upton. it's tuesday, september 2nd, 2014. "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. it is time to get back to work and back to school. we are happy to be here with you. i'm becky quick along with joe kernen and andrew ross sorkin. there is a big deal in hoops that's happening. kevin durant is sticking with the swoosh. he will stay with nike in what could be a $300 million endorsement deal for the next three years. under armour getting stuffed on that. let's get to andrew. we have breaking news on dollar general and family dollar. >> thank you, becky. we do have news this morning. dollar general is planning to raise its all cash bid for family dollar to $80 a share. here is what's happening as far as we understand it with people

according to the situation. dollar general will be offering to divest up to 1500 stores if required by the ftc. now, before they had offered 700 stores. this even though dollar general says it believes that the pledge to divest those 700 stores as part of the proposal provide more than enough to clear any regulatory review. it includes a $500 million reverse break up fee. and the important point there is to ensure how confident they would be. it's a long, sordid story. skoe and i have gone back and forth. on august 21st, family dollar rejected ads 7.58 share a bid for dollar general. what they did at the time is they cited -- and they didn't think the deal would clear. family dollar's board has been suggesting a stock proprosal. now we're at $80 with the

addition of -- or with the edition of the reverse break-up fee -- >> and saying they would get rid of more stores. >> remember when the press release came out with the initial deal? they trumpeted the fact that they would be the largest, that they would have so much stores. they saw that as a selling point. >> we should tell you they just added boys shce shiller. but more importantly, a guy named richard fine sateen, who is the former head of anti-trust at the fcc. they think a deal will get done. we do expect this announcement should cross the wires hopefully in another minute. >> when you're tauing about how big they were and just that they would be the biggest in terms of numbers and stores.

>> originally, we talked about comparing the former. >> but i think when you're talking about revenue, that's crazy. >> in the market they're in, there was an anti-trust issue. does this take care of it? i don't know. but it gets you probably closer. they're selling things for $1, in some cases $2. that's a specific market on a relative basis compared to everything else. >> so they don't see walmart as a competitor? >> i think in this case, walmart does not fit the well many of how they think about this. whether they're thinking about it differently in the way the ftc will think about it, i'm not sure. nonetheless, that is what is on the table. we think we should be seeing this news cross in just a little bit. but sources telling us they should be coming a little bit later today with an $80 a share bid. there you have it. >> all right. >> you got it? >> yeah, yeah. >> when it does come out, we've already done it, though, okay?

>> you don't want to trumpet it again. >> no. >> it's done. >> people get it. if they're interesting in dollar general becoming -- got it out. there's nude pictures everywhere. we've got to get to some of these others -- >> i know you had a busy weekend. >> no. if they ever find my catch that i've got -- >> even if they broke in on the cloud, all these people keep naked pictures of themselves? >> everybody backs up everything to the cloud. >> everything is accessible to being hacked. >> if you knew the pictures of myself that i've got -- >> the many of them? >> that i've got on the cloud. >> really? >> hundreds. in every disgusting position that you -- i mean, across the board. >> it's 4:00 in the morning. you're going to send people -- >> akrod cross the board. now, i think they saw mine and just -- >> never mind. >> i think they got grossed out. they probably don't even want -- >> you were at a hotel this

weekend? what was the wi-fi bill like? >> you don't get -- the hotel wi-fi. we always talk about wi-fi. the pictures. i can't believe -- you see, you do this because you don't laugh on purpose. >> no, i don't. let me do this one. the fbi and apple are -- this is the story that we're talking about. are you safe? oh, yeah. >> are you safe? >> clearly not. >> the if i go and apple are investigating the hacking of icloud accounts. the breach led to nude photos of jennifer lawrence, super model kate upton. they didn't do male stars. that's probably the only reason that they didn't get to some of mine. apple says it's actively investigating. this is what i'll tell you, my ipad and my iphone constantly

say, you are not being backed up on the cloud. >> mine, too, because yours is full region right? >> yours is full. >> i'm constantly clicking don't worry about it or i don't care or whatever it is that i click and it's just stop telling me. i don't know how to back things up on the cloud, anyway. but you see? i was ahead of the game on this. nothing i have is on the cloud. >> i have a recommendation for you. >> the cloud is not safe. don't we know that now? this is unbelievable. they went in and found -- it was just out here. here is kate upton and here is this person and this person. >> all of these people have naked pictures of themselves? >> one of them said they downloaded hundreds of -- it's like, why are you posing naked for all these pictures? why? >> there's a lot of naked pictures in hollywood. but just one other comment that's important for you. >> yes. >> it's not that they're sitting up there and somehow they hacked

into apple's clouds and hooked into everybody's account. >> how did it? >> they literally tried to get after each actress individually. >> but they knew it was on the cloud, right? >> they knew these people had eye phones. so you a thentfication. >> you have a password and an additional password, everybody can sign ud to do this. it would be impossible to get your -- i don't want to get it's impossible, but it's much harder to get jennifer lawrence or somebody else -- >> you have to be in possession of your iphone? >> you have to have the actual

phone. your drop boxes, anybody should move to -- anybody there's an opportunity to do double you a thentfication, you have to do it. >> and be careful with your password, fix mind you would not use sliekly. >> as the first password coat -- yeah, yeah. >> i still have other questions. i can't believe what -- but i think it's very weird that you can just pick people that you want to find. it was that locallywood actress. they all do nude scenes in a movie. but that's art. shouldn't be violating your sprieftsy. kate, god bless you, kate, but those bathing suits? i had a pretty good idea what she looked like naked. i had an idea.

i was missing 0.001% of whatever was covered up on some of those. right? i sort of felt like i had an idea of what a naked -- you know how close you get times on "sports illustrated" and stuff like that. it doesn't leave a lot to -- >> it does not, to imagination. >> i knew they would be a big story for us. >> it is. anything that is on the cloud. isn't that like your money and bank accounts, a lot of that is there, right? >> bank accounts aren't on on cloud, are they? >> do a degree. the cloud is just a server in the sky some. not even in the sky, but it's on the ground. the important thing is not that apple itself was compromised.

you have to advisely decide, i'm going after becky quick or andrew ross sorkin or whoever it might be. >> that doesn't make me feel safe. the idea that the cloud is susceptible, i mean -- >> everything is susceptible. >> everything is susceptible, but -- >> when you looked on various news aggregate websites, it was all about i -- >> because everything you do on you iphone these days you've backed up to the cloud. >> no, no. >> except for you. >> except for me. >> but for most people it does. the new incarnation of the iphone is even more so. are you still carrying that? >> i do. >> i never put my credit card numbers into the internet. >> god bless you. >> so you think about being cool with technology, it's a

negative. let's talk about the markets. the southbound has set 32% of the closer of the year. hosting their best august performances since 2000. year to day date, the dow is up 3%. the s&p gaining more than 8% and the nasdaq is up by about 10%. we have a big week on the economic front. building to friday's all-important august jobs report. today we get ism manufacturing and construction spending. tomorrow we have factory orders, auto sales and the fed's beige book. thursday, it's the adp report, international trade, productivity and cost and ism nonmanufacturing. friday, it is the government's big employment report. forecasters say the economy probably added 220,000 jobs last month. if so, it would mark the seventh straight month above the 200,000 mark. that's the longest streak like that since 1997. right now, let's take la look at the markets.

this morning, futures are indicated higher. right now, dow futures up by about 36 points above s&p 500. the nasdaq up by just over 11. if you've been watching oil prices, you'll see they're do i know down slightly. wti right now down by about 76 cents. all the way down to 95.20. ice brent is at 101.98. we've been keeping an eye on what's happening in the bond markets. the ten-year note at this point is yielding 2.38%. and the dollar, that's interesting to watch, the euro has been under pressure. the dollar is up against is, 1.3112. all of this with the ecb decision coming later this week. we'll be hearing more from them. the dollar is up against both the pound and the yen. gold prices this morning look like they are down by almost $10. >> why wouldn't they be? >> turmoil around the world. putin said i can take kiev within two weeks and you guys better not mess with me because

i've got nuke lawyer nothing -- i gist seems we're not tighten that much yet as murp moves into it. >> depending on what they say this week, it could be this week. >> so we'll see. and then last week japan was under 0.5% for the year. >> under 0.35? >> well below 1%. and we were above spain. >> they're triple b, right? which is like 80 points below -- >> right. so it's --

>> fortunately, we have the perfect person to talk to us about all that. mark is the manager of southwest securities. would he have been talking with you all year about how strange it's been watching what's been happening with yields around the globe with some of these bonds. what do you think is happening right now? >> well, becky, we've got a couple things going on. first is the question of relative value. if you look at the german ten-year, under 0.9%. the french ten-year at 12.25% or at 2.38%, the money that's not mandated for a given part of the world, the central bank money or pension money or money managers. the united states treasuries look like the best value on the planet to me and i think that's why we're going to keep going to lower yields. i do remember when i told you we were going to break 2 1/2 and -- >> like you were crazy, i remember. i remember. you send me reminders frequently along the way.

we're still below 2.4% today. mark, let me ask you, with everything that's happening around the globe, how much does it matter what the ecb is? that was driving things relative value, but the ecb with the decision this week could continue to really demarkate those differences in value. >> becky, after the decade we've been through, i hate to say this very often, but it's a different world these days. i won't say the difference, because the central banks are certainly driving the markets, all the markets, even the equity market. in fact, we've had lower interest rates, in my opinion, it's big one of the big equity markets this year. the ecb is going to have a significant impact not just on our sovereign debt and bonds in general, but also on equities especially if they keep driving the yields down. they started in the asset backed

purchase program or they began quantitative easing. >> we're expecting all of those things and i just wonder how much of that is baked into the market and if they don't do some of those things, if that would be reflected in a big snap back of the market. >> becky, there's so many people in year, as you know, that have said the average consensus was for -- by this time, we were going to have a 342 yield and close to 4% by the end of the year. i still any there's a significant amount of people that interest rates are. in my opinion, i don't think it's baked into the market at this point. >> let's talk about what's been happening in geopolitical news. joe was just bringing up what putin has said most recently, saying he could take kiev in two weeks if he wanted to. how does that impact things? >> there's no question that the geopolitical events with putin, with isis, with what happened in the gaza strip, with iraq, that had a significant effect upon

treasuries, though not as significant as the trillion banks. but certainly in times of trouble, many has driven back into u.s. treasuries as the biggest, deepest market in the world. and i don't see that discontinuing any decade soon. >> what does that mean in terms of the stock market? you continue to think stocks will do well, u.s. stocks? >> i think the biggest driver for equities is the war on rates. i think we're going to 2% on the ten-year and down from there. interestingly enough, you take germany, spain, france and italy and average that out, that would be a yield of a 1.50 compared to 2.38. so there's still room to go. plus, i would make the point, you were talking about it earlier, how well the dow and the s&p has been this year. >> dow is only at 3%. but the s&p is up 8%.

>> right. if we use the 20-year index, bonds are up 16.95%. >> wow. >> way over-shadowing equity markets. >> that is crazy. but that's where it is. >> yes. >> you were right about yields, that's for sure. >> were you more negative on the prospects a couple of years ago? and we don't think of it as insolvent. we just think of it has not growing. >> they're certainly not insole vice president, sdwroe. >> we thought that for a while. we thought there were times where they were never -- like greece, we thought that was an insolvency probe. >> it was of themselves and two problems but it was cured by

what the ecb did. it works to some extent. maybe not in terms of growth, but at least they're back, you know, yields aren't 9% over there now. they got their house in order. >> joe, the biggest things with the ecb did was they had the put where they said whatever tank, draghi said whatever it takes, and the next thing is they lowered interest rates. it's a carry play so they led many of the banks at 0.15% and then he curved them to buy sovereign debt which they allow them to carry risk free and it mass droiven down, down and down aut sovereign dates in europe? >> it sounds lining if all -- 23 illegal country can know hit in the next km of months, thinking

you can do that in super and fix everything, probably masks some of the problems we're going to see in the future when all this printed money becomes less valuable. when you see it that way it's like, wow, that's nice and pat and it works and -- things aren't that simple a lot of time, month? >> central bank mistakes dome back to haunt us before. that's how people made on the of mope. we'll see. >> do you own a tie? >> who owns -- >> have you ever been on -- have you ever worn a tie? >> never, never. >> have you ever been on with the a -- do you have images with -- >> like on the icloud? >> never, never. >> were you hacked? you see, that i -- >> no, but i don't have becky's pictures, i promise. >> yeah, good. >> i don't have my pictures. >> i hope you haven't because i don't think you can see unsee you naked.

you don't want to do that, no. >> all right. >> thank you, mark. coming up -- you know what? i just had a visual and i can't undo it. >> of him in a tie? >> just a bow tie. >> now i've got the image. are millennials a pack of liars? a new research says how this generation may say anything to get ahead. don't look now, but we are running out of sea captains. squawk enters the rough job waters next. back in a moment. a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com

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welcome back, everybody. right now, i'm tight for the executive em. labor shortages are now being forecast in many professions. this is according to a report being released by dorchbs board today. among the reasons and areas expected to see a shortfall in the next 15 years, you have librarian, sea captains, occupational therapist and plant operators. there are two main reasons. we have a demand for the workers in the case of many health care areas or lack of interest in the jobs in the case of librarians. we hear about this where they're having a heart time coming in were other places where you have many. >> i'm confused about the librarians issue. the future of libraries, i think, are probably under threat to some degree. >> you haven't been to a library

to some time. they hold all kinds of groups for seniors, for little kids, the library hours to get them in. they have dvds to rent while you're there.. they have computers set up. libraries in ralt of towns are still vibrant places. >> i don't know why. >> i've been in ours a lot. >> you see, it's like -- >> i think you're -- the job might be defined differently. >> as in different than -- >> as opposed to a librarian to help find you a book. >> can you imagine taking a job as an insieinside low peaeinsii salesman. we have books. i had them. >> we had them, too. >> we had the world books one. i didn't even have the good ones. >> we had the world book, too. >> do you like world book better

than britannica? >> for my high school graduation, i was given i think a 12 volume set of the dictionary. >> 12 volume set of the diction anterior? dictionary. >> yes. >> no wonder you're a word smith. >> mine were put on a shelf above my bed. it pulled out of theway wall or whatever it was. >> encarta, do you remember that? >> i can't imagine what -- >> honestly, we go because they have the children's hours. i see a lot of people coming through. our library is expanding. speaking of the workforce, a new study finds millennials are more willing than others to lie to get ahead. the group is defined as anywhere between 19 and 36 years old. millennials say they would take credit for someone else's work more than five times as frequently as boomers.

one more headline from that survey, the younger employees are more hikely to self-identify as workaholics. >> i'm not a millennial, so i can't comment. >> you're closer than i am. >> no, no. are my kids millennials? >> no. 19. you have to be 19 to be a millennial. >> 1929? >> 19 to 36. >> how do you feel about millennials? >> i feel like -- are demos broken out? i feel like we can say anything we want about them. >> i think we should try to attract some millennials. >> what i will say is that -- >> teach me how to cheat at work so -- >> no. we always thinking the younger ones are lazy, they have a sense of entitlement. >> and what part of all those things would be wrong? >> no, but that's what every generation thinks about the next. >> no, i think it's worse.

>> joe, with the snappers nowadays and the music they're all listening to -- >> get off my yard, kid. >> i think it's worse, though. you don't think there's an entitlement issue? >> absolutely. >> 100%. >> you're missing being a millennial by like a year? >> you don't think that's new? >> the entitlement? >> the sense that -- >> i'll tell you what -- >> it applies to these interns who say i won't do this, i won't do that. i've had people say i won't do this or that. when i was an intern, you would xerox and staple and whatever you were told to do. >> having read some stuff is in the "new york times" about god for bid some of these kids are growing up libertarian or conservative. gay marriage. they just assume pot, stuff like that. but then they look at what the government -- they look at the last eight years and they would like a job because they want to buy all these apps and all these

electronics and they know how sorry the state of the current, you know, or 2%, it's a 2% world. and a lot of them, the theme that maybe gets the government -- that's what i'm hopeful for. >> i'm the opposite way. >> opposite way of what? >> on a generational basis, the younger -- the millennials would be considered democrats or liberals than conservatives. >> i think that's starting to change. that's what i mean. socially. >> they think of liberals meaning socially liberal, but then there's a lot of people -- >> on an economic basis they think that, too. they may not appreciate -- >> you didn't see the article that was just written about -- i think it was in your paper, too. >> i'll send it to you. it was -- >> it was god forbid they might turn out -- i think it was one of your friends. i'll show it to you. >> you go find the story and send it to him. when he we come back, two months from today the midterm

elections will be held. john harwood will take us through some of the big agenda items congress will face when they get back to work. flum, the flame broiled inversion controversy. why some think it is time to ditch the womhooper. more quack after this. thankful for many things,tary y the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life.

welcome back. i'm joe kernen along with andrew ross sorkin and becky quick. compuware is reportedly making a

deal to sell itself. a deal could be announced as early as today. compuware started this process a year ago after activist hedge fund elliott manager tried to buy it. and iliad is still in the hunt for t-mobile u.s. the french telecom operator cfo said talks are continuing with partners to possibly improve its bid. last month, iliad offered 36% a share. the german company deutsche telekom rebuffed the bid. atlantic city is one casino smaller today. rebel is officially centimetering down today just two years after it on opened. looked like those lights were off this morning. drove up from down that direction today. 3,000 workers lose their job just in the case of rebel. two other casino res also closing. we'll have a live report from the boardwalk in the next hour. and we go to washington news this morning about our friend, our squawk friend, former house

majority leader eric cantor. he's joining investment bank molis & company. moelis said says cantor will provide strategic directive to corporate and institutional clients. nice to see somebody go into the private sector and do something -- >> there's been a lot written about that, politico and other places and almost sort of in a snarky comments about it. oh, now, so this is why he left early. ee he's going to go a big, fat paycheck. the president with all the connects the. >> he would have taken this job this summer, he would have taken it -- >> it wouldn't have mattered. >> he's been a strong supporter of business and -- >> but i would say happily. i don't know how uflt about it in terms of the revolving door. this is not one of those jobs that puts him in a lobbying position. >> why not? >> i think in this role, it's

less about washington per se. he will be advising companies about how to deal with washington, but i don't think -- we'll see. in the same way that you could say roger altman has the effort where he talks to people in washington. it will be different than him actively lobbying on behalf of companies, i would think. >> okay. >> am i being poly annish about this? >> i don't know. >> he's going to make a lot of money. >> if he could have left that position about a month ago before it went public -- >> i'm sure they can figure out something. >> let's get to some of these. john harwood, i saw something --

it was written that the -- it was a good election hearing tactic to focus on minimum wage and they could do much better. last week, i think it was written in either the "new york times," it might have been over the weekend, said this is a core issue to try to maybe do better in november with. then i saw in the president's radio address, talked about the minimum wage and there were headlines, the world is burning, obama talked about the minimum wage. then i saw biden go off, you have to take to a union audience, we have to take our country back. this is the beginning of what we're going to see for the next -- what is it, it's just about two months, right, still november. do they think that is an issue that can, like, maybe -- that the damages won't be quite as bad as what we're looking at right now? >> let's hope. minimum wage is something that unites democrats, it does appeal across party lines, divides

republicans. there's a significant number of republicans who are for it, but that doesn't mean it's going to drive the election. both sides are looking for ways to motivate their supporters relatively small numbers of people turn out in midterms. and so obama is trying to stoke that and it's a sensible play for democrats. that doesn't mean it's going to result in a -- >> but once again, you know, we've talked about how it's 2% of the population and maybe it helps a little within certain -- you know, people argue about whether it's a good or a bad thing. but it certainly isn't address the big problem. now we're going to spend the next few months, we're thinking small, not trying to do anything that might help a lot and then we're stuck again and two years left. >> it's not the only thing he's trying to do, but it is one thing he's trying to do. the bigger things that he wants to do on economic policy quarterback infrastructure -- >> but john, the people that he promised he would do something

before the election on immigration, they're not going to vote for anybody but democrats, anyway. and now he sort of -- if he delays that decision, some of those executives actions until after the election, that's pure election hearing, too, and that's trying to help people that are in vulnerable positions. that was all the scuttlebutt over the weekend, there's dissension within the ranks of the liberals and now he's going to put that off. >> it's not so much descension in the ranks. if you're marked prior at running in arkansas or marion landreau, do you want to -- at a time when your president is not very popular, do you want to take on the additional water of arguments that he has unilate l unilaterally unionized millions of people by congress? that's part of the calculation?

>> as it becomes clearer, they are annoy planning their -- but they didn't quite say it that strongly. they say the odds are true that the gop is going to win both chambers. here is what they do when they do win. that's scary. when you start planning out what you're going to do before it actually happens -- is there a risk in football at the five yard line, do you think? >> yes. i mean, that's not a great strategy. it might not be a good idea to hawk about what you're going to do until you actually do it. >> but what republicans are trying to do there is signal that it is not all about blinding washington to a halt, shutting down numbers. they're trying to say we're going to be measured and mature and go after concrete things that are attainable. this is a version -- a slightly

cleaned up version of what mitch mcconnell is saying to donors. it's not fundamentally different. it's about using the appropriations process, the bungts process to make a head way on particular issues. is that going to work? we don't know. but by talking a little bit about how you're going to conduct yourself with the majority, given the images that have been out there, the republican party, that is something that republicans want to use to reassure voters, especially in the center of the electora electorate, that they've got a handle on how to govern. >> all right. what else? a lot of sports? >> by the way, on the -- on the discussion you were just having with andrew, andrew was being a little poly annaish there. >> you think? >> hold on, i want to go back to harwood. what do you think his role -- do you think he's participate of a secret shadow lobbying system?

>> there are very few former members of congress who do the kinds of lobbying that people talk about. you know, run around, down the halls and work on particular issues. a lot of them go to 10,000 feet and say i'm doing corporate strategy. that's why you hire a former member of congress if you're an investment -- >> i want to go back to polyanna and say this is a revolving door at its worst, then? >> you know, honestly, i think the revolving door stuff is -- it's a useful issue to raise, but people are going the to leave political life and go into the corporate sector. corporations have to interact with government. they need political advice and they need to know the lay of the

land. >> the toxicity of that is a little overrated. >> what about rg3, do you think it's going to work this year? are you optimistic about the skins. >> you've got your fingers cross? >> you know, it does not look good in the preseason. he's got a load of talent. i think that if he can adapt himself to this different style of play, we'll be in good shape. the jury is way out on that. >> and college, i see our colleague chuck todd, it makes me wonder about him, you know? miami? seriously? >> that's where he went to school. >> i happen. >> you're such a fair weather friend. >> you don't mess with somebody's identity. >> sooner or later, you have to say maybe i should pick another team. . >> are you going to try to make becky give up rutgers? >> no. and they won, by the way. they went against washington. it was their first win against a

big pack 12 team. it was huge. >> great stuff coming up on nbc. we've got all the good games. >> joe? >> yeah? >> big win for duke over elon over the weekend. >> you know, that's the kind of teams you should play, john. anyway, thanks. >> ouch. >> i thought that was an irish drug company. what the hell is an elon? >> elon musk. next, preventing the next fender bender or worse. we'll tell you how general motors -- and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. find out how fast aflac can pay you, at aflac.com.

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welcome back, everybody.

general motors is getting ready to launch the first of its cars that are said to detrekt distracted driving. no word on what exactly they would do about that. maybe slow you down, maybe beep at you, make you pay attention again. again, it is an interesting development. when we come back -- >> i see a lot of people on the phone and a lot of people texting in their lap going 75 miles per hour. >> in west port over the weekend, because of a guys that was texting, he plowed into the guy in front of him. my kids watched it. yeah. >> bad news. anyway, when we come back, the back to school edition of the chairs. dow futures up by about 35 points, s&p futures up by about 4. "squawk box" will be right back.

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we've a lot to say about the u.s. open. brad gilbert's going to be on again -- >> and you were there. >> i was there. i'm going to talk about it. i also want to talk about wozniacki and rory.

>> yeah. >> because in my family, both my wife and my daughter love caroline. >> you got to tell the story about -- for people who don't know. >> we'll tell about it. but rory mcillinois -- the wedding invitations were out. >> yeah. >> and he broke up with her on the phone. >> i thought it was like a text or something. >> i don't know. it was bad. i like rory. i hope he doesn't go on a bimbo binge because she's a great gal caroline. and tiger, he you're famous -- >> must be good for both of them. they've both won. >> they have. and she did, you know. we're watching her, i think she plays today. and i'm -- anyway. but, andrew, we talked about this. this is your guy leonhart. >> leonhart. >> here is what he wrote. and i summarized it when it came out. and the title was why teenagers -- >> i remember this. >> why teenagers today may grow up more conservative. and here's what it stressed was. they were born after george bush, so they really don't remember what a really -- just let me talk, please.

they won't remember what a really bad president was like. that's already in the past. and now they're watching this president, who, unfortunately, stepped in to a bad economic cycle through no fault of his own. >> that's true. >> true. true. no fault -- and he's got these horrible republicans that won't let him do any of these really good things, according to david leonhart which would help the economy. therefore, they've got to -- we need to be wary that these poor young people may be so clueless they turn out conservative because they don't really understand that it wasn't his fault. and now there was another article out also that said young people, by nature, are, it's a given that they're liberal socially in terms of gay marriage and in terms of a lot of -- but that's what they consider liberal. they don't think deficits are great. they don't think high taxes are great. they don't want the government intruding in their lives and controlling everything. so it's possible you end up with someone like me that they really do get a clue where all they care about is prosperity through

free markets and the government can just get out of the bedroom -- >> kind of like libertarian almost. >> yeah, we believe in safety nets for those that are truly in need, but we also think that the best things in life come from earned success and come from, you know, and the dignity of providing for yourself. and not being on the dole. how can you argue with any of that? i can't even believe you'd look at me to think of arguing that. >> because i love arguing with you. >> but you look so wrong about everything all the time. >> let me ask you this, you said memories are short that people are not remembering -- >> a really bad president. >> so what's to say they don't remember this president? >> because they're living through it. i mean they weren't there living under bush. >> this is like you with your conversion under carter? >> this is like me watching carter and then watching reagan come in. exactly. that -- >> okay. >> that forever set me -- >> set you -- it scarred you. >> i think you always have a pendulum swing, too, though. you had the country pushing far left, and i think it tends to come back. >> you will have a pendulum

swing. yeah, yeah. >> well, we had a lot of other stories to get to. >> we got 30 seconds. >> i thought you would enjoy this story because it's a sto story -- >> you can do a lot in 30 seconds. >> college football coaches, how much they're paid and a study that says they're actually paid what their worth on a relative basis to ceos in america. >> really? >> the average football coach division 1-a is paid $1.9 million. they believe that that's actually within line on a relative basis to other ceos. they talk about a number of coaches, who get private planes as part of their deal. and also some other -- so it's a pretty interesting study. >> a lot of perks. >> a lot of perks. >> if you're a winning coach. >> if you're a winning coach. if you're not a winning coach -- >> can make a huge difference. >> there is no -- parachute. golden parachute. what's the word that i'm looking for. anyway, should investors brace for the september swoon and will this job week's jobs report trigger a sharp reaction.

back to school for the kids. and back to business on wall street. the markets brace for the jobs report. economic turns in europe and more unrest around the world. >> flame broiled fire storm. one top democrat says it may be time to ditch the whopper. we hear the argument against the king, and tim in just a few minutes. >> and boardwalk empire cracking. the revel closing its doors this morning. says atlantic city have a chance of recapturing their former glory. the second hour of "squawk box" begins right now.

good morning and welcome back to "squawk box." dnc have that back in there, but i know you've been with us, i'm joe kernen along with becky quick and andrew ross sorkin. a big weekend of tennis. i managed to get to the u.s. open as i talked about last week. we saw serena completely overpower her opponent. i mean, watching serena play is like watching me play my wife. i mine it really is. it's like -- >> you lose that badly? >> i lose that badly. what did you think i meant? >> that's exactly what i meant. >> i'm overpowered. 6-2 to the same -- yeah, what did you think i meant? >> that's exactly -- >> we also caught a match with andy murray, who now will move on to face novak djokovic. murray is classic to watch. i was just close him when he played it. these two guys each serve 135 miles an hour. nobody hits it harder. and some of the volleys and rallies that they had are as good as tennis ever is among any two opponents.

this guy -- >> you got to go like this. you stuck your hand in your hair. >> this guy tsonga and -- >> now it's up in the air. now it needs -- >> well people already -- >> you got it. >> someone wrote in the twerp and the wig are both back. >> am i the wig or am i the twerp? >> i don't think you're either. i think they're happy you're here. >> you're the wig. >> i'm either -- >> i don't want to be the twerp. >> i'll give you both. >> there's brad gilbert. see my hair could look like that. but we're going to talk to b.g. at 7:40. >> and that is proof your hair is real. >> because who else would -- >> reacts to humidity. that's real hair. >> yeah. it was so hot. >> i know. this was me at the beach all week. >> he'll be joining us at 7:40. andy murray is classic to watch. he gets mad. he gets so good though. i'm excited about this next tournament, too. serena, this is her first quarterfinal in a year which i don't understand. first time -- >> was she out? was she injured? >> she's dominating. >> i thought she was injured one

of these past years. let's get you to some of the morning's headlines. >> this will be three in a row. and she's won five already. >> let's tell you what's happening in corporate news. dollar general has raised its bid for family dollar. that new offer worth $80 a share in cash compared to its august 21st bed of $78.50 per share. dollar general also says it will divest up to 1500 stores if required to do so by the ftc. and it's also offering to pay a $500 million breakup fee to family dollar if the deal doesn't happen and isn't approved on an antitrust grounds. now family dollar so far has been sticking to its guns, saying that its deal to be acquired by dollar tree is the better deal in part because it worries about the antitrust issues. this deal perhaps gets them over the finish line. we will see if it gets them a little bit closer. and one point that i just want to make because i was wrong when we were talking about it earlier. we talked about whether they look at this deal relative to walmart. and i suggested to you that they

didn't. that's the view, frankly of dollar tree. dollar tree worries that it's a small universe, that it's not relative to walmart. the dollar general folks, of course, want to say, look, this deal compares to walmart very favorably, walmart needs more competition. >> it doesn't matter what dollar general or dollar tree thinks. all that matters is what the ftc thinks. >> the question is going to be how the ftc thinks about it. the other piece of this is they just hired david boies' firm who also employs the former head of antitrust for the ftc. really sort of strengthening their sort of lineup trying to suggest that they're more -- not only committed to this deal but that they believe it will go through. let's tell you about some other news, apple says it's investigating reports that intimate photos of celebrities like jennifer lawrence and kate upton were hacked through its icloud service. apple says it takes privacy matters very seriously. and by the way, joe, one other point on this, apparently, this according to gadget the way that the hackers just figured out how to do this, they used the find

my iphone feature. >> have you used that feature? >> yeah my kids do. >> and as long as they could figure out your e-mail address, they were able to use that find my iphone feature somehow to exploit a loophole. but again, it wasn't that the entire cloud was somehow hacked. it was that each individual account was hacked. but you had to get the e-mail addresses. in other apple news the company is said to have struck deals with visa, mastercard and american he press. this is important because it turns on what's going to happen to the new iphone, and the -- potential it becomes a mobile wallet. the newest version of the iphone expected to be unveiled during an event that apple is now scheduled for september 9th. a lot of people going to be watching for that. >> it is a huge week ahead for jobs and for the markets. we have a ton of data coming up. kicking off today with manufacturing and construction spending numbers. auto and truck sales later in the week, as well as fed's beige book. it's all leading up to the big report on friday.

that's when we get the government's jobs report. joining us is michelle meyer, senior u.s. economist at bank of america, merrill lynch and mike ryan who is chief investment strategist at ubs, and folks it's good to see both of you. mike before we jump in to what we think is going to happen next let's talk a little bit about what has happened. we're halfway or three quarters of the way through at this point. almost. and it looks like after august's numbers we're looking at the s&p up 8%. the nasdaq up 10%. but the dow only up about 3%. what do you think happens from here on out for the rest of the year? >> well, i do think the gains are going to be moderate. i think we had a pretty decent run-up, obviously not the -- >> mike, i hate to cut you off but i think we're missing your microphone. i don't know if it slipped off. we'll give you a chance to figure that out and let me ask michelle a question in the mean time. michelle we do know that we have the big jobs report coming up on friday. how important is that to the market? how important is the ecb meeting this week, as well? >> this is a data folds week.

both in the u.s., and as you said in europe in terms of the ecb. in the u.s., jobs will finish the week on friday. we're looking for 245,000 for job growth which would match the three-month moving average. it's a bit above the consensus forecast but we think that the early indicators on labor market all have been healthy. in the sense that initial jobless claims have continued to come down hovering around 300,000. the consumer confidence numbers were strong, in particular labor differentials narrowing as more people are saying jobs are plentiful. the manufacturing data has been very healthy. and that's suggesting that we should see continued hiring in that sector. so to me i think that the jobs report should provide one additional and important piece of information that the economy is, indeed, continuing to grow and continuing to expand. which is absolutely critical for people when they're thinking about the rest of the second half of the year. >> okay. let's get back to mike. mike we cut you off in the middle of that. but what do you think happens from here? >> look, i think the markets can

still grind higher. we see the following. we still see corporate profitability continuing to be at this moderate kind of high single digit range. which i think as we saw in the second quarter, that's the kind of environment that typically translates into better equity market performance. we think while the fed at some point is going to begin the process of tightening, we think that's not going to happen really until about midpoint of 2015. so from a profitability standpoint and a policy back drop i think the equity markets are still set to see higher. but it's still going to be choppy. we're not going to get the straightline movements we had in 2013 even earlier parts of 2014. i still think there's going to be a fair amount of volatility as we price in some of the geopolitical risks, continue to focus on what the next move by the ecb will be and exactly what the timing will be for the fed. >> mike, what we've seen to this point is nothing to sneeze at at least if you're looking at the s&p or if you're looking at the nasdaq given what we've seen in the last couple of years with the markets. when you talk about continuing to grind higher are you talking about north of 10%, are you talking about north of 15% when you look at the s&p?

>> no we're looking for moderate gains going forward. our price fargate for the next six months is 2050. that translates, 7.5% s&p gains. i think it's going to be a decent pace of growth in terms of s&p profits and i think that's going to translate to decent performance but it's not going to be the kind of double digit returns we saw last year and even the first part of this year. >> michelle let's talk a little bit about what you mentioned. you do think the jobs number is going to be stronger than expected. you do think the economy is pushing along. the other thing we have happening is the ecb and again where we're getting out of that whole cycle of the fed maybe starting to really finally tighten while the ecb may be getting into it, that makes these markets look more attractive. which of those big things do you kind of pay more attention to? >> well i think that's right. there's the dynamic of monetary policy globally. you can't just think about what the fed is doing and you're right we're later in that stage. we think that we're starting to set the stage for the eventual exit. although we're up in the champ that they're not going to start hiking interest rates until september of next year.

we still have a while of this extremely accommodating policy before we start hiking interest rates. the markets are forward looking and they're looking at a fed that's beginning that exit process and potentially in the ecb that is going to start to engage in qe. our european economists don't think that they'll see an announcement this week but one of the things that is something the markets are looking for is a rate cut from the ecb. which would, i think, do a lot in terms of signaling that that -- they're going to begin an easier monetary policy environment. >> mike, do you expect to hear any big announcements in terms of qe from the ecb this week? >> not in the short-term. i really think, becky, the bar is set a bit higher than that. we'd have to see certain conditions being met before they take that next step of qe. we'd have to see the inflation data continuing to disappoint. continued concerns about the growth prospects in europe and you may have to see a further escalation in what's happening in terms of the ukrainian crisis. likewise the bar is set higher for the fed as well. i think for the fed to begin tightening we're going to have

see certain conditions met as well. you have a relatively high bar for the ecb to begin quantitative easing. but also a high bar for the fed to begin tightening. >> thank you to both of you for joining us >> thank you >> the burger king tim horton's hookup gaining negative attention on capitol hill. house budget committee ranking member chris van hollen says it may be time to ditch the whopper. he sounds off on the deal, that's next. when fixed income experts work with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration.

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welcome back, everybody. we've been keeping track of the futures this morning. so far it looks like we will be opening higher. off the highs a little bit of the morning but the dow futures still indicated up by 28 or 29 points above fair value. s&p futures by about three points. also another example of the revolving door between washington and wall street this morning. former house majority leader eric cantor is joining investment bank moelis as vice chairman and managing corrector. cantor will also be elected to the board. >> i think this is shadow lobbying. >> you hire people for their expertise. if you think you're hiring them for expertise on wall street -- >> i think actually you should be able to go back and forth. i don't get completely crazy about it. but i think kind of earlier was a little off. >> that's what your expertise is. that's exactly why -- >> it's just a different form of lobbying. >> it's access and everything else. i mean no one thinks that you

hire all of a sudden the guy becomes a great -- the guy's going to become a great investment banker. >> yeah. >> all of a sudden. he's going to be in there thinking about which companies are undervalued and how does -- >> geithner is out there to raise money internationally for sovereign wealth funds. >> and that's all about access, too. the big burger king tim horton deal has lawmakers upset. one of those angry members of congress says it's time to ditch the whopper. chris van hollen is the ranking member of the house budget committee and also the co-sponsor of a bill to halt corporate inversions. congressman it's good to see you. is it upon to get support from the other side of the aisle to actually do this. >> well i think there's growing awareness in the american public that the public is paying the price for these corporate inversions. according to the joint tax committee, which as you know are nonpartisan tax accountants, it will cost the american taxpayers $20 billion if we don't address this issue. so, sandy levin and i have

introduced a bill, we hope, that our republican colleagues -- >> the answer is probably no, though. okay so $20 billion. there are trillions of dollars with a "t" that aren't here because of the tax system the way that we do things. and if you were king, if you were burger king, congressman, or king chris, would you change the way that we do that so we'd only tax corporations once? i mean there is a motivation to do this. fish got to swim, birds got to swim, fish got to fly. i mean there's a reason this is happening and there's also a reason that our companies here are able to be bought by foreign companies because they're valued more because when a foreign company's tax profile is put on our domestic companies, they're worth more to them. so, this is broken. this is broken. this -- what you're doing right now is fixing someone's fever by

packing them in ice and not doing anything with an antibiotic. >> hey, look. my view is this, yes, we need corporate tax reform. there's no doubt about it. but right now you got to stop the bleeding before you perform the larger operation. because as you know, and you just said, you're not going to get corporate tax reform in the next couple months. you may not get it for the next year. >> but you won't get this, either. why not shoot big and do something that would really help? >> listen, right now corporate tax reform is being used as an excuse not to solve this immediate problem. this immediate problem is actually simple to solve. we could vote on the bill that we've introduced today. >> we could vote -- >> corporate tax reform -- >> let's just vote that foreign companies can buy any of our companies. this is just another form of protectionism that we're doing right now. >> that's not true. bee have a law in place that prevents inversions and the final company, when the u.s. company represents over 80% of the final company, this simply

says when the u.s. company represents a majority -- >> chris, u.s. companies will still build facilities outside of the country. there will still be a net outflow of capital. this is all -- this is just one small part of what happens. >> yeah, but you're right. but your argument is, we should not solve this problem until we solve the entire big problem. i'm for solving the larger problem. >> but if this -- >> you're just doing it to look good. it's just electioneering again. >> no, that's nonsense. look. the reality is that the one piece of tax reform that was put on the table was by david camp, right? the republican chairman of the ways and means committee. who was the first person to walk away from it? speaker boehner. he said, blah, blah, blah, so the notion that you're putting forward that somehow we're going to get corporate tax reform in the near term, as the solution to this problem, doesn't -- it doesn't make sense politically so why not true and get this done now? >> congressman -- >> that's my question to you.

>> as you may already know, i happen to agree with the idea of putting a tourniquet on this issue right now and trying to deal with the larger issue. however i'm surprised that you and others have taken up the issue of burger king as a central example of the inversion issue. i know that burger king is widely known. but that particular transaction, at least as far as i see it, would probably be legal, even if you change the law such that 50% of a company -- that the company has to have foreign owners of at least 50%, because that -- and that that deal doesn't seem to at least be driven in the immediate term by taxes. what do you say to that? >> well, i think the burger king case is a closer call with respect to the law that sandy levin and i have prepared. i think that's true. but -- and we should be very clear, we're not talking about blocking mergers. mergers are an important part of the market system. what we're talking about is mergers where the larger american corporation takes on the foreign flag in order to avoid u.s. taxes. and in the case of burger king.

they don't have all these profits sitting in overseas bank accounts, but the reason they would change their tax home and residency to canada is to engage in earnings drippings. where the canadian corporation then lends money to the u.s. portion of the company, and the interest is then deducted from their u.s. taxes. so it's a way to dramatically reduce their u.s. taxes through earnings stripping. that's the only reason they would change their tax home. in other words this transaction is perfectly acceptable with that exception the only reason they would do that is to engage in earnings strippings. >> congressman what do you make of the fact that warren buffett is involved in this transaction? a democrat. he's argued for higher taxes at least on the personal income level. >> well, this is one of those situations where people will continue to play by the rules until the rules change. so, no one is arguing here that

this is somehow illegal. but, the answer to it is to change the law. just like we changed the law in the early 2000s when you had a lot of these american companies going off to the cayman islands and bermuda. we changed the law. that helped reduce the number of inversions. now we have a situation where you see more flight, i couldn't agree more that we should do longer-term tax reform. >> that's a problem. >> but people are arguing for longer-term tax reform as an answer to this problem. know that they're simply allowing this problem to fester. because we're not getting that in the near-term. >> you know you go like there were two places to go, cayman or one other place. at this point any other country, basically, would be more favorable. eu mean, what if illinois, you see everybody leaving illinois or some of these high state taxes they go to texas, you see businesses go to florida can you even imagine just trying to just make that illegal and saying, you know what? you're not very illinoisic, you're not very patriotic to illinois, are you leaving your

tax dollars? well what -- what do you think of illinois? you don't like chicago? you're going to texas -- you would never say that. you would never -- you would see that the flight of capital is causing it to happen, and you would try to do something to make it more business friendly to attract capital. instead of just trying to do it this way. >> yeah, but again, no one's argues that we shouldn't do corporate tax reform. okay? but as you very well know, there's no corporate tax reform plan on the table write now that has consensus. the republicans couldn't even agree -- >> you know, chris, i think we ought to let them go. they still haven't gotten their fries. so -- >> burger king still got that crappy smoky taste on the burgers. let them go. i don't even care if they leave, do you? >> hey, look, they can merge anywhere they want but they shouldn't leave american tax pacers holding the bill. >> how about that weird king they used to have with the plastic face. how creepy was that guy? let them go. >> all i would say if i was mcdonald's i'd start a big buy

american campaign right here. >> mcdonald's has its own -- the clowns are pretty scary, too, if you think about it. speaking of congress -- speaking of congress -- >> anyway, chris, thank you. >> good to see you. >> always good to see you, as well. >> likewise. >> when we come back 'tis morning, another leg room battle at 35,000 feet. plus, the crumbling boardwalk empire. the revel closing its doors this morning. shutting off the lights. is this the beginning of the end for atlantic city or does the gaming town have a chance to recover? that's coming up in the next half hour. p breath in... and... exhale. aflac! and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. find out how fast aflac can pay you,

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another flight diverted due to a flight between passengers. this is the third time such an incident happened in the last week or so. this one a delta flight going from new york's laguardia to palm beach, florida. i don't know if you heard about what happened last week. witnesses say the altercation began when one of the passengers tried to recline her seat. and the passenger behind her got upset. the airline says the pilot diverted to the closest airport out of an abundance of caution. last week of course a flight was diverted after a fight broke out when a passenger used a so-called quote knee defender. that's this new little gizmo you can use the device prevents a seat from being reclined.

>> what? >> so you can put something into the seat -- >> is that legal? >> well apparently not. >> unless it's -- kind of a health issue. >> you should be able to do -- >> i can't wait to hear where sorkin is like, manhandling a little baby or something, and trying to physically take it back into coach, and they have to divert to get to -- because you want -- >> kissing the baby. >> who got in trouble the leaner backer? >> the person who put the device on that's preventing the leaning back. coming up more tax inversions. we're back in a moment. bulldog: quarterback takes the snap...

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welcome back to "squawk box," everybody. the eu wants more information from facebook about the social network's prepared $19 billion acquisition of what's app. "the wall street journal" reports european antitrust officials sent a second round of detailed questions to both company's competitors and customers. the main focus seems to be identifying the differences between a social network and a messaging application. al by baba is reportedly planning to launch its u.s. ipo next week. the sale could raise more than

$20 billion. the company is still waiting for s.e.c. approval to launch the sale. and former s.e.c. capital advisers manager matthew martoma is scheduled to be sentenced today. prosecutors are calling this the most lucrative case ever brought. >> our next guest is allen murray. this former "wall street journal" deputy managing editor is set to talk about everything from tax inversions to apple's major icloud hacking headache. and good morning to you. >> thank you, andrew. good to be here. >> first of all, congratulations -- you've been in the job now two weeks? >> two weeks. i've got it all down. >> you figured it all out? >> have it done. look fortune is a great franchise. i'm really looking forward to working with -- >> what should we expect to see? >> the big challenge is with the split of "time" inc. from time warner fortune came out of cnn money so we're really creating a digital presence from scratch.

that's the first big challenge. and figure out what a multiplatform business franchise looks like. >> that's a tricky thing these days. >> we look at newspapers. we look at magazines. we know how challenging it is. when you take on digital can you do it and get out of the frame that so many businesses that have been stuck with in that industry trying to do more and more every year with less? >> no, it's hard. but i think it's doable. the one thing i learned at the "wall street journal" is if you have a really strong brand you can come in, you can even come in a little bit late and you can still win. and i think that's what we're going to be trying to show over the course of the next couple of years. >> let's talk topics. we were talking about tax inversions before with the congressman. >> yes. >> you have a cover that's really all about tax inversions. >> that was before i got there. >> becky is in there. there's a lot of people in there on that issue. >> positively un-american. this is taking a really strong stance saying that these companies are -- >> what kind of --

>> abandoning the country. >> what kind of feedback did you get from the business -- >> look the interesting thing and this is what happened in your conversation, you guys like, a fight with each other but we all end up at the same place. which is, our corporate tax system is broken. >> right. >> it needs to be fixed. everybody agrees it needs to be fixed. we might disagree on exactly how to fix it. >> right. >> and the other problem is washington is broken and so washington can't take on a big -- i covered the 1986 tax reform. >> right. >> where are you? are you on the -- so alan sloan wants a torn ek it put on this thing. >> you trying to get me to disagree with alan sloan? >> he wants a torn ekate put on it -- >> might not have been the same -- alan was at the "journal" he actually understands some things. >> let's hear it. >> i think a tourniquet might make some sense. probably -- >> other people think we need to force the issue that the tourniquet won't allow the larger reform to take place. the larger reform is not going

to take place certainly not before the next election. washington is too dysfunctional. >> what happens -- >> these things really, really complicated and hard to take on and washington just doesn't have the ability right now. you have to hope after the next couple rounds of elections we have a chance at fixing that. >> it's not what is it 10% of the tax bill, it would be so easy -- >> $20 billion over ten years. >> and two trillion is over there and then alan you think about the if we unencumbered businesses completely. he's worried about a race to zero. i think it should be zero everywhere and then you pay personally. you pay through dividends. >> that's right. but then you have to take on the personal -- then you have to take on the very difficult problem of the personal tax on -- is it going to be and how much -- >> you know the election is coming up. it's probably only going to get worse for democrats. and it's not going to pass now it's more electioneering, it's popular to say corporations

don't pay enough tax. it's popular to say that. >> almost everything that happens in washington right now is electioneering. >> but if you're going to try -- >> that's the real sad story here. i mean you talk about positively un-american, that's the fact that we can't tackle -- >> so here's what we have -- >> both sides agree needs to be tackled. >> democrats are going to push the tourniquet, republicans are going to push the overall thing and neither one of them is going to work. >> what happened back in 1986? >> a lot was different in '86 but it was one of the great bipartisan achievements of modern times. it took a couple of years. but, one of the things that's changed is that in the '80s you had a group of professionals in washington who weren't particularly partisan. who really thought their job was to take the partisan impulses of their bosses, and turn it into good policy and good legislation. that's been blown up in the last couple of decades. it doesn't exist anymore. and it's not going to be easy to put back. >> i want to transfer over to --

segue over to a different topic which is apple. because you guys have been writing a lot about it. the icloud hacking situation over the weekend. the nudities or the nude self-y whatever they're called. >> i think this is a big issue. not so much the celebrity nude photos. last week we had jpmorgan and a handful of other banks that were being hacked by russians. >> right. >> in that case they think, jamie dimon talk about what 600 people he has on his staff working on cybersecurity. >> and the amount of money that they spend every year he wrote about in his annual report. >> huge amount of money and this affects every single company in america. cybersecurity has become a huge issue. look, apple's coming out on what september 9th, talking about a new mobile payment system. well how are we all going to go to a mobile payment system if people don't feel that their money is secure. >> do you have anything in the cloud that you should tell us about right now? >> i can -- i'm quite confident

that there are no nude photos of me in the cloud. and i certainly hope there are none of you. >> i was just going -- because you couldn't see me either, right? that's what i said earlier. >> how safe should consumers feel though? when you had up what happened with target, the banking situations, look at what's just happened with the cloud. it gives me a little bit of pause. >> absolutely. it's very frightening. it's frightening on the consumer level. it's frightening on the national security level. i talk to guys who run big sort of infrastructure companies, mines, power companies, they're worried about this, too. about somebody hacking in to their systems and being able to -- >> can i make a different argument? from the bank stuff when you think about target or anybody else, nobody has been ef eerily or not even severely truly harmed. everyone got the money back. >> that we know of. >> on the banking stuff -- >> it was very expensive for target. >> for the companies. but i'm saying on an individual basis, everybody wakes up and they see this news and they freak out and think oh, my goodness everything's going to be hacked and if you really

think about it, the celebrities are hacked. it was on an individual basis. >> and it cost a lot of money. >> it cost a huge amount of money. a huge amount of attention. >> the consumer will pay for it on the back end. but in terms of the sort of from a sort of individual perspective we have yet to be truly sort of -- >> and so you -- >> thankfully. >> you have to keep hoping unless you're jennifer lawrence. >> yeah. >> you have to keep hoping the good guys win the arms race. but it is escalating every passing day. it's a really big, big thing for american business. >> i can't even imagine how much it's even costing them. the banks have talked about how they -- >> billions -- >> are effectively fighting nation states. and they're effectively fighting nation states at this point. >> correct. >> they have to protect themselves. >> i'm not arguing this isn't a big issue for business or a larger issue for society but on an individual basis sort of the emotional reaction that people have to this type of thing when they say oh, my goodness is my stuff really safe, i think it's

actually safer than they think. you think i'm totally -- >> not if you're one of those celebrities who had your photos hacked. you don't feel very safe about it. >> you are the caretaker now of quite a brand and you remember even buddy fox, holds up and says this is the bible. and it was fortune with a picture of gordon gekko. but he did hold up a picture of fortune. >> thank you. that's the nicest thing you've ever said to me. >> it probably is. my advice to you would be number one -- my advice to you would be get a web strategy together. >> that's -- >> figure out digital. >> that is -- >> figure out -- >> that is so wise of you. that is job number one. >> because print might not be as lucrative -- >> i think magazines will be around for a long time. but you got to figure if you're going to grow your audience you have to have a good digital strategy and it's not easy for a magazine to figure out what a daily digital strategy is and that's what we're going to do. >> that's all i'm saying. get the digital -- get a digital

strategy. >> the articles are better in fortune. >> the articles are better in fortune. >> we have some good comments. we have some very good columnists, becky. >> thank you. not that you're talking about me. >> there's nothing in the cloud on alan sloan is there? tell me know. coming up. >> alan thank you. >> coming up, a -- a steamy labor day. a steamy conversation here at the u.s. open legendary tennis coach b.g. will join us next on the big weekend winners and losers and what's to come and then later, the plan to kill amazon. how the retail giant's competitors are attacking amazon's market share.

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use #x to pause the conversation before you drive. because no text is worth a life welcome back. making headlines, europe's ryder cup team is now set. the captain naming three wild card picks this morning. ian poulter, you might pick him. lee westwood who is just always stolid and steven gallagher. they will join the nine automatic qualifiers, including rory mcilroy. u.s. captain tom watson expected to announce the american wild cards later today. the matches against the u.s. will take place at gleneagles scotland starting september 26th.

>> -- supposed to -- >> this year for us? i don't know. not tiger. >> i don't know who will pick. it will be interesting to see who watson picks, and that tournament is actually the week before at dunhill links. >> talk more about that. >> we do have to talk more about that. serena williams reached her first grand slam quarterfinal of the year with a 6-3 victory over kaia kanepi. at the u.s. open yesterday. keeping her head in the running for a third straight flushing meadows crown. >> does this guy have two names? >> no. b.g. brad gilbert joining us now to talk winners and losers is brad gilbert. >> two-name guy. >> the two-name guy. >> former professional player and coach, and met up with you, brad, thanks for coming down yesterday, it was great to see you. family loved seeing you. and he was -- he's amazing. gives us analysis live. while we were there. and one of the matches that we

saw, we'll get to serena in a second. but between andy murray and tsonga, that's as great a tennis as i mean certain of the volleys and rallies, that's as great as it gets, bar none. bar djokovic, nadal, anyone. >> it was tremendous tennis. i was there till 2:26 a.m. last night when the match finished. >> he's showing off. >> i did not get back to my hotel until 3:05 in the morning. and all of a sudden i got the wake-up call at 6:50 from the driver outside you're there. i was like, okay. it was great tennis yesterday. i thought murray played fantastic, in beating tsonga. and he sets up a blockbuster on wednesday night with djokovic. and the tennis was outstanding. for murray covering the court like a hawk yesterday. tsonga with his athleticism. it's the best i've seen murray look in a straight-set victory since wimbledon in 2014. >> we were fully dug in for what i thought was going to be a five-it was -- he could have won

the first set and i was sure he was going to win the second set when he was up a break. but, andy murray dug down. and whenever he's won, brad, he has the ability to dig really deep and to get to that level you need to be able to do that. we all are able to do it. >> well, he's really struggled the last 13 months beating top ten, top 15 players. and i think this was a luge step for him. he lost the match to him a month ago where he was up 3-0 in the third, in toronto, and i think that really disappointed him. but he took care of business yesterday. and i think that's the best i've seen him look from start to finish. >> i'll tell you, start watching and you start really getting interested in all the stories. serena, she was nice to say that the girl gave her a run because the girl did not give her a run. i mean serena was just overpowering. how come she hasn't made been past a quarter finals? i mean you expect she'll win or will caroline give her a run for her money? >> well, serena, if she would win, stands to make $4 million, would be the biggest hit in tennis history.

she's peaked this year in wta events and surprisingly enough has not played that well in slams. nobody in eight sets so far, super jo has taken her past three games. she plays flavia pennetta in the quarters who she trounced last year in the semis. just crushed her a couple of weeks agoa cincinnati. she's playing outstanding. i think the leopard print dress that she's wearing is working for her. she goes ah that works for her. >> i said that looked like when i play my wife. i mean the power game versus someone who can barely return it. you know what i mean? but right, my wife is serena -- >> yeah. >> that's the only problem. so who is playing today brad? the big forecast? i mean isn't caroline playing again today? >> caroline wozniacki is playing sara errani. it's a great story. a lot of people know about, you know, what happened before wimbledon with rory mcilroy. >> you should talk about that. because, in my house, there's a

huge, both my daughter and my wife are huge caroline fans. and they're just mad at rory. they're just mad that he did it over the phone. and then he started winning again. and she's a great girl. and i'm worried, i said, i hope he doesn't go on a bimbo binge. was she not a great girl for him? and look at her now. >> we go from the cloud to tennis, to you slide in a bimbo reference. good, everybody. >> i just don't want him the tiger problem. i mean, i just think she was a really good catch. and i think -- >> she's better off without him. she's been winning as a result. >> and i love rory. i mean not to disparage him. i'm taking my wife's -- i know when to argue and when not to. you think that she can beat serena this year? >> i'm going to say her stock just went back up on the upswing, and she is doing something unusual to prepare for her tennis. she said that in early november she's running the new york marathon. she's been running upwards of eight, ten miles a day. to get rid of some of her things going on in her head, she said a

little bit. and now finally after a couple years she's playing the best tennis that i've seen from her. played fantastic the other day against sharapova. plays sara errani today. a very tricky player. but listen, if anybody there is to root for her in this tournament, it's her. she's a great story. and i would love to see her go all the way to the final. >> all right. so who do you think will be in the final? djokovic and federer could meet, right? is that right? >> love the way that federer's playing right now. remember we talked about that stock the other day. pays huge dividend. can still go higher. he's playing great. i think potentially he's on a collision course maybe with dimitrov. but i think wednesday night match, don't count out andy murray, 12-8 down head-to-head versus djokovic. i think that's a great match-up. but right now the eye test tells me the two guys playing the best tennis are djokovic and federer. >> and women just real quick? >> winning it, i pick fed before

the tournament but i'm starting to waffle now a little bit. seeing you know, how good the djokovic is playing -- >> no, no, women. who is in the final, quick? >> well i picked in my draw i picked djokovic and fed. i really went out on a limb there. i picked number one and two seeds. but right now, i'm liking what i saw from andy murray yesterday. >> for women who is in the final, for women who is in the final? >> wozniacki and williams. >> that's going to be awesome. >> all right. >> super joe who is in your bracket? >> same. same. same picks. same picks. >> andrew, you were quiet today. >> i'm sticking with you. you know, i got -- i'm going -- i'm giving up my middle name for brad. >> we need pronouncers on all these names, brad. >> you got too much of an earful from the cloud. the tennis took us down. >> all right. see you later. thank you. thanks for getting up early, too.

>> 2:20 last night. >> all right. that was -- i got up before he was finished last night. wow. when we come back this morning, atlantic city's revel casino shut down early this morning. less than three years after its open. up next, we're going to talk about why september looks to be a particularly devastating month for atlantic city. tdd#: 1-800-345-2550 trading inspires your life. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge

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welcome back, everybody. some big trouble in atlantic city. showboat casino closing on sunday and the 2-year-old revel casino closing early this

morning. morgan brennan is there, and she joins us with more on this story right now. morgan, good morning. >> good morning, becky. yeah, tell take a look behind me. this is a $2.4 billion revel. it just went dark officially closing its doors just a few hours ago. and if you look just past that, that's the showboat. the caesar's casino that as you mentioned closed on sunday. now together both of these properties employed 5500 workers, the majority of which don't have new jobs lined up. now that coupled with the fact that this ask a redeveloped part of the boardwalk that's now going to sit vacant made for a very sad holiday weekend among both residents and tourists. >> it's just very emotional. i think it's kind of surreal. i don't know if it's hit me yet. you know, we're going to get in our car, we're going to drive home, and at some point then we're going to say, we're not going to the revel next week. >> unemployment of 6,000 or more is not good for anyone. and so it's very sad to see that

happen. >> you start laying people off, a lot of crimes start coming with that. >> later this month another boardwalk casino trump plaza will also close and that's going to bring september's job losses to a total of 7,400. or nearly a quarter of the entire casino workforce. triggering one of the biggest mass filings of unemployment in new jersey's history. so big, in fact, that the convention center is being rented out as a resource center. the three casinos accounted for over $30 million in tax revenue, or about 15% of the city's budget. and that means hundreds of municipal workers could also face job cuts moving forward. now, we're seeing this because more casinos continue to open in other states. baltimore's horseshoe casino opened just last week. and that's contributed to an almost 50% drop in gaming revenue here since 2006. but while gaming analysts say less supply will actually benefit a.c.'s remaining casinos, the job losses are the biggest worry.

and remember, a.c. struggles with 14% unemployment, and a poverty rate that's double the national average. so this is a very critical time both for atlantic city and for the region, as a whole. becky, back to you. >> morgan, thank you. i know that one of the huge issue is just these casinos going dark it's a limited skyline to see all of those go dark at the same time has a lot of people worried about what happens in the city. are there any plans at this point whether they can actually figure out whether they can keep those lights on on the boardwalk? >> i know they're looking to potentially keep minimal lights on. but right now, the biggest, i think the biggest push is trying to get new investors in to these vacant properties, and also keeping security guards at least minimal security around the properties to keep the so-called riffraff from coming in and squatting here. so, we'll have to see what happens. but, word is there are investors looking at these properties. >> all right. morgan, thank you very much. morgan brennan. >> okay. coming up, the bull market has plenty more room to run. that's at least according to

"squawk" market master jeremy siegel. he's going to join us next on his target for the year end and his take on this week's jobs report. plus, nude celebrity photos leaking online. raising concerns about privacy on the cloud. find out if your photos -- depends what's in your photos, could be at risk when "squawk box" returns. location. location.

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vacation's over. it is time to get back to work. >> looks like you've been missing a lot of work lately. >> i wouldn't say i've been missing it, bob. >> good one. >> we'll get you ready for the short trading week. and jobs friday with "squawk" market master jeremy siegel. >> plus the plan to kill amazon. how the e-commerce giant's competitors plan to chip away at amazon's market share. >> and a high profile hack attack. nude celebrity photos leaked online. we'll tell you how the breach may have happened and what apple is doing to fix the problem. welcome back to "squawk box" here on cnbc first in business worldwide i'm joe kernen along with becky quick and andrew ross

sorkin. take a look at this video of kate -- no it's something else. we're showing you right now at -- we aren't going to show that. if you're tuned in for that. this could be making you fat. not just soda makes you fat. this video could make you fat. we're going to tell you why later this hour. >> how? >> i don't know. oh, that's chris what's his name. which one is this? is this -- guardians of the galaxy? >> no. >> i saw tom cruise over there. >> i saw tom cruise. >> yeah i saw chris pratt. is it just one video? no it's more than one video, yeah. because i saw chris pratt. >> maybe it's going to the movies. >> maybe -- >> popcorn. >> you know popcorn. >> it's the new study on carbs maybe. we can talk about it. making headlines this morning a major u.s. business lobbying group says foreign companies in china feel targeted for unfair enforcement of anti-monopoly and other laws. the american chamber of commerce in china now warning that investment there could decline if conditions don't improve.

and "the wall street journal" reporting that chinese officials are giving microsoft 20 days now to respond to antitrust questions. regulators there questioning the software giant's bundling of windows and office software and a deal just crossing the wires right now. norwegian cruise lines agreeing to acquire prestige cruise international for more than $3 billion. the tie-up would give norwegian access to luxury cruise ships and more affluent clientele. shares of norwegian are halted at this point. of course we'll bring you more about that deal as we get it and we'll see where that stock goes when it does get released. >> let's get a check on the mark markets. so far it looks like the u.s. equity futures would open higher although we've seen those futures pair their gains by about half. dow futures up by about 15 points, s&p by 2 points and the nasdaq by 6 points. in asia there were strong gains in the nikkei and shanghai markets. the nikkei in japan was up by 1.25%.

shanghai composite was up 1.3% and in europe in the early trade moderate green arrows for most of those markets. the ftse and mib in italy is up by 0.8%. >> okay. markets posting better gains, best gains in four weeks ahead of a full week of data, and on friday -- really we just had a jobs report. is this the jobs report? >> ready to go. >> all right. that's right. yesterday was september 1st. okay, okay. i guess it really is going to happen. finishing off with friday's jobs report. where does "squawk" market master jeremy siegel think that we're headed? the wharton school professor of finance joins us now. and has stayed steadfastly positive on things. and unlike a lot of people, jeremy, you use the word secular all along not sick u lar. sill secular? >> we're still in a bull market joe. joe when we get older time seems

to go faster. that's why those monthly reports seem to be one right after another. >> i know. >> but we're not over with this. we're not over with this bull market. i'm still sticking with my dow jones projections of 18,000 by year end. we are creeping closer to fair market value which i think is approximately 18 times s&p earnings. >> stocks over time it shouldn't be a surprise, they just tend to go up. obviously. because they were, you know, they were at 30 or 40 on the dow. it's now 17,000. so, we understand that. it would be nice to know, though, if something like 2008-2009, would be nice to just go to cash at times like that. are the central bankers of the world paying us forward too much? is there a risk at some point that we've just lived beyond our means, in all ways, and that the debt builds up to the point where we have another collapse?

>> well certainly that's a chance. you know, we got a cbo report on federal debt, a new one just a week ago, the next three, four years actually look very benign, as far as the debt situation's concerned. it's that far out debt, you know, we know about medicare, we know about social security not being solvent far out but that's not seem to be any near-term threats. of course, europe is still stuck. and the reason european markets are up is they expect draghi really to move in to quantitative easing. we're moving off of quantitative easing. and it's been my feeling as i voiced many times that the low interest rates are really mostly fundamental forces in the economy, they're not just because the federal reserve, you know, is pumping in liquidity. so, i don't think we're going to get much higher interest rates. i mean maybe the, you know, the

ten-year will go up to 3, maybe 3.5. but that will only happen if the economy really booms at 3% to 4% and that means better earnings for corporations. >> you just worry about currency debasement and you've seen the ads that we have of all the central banks just printing out money. and if everybody debases their currency, then nobody -- nobody loses relative to everyone else? it just seems like a free lunch. it seems like, if productivity gains aren't there, and we're not -- we're not actually doing things that significant things to raise everybody's standard of living, and yet everyone lives high off the hog, isn't there -- there's never a day of reckoning just from printed money? >> well, when we talk about debasement, we should see inflation. >> but we don't. >> because that is the first sign that we're really debasing the currency. i mean take a look at zimbabwe, and mugabe definitely debased the currency virtually to zero. that is classic debasement.

if we don't see inflation, that means that the public at this time wants to hold that cash. the banks want to hold that cash. now certainly the federal reserve has to figure out, you know, how to reduce that cash, how to absorb that character in the future. i've written several articles about that. but we don't see any debasement of the major world currencies, deflation is still more of a problem than inflation. >> debasement is more of a problem than -- so -- >> deflation. deflation is more of a problem than inflation. which is of course the debasement of the currency. >> right. so that makes me seem like we're still on the side where, you know, where you could ease too little instead of easing too much which is just hard to believe -- >> don't forget -- >> 2015 event. >> don't forget in october, fed is stopping the quantitative easing. >> oh, my god! oh, my god! they're crazy. they're wacky. they're insane.

you're kidding me they're going to stop the qe. >> you're kidding me. >> but we're still at zero. we've been in a five-year recovery and we've been at zero. >> jeremy what the chance when we do go to zero there's a little bit of a blip at minimum a blip in the market? >> when we get out of that zero? >> yeah. >> i mean all depends on what -- you know the fed funds futures markets say it's going to happen next summer. if it happens a little bit earlier, there will be a little ripple in the market. but my goodness we've lived long enough to see treasury rates at 5%, 6%, 7%, 8%, you know. i'm not scared 6 of 3%, i'm not scared of 3.5%. and that's only going to happen if our economy continues to increase, and we got another employment report friday, probably north of 200,000. this looks good for earnings. we're going to get about 120 on the s&p. i like that. >> jeremy you're talking about the united states for the most part. what do you think about japan, what do you fwhi europe?

>> europe, yeah, europe, i've been saying that the euro has to go down. it's too expensive. we've seen it go down from 1.40 to about 1.31. draghi is going to try to talk it down more maybe with a qe of 1.20, 1.15. i think we're going to get the recovery in the euro market particularly the peripheral countries which need a better competitive position. japan, yes, shinzo abe has faltered a little bit. the third arrow is not in place. don't give up on that country yet. stock investors actually take a look, have said we still have some chance of recovering there. but, they've got the most aging economy in the world. they have to grabble with that. that's not real really the same problem that the united states has. our economy is the best of the three major engines in the world, and that's why i still have faith in u.s. stocks. >> hmm.

>> all right. >> i get it. >> i'm not worried. >> i'm not either. >> just relax everybody. >> not worried until we have the next guest on that says -- >> look out! >> could be like 15 minutes, jeremy. but, you know, that -- if it was a once in a lifetime financial break that we had. >> crisis. >> right. >> hopefully -- you know, i hate this expression jeremy for, and have you figured out as because is it one year is now one 58th of my life, is that why they go so fast now? >> yeah. you're -- your perception of time goes log rithismically. to a baby a year is forever. to us it's getting shorter. >> the great downton abbey star maggie smith said it's like at her age it's like she has breakfast every hour and i hate that expression. i hate that expression. because that's what it seems every day i'm waking up.

every day it's oh, my god it's 4:00 a.m. again. >> time to make the doughnuts. >> jeremy, thank you. when the singularity comes upon us and we live forever then it won't matter. >> i've got a big problem. >> with the singularity? >> icloud. my icloud was just hacked. >> seriously? >> look on twitter. you won't be able to unsee it. >> let me look. >> you guys -- >> a leaked photo of andrew. oh, i can't even say the name of that twitter thing. whoa! oh, you know who that is? they put your head on george. that was a seinfeld -- that was from seinfeld. that was george costanza in one of his modeling shots. wow. >> there you have it. >> you have a really hairy back. among other things. and your socks. it's sort of a spitzer pose you got there. >> oh, boy, oh, boy. >> when we come back. we're going to talk about the race for fda approval for a new kind of cholesterol drug. it's a massive market, and there are several companies working on it. we'll be talking to the ceo of

rejen ron next. and later that's right, nude photos of celebrities leaking online over the weekend. we'll tell you what apple is doing about it and how you can keep your data safe. stick around, "squawk box" will be right back.

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welcome back to "squawk box." take a look at the futures right now. see how the market is setting itself up on this tuesday morning after this long holiday weekend. the dow looking like it would open up 20 points higher, the s&p about 2.5 points and the nasdaq up a little over 7 points. shares of novartis getting a boost this morning. that company announcing positive clinical trial results for a new heart failure drug. as a result analysts are raising their sales forecast for the medicine. the company calls the expected launch of the drug next year quote the most exciting ever. says profit margins on that drug will be good. >> can we show that picture? >> i don't know. i don't know. >> because people are now saying it's a fake. because you don't wear socks. remember how many times you don't wear socks? and a naked shot of you, you would not be -- i don't want to tell people where to look on twitter because of the twitter handle. >> i would argue it's a fake. >> you would argue -- >> i would argue it's a fake.

>> maybe we'll make it and show it. news also out on a big race over new cholesterol drugs. biotech reporter meg tirrell got all -- are you going to be age to talk about this now after thinking about andrew? >> i don't know. i'm a little flustered. >> with an exclusive guest, and leonard -- i want to just see what this market cap is on this stock now just because i watched you just -- you -- >> you! >> you! >> where was it? i mean i've known you forever. where was it ten years ago, was it a billion dollars ten years ago? >> no, no. >> 35 billion now. give him a high five. i can't reach him. $35 billion market cap for -- >> sorry. >> that's okay. >> there's a reason for that. it's a potential $10 billion market. a new class of drugs being pursued a multiple pharmaceutical companies, lowering ldl levels of bad cholesterol. leading the pack are amgen and regeneron which part nred with

sanofi. over the weekend regeneron and sanofi released new data on their therapy. joining us now is regeneron chief executive officer len schleifer. >> good to be here. >> let's talk about this race. amgen saying it's filing for approval. you guys shocked everyone a couple weeks ago when you bought this voucher for priority review at the fda. who gets to market first? and how much does that matter in gaining market share? >> well you know, i think that everybody would like to think this is a winner take all race. and i don't think that's exactly the way it is. you know, there's -- if you think of the statin class which was the sort of the stand-by for and will be for treating lowering cholesterol, they were four or five different statins. so there's plenty of room for multiple entries. of course we're pretty competitive and we'd like to get there first. >> does this voucher which gives you a six-month review instead of the standard ten does that get you there first? >> it might. so maybe you can tell us about

how big this class is potentially going to be. this is folks who don't respond to statins. how many people could this benefit? >> well you know, i think that you have to think about vard cardiovascular disease as a whole. by the end of the next decade, it is if not the number one killer it's really a big problem. and while statins have done a great job at lowering the risk of dying from cardiovascular disease we find that many people just can't get to their goal and still have a very high risk. there's probably 20 million people in the european countries in the united states who are who have a high risk or not at goal and probably could stand to have their cholesterol lowered further. >> what is the current state of what we know about good cholesterol, bad cholesterol, and heart disease. i mean do we know for sure that bad cholesterol will lead to a heart attack down the road? >> yeah, this is unquestionable. this all started over 40 years

ago, when mike brown joe goldstein figured out that people who were dying at a very young age had very high cholesterol because of a genetic defect in what's known as their ldl receptor. and what this receptor did, that they discovered, won the nobel prize for that, is that it was age to take bad cholesterol out of the bloodstream and lower that bad cholesterol and then reduce the risk of heart disease. from the first statin, that was introduced actually by my chairman when he was at merck, introduced the first statin they showed in a classic study that you really lowered the risk of dying of cardiovascular disease if you lowered bad cholesterol. >> that's unequivocal. >> it's unequivocal. >> the bad cholesterol forms the plaques of atherosclerosis or whatever causes -- but there's other things involved but if you could just lower bad cholesterol that goes a long way. >> there's no question. and the genetic data and the clinical data, the testing, everything is with the bad cholesterol. there's not a lot of strong data

for the so-called good cholesterol. making a difference. really what you have to do is lower the bad cholesterol. >> how does this drug class act differently? how does it work? >> well the beauty of this it acts rather similarly. and what it does is it up-regulates this ldl receptor, much like statins do but it does it even further and these receptors can suck the bad cholesterol out of the bloodstream much more efficiently. >> so the side effect profile is also better for this? there are some people that don't tolerate some of the statins well. >> that's a hotly debated area. whether or not that's true. but in terms of whether people don't tolerate statins. a lot of people feel they don't. although that hasn't been established. >> this is an efficacy play, this works better than statins. >> if you take patients. we reported data over the weekend that if you take patients at high risk, max mali treat them with a statin you can still lower their cholesterol by up to 60%. >> so it's not instead of statins. it's in combination.

>> i think statins will be the main therapy and then you had on top of that you can lower cholesterol even lower. most people even with statins aren't getting to as low as they should be. >> but these are injected drugs. these aren't pills. that's one thing that's kind of interesting. how much do you think that's going to be a barrier to uptake? >> how often? >> once every couple of weeks is probably the typical dose. i think that what we found over the weekend with some of the data that was reported at the esc conference in barcelona that the compliance rate for these drugs was very good. and you know the compliance rate for statins is pretty poor. there's a high fraction of people even if they've had a heart attack after several years don't stay on their statins. but at least in our trials, people stayed on this. >> no way to make a pill eventually with drug delivery technology? >> with a protein therapeutic as you know you can't get these things absorbed. but it's a shot. it's an auto injector. takes about ten seconds and lasts you a couple of weeks. i don't think that people find

that too objectionable. they studies they stuck with it. >> this is a call for a low carb diet in "the new york times." because they talk about good cholesterol, bad cholesterol and they found the low carb changes your internal whatevers, and apparently you get a lot of good cholesterol -- people who did the low carb thing had a lot of good cholesterol but it didn't change the bad cholesterol so it's the bad cholesterol -- the good cholesterol doesn't matter at all? >> well i don't -- there's not a lot of strong data that what there is really strong data for is the bad cholesterol. ldl cholesterol you really want to get that down. i read that article about the diet and i don't know today they're -- that was proposing that you eat no carbs and lots of fat, and last month it was lots of fat and low carbs. but i mean, a well balanced diet probably makes the most sense. but keeping your cholesterol low and if you need it to take statins, and we hope some day to take our class of drugs if we can get it approved, that may be the way to go. >> you're almost big enough

where you're not going to get bought anymore, are you? you're really expensive. you're really expensive to buy. >> although sanofi owns more than 20%. >> we have a great partnership with sanofi. >> just stay with -- >> we like what we do. i mean this product was invented by -- >> it's a tax inversion. sanofi owns 20 -- >> how much do you still own? >> you can be a french company. >> i own a fair share of the companies. >> like what? >> i don't calculate it on a daily basis. >> last time you looked? >> it was a lot. but we held on for 25 years. >> i know. i know. >> you -- >> is it bigger than a bread basket? is it double digits, above 10? >> no i mean -- >> it's good, it's good. >> a $35 billion company. len, thank you. do you own martha's vineyard or just part of it? >> we were just up there visiting. we weren't in the hamptons at the big party that you were at this weekend. >> oh, right exactly. thank you. >> great to be here. >> coming up, the plan to kill

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welcome back to "squawk box." take a look at some stocks on the move as wall street returns from a three-day holiday weekend. the big one tesla upgraded by nicolas to buy. that buy rating with a $400 price target. company saying that that company it will now be well positioned for growth in the luxury electronic -- electric vehicle market. as it is -- as it is ahead of schedule for ramping up its production. also compuware to be sold to a private equity firm. "the wall street journal" says a deal for the software developer would be announced as soon as today. and t-mobile u.s. may receive an

improved takeover bid from france's iliad. the company says it has set limits on how much money it would want to raise to fund such a transaction. and shares of furniture retailer kahns getting hammered this morning. that company cut its outlook for the year with company citing particular problems in its credit operations. >> paychex is out right now with its latest small business jobs report. the index showing some mixed results for employment growth last month. joining us right now with the details is the president and ceo of paychex, and martin, what happened? i know there were some concerning outcomes, and even downturn in some areas. what was the problem? >> we had a little softness in the last three out of four months, becky. but overall we're very strong still over last year. it's been a solid one on one which shows the growth rate for unemployment is still stronger than last year and good solid 1% growth rate over the base year. >> i mean that's good news in

general that we're better than we had been. why the third decline in four months? is there something that's happened this year? >> well, i think, you know, you're seeing a little bit of a mixed reaction in housing. so you're seeing new housing starts are down a little bit. where existing home sales are up. i think that always drives a lot of small business growth in jobs because we have a lot of jobs at paychex around that. and that could be part of it, is what you're seeing and it could be just kind of a summer effect. the good news is that overall when you look at the last eight months of the year it's been a solid pretty much 101, which is one percent stronger growth rate. >> what regions are seeing the strongest growth and the weakest? >> the mountain region is still the strongest. so we're -- you're consistently seeing that. i think that's helped by arizona and some of the growth in arizona and phoenix area. you're also seeing that nevada mountain region. the central weeken west north is also very strong and that's a lot of energy jobs in like north dakota. producing more oil than texas or second to texas only, i think.

so you're seeing growth there at the most. >> we've talked to some economists today. some who are looking for even stronger than expected numbers this friday. when we get the government jobs report. so that surprise you to see a very strong number given some of the weakness that you've seen in these reports? >> i think we'd see something consistent. so it would be my guess. so might be around 200, or 220. i don't think it would be a real strong number based on at least what we're seeing. but this is measuring small business growth. is what our measure is. and employers under 50. which do make up 95% of the businesses in the u.s. >> is there a way to break down by industry which of the small businesses are doing the best? >> we had looked at it personal care right now, and that's a good sign i think people are spending discretionary income on personal care products, that's starting to pick up the most as far as the jobs standpoint. >> okay. marty, thanks a lot for joining us this morning. >> thank you. >> story everyone's buzzing about this morning, nude photos popping up on social media after the apparent hacking of icloud accounts. jon fortt joins us on set.

andrew keeps telling me don't worry, it's not the whole cloud. >> not all of icloud. >> just they went after individual people. and that does -- that does nothing to allay my fears of how serious this is. >> because he's got so many nudes in his collection. >> no, no. >> but if you could just pick someone out and go in and hack whatever they have on the cloud, and get access to it. that's a problem. >> it is a problem. it's kind of scary stuff. now the first thing to know about this is there's this thriving underworld economy in trading people's naked photos. and it's not just celebrities. also individuals. when it's just ordinary individuals it tends to be called revenge porn. and people will go out and find photos of people, either through their e-mail accounts, or through something like icloud, and then trade them, sometimes try to blackmail them or harass them or threaten them for sport. and this has now spilled over to -- >> kind of like baseball cards. >> that many people have naked pictures of themselves -- >> is it easier to get into a bank account? >> it's not necessarily easy to

do. the question of -- >> the question of that many people have maked photos? yes. it's apparently become a thing since -- >> i can't -- >> well is it less of a crime to -- why not go right after where the money is to the bank account? why mess around with black mail and -- that's crazy. >> i think the thing is you need two things in order to access someone's accounts, whether they be on g mail on icloud and from what i can tell these photos that were released and gathered probably came from multiple sources. you need an e-mail address and you need a password. and too often emmail addresses get out there because they're on a list and then you can figure out a password because a lot of people either don't have secure passwords or they reuse passwords. and we've seen a number of these hacks recently where big trolls of user names and passwords have been released. if you know a celebrity's user name and you have a big trove of data you might be able to find something from that. it's not at all clear that icloud itself has been

compromised in any way. apple doesn't have -- they've got a short official statement out on that. they are investigating whether there's been some breach -- >> some speculation that people were using the find my phone technology to somehow get in there. >> no. what i'm hearing is that no. the reports that there was some sort of find my iphone hole that was just patched up a few day s ago not true. >> this is literally people getting the address and guessing or doing something like that to figure out the password. >> there are multiple ways you can do it. you can guess. maybe if you have a database of possible passwords you can run those. there are password cracking software that will try multiple different combinations and if your password is short -- >> i told everyone if you have double authentication with your phone you're in good shape. am i wrong? >> you're in better shape. a lot of times, if you're not a celebrity, then chances are you're less likely to be a target. and if your password is a bit tougher to crack, then people aren't necessarily going to spend as much time trying to

crack andrew ross sorkin when they can crack jennifer lawrence instead. >> well, you never know. >> her photo is probably going to fetch a little bit more than yours. >> i found that i have a fan on twitter apparently. so -- >> i think you got a couple fans on twitter. more than i do. >> this one has a -- >> they know that my password is joe kernen 1 and therefore -- >> you have boxers, and -- >> here's another issue, though. it's kind of a canary in the coal mine. we know that 100 plus celebrities photos were posted. some of them claim they're not actual authentic photos. keep in mind, i would think probably two to three times more celebrities were actually hacked, just those people didn't have naked photos. so we don't know about them. if you're a celebrity change your password and maybe the e-mail address on your account. >> don't take naked pictures of yourself. >> that, too. but it's not just about the photos. people store all kinds information -- >> people are taking more naked photos, right? that's a thing? >> yeah. i mean, we hear -- people do it all the time. it's not just the kids doing it.

celebrities doing it, too. apparently it's like -- >> the weird thing is, when you had to develop the film and send it out to somebody, people didn't take pictures -- >> or people got their homes broken into -- people got their homes broken into and photos or videos that they had taken with their significant other would get exposed. now you don't have to break into the home. there are passwords you can crack. >> everybody sort of looks the same naked. i don't really understand the big attraction. you know what i mean? to the whole naked -- we've all seen it -- >> i don't know. go to a nude beach. i -- put the clothes back on. half those people. >> i saw that picture of you at the beach already. you know. it stuck in my mind. >> you can't unsee that either. jon, thank you. >> how do you know about this huge -- you know, this underworld with all the naked -- you read about it? >> he had to do some reporting this weekend. >> i've been reading about this for revenge porn. it's scary stuff. revenge porn, there are laws that have cropped up in california and elsewhere trying

to go after the people who do this to people. >> joe you block all those people on twitter. >> i block -- >> watch out for the revenge blockers. >> coming up the six-point plan that amazon's competition is planning to use to take on the retail giant. kevin ruse of new york magazine is going to reveal amazon's weak points. plus why action movies could be making you fat. we've got that story in just a moment. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm.

welcome back to "squawk box" everyone. in headlines out of europe this morning a frankfurt court banning uber taxi services across germany. the court argues that uber's drivers don't have the necessary commercial licenses to pick up passengers. >> okay. amazon continuing to be the king of e-commerce with an empire worth $75 billion. but can the king be dethroned? several start-ups making their way into the e-commerce space think they can. what would it take to topple the online -- you know what? because of you whenever i see the word behemoth i think of bemoth. >> not because of me zbp >> joining us is new york magazine's business writer the author of the recent article six ways competitors are trying to kill amazon. you are up early this morning on the west coast, kevin. help us here. can anybody really kill am zoon? >> well that's what i wanted to find out. i sort of we take it as a, you know, as a sort of precondition that amazon is too big to fail right now. and they certainly are huge and

growing every day. but i called around, and talked to analysts, and people who watch this space and just sort of basically asked them, what could companies do to kill amazon if they wanted to? what are the sort of weak points in the armor? and they told me basically, six things. three of which i thought were the most important are mobile discovery and same-day delivery. >> okay, so let's talk about that. same-day delivery, google has teamed up with barnes & noble. do we think that barnes & noble is all of a sudden going to sell books more than amazon? >> i don't think so. and i don't think many people would tell you that they are. but what's interesting is that amazon's always been sort of a logistics company. they're very good at getting things to you quickly. but people are impatient. they want things the same day. not one or two days later. >> right. but don't -- when i think about that the cost of trying to get something there that day, "a," the cost goes up remarkably. and, two, i would think that if

anybody has the infrastructure already built to get it to you the quickest it's them. so whoever is going to come in to try to replicate what they're doing is going to have to pay a fortune to do it. no? >> right. none of these things are going to be easy. i mean competing with amazon as borders or borns and noble or circuit city will tell you is not an easy things to do. google, for example, has the cash to really invest in same-day delivery infrastructure. we've already seen them partner with brands like target. and barnes & noble and people are willing to pay a surcharge to get things there more quickly. that's what we're seeing. i actually think the biggest problem for amazon, thoughs, is going to be in the mobile e-commerce landscape. i mean, we've seen google and apple, which are platform companies, which build the operating systems that run on our phones and tablets, they have in some ways power over amazon when it comes to mobile shopping. which is why amazon wanted to make a phone of its own. i don't know about you guys, i

haven't seen even of these amazon phones out in the wild. i don't think anyone's buying them. and i think that's going to be a real weak point for amazon going forward. >> kevin, i am so glad you're here today because you just wrote something else that i absolutely loved. you went to burning man with grover norquist? >> i did. this is not my burning man costume. but i did spend some time out there in the nevada desert last week, and i hung out with, among other people, grover norquist. >> it seems like an odd bedfell bedfellows. the way you describe it he has a lot in khorn with the libertarian views. >> it is fascinating. it is 70,000 people in the desert and basically very loosely controlled environment. and free market libertarians like grover norquist love it because it shows that you know, you don't need a whole lot of infrastructure to make a civilization work. obviously there's some, you know, there is some infrastructure there. more than he would say. but, he had a great time -- >> yeah, kevin, was he sleeping

in a tent and sort of hardly wearing clothes and rolling on ecstasy? >> was he or was i? >> either. >> i am pretty sure the answer to both those questions is no. i don't -- on my case i'm sure it is. but i was sleeping in a tent. he probably had a little bit better digs than i did. >> did you actually have to describe to him what a free tank wash was? >> i did. and i don't think we can go into it -- >> a what? >> you have to read the article. that's what drew me in. >> i'm not taking that. >> what is it? >> you'll have to read the article. >> it's a family friendly show. give us a hint. >> i did end up describing some -- i ended up having to explain to him various elements of the -- the anatomy, and i also, we had a very bizarre experience. i mean burning man is -- >> what's it called? >> never mind. >> you don't need to say it again. >> okay. >> -- ecstasy for a bunch of libertarians.

is that a joke? >> no, that's what -- >> ecstasy at burning man? that's like a rage. >> kevin will tell you. >> people are taking ecstasy? >> people have been rumored to be taking some drugs there. >> grover said if you think it's just a bunch of naked people running around you completely missed the point. >> he said that's about you and your perversion and not about burning man. >> right. >> although we did see as we were talking a naked woman rode by on a bicycle. so it is -- i mean it is kind of a strange place. >> she could use -- maybe we could use that service after being on that dirty bike. >> kevin. thank you. there is no money, by the way, burning man which means there are no taxes so norquist probably likes it. >> it says free -- >> look it up yourself. >> no, i saw. i know exactly what that is. that's -- >> never heard of it. >> there's some value to that. like a bid day, andrew. get ready for the short trading week with jim cramer. the coffee war is heating up in california why duncan is making the move new after conceding the state to starbucks for more than a decade.

tomorrow a guest host who's never shy about speaking his mind. no-holds-barred with sam zell. plus the ceo who runs i-hop and applebee's on the recent struggles of the fast casual sector. "squawk box" starts tomorrow at 6:00 a.m. eastern. for you, success is a starting gate, not a finish line. for you, the ats isn't just a trophy. it's a sleek, chiseled instrument of your ambition. and for you, the winner's circle is just another pit stop, because you'll always be... ...coding it... ...torching it... ...chopping it... making it. the new 2015 cadillac ats. but what 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.

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welcome back to "squawk box," new details on life after congress. here's how much he's going to be paid, fcc filing says the base salary will be about $400,000. he's receiving 1.4 million in a signing bonus b, and 1.6 million in comps. too low? >> other stuff. >> some restricted stock could go up. >> exactly. >> down not new york stock exchange, jim cramer joining us now, i don't know -- now, cramer, i think, might have -- i never really thought we were at risk with the cloud, jim, huh? got any -- just wearing the beard, that's it?

>> i don't use icloud to store things. >> he didn't say no, did he? >> the other thing that, you know, for me and andrew, you have to be a celebrity to have someone interested in you, and i think you qualify there as well. >> what kind of passwords, i mean, i have to admit, mine is complex. >> mine is too. >> it is complex because it's hacked so many times. you have to do a huge number permutations to get mine, not that you are interested in doing it. >> dollar general, following? andrew had news on that. >> to tell you the truth, i thought the interview was big because the drugs -- these are multibillion dollar drugs that get announced, people forget them, and then the numbers, and the fact is, there's a head start. this is a $400 stock right now. you're right. when you ask, where was it? come up with the mac cue lar degeneration drug an a drug

taken with the others, that lowers heart risk, and stroke risk, it's going to be huge. that's all people are going to be focused on over the next week in the drug world. >> i was a little bit -- i'm frustrated that the best -- this great industry can do is add on and stuff, but there's a need, obviously, as far as heart disease. i hope for the rational drug design for the cancers in a way of actually, you know, making them chronic diseases and making headway there. you know, we had -- i want something new. i want the promise of the future. >> i get that. >> we're not far off. alzheimer alzheimer's. >> there's not a breakthrough here. >> diabetes, all the cancers. >> right. the breakthroughs are for areas they already made breakthroughs. we need new breakthroughs where there's no breakthroughs. >> thank you, jim, see you in a few. when we come back, taking on

starbucks in california. jane wells joins us next. plus, a warning to action movie buffs, the favorite movies might be making you fat. that story's next.

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listen up, action movie lovers. the video we're showing you right now could be making you fat. strange story. according to a new report from cornell university's food and brand lab, people ate twice as much food watching a fast cutting action film than a slow paced talk show. citing audio seemed to be a factor. those who watch action movies with the sound on ate 98 % more food than those who watched the talk show. does that mean -- >> i guess i get it. gets the blood going, gets you moving. >> and you want to eat more? i don't know. the coffee wars eat up in california. jane wells joins us now with more on the story. jane? >> reporter: i'm in santa mop ka, yet to find innative california here. >> florida. >> new york. >> baltimore. >> all right.

baltimore. america runs on dunkin, california runs on starbucks. maybe not. this morning is the first stand alone dunkin donuts prepared to open in santa monica. >> doors open about an hour ago, and they left the golden state in 2002 under different management and poor sales, returned with plans to open a thousand stars, franchise only model now to take on starbucks, coffee bean, mcdonalds, east coast transplants gets everyone excited like johnny hoops first in line waiting since sunday. >> what do you like about it? >> the coffee. i don't know. >> you just said coffee. >> i know. i still have that. >> everything is different this time. opening before, we were ahead of ourself, and this time, we have the infrastructure. we have the people.

we have the right franchisees. we have a solid distribution system. >> how competitive was it to get the franchises? >> i thought i was applying to stanford or harvard. it was really difficult to get this. >> reporter: now, dunkin shares performed like mumplgkins this year. these are the first of the stapp alone traditional stores, betting on big, big, big sales out west, debuts a new darker roast here in california, which is sort of more like starbucks, but traditional. and the franchisee has several back east, planning to open ten in california, since, by the way, cost $60,000 for the fee, half million to get the store up. he hopes to do that -- double that in sales in one store. back to you. >> thank you for that. >> nigel, you know him? >> sure. >> he had an idea, thinking of opening stores in california.

i'm, like -- that's really profound, really? dunkin? move to california, the growth spot? >> go west, man. ? no wonder you're a ceo. that's a good idea. open some stores. they got out and now going back. >> great to see everybody. join us tomorrow. right now it's time for "squawk on the street." good tuesday morning, welcome to "squawk on the street," and i hope you had a great long weekend, guys back together, it's nice. i'm carl quintanilla, david faber, and jim cramer. as we set up for the fall season, ism this week, ecb meeting, nato summit, and jobs number on friday. the road map beginning with the markets and s&p, 3,000, a bullish call to kick off the first trading day of the month. >> family dollar,