the nasdaq indicated up by close to 7.5 points. in asia, you will see the nikkei actually was flat. it was down by 0.03% hang seng was up bay half percent. the shanghai composite was up by 0.3% in europe, in the early trading, will you see that right now it looks like things are mostly positive the dax is up by 0.3%. the ftse up by 0.6%. a couple big stories uber saying its ceo will head to london to meet with the transportation commissioner of london they will discuss london's decision to strip uber of its operating license. this coming 24 hours after theresa may called london's decision disproportionate. so uber may be back in business in london. joe mentioned this earlier, big deal in my world ikea announcing it's buying taskrabbit, it leets users to hire people to -- >> taskrabbit? >> i know this only because andrew has been into the idea of getting people do stuff for him >> do you like farming things out. having underlings do your stuff. i see that here. >> when if possible. >> kate's not here today he's going to be in a bad mood right? >> i will be taskrabbiting you in a moment. >> i'm here. if it puts you in a better mood, i'm here for you >> much of ikea's furniture needs assembly and taskrabbit was used to put together furnitu furniture. so whether you buy your furniture at pottery barn or wherever else, will it stay agnostic will there be a discount to use it google looking to take on amazon in the smart screen market google is developing a tablet smart screen for video calling and more and it would compete with the echo show device. no word on the cost or when it would become available just earlier this week google pulling youtube off of amazon echo claiming the experience wasn't so great. at least that was the explanation. but if there's some greater competition about to take place, that may also be part of the explanation. >> everything in ikea comes in a box. >> it does >> packed tight. >> you could get someone to -- >> put it together for you >> if you're not as handy as we are. would have to call someone >> donna got a soft top for her jeep jeep it said three hours, moderate assembly i opened it up, looked at it, i had a hard time getting it back together to bring it to a jeep deal dore er to do it. they had tools that they said i should have that i never heard of >> socket wrench >> it was impossible taskrabbit >> they could have done it for you. >> are they good at light lull bes? bulbs. >> they'll move boxes. set up a birthday party. any task >> if your valet calls in sick, will they do your tie? >> absolutely. this is like an on-demand valet for you. >> it is. >> yes >> how much are they paying? >> you bid -- >> for ikea? >> financial terms are not disclosed. you bid, by the way, on the task that's how this works. >> we have a really rich person with us. we can maybe talk about this -- >> good morning, dan >> good morning. this is early. >> are you not ready to spar >> i woke up 12 minutes ago. >> you are not ready to spar i withdraw the question, counselor. no, what happened to my -- >> you know, when you start -- >> my store wi is gony is gone s about my new pal, senator schumer. a public flap taking place over private planes and election meddling eamon javers has more on those stories. >> reporter: tom price coming under increasing fire now for his use of private jets while in government service price yesterday decided to respond to this by offering to reimburse the cost for his seat on the private jets that he took during the course of the year. he offered to pay exactly $51,887.31 to reimburse taxpayers for his travels. after that announcement came out last night, politico reported that it had found additional overseas flights from price that put the total bill for his travel over $1 million that's a significant discrepancy between what he's offering to pay and what the total cost of those flights were the question will be how many of those flights were authorized and approved, how many of those the white house continues to object to. the president has said he was disappointed in price, disappointed in the travel and let price know it. on fox news last night price defended himself here's what he said. >> i look forward to gaining -- regaining the trust that the american people -- some of the american people may have lost in the activities that i took and to not only regain the trust of the american people but gain the trust of the administration and the president. >> not clear that he'll be able to do that sarah huckabee sanders in the white house press briefing yesterday was asked about price. asked whether he would be fired by the president she said we'll see what happens. in washington f you', if you're cabinet secretary, that's not the answer you're looking for. meanwhile, a senator up on capitol hill very frustrated with twitter, which made its presentation to a closed door session of the senate intelligence committee yesterday. behind closed doors twitter presented about 200 accounts that they said had been linked to the russian influence campaign in the 2016 presidential election. that is a far lower number than independent researchers have produced in terms of what accounts were linked to the russian influence campaign mark warner, the top democrat on the intelligence committee frustrated with twitter's presentation >> the presentation that the twitter team made to the senate intel staff today was deeply disappointing. their response was frankly inadequate on almost every level. >> twitter will have another chance to talk to members of the committee. they have invited twitter, facebook and google to testify on november 1st. so this story is not over for those big tech giants. >> back to the airplanes for a half second. we have dan gilbert here while you were speaking, he asked a smart question i never thought of it. when you order a plane in government, i understand you can call up the military to get on a military jet, but to charter a plane, do you just call up a plane broker and then you actually put it on your expenses how does that work >> that's a good question. i'm a little bit out on a limb here i think the way this works, these are government-owned planes, you receive time on them based on whatever your travel destination is and your timing is so you go to andrews air force base or out to dulles in washington, and you would reserve time on those government planes >> who are they supposed to serve if not the government members? is it a difference between taking it for private travel versus -- >> right the difference is taking it for travel as seen as unnecessary. to go have lunch with your son, to go to a vacation destination, that sort of thing as opposed to going to an important meeting where you have no other way to get there. so they'll have to go through that politico report which says it's $1 million worth of travel you have to go through those trips and figure out if these trips were abusive >> last night, the report you mentioned on fox, brett said you went up to philly from d.c on the acela you could have -- so, there are times -- >> you will taxi longer than you'll be in the air >> i understand. then i think we don't -- you heard ceos -- actually they make good cases for why they have them maybe they don't need a boeing business jet, but if they're going to a bunch of small places where their company does business all around the country, and they hit five of them in a day, you can imagine you couldn't do that i don't know if anyone wants our cabinet members on coach waiting in those security lines, getting patted down. then i was thinking -- >> that's that distraditionally they've flown. if you could -- let's say government was really good at what they do let's say tom price went to somewhere and looked at a health exchange and said, you know, made the meeting on time and then said i found a way to cut 2$200 million in expenses, then he went to another one and another one. if you saw where they were actually effectively doing the work of health and human services, coming up with answers that saved hundreds of millions of dollars, you would say okay fine really they're just flying around, having dinner with their son, which is -- nothing gets done any way i understand i can see both if it was effective, i wouldn't have a problem with it. did you go to five places and really do some work, then it wouldn't be bad. you could make up for it in effectiveness. >> the question here is the frustration of the president because he campaigned on a drain the swamp slogan about ending sort of abusive waste and taxpayer money in washington this goes against that by public appearance so the president has been frustrated about this. he said he was frustrated about it the other question is we've seen the failure of the healthcare repeal and replace effort that the president championed this year a lot of that is on tom price. the president is frustrated with price on that any way. now this could be the straw that breaks the camel's back. a lot of times when the president fires people, it's on friday >> betsy devoss, a lot of dough, she pays for her own private travel is that right? >> yes, if you're paying for it yourself >> you know, she's doing it all on the work of the government what if she has a $5 million a year -- >> as long as she's paying -- >> not in terms of government. is that good that wex pekt h ex to use -- >> say you're entitled to a business class ticket from washington to your destination as a cabinet secretary, if you're also rich and decide for convenience, whatever -- >> it's up to you. >> it's up to you. >> dan, how did you get here today? >> i don't think the taxpayers have a problem with this >> i took cab -- >> no. the higher -- what's it called >> how did you get here from detroit? >> bicycled. >> here's the -- >> carbon zero -- >> ivanka came to detroit earlier this week commercial >> she went jetblue flying commercial >> that was impressive you can imagine the president hearing about this stuff >> yeah. right. thanks we'll talk we're moving on, andrew. you sort of killed the conversation by saying ivanka flew -- >>edy n edi think it's a great g >> that just dropped -- >> the 7:00 hour, i'll be better >> can't trash ivanka. that just died >> let's talk about the other huge issue people have been paying attention to. president trump and republican lawmakers are continuing to pitch their plan to overhaul the tax code today the president will address the national association of manufacturers later this morning. we'll have full coverage on cnbc let's get to our guest host, dan gilbert, majority owner of the 2016 champions cleveland cavaliers. let's talk about this tax reform bill >> sure. >> there's a whole fury surrounding it now, but what do you think based on what you have seen so far? what i read, they say it's reven revenue neutral, not based on dynamic scoring. you have to believe a bit in dynamic scoring. if prices are lower -- >> i don't know if everybody believes that. >> i don't know how they figured it out >> the question is how much do they rely on dynamic scoring >> did they say how much. >> unclear on that but it relies heavily. but a married couple making 50,000 or lower or a single person 25,000 or lower sending in a card, does not apply, d.n.a., what will that do? you have a 15% corporate tax rate and more important -- >> 20% >> 20% >> i thought corporate was the highest at 15% >> 20%, but willing to come down from there >> 15%, 20%. so then you have 2 trillion, 3 trillion overseas? 10% of that. you're bringing in 2$200 billion 3$300 billion in taxes. that's a lot of money for paying down debt or doing something with it. wealth is created, people forget that >> but the big wildcard i would think in your world is the mortgage interest deduction and the comment that gary cohn made yesterday saying that nobody buys a home based on the mortgage interest deduction. also what will happen when it comes to state and local and housing and the real estate market, which fuels so much of the quicken loans world. >> we have a big supply issue now. so the reason that the housing purchases are down, there's a couple of reasons. one of the biggest reasons is that supply is down. supply is down because you have 60 million new households since the mid '90s and the same amount of inventory in housing. 20 years of population growth and we have not gone up. think about that >> you think even if the tax code came through and the mortgage interest deduction went away, or if it was capped at some point, that wouldn't have an impact on the housing market? >> i will probably hear it from realtors and everywhere else, it's a nice thing to have. but what's the difference if you have lower rates or 50,000 and under and have no tacks. >> quicken loans guy doesn't care that's good. >> isn't it about the -- >> you're right. >> it's about the amount you pay. >> that was the argument for long it's the american dream you want to buy a home. you're saying the incentive doesn't need to be there >> the worse case is high rates, take away the deduction and rates creep back up. >> there's something this morning that lays out this argument that people are thinking, this tax cut, if it were to come, this is down the rabbit hole with some of this stuff. if this tax cut were to come so late in the cycle, it could become inflationary and the fed could potentially raise rates fast tore catch up with that i know that's six degrees of separation, but if that were the case, would that change your mind >> i don't think it would. if that's happening, that means that the housing market is do going and people are buying homes, they feel like they have to cool it off i've been hearing since the early '90s that interest rates will be skyrocketing probably normal to be this low, at least on short-term rates, but long-term rates, we're in the 5s for a good part of the last century so to me it's about the net number people get caught up on how you get there. they make their big political statements to me it's about what is the net percentage that the average american pays. >> there's an argument made that blue states are the ones that get soaked in this in large part because of the state and local deductions which may go away under a tax plan like this. a family making $75,000 in the state of new york will end up paying more rather than less >> the way i read it, $50,000 a year or lower, married couple zero so they'll only be paying on the 25,000 federal, right? they'll have less deduction for state taxes, that is on the 25 >> this is already not going anywhere you saw this, right? >> i did >> it's like they're already saying this won't woshgrk >> because so many people in the blue states won't go along with it. >> when you think about it n a high state tax, that almost overwhelms every other aspect of the whole plan >> what's the highest rate >> 35. >> over -- >> amt goes away you need to figure it out. we don't have all the details. >> you could take the stated and local away, you're creating this economic civil war t becomes a blue state versus red state story, will you have every blue state, which pays more into the government and takes less than the red state. it becomes a strange subsidy we had this with medicare, when you think of how the money flows it becomes very complicated. >> every state in the midwest thinks they pay more than they take out >> every individual thinks that they pay more in social security than they take out >> not true. >> it's not true >> the whole thing is lowering tax rates, does that rate economic growth and a better standard of living the biggest statistic that hurts housing and that people don't talk about enough is between 1999 and 2016 the middle class after tax or after inflation adjusted -- their incomes have not gone up. they've gone down 12, 14%. >> the buying powter has gone down >> it's a generation that's never happened in the history of this country. you have a 17, 18-year period of time where the average middle class wage earner's net after adjusted net income has gone down that's causing this whole red and blue thing >> the haves and have-nots >> not only are people not getting ahead, they're going south. >> dan is with us for the rest of the program we'll have him for all three hours. we have much more to talk to him about this morning thank you, dan. coming up, our what's working series continues next. we found something with mark ma hane mahaney, his top picks including one company that will take care of your four-legged friends. what is this? it's the new iphone, it's for our anniversary. our anniversary? it's thirty-four days since we first met. i didn't... get you anything. oh it's, it's fine 'cuz... i got myself one too. oh! from you, for me, happy anniversary. i love it. that is very thoughtful of you. thank you. get the amazing new iphone 8. and with all at&t unlimited plans, get hbo for life. less than $40 per line for four lines. only from at&t. want sure!ck? alright, looks like we've got chips, popcorn, pretzels? pretzels! plain, sourdough, spicy, sesame, honey mustard, chocolate covered, peanut butter filled, this one's in german, it says, "reindfleisch?" plain. great. so what are we gonna watch? oh! show me fall tv. check out the best of the best hand-picked fall shows on xfinity x1, online, and the xfinity stream app. thirsty? working in the tech sector we have to go to san francisco to find out. mark mahaney joins us. big onus on you. we need things working now and that will work in the future do you have some stuff for us that will work >> no guarantees sorry about that >> never are in life at all. so give me something that at least i can feel good about the chances for. >> let me do two things. first is our top picks we still like facebook despite the political controversy. expedia is the number two pick, and then netflix, in our minds that's a top three pick. we put out a report, a survey on online travel companies. priceline and expedia fall into that bucket of stocks that have worked well and can continue to work well. a lot of secular growth opportunity. strong position per the survey results for expedia in the u.s for priceline in europe, that's its home base. and now seeing more and more momentum for airbnb. it's something to keep an eye out for. >> becky has gotten very good at jumble, not as good as i am yet. but -- so he wants you to put -- get a p and an e in the f.a.n.g. stocks >> close to p.f.chang. >> that's good >> do you care that great executive at expedia is leaving or not >> let's see i thought that was -- we've written on this. i thought mark was an unusual cfo. he has been head of operations at the company he's been grouped to be the successor. it's not an issue for us we like the stock regardless of which of those two were the ceo. >> netflix, they have a lot going for them everybody wants to do that that means content will get more expensive. sooc sooner or later you can end up one of these companies being the networks, staying in last place. nbc never was, like an abc or cbs can be in last place for ten years. how do we know they don't get on a cold streak? >> there's fashion risks to it they do edge themselves. it's about 20% of their spend. they are rolling out two original content shows or series a week so they're throwing out a lot of singles, doubles, they'll get a home run in there. they had one or two of those in the past, like "orange is the new black. the advantage and the upside on a stock like netflix is how underappreciated the international opportunity is customer satisfaction scores are higher outside the u.s. than inside the u.s. for netflix. there's a basic truth here the most competitive market in the world for entertainment is the u.s. market. when you leave the u.s., the value is stronger. the market doesn't appreciate that this is much more of a global phenomenon that people realize. there's more upside to netflix as a stock than the market realizes >> i don't know whether you call it a pre-shock or what, but technology the last couple of weeks, getting a little dicey in the nasdaq you wonder you look macro like that or just too focused on the individual fundamentals >> mostly focused on the individual fundamentals. if growth is sustainable, the market will pay a premium for secular growth it has in the past it will in the future >> thanks. coming up, when we return, you have to see this stock x is a marketplace for collector items like sneakers, handbags the company's ceo will join us next this will not disappoint also a big dan gilbert project as we head into break a look at the s&p 500 winners and losers if you'd have told me three years ago... that we'd be downloading in seconds, what used to take... minutes. that guests would compliment our wifi. that we could video conference... and do it like that. 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(slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring) ♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. ♪ good morning u.s. equity futures at this hour are mixed it was mixed yesterday a little bit. kind of not a lot of movement, but september has not always been great i don't like it. it reminds me of going back to school none of us like that >> just miss the kids. >> now it's about kids remember the endless summer? goes too quickly >> i remember the endless school days >> yes >> like in "risky business" he's watching and the clock is actually ticking backwards >> did everybody have those analog clocks. >> yeah. >> they go slower. >> they move backwards >> school was good for you, dan. >> well -- >> it worked out >> i learned about conjunction junction >> we will talk about one of the many companies dan gilbert is involved in. stockx is a new data driven consumer marketplace the company builds itself as the first stock market for things by connecting buyers and serllers f goods. if you want a pair of yeezies go to stockx now. joining us is josh luber co-founder of sfoktockx. good morning to you. >> good evening. >> explain what stockx is for those uninitiated in terms of how it works >> sure. stockx, we call it a stock market of things the best way to think about this, a consumer marketplace think ebay but the way that we connect buyers and sellers is completely unique it's nothing like ebay or anywhere, but it's exactly like the stock market it's the same way the stock market connects buyers and sellers. fundamentally what that does is creates a single market price that both sides can transact immediately. buyers can buy, sellers can sell when they want to sell that's the unique part in in other e-commerce place can a seller sell at whatever fries they want. creating that level of transparency into a consumer marketplace, that's the big idea >> josh, one of the fascinating pieces is not only do you have the marketplace itself, but you're authenticating the product given how much counter good is out there. we were talking about yeezies earlier. if i was going sell a pair and you were going to buy, you have an army of people who will check before it gets mailed out to you. right? >> absolutely. if you buy a share of apple stock from the new york stock exchange, you never think you will get a fake share of stock we have that level of credibility into the marketplace. we have teams of people, all they do is authenticate products, sneakers, watches, handbags that passes through us in detroit, we authenticate it and ship it off to the buyer >> i know you're in tokyo, is there a lot of sneakerheads in tokyo? what are you doing in tokyo? do they allow backwards caps in tokyo? >> they let me into the studio wearing my has the yeah the sneaker marketplace is phenomenal here so is the handbag and watch market the luxury high demand goods market is similar all over the world. stockx will work just fine here as well. >> just for everybody's sake, the uniqueness of this the anonymity, visibility and authenticity, that's what drives stock markets. it's anonymous, and you get data you also get the item verified and you know you're buying an authentic item you don't have to go individually to the seller if you find a fake at stockx, do you replace it does the buyer know at that point? >> it doesn't matter to the buyer who sells them the goods there's a person selling you a share of apple stock, if you buy it on the stock exchange, you don't care who that is all you care is the price you pay for it that same level of credibility and trust in the market exists here you get a pair of yees sshgyeez are getting what you paid for. >> let's say i want to sell a pair of yeezies for $1,000, what's the mission you're taking same thing for handbags. is there different commission levels based on price? how does that work >> as an e-commerce marketplace similar structure to most other e-commerce marketplaces. we take 9% for sneakers, 11% for watches and bags that's similar to the competition out there. but none of those offer authentication none of those have the same level of transparency and data behind the marketplace so you can go on to stockx and see what every yeezie has traded for over the past year or two years. in some cases it looks like yahoo! finance or google finance, you can see historical pricing. >> josh, we want to thank you for joining us all the way from tokyo. we're glad they let you into the studio with your cap backwards we don't get enough guests with a cap backwards on the show. >> how many people come on this show the backwards cap on cnbc you think? annually it's a rare thing. >> it's rare, unique >> probably not zero >> one a year? >> probably. sounds about right see? you made your moment when we come back, much more from dan gilbert we will talk about the top suppo sports stories and next week, we will be live in omaha with warren buffett, that's on tuesday mearting at 8:00 a.m. eastern stay tuned, you're watching "squawk box" on cnbc welcome back an update on the devastation in puerto rico. cash is king in a country that is operating with limited infrastructure and no power. contessa brewer joins us with more on this good morning >> reporter: working atms around here are getting a workout this is the first time i've not seen a long line at this atm this might be the reason why there is no power here this morning. it's not dispensing catch. down the block, the santander atm was damaged in the storm the cvs pharmacy is open, but they don't dispense cash neither does the walgreens across the street but both stores accept credit that's a rarity right now. steve mnuchin said yesterday we've been very involved figuring out how we can get major amounts of cash to puerto rico i can tell you we've made two giant cash shipments he said if people have money in the bank, they have to be prepared to wait in long lines people yesterday waited for 15 hours for a fuel delivery truck to get gas to the station. those involved in recovery and first responders got first dibs, including a funeral director who said his hearst and his generators were empty. law enforcement guards the station now and the fuel delivery trucks. the fbi is guarding the fuel depots gas is in such high demand when puerto ricans can find a station with generators, fuel to pump, they usually need cash to pay for it if they can find a place to buy food and water they need cash. the acting secretary of homeland security comes here today. fema will be holding a news conference we will dive into the federal response to recovery efforts here and how do they make sure people have access to the gas and cash they need to keep moving forward >> you lived in a lot of these situations, i think back to sandy when you covered it and were personally affected by it how do you compare puerto rico to situations you've seen in the past >> i was in louisiana after katrina. and i have to tell you, in this little pocket, you're starting to see a little bit of sense of normalcy people sitting outside as soon as you leave the center of commerce in san juan, it all breaks down. there is very spotty cell phone service. we saw long lines of people on the side of roads just because that's where they could use their cell phones to get in such with loved ones. this is an island of 3.5 million people most of whom have no power no reliable access to cell phone service. half of the island doesn't have running water. this is a massive, massive problem. when people here ask me, i don't have a good answer to them why they're not getting more access to aid in the way that we saw after harvey and irma just recently >> i was listening yesterday to the former lieutenant general who had run things after katrina, he was responsible for the defense department's efforts there. he said it sounded like it had been a slow start here he thinks things have improved in the last 24, 48 hours, and it's difficult there's 1200 miles of water between the mainland and there i'm sure that's of little comfort to people there. does it seem like things are starting to improve just in the last 24 hours or so or no? >> yes, absolutely we did this story from the ports today. the big front page picture on the newspaper is they'll make the ports the priority that's great news. we saw some improvement from 4% movement of those cargo containers off the port to 20% yesterday. that's good news people here say why isn't general honore down here if he could handle katrina, maybe he can handle puerto rico as well. maria has devastated this island and things will not get back to normal for a very, very long time >> contessa, thank you very much we'll check back in with you late their morning coming up, the ipo market surging. we have new data about the performance of public offeroffes and some still in the pipeline let's check european mke wartse are in the green across the board. 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(child giggles) symbicort. breathe better starting within 5 minutes. get symbicort free for up to one year. visit saveonsymbicort.com today to learn more. ...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour. with gocentral from godaddy. welcome back to "squawk box. a stellar debut for streaming device maker roku. we just had the coo yesterday. the stock rose 60% closing share price of $23.50. market cap of about $2.2 billion. now out with its quarterly ipo report, there's growth in the pipeline 2018 could bring interesting changes, particularly when it comes to the unicorn companies joining us right now to talk about it is jackie kelly, the ipo market leader at e and y when you see a stock jump 67% or 7%, do you say that's success or did somebody miss the boat in terms of pricing this thing? >> i think a lot of people are very excited that it's post-labor day, and we have some unicorns coming out. there's a lot of momentum behind that right now >> do you -- if you are roku, do you say i left a lot of money on the table in terms of cash i could have raised? >> this is a long-term journey, right? the prices of stocks that debut, they're moving around with the markets, but we're going to have to watch this one closely for sure >> do you think there's a shift coming we talk about the pipeline are we finally about to be at the tipping point where all these unicorns in the valley are going to go public, or are they still going to be private as long as humanly possible >> valuation will play into this for sure, but most of them have been working on this public company readiness activities now for quite a while. actually, some of them probably two or three years because the company has been maturing. i think many of them are looking at maybe an initial filing in this quarter maybe first of next year you don't think the ipo model is broken he goes public and says i'm going to do all the hard work, and then i'll have -- back in to somebody else who is private >> there's been a lot of disruptive activity right now in the sort of how companies try to go public or raise funds i mean, we've seen a huge growth in the private markets over the last few years money is coming in from a lot of different sources. that said, i think we're still -- we're the strongest capital markets in the world our public markets are fantastic, and, you know, there's still a lot of momentum there. >> have you filed -- tumoth is a warriors guy >> i will unfollow him now i have a question, in the old days -- i don't know what the old days were. maybe last 2000 or the last century. you go public because you want to maybe give your stockholders or stock option holders, you know, liquidity. right? that's one you have raised capital for the company. or you could use your stock as currency, right? are we having companies go public today because there's such a flood of venture capital, private equity, and the only reason really or the leading reason is to get them out? doesn't that change some of the equation a little bit. >> there's been a big driver of that most of our deals in the u.s. at least recently have been pe and vc backed deals, and it's liquidity for investors. it's a slow growth it's not like these guys are out in the first round this is something that's going to happen over a long period of time a lot of these look at these investments as long-term investments. >> the primary reasons -- if i were to ask you off the street, if i had a company that came in and said why should i go public, we had the amount of capital we needed >> they want to be able to offer incentives to employees. you want to be able to have something that's liquid. this is a big challenge right now. >> because it's difficult to find employees in this environment? >> well, in certain sectors like technology you're competing for talent. it's not just -- you're competing in business in general. you're actually competing for the best talent out there. having that sort of liquid currency essentially for your employees is really, really important. it's branding. it's reputation too. >> we just set up a program because we have -- in the quicken family company there's close to 20,000 people we're not public we have several -- >> you need to work on that. >> we address that program by putting a share price every quarter now for if there's option holders who can go ahead and exchange it and almost like the stock price of the inside, right? now, that doesn't get you quite the public margin, but is it worth it >> you don't want to be a public company. >> that's what i was trying to ask. why would you in today's world we were public for eight months. that was before all this what's the act called? do dodd frank >> we're going to be with dan for the 7:00 and 8:00 hour we want to thank you that's it. that's a continuing discussion for us thank you. >> many more with dan. thank you. much more with our guest host, dan gilbert, including his take on this week's top headlines in sports from it nfl protests to this ncaa basketball bribery scandal. later we're going to talk tax reform tax reform or give me death. congressman patrick mchenry. "squawk box" will be right back. think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov >> stocks in a mixed open as traders gear up for the final trading day of the quarter what's in store for the fourth quarter? we'll break out your year-end playbook straight ahead. the winners and losers of tax reform, former pennsylvania governor ed rendell joins guest host dan gilbert to talk about the framework that has corporate america buzzing. and the motorcity trying to win over amazon. mayor mike duggan tells us why jeff bezos should call detroit his second home as the second hour of "squawk box" begins right now. ♪ i'm in love ♪ monday, could you >> live from the beating heart of business, new york city this is "squawk box." ♪ thursday doesn't even start >> good morning. welcome back to "squawk box" on cnbc we're live at the nasdaq market site times conveysquare i'm andrew ross sorkin along with becky quick she's back from jury duty. joe kernan is also here. dow looks like it would open 11 points down. s&p open right now would be off, well, half a point the nasdaq off -- rather, up in somewhat of a big way, we should say, close to 11.5 points. a couple of things making headlines. cruise ships joining the effort to help residents leave the hurricane-ravaged island thousands lined up yesterday to board a royal caribbean ship which brought relief supplies to puerto rico and is transporting evacuees to fort lauderdale. many of the evacuees said they had no plans to return to puerto rico also, volkswagen setting aside an additional $3 billion for expenses related to that emissions scandal. that's in addition to the roughly $24 billion it has already spent. the extra cost relates to fixes for certain vehicles that are more technically complex and more time-consuming that be had been anticipated another data breach in the news. this one relatively small, but nonetheless, it affects shoppers at amazon's popular whole foods unit the grocer says that payment information has been stolen from some restaurants and other venues located within some whole foods stores the breach however did not affect the paying system at whole foods registers or at amazon itself. you can probably -- i know you can. you can go to whole foods website and find out more about it if you are worried about it >> we have a if you stocks to watch as well. starbucks is closing all of its on-line stores this weekend. starting on sunday the company will sell all of its on-line merchandise through amazon and other third party vendors. tyson foods shares getting a pop after the company upped its guidance for the year. tyson also announcing 450 job cuts the company says most of those cuts will happen at its corporate offices. you can see the stock up by 6% >> get back to our guest host this morning quicken loans founder and cleveland cavaliers majority owner dan gilbert. a couple of big stories in the past couple of weeks, obviously. they take a knee movement in the nfl. let's just start because you're the cavs owner with what we saw in ncaa. how much of that did you assume was business as usual and how much of it surprised you or did any of it surprise you >> you always hear whispers. i've heard whispers for 15 years. we've owned the team 12 years, but even when my kids were little playing aau basketball you hear things. i never saw it, and i never knew it was actually true for sure. no one is going toed amitt it, right? plus, the amount of it and how wide it went according to what you are reading and stuff, but am i surprised not totally surprised. >> i'm just trying to get an overall number if you just add in, you know, nba teams, what it's worth, and what you can finally make and what the value of those teams are, then you add in -- we saw that ohio state football is worth $1.5 billion texas football is putting a normal valuation on expenses versus revenue, and then you do that with final four and march madness and adidas and sponsors. does it hit $1 trillion? >> i don't know about that >> billions and billions of dollars. should we be surprised that none of it works without the athletes and without -- and a good coach. why is patino thought to be a great -- hook or crook, no matter what it takes, we're going to bring them in here? >> i think it's both you have to run a great program. bring in the talent. obviously if you are doing it legally, there's going to be something. the ncaa has always -- when they find out, when they really get the evidence -- >> you sure? >> it seems that way to me >> ncaa likes great teams too. you don't think alumni of louisville or wherever -- you don't think they want good teams every year >> there's a natural check in that, right? you have the other alumni, the other competing teams who naturally would want to not have that happen there, right nor would louisville -- i don't know how to say it >> if you bend the rules and you end up winning for five years or so, you're going to get rewarded for bending the rules. >> lance armstrong did that, but, you know, they can take it away, right? >> yeah, they can. i just -- i don't know how you fix it, though, because the motivation is always going to be there. so much money is involved. do you pay athletes? i don't know how you do it >> there certainly is a case for it they're at least allowing them -- the thing i never understood is why not allow them to make -- if they want to do a sponsorship or somebody wants to do a commercial, whatever, to me, you know, they have earned the right to do that another kid could do that who is not playing sports for some reason you want to go to the kid who is the smartest kid and put them on a commercial for something. he happens to go to harvard or was it cornell or, you know, m. i.t. or rutgers. >> there you go. >> did i get that right? >> you did >> you went around the horn and got it right >> that's grad school. >> biology cellular biology >> colorado undergrad, i think majored in bongs >> that's never been said on this show probably either. >> let's say your game is coming up cavs come to you and say we're all united now we're all going to kneel what do you say? >> well, first of all, we had a big meeting about this at the nba and the nba's board of governors yesterday, and i think adam silver has deny a great job overall. >> silver changed his tune, didn't he? he said we want everyone standing, didn't he? >> there's been a rule on the books for a long period of time about that >> like the nfl. >> yeah. i am not that familiar with what the nfl's actual rules were. >> we have to get ahead of them. >> they were like a deer in the headlights with that >> you know, we had the luxury -- the nba had the luxury of learning. i think the nba players and the league itself, i think -- i can't speak for the other leagues. i'm not in them. i think the relationship is really good. the labor negotiations went very well and cooperative there's just a closer type of -- >> it has to do with the relationship with the national anthem and the flag, not the owners >> at least you're talking to each other and talking through the issues, and we're talking -- >> when you say, fine, do what you got to do? >> we're talking about how do we work with the union and the players to find other ways to express their thoughts >> the latest thing trump said is the owners are afraid of the players. >> on the nfl side >> well, yeah. i don't know if it would be different on the nba side. >> i can't speak -- >> did you take down lebron? did you say anything to lebron about the bum comment? >> we didn't have any specific discussions about that, but, you know, look, you got rhetoric on both sides emotions on both sides of this thing. you know what, it's just -- to me it's about allowing people to talk and getting together and try to -- if they're -- some of the issues -- forget the methods of protest, but there's some legitimate issues and real legitimate things. ever see voice mails after lebr lebron tweeted that? they were some of the most vial, disgusting -- >> lebron didn't say it until the president -- >> there's an element have racism that i didn't even know existed. when i got those voice mails, i saved them >> people that were angry about what lebron said >> i didn't tell lebron this, but now he is going to know. some of the most disgusting things i've ever heard people say, and you could hear it in their voice. >> a lot of hurt on both sides >> racism. it wasn't even about the issue that's what really got me because it was -- they went to who they really are, some of them >> let's ask as an owner, you basically don't want to alienate anybody who wants to show up and enjoy the games it that's what we see playing out in the nfl right now trying to find a way to not alienate either side is that the calculus that is taking place >> this is a big, big issue in sports you're exactly right i mean, owners and i think players, it's in everybody's best interest to talk. that's the thing there's -- get around a table and talk and take some steps together to try to, you know accident solve things, make feel feel good. make it feel like it's a partnership. >> you heard the president tweet at stephan curry and say he is disinvited as an owner if you had been the champion this year and someone on the team had been told that they couldn't come or wasn't invited, even if they were on the fence themselves or maybe thinking, what was your reaction to that >> i don't think the president does himself or anybody much good on that kind of thing about disinviting. i think there are certain things you got to rise above that, right? >> all of steph's supporters said you can't disinvite someone who wasn't going to attend anyway they weren't going to go anyway. >> you defending the president's tweet? >> i'm not defending let me tell the whole story. >> story was he was on the fence. he probably -- >> he probably wasn't on the fence. he was not going >> the stuff he had been tweeting said that i'm not sure i want -- >> everyone said you can't disinvite somebody when -- >> i think that was lebron's tweet. you can't skew the story >> the bum thing was -- >> the bomb followed son of a bitch. >> was it appropriate for the president to write -- >> i didn't write. talk to dan. he is the guest. >> these are deep issues, cultural divides, and sports has always been the place that people go to escape in the past. >> that's right. >> it's kind of strange to see it all get politicized and play out, and i guess how are the leagues dealing with this? >> at one point -- one, you could take that by looking at that sort of wholistically, but there are all kinds of examples in sports. mohammed ali, jackie robinson. >> sure. >> the boston celtics when they were with their big -- >> the olympics. >> there's been going for a long, long time. what's unprecedented is during the anthem type of thing, although in the olympics -- >> same situation in the olympics >> in all of those instances, the press -- i look at you because in all those instances the president at that time, lyndon johnson -- i said it before, and i'll say it again, was silent silent on these things >> they had a hard time tweet being in 1965. >> they had microphones and interviews and other ways to do it, and all i'm suggesting is when you talk about rising above a lot of these things, we are in a very different culture right now in terms of what the administration looks like. >> so you are saying that trump is different than other presidents >> i am. good point >> i think that all presidents -- i think the last president, president obama, had a chance also to pull people together he didn't either >> he didn't do it either. >> it was calling the cops stupid in cambridge. it was in the texas situation, i don't remember -- there were a lot of opportunities where that rhetoric didncould have come ou. >> i don't know if it's a democrat or republican thing >> he can't help it, though. >> they're the president of everybody, and they should bring people together, whoever they are. that's my view >> he would probably say that the reason he did it, all the deplorables have felt as if there is no one there to fight back for for how long at this point, and that's what got him there. that's whoo got him the nomination that's what got him elected. it's been working for him, and he is going to continue. he is not going to to change >> dan makes an interesting point, though, and what's really underlying the cause for this, and it's economic. if you go back to the reason between the have's and have-not's we talked about it on camera and also off camera. what do you think are the biggest issues >> i don't know the exact number i think it was off camera that if you look from 1999 to 2016 -- 17 years -- middle class bajz in the united states adjusted for inflation are down 12% or 14%. somewhere in there that's unprecedented in the american history and in the 1930 sz and even in the depression. we have a whole generation -- almost a generation later in real dollars making less money america has always grown wages have grown why did this happen? it's probably because of this massive transformation from a muscle to a brain economy. some of the things we've been talking about, and i think the best thing in the united states that we can do is to train in technology and information systems type of jobs and skills to people who otherwise normally wouldn't go in those fields. we have examples of -- we have a couple of people who dropped out of detroit public schools and taught themselves how to develop applications or apps they're making -- they're, like, 19, 20ers y years old and a dro making $100,000 a year or close to that. i was asking our technology team the other day. how long would it take to take a reasonably sort of energized person who has some reasonable intelligence to code teach them from scratch. they said 90 days you could train somebody if they were dedicated to be contributing where. >> apprenticeship type of. >> we're training -- >> to fix thisproblem, is this simply an issue of we just need more growth in this country and, therefore, it's all going to flow to the right people, or is there something else at play when it comes to the disruption issue? >> i think it's both what's crazy, what's ironic, if you look at any big city in america, you have these huge job openings, huge number of job openings, and then you have these unemployed people. >> if we do the training right, you can get half those people into jobs that are open right now. it can happen. we just have to get it done. >> he still talks to bannon. the way it's turning out, what are the poeltz -- you mentioned the poll about who thinks we should stands. the polls are most -- he knew most americans probably don't want the national anthem -- they don't probably want people kneeling or sitting down for the national anthem. the way it's turning out, it provided political fodder for him. the denver broncos are going to stand now. last night the green bay packers all stood. i mean, it's almost as if -- >> i know. i believe that -- >> i don't know. >> i think he probably has thought about it before. i don't think it was totally -- i'm not sure >> i think it's identity politics, and that's the thing we're all trying to get away from and we would like to get away from, right in a perfect world >> the democratic party is the king of identity politics at this point everybody is -- i mean, look at every -- >> watch what goes on the floor of the house now am i hearing you right >> i'm saying if we can get -- >> you don't want it >> i would like to get away from it >> good. you're on the record i'll remember. i am too >> congrats. >> a lot more with dan gilbert in just a moment when we come back we'll talk tax reform front and center in washington and on wall street former pennsylvania governor ed rendell will join us right after the break, and then at 7:45 this morning detroit's bid for amazon's hq2 the city's mayor will join us to talk about that and then at 8:00 eastern time financial services committee vice chair patrick mchenry will join us to talk taxes and more stay tuned welcome to "squawk box" right here on cnbc it can detect a threat using ai, and respond 60 times faster. it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it is... the cloud. the ibm cloud. the cloud that's built for your business. designed for your data. secure to the core. the ibm cloud is the cloud for enterprise. yours. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. they save us from gettingones? lost, getting hungry, and getting tired of places like this. phones changed everything - shouldn't the way pay for them change too? introducing xfinity mobile. where you can pay for data by the gig, and share it across all of your lines. no one else lets you do that. see how much you can save when you pay by the gig. xfinity mobile. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. >> speaker paul ryan telling "squawk box" that he believes democrats will get on board with the republican tax plan. >> we actually have a lot of friends on this side of the aisle, and we have constant conversation with them, and there are some moderates left. i would say they like what we're doing. >> joining us right now is former pennsylvania governor ed rendell. of course, our guest host today, dan gilbert, is still with us as well governor, thank you very much for joining us today >> my pleasure i have a message for dan when you are deciding those schools above the scandal, i was hoping you would mention my alma mater penn, but our reputation has been taking a battering lately because of our most famous graduate. >> oh. >> i was thinking about benjamin franklin the founder. >> no. almost famous relatively recent graduate for president >> has it come to that do you think that penn at this point doesn't want to talk about president trump having been gone to the school? >> president trump deleted all of the e-mails he sent out for the losing candidate in alabama. i think if pen had a choice -- i'm not speaking for it, but i think if they had their choice, they would delete his diploma. >> the president said that he was going to make that -- there's nothing in it for wealthy people it's all middle class miracle. the alternative minimum tax. he made $58 million. paid $26 million in taxes. everyone said he paid his fair share. if we didn't have the alternative minimum tax, he would have pay $3 million in taxes. less than 6% on an average rate. there's too much in it -- elimination of the estate tax that benefits 540 families and costs the taxpayers $54 billion. there's too much of that stuff in it. it's too weighted towards the top, and then you have the second problem they should be getting rid of a lot of the exemptions. when you get rid of a lot of the exemptions, it makes it a loser for most middle class taxpayers, in states like new york, california, illinois, new jersey i could go on and on >> which deductions are are you talking about? it is state deduction of income tax? are you also talking about mortgage >> state deduction of income tax. in those states, how can a republican vote for a democrat when you eliminate that state deduction, and it doesn't matter how much of a cut you're going to get those folks will come out of new york and new jersey as losers. >> i understand what you are saying it probably will benefit the president, but both of those issues, the estate tax and the ant, for years republicans have been talking about ways of getting -- that nobody liked the amt and the way it worked and estate tax is philosophically a lot of people have wanted to get rid of those -- get rid of that for a long time. now when trump gets elected, suddenly republicans are supposed to abandon both of those things they've been wanting to do for a long time just because it would benefit him? that doesn't make sense either he has to be sitting in the seat where it's going to will, and he might benefit, but these are long-standing republican sort of goals. >> i'll just use the president as an example. >> i know. >> there are thousands and thousands of rich people >> right >> the estate tax, it benefits 540 families >> right >> that's the only people who would benefit by the elet me nation of the estate tax >> republicans will be mad if the high of had end, like that 39.6 or something. we see there might be a surcharge on high earners. that's normally where you would say this is going to benefit the rich we're going to say pass-throughs are going to benefit the rich because it benefits corporations ceos are going, they're rich and they're going to benefit they're not doing -- they're not cutting -- you're not cutting the tax rate down to 35 and taking away deductions people in the high brackets are going to pay more most michael >> you know the devil is in the details. the devil is in the details. let's see what exemptions they're cutting out. let's see what's in, what's not in first of all, i think it's zlo states like new york with a 10% deduction going by the wayside >> that's 10% deduction by the wayside. that's 3.5% less or more than overall. you take 35. that means a net rate of 38.5% what do they pay now 35%, 37? i don't know >> what about the mortgage deduction? if the middle class loses that, that significantly change things >> it's not about the mortgage deductions it's about what the net rate is, right? you don't want to have a deduction and pay higher tax rate you want to have the lowest -- >> and, governor, we should point out dan did say at the top of the 6:00 a.m. hour that even though he is the founder of quicken loans, that he would be okay with them getting rid of the mortgage deduction >> if the net rates -- >> if the net rates came down. right. >> if you get the net rates down for the middle class and you generate more revenue to the government, everybody has focused on what happens at the top. ed, what does the top 1% ofu.s taxpayers pay of all federal taxes, 1% of overall >> not their fair share. >> wait a minute >> the devil is in the details >> ed, 40% to 45% of all federal revenue is paid by the top 1%. >> they don't pay percentage-wise. they don't pay percentage-wise what a secretary pays. look, you talk about the rate, dan. you know that the rate is -- the stated rate isn't what's at play corporations, everyone says we have the highest corporate tax rate in america. i remember when "fortune" did a review of the top 2,000 companies in america and see what they actually paid. the effective rate was half. 17%. >> because they move everything off shore to other countries, and they wleblend the tax rates, and it comes to 17 we don't want them to move off shore anymore, governor. >> that's only one part of why they do it plenty of companies get total tax expenditures, total exemptions, total credits, things like that look, the devil is in the details. let's look at it let's not rush to judgment our side shouldn't rush to judgment, and speaker ryan shouldn't rush to judgment let's see, and let's see if we can work it out. i think we're missing a golden opportunity, and i talked about this, i guess, two weeks ago on the show i think we should do infrastructure at the same time we're doing tax reform if we're going to take that off shore money and bring it back at a significantly lower rate, 1 00% of that -- and tim cook of apple has endorsed this idea 100% of it should go to rebuilding this nation's infrastructure without infrastructure, we are nothing. >> i gra 100% agree with that it's a no-brainer. you bring $2 trillion or $3 trillion over and you put it into infrastructure that this country needs. >> we will end on a point of agreement. thank you for joining us >> we love the university of pennsylvania, ed didn't you go to villanova >> i went to penn undergrad and villanova law. >> coming up, small psitca hting record highs investors betting the sector will benefit from the tax reform we'll be right back. don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii! you might have less coverage than you think. visit aflac.com and keep your lifestyle healthy. aflac! for tech advice. dell small business advisor with one phone call, i get products that suit my needs and i get back to business. ♪ not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. 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 that are front and center this morning, the government will be out with its august look at personal income and spending in just about an hour's time. economists think that income is probably rose by .2% and that spending increased by .1%. roku looks set to add to its first-day gains. the maker of a -- had a successful day on wall street yesterday finishing the day at $23.50 after seeing the ipo priced at $14. apple is seeing a sizable jump in national security related requests for information from the government apple says it received about 13,500 requests like this during the first half of the year it was more than four times as many as it got during the same period in 2016 >> i'll go to jim first. >> well, not too much, andrew. i think it's always kind of been out there that that could become a positive, and until just recently, i don't think there was much embedded in the market for it i think they've given up hope on it now, of course, it also has some down side risk if it stalls or fails or stretches out it helps small cap stocks probably more than large not only because small companies have more domestically downsized sales and they have a bigger impact small companies have narrower margins. cost reduction is a bigger deal. they have greater leverage to drop in costs. i think both of those probably if they continue down the path of actual passage, will benefit small caps much more than large. >> what's the algarhythm say these days >> i think that jim is spot on with that. the small caps benefit i think strategically the big picture is much more important secular bull markets have three legs the first leg ended in may of 2015 we went through the consolidation where the market was going to crash the economy was going to wrash all it was was an upside consolidation. we started the second leg of the bull market in february of 2016 when royal bank of scotland said to sell everything the second leg is usually the longest and the strongest driven by earnings, and we've been talking to you for the past year and a half about the transition from an interest rate driven to an earnings driven secular bull market >> i am, andrew. i think that -- i think it's a ways off, and to me i agree with jeff i think this thing is going higher until you put some brake in front of it or hurdle we've got no rate pressures at the moment dollars coming down. earnings are good. there's no inflation or cost push pressures ultimately, that's going to have to show up to cause a correction >> the baltic freight is way up internationally. you look at embedded inflation expectations in the ten-year treasury tips. they're rising again here in recent months. look at the outperformance recently of material stocks, of energy stocks, of small caps, of industrials. all of those suggest that there's a change afoot of the marketplace starting to reflect a move towards overheat conditions to some degree, and inflation. i do think it's coming it's just like everything else in this recovery it's under women iwhelming >> dan gilbert is here >> all i've been hearing for the last 35 is inflation is coming inflation is coming. sort of like winter is coming. it never comes, and maybe that's because we've berd sort of an era of technology catching up and supply very quibble to demand i mean, look at commodity prices compared to where they were five years ago, ten years ago, 20 years ago. they're really much different. oil is lower most i think commodities overall are lower. >> winter does always come in -- >> detroit as well i know what you are talking about. >> for now dan, i'm not looking -- when people talk about inflation, i'm not looking for return to run-away inflation like the 1970s or anything even close to that the situation is that inflation has been so low and so stable for so long that we've given birth to a whole generation that would be shocked if we had a 3% to 4% inflation rate it would cause a lot of change in the bond and stock market pricing of securities just to have wage and core inflation rise above 3%. that's all i'm talking about i'm talking about finally moving from 2-ish to 3-ish. the problem is for the financial markets after a quarter century of 2-ish, they would have to change the pricing of the ten-year bond yield, the earnings of the stock market, of different, you know, bond surrogates, different from inflation beneficiaries. my point isn't that we're going to have run-away inflation my point is a little inflation will have a lot of impact. >> okay. jim and jeff, thank you. they're playing us out the music is going we appreciate your perspective this morning coming up, detroit mayor mike duggan on the city's bid to win over amazon's second headquarters what it would mean for jobs in the motorcity. that's next. zblienks at the top of the hour financial services committee vice chair patrick mchenry will join us. quk x"ilbeig bk."sawbo wl rhtac i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪ ...has grown into an enterprise. that's why i switched to the spark cash card from capital one. now, i'm earning unlimited 2% cash back on every purchase i make. everything. what's in your wallet? did you hear directv's latest deal? it's cheap and gets you all the 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tripadvisor. the latest reviews. the lowest prices. and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we print the shipping ll everything's pretty much done. it's so much easier so now, we're ready, bring on t. shipstation. the number one ch of online sellers. go to shipstation.com/tv and get two months free. >> that is a new ad we're watching right now trying to lure amazon to detroit amazon scanning the country right now for a spot to open a second headquarters. it's called hq2. detroit is among the fierce competitors. it's also the home of our guest host this morning dan gilbert. joining us right now for more on why the motorcity is a prime candidate for amazon is detroit's mayor mike duggan. mr. mayor, thank you for being here today >> thanks for having me. >> hey, nice suit. dan said that pass that on to you. >> i knew that >> you knew it was coming from him. >> mr. mayor, thanks for being here today this is a big deal trying to lure amazon into your hometown what's happening why do you think detroit should be the town? >> well, i was born here, and i have been here my whole life, and i have never seen anything like what's happening. it's hard to believe that three years ago we were in bankruptcy, but we restructured our balance sheet. we shed our debt, and we put the money in to police and fire and parks and services and the results in the last few years have been unbelievable cranes and businesses moving in at unbelievable rates. in a few weeks the detroit pistons are going to come back down and play in detroit at the new little ceasar's arena and be the first time in 40 years that we have all four professional sports teams in the city and just a couple of weeks ago your guest host there announced $2 billion in new high rooiz construction that will be starting in the next year. it's a really exciting time to be in detroit. >> there are a lot of towns that have been raising their hands. some of the people who are handicapping chances look at someplace like a boston and say, okay, it's on the opposite coast. it would make sense to be on the opposite coast it has a lot of colleges that are right there. it would be a great place for them to be luring talent where, what do you say to kind of fight back against what some of -- some other towns are touting as their strengths. >> there's no strength we have competition and great cities, but if you look at the vision that amazon has outlined building a headquarters woven into an urban area and then you look at what's happened here in the last years, dan gilbert and quicken have probably brought 12,000 to 15,000 employees down here over the last four or five years, filling an office building, weaving an integrated community. if anybody wants to see how to do it, you could come here, and the thing about detroit is because we lost so many people in the 1970s, the 1980s, the 1990s, there's plenty of room to build eight million square feet of new office space, which is the ultimate goal and weave it into the downtown. of course, we've got wayne state university we've got the university of michigan we've got michigan state i think you'll find that the university of michigan is one of the leading suppliers of nba's to amazon out in seattle today >> dan, we were just talking off camera about one of the things you pointed out, and that's the proximity to canada and what that might mean. >> you have two countries right there. one of our major points that amazon is going to be, you could be the first company in u.s. and canada for sure that puts their second headquarters or headquarters on an international border >> when it comes to one of the best supply chain cools in the world, university of michigan, want only do they hire the most mba's, but it's the -- wayne state also great university. all through ontario they have huge education and technology universities or parts of their universities that are pushing out a lot of those if there's ever an immigration issue, they have hedged it because they have plenty of space in windsor and detroit has got not only some prime pieces of land that we have under control here between the city and us, but we can build -- plans are done, and we also did move amazon in immediately >> build to order. >> build to order. while we're building to order, they can put in their first few million. we'll take people that aren't in buildings and put them somewhere temporarily to get them in there. >> a lot of those businesses are detroiters at the top. mary borrow was there for 36 years and worked her way up from the very bottom. you p, there's -- it's -- there's a lot of advantages for them to come >> do you have any sense of what you think amazon really wants? >> well, i think they pretty much say it. i don't think there's any secret they care deeply about the education and the work rs for. they can't hire enough i think even now people who have the kind of -- we were talking about this earlier you know, the governor is looking at all kinds of programs to help move that up quickly, and, again, i cannot stress enough how great ontario is in technology and software too. there's that, and then they want to have opportunity for business there's incentive type of things, and we're looking at it from the other side as well. >> let's talk about that the people who have drit sized this, it's hard to criticize creating new jobs. people who have criticized it say that municipalities are going to have to try to lure amazon you have to say we will give you the best tax breaks and give you x, y, and zpl. what kind of proposal could you put together, and it will make sense -- if you put together the package that will offer them a lot of incentives? >> well, with the help of dan gilbert and a number of others, about six months ago the michigan lenl tour passed an incentive package, which is leading to several billion dollars of investment in the city right now if that had to be tweaked, i think the legislature would be willing to do it, but i think our tax package will be competitive. >> that tax package is something like 12% comes from tax receipts given up by the municipality or the state. >> it's mostly the state that's the agreement that we worked out it's making high-rise buildings work financially where the rents are at a point where they otherwise wouldn't have been possible >> let's explain that. it costs about the same amount of money to build a new building in detroit than it would in chicago, but the building won't be able to charge the same rent because detroit has not made the full recovery yet, is that it? >> that's it five years ago there were huge numbers of vacant office buildings. dan and a number of others filled them up, and we got to the point now where we need to builds high rooizs, and all we've been seeing is six and eight-story stick built buildings because the rents wouldn't support the expense of the structural steel with this package that passed in july, we're seeing lots of action on 3r5, 40, even a 70-story building, and that's why we believe the tools are in place that are readily adaptable to the amazon proposal >> mayor duggan, thank you for your time today. we appreciate your joining us and let us know how this goes. >> thank you >> see you, mayor. >> coming up, we have a lot more from dan gilbert after the break. then, later, the president tweegt earlier this week about puerto reek yoes ae infrastructure and saying it must be dealt with we're getting a lord from the la a tki autisndndalngbo the island's financial futures squawk returns in just a moment. it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're 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witness katy perry firework. witness katy perry swish. witness katy perry... aaaaaaw look at that dog! katy perry: with music videos and behind the scenes footage, xfinity lets you witness all things me. >> let's get to dan gilbert. in terms of where detroit is right now, it's sort of a remarkable thing having just been there let's say am zbron doesn't happen, which i don't think was even in the cards. >> no. >>. >> whae i tell you, the 60 years of what you heard will never -- i'll never overcome it unless you come and see it. you have to see it for yourself. >> it was amazing. every person i talked to from the people at the airport to the driver, i was there for a day. to the people at the college that i was at. everyone along the line said how amazing the changes have been and all talked about mayor duggan i didn't know if he was a democrat or republican because everybody from every walk of life loved him >> the opposite of the other story we were talking about, and, again, whether you are democrat or republican, white or black, about the ut fact that an african-american -- 82% or 85% african-american city elects a white mayor against a very good, viable opponent who was african-american just shows a lot to me about america and what -- it doesn't matter which side >> they want somebody who is going to get stuff done. >> that's the thing. at the end of the day when people voted obama in twice, the majority -- i mean, those are the good things to me. it doesn't matter which side you're on because people for the most part go with who they think can do the job and get it done i think that detroit overall -- you have to see it i just advise everybody in business or not, now they're coming from everywhere investors as well as companies i mean, we just -- microsoft is coming downtown after being in the suburbs. regional office for 30 years they were in the suburbs, whole midwest. i mean, we keep getting -- lululemon. i guess people like that they just opened up where. >> you don't wear yoga pants >> not lately. under armour and nike. these are things unheard of. there's no -- one of the other things people don't know, 100% occupancy and almost 100%. >> we've talked all about this with you it was a different story, conversation amazing. >> you can get momentum. it's awesome momentum. >> we're going to continue this conversation in just a moment. when we come back, republican congressman patrick mchenry will join us. he serve on the financial services committee he will let us know about working with the other side of the aisle to get tax reform done the futures this morning have been mixed dow futures and the s&p slightly lower. nasdaq up by ten "squawk bo wl rhtacx"ilbeig bk. q3 almost in the books the dow on track for the eighth straight quarterly gain. >> crisis in puerto rico cash is in short supply as the island recovers from hurricane maria. a live report from san juan coming up. plus, why humans on mars might not be that far away elan musk has a case to kolonnize. we'll tell you what it is as the final hour of "squawk box" begins right now >> live from the most powerful city in the world, new york. this is "squawk box." >> live from the nasdaq market site i'm joe kernan along with -- really it's you it's you >> i'm back. >> it's becky quick. i felt sorry for that double life sentences from -- >> from the jury duty. >> no, it was a civil case >> oh, it was a civil case >> not a criminal case >> she would be tough. i have my attorney tell them no way. >> you would have booted me. >> they would point to her and say -- >> she's excused thank you. they took me >> they did. were you like the -- >> i was i was the forewoman. it's just because i was juror number one >> as she would be >> like she is here. >> like she is here. >> guest host this morning dan gilbert founder of quicken loans and owner of the cleveland calf leerz. more in him in just a bit. first, a check on the markets. i think it's -- >> people in a bad mood or something. you saw the futures, which were mixed today, but markets not open yesterday >> let's get you caught up with some of the big stories that we're watching this morning. amazon told $1.6 million worth of whole food stores branded products it's just in the first month since taking over the organic food chain scoring new data from e-commerce analytics company. one quick retail the sales are small compared with the roughly $8 billion in retail sales that amazon averages a month >> a lot of people thought this was a brick and mortar idea of troo ig to make the logistics work half the battle from what you really start to understand is taking some of the branded stuff that whole foods does and putting it on-line >> volkswagen setting aside an additional $3 billion for expenses related to its diesel emissions scandal. that's in addition to the roughly $27 billion. it's already spent the extra cost relates to fixes for certain vehicles more technically complex and more time-consuming than had been anticipated. also, uber has a new ally in theresa may. u.k. prime minister said it was disproportionate for london to refuse the operating -- the ride share company said it would appeal the court decision and its ceo will head to london next week to meet the city's transportation commissioner. we should note, by the way, there are 40,000 drivers in uber in london on uber. when you really think about the economic impact, it is significant. >> thought you had that down surprised. >> let's talk about some stocks to watch today shares of kb home are moving higher after the company beat on both the top and bottom line the company ceo also addressing the rant he went on against his neighbor, kathie griffin here's what jeff metzger said on the call >> i want to talk about a personal matter that happened at my residence two weekends ago that made the new and which no doubt has come to your attention. i regretted the incident immediately, and i have apologized for it sincerely. the board of directors has already taken action as the company has disclosed, and i and the kb home team are fully focused on leading this company into the future. >> let's take a look at shares of kb home right now up by 3.7% fwriter is telling congress it suspended 200 accounts linked to russia as lawmakers probe meddling in this the 2016 election senator mark warner, the top democrat on the senate intelligence committee, says that he is not happy with the social media company's response and says that based on what they are saying and based on what they are doing it was a kurgsry view where they really just took what had already been done at facebook and followed up with that investigation didn't go beyond it. >> an update on the health care reform battle. senate democrat leader chuck schumer says democrats and republicans are on the verge of a deal to shore up the health insurance exchanges. the bipartisan agreement would fund obama care insurance subsidies and offer some certainty to the health insurance markets. >> i don't know if you can see this over here, but i just saw this it's in it the hill. >> the hill i kind of like i don't mind the hill. it's not as bad as politico. >> oh, yeah. the senate we're opt mythsic. we're hopeful. this i think -- this is one i kept trying to get them to say distrust of the senate grows within the gop, and what they're basically saying is they're -- in the house there's a real concern that some of these senators are acting on their own because they're not up for re-election in it 2018 the ones that are cut and running because they've got some -- listen to this close to the house gop said they're frustrated with a handful of senators overruling the will of the entire house, and they have a picture here it's mccain talking to susan collins. that's a real concern, is it not? >> it's not new. >> i know. nothing has gotten done, and why do we think this will be any different this time? >> the running joke in washington is that the house and the senate have one thing in common we've got about 98 useless members. but it's not new this is traditional. the senate's process is so jacked up. >> you are trying to suck up to the senate now by saying that's -- that was a nice comment. >> that's not going to endear them they're going to say mchenry was just on. >> it's fine it's fine. look, the deal is their margins are so tight over there. mccain south takes him in and out of being there you're working with 52 on a good day. republicans. you don't have moderate democrats like you did at the beginning of the bush administration our track record on this is not recent we just went through three two-term presidents. the last time that happened was jefferson, madison, monroe we have three two-term presidents you can check. you're googling now. >> i'm reading this article. the worst chafrm of if this was 2001 with the bush tax cuts. the senate is always really p procureus and general. they can't get 50 to do stuff. >> that's the problem. >> you should be able to right republicans got a republican president. you should be able to write bills that get passed because you have the majority in the senate, and you got the majority in the house you may not always have that >> the house has not been easy to pass legislation. >> they did it, though they finally did it. >> look, we don't get style points for health care we don't because we fell on our faces publicly we did get it done we did get health care done, and that was in june look, we did our job in the house. we actually have a great production out of the house. more than the historical average of bills that have been passed to the senate, and actually so far to date this president signed more bills into law than obama did. >> i can understand your point my guess would be that in the house, you are much safer in your district. the districts tend to be either very right or very left. they've been drawn that way. in the senate you are responsible for an entire state. it's harder to go to one extreme or the other the argument might be that the parties have gotten more extreme, and it's harder to find middle ground, whereas the snatd is kind of set up to find middle ground >> that would be me as a public policy maker and getting an excuse right? things are hard. >> you wanted -- you just want a simple majority. >> if i wanted to accuate my opinion, i would run for senate. i'm not running for senate i have enough to deal with before i run for the senate. let me get back to this. yes, the senate has its challenges >> the deductibility that -- >> already the rnlz said they're not going to -- the ones in the high state, new york and other places, they're already saying -- >> if you had asked me this question even last week, if i was here last week and you said tax roll-out next week, what's going to be the issue the day after the roll-out the day of the state and local taxes. >> yeah. >> 1986. what was the issue state and local taxes. why? it's a whale of a deduction. it's $1.2 trillion it is equivalent to the border adjustment tax in terms of revenue. >> people are saying that's going to look goods again. >> it's all traces what people are judging and, you know, i heard ed rendell on this interview, which let me just tell you, ed is reading from the 1986 tax reform talking points that he dusted off or the 2001 tax cut discussion he just dusted them off. it's not new it's really not new. actually, 86 -- the same issues we're wrestling with are the same issues. >> what do you think should happen >> on tax reform, state and local? >> on the state and local. >> state and local let's look at the modelling. are you better off or worse off under our plan that's the net effect. it's not a deduction that matters to you it's the net effect of what we're doing. >> we don't know yet because we don't have enough details. literally, we've all been sitting around >> everybody is assuming because of the -- as i'm doing it in my head still says you're head. i haven't done it in detail yet, but maybe we should ask the woman when she was here earlier. >> some of the math that's been put out there thus far suggests that if you were in new york, middle class family in new york, you're doing worse, not doing any better >> right and that is without looking at the details of the plan. we laid out the top line we in the house are going to write the details of that plan we learned the lessons of health care we learned the lessons of health care we had a full day retreat going through the details of tax that takes a lot of caffeine to keep people, like, hyped for that we went through the top line we determined a rate with the house and the senate and the white house. >> people don't say i'm going to buy a house because -- if you don't have the net rates come down like you were saying, but charitable deductions, people don't have to give charity away every year, right? they don't have to >> they're not up ending that entire -- >> we keep mortgage interest deduction and we keep charitable, and we do away with state and local just to be clear. >> people argue it is the great give-away to the wealthy in this instance because 8% of small businesses are making $100,000 small business owners making $100,000 or less they're already at 20%, 25%. it's the top 2 3erz that becomes the bishop isn beneficiary. isn't there a way to either create sort of blocks so that there's sort of caps on that >> yes >> and the way we're going to do this and the details of the pass-through rate, that is where you'll actually see the real modelling, which means an individual has to take a certain amount as income and the rest can be the pass-through income >> the big talking point that we keep hearing when people are complaining about it, you think, is unfair and will go away once you have -- >> in a couple of weeks we can judge it, and you can actually judge 20% corporate versus 25% pass-through and see why that modelling does make sense. >> it's going to happen? >> it is it's going to happen -- >> this year >> this year, and if i had to pick a date, december 24th >> the republicans in new york and california and connecticut and new jersey will vote with you? >> yes, once you see the modelling, you see real families will have real benefit, and they'll have net better off. >> congressman, thank you. >> patrick mchenry >> i just like saying that you know give me tax reform, or give me death. >> president trump told me he would have gotten elected eight years before if he had my name it's a little bit of a slam because i'm just in the house. >> exactly for now. >> when we come back, training sells to fight cancer. a special cnbc modern medicine report is right after this i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪ have you any wool?eep, no sir, no sir, some nincompoop stole all my wool sweaters, smart tv and gaming system. luckily, the geico insurance agency recently helped baa baa with renters insurance. everything stolen was replaced. and the hooligan who lives down the lane was caught selling the stolen goods online. visit geico.com and see how easy it is to switch and save on renters insurance. >> meg has modern medicine >> technology comes new price. we hear about the high price of drugs. for one family we met, mandy and james johnson, when it came to treating their daughter's leukemia, no price would have been too high. >> money would have never been a deciding factor. >> their daughter, caitlyn, participated in the clinical trial of a completely new way of treating cancer called car-t for t-cell therapy it vofltz removing the patient's t-cells using viruses to deliver genetic modifications to them. equipping these cells with homing devices to find cancer cells and then giving them back to the patient the drug that caitlyn helped test was approved last month by the fda. the first among a new wave of therapies that use a patient's own cells as medicine. it's called kymrriah there $475,000 for that one-time treatment. doctors of memorial slim kettering said it shattered drug pricing normz. novartis also approved a pricing model. the car-t therapy is issued to all patients who need it if the medicine is working, then novartis is compensated. we're supposed to be hearing from novartis about this after a month, yeah -- >> wow you only pay if the drugs work, which, yeah, that's an amazing -- i'm surprised that's never been tried before. >> people are starting to experiment with knees modthese but the health care system is so complicated it can be difficult to say if we don't get -- if this drug doesn't work, we don't get reimbursed it can change the pricing for all insurers across the board. when you have a one-time treatment, people are starting to think differently >> it's only for government insured -- >> this is under the senate for medicare and medicaid services where, this is a deal novartis set up it will be interesting to see how that ingz cha through the system >> interesting >> one of the things i want to try to understand is whether this will impact the business of sport. you had conversations with sponsors are you seeing the tickets is there a meaningful -- is it going to impact the ratings in a meaningful way >> well, it certainly could. it certainly has -- the nfl is at a different place because that's where it all sort of mushroomed out of. the discussions yesterday at the nba board of governors meetings were intense and vocal and very, very concerning. i think everybody should be concerned. the players, the player's union, the owners, the management, the coach says, general managers i mean, bottom line is everybody in the league technically is on the same side. you're all partners to try to grow the league, grow more opportunity. the best way i this i to deal with this is you have to give -- the words we kept using, probably half the owners, three-quarters talked in the meeting. it's not that usual that so many talk basically, but it was people have strong feels, and it was about let's get ahead of it. we have to get ahead of it >> it means what >> means addressing the concerns it means talking to the players. it means giving them an outlet talking about the issues and what issues can the league support, the franchises support. what can we do on video boards what can we do on commercials? it can we have news conferences on it? can we support programs? there's all kinds of things. >> how complicating is it to come out way position that feels one way or the other, and then what does it mean for you as an owner? >> look, this country is -- it's a free country, right? i think it's very difficult for any business to tell their employee, in essence, that what they can and cannot say. when it comes to, you know, during their games and their arena, there's rultz the nba has a rule it's had a rule for a long period of time that's been there forever. it's not in reaction to what happened now, right? i think the thing is if you give outlets and let this expression happen and you look at what the issues are, we're all dealing with a symptom this is ju the symptom of the problem. this is not the problem. right? the problem in having some dialogue and getting deep in understanding them and once we understand them, i mean, there are some smart people in the nba and smart people throughout the franchises i think they'll do the right thing. >> go ahead. >> go ahead. >> i was going to say -- switch the conversation and talk about the media landscape and what it means to sports today, in large part, because weave been watching espn, the relatively challenged, some people said it's because of the amount of money that they've paid for sports, including the nba. when you as an owner think about sort of all the content that's out there, all the different distribution platforms and the valuations in larnl part because of the regional imports and other things, and the kinds of contracts that someone like the networks like espn paid, do you worry, or do you say, you know, there's -- it's -- we are the content and content is going to be king. >> espn paid too much. is that what you are saying? >> imauto asking the question only because as we unbundle, does this actually benefit you or hurt you? >> well, first of all, i think it's pretty well known that this is adam silver again he wasn't commissioner, but he negotiated at the top of the market it's the sort of last bastion of content that the network can pay a lot of money for because of the nature of it being live sports i think there's several years left on these -- there's three networks abc, espn, and tnt >> do this he call it uncoupling >> decoupling? uncoup uncoupling >> it's when a conscious uncoupling >> what is that? >> that's where you get -- >> that was when gwyneth pallet row split from her husband we'll go with unbundling >> the actress i'm from michigan and detroit. >> entrepreneur. >> big businesswoman these days. >> i know her as a businesswoman. okay i don't know what i was talking about. >> you were talking about espn and the valuation of these networks and these valuation of these deals. >> a couple of more years on them, and i think, you know, the smart people of the league, this is what they do, and adam happens to come out of that area, that space they're thinking about a lot of things they can do digitally and how the nba -- >> i almost wonder if that's part of the reason we watch the nfl cut deals with twitter last year and their on-line places you wonder if ratings are down is it because people can go other places to see it or because people aren't really watching the games >> that's a great question my teenage boys, they're watching the red zone the whole game they're not even -- they're looking at their -- then i ask them who won the browns game, who won the lions game they look at me like -- there's, like, 14 of them, and then they tell me how many yards because they're playing their fantasy. the leagues have to adjust. >> the speed of the game -- >> this has been a little bit of an uncomfortable conversation. let's shift a little bit >> i'm totally confident >> okay, good. >> bottom line is that's his decision it's his decision by virtue of a contract fra frankly, i think as he said, he doesn't want to -- he is focused on the season. by the way, he is about as passionate and geeked up in what hes is one of his best summers he has ever had in training. we have somepretty good talent like we said before, winter is coming that would be the other team that starts with a w the real war -- boston is a great team, and there's a couple of other coombers, right, but we'll see. hopefully -- >> the warriors. >> the awwarriors winter is coming we have to address it where. >> it's sort of odd. two. >> he has always made his own decisions, for sure, and i'll respect -- we respect whatever decision he makes. >> if you are super human like he is, whatever it is, 3.5 years. >> i don't think you can step in for him. just looking at your -- you need to do some leg lifts or something. >> i definitely can -- >> what's your vertical leap >> almost two credit cards >> have you seen this man at the foul line? >> foul line is not for nothing. >> come on, man. nobody -- >> do you see guys where they put those trampolines out there? >> some of those guys are unreal, aren't they? >> unbelievable. >> i still couldn't -- i think maybe i get to the bottom of the net. >> our game at the three-point line -- >> our most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that. . it's spiking right now, dan. we're just seconds away from august personal income and spending rick santelli is standing by the numbers, please. >> the survey says expecting up .2 we arrived at the intersection above .2, exactly as expected. we just lose .1 on last month from .4 to .3. what about the spending side also exactly as expected up .is last month's .3 stands unchanged. let's look at a couple of key elements here. if re welcome lepernl skumgts deflator month over month, up .2 .1 hotter than last week wtd .1 cooler than dppd. 1.4 as expected. .1 hotter unchanged from last month. let's get to the money ball, shall we at least if you are a central banker wresh personal consumption expenditure, core. month-over-month up .1 that's cool. here we go up 1.3 year-over-year core follows 1.4, and let's keep it going. 1.3. actually it's the lowest month-over-month personal consumption expenditure of the year it looks to me like that could be the lowest depending on how many digits they carry it out towards the end of 2015. i find that fairly interesting inflation seems to be to janet yellen and company kind of the reason to pivot or not although that's been shoved under the rug lately these aren't the hottest numbers. we've had hotter numbers yet, we're tapering the portfolio, and it looks to be one-third rise in december it certainly seems as though there's something in the fed's mind that's pushing this forward, and many market participants think that the rest of the central bankers of the world may come over to their side can't wait to hear mario draghi in october or carney at the next meetings becky, back to you >> let's be realistic. you trust the -- >> i just spin around looking at numbers. >> do you think the gop controlled senate is going to be able to figure out how to vote yes on this tax bill >> you know, listen. there's great op ed. i'm sure you read it, about the trifecta of never trump. listen, everybody elected to the senate by their constituency has the right to vote whatever they please that's the way the game works. it certainly seems suspect to me that it doesn't necessarily seem to blend into other times where they've had the opportunity and the willingness to vote, but never a president to sign it i do scratch my head i think the bigger issue here, joe, is you have to have the republicans a certain amount of decorum in high five in terms of they're not just the board, okay? they don't have a leader that says you do this, you do that, and they all do it like some past administrations when the other party was in control i would like to hear more rationale reasons why things ashlt getting done in my opinion you make a little bit of progress every time you have a chance to vote on policy. i really think it's impossible nowadays to get it all perfect the first time >> here's another one from dan gilbert. >> i'm going to ask you a question somebody asked me that, and i said i'm going to ask you because you're the expert in this if this tax package passes, good for bonds or bad for bonds >> i think it's good for stocks. it probably is good for the dollar index, and it's good for bonds insofar as we sell bonds off, push rates higher, but for all the right reasons. sfa we'll see you soon >> in the meantime, we are continuing to follow the latest developments out of poorto ricco. the island is short on food, on fuel, on medicine and cash all of these things after hurricane maria. let's bring in louise. he serve as governor from 2009 to 2013, and, sir, it thank you for being with us today. >> pleasure. >> i know that you are in washington right now, but your family members, i believe, are all back in puerto rico. what have you heard about the situation there? >> well, it's very tough even authorize foez like my family members that were fortunate enough to have their home, you know, still standing >> medication, the same thing. you stand in line even to get into the supermarket things that we have never experienced, you know, in four generations in puerto rico in that sense certainly steps are being taken recently that are welcome, but more is needed. i believe more boots on the ground are required. for example, as of yesterday, 7,000 containers had arrived after the hurricane to the san juan port, but only 1,600 had gone out for distribution. there's a logistic problem that that has to be addressed that i think will start flowing >> what was the problem to this point? do you think the response has been too slow, or do you think it's just what happens in a celebration like this? >> the logistics problem has be been. >> in the first 24 hours as much as it rained in houston in three days the response has to be robust and more agile, i will say >> the immediate response is one thing. obviously, you need the help there very quickly and very effectively, but this is going to be a long-term problem. talking about -- talking about the island being without power and needing some massive infrastructure to help at this point. what would you like to see both in the short-term and the long-term? >> well, short-term is to make sure that no one is left behind in the sense that there are people that have not received any assistance whatsoever. it's been eight days already food, water, power, those that need medication i'm very concerned about that those that depend on a respirator or require some special -- very specific medical service such as those that need dyalysis, i'm concerned about those as well. women that are pregnant that may be close to giving birth, i would be concerned about that as well again, it's welcome news that military is taking over, and i'm hopeful that there will be enough boots on the ground to get this going of course, i see this also once we are beyond the stage, hopefully there's an opportunity to build smartly, to make sure of the infrastructure actually will be able to with stand better situations such as this you know, actually the caribbean has been hit badly this year, and i'm sure it will not be the last time. >> thank you for your time today. we appreciate it, sir. >> thank you >> before we head to a break, a big celebrity lending her voice to hurricane relief efforts. beyonce dropping her first single since giving birth in june it's a remix to the chart-topping song magenta or my people all proceeds from that new track will benefit relief efforts in puerto rico and the caribbean islands following hurricane maria as well as mexico after that massive earthquake. coming up when we return, a trip to mars in the next ten years? we're going to tell you elan musk has stunned space experts this time not just a trip to mars anywhere around the world in under an hour. as we head to a break, set your dvr because next week becky quick will be live in omaha with warren buffett that's coming up on tuesday starting at 8:00 a.m. eastern time "squawk box" returns in a moment throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise elan musk is planning the kolonization of mars the space-x ceo predicted the fe first trips to the red planet as early as 2022. a long time. musk said that he plans to create a single fleet of super powerful rockets and spacecraft able to serve commercial satellite operators and u.s. government customers he also said -- this is the scary part i want to think about this also said he would be able to travel anywhere on earth in under an hour. >> what? >> on a rocket for the same price as a plane ticket. i think it does entail, like, sitting on top of a launch pad and waiting to get -- to take off and go out in the -- >> like john glenn >> then you got to come back through the atmosphere i think you need to be very brave. >> brave >>. >> you saw -- you can get around the world. to any city. >> he is taking that -- no, no just -- >> we were having a conversation >> we were having a separate conversation over here sorry. we're the bad kids >> you sit on top of a candle and light that candle, go up in the orbit, and then re-enter >> so five hours on a plane. >> hopefully none of the tiles are misplaced. >> once it's all figured out, not the first viewer, but i think -- >> those guys in the government, they already booked their rocket flights. those guys, they were talking about at the top of the show >> tom price hhs. they take rockets now. that's a good one. >> hey, costs the same as a regular plane, right >> exactly just try to -- >> i'm scared. i was saying, i'm -- you need to be brave to sit on top of a candle are you brave enough >> we're like the bad kids in cool school. >> you had nothing to do with it he was paying attention. >> he is the bad kid >> yeah. hangi it on him >> wal-mart takes to am zbloon we'll tell you what the super store is doing in time that's next. as we head to break, more of the music, i'm still afraid. it's the last trading day of the third quarter. check out the sectors that are leading the way. tech, energy, and early its. we'll be right back. is the monolithic view of emerging markets obsolete? at pgim, we see alpa in the trends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and 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( ♪ ) whoo! ( ♪ ) woman: class, let's turn to page 136, recessive traits skip generations. ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ ) so, i was at mom and dad's thank yo♪. and found this. cd's, baseball cards... your old magic set? and this wrestling ticket... which you still owe me for. seriously? $25? i didn't even want to go. ahhh, your diary. "mom says it's totally natural..." $25 is nothing. abracadabra, bro. the bank of america mobile banking app. the fast, secure and simple way to send money. whole foods says it was hit by a data breach information was compromised at its tap rooms and full service restaurants in some of its stores whole foods says these venues use a different point of sale system than the main check-out system, and that system was not affected >> the products will launch exclusively on jet approximate.com for the first year, and then they will sell later on wal-mart's site wal-mart bought jet.com for $3 billion last year in an effort to beef up its digital presence. guys, just something from jury duty one of the jurors worked at jet.com. the logistics guy there. another guy was the shoe salesman who sells to retailers. there were some interesting discussions about like the disruptions of e-commerce, what that is doing to the old line retail business. >> you were gone i know it's a civic duty and everything, but -- >> it's an inconvenience for anybody to go on jury duty they said to us -- >> did you try to act crazy crazy when they were picking you out? >> i stopped short of that i did point out that -- i brought my pump with me. i pointed out -- >> did you pretend that you really wanted to sentence someone. >> no, but -- >> did you act like, hey -- what's the way to go to get not picked >> i think -- i'll tell you what, you just claim that you're crazy and that there's no way you could be an impartial juror. when they were seating the jury, there must have been 60 or 70 people >> i promise to be myself. there's no way, right? >> must have been 60 or 70 people who said i can't be impartial. >> i'm surprised they wouldn't just turn you away at the door >> this is what we do to defend the constitution we make sure people have a right to this. they are not asking us to go and serve on it is beaches of norm appearedy. this is the way you defend the constitution >> was there -- >> it was a civil case >> are you allowed to talk about this now >> he can talk about what happened in the courtroom because anybody could have sat there. i can't talk about the deliberations. >> john, are you an -- you haven't cued up the -- >> usually -- >> usually >> i'm curious because i think one of the most under discussed issues in america today is the predatory plaintiffs in this country. you talk to any business now, look, a legitimate case, fine there are plenty of legitimate ones but there are firms who are predatory plaintiff firms. >> i see them on tv. >> that is the -- >> with the magnetic business cards, right >> it's legal extortion, and there's ransom paid, and the businesses, they just pay the ransom because they don't want to bother with the time -- >> it's easier >> what really happens, it invites more of it we've had a zero -- we just -- zero we will not -- if we are not wrong, we're not going to settle >> with quicken. >> and we think although we have plenty of them, we think there have been a lot >> you haven't queued up -- >> usually -- >> i think one of the most under discussed issues in america today is the predatory plaintiff. you talk to any business, legitimate case and there are plenty legitimate ones. there are firms -- >> i see them on tv. >> just legal extortion and there is ransom paid. the businesses just pay the ransom because they don't want to bother with the time. >> it really happens and invites more of it. we will not -- if we are not wrong we are not going to settle. >> we think although we have plenty of them we think it is a lot more. >> there are plenty business people who said the same thing. if you settle then you are basically inviting other people. >> i tell every businessman that monster will come back and eat you. >> this was a civil suit. i won't go into too many details. they did say there were 120,000 cases in the country every soedita ee tbedso relv wh jury. >> maybe we should jack the prices of jurors up. >> if i walked in and joe was in the jury box -- >> when we return cramer in the jury box. we'll get his take and verdict on today's top stories. but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps. and bridges our divides. donate to your local y today. because where there's a y, there's an us. i'm vern, the orange money retirement rabbit, from voya. i'm the money you save for retirement. who's he? he's green money, for spending today. makes it easy to tell you apart. that, and i am better looking. i heard that. when it's time to get organized for retirement, it's time to get voya. we come into this world needi♪ others. then we are told it's braver to go it alone. ♪ but there is another way to live. ♪ a way that sees the only path to fulfillment- is through others. ♪ after facebook drops the take a look, please, at the shares of zogenix up on news that its experimental drug to treat a rare form of epilepsy has met a gain goal. had a market cap of 320 million as of yesterday's close. by us mentioning it should add a couple hundred million. let's get down to the new york stock exchange. i guess these little small caps if something big happens we can mention it. >> you are hesitant to talk about small caps. you have to be careful. you are too influential. >> i never talk about anything less than 300 million. a lot of people feel gw pharma product will not be as good as this one. a lot thought it is a way to have legal marijuana. you will see that stock down not as much because it is a big cap stock. >> what about this would you ever look at the senate and the house to try to figure things out, jim it's just impossible, isn't it >> i was thinking the other day, if these guys were ceos we would be leading proxy fights against all of them. i put my cards on the table. i think what gary kohn talked about is fabulous for our country. sometimes i feel that is about as far as it gets sgmpt all i know. after watching the last three debacles i don't know how to handicap this. the slightest thing can cause one of these guys to stand up and say i will -- and then rand, whom ever. >> it is incredible. there will be someone who finds something wrong. is there any doubt that this would not make it so that our country would have among the best growth of all developed countries in the world no one even disputes that. >> we don't even dispute it. >> hope springs eternal. >> as objective observers, it will be fun to watch. >> that's true. >> don't miss the interview with the ceo of harley davidson on power lunch. we'll be right back with much more from very few people who get to host -- you're with it. another day at the office. why do you put up with it? believe it or not you actually like what you do. even love it. and today, you can do things you never could before. you're working in millions of places at once with iot sensors. analyzing social data on the cloud to create new designs. and using blockchain to help prevent fraud. so get back to it and do the best work of your life. and using blockchain we're 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 don't. 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 enjoy the fresher things in life.o. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest... ...prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices... ...from over 200 booking sites... ...to find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. your kids go to college and you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade. we want tooffer our thanks to dan gilbert who joined us for three hours this morning. >> you were comfortable. you said you will never be comfortable here. >> you guys make it great. now we talk and we're friendly skplmpt tw you used to be a real jerk but now you talk. >> thank you very much. >> we appreciate it. >> i'm going to -- if you double my pay next time it will be the same amount. >> you have quicken. you have the cavs. you like a renaissance man. >> keep us up to date with everything happening with detroit and the bid for amazon headquarters. >> we'll see you back here tomorrow, no we won't. we'll see here here on monday. have a good weekend. it's time for "squawk on the street." ♪ welcome to "squawk on the street." say good bye to september and q 3 on this final day of the quarter. best quarter of the year for the blue chips. look as the debate over tax cuts gets more specific. core pce is a miss up. begins witen