good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin on cnbc. it is just after 6:00 a.m. on the east coast. texas senator ted cruz and a few of his colleagues are still talking. cruz took to the floor just after 2:41 p.m. yesterday, vowing to speak in opposition to obama care until he was to longer able to stand. the overnight talk athon included occasional remarks by other gop conservatives. but republican leaders opposed this time consuming effort, fearing the house will not have enough time to respond to eventual action. a senate test vote is scheduled for this afternoon. among our newsmaker owes this topic this morning, we have former pennsylvania governor ed rendell, judd gregg, tennessee republican rob corker and

virginia democrat mark warner. aym an jabbers reported last week milliseconds ahead of other trades based on the fed's surprise announcement that it was not tapering. $800 million worth of futures contracts traded in the first seven milliseconds after 2:00 p.m. eastern time. you saw some massive moves there because this was something the market had not anticipated. ayman will join us with more later this morning. and the s.e.c. are in early state settlement talks. kate kelly is reporting lawyers for the two sides met last week. the group met at the prosecutor's suggestion, signaling that embattled sac could resolve the doj's investigation and continue operating as an independent hedge fund. andrew, i'll send it over to you. >> thank you, becky. i want to talk more about that story in a little bit, if we

can. in corporate news, jp morgan is trying to stop a wave of litigation from the government. those include their own securities as well as those that they purchased as part of the acquisitions of bear stearns and washington music. the "new york times" saying that settlement proposal talk that came this week could have the bank pay anywhere between $3 billion to $7 billion. it's a lot of money and, again, something we should be talking about. also, alibaba reportedly decided to pursue an ipo in new york after talks in hong kong broke down. alibaba's market valuation would add billions of dollars to the two companies' assets. and jpmorgan plannin to hire temporary workers.

they did away with coupons. >> check on the markets this morning. again yesterday, you know, we had that one good day when they didn't taper and now i don't know what -- you know, what is ailing the market. i don't know. >> maybe bad news is bad news. >> or it's, you know, what's going on in the -- you see, i just saw tony fratto hammering the republicans. and i think greg is not going to say -- >> and corker has been mixed. in some points he said he would mix this, he's been tweeting, slamming what ted cruz is doing.

>> remember the plan that i said yesterday that they were doing was the one-year delay. that showed up as what they are trying to, i don't know, keep it front and center. >> so they're -- cruz is doing green eggs and ham and stuff and now he's doing the full on. >> green eggs and ham? >> they just have a pile of books? >> "horton hears a who!." >> do they have a pile of books they read from? >> i wouldn't do dr. seuss. i would do tolstoy, i think. >> we have the mayo clinic coming on, as well. >> mayo and cleveland are both -- they're already accountable care organizations. so they want to -- and i want to talk to him about this. cleveland clinic, they just fired and now they're going to cut their budget by a lot because of obama care because

they said it's not -- this is going to let everybody. >> i thought it was noteworthy when you had the unions start to shift a little. other people on the left and then your paper wrote that front page the other day. >> the front page today in the "wall street journal" points out some of the prices are set for the new health care exchanges and people who are older and sicker, those consumers should get a break. it's the younger people who will pay more. in nashville, tennessee, a 27-year-old male, nonsmoker, could pay as little at $41 a month right now. so that's the question, can you lure enough of the younger, healthier people to offset the cost for the new people. >> and i can't figure out what happened at the u.n. the post has a -- that's the only place that has this take on this. the hit with triple snub? >> i was reading some market reports yesterday. they said i think the president

in his remarks, president obama in his remarks offered the option of -- said that he had told secretary kerry to go ahead and move forward with talks, diplomatic talks. and i think the iranians came back and said they weren't interested in the. >> we're going to have gartman on in a second. he's here. he's not a suit guy, but he wears the flacks and jacket really well. let's get to the -- we were going to look at the oil board. we'll talk about all these things, commodities and gold with dennis when he gets up here. but let's get the glok global markets report from ross westgate. seeing mostly red, ross. >> jae. we've been swinging around this morning. only slim losses. we were down about 0.5% earlier from european equities about an hour into the trading session. we were up about 0.25% around an

hour or so ago. now, absolutely flat, really. we're not really making any ground in either direction over the last few sessions. the ftse mib is up higher, up about 0.3%. breaking it down into sectors today, we saw basic resources lower again yesterday. basic resources up a third. telecom is up about 0.7%, as well. food and beverage, retail slightly weaker. carnival is one stock that has been in focus. coming out yesterday with a 30% fall in third quarter profit. a lot of companies coming out and putting this down. this is the world's biggest cruise line. stock down another 7% here in london today. they're talking about possibly putting on an adjusted loss for the quarter. they have a number of problems, a lot of different ships over the last year. so that has affected their operating profits and people are upset with the outlook.

they're trying to put some spending cuts in instead of raising taxes. so we're keeping our eyes on that. yields have been coming lower again today. we had an italian auction today which is essentially for yields for the lowest since may. and they have been going up recently so is they're coming down. and treasury yields, we're keeping our eye owes that as global investors. so there is a supportive tone to the bond markets, as well. that's why we stand right annoy ahead oovt u.s. open. back to you. >> ross, thank you very much again, ross westgate. amazon is unveiling some new kindles. jon, this is a very different strategy, but an interesting one. >> yeah. not so different in a few ways. amazon's new line of kindles now available for preorder. the hd tablet just hit a new low. $139. not surprising that bezos is pushing the price down on something pep walked me through

the lineup, including the new kindle hdx tablets, even higher resolution screens. those start at 229 and 379. listen. >> success is for customers to say, wow. i want customers to say, wow, i've never seen an 8.9 inch tablet this light. i want customers to say, wow, the mayday feature is helpful to me. i want people to say this display is the most people display i've ever seen. it's really about can you get customers to say wow. >> i bet you want them to say wow. >> we even have a different approach to that, which is we have been very clear. we sell these devices at break even. we don't make money when people buy these devices. we want to make money when people use our devices by buying ebooks, tv shows, movies and so

on. >> and they do want to make money, of course. that mayday feature is a little button. you can type in and a live support person shows up on the screen and can walk you through things. at the high end, amazon's 8.9 inches hdx is close to $400. it will be interesting to see if bezos can steal away some of those customers. >> the mayday one is really appealing to me. not that you're in a chat with something and you sit around, the idea of pooem being able to talk to someone face-to-face, that is really appealing. >> yeah. and they're planning to try to get someone to answer that mayday call within 15 seconds. at this point, they're staffing it entirely in the u.s. you can see the person, the person can't see you. >> how are they going to have enough people that -- i can see

how this works if you have not so much people who have the device. but if the device is popular, it's like everything in life, all of a sudden, you're going to be on hold waiting. >> right. i imagine that could be a challenge, but they say they have a number of people lined up. >> you are probably still mayday support for your mom. >> you call every week, right? >> much more than every week. let's get to dennis gartman. we want to talk gold at some point. that got really interested last week, dennis, on the nontaper. that day, it looked like it

might be going below 1300 and then it went up $80. >> what was really interesting is everybody was talking about those miliseconds. what was fascinating was that gold rallied lmy eied $25. before that, it moved up. all of a sudden, gold started to move and everything else moved after the announcement. somebody knew something long in advance of that. >> it hasn't held up and we know that they're going to taper some day, but then again, they may skip -- no, we don't. maybe we don't. because that's the other thing i was going to reference was yesterday i saw someone -- and i don't remember who it was, but 2.1% on the ten-year at some point next year. which is -- that's counter to what is consensus. but that would forecast a really bad economy, right? >> i don't want to think about what happens at 2.1, what will require economically to get it to 2.1. >> a 50% retracement.

>> bonds broke out this past week. everybody you know was short the bond market, and it was interesting except pimco got back in and a fooe few other people started to buy. i think that's caught a lot of on people off guard. >> and do you ascribe anything to the nontaper to it's yellen now, why should we -- if we know she's going to be big time -- >> i think it's put off until the springtime at this point. >> but if it's honestly -- if it's honestly the economy and it's not just what's happening in washington right now, i don't know how they can come up with -- there's an october meeting and then a december meeting. >> that's the only two that you can do it at. you're not going to do it at october. they're probably not going to do that. that would be very panicky. >> maybe they can change. look, they keep changing what they're doing. they said they're going to start this year and they said they're going to end by the end of 2014. >> i think bernanke has said -- but bernanke would argue that they have not said that.

because that's why everybody thought it was going to happen in september. >> he said something about having it done by next year, but he's reiterated data dependent. >> i heard that, too, and i thought that. he said that explicitly. >> it was a very xlisit statement that he expected to be done by mid year next year. how many times has he said data dependance? 15, 20 times tops. >> and it made sense that he was going to get it started. if summers was going to continue the tapering, but why would you start it if -- >> you don't want to create that much confusion. >> and he knows what she thinks about -- he has a year of everyone has his ear and she might all along have been saying yeah, with him totally. >> don't you think that he, from a legacy perspective would want to leave having at least begun something? >> not if we go back to 2.1.

>> i think it's better to leave it to the next group. go ahead, pass it to the next group. you've got it. i'm not a great yellen fan, but she's going to be the next one there. she has the confidence of the other people on the committee do you think she's too dovish or do you think there's something else going on? >> no. she's too dovish. >> there seems to be a mixed view of her. >> she as plenty of background. her husband is a nobel laureate around finances. i'm comfortable with janet yellen in that position, not a problem. >> when the ten-year started getting out to 2.8%, that's when the fete started to worry. how low would it go before the fed is concerned about it falling? >> 2.25%. at that point, the debates within the fed itself before the committee meetings get to be

pressured. 2.25. >> what are we afraid of now? are we afraid of the ten-year going to 2.25 or -- >> i think they're afraid of it going to 2725. >> more than 3.25? >> yeah. which i don't understand. honestly, i made a speech yesterday talking about the economy. when you look around, try to get an airplane flight nowadays. so crowded, it's unbelievable. businesses, even where he live in southern virginia, which has been probably more impacted than ee quest ragz than any other area, business there is really doing quite well, thank you very much. >> you need a hotel room. while he's here. >> actually, that is where -- you might mention it, if you're having that much -- >> it's the best hotel in the world, as far as i'm concerned. >> how is that? was that good? >> i don't know if we have the

audio on. >> how about the free wi-fi? >> it is absurd that we pay that amount of money for a hotel room and i still have to pay for wi-fi. ridiculous. it's ridiculous. >> but the economy is doing i think better than people anticipated. it's stronger out there than it looks. >> so i just wonder what it all -- you're not an s&p guy? i trade ohm for any own account and only for s&p futures. >> i think if i wroe it on the ticket, i would have a better chance of being right. >> sometimes it feels that way. this morning, it looked like gold was breaking out to the up side. next thing i know, i'm out three dollars and i'm gone. >> do you think the market at this point -- it's the day of the nontaper it hits all-time highs. so anything down is -- we're counting a new correction and 10% is a long way off. >> i'm not sure you're going to see it at 10%.

i'm bullish of stocks. the market tells me i'm doing the right thing. but it is astonishing, the number of 1% and 1.5% moves we get nowadays. for somebody who is doing this, i'm not used to seeing those stock prices on a daily basis. >> is ann wrapping? >> no, no. >> so do you want to keep any other markets interesting? what would you do with grains and the rest of the meat complex? >> as far as the grain market is concerned, the only thing i have interest in is next year you look at the price of soybeans for 2014 compared to the price of corn, somebody is going to plant a lot of soybeans. we're going to plant a lot less corn next year. if you're a corn producer, you're going to have to take a look at that. aisle i'd rather be bullish for corn and bearish for beans. >> everything is dollar and taper dependent, anyway. >> isn't it amazing that in the

grain pits in chicago, they're talking about federal reserve policy. it's amazing. it really is fascinating. >> because the fed is where it has never been before. >> correct. >> 3dz trillion. that's why the fed process has become so politicized. everyone knows what is counting on it. >> very few of us knew who the voters were on a monthly basis. now everyone knows who the voters are. it's astonishing. >> thank you. >> thank you. it's good to be here, as always. coming up, we're going to talk about why larry elison skipped his biggest conference of the year. some of you may guess what that was about. but first, here is look at the scary story for retailers. americans are expected to spend less on halloween. the national retail federation says about $150 million people

plan to participate this year, down from a high of 170 million year a year ago. those celebrating expect to spend an average of $75.03. on items such as costumes, candy, decorations. >> who knows. >> i think about -- i don't know. i don't want to think about it. >> as we head to a break -- >> ted cruz would be good. >> i don't think enough people would recognize. >> why don't we sell jk jk, bicycle bicycle and andrew ross sorkin? >> no, they're not going to -- as we head to a break, take a look at the national weather forecast, the weather channel's alex wallace has that for us this morning. what are you going to be? >> you know what? maybe toupac. yes. there you go. >> pretty cool. >> good morning to you, guys. we're going to be working our

way through the florida time period here and dealing with more rain again this morning. that's slamming itself into the west coast. more here coming from the gulf to make a morning commute, that will be a rough ride in and around tampa. how much rain are we talking? an additional one to two inches is in these areas. a lot of moisture flowing in. that's going to keep things rather wet here for at least today. we start to see some drying as we head on into tomorrow. so looking forward to that. meanwhile, in the northwest, chilly conditions setting up here for us. with that cold air in place, b that's going to help fuel wintry weather. we have winter weather advisories. not early for snow. it's right on time. it will be piling up in the mountains. more "squawk box" coming back in a minute.

welcome back, everybody. dan on mad money last night. >> i know you have up to the minute analysis. how is the demand for this

phone? >> well, very strong. from our perspective, a little too strong. we're begin to go run out of inventory. >> so that's interesting, guys. the question is, is this demand for apple or demand for sprint because sprint has been offering some cheaper price points than some of its rival peps. >> i think it has a be a combo. i walked into an at&t store, i walked into a verizon store. i get a fingerprint saying -- which we couldn't do with the one that is here, and i think it's going to sell. i've been skeptical, but i'm start onning to change my tune. >> with what he said, wasn't there some channel stuffing? >> so yesterday, there was an analyst out claiming that there was channel stuffing going on. >> who had been negative. >> but he had been negative before. >> this counteracts. >> did sprint ever get as many as -- >> they don't get as many as others, but there are a number of stories that are out. if you go online, you have to

wait now. >> yeah. a friend of mine just ordered one and can't get it until november. >> a friend of yourself just -- >> yeah. my friend, not me. >> i thought if you finally do do it, you won't -- >> when she finally does it -- >> look, i'm close. >> it's going to be a special show. we're going to have tim cook on the program. it will be an event. >> your blackberry -- turn it off. i know. i am close. i am finally realizing i probably need to make the shift. but it's like giving up your security blanket. i have a couple of ipads, so i'm very familiar with it all. i was just hoping to get that bigger screen. that would make an easier transition for me. >> if you leave it like this -- i don't know if i've ever hit the right -- >> beck, if you can hold out -- >> if i hold out longer, i figure there's a bigger screen. >> the internet and video, everything else is so much better. >> i know, i know. i'm very familiar with the

environment. i use it in other forms. it's just i'm a keyboard addict. >> you don't have to get defensive about it. but you have a friend getting it. >> my friend, sue. i'm not making this up. >> hi, sue. >> hi, sue. larry ellison yesterday, he wanted to be on san francisco bay as his oracle team usa made a come back in the america's cup. ellis's key note presentation is normally the high point of the open world. hundreds of attendees left the conference center after it was announced ellison was on a boat and would not be attending. ellison missed the conference so he could be close to the racing team. the next race is scheduled for today and the winner takes all. but, guys, obviously, they're questioning what his primary focus is, the america's cup or the -- >> well, it looks like he's the absentee ceo, right?

that's what's happening here. and maybe there's a company that operates on its -- that you can't even need. >> he can definitely do what it wants. >> it doesn't matter? >> no. >> and you think the customers don't care? >> no. >> you see, i think the business is a very competitive business. i think he actually wanted to make the salespeople -- or rather the customers think that you're -- >> but people love to sell him short over the years. >> oh, i would never sell him short, i just -- >> after all the acquisitiones and this, there's always the reason not to like oracle. >> he's good. >> when we come back, advertising the real story on the global economy. wpp's ceo sir martin sorrell will be joining out right here in studio right after this. ♪

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jpmorgan is trying to negotiate a deal over on securities in the run up to the financial crisis. the "new york times" saying the proposal for settle many talks this week could have the bank paying anywhere between $3 billion and $7 billion. kate kelly reporting lawyers for the two sides met last week. this was their first sit-down meeting since before sac was indicted on insider trading charges. the group met, signaling that the embattled sac could resolve the doj's investigation and continue operating as an

independent hedge fund. some reports suggesting that could be a $2 billion settlement or more. i have one comment i want to make. to me, this just seems like the government at some level is holding these companies hans yom and they're sort of prescribery going on on the other side. >> and asking for ransom. >> and asking for ransom. and it just seems, first of all, to he, if the prosecution is going sac and saying settle, that suggests to me that is in the the same case. i would argue either bring the case if you think that steve cohen is a criminal, bring the case. if you think jpmorgan has done something horrible, bring the case. >> things like bp before the election. >> martin sorrell was there. >> haven't you seen this movie before, spitzer? do you remember all that. not a single one went to trial, did it? >> and guess who pays?

in the case of jpmorgan, the shareholders pay. bear and washington mutual gets me crazy. >> why are you so surprised? it's good politics, isn't it? >> because in that case, hank paulson, if you remember, strong armed them into buying these companies and now they're going to pay through the nose on the other end. >> politics of the administration. they think it has contraction electorally. >> i think there's something called prosecutional discretion. you bring the case if you have a case or you don't. >> that's the way the wind is blowing. >> and on steve cohen, they're talking about a $2 billion settlement for the firm. does that include him? >> he is the vast part of the firm. >> are they suggesting no criminal charges? they haven't indicted him, but that's been lingering out there. and then, by the way, it looks like he's bribing them to go --

>> he already thought he paid them to go away. >> $paid $616 million. . look what he got for that. >> the prosecutors have to look good doing it, as well. >> yeah. i have to say, i don't know enough of the internal details. i've heard some things about what they found, particularly in the sac case and not being able to go after it. i just don't know enough of it. i understand the point and i agree. i think the sac -- >> there's a lot of potential things that went on in potential insider trading. >> than where the government was begging jpmorgan to take over. >> right. but my thought is, if you're the prosecutor and you say, give me $2 billion, first of all, where are you coming up with which number? and if you're saying $2 billion, $3 billion, would that be enough? either you think there's insider trading going on or you don't. >> i came on this morning to talk about hedge funds and banks. >> weren't you coming on to talk about advertising? >> i claim about claiming my lunch from joe, two lunches. so we're going to have our next

bet, joe, on the election in 2016. i'm willing to bet a lunch that hillary clinton wins the election in 2016. >> you want to do that now? you don't even know if she's running. >> well, i think she is running. >> i'm sure she is. >> what if the economy stays -- he's okay on either way? >> first female president, yes, after the first avenuefrican-amn president. as we go into '15, '16, i think it will get not a lot, but -- >> after churchill, the first british prime minister. >> after thatcher, yes. >> communication. the advertising week, the

clinton initiative all crammed into one week, it's crazy. >> sir martin, we have not gotten to talk to you since onmicon -- >> we call it pog. >> we have not talked to you since this merger. is it bad news because it creates a bigger competitor or is it good news because -- >> well, our stock price is up about 12% since the announcement. their prices are flat despite the fact they talked about that over five years. i understand they're pulling back a little bit on that. clients have apparently started to say the savings we'll have a piece of that, too. it's strategically flawed. i think it's a reversal of their strategies. it's structurally clunky, co-ceos, rotating chairman, dead lockboards don't work. we've seen that in companies like alcatel lucent which didn't work out which is the nearest

comparison when an american and french get together. the regulators will have the say not on just with the ftc in washington, but also in brussels and beijing. so the regulatory issues. 43 jurisdictions they have to go through. and there has been no articulation of the case of benefit coming to the heart of your question among the clients or people. and i think we're starting to see already some discorruption there. many people inside the company are saying, why did it happen? two ceos apparently sat for six months together discussing the -- and without extensive banking advice and it shows in the structure that came out, no self-respecting investment banker i think would recommend that structure. from our point of view, that's the destructive part of it. from the constructive point of view, it means -- it gives us an opportunity to escalate our strategy. so we've moved up our targets to new markets and new media from 35% to 40% to 45% over the years. >> is that because of this merger? >> no. it's the challenger brand.

if you're the challenger brand, you have to try harder. you remember that line? i think what it's done is given us a window. if it is the greatest thing since sliced bread, which i don't think it is, it's going to take three or four years to figure it out. strategically, as you know, when you put some companies together, ignoring the strategic issues they face, you have to find your way to the bathroom. the second year you have to put in the strategy and the third year you have to hone it. >> have you stolen in the clients as a result? >> there has been some activity already. if you look at the decisions that have been taken on media by ge or gsk, one or two things going on in the pharmaceutical industry, there are some things. clients will not come out full frontal and say they're moving stuff. but if you read the rooms, if you look at some of the changes even in the last four or five weeks, it's very interesting. and the other thing that is very interesting is a duopoly sort of on emerges out of this. we have one client, i won't say which industry or who it was,

they have three holding companies. after the merger, we went to them and said, you're now reduced to two. >> you want 50%, right? >> we said do you want to go to three? they said, no, two is sufficient. so in that case, one plus one equals one spop there is a duopolistic thing going on there, which we never thought about. and procurement departments require two. there is some concentration taking place in the industry. basically, if you look at the market, our stocks up 12% there flat. transfer of value is about $2.5 billion to $3 billion. the market cap now is about $26 billion. so it's moved up significantly post the market saying the deal will go through and it's an advantage to us. very interestingly, the smaller players have not gone up as significantly. but the biggest gainer, actually, was denser on the back of tokyo 2020 and their win for

the next olympics. >> we've got on music playing, but two-second answer, would you buy twitter? >> i don't do two seconds. >> i know, but -- >> i would buy twitter, but i remain a bull on google and amazon. you see alibaba has not been able to gain agreement with the long on congress stock exchange and is coming to new york. that's probably three very big internet -- and this is a big model. along with the internet delivered phone, which is a competitor to apple and samsung, yes, very interesting stuff coming out of china, which i'm sure will cheer joe. >> you know it will. that was so not two seconds. anyway -- >> we don't do quick, thank you. >> coming up, health care exchanges launched next week. we're wog to talk to the ceo at the myoclinic about what health care providers should expect when "squawk box" comes back.

welcome back, everyone. at 8:30 eastern, we have august durables out. orders are expected to drop slightly by 0.6%. a weak july sparks concerns about third quarter growth. then coming up at 10:00, we have august new home sales. the previous month's report was weak in part because of higher mortgage rates. forecasters say august sales likely rose by 6.6%. and samsung is releasing its galaxy gear smart watch today. it will be linked to other galaxy android devices allowing

users to do things like make calls and view pictures without taking out a phone. andrew, over to you. >> thank you, becky. that's new for us at "squawk box." >> yeah, new music. >> and new graphics. we're going to talk health care this morning. health kay providers are preparing for the rollout of obama care. i always know if i'm really sick i'm supposed to come and visit with you. ted cruz is staying up all night, as you know, to kill this thing or at least defund some of it. what is the impact to the mayo clinic? >> i'm often asked about that. it's in the context of a slow economy, an aging demographic and the affordable care act. they all come together to try to give us a more sustainable health care system. what it boils down to is there's not enough money in the system. it's an unsustainable financial system and doctors will be paid less for the care that they deliver. >> the cleveland clinic, which i

assume that -- you feel like you compete against the cleveland clinic, i assume? >> we're colleagues, but we compete. we have strong brands. >> they're cutting $330 million from their budget. they're cutting at least 5% of their staff if not more. what are you guys doing? >> we're focusing more on improving our quality and reducing our costs, but we're not going to do any cutting. in fact, we're hiring strategically to areas of priority. >> so when they say they're fought going to bring in as much revenue, how do you deal with that? i assume you're not going to bring in as much revenue, either. am i wrong? >> we're growing our revenues. but we're focusing very much on reducing our costs to deliver more integrated, higher quality care. >> have you considered consolidation? there's been a lot of consolidation going on in your business. >> we've taken a different path, actually. we're using information and knowledge management to share what we know with other groups so they can provide better care locally. we're building a network around the country called the mayo clinic care network where we --

they subscribe to mayo, we share with them how we work to help them provide better care locally, and then we're there as a backup to do electronic consults or help them with their care. and if the patients need to come to mayo clinic, they do, but we've created this large netw k network. rather than -- because that focuses on integrated care for the patients. what's your take on the exchanges? is this ultimately going to be good for the patient or bad for the patient? >> i think we'll find that health care costs -- the premiums will go down, but there will be a lot of high deductible plans. so kuhn assumers have to be careful what they buy. it may be tremendous out of pocket. if they get sick, they may be forced to have a very limited array of positions that can help them. there's two sides to this. >> what kind of health care do you provide for your own employees? >> mayo clinic provides -- >> it's all mayo clinic? >> it's all mayo clinic. >> and you don't have to have an

schaj because you are the exchange? >> we are. >> when you look at what is happening to obama care and the potential for when it gets rolled out or not, does that have a real impact on what you're doing today? >> it will. we will be paid less for the work we do for each unit of work. there's to doubt about that. everything we do will be reim bursed less. >> how much less? >> we're trying to estimate that, but it could be in the 10% to 20% range, possibly more. but i thought you guys were supposed to be the role models. everywhere i've gone, i've heard people say, look, this is the example of where we should be heading. >> i think an integrated system like we have where everyone works together to serve that patient, what is the patient's need, allows us to develop higher quality, more ee patient care. >> so you're going to get paid less for it. >> we're going to get paid less for it. the affordable care act doesn't recognize a spectrum of quality or complexity. that's why we're working with the government to try to get that changed.

>> wouldn't you say if you can afford it, that's medical care in the world at the mayo clinic? >> well, we think you can afford it. >> because you're saying on break that we don't have great health care in this country. that's looking at the whole -- >> the whole country, health care is very fragmented. here sr the best treatments in the world, right? >> to america right? >> individual services this country leads. absolutely there are tremendous places for that care. if you want to have coordinated care over a lifetime, we need to nip that together with team work. >> thank you for coming in this morning. >> thank you very much. >> if i'm really sick, i'm coming to you. >> take it back. coming up t men's warehouse and future. s have. they always will. that's why you take charge of your future.

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courtney reagan joins us with the exclusive. good morning. >> good morning to you becky. doug has been the ceo of men's warehouse since 2011 and with them since 2005. the i guarantee it guy. the board issued the press relesion discussing the

determination. this is the first time addressed in an interview. >> what happened? >> i'm going to refer you to the statement the board put out soon after it happened. >> the only option was to terminate mr. zimmer because he was disruptive? >> the board tried to find another resolution but was found in this solution. >> is there no contact with mr. zimmer, he is still the largest shareholder? >> no, we haven't had contact. >> he says the retailer hasn't seen the evidence of a business falloff related to the fact zimmer is no longer the spokesperson. a drop in profit and guidance he believes a result of economic pressures and says average sales are strong. they're focussing on the

business strengths. >> there's a lot of talk right now about the macro conditions and impact it's having on apparel retail now. i point to the fact we think we're doing better than most of our competitors. we have strong brands, number one market share positions. we're confident we're going to work through these head winds. >> when it comes to growth, he says there are opportunities to add more full line stores, exclusive brands to expand margins and is testing outlets. becky -- >> courtney, thank you very much. when we come back, we have this morning's top stories and turn around specialist harry wilson.

story time in congress. >> do you like green eggs and ham? >> a vote on obamacare. >> i do not like green eggs and ham. >> and the looming debt ceiling. >> would you like them here or there? >> harry wilson is here to tell us how to put america back on the right path. >> two former governors with different opinions. >> judd greg and men dell talk about the issues affecting your men. >> it's leading up you with our interview of ritz carlton. going to talk luxury lodging and why they don't serve green eggs and ham. >> i do not like them, sam i am. >> let's stop this fill buster and put your money to work as the second hour of "squawk box"

begins now. ♪ i do not like green eggs and ham. i do not like them here or there. i do not like them anywhere. ♪ good morning and welcome to "squawk box." take a look at future and see how you the market is setting up for the day. we have a green hour there look like dow is open 8 points higher. s&p 500 there. prosecutors on their way to settling the trader case. two sides met last week. kate says any deal would be week or months away. that is the settlement that might be as large as a billion to satisfy the government. new york sometimes suggesting it might be closer to $2 billion.

jp morgan chase looking for a settlement. the figure could be as high as $7 billion, between $3 billion and $7 billion. we have a better idea you now of how much health plans may cost under the new health care reform law. the administration says the plan will average $328 per month for an individual plan. that's before tax credits are applied. health insurance markets open october 1st for those that don't have employer provided coverage. >> the debate in washington over a possible government shut down continues to worry the markets. dow and s&p 500 both finishing down. dow jones and s&p in new york, i was waiting for stocks to go up. we haven't had an upupday yet

have we? >> not yet. we got a kick after the fed didn't do what they were inte intended to. we didn't add it to go up. when it measures, it isn't encouraging with washington. >> i then saw an article that entails cisco and general electric are relevant because prices are too low. we'll see. >> not quite. >> there are people, rick is one who said last time this happened when we got the downgrade, it's basically meaningless. everyone in the world knows what the greatest safety and security is in terms of paper. it doesn't matter whether it's aaa or not. french paper is not the same as u.s. paper. >> that's true. i think you've got to realize the impact on most of the people in the united states. when everybody suddenly realizes

our government can't talk to each other, we're left reading bedtime stories when we should be asleep and figuring out what the hell to do. that's the way it looks. if we go into default even for a day or two, there will be an echo in the markets. this is going to ruin consumer confidence and make fourth quarter numbers look bad. >> the shut down is different than a default though. >> the shut down is different. the shut down, half the government sit there is frozen two or three days until congress does what it should have done a few days before. a default means that somebody out there is holding the treasury bill he expected to have repaid on a particular date and not getting his money. he's wondering what happens. >> it would you take -- do you think there would be an actual

default even if we hit the debt ceiling. there's things they can do. there are people that want to scare the markets into thinking that would actually happen. it's hard to believe that would ever happen. do you think it could? >> my hope is that between magic on the part of the treasury department and little bit of sanity on the part of the u.s. congress, which seems to be a fading item these days, we'd avoid and get through it. look over the cliff and say oh let's not do that. the problem is that you've got everybody with their own agenda. the agenda goes different directions. they don't have hope of coming together. for the republicans who want to go over the cliff, there's really no down side for them. they're confident they'll get relelktr re-elected no matter what

happens. it's a strange situation where the forces to pull people together are not there. >> that makes you wonder. i've heard the point made their seats aren't at risk in a lot of districts, these house guys. >> the problem is they're either solid republican seat or solid democratic seats. neither group is at risk of getting tossed by the other party. then the republicans are almost two parties. there's the tea party group and the other group. their seats are pretty well insulated. you've got two and a half parties. there's no pressure to get them to come together. >> the only person in a tough position is boehner who could lose leadership position if he doesn't listen to a wing of his party. >> yeah. boehner is really the odd guy out. he's got two halves pushing. neither is enough to bring it

together. he seems to be smiling at tea party. they won't let him talk to democrats and certainly not the president. not that they're ready to talk to him either. >> thank god we didn't taper. that's why i guess because of all of this. >> i think that's a big reason. i think the fed looked at this and said worse comes to worse, the economy will slow down. this is the last moment to squeeze a little money out of it. >> dave, thank you. >> have a good morning. >> you too. in the debate to defund obamacare, senator cruz of texas took his time reading a bedtime story. the classic. i like go dog go. i used to read that one. there's big blue eyes. >> i don't remember that one. >> there is. and wink eye. he was reading -- i would get something that would take longer. he was reading believe it or

not, green eggs and ham. look at this. >> an opportunity i don't usually have when i'm in d.c. to read them a couple of bedtime stories. do you like green eggs and ham? i do not like them, sam i i am. i do not like green eggs and ham. would you like them here or there? i would not like them here or there. i would not like them anywhere. i do not like green eggs and ham. i do not like them, sam i am. >> senator cruz says he's going to talk until he can stand no longer. it is not technically a filibuster. it's more of a pseudobuster. harry reed is scheduled to vote today at noon. >> what's the difference? >> they can still do the the vote. this doesn't preclude them from doing the vote. >> do you know about bathroom breaks? >> he gets bathroom breaks.

>> is there a nap in the middle of this? >> i don't think so. >> is there someone that brings coffee or red bull? >> you probably don't want to drink a lot of coffee. >> this is a live picture. senator rubio is speaking now too. >> i like the mulberry street story. you could get a lot of mileage out of. that. >> is this a kid's book? >> yeah. dr. seuss. great story. >> this is our guest host the next two hours. he served on president barack obama 's task force. we want to talk about the autos. what's happening with this filibuster, where we stand. is there a solution to get us to something other than a government shut down? >> there's not a great one. we only have a few days left before the budget deadline and not much longer before we're out of cash.

the only thing left to do is pass the continuing resolution to buy thiechlt i think he needs time where both sides will negotiate. the president says he's not going to negotiate over the debt ceiling. that shows feelings as a executive. that's the wrong thing to do. >> that's probably what wants you to the stand off. both side said they're not going to negotiate. >> the president said he's not going to negotiate period. republicans say they're not going to tax increases. >> both sides this is the ground this is off limits and not going there. i don't understand what gets you to the point where you say this is not going to be my way or the highway either side. >> that's right. at the end of the day, you need no allow that negotiation process to take place. as a result, i think the only real path is buy a couple of months and get away from the tv camera, get away from the senate

floor and focus on negotiating to get this passed. >> let's talk about autos. we've heard about gm upgraded to moody investment grade since first time since 2005. and then the chrysler one. what does that mean to you? >> it's a validation of continuing surge in the autoindustry. it continues to underestimate how difference the companies are. cost structure, product lines, management team, radically different from five years ago. in a world where gm used to lose operating basis on every car they produced, now they make $2,000 more. >> ford did it on its own. >> as did gm.

gm wasn't smart enough in 2006 and borrowed $26 million at the market. we went through the rescue process we did. >> tax paysers didn't make money back? >> shouldn't the deal have been structured differently so we ultimately could have made money? >> the deal at this time -- there was no other source of financing for these companies. it was up to u.s. treasury. we had to negotiate with the uaw that provided employees to make cars and bond holders that had the cars insurance to hold up the bankruptcy process. we negotiated to give them as little as we could in the context the deal is provided. >> there was the piece about the union pensions all made whole. the non union gm employees were left out in the cold. >> i think you're talking about

delphi not gm. gm pensions weren't touched. >> yeah, you saw the article two weeks ago. >> there's a lot of misnomers around that. two or three unions had agreements that citizen gm would top pensions if delphi fell short. the other unions did not have the agreements and they were not topped out. >> this is not -- the people that wrote the piece were implying it was from the administration. >> that's not true. it was who had the top on gm and who did not. >> here we're watching the great success of general motors. we can applaud what you've done for the economy. one of the things everyone says about tarp, this, should the government given the negotiating leverage you discussed you had

with nobody else at the table to do this, why the government and taxpayers are not ultimately beneficiaries? >> tarp made money with the bank. >> there could have been two ways. the entire structure as a loan. gm would have been under $50 billion of debt and had the same problems before the restructuring. not a good idea. second thing, the government could have had more equity. exact opposite of what most want. more importantly we couldn't have structured a deal with bond holders or uaw that would have succeeded. everybody agreed. there's no contrary evidence then or now that a prolonged bankruptcy would have meant the end of general motors. we were in the position of having a short period of time to negotiate a complicated deal. folks with offsetting leverage we had to negotiate with.

when you look forward it's funny. if we sat around in 2009 and talked about whether we'll debate getting $40 billion back or $15 billion back, nobody would have been having that debate. no way this company will succeed no way this company is different. all wrong. the company is more profitable. as a result you have a market that underappreciates that. the other point about chrysler. that's a negotiation. here you've got in the case of sergio, a guy that desperately needs to own all chrysler. fiat is struggling. 70 to 80% comes from chrysler. he cannot walk away from that. then you have you the trust running out of cash to pay health care benefits. they need this. they have a stronger hand. their ask is below the implied market value of stake. if you look at gm and ford. they have the upper hand.

sergio will play out as long as he can but will ultimately move to the evaluation. >> we'll have more with harry throughout the show. coming up next, john fore catching up with the man running amazon. we'll talk tech, washington post and more. later, we're putting on the ritz, ritz carlton ceo here to talk about luxury lodging and the start of his business. "squawk box" coming back with more. and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

third generation of kindle tablets, john sat down with ceo to talk kindle success and more. john, good morning. >> this new line of kindle fire tablet starts at $139. interesting enough, the lab where this stuff gets created is called lab 126. it's one mile away from happenle headquarters. he spent a lot of time there this summer. i asked what he did there. his answer gave insight into what kind of manager he is. listen. >> what i did this summer, we had three book clubs. senior leadership team met. we had all day book clubs. that was one of the things we e did. read business books together and talk about the strategy and vision and context.

those books just become frame works. they're skeletons we can use to talk about the business. those were great conversations. it gives us a chance to get to know each other better. of course we have lots of brainstorming sessions. talking mostly about the future, what's going to happen in 2014, 2015? that's the future road map. decisions we're making announcing today, those were things we were talking about a year and two years ago. >> of course i had to follow up and ask which three books. he sent me the list. the executive by peter druker, the goal. the reason for making these kindles really is people that buy them become consumers of amazon's media buying movies, books, shows. he talked about his own interest in media and how technology is opening ways to produce more

appealing content. this is an area he's personally making a lot of long term bets. back to you. >> john, thank you very much. let's get a check on markets now. we've been watching futures. after four days of decline, you see this morning, dow futures are slightly positive gain of 13. s&p future slightly negative. oil prices at this hour indicated up 57 cents. there has been a significant slide. 10370 last trade. yield 6.25%. the dollar is down against the euro at 135.15. we'll have much more on the markets throughout the show. "squawk box" will be right back.

the secret lives of the super rich is just ahead. ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪

welcome back to "squawk box."

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welcome back to "squawk box" everyone. in the headlines, several key economic reports ahead. at 8:30 eastern time we'll get august durable good orders expected to climb by half a percent. coming up at 10:00 eastern time,

congress expecting a increase in home sales. mortgage applications rose as mortgage rates dipped. the average 30 year was down 13 basis points to 4.62%. refinancing act hit rebounded after falling to more than a four year low last week. chinese e commerce company is planning to list shares on the new york stock exchange. talks with hong kong are said to have broke opinion down. analysts think that alibaba planning to list on nyse. >> does it matter on what they're on in terms to yahoo? >> it's a fantastic business. it doesn't matter what shares are on. >> clearly the stock price of

yahoo has gone up remarkably last year. ranked 40 under 40 persons because of the increase in stock value. some people say it's a function of operations of the company and fact they're bringing talent in. other people say it's a pure issue of the value of alibaba value that's gone up remarkably in the past year. you were on the board. what's the answer? >> so politically correct you are. just pick one. >> it's not that simple. alibaba is appreciated. this is a brand new management team, tons of products. there's excitement about the product for the first time in years. from the evaluation standpoint, when we first got involved and on board, stock was 15. it's 31 now. >> how much does aliababa and

japan versus -- >> the vast majority was asia. the core business is smaller relative to the value of those two stakes. i think in terms of share of the value appreciation it's mostly asia. that being said, core business is important. the real question going forward is how does she continue to develop thene business? >> we'll talk more about that as the show progresses. these two gentleman, one was a governor and senator. ed knows everything any way. he's a former governor of pennsylvania. you philly, pittsburgh or it doesn't matter? you're happy about the pirates right? >> absolutely. i was the mayor of philadelphia too. >> that's right. okay. i know how you work in a state.

all your children are your favorites. greg is a ceo and former united states senator. we've had the conversation a lot. you're like moderate -- >> red sox fan. >> for the american league any way. you're moderate and reasonable which makes me think you guys are probably going to agree on everything. you think the republicans aren't doing themselves favors right now. is that in a nutshell too? >> i'm conservative and reasonable. there's a difference. what we have today is a lot of folks shouting from the sidelines that don't appear to want to govern who are accomplishing little and marginizing the party as a result. if you want to do something construct skpif reduce the size of government, offer options that can be passed. you don't control the presidency or senate. to claim you're going to possibly default on the federal debt if you don't get your way, that's not governing.

that's just unfortunately massive political postering that causes the party to lose credibility. the regrettable thing is the national press loves folks like this, people basically taking positions on their face don't make any sense and margelize the party. they get folks that are reasonable, could be constructive, reduce the debt and spending and defund obamacare in an aggressive way and impact it. those voices aren't being listened to because the national press won't give attention. you've got a guy on the floor of the senate reading children's stories claiming he's getting something done. nothing is being done by that individual because he can't even filibuster correctly which is ironic. >> so, we've heard the method of

the madness is they'd like a one year delay on the individual mandate and that would be hard for the obama administration to handle. it might be good in the long run because it might prevent bad things from happening. do you think it's going to go smoothly? do you think that could be delayed for a year until everyone gets ducks in a row? >> i don't think so. if you had private insurance health care providers today, they'd say we can't do all insurance reforms like taking people on with pre-existing without the mandate. we need healthy young people in the pool to smooth out the cost of taking people in who are seriously ill. they're correct. so it only works with the mandate. look, judd is right it's irresponsible to tie these together. to me the biggest crime is we have the opportunity to do something real about the debt. the debt is not going away.

the deficit may go down. the president always talks about that. the debt even with sequester is going to grow in eight years. we're headed towards a train wreck. when are we going to get serious and do debt reduction? >> would it be possible for republicans to approach it in a different way to get the white house talk about doing something about the debt, governor? >> of course. if they didn't tie it to obamacare and said by the way mr. president, we'd like you to work with us on obamacare but really interested in doing something that will deal with the debt problem. remember, the president and speaker boehner came fairly close to getting this done a year and a half ago. it broke down. close enough it's worth another try. we're going to have a lot of shouting and kick the can down the road again. >> you do agree on everything? you disagree with anything

governor rendell said? >> i agree 100% with everything he said. the fact is things that could be done. the president put calculating the cost of living making it more accurate. that was responsible. the house should have grabbed it, should grab it today and pass it. >> judd, is that offer still on the table? >> well, i don't know if it is. once you put something on the table, if the other side accept, it's hard to go back and reject it. the second and third decade, this is huge. trillions of in savings. >> by the way it's reasonable, right, correct thing to do. becky, the biggest problem the president would have is his own party. he's going to have to lead in his party to get that through you. it's worth trying. it's important and in return for cpi, the president has the right to say i want significant tax

reform and want some of that money to go to deficit reduction? we should point out ed and judd are cochairs of the fix the debt campaign. we've spoken about the fix the debt campaign with you all and others from the campaign over the years. do you feel it's picking up steam or getting more difficult because of things in washington? >> all the simple things are done. all easy things have been done. they shall fairly large, $2.5 trillion. the big things like tax the reform haven't been done. they're complicated. they take willingness of two parties to come together on political and complex issues. how you force that to happen is the question. we have a debt ceiling coming up you and cr coming up. those are difficult to get something done.executes, you've

got bad problems. they should be able to replace the sequester which is dysfunctioning. and replace it with retitlement reform and tax reform on top of that. a lot of people understand that and are willing to do that. if we could get everybody in the room, get the presidential leadership, we should be able to get it done. >> i don't know. what's stopping us, judd? you were a senator when saying this. you've been retired how long already? >> what's stopg stopping us is basic theme of politics. >> why should we be optimistic? i'm not at all. >> i think it changes because at some point the markets tell us they can't tolerate anymore debt. that's been pushed off.

it's a matter that's going to occur when this country will face a massive crisis driven by the fact people lose confidence in the dollar. >> you were going to say because the fed is not going to taper, we can keep doing this for a while. >> if they'd stop tapering, you'd have this longer. >> they're allowing this to drag out? >> no question. that's not their job. they're trying to keep the economy going when congress and president are disfunctional on the issue. >> you guys seem to get more reasonable when looking back at your career and government. it works that way. you two guys could be coceo of a company. this is sweet to watch. go ahead. >> i think what he said is correct. it's more than that. he said we did easy things and

now time to do tough things. it is time to do tough things. it will take political courage. we've got to do it because it's not going to change or get better the longer we delay it. >> the opposing people say deficit is not as bad, more money coming in, spending less. the problem doesn't look pressing. how you do you push back against people that say they? >> that's correct. the deficit is going down. people are confused between deficit and debt. even with sequester, debt goes from 73% of gnp to 79%. as judd said, in 20 years we'll be close to where greece is. we have the opportunity to do something about it. we shouldn't be facing this problem down the road. if we keep kicking the can down the road, it's just governmental responsibility. >> thank you you governor rendell and governor, senator,

almost commerce secretary judd. you sound like you may still get it now after this interview or at least some job. thank you. >> i'd like a job. i could always use a job. >> thank you. >> maybe maple syrup. we used to get that all the time. new hampshire is the best. >> or vermont occasionally. >> he always brings it. coming up, ceo of one of the world's most luxury lodging brands, ritz carlton. we'll have that next. what will the super rich do during the apocalypse? climb into their bunker of course, food for seven months and amen at thises needed to survive. we'll talk about that when we return. the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge.

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what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ one of the world's largest hotel luxury brands has announced global development to bring numbers to 100 by 2016. joining us now is herve humler. good morning. president and chief operating officer of ritz carlton hotel.

we've been talking so long we go back to the days that andrew wrote about when luxury was questionable whether it would ever be something. we remember aig and this stuff you decided to continue to expand. that paid off. it's still something ritz carlton is back. people go to a luxury hotel. that was the right move to expand when things were scary. >> absolutely. in fact going to a goal in the next five weeks, we'll be opening six new hotels. new countries, new cities. going to two new places in china on the market. 15 million people where luxury is moving in. finally we'll open the hotel in india, first hotel in that

county. november 22 in aruba. the goal ritz carlton always keeping the customer, aacquiring you new customer and market share. >> how much is acquiring new customers in the emerging market? >> that's very important. when we look at china it's not only acquiring customer in that market. 30 million chinese people outside of china travel outside china before the end of the year. it's important that we are in that market, have the relationship to insure our hotel visit. >> when you model out for example the revenues and profits of the hotel in a emerging market, how much do you count the the business of 30,000

people going to your hotel? >> that's something when we look at technology we have partner with one of the best luxury websites in china. not only are we putting the hotel in china but we communicate to a quarter million customer in china about what to do when you come to new york. not only mention our hotel but what to do in the destination. >> jd power four straight years. we were talking offer camera your competitor people say in the same breath, four seasons. people check in the location they're looking at, maybe the possibility of staying four seasons or ritz carlton. do you know the difference here in jd power view why ritz carlton is thought of as better? you're making the point it

depends on the -- >> to me e it's property by property. some i love they have. if i was on a relative basis in other places, i might want to go to this. >> he knows. he's been to both in all these different places. >> let me answer that question. when you look at jd power, it's 10 thousand sample luxury customer who traveled to many luxury places. when you look at companies evaluating the guest room, amenities, check in process, reservation process. ritz carlton leads the continent five years or four years in a row. i'm very grateful to ladies of this company that make things happen. >> so it's all politics local to win this every year. it has to be the people that are right shaking hands with you

when you get there. >> absolutely. >> that's hard to manage. >> it is not hard to manage. make sure you have the right people and train them. it's not only about service but engagement. dedicated to our customer to last a lifetime. we've got to go. i have a serious question to ask. why do you charge a premium for wi-fi? at the cheapest hotels they give it for free. >> that's a good question. you talk about cheap hotel. what cheap hotel giving you. they're going to give you maybe a restaurant, maybe not. at the end of the day, i still have to charge for something. we are looking at it and certainly that's a question that our customer have.

i think it's interesting that's not a factor for our customer. >> now they charge a premium for faster service. we're going to leave it at that why you're wi-fi obsessed. did you bring these in? >> i'm sure you need something to keep energy going. >> is anything made of cale there? do you have juice stuff? >> can you eat any of this? >> excellent. thank you. >> thank you. >> when we come back, where will you be when the world ends? you're super rich, you expect millions to hunker down and stock pile. all the amenities you need to survive. robert frank looks at bunker that will blow your mind right after this.

welcome back to "squawk box." rich have homes for skiing and sun bathing but some have created homes for the end of the world. we have this fascinating story. >> they're called luxury survival condos, an underground tower built 174 feet underground. we can't tell you where this is

but only in central kansas. for a few million, you get a pool, pet park and nice place to ride out the apocalypse. >> this is the space previously occupied by the missile protection. we take security seriously here. it's not only the nature of the security because it's survival amenity but clients here are use to high level of security. bankers aren't lending on conventional homes let alone these. you have to have cash to buy one. >> the price is $3 million for one floor. half a floor is $1.5 million. the first silo is sold out. the guy larry is now building a second. >> how many floors?

>> i think ten but some are for growing food, raising fish, there's a gym, school, pharmacy. you can fit up to 70 people. >> if there's an apocalypse, you have to get there. you have to get out of wherever you are. >> a lot of guys have private planes or they have a plan to get there quickly. what's interesting is the buyers wouldn't come on camera not because they were embarrassed but so many friends and family would love they have a bunker and all try to pile in if something went wrong. >> you probably know who the people are. are they big name people we would know? >> a couple are. let's call them athlete celebrity e category. many are well known entrepreneurs as well. what's interesting is they're already sold out. it's the wealthy have gotten concerned about personal risks of all kinds. could be a dirty bomb, disaster,

break down in the government financial system, social unrest. the whole unoccupied wall street lingers in the mind of the wealthy. wealthy are thinking of personal and financial risk. >> the mayor of new york. >> see more tonight in the premee pr -- premiere of secret lives of the super rich. when we come back, bob corker will join us to talk about the shut down. we have much more just ahead. is now the time to buy the stock in awol street analyst will join us after the interview. stay tuned. "squawk box" will be right back.

the debt battle in the senate takes a turn. >> i do not like them green eggs and ham. literature will dig into the substance of the debate. >> amazon adding a may day to the new line of kindle fires.

>> that's the russian new year. we'll serve hot -- >> more of the the interview with amazon ceo jeff bezos. >> learning about the feds no taper decision a fraction of the second early made millions of the difference for some traders. this hour of "squawk box" continues right now. welcome back to "squawk box" here on cnbc. i'm joe along with becky. harry wilson, ceo of group and former yahoo board member. more from harry ahead. >> it is now just after 8:00 a.m. on the east coast. texas senator ted cruz and a few

colleagues are talking and standing. they took the floor yesterday afternoon vowing to speak opposition for obamacare. the overnight talk aon this created talks by lee, other gop conservatives. republican leaders opposed the time effort that the house won't have time to respond to the action. the spending bill is required to keep the government fully open after the october 1st. the senate test vote is scheduled for this afternoon. we're going to get bob's take on all of this in a couple of minutes. in the meantime, the government is in early stage settlement talks. lawyers for the two sides met last week, first sit down meeting before he was indicted on trader charges. the group met. this could resolve the investigation and continuing operating as an independent. maybe it signals they don't have

a strong case. bring the case or don't. this feels like a weird situation. this other situation feels weird as well. j.p. morgan trying to stop a wave of litigation from the government. the bank has a multibillion settlement over the sale of troubled mortgage securities. the new york sometimes says the settlement came from talks that the bank would pay between $3-7 million. a lot of mortgages were things they were forced to buy. you're a former -- does this make sense to you as a former government and wall street guy? >> what's the problem they're trying to solve? if it's behavior for people that worked at firms that worked there years. don't go after the firm years after the fact for predecessor actions. if that's where actions are, go

after the individuals not the firm. >> you can't get money from the individual. >> that's abuse of power. >> hinge the individuals will always -- i think the individuals will always fight. they're not going to settle. if you want a big number, you can get a big number. >> they're making credit hard to get. >> what happened to club ex proposals? >> not for these folks. this is pre-crisis. today there would be for sure. >> look at j.p. morgan. most people got fired and money was clogged up. we as a society -- i don't want to say we. for some reason that's not enough. that's clearly why the government continues -- >> obviously there's more headlines when j.p. morgan pays x million. people committed the crime or did the bad behavior. >> let's check the markets. after four days of declines, you can see futures are indicated

slightly higher. dow up 22 points above fair value. s&p are flat lining as are nasdaq. if you watched overseas, japan lost three yart quarters of a percentage point. shanghai was down four tenths of a percent. in europe you can see red arrows. these are modest declines about a third of a percent passenger point. that's the biggest decline in london. as we mentioned, senate is expected to have a proceed rural vote. senator cruz wants to defund obama care. the tweet last week said i didn't go to harvard or princeton, but i can count. this is a tactic that will fail and weaken our position. joining us now is senator bob corker. you're in favor of defunding but

don't approve of this tactic. is that correct? >> all of us are concerned about policies put forth. we may get a delay in individual mandate, have the employer mandate delay already. possibly i think you know subsidies going to individuals, you cannot verify income yet. to me that's a problem. again, i think there's been a difference in view as to you how to go about this. i think everyone truly is very concerned about how this is going to affect individuals and the economy and companies. we've seen that with more part time workers, with companies worried about going over 49 employees and being called up in this. we've had discussions about tactics. you expect that i think. we are where we are. hopefully something good can come out of this. >> senator, let me ask you. the idea of more part time

worker, uncertainty that's been out there, that's been the cause for why you've seen problems and people pointing the finger at washington saying there's the issue. if you have a delay for the year of the mandate, the uncertainty continues. as ed pointed out earlier, it's a problem for insurance companies forced to pick up a lot of things without having individuals having to come in. it doesn't make sense to be able to offer a lot of parts they're already forced to offer like allowing people to stay on parent's coverage until they're 26 unless they have younger healthier people in there. you're not going to get that with individual mandate. >> you'll find it difficult getting younger workers. becky, i covered this closely. there's a three to one ratio where seniors cannot be charged more than three times the amount of a young, healthy person. what you're seeing around the country is young bullet proof people that think they're healthy and don't have to worry about things are very unlikely

that many will sign up you any way because of the cost. when you have these as you mentioned when you prequalify regardless and can get on any time, some decide since rates are jacked up, they're going to wait until there's an illness or some reason for themselves to have insurance. i think there are a lot of issues here. there are real concerns about this policy. yes, we've had discussions about how to deal with this, but i want to say this is like groundhog day for y'all. for me, it seems like we're always on the verge of a shut down. on the other hand what you've seen come out of this is permanent tax policy for individuals. you've also seen for the first time two years in a row we've had reduced spending. what i hope we'll be able to do is substitute mandatory reforms for some of the discretionary cuts, having the same amount of

reductions over the next eight years as we would have under sequester. doing something better for our country. this is ugly to watch. sometimes this is painful to participate in. we're clunking along and hopefully over time doing those things that would make our country much stronger. >> how do you get there? plenty of insiders say they think this is set up for an actual shut down of the government. there doesn't seem to be a clear path to any sort of compromise. what path are you seeing through? >> i think there's kick the can down the road situations. i will say and i don't want to scare your viewing audience since i'm glass half full thought person. i don't feel quite coming together at presence i've seen in the past.

the white house is totally uninvolved. you've got 535 folks here. there is no strategy i see. again, some how or another, we seem at the end in the final analysis and final hour to always figure out a way to solve these. there's not a gelling now. i will tell you that. we've got to figure a way to make that happen before debt issue gets on full board. >> senator, it's harry wilson. on obama care, is the goal to stop it as much as possible or what is achievable? >> as i mentioned, i think the house has already figured out that a total defunding is probably not in the cards. civics lessons, house controlled by republicans. democrats have the senate and certainly the white house. i think they're beginning to

think about things like the individual mandate, things like the subsidies that are going into place even though you cannot verify income. those kinds of things. harry, seriously, you're in business now. i know you used to be here. i enjoyed working with you and folks around you during the a o autocrisis. i think any serious person would say there are issues. you know, trying to fix some of those before it actually kicks in full gear, i think would be something good for our country, so we'll see what happens in the process. what i hope we won't lose sight of though is a cr, funding of government, a debt ceiling obviously again around the funding of government, hopefully we won't lose sight of the fact our goal is to make our country fiscally stronger. i hope we don't go down

political rabbit trails that take away from the seriousness of trying to solve the country's fiscal problems at large. >> bob, do you think we will or won't be in a situation to shut down the government? >> you know becky, you know, every time i've come on by luck maybe and having insights i've predicted exactly what was going to happen. in this particular case, i don't have the clear vision that i've had in the past. again, i don't see the kinds of serious conversations taking place. i don't think we'll have a shut down over the cr. i don't. the debt ceiling -- if it occurs, let's face it it's a painful deal. it will be brief if it i happens. i hope it doesn't at all. i don't think that's good for our country in many ways. on the debt ceiling, i'm not

seeing the seriousness of conversation about what the real issues are. i'm beginning to see candy being passed around, if you will, to see what it might take to get people to vote for debt ceiling increase. that demeans all of this to me. again, i'm not saying the white house plays any role in this whatsoever which is not a typical thing when you've got serious issues. becky, i hate to say this. again, i've been batting a thought on your program saying what's going to happen. i don't know what will happen with the debt ceiling. i don't. >> that's concerning. senator, thank you for being with us. we hope to talk to you again as this process continues. >> thank you. >> later this hour -- >> we want to mention this quickly. you go ahead. >> later this hour we're going to continue our discussion with mark warner. >> are you excited about this striker? >> strikeer, the orthopedic

surgical company, buying maco surgical. it's a $16 stock. that's halted. they're paying 30. >> wow. >> $1.65 billion. stryker makes -- there's a time i'm wondering. knees or hips. mako makes a robotic arm used in orthopedic surgeries. it makes sense. did these guys get the medical device makers? they never got the exemption. i don't know if this has anything to do with the merger. >> they make an electronic arm, not for surgeries themselves? >> yeah for the doctors. to put it -- >> it's not a robotic arm.

>> now they're doing interesting things. amazon's new line of kindles going to include the may day button to connect users with free video any time of the day. i always say budding with a "d" but i said button with a "t." we're going to talk to a top analyst on what the new offering mean for amazon's bottom line. we're coming right back ♪ [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account.

welcome back to "squawk box." amazon ceo unveiling the new line of kindle fire tablets. he spoke with our john fort. >> it's interesting. apple mobile devices is primary devices for third party apps. it became clear after talking to jefr that he sees the kindle fire as a vehicle for consuming amazon's content. content has been dear to jeff's heart. amazon began as a bookstore. he recently brought the washington post. i asked what the guiding principle is when it comes to

content. >> in content, you have to be interesting. that's where you have to be rivetting. that's a key feature of content. we have amazon publishing, books, studios, developing original tv for instant video. the number one rule in that business is be interesting. >> you said people ask him all the time what's going to change in ten years. he likes to plan business based on what's not going to change. these kindle fire tablets are going to make it harder for microsoft to get traction too. the kindle will run $379. it's got a great camera, screen resolution. it isn't going to derail apple, but it will be to see if he can turn this into a three horse market race. >> we'll get reaction to that

interview and more from the kindle design. we have the internet analyst. good morning to you. >> good morning to you andrew. >> is this going to make a dent in the world of tablets at all? >> i think it has. it has 10% market shares. that with basic e-readers, these have helped accelerator. they don't disclose it, but it's almost certain they're seeing one to two times increase in video and music sales off the tabl tablet devices. >> this is the razers and blade strategy. >> i think they're trying to do is sell products at cost and then make small incremental margins, call it high single digit margins. the advantage is it comes to the

market with two to three percent increase. >> a lot has been made of the may day service which i'm hoping to get my mother on. it requires a lot of human beings to be on the line. you're able to press a button. i can't say the word properly. on the other end there's an amazon employee going to be tech support right there. if they actually get enough you uptake on this product, i assume you'll be on hold. >> yeah, that could be a problem. that sounds like a call center. we assume they'll outsource a lot of that. key thing to keep in mind, they're bringing down entry points on devices. you can get the inexpensive tablet $159, $139. you can get an e-reader less than $50. this is messier for the market. that generates low price, low

cost companies like amazon. >> different customer than the ipad for example or even the microsoft surface you were talking about? >> hard to know about the surface. ipad probably. that's the wrong expression dumb down. try to make them as accessible to the market as possible and integrate services they normally like. there was one comment besos made in the interview about being depend ent on the upgrade cycle. they'll make just as many profits off those prior versions of the kindle because it's about the follow on sale, book sale, video sale. amazon's advantage going into the market it can cross sale. >> let me flip that around quick. everyone wants the latest, greatest newest thing. if they're not making money on device perhaps losing money and everybody wants to participate

in upgrade cycle, i understand he says it doesn't matter. i assume it matters a lot to them. >> yeah. i'll make two points. one, i think they're bringing products out at break even price. i think the strategy is not to lose money on devices. i challenge you on the assumption everybody wants to upgrade. there's a large market of people that want a good device that they don't need to upgrade and keep spending more money every year. >> me, me, me. i don't want to change things. i don't want things to change. set it up, make it work, and leave me alone. >> there you go. jeff's new customer here. >> mark, thank you. >> thank you. coming up, the government's report on durable goods and forecasters expecting a decrease six tenths of a percent after last month's decline 7.3%. next, your "squawk box" update. we'll talk christmas spending and hiring. that's next. ♪

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welcome back to "squawk box" everyone. americans expect to spend less on halloween. the national retail company says this is down from a high of 170 million people a year ago. those celebrating expect to

spend $75.03 on costumes, candy and decorations. that's a little scary. walking dead coming back next month. jcny plans to hire workers for the holiday season, roughly same level 2011 before it changed pricing strategy and did away with coupons and sales events. i guess we're going back to hiring levels this year. we're a few minutes away from durable goods for august. take a look at u.s. equity futures. indicated higher this morning after four days of declines. ♪ [ male announcer ] staying warm and dry has never been our priority. our priority is, was and always will be serving you, the american people.

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welcome back to "squawk box" everyone. we're less than a minute from the durable good number frs

august. u.s. equity numbers are higher. dow futures up 25 points. s&p barely higher, fluctuating around the flat line all morning long. rick santelli is standing by. steve is here with us in studio. rick, i'll send to you for the numbers. >> survey says august durable goods drum roll, up one tenth, much better than expectations. however, let's look in the rear-view mirror. last look wasn't good at minus 7.3. that's been downgraded to 8.1. let's take out transportation. it's up 1.5. let's take out -- you know, it's interesting. we were looking 2% on transportation. definitely solid but not solid. last month 3.3 unrevised. let's look at business spending in the form of capital good

orders. non defense ex aircraft up 1.5. it's a positive number, also light. non defense ex aircraft on the shipment side, this turned positive. this has been a highly debated area on the shipments. last look minus 1.4, up 1.3. you know what, it isn't a horrible number. it could be better. i'll let steve debate it. we are looking at the preopening equities that becky referenced, lower on the dow futures and s&p future. dollar a little under. interest rate basis point lower than yesterday. roughly six week three day low. back to you. >> rick, stay there. let's bring steve. this number made people wonder about growth for the quarter. it was a big shock that the number was downgraded. >> it's a volatile number and very key to what boeing is

doing. boeing -- i don't have the prior month's numbers here. the first print on them. in july, non defense aircraft parts, a long way of saying boeing, declined 58.9%. now you it's down by 1.2%. is there a reason? >> i don't know. i think boeing is still kicking it out of the park as far as i know. it may be a timing thing. i don't know that aircraft orders have declined. it's something to watch. you've had this up and down pattern with business investment. that's the thing to watch from this report. june up 1.1. july down strong 3.3. this month august up 1.5%. little less than expectations i saw looking for positive 2%. i'm guessing it still means business investment detracts growth in the third quarter.

perhaps slight growth. addition in the second quarter. that's the thing to watch. rick talked about shipments. this feeds into it. shipments were non defense aircraft ex were up a little. that's going to help out a little bit. that's the more meaningful number. the cross currents that are making me hesitate in how i talk here is osm good, regional good. the question is does government pick it up on first, second, third print basis. that's what we're watching? next week we're getting ism manufacture. i know it's another show. if you don't mind, housing data coming out at 10:00 in the post world is an important number. we want to know how much higher rates are affecting housing. now that rates have ticked down, fed seems to have bought 20 basis points at cost of according to hawks on the fed board, credibility and trust.

and the cost of simply delaying. bought 20 basis points that seem to be going through to the mortgage world. >> 2.65% for the ten year. we were talking earlier this morning. i had seen an analyst saying the next level it will fall to is 2.465% or something. joe saw somebody predicting 2.1% next year. what do you think is happening here? >> i thought i had a good handle. i thought the market was predictable prior to last wednesday. once again, there's the game show fed is buying more on the manage interest rate side. since it's a manage market, it's difficult to tell, becky, when the market perceived normalization. how yields go? the market has a baby sitter again. i'm not going to venture a guess. i'll tell you this. i think the down side of interest rates or the upside of

price is limited. whether you normalize next meeting, meeting after that or market takes full control, it's still much more digital than we're seeing at the current time. >> if people can go back and look at transcript online for the deadly interview published yesterday, i wish i could point to a clear paragraph. there isn't one. i asked point blank are you targeting interest rates? he said no, we're not doing that. we want an interest rate commensurate with our outlook for growth. this requires you -- i know rick scoffed there. it requires you top get inside the fed's head in a way that's difficult. what do they believe to be the right interest rate for the growth forecast? at 2.65 i'm sure they're more comfortable. they're going to move again. then it becomes a question how much can you rely on fed's

policy at this moment to maintain current pace of purchases so if you're in the market you end uptaking position. that's where we're at. when rick says it's a confusing time, i join him right there. it's hard to get inside the fed's head and understand what they're looking for. >> gentleman, thank you. >> it's like having a king or monarch who can unilaterally do what epts. all charge accounts associated pretend they have a say so. trying to get in the heads of feds is trying to get inside peewee herman's head. >> looking at fed and history seeing where the market is going, we're in an upside down world. i can't believe more of you aren't out there trading that wouldn't tolerate management in your marketplace. speak up people. is the money you're making too

hard to pass up? >> i don't want to think of what's in pee wee herman's head. wow. man. >> you can always count on him to elevate the conversation. >> that's not what i thought of immediately. the shut down show down is front and center on capitol hill. bob corker spoke to us earlier this hour about the debate. >> hopefully we won't lose sight on the goal to make our country fiscally stronger. i hope we won't go down political rabbit trails that take away from the seriousness of solving our country's fiscal problems at large. >> mark warner member of the budget committee. we would have gotten someone to argue with you, but we've had a

love fest on both sides of the aisle. >> you serve had the earlier comment about pee wee herman's head. say the same about what's in some folks heads in washington. we're days from shutting down the government in washington. i'd like to take some of these senators down to the road. come next week, 66,000 soldier go to work without a pay check. shipyard workers are told to stay home. this is crazy. >> you are one that acknowledges, there are things we need to figure out? >> absolutely. this is not about obamacare. want rational argument or discussion about what's good or bad in it? that's a legitimate discussion. this is kind of political theater at its worst at the core

when we ought to be talking about how to get the nation's balance sheet back. both political parties are going to have to give. republicans have to give on revenu revenues. democrats give on entitlements. we're going to go through this every few months. this week is a warm up of what's we're doing in a couple of weeks. folks up here saying even if america default, it will make a difference. >> you're a huge private sector guy. you had a great line. you were the first person in your family to make $200 million. >> cell phones were good to me. i hate to see the notion the next generation of folks won't get the same opportunities i got because we're going to be saddling on what now $17 trillion debt and counting. >> how about we assume there's leverage on either side in

what's coming up and try to do something leverage one or the other side to do something in long term best interest of the country. is that possible? >> there are a group of us, bob corker and i, our gang of six. there are an awful lot of senators on both parties frankly up you to here with the kind of antics back and forth. what we've got playing out right now is the delay tactic that i think chances are you could see a government shut down. i want some of these senators to travel with me down to some of these families who aren't going to get a pay check in the level of uncertainty. >> do you think entitlements or tax reform -- you want to do sequest sequestering? >> this is stupidity on steroids. there's a way to cut government that's smarter. we have the house plan that in a

dozen years would take total federal government spending on education, infrastructure and r andd down to less than 5%. no business would invest in that business plan. i think we need to generate revenues in tax reform, look at how we bring down the cost of sequestering. i've looked at age and consumer, list of ten things. both parties have to get serious about this. >> the president says he won't negotiate on this point. are those things like jooirkscpi still on the table? >> the president laid this out in the budget. it took the senate a long time to pass the budget. we can't get to a conference committee to have a debate about this. the one thing i agree with the president and support the president, not governor romney

but i hope he would have said the same thing if elected, you can't have the full faith and credit in the united states of america regularly used as a debating point. no national power has ever defaulted and maintained itself as a world power. >> senator, i don't know -- how many jobs do you think you're responsible for creating? >> listen, it was in the enttenf thousands. >> have you ever -- we've talked a lot of times. have you ever raised your hand with the white house and said the private sector is really effective at creating jobs and raising tax revenue and doing a lot of things that quite frankly the government is not effective at doing? >> i've raised my hands with both folks in the administration and raised my hand with folks i work with here. i'm not saying -- some of the

antics are going on now aren't reflective of the republican party. we have a group of folks -- i'm not sure what their goal is. >> how about your side? it's easy to bash them. you can get too far on the government wagon. aren't we reaping what we've sewn? >> percentage of spending on domestic programs now you is smaller on discretionary programs smaller than during eisenhower. >> a lot of solutions seem to be when you talk to democrat, government solutions not private sector. >> if we're going to have economic growth, we've got to have the educated work force, infrastructure. as we've seen the private sector lay authorship more and more of r and d onto the public sector side, we've got to have that

investment as well. can we do it in a more rational way? absolutely. we never got a vote on the simpson plan. >> you can't blame just republicans for that either. >> there's blame to go around on both sides. occasionally it ought to be not red shirt blue shirt but how we keep america competitive in this challenging global economy. >> send me a list of guys you're talking about with the pee wee herman. i'd like to know which guys you're referring to. >> i'll let you're mind wander on that. >> we always enjoy having you on. you talk to corker, reach across the aisle. one of these days this is going to bear fruit, hopefully in our lifetime. >> you've got to stay positive or i'm in the wrong line of business. >> that's not easy down there. thank you senator. coming up, as much as $600 million changed hands in chicago in mill seconds after the fed

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make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. welcome back. fed says it's following up with news organization about embargoes. this comes after the reported unusual trading situation around

the release of fmoc statement last week. we have more on the story this morning. good morning to you. >> the embargo rules were in place inside the fed's lock up room. they give the reporters access to the fed decisions a few minutes in advance of 2 p.m. in light of wednesday's no taper release. some how information from ion side the room appears to have traveled to chicago earlile. according to the firm, it takes about seven milliseconds for data to travel from d.c. to washington. that's the time you expect to see markets start to react. last week, chicago markets reacted two to three milliseconds, much you faster than gold and other things than is theoretically even possible. the fed will not take the news

organization they're speaking to. we've contacted all news organizations we call high speed feesd out of that room. we've gotten responses from a couple. dow jones would not answer our questions about whether or not he transmitted information out before 2:00. they said we'll work with the fed in full accordance to their desires. they gave us this statement. we distributed the news per the feds embargo process. we did not release prior to the 2:00 p.m. embargo. i've asked the fed again today, what were the rules inside the lock up room that we participated in last week? were reporters allowed to transport anything out of that room before 2:00 p.m. even if just to their own computer servers and moving that information to chicago before

the release inside their own servers so it could be released in chicago at exactly 2:00 getting a jump on the translation time? the fed will not answer that question. they e will not say what the rules are. trying to get some m clarity from them today. >> i don't get it. the fed won't even say what the rules are? >> that's what's extremely weird about this. >> eamon, when you're in the room, you have your computer there? how does it work? >> there's a couple of different ways it works. our steve liesman are matt cuddy were the people for cnbc in that room. they lock the door about a quarter to the hour and about ten minutes to they hand out the fed decision so reporters can pore over it. i'm told reporters had access to electronic devices in that room at that time. and the question here is for the print reporters or the people filing on the wires and low

latency feed agency, the question was what access and what did they have access to hook up with. >> if we're allowed to walk in with a blackberry and they open the door and everybody runs. is that a better solution. >> they open the door now at 1:58 and escort steve liesman up to the balcony and make sure he didn't transmit any information at all. >> touch your right ear, your left here. >> you could come up with a code if you're a nefarious person. >> that's bad news. >> jim cramer will join us from the new york stock exchange right after this.

let's get down to the new york stock exchange with jim cramer. big news this morning with strikers buying macos. interesting, this has always been the son of isrg. it looks like they bailed it out for shareholder. this has been a disappointing stock for people. they have to be happy today.

>> the durable numbers, they're doing better but that's not saying a lot. >> the baltic is well over 2,000, it was 800 two months ago. steve has tacked about aircraft sales. i still think internationals and cyclicals are the place to be and the durable numbers are not showing you that's not really the case. >> we'll see enough a couple of minutes. >> coming up, our guest host has been harry wilson. we're going to give him the last word when "squawk box" returns. nascar is ab.out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets,

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it's too complacent. the most likely outcome is bide some too many, kick the can down the road. >> answer your phone in case they need you again to restructure something. >> that does it for us today. make sure you join us tomorrow. right now it's time for "squawk on the street." good wednesday morning. welcome to ""squawk on the street." the s&p is threatening to fall for five days in a row today, something it has not done all year long, as the market watches the republican budget filibuster now under way. 10-year note could see action as mortgage notes come in okay but durables disappoint. europe did see decent consumer confidence numbers out of germany and italy, mixed numbers over there.