good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. less than two weeks of christmas shopping left. how will this impact the retail sales? we have a lineup ready to answer that question. we have steve tanger, brendan hoffman, mipdy grossman. they're going to tell us if golf equipment sales are making the cut this season. our top story this morning is instead of embracing the taper, the markets are showing signs of fear. investors are locking in profits before the end of the year, as well. the dow falling another 100 points to close at a one-month low yesterday. right now, the index is on pace for its worst week since august. the s&p 500 had its worst

three-day losing streak in nearly four months. that index is down nearly 2% in the last three sessions, closing yesterday at 1775. the s&p 500 is up about 27% year-to-date. we are going to talk more about the fed markets. that's coming up at 8:30 eastern time. the producer price index for november will be released at 8:30 a.m. eastern time. congress are expecting a reading that shows an unchanged reading. right now, take a look at the futures. at this point, dow futures are indicated up higher, up about 47 points. s&p futures up by 7 points. right now, let's get over to andrew with more of today's top corporate stories. andrew. >> we've got a lot of news for you, the first one being that directv is now exploring the idea of an online video service. the company plans to target what

they call price sensitive young people. other commerce have dropped their pay tv service. directv and the nfl have agreed to a framework to renew the popular sunday ticket pass. also, coca-cola saying it's going to split its north american business into two operating units. this is part of the beverage giant's brand to return to a franchise brand. companies will be called coca-cola north america and coca cola refreshments. you build it up, you destroy it, you build it up again. finally, boeing planning to cut 1200 research jobs in washington state. not good for the union movement. the move will reduce the company's reliance on engineers in the seattle area. boeing currently considering proposals to move 777x wing development outside of the state to avoid union conflicts. >> i'm not going to take this

cord cutting crap watching internet stuff on some small screen. >> you don't have to watch it on a small screen. >> i don't care. i'm doubling my big screen. i'm doubling the size and the number and i'm getting xfinity on every one of them. that's what i'm doing. this is ridiculous, cord cutting. >> you can't -- >> i'm going to. >> because it doesn't exist. >> there's bigger ones than 50 inches. >> you have a 45 inch one right now. >> i do. >> you don't have one that's only 45 inches, do you? >> 50. >> what is your biggest tv, joe? >> 50, i think. i'm getting bigger and i'm doubling the number and i'm getting double xfinity. double sequence xfinity on all of them. >> and a triple play for $99. >> get the deal on that. and let's talk. what time is liesman on today? he has some all american thing going on, doesn't he? >> he does. he read his story last night. i read that story. but as many people when he went out, his neck is about this long on that taper thing.

>> i know, i know. >> but you know who is telling him he's right? the market is telling him he's right. but if it turns out that it was right, what happened? did the market listen to liesman or did the market already know and it was confirming that liesman right right? >> it's really moved. >> it did. as you said eloquently and with great feeling, let's not get -- you know, it's 200 points. we're at 15, 7 on the dow. 15,739. it's down from 15,000. but when you look at these small daily moves, you're trying to interpret those, trimmers like that make a difference. >> but it doesn't mean the taper is going to all of a sudden kill everything. although a lot of things have aligned, you know, now wire not worried about the budget any more. now we are going to start tapering. so all these things that -- >> economic numbers have actually -- >> yeah, that, too. so these things, we were going up when -- >> infinity. >> we were going up when the xx opposite, as you like to say, we

were going up as the exact opposite of these things were happening. does it mean that there's a little bit of a breather here, mickey direction lerexler. what is the name of his suits? >> i made a suit called the ludlow suit. >> and the only thing low about the suit is the price, ludlow. >> no, very reasonable. >>. >> i went with the old stand by when i went. the zegna. >> the zegna. >> got me a zegna. got me a zegma. okay. united technologies is the stock we're going to watch today. the dow component provided weaker than expected guidance for 2014. profits as well as revenue. the company expecting a sales reduction from its government

aerospace business. we got the impression from congressman ryan yesterday that some of the concerns from the right about the defense sequester had been ameal your ra emelurated to some extent. >> when the national news talks about boehner, they go think what you will. we all know you think he's a jerk because we've told you he is for the last five years. so we know you believe the mainstream media that he is a jerk. but in this case, i can hear it in their tone. that that's basically what they've said. in this case, he's a little bit more palletble for us. >> you know what? you're so good because you nail stuff. that is -- >> you know that i'm right with that. we live in new york, though. so we're bombarded with -- and you are a product. i mean, you live, breathe, sleep, your heart is ticking,

your lungs -- it's all -- yeah. anyway, inway washington -- oh, here we go. did you see this? >> this is great. >> people were worried, 332-94 for that bill, the bipartisan bill. and it really did kind of like some of the stuff boehner was saying yesterday. you know, he finally just said, look, i've tried to work, tried to take your position and not just dismiss them, but take them seriously. but try to further your goals and i agree with a lot of them, even though as paul ryan said, we have a democratic president and a democratic senate. but boehner said i've listened and i've tried to do it. but at this point, we're going to do this. you loved it? you liked it. you liked it -- different as in stuff. >> yeah. i think this was great. nobody was expecting it to be quite this strong of a vote. paul ryan didn't expect to see it. if you can get past some of this contentious stuff, build up relationships, people working across the aisles to see what we can get done instead of seeing

what we can stop on both sides, there are some areas of agreement. if you can take those small areas of agreement and try and work on them, i think that's a great start. >> was it true that 92% of the sequester remains? that's what ryan kept saying. do figures lie? >> i think if you're looking over the years, yeah. >> is that how? because everybody has a number that bolsters their -- >> you can look at this a lot of different ways. if you're looking at in this year, i don't know if -- >> how did we lose you? what are you looking at? tell me. >> it's a story that becky is going to talk about. >> you're is in the script preparing? >> no. i looked t screen and i wanted to be able to give you the exact answer about this because you would ask me before the program began. >> if what you told me is true, this takes out a large part of my daily pleasure. >> no, you can block people. >> supposedly they don't get told if you're blocked. let's find out whether it's true. >> twitter is backtracking after

some changes to the site's blocking functionality. it was greeted with open revolt. righting is reporting to the block function that users or interacting with their tweets. allowing them to view or tweet. >> the people who are harassing still get the joy of harassing, still thinking that you're harassing. twitter said the change is meant to protect users. >> it is back to the old world. >> tell me in english, andrew. >> that means -- >> basically what -- they were worried about every time you block somebody, there's a potential for retaliation or that people will then write tweets about you but they won't use your hashtag or whatsoever.

>> but i won't see them? >> you won't see them. so they thought, okay, the way we're going to fix this is by letting people -- you can block them, i won't know that you've blocked me and i'll keep writing these crazy things out there and i'll feel like i'm completely empowered, except for the fact that you'll never see it. but other people can see it, by the way. that was the issue. >> because there are bitter, small minded haters. some of them used to actually work here, hedge fund type -- that write stuff. i don't see it. i don't care at all. i'm whistling past the graveyard constantly. >> which you could still be doing, but they wouldn't know. i think the changes that they've undone i don't think was necessarily a bad thing. because you provoke someone when you block them? >> you do? >> yes. >> that's the whole point. when you block them, it will stay block. >> i do double secret blocking. i also report it at spam. do they know that i report them as spam?

and i mean both kinds of spam. you're a scary preservative laden -- >> how do you think people feel but? >> who? >> hormel, the spam people. >> i think they like me, but they worry about me. because the lovers of spam, we probably don't have a lot of them in our audience, do we? have you ever had it? >> i can't say i've ever had it. >> i don't think i've ever had it. >> i don't think so. >> i like hormel products. i just think spam is funny. i think the name is funny. i think it's a meat and if it's a meat, it should be called whatever type of meat it is but no one knows. >> the next time we have the ceo of hormel on, we should ask him about how spam has been used in this verbiage. >> anyway, so the bottom line is, you can block people and -- >> let me see if i've got

anyone -- in that case, even someone nice. >> joe, here is the catch. they can still write about it. they just cannot use your -- >> but i won't see it, right? >> you won't see it, but the rest of the world will. >> go on a message board sometime and search sorkin. >> trust me, i know. >> anybody who is out there knows that. >> i sadly know. i sadly know. >> if you don't see it, it's not happening. >> it's a good way to think about it. >> you know, big stars -- and i've seen this recently, they have to -- can you imagine affleck after batman, the amount of stuff that was -- pikers, we deal with three things? aflfleck dealt with 3 million. gweneth paltrow, how about the one you know? >> ann hathaway. >> there are people devoted to hating ann hathaway. >> it's a lesson that we all

need to develop thicker skin. >> let's do it right now from here on out. from here on out, let us be thicker skinned. >> deal. >> we hopefully won't need it. we're going to go across the pond for a moment. it is time for the global markets. our good friend ross westgate standing by in london with a mix of red and green behind him for the holiday season. >> that's right. a very good morning to you, andrew. and we have been -- in the session. we're about up to the session highs where we wandered down to the flat line here. around about 5 to 5, just about advancers and decliners on the dow jones stoxx 600. the ftse was down about 62 points. up 13 at the moment. we have bounced off the low which we hit around half an hour or so ago. the xetra dax is up 0.25%. the cac 40 is up about 0.3%. the ftse mib is up 0.3% today. peugeot citron has been feeling

the heat this week. it's down another 9% today. it was off nearly 9% yesterday. it's down in the last four trading sessions something like 23%. today, the reaction is because u.s. alliance partner general motors sold its stake ahead of a possible new share issue by the struggling french carmaker. the french government says it's not sure whether it's going to buy into peugeot citron or not. but a poor week for investors in the french carmaker. and bitcoin is back in focus yet again. the european banking authority is warning that high volatility and a lack of regulation makes virtual currencies potentially dangerous for consumers. european authorities say they are going to investigate whether virtual currencies need to be supervised or not. so more scrutiny coming from regulators on virtual currencies, as well. that's where we stand at the moment. kind of even stevens. for now, back to you. >> thank you for that. now we are going to go jump from

london to dublin where ireland is reaching a major milestone this morning. julia chatterley joins us now with that story. good morning, julia. >> good morning. well, as you said, ireland becomes the first eurozone country to exit its bailout program. the irish finance minister said to me, this is a huge achievement for a country that in the last few years has suffered a property market crash, a banking sector crisis and ultimately had to borrow $114 billion. now, the best way to explain this story is to look at their ten-year yields. back in 201 1, they were borrowing at almost 15%. since then, rates have come dramatically lower. and i asked the finance minister if he sees more room for improvement in those borrowing rates. >> we are borrowing at rates that we couldn't have done. it is hard to predict the future. but i always say that we have

come from the position where we were into raising and in terms of spreads, we were the strongest of the weak. and now we have moved into a different division where we have started by being the weakest of the strong. >> he said that the country is the weakest of the strong. and those weaknesses include debt levels that are higher than before the financial crisis. a huge spike in unemployment particularly for young people and concerns still about the health of the banking sector. so yes, it's a positive message here from ireland today. the direction is right. but the road to recovery is going to be a long one. guys, back to you. >> thank you. >> andrew. >> nice to see you. lovely tie you're wearing. >> thanks. today i saw him. he came in and tried to sneak in in that new suit. i'm pretty perceptive because i saw you out of the corner of my

eye and said oh, my god, you looked so sexy. >> thank you. >> didn't i say that right away inspect. >> yes. >> he didn't have a tie on. his collar was open. that's your lightest suit that you've worn. >> this is a -- >> is that a different tie than you started to put on this morning? >> no. >> but, you know, the day that he went over there without a jacket and he said -- you know, i walked past the mirror and i didn't like the way the jacket looked. that's vanity. >> no, it's not. >> but that's just something you have to do. >> today he strutted over with the jacket on, almost -- >> had that going on? >> yes, yes. anyway, coming up -- yeah. coming up, the debate over inflight phone calls. i'm fine. >> i know you're fine. >> i am fine with them not letting this. >> others may not be. >> the controversy is getting louder. that story is coming up in this

morning's executive edge. later, taking flight, wheels up, raising the stakes in private air travel. i will never own a jet, but if i ever could, it would be a cessna, the one that flies high, flies fast. >> i would be a wheels up member. >> i'll never do that, either. scott ernest and kenny dichter will be here. first, though, will any planes be able to get out of the new york area this week? that's the question that alex wallace of the weather channel will answer with his forecast. alex. >> good morning. could be a tough travel time as we head our way into the weekend. no doubt about it. and it all starts here in the middle of the country. southern plains down into texas, we're seeing rain. this is the jennings of this winter storm. we're starting to see, in fact, here, in that purple, a little bit of freezing rain showing up. parts of kansas into missouri. as the storm system brings the moisture northward and the cold air drives south, we bring in that wintry weather.

so icing today across parts of noir at least to start off. then we'll switch over to snow in places like st. louis. indianapolis, detroit, and then new york city tomorrow seeing that snow. you will transition late saturday to a bit of a mix. most of new england heading into that snow through sunday. 3 to 5 in this darker shade of blue. that will be south of chicago working into detroit. this is where the big winners will be, particularly the interior spots. look at this dark shade of purple. that's 8 to 12 inches of snow. that will be west of boston. boston, you're right on that edge of dealing with about 5 to 8. in and around new york city, you'll be generally talking 1 to 3. eastern cities, west of the city, 3 to 5 out there. with this wintry weather coming in, i dare to say there will be travel problems for the northeast and the midwest. that's your national forecast. "squawk box" is coming back. >> announcer: before you hit the road, here is your travelers check. in order to earn revenue, cities have been raising taxes on hotel

lodging, car rentals and restaurant meals. and business travelers are feeling it. so which city taxes travelers the most? find out next. (vo) you are a business pro. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.

>> announcer: back now with today's traveler's check. which city taxes travelers the

most? chicago. road warriors with expect to pay more than 40 bucks in travel taxes for one day after factors in general sales tax. that's according to the gbta. right now, it's time for the executive edge. this is our daily segment focused on giving business leaders a leg up. yesterday, we were talking about making in-flight calls from your cell phone. now the fcc has voted 3-2 to start a month-long public comment process to go ahead and remove its current restrictions so you can make those phone calls. the fdc chairman says this is a technical rule, not a rule about usage. but the department of transportation says it isn't so sure that permitting calls is fair to consumers. it may even ban the use of cell phone calls by passengers during flights. on board and on aircraft. there's a bit of a spat between two agencies or whether you can or cooperate and the fcc is

basically saying, hey, there's no technical reason we should prohibit this. >> how do you feel about -- you remember yesterday you had about the quiet car on a train? how do you feel about a quiet cabin? you'd pay more or -- i don't know. do you pay more? >> you have to figure that. the airline -- you pay more for each. >> you pay more to be part of one, and then you pay to keep it silent. >> either way, you pay. >> you can't separate that. even in first class, you can hear what they're doing. it's not the same as in a train where you can go to a physical different car. >> i would like other people not to be able to make calls, but i would like to be able to do them. >> that's what everybody wants. >> i'm okay if no one can. >> you're okay with -- >> as long as you can text and e-mail, you can still get your communications out. >> and you're fine. >> that's fine. why don't they do that? >> that's what they're considering. there's a ban on calls that the department is considering would just be on phone calls. they would still allow all other -- like e-mail and texting that goes back and forth.

you're okay with that? >> you can imagine certain people you.wouldn't want to be near while making phone calls, right? >> i can imagine a lot of thom those people. >> not by name, but do you know the type? >> how about a telephone booth, an in-air telephone booth ta you could go into. >> do you remember die hard 2? there was that annoying reporter whose name was dick something, who was trying to phone in the story because he knew they were being hijacked? so he made his way into the bathroom and got stung by the -- bonnie breaks in and gets him with the stun gun at the end. and everybody claps. >> maybe he was in both because he was definitely in the first one. because he says wolfgang and i are personal friends, remember?

>> right, right. >> this is the second one where they're on the airplane and the airplane is being hijacked. i guess the whole point being that even back then, people were totally annoyed by people using the phone like that. >> i want to raise one other issue. i would assume if you have wi-fi access on a plane, that it's harderer than you think to completely turn the voice signal off, meaning they could say they're doing it, but i'm sure people would find apps and things to that will allow you to screen your voice, sort of skypish, but you could do it anyway. >> so you would be hiding under the covers and talking to the phone? >> yes. like before where you weren't allowed to do it on the ground. >> you're below my pay grade now. >> one of the best lines. >> never using above again. >> you're below my pay grade. the major wireless carrier is making it easier for

consumers to unlock mobile networks. they agreed to clearly notify customers when their contract is up and their device is then eligible for being switched to another carrier. right now, carriers lock smartphones to their networks to encourage consumers to renew their mobile phones. a lot of times they're subsidizing these phones, it's really expensive. an iphone costs something like $600 and you can get it toer $200 because the carrier is subsidizing that. there was a battle. the ctia, the lobbying group went and fought this and they got the library of congress to sign off with them in saying yes, they were right. but it spurned this public backlash saying that this shouldn't happen and policymakers have gotten involved, as well. >> two thoughts of this. >> one for you and one for me because i don't have any. >> okay. this is silly -- it's not silly, but it is in two respects. first, you can do down the

street and for $10, somebody will unlock your phone. i don't know if they're supposed to do that. im sure the telephone companies won't be happy with me saying that, but it is possible. the other thing is, typically you can't unlock your phone unless you've had the phone for two or three years because you've had this contract. usually within two or three years, the rates of these phones are being innovated, you don't even want the phone any more. anyway, that's what i had to say. >> i agree with andrew. >> okay. when we come back, another sharp sell-off for stocks. so is this just the prefed meeting jitters or is this the start of a much bigger correction? starting at 7:00 a.m., squawk goes shopping to find out how strong the consumer is this holiday season. we have steve sadove, a lineup of retail ceos. plus home depot co-founder arthur blank. we'll have some home depot questions for him, as well. "squawk box" will be right back. i have low testosterone. there, i said it.

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welcome back to "squawk box." i'm joe kernen along with becky quick and andrew ross sorkin. >> it's friday, the 13th. >> i got married on friday the 13th. >> you did. and it was something. like 13 is a lunar -- all kinds of stuff is happening, which is fine. her birthday is halloween, so there's a lot of weird powerful

things going on. >> powerful. >> powerful things. topping this morning's headlines -- plus it was in hawaii and the guide who married us -- i think we're married, but the guy who married us was going -- you know? >> were you under a ladder or what? >> might as well have been. but the guy seriously, there was a lot of hawaiian spoken and at the end, we assumed that it was all legal. >> wow. >> twitter reverting back with -- i was just talking to someone about it, because the spam thing conjured up that i'm snuting a state. it's my favorite state. you can keep the other 49, really. i like the other 49, but i love hawaii. the worst island is the best place in the world. oh, yeah, twitter reverts back to its original blocking policy after rule changes were met with user backlash. new rules would allow a blocked user to view or tweet at the

person who blocked him or her, but the activity would be invisible to the victims as if the offending account did not exist, but we're talking about this, but then it backtracked, anyway, right? >> right. >> now you know, when you block people, everyone knows. >> is this hot? >> at 7.5%, right? >> yeah. but we got the video. >> it's hot. >> it is so hot. it's that hot. >> 7%. we have the video, so let's fall it. >> it's hot. >> shares of hilton worldwide debuted yesterday. the stock added 7%. >> it's hot. >> the ten-year gives you 2.8. this added 7% in one day. that's hot. it closed at just above $21 a share. and even the worst private equity deals are finally going to work, right? >> some of them are. >> they did very well with that. >> yeah, but they didn't initially, did they? >> no. it looked like an absolute

disaster. >> but they made $8 billion. and they're stuck with the stock for a while. >> hey, "squawk box," that's hot. >> thank you, paris. >> she -- it looked like she really liked us here. >> she did. >> i think she liked the show and everything. her expression. she can't fake that, right? >> can't fake it. they never do. and north korea, treading lightly there, north korea says the uncle to dictator kim jong un was he was executed for trying to overthrow the government and there were a lot of charges that were read. and it's hard to translate, i think, sometimes because it sounds kind of strange when you translate what the accusations were has certain people saying he was not enthusiastic enough. and when he was clapping, he was a real confidant to kim's

father. obviously. he was his brother. well, i don't know whether it was his father's mother's son. but he had been considered the country's number two official. and unceremoniously executed him. >> wiped out footage. i've seen footage of a movie where they recently put in and they sliced him out of everything. he doesn't exist. >> i saw footage of where he was sitting in a room, two guys came, they pulled him out of there and it was horrific and everybody else was sitting there like this watching this guy be led out. >> it doesn't give you a lot of confidence about what you can and kaekt expect from the leader of that leader of the country at that point. >> but we are jinglistic and we think that we do everything here the proper way, but it's not so. but i saw putin yesterday taking the moral high ground saying russia is the moral arbiter of the way things should be in the world. and you think of some of the

walls we're dealing with over there with the olympics. are you seeshus? you're really saying that? >> the law when they decide to enforce it. >> it's -- really? you're the leader of the world and -- >> from a guy who just -- >> who stole the ring. >> and completely did away with the news energy. >> he's a great guy. >> let's talk about the markets. the dow saw its second straight day of steep losses ahead of the fed's two-day meeting next week. joining us right now with more on this is jason pride, director of investment strategy at glenn mead. and on the economy, we have nariman behravesh. adjacent crone, why don't you tell us, is the market giving back gains at this point? because people are locking in what they've already made this year and is this because we worry that the fed is actually going to taper in december?

>> sure. i think you have to recognize that the market is up about 30% this year on the back of a fairly strong gain the year before. perhaps some investors are finding a reason or finding excuses to rebalance the portfolios and forcing the market in the other direction. but at the end of the day, when you dig into the details, it's hard to make a convincing argument as to why this market should fall hard. we're sitting at fairly reasonable valuations, maybe a slight premium to fair value. and economic circumstances seem to be improving as we go into 2014. you can make a case about fed money tapering. is it going to change that much? i don't think so. investors should look at material weakness as a buying opportunity. >> material weakness is of 5% or 10% or more? 5% or 10% would easily be material weakness. is that going to make that much of a difference in your edition?

probably not. once you cross that 5% line, you're probably getting a reasonable idea of where things were. >> nariman, jobs numbers have been better than expected. do you think there's enough for the fed to say that they should begin to taper next week? >> i'm going to give you one of those economist answers. what probability is there for december versus january. i'd say 40% december, 60% january. partly because the data that you're talking about is still fairly new in the sense that the upbeatness of the data is fairly recent. so they may wait ool month just to be sure. but it won't be any later than january, certainly. could be this month. next week. >> are you concerned at all with what's been happening with the retailers? maybe they're having to give stuff away in terms of big discounts to try and get people in the doors. how strong is this holiday shopping season? >> well, it's a little hard to tell. as you know, the retail sales

numbers have been very strong, much stronger than most of us expected. my guess is it will be a decent holiday season. it won't be gang busters. what are we looking at year over year? 4%, maybe. something like that. so not bad, not great is the way i would characterize it. >> jason, how about you? if you think at this point that stocks are fairly valued, do you expect the gains to continue? >> we do expect the gains to kind of continue to kind of plod higher. i think when valuations are good and the economic growth is good, you can grow at a reasonable amount. earnings growth has been subdued through this period. that doesn't necessarily mean the stock market can't try to hire that earnings base inches up. >> jason, narimanariman, gentle thank you for being with us and have a great weekend. >> you, too. >> thanks for having me. coming up, kenny dichter and

scott earnest, they're going to join us. if you're looking for a little reading, go to squawk.cnbc.com. see all three of us as dilbert characters. it's all in this week's edition of talking "squawk box." "squawk box" coming back right after this. to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. every day we're working to 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,

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welcome back to "squawk box." diamond property group, largest owner of malls and service will spin off its strip center business and smaller enclosed malls into a publicly traded

reits to disbeautiful to shareholders. they're expected to initially have an interest in 44 malls. coming up at 7:30 eastern time with wire going to get an outlook for the outlet centers with the ceo steve tanger. >> you can be excused, because in -- it's like a tangerine. >> if you're in spain and you're going to go the tanger, because you're an international, that's why you said tanger. >> thank you. thank you for balancing me out. your turn. >> oh, it is? it's right bheend me. kenny dichter rolls up the stakes. scott earnest, they'll tell us about their new deal first on cnbc. it's estimated that 30% of the traffic in a city

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♪ private aviation companies wheels off announcing today that it's teaming up with cessna to add at some point 150 jets by 2020 to the fleet. here to talk about that partnership, kenny dichter,

founder and ce of of wheels up and scott earnest, ceo of cessna. welcome and that you can for coming. you came in from wichita, right? >> yes. >> which is the home of the shockers.undefeated? >> wisconsin's undefeated, as well, joe. >> all right. i don't know why. okay. so you started. >> yes. >> fractional ownership, used -- it was finally bought by net jet. you've been coming on the show as you're building another competitor, i think. you start with a beach craft for the two-hour flights. it's a turbo prop. >> well, we ordered 105 of those from beach craft. unbelievable guys. and now the next move is -- >> but you ought bought in a gentleman from europe for the global express on the long end. >> thomas flurr based in europe. >> and now you're here.

>> we've already sold ten of those. >> you have? >> ten memberships. >> you need to be able to go on the business. >> the middle. >> and i said before we came on, the only jet i'd ever need would be the citation. it goes higher and faster than any of the other jets. >> well, joe, we're building an absolute total aviation solution. the most efficient solution that a customer would want. on the flights less than two hours, you want to fly at 3950. >> what does that mean? >> per hour. >> per hour. but 60% of the lift we'll need for our 10,000 members in 2020 is going to happen on jet planes. and cessna is the number one light mid cabin, super mid cabin manufacturer in the world. and to sit next to scott and have a commitment from his company to support wheels up, unbelievable. >> it's like a partnership sort of. you're doing the financing, for

wheels up, scott? how does it work? how many you starting with? >> well, we can based on how our membership is stacking up, 15 to 20 airplanes a year. we're going to do a combination of pre-owned, they're going to refurb for us, backup for us, new planes where appropriate. and we can take 15 to 20 airplanes a year. >> you've got firm orders for 20 of them already? >> no, we have a little bit less than that. but we're already set with the orders. we've started the conversion activity. we're really excited. kenny is an individual that really understands the market with what he's done marquee jet. we feel we have a competitive product. it's reliable, i think our customers are happy to be in the product. and opened up a whole new space of customers that can access the product. >> i want to know, what's the difference in terms of the type of customer going with wheels up

compared to net jets? >> well, it's interesting, i think the net jet business is a great business. i mean, we were -- we built it over the last ten years and it handles a niche market in the airplane space. what wheels up does is opens up 3 to 5 times the 150,000 people we targeted. i believe that 1/3 to half marquee folks will end up supplementing their aviation portfolio with the wheels up card. >> what were they doing before? >> in terms of the people? >> where were they flying? you said supplement, they'd be -- they're going to supplement. >> yeah, they supplement with charter. the aviation consumer has become a lot smarter. and i think that people are using net jet for the tough stuff, stuff into the mountains over the holiday season. but when you're doing hour, 2 1/2 flight, you're going to use the king air. you can use a jet in the charter market and we're going to be

able to put that whole thing together in a box and give people, you know, a better solution at a better price with all of the safety and security that we built at marquee and net jet. that's the new deal. >> how many members do you ultimately need to make the economics of this work? you're making a huge investment in these planes. >> we break even at a very reasonable 2,200 members. i'll have that done in the next 18 to 24 months. i had my old partner at marquee jet who is my first ceo, he signed on, my co-founder and running the offense. and to sell 2,000 people, andrew, at $15,000, 750 for a membership versus the 180 i used to sell at marquee, we could be faster than projected. >> madison avenue, 5th avenue, last week i told him in the green room about this before, with somebody wearing one of these hats who was clearly a customer was wearing one of these hats. >> have 150 customers signed up, we'll do 250 by year end, 1,250 by the end of 2014.

and we just signed a little deal with david heller and the flight guys to make sure we're -- again, think total aviation solution. hold up, test run. >> this is not a 1% type thing? >> no. >> this is less than 1%. people at 1% can't do this yet, can they? you're still playing in the 1%. >> you know what, joe, for the first time in private aviation, i actually think we have -- >> you need friends to go, even if you're a well off person. >> i would say there's probably 5 million people in america, which will give you about 1.5%. >> you only need 2,200. >> when will your leanest years for business jets? >> obviously, 2008 with what happened was a very difficult year. >> that was on a scale of one to two, that was a one -- >> minus ten. >> what was 2009? >> we're probably around to three to four.

>> what's 2012? >> 2012, we're up to five. >> and now 2013? >> we're still around five. >> 2014? >> we're moving to six. >> when was the last time you saw a nine or ten, 2007 right before the crash? >> right. and realistically, i think you're going to see a steady growth. you aren't going to see the hockey stick growth that happened in the 2008 time frame. we're pretty comfortable. we've got our volume production matched to what we see, the opportunities. i think the other thing for the opportunity we see, not only the individual level but the fortune 500 level for supplemental lift. >> fortune 5,000. >> that's a good point. >> and how much is cessna overall? >> we're about 30% of the revenue. >> it's important. >> yes. >> you can count on us for heller flight.

>> we defer to andrew for that because that's how he gets in here every morning. >> not really. >> not really. some people believe. >> some people who watch the show actually think that. i wish it was the case. >> thank you. >> we appreciate -- >> good luck. i worry about you. i mean, just because -- i think you're personally signed up. you're a great salesman. >> joe, i'm all in. >> i know you are. >> i have 100% belief that we have the absolute right product for the marketplace right now. and i think in cessna and beach craft and vista jet, we have the right partners. >> thank you, gentlemen. when we come back, steve liesman unveils the results of the all american economic survey. and we have a special guest host today, steve sadove. ♪

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time for another big lineup on "squawk box." first, "squawk" goes shopping with former saks ceo steve saddove. steve tanger, ceo of tanger factory outlets. plus, home depot co-founder arthur blank on his tea time with pga tours super store. all that and steve liesman delivers the all america survey. 'tis the season of the stressed american consumer. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on

cnbc. i'm becky quick along with joe kernan and andrew ross sorkin. we do have a big lineup this morning. former saks ceo steve saddove is our guest host, he's also bringing some friends with him. steven tanger, who is the ceo of tanger factory outlets and mindy grossman. plus we have arthur blank and the ceo of pga superstore. they'll be talking to us about whether or not golf sales are making the cut this season. right now, though, let's get to the markets and today's top stories. directv is exploring the idea of an online video service. the company plans to target price-sensitive people. also directv and the nfl have agreed to a framework to renew the popular sunday ticket football package. the deal's not done yet but they are continuing to negotiate. and coca-cola says that it will split its north american business into two operating units. this is part of the beverage giant's plan to return to a franchise model.

they'll be called coca-cola north america and coca-cola refreshments. the consumer price index will be released today. economists are expecting an unchanged reading. the futures this morning have been indicated a little bit higher after three down days in a row. right now, the s&p futures up by just over seven points. a little practical news relating to twitter this morning. making changes to the site's blocking functionality, which joe used to use regularly. apparently greeted with open revolt. he's blocking this morning. everybody's been very nice. reiters reporting that after this all happened, they put the new program into place, rushed into a meeting last night after a lot of negative feedback surrounding some tweets to the blocking function. now, what they were doing was this. used to be that when you blocked somebody, you knew immediately that you were blocked. they thought that because people

were being told they're being blocked that it was creating some bad behavior on twitter. then they decided they were going to put in a program so that you block somebody but the other person wouldn't know they were being blocked and continue tweeting away. apparently the twitsphere didn't like that. >> that takes away all the satisfaction. >> of blocking somebody. >> i'm glad they backtracked quickly. >> they should just allow both of it. if you want an anonymous block or a real block. >> i would never have a reason. >> no, but the point of the blocking is also so they can't tweet about you. >> oh, when you block somebody they can't tweet about you either? >> they can't use your user name. >> i didn't know that. take a look at twitter shares. i don't know if this is going to impact regular shares. 56.28 if you're in that ipo, you're a happy camper right now. oh, right, you hate the phrase happy camper.

>> there's a phrase i don't hear enough. there's a phrase that's not used enough in the english language. >> happy camper. where did that come from? >> i have no idea. i just want it to go away. it's okay, though. time now for the results of the all america survey. steve liesman has the highlights. you going to be onset with us with just normal stuff, steve. not just the survey. >> the survey and also stuff on the economy. we'll talk to you and give me whatever they call it on -- >> no, it's important to talk about it because the market's been down three straight days and the economy's getting better. why would it be down when congress was passing a debt bill -- a budget bill. >> you would think it's reacting to the taper, perhaps, and also the long end of the curve a little bit. >> stick to your guns. >> i'm standing right here. i'm not going anywhere. 800 americans around the country. and really, guys, we have a contradictory survey.

i'll come back in the next hour and show you those, they look pretty rosy. here's this survey, first is our spending results and here's the actual numbers. and there's the green line, the cnbc estimate over the years. let's take a look this year. the mrf is forecasting 738 for a 2% decline per person. and here's our forecast, a 9.4% decline to 681. a big difference right there. we'll have some reasons we'll get to in a minute. but i want to show you, first, the performance of the survey. this is our estimate in green. you can see one, two, three, four years out of the six. we've done very well. two years, right after recession, i don't know why that is, way off. is this one of those years? or one of those years where we have it right? let's take a look at some of the reasons the shopping plans compared to, say, a year ago. you can see what we kind of double check our results with this question. you can see a large percentage, more than 40% saying they will

spend less compared to a year ago and 40% about the same. only a small percentage in the 12% saying they'll spend more. but then we ask, we were interested. it was washington having some kind of effect, 26% said you know what, compared to a month ago i'm spending less. perhaps some effect of what's happening in washington and the budget ceiling fights there influencing shopping. let's go through now and take a look at why they say they are. by the way, this is an open-ended question. we don't give them an answer, but these are the answers they give us. income lower one of them, the bad economy, they want to save more, trouble paying their bills in there. 5% told us as a reason for why they're spending less. it's really important this is driven by the wealthy. you can see, 18 to 34 is among those who compared to a year ago are spending less. men, even if your home values are up, you're spending less. that may be a subset of this next group. the wealthy in our survey, guys,

spending over $300 less. what does that do? it brings them down to more normal levels. the past two years have been very high. they're down to more normal levels relative to the average and where they were before. we'll see if this plays out. but what's interesting is as you hear in the next hour, stuff on wages and stuff on housing, and even inflation concerns are down. so those things tell us that people should be spending more, but when we actually ask them what they're spending. >> it's interesting, the survey over the black friday weekend showed the same thing. >> yeah. that was down. >> it was down, people were saying they were spending less. we've heard from retailers who say the traffic has been down but maybe the spending was up. >> it was just the bank rate survey, bankrate.com, almost the same results but the internals were good. people had better views on specific things in their lives. but when we asked them how much they were spending, they said less compared to a year ago. that seems to be the trend. i also wonder, by the way,

there's one interesting thing on the nrf survey. when you ask people what they're doing this holiday, they say a lot of money on things other than gifts. >> like what? >> you would have to be an idiot -- i don't mean that -- yeah, you would have to be an idiot to buy a television at any other time than christmas. >> that's when you see the discount. >> i think in a pavlovian way have trained customers to buy around this time. so when the survey calls up, the real answer is i'm buying all kinds of stuff but only this portion is for the holidays. i wait until christmas time to do a whole bunch of things. there's a lot of research, for example, companies, they do their r & d in recessions because they're waiting for the tax breaks. i think the consumers are the same way. more spending has been brought forward. we may not be picking up the spending for holiday spending. >> that's an interesting point. why don't we bring in our guest host. >> liesman, you staying? >> let him stay. >> you finally extricated yourself. i mean, that was sickening to

watch you try to get one of those cards -- >> joe, it's the ability to -- my dream in this world is to live on a tropical island, and the only way to accomplish that is with a jet. so what i need to do, joe. in order to get that jet and fulfill my dream of being able to go bone fishing in the morning and come to work in, you know, in the afternoon -- >> i'm going to look up bone fishing, by the way, that's got to be something dirty. >> no. >> listen to me, you want to be -- you are a bona fide liberal. you're a liberal but -- >> cessna jet liberal. >> i don't want to be rich, i want the jet. >> he's no longer ceo of saks. so you're staying -- >> you have set the model. you have tried. how many years have -- we invite the president of one university. folks, they have no news value. folks -- listen to me. >> i invited the georgetown -- >> thank you, becky.

>> it was news value. i saw him at sun valley. >> the only news value is to get joe's kids in -- >> my son's 11. >> i invited the georgetown university president. >> are you -- >> it has nothing to do with that. it has to do with the higher education process. >> i chair the board of hamilton college. i'll help you guys into hamilton. >> let's get back to what's happening at the holiday season. it has been a really different season. i've been surprised this year. we've seen spending from consumers that could be down. what are we getting? >> i think you have a lot of cross currents going on. clearly you have growth in the internet. the internet is continuing to explode. you've got amazon. >> that's what i think it is. >> and people, the weather, by the way, isn't helping any because for the stores because people moving more quickly toward the intoer net. but i think there's a concern and melee with the consumer. even though unemployment is coming down, the job creation is

a lot in the service sector where they're not as high wages, people don't feel flush with cash and they're very promotional. people are looking for the deals. so even when you see the sales coming in thursday night on the weekend, what you're finding is that people are going after the best deal they can. and, boy, they understand what's going on. you're finding promotions are playing up much more heavily than of you seen in the past. >> you go back to that internet point. and i find my own behavior. i'm rarely out in a mall and people don't have time. do you know how many dual households, there's not a lot of time to get out. so the internet, to me, this is the year of the internet. >> our survey, percent of people who say they do most of their shopping online doubled in seven years. >> i believe it. >> the percent of people who say they have bought an item other than a music or an app on their mobile phone also doubled, a third of the country now.

so not only is there extreme movement in this, it's accelerating. >> well, it's accelerating and i think also what's happening, it's not just one channel or another. what's happening is the channels are becoming blurred. used to be the people think internet's going to take over and stores will go away. now it's seamless. people want any time, anywhere. they may want to buy it online or pick it up in a store or have it shipped from the store. >> we have to change our survey. when we ask, are you doing stuff at big-box stores or online? i'm not sure we're getting the right answer anymore. is it bestbuy.com or bestbuy? >> in the consumer's mind it's all best buy. they don't think of it anymore in one channel or another. the product may be coming from the store. >> what does that do to a mall operator? i understand that retailers can have an online space. walmart has walmart.com. if you're a mall operator, how do you capture that loss of the shopper? >> i'm not sure, necessarily. they've got to start a couple of

things. first, they've got to focus on experience. people still love going to a mall. and one of the things we've got to learn is it's not just about the product. it's the experience the consumer's getting. part of going to the mall is about seeing other people, it's getting to experience new things in the store. by the way, they can buy the stuff online from the store. the mall operators have to evolve their model, as well. >> it's adding up to a trickier holiday season than some have been expecting. >> absolutely. >> steve, you'll be back at 8:00 with more from the survey, right? >> has joe hit you up for ties or suits or anything? are you kidding me? hold on to your clothes, okay. coming up, we have much more still ahead including ceo of bon-ton. the cameras were there last night, that's next when we return. and if you are looking for a little reading, look no further than the squawk blog.

go to squawk.cnbc.com, see all three of us as dillbert characters this week. and you can read about chris hardwick, the host of "the talking dead." and me trying to figure out what a downward facing dog is all in this week's edition of the squawking blog. mine was earned orbiting the moon in 1971. afghanistan in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

welcome back to "squawk box." star studded red carpet event in silicon valley. call it the oscars for science. there were six winners of what's called the breakthrough prize in life sciences. our cameras were there, caught up with google. >> a lot of things, in fact. but this is one of them. and, i think it's exciting, it's bold, it has the potential to be transformative over time. so i love this cause.

>> i think we have a disbalance in the world today that the best minds are not appreciated enough. and they'll recognize there's a public recognition. >> it's pretty cool. these guys came together, put $3 million together per award given to scientists, only to scientists, physicists, people curing cancer, all sorts of things. and the whole idea, in an age where we celebrate celebrity rather than celebrate physicists and scientists, they're -- >> making real changes. >> exactly. and they brought a number of celebrities there last night in addition. so conan o'brien was there and kevin spacey and glenn close was there. >> the idea is to get young people invested in the education and sciences. we'll talk about it later. in the meantime, the countdown is on for christmas. the ceo of bon-ton talks fashion, the better than

expected quarterly results. "squawk box" will be back after a quick break. 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. simple, flat rate shipping with the reliability of fedex.

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welcome back to "squawk." i love that graphic and the music. even with some retailers opening their doors on thanksgiving day, this shortened holiday season is giving stores less time to make their holiday sales numbers. and here with more, brandon hoffman. how are you? you're a scarsdale man. >> i am. >> how do you see the consumer this holiday season? >> well, i think she certainly is feeling better than she was in the spring. in the spring we were struggling with -- she was struggling with the higher gas prices in the midwest in the unfavorable weather. we got into october and the government got back to work and gas prices fell. we saw that really help the consumer feel a little bit better about herself. >> joe smiled the second you said she. the consumer is she. >> i want to make sure -- i want to introduce as an act of congress if we ever say consumer that it should be she.

that's the one gender -- >> it's she for you. >> you look a lot better dressed than the last time i was here, maybe i will have to start talking about he. you're getting me to convert. >> really? >> she's influencing the decision. >> what were you wearing last time? >> you know what, they've got us in tapered shirts now because i used to look, you know -- >> a little. >> because it was -- >> it was billowing out a little. >> well, thank you. >> you've been looking at me, i've been looking at you, that's fine. >> tell us about this weather situation. how is that hitting you? >> well, the cold weather's terrific and we've seen a real uptick in outerwear and cold weather. obviously the snowstorms aren't great. and we've got this one hitting us this weekend. but we do enjoy the cold weather. >> we were talking about before the online versus off, versus this whole sort of multi effort. you guys are a little late on

the dot com front. you're ramping back up now. >> yeah. i spent a number of years running neimans.com. and part of it was revamping the website and getting the brands to make us competitive. we just launched ralph lauren last month, we launched michael kors and coach a few months earlier. now with the team we have in place, the website is our fastest growing channel. >> and how many people are using that channel and going to either return product at the store or how it's -- combining both experiences. >> yeah, we're trying to make it seamless so we don't really care how they shop or return or how they engage with us. and it's clearly every month you can see the uptick with the traffic of the site and how the customer's interacting between the site and the stores. we think that's great. >> in terms of price, the online product versus the store product. online warehouse doesn't cost a lot, but then there's the shipping and everything else. >> yeah. >> then there's the mall which costs a lot. >> right.

>> and you're trying to do both. >> well, i think there's a tipping point when you get to a certain amount of online sales where it becomes tremendously profitable. but until you get there, to your point you have to overcome the shipping charges and the fulfillment charges. we're kind of in between right now. it's big enough, we're starting to make real progress there, we've got a ways to go. >> opening up new stores? >> not really. we've opened up two new stores this year. our store base is constant around 270 stores. >> fair enough. >> andrew doesn't look any better than last time? >> andrew was a guest the last time. >> it's been that long? >> it's been that long. >> what was i wearing? some ugly-looking tie? >> i'll have to go back to the videotape. >> i want to go back to that. i need to know so i don't do it again. how's he looking? >> he's looking sharp. scarsdale boy. >> just because you're from the same neighborhood -- >> few blocks away. >> what do you think of the last two weeks of the season? the rest of the holidays?

>> we hope it's cold and no more snow. we'll take our chances if we get that. >> promotional? >> oh, it's already promotional. >> like i said off camera, i've been in the scarsdale diet. >> you told me it wasn't working. >> he said. >> i tried, it wasn't working. >> she wasn't his wife. >> right. that was part of the problem. up next, will the weather be a factor for the factory outlets? steve tanger of the factory outlet centers will be joining us with his forecast for the consumer with just 11 days of shopping left until christmas. also, at 8:00 a.m. eastern time, former white house council of economic advisers, the chairman alan krueger will be our guest. just in time for the fed meeting. "squawk box" will be right back. 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.

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welcome back to "squawk box" right here on cnbc. we're just about an hour away from key economic data. producer price index data will

be out at 8:30 eastern time. economists are expecting no change and up to .1% food and energy. a new type of diabetes drug from bristol-myers has been endorsed by medical experts two years after it had been ejected by regulators. a panel now recommending the approval. the benefits of the medicine appear to outweigh its risks. and finally, the budget passed the house 332-94 after lobbying by both republican and democratic leaders in support of the plan. the senate will now pass that bill for it to go to the president's desk. president obama has said, of course, he supports the bill. and we'll see what happens. also, twitter is backtracking after some changes so the site's blocking functionality. those changes were greeted with open revolt. reiters reports that executives rushed into a meeting last night after all the negative feedback surrounding tweaks to the block

function that could prevent harassers from following them or interacting with their tweets. used to be you block somebody, they knew immediately they were blocked. the changes came in so that you blocked them but they never realized they'd been blocked so they kept tweeting along happily. the twittersphere didn't take kindly to that change. and now they're back to the old way where you block -- you block somebody and you know they're being blocked. twitter shares this morning are indicated higher, up by about 1.6% to $56.23. >> that decision makes me -- the stock has done unbelievably well, and makes me wonder about the management at that place. to take away the gratification that users get from blocking someone. >> i understand it. >> that's a stupid move. >> no, i think they should introduce both of them. i think you should be able to block anonymously. >> why? so you don't stir them up. >> because if you've got a crazy american who is kind of st. augustine you and going after you, the last thing you want to do is poke them right in the eye.

>> that may happen to me at some point i would want to do that, i guess. >> i'd like to have the option. >> the reason i -- you know, this is the reason to do it. obviously everybody else. >> i like that twitter reacted quickly. >> people don't all blocking them now? what's the point of blocking them? people said that. now i'm questioning management. who's running that place now? >> steve's right. they turned it around. >> that's right. if you respond, then you're doing well. another storm across the midwest towards the northeast. just in time for a big holiday shopping weekend. with only one more week to go, one more weekend, i mean, how are the outlets fairing? how are -- steve tanger, president and ceo of tanger factory outlets. how are you, sir? >> i'm fine. how are you today? >> just -- i hear factory outlet and i kind of get kind of a cold sweat and i feel like running and going there.

how is business, would you say, at this point this year? >> actually, our business has been very good. the consumers have always responded to great values direct from the manufacturer on the best designers and brands around the world. and most of them are available at tanger outlets. >> so you're all over the place, obviously. tell me about how weather has factored in so far. how it's expected to factor in this weekend. >> weather's always a factor. the season started as early as november. and our merchants and partners have been offering great values. our traffic was up about 3% during the month of november and continues to trend up in low, single digits. >> how should we look at the way you operate? you're in reit, it's not a yield reit. why would -- i mean a stock's done really well since '09. i don't know how to interpret weather it's a buy, sell or hold at this point.

what would have to go really well for an investor to buy into this and say, wow, what a great investment. >> not our 3% yield which is a dividend. by the way, we've raised our dividend in each of the 20 years we've been public. a limited number of stocks able to do that. our company is a growth company, management's job is to continue to increase its funds from operati operation. and the market's determined the multiple involved in that. >> qualcomm is announcing a new succession plan that includes being promoted to chief executive officer-elect of the company. paul jacobs is going to be sticking around in a new role for this to kind of lead this transition. >> how old is he? he's like -- >> i know, i did not think he was very old at all.

>> he's not. >> he is sticking around as executive chairman. i still haven't seen them yet. but this is -- has been around for about 20 years at qualcomm. held a number of different positions, including leading the chip set business and they say successfully driving innovation and record growth. obviously a stock that has been a very strong performer if you take a look just where it's come this year. >> what about five years? any guesses on the market cap. >> yeah, you know what it is because i looked already. >> you can -- you can roll up three or four dow components and not get. $122 billion for a -- what's intel now at this point. that's probably a pretty good race. 121, it's above higher market cap. >> steve was on the list at one point, reported list to be the new ceo of microsoft. >> oh, wow.

reportedly. >> a speculative. >> 51 years old. >> what andrew is suggesting, i wonder if this is aed by to make sure they keep him in the family. keep him happy there and make sure they have the leadership transition too. >> paul jacobs is 51, he can be chairman. it was a family company, right? >> yeah. >> at 51, if i were paul jacobs, i'd be ready to go, chairman. flying around on one of your jets you were talking about. anyway -- >> thank you. >> we digress. you were saying, so you need to add more outlets? how would -- what would go really well for you? it's great to have -- that's one reason to buy a stock. if you can count on a dividend increase every year, you do the math and you can see that the share price should follow over time. what else has to go well? we are a growth company, we have

the most robust pipeline in united states and canada our company's ever had. it's about 350 million we plan to invest in the next 18 to 24 months building new outlet centers. we just opened one outside of washington, d.c. which opened close to 99% occupied and had over 250,000 visitors in the first weekend. >> i heard, steve, that was huge crowds you were getting at that one. talk to me about what's going on in terms of growth of new shopping centers. right now, almost nothing going on in the regional malls yet you're seeing all kinds of outlet centers opening up all over the country and very competitive. why do you think you have so many outlets opening up and not regional centers? >> we are the most profitable of most of our partners. they get the highest return on investment when they open in tanger outlets. that's one reason, tenant

demand. second, on the other side is consumer demand. and we are the place where they can do that. it's a social experience as steve mentioned before, it's all about the lifestyle. we have restaurants and fountains and free wi-fi on our site. >> do you think at some point it can denigrate the high-end brands if they open up too many of these? >> i don't think so. >> only about 160 to 170 factory outlets in the entire country compared to 1,100 regional malls. we have a long runway of growth ahead of ourselves. and as i said before, we're a growth company. designer and luxury brands open 1 to 2 new stores a year. if you look at the profits of our wonderful partners like coach and michael kors and polo

and underarmour, i can go down the list, you'll see they're very profitable in the outlets and continue to grow there. >> making a lot of good points there. i love malls, but if you can go direct to the store, you feel like you're getting -- you know what i mean? you don't have to go through. thank you, we appreciate it. up next, national retail federation chimes in on how retailing is going, state of retailers. at the top of the next hour, alan krueger will join us. "squawk box" will be right back. get a leg up on the trading day with the morning squawk news letter. go to our show page squawk.cnbc.com and sign up now. morning squawk is a snapshot of the day's top stories, guests and some fun water cooler stories that we'll be squawking about all morning long. sign up and get morning squawk delivered in your inbox every

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the double digit down days. the last two sessions. american international group, meanwhile, is in talks to sell its aircraft leasing business to air cap holdings, aig which was nearly wiped out as you know by those derivative bets in the financial crisis. been seeking for some time to sell international at least finance corp. to help repay the costs of a 2008 u.s. government bailout. and robert benmosche will be our guest host on monday. and he's in the aig -- >> in the ad. >> the commercials. >> a week or two ago. >> he took a lot of flak, too. >> yes, he did. he hung in there with personal issues going on at the same time. he was a real credit to -- >> benmosche is the reason this thing's turned around. >> it was definitely a lightning rod for a good reason on the front end. but we've been hearing that

there are still -- some things get written where you think will never have to be paid off. that was the problem with the 300-man unit up in connecticut, andrew. but then afterwards, there's some question as to the way it was handled because you need needed -- >> most people -- >> the government -- the government at that point wouldn't let them host sales conferences. >> and he stood up. >> he did and they wouldn't let them pay anyone. now he got the money back and -- >> look, i have a tremendous amount of respect. >> good, he's on monday, too. >> good. >> 8:00 a.m., will you be here? >> i'll be here. >> 6:00? >> on time. late last night the house of representatives passed the budget deal brokered earlier this week by congressman ryan and senator murray. and the deal is an early and much-needed holiday present for the consumers. our guest host steve saddove, he's, of course, here, as well, former saks. you're not wearing saks right now. we were discussing this.

>> we have so many great -- thousands of members, andrew, i've got to wear something from everyone. i've got everything on. >> look at this vest. >> different than a jacket. . very holiday. >> i brought you a tie, tote bags. talk about fashion today. >> this is a beautiful tie. >> going to share it. >> can you get close on what this is? >> it's a can kicker. >> a can kicker. uncle sam kicking the can. >> uncle sam kicking the fiscal can down the road. >> which he did this week. >> do you think the senate will follow suit? >> we know that the last three years this time of year, the congress has found a way to create some self-inflicted wound that sort of, you know stole the end of the year in terms of performance for consumers and investors. and, you know, the last thing we need are more self-inflicted wounds. we didn't raise taxes, we haven't layered on additional regulations, haven't decided to

shut down the government or threaten default on the debt ceiling. that's a great thing, but that's basic, you know, 101. let's stay out of our own way a little bit, at least. this group of leadership in washington hasn't been able to do that in three years. they've finally done. that's a good thing. >> last time when you the sequestrati sequestration, i saw an immediate effect in the sales. no question the consumer responds. >> how big of an impact? >> several percentage points in terms of immediate withdrawal the consumer feeling a little bit scared in terms of what's happening. how do we not come to a resolution? i think you would have seen the next couple of weeks being weaker. >> it's been a weird holiday season anyway, though, even with washington getting this deal done in past. i was stunned by the survey you took after black friday that showed the decline. haven't seen that in a long time. >> i watched steve's segment earlier this morning and more on later. and he was sort of picking up on

some of the same themes and yesterday, as well, that in spite of these indices we've seen, interest rates or low stock market, home prices are good that the so-called wealth effect hasn't translated into a lot of confidence. they'll do discretionary but can't seem to do both at the same time. but when the interest rates went up in the spring then people spent more on homes improvement and autos and pulled back on discretionary. the indices look good, but we talk about the two-track the recovery. there's that other segment of the population that doesn't feel good about that. >> is there a correlation between what they plan to spend? everybody says, going to tighten the belt a little bit. >> you watch. i mean -- you watch if you say you're spending less, i know you are -- >> when was the last time the

survey showed people were going to be spending less? >> not since the recession, since 2008 and 2009. it's unusual. >> one of the things that goes on relative to whether they will or won't spend, as you get to the end close to christmas, the promotions are getting bigger, inventory has to be cleared. the retailers have a lot of inventory out there. and they have -- >> they were planning -- >> they plan for a decent number, for decent growth, and you have to clear that inventory. and whether or not the consumers spend more is a lot related to what kind of deals they're going to see. >> where do you stand on the minimum wage issue? >> so the minimum wage is an issue that's gotten a lot of attention. and we think that it's the wrong policy conversation to have. we shouldn't be talking about policies. it's not 100%, but a significant number of surveys and studies have been done show increases will result in job losses. 50% of the people who earn the minimum wage, there's 3 1/2

million people out of workforce that earn the minimum wage. it's not an insignificant number, but we oughting to figure out ways to put those people to work not make it harder for small businesses to employ them. you've got retailers, they employ 42 million people, 95% of them have one location, half of them employ 50 people or fewer. you're going to tell those small businesses, it's going to cost you more to do what you want to do which is hire people and that's the wrong prescription for the economy. talk about let's get the tax code fixed, do an immigration deal, invest in infrastructure, trade deals. let's talk about that and not resign these people, okay, we're stuck at minimum wage. it's a starting wage. we probably all made a starting wage once upon a time. we don't want people to stay there forever. let's educate them and move them up. >> i'd love to come back. >> it's a longer conversation?

>> i know both of you would. >> or would you take higher minimum wage, slightly higher minimum wage and get some of these other things, too? if you could alleviate the inequalities for a long-term solution. they're playing us out. >> i'll come back. we'll talk about it. when we come back, we'll have more on qualcomm. also at the top of the hour, results from the all america survey. steve liesman reveals interesting points about the consumer and the state of the economy. plus, alan krueger. "squawk box" will be right back. i'm a careful investor. when you do what i do, you think about risk. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses.

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from the families of aig, happy holidays.

for more on this breaking story, we are joined by jon fortt, it is also about microsoft. >> absolutely, becky, over the past day or two, as a candidate for its next ceo. and it wouldn't be that out of the ordinary for microsoft. even though it's a software company to look at someone like mollenkopf. first of all, qualcomm executives have a decent track record.

sort of led that company to the point where it could get acquired by google. and qualcomm has been doing really well. mollenkopf led the most important unit for a long time. chief operating officer there for years. sort of the heir apparent, but i think it's pretty clear to me that this process at qualcomm was accelerated quite a bit. been talking to paul jacobs, e the -- well, still ceo at this point. a decent amount lately, and this is the sort of thing they would have telegraphed. it sort of seems to me, you know where there's burnt wood, there's been fire. and in this case, with those rumors and now very next day them announcing that mollenkopf will become ceo in mid march. >> we were pointing out that paul jacobs is only 51. he will be sticking around as

executive chairman, maybe this is just a way to solidify that progression of who will come next and make sure that mollenkopf -- >> absolutely, paul jacobs not going anywhere. he's got technical background, of course. he's been a very strong and loved leader over there. but it's interesting that they've made this move to make sure that they maintain their bench that can be really important, apparently a thing that microsoft perhaps didn't do quite as well given the fact as we've seen over the past couple of days that alan mulally, the talk about him has died down a bit. they're casting their net a bit wider and getting doors slammed in their faces. >> jon, thank you very much. still to come this morning,

alan krueger. and also the ceo of hsn, mindy grossman. plus, consumer price index numbers coming up. and the ceo of pga superstores. by the way, if you're looking for a ridiculous reading, you don't have to look further than the squawk blog. go to squawk@cnbc.com. read about chris hardwick. and andrew trying to figure out what a downward facing dog is. it's all in this week's edition. we'll be right back. r 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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welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernan, in studio sharing his thoughts with us this morning is steven saddove, former chairman and ceo of saks. but you remember everything you did almost every -- every decision you made. >> most of them, most of them. >> and you're still at the cutting edge. still talk to all these people, too. >> do still talk to everybody.

>> now you don't have to be -- >> not on the day-to-day. don't have to look at the daily sales. which is a great thing. >> you might be able to take a step back and give us the insight. >> hope so. have a little bit of fun. let's get you up to date with our headlines. the budget bill passed the house by a vote of 332 to 94. now the senate has to pass the bill in order for it to go to the president's desk. president obama has announced his support for the bill, as well. if it passes the senate, it's a done deal. a corporate shake-up. coca-cola says america's chief is leaving the beverage giant. once viewed as a potential successor is now out. these changes come amid growth issues. coca-cola north america will be headed by sandy douglas who will also continue in his role as chief officer. and qualcomm announcing its

board of directors has approved a succession plan for the chairman and ceo paul jacobs. steve mollenkopf was appointed to the board of directors. he'll continue to serve as the company's president and will take over as ceo at the beginning of march. jacobs will assume the role of executive chairman. >> qualcomm. >> that was pre-you. >> it was. it was -- that was the old building, wasn't it? >> yeah, that was the old building. there was a time when we talked about qualcomm so much that we taped this because it was a high-flyer. and as much as we played it, people should've subliminally listened and we would've done them a favor. when we were talking about it it was probably a $20 billion company, it's gone up six times in value. what are the odds of a december taper by the federal reserve at next week's policy meeting?

joining us to talk about this is alan krueger, princeton economics professor. former chairman of the president's council of economic advise advisers. i've already had to suffer through liesman saying i'm trying to get my kids into college. i've got to say i did talk about that, alan, and you graciously invited us for a tour. a tour does not mean anything, liesman. >> if blake wasn't as smart as she is, i would have a problem with this. but i think you should work the entire interview. >> when is a good weekend for you? when is a good weekend for you? in looking at your notes, can i call you professor just to emphasize you're at princeton? or do you like chairman? >> please call me alan. >> i'm going to call you alan. depending on where you sit, you can tell what you're going to say about things. you, i guess, alan are a guy that thinks stimulus might help. you've gone on record saying qe

has been effective and the one thing that we could do wrong here is get out too early which causes them to come back in and reverse course. so you don't think december would be a good time to do this, i imagine. >> yeah, i do think that qe has been effective. i think if you look at the timing and improvement in the economy, you can see that. if you look at what's happened to long-term interest rates once the fed indicated it might taper a bit sooner than expected. i think they have to balance the benefits against the costs. we're not seeing any signs of inflation heating up right now. and, of course, they also have to be concerned about financial stability. my advice would be that this is not symmetric. i would worry more about tapering too early rather than too late. certainly when it comes to inflation, that's something they can address down the road. but they are eventually going to have to taper. and they're also going to have to consider how they taper. do they cut back equally buying on treasuries and mortgage debt

or do they cut back treasuries more and mortgage debt more? >> the president and with you advising him really had some grand plans for more fiscal stimulus in terms of infrastructure. he calls it investment, i think. none of that seems like it's going to go forward at this point, yet you're happy with this budget deal that was signed. so both your side and the other side seem to -- were resigned to getting very little accomplished at this point. and you're happy about this but it doesn't do anything to create jobs other than get rid of some uncertainty. >> well, i think this deal will help a little bit. the president had plans for a grand bargain which would not only invest in our future but address our fiscal problems down the road. and this deal doesn't do that. on the other hand, this is the first time in quite some time that congress has overachieved. managed to strike a compromise, do it a little bit ahead of time. so that should hopefully provide

a little bit of confidence. and relieving, you know, good chunk of the sequester should reduce some of the fiscal drag we faced in 2013. >> you'd have to have lived the last two years to call this deal overachieving for congress. you would -- after what we've been through, i guess you can use that. that's staggering to think this is an overachievement for such an incremental step. >> yeah, just go back to what you were saying on your show. i don't think people were expecting december 13th to be a meaningful deadline. so in that sense, i think this is overachieving. but there's obviously much more work that congress should be doing. >> steve, you want to talk to alan. >> i'd love to talk to alan. are you done asking -- >> i'm not done. i should be sitting here and, you know, i'm -- >> alan, i want to get your take on growth. and i also want to get your take on is there a d-- between the

market and the fed. they don't see as that big of a deal, whereas the market, seems like, you know, it's the end of the world. >> well, sometimes the market overreacts. and it might be the case given the overreaction over the summer that when the fed does start on its path of tapering, there'll be less reaction because some of that is built in. in terms of the economy, you know, i think we got this exactly right. we predicted in mid session review that the economy would grow about 2.6% if we got rid of the sequester, about 2% rate in 2013 with the sequester in place. and that's about where it's been. i think that we'll see a pick up next year because the head winds are starting to fade. but i think it'll be gradual. hopefully we'll see growth in the 3% range instead of the 2% range in 2014. >> did you bring stan fisher's name to president obama? >> you know, as a good adviser,

i never reveal the advice that i gave. i can tell you, however, that stan would be terrific if he were willing to do it and if he is nominated. >> take that as a yes. >> as i said, i never deal advice, that's the hallmark of a good adviser. i could also advise joe that the spring is a very nice time to visit princeton. >> beautiful. he's 13, we're keeping our options open. can you guarantee me that her private sector outlook could be maintained at your school, alan? >> she'll be exposed to a diverse set of views. look at members of the supreme court who went to princeton. >> i'm worried about the entire ivy league. i've gone with a fine-tooth comb and i've come up with orel roberts. >> thanks for playing along.

maybe some day. >> krugman. >> yeah, krugman was down there. that's right. yeah, great. super. anyway, alan, we appreciate your time today and we'll call this the overachieving for congress. >> that really, i think is the statement of the morning. >> it's a commentary on the last three or four years. >> just doing a budget deal. >> just getting a budget deal done. >> that's like if i get up and actually get dressed in the morning. >> everybody's view. i think we were all like, oh, my god. >> something's happened. >> yeah, when you stop hitting your head against the wall. we've got a little bit of news. we want steve's view on this. amazon getting set to take on warehouse retailers like costco and sam's club in 2014. usa today reporting the online retailer will be launching new business for amazon prime members called pantry selling about 2,000 common grocery items and packaged goods. >> so they just got into fashion, actually. in the past year in a big way.

>> big way. >> they're trying to do supermarkets in certain cities, seattle and one or two other places. >> right. >> this seems like it could be made available more broadly. >> absolutely. and think about some of the big, bulky items if you talk about paper goods or dog food. diapers. >> shipping -- >> not drones. >> the drones will come. >> whatever you can cram into a box. that fits into the box and weighs a certain amount goes. i have to say, i don't know it's the best way of going about it. i'm already using a couple of different online groecers and i you can bring me everything i want. >> my guess is it's a starting point. >> and becomes what? where is this all going? >> i think they're going to take over -- basically setting the standard. think about for every category they're setting the standard in terms of consumers' expectations and performance. so everybody's now -- >> but they're also expecting prices, low prices. >> that's part of the

performance. >> ultimately that won't work for anybody including them. >> well, at some point -- >> we're going to get used to this great service and at some point we'll have to pay for it in a major way. >> that's a major problem, they're getting their valuation without making any money, everybody else is dealing with the valuations except they're making the money and the margins are getting squeezed. a big phenomena with free returns. amazon's creating a new paradigm. >> what does a return cost? >> several dollars. >> minimum? >> oh, yeah, absolutely. >> in some cases, much more. >> apparel, you can have 30%, 40% return rates. >> thank you for that. >> you returned those tommy johns boxers, which -- >> i have never -- i would never return them ever. i'm wearing my tommy john undershirt right now. >> you haven't returned -- >> this is the greatest undershirt in the history -- >> i would say anything you ever

get from any online catalog, make sure you wash it. i've seen it. i've seen -- >> make sure you wash it once? >> yeah, i went through victoria's secret years ago and they have people whose job it is to sniff everything as it comes back in. >> this squawkward moment was -- >> like, honestly, wash stuff when you get it through any of the things. >> it gives liesman an excuse to sniff. >> that was a low -- when we come back, while the malls may take a hit along the east coast thanks to winter storm electra, hsn could see a boost in sales this weekend. the company's ceo will join us right after this. and later, golf business and the holidays, the ceo of pga superstore, and home depot ceo will be joining us. mine was earned orbiting the moon in 1971.

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♪ welcome back to "squawk box." live shots at rockefeller center. watch natural gas prices today after prices log their highest close in three years as freezing temperatures boosted the demand outlook for the heating fuel. lifting prices for a fourth straight season. people along the east coast may be staying home this weekend as another winter storm approaches. but that doesn't mean the shopping has stopped. hsn is the pioneer of home shopping. it's now driving growth through the web, as well. joining us right now is mindy grossman, the ceo of the network. thank you so much for being here. >> good morning. >> we've been talking about how this has been the year of the online retailer. hsn was the online retailer before there was an internet. what have you seen this year? >> well, we've actually seen

four major themes this holiday season. one is value. and as you know, we have eight businesses from hsn all the way to very high-end businesses. and regardless of the income of the customer, they're educated, they're looking for value. i think, two, it's definitely to your point, it's the year of digital and mobile. customers can search for anything, look for anything, buy anything. and you have to be there mobile first. and i think third, what they're spending on. we're definitely, i heard matt talk earlier, home, technology, home improvement has definitely been a focus and it's been a little bit more selective on the real discretionary such as apparel and jewelry. and, fourth, it's really about retailers creating an experience to get customers to come to them because it is a race for share of wallet. >> so you are racing to get the shoppers out there trying to convince them to spend their

money on your platforms. does that mean you have to offer deep discounts if they're also looking for value along the way? >> well, i think where we're focused is on giving them proprietary products. so 70% to 80% of all the products we sell by brand are exclusive to us. so how do we give them the best product at the best value? because at the end of the day, that's what the consumer's looking for. >> you know, one thing we'd been talking about with steve, steve saddove, customers are trained to wait for these sales, to wait for these discounts, to wait for big things. have you found that same situation? >> you know, our business is very different. our store changes every day. it's beholden to us to be able to give them that value, that store, that differentiated product. and that's what we're seeing. and it could be products such as technology from hp or beatz or

nutribullet, or over thanksgiving weekend, we sold in one day over 100,000 pair of jeans or, you know, any of those products. so we are geared 365 days a year to create as much value and as much excitement and as much impulse as possible. and continue to do that throughout the holiday season. >> i was thinking about hsn and thinking about, wow i remember when it was revolutionary to shop on tv. and then the internet came along and i wondered how it would work. it's like everything. it's the content you're bringing. things with mary j. blije, all the proprietary stuff, so everything is melding together. it's weird, isn't it? >> right. to your point, that differentiated content married to commerce and creating a community is so important. and i like to say we're a 36-year-old company who is more

relevant today than any time in our history because nothing's linear anymore. creating a 360-degree network of experiences and we're not bifurcated by channel, not linear. our whole focus is to create inspiring content for people to want to buy product. it's great product, great story and great story tellers. and we sit at the intersection of media, of technology and of retail and that's what's exciting today. >> and keith urban guitars, he's so cute, too. >> he -- that was unbelievable. >> let me talk about keith, will you? >> sorry. >> no, go ahead. >> hey, mindy, one of the things we've been talking a lot about is the change in the internet and the role it's having. you guys have been at the forefront in mobility in terms of mobile sales. i think that, you know, that change is also happening. just talk a little bit about what you see in terms of mobile sales. >> it's not just the season of

mobile, we're in the landscape of mobile. and at the end of the third quarter, mobile is 12% of our total sales. and that number is increasing. on black friday, for example, mobile penetration to digital for the first time was over 50%. and i think that all retailers today have to be thinking mobile first back as opposed to an end state. because it is the most personal device anyone has. >> are people watching tv and then buying literally on their phone while they're watching? or is it the experience of literally just buying on the phone independent of your tv? >> it's a combination of all of those things. mobile for our business is perfect because it's about impulse. we can serve up mobile specific deals, communicate. >> it's not really about tv. it's really about an ordering mechanism. so 40% of our business is

transacted through a digital platform. and even in the other 60%, we have shop by remote in 36 million homes. >> mindy, thank you so much for joining us. happy holidays. >> thank you. happy holidays. still to come, a lot more, we're going to talk golf, gifts and a lot more in a moment. we're back in a sec. announcer ] my client gloria has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. tdd#: 1-800-345-2550 life inspires your trading. wells fargo advisors. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities.

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the san diego chargers shocking. this is a shock. i didn't even see this, the denver broncos in denver last night. the chargers offering one of the biggest upsets of the season. the bengals beat the chargers. beating the broncos 27-20. that's why they play these games. the victory gives the chargers playoff hopes, which they didn't have, really that much. gives them a boost while putting denver's lock on the number one seed now in some serious jeopardy. >> any given sunday. >> or monday or thursday. >> but most important day is sunday and most important time is sunday night. >> that's right. when we come back, breaking economic numbers. consumer price index for november. take a look at the u.s. equity futures after three down days, you finally see some green arrows. dow futures up 40 points above fair value. s&p up by seven. "squawk box" will be right back. ya know, with new fedex one rate

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welcome back to "squawk box" on cnbc on this friday the 13th, by the way. >> it is, there's a lot of

those, though. >> how many are there, actually? >> a couple a year. >> i don't know. there's a 1 in 7 chance -- i don't know. >> there's a lot. we are just a minute away, actually. november ppi, before we do that, though, let's take a quick look at the futures to see how things are setting themselves up for the day. actually, not bad. dow looks like it would open up about 37 points higher. s&p 500 up about six points. also the nasdaq closer by about 15 points. take a look at the ten-year, 2.866. want to get a mortgage? how do you feel? >> there's a 1 in 7 chance -- >> you're back -- >> yeah, i am. no, there's a 1 in 7 chance that a 13th could be a friday, i think. >> i think that's right. >> and there's also, there's a fear of the number 13, and -- >> on average, there's a friday 13th once every 212.5 days. >> that's it?

that's a lot more than i thought. >> you can't have as many as three in one year. >> you can have as many as three -- >> i feel like we've had a lot, recently. >> two this year. >> there's a fear of the number 13 and the name for the fear of friday the 13th. >> freddy was what i was worried about. >> we had krueger on. >> we've got to go to rick santelli standing by at the cme with the numbers, please. what does freddy krueger have to say? >> jason. >> well, we are down 1/10 on ppi. down 1/10. the systems are freaking out on freaky friday, but ppi isn't bad news, it's pretty close to expectations and now i see as you strip out the all-important food and energy we are up, which matches expectations. these are the numbers that grab everyone's attention on a month over month, excuse me,

year-over-year headline up .7. both of those numbers are lighter than expectations. it's double our last look which was .3. on the inflation, you can draw your own conclusions, you had alan krueger. listen, we can do this forever because we don't see inflation. maybe they should study the '70s the way they think they studied the depression and figure out when you plant seeds maybe we need a model of how long it takes them to grow or how far in the ground they get. you can't extract them. 2.86 remains the yield. everybody continues to monitor that. it seems as though the nervous nelly has been equities. whether it's the budget or how the budget figures into the taper, i find it absolutely amazing when you look at the timing of the weakness of equities, many say, well, it's just year-end profits. i'm sure it is. but the trigger to take them is, what, significant. back to you.

>> thank you very much. rick santelli. let's get over to steve liesman. revealing some surprising trends in housing. steve is here with the results. >> yeah, and we told you last hour that expectations for holiday spending are down and down quite sharply in our survey, about 9%. then when we look inside the survey about people's expectations for key economic indicators, they're actually up pretty decently. let's take a look. first over here, the expectations for wage gains, inflation and housing gains. you can see on an average, wage expectations are up over last year. inflation expectations are down and housing gains up quite a bit compared to a year ago. and quickly, here are the fourth quarter numbers we registered. 3.3% expected next year. 2.8% on inflation, down one of the lower numbers we've seen in quite a while on housing. not as good as it was in '07. but if you're expecting higher wages and housing, you think you would be spending more. again, that's not what we found.

10%, the lowest number of people expecting a decrease in the home value. we've got to come back here, march 2007 when it was 9%. what's the different? go on up -- he's the camera guy. expected home price gains, now come over here, and you can see we only expect 34%. so that's the difference. more people expecting it to be the same. but in terms of the pessimism about home values, that's back down to '07 values. take a look at this nice thing here. how much does it matter if your home price is going to increase? well, here's the average spending by those who say their home value will increase. going to stay the same, 686. one of the things we've found is how much home values go up is a key indicator on the economy and on spending. hooergs the survey from december

of each of these years about people's expectations or rating of the economy. 15% say it's good. that's very slightly up, 83% say it's fair. let's compare it with '08. we've made progress, only 4% back in '08 thought it was excellent or good. just compare again to here, 83% and now let's compare it to '07, which we think is probably the normal. 72% thought it was fair. come out again and what you'll see is we have made progress from the depths of the recession, but we still remain below where we were before the financial crisis. joe, that's the story. back to you. >> steve, i just -- people think that he's holding a camera. >> no, he's doing unbelievable. this is art. this is art. >> no, look at that thing, it's like -- >> let's bring him over here so everybody can get -- there's the steady cam and he's doing this and over here and over there. >> they take it for granted. >> it's unbelievable and he

follows the stuff like he's an economist. i say stek over here, stek over there. >> how much does that weigh? >> it's heavy. >> the guy is built. >> it's heavy, he's got a big brace. >> i put it on one time and i teetered over in my heels. >> totally steady. >> he wants the camera on him, stek. that is what he's saying. >> almost looks like you have a bullet proof vest on. >> without him, we couldn't do this. >> about the methodology, tell me how many -- >> 800 million americans surveyed across the country. it was done in the week after thanksgiving weekend. we started on the tuesday and the monday. >> a little bit better in terms of what they saw in washington during that time frame, you did see a deal put together after that was surveyed. >> we have in the past when there were big events, becky, you might remember, we've gone in the field again in december. and remember that one statistic from the last report which was 26% said they would spend even less they planned a month ago so

we were picking up the debt ceiling debate, i wonder now if there may be a chance things would be a little better. housing gains and wage gains speak to better spending but did not pick it up on the holiday spending. >> you have a stock market gone up over the course of the year. and to see such poor -- if you want to call it poor attitudes on the parts of the consumer. just surprising that you don't see a little bit more optimism. >> particularly when the job picture, at least according to the official numbers we get. >> they've ticked up. >> does seem to be improving. >> one of the things we have not seen and economists are talking about, absence of wealth effect from all the wealth. household net worth reaching all time highs still surging on stock values and housing values. what's not happening, it appears, is they're taking that wealth and turning it into sales at retail stores. >> thank you. >> pleasure. we'll be back all day. you can read about the survey

online. and if you don't like my take on it, we posted the whole survey. you can get your own take by reading the results. >> and thank you, stek, as well. >> if you've ever seen home movies the way -- >> he keeps it very steady. he's steady. >> that's true, too. >> steady eddie. >> freddy krueger. >> jason. >> you're pathetic. anyway, arthur blank's insatiable appetite for growth behind one of his latest investments. the pga superstore opening the 19th location in new york. the stores are affectionately called the home depot of golf. joining us with more on the expansion, dick sullivan ceo of pga tour super store and arthur blank, controlling owner and chairman of the superstore. also one of the co-founders of home depot and owner of the falcons of the atlanta falcons. welcome. it's good to see you.

i've seen you out on a course before. >> not of late. >> yeah, it was about five, six, seven years ago. you played some course down in florida. maybe a trump course. >> yeah. yeah. >> anyway, can i buy clubs? can you fit me for clubs? will you show my crappy swing on a -- you'll take a picture of it -- >> i've seen your swing, it's not so crappy. >> it depends. >> we'll take care of you. >> i think the description, joe, i think it was joe or andrew, gave of our stores is accurate. it's the home depot for golfers. in terms of value and service and service levels and things of that nature, these are unique stores, average about 50,000 square feet. we have 19 of these stores in 13 markets with a dominant retailer in the market we compete in. and if you have interest in golf or tennis, you want one of our stores. we're thrilled with the

relationship. >> you must have a net in there, too. >> we have a lot of nets. simulators, golf instructors you name it, we have it. think of it scale to size, probably 15 to 20 times the traditional golf specialty store. so these are big stores that offer a great line of service. >> and you can -- blank, he asked me what i need. as i walk in, someone's directing me where i need to go. that's important. >> well, this is really the same thing as what we had at home depot. we separate ourselves because of customer service. and i think as mindy said earlier, it's all about the experience and what we provide as arthur said is probably five times, ten times the normal store. and all this technology. we cannot only fit you for golf clubs and make sure you're

getting the right golf clubs, but for a golf ball. some people have a hard time understanding that. but based on how you swing, we'll fit you for golf balls. that's the level of technology that we have to improve your game. >> that requires you to hit the way everything consistently, though. that's the problem. you couldn't fit me because i would screw it up every time. >> we'll give you a bigger golf club. >> joe just wants to know which logo. >> i've got to know which way the ball's going to spin because i need to know if to work it left to right. left right, left right, which way it's headed. what is the -- what's in it for the pga tour? you're allowed to call it pga tour golf? >> yeah, we have a 50-year license and we have a relationship all the way to the top. and in addition right now, we have 19 brick and mortar stores. we'll have 50 stores by 2018. we are the worldwide provider

ecommerce for the pga tour. we provide worldwide all of the purchases for the pga tour. that's a terrific opportunity for us to grow our business beyond the growth of stores. >> you're opening one in long island so we can go out and try it. but one of the questions i have is golf in general is declining by about 5% a year rounds played. >> really? >> yeah. you've got this tee it forward. trying to get more people involved in golfing. as you want to be a category killer and really dominate the -- dominate golf, how do you get people more involved in the game? i think the growth in the game has got to be key to the growth in the store. >> it's a great question. since 2007, obviously we've talked a lot about it today, there's been a lot of things that have declined. we did see an uptick in 2012. an uptick in golf rounds in 2012. this year is actually -- some of it has to do with weather. we have seen the decline.

it is so important where the decline has become is between the 18 and 34-year-old kids. the older segment is still playing as much golf as they were playing back in the 2000s. the amount of golf courses, obviously, in the '90s and 2000s were growing at an incredible pace. it's important for us to make it easier, make it more affordable. and the things we're doing at retail. and it's time. it's money, it's time and it's difficult. two of those elements we can provide at our store by providing better equipment. we gave over 10,000 golf lessons in our stores last year. >> best to have a wife that plays and kids that play. we're going to try and get through the economy, a little politics and maybe a little football if we can. how do you see the economy right now? >> me? i think it's getting better. i think it's improving. i think it's been a very slow emerging, obviously, you know, since 2008. but i would say even in golf it's getting better. but it is -- it is slow.

and i think the consumer's mind has changed for the foreseeable future. i think a lot of the orientation towards value. i think at every level of retail, you have to fight harder today for dollars. we certainly see that at home depot they certainly see that. they've had great success and incredibly proud of the job frank blake continues to do. but the business is there. we are rolling up golf retailing in america today. we'll double in size every three years. so we're thrilled about where we are. but we have to fight hard for the dollars today. >> and i've needled you before. >> it wouldn't be the first time. >> i know. ken langone, bernie marcus, and you. what were you? the token liberal democrat. are you still a democrat, arthur? >> i think i was. >> are you still? >> well, i -- you know what, i'm somewhat balanced, actually. really depends on the issues. people sometimes if they wanted to characterize me, they will

that way. i think it depends on the issues. i tend to be more liberal socially. >> not grabbing it with both hands anymore. well, i am, sort of, it depends on the individual. >> well, it depends on the issue and the person. but i think socially i'm more liberal and financially probably more conservative. >> stick to your guns. >> i am. >> bernie and ken aren't going to change, that's for sure. >> they haven't changed. and, you know, this is the only time i've been on your show. actually this is the anniversary, two years ago i was on your show for the first time. two years ago today. >> i remember talking about that. >> i don't have ken and bernie yelling at me. >> i know, they were slapping you down. >> who do you think -- it's so weird, isn't it? denver gets beat by san diego. you've got to play every week. who looks really good? the top four? who do you think? >> well, i think the top two. i think the top four on the afc side. i like new england. and i like the broncos. on the nfc side, i like seattle.

and i think the 49ers are going to be there at the end, as well. if i had to pick a top two, which is really tough to pick, i would probably go with the broncos. i think peyton has had a hot hand all yearlong. my guess is probably playing against seattle. seattle's got a great defense and a young quarterback who knows how to move the ball. >> are you going to -- andrew can set you up with long underwear if you want to come to the super bowl. >> we'll be at the super bowl. yes, we're going to be there. not sure we're going to stay for the game. it's interesting, all the owners, we have meetings during that week and parties and things of that nature. and then on sunday, on sunday if you're not playing in the game, you're not so sure you want to be there. but i'm from new york originally, i love new york. >> should stop in here before the game and come on if you're in town. maybe -- maybe you know someone who has got one of those private boxes. do you know anybody up here in the new york area? >> well, we actually have a

suite for the game. if we do stay for the game -- >> your commercial flight up here in coach, maybe you can bribe someone to let you in one of their boxes. >> we can give him some hot cocoa. >> he's a democrat. >> you know what happens -- >> come up in your lib jet. >> just because ken and bernie are not on with me doesn't mean you have free shot at me, does it? maybe it does, i don't know. becky, you've got to help me. >> arthur, you've got to come in the studio, then you can hold your own right here. >> you're right, i can. i appreciate you offering that. >> he's in studio, i wouldn't do it. i'd be too afraid. anyway, guys, thanks. and i want to go -- is there -- where's my closest one? >> one here. down the street here. >> yeah, i do know that. >> and wesbury opens on saturday. >> got to open one in west chester. >> we're looking up there, as well. >> dick sullivan, thank you. and arthur, we'll see you at super bowl time if you get in up here. thanks for playing along, i

appreciate it. >> thanks, andrew. >> we'll leave the lights on for you if you ever want to -- >> thank you. i appreciate that. >> and hot cocoa. >> he's talking about his big tent. >> yeah, my big tent. we do have much more "squawk box" ahead. including the word from the floor with jim cramer. and join me this sunday evening at 7:30 p.m. eastern time here on cnbc. i'll be hosting "on the money." check your local listing. "squawk box" will be right back. x and pay one flat rate. i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex.

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welcome back to "squawk box," everyone. the futures are indicated higher. they had been up by 40 points above fair value. this, again, is coming after three days of declines for the dow. it is friday is a tapeer on its way? we get you ready for a fed decision later in the week.

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about qualcomm 15 years ago. that's going to put 100% in there. right, jim? >> wahl, i mean, qualcomm's charms. if you remember even the last quarter they didn't have good things to say. it doesn't matter. the eye growth guys cannot stay away from qualcomm. they're looking at 4g, it doesn't matter. it is an anointed stock for 2014. it kind of aggravating, i think. >> yeah. interesting the way it's working. i guess you got to consider that paul jacobs probably grew up with that company around him all the time. 51 is okay to beat, chairman, don't you think, if you need to keep this other guy, if someone's going to steal him? >> i said there's got to be some nfl team that can buy him, right? >> once you got a stadium, why do you still want to go into work every day as -- i don't know. have you made a bid on philadelphia stadium, tim?

-- jim? >> no, t rk, i have no. sunday night they flexed us, which means every kid you were going to take to the game you have to say, hey, listen, sorry. you have to get a whole new group of people to go. >> who do they play? >> we play the bears pipts going to be a really good game. both teams need to win. there's a lot of teams that it really doesn't matter right now. they're playing. i know what arthur was saying about the niners and seattle. seattle is the best team out there but i think the team that no one wants to play right now is the eagles. >> we're going to have russell on here one of these days. we have a connection there. >> would you really? >> guest host. >> i agree. >> thanks, jim. we'll see you in a few minutes. >> when we come back, we have a retail roundup with former sachs chairman and ceo scott sadove. stick around.

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. all right, let's get back to our guest host, steve sadove. steve, what do you think? holiday season, is it going to be good? bad. what would you grade this? >> i think it's going to be a b to a c. the consumer is going to be out there shopping. they're going to get a lot of great deals. there's going to be inventory in

the system that's going to need to be promoted so the customer will find great deals at the end. >> if the customer is finding great deals and they're seeing the sales come through, that doesn't necessarily mean great news for the retailers. >> that's why you're seeing early warnings that come down. i don't think you expect to see great earnings numbers out of the fourth quarter. but it's going to be margin pressure. >> do you want to talk about the turn around -- or not? you haven't talked about it. you're on the board. >> i joined the board about four weeks ago. i think mike ullman and his people are in the middle of one of the great turn arounds that have to go on. the company was really beat up, went through a terrible period during that year and a half, ron johnson run. >> what can jcpenney be? two are three years from now if we're back here talking about it, what is it? >> i think there's a spot in between a kohl's and macy's for jcpenney. i think it's about value,

differentiatation. what jcpenney has to do is get back on track and show it can provide those. >> happy friday the 13th, everybody. >> it's fine, it's good. >> "squawk on the street" begins right now. good morning and welcome to "squawk on the street." i'm david faber with jim cramer. we're live from the new york stock exchange. carl quintanilla has a well-earned day off. take a look at the futures here. we'll see if we can actually end up on this friday the 13th. turn to -- my colleague makes a face. you can't see it. turn to the 10-year now. where we been? right around the 2.8 mark, there we are,