Transcripts For CNBC Squawk Box 20161011

Plane when attendants get on and tell everyone to turn off their phones. Samsung shares in asian trading, lets take a quick look, down about 8 at the moment. Samsung strugsles have helped shares of apple we should note because the stock jumped hitting its highest levels since december. So well see if really all those folks that were getting samsung you running to the apple store. Because we actually had at t mobility ceo on squawk alley yesterday and i asked him are people actually getting, you know, sort of shuffled into other devices and he said no they are likely to get an earlier samsung device than switch to another carrier. They like the eco system and like it and stick with something they know. Were you able to see what we showed the picture . I did. Charred. Youre not surfing the web any more. No phone calls or anything. Right . Wow. Talk about a phone named brick. There it is. Its not funny. But wow. That would be frightening in your pocket. Thats what they say. In your purse. In a bag. Anywhere. Then they say turn off your phone. What if thats your phone. That is Airplane Mode right there. They are saying if you got one what if its your own phone. Turn it off until you replace it, obviously. Got to go the store. Ive been where mine is then couple of hours later i see all the emails. I missed not like a tablet or a hover board. I can go a day without my phone. When i turn it back on i see what im missing. Then like nothing. Your saying we should email you more. No. Just that theres the feeflg anxiety and youre not online. They say its like a drug. The world used to be social media is like a drug. Some kind of stimulus thing. Long term effect. My kids are very rarely not i mean my son has an iphone and ipad. Why do you need two at all times . I dont know what the long term is. If you get them galaxy note 7 they will have zero. Other news late yesterday we heard from verizon ceo on samsungs phone debacle. Heres what he said. This is by far the biggest concern ive seen in cell phones during my tenure. I think they are a little surprised that the fix didnt fix things. So its a major black eye for them but at the end of the day they will recover. Verizon, of course, set to acquire yahoo and mcadam commented on yahoo s recent data breach where the information from 500 million users was stolen. Not that shocked. I think we all, you all live in the internet world. Its not a question of if youre going to get hacked its a question when youll get hacked. He gave some insight into the investigation of yahoo and that hack attack saying the firm is about 50 to 60 done with the probe of the issue but you guys have had conversations on this show about whether it works in fact, halt the deal, whether they would use it as an opportunity to walk away from a deal, Tim Armstrong on the set said it was something that has to be investigated. Maybe they are looking for a discount. Youve seen the stories. I think but everyone is getting hacked these days. Everyone is doing it. Then the question is how do you decide how much that is worth . Yeah. Hundred million billion dollars. Get the old spokesperson back, sprint. That guy that for sprint its brilliant. They were very, when i said you lost him but yeah we got a better one jamie foxx. Jamie visited venezuela and said hes 100 behind the revolution. 100 behind the socialist revolution. Not sure whether hes cashing his checks any more from verizon. Thats not the first thing you want your new long term spokesperson i wouldnt. Im not sure the jamie foxx topic came up in the conversation. I would have brought it up in terms of marketing. You know who im talking about. Shes so nice and helps and funny and innocuous. Not visiting socialist countries where people are wading through trash cans and say i approve of it. What if you had a noncompete on the prior spokesman or do you think that guy was just or never imagined someone else would use him. Thats probably it. You think you have to put a noncompete. Over the years kion is so recognizable. A spokesperson for wall street firms. You were prudential. Still prudential. But youve gotten big promotions because now youre across asset classes. The if someone dime you look fork a solution to a thematic issue, we have somebody who specializes in themati krrc equ solutions we have Steven Parker here. Before we get to that other corporate news. New development in twitters search for its next step Ceo Jack Dorsey send an internal memo to twitter employees defining the company as a quote peoples news network. The firm has struggled to define its core purpose, recently made a push no news and sports. The memo didnt address the sales process but dorsey called on employees to help the firm strive to be first place people check to see whats happening. Release of that memo did give a little bit of a boost to the stock but still down pretty sharply in the last week, down 23 after southeast reports that bidders wouldnt be making bids has surfaced. Peoples news network. Have you heard that . I just like the role or what i use twitter for as a news feed. I dont like some of the other aspects. I wonder if they can elevate that out. I guess its difficult. Separate out the average tropical thats out there just being obnoxious and anonymous and able to just its online graffiti about whatever subject. Then theres the bona fide news organization. It requires anonymity. I dont need to see and cramer lately i seen has been talking about you is to be a masochist. You can keep him on but, i dont know how to do it. Is there a good word for the anonymous people that you like not trolls but angels. Just the overall word i use is cess pool. U. S. Equity futures at this hour have been weak for most session after a pretty good day yesterday. We didnt hold the highs yesterday but did close hire. Today were indicated down 20 on the dow jones, down three or so on the s p, down three and a half on the nasdaq. Overnight in asia, shanghai has been slowly creeping higher. Almost hitting 3100. I remember when that was the reason the fed wasnt going to do anything for a while. Then when that was down in the mid2000s and we didnt know what was happening thats actually performed pretty well recently. Take a look at european equities which were mixed this morning but mostly, you know, sort of right around the flat line and then crude prices, which were pulling back in a new report today, the International Energy agency says that the Oil Market May rebalance faster if opec sticks to its target but what iaea note its hard to tell when this might happen until more details emerge and then finally currency, still the pound near multiyear loss and euro, 1. 11. Might be a good time to visit. The bond market will resume trading today, earnings season kicks off at the end of the week. For more ed kion is big picture ed portfolio manager. 113 billion in assets under management hence the circles under his eyes and weight on his shoulder a lot of responsibility. And then, then who came up with this. Steven parker youre not working for somebody at the thematic equity solution. Youre the head. What does that, i want to know who came with it, what the hell does it mean, and do people, are suddenly all of our viewers are saying i need some solutions in my thematic equity . He might. Theres themes in the market of ideas how they play out. These are solutions . Everything is a solution. You take a theme and come up with a solution. No kidding. Sounds so simple. How many different themes are you working on at any given time . Usually four, five themes going on at any given time. I dont know we have time foreall five. Give us a couple of the major ones. One of the big things were looking sat a shift back into emerging markets. Theres a lot of focus on whats going on here in the u. S. And what people have lost sight of is whats happening in some of the emerging markets. Its one of the worst performing places to be in the last five years. Because of that youve seen people exiting pretty much wholesale as weve seen stabilization in Commodity Markets and the dollar that sets you up for a much more productive outlook for emerging Market Growth and earnings. I think one of the things that you mentioned was looking beyond the election looking beyond the fed, looking beyond all these things to figure out where well be once these sort of, you know, these arent the major eventually these things will fade hopefully. This is what markets will focus on in the next couple of months but the reality is politic, geopolitics rarely have even the fed eventually . We got to get out from under that i think we will. Reality even if the fed moves in december or whenever they move they wont move that quickly. You do emerging but that doesnt mean you ignore domestic. No. Absolutely not. In fact to your point on the election one of the things were doing, we dont believe in investing based on trying predict an outcome of the election. What im looking for is opportunities where markets are getting oversold because of concerns around the election and policy. Rarely does actual policy match the rhetoric during election. So right now a place thats getting interesting for us is hearth. A darling sector for a number of years thats come under scrutiny. Long term story from an earnings perspective from a demographic perspective is still strong but the shares is one of the worst performing sector. Thats where were ramping up our exposure. If Hillary Clinton were to win theres a view that it could be much worse for the Health Care Sector than it already is. Theres a view and thats why weve seen how stocks underperform the way they have. If you look historically the reality of what any politician, any president is going to be able to implement particularly because, you know, in all likelihood youre look at a divided government, i dont think youre going to see a massive change thats going to be commensurate of the under performance of companies youve seen. You won haves much time but what stuff you do is not nearly as complex. We try look longer term about what things we think will influence returns across asset classes. Of course what happens in the election and fed move will matter but in the long run were looking at what sort of growth rates do we expect. I think well have Slower Growth and lower rates than we used to think of is normal for many years in the future. What does that mean for value versus growth. What does that mean for returns of stocks which is bonds, commodities. What does it snaen i think well see somewhat lower returns in the future than we have in the past. Thats pretty much a consensus call now. Also within markets you might find some things that have worked for long periods of time may not be quite as effective in the future. I think you have rich bernstein my old colleague and friend on the show, one thing rich has said for years when growth is scarce, Growth Stocks do better. If we have a prolonged period of slow growth the old tradeoff might be more in favor of growth. We all have conversations every day about how returns are going to be lower Going Forward because growth is so hard to come by. Do clients understand that . When they see their returns at the end of the year is that something youre able to convince them is okay. Ironically this year is turning out to be pretty good year. Over 7 on the s p and still a couple of months to go Nuclear Program has bean good year. We havent seen that down shift. If you were invested in the s p. Thats right. Barclays ag is up 5 to 7 . Clients have yet experienced what we think will be a down shift in returns. So its going to be tricky especially for institutions which are counting on higher returns or individuals who are counting on higher returns to fund their retirement. If were right thats more challenging and more difficult to eke returns for the market. More fork tactical. 1. 75 gdp growth. Awesome. 7 growth. Thats great. I remember 30 years at 30 . 4 , 5 gdp growth. This is not great. We can do better. We can do better than what were doing but going to be tough. We were at 18,000 two and a half years ago. Weve gotten nowhere. With zero Interest Rates. We can do better. Its not realistic to get back to 4 growth with much slower we talked yesterday, youre looking across asset classes. Youre missing bonds. Its hard to do what you do when you cant oh, yeah. We decide, you know, asset allocation. Only one game in town. Bonds are up 5 this year. How about another five . In my portfolio mostly using bonds as a hedge because bonds have been very effective. Hedge to making money. 5 return isnt anything to sneeze at. Actually lasts about five years. Bond return each year at the beginning of the year has been called impossible. My colleagues in prudential and fixed income looked for spread and opportunities twin bond market and been able to do so. With the bottom up quite credit base. If im at a Cocktail Party and somebody says the one thing i cant find is a thematic solution to my equity. Not as interesting. All right. Millennials are happy. Less experienced. We are experienced. Coming up when we return well talk politics opinion fridays lewd audio reporting of donald trump hurting him in the polls and facing high republican defections. John harwood will join us and talk more about that story in just a moment. Is welcome back to squawk box this morning. Hillary clinton taking an 11point lead in the latest nbc news wall street journal poll after fridays audio recording of that lewd comment that trump made and before it came out, but the poll took place before the second debate. Now john harwood joins us with more to break it all down. Good morning to you, john. Reporter good morning, andrew. The Republican Party sane full blown cries because of the remarks and the direction that the Trump Campaign is heading. Lets go over numbers. In september in a four way race including gary johnson and jill stein the libertarian and Green Party Candidates Hillary Clinton was ahead by six points, 4337. Now this poll taken saturday and sunday, after the news broke before the debate, shes up by 11 points in a four way race, 6 4635. In a two way contest with trump, thirdparty vote shrinks as you get closer to the election. You had a sevenpoint lead in september for Hillary Clinton, 4841. Now a 14point lead. 5238 over donald trump. Thats gigantic. And then the reason you saw so much panic by republicans over the weekend look at these numbers who do you want to control the congress after the election, democrats had a threepoint lead in september that quickly shot up to seven points. Now thats a generic ballot question. You dont know how that will translate into individual races. We dont know whether the house is truly in jeopardy or not but many recognizes apublicans are its moving in that direction. Thats why you have so many people moving away from donald trump. Donald trump by rallying the base at the debate on sunday might may have raised the cost of repudiating him moving away. But these poll numbers add new pressure. Now for Hillary Clintons part shes trying to balance between explicitly taking advantage of trumps problems and talking about things that have come out about him and her own positive agenda and just this morning shes announcing a new middle class tax cut sway doubling of the Child Tax Credit and making it refundable for more families. Shes trying to balance a little bit the negative on trump and the positive for her own agenda, see how that works for her in the next few days and were going to update this poll because were adding new interviews in a release that will come out later today because that will take account of what happened in the debate on sunday night which this poll did not. How different do you think this will be because when you think about it was very interesting. Those comments last friday dominated the news over the weekend and in the midst of it all i could see where this poll would land and yet before this poll came out yesterday morning and before paul ryan, word leaked about his new position relative to trump it seemed that there was a feeling that somehow that trump had perhaps won the debate on sunday night and actually rallied back to some degree. Reporter well, there are different ways of deciphering or describing whats a victory. Donald trump unquestionably succeeded at the debate in thrilling, rallying his core support. But thats only about 40 of the electorate. Thats the problem. In terms of the broader electorate what he needs do is add votes to win. The reaction of republicans were seeing reflects their increasing conviction that key not win and so they are trying from text themselves and thats what paul ryans mess satisfaction on this conference call. Im not going defend him, im going cuss the house and leave to it members to take the position that they think will help them win reelection. They have a 30 seat advantage in the house. Thats pretty big. There havent been many more than 30 seats even competitive. So the democratic chance until the last few days has rested on threading the needle and basically winning all the close ones that republicans now hold. The potential is that whats happening now and, you know, you saw donald trump go after some of those members yesterday, calling them hypocrites and saying paul ryan should focus on other things. The Playing Field could expand. The wikileaks, all of these emails that have been disclosed relating to Hillary Clinton, how damaging is it . Is there a smoke gun in there and how is that changing the discussion or is it not . Reporter you know, i think all of the emails that have come out by this Wikileaks Dump and previous one from the state department have all tended to reinfor the same idea that Hillary Clinton and the team around here very cautious, very calculating, playing the political angles, trying to figure out what will fly and what isnt, what could be embarrassing and whats not. It is politician behavior. So it confirms the idea that shes a calculating politician. Theres no question about that. However, i think after being in politics for 25 years that is a fact that people know about her and her husband. So im not sure that other than like her i dont see how this is new information about Hillary Clinton that changes these long settled views. It deepens the long settled views and some people are troubled by that but i dont think its Game Changing information. Thank you, john. Great to see you. Were continuing our series on the impact of the election on Small Businesses. Kate rogers joins us now to talk wages. Good morning. Wages have bean hot topic on main street over the past two years. Four state Ballot Initiatives to hike wages and president ial candidates are pushing higher pay. Hillary clinton wants the federal minimum wage from 7 12 to 12 hour while donald trump supports an 10 hour wage hike. But own of st. Joseph equipment in lacrosse, wisconsin said she disagrees federal increase. She pace her workers between 14 and 15 an hour but says a federal hike would cause her to have to scale up even more. Living here in western wisconsin and in the midwest our cost living is much lower, house cigarette lower, education is lower, gas is lower, child care is lower, education, all these things are lower. So were not on par with the different coasts we have on the west and east. Were middle america. Meanwhile denvers judy disagrees. Paying workers 12 an hour is good for her business. We found that all of a sudden people could get their car fixed when it broke down. They could get to work better. They could get daycare when their kid was sick. So we had employees who were a lot more productive and our turn over pretty much disappeared. No matter which side youre on this wage issue matters to main street. Data from paychecks found on a scale of 2001 five, 47 of Small Business workers rank wage increase as very important or important for their businesses. That data also found now granted before this hot mike week from last friday, but that 51 of Small Business owners said they were still in support of donald trump, 25 they were vote forge Hillary Clinton. Rest were undecided. Weve seen over and over again Small Business owners to be more in support of donald trump. Im gload see you have places from different cities. The cost living is so different across this country. Wages and what a living wage is so different across the country. Absolutely. Like we said in wisconsin shes starting her workers between 14 and 15 which is an excellent living wage. She says if the federal minimum hiked she has to scale up. On top of that shes getting hit with obamacare. She said 30 last year. Those are things that really impact Small Businesses and makes it tough for them to grow. Coming up former senator bob kerry sounding alarm warning Social Security is one of the biggest problems we face and neither candidate is talk about it. Senator kerr injury will join us next. As we head to break take a look at s p 500 winners and losers. Guess what guys, i switched to sprint. Sprint . Im hearing good things about the network. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your Small Business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Seen it goes we found a sweet answer in a river of champagne welcome back. U. S. Equity futures at this hour are indicateed a little bit lower. They pare their loss. Do 20 earlier. Nasdaq indicated in positive territory, in green half a point. S p down too. Race for the white house entering the homestretch and one issue that some are calling on the candidates to address and thats Social Security. The clock is tick with the Social Securitys is trust fund estimated to run out in less than 20 years and joining to us talk about it is bob kerry who served as senator of nebraska and author of a recent oped can someone please make the candidates talk about Social Security. It is true. Nobody is talking about entitlements this time around. What happened. In part because they understand that seniors vote, and they basically pander to seniors and tell them something other than whats the truth. All of the president ial elections i remember over the last, i dont know how many years entitlements come in invariably because somebody wants to cut them. Chris christie started to talk about them and got beat to death and shut up about it after the first or second debate. When were you in the senate. 2001. W. Designee came in afterward. W. Said in his second term said i have earned Political Capital and i intend to spend that Political Capital on Social Security and no one did anything. Bill clinton did the same thing. Its been bipartisan rejection. The problem is the president is term limited to two terms. For somebody who says i cant run again easy to take this issue on. My view sue have to assume that theres a plan in place and called the do nothing plan. Right now almost every be of congress and both president ial candidates support the do nothing plan. What that plan does according to the trustees is it cuts benefits in 18 years. In 18 years benefits get cut. If youre under the age of 40, they get cut a lot. Next president will only be in office for max eight years. How do you engender a sense of urgency. Up cant let people who support the do nothing plan to get away from the program do you support cuts in program. You have to say to secretary clinton and donald trump do you support cuts in the program. For anybody that is not going to be eligible for another 18 years those individuals are going to have big cuts in the program. You have to start asking them why do you supersnort anybody who comes up with a solution are going to either raise taxes or make adjustments in the benefits and they get the crap kicked out of them for proposing something. You have to go after people who support do nothing and say why . You know what actual answer is. Where do you come down. Up have to do two things. You cans transfer your way out of this program. This is a transfer program. One of the i think bad things we say about Social Security all youre doing is getting out what you paid in. Theres no trust fund. So you cant transfer your way out of the program. You have to have a parallel program that helps people of Median Income accumulate enough and convert their savings into income to supplement Social Security and then with Social Security itself its the same old thing. First of all you need more growth. More growth you got easier to solve the problem. Whatever the growth plan sue have to make some adjustments in benefits and have to make adjustments in the revenues. Would you mean test . We already means test. I dont object to a means test because we have it in place. Were tracking Social Security benefits over certain income threshold. We have progress income tax. You are already taxing it. If you look at most people say over 250,000 a year of income its likely they are paying in a lot more you just suggested a privatesector complimentary account is that what youre talking about . One of the things you say you want to do that . Thats what were doing now. Arent you a democrat . What happened to you. Who knows. Thats a slippery slope. Are you a democrat in todays world . In what . In todays world your a democrat . I was are you a socialist. No. No. You dont sign on to the current my own view is if members of congress knew how to allocate capital they wouldnt be in congress. When you talk about Social Security your specifically talking about just Social Security or entitlements more broadly because thats the other piece it thats not talked about at all. Im talking about entitlements as the whole. If you take the retirement entitlement the ones you get as a consequence of reaching an old age which both hillary and donald trump have reached, and they ought to be talking about it and feel guilty because they have income to supplement Social Security and very often young people dont. Yes im talking about the larger problem and andrew, if you take the current spending just on Social Security Long Term Care for medicaid and medicaid take that total spending and divide it by the number of employees by privatesector employees almost 20,000 a year. Young people are getting doubly screwed. Why saint higher priority for voters. You dont vote. I vote. You dont. I know how important these programs are. In large numbers old people vote. In low numbers young people vote. Two kind of people in politics. Theres people who can count and people who lose. When we start to count we count up the voters and look at the elderly and know they are going to go vote. Donald trump says im not going to make any changes and hillary wants to expand the program. Relatively easy to make a promise to people who are going to vote in large numbers and then not disclose people will vote in relatively not small numbers that they are going get screwed. So many debates and Public Forums have been town hall formats. Why havent people been asking about it. Part of it is people in the press have got to say that there is a plan. Its called the do nothing plan. Hillary supports it. Trump supports it. Almost all 535 members of congress are original cosponsors of the do nothing plan pup have to say okay what does that plan entail. What it entails is that in 18 years there will being significant cuts. With the average age of congress being over 60 it wont have an impact on them. Wont affect hillary or trump. Not going to affect congress very much because they have a Retirement Program as well. They have a revolving door that jacks up their net worth. Wont have an impact on people who support the do nothing plan. Until the press puts pressure on these guys youre supporting a plan, heres what the do nothing plan does. There will be a lot of millennials voting this year. I hope there is. I hope its approaching maybe they will think about the experience and qualify for something. May trite once you know what i mean. Im not trying to whack millennials. If im organizing a campaign and youre the cain and youre a millennial. I am. If im running your campaign ill tell you be careful about Social Security and medicare. Dont tell the truth about Social Security and medicare because youre apt to lose. Well ask the questions. Thank you for being here. She wouldnt be younger than millennial. She might be older than a millennial. Him not to sure meanwhile you are a dinosaur. You jould should be injur in jurassic world. Dont change. Coming. Up, talk about tech, health care and media. Linked in unveiling its next wave of list. Dan roth shares the top name list. Heres a quick check on whats happening in the european markets right now. Announcer coming up Hedge Fund Titan leon cooperman gearing up for a big fight with regulators. The sec has charged him and his firm with Insider Trading. Hell tell us his side of the story at the top of the hour when he joins us right here on the set. Its an interview you dont want to miss. Right here on squawk box. 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 whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Time now for the executive edge linkedin out with its annual next wave list which features Young Professionals making waves in Industries Like tech media and health care. To break it down, dan roth executive editor at linked in. You guys have 450 million users. Thats right. How do you finds 100 or so . We use a lot of data to boil it down to 100. Were looking for things like what industries, who people in Certain Industries looking at most often. Who are getting mentioned in the news. Then we ask, we have an editorial overlay on dope of the data that ask ininfluenfluencer. One of the interesting things we found out people who made this list have 25 times the. A connections that most members have. These highly connected people who are clearly spending a lot of their time going out meeting other folks and because of that their profiles are getting noticed and making things happen. Quick study of the list will make anyone feel unproductive just with their accomplishments, but these are people weve heard of before. Founder of impossible foods, people who are Venture Capital partners who sold companies to you per. Were you trying to find people who would have some sort of headline value or trying to find people that were lesser known . Exactly the opposite. Most people on the list are not that wellknown. There are a lot of people on here who are definitely under the radar. If you look at some of the industries. One example if you look at the larger trends one of the interesting parts is that there are a number of people who are in very unsexy markets, taking Consumer Tech and applying it. So a woman who is remaking the entire scrubs market and using fast fashion as a way to go after nurses and bring scrubs to them, her company is doing phenomenally well. This guyupas clevela, jonas cls walking through halls of walmart at night and looking at inventory. These are behind the scene kind of things happening that are using the tech that weve seen in our every day life and applying it way down the value chain. In five years from now is there like a next elon musk on the list . Is there one person you want to highlight. Im not sure who that person would be. Theres a number of people all of us will end up working for at some point. Theres a woman at google, very interesting who is work on things like how to use a. I. To take on tropical comments. And shes also looking at ways to use isis recruitment techniques and reverse them. Basically when people come on to tube and seeking isis recruitment they find google produced antiisis videos. So shes using marketing, a. I. , youtube as a way to reverse it. Can i ask you whats a linkedin still question. In term of the metrics, how connected are people, how much they are using the system. There are these people who are like professional social networkers you know what i mean. They seem to spend all their day, i dont know how they have the time to do whatever their technical job is. They used to have a great title. You know what im talk about. You with me . How does that happen. First of all we did look how connected people are. Thats not one of the things we were measuring. It turned out to be important. What we were looking at much more if youre in an industry whose profiles are you looking at. Basically if youre in the Automotive Industry who are the people in the Automotive Industry who other people are looking for. Who are the recruiters are trying to chase. Im not sure about that google thing with isis. What if somebody searches republican principles and then immediately directed to google already does this. Heres a better way. Or if you search trump and it comes up lets talk about hillary. This might be a better thing. Google they already do that. They aggregate things that facebook too that shows their political leanings. The question is who is going to become the next elon musk. Who will get the biggest govs for their company . Thats not what i meant. Why is 35 the age cutoff for this . We just heard from bob that millennials arent voting and dont care about the important issues. He didnt even tell us the way he really feels. To find people who will be the next elon musk. Who are going to lead big movements. We want to try to identify them now before they become these leaders. This isnt a way to say these are incredibly successful people. What we want are these are people to keep an eye on if youre hiring, if you want to work for someone. If you want to have someone in your company leading some big thing going on. Check out these names. Where can people find the next wave list . Go to linkedin. Youll see it in your feed. And we are search for the linkedinnetwave. Thank you for coming in. Coming up when we return, my favorite food. Lobster. Prices hitting an 11year high. 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The growing popularity burger and lobster chain is driving the demand. According to earner barry, the wholesale price of lobster is at 6 a pound and thats up 3 from 3. 70 back in 2009 which is not that much, is it . Sorkin . 6 a pound . They put so much lobser in the rolls. Couldnt they put a little less lobster in the rolls . More butter, less lobster. Theyre charging you also for the shell too. Sometimes the meat isnt as good. Sometimes it can be tougher. So you kind of dont want a massive lobster. Im just saying the weight of the average loxer. Solving the important issues of our time. Like a steak nowadays is really expensive. You like it precracked or not . Oh, yeah. Id rather have it ready to go. Just there. Taken out. You like taking it out of the claws and stuff. I dont. You like it done. Yeah. Coming up, cooperman fighting with regulators. Hell join us later on. Switch. Sprint . Im hearing good things about the network. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your Small Business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box here on cnbc. Im joe kernen along with Andrew Ross Sorkin and Kayla Tausche. The dow is now down a little over seven. And the nasdaq is going back and forth. As you can see unless you are on sirius. But it was just down a couple of ticks. Now up a couple of ticks. Theres crude which is still above 50 but down almost 1 today for west texas. Heres whats making headlines in the Business World this morning. Samsung has halted production of its troubled galaxy note 7 smartphone. Were hearing the halt is permanent. The massive recall of the phones could cost the company as much as 17 billion. Small Business Optimism declined slightly in september. The monthly index fell to 94. 1 in september from 94. 4 in august. However, there was a surge in the number of Business Owners who expect better conditions in the next six months. And were expecting alcoa to report earnings later this hour. Should show profit of 35 Cents Per Share on revenue of 5. 3 billion. Thats according to consensus. It will be alcoas last Quarterly Report before it splits into two companies which is still on track. Yesterday we heard from verizon ceo on the Samsung Phone debacle. Heres what he said. This is by far the biggest concern ive seen in cell phones during my tenure. Theyre a little surprised that the fix didnt fix things. So its a major black eye for them. But at the end of the day, theyll recover. From samsung to yahoo, mcadam also commenting on the recent data breach where the information from 500 million yahoo users was stolen. Not that shocked. I think we all you all live in the internet world. Its not a question of if youre going to get hacked. Its when youre going to get hacked. Verizons chief also gained insight into the investigation of the hack saying the firm is 50 to 60 done with a probe of the issue. In another corporate news, a twitter search for its next step, jack dorsey sending an internal memo to twitter employees defining the company as a peoples news network. The firm has struggled to define its core purpose and has made more of a push into news and sports. The memo didnt address the sales process, but dorsey called on employees to help the firm strive to be the first place people check to see whats happening. And i dont know. Peoples when you start anything with peoples, it sounds like china . Yeah. It sounds communistic to me. Like workers unite. One of the only countries where they are not. Right. And so i dont know how that applies to the twitter or not. So theres a way for me just to get a news feed. No, no. You can get a news feed of verified users. So youre only looking at people who have the little blue check mark next to them and the likelihood of them being trolls, if you will, is much less. And its an art to actually send out tweets too. Thats just, like, a huge as we know. Weve seen so many instances. I watched you do it. You barely retweet something once in awhile. You never do any of the you know, youre not there every waking thought putting out there. Thats dangerous. Youre asking for trouble. Why would you do that . Right. Plus you can get a twi. Tweeting while intoxicated. That can also happen on a friday or your case, any day of the week, maybe. Right . Youre out developing sources going to dinner and stuff like that. You might have a glass of wine. We have not talked about this. Because of this show actually during the weekday virtually never. Its too hard. People still say that to me. You know, my job really isnt youre not really conducive to drinking on a weekday. When you start drinking at 10 10 00. I get off early. As long as i stop before 3 00 in the afternoon. Your bedtime. Exactly. We got some news on the soap opera that is theranos this morning. A hedge fund is suing theranos accusing the Blood Testing Company of using fraudulent methods to attract millions of dollars in investments. It says theranos lied about its work concealing the truth about its commercial viability. The company says they will fight it vigorously. Last week theranos announced it would close its labs and Wellness Centers and cut 40 of its workforce. Les moonves planning to seek autonomy from the redstone family. The redstones are the broadcasters controlling shareholder. But a potential merger between cbs and viacom, moonves is seeking to gain as much power as possible. Im sure hes in the drivers seat on this too. The term they are negotiating with National Amusements which is the redstone familys Holding Company are not clear yet. As i said, hes i think they need him more than he needs them, probably. Hes never really had a hiccup. Hes got this rep as being really good. Although interestingly the two executives of viacom and cbs were oftentimes at the top of all the ceo pay scales. So is he going to be making double if he runs both companies . Well, maybe. I dont know. Hell be up there. Hell be up there. He will be. He does pretty well for himself. Was it either bill carters or the other guy, either one you read about moonves and he does seem to have like a midas no, he has magic hands. William peterson who was the big im dating myself. Was he csi originally . So had him for like five years paying him not to do Something Else because he knew Something Else was going to come along. Then that comes along and it was a huge show for ten years or whatever. Can spot talent and concepts. Does it all. You know, ive i yank his chain. Survivor really . Whos watching that . Survivor 38. Its working. Thats a sad commentary. Another big brother . How crazy do you have to find people to stick in that house now to find another big brother. Those walls are closing in. Thursday night football. Im not talking about that. We have thursday night football, by the way. With cbs. I dont like to think about them. Okay. Onto another business topic this morning. Cocacola buying stake in africas largest coke bottler. Thats following inbev coke will negotiate terms of the deal in the coming months. Like jeff probst is making 20 million. This did areally . God bless america. So if its entertainment, youre okay with that money. Its ceos you dont like it. The marketplace. All right. And Marathon Petroleum is suing bp for breach of contract in sale of a texas refinery. Marathon took over in 2013 and claims it immediately began finding problems in violation. Yum brands meeting with investors as it gets ready to split off. Susan, good morning. Good morning to you. You know, yum has had a long presence in china being the first restaurant to open up in china back in 1987 with its first store front. And just for historical context, you know, yum is to china what mcdonalds was to the soviet union in the 1980s. That is giving a communist country a taste of capitalism. You want to fast forward 29 years and yum china still has dominant market share at over 23 . That market share continues to shrink each and every year. And the china business, well, its volatile. You saw in the recent Earnings Report missing badly to what theyre calling negative sentiment stemming from the ruling of the South China Sea against china. And also past food safety concerns has also hurt yum sales as well. Thats kind of the reason why activist investors in yum are looking for this spinoff. They want to isolate the volatile, unpredictable from the rest of yum. So investors and analysts want some clarity on the china business. They want clarity on financials. They want to talk about strategy Going Forward especially if same store sales havent recovered. We are expecting the spinoff to take place on november the 1st on the New York Stock Exchange. Analysts i spoke to, they also want some clarity on pricing. Expects yum china to be priced at 33. That represents maybe 21 so its not cheap. Also looking at yum itself to be priced at 64 and change. Programming note for you, youre going to get more clarity on cnbc with an exclusive with yum china ceo micky pant. All right. When we return on squawk box, oil and earnings set to take center stage on wall street. Well talk with drew mattis. The dow has made its way into the green. Squawk will be right back. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Welcome back to squawk box this morning. Oil prices close to a oneyear high on an expected outlook guidance. Steve sedgwick is at a conference in istanbul and joins us with more. Steve . Reporter yeah, good morning to you. Very interesting you should say rather than at the high. They hit the high yesterday on the back of comment from the saudi oil minister. Then later on really accelerated with brent above 53 bucks on the back of comments from mr. Putin. Mr. Putin the russian president said russia could join in any output freeze if, indeed, opec were to get its act together. That was a big if. Perhaps now maybe the second most powerful man in russia, thats igor sechin on the front says were not getting involved in this. Why should we . Were not going to join any freeze. Actually going to cut as well. What has that done to markets . Its taken a little bit of the froth out of the market. Of course if igor is saying one thing ear Vladimir Putin is saying another, what is the russian policy if opec is to act . Of course opecs pretty much now on countdown to the key meeting on the 30th of november to see whether they are going to cut at all. I also spoke to the vp of look oil. Another massive producer in russia as well. I said look, sechins saying one thing and mr. Putin is saying another. He said if mr. Putin is saying we will freeze and cut, we will freeze and cut. So the water being very muddy. Im going to speak to the panel and try to get to the bottom of this as well. But the truth is were not going to see balance in this market unless we see some form of aggressive action from the opec group. And he was telling me that the fact of the matter is youve got 3 billion barrels of stockpiles out there. They came up just a little bit in the most recent monthly report. But stockpiles are huge and it would take a shift in production from someone, from somewhere in order to get those stockpiles down. And find some form of equilibrium. Its great hearing what they have to say. Great for oil traders too. Back to you. What a delicious mix. Thank you, steve. Delicious. I like that. Oil and earnings taking center stage on wall street. Well hear from alcoa in a few minutes. A lot of times thats the beginning of the trade. Out of all the things we talk about, drew, which do you think starts taking precedence . Will it be earnings . That sort of micro. Will it be macro gdp data or the fed . Well, i mean, i think the markets pretty shortterm focus. So i think itll be earnings for now. Well, theyll try to look at the election. I dont think anyone understands how theyll look at it. I think the earnings numbers are important because everyones looking at it and obviously, you know, as multiples go up and up and up and theres an earnings miss, you have a bigger multiple to miss off of. So you get a little bit more there. I think at the end of the month, well shift back to the macro. People will start focusing on the fed report. The beginning of the next month. The fed meeting beginning of next month. And then think about rate hikes again. Yeah. And, you know, were diverging from the rest of the world obviously. But it feels theyre coming along a little bit with us. I think germany is positive now. And maybe nirp starts to fade a little bit or are they still full bore over there . And if theyre full bore, it ties up the feds hands. Its been a positive development to see people try things and have in it not work. Right . Youre talking about the fed . The fed, other central banks. You were talking about that. I think what youre finding is people are beginning to question the efficacy of zero rate policies. I think thats healthy. Because weve been sitting here for years waiting for it to work and it hasnt. And it took a long time for anyone to actually raise people think it has worked. You know, if this is working, then we have to reset the definition of what doesnt work. People almost view that in a political prism now too. 15 million jobs, blah blah. Two years ago we wrote the zero rates are holding back the u. S. Economy. I still think the zero rates are holding back the u. S. Economy. Low rates are not helpful. When you look at a low rate environment, it goes up doesnt go down. If you want to lower savings and boost growth, you actually raise Interest Rates a little bit. Youre not a stock market guy, but we hit 18,000 a couple years ago. You know, were a little bit above it right now. Is it on an upward some day before we go down . We dont go down after the fed gets out, we dont all of a sudden give back recent gains, do we . And head back down . We go above 20,000 in the next five years. So, ill twist it to this. Theres no reason for this cycle to be ending. Theres no time clock on the cycle. So we can have a very long cycle. And thats probably the number one question we get asked by clients is where in the Economic Cycle are we . Where in the cycle . How close are we to a recession . And the answer is weve got low growth but its stable growth. So were nowhere close to a recession at this point. Is the recession that came when inflation was so low and rates were Economic Activity was so tepid . Dont they usually get overheated we usually do get overheated. Thats interesting. If you look at the last couple of recessions weve had, the number of things that had to go wrong simultaneously to push us into recession. 2001 was a terror attack and a stock market crash. 2008 was the near collapse of the Financial System. So its taking more and more to push us into a recession. Because were not a manufacturing economy anymore. We dont have the inventory booms and bust cycles. Vl it a situation to go in this time is different for real . No, no. This time its like recent times than it was like the far past which is when all the textbooks were written. Probably coming next month. But is it a recession or is it something deeper . I mean, is there a true crisis . That were looking at . I dont think were looking at a true crisis. I mean, the problem with what were in now is that zero rates create all kinds of reasons to defer decision making. And to defer creative destruction. And so were not seeing bad firms fail. Were not seeing people feel like they have to make the investment now or some other company will make it. Theres no pressure on anyone to do anything because Interest Rates are the value of time. I dont know if you saw this interview. Because i want to talk about the pound. Pound trading near recent lows at the moment. Heres how Larry Summers sees the currency right now. I think its like a fever. Its a sign of Serious Problems associated with the Brexit Strategy. But given the Brexit Strategy and the new reality, the pound will do a useful thing by stimulating british exports and encouraging some substitution from foreign producers to british producers in terms of imports. That was at the conference yesterday. I apologize for that. But what do you make thoof . I think its interesting everyones focused on how you can get Something Else from some other country which is what currency appreciation is all about. And its actually what negative rates are all about. If you want to think about negative rates. The best way i feel to think of negative rates is to think of them as tariffs. So everyone tries to kind of get their rates lower so you increase your difference. You might keep it where it is and put up a tariff. I think youll end up with the same result. But not going to go negative. He wants to preserve bank profits. And the ftse is up 14 . Its the best developed market stock index in the world. Yes, because youre not going to make the mistake of going into negative rates. I think negative rates are seen as not being good for an economy. And once you get, its difficult to get off of zero. And one of the things that i think, you know, the bank did well during the crisis was they started quantitative easing before rates got too low. If you think about the velocity of money, right . Velocity is a function of Interest Rates. If Interest Rates are higher, the velocity of money are higher. If we take Interest Rates to zero and pump all the money into the banking system, that money effectively has no velocity to it and is less powerful than money that would have tran mitt. All right, drew. Thanks. Thank you. Coming up, the president ial candidates are back on the campaign trail after a bruising battle on sunday night. Were going to hear from a trump supporter in just a bit about what his candidate needs to do to get his campaign back on track. But up next, lobster lovers feeling shell shocked over the price of the delicious crustacean. Details after the break. Squawk box will be right back. Just like that, a moment turns romantic. So why pause to take a pill . And when youre having fun why stop to find a bathroom . With cialis for daily use, you dont have to plan around either. 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Com ask your doctor about cialis for daily use. Yoyeah, i do. E . You guys are working on some pretty big stuff over there, right . Like a new language for crazybig, worldchanging machines. Well, not me specifically. I work on the industrial side. So i build the worldchanging machines. I get it. You cant talk because its super highlevel. No, i actually do build the machines. Blink if what youre doing involves encrypted data transfer. Wait, what . Wowwww. Wow . What wow . There is no wow. Welcome back to squawk box on cnbc. Google is hiring writers to be part of their digital assistant. To differentiate the products from rivals like amazons echo. The writers will be creating dialogue to make it friendlier and funnier. At least thats the hope. The device goes on sale november 4th. Tiger woods is delaying his come back to the pga tour once again. He is pulling out of this weekends safeway open. Woods says his health is good but his game isnt where it needs to be. And lobster prices hitting an 11year high all thanks to the lobster roll phenomenon. The growing popularity of burg enand lobster surf and turf chains are creating the demand. The wholesale price of lobster is at 6 a pound. Thats up from 3. 70 back in 2009. Coming up on squawk box, the unofficial start to earnings season. Alcoa will kick things off. Results expected in just minutes. Stock up about 6 year to date. Will the companys plan to split pay off for investors . Well discuss. Well be right back. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at t, and security that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Among the stories front and center, samsung has permanently halted production of its troubled galaxy note 7 smartphone. A massive recall and attempt at a Replacement Program could cost the company as much as 17 billion. Rome drops its bid to host the 2024 olympic games. It comes after they voted last month to withdraw support. The remaining cities in contention . Los angeles, paris, and budapest. Ratings fell off from the first debate to the second debate. The third debate is set for october 19th. Twitter dropping more than 11 on monday as investors question whether the social Networking Company will receive any takeover bids at all. Late in the day reuters reported that salesforce may be interested in buying the company. Maybe that makes it more likely. Joining us now to talk more twitter is ellie wheeler. Good morning to you. Good morning. What do you think . Its interesting times. I mean, it seems they arent getting a lot of bidders at 15 billion. The more the price comes down, is there a better chance something happening . Sure, but do you think both the company as well as the shareholders expectation for price just change that quickly . I dont think it is. What does the ipo price mean . 26 a share, its well below that. Does that mean anything to the shareholder . I mean, they can try to get there, but i think that will be a long road. Its just a different time. Companys in a different place. There were expectations set out then that i think you could have a nice argument as to whether theyve been achieved. Okay so was it a mistake to start the process . Clearly they get an income probably from mark benneoff first. Who lost out on linkedin. As a result of that, other calls go out. Google shows up on the scene. I dont know if you think the disney meetings were a courtesy or whether they were really interested. And now this whole expectation is set and how do you then reset if the company doesnt get sold right. Thats the tricky part. Not just for the consumer because the consumer may not care on a daytoday basis. Most dont. But its an employee story. Its a story for advertisers. Its a story for the client. Everybody else around it. Uhhuh. Was it a mistake to go out . Probably not. Youve got a fiduciary duty to do it. Theyve already been getting a bunch of inbound pressure from shareholders. Theres been a lot of discuss there. I think you have to do that. Clearly they decided that there was merit to it. And then on the second part, what happens when they dont get bids . That sent to employees i think it was last week. Youre going to need a strong and compelling strategy. You cant go out again in three months. So this is a were going to build this. What could it be its a major milestone. Theyre going to have to have a plan for something more interesting for two years. Or longer, hopefully. But it cant be small things. And there might be some leadership shakeup. Who knows. Can it exist as an independent company . Well its existing as an independent company. But look at the money burn. This is a company burning a lot of money. Yep. And part of the story is how do they do something meaningful productwise and strategywise and also get to profitability . If investors believe that straty, its different. Do you have a strategy you want to tell him about. You know, obviously its not a simple fixture. They would have done it. The occasion for the memo, though, was one year, or the oneyear anniversary since dorsey fushlly became ceo. The product has had some new additions but it hasnt really changed at all. He was supposed to be the product visionary that was going to come in with a clear head and a clear vision and completely clean up the twitter we use. Why didnt that happen . I think thats right and perhaps what it is is they need fresh flood. In terms of just a totally different take. You know, such a cliche, but there are no sacred cows in that kind of blow things up that were potentially in the mantra of what twitter is. Maybe thats what twitter is to a Smaller Group of people. Perhaps it needs to be Something Else. Youve got to address how new users can get on the platform, stay on the platform, and engage in the platform in the same way that the early adopters set whos been doing it from day one is able to do. Its just two different worlds right now. Maybe you dont need i dont know. Maybe its never going to be a moneymaker. I dont know. I think theres really an asset there. An asset or something that needs monetized . Will it ultimately be a more valuable asset under somebody elses banner . Maybe. Do you agree the idea of broad band bringing in nfl licensing for example. Some of the other tv networks . Try to use it in that way . I think they should be thinking like that. I think its smart. I think they should be pushing on things like that. Were talking about employees before and managing not just for the outside but for the inside. This from a New York Times story, this little nugget says that certain twitter employees are not showing up for work. Rank and file Staff Members are frustrated about being in the dark and a handful of employees have stopped showing up for work entirely. That sounds like entitled crazy. Youre a rank and file employee and youre expecting to be party to whats going on in the board room . No. I dont make much of that. Thats probably i dont think its probably anything. How do you fix morale . Is there a point of no return . Thats the trickiest part of going out in a public process and having that not be something. Thats why there needs to be something to rally around. And that its going to take 18 months to get there. Are they going to have to pay out more stock to employees. They cant possibly afford that. Different question. Given that one of the things you do is oftentimes find ceos to run companies. If you felt like you had to replace jack dorsey, who would you put in that spot . Thats a good question. I dont have a list for you. But i mean, i dont think its a twitter alumni. Thats my point. I think you need somebody outside. Its a tricky one which you saw when they talked about the last transition. You know, someone who was a little bit more focused on monetization versus the visionary. Are you talking is it fanciful to think you can find somebody who has both . I dont know. I think that probably exists. I dont know exactly how. Do you use that word . Whats that . Has a hankering to i looked it up. Its not a hill billy word. But you were in ohio. Right. Columbus, yes. Have you used hankering before . Just when you said it i thought wow, he was in ohio. Would you say im fixing to go do something . No. Would you say i reckon i might. Well, youre from georgia. I dont know. But the whole ohio thing, i think youre kind of wrong. What was it like in a flyover state . Was it like what you thought it would be . Ive been there before. So its not a flyover state for me. That benneoff guys got a hankering for twitter. I was like, andrew . I dont think it is the term flyover state is not a compliment. Thats not a word people in the states like to use. Im channelling him. He thinks that basically im here and then los angeles or san francisco. What else is there . The service on united is all i know about. The mint service on jetblue. I was so happy you were in ohio for awhile. I noticed a difference. I do. More earthy. Im trying to nice to see you. Yeah. Forget apparently i dont even use commercial flights so i shouldnt talk about that. Were fixing to go to break. Ellie, thank you. Always good to see you. Hankering to get money in here. When were fixing to return, we hit the campaign trail with a ceo who has given more than 2 million to republican candidates this election cycle alone. His thoughts on donald trump and the run for the white house. And later, leon cooperman joins us to talk markets, politics, and his battle with the government over Insider Trading charges. Squawk box will be right back. A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley amazing sleep stays with you all day and all night. With sleep number, you choose the exact firmness and comfort you want and so does your partner for the best sleep ever. Its the final days of the columbus day sale, with the queen c4 mattress set now only 1399. 98. Plus 24month financing. Learn more at sleepnumber. Com welcome back to squawk box. We got a hankering for news. Lets tell you about the futures right now. Weve got a market that looks like its in the red but just marginally. Dow would open off three points. S p about 2. 50 points. And if youre a techheavy guy, the nasdaq four points out. Both candidates hit the campaign trail again after sundays bruising debate targeting two crucial swing states. Hillary clinton rallied in michigan and donald trump stumped in pennsylvania. Lets bring in salab kumar, a supporter of donald trump. Mr. Kumar, thanks so much for being here. Nice to be here. Thank you. What is the either the candidate or and what the candidate expresses his policies makes you a supporter . He is a businessman. Yes. And it makes a lot of sense when he talks business. For example, fiscal discipline. Everybody talks about reducing debt. 20 trillion debt. Talk about cutting spending. They mean Something Else. You know, you couldnt project it could be 6 and you cut it by 2 . Increasing spending by 4 and you call it savings that you are cutting down debt. As a businessman, what businessman is there on the face of this earth who in crisis cannot cut 10 . In spending. So budget deficit or deficit spending which in a normal europe also, 2 of gdp is considered to be okay. I dont know if andrew will have this question. Ill ask it not for him. But the response would be that you compare the two plans. And donald trump would be combining the tax cuts with the military spending and some of the other things. And you actually end up adding more to the deficit than the way Hillary Clintons plan is scored. Not talking about cutting spending. No. I see hes talking about making government efficient. Well, thats so you would have faith a business manman businessman knows this is just the politicians just talk about shifting from this bucket to this bucket. And spending so much in revenue to be so much but they dont understand where have you read that or heard him say that he plans to cut spending . He is said to me that hes going to make the government efficient. Maybe not overall spending but hes talking about looking for waste. A trillion dollars over a decade would come from cuts in spending. This is according to the plan he released a few weeks ago. But about 6 trillion in additional revenues would come from Energy Companies that would grow more quickly. And pay more taxes. Do you worry thats a chicken and egg problem . That if you pay for things based on growth, that those arent sure revenues for the government . Look, the growth in revenue is going to come from growth in the economy. So if you grow the economy. Because everybody is going to do better. There are some other issues. You had initially, im sure im reading here that there were, the immigration issue. You were board in india, i believe. To support donald trump or he allayed your fears about, you know, theres a picture painted by obviously his opponents that maybe conflate immigration and illegal immigration many times with donald trump. Youre comfortable with him as a candidate on that issue . At this point, i am. There was a point in time initially a lot of businessmen from the indian american, hindu american community, they liked what he had to say and just basically believed he would be better off running the country at least for four years or eight years. And maybe he needs to set an example and get out. But there was a question in our minds because from some of the talk and the way the media talks that perhaps he may be tough on any immigrant. That was the first question i asked. For illegal immigration. And there is no concern about that. That is he really wants over the past weekend. Politicians. One word. That would be a pretty good answer. Fair enough. He has a view and i wanted to hear it. Have you had pushback from any of the friends, associates that they say how can you be like this. You know, whats the response . Or is everybody saying im with you, i agree with you on this. Hes got a tough sell for certain demos, i would think, right . Yeah. Its not you would be embarrassed like if you if i did Something Like that. This is embarrassment. He said that hes embarrassed. Yeah, the tape. Thats what im talking about. I assumed thats what you were talking about. But, you know, thats just talk. And so your industrialist roots are probably you know, theres a lot of single issue voters around. Take your pick on whatever the issue. But your industrialist background is probably the most important factor youre considering here on how you think hed be a better guy running the country for you. Not just the industrial, not just the business side. Also his stand on a firm foreign policy. His stand is more like reagan. You know, reagan in the early 80s, from that time frame, everybody talked that he is a crazy actor. And hes going to destroy the world. I remember it well. Yeah. What about the comments about putin, his relationship with putin, his relationship with russia . Support for russia . Its not support for russia. I mean, he has said that he doesnt really know the inside of how it functions, how inside russia functions. I mean, hes just assuming and shes saying that, hey, i want an open mind. I want to see what can be done. Ive seen it written, wow, why dont we get along with the other Major Nuclear superpower. Why dont we try to get along . What a concept . No, no it might make sense to Work Together on things rather than but if you thought it was possible, it would be great. Its something to explore. Maybe right now the a war has been declared on us. Thats isis. Youre proposing a reset. What a concept . I think we tried that with Hillary Clinton. Anyway, mr. Kumar, thank you. We appreciate you coming in and sharing this with us. Thanks. Coming up when we return, the doctor is in. A Health Care Startup wants to take an unsick day. Well talk about that. And take a look at alcoa. Missed estimates by 3 cents. Were going to talk about that when squawk returns in just a moment. Coming up, hedge fund tighten leon cooperman gearing up for a big fight with regulators. The s. E. C. Has charged him and his firm with Insider Trading. Hell tell us his side of the story at the top of the hour when he joins us here on the set. Its an interview you dont want to miss. Right here on squawk box. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your Small Business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Ever avoided scheduling a doctors appointment because of work commitments . Youre not alone. New data from zocdock. The company has now offered its employees one additional unsick day. A day off to attend to preventive medical care. Oliver curaz is the ceo of zocdock. Didnt we used to just call these personal days . We used to. But the problem with that is we end up not taking them for preventive care. We need dedicated time off when we go to the doctor before we get sick to stay healthy. The hard thing, though, is in addition to your annual physical, theres so many things to keep up with me whether its a dermatologist or a Sexual Health appointment. Theres so many things to schedule you can rarely get them on the same day. Does having just one day actually help . Had. So, what we target with unsick day is much more the cultural awareness. Theres a conflict between work and health going on. People dont feel comfortable to see the doctor, get those annual checkups to find high cholesterol, high blood pressure, take care of it before you get sick. Thats what were tackling. I had this issue but im in the news business. You cant predict when news comes up. When i started in television that i couldnt take a dentist appointment i could keep. My dentist i said eventually i need to be able to do this in a more lastminute way. Do workers at handy, do they need something formal like this to actually go out and do it . I think a lot of it is cultural. Weve got a Young Employee base. The average age at handy is 29. Weve got a responsibility on how to set a cultural awareness for this so its easy for people to have those conversations with their boss. I need to take time off for it to be okay. For our contractors, its a harder problem to solve. How much does it cost a company, a company that isnt majority independent contract s contractors. I think its a net positive for the company. You can see the Companies Already value their employees health. All insurance plans have the preventive for free. Because theres this cultural barrier that keeps people from taking advantage of it. So this is where the Leadership Task comes in. To actually send the signal theres permission to use these programs and take time off. There have been other companies, though, like Concierge Medical Service that popped up to give people more realtime lastminute health care services. Is this a way for zocdoc to get in there . What we realize actually look at our own day da ta is only one of three of our employees took care. Have either of you guys taken your unsick day . I have skenled it. How many times a year do you get sick . Im sure my employees are going to be happy im out of the office that day. Thanks, guys. Appreciate it. Thank you. Coming up, leon cooperman joins us to talk politics and his battle with the government over Insider Trading charges. Squawk box continues a after a break. Digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Facetoface with Hedge Fund Manager and billionaire leon cooperman. Well talk market moves, the election, and his battle over Insider Trading charges. Hell join us for the entire hour. Your money, your vote. A new poll giving Hillary Clinton a double digit lead. One of the biggest donors will tell us why hes doubling down on the candidates. Plus galaxy gone bad. Samsung halting the production of the phone. What it could mean for apple coming up. The final hour of squawk box next. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box here on cnbc. Im joe kernen along with Andrew Ross Sorkin and Kayla Tausche in for becky. Youre here all week . No. But friday. Yeah. And maybe next week. Maybe the week after that. The futures were all benefitting from that. Glad to have you. The futures indicated down. They were up briefly. Alcoas not a dow component, but with Aluminum Prices turning higher, they havent posted earnings above the year ago quarter for five straight quarters . Finally i think 32 cents is the real number. They were looking for 35 and i think the stock might be down. But then the question is of the analyst are they right . They met their own guidance. First quarter in five quarters that they posted more than a year ago. A guide who has discounted. What a change. Good to have you. Well talk to you in a second. Theres alcoa. Down 1. 86. That is not why the dow is down. Because they finally got that thing out of the dow. Didnt he . They did, yeah. Finally. Before that. Anyway, look at the European Equity markets right now which has been sort of flat for most of the session. And then well move on to some of the other headlines. Okay. Lets tell you about some of the big headlines this morning. Samsung permanently halting production of its galaxy note 7 smartphone. The massive recall could cost the company as much as 17 billion. Youre looking at that stock now down about 8 this morning. Also yum shares trading higher right now. Following details on how to drive growth following the spinoff of yum china. Take a look at that stock right now. Our special guest for the next hour is leon cooperman. Last month the s. E. C. Announced charges of Insider Trading against him and his firm. The agency is looking at trading dating back to 2010 and Atlas Pipeline Partners and lee who has said this is bogus, right . Thats, i believe totally unjustified. Totally unjustified. He joins us right now and we understand that you have a statement about all of this. I have to say, first of all, thank you for coming in. My pleasure. Thanks for the opportunity to be here. And the reason i say that is because most people who are under who have been charged with Something Like this dont come on television. Im happy to talk to you about this. Good. Very limited amount that i could say under wraps by the attorneys. Probably not happy that im here now. But this is my personality. Im not a reader, but i like to just kind of make a brief statement which is less than what i would have liked to have made. Im here to discuss my views on the market and related topics and not my legal trials. But i appreciate the opportunity you give me to make the statement. Omega and i have always followed the law. Anyone who understands the law would know it was built on complying with the law. We could have settled with the s. E. C. For the amount that is far less than i donate to charity on an annual basis but i refuse to do so because i know we acted appropriately. Not one penny for tribute. Very dangerous statement to make to your lawyers, by the way. I found that to be the case. It took me 50 years of hard work, very long hours. Playing by the rules to get where i am professionally. And im not going to let them unfairly destroy my legacy. The money is not an issue. Weve discussed this in the past. As you might know, ive taken the buffett gates giving pledge. I intend to contribute all my net worth back to society. I was impressed by the words of picasso saying the meaning of life is to find your gift and the purpose of life is to give it away. This kid in my first generation to get a college degree. Got lucky, worked hard. Was rewarded beyond anything thats reasonable. And i want to give it back. And the damage this has done has dramatically. Affected my firm. I feel sorry for them. Im a big boy. I can handle myself. Ive been very much a gratified by the outpouring of support ive gotten. A couple hundred emails. Some of which ill give you at the end of the show. I dont read them here because we dont have the time. Job one and most important is i have to perform appropriately for my investors. And thankfully despite this mild distraction, were doing well. Omega credit funds up 13 , 14 this year. Our equity only funds up 7 this year. And job number two is basically convince a injury of my peers there is no case here. Can you walk us through the process in deciding to fight the government . Who do you talk to about this . Well, you know, you have your own genetic makeup. A guy i have enormous respect for who is or your show a lot. Hes a man so i respect him. Ken langone. And ken called me up two and a half mornts ago when this broke and said ive known you for 40 years. Ive been an investor with you for over a decade. I know what you stand for. Alls i can tell you, the best 30 million i ever spent was the 30 million i spent defending myself against eliot spitzer. If youve done nothing wrong, dont give these guys a dime. Thats my philosophy. And its going to cost my substantially more. I could have settled with them for about less than half of what i give to charity annually. What gets me the most about the whole thing is my family has created this cooperman come scholars. If you have financial need unmet by government, ill get you through a college degree. We have 500 kids we want to send to college. Im prepared to boost it if it works. The problem with the statistics are i think roughly a third of 35 of newer High School Graduate gos to college, only 5 graduate. This is life changing. What im spending on this legal thing, i could triple the number spent to college. How is the cooperman dynamic right now . No, no, look. The press has been crazy. I dont want to talk about the case specifics because you dont want to give me three or four hours. Theres no case here. I am the largest investor with my sons fund. I have respect for him. Hes extremely talented. He was short the stock. Im his largest investor. He complained because there was unusual activity in options and he thought somebody knew something and he complained. He didnt throw me under the bus or do anything. We love each other. But basically im his largest investor. Okay . If i have inside information, why is he possibly short the stock. We covered our short options. We never went long. But i dont want to go there. I dont want to piss off my attorneys. Let me ask one question. You have more than one. Ill keep it broad. When an investor is in contact with management of any sort, should that make the investor effectively restricted . To the extent the investor is well, now youre altering your question. Youre altering your question. Im going to read you something. Like i said, i got 200 emails. I didnt skbend to go here but i want to defend myself. I have got an email from a man with no business connection. He said upsetting to see our tax dollars at work in nonsense cases like this. Im not just saying that. I read the complaint. If theres a case against you, every analyst in this business may have to lock themselves in a windowless room, never take a Management Meeting again, never override a position, never share views in stock with another investor. Im glad youre defending yourself so vigorously. Not just to protect your legacy but also in a way to represent any diligent fund manager can face. Its scary. Information is not a crime. Its incumbent upon the company. When i visit a company, i say listen dont disenfranchise me, if i ask you a question that is sharper than anybodys question. Give me an answer. But if it was a question you dont want to answer to anybody, dont give me the answer. What i look for is insight. Not inside information. Period, paf graph. The whole world is turned upside down. There was an editorial that said information is not a crime. We deal in information. We call on companies. Market shear, profit margins, or manager. You Look Management in the eye and ask them questions. Heres the complicated part in terms of the public perception. The perception is my mother whos at home, if she wants to trade in the stock market, she should have the same information thats available to somebody like you. But you would get to meet with management. My mother wouldnt get to meet with management. Shes probably better off. Then the question becomes whats material and whats not . If we always were under instructions that if management gave us material nonpublic information wed ask them to make a press release. You know . So the management, its incumbent upon them to use confidential information. I had a 16year history involved with this company. They never gave me confidential nflgs. I think the majority of the people at the company would say that. But just to understand, the allegation that they provided you with material nonpublic information. Its not true. That piece is not true . That the information wasnt material or that the information wasnt public . The information wasnt material, it wasnt acted upon. But again, youve got to respect if you want to give me three hours, well present our case. You dont want to give me three hours. I dont want to take your three hours. Okay . I will put it this way. We have cracker jack attorneys representing us. They study the record great deal two years ago. They said, quote, we know inside trading. Theres no inside trading here. End of statement. Thats it. I think he tweeted out something complimentary, positive. He actually, we spoke. If you know the specifics in this case, anyone who steps out and says something nice about me, theyre just being nice. They dont know the facts. I think when one becomes in possession of the facts, itll be clear there was no inside trading here. Do you think the markets are fundamentally fair . Do you think you have the same opportunity that essentially the person on the street who may be watching this show who doesnt necessarily have access to management . Because thats sort of the larger overlay taken outside of this. But thats not a question of inside trader. I get paid a fee to manage money. Your mother is managing her own money for free. In theory i get paid a fee to manage money because im better than somebody else who doesnt have an education, doesnt have access to management. But the government has no desire to stop the flow of information. It just wants to have a fair disclosure 37. Youve been helping your mother manage her money . I have not. Is that what this is about . No, no. She hasnt taken any of yours happily she has not. Better off without my advice. We have a lot more to talk to him about this case. It was just an example. I was just using her as an example. Hi, mom. Nice to see you. Hope shes watching. If she watches she hears your opinions and might act on those. She usually calls me to tell me its wrong. Coming up, this mornings biggest movers. Stay tuned. Youre watching squawk box on cnbc. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Welcome back to squawk box. Shares of st. Jude medical are under pressure this morning following a report by short seller muddy waters. The firm posted an alleged medical advisory on premature battery depletion in several st. Jude devices and the report has knocked the stock off 3. 3 . Coming up on squawk, the greenspan effect. A new book asked if Alan Greenspan could have done more to avert the financial crisis. The author of the man who knew will join us. Well be right back. S. New biography released today takes a dive into Alan Greenspans life and tenure. Joins us is sebastian mallaby, author of the man who knew. He spent years researching spending time with the man himself. You said that Alan Greenspan, people talk about his role in the crisis. He gets a lot of credit prior to the crisis and a lot of credit for the crisis. You said he pressed for greater regulation over the years and got nowhere. To argue that he didnt know the risks in a rational market is to miss the point. He knew more than almost anyone. The question is why he didnt act and whether anyone could or would have. What do you mean by that . One of the big discovers in my five years of research is i was visiting Alan Greenspan in his office. And his eyes would do this. He would look up at the shelf. I realized that must be the missing ph. D. Piece which nobody had been able to find. When he gave it to me, it was about financial ib stability. He wrote an article in 1959 about how it would drive the economic psych. The idea that he wasnt chairman of the fed, its all there. Its all in his thesis that nobody found before. So what do you think prevented him, then, from avoiding the crisis . I think there were two things. First of all, his personality. He didnt really have a stomach for confrontation oneonone. You know . He was somebody that was extremely shy. He fought through that. Hed been raised by a he lived in his own head. Although he was very smart, he didnt Like Fighting people openly. So when it came to confronting a bubble, that would be unpopular. But who was pressing against him . Well, everybody had a stake in the housing bubble. All americans were happy that their real estate prices were going up. Congress was encouraging fannie mae and freddie mac for more. How do you think of the issue of regulating the banks though . The regulatory component of his job . Right. So the standard narrative i think of greenspan after the crisis when he went from hero to zero was that this guy got Interest Rates correct because inflation was about right. But the regulation blew up. What i discovered from that is that the fed did more on finance than we think. In 2001 it passed a whole new set of regulations on what kind of subprime mortgages would be allowed. People dont know this. So it was amazing to see read greenspan debating this, the staff is excited. Then the industry just roots around it. So when you think about how this how history will ultimately look upon Alan Greenspan, is he whatd you call him . Hero to zero . Or is he going to have a more nuanced i think hell go from zero to ten. Maybe eight, nine. He made one huge mistake at the end of his tenure. He did not raise Interest Rates fast enough. Im talking 2004 and 2005. He was obsessed with targeting inflation. We learned inflation is not the biggest threat to Economic Growth. You want to target financial bubbles too. Thats a relative debate for today. But i think that for most of his tenure and this is a man who was in the public eye for, you know, more than 20 years if you count the white house in the 70s but the fed for 18. 5 years. So the worlds most powerful economist and i think he made many more things he got right than mistakes he got wrong. The narrative of the fannie, freddie and government officials keeping the party going and trying to raise homeownership and it was a, you know, lowering the standards you need to try to get more people involved in home ownership. That narrative is just about gone replaced by greedy bankers pushing mortgages out to people. We should remember, its an amazing story. Greenspan at one point makes an alliance with the Bush White House to go after fannie and freddie. And barney frank made sure that didnt happen . What happened was thirst they got a bit of traction and then had ads that if they were on the side of reform, they would be nailed with these tv ads. I think basically the wall street journal ran an editorial probably every six months about fannie and freddie. Politicians didnt care. They wanted everybody to own a home whether they could own it or not. And bush tax cuts caused it. Thats what hillary said. Its hard to calculate for crises that were nearly averted. We focus on the financial crisis, but do you think there are aversions hes not getting credit for . He did get some credit, actually, because 1987 he propped up the derivatives markets in chicago. Longtime capital management, the hedge fund, you know, the feds stepped in. He did a bunch of things and did get credit. In some ways he got too much credit. Because then his reputation became so exalted that he markets were too relaxed and they thought uncle alan had our back. His reputation was to how much does this weigh on him now . You know, he is a remarkable forward looking person. Hes 90 years old now. I see him in his office and he wants to talk about, you know, whats going on in britain with brexit, whats going on with the election campaign. Hell talk about the past if i force him to do it, but hes not if you had to write an insta book on yellen continuity chair, not enough innovation. How about bernanke . We had a series of fed chars. Volcker was in one way. Greenspan was great in ways. Bernanke innovated. I think yellen has continued the qe. Innovated herself into sub2 growth forever though. Unfortunately. Sebastian mallaby, the book the man who knew. Like stimulus or tax cuts . How about bringing back all these millions of dollars from overseas. Thats not what people think about. Coming up, this mornings top stories. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Thats why a cutting edgeworld. University counts on centurylink to keep their global campus connected. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. When legalizing safe, responsible adult use of marijuana, the most important question is how . By voting yes on prop 64 adults 21 and over could only purchase marijuana at licensed marijuana businesses. And prop 64 bans advertising directed at kids. Requires strict product labeling. Childproof packaging. And bans edibles that appeal to children. Smart provisions to safeguard our families. Learn more about the safeguards at yeson64. Org. Welcome back to squawk box on this tuesday morning. Heres whats making headlines this morning. Small Business Sentiment fell slightly last month. The nfibs Small Business index fell to 94. 1 from 94. 4 in august. However, Business Owners also expressed significantly more optimism about the prospects for 2017. Check out shares of gene sequencing company illumina. Company stock down 26 in premarket trading. And altria has taken a 9. 6 stake in inbev. Its part of the transaction in which anheuserbusch bought s. A. B. Miller. The miller brand was part of the Portfolio Two 2002. The Company Formerly known of philip morris. But both are marginally higher today. Lets talk with our special guest and so much to figure out here, lee, in your viewpoint on it. Not just the markets but the global economy. Weve had a lot of discussions in the last couple of weeks about the word i just mentioned. Thats kind of malaise, new normal, secular stagnation, supply glut. However you want to characterize it. But is 2 our maximum . Thats the best we can hope for in this country . Its probably trend growth. I think the worlds turned upside down. President obama successfully made romneys wealth a liability. Now we have a candidate who gets up there and says im richer than you think and the public is eating it up. My own view, hes not richer than we think and i have issues with him. So im trying to figure out, you know, whats normal. What are examples of the world turned upside down . A few months ago switzerland borrowed at negative Interest Rate. Just repeat to yourself what that means. Somebody said give me back less than im giving you today 50 years from now and im happy. Japan has negative Interest Rates. Germany has negative Interest Rates. 13 trillion of dollars with a negative Interest Rate. Gets a home for living in the home. Negative Interest Rate on their mortgage. So the world is upsidedown. During the financial crisis, jamie dimon, jpmorgan step up to take over Washington Mutual and bear stearns and then get fined billions of dollars. The things they didnt do that were done before they owned em the. So the worlds crazy. I ask myself whats abnormal, whats normal. So to me normal in this focus on the u. S. Particularly is grows half a percent once a year. Tack on another 2 for inflation. That gives you nominal gdp growth at 4 . And at 4 nominal environment, i think the Feds Fund Rate ought to be 2 . And ought to be 4 not 1. 6 whatever it is this morning. It may take two or three years to get there, but itll get there. 2 fed funds, 4 10year government. We could argue but i think the multiple in the market would be about 17. We happen to have 127 earnings estimate next year. And thats about where the market is. I think the market is fully valued. Not exploited. Not overvalued, but fully valued. Because of the money thats flowing into the market is largely going into these index products. I think there are Many Companies that are cheap relative to the index. I think the s p is fully valued. Not exploited, not overvalued. I find a lot of stocks that are attractively priced. Thats the world as you see it. You got a reason for whats happening . Europe and japan . That causes the negative Interest Rates . Theres two views. One is they decided to do it. The other is theyre responding to no inflation, responding to slow growth. Are there structural problems with their economies that make it impossible for them . Im more expert in the u. S. I think that the problem in the u. S. Is weve not had the right mix of policies. But youve got to have some viewpoint on whats going on in europe and japan . Thats why we cant raise our rates here. Thats because of the dollar consideration. We cant raise rates. Global Economic Growth is sluggish. Why . Why . Demographics . Structural . I think the demographics in japan are faster. I think their Financial System in europe is under strains. I think were coming out of it. Were coming out of it. And i think the world is not going into recession. I think the world is coming out of recession. The United States have been at recession for eight years. And i think were seeing all the classical signs. You know, employment is picking up. Wages are starting to pick up. I think youll have higher inflation next year, higher Interest Rates. Thats part of the picture. I think the problem that weve had is a lack of proper fiscal policy. The entire burden to deal with the recession has fallen on monetary policy. Bernanke figured out he had to get the economy to do better. He figured out the best way to get the economy up is to create wealth. Trouble is that is it just a portion of that created and people like me. So now were in a situation where there is financial repression. We created a lot of wealth for you guys, now no return on your wealth. The problem for that is i feel sorry for the man on the street. You work your entire lifetime. You accumulate 2 million, you go to Financial Planner and say i want to retire. What can i assume on my savings. They say go back to work. You cant retire. Then the feedback on the kmum. Excuse me. The young people have less opportunity because theyre staying in the labor force longer because they cant retire. Im in favor of more intelligent fiscal policy. Tie it to job creation. Have more intelligence policies and get Interest Rates to a point where they belong. Stop confiscating the wealth of wealthy people that have savings. There was information out there, blackrock does a survey fairly often whos actually invested in the stock market. It was largely institutional following the fed crisis. Should the fed have been clear that main street was safe to put it back in stocks . The public is more intelligent than we give them credit for. The public was terrorized by 2008. Theyre slow in coming back. Thats probably positive in a sense. I wish i coined the phrase, but i didnt. John templeton shows they grow in skepticism, mature in optimism, and die in euphoria. Pessimism started in 2010. I think skepticism is under way. But i see few signs of euphoria. The market as an entirety to reflect. Were going to continue this conversation. Leon cooperman is our guest for the hour. When we return, a new poll giving Hillary Clinton a double digit lead in the race for the white house. One of Donald Trumps biggest donors will tell us why hes doubling down on the gop can the. Well talk about it knicks. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Sprint . Im hearing good things about the network. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your Small Business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. We are now just four weeks away from the election. Oh, its 27 days. 27. 5 days. A little bit more than that. Joining us now, one of Donald Trumps supporter Foster Friess founder of friess associates. And trying to think foster, you must have been on squawk box 20 years ago. My gosh. It seems like just yesterday. Nice to see you again, joe. Good to see you. So not many ceos, not many, i guess, Business People that have customers at this point are really backing donald trump. Thats a point that the wall street journal has pointed out, andrew has pointed out. Youre still active. Why are you different in terms of being willing to go out there and support mr. Trump . Well, i think i come from perspective of our nations christian heritage where when a guys down, you dont stomp on him. You try to give him a hand and pick him back up. Im not here to defend donald trump. I dont think his actions are defensible, but im here to forgive him. I think its sad that our society has drifted so far away from the christian values where we would take a video of 11 years ago and have that relevant in terms of who were going to vote for. What im trying to encourage my friends to do is take a column on the lefthand side and write all the things important to you. Tax rate, immigration, health care. And then on the next column put Donald Trumps positions and in the third column put Hillary Clintons positions. If we do that and we vote on the issues in our personal best interests, i think it becomes irrelevant who is the less flawed. I think the Mainstream Media has said they have tied for 79 negatives which is an alltime historic figure. So lets not focus on that but focus on what will our future look like. Ive been blessed with success because i didnt look at people where they were at or where theyve been. But what they can become. Im excited to see donald trump expressing regret for his comments and its a real sign of growth and im excited what he can become. And also why success came from harnessing peoples strengths. When you do that, i think its pretty obvious whos going to be best for our country. Thats why im voting. And supporting. Wall streeters or people i hear around here, thats Hillary Clinton is going to keep the status quo. You know, its not going to be that bad. We kind of know what shes going to do. We know about her temperament. Shes been around for 30 years. Donald trump, they say, at this point is aspousing republican policies. They would say he gave to both parties. And they would say his temperament combining with not knowing whether he truly believes with these things on the paper if hes going to change those once elected, he would say maybe ill just go with hillary because its easier and it represents the status quo and stability. Thats what i hear even from republicans. Well, i think whats tragic about that is people had to listen to a fellow named slikter. He named all the things he likes and doesnt like things with donald trump but then said but im going to vow for him. Because if we dont have a return to rule of law, theres no idea whats going to happen in the future. Could you imagine in the debate she has confronted on the fact she destroyed 30,000 emails after getting a subpoena from congress. Who among us would not go to jail for that . Her reaction was yeah but i gave you 35,000 others. So i think the return of law, the rule of law is so important to so many people. And how did they get 200 million of net worth after being broke in 99 . And was it from saudi arabia . I think the people that are flocking to donald trump, the plumbers, lelectricians, everydy americans, theyre disgusted with this. And the other thing, everybodys very uptight about the Supreme Court justice appointment. Theres going to be three or four. Scalia was appointed in 1985. This isnt just a fouryear thing and maybe a better republican candidate will show up four years from now. Huhuh. This will change our country for the next 20 years. Talk about the business aspect. Look at obamacare. Shes all in favor of that. I talked to a young fellow the other day who said 50 employees and 60 tax rate. She wants to raise taxes. And i believe Donald Trumps going the opposite direction. Whats best for business . Reducing taxes, reducing regulation, and replacing the obamacare disaster with something that people can afford. Logical, intelligent, but my view frankly is that he is i signed off on him very early in the game when he found it appropriate to mock a reporter with cerebral palsy. Not president ial. Basically. When he said john mccain wasnt a hero and kept on repeating it, i wrote him off. You know, its i think the people that are in favor of donald trump are basically saying i know what i get when i get Hillary Clinton. I dont want that. Im not sure what i get when i get donald trump, ill take my chances. And i am reminded of a joke i heard awhile ago where a rabbi is prosiding over a funeral and he says that a jewish addition cannot bury the deceased and the other guy in the back jumped up and said his brother was worse. Weve got two candidates highly flawed. Are you voting for hillary . Im writing in probably somebody. Im not going to vote okay. Donald trump could he could take harman cains 999 and put a lot of money in my pocket and i still wouldnt vote for him. Hes not president ial. Its a shame for the country. The most qualified guy to run in the last 50 years was mitt romney in my opinion. He did a poor job running his campaign. But quality of an individual, what he stood for as an individual, his brain power. Hes not running, though, lee. Go ahead, foster. I really appreciate your observations you made. You sound like a savvy guy. Im impressed with your assessment. Thank you. But i would like you to go home tonight and write down on a piece of paper and vote your personal interests. If donald trump is able to symptom isis and clear out all these beheadings and all these nasty things, you know, the other day the baghdadi made a comment that theyre going to kill all down syndrome children. And you know the atrocities in place. Hillary clinton says we have a plan to deal with that. Well, theyve been in power for eight years, for gods sake, why hasnt it been dealt with . I sat next to brad mcgirg. But hes stuck in a position where i personally went to camp black tiger, the peshmerga camp and talked to the Vice Commander. We are not arming them properly and Hillary Clinton says we should arm them. If thats the case, why hasnt it been done . They dont have night goggles. The Vice Commander says theyre coming up at night throwing grenades into the bunkers. Its atrocious how we have not supported the kurds. Joe, how motivated would you be to fight the enemy if they were 35 miles from your front door . Thats what these people are dealing with and weve left them out there dangling when they should be our surrogate boots on the ground. So i think that alone, the ability that donald trump will deal with the global jihad threat. Isis is just one little tributary of a huge river thats sweeping our country. And obamacare, for heavens sakes, if we dont come up with a safe plan. Everybody talks about single payer. Thats a code word for taking a private Sector Health care which is the best in the world and morphing it over to the government controlled system which is defined by all the choice you get in the military, all the accessibility you get from the Veterans Administration in phoenix, and the quality from the Union Health Care system. Our time is up, foster. Appreciate having you on today. And hopefully well see you again. Okay. Long time friend of the show. And thank you. Youre one of my heroes, joe. Keep up the good work. Youre quite a guy. Thanks. Appreciate that. All right. When we come back, jim cramer joins us live from the New York Stock Exchange on the first unofficial day of earnings season. Stay tuned. Youre watching squawk box on cnbc. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. 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Youll pay nothing at check out. Blink is accepted at all major chains and most independent pharmacies nationwide. Its free to use, it works for everyone, and purchases are always refundable. Check the blink price of your prescription now, and get 10 off your first purchase at blinkhealth. Com, promo code tv. Welcome back to squawk box. Our good friend, jim cramer, joins us now. We can go a couple of places. I want to figure out what youre supposed to do with twitter, down now again another 8 . Alcoa, its very difficult. Their segments, they are saying met their Third Quarter external guidance. They are saying that the segments beat the external guidance. It is not clear to me. Aerospace was a problem obviously. Aerospace has been a problem this quarter so far. But there is a breakup analysis that i think is worth more. There are many moving parts here that are not understandable, but there are many lien items in the deck, page 43 actually in the deck, that seem suboptimal so we have to do more work on it. And what do you do with twitter real quick . Twitter is twitter is a deep analysis has to do far more with price than it has to do with anything else and with fidelity and t. Roe. If benioff would find a deeppocketed supporter, then i think a deal gets done at 24 but that is not the price i believe that the board wants. So right now this stock is back to no mans land until i know you talked about this with david until the board of twitter, which he knows more about, gets off of this schnide of this 29 price target. If it does, i think something will happen. Coming up, we have our guest host, lee cooperman. Hell speak out finally. Well get a little bit more. At the top of the hour, you dont want to miss the ceo of alcoa, Klaus Kleinfeld will join the team. Always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. And its got the spring and bounce of a traditional mattress. You sink into it, but you can still move around. And now that i have a tempurflex, i can finally get a good nights sleep. Buy the most highly recommended bed in america for as low as 25 per month and a 90 night free trial. Our special guest this morning has been lee cooperman. We have a couple of minutes left with him. During the commercial break we were talking about taxes and also Warren Buffett came out yesterday attacking Donald Trumps comments attacking him. I have enormous respect for warren. A number of years ago i gave a speech on a subject. He wrote me a letter praising the speech. In his closing sentence was i believe in praising by name and criticizing by category, which i thought was a great comment. I sent it to my kids to give them an idea of how to live their life. In all the years i followed buffett, ive been following him 50 years, ive never seen him be critical of one individual. I dont like investment bankers. I called warren and was getting a lot of publicity on the wealthy should pay more. I believe in progressive income tax structure. I believe in giving back. I asked him what does he have in mind. If you make a Million Dollars a year, 35 , over that, 40 . Were already past that. So obama is 39. 6 but 3. 8 Obamacare Tax plus other stuff so clinton says raise the tax on the wealthy. They have already raised it. If you live in new york, your marginal tax ralt is probably 55 . What we have to do as a nation, coalesce around the question what should the maximum tax rate be on wealthy people because they provide most of the revenues to the government. It should be fair. It should be fair. Ask andrew, it should be fair. 40 is fine. Its too low, its not fair, right . Its not fair. If youre bernie sanders, you probably get 90 . I think 40 sounds about right. I know youre not going to vote for donald trump. Joe is working me over. You dont want to vote for Hillary Clinton. What are you going to do . I dont know. I said homer simpson. Youre not a believer that the writein is a throwaway . It is a throwaway. I guess you can vote for libertarians. I dont know, im confused. Im confused. Donald trumps economic plans are better for me, but he has a nasty streak to him and hes not president ial. And i think we as a nation are a laughingstock of the world today given whats going on with the debates and the things that are being talked about and what have you. Its not substantive and its confusing. Theyre pretty funny too, the rest of the world. Weve got to say thank you. It has been terrific to have you. Thank you for your candor talking about these other issues. We hope to have you back. Alfred e. Newman. Squawk on the street is next. Good tuesday morning, welcome to squawk on the street. Im ca the unofficial start of earnings season is upon us. Alcoa reports this morning, along with headlines on oil, upgrades for cat, twitter and more