Particularly hard. At t points out their phone start, the turn is lower they are going to get their numbers. And everybody is trying to move to some of these issues i would say it was more media, but it is all the same, i guess. Telecom and media are the same now. Tmt. Thank you tmt. New network . No. Lets take a look at what happened overnight in asia you saw the japanese stocks this week have been sitting at new records just about every day that continues once again today with the nikkei up another 200 points this is now putting the nikkei at its highest close since september of 1996. 21,155 hang seng slightly higher. So was the shanghai composite yesterday. And in some of the morning trading we are already seeing, in europe youre going to see as we wait things are up for the most part. Looks like the ftse is down by. 20 right now. But these are modest advances from the other markets take a look at what is happening with crude oil prices. Yesterday crude oil settled down by 1. 4 . It was above 50 this morning it is back up by more than 1. 5 wti trading at 51. 45 a barrel okay we have political news to bring you that will bear on the Insurance Market and the Business World today late yesterday President Trump moved to cut off billions of dollars in subsidies to Health Insurance companies for lowincome patients. Many have scaled back Health Care Offerings and blame this on the uncertainty of the subsidy payments earlier, the president signed the executive order on health care making it easier to buy bare bones Health Insurance plans exempt from obamacare requirements the president will outline his plan for iran in a speech that will happen today at 12 45 p. M. This afternoon and eamon javers is here with details. Good morning. The Media Outlets are breaking some of the news of what the president will say today heres what we know about what the president decembs decision iran he will issue no new certification on the Iran Nuclear Deal that means the decision on whether or not to reenact sanctions will go to congress, but we dont expect the president is going to Push Congress to impose those new sanctions. Hes instead going to ask congress to modify the socalled legislation passed in 2015 on capitol hill to establish some trigger points for reimposing sanctions on iran. That is the United States will stay in the Iran Nuclear Agreement but will not certify it under the law that mandates that every 90 days up on capitol hill that pushes a decision to congress the president is going to Lobby Congress to make changes to the law. But the United States will stay in the Nuclear Agreement this is complicated stuff. And i should say, i mangled some of the sequence of it in an earlier shot, guys, but the president is saying mideast going to live up to his Campaign Promise to do what he can to bring this deal down but hes not going to end it completely and thats goingto restart possible negotiations with the iranians its going to cause some reaction among allies as well. But the president here trying to sort of have his cake and eat it to by staying in the deal and decertifying it on capitol hill. What are the options that the iranians now have at this point . Well, if the United States doesnt impose new sanctions, thats going to be the key then the United States will be abiding by the terms of the deal itself, right . So the iranians wouldnt be able to walk away saying the United States walked away first if congress imposes new sanctions on iran related to its nuclear ambitions, then the United States would be breaking the deal and that means that iran could walk away and restart its Nuclear Program and all that could go forward for right now, though, what the administration is saying that they want to stay in the iran deal and yet decertify it remember, there was this separate piece of legislation called inara passed after the iran deal itself you have the iran deal that exists between the United States and iran and then a piece of legislation up on capitol hill that was passed after that by skeptical republicans who said the president has to certify every 90 days that the iranians are in compliance with this deal that was to be a check on the Obama Administration now its the Trump Administration that has to live with that. They dont like the idea the president has certified, i believe, twice already that the iranians are in compliance with the deal, but he doesnt like the idea of having to certify that every 90 days under that law so what they are going to push for is an amendment of that law, not the Nuclear Agreement itself, and well hear a lot more from the president on this later on today at the white house. As you say, i expect there will be a lot of rhetoric surrounding irans Ballistic Missile program, irans support for terrorist regimes around the world and the like and the United States very frustrated here that they have to live with this agreement. That the president has called one of the worst deals ever. But yet they get some benefits from it that they like so they dont want to get out of the deal altogether. Okay. Eamon, appreciate it well see a lot of you today and well talk about iran and health care with axis editor Nick Johnston in a couple minutes. Samsung says its ceo and vice chairman plans to step down this was a surprise resignation announcement as he was expected to take on a bigger role after samsungs heir was jailed for bribery. Samsung now forecasts record Third Quarter profits on Strong Demand for memory chips in this case i dont know, personal, i dont know the faa has ordered inspections, meanwhile, of the fan hubs in the engines of some of its a380 jets you recall last week the engine on one of these fell apart on an airFrance Flight forcing an Emergency Landing. The engines are made by a joint venture of ge and United Technologies in the pratt and Whitney Division there and bsf has agreed to buy a large part of bayers herbicide business for 7 billion. They are selling assets to get Regulatory Approval for the 66 billion bid to buy monsanto. Aaron rosengren weighed in on this. Heres what he told Steve Liesman on closing bell. I would say they are fully priced. Fully priced to necessitate Monetary Policy action something we should consider is how much prices are likely to go up if we dont continue the path of raising rates gradually. Wow okay thats a message for you rosengren said theres a high possibility that the fed will raise rates in december. Now for more on the broader economy, well bring in the chief economist at barclays. And ed kehan is Portfolio Manager at qma what do you think, is it chicken and egg in terms of the market following the economy or the economy following the market you get both to some extent, dont you . The market tends to follow the equipment, but the market has been ahead of the economy. So its the other way around. And then there are hurricanes, and we dont know what the employment page looks like right now the last number showed a popular wave growth that could be partially because of the loss of lower paid jobs during the hurricanes it is very hard to say at this point. I do think there are wage pressures building and we have been so used to having wages be low and low inflation mare pressures for so long, i think theres a potential over the next few months. Thats a good news bad news thing, too obviously, america would like a raise, which is great, but just that it will perhaps prompt a reaction from the fed in terms of higher rates and lead to somewhat higher inflation rates. You sort of said for months that youre okay with the markets but i think you liked a broad more than you liked here yeah. Are the markets abroad doing 25 in the last, since november . Well, it depends on you look at it. Year to date with the dollar, i mean. The dollar, it depends on whether you buy it and what terms you take the currency. Actually, the u. S. Markets are doing a little bit better. So i think we like that positioning. We are not underweight the u. S. , but we have a bigger weight outside the United States in japan and emerging markets some people have been saying that the yearoveryear growth in earnings, which is pretty good, will still be positive and slow we may have seen the best. We probably have seen the best quarterly yearoveryear growth, but we are still seeing pretty good growth in the outlook for next year looking good so that the big surge we got from the Energy Earnings bouncing back, thats what we got in the first quarter. You didnt think we would do better than midsingle digits this year. I thought we would do 8 to 10 this year. This has been a surprisingly good year. Are you back to 8 to 10 for next year . Probably. In the long run, the market can only go up as much as earnings go up. You cant have evaluations go up continuously into the future in the long run, they go up at the same rate of nominal gdp you cant have 10 Earnings Growth forever as long as the economy is growing at a nominal rate, including inflation at 4 to 5 . So still, im bullish. Im overweight stocks. But i think we should be realistic in doing longterm financial plannings. Theres only so much you can get out of the stock market in the long run. Michael, you have seen the overall outline of the tax plan, have you been aware youre at 4 gdp, 5 . Where are you if it passes if it passes 2. 2 . A little less than 3 it think it will go high, too. Go you think it will pass i think it is probable but not plausible. I think by Christmas Eve or something. How do they know that . They dont. I think youll get efforts of reform and if that doesnt happen, then perhaps cuts and q1. We have waited for cuts by q1. But at this stage of the cycle with the fed saying, were on a path to normalizing Financial Stability concerns or inflation that will lead us to do that, youre probably looking at a low multiplier add a half percent or so to growth so thats where i would put it. The fed has been all over the map lately people say, theres going to be another one this year and four next year. Other people say, dont do anything what do you think finally really happens . I think they go in december i think the Committee Makes the outlook next year a little more concern. You could have three if you had tax cuts, but thats the wiggle room right now. Because if the tax cuts come, it will force them to start raising rates faster because it will bring the economy up . Yes so it will just make it easier for them to justify it so whether it is financial conditions, whether it is inflation, some of the transitory elements coming out, it will keep them more normal. On another network they have, they give your panelists 100 worth of chips so how would you spread out your chips on your fed head betting right now . So in my view, everything in this is personal. How much are you going to put on this, 50 50 to 60 do you split up the other 40 . Give most to yellen. Yellen get . A dollar. 2 . If they want current policy, you go with yellin or it seems that way if you want to go a different direction to keep rates really low. I would pick ivanka then. Go a different direction to keep rates low look at somebody like jim bullard. Hint, they said to write something where it should be hes fickle. I agree but hes changed his tone two years ago. And where the fund rate is now is appropriate so if you want low rates but want to make a change, thats where you should look. Do you want to play, andrew i want to understand why you think the wars would be loyal. But i also think hes i want to get to the soap opera here why do you think he would be loyal to the president i didnt say that but the personal connections give him a leg up kevin is smart. Hes really no. His stress is about inflation and staying at zero so long in terms of assets. And the hawkishness about the willingness to use the Balance Sheet in the downturn. It is, what do you do with unconventional policies . I do care who is your choice . I put bora. If powell gets the job, the market does what in the next this hours after that announcement and if kevin gets the job, what does the market do i would think that kevin warshall has intellect and positions. But in the short run, america will like the powell better because it would be less likely for him to take restrictive military policy. He is unknown yeah. You said, what does the president want we are the closest to continuity 24 hours then after it may go well. I dont know i dont know either do you think the policy has helped the market . If you think that a switch to a lessaggressive policy is going to be negative for stocks, then a person who has that belief is more likely to be negative is he on squawk box. Yes, he joined us from the studio. Was i there i dont know who wascying with me that day i was there. I believe i was there i might have been there, too. Things like that sort of all melt together. But i know walsh actually, all three of them have been on squawk. Dont act like you dont think about yourself, okay all right. Dont virtue signal this early it is only 6 20, 6 16. Coming up. Thank you, guys. Chief of staff john kelly said yesterday hes not quitting and didnt think he was being fired either we have the latest from d. C. On health care, tax reform and much, much more. And later, dont miss the special interview coming up with senator ted cruz joining us for an hour starting at 8 00 a. M. Eastern. We have lot a to talk to the senator about. Back in a moment th u clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to Wealth Management. President trump is expected to skrab subsidies in a move to unearth obamacare. The democrats obamacare is implo imploding. Massive subsidy payments to their pet Insurance Companies has stopped. Dems, call me to fix help us understand the decision itself and where we go from here right so the president hate os obamacare. He wants to repeal and replace it since running for office, so hes taking a sledgehammer to it administratively hes going after the important insurance subsidies to pay for the more expensive people in the market and hes passing new rules to undermine the market. So what is the political calculus at this point in terms of, is it really about bringing democrats to the table as the tweet just suggested and given that some of the lowincome, the lowestincome folks will ultimately get hurt by this, how is he going to balance that i think what the president s political practice is he wants to say this is a democratic problem. That it is the democrats fault our reporting shows a lot of the things he is doing is making it unstable remember when a lot of Insurance Companies pulled out of the market last year they did that because of the uncertainty about repeal and replace. The president s strategy now is make it so bad, hell tell chuck and nancy to come to the table to negotiate on this but earlier today you had a statement from them calming this spiteful they are not negotiating on this so i think it will turn to senators lamar and alexander to look for middle ground here. You mean alexander and Murray Murray and alexander, right i dont see how this is that different than the daca thing where, he says, okay, hes like lighting a fire under congress or the iran decertify case deal. Thats exactly right. All these things are pushed to Congress Iran is the next thing. But congress could save the subsidies if Lamar Alexander and patty murray get a deal together these arent paid for right now, right . Nick, right now, its like an off Balance Sheet. It is 7 billion that hasnt been allocated. Exactly. It is not legal until congress legalizes it. Thats the argument these are things being litigated right now as a way to get them through. Congress couldnt get it done first and now they are off the books. And many people in california say they are going to be suing. When they are done administratively, people end up in court so now well be in court on the obamacare thing until we figure out the congressional solution this year. Nick, i want to pivot to big tech facebooks ceo Cheryl Samberg is facing pressure about the russian interference to the 2016 election does facebook owe the American People an apology certainly any time theres an abuse on our system for foreign interference on our system, w