Transcripts For CNBC Squawk Box 20161102

European equities everybody is keying off everybody. Again red arrows pretty much across the board and finally can you look at crude prices right now. Wti terrible session. When we were talking yesterday we were up 40 points in the morning. Funny way things happen. Theres sort of a premise and maybe its correct among democrats or people who favor hillary that trump would be a disaster for the stock market and sell off. Its funny when you see the market go down yesterday for whatever reason, uncertainty or whatever, it becomes oh, its uncertainty. You think its because maybe now trump can win . I wont go that far. Its uncertain. A Hillary Clinton win because more uncertain. Really in the past two days the likelihood of donald trump winning not two days. Five days. More than that. Two weeks. Whatever length of time you want to give it his chances have increased whether you think they are substantial or not clearly the market thinks they are substantial. And i have i know you disagree but that in at least the Immediate Impact is sort of a knee jerk sell off and ask questions later. I do believe, by the way, if you do ask the questions later the market will stabilize and might come back. Im not trying to get you to get any of these places. When you see it sells off that could be an indication that some people think that hillary is not a lock which has been three or four times its been the election has been over three or four times. The polls are so varying at this stage. You have reuters that says clinton up by five. Nbc clinton says trump up by six. Now l. A. Times says trump is up by six. Swing states. Did you see the polls. Pennsylvania, North Carolina. Some of the locks that were and florida and ohio now almost look like i wont say safe. But its getting very, very interesting. Earlier people pointed out 538 nate silver had the cubs chances of coming back and trumps chances were almost to the decimal point. I think they had a 25 chance both. And just thinking about what a 25 chance actually is. It sounds like 99 . If you have a 75 chance you think its a done deal. But the ability of the cubs to win three games thats not out of the question. Your saying were in game seven of the election. They won two. They blew them out last night. One game. I love seventh games. I may have to stay up. Cubs could still lose. 25 chance can, in fact, happen. Therefore, what happens to the market . The cubs, i think everybody would be happy and people might buy just based to ending. What is it . 108 years whatever. Ending that drought might give everyone im agnostic on that stuff. Market. Im going read your piece from yesterday to understand what the markets are going to do. Like ed keenan. How are you he said it in the notes. All right. Were going to get his take and talk to him he said that. We do have a full economic agenda today. October adp employment report is out at 8 15 eastern. The forecast is for an increase of 170,000 in private payrolls. Fed wraps up its two day meeting today, a policy statement but no press conference happens at 2 00 p. M. Eastern. Press conference will be delayed until december which is why fed fund futures are pricing bin a 70 chance of a hike then rather than this month. You can catch all of the news and complete coverage of the decision and Global Market reaction right here on cnbc this afternoon on earning central. Aliba alibaba, time warner is reporting. After the bell we hear from al qaeda. The parade keeps going on. Microsoft says russia linked hackers are exploiting a windows flaw and behind some recent cyber attacks. The group known as fancy bear has been linked to the russian government fancy pants. Cozy bear and theres fancy bear. They give them bear names because of the type of entry they use to get in. Really. Because russia is a giant bear. Thats been used to describe russia. Fuzzy bear. Thats nice. Care bear. Right in the middle of a sentence. The group widely known as fancy bear has been linked to the russian government and previous u. S. Political hacks. The bug was revealed by google and caused friction between the two tech giants. Google gave microsoft ten days to fix the flaw. But failed to react. Microsoft said they will release a fix on november 8th. Getting a hair cut . I am. Did you know that . No. I just assumed. Honest to god i am. 8th of november is an important day for you. The gray is kind of getting frizzy. Russian president putin is trying to push microsoft and its products out of russia. Planning to replace Foreign Software with domestic alternatives and has already blocked linked in. Microsoft is pretty good. Whats the russian version of like a windows operating system . You can do a saturday night live on this. They dont seem quite as good. Like a russian car isnt quite a tesla. Is it . Not yet. You saw some russian airplanes. Feel like flying around on russian airplanes. Theres new military planes. I was on your favorite website the drudge report. Theres these new what prompted to you switch off the your screen saver is the huffington post. What prompted you to switch off from that. Was a flight from mother jones . Valeant says its in talks with thirdparty to sell its salix stomach drug business. Reports surfaced that japans takata pharmaceuticals is interested. The deal could raise as much as 10 billion. Shares jumped 30 when the news reported but since mode rated. You all cleaned up ed. The president ial election today the fed meeting and this weeks job data all potentially big market movers. Joining us now is ed keenan. And tony roth. So ed has the advantage there. But tony, you got a philosophy degree like from brown. You got some ph. D. In french or something, and then you went to harvard for law school and you ended up a money manager. Underperformed. How did that work. How did you finally decide ill you got all that great education. You could be suing people in french about philosophy but youre not. I had a french girlfriend and that didnt work out. That chapter got pushed to the side. You knew how to speak french but didnt help out. It did until we moved back to states and then she left. I read in your notes uncertainty. Does uncertainty mean possible trump win or we dont know hillary will win by 60 or 70 . What does uncertainty mean for you a possible trump win. You have to look at the polls. The polls are averages over the prior seven days approximately. You look at 538 which you alluded to earlier. Which is not a poll. That combines all the polls. Theres a lag. A significant lag. 69 this morning. You look at 69. You know the momentum is moving quickly towards trump. It will stop at some point. Might stop when hillary wins. It will stop at some point. Youre looking at pretty much a coin toss at this point. The market have not priced that in. Markets are starting to price that in. So that was my point. A lot of people like to say markets really going crash if trump gets in but if the market is down since august wow the market is down. Does that mean, you know, they are afraid to connect it. They are afraid to say what they are worried about might actually happen . Petrified at this point. Thats why you were there was a piece the same day as your piece, and he looked at all the polls and the movement and the peso and concluded markets are afraid of the possibility of a trump administration. But on the other hand, i think to put this all in context were only a few percent from the all time high. Shifted his 2100 up to 2250. You jinxed him. We knew we were going 2100. Is there anyone certainty about the fed . I think were certain about fed. Nothing in november, a quarter in december. I dont think it matters now in the short term. Were focused are they going to use the language this month. I dont think it matters. The fed will keep its optionality. What matters who wins this election. If trump win, probably have 10 down side on text markets. Significant down side on the currency markets. Were at the tip of the iceberg. You think that stays that way. Is that a knee jerk, early sell ask questions later but then as people ask questions over the next month or two you get a, not necessarily a quick snap back but something that looks like that. You get significant anxiety until inauguration and through the inauguration. Whats going to happen . Heres whats going to happen. We have a country we can put you in the white house or joe in the white house and he would attract some fine talent around him. We got to see what team trump assembles. We would govern differently. There would be less government. Andrew would be in your cabinet . My kitchen cabinet. What would matter is who does trump bring around him. Does he tone down his rhetoric . Will he be the temperament he manifested during the campaign or temperament were more accustomed to as a governor. Have a honeymoon period and a lot of Political Capital . I think clearly it does. Either way it will be rocky sailing. A lot more uncertainty with trump. I agree with that. Actually theres some uncertainty but fundamentals are getting better. If you step back and look back at the fundamentals, earning season was quite good. We were up 1 yearonyear for earnings and revenue revenue was 2. 5 including a big drop in energy. Dollar strong now. Its strengthened modestly but not that much. We did research yesterday where we suggested that a fed hike might help the stock market. If you look at the historically relationship of Interest Rates and market valuations very low rates usually or associated with worse valuations and little bit higher rates may help peoples confidence in future growth. Do you take risk off for the next few months we pull back in july. Late july we took risk off the table. So i raised a little cash yesterday. Were playing it pretty cautiously. If we get a clinton outcome for sure it seems to us were at a pretty important inflection points in monetary policy. And to eds point you look at the relationship Interest Rates and savings, interest rapists goi rates go down. So we get a little bit more return on investments, saving rates go down. You know your choice. Can have kudlow as treasury. Krugman as chief of staff. Ill give you my list. Michael moore will be epa. Hes so wrong on who will be on the list. Ive given you my picks. You want some of my supreme court. Ill give you 11 of those too. We have whole commercial break to discuss. Thanks guys. Coming up just six days left until americans go to the polls and election day has been cloud by investigations into Hillary Clintons emails and the timing of the fbi disclosure. The latest from the campaign trail. Thats up next. Surprise we heard you got a job as a developer its official, i work for ge what . Wow. Yeah okay. Guys, ill be writing a new language for machines so planes, trains, even hospitals can work better. Oh sorry, i was trying to put it away. Got it on the cake. So youre going to work on a train . Not on a train. On trains youre not gonna develop stuff anymore . No i am. Do you know what ge is . Obamacare Health Care Exchange is open for you nor enrollment. The process began yesterday. The health and Human Services Department Reports the site handled 50 more applications compared to the first day of enrollment last year. This comes despite an increase in premiums as a benchmark. A typical low cost plan will cost 25 more in 2017. Just six more days to go until americans make it to the polls and theres plenty of work to do on the campaign trail as the candidates prepare to fight until the bitter end. John hard swood on set with us and he has more on where things stand. Good morning, andrew. Look this is a very close race. The polls have tightened but its still a big electoral challenge for donald trump and i just want to sketch that out for you. Remember we start with donald trump assuming the 206 electoral votes that mitt romney won in 2012. He has to build on that. Hes got four very strong prospects of taking away blue states and putting them in the red column. Were talking about florida, ohio, iowa and nevada. He leads in all of them except nevada and Hillary Clinton essentially is tied with him there. However, even if he gets all of those states he only gets to 265 electoral votes. Hes got another set of targets that key go after, problem is he is trailing outside the margin of error in all those states, places like michigan, wisconsin, virginia, colorado. All these are states that barack obama won in 2012. In addition to that youve got two prospects arizona and North Carolina for Hillary Clinton to take states out of the red column and put them in the blue and that makes Donald Trumps hill even steeper. Her best prospect is North Carolina where shes had a lead although the lead is down. In arizona she trails but very close to donald trump. So this is why the math is very difficult, guys, for donald trump to work even as the National Polls draw closer. However if he goes a point where hes wane point or two, a point and a half of Hillary Clinton in the popular vote, that electoral calculus will change because states are uniform enough that once the popular vote gets vvery close then a whole lot of states how is it possible that, for example, the nbc wall street journal poll has trump up now hillary up plus six. Well its an old poll. Old poll. Yes. We were up six the last time we did it. Some of the state polls are closer. Some are. Even pennsylvania. Will you serve in my administration as my press secretary. Whats your agenda . I got to see if i can live with your agenda. Michael moore epa. Leo is epa. I dont know what i was thinking. Who is your treasury. Kudlow is treasury secretary. And you press secretary. What i do get . I have to think. What i do get . Would you accept the vice presidency that way we can unite the country. You couldnt handle four years. Going back to the question you asked you were talking about our survey monkey poll which came out on monday afternoon. The difference between these polls is largely not entirely but largely on the composition of the electorate and who will turn out. For example in the abc the Washington Post poll yesterday it showed donald trump plus one for the First Time Since may. A week ago ten days ago it showed Hillary Clinton up 12. Whats changed . Gary langer the pollster says its not preferences its the relative enthusiasm for two sides and once you factor in the enthusiasm thats how theycle can you late who will turn out the vote. If Hillary Clintons voters are feeling more down cast they will answer poll questions in a way that causes people to say that person is not likely to vote. Since you know more about these polls and how they are taken, do you believe the polls . Yes. Do you . You have to account for different methodologies. Theres a lot of bad polls out there. There are very smarlt pollsters who know what they are doing including the people at the nbc wall street journal poll. Well have our last poll this weekend. I trust them because ive worked for them for the last 25 years. I trust them more than any other poll. However, the best way to approach it is to average all the polls. What do the candidates do themselves different from the National Polls . Thats a key point as well. Trump was in wisconsin yesterday which wasnt even a state we were just talking about. Trump has not bean big believer in polls. And tony febrezio is in dispute over payment that he says hes owed. The key difference in 2012 and why the Obama Campaign polls were more accurate than the public polls, stateoftheart in public polls has been to do ran tom digit dial. You have a computer and if you do that thats how you do get a random sample. The campaigns do it later. They have voerjt strater regist. They have vote history. They have a database. They have a greater amount of information that they bring to bear to figuring out who is going to vote based on past performance and what they think will happen and how they are going to vote. Thats why when we got towards election day last year our poll the nbc wall street journal poll had barack obama up i think a point or two over mitt romney. He ended up outperforming that and the campaign told us they were going to outperform that and they were proven right. Now everyones models can be off the next time, past performance is no guarantee of future results, so well see what happens. But Hillary Clinton has the same pollster. Im fascinated. Youve never been called bay pollster. Ive never been called. They know who youre voting for. They dont need to call you. Have you been poll snoed . No. How far been polled. I dont have a home number. Cell phones yes, i have been polled. Like many people this another problem with the polls. Its complicated. But fewer and fewer people will answer a phone call from pollsters and sit there for ten minutes and do the survey. If thats the case, it makes polls more expensive because you got to keep calling people and you have to persist with the same number, the same people who initially dont respond. If you dont call them back then you lose the randomness of your survey. This is why cheap polls are easy, and good polls are expensive. John harwood, breaking it down. That was an education for me and i want to thank you for that. Im still trying to figure out your cabinet. In my cabinet well have four or five few perm. Like rick perry ill shut down some. Ill say again energy, energy, energy. I can be nba commissioner . You dont want press secretary. I want nba commissioner. Tell me what you want. Ambassador to italy. Not bad. Not bad. For the pasta. Will you stay there . Happily. You got to buy wine for the parties. Today, were seeing new technologies make healthcare more personal with patientcentric, 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 collaborat 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. Balance transferot to othats my game bank you never heard of, thats my name haa thank you. Uh, next. Watch me make your Interest Rate. Disappear. Theres gotta be a better way to find the right card. Whatever kind youre searching for, creditcards. Com lets you compare hundreds of cards to find the one thats right for you. Just search, compare, and apply at creditcards. Com. A one, a two, a three percent cash back 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 ings that matter. Morgan stanley come back any time playback come back any time welcome back to squawk box right here on cnbc. Take a look at u. S. Equity futures. We have some red arrows as we talk about uncertainty. Well see if thats election uncertainty or Something Else. Dow will open up off 62 points. S p 500 will open off about 7 points and nasdaq will open off 12 points. American Petroleum Institute reported crude supplies rose by 3. 9 Million Barrels in the last week. Joining us to talk more our good Fred Matt Smith director of commodity research. Good morning to you. The prices come down, down, down. Above the 50 handle. Now sliding back. I shouldnt say great. Everybody has a different feeling of what great is. Where do you stand . Well, with the inventory report today we likely to see a build and that was reflected in last nights report so were likely to see prices move lower from here. How much lower . Part of it is baked in to the cake because of the number last night. But we have the opec meeting coming up at the end of this month. In terj of the actual physical flows were seeing opec the week before last loading a record amount of crude, 29 Million Barrels a day in that week. And so theres physical stress there. They are pumping, pumping, pumping. Its not saudi, iran and iraq, libya is coming back. Nigeria is coming back. Will it be sustained and sit where . Everything is hinging on the opec meeting. Were likely to get some sort of positive rhetoric out of the group. Saudi is trying to push for some sort of agreement. Should we get that well see a bump in prices. The reality is the physical flows are telling us Something Else so were still over supplied. So from that perspective we should hang in this 40 to 50 dollar region. Do you think expectations whatever we get by november 30th is too high . Are people making too much out of this . People are very negative because weve had a few meetings in the last few weeks where there hasnt been any sort of positive news coming from that. Now the expectation, that bar has been lowered so much and i think saudi is so in tune to trying to make some decision that well get something that will a little bit bambozle the market. Prices could get a bump. Even if we do doesnt mean they will put that into plays. I want to thank matt for using the word bamboozle. Like a bingo word for me. Scrabble. Is that an actual word. You might have to use all of your letters for that. Good one. Nice going. The governments Small Business administration, maybe thats what i would do, sba says women are launching more than a thousand business as day. They are still not attractings much money as men when it comes to Venture Capital funding opinion our next guest is looking to change that. So youre going live today . We went live just now. Per squawk box. Hopefully we dont crash your site right now with all the folks watching. Weve been testing extensively. How many applications are you expecting . How much money your expecting to give women in the next few weeks . I fund women is a crowd funding site for women. The crowd funding comes from the people, friends, family and followers of the actual entrepreneur. The funds are limitless, really. Weve been bombarded with applications in our beta period. We opened up application about a month ago and got a couple for a couple of 20 beta spots. Applications are coming in. Now that were open for business we expect it to be exciting. How does it work. If i decide i want to fund one of these businesses is it like kick starter or i do get a staying company. Its like a kick starter. Just for women. No other platform thats built just for women. Were different in three fundamental ways. Number one, we off free crowd funding coaching to any woman who needs it. Thats something we offer that nobody else does. Number two we help women tell stories of their businesses through video. Were video experts and women have a hard time sometimes telling our stories, talking about our accomplishments, and thats a big deal in terms of selling your business. So we help them do that. And the third thing is pay it forward model. This very different than our competitors. Where we directly reinvest 20 of our fees into live entrepreneurial campaigns on the site. The pay it forward model is nice for everybody. What type of investors are wanting to buy into these companies that feel like they are looking specifically for a womanled business and they want to go to your site instead of going to indigo go and kick starter. Were one stop shop. Theres millions of women with Brilliant Ideas and serious street credit in their careers that just need the confidence and the push to start their businesses. So in terms of investors they are every day people like you and i. This isnt for equity, this is to help get the businesses start pandemic were about funding for minimum viable products, prototypes and products. We like to think of the step before an entrepreneur is ready to go out and raise an angel round. What type of companies are involved . We have a woman in atlanta who is a Landscape Architect who is repurposing shipping containers as lowincome housing and office space which is incredible. We have a short film. We have another project who is transforming the way people view porn online which is pretty exciting. I know. What do you mean by that . What i do mean by that . Go to ifundwomen and check it out. Shes legit. We have another, a tech star who, woman who graduated from tech star. A ted fellow. Serious women with massive street credit who are starting their businesses that will blow up. We vet our entrepreneurs very, very carefully and only let entrepreneurs on the platform that have street credit. Can i ask this one last question which has to do with this whole model this idea people are twoilg crowilling to source without taking a stake. It works. When you are a real entrepreneur with a real business and street credit and a business man and you just need money to get going, right, 30,000, 50,000, too small for an angel round or seed round. Your friends, family, followers, they want to help you. So we went out and literally facebook, twitter, i cold called people, i talked to old friends from high school. Everybody want toad contribute. We raised a lot of money. That started our business. It works. Ifundwomen. Com. I would encourage male feminists to go on and swroet your dollars and happy these female entrepreneurs get started. And for women watching were open for business. Stocks to watch today, Tableau Software reporting Third Quarter revenue that missed estimates. It was particularly affected by softness in europe and middle east. Electronic arts now raising its full year guidance. Company expects to generate record cash flow due to such games as fifa 17 and battlefield 1. And pioneer Natural Resource reporting lower than expected profits in the Third Quarter. The company boosting 2016 production targets and increasing hits hedging program for next year. Mr. Ambassador, would you like to thank you, sir. When we come back a warning for holiday travellers. New airline forecasts for thanksgiving week and things could get ugly. We got tell you about that story in just a bit. Back in a moment. Opposite coming twoup hours with guest host bob journey founder and founder an lj companies. He joins us at the top of the hour to talk about election, the economy and a lot more. Squawk box will be right back. There are no bad suggestions here. No matter how lame they are. Well said, ann. Ive always admired how you just say whats in your head, without thinking. Very brave. Good point ted. Youre living proof that looks arent everything. Thank you. Welcome. So, fedex helped simplify our ecommerce business and this is not a passive aggressive environment. I just wanted to say, you guys are doing a great job. Whats that supposed to mean . Fedex. Helping Small Business simplify ecommerce. This is my retirement. Retiring retired tires. And i neveget tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not ivests. Sign up at etrade. Com and get up to six hundred dollars. Welcome back to box. Elon musk making his pitch to tesla for solar city. The 2. 6 billion transaction will add half a billion cash to the electric carmakers Balance Sheet and contribute over a billion dollars to revenue in 2017. Musk has described the integration of the energy and transportation firms as what he says is a no brainer. Heres what he had to say to nay sayers on a Conference Call to investors. Predict about outcome how could they predict outcome of tesla in the past and if they had been uniformly batting average of zero you should question whether their future predictions are going to be better. Shares of tesla are down about 13 since that deal was made public back in june. Shareholders will sheet on the proposed transaction, the date to watch november 17th. Cars are. Cars are. Elon musk. Elon musk would be my car czar. He would be head of department of energy. Stick him in there. Absolutely. Are we going to do this for the entire show . Yes. Were three weeks away database i want to be public. Im thinking jamie dimon as treasury secretary. It would upset Elizabeth Warren. I thought Elizabeth Warren would be a shoe in for you. Your people down the street wont be happy. They didnt put her in charge of her Consumer Protection see jamie dimon. I might put her this. This could filter back to that building with the bars on the windows where you work every day. Thats okay. New york times will hear you put jamie dimon in. Youll be booed. I feel comfortable with my selection. Hes a democrat. Hes not running for office. Now three weeks away from thanksgiving and travel for the holiday expected to be busier this year. Trade group can jamie and lloyd do it together. Cocounsels like in rome. Didnt work well. How about at citi group. Trade Group Airlines for america says more than 27 million passengers are expected to fly on u. S. Carers friday november 18th through tuesday november 29th and thats up 2. 5 from last year. Well have more cabinet picks when we return. Oh, my gosh. Bill acminnesota in front of the Consumer Protection. What about valeant. I have to think about that. You let people gouge price on drugs . Thats good. I hear you. Rethink that. Where do you want to but ken griffith . Strictly who is your fed chief . Going to leave janet yellen in . Bring bernanke back. Ceo double play. Ceo and incoming ceo give sandberg something big. Absolutely. Shes got a pretty big job. Government salaries are very high. Like she needs a salary. This car is traveling over 200 miles per hour. To win, every millisecond matters. 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. Withbrakes are getting warm. Ull racing can share critical information about every understood, bre bias back 2 clicks. Akes. Giving thethe ility to have speed precision. Because no one knows like at t. For the holidays. Fore his mom earned 1 ch back everywhere, every time. [ dinosaur gwls ] and his dad earned 2 back at Grocery Stores and wholesale clubs. Yeah dannys parents used their bankamericard cash rewards credit card to givhim the best day ever. Thats the joy of rewarding connections. Learn more at bankofamerica. Com getcashback. Quarterly results just came out from Te Connectivity. The sensor designer and manufacturer topping earnings expectations. Revenue was in line citing Strong Performance in their automotive and aerospace divisions. Joining us now to break down the quarter, tom lynch, outgoing ceo of Te Connectivity. And current president and incoming ceo presumably. Well see how this interview goes. Dont be nervous though. See, we should mention that Te Connectivity is part of cnbcs i q100 index because you guys innovate a lot of innovation for what you gentlemen do. Youre too young, number one, to be retired. It makes sense for you at this point . Absolutely. Been doing it for 11 years. Have a great successor. Time is right. Ill bet the companys in unbelievable position for you to take over at this point given this gentlemans efforts. Under toms leadership weve had a Great Foundation to build upon. Like you talked about with the connected trends were around, were feeling good about where we can go in the future. People may not know the company. I cant believe its been five years since you named this. Its now Te Connectivity. Is the company doing the same things it did five years ago . Or have so many things changed since then that everything is going to be a lot of things are different. Weve exited some business on the network side. Applications for vehicles, airplanes b factory floor. So highly engineered products that are critical to connecters, kr sensors. Take into account everything we can do with our hand held device. There are cables that go under the ocean that carry this. At 20,000 feet . Continent to continent. We were talking offcamera. You drop it and it sinks down. How far can you go in what buries the cable . Basically the backbone for the cloud. All the big cloud operators use our systems. And it goes continent to continent and our ships and our fleet as well as our employees actually put those in, joe. We do use rovs to deploy around the world. If theres a break, you can send something down to fix it . We send crews to repair it. How safe are they . Theyre extremely safe. So when we hear about potentially internet undersea cables being the next threat, that russias eyeing them, what do you think . Is that a head fake . No. I think telecommunications is very important. But by the largest carriers of the world. When we think about a perspective, our customers, we serve them very well. And the geopolitical side, we work with our customers around that. So how much is dependent on, like, the automotive business which has been strong. About 40 of our business. How much . 40 of the company is automotive. So we really benefit from trends around the world. What are you making that goes into the cars . Connecters, sensors. Think of every application in the car. If you want to improve emissions, you need more. If you want cameras to help autonomous driving, you need more sensors in the cars. I dont know. It sounds complicated. Are you ready . Seriously . How long have you been there . 15 years. Wow. I bet youve got probably 100,000 different products. 500,000. I said 100. Name them. Name a all of them . He could, actually. Other than okay. Whats your next biggest segment after auto . Typically the industrial markets. We serve aerospace. As well as we also serve the general market. Thats a very big business for us. And it builds on the harsh trends. Very big business for us. When you think of the internet of things, the internet of things is enabled by sensors and low cost computing and connectivity. Good business for years to come. If you could estimate a fiveyear growth rate for earnings per share, could you ill let him. Next year were basically targeting midsingle digit growth. Double digit eps. And it is around those electronic trends. We think we can grow greater gdp. Dollar has been stable going into next year. When it did strengthen down to the 110, that feels pretty solid and thats behind us. Its a translation problem but were balanced around the world. So would it matter what the next president does or is it more important that Global Growth ramped up . More important that it ramps up. We had something to do in this country. That can make a difference. Thank you. Whens your last youre going to be nonexecutive executive chairman. Id stay for awhile. Hang out. So did you plan the matching ties . Actually we didnt. Thank you. Thanks a lot. Coming up, our guest host for the rest of the show will be bob johnson. Founder and chairman of the rlj companies. Well talk politics, investing, media merger, real estate, and a lot more. Stay tuned. Today, i am helpingk better. And also feel better. I am helping hospitals personalize treatments using billions of data points. And working wi medtronic to predict the highs and lows of diabetes, hours in advance. And i am working with orreco to use Biomarker Data to boost the performance of athletes. Hello, my name is watson. Working together, we can outthink anything. The everchanging media landscape. Robert johnson joins us for the hour. From at ts deal to take over time warner to the election and who should lead the country to the debt crisis in puerto rico. Well cover it all straight ahead. Earnings, the fed, and jobs in focus for the markets. Alibaba and time warner reporting this hour. The numbers and Market Reaction straight ahead. And model and entrepreneur and grandfather of former president george h. W. Bsh is joining us to talk about building her business. Her company is looking to end world hunger. Shes here to explain how as the second hour of squawk box begins right now. Live from the beating heart of business, new york city, this is quarterback. Welcome back to squawk box here on cnbc. Im joe kernen along with Andrew Ross Sorkin and kayla tausche. Since august it has not been smooth sailing for a lot of the averages. And for a brief time yesterday we were actually below 2100 which hasnt been on the s p which we havent seen for awhile. And the discussion overnight about what was moving asia markets was uncertainty about our election. So its spanning the globe. Of course were going to talk more about it. In the headlines this morning, were a little over an hour away from adps private sector employment. Consensus called for 170,000 new private sector jobs. The Federal Reserves Interest Rate decision and policy statement will be out at 2 00 p. M. Eastern time. Investors are not expecting a rate hike this time around but will be looking for clues about the timing of future increases and whether a hike at the december meeting is all but certain at this point. Were watching shares of square this morning. It did lose 9 Cents Per Share. Revenue exceeded forecasts as well. The company also raised its guidance for the whole year because its processing more transactions and they make most of their money from a percentage fee that they charge on transactions. You get more transactions . You get more revenue. Crazy how that works. I was watching. What time was that . 5 00, 6 00 p. M. . The numbers came out and you were analyzing. She knows a lot about square. She does. I cover the payments companies. Thats why you were saying it. I was talking to you earlier about it that i was fascinated that you actually knew people watch it closely because of jack dorsey running that one and twitter. You know how to work it . Stick it on your phone and swipe it . Its tougher than it used to be. A lot of phones dont have the jack anymore. The new iphones. They use new readers. Youve seen the apple ads on what you can do. I mean, go out on your bicycle in the pouring rain and stick the thing right on the front and film it while youre doing it and it doesnt get ruined. Have you seen those ads . I saw one of them. Yeah. Pretty cool, but i dont know if thats enough to make up for not having the jack . Being water resistant. Although do you ever when you go to the bathroom with your phone. Im so scared. Its going to happen one of these days. Its going to fall into the toilet. Right . And itd be good if you could fish it out and nothing would be wrong with it. Right . Well, the trick was always to put the phone in a bag of rice. Take the back off, put it in a bag of rice. Its just murphys law. And you do it enough, its going to go in there one of these times. Theres a lot of motion going on. Im worried getting out of my car when theres a sewer grate next to my car. And ill drop my keys in there. Jeff bezos used to take his kindle, put it in a zip lock bag and read it in the bathtub. I thought you were going to sigh on the commode. Anyway, bob, glad you came in today. Great to see you. The quality of journalism here hasnt suffered at all. Exactly. Its really great. The quality is not strange. First alibaba. The retailer Beat Estimates on both the top and bottom lines. It earned 5 no. Okay. It didnt earn 5. It earned 5. 26 rinimbi. And time warner in dollars. Well above estimates. Revenue was also above forecast. Andtime warner raised its full year outlook. Well have analysts on shortly to discuss both of these. And if you didnt stay up, the cubbies taking care of business last night. This is the kind of game where you score runs finally. 93 beating the indians to force a deciding game seven in the world series. Among the highlights, Addison Russell connecting for a grand slam home run putting chicago up 70 in the third inning. Just watched the furst three innings, would have been great. For excitement. I dont really have a preference. Although theres sentimental favorites on both sides. It was the first grand slam in a world series since 2005. Game seven tonight in cleveland. I may be tired tomorrow. One thing interesting, Charlie Sheen tweeted out cleveland is getting just what they deserved because they didnt let him throw out the first pitch. When he was in major league as wild thing playing for cleveland. Why would the indians put him in there to pitch an opening pitch anyway . Anyway, what do you think . Are you going to watch . I will. But were going to have to stay up late then. But seventh game. The one time when even a foul ball you know, its like every pitch is pretty fun. If you care about one or the other team. Talking about teams, i dont know who cares about these teams except everybody at this table because its a media deal. At t and time warners megadeal sending a shock wave through the industry. Could this spark more transactions . Well turn to our guest host who has recently struck a partnership deal. Were thrilled to see you this morning. Thank you. Im delighted to be here. Lets start with this deal. What do you make of this transaction . This transaction has been coming ever since people started disconnecting from cable. And the Companies Began competing with wireless and broadband. They have to have content. I was at the lazar conference you were at. You heard redstone talk about content. Content is king. If youre Randall Stevenson and youre going to create broadband and Wireless Everywhere on every device, you cant give them a dial tone. Youve got to give them something to watch and compete. How do you own the content outright. Thats the fundamental question. Do the assets benefit each other in a meaningful way . You have to own the content if you want to take your brands everywhere. Because every time a new revenue stream comes about, if you dont own the content, the content guys a jack up the price. If you buy the content at the right time, you will own it and you will be able to monetize it across all kinds of platforms we dont know that exists today. Thats what you have to do. So what randall is saying and i was talking to him at the business council, saying they can provide a way to compete against google and youtube and facebook for advertising. Give the customer more competition choices. And lower prices. And give them skinny bundles. The end result is i guess what theyll tell the regulators and i would agree, this is in the best instance of the public. They now have alternatives to the pipe and alternatives to advertising choices. Hindsight is 20 20. Time warner used to have a Cable Company and they split up years and years ago. Would this have happened if those two companies were still together . Or would time warner the content and tomb warner the pipes been able to basically create some sort of competitor to what theyre doing with at t . I made a prediction some years back at the alan and Company Conference that people would not continue to pay for programming that they didnt want to see. And they wouldnt continue to pay to be connected to a set top box that cost them a lot of money that they didnt have control over. And ultimately what happened with the cable operators, they got caught sleeping at the switch as the digital age allowed the customer to start having over the top streaming, other choices, advertising, and interaction with their phones in a way they couldnt do it with cable product. And the end result is this is not the first time that the Bell Companies wanted to get into content. You know, a long time ago, verizon was going to do that. But time warner is not in the middle abges. They have a lot of products consumers want. Andrew thinks theyre in the middle ages. Customer service. Theyre not stuck in the middle ages but their prices are and their demand that you buy everything in a big bundle, thats stuck in the middle ages. You get an iphone, how many apps you want and thats what you get. You get a cable box, you get 500 channels and about 75 of the people watch 25 channels. How long can that model last . Andrew, you have in the past when weve talked about this, to me on face value it makes a lot of sense. But you have said what regulators are going to decide on to approve the deal is going to remove all the advantages to the deal in the first place. I think theyre going to i think its possible that the deal goes through. But i believe they will handcuff both companies. In what way you said itd be better in licensed or it wont be exclusive to at t. When i talked about the handcuffing i imagined a regulator could tell at t, for example, a you cant do any whats called zero no data cap. So you cant set up a situation where bobs going to tell you why youre wrong. Tell me if im wrong. That hbo is going to come with your at t service and its not going to count against your data cap. But if you do that very hbo, you have to do it for netflix and others. To me as a customer, say hey, if you take my service youre going to get a better deal than if you take it from verizon. Becomes harder. I dont know exactly what the regulators will say, but i do know that the regulators are likely to look at this and say is the public better served by having more competition in advertising, in buying what they want to pay for, and not being tied to a bundle of services. On this cable system. Greater than they would if you didnt own it. So they did that. Now, they will probably do Something Like that that they cant they would probably say to at t, you cant say were going to pay hbo. Well charge this for hbo. But showtime were going to charge yous this much to be on it. And i think at t would say thats great. You know, we want to be as much content as we can. The other thing weve talked about is if i were Randall Stevenson and youve got a bunch of wireless customers. All right. Its a pretty good business. But the ability to buy a studio and all these varied content assets and be that type of company in the future that is a real player in the landscape, you said maybe its better for the customers to buy vodafone or something. Right . Thats the other thing. Does that make sense to get more wireless or be able to have scale in the business youre already in . Or do you go because randall may not be a media mogul. He may not be cut out to be a media mogul. I dont think he has to be a media mogul. He has to hire people to run it. And hes already tapped into talent b. Hes tapped into talent like peter so he can find talent. So it wouldnt be better for shareholders just to buy vodafone . Why would you buy wireless without having the capability to have more than content. Advertising. Advertising is moving heavy to mobile as millennials and other consumers consume mobile devices. Thats the way the television of the future is going to be an individual asset people take with them around the world. As long as they can get whatever they want to get. And thats why you want to have the content. Because thats where the advertising is going to follow the customer. You know, the customer is going to demand what they want to see. And the advertisers want to say i want to be a part of that customer experience. And so you buy content. You buy advertising. And your phone Service Becomes more popular as a product. Weve got to sneak in a quick break, but when we come back we got to pay our own bills. But i want to hear about bobs deal with amc when we come back. I thought you were going to say puerto rico. That too. Thats a triple bottom line when you say puerto rico. Well get to all of it. Coming up on squawk, reaction to alibaba. Numbers out moments ago. Well speak to an analyst about the results and see if the stock is a buy right now. Only six days away from the next election. Wall street journals Holman Jenkins drops in to talk what voters can expect in the next week. In the meantime, here are the futures at this hour. Uncertainty. Is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. For 5. 5 billion in cash or 12. 75 a share. Broadcom of course is a chip makers while brocade is a maker of equipment. Alibaba out with its q2 earnings just moments ago. Joining us gill luria. Your read on the quarter . Its a good quarter. They exceeded expectations top and bottom line. Revenue grew 55 . Very impressive. 79 cents of earnings on stable margins. So initial look is a good quarter. They have stopped reporting the underlying metric which is volume growth. They told us theyd do that. But it still doesnt look great since that was the one metric that was decelerating going into the quarter. The stock is rising premarket. Its up about 3. 5 . But given how volatile the equity market has been. Do you think these are gains that can hold . One of the concerns is the health of the chinese economy and the chinese consumer. If our election leads to any trade disruptions between the United States and china, that could be a disrupter to alibaba. They have a decent sized business selling through ali express. And their chinese consumers do buy american goods. That could be a disruption to alibaba. Ecommerce is still the corner stone of the business. But Digital Media out performing. So some of its Venture Investments out performing, Cloud Computing. How long do you see the time horizon for the diversification of this business, gil . Theyve been able to do it very quickly. Theyve been able to divorce themselves from the underlying growth of ecommerce. The challenge there, though, is all those businesses you named are big moneylosing businesses for alibaba. Media, cloud, and other innovations. Thaur going to have to balance the shift to the businesses with the need to maintain profitability. Well, they beat on pretty much every single metric. Thats why you can see the stock up this morning. Gil, appreciate your time this morning. Thank you very much. Gil luria. Time warner reported earlier. Joining us james goss. Most of the key metrics look pretty solid, james. Is that your take at first blush . You know, i think everything did well and was better revenues for estimates. Turner was up 8 . Warner brothers, revenues were up about 7 . So that was solid and in line. Warner brothers also did a little bit more. They had a slate although they had some negative comps versus at that time. So are there any troubling trends that people see in the Big Media Companies that are manifest in this report as well . And we just had a long discussion on at t and time warner. Im not convinced necessarily that jeff needed to sell. Maybe its just a good price. But is there anything thats concerning that you see in the report . You know, i have some of the thoughts you just expressed. Time warner would be fine with or without the deal. I think its probably always good to sell at a premium. But i think the i saw a little of mr. Johnsons comments and i think one of the thoughts thats different versus Time Warner Cable which is arguably a better quality system in some ways with a wired system, but at t provides National Satellite mobile. So that National Platform and the mobile element i think are good elements that, you know, they bring to the table for time warner. James, what are the how do you handicap the chance this transaction gets done given that arbitrage and other investors put it at only 30 or 40 given where the stock is trading . I think theres the political element im sure youre all aware of. I think thats the issue that probably drives it. If every major candidate both parties are coming out against it. The sentiment might be strong to at least bring it down. Except the question i would have would be on what basis. I dont think you can turn something down just because you dont like it. I think you have to have some reasons. Whether or not the blend is more than they could do if they simply partnered, thats another question. But i do think the opportunity to have the deal closed from a stock standpoint is greater than the risk of it failing. Because even if the deal did not happen, time warner had a lot at the level of which its trading or at least slightly lower and it has continued upside in the future. So i think its on a roll right now. Everything doesnt work perfectly every moment. But it has very solid divisions. And i can see why it would be attractive to at t if they were going to try to strike a deal with a media player. One of the things you might want to put in about the regulatory change Regulatory Approval is that the Justice Department of the fcc is going to take responsibility for this. The fccs nexus is the satellite carries what time warner owns. If for some reason they dont have to change the satellite ownership using me satellites they own, then it might just go to the Justice Department. As a consumer because you do have Big Companies competing against each other. And that i think would be the issue in terms of looking at it from a trade issue. I agree with that. But to the extent that this is a vertical merger, i think time warner will always have an incentive to find any customer can have whether its with at t or not. So and its been very mobile focused in recent past. So i think that will continue either way. Okay, james. We appreciate your time today. Thank you. Thank you. Update, andrew. I got to find a place for sheila baer too. Maybe santelli doesnt take fed chief, im going to put sheila in. You could probably use her. And you should have some republicans in your administration. You know, they try its nice to do that. D aflac pays cash. Aflac isnt Major Medical enough . No whos gonna help cover the holes in their plans . Aflac like rising copays and deductibles. Aflac or help pay the mortgage . Or child care . Aflaaac and everyday expenses . Aflac learn about one day pay at aflac. Com boat blurlbrlblrlbr yeah. Well, we gotta hand it thto fedex. Glasses. Theyve helped make our ecommerce so easy, and now were getting all kinds of new customers. I know. Can you believe were getting orders from canada, ireland. This ones going to new zealand. New zealand . Psst. Ah, false alarm. Hey you guys are gonna scare away the deer idiots. Providing Global Access for Small Business. Fedex. Now the answer to todays aflac trivia question. Which Major League Baseball team won the firstever world series . The answer, the boston americans. Now known as the boston red sox. Welcome back to squawk box. Among the stories front and center, investors focusing on the october adp report. Thats due out at 8 15 eastern time. Consensus calls for 170,000 new private sector jobs. Well have the numbers for you the moment they hit. Mortgage applications fell 1. 2 last week. Thats according to the mortgage banking association. Both refinancings and applications fell. And facebook leads a busy afternoon after the bell today. Its expected to report profit of 97 Cents Per Share on revenue of more than 6. 9 billion. In electronics arts, look for the holiday slightly below estimates. But expecting to generate record cash flow due to new games such as battlefield 1. I think were looking at a little bit there. And elon musk making his pitch to investors for teslas purchase of solar city. Musk argues the merger would add more than half a billion dollars in cash to the electric car makers Balance Sheet over the next three years. He also says it would contribute more than 1 billion to revenue in 2017. Musk has described the integration of the energy and Transportation Companies as a no brainer. Heres what he satd to naysayers on a Conference Call with investors. For those that predict a bad outcome, how good have they been at predicting the outcome in the past . And if they have been uniformly batting average of zero, you should really question whether their future predictions are going to be better. Shares of tesla are down by about 13 since the deal was made public back in june. Shareholders vote on the proposed transaction on november 17th. And of course they did post a surprise profit as one talking point for investors. But well see what they do in just a couple weeks time. Saw a headline the other day they moved subsidies in europe for electric cars. And they didnt remove them. They lowered subsidies and sales were down 80 . Its hard to do it without government help. It wasnt tesla, but it was another maker over there. This is definitely my director of energy and head of epa. Im going to put i know that. This way im saving money so i dont have to have two of the same people. Holman doesnt know this, but weve been selecting our cabinets. I got sheila bair as the fed chief. Sure. Gene kimmelman at the department of justice i would think. He wants Leonardo Dicaprio at epa. Joe is going to be my body man. My reggie love. Holman jenkins is going to be my chief of staff if youll have me. Oh, he said no. Staff work isnt my thing. Okay youre going to run the entire place. Below his pay grade. The fbis renewed interest in Hillary Clintons emails. Holman jenkins writes twice business article. This week Hillary Clinton becomes the unsafe hand. And weve had some discussions earlier we had Kellyanne Conway on about if either candidate gets in, it could be i dont know what the first hundred days looks like, or the first year. But theres five separate situations going on with the fbi. Surrounding her closest associates and herself. This makes it maybe trump. You can say all you want hes going to cause a nuclear war. Little thing like that. You can just say it, bob. Say it without any reason for saying it. Thats my point. But these are real fbi investigations going on right now. The only investigation for trump was for russia and you saw on New York Times yesterday on page 18 or whatever, they came up with nothing. But lets let holman a few weeks ago the pitch to republicans was was she was the one who showed a habit of working across the aisle when she was a senator from new york. Thats gone out of the window because of these investigations. You already see it with these stories about groups on the left drawing a blacklist of future clinton appointees to make sure theres nobody on board who might have experience in the private sector or have sympathy with business. Yo go to your base and her base is the left. That will kill whatever hope you had for a Clinton Presidency reaching across the aisle with paul ryan and doing something. Holman, ill take exception to you based on a couple things. One, ive known hillary for 30 years. Ive known the whole Clinton Group for that long. At the heart of what will happen after hillary is elected is this. The republican wills keep the house. Im going to predict theyll keep the senate because of what results from trumps rise. Which means that if hillary is going to have a successful presidency, shes got to move to the senate. And the senate because two years after shes in office, there are 25 democrat seats up for election in the senate. They are not going to want to be running to the left. Theyre going to be running as moderates there. Thats the only way shell be able to find sympathetic republicans like paul ryan and some of the others in the senate who will say hillary lets sit down and cut a deal as to how to deal with issues and the country. That was my argument a month ago. Just imagine if theres more wikileaks dumps of emails. If theres a serious investigation, theres going to be investigations in the Republican House of the Clinton Foundation and of the fbi email server. Republicans will be pushed to e the right. Shes going to look for sustenance on the left, people who will support her. I think the happy scenario you talked about and i talked about three or four weeks ago is just holman, you made some points about the original determination. That was when things went off the rails. He hadnt seen all the evidence. But he had enough to know they gave immunity to five people and let them plead the fifth. They destroyed all the happen tops afterwards. They didnt convene a grand jury. He was trying to play judge roberts and not insert himself into the election. Then all this other stuff comes out and he goes, oh, my god, i made the wrong move in july. Now ive got to try and salvage it this time around. Isnt that what happened . I think and the i think the big mistake was saying anything at all. He should have let it hang out there until after the election. That was a lose lose situation. It would have leaked either way. Let it leak. So much stuff is leaking anyway. You cant have a democracy determined by a leak. You just cant. You know, if you do that, you know what youre setting up is a process of leaks give reward to isnt that how washington works 24 hours a day . Thats how it works. But it doesnt work with this kind of situation we have today. 11 days before the election. The fbi chief on very Little Information that he possessed, forget the agents for the moment, decides that hes going to put into the hands of the congress a letter that says i think i have to reopen this investigation because of pertinent information that appears. Pertinent that appears. Pertinent meaning relevant. How does it appear relevant if he hadnt seen it . So now hes stuck in a situation where if he calls in tomorrow and says hillary, we looked at that as weiner and huma stuff. Youre okay. The other side is going to scream holy hell, right . So if she gets elected and wins and he goes after this way, youre telling me this same fbi is now going to say im going to put on a grand jury to impeach maybe the house will grab it after to bring impeachment charges . I think the house is going to grab it and you dont know whats going to come out yet. Thats the thing. I think its not the emails on security grounds. Its the potential obstruction is the problem in the server case. Then theres a whole set of Clinton Foundation issues which come bubbling up with pay for play and that sort of thing. This is a headline from usa today. The lawsuits involving trump and his businesses remain open. Those include Trump Foundation which is under investigation in new york. Theres a headline from the guardian. Trump lawyers ordered to appear in court for allegations that trump raped a 13yearold girl. Thats going to happen in december. Theres a restaurant lawsuit over trumps racist comments that still isnt settled. Thats from the washingtonian. I can go on. The list is extensive and this will go on for actually not even months, i would say years. I think youre right. Trump has one card that hillary doesnt have. Hell have a Republican House investigative committees will be in the hands of the party that he is nominally aligned with. That helps. But i plan to be disappointed no matter who wins this election. Holman, thank you. Thats a really uplifting take, holman. Thank you. Certainly weve all been living in the past six months, thats been expressed more than a few times. Thank you. Thank you. Coming up, were going to get uplifted. Feed founder Lauren Bush Lauren is going to join us. Feed is looking to end world hunger. Lauren is going to join us after the break to talk about her company and what shes doing. Were back in a moment. 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. Welcome back to squawk box this morning. Nearly 800 Million People around the world struggle with hunger every day. And sadly many are children. Our next guest saw the problem and decided to harness entrepreneurship to do something about it. Lauren bush lauren is the ceo and founder of feed. Shes appearing this week at fast companys innovation festival. Were thrilled to have her. Shes a friend and thank you for coming in this morning. Thank you, andrew. Help us understand what feed does and how you came up with this idea. Sure. Next year is our tenth year which is crazy. And really i was so inspired after starting to travel with the u. N. World food program when i was a student in college and i really saw the plight of hunger first hand. One in nine people in the world face every day. So its so massive and yet the program i really fell in love with that i saw helping so many children around the world. In 62 of the poorest countries around the world, kids are getting a free nutritious school meal. That costs between 10 to 25 cents. So so little. So i came back from those travels really inspired wanting to do more. And to do so i love design and fashion. So i sort of fused this all together. Created feed which is a brand, a consumer goods brand. Every product we sell has a number on it. And that signifies the amount of meals were able to give on the sale. How many meals can you get . It depends on so the more expensive the bag, the more meals you get. But they range from 25 to 150, 200. So try to be reasonably priced. But the cool thing is as a consumer you know exactly the impact youre having. So its not sort of a percentage of profits or proceeds. While thats wonderful. With hunger you can have that meal metric nap tangible, meaningful. You think about this being an outward looking program. But you also work here at home. Even though our standard of living is higher than third world countries that youre operating in. So how do you identify which parts of america need feed . So really we relien our giving partners in america and abroad. We work on feed america. The new york food bank, every local food bank is a feeding america food bank. For the most part. So the money we give here trickles down where the need is greatest. Wheres the need rising here . The need is rising i mean, theres unfortunately so much hunger even in our own back yards here in new york city. I think the appalachia area of america is the highest food insecure area. But unfortunately, you know, 49 million americans rely on food aid, support from feeding america and the food banks. And thats not, you know, i would have thought maybe thats once a year. Thats pretty consistently, theyre finding. So its pretty staggering, the issue of it. The companies that have social emissions but theyre also looking to make a profit. There are companies that are 0 5 01c3s. We started prebcorp. Where do you land on that spectrum . The devils advocate position on this is they say its great marketing for certain types of companies. I know warby parker gets a hard time on this. People say are they buying the glasses because they want to give them to somebody else, because they love the glasses . How do you think of that . I think its fascinating the last ten years. Feed was at the beginning of this sort of social business movement. To see that spectrum evolve and see bcorp. Actually being a company standing. I think its great. I think now for consumer who is want to make sure their products are ethically made and have that transparent supply chain. I think when we started feed was that anomaly in a company that gave back in a significant way. We are a for profit. We do give a significant amount of our profits away, obviously. Were still very small team. And i think it is for founders and companies to sort of set up that margin structure and really understand how profitable. How quickly can you grow. And for me i made that decision of never wanting it to be good washing in a sense that its a penny on the dollar. So we really try to give back. Where do you think the business goes . Obviously bags are the biggest part of the business now. Five, ten years from now . World domination. No. Unfortunately the cause of hunger is still there. I hope feed as a brand can grow. I think nowadays customers want a connection to what theyre buying or the services theyre acquiring. Lauren, what kind of food do you provide to the consumers who you when you buy a bag, what do you get . So the food via the world food program, the School Feeding is corn soy base. So its nutrient rich porridge at least. And thats supplemented with what locals can provide as well. What we try to do is buy locally to feed locally so you have that sort of sustainable loop there. Youre supporting local farmers and communities but also giving back. And here in america feeding america, its an array of food they can provide via food banks. There is a movement trying to provide fresher food, more produce, more protein. But it is often which im sure would be canned goods and preserved goods as well. Are we going to get a partnership between ralph lauren, david your husband and feed together . We did one way back in the day with rugby. Do you remember that brand . So weve done a Little Things here and there. Thank you for coming in this morning. Great to see you. Appreciate it. Coming up on squawk box, more from our guest host bob johnson from rlj companies. Stay tuned. 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 . Lets take a look at some stocks to watch this morning. Estee lauder reported 4 cents above estimates. Revenue was below forecasts. But the Cosmetics Company says theyre pleased with results. S and clorox fell 6 cents short of estimates with 1. 36 a share. The revenue above forecasts. Why . Says that the household maker was helped by lower modty costs but its also been spending more on advertising . Is bleach elastic . People use bleach. Wow. We sold a lot of bleach this quarter. Why . Isnt it thats what happened though. You dont want to know why someone sells a lot of bleach in a quarter. If you dont have it, its like lawyers. Dont put them down until you need one. Then you take back everything you said about them. We only got a minute or two before break. We have not talked to him yet about his transaction with amc. How did that happen . Well, it happened first of all, ive known josh sapan for almost 25 years. We both started in the cable business. Runs amc. Ceo of amc. Josh and i met at a conference. I started talking to him about the company back three years ago that owns a british mysteries and drama channel called acorn tv. These are over the top streaming channels. And an independent distribution business. And josh looked at his portfolio and assets and saw there were synergies there with an urban channel they have. Matches up somewhat with umc. Then bbc america. That matches up with acorn tv. British mysteries and stories. And of course they distribute sundance and ioc. So when we looked at it, we thought heres a chance to take a look at a company with superior management, got a great ceo and myself. And we said lets do this. And be part of the over the top streaming world. And Work Together to do something exciting. Okay. Were going to talk more about this in the next hour. Including speculation that amc may one day be a takeover target. But hold that thought. I know youve got a thought on that. Coming up, with just six days to go, Hillary Clintons numbers are slipping in slight of the fbis probe of her top aides emails. The latest from washington and reaction from our guest host bob johnson straight ahead as well. He didnt know that was coming. Take a look at futures right now. Were in the red. Dow looks it would open off about 36 points. Back in a moment. Mary buys a little lamb. 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. Breaking jobs news. The adp employment report is minutes away. Well bring you the numbers and Market Reaction straight ahead. Cyber attack. Microsoft says hackers tied to the russian government have exploited a Windows Security flaw. Plus if youre planning to travel thanksgiving weekend, get ready for record crowds. Well tell you why as the final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box here on cnbc. Im joe kernen along with Andrew Ross Sorkin and kayla tausche. Our guest host Robert Johnson who doesnt believe i might write him in. You dont know what im going to do. I may just put rlj down at the bottom. I saw it. Youre not one of the 18. I guess kasich put john mccain whos not even one of them. But if i put rlj, theyll know who im talking about. Founder and chairman of rlj companies. The adp employment report now about 15 minutes away. The economy likely added 170,000 private payroll jobs last month. And you know what im writing for vice president. Ars. Thanks. Thats my ticket. Its also a fed decision day. Wrapping up a twoday meeting. Black and white. Ebony and ivory. Announcing at 2 00 eastern today, were going to hear it. But theres no janet yellen News Conference this month. So very unlikely anything could happen. That would be a shocker, though if they decided to go up a quarter this month. How happy would you be . Very happy. But zero chance, right . I think theyre at zero probably. Or close to it. Pretty much. You can catch complete coverage theres a chance. Sop watch. You can catch complete coverage at 2 00. Ahead of these events the futures are down just 36 now. Theyve paired their losses. Really kind of in half. S p indicated down three. Nasdaq down just over one. And the 10year had been pulling back from really almost got to 1. 9 . Now were back below 1. 8 again. Making headlines this morning, Mortgage Applications falling 1. 2 in the latest week. The Mortgage Bankers Association Reports both new purchase applications and refinancings each fell. Average 30year Mortgage Rates fell to 3. 75 . Broadcom buying Brocade Communications for 5. 5 billion in cash. Brocade is a maker of networking equipment. Valeant pharmaceuticals confirming it is in talks to sell its stomach drug business. They had pegged the price at about 10 billion. They will only say theyre in talks about various divesitures. Alibaba beating estimates big time on the top and bottom lines. Revenue rising 55 over a year earlier. A lot of people have been focused on the future of alibaba. Quite a beat this morning. Also time warner posting better than expected earnings and revenue as well. The giant raising its forecast. Recently announced a deal to be acquired by at t. That stock now trading up both on that news but i wonder people will will start trading up on whether its going to go through. The stock at this point is trading on whether you think it happens and how quickly it happens. Really, thats not its going to be a little bit earnings. But youre topped out at the top price. But it was conspicuously below 90. Now here we are. As we move on. But people like bob talking about it. Its too early to tell. You think it will help consumers. I know it would help consumers. If it wasnt an emotional sort of a knee jerk reaction that people take the big mergers, if you look at the actual laws themselves and what regulators are supposed to do when they consider these things, i think thats what randall was saying. Both of them were saying if you look at it the normal way with a few provisions, this should be a deal that gets done. Right . I think on a straight legal basis, sort of straight antitrust it should go through. Question is how you define the question is whether the worlds changed. Absolutely. Really depends on in my opinion if the fcc gets it, it may get caught up in net neutrality. I think they got to look at it at the legal facts. Does this harm the public . Or is the public better served . Thats what i think. Because i think every time new technology has emerged, competition and content brings more choices. Remember when broadcasters controlled everything in the world . They said, my god, free tv. If cable comes along, all the poor people are not going to have tv because they cant afford cable. Look what happened. Cable becomes this sort of the choice among all americans for variety of content. Then all of a sudden, digital internet, broadband, wireless. The same thing will happen. Youll get more choices. Randall is smart and so is jeff. Political news. Election meets business, if you will on some hacked emails showing that eric schmidt now playing a crucial role in Hillary Clintons technology. Reporter good morning. Were learning a lot more information through these wikileaks which continue to churn out new information stolen from John Podestas email every day of the week. In this case we learned of a new email that went from eric schmidt of google and alphabet to cheryl mills, a key clinton adviser back in 2014. Although it shouldnt be surprising necessarily to find out that schmidt is in contact with democrats, hes a well known supporter of barack obama and Hillary Clinton. What were learning now is the level of detail of that involvement. How early on it was for the Clinton Campaign and all of the different issues that schmidt was focused on. In the memo he writes an overall guide to the 2016 campaign which was then two years away at a level of detail. Hes even talking about such things as hiring. He said its important to have a large hiring pool such as chicago or new york city from which to choose enthusiastic, smart, and low paid permanent employees. Another couple of excerpts from this. He said a separate auditing function to ensure no one is profiting unfairly from the Campaign Including at one point he says himself. And then he also says, the computers will be in the cloud and most likely on amazon webb services. Interesting he doesnt recommend googles product there. So a level of detail here in terms of the smartphone usage and registering voters. Organization and staffing of clinton headquarters. All of that coming from eric schmidt inbound to Hillary Clintons circle. This coordination seems to be when you read the other emails around it very important to the Hillary Clinton universe. Theyre talking about him as a donor and supporter. His input seems to be taken seriously by the Clinton Campaign. Eamon, this is wikileaks what . What number are we on . You know, they churn them out almost every day now. Is it 20something . 25. Were only up to like 50,000 emails. Yeah. And think you think 650,000, god almighty. And this is rocking washington. You saw the headlines yesterday with Donna Brazile over at cnn. Shes a democratic strategist and cnn parted ways with her this week as a result of some of the information that came out in wikileaks in terms of her potential coordination with the Clinton Campaign. So this is reshaping peoples careers here in d. C. And significant impact. Between andrew and me, when they see us making plans on weekends and trips together with the families. This whole thing, this dynamic we have, thats yeah. I have to say, eamon, those eric schmidt emails, you know, people say why is he is great manager . Theyre actually really well written emails suggesting how to manage Something Like this. The Clinton Campaign kpleerly welcomed this email and was looking forward to his input and his money. A lot of times when you have big donors, you have to taul take all the advice. This is a technocratic word he puts out. Little scary when hes controlling the search terms to what comes up. Let me mention a couple caveats that are important. One is these are stolen emails from john podesta. They have not been authenticated by the Clinton Campaign. Theyve never said these are individual emails that are accurate or altered in any way. So we dont know that. Also we reached out to the Clinton Campaign and to google on this particular email and asked for their input. They have not responded to us on that. But everybody i think who was listening to us today understand that theres nothing wrong with a loyal supporter writing to the campaign or to the candidate and saying heres ideas that i think would help the campaign and the candidate deal with the various issues of launching a president ial race. I myself have sent emails to john podesta, robby mook, and the secretary giving my advice on how to involve on the private server . No, i sent it to podesta. You said to hillary too. Well, i said it but you said to the secretary. So you didnt have the private server address. No, i didnt have the private server. But i went to i know she had it because she responded and said these are good points. Did she respond on the private server . By phone. Must have been good. The idea is we shouldnt get excited because eric schmidt whos been a loyal supporter of the Democratic Party and the policies would write the candidate. I think its a good thing to do. I can tell you one thing about that. Thats absolutely right and Campaign Managers over the years have said and complained privately that they get all these memos inbound from the big donors and support es and have to treat them all seriously whether they take them seriously or not. You get a lot of unsolicited advice. In this case googles competitors are watching this carefully and looking at these emails. You know, this gives ammunition to critics of google who say that this is a company thats too powerful, too well connected in a democratic controlled washington and et cetera, et cetera. There is some potential fallout for google here with competitors. Its a level of detail that you never would get other than looking at the Campaign Filings and see a guy made a donation. Now we see what hes recommending and the level of detail and how thats received internally. Eamon, we appreciate it very much. When we come back, adp employment report due in a couple of minutes. Well bring you those numbers and the Market Reaction after the break when squawk box returns. Today, i am helping people work better. And also feel better. I am helping hospitals personalize treatments using billions of data points. And working with medtronic to predict the highs and lows of diabetes, hours in advance. And i am working with orreco to use Biomarker Data to boost the performance of athletes. Hello, my name is watson. Working together, we can outthink anything. Its been over 100 years since hello, my name is watson. 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 investg isnt about achieving average. Its about achving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Want a great way to help our children thrive . Then be sure to vote yes on proposition 55. Prop 55 doesnt raise taxes on anyone. Instead, it simply maintains the current tax rate on the wealthiest californians to prevent education cuts that would hurt our kids. No wonder prop 55 is endorsed by the california pta, teachers and educators. Because all of us want to help our children thrive. Its time to vote yes on proposition 55. Welcome back to squawk box. Take a look at futures at this hour. Following the lead of what we saw overnight in asia and in europe. We have been negative much of the morning. Although we are off the lows of the morning. If we were to open right now, s p 500 would open down by four. The dow would open down by 41. The nasdaq would open down by two. Take a look at where we are on the 10year note ahead of this afternoons fed decision. Were at 1. 79 . Of course no press conference today, joe. But well watch the bond market and the dollar to see what the markets expecting. Okay. The adp employment report just crossed the tape. Steve leisman has the numbers. We got to get right to it at 8 15. Its a marketmoving event. 147,000. Private sector payrolls for the United States rose by 147,000. And a big revision to september that i think is more statistical than real. Ill tell you why. It looks like adp has revised its model. That results in a 47,000 upward revision to september but 202,000 over the course of the year the total revision is minuscule. The goods sector falling by 18,000. Going to talk more about that in a second. Services surging. 165,000. And theres the nonfarm payrolls. I would say this number is weak enough to create a whisper number that looks for a lower or a less than expected number on friday in the nonfarm payroll. Want to show you some of the detail where that weakness was. Construction falling 15,000. This after in the bls numbers it rose by 23,000 last month. Education also down 12,000. Interesting number right there. Leisure hospitality up 38,000. Health care up 34,000. Financial activities up 18,000. With the big question, is this enough for and theres the small, medium, and large business. Big number there for large business. The big question being is this enough for the fed to hike . I think so. It seems in line with what the United States economy is able to produce or should be producing jobwise. Dont take my word for it. Lets bring in mark zandi from moodys analytics. Good morning here from washington, of course. Tell me. The weakness in construction and education as well as the kind of undershoot relative to estimate, how is this showing how the jobs market is right now . I think job market is fine. I think underlying job growth is down 150k. A year ago it was probably closer to 200k. Some of that might be energy. Constructions been a little soft mostly in public construction. But the biggest reason for the slowdown in job growth is i think the labor markets tight. Theres a lot of open job positions. A Record Number of open positions. I think the markets strong. I saw that in your report, but i dont know how you can tell from the number of jobs added that there was reason because the job market is tight and that employers cant find workers. Well, im connecting some dots. You know, theres no proof. But we do know that there is a Record Number of open job positions from other bureau of labor statistics data. Its pretty much across every industry. And its evident in the acceleration in wage growth. So you go back a couple years ago, wage growth was about 2 . Now were closing in on 3 . Its accelerating in those sectors where we have more open job positions. So thats consistent. But youre right. I dont have its not a smoking gun here. So lets cut to the chase here. Is this enough for the Federal Reserve to continue on this should it hike at the meeting today . Well, you know, if they didnt want to interject into the election, i think they probably would hike today. Theyre doing what theyre supposed to do and not get involved in the center of the election process. Theyre going to wait until december. 150k means that labor markets continuing to get tighter and tighter. Yeah. And were pretty close to full employment. So i think the fed has to get going here and start normalizing Interest Rates in a much more consistent way. Not one rate hike a year but two or three rate hikes a year. Lets talk about that education decline being down 12,000. Is that a seasonal thing or is there really some weakness there . Say from the local and state governments not hiring as many people . I think theres some seasonality. I dont think its as weak as this number would suggest. But the Educational Service sector is under a lot of disruption. You know, the Business Model there is kind of broken. You know, Student Lending has been financing the activity there and thats just not going to work going long run. Youve got a lot of online competition. My sense is the Educational Services sector is going to be under some pressure. This number overstates the case, but it makes the case. Are you going to take the under mark given how you do your estimate for the friday nurnl . Youre taking on the forecast of 170,000 jobs. The only thing i hesitate on, i would take the under. Take the 170k. You know, this is coming up to the Christmas Holiday season. Theres a lot of highlighting to that. Maybe we get a little bit more juice. Underline job growth for 150k. Thats the number i would go with. Right on. Thank you for joining us this morning. Mark zandi. Back to headquarters with andrew. Thank you so much for that. When we return, well talk about alibaba posting quarterly results. Beating on the top and bottom lines. Were going to talk about it when we return. Give you some highlights from the companys Conference Call in just a minute. Plus airports are bracing for a travel surge this thanksgiving. Details on that. Stay tuned. Youre watching squawk box right here on cnbc. Whats the value of capital . 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 e capital is to create, not just wealth, but things that matter. Morgan stanley the market. Redict but through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back to squawk box. If youre planning to hit the skies for thanksgiving, brace yourself. Because there could be more crowds than usual. Travel for the holiday is expected to be busier this year. Thats according to the trade Group Airlines for america. More than 27 million passengers expected to fly globally on u. S. Carriers from friday, november 18th through tuesday, november 29th. That averages out to 55,000 travelers a day over last years period. And i will be among them. Selfishly very curious about this. And were less than a week away from the president ial election. Polls continue to show the candidates in a tight race. Our guest host this morning is bob johnson, a friend of Hillary Clinton for 30 years. Lets think about that. So 30 years. And it wasnt 22 years and then a pause for the current president and then back to Hillary Clinton. It was 30 years and you actually supported hrc right through the 2008 election. Ive known bill and Hillary Clinton for that time period and ive been a supporter of the president bill clinton and supporter of hillary through all of her activities whether its in the private sector where she was working with a Foundation Like the childrens defense fund. Or whether she was running for the senate in new york and ultimately of course as secretary of state. Youre a guy that they should trot out there. That knows her and could probably do a lot to tell people, you know, what shes like as a person because of the impressions that other people and to great drk i wouldnt say great peril. But you took some flack for not support b president obama. And for an africanamerican to be on hillarys side at a time when most africanamericans were enamored with president obamas historic first, that was a big point. But let me that shows that youre that in for hillary shows there must be something that people dont understand why people like hillary. You probably have some pretty good reasons to convince people. My reasons for hillary are very simple. Hillary possesses the command presence and the knowledge to implement Public Policy programs, foreign and domestic, that will benefit the maximum number of people in this country. So she looks at the country as if she were a ceo looking at all the stakeholders. Not only are the Government Agencies and the employees with b but whats in the best interest. And who can bring the country together to deal with the pressing problems. Hillary clinton has that base of knowledge, has that commitment to it. And i believe fundamentally that when you make a decision im a business person. So i look at hiring a ceo. If i were hiring a ceo and i say heres your job, youve got to be a great from commander in chief, know what issues can be implemented. And how many will be but, bob, you must have watched in horror as she trends towards bernie santders. Implicit in your supporting her is the assumption she moves back to the center. And you know she will . Implicit in my support of her is that hillary knows how to look at a situation and say, how do i make a difficult complex situation in the best interest of the country. I think there should be Free Education for schools. That comes with a price tag. Right. So shes got to figure out how to pay for it. She cant figure out how to pay for it, she will figure out a compromise where shell get most of her programs in place, give something on the other side, but get things done in the best interest. Were going to take a quick break. Squawk box will be right back. Welcome back to squawk box. Lets look at stocks on the move this morning. Allergan falling in premarket trading after an initial gain. Revenues did missed estimates but announced a stock buyback. Electronic arts shares are jumping. The video game maker beating estimates on the top and bottom lines. Shrugging off what was a forecast. And Airline Operator how do you avianca. Higher this morning. Citing that avianca is looking at a sell of the controlling stake in the company. Said to be among potential bidders. Have you flown avianca . Ive not. Ive luckily heard it said before. Yeah. Looks like a jumble of ivanka. Todays was especially hard. It was hard. Siding. Siding is not hard. Its the ing. Alibaba posting better than expected results. With the companys Conference Call, were joined. Good morning. Good morning, guys. Alibaba is defying concerns about the chinese slowdown. Handily beat expectations on the top and bottom lines. Its core ecommerce business remains strong. Its also having a lot of progress monetizing that growing base. Now, annual active buyers rose 14 in the September Quarter to 439 million. But the real story here is mobile. It has been for a long time for this country. Mobile monthly active users ump jed to 450 million. Soared nearly 80 year on year. Meanwhile alibabas cloud and entertainment businesses are growing in importance. Have a listen. Joe tsai announced. Enable us to make investments in important strategic areas. Two of these strategic areas are Cloud Computing and Digital Media and entertainment. Both segments are coming into their own in terms of scale and market position. Each seeing triple digit Revenue Growth this quarter. Like in amazon, putting a lot of importance on its cloud business. Revenue from that business jumped 130 year over year. The executive team on the call also said that making this business profitable is not a priority. Instead theyre going to continue to invest and make some price cuts for their customers where they could. Now, they were also asked to address the recent New York Post article that alleged one or more whistle blowers helping them in an investigation into alibabas accounting practices. Here was joe tsais response. Weve been in the process with the fcc. Weve been very transparent with you guys about whats going on. Weve disclosed all the issues involved. And the fact were voluntarily operating with the fcc in their inquiry. We dont think theres any factual basis to tthe New York Post story. So on that when we have real news we will update everyone. I want to say in days leading up our detractors will want to divert peoples attention but were not going to be distracted. Instead were going to focus on whats really important. Bringing the best experience to our customers. Now, this year, guys, investors have been moving past the accounting practices. Up nearly more than 25 year to date. The question is whether fresh concerns with halt the climb or if these good set of earnings in the upcoming massive singles day holiday will keep the momentum. Back over to you. Okay, deidra. Thank you. Weve got just six days actually five and change until election day. The campaigns are crisscrossing the country making their final pitch to voters. Our next guest was on the trail yesterday. Congresswoman, its good to see you today. I know that you were there yesterday and you are a nurse. So you heard a lot of the obamacare commentary. I said id say this for bobs benefit. While trump was talking about obamacare yesterday, you know that hes known hillary for 30 years and when others go low, the clintons just historically have gone high. Thats what i think of when i think of the clintons. Others go low, they go high. She went high with Miss Universe yesterday while trump was talking about obamacare, she was parading Miss Universe around the state. What did trump say about obamacare and you dont like obamacare much either, right . No. In fact, thats the reason that i ran for office initially. Never having been in politics before, that was my whole goal was to go and help fight this terrible, awful law that was put in place that now all of america is finding out really hasnt measured up to what the lies that were promised. We all know what the president promised back in the day. And we all know that it was an effort to, you know, kind of pull one over on the American People and get it into place. Hey, you know, the democrats were all on board with it. There were no republicans in congress at the time. And it caused more republicans to get elected. Certainly was a surge the year i ran on 2010. Here we are americans are being saddled with this terrible law. Their premiums are skyrocketing and the president is out there acting as if, hey, no problem. Just a little bump in the road. No, its not a bump in the road for americans. They cant afford this Unaffordable Health care act. And donald trump wants to change it. Thats what donald trump is talking about. Hes talking about a very common sense, very concise, visionary effort to change the Health Care Coverage policy in legislation in this country that really is what is controlling in what way . Have wha have you heard except for repealing it from him . No, no. It is basically youre talking about repeal, youre talking about replacement. Youre talking about a safety net for do you know how it works . Absolutely. What you do is you make sure that individuals can buy insurance across state lines so that that opens up the market nationwide. Thats i think thats good for insurance companies. I think increasing the market will create more competition there. But gives more choice to individuals. I think you should be able to buy your Health Care Insurance plan, what you see fit. Thats what millions had Health Care Plans they believed in. The president came in and said thats not good enough. We know better. Government knows better than you do, mom and dad, for you and your family. And thats why were where we are. Buy insurance across state lines. Health care savings plans. Congresswoman puerto rico. Congresswoman, i hear your comments about what mr. Trump is proposing, but mr. Trump has never really spelled out specifically what he would do when you talk about replacement. And it seems to me that the strategy of those who want to get rid of the obamacare and the Affordable Care act is to make the enemy of the good. We are well beyond perfect being the enemy of the good. Youve got some 23 Million People who are now receiving health care that they didnt have before and its particularly important to many people in the Africanamerican Community who are not in the job market and therefore cant get coverage at their employers. And so its vitally important that no one disrupts that availability of Health Care Without a very specific plan. So i would suggest there is a very specific plan. You know, all you need to do is go to Donald Trumps website. And you can read the full plan. Im looking at the important issues like definitely repealing the both of the mandates. Whether its the businessman date, the employer mandate or whether its the personal mandate. Im talking about putting a plan of action in place for the American People where americans have control of their health care again. You know, youre citing that we have more people on Health Care Insurance. You know what we have . We have more people on medicaid. Medicaid is not the answer for good health care. If you want to help the africanamerican population in this country, putting them on medicaid is not the answer. They deserve good responsible accountable Health Care Coverage. We want to put as many people as possible on Proper Health care. On a failure on a failure. A program that has worked for 23 Million People. No, it has not worked. It absolutely has not worked. It has not worked for the individual who is have the Health Insurance card. It hasnt worked for the physicians who are supporting and giving that care. It shows most people favor continuing the health care. So you can do some tweaks here and tweaks there. Absolutely not. You are absolutely incorrect, sir. You are absolutely incorrect. I would urge you to look at the polls and look at what poll . Give me the poll. Give me the poll. Do you want to have give me the poll. Give me the poll that says that America Today is in favor of keeping obamacare in place. Sir, you are i didnt say keeping obamacare. I said in terms of a commitment to health care. Give me the poll. Sir, im asking you to give me the poll. Im asking you to say that americans are better off with health care that they americans are not better off with obamacare. Americans need donald trump and mike pence to come in and repeal and replace. Ask the 23 Million People. Congresswoman, we want to thank you. Quick fact check for you. According to the gallup poll, majority in u. S. Support the idea of a fed funded health care system. Of course our guest host Robert Johnson will be with us for the rest of the program. Back in a moment. For medicare. The annual Enrollment Period is now open. 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In the past 3 years, healthmarkets Insurance Agency has enrolled americans in more than 1. 1 million insurance polices. Put our free service to work for you. At no charge. Britt of indiana did. And she writes. When we became eligible for medicare, we were overwhelmed. I called healthmarkets and they helped us find the right plan. Leon of f lifornia says. Healthmarkets was excellent. They explained all our medicare choices and followed up at every level. And heres what judy of indiana writes. Medicare shopping was very confusing if only we talked to you first at healthmarkets, we make finding the coverage you need fast and easy. Because we know you have Better Things to do. Call this number and let healthmarkets find the right medicare plan for you without cost or obligation. Call a licensed agent now before open enrollment ends. Call now. Welcome back to squawk. Our guest host this morning is bob johnson who in a letter to the puerto rican controlled board outlined a 14 billion revenue plan to help solve the islands debt problem. Bob, youre a media guy. Whats a media guy doing meddling in the fiscal woes of another country . Well, kayla, im also in the Gaming Business in the caribbean. Weve been involved in caribbean islands providing Video Lottery terminals for governments who want to generate revenue from legal gaming that they use for educational and social services issues. And its a benefit to them because many of the jurisdictions dont have tax revenue. And theyre looking for other sources. Puerto rico has over 100,000 illegal gambling machines that the government is trying to get rid of and we have been working with the government for over almost two years to replace those hundred thousand machines with 30,000 Video Lottery terminals that are connected to a central system that will allow the Treasury Department to monitor the system for compliance and tax revenue. Right now according to the governments own report, something called a christiansen report, theres over 15 billion seeping out of the real economy into the underground economy because the government is not taxing these machines and not rei replacing them. Recently a Unanimous Appeals Court ruling in puerto ricoed that the government had the right to remove these machines and replace them with a vlt system. What we look at it is i was talking about the triple bottom line. Puerto rico has some 30 billion in debt. And if you believe senator hatchs analysis, theres probably another 40 billion of underfunded pension liabilities approaching some 70 billion. Where our program that weve put on the table, what i call the cage team. And we brought together for the largest gambling and gaming suppliers in the world to bid with us on this effort and to present a proposal to the puerto rican government and to the control board. Right. That will generate over 14 billion over 20 years. And in addition i spoke with the head gaming investment banker at Morgan Stanley who indicated receivables from puerto rico could generate 650 million after nine months of this program with the 30,000 machines being operational. So this is a partial plan. I mean, the island owes what 70 billion in u. S. Denominated debt . If you include the this is a recurring revenue stream. But more importantly it rids puerto rico of the evil of an underground economy where people are not taxed and therefore no revenue, people are leaving the island. What i want to do and ive been encouraged by a number of puerto rican Business People and political people to move forward with this proposal because Puerto Rico Needs more revenue to fund a very good revenue. For the university of puerto rico. They need money mofor medical. They need money for police and fire protection. Running out of gas to solve some of the problems they have. In social services and fire and police protection. All of these things can be solved simply by the secretary of the treasury entering into this proposed you get the sense theres no willingness to do that . I think the secretary in my opinion is receiving bad advice from someone or a group of someone. Or he doesnt seem to understand the critical need that puerto rico has for new and recurring revenue. And in addition to that, the need to send the signal to u. S. Markets that puerto rico would rid itself of underground gaming. And legal weve got to go, but just response to this. This is a viewer on twitter says sounds like he wants to exploit the poor in puerto rico in his forprofit gambling business. To the viewer who wrote this, let me say this. Puerto rico already has 100,000 illegal gambling machines that people are playing every day. Were not talking about bringing gambling to puerto rico. Its already there. Were talking about converting 100,000 machines to 30,000, regulating it so young people cant play, regulating it so the money goes to the treasury to help all those problems. So please, please understand that this is a program to benefit puerto rico by removing illegal gambling, not bringing new gambling to puerto rico. Its done in 12 states across the United States of america. All right. Before we go to fact check the Fact Checkers, maybe you were talking about a federal health care plan. But she was talking about the congresswoman was talking about the Affordable Care act. The current real poll lick average of all the polls average 48. 8 oppose obamacare. 39. 2 favor obamacare. In the history of the polling, its usually been below 40 for the favorability for obamacare and up above 50 of those that oppose. You can go back you can look at the chart. If you look up real clear politics for the entire history of the law, its never been a majority. Never been over 45 of the people that and its never been below 46 disapproving of obamacare. Thats all she was saying. Youre talking about some federal health care program. No, what but now youre mixing up the language. Now, joe. The distinction is this. You put obamacares name on a cadillac and nobody would want to buy it. Call it the Affordable Care act. Call it whatever you want. The majority has always been against or at least the plurality. This is the average this is th average today 48. 8, 39. 2, its a a federal health care program. Okay. But she was saying obamacare has never been popular. And its never been popular. Its never had a plu ral rality theres obviously disagreement on how we do it. But in terms of checking the fact checker, we always got to do Fact Checkers are supposedly worse than anyway, when we return jim cramer joins us live from the new york stock exchange. Well get his take on the days top stories next. Lets get down to the new york stock exchange. Jim cramer joins us now. Another deal, jim, and kind of a market that i dont know. Go under 2100 again on the s p. Is 2,000 the next step . We drip down every day. Yesterday i thought there was going to be a moment where we were going to breakdown and then buyers come in. They seem to want to come in when things look like theyre extreme particularly into selling retail and tech and then we bounce. I almost wish wed have a washout. I guess we cant have a washout until after the election, or at least that day. I just feel like this has become torturous. All anybody wants to talk about is politics underneath everythings translated through politics whether it be really interesting quarter by eaton yesterday where at the end the ceo just said, hey, listen, its all politics. I wish it werent but all people are talking about is politics. It was the first ceo who actually just came out in the quarter and said were not getting anywhere because of politics. And i was grateful for it. I think thats what everyones saying behind the scenes. He said it publicly. What kind of what kind of screen you got a 70, inch . No. Are you going to be there tonight . Lisa doesnt want a tv there. She says every other bar has a tv on the block. What about tonight . Were the people who they go to where the wives say, hey, youre not watching that game, lets have a drink. Its working as a formula. They all have tvs. Were the place you go for romance. Then youre not going to be in your restaurant tonight. Dont you love seventh games . Theyre rare. Thats true. I will not be. But my wife does not enjoy the series, so she can i was cleaning tables the other day and its like, you know, the guy behind our fabulous cook saying, mr. Cramer no, no, its okay. I got time to clean. Maybe a 30inch under the bar where you cant see it or something. Its because of regulation. All right. Yeah, thats it. There is too much regulation. Coming up, a chicago cubs superfan getting a front row seat to game six last night thanks to bill murray, the cinderella boy. That story next. Remember here at ally, nothing stops us from doing right by our customers. Whos with me . Im in. Im in. Im in. Im in. One, two, wait, wait. Wait wheres tina . Doing the hand thing . Yep we are all in for our customers. Ally. Do it right. Fixodent plus adhesives. Theres a denture adhesive that weholds strong until evening. Rs. Just one application gives you superior hold even at the end of the day fixodent. Strong more like natural teeth. Chicago cubs beat the Cleveland Indians to force a deciding game seven in the world series. And one fan lucked out thanks to cubs superfan bill murray. The actor gave a cleveland native his extra ticket and the seat was right next to him. Bill murrays been a staple at the world series supporting the team on a nightly basis. And it truly is a cinderella story for the chicago cubs. Take a nap this afternoon. Yeah wow, look at him. And hes been a friend of squawk. Hes hilarious to this day. Although i actually know more of the caddy shack lines than he does at this point. I want to go real quick to bob johnson. Hillary clinton question. Yes. You know her. I want to ask you about her judgment. Neera tanden said she and bill have sometimes, quote, the worst judgment. In another email to podesta he says her instincts are suboptimal. You can tell me life is relative if you want, but im curious knowing her the way you do. I can tell you that people who are pushing hillary left like neera will say that. But i will tell you people that know hillary or what she will do when she works together with opb. Bob johnson, the one and only. We appreciate you being here. Be sure to join us tomorrow. Squawk on the street begins right now. Good wednesday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david faber at the new york stock exchange. The s p poised for a seventh straight decline, something weve not seen in five years as bonds, gold, the peso, the vix all point to heightened volatility ahead of the election. Europes lower as well. Oil down fou