Walter isaacson will be with us. First were going to john harper. More companies are following in line, criticism from president elect trump. Our john harwood is in washington dc with more on that. In the age of trump, companies have learned very quickly if they want to get on the good side of a new president , they should tout those efforts and make them conspicuous and public. Very substantial investments. Now the Companies Say the investments were already planned. Trump was on twitter today saying the jobs announcements are making the case that even before taking office, he is doing what he calls big stuff for the company. He is hoping to build momentum. He could not avoid picking a moe money temperatu more money. House republicans want a border adjusted dax system for the Business Community that would tax imports but not tax exports. Donald trump says it is too complicated. He has a punitive tax on companies that take jobs overseas, and well have to see what the wrestling match is for those who are very fond of the tax plan. And what sort of negotiations produce the result. He is going to assign republican priorities, but he made the case that he will try to alter some of the priorities as well. Thank you very much. We could go about a million different directions, but for now, lets try to zero in on the policy. What is particularly interesting is the job owning. I think the tariffs and buntive taxes is not a great idea. I think in some ways paul ryan nose the tax code, and i think it will win out. When do you think well know. There is one Thing Companies may do, were going to be looking at monthly totals to see which way the needle is moving. I was in detroit a week or so ago talking to bill ford were sort of, you know, we want trump to be happy about it. In the end, in six months or a year, companies will be doing things for economic reasons. Were talking tens of thousands of jobs that will come back. It cant happy because people are opening one or two factories here and there. It requires having a skilled work for in the long run, reduction and regulations. Having a more coherent tax policy. Or a boeing deal to create jobs. So whether or not there is demand to create that capacity in an economy running at full capacity were running as you say full capacity, was it a 3 or 3. 5 growth rate. On the other hand, we could have more robust growth. We also have people who are not in the job market. We could use a little bit more of an increase in middle class wages. That is what the whole election was about. We need not just a few more jobs, but 35 an hour jobs where people can send their kids to college. Then youre going to see the American Economy robust again. Walter, one of the things that i hear people talking about on main street is repeal and replace. Whether or not it happens that way, whether or not they get to remain insured when they have pry existing conditions. How important is that for the way they get viewed . This is the most important issue, youre going to have to have a Health Care System where people can leave their jobs and get another job. Do things in which, if you have a preexisting season, you cant move up, you have to find a way to have the work force will more fluid, everyone be able to get health care coverage. Im very encouraged that trump said very specifically, that we will have a plan that covers more people. If you dont do that you have a labor force that will stop, Health Insurance will be a mess, and people will be thrown off of health care, but they will still need health care. It will be deeply disruptive to the entire sector of the economy, and also the sector that depends on workers having good work. Moving on to a difference topic. And one more thing, politically that will be the big thing in this administration, theyre just people across the country who need health care coverage. If they are thrown off, this will be a huge backlash. I think it is the biggest political land mine. Im sure, i imagine the team is probably aware of that. Business leaders meeting for the World Economic forum, take a listen. The senate hearings, all it did is light what you have been saying from the beginning. The competitive environment does not change. As a result, as long as the law is applied. He makes sense that spinning off cnn makes no sense when it comes to handicapping the deal. I just cant predict for you. It is very interesting. Randall stevenens is right. Youre going to have more even if it it is not purely based on the precedence that we have in law. Youll just say big media consolidation is bad. I cant predict what he will do our who i dont think that there is a very clear legal case in terms of antitrust law. If you dont want more big media consolidation youre against this thing. It is at risk . As opposed to seeing this merger, it is not youre right you have to say could they leverage to change innovation or choice . Those are all ar cane issues. The Republican Party always had two different groups. The corporate business, and the populist republicans that resist, it is nothing new, but trump ran on the populous rhetoric of being as good as mine, but i think his populism and the populism of the people that elected him will cause with the big business reputation. Certainly were going to be leaning on you a lot, walter. Even if you say your guess is as good as ours. Walter, thank you. When we come back, what apple executive thinks about apples push into original content, and how taeechnology is changing th 21st century consumer. Why teresa may says no deal is better than a bad deal. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan Stanley Jimmy iovine comments on reports that apple is expanding to original television and movies. Iovine says at apple music what we are trying to create is a entire pop cultural experience. That includes audio and video. Popular callture, smack on the nose. Were going to try. He mentioned south park as a hypothetical. Apple seems to have lacked a coherent Cohesive Strategy around video, tv, and movies. Theyre rumored to do something here, something there. Do you talk to jimmy . Apple says hes not the music guy . Who is on first . Yeah, lots of reports swirling around. As for communities, you saw Morgan Stanley trim their numbers, the same analyst that made a top pick for the year last week. But the notion that when youre going into the end of a seven cycle, people start pulling back on their purchases. Lots of people with stars in their eyes around the exipho next iphone. People are excited about the next iphone, deciding the iphone 8 time will tell in this case for sure, meanwhile more than 30,000 are attending the National Retail federations big show this week to discuss industry challenges, Courtney Reagan is live there. Good morning, court. Good morning, carl, the expo center here is bursting with technology as you can see, but over the course of the weekend, the conversation has been worry about two things. Getting consumers to spend on more traditional retail categories, and what, if anything, comes out of the border tax adjustments. President elect donald trump telling the wall street journey he believes it is too complicated. And William Dudley saying he thinks the border tax adjustment could do more harm than good. I personally think the border tax adjustment proposal in the house is a pretty dramatic change and it could lead to a lot of changes in the value of the dollar, the price of imported goods in the u. S. Im not sure it could happen very smoothly. And some of those consequences could be that the stronger dollar could hurt tourism as well as making investing less attractive, the goal is really to focus on technology companies, giving retailers a look at their technology that could help propel them into the future. We have seen things like 3d prints of a cashmere sweater in less than 30 minutes. Also jda software powers. Amazon is a major disrupter, but they dont put up a booth here. They do send several dozen attendees. And when they were mentioned at the forum, they got nervous laughter. Still to come, teresa may breaking her silence on brexit. The market fallout, next. And later why snap chat is taking a page out of Mark Zuckerbergs play book. Squawk alley will be right back. 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. A big day in the u. K. Of course, watching the pound for sure, lets go to seima in new york. Yeah, european markets are a mix today, but the surging pound, they posted their biggest one day game since the financial crisis after the Prime Minister outlined her plans. She says the government would put a final deal to a vote, but that the u. S. Will not seek nept. Here here is what she had to say in her speech. We seek a new and equal zip. Not partial membership of the european union. The United Kingdom is leaving the european union. A rather conciliatory town. One of the factors driving the hound higher, they made a second independent referendum, but they cant scotland out. Prettyish American Tobacco agreeing to take control. And in the meantime, the home of ray ban agreeing to merge with a french optics maker. I just got off of the phone with an analyst, and they say despite, and that in itself is reassuring. Also on the upcoming president ial inauguration. And well far goes gloeshl research analyst, good morning, good to see you both. You have a lot of worry and questions about whether or not this strong collar trade survives given the news flow, are you feeling any different today than you have been . The market since december 14th, after this giant rerating, has been basicallyize ways. It is where it was about four weeks ago. All through real rates, very bullish for risk assets, and the dollar is sitting around doing nothing as well. I think it makes sense because the markets priced in something more growthy and inflationary because they dont know how much because they dont know what will happen in congress and what kind of deregulation well get, so the market is on hold pending more regulation. If the dollar stops going up, that will spark a fire in emerging markets and other nonu. S. Markets including europe. So nonu. S. Markets have really lagged and if they just stop going up i think the markets will catch up. They say pending more information, what does that mean when the trickle of information will be frustratingly slow. We think that the rally in the markets have come forward from the rallies that we it anticipated in the other markets. And we think that the current selloff that that we are seeing today is giving some of the front running that we saw post election. Im wondering, how does the talk of a border adjustment tax on tariffs on jer man cars ask your outlook on some of these large companies, the european companies, and how theyre likely to fair . This is part of the uncertainty. We have to wonder if a 20 multiple on trailing earnings is the right multiple concerning the policy uncertainty that were likely to face. One could make an argument that the ratio should probably come down. So i think that will be one of the important tradeoffs, but the answer is that we dont know and the question is will investors want to be compensated for that increased uncertainty, i think that is pretty unlikely. Q 4 earnings are just starting to get reported now. If we get a typical seasonal drift, we could be at plus seven. So we have strong economic momentum, we have survey out today asked what the biggest risk is right now. What do you think it is . I think it is ols uncertainty. We have seen a lot of speculation from what the incoming president would bring. But we dont have a lot of clarity around the specifics. I think that is in and of itself for global. I think that is one of the bilgest tail risks that were looking at . I think it is the valuation. There is two, one that the fed leans too aggressively by overtightening and then the ten year goes north of three. And the dollar could go go up too much. That is one risk, but i think the fed is in a pretty good position not to overreact to anything as they already stated. The other one is just what i said before, valuations are probably too high considering that inflation is likely going to rise and policy uncertainty is going to rise as well. Interesting, that same survey says the biggest worry is the ten year at four, not three. Thank you, guys. Good to see you both. When we come back, a new report says automation may be throwing a wrench into trumps plan to bring jobs back to the u. S. Plus Mark Zuckerberg on the stand today. Then well look at how the big pharma and biotech ceos are reacting. Hello, everybody here is your cnbc update. He considered lifts sanctions against russia if it is willing to make nuclear arms cuts. U. S. Representative civil rights leader john lewis needs a History Lesson and should be grateful for all that suspects have done for people. Walmart says they plan on tadding 10,000 retail positions. The company says theyre planning 6. 8 billion in Capital Investments in the u. S. In the upcoming fiscal year. Results in 24,000 construction jobs. According to market researcher, worldwide pc shipments have fallen for the fifth year in a low. Last year they were down be 6. 2 to just over 269 million units. Now back downtown to squawk alley. Donald trump taking credit this morning, saying with all of the jobs im bringing back to the u. S. , and i believe the people are seeing big stuff, but could Robot Technology affect his plan to bring back jobs to the u. S. Joining us this morning is mckenzies global partner, michael. Thank you for having us. Just a cursory glance, it is jaw dropping half of all of the activities that people are paid to do, how is that even possible . We broke down all of the jobs in the work force. And it is jobs we saw in court rate laps, when you look at that, theoretically after of the activity s could be automated. You cant buy the solutions you would need to automate the activities immediately. So we try to consider some of the factors that come between the possibility and the ability to automate. And they need to be te grated into individual solutions and they have to make business sense. We didnt talk about the costs, so we tried to analyze the cost of the automations, the additional benefit website and a National Adoption curve overtime. Some of the talk that were seeing already from cars to self check out, ordering from screens in restaurants, what do you expect to be the first dominoes to fall that people will notice and feel in the workplace . It is already starting to happen. We talked about it happening fast in mie close and slow in macro. One of them is predictable physical activities. Those are what we see on assembly lines, for instance. Also two other types of activities, one is collecting data, and one is analyzing data. Affecting lower wage and lower skill workers. What we found is that it is something that not only front line workers do, but high paid and high killed workers have for what they do. A third of the activities that we pay people to do include collecting and analyzing data. What is a typical job that would fall into that basket . Health care can be a very critical sector. And physicians, we think what they can do is collect data and analyze what a disease might be. That is the thing that could be most automateble. Other things are considered lower skill activities in the health care field. Were seeing more and more seems be able to provide advice to doctors. Nick, now in im a College Student or the parent of a perspective College Student, how do i dodge this bullet . Well, it is a terrific question. Certainly there will be a smaller number of very high paid and high skill jobs for creating thesetologies. Certainly a set of activities there. I think everyone could benefit more from understands how to use the data. Broadly speaking, i think as everyones job will change, what we found is a significant percentage of everyones job is automateble. That means there is a premium on being able to learn. So it will mean were all changing our jobs going forward. If were a researcher or a physician. All of the things you said are based on technologies currently demonstrated, does it factor in things we dont even know about yet . In our research that we placed on the web, we tried to lay out scenarios for how things might evolve and decline. And what the potential results of that could be, taking all of those factors into account. It will happen foost a person whose job is affected. Over time we have type to adapt while we adopt. Potentially one of the chief dynamics of our time. We appreciate your time. Thank you very much, appreciate it. And Mark Zuckerberg arriving in a dallas Court Earlier this morning. They claim that oculus was based on stolen technology. We have been getting updates from inside the courtroom this morning, zuckerberg was first to call to testify, he was cross examined by the plaintiffs attorney if has been very interesting to hear what main debate is about here. And how the deal to buy oculus went down. The amount was not the 2 billion that was reported, and how quickly the deal happened and how little time there was for due diligence. What about the fine print that says if you develop technology while youre with a company, it belongs to that company even if it was not assigned to you under that work. It comes down to where the technology was developed. A man previously worked for the company that is suing facebook and oculus. So the question is what Technology May he have taken with him, zuckerberg was asked repeatedly if he knew that palmer lucky, one of the cofounders