have greater choice. Youre going to be going across state lines and you determine where you go. This is age based, too. This is where i have argument with aarp. The tax credit goes up with age so were taking care of that. In fairness, why do you think the aarp is not supportive of this . You would think they would be trying to support their members. On medicare. Who want to have health care and they think for some reason that they are doing to be worse off not better. They dont have any theres no way they will go for any type of entitlement reform for medicare or Social Security, andrew. Looking at youre never going to talk aarp into this tough choice. Look at the kaiser study that will take a 50yearold person who lives in my district says better off with this plan. I can give you plan to plan. You know we need a means test eventually. We all know the simple. Aarp. Answer the question. Given were talking about this issue. Youre confusing your viewer. Becky, medicine is moving to more ambulatory care. The most dangerous place in the world to be if youre sick is in a hospital because of in effe effection infection. Younger people will not go for Health Care Coverage because its expensive. Talking about hospital stocks. Retailer should worry about getting more sales and not this border adjustment tax, the same is true of the hospitals. They have got a bigger problem, becky. More and more we do hipaa nyu, get you out the next morning overnight. Im talking about peel who show up without insurance and have an urgent matter. They are at a hospital. You know this let me tell you what, let me dispel a notion. Not one single hospital in the city ever turned somebody away. Come on. You go to a hospital and the kid is bleeding you dont say give me your insurance card, take you care of them. You take care of them. Debt is piling up because of people who arent covered that show up. I think thats a scare tactic. Health care slz sanalysis. Look, it got to be fixed. You guys are living with a perishable commodity, your terms. Its that simple. I see what everybody says on the outside but look where were going. We have to do reconciliation, we cant write all three phases into one. Thats why youre getting study after study that says it doesnt follow all the way through. They cant take into effect the power of tom price as secretary, which in the aca gives him 14 different points of shell, cant take into effect third phase selling across state lines and others. From that point if you look at it overall, this is going to be lowering the price. Were not shooting for status quo, were shooting for something much better. Were giving people greater choice in their own health care decisions. Think about what its done to business, the mandate, 30 hours, 50 employees or greater. Its put a whole generation having to work two parttime jobs. No one is scoring that in the aarp, are they . In terms of the scoring and the way the American Public thinks about, this is there a way to talk about and include phase two and three today. We talk about it today. We will move some of the bills that will take 60 votes, which are in phase three, some of those will start moving at the same time we move this on the floor and the weeks after. So youll start to see those. You should take that into effect. But phase one also has former senator coburn, the byrd rule, which is difficult. Were dealing with these rules in the senate, which is ironic to me those in the senate who want to tell us to slow down and others. Because of their rules we cant do all three. Can i ask a question about the rules . Yes. Can a simple majority change the rules . In the senate . Yes. With power they can. Why dont we do it . Harry reid did it with federal judgeships, why dont they do it . This is an example of lack of coverage. What are you going to do if the nominee for the Supreme Court doesnt get confirmed. Hes going to get confirmed. I agree hes going to get confirmed. The next one is going to be the big fight. The next nominee to the Supreme Court will be the big fight. Change the rules. You have the power. I dont have the power. Im not a senator. Im saying you, the republicans in the senate right now. Youre looking more senatorlike. He does look like a good senator. I think the senate is like a country club and the house is having breakfast at a truck stop. Were a microcosm. I feel very privileged to serve. I like where im at. They meet and talk in the senate. They do. Weve seen it for years. John kerry perfect senator. Youve got 20 guys you can play with in the house, you know, some of them probably not going to go. Youve got like two in the senate. Does that mean, right, does that mean youve got to move towards the senate and give them some of the stuff they are whining about . I look at it like this. The way our country was created, you have two bodies. Do the work in the body that you are and make a very great product and let us send over and have them do whatever work they can do. Dont overestimate, weve gone through two committees already and every republican voted for it. In both committees they are a microcosm of our conference from the Freedom Caucus to study group, every spectrum from most conservative to those that will be on the other side. They all voted for it. Its a good place to be when you have both extremes of the country concerned about a bill. You might have hit just the right place. Remember, the president is going to go on the road talking about this bill. I think when he engages the American Public it will be different. Will President Trump put pressure on any senators who arent going to vote on it . Do you expect him to go to bat. Lets move it out of the house. Every part of us building and making this country better starts with health care. Right. If we falter here, they are harming the entire agenda going forward. That should not be the case. Your opponents, get it done. Are you a border adjustment tax guy . Im for overall tax reform. To me the element of the last election is lack of growth in the country. Are you a border adjustment guy . I support border adjustment. Its a big one. That can get done, too . Its the same problem i see, though. Its like where they are against it. This is a legislative process . Really . If i want to have influence on a bill at the very end, im going to complain and im going to try to negotiate something and thats human nature. Thats what legislators try to do. Youre watching the process what were going through and at the same time they are saying this its moving through committee and moved through two committees already. Now its going to budget, then it will go to rules next week and come to the floor. Youre going to continue to hear this as it goes. Democrats have an excuse for the last eight years or last six years anyway. They have an excuse because they couldnt get anything youve got all three, the presidency and both houses, no excuses. This is only the third time world war ii has the public entrusted us with this power. Were not going to waist this. We know it is precious and were going to represent it. If democrats had super majorities in the senate, they gave us the Great Society and they gave us obamacare. We dont have 16 in the senate so we have different rules to apply. You have one of the greatest opportunities in the world. I agree. Thats donald trump. Why . I think this guy is ready to make bold moves. He proved it in the campaign and he won of i see it just like in business we have disrupters, donald trump is a disrupter and thats what we need to shake government up. He will push us. Its a moment in time. Dont blow it. Low in come people face a much larger gap in price credits. Older adults face the largest crunch. Magnitude of tax credit home run i think so, second provision allows insurers to charge older people substantially higher prices than allowed. Five to one and three to one. So when we repeal all that obamacare, what that did to obamacare, it priced out the younger people. The younger people didnt join. When you do insurance, its a group of individuals. You want the people who are younger who dont need it as much. It makes the market better. In obamacare three to one, so it pushed younger people out. Thats part of the reason why the collapse. Youre also not taking into effect in my belief there, what does it do to the marketplace. What does it do to business, small businesses, what does it do to moving people out where they have to have two parttime jobs. That created a whole new lower economy with having obamacare. Thats all repealed. Were repealing individual mandate. Were repealing three to one. Youre going to get greater choice. Our tax credit goes up for those who are older because you get more because thats what you need. In fairness, you cited the study before. The kaiser study, arp, i can take the exact study youre repeating to me saying its hampling somebody older. I can take a 50yearold inside my county and its better for them. So i can pinpoint any part of any study you want to do. Lets look at principle. If we bring more health care into the market, if we allow people to make their own decision and we give them a tax credit to do it, i believe history has shown greater competition across state lines, more choice, the price will go down. That may very well be true. I want to point out its not clear kaiser agrees on that. Kaiser does agree with a 50yearold in my district its better for them. For your district but not all. My district is probably one of the most diverse districts you can find. Okay. Its not high income. Okay. Fair enough. We shall see. Whats next. Legislative process. The key to this is when we get health care fixed remember, were not we dont want to compare ourselves to obamacare. We want something better. That has failed. Theres a reason why were at the place where we are. Thats in this whole debate people forget that. If we did nothing, what would you end up with . Medicaid is not sustainable. Its going to take every discretionary dollar you ask for, so you wipe out all of government. Secondly this doesnt do anything with medicare, health care you have in business so the exchanges. The exchanges are on a spiral. Thats not my words, thats the health care. Thats not a study. Thats whats actually happening today. Id rather live in reality than what someone sits back no question a lot of this stuff is unraveling, weve seen big insurers step back. Some will step back and say why get rid of taxes, if you kept the taxes and did the changes youre doing youd be shoring up some of these other areas. Why get rid of the areas, what has the medical device done to this country . I complained that when they put it in. You know what else, if were all sitting, you do it every day on this show, talk about growth in this country. If were going to solve any problems weve got to get growth up. When you lower taxes you change the baseline of this country as we move forward for tax reform. Thats while well pivot to tax reform next. If we have pro growth tax reform that comes out you bring jobs back to the country, growth above 3 to 4 . Why is less than 2 the new norm in america . Why do we settle for mediocracy when we can be great . All these problems will go away. You know what, when you docthav disruption and change, turn it around like the big Aircraft Carrier this country is, its not easy. The future of where were going is so much better. We hire 80,000 people in the Spring Season parttime. Why are they working . Because they need the money. Home depot. Home depot. 80,000. We already have 36020400,000. These are associates, not Contract Commission people. The number of parttimers who would like to work more hours, we cant let them work more hours because of obamacare and the 30hour limit. So what happens . To be safe the store manager says im cutting them off at 28. If youve got a great person in the guard be departmearden depas about flowers, let them work 60 hours. Thats when they buy flowers. Let them get comfortable he knows what hes talking about, i shouldnt plant in shade, i should put them over here. The point is, this is a bad law. Youve got to get out and sell where what youre going to do different. I think most American People dont know what youre talking about. It doesnt affect everyone. Theres a certain portion of the population Obamacare Exchanges and medicaid. I sat down with 18 governors, republicans and democrats, in a room with no press talking about moving forward. You know what they all asked me for, flexibility. Let us management our population. Give us flexibility. Thats exactly what this bill does. Our states are pilot programs. Some of our best ideas come outfit states and governors that are managing. We allow them to do what they need. Its not one size fits all. Let the states go out and show what they can have happen. Just i want you to tell me right honestly from your heart, what flank are you more worried about, the flank that wants more or the flank that actually wants to cut back . More. Youre worried about the ones that want more . Yeah. So youre worried about the senate. Youre right. I always worry about the senate. We all do. Before we go because i know were going to talk about it in the next segment, what did you think about Preet Bharara getting fired or made to resign. It gets a lot of press but like every administration why do we have a new cabinet. Every administration goes through this. Let them carry out their people and put it through. In every administration those on the outside complain about it but its part of the transition going through. Quickly before you go. Weve heard time tables from members of the cabinet in the past about what they would like to see done. What is your timetable for Affordable Care american care act and tax reform . When do you expect to see these passed . I want this all done by september and infrastructure. I want reg reform, which were not talking a lot about but is transforming the mindset of where capital is going. Only one time in history have we ever signed into law Congressional Review Act prior to this administration. We already signed three. We passed 14. Now were going to health care, then well go to tax, then infrastructure. I think getting all that done in this first year is probably going to be one of the most productive congresses but actually change the country around and we have to have it done. All right. Well done. Well done. I take that as a big compliment. You want to know this. The gift i used to give my nephews, just a small working guy, i would buy them one share of home depot. Great bet. Thats what i gave them for my birthday. Im 82 and bernie is 87 and were out completely and still working like hell for the stockholders for nothing. April is your christmas. April is our christmas. I know that well. Its a great company. Thank you very much. Thank you for your time. Thank you, guys. Look forward to seeing you later. Back in d. C. , hopefully back on set. Meantime we return this morning stocks to watch plus wall street bracing for potential blizzard this week. A report from the Weather Channel coming up. Much more from our guest host always speaking his mind ken langone is going to join us or stick with us on squawk box right here on cnbc. i moved upstate because i was interested in building a career. I came to ibm to manage global clients and big data. But i found so much more. its really a melting pot of activities and people. applause, cheering new york state is filled with bright minds like victorias. To find the companies and talent of tomorrow, search for our page, jobsinnewyorkstate on linkedin. Search for our page, hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade good morning. Welcome back to squawk box. Nasdaq market site in times square. News breaking earlier this morning, big news, intel buying mobileye, worth 15. 3 billion the transaction. Mobileye a provider of autonomous driving technology. Intels ceo is going to join squawk alley. Thats going to happen this morning. You dont want to miss it at 11 40 eastern time. Some other headlines this morning. Yahoo says board member Thomas Mcinerney will be its new ceo after it completes sale of internet assets to verizon. Former ceo at interactivecorp. At that time will change its name. President trump will meet german chancellor Angela Merkel in washington tomorrow. The meeting closely watched because of some significant policy disagreements. S. E. C. Suggested request from winkle vie for first bitcoin etf. They have been pushing approval for more than three years. S. E. C. Said it was concerned about the unregulated nature of the bitcoin markets and whether the etf could be traded effectively. Among top political stories President Trump asking 46 prosecutors to resign and firing Preet Bharara after he refused to step down. Eamon javers joins us. Good morning. Here is what we know about the time line. Administration sent the notice to u. S. Attorneys across the country on friday afternoon. There was confusion with Preet Bharara because he had a deal in november. He met with donald trump, jeff sessions, incoming attorney general. He said he was told that he was going to be asked to stay on. He assumed that was the case until friday. That tension continued into saturday. About 2 30 in the afternoon there was a call with acting Deputy Attorney general who told Preet Bharara that order applied to the attorney as well. They went around about whether he was fired. He said am i being fired. He said the notice requires all u. S. Attorneys including you. We need you to hand in your resignation. Right after that phone call ended Preet Bharara took to his new twitter account where he said he was nird. I did not resign. Moments ago i was fired. Being u. S. Attorney in Southern District of new york will be the greatest honor of my professional life. Then something of a mystery the next day on sunday Preet Bharara tweeting out this. By the way, now i know what the Moreland Commission must have felt like. Andrew, as you know, in new york state the Moreland Commission was anticorruption effort that was shut down by Governor Cuomo before it could finish its work. Some question what Preet Bharara was suggesting in the tweet. Is there information he was working on anticorruption effort that was shut down before it could be brought to fruition, or what he meant by that. Thought sure if it was take dig at cuomo, trump, back to you guys. Eamon, thank you very much. When we come back, much more from guest home ken langone. Tomorrow on squawk box, two ark architectures, congressman cech brady and greg walden will join us live 8 30 eastern time. Stay tuned. Well be right back. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claims centers are available to assist you 24 7. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance welcome back, everybody. Our guest host on squawk box is ken langone, cofounder of home depot. Ken, we were talking about the border adjustment tax and we didnt get to finish your thoughts on this. We talked earlier about how america expects big things out of donald trump. I think donald trump wants to deliver big things to the American People, so youve got a match. Theres no way if the tax reform is going to be incremental, it means nothing. We cant afford all the things we can do with tax reform unless we can figure a way out to make it happen financially. We cant go to more debt. Okay . What im saying is, i think if we take a longview, trump will have the financial wherewithal, border adjustment tax will work. It will work for retailers, but they have got to think beyond the next quarter or next six months. Youre going to have to be intelligent about how you implement it. In other words, take home depot, give us time to renegotiate contracts with foreign sources. But if you do that lets go back to being americans geb. Lets all be patriotic, lets all have skin in the game, lets ask the question how bad is it going to be for me. I know im getting old and i know senile but i wouldnt embrace border adjustment tax if i thought it was going to hurt one of my biggest single investments, home depot. I think everybody will win but youve got to give it a chance. We need look, i think trump is a moment in time we should take advantage of. I dont care how you felt about the guy, i think the guy wants to do big things. What youre talking about with border adjustment tax, brought in gradually retailers think about it, redo currency. That means manufacturers in other countries would be the ones that suffer, make job creation here look better. People would say, forts it, lets do it here. One of the knocks on the border adjustment tax, it would mean the consumer is going to pay more, particularly low end consumers, they are going to be ones who end up paying for goods when they go to walmart. You take the argument they are going to pay more. That means the retailer wont be hurt, going to pass it onto consumer. Shouldnt have a problem at all if youre a retailer. Home depot would view it, how do we figure out how to manage our business that we dont look, the most important thing in the world on this tax revision for me is putting more money in the pockets of our associates and customers. People that have more im not talking about you dont think home depot would pass any of this tax onto consumer. I would hope not. What im saying theres a moment in time, and that time is now, where we all sit down and say lets think of the greater good, think of america. Think of this, becky. If i buy a hammer overseas for 20 and i have to price it at 21, lets say but carry at zero cost, think of the incentive for me finding hammer manufacturing in tennessee or vermont because if i pay 14 there, i can subtract it as a cost. Every incentive is there to create jobs in america. To change and make us more in line with other oecd countries. Also because of simple accounting. I buy a hammer in china 20 i have to carry full profit. If i get 20 bucks selling it, its 100 profit. If i buy it for 14 here, i only show 6 in profit buchlt we all have to think beyond the next quarter. We all have to think about the big pick. I go back to trump again. I think this guy could be destined to make very dramatic change. You know why . Because he knows nothing to anybody. The republicans were against him, the democrats, look at the media. The media still hasnt given up. Let me ask you a different question. What . Manufacturing in america, something you want to bring back. The critique of that on the other side manufacturing is almost anachronistic, we could bring manufacturing back technically but done by robots and ai. A lot of it will be done. How skhhould we k about that id rather have some jobs than no jobs. Ette way. The important thing is to look at the big picture, not be provincial. Stan talks passionately about the carried interest and how the carried interest, everybody has hea heard. I feel strongly theres benefits i get that i need. I shouldnt get Social Security. What is the government doing sending elaine and me money every month . Its nuts. Unless we start thinking as americans and all have skin in the game, it isnt going to work. Weve done the exact opposite last 50 years, whats mine, whats mine. Were at a point where weve got to make very tough decisions. Thats a great point. Ken langone, have more in a moment. Coming up top stories. Well talk about 15 billion tech deal. Stay tuned youre watching squawk box on cnbc. 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. I love the smell of napalm in the morning. No, this is double espresso. Hodor hodor ehhh, hodor. You guys watch game of thrones, right . Inconceivable surely, you cant be serious. I am serious. And dont call me shirley . Stream all your entertainment. Introducing at ts new unlimited data plans. Plus, get the amazing new iphone 7 on us. Kevin, meet yourkeviner. Kevin Kevin Kevin Kevin Kevin Kevin Kevin kevin kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond James Financial Advisor can do for you. Get down to new york stock exchange. Jim cramer joining us. Anyone else good at mobileye, they have a lock on it. Invidious, google makes its own chips. I think its kind of big three. I really like this move, Brian Krzanich told me in st. Francis he has to be bigger in autonomous cars. Good partnership with bmw and mobileye. A smart move, great quick by a Company Still viewed as a pc company. I think they are going to be able to talk to him at 11 00 something. Brian krzanich is terrific. Hes been trying to reinvent the company. At the same time pcs arent awful, a lot of cash flow. This is the kind of thing that says this is the future. The number of chips you need in a car, imebbs versus a pc. So its just great news for intel. Where are you right now at the storm, jimbo. They have got me they want me to go to inglewood, they think i cant get to manhattan to inglewood in five hours. Maybe jersey turnpike never closes but all these roads that could be a problem. They are sending us to new york. Were hiding here. Ill go wherever. Ill go anywhere they want. I brought a suit case and a couple suits. Jim, how about bucknell . West virginia could be something, ken. You know its possible. They look really good. They do look good and they are a great bunch of kids. Were proud of them. They will do the best they can. I hear great things about all of them. They are good in school. Thats what matters at bucknell. Who are you leaning towards who will win. Its impossible to pick. I am from philadelphia, i love nova, a good team. I saw duke lose two saturdays ago, unc, look awful. They want that tension. I know. Really good this time. You know, kind of hard to watch. Im starting to like them. I know people dont like him but he can play. They have some great players. Yes, they do. Very exciting weekend. They almost lost again to seton hall. I saw that. I couldnt believe it. I know. That was amazing. All right. Xavier almost beat crayton. Same thing last seconds. Thanks, jim, well see you in a couple minutes. Later on squawk alley, dont miss what we were talking about Brian Krzanich on at 11 40 eastern to talk about this big announced. Stay tuned. Squawk box will be right back. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. I did active duty 11 years. My in july of 98. And two in the reserves. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. When we come back, we have much more from our guest host. And two of the architects behind the house gop Health Care Plan, congressman kevin brady and congressman greg walden. Stay tuned. I work with people everywhere on sea, on land, and in the air. Inspecting towers way up high avoiding turbulence in the sky. Personalizing treatments with dna and recommending who should play. A dress that thinks, which crops to grow, tax prep to help keep payments low. You can find me on an oil rig, i answer questions small and big. Hello, my name is watson. I answer questions small and big. Its a very simple procedure, mr. Diaz. Were just going to make one small incision here, then were gonna go in and remove your 67 corvette. My vette . Its just a gall bladder you dont have. Aflac paying you cash, so you might have to sell that sweet little muscle machine just to cover your rent. More funny juice. But my papa gave me. That. Car. What do you wish you had . Aflac. Ohh, i love doing that. Health can change, but the life you love doesnt have to. Keep your lifestyle healthy with aflac our guest host this morning is ken langone. You have said some you shake things up. Youre not afraid i might get shot on the way out of here but, you know. That was interesting with leader mccarthy. The stuff you say about President Trump. When do you think it becomes less i mean, its there are polices where you can go around here. You cant even acknowledge that trump is president without let me tell you something. When the kids found out i was supporting trump, they picketed the building. Thats okay. Its america. However, i told the president , if they deface one brick, one brick, we got a problem. You want to riot, you want to have signs, this is america, this is a First Amendment right, im all for it. But let me tell you about trump. I think in this man we have a singular opportunity to get a lot done in this country. Remember Ronald Reagan in 80, b movie actor, bozo with what was it, bedtime with bozo, whatever the look, this guy has got guts. And hes got great people around him. Hes got rex, hes got kellyanne, who i love. Kellyannes husband is one of my lawyers. Kellyanne is a great asset. Hes got the best people in the world around him. What about the tweets . Do you worry about that at all . No, because thats where the world is going. I dont read the New York Times anymore. Why . Because i can get it on the internet for nothing. Im not asking about the technology. Im asking about when you wake up in the morning and he makes allegations about russia or goes after Arnold Schwarzenegger or whatever it is. You know how i view the tweets . Whats he going to do today . Whats the surprise of the day . This is fun. Come on. Hes giving us something to get excited about. And lets not blow it. Especially the Republican Party. Get it done. Because if you dont get it done, you aint going to be around. Take advantage of the freeness of this mans moment. Look at the things he did and said in the campaign and he won the election. I can think of three or four different things, oh, my god, thats it, its all over. He took down the bushes. He took down the clintons. He took down obama. He atlanttook down the republic party. He took down the media. The media hates him and t continues to hate him. You want to know why . Because the media is where it belongs, irrelevant. Financial news well, im on the media and im taking advantage of my opportunity to say you can fool some of the American People some of the time and you can fool all of them some of the time but you cant fool all of them all of the time. Thats the genius of america. All of us need to remember this is the greatest country on earth and we all have to have skin in the game and thats me and frank and bernie and everybody else. If we dont have this country, we aint got nothing. What do you think of the markets these days . We havent even hell i know. I dont sell scotttocks. Now its back up to 80 something. Stocks go up, stocks go down. Look, americas the greatest country on earth. Our economy is we own the next 25 years. If we get some of these basic things done, trust me, we own the next 25 years as a nation. And thats where we want to be. You look at the betsy devos stuff i love her. I know, but look at this country now. Do you think do we need the real the people that are totally antieverything . Do we need to bring them in . Will that ever heal . It would be nice if they could look beyond their own selfish interests. Look, chuck schumer, i have a great affection for what he did for me at the medical center. Chuck schumer needs to take a step back and say wait a minute, how do i show my constituents and the American People that at the end of the day i want the best for america . If the idea comes from the other side, ill embrace it. Thats all. Anyway, thank you. Thank you, thanks for having me. Make sure you join us tomorrow, squawk on the street begins right now. Good monday morning. Welcome to squawk on the street. At the new york stock exchange. We kick off a big week today. A fed decision. A white house budget. A cbo score on health care and a lot more. Futures are pretty tight as the s p broke that sixweek winning streak. Prime minister may could hit the button on article 5