considering closing brokage office, laying off support staff and requiring some branch managers to generate revenue as advisers, part of a cost-cutting drive as the company comes under pressure to boost profits. morgan spokesman declining to comment. and ni capital regaining some profit. nyse saying it will reinstate firm's full market duties as of next week. joseph kernen, good morning. >> i can sleep in a little later because we can get here like ten seconds. >> is that what you think we should just -- ten seconds? >> why get here early when everything is fine? our director get a little was in but -- >> what time did we -- we were standing here? >> a few. my audio guy is scared. let's look -- what happens? does anyone die? no. a few early stocks to watch. dean foods posted profit. dean is spinning off a part that sells silk soy milk. express scripts citeding a strong second quarter. increased use of more profitable generic drugs and cost savings from acquisition of medco health solutions. the big story yesterday after the bell, priceline hit after hours, the online travel agency -- >> you ever use priceline? >> no. i don't know how. -- better than estimates but they warn weakingen conditions in europe could hurt potential growth. i have seen the shatner commercials -- >> what about -- >> we're converging in a lot of things. look at the uniform that we're wearing today. it's blue. >> a little purple. >> oh, you've got the purple going. i'm channelling the sorkin look. >> the sorkin blue? >> i want to be invited in "gq," too. yesterday i saw that was a sensitive subject so i'm bringing it up again. what is that going to happen? >> one day into the future? i'm not wearing the monk strap shoes -- >> is the day in the future set? >> no, no, no, no. >> how do we even know -- >> we don't. that's why i was trying to say to you that we should not -- >> you said you were going to be. obviously, there's some negotiations going on there with "gq." cover or is that aaron sorkin. >> i was told i could only get cover if we did the photo shoot together. >> you're lying. let's check on markets this morning. futures after what we saw yesterday, another pretty solid session as we slowly creep above 1400 on the s&p. >> wow. >> yeah. and 13168 on the dow. we are indicated down about 0.5%. >> we need like the kernen indicator and just have 15,000 at the top -- >> you do. you left a lot when you were throwing my 30% prediction in my face when the market pulled back at one point. once again, when you were excited about the -- watching the world burn. >> where is lock right now? >> we'll have him on. >> we'll have him back. se he -- >> you remember? >> i remember. we haven't got to labor day. i still think that once everybody from europe gets back from vacation -- >> things are going better in europe, in sharp contrast to what you said last week. >> what do you think about hollande? >> 75% is too low for those rich frenchies. no, i'm not going to -- >> is 81% better, you think? >> what's the -- >> 90%. you bring up eisenhower. during one of those periods that you cited yesterday as a period of prosperity in this country -- >> was it only 30,000 people or 300,000? >> there's a great -- >> the people in france who would be paying that tax is a small amount. >> there a great piece -- we can look at oil board as i talk about this, but there's a great piece in "the wall street journal" today which talks about romney-hood and this ridiculous sort of -- what would i call that? the obama administration has set forth -- they've used a very liberal left wing think tank and analysis of romney's tax plan to call it romney care, the opposite of robin hood -- or not romney hood, romney economics, the opposite of robin hood economics. "the journal" today points out -- what is it -- it's 20% of the taxpayers in this country, the top 20% pay 94%, 94% of income taxes by the top 20%. the middle qintile pay zero. quintile is a fifth. the bottom fifth pay zero, top 20% pays -- money comes towards them from federal government. this is how i don't understand when you're asking about fairness, how -- you want it more fair when the top 20% pay 94%? that's sort of progressive. isn't that kind of a progressive tax cut? >> the occupy wall streeter in me you know how much they live me -- >> to know you is to love you. >> if you look at top 20% earners in this country and that they are taking in 80% of all the income, if not more so, and that's -- >> i don't know whether that's it. is that a number you're throwing out or -- >> no. i'm throwing that out -- >> you don't know if it's 80%. >> i can get you a number -- it might be worse than that. >> the top 1% pays this, top -- it's a progressive tax code. >> it is. in fairness, it must be in the eye of the beholder. have you to define fairness, whether it's earned success is what's fair and getting what you deserve is fair or in galitarian view, the liberal, who said anyone born in this country, no matter where you're born, you should have the same life as anyone else. that's a different concept. >> we talked about what the american dream is supposed to be. >> this utopia, this social welfare state, utopia has been tried and this is what you're watching in europe. >> we also debate these issues. >> we almost came to blows about i.r.a. rollovers again, didn't we? >> it wasn't blows. >> i meant physicifisticuffs. . >> read. >> okay. we have to do some -- >> this awkward moment was brought to you by andrew ross sorkin. >> it wasn't me. >> they decide. they decide. >> did you see the olympics last night? i want a reruling if you saw what happened -- >> what time was that on? >> it was on late. it was on late. >> two unbelievable women that have more -- the beach volleyball, misty may and -- unbelievable. >> ally raisman. >> i didn't see this. >> they gave her a score. everyone's waiting around. here, let me get light on that. they gave her a score, waiting around, and then they raised the score. it was fascinating. anyway, we'll talk about the olympics later in the show. let's get to some of the news. across the pond for the global markets report, our good friend kelly evans is standing by in london. >> i don't know if she got a chance to see that. did you see the diver who fell flat on their back like that? >> andrew, i missed it. i did sit down with gabby douglas and talked to her. she fell on the balance beam. it wasn't the event she was expected to do the best in necessarily, that was a disappointment but she had a positive attitude and talking about how being financially stable is motivating her and she stands to make a lot of money from endorsement deals. so, anyway, i had a chance to talk to her. didn't catch diving. markets aren't diving this morning. >> we saw a weaker tone. the ftse 100 is down 0.5% as bank of england mervin king is giving a press conference, doing latest quarterly, downgraded inflation and growth, not necessarily sounding as dovish as some expected. xetra dax and cac down 0.6%, and ibex down as well. it's not just the u.s. where markets have had stealth rallies, it's europe as well. a little less relief across the bond markets this morning. we can take a look at what's happening with the ten-year in spain, inching back up towards 7% level italy holding below 6%, 5.96%. bunds, we just had a ten-year auction at 1.24% versus 1.31% the last time around. that's roughly the level we're seeing bunds this morning. ten-year gilt is down 1.56%, but we'll keep an eye as we continue to hear from mervin king. we've seen a reaction in gilts, he's talking about balanced risk maybe in the longer term. inflation, some concern about productivity levels in uk. u.s. products report coming up later today. we'll look at how forex markets are responding. the euro/dollar is down this morning, consistent with the other red arrows we've seen. certainly again strengthening against the yen as well. the aussie/dollar is also retreating. standard chartered shares this morning, rebounding up about 6%, although as you can see, that's not enough to turn around the ftse, which is still down in the range of 0.6%. back over to you. >> kelly, that was interesting what you said. you would describe gabby as -- how would you say it, she's in a good place? i mean, she won the gold. she's america's sweetheart. on the cover of the cornflakes box, the last person was like phelps or something. you said her financial stability. i like the way you said that. kind of stable. you've seen what the estimates are for what she's going to -- >> what are the numbers? >> $100 million. >> no, no, no. those figures are high. >> 90 i saw. >> no, but that's -- that's a rumor that's unconfirmed. >> what do you mean unconfirmed rumor? she's could be -- >> joe, joe -- >> don't joe me. she could be in the olympics when she's 20, 24. >> while we could put any big number out there, what we do know is that she's likely to make something in the range of 1 to 3, maybe upwards of $1 million a year in endorsements and sponsorships, and what you're talking about a one time, big ticket potential in earnings is a different story. it's not something nailed down. even a figure like that -- joe, we asked her what she's going to do with the $50,000 she's won as a result of her golds. and she said she was going to save it. so, we'll see if that's still the case once she figures out how to put that money to use. >> i'm looking at -- they're extrapolating her social media fan base. i mean, they actually have connected the dots. 90 million is the number they're claiming. i mean, other athletes with her potential and her star power and smile, would that not be out of the question to think -- i mean, a smile isn't the mitt romney smile, the $100 million i.r.a. we talked about yesterday. >> according to her, she's going to 2016 most likely. she wouldn't confirm that but we'll most likely see her in 20167. she'll get another boost there likely, regardless of what that outcome is. she definitely stands to make quite a bit. she has an agent. she is pro. we asked her, given the troubles her family has had over the years, whether that was an important part of her decision-making. she did say having stability -- >> stability. >> -- motivated her to get to this point. >> i liked that word. one word for it. she's a little more stable. andrew? >> she's more stable. >> with her earnings potential she's in a good place. >> look, i'm very happy for her. i'm back playing the new game today. >> i couldn't figure out how to play that. >> the basketball one? yesterday was the hurdles. do you know about this? >> on google. >> we'll tell you about it in a second. demand for investment grade corporate bonds are strong. we'll talk about it. jim keenan manages $32 million -- you manage $32 billion? that's a lot of money for a young man to be managing. $32 billion for blackrock, also lead portfolio manager of high-yield bond fund. what the heck is going on? >> well, i mean, as the world is deleveraging right now, it's leading to low growth and then you have central bank policy around the world that is really keeping the front end very, very low. many investors globally are looking at low curves, low yields -- >> how long does this last? is this like a -- my question ultimately is, when equities all of a sudden look like they're doing better, if that happens, you're a little run here may not -- may end quicker than we think. no? >> fundamentals are driving tacticals. you look at today's economic environment and you have global deleveraging. look at central bank response to that, deflationary pressures of the private sector deleveraging are being met with monetary stimulus. have you low yields but very flat growth. when you look at risk premiums in high yield market you're talking about getting 7% or 8% above a 70 basis point five-year treasury. >> what do you like right now? if you could buy anything, what would you buy? >> in high yield, because there's a lot of volatility, uncertainty with fiscal cliff and european instability, i still like high-yield market here. what it's pricing in on an absolute level is you're still talking about 700 basis points or 650 of spread premium. you need to see about 40% of the high yield market to file bankruptcy over the next five years to lose money on your investment. in relative value, it's still very attractive. that historical relationship has been about 2 1/2 times. >> did you read bill gross's analysis? did you see this? >> yeah, i saw it. >> he made the bull case for bonds all over again. he said the bond market was dead, what, five years ago. >> bill -- it was -- do you remember his call for 5,000 on the dow? >> that was -- >> that was -- >> bill has -- bill is so rich, he doesn't care -- he will opine about anything at any time and live with the consequences. he's got a billion dollars -- >> this guy is managing billions. he doesn't have -- >> bill doesn't care whether he's right or wrong. whatever he's feeling at the time, he'll say. i would take it with a bill dollar grain of salt, what he says. >> how are you feeling about the economy, now till christmas? i have a view -- >> big limo live, too. huge caviar. >> what's going to happen? >> i think global growth has slowed dramatically. some things where emerging markets were -- central banks were tightening last year to offset, and you started to see that slow in the beginning of the year. european austerity. in the business cycles have been faster during deleveraging. the summer has been very, very slow. you're starting to see economic data pick up from very, very low levels. i think in the short term you'll see risk assets increase. because as economic data is starting to beat expectations it's also being met with more communication from both ecb and fed about potentially more supportive policy. that's leading risk assets to increase here in the short term. >> favorite olympic event so far? >>'ve got to go with gabby. >> i felt so bad for her last night. did you see what happened when she fell? that was uncomfortable. >> soccer was big. did you watch the beach volleyball, the gold medal round is two american teams, so we get a gold and silver medal. watching misty may-treanor and walsh -- did you watch that? they were down. they just -- unbelievable. they were great. they've lost one set in olympic competition. one set. this was like -- i don't know, third olympics, one set, never lost a match. the set, where they lost the set, the next game they won 21-8 when they lost one. >> thank you for coming in early this morning. >> is that why? you're listening to the music, not really considering the content of what i'm saying, it's that important? it's not. coming up, michele caruso cabrera joins us from london with the european fight you have to see to believe. >> i have voices in my head. it's a problem. >> welcome back. michele caruso cabrera joins us live from london, but she managed to sit down with one of the more controversial members -- oh, i thought it was an olympic interview. i didn't understand how andrew would chafe from this. i want to see this because you've teased me. i don't know if everybody else -- >> you'll like it. >> i am, but maybe andrew not so much. >> i'm getting the baby powder out. thanks. >> reporter: all right. is he a youtube sensation because of the absolutely brutal things he is willing to say outloud when he speaks at the european parliament. nigel faraj, leader of uk independence party. he wants to break up the eurozone. >> it's fundamentally undemocratic. it's the european commission that has the sole right to proceed possession legislation, whether it's unemployment regs or environmental standards or health and safety at work. all these things that really affect industry and business. those guys are unelected, they're appointed. there's nothing the voter can do to hire or fire the government of europe, which is, i think, fundementally objectionable. but there's a bigger concern about europe and about whether the whole thing can work. look, there's no way the people of germany and the people of greece want to have one flag, one anthem, one president. and one nationality. we're too different. >> what do you think of angela merkel? >> i'll tell you something. in brooift, angela merkel looks more miserable than in public. >> that is so mean. >> i know, but it's true. i said to chancellor merkel, i said, wouldn't it be kinder to your taxpayers who have just spent 20 years paying for eastern germany to be re-integrated? wouldn't it be a liberation for greece if they were allowed to leave the euro, have a devaluation and be competitive? she said, mr. farrage, if greece leaves the euro, others would leave, too, and that would be the end of our european dream. half of me is tempted to say, i'll drink to that but what she's really saying is we don't care how many tens of millions of people we force into misery, starvation, unemployment, we don't care about the human suffering of this, we must preserve european project. >> standard chartered, any thoughts? >> i'm not going to sit here and defend everything the banks have done but i do say. begins to feel like a witch hunt against anybody involved in banking and financial services. i'm pretty unconvinced at the moment that standard chartered behaved badly. >> reporter: libor scandal, should bob diamond have lost his job? >> we're a witch hunt country. whether he makes his bank huge amounts of money or not, there is nobody, it seems in public life, prepared to defend a real capitalist model. as far as i'm concerned, if i was the boss of a big financial services company, bob diamond is the kind of man i want to impe. >> reporter: if you want to do a search on youtube and see the things he says out loud at european parliament, he invults the head rumpoy over and over again. we'll see, maybe in the next round of elections, guys. >> an interesting comment he said no one -- i don't know if he said in public a lot but no one willing to advocate for capitalism at this point almost because it's politically incorrect. you seem like the old concept of robert barrons and brutal capitalism, survival of the fittest. people are afraid to embrace what's -- people really are afraid. you know why i think, did you see batman yet, the new one? >> reporter: yes, i did. >> did you see the judge? he was actually in the first batman. he played the scariest guy in the first batman of the trilogy but the judge sitting up there sort of in front of the occupy wall street mob that -- and sending people out on the ice to fall through the ice on the river and die anyone who's made more than 40,000 a year, basically. >> reporter: right. >> that's what people are worried about in the future. >> reporter: absolutely. you know when i saw that scene? you know what it reminded me of? the old black and white footage of communist taking over cuba. i swear, they might have borrowed that actual setting because it looked exactly the same. >> or the french revolution. off with their heads. we have to go. thanks sflu when we return, we'll talk about the street's take on the house of the mouse. disney's quarterly results and what they tell us about the consumer. born with.g you're and inspires the things you choose to do. you do what you do... because it matters. at hp we don't just believe in the power of technology. we believe in the power of people when technology works for you. to dream. to create. to work. if you're going to do something. make it matter. in here, every powerful collaboration is backed by an equally powerful and secure cloud. that cloud is in the network, so it can deliver all the power of the network itself. bringing people together to develop the best ideas -- and providing the apps and computing power to make new ideas real. it's the cloud from at&t. with new ways to work together, business works better. ♪ riding the dog like it's