good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. our big story this morning is the budget compromise. patty murray and paul ryan reaching a deal that will avoid a government shutdown. >> i think this is a clear improvement on the status quo. this agreement makes sure that we don't have a government shutdown scenario in january. it makes sure that we don't lurch from crisis to crisis. >> this deal builds on the deficit reduction that we have done in 2011 and sets the precedent that sequestration shouldn't be replaced with spending cuts alone. this deal will help millions of americans wondering if they were going to keep paying the price for d.c. disfunction.

>> in a statement, the president called the deal balanced saying it increased target fee increases and spending cuts designed in a way that doesn't hurt our economy or break the ironclad promises we've made to our seniors. it's the first budget that leaders of both parties have agreed to in a few years. the american people should not have to endure the pain of another government shutdown for years. house speaker boehner said while mottest in scale, this agreement represents a positive step forward by replacing permanent reforms to mandatory spending programs that will produce real lasting savings. john harwood has the latest data from the nbc/"wall street journal" poll. right now, let's check on the markets. after all of this, we can see the markets are barely budge. waiting to take their cues, see what they think, see whether this passes, nasdaq and s&p down slightly and dow jones up 1.87

points. ten-year note down to 2.808%. andrew, good morning. >> becky, thank you. mastercard has now announced a ten for one stock split and 83% dividend increase and a $3.5 billion stock buyback program. the company says the move reflects mastercard's commitment to delivering shareholder value. that stock, take a look at this, jumping more than 60% this year. wish you had known about this a year ago. also, general motors will stop making cars in australia by the end of 2017. it cites high costs and extremely strong currency. the move has sparked fears that toyota might be following suit. and a gm official says there is no viable way to manufacture car necessary that country over the long-term. i wonder what the folks locally have to say about that. hilton hotels expected to price an initial public offering later today. it would be the largest ever hotel ipo.

hilton was acquired by blackstone back at the height of the market and perhaps even the bubble in 2007. a lot of people thought that they were going to lose their shirts and they may not in this case any more. joe, over to you. >> all right, andrew. speaking of shirts, another new one, i see. how do you like it? >> it's a better collar. >> it's one of the new ones. >> nope. >> it isn't? >> nope. >> it looks great. discovery communications reportedly has its eyes on scripts network intersieve. discovery is considering a bid for scripps. discovery is the operator, obviously, of all those networks, discovery, animal planet, tlc among others and run by david zasloff as you know well here. discovery had approached -- i know the guy from scripps, pretty well, too. lowe, ken lowe is his name. they know each other pretty

well. but scripps was not interested in selling at the time. i think it's a cincinnati-based company. you probably met the guy. he's around. for being based in cincinnati, he's up here a lot. and i know they know each other pet well. that might make sense. he's not that old of a guy, really, but an acquaintance of our friend. >> of our friend. >> of our friend, david, yes. let's talk more about the budget deal. joining us on the set now, ben white. i'm going to call him politico's chief economic correspondent. joe can come in -- >> i've got beltway ben, bleeding heart ben, he's here. >> all of which are equally inaccurate. >> i won't go to our last conversation. it might be a little more accurate. >> you gave me a great complex. >> no, i did not. i said you're big boned. >> from d.c., john harwood,

cnbc's chief washington correspondent and john is joining us now, as well. >> who wrote that the blue devils that florida state needed to be afraid of the blue devils. and i didn't answer you that day, john. i laughed when chuck todd said miami had a chance against florida state, but i laughed a lot harder at your comment. wasn't it 38-0 for a while? >> which game are you talking about? >> football. >> which one? duke? >> all right, never mind. never mind. >> yeah, we got hammered. >> but you tweeted beforehand that florida state was going to get it come upance with the devils. >> that was kind of a joke, joe. >> you can't tell. that's the thing with twitter. you can't tell. >> it is hard to read. >> john, duke was ranked at that point. weren't they number 20 or something? >> they're still ranked and we're going to play texas a&m in the chick filet bowl.

i'm a little worried about that one. >> becky has been bragging about the pinstripe bowl. notre dame is not even admitting that they're going to that bowl. >> notre dame in the pinstripe bowl on december 28th. right here in new york city. >> that will be fun. >> joe? >> yeah, buddy? >> i want your pick on fsu/auburn. >> you know what? i thought florida state gag was going to hammer them, but bossty was in saying the florida state schedule was so much easier than auburn. i don't know. florida state, i have not seen any weakness. >> i like florida state. i lived in tallahassee for a while. but i'm thinking that the s.e.c. is a forge that makes a team -- >> i think so, too. i think that's a good way of putting it. and auburn might pull something out of its hat -- huh? huh? might pull something out of its hat again like the last two

games. >> but they looked unstoppable in the last three games. >> we introduced this segment as a budget segment. >> andrew is so bored with this. it's the oblong one, not the round one. no, no, it has like pigskin, first down. >> as long as we're not talking about the redskins, i'm happy. >> in nine innings in that game? >> is there anything other than to say that the budget, they did do it, right? >> well, they haven't passed it, but they will. >> and steny hoyer was saying there's guys in the tea party that won't to it and there's guys on his side that won't do it. isn't it done? >> i think it's going to pass. there will be people who oppose it on both sides. marco rubio came out last night and said he's against it because it continues washington's big spending ways, etcetera, etcetera. so if you've got an ambition for running in 2016 and you're a republican, you're likely to go against it.

but i do think that the leadership of the republican side is for it. i think most members are a little toird of beating their head against the wall on some of the standoffs that they've had with democrats. .i think democrats can say, do we get what we want? no. but is it better than nothing? is it better than shutdown? is it better than another debt crisis? and i think everybody is going to say, let's do it and the we'll fight another day. >> there's one piece to that that the democrats are not happy about this morning, which is the unemployment benefits. but there's a view inside washington that they're going to come back at this issue again anyway. >> come back at the unemployment insurance? >> at the unemployment. >> i think they are. >> you don't? >> they can discuss it. i don't think it will get passed. >> not in this, but they may come with a separate bill. >> andrew, i'm hearing resignation in both houses that that is done and that democrats put up a nominal fight for it and said, oh, put it in, but there was no real umph behind

it. there was no bottom line demand behind it. so i think that's done. and it's another marker, i think, of the way that people are shifting from crisis mode on the economy to a different way of thinking about where we are. >> and let me also say it's harder to offer the case for extending jobs benefits when you see the nebs we had. the problem is with that that the improvement in the unemployment point and the jobs being created are for short-term unemployment. this will extend benefits for them. that is a difficult argument to make. there might be more discussion of it, but they're not going to get it in a separate bill. very unlikely. >> right after that, we had grover cleveland. >> that would be incredible.

>> whoa, you heard grover cleveland? >> i meant grover norquist. >> was he any good? i don't know if he was a good president or not. do you know, john? >> well, he -- you remember he was targeted for some of his extra marital activities. >> oh, my god, that's unheard of. we know super grover from sesame street. >> the thing that struck me, grover norquist, was that he would be willing to take these higher fees with his revenue, taxes, in the past, taxes are taxes and revenue he wouldn't go along with. when he said that yesterday, i thought, this is something. >> it's not technically taxes. it's airline fees, it's asking pensioners to pay more. >> do the airlines have the largest lobbyists in the world? >> they have a lousy lobby and everybody hates them. but consumers will cover that, anyway. it's going to get passed through the price of airline tickets. >> our own larry kudlow on

television last night said ronald reagan believed in user fees. >> he did. >> and they're not taxes. you'll see folks like heritage action, the real hard right on fiscal issues say that this is a tax in another form, but grover is not going to say that. most republicans in the middle aren't going to say that. it's not a tax increase that would kill a bill in the house. it's not enough. >> to the end of february, and into march, is there any chance that we have to deal with the debt ceiling now? >> we're going to have to deal with it next year. but it's not part of this agreement. we have to deal with it next year. i don't think it's going to be a huge fight next year. the question is, republicans are still going to have to vote to raise the debt ceiling, which is something they hate to do. they're going to have to figure out a way to get -- my point on that is if treasury can push it

out to may or june with extraordinary measures, you get passed a lot of hard core republican primaries, so members who are worried about getting challenged have less to worry about if it's later in the year. which treasury can probably push through, particularly with a better economy, more revenue coming in. >> debt ceiling will get raised as smoothly as a washington redskins long snap to the punter. >> which is not smooth at all, right? >> if you remember, the redskins dribbled one on the ground. >> i do remember. >> no, i think ben is right. again, if you decide that you're not going to have brinksmanship on shutdown, which is what this budget represents, you're kind of saying i'm past the debt ceiling fight. i think primaries are an issue, but i think we're going to get by that. >> i think we probably will, too. the republicans want a fight of obama care. they see the president wounded on all this stuff that's not

related to the budget necessarily or the debt limit. so why set themselves up for potentially being blamed for another crisis when they have a laundry list of other stuff they would fight on in the long-term. >> and by the way, guys, the poll that we've got out this morning which shows obama under water, 43% approval, 54 record high disapproval shows that 51% of the american people think this is one of the worst congresses in history. all of those members, republican and democrat, are up for election next november. so they do care about that to some degree. and i think we're avoiding the debt crisis. >> i saw a 38 number somewhere. 43, you picked a good one. i saw a 38 number somewhere. >> 43% is his overall job rating. his job on the economy is 39% in our poll. >> don't you trust the "new york times" more to have better numbers for obama? >> please, please. they do corrections for the most

minor -- >> they do. >> they don't do it for any of their editorial slant, which is consistently wrong, but they do do it for -- >> thank you. >> you're welcome. >> the question i have, though, is if this is such a big deal, why does the market not seem to care at all? >> you think the markets overnight would be -- i think it's mainly because i wrote a lot about it on cnbc's website and it was prominent that this was going to happen this week, so it's now been priced in by the market. so i take full credit for the market's reaction to that. but i think there is a general expectation earlier this week that this was going to happen. >> and even before that, once the last one got done and the last time they did it, it took ten years before they tried to do it again because of the political dampness and there was no way it was happening again. >> given the underwomening drum roll for this deal, isn't the only way it would have a big market impact is if it goes down? >> i think that's probably right. and we should talk about the fact that this sets up nicely for 2014. if you're looking at the economy and risks to the economy in

2014, you've got one big one coming off the table here, which is a shutdown. >> if you thought that was the case and -- >> when the market's reaction. >> you had a number of economists saying this was going to push gdp potentially in a meaningful way. if true, you think the market would actually rally. >> let's give it time. investors will read morning money, they'll catch up and start buying. >> stocks don't move on the day that comes out on. they usually get there beforehand. >> i do think there's some level -- >> buy on the rumor, sell on the news is the most common expression -- >> it would be the fact that they have not digested the watershed moment. you look at this, oh, it's a small deal, it's no big deal, there are all these problems. but there are not all these problems. i think long-term it's bullish for markets. >> let's leave it there. >> joe, did the ten-year come to a high when you saw yesterday paul ryan standing tall, paul ryan standing next to patty

murray and they were praising each other for hard work and -- >> no. i'll tell you what i said. you don't know that tall is tall unless you're around him. she's obviously dimunitive. >> you got it. >> but he is a lanky fellow. he's only a 170 pounder. we like him and no one -- you know, we talk about christine, we talk about jeb and we talk about people like that. we don't talk about ryan. maybe he's too young, but he's a kennediesque -- he's irish with the square jaw. he's young, but don't count him out. >> wall street likes him, too. he's a dealmaker. >> yeah, but rubio said last night, it's on with ryan. excessive washington spending, he's slamming it. >> but i think rubio is getting -- >> the tea party nomination is not worth that much. >> and i know paul is doing better now because we haven't seen him on "squawk box" for a while. when he needs us, he comes on.

>> the reasonable this did wall is because both paul ryan and patty murray kept this close to the vest. and they built up trust between the two of them, which i thought was a really good thing. >> becky, when you guys were introducing me, was my white balance on tv? >> no. >> clever work in the control room. that is a christmas gift to all of us. >> but your hair is flat and wet again, john. the rest of the day, it looks normal. i'm going to buy you a blow dryer for christmas. >> joe, i'm going to have paul ryan help me with my weight. that is good. i'm going on p90x with paul ryan. >> you look good. you do. >> i appreciate that. but still, i could do some p90x -- >> were you an end? >> i played football, but i was more a basketball guy. >> were you an offensive lineman or something? >> yeah, i was sort of an offensive lineman.

>> so why are you running from your past? i don't -- >> he ran a 4.3. say it loud and say it proud. >> rg3 kind of speeds. >> it was ten yards, but -- >> i am very tired, folks. thank you. when we come back, meg whitman speaks exclusively to cnbc about the computer giant's business. we have that and much more coming up in today's executive edge. and later, the wisdom of dilbert. the author has a new book, how to fail at almost everything and still win big. this isn't a joke. this is something to guide you on your way if you are trying to find a way to straighten things out. he tells us why passion is -- well, he calls it b.s. first, let's find out if there's any more snow headed minority northeast. alex wallace has the forecast. >> i wish i was bringing better news, but yes, there is more snow headed for the northeast. right now, though, it's around

the great lakes where we're finding snow, mainly lake-effect snow and that's going to be piling up out there. here are some of the totals we'll find through friday morning. the u.p. of michigan picking up the heaviest snow. but the eastern lake ramping up here. a foot plus for us east of erie and even more. we're getting up to two feet east of ontario. then we'll turn to the next storm system. midwest, icy concerns here for oi our friday. then as we head into saturday, snow for the great lakes and now the northeast, including new york city. and by the time we get to sunday, it's new england. more "squawk box" is coming up next.

time now for the executive edge. this is a daily segment focused on giving business leaders a leg up. earlier on cnbc, meg whitman spoke exclusively with our karen tso in barcelona. karen asked whitman about the future of the bicycle division. >> so this was the very first decision i had to make when i came to hp. so i took 100 days and basically said, this is very much a core part of hp and here is why. we are the biggest compute company in the world. this is what we know. everything from, you know, as i said, bdi to workstations to laptops all the way to huge high performance compute machines.

so it fits into our overall strategy, gives us supply chain leverage. so we're committed to the pc business and what we call the personal device business. >> guys, he has said this in the past, but it's worth checking in with her routinely on this because the street has a lot of questions. >> i think it's the consumer business which is the hard part. >> is personal business a core part of the future of what

consumers do? >> probably not, but they might be. >> we're buying a laptop. we're getting a new laptop. >> i was going to say, i need a new laptop at home right now, too. i need a new one because when i'm writing stuff and typing things, i need one that can sit on the counter top and i can use. >> it's like the newspaper business, it's not gone. it's definitely going, but it's not gone yet. and that is the way things -- and you figure this is -- >> long-term -- >> no, i always like newspapers. i do. >> whether they can translate the technology into a pc. >> don't you think long-term that the pc business is -- >> it's like the landline phone business, right? there are still people who use it, but -- >> do you have a home phone? >> yes. >> i have a home phone. but i never use it and i don't check the message machine, either. >> i think we have a home phone. i'm old.

i don't know. >> if you leave a message on our machine, don't count on any of us ever picking it up. >> give out your number while you're at it. >> no. once you get rid of your phone, you're talking about cord cutting from your cable and just having internet. and that's herecy. >> to me, i want it just in case of an emergency. >> and can't the towers -- >> it's in a bad situation. if you're on a triple play situation -- >> no, i'm fine. >> you don't have triple play? >> i'm old school. >> really old school. michael bell will be joining us tomorrow from dell world coming up at 8:00 a.m. eastern time. our next story this morning, urguay's congress has given the green light to set up the world's first national marketplace for legal marijuana. it will legalize the growing,

sale and smoking of marijuana. a government-sponsored bill approved by 16 to 13 in the senate provides the regulation and distribution for the consumption of marijuana and is aimed at rescuing the business from criminals in the small south american nation. >> i've been utah of the loop for a while. is nick rag one as good as columbian? hawaiian became really good. and in northern california, i'm told they learned how to make really good marijuana. >>o, your expertise in this area exceeds our -- >> mine is all -- i don't know any more. not that i ever did.

i never exhaled -- inhaled -- i never did one or the other. >> up next, the fed thinking about tapering and the government out of gm. and we're going to introduce us to the man in charge of getting the world to invest in russia. if yand you're talking toevere rheuyour rheumatologistike me, about trying or adding a biologic. this is humira, adalimumab.

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did he personally interview all the managers we've had here over the -- do you know whether the -- does he know -- >> he speaks the truth of all the corporate world. >> but whenever you show something -- >> i cut out his cartoons for years. >> you always point out former managers we had at cnbc on dilbert. how was that? >> good. >> good. good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. the white house republican leader are praising -- i'm not familiar with this word -- >> bipartisan. >> and that means what? have you heard of that? it says it right here. bipartisan. not familiar with the concept. praising a bipartisan deal announced yesterday. it was avoid another government shutdown in january and cut the deficit by up to $23 billion in ten years.

the deal is expected to pass both the house and the senate. and then they can all go home. earlier, it thought it was funny when you said we won't have to worry about the fear of -- or the pain caused by another government shutdown, but we'll still have to worry about the pain caused by the government staying on open, unfortunately, with obama care. we're going to watch shares of costco this morning. the whar house retailer reported a quarterly profit of 96 cents a share. results here impacted by lower gasoline prices. >> by the way, i wasn't the one who said that. i was quoting, i believe it was the president who said that. >> yes, it was. and i was saying back to him, that we will have to -- we've got another three years. and the national transportation safety board will open a hearing on the july crash of an asiana airline flight that you might recall crashed in san francisco. like the tail. >> just the tail. >> two people were killed. the crash killed three on the tarmac. >> by a fire --

>> i know. >> it wag awful. you land, you actually make it and then -- >> right. and more than 150 people were injured. investigators are looking into whether the crew was overly reliant on automatic pilot, on the jet's electronic system. and stocks coming off a losing session as investors await next week's fed meeting. we've been -- you know, we're right around 16,000 on the dow. joining us, drew mattes, deputy chief economist at ubs and jeffrey stout, chief investment strategist at raymond james in florida. i want to start just because i'm interested, jeff, in where stocks go from here and what you're thinking about 2014. because we've been saying, you know, you have a huge year. some people think, wow, i can't do that until next year. but we've made the point that sometimes the positive factors that cause a big gain one year, that's something that has a chance of continuing. is that what you think? >> yeah, that's what i think, joe. i think a lot of people that are involved in equity markets right now have never seen a secular

bull market. the 82 to 1999 or 2000 affair. they think you buy stocks to trade them in a month, two months, three months rather than hold a good group of assets over the long cycle. i think the odds are high that we're in a new secular bull market and i think it continues into next year. if we trade at just 16.4 times, which is what we're trading at now on this year's bottom up operating earnings, if we trade at that multiple with no expansion in the pe multiple next year, which i doubt you're going to get because of the tapering, you're still talking about over 2000 on the s&p 500 next year, which is a pretty good total return. >> the only thing that scares me is that it almost looks like e the -- what the fed was intending to provide that temporary bridge to the economy caught up and pass the baton in the underlying economy. and i mean, i hate to say that they might have been successful. so assume that we go up next year based on a stronger economy means that everything worked out. does that ever really happen?

>> it did between 1982 and 2000 except for the hiccup we had in 1987, which was a four or five standard deviation event and the equity markets took a hit, but the economy never really did. it came back on. and i think the sweet spot for the equity markets are going to be 2.5% to 3% gdp growth next year because it's simple and it's sustainable. i think that's the case we get. >> you know the case you could make, money your thoughts in the past is that yeah, it could work out, but they're delusional if they think they did everything. >> you read my mind. one of the things that worries us greatly at ubs is this idea that the exit strategy is going to go very smoothly. and, you know, secondarily, one of the things that may actually help the economy next year is the fed is exiting. people don't act normally in an abnormal environment. so when the fed begins to normalize things, other people begin to feel more comfortable that they know how the world is supposed to work. so that will be a net positive

for next year. but then one you get beyond that, then you have to ask yourself, how does the fete begin to raise rates when their balance sheet is $4 billion and should be $1 trillion. with extra dollars running around the system, how much control do you have in the price of money? >> you haven't been that positive on the markets, or the economy overall, whether the fed was really effective in trying to do what it was trying to do. >> well, we've been positive on the economy and we're not arguing that -- we've been arguing that the fed has actually been influence on growth rather than a helpful influence on growth. that wasn't always the case. qe1 was probably the correct call. it's once we got into this qe forever, you know, $85 billion a moo, no end in sight and they overlooked the opportunity to begin to taper in september, that's when we began to become more concerned about their eventual exit plan. >> so, jeff, what would shock you about next year? we hate consensus and the market

doesn't like to do consensus. it would either be a down year or a year up much more than the 7% or 8% or 10% people are predicting. which way would it surprise the majority of people? >> i think it would surprise the majority of people to be up double digits. and i think there's a decent chance of that. people don't understand that the markets don't care about the absolutes of good or bad. all the markets care about is our are things getting better or are things getting worse, joe? and things are getting better. >> so you wouldn't be surprised. >> no. i think there's a lot of upside to next year. i think there's upside to the fourth quarter. >> what about the ten year? >> you're still going to have -- even if the fed tapers, you're still going to be buying about 100% plus of net supply in the treasury market. so it has nowhere to go. yields are going to stay low because the fed will be stepping on them heavily even with the taper. >> okay. all right. thank you and jeff, thank you, as well. it still looks like you have a moustache to me.

but you don't. >> i had it for 40 years. >> i still see it. but you don't. anyway -- >> that was my image. >> yeah. >> need to get you a moustache. coming um next, an interview with the man in charge of convincing the world to invest in russia. and if you work in an office, you must know dilbert. scott adams will join us. "squawk box" coming back right after this.

welcome back to "squawk box" this morning. with the upcoming winter olympics in sochi and the protest in ukraine, russia is the interfacial spotlight for good and for bad. in a cnbc exclusive, the ceo of the russian sovereign wealth fund sat down to discuss those i shall with michelle caruso cabrera. >> good morning. 38-year-old old, he studied at harvard and stanford. his job is to try to convince the world russia is a place to invest. the russian sovereign wealth funds invest in its home ones. most sovereign wealth funds are trying to diversify. his job is to coinvest with other sovereign wealth funds and gets them to invest in the country. why on earth is that so difficult? a lot of people have a lot of concerns about russia. and i asked him this question.

he wasn't happy about it. people are concerned they're going to end up dead. people are concerned the rule of law isn't good enough there. we had a long intense discussion about those issues. we started talking about the sochi olympics, which is said to be a festival of corruption which it comes to the $50 billion spent on infrastructure. they do a lot of spending on infrastructure. i said tell me, have you done any investing in sochi? here is what he said. >> why no investments in sochi? it seems like a natural thing. >> secondly, again, we are going tore more basic things, such as, for example, toll roads where we understand that, you know, so much toll road demand is in russia. and risk to return profile is quite attractive there. we understand the criticism of some of the construction of sochi and the negative articles about it. i think the olympics will be sort of analysis by russian authorities into what happened there. but that should not be sort of

example of some other infrastructure projects that we are pursuing and the belief are attractive. >> why not? when they see what happened with sochi, what has been called a festival of corruption, of back payments to friends, why shouldn't they look at sochi and say, investing in infrastructure in russia can be problematic, to put it kindly? >> well, again, if you look at all of the olympics and lots of major project, i went to business school, lasted much longer, coveted much more than was expected. that doesn't mean there was major corruption in big -- in post. does it mean no infrastructure project in the u.s. can be pursued. so it's very dangerous to generalize. so all we can say is for investors believe in what we are doing and is putting their money into specific opportunities that we are pursuing. in one toll road project, the

structure is 50% from fund of russia, 25% from us and 25% of wul of the top australian investors. so we just proved by example that attractive investment opportunities exist in russia. >> so he wouldn't acknowledge this. clearly, the way they've tried to align investors money with the russian government's money is i perceive to be a way to ease concerns about issues with the appropriations, etcetera. he said you invest in china, you want a local partner. >> bringing it back to problems that we've experienced here doesn't seem like a way to al e alleviate concerns about problems you have there. >> yeah. i brought that up, as well. we went back and forth on this issue and over and over again he said no, no, rule of law is coming and, remember, it's a new market economy, right? we've only been at this for 20 years. >> thanks, boston. they gave him -- for screwing up that big dig.

that's what he's got. he said big dig like six times. that's his way of nailing -- >> later on this morning, what he says about ukraine. >> what about the ukraine? >> they don't like that any more. >> okay. thank you, michelle. >> see you later. when we come back, we're going to find out if the budget deal is really an improvement from the status quo. but first, the author of office satire. scott adams is here making his way to the set through a cubicle. we're going to find out what it takes from him to be successful. every day we're working to be an even better company -

and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor.

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>> welcome back everybody. he makes light of everyday situations and has become a staple around here. we clip the strip often, trade back and forth. everybody knows this is truth of what happens in the work place. scott adams is the master mind behind the strip. he talks about hiss new book. kind of the story of my life. welcome. it's such a pleasure to have you here. >> thanks. >> i'm sawestruck. we clip through it everyday. you speak to what happens in

real offices. >> it's kind of kind but -- >> sometimes it seems mean depending on who i'm making fun of. >> the employees are never really -- they don't get the sharpest part. >> well i show them lazy. it's the first cartoon in the employee based perspective. >> you got there honestly because of what you've done over the years. you worked at bank for a while and gathered material over the years. >> my failing became the fathering of dilbert. >> a lot of people send me information. a lot is this, business things happening. i've had several businesses, restaurant, food company for a while. i'm always immersed in business.

most haven't worked which makes the cartoon better. >> would it be possible for you to do dmv or amtrak? can you go into -- is that too much material if you went to the public sector for material? it's too sad. >> yeah, might be a little sad. i try to write about what i know. >> if this is that bad -- there's actually accountability in the corporate world. if there's no accountability? >> probably the thing i hear most, you think this is bad, try writing about the government. every once in a while i'll hear from somebody that works for boeing or a big airline or manufacture with government control. they're the worse. it's a little government and a little corporate stuff. >> when i first picked up the book i thought it was going to be a funny only book. while the book is funny, it has serious lessons for what people need to do and what they can do to pull them along.

i was amazed. there's great lessons on things to help you. >> i came out of a small town with 40 people in my graduating class of high school. i had the same teachers my parents had in many cases. by the time i got to college, i never owned a suit, never got on an airplane, never event at a restaurant. i had no mentors. i thought let me write the book about how you approach success and give them a template. it's not advice. it's here's what i did, here's what happened. every situation is different. make your own solution. this is a starting point. >> one of my favorite things is you point out the class you took. one of the banks or companies you worked at helped pay for it. you had high praise. it reminded me of the certificate.

>> probably 20 people in my class came in absolute basket cases talking to groups. all 20 of them became experts. they never told them what they did wrong. they said you did that well. you did this well. everybody became confident over time. that's all it took, confidence they needed. >> you stretched that into a philosophy on life. you say this is something people should do handing out praise freely to people. >> it's free. the cheapest thing you can give away is a compliment. if you don't, you're selfish really. >> one of the things we hear often is you have to love what you're doing. passion is very important. we hear that from people that are success. >> there's a reason you hear it from billionaires. if you ask how you did you become a billionaire? what else are they going to say? i'm smarter than all the poor people? i inherited it?

i did insider trading and that got me going. there's no answer that sounds good. you want that as part of your reputation. you say passion. look at american idol. winners have passion. you say that must have been important. then you see the shot of stadium full of people that didn't make it past the first round. they've got passion too. didn't help them. passion is the least predictive part of success. >> what is the most important part? >> combination of luck is one thing. you've got to be prepared with some amount of talent and picking the right field, staying in the game long enough luck will find you. that's mostly what i write about. how to prepare so you're ready when luck finds you. >> you took the time to do drawings of the three of us. we appreciate them. can we show them too? >> my hair has never been so neat. >> you look handsome, joe.

>> becky. i like it because you look 12. >> i'm wearing braces. >> we love it. >> thank you for the eyebrows. you said his mouth was difficult. >> i think i nailed it. >> i think you did too. >> one lesson you tell people a side from being prepared constantly, is part of that practice. >> i would say the one thing you want to do is layer on skills. i'm the perfect example of someone who's a meet oaker artist. i'm not the funniest guy this the room usually. i'm one of the few people that has all four things. that makes dilbert possible. you look at your own careers and have combinations of someone that looks better on camera. >> well i don't know, becky --

that would be difficult. please. >> it's the combination that makes things worse. >> we want to thank you for coming in. the book is "how to fail at almost everything and still win big ". scott adams, we appreciate you. i love this. >> really? >> i know that. okay. >> coming up, we've got a budget deal to talk about avoiding at shutdown. it's time to debate. the partners tell us if the compromise goes far enough you to fix the nation's finances. more "squawk box" in just a moment. hi honey, did you get the toaster cozy? yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate.

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we have a budget deal.

>> let the debate begin. former omb director nussle and robert atman tell us what they like and don't like about the compromise. is it time to declare victory over the financial crisis? bbt ceo kelly king and from the front lines of training dennis gartman will tell us if the battle has been won. >> what does a million get you on main street? our million home series starts you off. "squawk box" begins right now. good morning. welcome to "squawk box" welcome back. futures should be doing better. i'm with you on that a little

bit. i was thinking wow they're really going to surge this morning. >> i thought it was not going to be red arrows like this. >> because of qe there's a lot of good news in the market. here's your morning headlines. the heads of the house and senate budget committees announcing a bipartisan budget deal. there's the word again. i'm not familiar with that. the first in three years. senator patty murray and congressman paul ryan saying neither side got everything it wanted. called it clear improvement over the congressional conduct. complete absence may have had something to do with it. hilton hotels and expected to price the initial there.

it would be the largest ever hotel ipo. it will begin trading tomorrow. that is the same symbol as i said. amr is not. it was still so they had to change it. >> it's aar. >> hilton was bought by black stone in 2007. it was scary. >> now they're going to do okay. not a huge home run but you know. >> i was worried about paris. she has a sister doesn't she? >> nicki. >> i don't think they have stake in this. >> that's just a way of bringing something about the hiltons. >> he got clocked down in miami. >> who? >> their brother. >> thank you. >> that's hot.

>> thank you. the story, the ipo could be. >> that's hot. >> that's paris. she said that about the "squawk box" once. >> i think we should have her on tomorrow morning. >> you are the guy -- you had chris on yesterday. get the drawing of everybody. charlie sheen is guest host. >> business man. what are you talking about? >> we can all drink tiger blood. >> why not? >> paris hilton by the way in her own way is a business woman. >> i definitely agree. we thought about booking her in the past. we'll have her own. google opened the first two asian data centers. taiwan and singapore. google is trying to cater to fastest growing markets and consumer technology. the company does not plan to open in china because of

censorship. mastercard up 60% this year. the company announced the 83% dividend hike and $3.5 billion buy back program. on today's watch list. h and r block reported loss of 38 cents per share, one cent wider than expected. revenue came up short of estimates due to a drop in international tax preparation fees. >> striking a deal to avoid another government shutdown, joining us now the former omb director and cochair. also roger atman. you think there's good here because there's a bipartisan deal? >> yes. it restores a normal process of budget making and governing.

it puts an end to foreseeable future to shutdowns and default crisis crisises. it shows government can do something at a time most thought government couldn't. it's small as you say becky in budget terms and certainly debts of reduction. doesn't solve the long term problem overhanging the country. it's important symbolically. hopefully it will pass the house and senate. i think so. we have to wait and see. >> i hear you chuckling jim. >> evidently a thirsty man will drink about anything. i appreciate roger's optimism, but think about this for a second. three years with no agreement. there's no sole security reform, no entitlement, no medicalle reform, no tax reform. debt goes up. this is what they agreed to after three years of nothing. they agreed to spend $63 billion

more and pay for it later. wow. no wonder it's bipartisan, no wonder there's so much support coming out of this. come on. this is the best they can do after three years? >> you have to hand this to them, at least this is no government shutdown. >> that's why i say a thirsty man will drink about anything. if that's optimism, good budget process i mean come on. i understand. the good news is yes the last month they sat down together and talked. let's give them credit for that. they came out of the room after a month and after three years of nothing and decided to spend more money and pay for it later. this isn't really news from washington d.c. these days. >> actually it's the right economic policy. we're still in a weak economic environment. we see that with the real underlying 2 to 2.5% growth in gdp. spending more now, paying for it

very specifically, and this is net deficit reduction. this is additional spending on front end over two years and 85 billion cuts and fees to pay for it over ten years. it's the right approach. it provides a little, not a big, push to the economy now. when we need it. we'll pay for it at a time we don't need that hopefully when we're further her recovered. i agree with jim in the sense it's small stuff. i think it's symbolically important in moving us past the period of shutdowns and default crisises. i think we are past it. that alone is a good thing. >> i know this pushes everything a few years down the road. both are in favor of bigger idea, things to go after entitlements, things to make sure we're looking at these issues. this pushes it past the next election. with the deep divides in terms of how to fix things, will the

next election solve anything or resolve anything i should say? roger i should ask you first. >> we don't know that. the next election is 11 months away. that's a millennium in modern terms. you have to tip your hat to paul ryan and patty murray. four weeks or eight weeks ago nobody would have thought they would have agreed on anything. it's small, but at least it's an agreement to restore budget order which we haven't seen in a while. a normal schedule doing budgets. if you start down a long road, you have to start with one step. i don't know if it will lead to broader bipartisan agreement not just on bundgets but more broadly. i can't say. it's a decent step. under circumstances where nothing was working it's i think

to be applauded. >> to the extent you're frustrated jim, what does it mean for paul ryan within the the republican party? >> that's a great question. i don't know. this is going to play out in the next number -- actually in the next number of hours as he unveils this to the house of republicans at 10:0. the -- 10:00. there will be a vote possibly friday. the short term is important how does this go over. i've got to say paul and patty have done as roger said -- it's as tough an atmosphere as anyone has ever had. i guess maybe i woke up on the wrong side of the bed. all right, fine. it's good. i'll applaud it. it's a good first step. my goodness. i don't want anyone to leave this conversation thinking that anything has been resolved here.

>> you only have one side that you ever get on. last time you wanted these guys to get together so badly and were yelling so much they couldn't do anything together. now they're together and you are just as mad as last time. >> that's why you need paris hilton and charlie sheen instead of altman. >> look, i'm happy they got together. you and i both know this is nothing. to come together and decide in washington to spend more money. yes, i guess maybe pay for hit by the end of ten years sounds good to most normal people because that's how normal people act a. washington has never acted normal when it comes to spending. >> i understand your point we want to make sure we don't take the focus off the bigger picture. roger, is there a danger by

reaching small settlement for tax reforms and larger ways to meet our obligations and find ways to deal with entitlements, does that take pressure for this off you the table? becky, good question. i think we should be honest here. a month ago the chances for a bipartisan long term deficit reduction deal wasn't very good. this morning they may be 1% better but still not very good. two central issues entitlement reform on the one hand and tax reform or additional revenue on the other hand were not addressed in this. they're too difficult to address. patty murray and paul ryan said they were too difficult to address. it doesn't provide i don't think encouragement there's going to be a long term grand bargain. i think we're probably out of that business the time being. we're out of the default and shutdown business too.

>> let's hope that wins. >> like driving down a dead end street. that's taylor street. >> that's a bad impression by the way. >> thank you. >> thank you becky. >> stop singing. you're ruining it. coming up, not one but you two guest hosts today. kelly king and dennis gartman. we're going to find out if they're declaring victory over the financial crisis. how much can a million get you on main street u.s.a? you'll find out next on the second hour of "squawk box" ♪

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. welcome back to "squawk box" take a look at futures to see how things are setting up a day after the mini budget deal was reached in theory. dow though not reacting as positive as some expected.

s&p 500 might open off marginally. nasdaq down as well 2.5 points down. recent taper talk from fed eds like dennis and leaseman. is it time to embrace? it's time to get to our guests. gartman is a cnbc contributor. i need to see their book to see where they come down on all this stuff. they're always thinking shareholders and what's good for the bank? can you at least acknowledge. we've got to get back to normal some day. this country hasn't always run on fed has it? >> well no. i personally think the fed did

pay good job early on with q 1. we need had the stimulus because it was a lack of confidence in the system. i came out kind of neutral on q 2. it was a really close call. q 3 was not needed, didn't do anything at all. my judgment it's not doing anything today. unfortunately it's gotten to be a height symbolic idea that it's taken on a life of its own now. they have to be careful how they start to withdraw. the real issue is not tapering. it's when do they start raising interest rates. >> just listening to you, you would benefit more from a steeper yield curve and don't have as much mortgage. >> a banker that has the mortgage operations says we need to try lightly in terms of moving stimulation. the curve would help. >> it would definitely help. we need to remove that

artificial factor. >> this is like government gone wild. >> i tend to agree the first round in october of '08, bernanke did what he needed to do. things were come ago part. he came in and said i'm the adult in the room and forced federal reserves. it's far too long. time to take the money out. we're going to do that. >> you think it's a good idea, but do you think it's going to happen? >> sure it's going to happen. >> in a week? >> no. not next week, february meeting. >> do you think the feds are sitting in the room talking about the economy all the time, do you think they lost perspective and got the inflated view of their role in the whole global economy? i think they lost perspective. they did it once, got away with it. they did it again. this almost became qe infinity. >> living in washington is living in a fish bowl.

>> they're human aren't they? >> you hope so. >> they come to these -- i think they thought every job in the u.s. was on their shoulders. >> i'm on the federal advisory council. i meet with the fed quarterly. i don't have inside information. i have the opportunity to meet with them on a regular basis. i would say they're human, they're smart. they're more practical than a lot of people give them credit for. they got into this reluctantly. they're honestly trying to get out. >> no inflation, so why not i figure they say. >> they feel strongly with their mandate. after all it's a law. >> if i thought i could do something about that side of the mandate. i guess they take credit for 7%, close to that. >> they're taking credit for that. >> it will get to under 7% in the the future. yes, they'll probably take

credit. they shouldn't be responsible for it. >> is it due to any marginal impact? >> sure. on the unemployment rate? of course there has. to think there's not one or two tenths of a percent would be illogical. # h >> what i think will happen now is as they start to withdraw, they'll have a positive impact. in a weird way it will instill confidence in the business community. now the fed feels confident to withdraw. that will instill confidence in the business community. >> let's not forget they're not withdrawing for a long period of time. instead of going down the road at 85 miles per hour, they're going down at 80, then 75 miles per hour, then 65 miles per hour. it's a long while before they reserve from the system and their balance sheet gets smaller. it's a long time. two years away.

>> when you say you're more confident, what will change? what have you been waiting to do that you haven't done thus far? >> at the bank and more broadly. when ceos are trying to think about future investments, they really -- i know it's overworked. this word of uncertainty is the important word. they're trying to judge the the variables going forward. how can the investment be a decent return? >> the more vague it is, the lack of confidence i have. the feds say we're not quite confident yet. therefore i shouldn't feel confident. when feds remove papering, that will instill confidence. this budget deal is a big deal to me. >> when i see ben say enough, i'm going to -- >> well, we're going to be

absolutely more aggressive in the marketplace. >> thank you for coming up this morning. >> sure. >> he's here two hours. >> we have to go to commercial. "squawk box" returns right after this. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

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cable channel operator discovery communications has its eye on script net work interactive. scripps owns the food channel and discovery channel. among other net works too. discovery has approached scripps several years ago about the possible deal. they were not interested in selling at that point. we're going to check out the price of crude as well. our million home series returns. there's another twist this time around. all of these homes are located on main street in various town around the country. we'll kick off you the next half hour of "squawk box" we'll be right back. (vo) you are a business pro.

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welcome back to "squawk box"

this morning. mortgage applications rose by 1% this week. applications for new home purchases and home refinancing increased despite the 10 basis point increase in the average mortgage rate now 4.61%. now one government report on today's agenda at 2:00 p.m. eastern time. the treasury reports the november budget deficit. looking for $142 billion for the month. home depot holding the analyst and investor conference today telling investors it will be reaching the long term operating margin and return on invested capital targets by end of fiscal 2015, a year earlier than it originally planned. also sticking to prior sells and earning forecast. what more could you the market want? let's get to our trading brock and find out.

we are joined with our guest host dennis gartman. andrew came in and asked the question why aren't the markets doing better? you think with the promise of the government not shutting down would boost numbers? >> i would not. as soon as i saw the agreement on what numbers were, i thought are you kidding me? ten years of paying out? no. i don't think the stock market will take that well at all. it's not. it's ho humming it. that's probably the right attitude. >> how much is because we've been anticipating this mini deal for weeks here? >> the market would have been surprised if nothing had come and out sold off dramatically. if there had been no agreement, things had gone into the dinger. the fact you came out with an agreement. >> they came to agreement and reached something that has to be passed by the house and senate. they were able to come up with a deal before we get to the

deadline time. from crisis to crisis. >> when i read last night i thought isn't that nice? what's the term? bipartisan? >> yeah. >> it was a bipartisan agreement. >> that's the second official way to pronounce it. >> what do you think are driving this point? >> we see job creation pick up the last couple of months. that brought oil back to where it should be around $100. right now that's where we're at. hard to see it much higher. we're waiting for the next big move in the economy to make prices jump once more. >> the next big move, what else

do you need to see in numbers to think oil will go up? >> a third jump over the expectations, that would certainly push oil over $100. if we saw in libya or iran or egypt that's going to push over. today we saw the report saying they expect the demand to be better than they thought a few months ago. everybody is teaching. >> demand is driving the focus not the excess supply that we discovered here in the united states. this is back to demand at this point? >> it is. it's not just united states demand. it's international demand. u.s. is the exporter now. any excess we have, we're refining and sending out. it's about demand now. >> let's make sure for the public they understand we're not exporting crude. we're exporting products. it's a bizarre rule. we are exporting products.

we're going to continue more and more. >> if the economy continues to improve like this, if that's the thing driving oil prices you think it would drive prices too. >> the stock market all things being equal, stock market has been moving up and likely to continue to do that. not an aggressive pace, not the pace we've seen the past year. probably two 2 to 3% over the last year. >> there was a call yesterday. i forget which house did it. you could see gains in the first part of the year because things have been cleared off the table. >> let's hope. i have my doubts. i'm lone stocks. i like to think they'll continue to go up. >> when you get 2% to 3%, does

that include major correction? >> there will be 5 or 10% correction along the way. probably not much more than that. i wouldn't be surprised it's relatively light volume. bears will be out in great crowds. market moves to new highs. >> the other thing i've been watch as good heating oil. there's been so much snow around the country. that's a natural expected thing. what other things are you working in the markets? >> heated oil is a substitute for diesel fuel. that's an export sending diesel to europe and latin america dealing with the world cup this coming year and olympics in 2016. you have a lot going on for heated oil. it's going to keep prices high and maybe even higher next year. >> thank you for joining us today. we'll have more from dennis throughout the show. >> thank you. putting down my picks. coming up, hold on a second.

i get all choked up. >> what's the can -- let her sing this. >> probably not going to be her. house and senate negotiators unveiling the agreement to defund federal agencies in 2013. we'll get reaction from ceo and former oklahoma governor frank kaeting. >> i'd give to john mayor before i give to her. >> you would. you think he's sexy or something? john mayor? >> he used to go out with her. >> oh. that's why i give it to her. i thought you wanted to run in the high school screaming down the halls. you know who it might be? miley. >> it's not going to be miley. >> it's going to be snowden.

>> i think the pope. >> it's not john mayor, you or me. dennis gartman maybe. we'll get one of the associated editors and find out. it isn't any of us and is not taylor swift. "squawk box" will be right back. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. but with less energy, moodiness, and a low sex drive,y first. i saw my doctor.

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welcome back to "squawk box" the bipartisan budget commission striking a deal to avoid another government shutdown. joining us to talk about that and more, president, ceo of the american banker association, former governor of oklahoma. good morning to you. >> help us here understand one thing. i came in this morning before the show thinking markets were off to the races today given we got a budget deal even though it's a mini deal at least by the indications of futures. i was clearly wrong. why? >> andrew, i think everyone thinking whatever comes out of washington is probably a myth and there's no reality and substance to what is done here which is regrettable.

i was on the bipartisan panel. in the year 2025, every % of federal tax revenue will go. this is frightening. to have the two party, democrats and republicans who brought us here to this $17 trillion debt, to have them sit down, share each other's phrase books if you will, and talk about going forward. at least for foreseeable near term, we're not going to default on debt or shut down the government. that's a positive the fact they have a process. that's a positive. i think probably the big picture a lot of people think they're playing games again. the fundamentals are not addressed. >> we're now day two post the vocal rule. as the head of the american bankers association have pushed back on that rule. give us perspective.

you read the rule and studied it the past 24 hours. what's your verdict? >> the community banks and 90% of our members are a billion or less in assets. the community banks are facing 11,000 pages proposed and final dot frank rules. now it's 12,000 pages of proposed and final rules. for those community banks with 35 employee, can they continue to hedge agriculture for example and energy banks? i think so. that's certainly good news. for the larger institution, can they market make? i think the answer is yes as well. again, it's a whole new very substantial regulatory regimen on the backs of the final institutions of the united states that have to have the bottom line to compete a broad and in the united states. that's worrisome. it's worked through. we have two years. i think good things will happen hopefully. obviously there's a lot of warning flags in the sky this

morning. >> can you say cat goegory wise you're going to try and block this? >> i don't know about that. both parties work hit through and get both parties together to see if this can work. it's moses leading us to the promised land. every option is on the line to make it work. >> what's your take on this? >> kelly king. hope you're having a good morning. don't you think this is actually overall a positive outcome? it certainly could have been a lot worse. as i understand it, while still have you new, banks can make a market for trading for clients, still hedge appropriately, not gamble but hedge portfolios appropriately. there are a lot of details to be

worked out. it seems this is a workable solution. >> ronald reagan i worked for trust but verify. that's the attitude of a lot this morning. hopefully certainly that the issues you talk about, hedging for the purpose of satisfying client needs, market making can be done. this is another large regimen. the question i ask is how come the regulators aren't doing this as poed to having a new significant body of law? now this is a basketball team five regulators putting together this. each can interpret in its own way. i'm cautiously optimistic now this is part of the law, the banking community will get around it and behind it and make it work. >> we'll see. >> the folks making the biggest stink for the past several years are the big banks. you have sort of a tough job.

you represent the big banks and smaller banks. how much bidding did you feel you had to do on behalf of big banks perhaps at the expense of bigger banks? >> there's one bank industry in america. they can obviously compete a broad and make us rich. it's hugely important to the united states. smaller, middle size banks obviously serve here. there's a balancing act. what we want to do is make sure banks are healthy. recklessness and outrageous behavior especially when you have insured deposits by the u.s. government. that needs to be carefully watched. i'm hoping this will work out. we'll trust but verify. we have two years to see if it needs to be massaged. if there are changes to be made, hopefully they will be.

>> pope francis is time magazine person of the year. we've been speculating. >> i was wrong. i thought edward snowden. >> what do you think about the changes? >> i think it's a pretty good name. francis is my formal name. i think he's wonderful. he really is a man of great humility, great humanity, great spirituality. for those of us, the world community no matter what our faith we're excited about him. i think he's saying and doing the right things. obviously walking in christ. >> some people said he attacked capitalism. there's been a big debate in the past week. do you have a take on that? >> in fairness to him, his message has been the christian and catholic message for years. let's focus on success and

taking care of the less fortunate. let's don't think that material things are the only things out there that should be acquired. >> right. >> it depends on how you take it, half empty or half full way. if you sat down with the pope, i guarantee he would say more people have been lifted out of poverty and lives have been improved in all ways in terms of living longer and living well when you're a live from capitalism. catholic church is about the poor sense jesus founded it. >> i think we need to be fair about this. some people want to draw the distinction there's faith and capitalism and they're opposite of each other. there's no distinction. >> you can argue capitalism is moral by far. >> we're creating jobs. that makes it better for poor. maybe the pope needs a broader understanding of how that works

together. >> mark has come in. he used to have nuns who were part of the people who were being shareholders. they understood well. they said no money no mission. they get it. you need profits to come back through. >> we had a conversation about them last week. >> you went to a catholic high school? >> yes. i told you that 12 times. i went there the last year and a half. >> did you lapse? >> no. >> i lapsed. not back to catholic. >> before that, yeah. >> governor, thank you for joining us. >> time magazine person of the year. we're looking forward to talking to you again.

i'm going to leave this to becky while you do this. i'll do this. still to come, black rocks, chief investment officer going to join us with his outlook for 2014 what the markets are facing in the the coming weeks. up next, the battle for main street supremacy. our matchup of million homes is next. only one move as head. we're back in just a moment. becky explains her religious faith to joe. we're back in a moment. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. is caused by people looking fore traffic parking.y

that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start-up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge.

welcome back everybody. cnbc popular home competition is back. we're showing you what a million bucks can buy you on main street. we sent investors to check out million homes. two $1 million homes go head to head. one moves forward. in the first round we have the cozy cottage aginst the mammoth manor. let's take a look. >> living on main street. this gated 2.5 acre proper$2.5 features the million water views from the highest point of this country's coastline from maine to mexico. >> this is a history buff's dream built around 1850, how has two centuries of stories. sitting on 2.3 acres facing main street. you get five outbuildings. >> once home to a renowned

writer, this offers four work fireplace, kitchen features granite counter tops and storage. >> of the 7,000 square feet in this home, i won't lie the kitchen is your renovation. it's a chance to blend old with new using this original bread oven as your centerpiece. >> this cottage has three bed rooms and two baths. the downstairs bedroom has a sitting hear, bathroom. up the cherry stair way, you'll find two more spacious bedrooms. >> upstairs 11 potential bedrooms perfect for a large family or b and b. this is where your stories start. up in the attic they used to hide slaves traveling north on the underground railroad. >> it's about the magnificent water views. take 74 steps to your own

private platform to enjoy the sunset. this can be yours for $995,000. >> the real selling point is the grand level with 13 foot ceilings and stencils that match the stained glass should you get lost, ring for the servants. $965,000. >> i'm left speechless. >> i think the better deal is the mammoth manor ultimately. that's where the value is. the other place is what i would buy myself. i like the cottage. why any of this is i have no idea. >> joining us to reveal the winner, dolly. >> thank you for having me. i wouldn't have guessed either. the cozy cottage is in alabama. i've never heard of montrose,

alabama. i did research. it's a beautiful place near the gulf of mexico, beautiful beaches. almost a hamptons type of place. the problem with that property it has a fatal flaw. even though it's almost three acre property, the house a buts the house next door. you can look right in. everyone coming to this house is saying i'm tearing it down. then the value suddenly it's land value versus house value play. it would have been great. diane n diane's property in camden is an amazing house. has potential uses as a bed and breakfast, wonderful compound. i see a chinese buyer in the future. >> the alabama thing killed it for you. >> that killed it for you didn't it?

you're back to the mansion. >> who we giving it to? >> we're definitely giving to your winner which is the mamm h mammoth. >> this is the value plan. the price is right. >> this is all about money right? >> there you have it. the million mammoth manor wins round one. let us know if you agree. tweet using #milliondollarhome. later she's crowning the top main street home during closing bell. the next round is mammoth manor and -- >> a new contender. we've got russ joining us at top of the hour. time person of the year revealed, the pope. find out what went into this year's pick. "squawk box" comes back right after this. every day we're working to be an even better company -

and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.

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the mini grand bargain. >> are you ready for a santa claus rally? a brighter jobs picture and clearer picture of when the feds could taper, black hawk ceo tells us where to put money to work now. times person of the year revealed. we get an inside look at the manage editor as the third hour of "squawk box" begins right now. >> welcome back to "squawk box" here on cnbc. this is like that movie with kevin kline. my little finger is moving. i don't dance, but i really want to.

i'm joe kernen along with becky quick, andrew and taylor swift and dennis gartman. she's not here. she's here in spirit. dennis is moving. and kelly king. nobody gets down like a banker. ceo of bbt corporate. >> when the music is playing, you've got to keep going. >> futueutures this hour are indicated up. this guy was a horrible boyfriend -- it wasn't john mayor. she bought a house near the kennedys, remember? to date one of them. >> she was 19. >> she was not person of the year neither was miley cyrus.

let's look at stocks to watch this morning as miley plays us you out for a little bit here. >> warehouse retailer costco missed estimates 96 cents per share. groupon upgraded to outperform market perform. wells says groupon is grabbing the local market. joy global 1% below estimates. the mining equipment gave a below analyst forecast as the company struggles to cust cost and deals with oversupply of commodities. watching that stock off 5%. we'll sigh where that starts the day. the bipartisan. now they put a dash in it now so i can get it right. led by paul ryan and patty

murr murray. joining us republican from oklahoma. congressman, when we had hoyer on yesterday, i'm not sure -- maybe we shouldn't have taken him so seriously. he thought there might be opposition on both sides. people on his side of the party and more conservative members of congress -- we're assuming this is a done deal. there's opposition on both sides of the political spectrum. there's a lot to be happy with. the secures of sequester cuts, redistribution of that money. all those are good things. they came at costs. both sides have things to be disappointed about. safe vote in politics is always no vote. you'll see people take that

posture. other people frankly just want something bigger. i think in this environment that probably wasn't obtainable. i understand their disappointment. >> i used to say about the guy hitting his head against the wall, it fits circumstances because it feels so good when you stop trying. it does. it's so much better. i was shocked. that's the kind of position we've all been put in now after the last couple of years or so. i almost rejoice at this that at least we won't have to -- at least it will be running. we can focus on arguing about other things rather than keeping the government up and running and debt ceiling. we've learned that we've got to accept what we can take with what it will give us right? i think so. the alternative to this is another government shutdown january are 15th.

we all know that's just not ever going to result in something good for the country or something politically good frankly for folks that provoke it. i applaud paul ryan and patty murray getting something modest, achievable and obtainable and generally bipartisan. maybe we can get to the big drivers of our debt which at the end of the day are medicare, social security and medicaid. >> and obama care now. >> exactly. if we can repeal it, do it in a heartbeat. >> let's say we don't and it becomes entitlement that it's probably going to be. i saw someone with the deductibles are going to be on the low remembpremium plans. >> a lot of 5,000, 6,000 and 12,000 a year deductibles are

subsidized. i don't know how we ever addressed long term entitleme s entitlements. we're split as a country. people that want them get them. >> there's ways to do it. you have to come together. we addressed associate in 1983. there's time to do it again. politically it's not that easy. it's easy in terms of math. it's something literally people of good will with risks sit down and figure out what needs to be done. medicare and medicaid much tougher. >> don't you think the big news is we made a step forward. we have gone so far from trust and communication working together. i am frankly excited about this. not because the particulars of the deal are not much. it's a huge deal that people are coming together beginning to

think about working together. we have to learn to compromise. i see this as a baby step towards a giant step down the road in terms of dealing with the tough issues. how do you feel? >> i feel very much the same way. look, any time you've been moving in the wrong direction and i think we have for a long time when you finally stop and turn around and take a step back, you'd like to go furtherer and recover loss ground. couldn't happen without paul ryan, patty murray and people willing to accept less than they would like. understand there's a limit. if you're a republican, we don't control the senate. if you're a democrat, you're not going to get something through the house we disagree with. that narrows the scope of what's possible. i think ryan and murray understood that and operated accordingly and produced something. the rest of us would follow their example i think we could make more steps in the right

direction. >> congressman, we're going to take your word on this. we're going to consider it passed in law. hopefully we'll have it chl. we appreciate your time this morning. >> you live there too right? >> that was my senator. he was my u.s. attorney. then he came back to congress. >> how many schools did you go to? >> i went to public school until my last year and a half. >> lived in oklahoma? >> yep. >> broken arrow. >> indiana. >> colorado, california, new jersey. >> i never lived in california. that was you. you're mixing mine with yours. >> it's hard. >> things start molding together. >> those are the five places i've lived. that's it. when we come back, time magazine revealing the person of the year. the magazine managing editor will join us to talk about the choice, pope francis. and the deal lifting the burden off the markets.

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welcome back. relatives, heads of states and members of the public paying respects to nelson mandela, a

casket carrying mandela's body arrived with the military honor guard at the union buildings in pretoria, placed in the theater where the anti-apartheid was sworn in as south africa's first black president. he could have served until now if he wanted. he didn't want to. pretty amazing story all in all. mandela's body will lie in state three days before a burial on sunday. >> okay now we are about to talk about the pope. time magazine unveiling the person of the year this morning. it was the pope. joining us now to talk from new york, nancy gibbs,s the time magazine editor. good morning. >> good morning. >> i thought it was edward snowden. how did you get there? >> it was a close call between the two. people are fascinated by the

conversations the very different men have brought center stage n. snow den's case it's the ongoing # argument between privacy and security and how much the government should know we're doing at all times. in the case of the pope, it's a fundment question about inequality, mercy what we owe to the least among us as he would put us. we felt that conversation is so crucial in so many part of the world that pope francis ended up being our pick. >> we listed the final five. was it true the final two were edward snowden and the pope? >> yes, that's correct. >> ted cruz was number five as a symbol of our divided politics now. and the president said the

leader had to go but he's still there. that's staying power. >> the president last year's example of divide politics nancy? >> certainly is. interestingly all figures to some extent are in different ways representative of both division and disruption. i'm struck of five, four of them most had never heard of a year ago. that tells you how quick power can be turned on and off now. >> could we all have given it to -- we could have all twerked. you didn't think of miley did you? i think maybe you did. >> we did because she among other things came in third among millions of people polled in our online poll. she speaks to the fact -- yes, i do not see her person of the year. she speaks to the fact power is

not always political or economic. it can be cultural. >> how contentious is it in the room when you are trying to figure out the final decision? >> it's an interesting conversation who moved the needle, who is changing our events and lives. >> do you have the final verdict? is it a vote? what happens? >> ultimately it's my decision but an awful lot of input goes in it. >> when you say edward snowden was number two. if you had voted in the room, would the pope been number one? >> we interviewed edward snowden by e -mail and got to hear why e did what he did. there's no question snowden is an important figure. the difference between one man that sits on the thrown of st. peters running the oldest

constitution, it's fascinating that's where we end up this year. >> it's interesting times person of the year is not necessarily somebody you're endorsing or that's a force for good or force for change. when i saw the list of five finalists, i was hoping it was not going to be assad or snowden. >> there have been years. there was times there was no way not to name hitler. there's years the bad guy is sometimes the obvious choice. sometimes the person we name, people think is a good or bad guy. >> did you name bin laden that year? >> we did not. we argued about whether we could. >> if it just comes to how torn people are and -- >> i'm not endorsing snowden.

the reason it was interesting to me was given the conversation created here in the u.s. and globally -- the pope a year from here will be in that job a while. >> i made a speech in new orleans not long ago. they had a poll. how much people in the room think snowden is a hero? 98% of the people in the room said he was. me and krauthammer said you've got to be kidding me? >> this magazine typically sells. does it matter who's on the cover to sell? will the pope sell a lot more issue that happens snowden? i think so. snowden has a passionate following of people that think he's a hero and people also think he's a trader. i think the pope has captured people's imagination in ways

that are surprising that we have not seen as a newcomer like he is. >> we talked to you about the pope's comments last week relating to capitalism, given we're a business net work. perhaps a disconnect or a relationship or no relationship between his views and -- this became a debate. rush limbaugh came out talking about this as well. >> one thing he's been careful about is he's not saying anything about the duty to the poor. this is coming directly from the gospel. people uncomfortable with his message towards the duty of the poor, there's an awful lot of history behind weather. >> are you catholic? that sounded like someone that -- that's exactly what i was thinking. i've been hearing that. i went to mass everyday in first grade. it was latin. they weren't facing me when they

were doing all the -- >> were you prevatican too? >> any time people use the word inequality. people believe in capitalism and believe you can't start thinking like that. that's become what this is about. >> it's where we are todare tods of raising the quality of life. inequality is less than what was. >> people are living greater lives than ever before. >> to think now inequality is at a greater point than the last 300 years is stupid. >> capitalists believe in equal opportunity. >> the poor have always been -- look it's definitely gotten better around the world. look at china. look at lives raised. >> as the tide has lifted it

hasn't ultimately. >> it hasn't but shall. >> look at mandela's life. we've been talking a lot about him. he became a capitalist but at the same time, arguably between the time he became president and now, while definitely listed all votes there's greater inequality in south africa today than back then. >> of course there is. at the same time he's created 10,000 jobs in south africa. let's give him credit for that. there's greater inequality but everybody's boat has been lifted. >> you can do numbers about the average per capita gdp. for 10,000 years it was at like $100 a year in this country it a grew to 50,000. in china it was like -- nancy we

lost you. >> the other issue he raises is one of transparency. he's the first pope to release financial records from the vatican. u.s. treasury officials say vatican bank has been corrupted. part is about his message, mercy and gospels. some is practical institution reform around vatican finances. >> a lot of catholics look at what we think about the last 50 years. there are big mess ups. there were. that needs to be addressed. it was inexcusable it happened. they need to bring a lot of people back. i think he's trying to do that. >> nancy, thank you. congratulations on the issue. we'll look for it. it's openness of the church. catholics like the pope better than they like the catholic church at this point. that tells you something. >> i thought the point she made,

five names were unknown to almost everybody a year ago. that was fascinating. >> that is true. when we come back,ingi earl morning and why she says desk tops are not dead. we'll be back on "squawk box" some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. (announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time.

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this morning. meg whitman speaking exclusive willy at the conference in barcelona. whitman says the company is moving around the strategy. >> we're make a lot of progress as we go forward. we are as you said two years into a five year turn around. obviously we have to accelerate revenue growth and continue to innovate. you can see at discover the invasion engine is now a live and well at hp. we're making real progress. turn around is on track. a lot of heavy lifting ahead. >> company shares up nearly 90% this year. put in place by whitman when she took over two years ago. coming up, more on the budget deal reached in washington. from the board room to classroom. the president of high point university and chairman of the great harvest bread company will join us in a little bit. tradition returns to

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welcome back to "squawk box" everybody. let's look at stocks we'll be watching in today's trading. home depot says it will reach targets a year earlier than they planned. it's now raised targets for 2015. home depot gives more details at the investment conference later today. gun maker smith and wes son reported 28 cents a share. it saw increased revenue and higher profit margins compared to a year earlier. medical lab operator cut 2013 guidance giving outlook for next year falling below what the street was expecting. down over 7 1/2%. slower demand as well as the uncertain health care environment. that could have been obviously to anybody. will a fed taper derail the

market? let's hear from one of our own, the global chief investment strategist. great to have you this morning. >> we're trying to wrap up 2013 and look ahead to 2014. you're in charge of trying to fig you're out why people should be outing their money. is the stock marketplace to go for 2014 or would you look at other areas? >> i think it is the stock market. obviously not the only place. there are other areas we're emphasizes. when you look at equitieequitiet year in 2014. stocks are no long eer cheap. they look to offer returns over the long term. people had a great run in the u.s. u.s. stocks can go higher. for 2014 this is probably a good time to take advantage of better

evaluations outside the united states where people are still underweight. >> where many are still underweight, if somebody invested largely in the u.s. in the stock market here, would you tell them to sell those and put them in overseas stock market or tell them to allocate new money? >> little bit of both. we get the view some are overweight in the u.s. look at europe, emerging markets. the reality is the u.s. market still looks reasonably price. there are still opportunities. on a relative evaluation basis, if i look at u.s., it's tradie 40% premium. there are bigger bargains out of the u.s. >> if you were talking about the fed potentially tapering. more likely first quarter of next year. if the fed taper, the u.s.

market might be okay at this point. it might be baked in. if you look at emerging markets, i'm not sure that's the case. >> that's fair. >> your point is definitely longer term one. we saw you the taper in the spring. it's likely to have similar effect. there are a couple of things to think about. all emerging markets are not equal. many in northern in asia, long term reserves. thinking about europe, one of the advantages is that a tape as good -- a tapering is likely to lead to monetary conditions. weakening euro will help. >> i was surprised mcdonald, only place they underperformed is europe. is that tells me people in

europe really need a bargain? >> that's a fair question. it suggests europe is recovering. it's going to be an inspiring recovery. not going back to fast growth soon. europe is getting better. we're seeing improvements even in places like spain. deficit to current account. surplus, seeing some improvement there. we think 2014 will be better. >> this is kelly king. it seems to me one of the questions investors raise we've had a good market this year f. does that necessarily mean it's going to drop way off. it seems to me with renewals, we could catch up. that doesn't conclude the solid in 2014. what do you think about that?

>> i don't think there is any major impetment other than potentially more dramatic rate in markets expecting to prevent the u.s. from posting gains in 2014. what i'm trying to emphasize is not that there's not an absolute opportunity in the u.s. but the relative opportunities may be better outside the u.s. the advantage in the u.s. is that while evaluations are probably a bit stretched, the fundamentals are going to look better next year. we expect growth to expand and rates to stay low. >> it's not a great environment for gold though. >> it's not a great environment for gold. gold has two head winds. first of which we think inflation remains low. in europe and japan flirting with disinflation. in an environment when inflation is low, people are less interested in hedges like gold or tips.

the second is that the backup in rates so far has been on the real rate side. we expect that to continue in 2014. rising real rates are a head wind for gold. there's an opportunity cost to holding the asset to produce no income. >> what about the bond market, russ? >> bonds i think we're going to still see modest back up in rates in 2014. not a melt up in rates. you know as well as i, the truth issue there are few bargains in the bond market now. we've had years of purchases. what you're looking at is relative value on the credit side. investors need to adopt more flexible mandates that have the ability to raise and lower duration as conditions change. this is a different world. for 30 years falling rates were a tail wind. we're not going to enjoy that over the next few years. >> a simple question that gets asked all the time. where is the ten year as far as

yield is concerned. >> our best guess is 50 basis points higher than today. we expect yields to back up as the fed begins to taper. some things keep yield down. the short end of the curve is anchored a long period of time. finally demographics play a role. all else equal in the environment where the population is aging. that suggests real interest rates are a bit lower than they were in the previous decades. >> it's great talking to you. appreciate your time. >> thanks again. happy holidays. >> we do too. we know in guy in rhode island. famous dancing cop is back on the job for the holiday season. officer tony la pore, a holiday tradition 30 years in downtown providence. he started doing these dance moves when he was still on the force directing traffic back in

1984. people like it. it is a mugmusing to drivers. he retired, 66 years old now. he returns to the intersection just for the holiday to direct traffic. it says here it's a leg shimmy and spin. when you do the headlines over there in the morning with your jacket on, what would it take for you to do headlines while doing this? >> i'll pay for that. >> i'll jump in. >> come on. you could do it. >> we'll have a discussion about that. thanks to the robot. sprinkler, the shopping cart. we could do it together. >> how much would the viewers pay for that not to happen.

>> if we decide to do this, one of us needs to twerk. you stand there. >> i would not pay for. that. >> i cannot do that. >> how does she get out of this? >> she's nice. >> it would be better for viewers if it was you. maybe not. >> i don't think anybody needs to see that. any way. we're going inside the board room and talk leadership with the president of high point university and much more from dennis gartman and kelly king. which of you would twerk and which wouldn't? >> i'm off. >> "squawk box" will be right back.

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energy lives here. welcome back to "squawk box" this morning. 24 hours after the budget deal is sort of reached, dow opens up higher. s&p 500 a point and say half and nasdaq two points. it's getting better from where

we started the day. >> let us get more reaction to the budget deal. president of high point university joins us now. he's also the chairman of the great harvest bread company he started with just $50 in his pocket. serves on the board of well known companies like bbt and lazy boy corporation. love a lady boy and dots. i'd like a lazy boy with a bunch of dots in the armchair. good morning to you. >> i was thinking again that we called it a mini deal. it's called a mini grand bargain. this is a deal. i think we need to at this point count our blessings and get it done. and then try to do something

with immigration instead of just trying to keep the government rung. >> listen, the american dream is a live and well. we've got to work together, collaborate together. most importantly we've got to get certainly back into the economy so small and large business knows which direction they're going. we've got to follow the vision and strategy. i'm all for good things when they come in small packages. >> the people that don't think the american dream is a live -- i understand. i site some of the things. it used to be somebody would get out of college, they could look forward to a company hiring them. they could look forward to a long career trying to raise a family, climb the ladder, benefit, retirement. for some reason we're questioning whether that is still a waiting college grads if they can pay back loans.

there are people that argue that the american dream is a live. >> an argument is a good thing. that makes america so great. let me put this to you my friend, joe. i believe in those that work hard and smart enough. for college graduates, they must receive a ho listic education. you can download more information by noontime than you can use in a lifetime. the gathering process is grounded on wisdom and education at its best. that means preparing yourself not for the world as know it today but the world as it's going to be. . i call it paint by numbers american dream. go to college, check the box. get a job, check the box. get a house in the suburbs, check the box.

it all sort of works out. that is not a live the way it used to be. >> it is a live. it's very much a live for those people that chart the right courses. listen, i seeteach 700 freshman a time in two sections. i tell them, if i can make it, you can make it here's the deal. when you go through college, have the learning. if you don't get internship and don't prepare yourself in the magical way and say i know what the world expects and bring something of value -- >> right, you're going to try. you can find millions of exactly what you described, millions in oklahoma, indiana -- >> it's much harder than it used to be. >> he mentioned internships. i am in this job because i started internship at 18 years old. it's hard to get them these

days. >> that's the new york central views of things. >> good morning. this is kelly. you're a respectful international speaker. you went to be president of the you high point university. a sleepy struggling small college and now one of the most exciting universities in the country. tell them how you did that. >> we believed you must provide value. the trouble is you can't just give value. you've got to interpret value. we asked ourselves a simple question. what do young people need when they go to college? what do parents expect when they send children to college? >> they want to grow in maturity, start a business, believe in something and make this world a better place. we ask the next question, how do you create the college environment with learning, value based living that says if you do these things on your own way

with your own personality, you can prepare yourself to be in the situation people want you on their team. yes the economy is more demanding than ever. in the last seven or eight years, high point university has tripled the size and self funded 86% of that. how can we do that? are we special or some how have a magic pill? i don't think so. at the end of the day it's what you believe and have the outcomes of what you expect. that's what we do and tell students on our campus. it may be more difficult and competitive, but it doesn't mean it's not positive. >> how important is vision at the individual and corporate level? i know you had a broad vision for the university. how important is it for individuals and leaders to have a clear vision of the future? >> well, clarity of vision is

where all things started. you can't have a solid strategy about life if you don't have the vision. the vision has to be win/win vision. what i can do to my life but bring to my environment and find myself. our people at high point when they graduate they tend to get jobs. 86% of them find a job within months or go to graduate school and pursue the careers they want. it's important to have hero, models and mentors that can help them grow and coach them in directions that say the word impossible doesn't exist. add a poafter the letter i. >> i think it's a shining city on the hill the next morning. thanks. i think it's new york andrew. i do. i think it's manhattan.

it's the income in equality and what you see everyday. you've got the social x-rays and the rich people. the rest of the country is -- >> it's different there. >> you need to get out. coming up, the mini grand bargain in washington. is it really good news for the economy and market? jim cramer gives us his take on the budget deal. [ 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. ♪ ♪ i wanna spread a little love this year ♪

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>> two years without arguments. you like this? >> i think sometimes we see things done out of washington and then they unravel. i'm skeptical. if i were senator cruz, i would fight things tooth and nail. if i was a member of the house,

i would think this was an abomination. how could they let this happen? it's the opposite of what they like. >> steny yesterday said people on his side of the aisle didn't like it either. >> o'connell is up for election. how can boehner get it through? i have come to believe when you hear there's a deal, a grand bargain, anything good in washington, that's the beginning of what turns out to be a very rancorous process and you wish you had never listened to the original story. >> you can siphon off enough of the middle of both parties to get it done. when we had the problems earlier, they weren't even going to bring it up to a vote where the democrats could go along with the 40, 50 -- 80 republicans. i think there's enough this time if you get enough -- >> maybe but it doesn't cover the unemployment agreement. i just think this is an election year and i think it's great that congressman ryan advanced this but i still just feel like something must be up with this.

if we really had washington off the front pages as these stories would indicate to you, the future would be through the roof. >> what if they do sign and it doesn't go up? then you would think it was already in the markets, right? >> i guess so, or this has really just changed the sequester. i don't know. i just find that the idea that everything is fine here makes me -- makes me feel like a lot of the other times that i've been lulled into thinking washington's done. it's not been the way of washington. >> who did you -- were you happy with -- did you have your own time person of the year? i guess charlie sheehan, it's never going to happen for him. >> no. look, i think this pope's a great man. candidly, i just don't think that "time" impact is like it used to. i just don't. for us it should be volcker, i

guess, as man of the year. >> all right. or bernanke. thanks, jim. and for real power, person of the year, janet yellen maybe. >> she could get it next year. i wouldn't be surprised if she's in the top five list next year. >> coming up, the stock of the day. plus what you need to be watching when the market opens on wall street. dennis will give us his trade of the day. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here.

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stock of the day, mastercard, it did raise dividends and nous aannounce a billion stock buyback program. >> let's go to our guest host. trade of the day? >> sell yen, buy gold, sell yen buy the nikkei -- >> if we're recovering, why not short the euro? >> because the euro's been going up. >> 138? should go to par.

>> should go to under par. i think it egregiously overpriced but you can't sell it yet because it going up. >> what would change your mind about japan? >> nothing. i'm sorry, it's doomed. it has no choice but to continue to expand reserves far more aggressively than we would ever think of doing and they're already doing it. >> kelly, looking at the state of the banks at this point, do you think it fair to say we are past all of these recession situations, we gotten through it or do you think there are things that are going to come back. >> i think it's time to declare the crisis is over. there are a few rules to be developed yet, some explanations to be put out but it's substantially done. i think it's time to move on. the times at life corporately and in life to pivot, this is a time to pivot. there's so much positive going on today, i think we need to get back to the basics and folks on the facts that in this country

we still have freedom, we have equal opportunity. if we get back to a good fundamental faith and god -- >> i'm sorry? >> never mind. people think you ought to join the fed. >> i'm happy being a banker. >> thank you, guys. great show. join us tomorrow. "squawk on the street" begins right now. good wednesday morning, welcome to "squawk on the street." i'm call quintanilla with jim cramer and david faber at the new york stock exchange. costco earnings, home depot investors day, a hilton ipo pricing tonight. 10-year yield is just a touch about 2.8 and europe is mostly positive. we did have germany's cpi mostly in