you, united air flight divert the this week after a heats argument between passengers about seat spaces and a gadget that i love called the knee defender. it attaches to the tray table, prevents the person in front of them from reclining. a man was using that to stop a woman in front of him from recli reclining, and then the woman threw a cup of water at him, and that is the story. thank you for being here. appreciate it. join us tomorrow. time for "squawk on the street." good morning, welcome to "squawk on the street," carl and david are off, and latest home price index released, and the results are at the bottom of the screen. hour to go before opening bell. how are the futures shaping up

today? s&p, of course, over 2,000 for the first time yesterday on an intraday basis, unable to close there, however, but that's how the picture looks, dow up, s&p up slightly as is the nasdaq, implied open as such. road map begins today with the deal made official. burger king buying horton's, and what will the governments here and in canada have to say? best buy earnings beat, sales short as the ceo sells or says what else, blame amazon. history on wall street, the s&p 2,000 and another all-time record close, futures kd indicating another higher open. the big talker this morning, burger king buying the coffee chain tim horton's in a cash and stock deal valued at $11 billion. the combined company will be based in canada, a move to draw scrutiny from u.s. lawmakers opposed to tax inversion. buffet committed $3 billion in

prefer equity financing, but will not participate in the operation of the combined company. this is the talker this morning, jim, after yesterday, speculation a deal was close, and now it's official. >> tell me when starrbucks merges with chipolte. donuts, wow, way a great business, burger king, that's going to make this? that's an inogranic and unnatural burger. the food chain meets donuts, can canadian hockey player, tim horton, trying to diversifdiver tried u.s. here. warren buffet is the winner here. the idea we have to pile into the stock up another eight today with the terms. you know what? maybe we have to walk it back a little and say, does this company, the new tim horton, does it deserve the same multiple as starbucks with a better operation than tim horton growing at 7% and demonstrated worldwide? i hate to throw cold water on

story of the day, but step back and recognize burger king is a second rate outfit that went on because it just doesn't disappoint like we thought, and horton, see if they pull it off, donuts, yeah, crispy cream, that's a winner. look at -- we have to put these things in context, scott. >> if i say, well, hey, jim, it's cost cutting, global expansion, taking on mcdonalds in breakfast, does that help you take on mcdonalds? >> warren's looking at cuons. i think yum, unchanged for two years, one roof strategy. that's pizza hut, taco bell, that's good for you, right? kfc, loving that in china. not. all i say when you put fast food together with donuts, you end up with what our kids will not

have, and it's time to start focusing on the fundamentals, not the taxes because you can make really, really good dog food commercials, and if the dogs won't eat it, who cares? >> well, they have a cronut here in new york, fronut, a fries and donut, dipping donuts in ketchup? >> they can integrate diet pills into the donut pills. those stocks have been bad. there's a new formula that lower cholesterol that's going to be announced this week. you merge that with horton's and burger king, and you got a power house. >> the point is if you look at what the american pal let has gone towards, it's chipolte, fast casual places. >> these are desperate moves. yes, blow it out, terrific, but these are moves born on the idea that this kind of food is no

longer what they want. now, should garden have done something like this? red lobster, that did not work. the culture is changing worldwide, coke coca says, what does this neen? they did green mountain and monster, but grams that are out of sink with what millennials want, and they are not -- you can mermg them all together, try to blow them out, and in the end, burger sing is -- food chape, and the food chain is viewed around the world as something you don't want to be a part of thanks to which i poll they's wide ranging series of the attacks on the food chain. >> i saw a tweet of yours at 6:31 a.m. >> not the 3:54 a.m.? >> i started looking later than that. the love aware with burger king makes the blood boil as burger king is a second rate mcdonald's.

horton's had one good quarter. this 1 out of hand now. >> it's exciting. as soon as buffet got involved, pricing good, and people can talk about taxes, burger king pay the same tax in canada as here, and inversionings are hot to have a view on politics, not like picking stocks, but what i'm saying is take profits in horton, please. take profits. it's a good deal. >> talk this morning, questions as because of buffet's financing as to whether he now supports tax inversions. warren buffet condones warren buffet getting a good deal. we don't know the terms, have yet to find out, but you assume they are good terms. >> uniquely canadian company, and there are deals that are cross border deals, not every deal is driven by taxes, but we talk about it because you have a view on taxes, and the president might get involved, and jack lew has a view, and taxes are interesting because we pay them. i'm interested about the

fundamentals of the combined company and the idea that you blow out tim horton's worldwide, why not blown out already? starbucks figured out how to blow it out, dunkin has nol, and krispy kreme tried. they are concepts. hedge funds trying to make profit. burger king stock is okay, under priced from the beginning because people didn't understand the deal, but i want growth. i want growth. now, cellgene gives me growth. i do not get growth from burger king. >> if you're mcdonalds, you're not shaking? >> everyone waits for a transaction, a financial engineering to get out of the rut. >> that's what people called burger king, financial engineering story, nothing more. >> if it had 8% growth, that

would interest me. starbucks has 8 % growth, and it's done nothing. i mean i want growth. the market wants growth. all we care about is growth. this transaction creates excitement, get a great tuchlt to sell horton at a higher price than you should get. >> how do you view mcdonald's in the prism of the deal? >> i think they have to do something, but i'm suggesting that what they end up doing is something financial because they got a great balance sheet and real estate, and i just think that there is -- the company's time is coming. because the food chain is spoiled, and the whole notion of fast food is viewed as -- web changed a lot. we can see how things are, and

that is what matters. >> there's a couple calls, find out frvtly what the buffet terms are. >> that i care about. >> god stock here. >> the deal with 3g, 5% of the company. >> what a deal. >> who knows if it's similar to that. make the assumption it will be. a couple calls, one with the analyst and media. >> amazon buys a site involved with gaming, and people are excited. it's got growth. the market loves growth. maybe a 5% one time only comp and a flat to 1% comp. that's going to interest us for a couple days, and then horton's done, and you go away. cell gene marches to 120 because they earn 10 bucks in 2016. give it a multiple, at least.

merck's like mcdonalds. yield plays. those are plays -- i have not mentioned yellen yet because you have to mention yellen. >> in the context of the morning programming ideas, you do have some really incredible -- as the yield curve turns, i just think what happens is that we got a little caught up here. the consumer product stories are yellen oriented, durable goods skew by aircraft, but s&p 2,000, front and center. s&p 2,000, the companies that got us there, it's growth, okay? some of the terminal companies, in other words, buy a company, get rid of it, heinz was part of it, but they don't exist anymore. i want to talk about s&p 2,000 because that's what people need to recognize because there's so much money being made. we have to talk about money being made. it's good. i like money. >> the usa today poses today, should s&p 2,000 be cheered or

feared? is it a signal to sell, or yet another indication how fast and how high the market's gone? >> enter 2001, 2007, and 2009, you fear every day because too many people lost a lot of money. that's fine. build in the fear. i think that we have to be on the hunch for the next interim mun. you see kite. i we want on the site, you -- it's a stage one, one and a half trial, but i want to find -- i don't want to find burger king, but i want to find intermune. they are 300% gain. i like that. that puts your kid through college, okay? that puts your kids through college, not the whopper. >> there's conversation about financial engineering having gotten the market to where it is, right? >> now, look -- >> if that is slowing, data

suggests it is -- >> i hope it is slowing when the stock is up that much, still buy it? >> what -- >> dividends. >> where does the rally go if companies are buying back less stock if that was a catalyst? >> what about earnings, leverage on earnings, nonresidential construction going, you get -- i am seeing auto still good, i think the aerospace cycle, the rail cycle, the truck sicycle, l sales motivated. the retail cycle. don't forget, macy's disappointed. all-time high yesterday. jcpenney, not that good, stocks coming back. with the definite exception of sears -- look at best buy. i love -- >> earnings mixed. >> i'm in it to make money, a release saying, sell our stock.

i think it says, we are doing badly, sell our stock, getting beaten by amazon. oh, no, that's not a closed text reading, but that's basically what it says, how long before it goes up because private equity comes in? it's a monster breathing all over the place whether it's private equity, activist, earnings, or sales. all the components, and, yes, low feds funds rate make it so we have s&p 2,000. it's all a mosaic. pull one piece out, another piece replaces it. >> all right. >> okay? >> much more coming up. >> you got that? >> i got it. >> all right? >> i got it. amazon is saying game on after agreeing to buy popular video game streaming website, twitch, how jeff beso's company plans to capitalizes on tens of millions of viewers, and building on golf with tim finchem.

>> paulfireman. >> has a nice course, carving it out there. >> i've been in the rough too much there, though. a look at futures, more "squawk on the street" or as the yield curve turns. >> tired of it going higher? is that the thing? i'm not tired of making money. >> back after this live from post nine. i had 3 different 401(k)s. e*trade offers rollover options and a retirement planning calculator. now i know "when" i'm going to retire. not "if." in a we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

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welcome back, amazon confirms they agreed to buy twitch interactive for $970

million in catch. twitch broadcasts video game sessions had 535 -- 55 million users last month. amazon says they expect to close the transaction by the end of the year, and amazon's release announced the deal, and bezos says, like twitch, we obsess over customers and think differently and looking forward to learn from them and build faster services for the gaming community. jim, one of the biggest deals or biggest deal amson's done. >> people love gaming, that's why ea is a good stock, and take 2, had a stake in the company, find out how much they had in it. stocks shouldn't be down. it's an obsession for games. that's why i think that there's so much value in microsoft. i like the deal because anything that focuses on this -- the generation that is not going to burger king loves gaming. that's what they do.

it's i think a little limited, but it's what they do. >> from a stock stand point, people started to scrutinize what's taking place in amazon more than ever before in terms of profitability and spending. this play into that argument? >> well, i think that any -- i think that -- it's interesting. google talk baht company, and people were like, oh, i hope google do you want do it. amazon has no earnings, so they do whatever they want. i think that amazon -- i hear -- people have turned back. remember there was a pocket where amazon said we're going to spend heavily, india, last time china, and analysts turned on it, now looking back at amazon, sell netflix because "orange is the new black" didn't win a lot. they are the same stock. >> the emmy's the signal? >> they are the same stock. these are stocks born of hope. tesla has earnings, you know, netflix has earnings.

no, they are stocks that all the markets in the last 32 years, have stocks that capture the fans, gaming, amazon, i love that, a lot of subscribers, twitch, like netflix because of the subscribers, tesla because of the envy. good to have one of the stocks, amazon's fine. >> commentary as i read through it on the services is that, you know, it's unique, unique users are what everybody is after. >> yes. >> with cheap content. absolutely great. my mind got changed. >> unique content. >> i was negative on amazon, and then i watch faber's documentary. faber's documentary is basically how amazon, because of the web services business, is really able to take what it wants from the consumer. when i read through best buy's release, i don't want to go against amazon because best buy says you can't stop amazon, and i hear omni channel, what brick

and people say, they are just trying to keep up with amazon, just, like, newspapers, spending to keep up with online newspapers. good luck. the more you spend, the worst the bricks do. when you go to a store, what happens is you go buy a game, and you come home with a gopro. you don't if you go to best buy to search prices. retail is all about seduction, but if you did not go to -- >> why do you think they have candy by the cash register? >> isn't that true? >> right. >> dollar tree has their own candy aisle. >> you can't check out without looking at the candy and grabbing it, right? >> big lots, the sugar babies, big lots, why do i need candy from big lots? >> candy for grownups. >> it's going to be a big holiday present, go long gopro. >> cramer's mad dash, opening bell, and a look at the futures

meantime. looking decent here. implied open up 23, s&p going for the close, first ever close above 2,000. we'll see if we do it today. more "squawk on the street" from the nokz stock exchange straight ahead. at if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. we do? i took the trash out. i know. and thank you so much for that. i think we should get a medicare supplement insurance plan. right now? [ male announcer ] whether you're new to medicare or not, you may know it only covers about 80%

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all right, six and a half minutes before the bell, dashing, time for cramer's mad dash ahead of open. >> when dsw got hammered down to the 20s, we said, get all in dsw. >> the shoe retailer, the shoe

people? >> would make a comeback, and, boom, this was a terrific quarter. this is the beginning of the comeback. we got the comparable sales going up. this provided a lot of value like mcdonald, saying good things, please come on the show tonight, i like everything you are doing, that be mad money. this is a comeback story. i felt if it did not move up, private equity might get involved. i think they will out run the posse. >> they needed the comeback after what they've done year to date. >> not been a good stock. hey, you know what? they don't sell burgers and fries in the shoes, but this is a comeback story. it is an underrated story down here. i think it goes higher. >> gdat. >> okay. i want to talk about growth. remember, i love growth. they have the sapphire product that's going to did into the iphone6 launch. there's a lot of guess work how much sapphire is in. everybody with a broken screen, iphone, should take a look at this gdat, a stock i recommend,

highly speculative, but if they are overweighted within the iphone6, you should overweight the stock. gdat technology is the sub way to play apple. should be sky works, but i tell you, i want a screen you cannot break. i want sapphire. >> suppliers will be very much in focus getting closer to the launch date. >> the launch is big. people asked, jim, apple's been a big part of the s&p, the run to 2,000 s that wrong? apple is an inexpensive stock. the stocks taking us higher are 12 and 13 times earnings, not expensive stocks. people think the whole mark is overvalued. i'm looking at undervalued stocks taking the s&p to 2,000. under value. >> i got it. back after this. opening bell minutes away.

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capital of the world where the opening bell is set to ring in about a minute. so, jim, we made a run at 2,000 s&p close, couldn't get there, how significant do you think it is for the average investor watching who says, wow, s&p 2,000, does it matter if we close above it? what's the significance? >> yesterday, volume was weak. i don't like it from the point of view of participation. drill any bit in the world if you want to sell ibm, you can do it. what we need to see is the sense from people recognizing that it's not all of them. it's some of the companies that are really starting to see a turn around, and i want to mention the banks 37. >> glad you did. >> the rates are going down. now, we are supposed to sell the banks, right? it's net interest margin that's determining things? maybe people feel there's a turn in lending, turn in lending. >> hold the thought, after the bell, let's continue the talk, i love the bank story, people are

getting on board with it. you are watching the opening bells and s&p 500 at the cnbc realtime exchange. the big board, i making a designated market here at the stock exchange, and there you have it. market with a slight positive -- but, again, jim, on the banks here. seems as though, you know, once you got the bank of america settlement out of the way, people focus on the group which has picked up as of late, has people on the misteptimistic. >> the values are key, a sense the government is going to be over -- just looking over the shoulders. they have a lot of excess capital, can return capital, the group would do better, but at the same time, when you -- you're in the kind of moment here, which is we're so far away from reporting period, that the banks can play until they report it's margin, they are slammed.

technology, old tech, it plays until we see the actual earnings. remember, there's a big goal. this is when you start the big money, you start buying tech, a good holiday season, but so those groups have a bias to the high side, which i like because they are huge in the s&p. >> mkm, initiating goldman today. >> i thought that was an important -- >> earnings quality improving, they say, trading at a trough. we heard commentary from gary cohen, three months ago or something like that, trading terrible. >> right. >> maybe it's in a trough now. they are on the mistake. >> take costs out. one of the things that goes on at the great brokerage houses, it's not like they just say, you know what? let's pay the guys who are not making us money a lot of money. that's not the way it works at goldman sachs. when stocks go down, no onements anything to do with them, when they are up, i want on board. that's app unfortunate part of

the way analysts work, but goldman, my travel trust knows going back and forth, we think they are undervalued. >> temperature me if i'm wrong, if i remember correctly, the regionals too, right? >> loves sup trust. >> the regional story and the big ones. >> judge, loves sun trust i feel we have to relocate to atlantament they have great growth, and that should matter. stock at 38. it was at 40 in the delivering alpha period because delivering alpha said the 10-year's going to three. that did not happen. could a room be wrong? someone probably thought two and a quarter there, but a lot of companies were wrong in bonds and therefore wrong in the s&p. >> look at the these. state street waiting to pop up -- not showing up. >> sun trust. looking at the prices, oh -- >> realtime. >> perfect. in the world of twitter, oh,

cram cramer's an idiot, down six cents. stay focused. the bank group is the winner. the other group, the winner yesterday, oil did not do anything, the independent oils led by continue thenal, this group's on fire for no particular reason. >> oil's coming down. >> oil's coming down. >> despite any political headline. >> no more in houston for oil. we are so stacked with oil. it's like how i feel about the redskins, stacked with wide receivers. >> don't go there. there's no pipeline. >> no pipeline. >> need to get it from here to there, right? >> and the oil skins don't have the pipeline or the redskins. >> rg3 will have a good year. >> that's good. red ror bin gourmet sold to you. >> if emergennergy was a leader

group, i can't believe this year is about in the books. >> when the u.s. open starts, there's a few months left. >> do you start, as you said, going back to tech and banks? >> yes. >> places to put money for the next leg of the rally? >> do that before the earnings. i live that. there is such a since there's sense there's a big deal in the oil patch. a lot is activism. the reason you have to the seen deals in the oil patch because no one's unhappy. takes a couple missed quarters to get activists going. they have been in retail, ann taylor, a guy buys the share, puts company up for sale. i think they are fully value. we have abercrobie. i did the restaurants last night. people want me to recommend pot belly. refused to be recommending a stock where basically says if you come in, you get fat. that's not what the

millennialsment. i'm attune to the millennials. i'm attune. they are not going to get fat. that's not their ethos. they don't believe it in. >> fast food, the stocks, burger king $33 north of that, up two and a third percent today. >> what's the budget premium. >> horton's up nearly 10%. those who missed the top of the program, just tuning in to see the market trading, you do not like this deal? you don't like the companies? >> take the profits all right. in the en, financialing serging gets you so far. i like growth and chipolte since 50. they are connected with the younger people. like burger king? like regeneron because the drug that will be out this weekend, you don't -- burger king and anticholesterol drugs, match made in heaven. >> i thought the same thing.

>> why do you think like this? why do you think the drugs do well? so many people eat junk food. so many people, junk food. >> how is pepsi doing today? >> an article saying there's pressure. should be pressure on coca-cola. pepsico is a winner because i think they actually have product that numbers are better. why is coke not feeling the heat. >> making investments as of late, right? monster? >> i said what when they did the deal, people would downgrade it, think it's over like green mountain. look at green mountain, everything green mountain does right since the ceo came in, okay? everything. everything. >> people were saying the gentleman previously running the place was not doing anything. went from nothing to everything. >> i think he's getting good time with the family. good time with family is

important. i want to see the transports. interesting is the rails, like, you can't get grain because there's too much oil being shipped, trinity, greenbriar. unstoppable stock too. rails have growth. rails have growth. >> rails are people too. >> yes. >> we have more on what's moving, hey, bob. >> important thing is we're over 2,000 again, but as i talk to guys on the floor, there's not a lot of catalyst to keep it over 2,000. that's the issue now. numbers are mixed. economic numbers, durable good numbers good. this is why we strip out headlines in it, up 22.6 %, looks great, but look at the nondefense aircraft, up 318%. that's why you strip out aircraft. hello boeing, up fractionally there. put it up for a second, congrats

to them, must be a big beneficiary of that, but stripping out the component of it, overall, durable goods a disappointment. we got a revision up in the prior month. case schiler was okay, seeing improvement there overall, but, again, not a lot of catalyst here. europe, i get mails from traders shocked at yields, they keep going down, lends money to the spanish government for dloe 2 .2% here, everybody wants to figure out how dralk hi pulls out the great hat triek to get those banks from buying sovereign debt because that's what they are doing. the ecb lends money, they are cheap, going out to buy the sovereign debt, the banks are, and the question is, how much leverage can the banks get? they are the buyers of the sovereign bet, and the main reason it comntinues to move to the downside. best buy, you can't help but be a cheerleader. maybe that's the wrong words.

i like stores. i like shopping for things and physical places to go. cheer for them a little bit. earnings were okay, but revenue light, and same store sales keep dropping, and not only do they keep dropping, down 2.7 %, but that was worse than the expectations. i'm looking for bright lining, silver lining, you know, the glass half full guy, online sales up 22%, that's good. you can't help be be disappointed in the continuing drop in the store traffic going on. there's best buy, gave it up for dead, but went from 25 to $306789 it's a scrap pi player. is it wrong to cheer for the guys a little? i don't any so. downside, 4%, not surprising decline. dsw, shoes, shoe retailers, earnings and sales beat, raising the 2014 outlook, but had a highly promotional environment.

the traders not buying that. stock's up 10%. movado talked about a pickup in sales. they are expecting to boost shipments, reiterated their full year guidance, and they are insisting the sales from movado outpace the sector sounding nice, but the street is not buying it issue down 6%. the s&p zitting now exactly at 2,000. back to you. >> thanks, the head to chicago now, rick santelli up in chicago. rick, ten-year, 237 is where i see it. >> yeah, yeah, year over year to date total return is approaching 8.5%, but, yeah, no, that was the wrong trade. 30-year bonds approaching 20%, but that was the wrong trade. tens minus twos, fives my news

tens, and fives to 30s. first, flattest curves on ten minus twos in over a year, june of 2013, 14 months, december of 2008, fives versus tens, and january of 2009 for fives versus 30s. everything is consistent in the fixed income arena, whether it's flat or spongy rates. you want to get spperspective? take a view over the two-year charts. two-year ten year, certainly it just looks at that chart, hard not to argue we're not going to get closer to 2% or the bund will not spend more time under 1 %. the gilt over 2 .5%, but there's action on the right, 50 basis points, not seeing triple digit yields in japan soon, and last one, actions of foreign exchange, the ewe row versus the

dollar fitting the pattern realm. right now, maybe we're doing better relative to everyone else, but, boy, it's hard for many investers to grapple in a world where europe and japan and the u.k. are not firing on all cylinders, and the united states bounces along unaffected. judge, back to you. >> thank you so much. coming up, major disappointment for netflix shut out in the top categories of last night's emmy's. we'll discuss what's next, and, of course, the stock. also ahead, "shark tank" not pulling punches with investing. "squawk alley" at 11:00 eastern. we'll be right back.

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financials? jpm up slightly, goldman up slightly, not much. >> a little disappointed. up a few smackers yesterday, and the day is young. you know, 115, okay, keep the number in mind, 403. that's the number goals, the number assists tim horton had. he was a defenseman for the leaves. 1930 he was born, i'm talking about a tired chain named after a ice hockey player people don't know in this country. keep that in mind. >> burger king was named after the big, you know, the big king. >> the king. no natural or ogranic. i tried to buy a lot of land, was not allowed to because i'm an american. i'm not slandering canada. this concept has not traveled before. it won't travel again. take profits tim horton. >> watching netflix this morning, down about 1 %, emmy night not what netflix was hoping for. both house of cards and orange

is the new black shout out in the major categories, netflix received 31 nominations, left the award show with seven. that's among the big winners, amc's "breaking bad" six emmys including outstanding drama series and outstanding lead actor. >> and the cranston kiss, so, so good. i got to meet him after lpj. >> yeah, yeah. >> intellectual, great actor, absolutely fantastic and deserving. he hung in, "malcome in the middle," a remarkable man. congratulations who likes "mad money" and appeared on "mad money," i asked what is the secret? he said it's like apple. make the best product. he made the best crystal meth. it was not about distribution like hew lit pack ard, but he

made the best product which is why it was a stand out, and the distribution system is hewlett pa packard. this season, i have to take, like, ambien after. all you do is think about how scary it is, you know, the clinic is not, you know, a plus na name. >> make the argument that emmy wins are good for the stock. >> not winning that many has less of an impact on the stock, like, who cares. >> we did talk about orange is the new black. you know, people said amc take over, and that's going to reflect well. that's the old days. that's, like, the 19 80s, oh, buy netflix with the emmy's, but

if they won -- >> oh, we'd be talking about black more, house of cards more. stock's up 30%. >> i think it is the best show of the year. i love it. it's just not a comedy. >> again -- >> this year it's not a comedy. >> 30 nominations. >> breaking bad, the greatest show ever. i have to tell you, just, i follow aaron paul, wish he was more coherent on twitter, and head writer for conan, greatest show ever. i'm grlad faber eer is not on phone. >> right? up next, stop trading with jim, and "squawk on the street" will be right back.

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all collision avoidance, powerful company from israel. mobile eye and harmon were to get together, what a combination. don't sell, goes higher. continue, csi, finding dead retailers, who can come to life? good luck. not many. i have the next big inversion to reveal, as well as health care services, why does that matter? as people get oler, they want in-home health care. i have so much cooking. can't wait. point blank, how did wendy's do with the 1930 hock ki player? wendys and horton were together. >> they were. >> what did that do? >> not much. >> wendy's kill the who. when we put it together, all we do is -- >> wendy's killed the who. >> not horton? >> fat burgers equals what?

call lees are big. >> people say that's because of bad management. >> i want genetically modified cholesterol put in every cheese burger and donut. >> the pretzel bacon donut. >> that's good for you. >> works for jack in the box. whoever has the massive burger. >> do gate wway into a cardi cardioinfraction. sorry, i care about health. sorry i care about the food chain. i watch industrial food information bureau. >> they need paris hilton to do kmer commercials, maybe that's key. >> you'll know why i'm not crazy about the deal, and if you like the deal, starbucks is the same multiple now. buy starbucks, don't short it because then, you know, people say it's warren buffet. he loves it. >> we're looking at the s&p

holding above 2,000. >> now you're talking. >> 2001. >> that's yellen, right? >> as the yield curve turns. >> inside the yield curve with kim kardashian and longoria, my 12:00 against the judge online program. inside the yield -- inside the curve. >> real housewives of the interest rate duration. that'll be a show and a half. >> wow. people are -- that was an interesting one where you just went. >> right? "breaking bad" move down under two in the ten year. there's the program for you. >> look, people are going to continue this discussion -- >> what about the s&p 2,000? that's driven by earnings, by growth. >> look at the ten year, to the point as the yield curve turns, okay, the ten year moves up, yes

coming down, 237, 238, the conversation of which is more -- or not which is more, but which is overpriced, if any, bonds and stocks continue to go up together? >> i think they can be. by the way, in touch with what was once the largest and fastest growing burger king franchise, ceo, 100% agree with the tim horton move. the largest and best fastest growing in agreement with me, okay? okay? take that tim horton hockey puck and sell it. >> so -- >> the ten year's fine. if we're finished earnings, they can dream, pick dreams, we can dream, dream, dreams about the -- >> i got it, but if the conversation, you know, if you're so down on this deal between burger king and horton -- >> take profits. >> you don't like the combination? >> i just think that we decided that buffet got involved, so now

it's like we're all eating cheese burgers and donuts. this is the fundament. >> doesn't buffet seem more than just a good deal for himself? >> coupon, terrific. >> not positive on the prospects for this? >> look, the deal's going to work. we'll get paid. >> but is it more than that? >> i don't think so. >> no? all right. >> look, you want me to say yes? >> no. thinking there's got to be more than just sweet terms. >> i'll talk about that in as the rate curve turns. my show going directly against the judge 12: 30. >> don't go against us with kardashian and longoria. what do you have at 12:00? >> jeremy sooegle. >> he was negative at the top. take a look, wall street, he was negative at the top, talking about 2000. stop hitting him. he runs the endowment of the father's building. >> coming up, breaking news on

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whopper for august, the best level since 95.24 back in october of 2007. now, if we look at the other number out august read on manufacturing index, the richmond fed, that's out at 12, the best read going back to, well, january, february, or march of 2011 with multiple reads at 15. seems as though at least for the moment, the central banks gave a tail wind to everything from equities to confidence. back to you, judge. >> okay. rick, thank you so much. moving the ten-year was not much, right? i mean, maybe you thought you'd get a little bit tick up in rates, data, consumer confidence? >> rates never go up these days. it's the stock market. that's reacting to the positive growth as jim said to the earnings growth we see to the momentum in the economy. strikes me as interesting that consumer confidence is high to

the 2007 highs, yet consumer spending, retail sales report last month were disappointing. where are the consumers that are so confident? >> i don't know. >> answering surveys. >> maybe they are ready to spend money back to school? who knows? >> maybe. >> burger king is spending money buying horton's in a deal valued at $11 billion. the combined company will be based in canada, and andrew confirms warren buffet will help finance the deal joining us from headwaters. learning details at this point at all of the terms of the investment? >> we have not learn of the preferred terms that mr. buffet is going to be having. it's a $3 billion loan, part of the $12 billion financing package, money coming from jpmorgan and wells fargo, but, of course, warren buffet's emergence is part of the transaction in the middle of the conversation of inversions, perhaps changing the discussion

or heightening or highlighting the discussion on inversions. mr. buffet, of course, someone who's been a fan of higher taxes to some degree, not on corporations, but on individuals, and, of course, a fan of the president, and treasury department put out a statement yesterday about this particular transaction, and carl levinon this transaction, so there's a political translation on what this means. several sources told me this transaction is while structured as technically an inversion, will not at least in the short term impact the tax base here in the united states. that's the argument they made over and over again for two reasons. one is the effective tax rate in the united states already that's about 27%. that would come down to 25 in the context of being a canadian company in which they pay their

territorial or taxes outside the united states to canada. but the other piece is the $3 billion loaned. we don't know the terms to mr. buffet because of the way the structure, there's now a foreign company, canadian company pays a dividend to a u.s. company who pays 35% on that rather than 14 %. >> andrew -- >> a small piece of it, long term, however, clearly, all tax inversions, to some degree, erode the tax base in the u.s. >> andrew, the reason they move from miami to ontario is taxes, correct? otherwise there's no other reason to move. >> i suggest there's another piece to this which is that fairly or not, tim horton's in canada is an icon. there is a view that regulators there, the canadian investment group would look at it transaction that would take a company like tim horton's and put it back in the united states

and look a stance at that. at least that's what people inside the transaction try to tugt, this is done as much for tax reasons, if not more so than for political reasons. trying to appease everybody, and in the process, may be appeasing nobody. >> discussing tax breaks, it's worth pointing it's a deal from brazil, leveraging up the deal, borrow $9 billion, and the interest on that is tax deductib deductible. that's the nature to set against the profits they get on the companies, and then pay down the debt over time using the free cash flow, the nature of the model. there is a major subsidy as ever with the deals from the taxpayer to the private equity players. >> of course. i should say this is structured as a private equity-like transaction. i would not describe it purely

as private equity per se. burger king is controlled by 3g, a minor distinction. of course, we should note they have been in business for now sometime with warren buffet who, you know, talk about private equity, he's not usually look fondly at private equity, and, in fact, most of the comments are negative. he got involved with them through the heinz transaction and there's an argument to be made they will try to use this deal, burger king deal, to create a yum-like brand, portfolio or platform for more and more deals perhaps with the help of warren buffet. >> right. that would be interesting. to your point, andrew, the canadians were protective of blackberry. thank you on the reporting of the financing of the deal. >> thank you. >> thank you for sticking around. what does the deal mean for the fast food industry at large? on the news line with us, sarah lockyer, editor in chief of

nation's restaurant news, does burger king have a case to be made getting other operational advantages from buying tim horton's? coffee and donuts with a whopper? >> oh, i don't know if i would eat coffee and donuts with a whopper. thanks for having me on this morning. absolutely this is a good move for burger king. the restaurant industry is stagnant growth-wise with the traditional chains, and i think it's the opportunity for them, a huge growth platform, both in new store expansion and potentially menu items to play off each other. >> what about that idea of structuring burger king as a yum brand? in other words, in the releet, they said tim horton's would be its own brand, burger king, its own brand. there's synergies they can leverage the worldwide reach to take horton's abroad, and who

could be next to acquire in the portfolio? >> oh, a great question. it will look like yum. the restaurant history has a lot. wendy's itself used to own tim horton back in the early 2000s, and mcdonalds used to own chipol chipolte. this looks like a beginning of the strategic acquisition serge that we had seen in the past. next, geez, a great question, perhaps someone looking at a lunch part. the sandwich segment is huge in the restaurant space. i think with this burger king, the deal, a lot of play with breakfast and coffee. if you look years and years down the road, looking for a new p y play, it's outside the breakfast area to lunch. >> sarah, clearly, 3g did wonders for the profitability of

burger king, franchising out, not owning the restaurantrestau. what's the future for the sector? coming off yesterday talking about an article in the journal that had gone into mcdonald's sales figure finding customers in the 20 s and 30s defected away from mcdonalds to competitors to fast casual restaurants like econochipolte. this is a defensive play now from 3g they can't grow burger king as you could other brands? >> absolutely, no question. traditional qsrs are struggling right now. mcdonald's saw the lowest monthly same-store sales in almost 30 years, burger king itself has pretty flat same store sales, just up less than 1 %. in comparison, you see tim horton with the u.s. same store sales at 6 % in the last quarter. from additional qsr is struggling. the younger depp rask is looking

for more helpful affair and different environment to dine in like the econochipoltes. it's a defensive play, provides burger king the opportunity to tell wall street we have a growth play, make real growth happen, especially in the united states. >> quickly, the point in part simon's trying to make and made by jim cramer is people don't want to seat donuts and burgers as much anymore, so even though you're going to put the companies together and may seem on paper a good deal on both sides for what each does for the other, the fact of the matter is millennials are moving tastes to other areas whether it's chipolte or anywhere else against fast food. >> they are shifting from fast food, but remember at the end of the day, mcdonalds, burger king, the yum brands, these are the largest restaurant companies in the world by far. by billions. which i poll they's on fire, but

it's tiny. everyone says they want to eat salads, but everyone eats a burger. there's room there. >> i just add to that, sarah, that breakfast is the top growth category in fast food. leaving it there. so much to talk about, but thank you for joining us, and we should note that burger king and tim horton's are hosting a call as we speak. we'll bring you headlines as they come. >> the markets in the green, s&p above 2,000, and, in fact, we just hit -- just tuning in, a fresh record, 2002 on the s&p 500 and dow is not far away from a high either. david, chief investment officer with matrix advisers, and don is chief investment officer with trend macro, and a cnbc contributor. gentlemen, good morning. >> morning. >> morning. >> david, says you are nervous, less aggressive in putting money in equities, why?

>> not nervous, but bullish all year, we suggest buying on the dips, less aggressive chasing rallies. a 5% rally in the s&p, so we just wouldn't chase it to put new money to work. the market ends here up in the low double digits, end the year higher than today, but we wouldn't use the last 5% rally to end bold p you to put more money to work, but next time there's a scare in the middle east and markets sell off, buy into that weakness. >> don, someone unfairly chose trading, characterizing the market like this yesterday, there's no one around, people have no reason to sell. is that fair? >> well, couldn't you say there's no one around, people have no reason to buy? >> well, no, because the market still goes up. someone's buying even in super, super light volume for the market to -- >> i think we can say that if

there's no other reason for it, but there's all kinds of reasons for it. there's a serge in forward upgrade rates in the united states, improving macro stat statisti statistics, reported great ones this morning. got draghi appearing in jackson hole off script saying whatever it takes, declaring a deflation emergency in europe to do qe at the end of the year. i mean, there's a really a water fall of good news coming in. i agree with the other guest. not only do you have to buy the dips, but look around the world and find the countries and sectors with the worst dips and buy them. the perfect example in three months has, in fact, been europe, and we disagreed in the past and will today, simon, but draghi lit the fuse again, and europe is a screaming by. >> another them from the strategists, daifvid, look for m&a, a trends now. with the deal of the day, burger

king-tim horton, they get the tax aversion in the long run, but opens a can of worms in that's it's not the health care industry. do you have too look at other industries for the companies that wall street is a big fan of? >> well, i with we think there's more m&a activity, some is pure, some is driven, and we think inversion is getting a bad wrap, important to point out if you're a u.s. company, move jeefr seas, you pay all taxes on all of the business you do in the united states. it's just a business outside of the united states. having said that, we think there would be some industrials. a company like eaton could be vulnerable to a larger player looking to get outside u.s. domicile. we think the deal activity will be a big plus for the market over the next six months. >> don, are we too complacent -- >> i want to chime in and add -- >> go ahead, sure. >> activity only happens when confidence returns. that's a bullish sign. >> are we down to complacency on

events? putin is meeting as we speak. we are distancie ining ourselvem anything going on around the globe. isis, gaza, ukraine. when does that have am inpact? >> oh, wait, you left out ebola. >> everything. >> it's not that there aren't -- it's not that there are not a bunch of risks in the world, a lot of them. >> why do we ignore them? >> they are small. >> when does the market pay attention? >> when one of these out of the money actions comes into the money. why worry about it now? do you think there's going dob an ebala outbreak that sweeps in the united states? >> i don't. >> it's the old tunnel market market. >> there you go. >> has to impact growth. >> if it reflects the health of corporations, nothing is challenging the health of corporations, the point don is making, never been so strong, and he's citing m&a borrowing super cheap. i don't want to put words in

your mouth, don. >> well, all that's true, and you have every central banker in the world saying you'll borrow cheap basically forever, that you won't have the rug pulled from under you. rates may not be 0 a year from now, but they will be way lower than the fairly benign economic circumstances normally has them be. it's fantastic news for corporations all over the world, especially the emerging markets. >> okay, thanks for the advice. thank you. >> thank you. >> up next, lower foot traffic in the stores making best buy one of today's biggest losers. the company's ceo speaking with cnbc after the conference call. hear what he had to say about mixed results when "squawk on the street" returns. for over california foster children,

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welcome back, stocks plummet after missing earnings and forecasts by, well, a mile. the company processed 770 million pounds of fresh poultry in the quarter, that's 44 million less than it had predicted in may so that stock is trading down more than 7.5%. guys, back to you. >> morgan, thank you. best buy posting mixed results as store traffic declines sending the stock down more than 6% as you see. we spoke with the best ceo about the results joining us now with the highlights. what did he say? >> yeah, you know, simon, the declining store traffic, the ceo is not concerned.

now, it sounds strange, but it's because shoppers browse online first, so the trips are more targeted when they come in the stores saying, quote, the number of trips to the store for a given purchase is going down. we see online be web and mobile as starting pointing if everything we do, helping the overall business and customer experience, traffic in the store is down, but conversion is up. best buy continuings to undergo specific cost cutting problems in the cost culting transformation, but the focus is growth, and determination is to grow the top line, spend energy on growing top line in key categories. and saying that tablet sales are, quote, crashing. today he tells me the word "crash" was too strong a word, but sales peaked, and computing sales have increased thanks to innovations for laptops where

they have the tablet-like features. so much of best buy's business is about the product cycle. you know folks hold back on the smart phones in anticipation of the new iphone which has a key result when you look at best buy's earnings. back to you. >> thank you so much. up next, a big deal in the world of golf. pga announcing a 25-year agreement with liberty national golf course talking to the pga commissioner, and exclusive overview just after the break. it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure,

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for up to three years... and be covered? it means your odometer... is there to record... the memories. during the mercedes-benz certified pre-owned sales event now through september 2nd, you'll get complimentary pre-paid maintenance and may qualify for a two-month payment credit. only at your authorized mercedes-benz dealer. welcome back. golf lately, you know tiger is not tiger anymore. golf retailers face sales pressure, and the industry is experiencing a generation gap with overall participation falling for the fifth straight year, but today, there's big golf news for the big apple.

the pga tour announced a new 25-year partnership with liberty national this morning including playing host to the 2017 president's cup. joining us now exclusively is pga tour commissioner tim finchem and cofounder, former reebok chairman, paul fireman now with fireman capital partners. mr. fireman, beginning with you, a big deal. president's cup is a marquee event, a television event, how does it feel to get it? >> it's an exciting event, thrilled to have it. we competed, of course, with many courses around the united states that are prestigious, but the commissioner and board picked us, and we're going to do everything in our power to make it the best. >> and commissioner, so the president's cup in 2017 is going to be there, start of the 25 -year partnership between the force and pga tourment i assume

many, many more marquee events will be coming to the new york city area as a result of this deal? >> well, i think that's right, and we get rave reviews from all over the globe with the setting here and the proximity to the statue of liberty, and, of course, the new york sky line that it's just great television. to know we'll play here on a regular basis for the next 25 years is a great thing for the tour. >> yeah, tim, what do you think as we look broadly at the business of golf? the fact that, you know, nike, for example, says golf equipment sales are struggling. dick sporting goods with similar report in the most recent earnings report, and i just wonder if any of that can be blamed on the fact that tiger woods is just not the player that he once was, at least if he is, the results do not say it, and if that's having a more dramatic impact on the business of golf, mcilroy, great player,

great kid, not american-born kid, and not the draw yet that tiger was and is. >> look at the business of golf, you have to look at the professional game and the participation side. professional game's never been stronger. women or men. just go back over the last two years. it's very healthy and very healthy globally, headed into the olympics in 2016. the participation side, we took a hit with the 2007-2008, and 2009 downturn. the housing industry came to a halt, major provider of golf facilities, and private clubs took a hit because hinges not baying as much were worry about their ira or retirement and moved out of clubs. that's corrected itself now. when we look at millennials and kids, it's very positive for the future. we got, you know, 3 million kids

last year in the first tee programs, 10 million new kids by 17. you know, 260,000 millennials played, you know, millions around 2 million rounds of golf last year. young people are interested in the game, but with golf, you have to make it available to them. you can't expect them to drive 40 miles in a golf facility. if you are going to grow, we have to make golf available. golf grew consistently with arnold palmer in 1962 to 2007, took a hit, and levelled off in the last three years. we feel good about the future. >> you were the former chair of reebok. what's wrong with the nikes of the world? lack of product or is it a problem with golf at large? >> no, i don't think it's a lack of innovation. i think they've done a great job of forwarding the game with new

clubs, new technology. i agree with the commissioner that what's happened has been a lull because a lot of country clubs and 5 lot of places where was often played became self-centered around the membership that grew older and rules and regulation denied children access to the clubs. not because thaw meant harm, but they didn't want children around while they were playing. i have nine grandchildren, and my grandchildren are now -- i have four of them playing, and they are in academies where they love golf; and now the clubs are realizing it's a family affair, that the growing adult in the 30s and 40s wants his children with him, and they are not able to go to the golf course, they'll take on somewhere else. you'll see a shift over the next ten years because people are opening the clubs again, and they need to make a family style.

>> tim, quickly, before we let you go, do you have an on the record comment about tiger firing the swing coach and who do you think the next will be? facts of the matter is you need woods to be playing at a better level for everybody to be interested in golf. >> well, no question. i mean, tiger woods is the greatest player of his generation, maybe of all time, as long as he is able to play the golfing public or fan base is going to want to see him. no question about that. so i'm not going to comment on the swing coach. those are decisions he has to make, but he's done this in the past, you know, i think, you know, people forget, tiger won five times last year. he's been hurt, but if he can get healthy, i got great confidence he'll be around for a good long time. >> okay. guys, thank you so much for joining us. paul, love the course. get rid of a few bunkers, though. i can't complain about that, but we'll see you guys soon.

talk to you soon. >> thank you very much. >> tim and paul. straight ahead, amazon bought twitch, fourth largest source of traffic on the web, a gaming platform google was to be courting, paying $1 billion in cash. what's that mean for amazon stock? obviously, mark will be right with us. [ male announcer ] it's one of the most amazing things we build and it doesn't even fly. we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better for all of us. ♪ ♪

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amazon acquiring twitch for about $1 billion in cash after a deal with google fell through. we spoke back in june, and would not comment, but talked about what makes twitch valuable. take a listen. >> i think the reason why people are interested in the kbaen right now they are surprised when we have over a million people broadcasting gaming every month. we have over -- every, on average, engagement is extremely high. we have 45 million people who tune in around the world to the content, and that equals about 13 billion minutes of video watched every month, so the engagement on a per user basis is high. people tune in every day for over an hour. >> managing director lead internet analyst, mark, thank you for joining us. people who don't game don't understand how big it is, the

fourth largest generator of traffic in the world, certainly in this country, after the likes of netflix and amazon, and i think now 55 million unique monthly users. this is a big acquisition for amazon. >> it is. it's one of the largest acquisitions made to date. as bull on the stock, the stock's jurp valued, i like the fact they use cash for it, but it's an unusual acquisition for amazon. there's a couple moves going on all at the same time. this company's now really trying to generate advertising revenue going into the content creation business, not the professional content creation business, but the user content business. they can monetize this pretty well over time. you would have thought the natural home for twitch was youtube. that's the surprise to us. amazon bought it. there is logic here. >> they are obviously investing in some form in an original gaming content as well. the question we'll fall back on here, mark, is it another me too

development from amazon? you know, we have the stock under pressure all year, down 16% because they are not generating profits. do you think in general the shareholders will hold true to them through this as well? >> i think so. this is -- i know it's a billion dollars, it's a lot of money, a lot of cash, but for a company with 150 billion market cap, it's realtively small, they have 7 billion in cash, so versus the cash pile, it's relatively small. people are looking at this saying, there's clearly a usage change. believe it or not, 55 million people enjoy going on to the internet watching other people play video games. not that far off from people going on television and watching sports or financial news. this is for the younger generation. rather than sports, they watch video games, a highly addictive form of entertainment, and you monetize that with advertising, and it's user generated content so no royalty rights to pay. it's an interesting revenue play here that amazon may have

figured out before most other people did. >> speaking of entertainment, i want to ask about the emmy's shot last night, especially good to get a self-side analyst. as a viewer, i was disappointed that "orange is the new black" didn't get anything, went to modern family and "breaking bad," does it matter for netflix stock that ran up and what they are doing is working? >> yeah, it does matter near term to the stock. i think the bigger picture, though, is that, yes, they disapointed or were disappointed and bulls were disappointed they didn't get more of a nod with the emmy's, butting the fact they got 31 nominations, 14 last year, and none before that, clearly shows that netflix is a material original content player. netflix is a place where all original stops and. st a major change in the story.

we like it for a variety of reasons, this is one element. it's incontra vertle now they are a content platform in a successful one too despite last night's results. >> never underestimate the politics of the award ceremonies. leaving it there. thank you very much. >> thank you. >> thank you. coming up, burger king buying tim horton, what does the move mean for the future of the restaurant industry as a whole? cnbc's restaurant start up, forces along with mario bringing new restaurants joining us live to weigh in next. thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things,

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takes to the air. here's a sneak peek. >> so difficult for me to think about putting money into ideas. you know, i want to invest in businesses that i can get my head around that will make me a return. >> yeah, but this guy's got business going, 400 grand in sales last year, better than 60 grand over here. >> you wanted the opportunity to expand the ideal, go to the library, read a book. you want the opportunity to see an investment that you can make, i think that this is the way we have to go. >> couldn't be anymore polar opposite the way i see it. >> restaurants johning us now, joe, of course, the power house behind b and b hospitality and the rapidly expanding brand. only one, the finale tonight. >> only one. great season, incredible investments, a great show, it's a real way to see what's happening in food entrepreneurs around the country. >> giving good business leads as

well. >> made real investments in the first season, and just announced second season today, ten more episodes. >> been recommissioned? >> recommissioned. going in production. if you have the idea, bring it to us, and we'll show you the money. >> while i have you here, so much going on in your space at the moment. >> there is. >> a big deal with burger king and canada -- >> more than that, how about buffet's financing is, a crazy thing. >> what do you think of that? >> burger king leaves america, and horton's is a weird donut shop in canada, i understand burger king, but i think companies like burger king and the fast food segment has a lot to learn on friends and what's happening. >> we have seen it in mcdonald's sales figures, 20s and 30s and moving somewhere else. can the chains turn around? can you do it on that scale? >> mcdonlds's is trying to in the own weigh, but it's the 800-pound gorilla. look, you have whichchipolte, a

forward thinking company. >> the way they serve it, you have choice, interact with it, it's not a one size fits all. does mcdonalds change the way it interacts? >> change the formula, there's a huge spice for the traditional hamburger, but young consumers now with expendble dollars want to know where the food's coming from, what it's made from, no antibiotics, they want to understand. that started at the restaurant level years ago with the local, you know, local te , and for a $12, they want to know the lettuce is local, beef not treated with hormones, and get a real meal with that level of responsibility at all levels. that's the standard. >> can you confirm that you are taking over the operation? >> yes, we are. >> thank god for that. >> first big project.

so happy to be in new york. >> thank god for that. >> a classic italian, accessible, fun, outdoors k like eating on the coast on ninth avenue and 16th. >> i love it. you'll do wonders for my property price. >> thank you very much. >> tune in tonight at 10:00 p.m. eastern for the "restaurant startup" season finale here on cnbc. >> i'm excited. we'll check it out, back to the deal of the day, that could ultimately lower the tax bill. combined company is based in canada, a move sure to draw scrutiny from u.s. lawmakers opposed to tax inversions. joining us on the phone, new jersey democratic congressman bill pascrell in the ninth district. thank you nor joining us today. do you think this move to relocate is unpatriotic? >> well, i was treasury secretary lew's words.

i think these folks have done what a lot of other corporations have done, and that is taking the easy way out. under the president, not doing anything illegal or suggesting anything illegal, but taking advantage of the tax code, and when you're burger king or mcdonalds or whatever corporation, you got 50 to 200, 300 lawyers that deal with these things. everybody complained about the tax code itself, sarah, but the fact of the matter is that it's not you or me that makes the tax code most of the time, not even if i'm a member of congress. it's those folks who are able to steer the tax code to change that benefit their corporation. that's -- >> wait, wait -- >> that's why we have thousands and thousands and thousands of pa pages of taxes. >> isn't that you, congressman? zbla >> that'ses facts. >> it's up to congress.

they've look at options, the treasury, and they say we're not able to do it without agreement on reforming the tax code. >> you try to get agreement in the house. >> so do you think it's likely that we're going to see action to block these inversions, then, if we're not going to fix the tax code, which is too complicated? >> well, i'm ready to go back tomorrow morning. i've. ready to go back tomorrow morning, said that many times over the past three weeks on intergna international affairs bursting in front of us right now. the fact is you cannot get a reconciliation when people keep on saying no. until the air gets guts and stands up to the characters and doesn't let them steer the boat, we're not going to get change in the tax code. you and i can't do these things. you and i can't just decide to take off. i can't declare myself to be a canadian citizen tomorrow morning to stop paying taxes.

i should need to live. >> they are not doing anything illegal or wrong, but have a fiduciary responsibility to the shareholders, and this ultimately saves them money. if congressments to do something about it -- >> why is a corporation different than you or me? i thought the supreme court thought they were people. they are people under certain circumstances, duh. >> there's a separate tax for corporation. >> if you have a house in new jersey, connecticut, new york, you pay taxes. if the guy next door to you does not pay his taxes, his property taxes, then, of course, it's affecting those who do pay. how do you make up the money if the corporations go offshore because whatever part of the tax code is being abused, this is what's happening. >> how would you, congressman, characterize warren buffet's investing in financing of the

deal? >> i don't care whether it's warren buffet or whether it's bill pascrell. it stinks. everybody should pay their fair share. >> the effective tax rate, burger king's effective tax rate of 27%, canadian corporate tax rate is 26.5%. it's not going to impact the tax base here in the u.s. in a dramatic way. >> democrat and republicans support changing the corporate tax rate. not an excuse for bad behavior. that is the bottom line. >> congressman, so far, we've only had tax inversions within health care. wall greens, we believe, did not do a tax inversion fearing there would be a public backlash. burger king, it's very similar to other burger chains around this country.

would you expect the public to react? would you encourage the public to react? or, indeed, the labor unions, and in what way? >> well, i don't use can think stay healthy, but i would suggest that people who do frequent these places think about where they're going. it's just like the issue of trade. we aunt a balance between trade deals and deals that take americans out of their own jobs. it's a question of balance. the average guy and the average gal have very little -- very little to look for and to support. they don't have lawyers like these major corporations. you're the ones that are basically getting the congress to write they want, and as i said, this may be legal, but i think it's poor behavior. >> congressman, quickly before we go, there's reports out there some of your colleagues on the hill own stock in some of these companies that have done tax

inversion deals. are you good with that? are you cool with that? should they sell the stocks in the companies that have done these deals? do you own stock in any of these companies that have done inversion deals? would you sell it as a result? >> it doesn't make them bad people, i'll tell you, i think that stinks and they have to take a look at what your investments are and decide which are those investments that are healthy for the country, and yourself, and which are not. and i don't think that this is a good deal for the american taxpayer. that's the bottom line. how am i going to be affected and you going to be affected by what mcdonald's or what burger king or what anybody else does? and i may be different, using different parts of the tax code, but they're, whatever their situation is, but i don't think that's healthy for the average taxpayer. somebody's got to make up the difference. >> right. >> who will it be? >> then it's up to congress to fix the tax code and i know congress son vacation. that's why we appreciate you joining us he on the newsline

today. congressman bill pascrell for weighing in obviously on what is likely to be a firestorm from new jersey. all right. still ahead, netflix getting snubbed at the emmys. veteran hoetwood executive former lir at mtv and vh1, now the ceo of omnivision entertainment joins "squawk alley" live to weigh in on the changing lanscape of television. we'll be right back.

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comcast business. built for business. welcome back to "squawk on the street." rick santelli here live on the floor of the cme group, special guest today, william amny, you write great books, whether on coolidge or the depression. yesterday you wrote a great op-ed about looking to the north potentially for some tax reform on personal family investing. why don't you elaborate? >> well, yes. thank you. i wrote this with chris edwards of kato. the point is, there's a lot we can look to candidate da for. one thing is, how to change our tax culture, because right now congress just gives little gifts to different groups, whether it's a child credit for this group or another for another group and canada changeds its entire culture by having basically an account you can put your money in and take it out

when you feel like it, and if you make money on your money, realize the capital gain. it's not taxed. it's called a tfsa. it's wildly popular, and the idea is to export that down here. just like we're bringing in tim horton, i guess. so that americans can get in the habit of saves and thinking for themselves instead of waiting for christmas handouts. >> well, i'll tell you what. it's interesting, because whether it's the get-together are horton's and burger king, or i don't know if you caught the new jersey democratic representative, bill pascrell that was just on the show, but it certainly seems to me that taxes, tax issues are front and center. what struck me about your op-ed, that this product is so easy and so few restrictions, which in my mind especially after listening to the congressman, i wouldn't think it has a prayer to pass, because congress likes to be able to pick and choose, and control. >> well, that's right. but it's our job to put the possibilities out there.

it is possible to create better savings vehicles for americans, where you can take your money out of if you wunt to invest in a company. this is is a sort of super-charged roth. some of you have heard of a roth. you put youren in after tax and take it out when you need it. rats wrong with that? it would change the entire culture has it has in canada in just a few years. it's the