cnbc. i'm becky quick along with andrew ross sorkin and joe kernan. hurricane odile is pounding baja, mexico. that storm could threaten the southwestern part of the u.s. by the end of the week. now to andrew for breaking monday morning deal news. >> thank you, becky. we have a bit of breaking news this morning because sources are now telling us a $30 billion company is privately buying trizetto for $2.7 billion in ca cash. cognizant has served nearly 245 health care providers.

we had the cognizant ceo on, he's one of the youngest ceos, 38 or 39 years old. this is one of the deals that i didn't realize cog anizant is a big as they are. they were there before but this changes the game because the systems that this company is buying puts together, we may use it, actually, it's back technology between the payer and provider. so that's what the deal is. a nice little merger monday. joe is looking at me like this is -- >> okay. good job. >> not interesting. >> this is what you want. you tell him you want breaking news. >> you want news at 6:01 in the morning. you want news. >> okay. i don't recall trizetto being acquired. i have never heard of them

before. i'm sure you hadn't yet until you got this. i don't even know if i know apex well. >> you know apex. in the u.k., that's where we were based originally. this company is based in colorado. >> and what in health care would or did they actually -- >> they actually do the technology service behind sort of the computers where you have the provider and then you have the -- us, we pay, and you put them together. >> but we don't recognize that. >> or you don't think that you see it. >> my only -- all i can do to add some value here is that we have some illness in our family. >> you are definitely stuffed up. >> no, i don't have anything yet, i hope, but we we want and actually combined both kids. but a nurse practitioner handled

the whole thing. >> i have been to a nurse practitioner several times in our practice. >> she mentioned that she was very excited, and there was a nurse practitioner that was also being trained. and they were both excited to be there, unlike some of the -- doctors that have seen the 50th case that week of the same virus. >> they like that. >> this person was into it. she was explaining stuff. >> they can give you shots and all kinds of stuff. >> giving us lectures on the immune system. how fever is good. it was interesting. >> so she took her time with you guys? >> she was into it. because doctors are kind of like, oh, another cold. you know, i need something interesting. where is my ebola? >> i want to help you a second, 30,000 employees. >> so no one can make money on the stock. >> it's a privately held company

that -- >> good job with bringing the breaking news. >> investors are looking for any clear hints on when the fomc will begin to raise rates. stocks are coming off the first big loss this month. they are below the intraday highs. volatility is creeping back below 10%. a little bit of volatility back at 13%. creeping is the word. we didn't really get the kind of upside momentum -- >> this is the first down we have seen in five weeks. >> the dollar has had its biggest run in years. >> because of what the european central bank --

>> that explains oil, gold, and other things. and eventually it might become sort of a headwind for everything. it does make noise. it's more attractive to foreigners. the dollar -- that's another reason the yields are going up. 1.29 now on the euro. and gold, if you didn't -- i just remember that year when they asked us -- is it going to 2,000? it had develop from 300 to 1900. and then empathies it's going to 3800, but it didn't. it's back. >> well, it is 2,000 for 2 ounces. i think i'm going to buy this.

>> really? >> we keep getting solar flares. >> this was just northern lights. >> it was not aimed directly at us, i guess. >> that's good. >> rutgers -- did you watch the jets? >> yes, i saw them fall apart in tend. >> it was such a great touchdown in tend. gino is good. >> but i also want to give props to rutgers leading 10-0 at halftime against penn state. a big game for us. they did look really good and played really hard. >> i'm glad you're able to find some silver lining. >> the bengals played well. >> i'm not ready to give them the super bowl ring. i'm not sure what happened to san francisco. beautiful stadium. and i saw on the big network -- >> you didn't notice that when

he made appearances with us? >> i'm not impressed with people until they appear on the network. they look better and sound better. like if you did that cognizant story on like a network, then i would be really -- yeah. that would be really interesting. are you going to do it again at 7:00 and 8:00. >> hopefully it gets announced. >> try to get something a little bit more -- >> andrew, i appreciate -- >> oh, it was just announced. >> it was just announced. >> we were six minutes early. >> 26 billion, that's big. the young ceo. yeah. let me tell you about the other corporate news happening. alibaba is set to go public this week. the chinese ecommerce giant is planning to increase the size of its offering because early investor demand has been strong. that ipo is expected to price after the close on thursday and begin trading on the nyse

friday. and a fight is brewing in the beer world. heineken confirms it have approached by snb miller about a takeover. they intend to keep the company. there's talk of a move on snb miller but it's not happening so far. >> this has to be a friendly deal. >> anything over 2% and it's not happening. >> right. if they say sorry -- they are above 50%. >> what else can they buy?

>> i don't know my beer friends to know what else is out there? >> there's been a lot of consolidation. more than snb miller owns. that's budweiser now, right? >> yes. yes. >> budweiser is still inbev. but coors is available. >> are you still at the bank of montreal. >> i've been there a while and am not going anywhere. >> what's the news? >> it's still there. >> okay. that's news. we'll get to brian in a moment, but meantime, we'll tell you about young brands looking to expand beyond pizza, tacos and fried chicken. the fast food giant is opening the first bond shop dallas with casual restaurant. customers point to the thing

they want. >> it is responding to my lep y -- they are partnering with the third largest telecom operator expanding to germany, austria, switzerland, belgium and l lexumborg. they don't have multiple tier pricing. >> in france, you mean? or everywhere. >> everywhere, i don't know about that, actually. there's a battle in the war between amazon and hachette.

the writers are appealing to the board of directors today. the group called authors united posting a letter on its website saying in part, efforts to impede or block the sale have a long and ugly history do. you personally want to be associated with this? authors have until wednesday to sign the letter before it's sent to amazon's board of directors. would you sign that? >> you did see that someone, maybe you can actually get behind the u.k. going on iowa thinking about a run. we know she's there. this guy -- bernie sanders is headed to iowa. he thinks there's a ground swell in the country. things like he's thinking

about -- >> i know bernie. i'm thinking maybe. you would think i have a better chance. >> honestly, i do. >> i think bernie has been tweeting my claims recently. >> so this is someone you can get behind. >> bernie -- are there any other bernies i can throw in here. >> bernie cavro. >> he became a red sox, didn't he? >> i think so. >> now i remember "weekend at bernie's." >> that guy has a better chance to re-tweet your columns. >> i just saw this a few weeks ago. you must be so proud that the left wing socialist in the

country re-tweets your columns to say this guy is a little bit more liberal than i am. >> it takes all times. let's get more for investors looking ahead to the two-day trade. paul donovan, the global economist at ubs. great to see you. thank you for coming in. we talked in the makeup room beforehand and one thing you noted is that investors you talk to at point are concerned about missing the upside than waiting for a downside. >> we are. we had an interesting market where the markets did not follow the quote/unquote social market. and now for all intensive purposes, we have not had a conversation over the last three to four months where investors

are looking for more than a 10% correction. they talk about it but whether or not they are positioned accordingly, we don't think so. judging by our conversations with clients around the world, most people are fully invested. they are more worried about missing more upside that downside and that typically is a bit of a frothy level. >> just because everyone is convinced the ball is not going to come, that's when it generally does. >> basically. we talk about that a lot, but whether or not people are positioned accordingly. but the surveys are telling people we are still kind of bullish. and sit down to answer their questions and do the research for them, it is -- desperate not

to lose money. if i look at the private base, private capitalization is always a big deal. but institutional investors are becoming more like they are looking for the next big thing. they are propping up on the radar screen to look into the future for the next big thing. so we are constantly getting little surprises popping up and all of a sudden the markets are moving 3%. down a half point, that seems to be something we are getting quite a little bit with. >> what does that tell you, that people are nervous and there's not going to be a way to get around, what dhauz mean? >> we have moved into a lower nominal return environment. after 30 years or more of high mom mall returns. not necessarily real returns but

five years ago if you guaranteed a 5% return, that was easy to achieve with a minimal risk portfolio. try to look at your average return on a portfolio to be around 4%. if you lose 10% of your portfolio, it is years to make that back. that didn't used to be the case. that's really a problem, i think. >> well this long-term problem, can you get away with that? >> the rates are going to be different going forward, we believe. however, the story with respect to real rates rise and the economy continuing to improve. over the last five to six years, the investors are key on the

dollar. as the economy improves and the stock market improves as well, we think the effect for 2015/2016 is what we call recorrelation. recorrelation of stocks, earnings, the economy, interest rates and the dollar together. all possibly coordinated. something investors don't understand and we're really kind of playing all-time hockey going back to the '80s and '90s where that was the effect then and that's the true fundamental effect on stocks for the next few years. but 2015 will be the transition year as we start to see rates slowly go up and the economy slowly improving. investors have to address according accordingly. >> you are just back from europe and the tone there is different than you have seen the last five years. >> we were talking about france in a prior comment. we were just in paris a couple weeks ago and since the portfolio managers that at least one if not two declines actually

said it is to europe's benefit into the world's benefit to have a strong america. and we are not seeing a strong america right now, which was shocking to me, especially coming from paris. now, it came during a week when their own president was having problems with respect to press in the like and the people are not happy with their day, but it is relative. >> one person actually said we'll take the tone back. that's different than the last several years. >> when you look at what's happening geopolitically. what does that mean for u.s. stocks? >> the one thing note getting enough attention, what's happened in europe is it is

quite part being in nato. and the only person they speak to in is a single trade deal. if this is passed, it will make the world trade organization relevant and give the u.s. support of the global trade agenda for 50 years. it's a very anti-china piece of legislation. it's powerful and is long complicated. nobody can be bothered through the 5,000 pages of rep lick case. and what is happening now is i should have prepped the two sides together more and it's fostering that. this will be a really, really big deal. >> paul, ryan, thank you both for coming in today.

coming up -- that's why they made a movie or ten movies, cutting a tree. >> i guess it bounced back. >> oh, that's in the next half hour. good, good. oh. anyway, i can still play tennis, which is good. because i dated chrissy a while. coming up, big news for alibaba. the china ecommerce show is coming up. and you missed the bears to come back to beat the 49ers. nobody predicted that. you woke up to a much different ending with the bears scoring three touchdowns in the fourth quarter. the weekend in the nfl and the sports world, coming up on "squawk box."

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welcome back to "squawk box." alibaba is on its way to become the biggest offering in history. susan li is here to discuss this

morning. good morning. >> good morning. this is a water away from their main market in china. and 500-plus investors clambering into the ritz-carlton hotel for the main event, five minutes of closing remarks. and he was speaking to an investor community, also a broken community that feels sour this ipo didn't land here in the hong kong market because they felt that they deserved it. they know the market better and they listed their b2b sites. because of restrictions it didn't land in hong kong, so jack had to turn on the charm saying they still love hong kong and will continue to invest in the city, but he also addressed his ipo going to new york instead as a redefinition of the company. take a listen. >> not a company from china. we are an internet company that happen to be in china.

>> and part of his address, jack moss said, take a look at what we are doing in russia and brazil. we are the number one ecommerce company in the markets even though we don't have a physical presence. that's only the beginning. we met one-on-one with investors in the city and i've been told he's been meeting with several wealth funds and will be meeting with several wealth funds heading to singapore tonight. from what i understand, they are already on their flights. >> susan, before you go, what is the expectation in terms of percentage of allocation of stock for those in china, for example, compared to u.s. investors compared to even european or russian investors. >> yeah, that's a very good question. and i was talking to investors at the road show because as i mentioned, they have a sour taste in their mouths because if it was a hong kong ipo, they would have gotten the bulk of the allocation. but now it is a new york run

operation, they are not expecting a lot of the shares to come here to the asia pacific. in fact, i know that a lot of the investors have put in monstrous orders of a billion plus and will be happy to get 1% of the orders they put in with the underwriting banks. >> susan li, thank you so much. when we return this morning, a definite maybe. hillary clinton spending the weekend in iowa making speeches to rally democrats. but stopping short of throwing her head in the ring. we have that discussion next. and as we head to a break right now, a look at last week's winners and losers in the stock market. ♪

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♪ welcome back. good morning. it's "squawk box" on cnbc. i'm joe kernan along with becky quick and andrew ross sorkin. if you're asking a cup of coffee this morning, chances are you're not alone. a new survey finds that journalists drink more coffee than any other group of profession. i'm doing it right now. the majority of those polled, 70% admit their working act would be affected without a daily dose of caffeine. and i do this on the way in and

then i don't bother with it after that. >> i wait until 7:00. >> i can't imagine drinking it in the afternoon. i see people at night drinking. >> maybe it's decaf. >> i don't believe it's decaf. >> i don't understand drinking it at night. how do they go to sleep? if i have it after 3:00, i'm done. >> bill ackman is headed to europe. he's announcing plans for an amsterdam fund ipo. he hopes to raise $5 billion from a non-u.s. institution of investors. and u.s. investors are turning bank employees into informants. the wall street journal says officials are gathering evidence against the bankers colleagues in the probe of possible manipulation of currency markets. the paper says the doj and fbi are preparing to seek criminal charges against individual traders as early as next month. that means they are seeing rats in there, in those banks. >> nobody likes a rat. >> nobody likes a rat.

jack lew has a warning for china. the journal reports the secretary runs the recent run of anti-trust investigations could have serious implications for u.s./china relations. also, last week was the first week in six weeks that the s&p and the dow ended lower for the week. those markets actually closing at the lowest levels they have seen in a month. the futures are slightly lower with the dow opening lower by 11 points. in early trading, for the most part, modest declines. in spain, the ibex is down .25%. the dax is down by just over 1%. the nikkei ended up by .25%. oil prices we have been watching

so closely as wti continues to slide. and brent is down this morning as well. wti down 75 cents to 91.52. questions on what opec will do if we fall below $90 a barrel. and look at the ten-year, we are yielding above or just at 2.6%. the first time we have seen the yield on the ten-year in quite a while. the dollar continues to be strong against the euro. you'll look this morning at trading the euro at. and gold prices are sitting at $1200. let's talk politics. hillary clinton and bill clinton taking a trip to iowa. the former first lady making a speech to rally democrats in a gubernatorial race for tom harkin. is this the first step in running for 2016? john harwood is here, the

answer, sir. >> i'll answer your question as soon as i have a bit more coffee. >> can't work without it, john. >> exactly. yeah, look, every sign indicates that she is running. like a lot of politicians, they prepare for races and they get very forward leading about it. there's an off-ramp there if they decide for personal reasons or political reasons they are not going to run. but i think everyone should assume she's running. she had a good time yesterday in iowa teasing everybody and raising her eyebrows and making little jokes and drawing big applause. but it's a different story when it gets to winning votes on the ground because she had a similar reception two years before the 2008 caucuses and ending up coming in third.

>> do you think she'll get pushed aside by bernie sanders? >> no, i think he'll put both hands on her back and try to push, but i don't think she's moving for him. i don't think she'll move for martin o'malley, the governor of maryland. i think she's in the strongest position two years out from a presidential election of any candidate i can remember in an open she chemical weapons. >> the other party looks relatively weak in come comparison. >> you did not mention joe biden. is he not in the race? >> there's no choice for joe to run against hillary clinton if she's running. his decision is contingent on whether she's going or not. joe biden has done this twice and it didn't work out both times. he's had a very good run as vice president.

it's not implausible that he would run, but i don't think he would try to run into the teeth of the hillary hurricane. >> hillary had it last time except for one unique difference, and that was barack obama. and that was a very yunique situation. bernie is no friend of mine, but he's not barack barack. i mean, that -- look what -- he took the nomination and won the presidency twice. i mean, he's an incredible -- barack obama phenomenon, i'm not sure there may be a little bit of tier's remorse. but that was a unique thing to derail her in the first time. to i think you're right on both

accounts. there just doesn't seem to be the kind of talent potentially in the field with the capacity to knock her off. some people look at elizabeth warren and say that's the dream candidate for the left. but i just don't buy it. >> elizabeth warren left, john, is 15% of the country. >> right, exactly. >> let me flip it around to talk about the right this morning. the front page of "the washington post" has a big piece on rand paul. i don't know if you saw it. >> a tea party guy there. >> the drudge report says senator rand wanted to scrap the medicare system but now is not sure. what are these -- i don't know if they are flip-flops or distinctions that will change his potential as a candidate.

rand paul is a different character from his dad in that he's trying to focus more in the way of opening you up to a wider set of constituents, but it also diminishes that side of hot burning intensity of people who say this is a guide who really believes, who really gets it. so this is a very self-cautious decision by rand paul. rand paul is someone who never was expected to become president. he built the following with the grassroots army, but iran has bigger fish to fry. he's trying to take what shiz father started and make it more broadly appealing. that's going to create a flip-flop situation like this because the conditions at rand paul developed a live following with and he doesn't play.

nobody is talking about eliminating associate security. rand paul is the leading libertarian in the country as his father was before him, and the libertarian platform in 2012 was to phase out social security. that's the problem. if you take the philosophy and you push it really hard, you're going to limit yourself. rand paul is trying to get out of that and navigate the charges and flip-flop. >> where do you think the business community is on rand paul? >> i don't think they are going to like him. >> he's way out there with crony capitalism. >> i think rand paul -- the business community is going to want a more conventional figure. somebody they would suggest -- like a chamber of commerce. >> exactly. >> jeb bush or chris chris ty.

probably jeff. my son got to sing "the national anthem" down on the field. >> this weekend? >> yeah, saturday. it was 10-3. the nationals looked like -- the baseball is as big as a basketball and won yesterday. if and what happened to your nfl football team? >> i think everybody is feeling pretty good about this and this could be the year -- >> we were on the first base side just past first base, you could hear the --

>> this is a guy, rg, who has had phenomenal injury problems. if there's a blessing for our team, it's that we can find out how good kurt cousins really is. he was pretty good yesterday against a bad team. and the question is, he's likely to be able to play quarterback the entire season. >> we'll talk about -- briggs is here, but there are two kinds of people. all they want to talk about is nfl scandal and the people who want to talk about the jets or one of the players calling time-out. >> it was the offensive coach. no, it was the offensive coach trying to get rex ryan's attention. but the guy called it on the offensive coach calling it. >> joe, before we go, the bengals, how did they do? >> the bengals, i have bought it

into it too many times. but i'm waiting. i'm waiting before i say there's a super bowl in the works. >> is this john's last appearance on "squawk"? he's now a big movie star. you didn't see this? >> "alpha house." he has a cameo. he's too big for us now. >> i saw a tweet and somebody said, are those your clothes? you look so washington. >> exactly. i showed up and they didn't know if i was and actor or someone doing a cameo. and the wardrobe person said, very good, you look washington. are those yours? >> yeah. i could see you in "animal house." not really "alpha house." but in a good fraternity that department like the alpha house. >> you look like the guy paddling kevin bacon. thank you, sir, may i have

another. >> you look like the guy -- no, no, no. >> tim nedermeyer. >> no. >> we have to go. >> don't forget about us, john, okay? don't forget about us little people. >> we knew you would win, john. near upsets, upsets and more controversy. now it's roger goodell's fault that some guy took a stick to his kid. a big week, too, in the nfl on and off the field. and legendary golfer greg norman landing in the hospital after a gruesome accident with a change saw on his left hand. that and more coming up on "squawk."

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a very close call for greg norman. the legendary golfer nearly lost his left hand in a chain saw accident. he posted this photo from his hospital bed. norman was cutting back trees in his south florida home. doctors said the saw missed his artery by a fraction of an inch. it was not fully -- it was sort of a low -- and the branch was so heavy it pulled his left hand into the path of the chain saw. just a week ago, the golfer had posted a picture of himself standing next to a tree and holding a chain saw. his caption, time to trim the sea grapes today. never ask someone to do something that you love yourself. i love the work. that may not be his montra from here on out. he can certainly get someone who knows how to work a chain saw to trim back the leaves next time. >> that's so dangerous.

>> it is. i like myself to juggle three chain saws. have you seen me do that? and i catch the handle and they flip. there are guys that do that. and i was like, let me take a shot at that. >> in the circus they do. >> that looks like fun. the nfl's reputation walked into a chain saw today. david briggs has no interest in football other than roger goodell now dealing with a domestic violence issue and an arrest for child abuse and the results of a leaked study that says a quarter of the players will end up with brain problems. here to walk us through it all, david briggs of nbc sports. >> the offensive coordinator for the jets but only the head coach can call the timeout. they just see someone out of the corner -- in this case, there was someone screaming and

calling a time-out in their peripheral vision. the refs had no choice to call the timeout. >> they didn't have a time-out so they couldn't challenge the decision because they had no more time-outs to call it with. >> you couldn't challenge it anyway. it was clear on the videotape that he was begging and screaming and pleading for a time-out. that would have been one of the tremendous stories of the weekend if the jets came back to tie or to beat the green bay packers in green bay. >> it's just so -- you've seen one, sometimes they try to freeze a kicker and the guy calls a time-out. then the guy kicks it and it misses. and then they miss and something like that happens. that was -- i mean, i watched that, here's what i'm talking about. it says here, did you read this? >> i watched the game. i didn't get up to read the paper yet. >> it talks about the player who says there was an emotional punch. yeah. >> i love that joe gets his news from the newspapers. get to the point. >> the point is i thought it was a player that called it. >> i was watching it last night.

it was the offensive coordinator. yeah. >> the player got the attention of the player and said, time-out. >> tough loss for the nfl, but ultimately the games and look -- >> if you guys didn't have this story, would you be reporting on the games? it was a great week for -- football's going to go on. like the guy in the netherlands hates football. football is all around the world. >> here's where we agree. the business of the nfl could not be healthier or robust. the ratings are through the roof. people are selling tickets. >> can't you admit the house is not burning isn't something krour going to lead with in sports? >> on "meet the press" yesterday, he said as long as the money is there, all this doesn't matter. the question is whether the sponsors, you think, ever look at this situation even with the

ratings. >> not be associated with what? >> with what the league has done. what the players in the league, how about that? >> because they represent a cross section of -- only football players are domestic violence? >> they represent a cross section of america. let's put that out there right now. >> it does represent a cross section of america. >> take it all into account. adrian peterson with the child abuse. ray rice. >> how many players are there? and entitled and they're coddled and they make a lot of money. none of this is surprising in terms of human nation. there's going to be substance abuse, domestic abuse. now, goodell's job is to protect the brand of the nfl. but that doesn't mean on the

thousands of players you're talking to every one of them asked. that's not the way it works. >> there's not a banner flying above metlife stadium saying goodell must go. >> when they come out and say goodell has ta answer for domestic violence. it's a problem that needs to be dealt with by society. not by the nfl. >> but goodell himself said it was too light. >> he admitted that. >> ray rice actually is appealing the suspension today which should be interesting. which brings the story back into the spotlight. that could be a problem for the league. because if he was honest with the league, what was contained in that videotape, why then was the suspension tape once the videotape came out? >> even if he wins against the suspension, who's going to pick him up after that? >> i can't imagine anyone in the short-term. >> people knew something bad had happened. you knew that all along something bad happened. we've got to go.

>> dave, thank you. the nfl will survive. coming up in just a moment -- these guys will continue the conversation during the commercial break. better tha. better tha. siemens trains are not your grandparent's technology. they're something that's gonna change the cities we live in today. i find it so fascinating how many people ride this and go to work every single day. i'm one of the lucky guys. i get to play with trains. people say, "wow, we still build that in the united states?" and we say, "yeah, we do!"

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financial noise still to come this morning, how north dakota is capitalizing on the nation's energy boom. we have heidi heitkamp. that starts right after the break. "squawk box" will be right back. ♪

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forget facebook. forget visa. alibaba about to take the ipo crown. the chinese commerce giant has become the biggest ipo in history. ceo jack ma, can he take over the world? we'll talk with senator heidi heitkamp. and scott land's battle for independence. the country about to vote on separating from the united kingd kingdom. what shock wave would that send through europe? the second hour of "squawk box" starts right now. ♪

good morning, everybody. welcome back to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. the first time warren buffett has been to a professional fight this weekend. remember this shot of the two of them. it turned into a profitable night for buffett and a host of others. it had nothing to do with the fight. we'll explain that a little later. first look at what's happening with the futures this morning. first time in six weeks the equity markets ended lower. you can see this morning some red arrows. but these are modest declines at this hour. the s&p futures down by less than three points. the 10-year has continued to see that yield pick up. 2.6% we're watching this morning. already looking ahead to the two-day fed meeting that will

close wednesday afternoon. the policy statement coming out at 2:00 p.m. on wednesday. also corporate headlines this morning. alibaba could be on the verge of the largest ipo in history. it will increase the size of its planned ipo. alibaba expected to price on september 18th and begin trading the next day. so friday is going to be a big one. also a potential takeover battle brewing in the beer industry. i don't know how much it's really brewing. >> we had to use that. >> you know, heineken says it was approached by sab miller but they want to remain independent. >> if you can use feeling is brewing, you got to do it. >> or on tap. >> yeah. that's true. here with us for the next hour, senator heidi heitkamp.

she is a member of banking, homeland, security, and small business. we put north dakota. she's at the center of the nation's energy boom. you know, i have seen, senator, that governor cuomo created 500,000 jobs in -- i didn't realize he went out there and created each of those jobs himself. but you i would say did get us 3% unemployment in north dakota. >> the reality is and you know it, that's the story here. a lot of politicians on both sides say they created jobs. jobs get created after we create conditions that allow those jobs to get created. and in north dakota we got tons of jobs. >> what's the unemployment rate? >> i say it's zero because we need $25,000 today in north dakota to fill those jobs. >> is there anyone that would

benefit from a minimum wage hike? north dakota? >> not many people. the bottom line is we need to figure out what to do with income disparity and what we're -- >> creating high paying jobs is a good way to do that. >> we're fortunate in north dakota that we have oil in the ground and that we have the technology to get that oil out. and we have great industrious people to do that. the story of north dakota isn't just with energy. we've got high-tech start-ups in fargo. we've got -- >> say that again. >> fargo. fargo. >> love it. >> here we go again. >> that's good too! oh, yeah. >> i somehow knew you'd do that. i think a lot of your listeners would like to hear about our high-tech start-ups. >> go ahead. >> we're one of the test sites for testing the air space for uas for unmanned aircraft. that's going to be a huge boom

because that's a platform with which we're going to develop high-tech surveillance equipment. and if we don't over. regulate in that area, we're going to be in a great shape in north dakota not only in the west but in the east. >> we don't over-regulate. there's a name for people in the house like you. they're called blue dogs for a lot of times. you're wearing a nice red jacket and everything. you are, senator, in a nice red state. >> it proves that redheads can wear red, that's why i wear it. >> i'm very partial to ginger. but just listening to you, you must be one of the people that are craving some bipartisanship. a lot of the things you say do not sound like the core of the democratic party. >> i came with the idea that we represent the people of our state and the country and not a political party. we've been pretty vocal about that the whole while i've been there. and i think probably if you look

at the shutdown of government, who opened up government? it was a bipartisan group led by susan collins. i was part of that group. i think we're trying to continue to build on that. no matter what happens in the november elections, we need to have a senate that works. >> you're not up in november. >> no. >> that's a good thing. did you vote yes on obamacare? >> i wasn't in that senate. >> would you have voted yes? >> you know, i think i've come out with a series of fixes that i think could be very helpful in the health care law. >> but if you had been sitting then -- >> it's hard to know. i think if i were sitting there we would have had a different product. >> really? >> yeah. i think we should have looked at things a little differently. >> you couldn't go back to the senate because you lost ted kennedy's seat. so the senate couldn't have fixed it. you had to do reconciliation wrels. >> you have to do consensus. that's the one lesson, i think, from the health care law.

broad based legislation, huge change legislation needs to come from a broader base. and that's what we did with housing finance reform. >> even lbj when that was done, that was done on a more -- keystone. you would do that. >> tomorrow. i'd do it tomorrow. we've got pipe that's stockpiled in north dakota. can you imagine the investment all along that route that they have languishing waiting for approval. >> what do you think is going to happen? >> i think nebraska is going to approve it and the last excuse goes and there's no legal reason to deny the approval of the keystone pipeline. now, is it the salvation as some people would argue for the american economy? no. but it is a critical piece of energy infrastructure that we absolutely need in order to get energy products to the market. >> but the far left says 300 jobs, people say it's 20,000 jobs or even more when you look at all the benefits from the entire route of whatever kind of jobs. >> this is what i say.

it's obviously more than 300 jobs. but these aren't permanent jobs. just as the president would say, building infrastructure. road construction. >> none of those are permanent either. >> right. we're talking about something that could be very much a stimulus in a number of states. we don't need those jobs, but we need the pipeline because we need to move our product to market. the real danger to not approving keystone is we havage energy infrastructure gridlock we need to break. when they see we can attack the fossil fuel development by attacking the pipeline, then we have a problem. >> so is it symbolic? to me keystone has become more of a symbol than anything else. but there's something else going on here. >> thaerlt. and what's going on here is we can't attack the source of the development at its source which is the oil up in alberta, what

we're going to do is prevent the development of the resource by attacking the transportation. >> it's going to move on train lines otherwise which is a little more dangerous way of bringing it down. >> i'm not going to concede that as more or less dangerous, but i tell you we need more pipeline capacity in that country. we have a bag log on the rails that is desperately hurting my ag producers because you can't get track time. and so we've got to figure this out. because not just in oil and gas. we've got to figure it out in electrical generation transmission. we've got gridlock issues all over and the need to build out that transportation infrastructure. you know who knows that? secretary monese. it's based on moving the energy, not whether we have enough to develop. >> the symbol, andrew, is it's hydrocarbons. which is building out more hydrocarbon infrastructure. which six years ago before this revolution, this fracking

revolution came along, the obama administration had no interest in it. and they've been dragged kicking and screaming where maybe they need to do it. but they haven't. because there are people on the left that will go crazy because of climate change. >> i mean, i can only tell you from my perspective. we need to build out infrastructure. we need more than just keystone -- >> hydrocarbon frinfrastructure. >> right. we've got to get it to market. i hope one thing john hess and i are going to talk about it when he comes on are exports on hydrocarbons. >> you would be like i said, the lights are on at the gop headquarters when you want to come home. but tell me, because regulations, you don't like high taxes, the keystone, you wouldn't necessarily have gone with obamacare. what about the democratic party keeps you in it at this point in

north dakota? >> what i used to tell people, i said i looked at the ryan budget and didn't see a lot there for people. i didn't see a lot of investment in technology. i didn't see a lot of opportunity to build out for the future. whether it's investing in children. whether it's investing in higher education. and so i think there's a lot to be said about where you're going to find a party that wants to build out resources for the honor and dignity of the muld class. and that's really what i'm about. >> when you say investing, you're talking about government spending on those things. >> i'm talking about education investing. head start for parents who can't afraid to send their kids to fancy preschools. >> do you think the entitlement issue that ryan was trying to address, is that something we need to do? you don't like his voucher system or something? >> that's right. but i think when you look at what's going on absolutely knock us for a loop in terms of budget deficits, it's health care. you know, we don't have a

deficit problem as much as we have a growing cost of health care. and we've got to figure that out as we age out, as we look at new technologies. so what would you do? maybe you look at how could we delay the onset of alzheimer's to save cost? how could we get people to live health yer? those are the things that we talk about in the democratic party that i don't hear a lot of discussion about in the republican party. and so i think some of the ideas for the future for me when i look at moving forward to the future, i think those are the values where i belong. but there's things i think where we see gaps in logic behind how business actually works. and what we need to do to provide certainty. and i think that's a fault on both the far right and far left. we need to get that moderate middle talking more and more about certainty in business so that we can get this country moving again and investing again. >> all right. well, you can't stay here. you got to go back to washington

eventually and go back in that vortex. it's nice here, isn't it? we talk about things. >> i know. we don't yell. >> well, we'll see. nice to have you here on set. we've been in the rotunda with you there. but we came to see you. this time you came here. and it's fargo. >> we'll have more from the senator still ahead. >> you bet ya we will. next we're going to talk scotland. now a historic vote could split the you nighted kingdom. why this could send the dominos crashing down on europe. "squawk" returns with that and more in a moment. take and... exhale.in... aflac!

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welcome back, everybody. checking the futures right now. we have seen a bit of weakness. this is coming after last week. we did see a decline for the s&p and the dow. on friday they ended on the lowest level they've seen in about four weeks. this morning things have turned around a bit. before we went to break, we teased this. scotland is now voting on independence from the uk. we are joined now to tell us where the handicap is. >> there were four polls released over the weekend.

three show the noes to independents with the slight lead. they always exclude the undecided in these polls. majority will look like this one. 45% say yes, 48% say no. 7% is undecided. there was one poll done by the telegraph where the yeses are ahead. undecided there are 9%. that's what leads us to the decision too close to call. who knows what's going to happen with the undecided votes. the queen, queen elizabeth broke her silence. she did not tell the scots how to vote. she did say think carefully about how you're going to vote. a big protest in scotland because they think the scots who protest think the bbc has been biased against independents

calling for the dismissal of the head of the bbc. and we also heard from nile ferguson late last week. he was interviewed in kiev of all places. they were talking about something else. but then nile, who we've had on the show, is a scotsman. here's some of the reason he's against it. >> their story is that somehow or another they can increase welfare spending, have a more generous welfare state even as they cut themselves off from revenues from the obviously richest part of the uk, the southeast of england. their story is that somehow the oil is going to increase in volume when all experts will tell you north sea oil output is dwindling. so it's economic fiction and it's disturbing that nearly half of scots appear not together. >> professor ferguson said if they vote for independence, the first thing he's going to do is apply for a u.s. passport

because he's scared his home will be dead. david beckham has said you should vote no on independence. >> does somebody in the government call beckham and say you've got to get involved in this? how does that happen? >> every personality in the uk has come out on this. this goes to the core on either side. everybody and their mother has come out to say something. j.k. rowling put a million pounds towards the campaign for the no vote. david bowie once used an opportunity during a concert to say vote no. it's over the top. the question is what happens financially. you're going to hear a lot of predictions that there's going to be a crisis, et cetera. it comes down to the issue of whether or not the bank of england would be the last resort to the scottish banks. immediately they would until they work out negotiations. it's more about what you heard

professor ferguson saying what would their policies be afterwards. >> we also have an investor, an analyst on last week who suggested if this were to happen, other parts of europe would go. is that what we really should be worried about? >> the european union is quite worried about that. in italy they've agitated for independence. >> the scots would like to be part of the eu. if they secede from the u conclusion, the problem with that is spain might say i don't want you here. >> exactly. core part of the sthoou theissu. i think the uncertainty is the biggest issue, what would they do afterwards. they're clear right now when you read the yes campaign. for now we would continue to use the pound as some part of currency union. but the minute they do that,

they lose their ability to control their monetary policy. right? so if they want lower interest rates. and if you need to have an independent banking system, you must have a much stronger banking system because you are smaller. that means your banks have to have more capital. what does that mean? less lending. it ends up being contractionary. >> the gaelic nile is pronounced like peel. there it's like nile. and in fargo i have no idea how to pronounce. >> my question is who's saying yes? i mean, where's the passion on this vote? >> right. it better not mess up my golfing there. >> young people are very much -- >> so who's going to have the passion? >> if you're 16 you can vote in

scotland. >> but what's the reason? they want their british over lords? >> that's part of it. they've been promised by the yes campaign there'll be more investment spending in their country. >> well, they have the north shore oil. but i think it really breaks down that the uk -- that england sends them a lot more money in terms of what they end up supporting. >> it is likely they would end up running a budget deficit for sure. plus their current account deficit. >> do we know what the currency would be? >> it would be the pound. >> i'm going there in two weeks. >> it would be the pound for now. there's an 18-month approach? >> it would be a kilt. >> support es of the yes campaign say subsequent leaders of scotlan scotland. >> what's your best guess about the vote? >> i think it's too close to

call. i leave tonight for scotland. friday morning live during your show, the results come out. >> all right. when we come back, the world getting ready for the biggest ipo in history. alibaba's road show kicks off. what is that going to mean for other internet starters going public? and find out which film managed to overcome "guardians of the galaxy." "squawk box" will be right back. e financial noise financial noise

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welcome back, everybody. a movie winning the weekend box office "no good deed." it's about a man that terrorizes his woman and family in his home. "dolph "dolphin tale 2" takes the second spot. john hess ceo of hess corporation will be here. "squawk box" returns real quick in just a moment. opportunities aren't always obvious. sometimes they just drop in.

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welcome back to "squawk box," everyone. we're talking about some of the stories that are front and

center this morning. apple will reportedly get 15 cents on each $100 transaction with apple pay. i don't know if that's on the high end or low end. health care group danaher buyed nobel for $2.1 billion. they are holding a call with investors at 8:30 eastern time. attention procrastinators, a new study proves what your mother told you for years. putting off your school work is a bad idea. the research finds that students who turn in their homework at the last minute get worse grades. >> tell me we didn't pay for that. stop the presses. people that don't do their homework and do it at the last minute get worse grades than other people? >> they do. >> come on. did you vote for the funding for this? >> she said it was a uk study. listen. >> thank you. thank you, senator.

>> no wonder scotland wants to leave. okay. you're lucky. you dodged a bullet. i'm sure we've done stupider things. >> i'll get you on somebody today, senator. >> oh, boy. she's quick. she's fast on her feet. i don't think you're going to get it. >> unlike me, she was listening. >> several waves of western sanctions against moscow for its involvement in the ukraine crisis have limited access for russia's largest banks. our next guest says if we really want to send a message to president putin, the u.s. should be exporting oil to europe. joinings us on set is john hess. he is the ceo of hess. also with us senator heidi heitkamp. thank you for being here this morning. tell us about your logic behind this. you think if we really want to send a message, the way to do it is through the exports. >> the u.s. is an energy powerhouse. we're the number one gas

producer in the world. over 90 years supply of natural gas. and we're the number three oil producer in the world. about 55-year supply of oil. and the best way for us to respond to the events in russia as well as the mid-east is simple. repeal the ban on crude exports. the ban was put on place in the '70s at a time of a shortage. right now we're in a period of supply strength with a lot of visibility to come. so if duo that, it would go a long way to lowering prices and increasing jobs. and recently brookings came out with a report that supported that. and iahs, from "new york times." >> now all you've got to do is convince becky. >> i will say -- >> she wants to horde everything. >> for the longest time i thought to keep it here to get off opec oil. >> but we can export gasoline

but not crude oil. how does that make sense? >> i might just compliment the senator on that. >> and so what we're really looking at is finding a natural market for a commodity that is globally traded. and if you don't allow the exports of this oil, they're going to reinvest some place elsewhere they can market their oil. so it's going to reduce the development and the dollars coming in in development in our country. and it's going to have huge consequences in terms of where we are with oil prices globally. because we're going to restrict supply. instead of trying to control demand. but the other part of this story that needs to be told is it's not just the united states. we know what canada can do. we've seen mexico now do their historic reforms. and so north america is going to become the energy powerhouse for the world if we allow them to trade their -- >> so you're suggesting we come up with our own opec. >> well, not opec because opec

was price controlled. we're going to increase demand or supply to control the price. what i'm saying is we have an energy-hungry world. and they're getting their energy from sources that we'd like to say no more. like russia. and if we deploy these resources in a smart way, we'll not only help our industry in our state and in north america, but we also will help stabilize europe. >> let me ask. with europe, isn't it a bigger situation where they need natural gas? that's what they're so reliant on russia for. >> russia supplies 30% of europe's gas. but also 30% of rush -- russia supplies 30% of their oil and 30% of their gas. >> okay. i didn't realize that. >> so the ties are very strong. and the importance of the crude export repeal of the ban is not something we can do right now. the gas we export is probably going to take five years before the infrastructure is in place. >> because of what it takes to

ship it. >> it would probably put pressure on prices down. but it'd be the right thing long-term in terms of makes markets open. >> if we could talk about natural gas, because a lot of people are concerned if we open it up for exports, that's going to dramatically increase the natural gas price. and the reality is that it costs so much to off shore that natural gas, the secret here is in order to be competitive in other parts of the world, they need a lower price gas in our country. so what people don't understand is that 7 cents in mcf it's going to cost to offshore our gas. we would move this gas to central america where gas prices are over $20 in mcf. what does that do to the economy down there sfl there's so much opportunity to continue the development in our country, to continue to build the jobs and deploy the resources here and then do really great things across the world. >> right now prices are so low

for natural gas, they're capping lows. >> and that's what maybe a lot of my colleagues don't understand. in a debate recently, i kind of booed about that. look, you artificially deflate and not let the market find its place. you artificially deflate the price of natural gas. you will reduce production. and they just couldn't quite grasp that. >> when you say colleagues -- >> this is not a partisan issue. >> i know who you're talking about. >> -- that's going into our country in terms of unvengsal oil and gas. it's a hundred billion dollars a year. so it's a huge thing and has created jobs. we're spend -- have spent $10 billion to build our position that the senator and senator hoeven saw first hand on their tour when they came and saw our people and our operation in

augu august. that investment has allowed us to increase our investment. we're drilling some of the lowest cost wells there that are generating so m of the highest returns. that has a lot of visibility going forward for our shareholders. and we've reduced our well costs. talk about the american ingenuity. >> it's all good, senator. but you know it's going to stay cheap for a long time too. because we have a lot of it. and it does sort of -- some people don't like it because it makes wind and solar, it pushes the economic prospects of those renewable sources we spent so much money -- and we decided as a government that we were going to make sure that that -- and it pushes it in the future to get economic competitive with it. it's clean. but there's people who don't care that it's clean. right?

>> i would tell you that there is a number of people right now who are building out wind generation because it's a lower cost form of generation of electricity. it will find its market. >> but this puts a lot of that stuff on hold. >> natural gas prices have squeezed out coal. the double whammy of regulation of coal and natural gas prices, no one has coal on the books. you couldn't find money on wall street to invest in coal fire generation because of low natural gas prices. which is the reason why a lot of people want to keep low natural gas prices. >> what price does crude go that makes it unprofitable to drill? >> i would say people would start cutting back simply for cash flow reasons another $15 a barrel from where it is now. >> do you think that happens though? >> if prices go down there, yeah. >> do you think price wills go down $15? >> i think prices have been down 15% since their peak earlier this year because of slowing

economic growth in china. strong dollar. japan as well as europe as well as increasing supply from the united states. >> the demand continues to rise globally. but slower. look at the geopolitical that's had no effect. >> that's been the offset. >> you could see just in speculation in the past in the '80s and '90s if there was a disruption in the mid-east, boom, oil prices went up. you don't see that -- that has changed. >> right. >> a lot of the hedge funds are out. >> one of the increases in supply in the last month has been libbey which has been off the market for the year. >> we've got to go. you mentioned hedge funds. it's a hess question. your whole company has a different board almost completely in the past six months now? >> yeah. >> how is it different? what decisions are different

than otherwise? >> it's interesting. we have some that we made a settlement where we brought some new directors on. some representing independent interests from paul singer. and then some hess legacy directors. they all bring a lot of skill to the table. we listen to all our shareholders and put in a plan i think was put in years ago to transform our company to an expiration company. we're executing it well and all our shareholders are benefitting now. the company is doing very well. >> you have any size coffee at hess where i stop, is that your idea? i stop there in the morning. >> do you get the small or the large? >> i was smart enough to get the large. >> joe, just so you know, while we're selling our gas stations as part of the transformation to our production business, we're still going to have the hess

trucks. >> they're helicopters and all kinds of stuff. >> but they'll be sold on the internet going forward. >> but you'll only be able to buy them on the internet? >> yes. this year at the stations but on the future on the internet. >> these are the important information. can we still buy the toys? >> big hess story. coming up when we return, buffett hits it big in vegas. then later, alibaba set to be the biggest ipo in history. a look at the impact on the ipo market and what it means for other tech start-ups looking to go public. we're back in just a moment.

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today there's a new way to work. and it's made with ibm. welcome back, everybody. little bit of news for you. warren buffett hitting it big this weekend in vegas. he was at the mgm grand for the mayweather fight. he bet on the sports book for the first time ever. he went up to the window, put $550 on nebraska. that's how much you needed to put down so you could win $500. turns out about 40 or 50 people saw him make that bet, they immediately went running to the window and said i'll have what

he's having. they all went betting on the same thing. nebraska won by a blowout 55-19 more than covering the spread. made warren buffett just a little bit richer and those other guys as well. >> he's lucky. >> i don't know. if you saw him making a bet on a stock, you would follow him. probably here too. >> whatever he tells me to do, i would do it. >> even if it's football. >> pretty much. when we come back, alibaba ready to close its books on investors. we'll look at what it means for the market and investors looking to get into the game. look at the futures this morning. you'll see at this point they're basically flat. dow futures up by two and a half. s&p down by one and a half. "squawk box" will be right back.

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welcome back. the alibaba ipo on track to become the biggest in history. reports today saying the chinese e-commerce powerhouse will up. joining us now is ethan kerzwag. good morning. help us here. is this overblown? underblown? is this the next facebook ipo? i don't know if that was a good thing, a bad thing. >> it's definitely a media sensation. i think in the grand scheme of

things, this will be muted. like facebook. everyone will talk about it for a couple weeks. it won't have a big impact on the markets. >> because? >> because it's a specialized event. so it might have an impact in terms of international e-commerce at a couple of companies that can speak to alibaba directly as a comparable. it's just not a good proxy for the run of the mill ipo right now. >> when we hear they want to. raise a price and ipo numbers, is that a good sign if you're an investor? >> i think it's a good sign. remember, it's 12 different companies in one. it's not a simple story to understand. >> are you buying in? >> you know, i don't buy public stocks, but i think the company is pretty remarkable. >> did you guys ever try earlier on? >> we don't invest in china, so it's not a -- it wouldn't be a relevant comparable for us to

look at it. but as a business as what it's done, i'm impressed. it's incredibly innovative. they've taken their core business and expanded to 11 other things. >> do you think this as a top of the market? >> no. not really. i think there is certainly some frothy behavior going on. there's a lot of people are moving quickly. and i think the reason that's happening is twofold. people are seeing how fast consumer companies are having an impact on our lives and building good businesses in the process. that's causing a lot of investment. i think there's the other side of that coin which is people are seeing that where it doesn't necessarily exist. >> but it's shifted to what you think about investing in start-ups today. i imagine you invest in a start-up today and think hopefully two, three, four years from now we could have an ipo. do you think to yourself given where we are right now, i'm not

sure where the economy is going to be in two or three years. >> we think about that but time the market is totally impossible. we started talking about when the facebook ipo happened. you would have missed that incredible market since then say k it looks frothy right now, let's sit back. so these companies that we're talking about, i mean, was anybody talking about uber two years ago? pinterest two years ago? >> will we be talking about them two years from now. >> i think we do. >> would you prefer to own amazon or alibaba? >> that -- i'd put my money in both. i mean, i think they're two very different things that are attacking big opportunities. >> we compare alibaba to amazon all the time. it's amazon meets ebay. >> i think alibaba is in more businesses and have succeeded in more things. in that, i would take alibaba.

i wouldn't count against amazon. >> i'd even sell some apple to buy alibaba. some people said with apple, they're saying it's directly related. have you seen what amazon's done in the last three months? it's come down it's come down a lot. and that may be money -- there's a lot of money. >> ethan, we should tell you peter teal is coming on "squawk box" on wednesday. so the question we're going to ask you is what question would you ask peter? >> good question. so peter's famously said it's overinflated. he's taken 20 kids and tell them don't go to college, come into my program and you'll get a substitute for college. so i'd ask him what about everyone else? what are you going to do for all the others?

how would -- what's your plan to actually, you know, impact education beyond this 20 kid thing? >> okay. we're going to save that clip and play that on wednesday. thank you for being here this morning. if you at home have questions for peter, post them on our facebook page. really it's his because he owns facebook. or you could go on twitter and use the #askthiel. >> let's get back to our guest host today senator heidi heitkamp. i was looking at statistics about north dakota. from 2010 to 2013 there was growth up 7.6%, more population coming into the state. we know about what the bakken formation has meant for oil production, but what has that inflow of people, that boom, what's it been for your state? >> it's been huge. as a result we have a 20% to 30% gap in the number of housing units that we need single family. can you imagine that?

30% increase in the number of houses you need. we can't get retail workers. we have restaurants shutting down because we can't get workers. we have spinoff industries that are excited about the ability to work in energy but now are finding platforms in other industries. so we have this growing development. john hess runs a company that's a legacy company for us. they drilled the first oil well. and during the '80s when i was working in state government, we looked to find every way we could to keep that industry alive. now we've got this great technological buildout. it shows what a primary industry, an instractive industry can do for everyone else. and the ripples are tremendous. but it's created tremendous interest. we have prostitution rates you

never thought you'd see in small towns. we have rents that would as i say make new york landlords blush. $3100 a month for a two-bedroom apartment in a small town. and so it's not without its challenges. but they're challenges i think we're meeting every day. and the resiliency of the north dakota people and trying to balance our agricultural sector which is experiencing some challenges, which you guys probably know a lot about given what's happening with commodity prices and transportation. >> you mentioned the transportation. just trying to get cars on the railroad to get the crops out it's been a difficult year for that. >> well, most of bakken crude moves on rail. you've seen obviously high profiled situations of bakken crude with derailments and explosions. that's created a lot of concern about safety. we think we need to build out more pipelines. the bottom line is we will adjust. the lesson for the rest of the country is when you invest in

primary sector, that's the new wealth creation for our country. we need to continue that by exporting. we need to build out our exports by authorizing the base we talked about. >> you get along with the governor? >> i do. i've known the governor for a lot of years. >> republican, right? >> correct. >> the guy before him, republican. the guy before that, republican. you've got to go back to before electricity to get democrat. >> you take a look at what is the -- you know, we're a great state because we've been blessed with a lot of hydrocarbons in our ground. but we figured out hoe to get them out. >> you released themt into the air. thank you. thank you. feel hot in sneer you wonder why? >> so my message would be look for those industries. you just heard high-tech. that's great.

but you know what? you need to have new wealth created so you can actually have consumers with dollars in their pocket. and that's the lesson i think of north dakota that we need to focus on. >> senator, thank you so much for joining us this morning. it's been a pleasure. >> thank you so much. >> you're finished. with flying colo fors. >> i hope that's not a statement on my health. when we come back, record preorders of the iphone 6 could have people waiting for months. a closer look at the apple economy. stick around. "squawk box" will be right back.

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welcome back to "squawk box" here on cnbc. welcome far monday. first in business worldwide. i'm joe kernen along with becky quick and andrew ross sorkin. the west coast is waking up to a one-two punch from mother nature. waves slamming one of mexico's hot spots this morning. hurricane odile making landfall in baja, california. right? in baja. sustained winds were reported to

be 125 miles per hour. the storm could threaten the southwestern united states by mid-week. and this morning a 4.7 magnitude earthquake was reported also off the baja peninsula coast. scientists say they don't expect any injuries or damage from that quake. >> thank you. in our headlines this morning, heineken rebuffing a takeover t attempt by sab miller. they intend to keep the company. also shares of coors rising on all this deal talk in the industry. the stock up by just over 6%. also a good morning for yahoo!. shares trading higher again ahead of the alibaba ipo. yahoo! holds more than 20% of the giant's ipo shares. alibaba plans to includes the size of its offering.

scotland is voting on independence from the uk this week. polls suggest it's too close to call. many companies have warned they will move to england if the scots break away. >> and the buzz on the street is the rate hikes could be coming sooner than expected. steve leisman joins us now with more on that. >> the feds got a bit of a problem here. the markets don't see to believe what the fed is saying about the rates. it's that the markets see the fed more dovish than the fed sees itself. take a look at this chart. what we're looking at here, the blue stuff is e the market. that is the fed fund futures for respectively december 2015 and december 2016. and the green stuff there, that's the average of the fed's own forecast for the sum of economic projections. each case is the market is substantially is two points less in each case there. so the market for example is at

1.8% and the fed for 2016 at 2.4%. this dovish view of the market seems to endure even while there have been hits of a somewhat more hawkish yawn as it has been more robust. growth near 5% in the quarter could be in the mid-threes this quarter. it's still substantially below the fed. you can see there's ten basis points in the past months. all this suggests significant catch-up if the fed makes changes at the meeting this week. such as for example dropping the considerable time exchange. >> will you grace us with your continued presence here? >> sure. >> okay. steve has agreed to stick around. for more on what to expect from this week's fed meeting. and drew madison is here. he's the depth chief u.s. economist at ubs.

we're at 2.6 and it's moved quickly back to 2.6. are you willing to say at this point, 2.3 is a thing of the past? >> the rates on the ten? >> 2.6% is where we are on the 10-year. are you willing to say 2.3% is a thing of the past? >> no. >> i think we're on our way. you think we're on our way leisman? >> i don't. i think the next inflation reports are going to be low. you'll get a downdraft from energy -- >> you don't see anything from oil and the euro to indicate that the rate has been passed? >> i think there's a cap. i think we may be at the current high range -- high end of the current range. you've seen this. you know this. >> it scares me then. it means the fed if we're not strong enough to maintain 2.6%, then the fed is going to feel like it needs to do more.

>> it's one of those things where everyone thinks it's going to take five years. >> someday it's going to happen. >> yes. but being short for this long for that long period of time is very painful for people. right? they have to keep their job through the end of the year and they don't care whapt the last four years. >> but they would g squeezed out -- they already were squeezed out. >> some did, others financed that loss with gains in their credit. >> rates are unreasonably low rates. but europe -- >> europe's going to keep it down. joe, the stronger dollar is a sort of deflationary impulse that's going to go through the economy here. >> you base it on inflation, not on growth. >> i think the only thing that matters for 10-year yields -- i don't see it necessarily as -- >> but not u.s. inflation. >> i think that's part of what's happening in the world today is european inflation.

i want to ask drew here for a second. you think the feds got a bigger problem longer term than short-term. you think it will take some action maybe this wednesday to solve that prob. it's not what happens in the next six months. it's the next year or two years. >> yeah. so that's kind of baked in the cake at this point. what's not baked in the cake is how quickly as your chart showed the fed will raise rates. so this is the product moving the time language. if they remove the time language, they'll pull forward the rate hikes. and that entire curve will shift higher by two meetings. so you'll hit your 50 basis points, 2016 targets. but by pulling forward the rate hikes in front of the fed, you'll do it in the most disruptive way possible. >> give the guys at the fed a warning. a way to redo the statement. >> what we think they should do is remind people how the fed tends to move when they hike rates. they tend to go on long lasting,

slow movements. 25 basis points a meeting over and over and over again. and i think what the market's pricing in now is they're going to go in march, take april off. go in june, take july off. you and i both know fed policy officials would tell you that they don't know anything six weeks after they hike rates. it hasn't had an effect yet on the kpi. what's the point of pausing at those points? there's no point. so the fed's not going to do that. the fed should just remind people we don't act that way for a reason. >> drew, i've been surprised at the economic numbers. i've been surprised we do our rapid update and we're at nearly 5% for the second quarter. we -- you say that was an i told you so. >> no. i wasn't saying i told you so. i just don't believe the first quarter numbers. >> all right. so we're near five. now we're going 3.5 on the third quarter right?

>> yes. that one i will say i told you so. >> so this is faster than the fed thought. >> yes. >> doesn't that mean the fed should be raising rates faster? >> well, it does, but they won't. >> okay. >> i'm not janet yellen, i'm not pulling the trigger. i have an idea what they should do. they're not going to listen to me. i can tell you that right now. janet yellen is going toe path of least resistance. be the least disruptive person you can be to the markets. i think that means they leave in considerable time language. it's considerable time after tapering. once that's gone, the language is meaningless. you might as well leave it in there. >> the more gold normalizes -- >> what does that mean? normalized gold? >> it was too expensive. >> you mean comes down in price. >> based on the last five, ten years of central bank, that drove it up.

i think being normalized. these are unreasonably low. >> you ever want to scare someone? explain to them how money's created. that's why gold moves the way it does. i think for halloween i'm going at money. it's the scariest concept. >> you and steve should go together. he's got some really boring themes too. fiat money? seriously? no one's going to know what you're doing. they're going to say look at that guy. >> random dollar big sign. >> i'm thinking of shaving me head. >> you should go as lord leonard cains. see if anyone recognizes you. >> i could dig holes and fill them back in the entire evening. >> you could. >> it's on a friday this year so it's going to be more fun. >> what are you thinking? >> he's going to be egging people's houses. mischief night. >> i grew up in new jersey. >> i mean, the joke would be you would take off your -- the costume you wear every day. the wig.

>> thank you, guys. up next, apple's big weekend of iphone 6 preorders. what impact will the two any bigger phones have on the bottom line? more after the break. and every four minutes a ship enters the singapore strait. now it is also one of the most dangerous on the planet. the growing piracy problem. "squawk box" will be right back. , saved 760 bucks. love this guy. so sorry. okay, does it bother anybody else that the mime is talking? frrreeeeaky! [ male announcer ] savings worth talking about. state farm. 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. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience.

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welcome back to "squawk box." apple already reporting record preorders for the iphone 6. carriers are saying wait times for the new larger iphones could be four weeks or more. joining us now with his challenge to the ieconomy is david. the 6 plus may be stronger to some degree, some of the reports are suggesting. does that surprise you? >> it doesn't surprise me at all. because we've seen strong indications from the market that large screen size smart phones namely with samsung in the lead on this have been seeing strong demand. from the standpoint of loyal apple users as well as people considering moving over to apple will be drawn to the 5.5 screen size on the iphone 6 plus.

>> in your sense is this is going to be sold out for the rest of the year. if you walk into a store when they supposedly go on sale, will they have them? >> they will have them. they need them for display purposes. but the thing to consider here is when we had the announcement last week of the iphone 6 launch, they noted on the 19th, we're only going to have this available in nine countries versus 11 last year for the iphone 5. now, among those 11 countries last year was china. when china gets the iphone 6 plus availability, obviously expect a lot of the demand and supply for the iphone 6 plus probably to go to china which obviously takes supply out of the channel in other markets. >> david, what's your sense of the margin on these products? i assume the screen costs more, they have more memory. are they making more money on these devices? less money on these devices? >> dollars per unit are probably going to be going up given the fact that fully loaded i-phone 6

plus is going to cost you about a thousand dollars. so dollars per unit probably still shows a nice rise versus the iphone 5. margins probably stay flat until we get curb efficiencies. >> david, i want to tell you about -- there was a survey done by the textbook rental that says that only one in ten people says the plan to buy the apple watch. i know it's not available immediately. but when you modeled out the watch and you think about the future of apple, what was your take on where will it be? >> i mean, the watch coming in at $349 a unit compares favorably with the iphone pricing. granted it's not at the high end of the range. but enough to cover hardware. i think the thing you find for the watch is it drives more people to using the iphone because the combination of the two is going to provide millennial consumers with a greater range of data they want

information to about personal health as well as other potential offerings. also the ability to have a smaller device you could use for using apple pay with near field communications, point of sale terminals where people can go in and out. >> how many watches are they going to sell? >> probably over 10 million. >> in 2015? >> in the first half of 2015. >> first half of 2015. also tell us about your model on apple pay. that's always been a -- become a big issue with credit cards. >> i mean, apple pay, certainly on a pure stand alone basis, apple pay itself isn't going to move the needle that much ffr the bottom line. maybe less than 10 cents a share. but the thing that's important to look at apple pay is given the number of retailers that are coming out and supporting it not just in the retail or globally, we think this travels more to the iphone ecosystem. from that standpoint, apple pay helps to drive iphone 6 sales.

and that obviously is what drives the bottom line. >> i gather you're bullish on the company, but let me read something on the other side and i want your response. the same survey i quoted earlier says apple may be on the verge of quote, losing its cool factor comparison to tech contemporaries with just 64% of respondents rating apple as grade school. versus 72% for amazon. what do you think of that? >> 64% is more than andrew cuomo got in the primary last week. i think apple remains as the incumbent. i think what people will have to see is the experience of looking at the combination of the watch and iphone 6 as well as apple pay. i think we'll find this remains an easier to use platform and as a result gets greater adoption. we also look -- i think the thing to focus here in terms of consumers is to see what happens with the response when the

iphone 6 is improved there for sale. >> have you preordered one? >> yes. >> which one? >> top of the line gigabyte iphone 6 plus. >> thank you. >> thank you. coming up, we're going to talk about russia. russia producing that ban against europe has folks in amsterdam painting the town red this week. more with that after the break. "squawk box" returns in a emt mo.

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live shot of the nation's capitol. looks like a renovation going on there. bill ackman has announced to float a fund on amsterdam stock exchange. ackman's firm has already secured $1.5 billion from 30, quote, corner stone investors, trading the shares expected to start on october 13th. there were reports earlier in the year they were looking to do something like this perhaps in london. >> we talked about that. we talked about how it doesn't necessarily -- it's not based on every day. it's based on a normal stock. but it's easier for him i guess. >> permanent capital.

>> $5 billion is a lot. he always wants to be the warren buffett of investing. >> as long as we're on the topic of amsterdam. hundreds packed the central dam square for -- it's called the central dam square. the tomato throwing fight was scheduled as a protest over russia's boycott over european produce. tickets to the fight costed $18,000. organizers bought 120,000 today mows for the event. and the proceeds were going to tomato farmers that were hurt. >> i would pay 18 bucks if i could throw tomatoes at you too. >> is that what it said 18? >> 18 bucks to get a ticket to an hour-long fight. i would pay that. better than the paint ball

fight. these don't hurt. >> that's true. >> if you didn't want to get shot, you shouldn't have agreed to participate in the paint ball fight. >> i didn't know it was going to bree bruise me or leave a permanent scar. >> i know. my job was to eliminate the other team which you were on. >> point blank. >> point blank. come on. she's a girl. you can't do that kind of thing. >> oh. do go on. do go on. >> just saying. >> i guess they shouldn't be in combat than. what about pilots? where are you going with this? >> commercial. we're going to have an exclusive look at one of the world's most dangerous waterways. the scary things that happen there and how you could be left paying the price of that crime. as we go to break, look at the futures. red arrows at the moment. we're back in a moment. things n get so hectic. so sometimes i need to find an easy way to express what's most important to me.

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cognizant. buying trizetto for $2.7 billion in cash. they are is developer of health care related software. also united rentals and united health services will become the two newest members of the s&p index. they'll be replacing graham holdings. >> universal. got it wrong in the lower third. and it was wrong in the scripts. universal health and united rentals. >> thank you. nokia is also getting a boost in the positive comments from oppenheimer. >> the parent company of ann taylor is facing more pressure from two hedge funds that want the retailer to sell itself. in a presentation to be given today, the funds will say the company could be sold for $65 a share. seagate technology raising its

revenue forecast. they make hard disk drives. let's talk tech this morning. she joined on the the 12th for her three picks. they were good favorites to have. sales force is now up 18%. google up 11%. and amazon is up over 13%. but ann is about to announce that she's going to replace amazon with linkedin which is up 51% since may 12th. ann, i need to understand -- it's great to see you. but i want to understand why you want to go with linkedin. >> i think linkedin is headed into big spate called analytics. they're already there.

i changed linkedin for amazon. i think it's getting harder for shareholders to really understand amazon's model. they're opaque in their numbers. it's hard to see where they're going in the market. and it's clear to see where linkedin is going with their new product offerings and business. >> you raise an important question. harder and harder to analyze amazon. what do you think they need to do to make it a little simpler? how would you want to be able to model out what they're doing there? >> i'd like to see more openness on the numbers in their cloud area. they're a huge player there. we rarely see a start-up pitching to us that isn't working with amazon. but they're not just a commerce economy anymore. they are an enterprise software company. that's hard to tease out of their numbers. >> help us with just a couple other companies. then i want to actually get your

thoughts on alibaba. you're sticking with sales force and google. what's the upside on both of those from your perspective? >> well, it was announced last week their upcoming dream force which is like the greatest show on earth here in san francisco for the fall that he will be announcing their enterprise analytics cloud. if you look at the takeup in analytics attached rates to applications, it's about 5% to 10% maybe even as high as 15%. which should increase sales forces by perhaps as much as a billion dollars over the next four years. so that's going to give sales force a lot more room to grow a company in their current growth model. >> and google? >> google's a powerhouse. the revenue for employees is about twice the next largest software company. they're increasingly diversifying their revenue streams. albeit small relative to ad

sense. they're a -- they are the biggest investment and software company right now. >> let me throw alibaba at you. that ipo likely to happen the end of this week. would you buy it? >> i rarely buy at ipos. i watch right after the ipos. i think they will be a big player here. their ceo already has a presence in silicon valley. we're starting to see their business development folks talk to smaller companies. they are both product builders like linkedin, sales force, and google, and product buyers. so they will definitely be a company on the move and more present in the u.s. >> thank you very joining us this morning. we're going to watch those stocks. appreciate it. >> thanks. let us get to rick santelli with the empire state survey results. rick? >> september number really jumped, strongest since october of '09. 27.54. so pretty much in line with

anything that's a survey. anything where we're polling individuals, the kevlar feeling of those who are doing well in the economy, i think transmits into some of these numbers. no matter how you slice it, best in close to five years. yields, a week ago friday after truly acting technically magnificent, we closed above a 245-year-old. here we are 14 basis points later. i think it's trading as good as any market i've seen with regard to interest rate movement. >> rick, my opinions have the half-life of like, i don't know, deterium or something. the reason i'm saying it is because i think gold is finally sort of normalizing. and oil is normalizing. and when we're just slowly taking away the punch bowl.

and some day it really will happen and therefore we're finally going to normalize on where interest rates should actually be. do you buy that? or you want to argue with me? >> i don't know that i'd buy it, joe. i don't know that i buy it. >> so we may go back to 2.3%? that would be bad. we don't have ammunition to jump start the economy this time. >> listen. if we had the exact type of programs we had in the '70s with rent control in new york and i ask you is this apartment fairly valued, what would your answer be? if the fed didn't have a balance sheet over $4 trillion and all the data was the same and the charts were the same, i'd say no doubt about it. most likely the next step should be spending time in the 280s. but i think you're also letting some of the fed speak creep into your cranium. the tightening, what fed fund futures say. the interpretation of fed fund

futures is just my modest opinion is wrong. it's completely wrong. the market can't devine information the way it used to. that's the reason we put credibility in fed fund futures. and they're also much better -- once a hitter is on a string of hits, okay? fed fund futures, once we turn the corner and start raising rates, it's good at predicting what the next meeting is going to be. but the market's been in a real slump when it comes to what would interest rates really do? i don't think the fed fund futures implies anymore. who knows. the fed could wake up one morning and decide we're going too slow, we're going too fast. there's no way to account for that. there's no way to quantify that. all things being equal, i would say the next step in rates is most likely going to spend time around 260 to 265. then it will take a step back

but it won't really spend a whole lot of time under 247 to 250. the next leg will be 282. i think it's going to be, you know, two steps up, one step back. but i don't think we're going to see a super charged up to 3%. >> okay. i don't know. can't figure out gold. can't figure out oil. >> you can't figure out the dollar because we're not trading dollars noim. there was an article about the best decade in a dollar. it's the worst run in the euro. 50% of the index is the currency. everyone knows there's a litany of weaken the currency. >> it just seems like everything means -- we're finally going to get out from under this five, six-year malaise from the financial crisis and these ridiculous crazy rates are going to go and normalize again. i don't know. we'll see. some day. >> some day.

>> all right. >> thanks, joe. we're just getting some numbers from apple announcing its preorders for the iphone 6 and iphone 6 plus. they say they received a record number of first-day preorders. they say demand exceeds the initial preorder supply. they say some of them are going to be delivered to customers beginning on friday and through september. but many of them are scheduled to be delivered in october. additional supply of iphone 6 and iphone 6 plus will be available to walk-in customers starting friday september 16th at 8:00 a.m. >> so you can't order a watch yet. >> no. >> i'm going to be one of the walk-ins. >> you didn't get the preorder? >> no. i think i'm going to get the plus. >> are you going to sleep in line? >> no. i'll wait a week or two.

>> you going to buy the watch? >> i don't know. >> if they haven't got you, then i'm worried. >> i like to monitor my sleep. so i wear the joawbone. but the iwatch you have to take it off at night. >> i can't do it yet. i can't. >> want to make it joke about the jawbone? >> i think it's all -- put it on the other wrist. it's all thrown off on that. i don't think it monitors anything. it's broken probably. up next, when you think pirates you think of cap pin phillips in the waters off somalia. now there's a new hot spot for piracy. it's in an area where more than a third of the world's ship traffic travels every day. details after the break. right now check out the futures. things have barically budged this morning. we'll see as we get closer to the opening bell. "squawk box" will be right back. they're custom made trains. you can't get any better than that. siemens trains are not your grandparent's technology.

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welcome back, everybody. one-third of the world's shipping passes through the singapore strait. it is one of the most trafficked waterways on earth. also happens to be one of the most dangerous ones. it's the new hot spot for pirates. we are joined on set with more on this. ted, this was the first i'd heard of this. >> what's interesting is everybody when they think about piracy or modern piracy, they

think about somalia. they think about what they've seen in "captain phillips" which opened a lot of people's eyes. but actually piracy there has almost been wiped out. only 13 attacks last year from a high in 2009. and it has exploded in the singapore strait and like the southern part of the south china sea. >> why? >> well, there's a couple good reasons why you do it there. one, it's the busiest commercial waterway on earth. by a long shot. a third of the world's global shipping go through those waters. all of the trade between europe and china. all of the persian gulf oil that goes to the big economies of asia go through this little area. which at some points is only a kilometer and a half wide. >> is this the same type of piracy we think of with somalia? >> no. that's a great question.

first of all, it's a different business model. somalia was about taking hostages and ransoms. highly profitable. you put guns in their faces, take them somewhere safe, then you hold them until the ransom comes along. well, that isn't what these guys are doing. what they're doing is actually closer to the old -- >> they take the stuff? >> 18th century model where you take everything. what these guys are doing is they're actually coming alongside, docking, sometimes spending hours, eight to ten hours overnight and they will actually siphon liquid cargo off of one vessel onto their own tanker. >> so they need tankers to do this. >> where are they getting the tankers from? >> that's another part of what's going on here. obviously they're heavily capitalized. that's the reason, everybody i talked to and i did more thon ts

story. everybody agrees there's organized crime here. also if you're going to take crude oil, you've got to sell it somewhere. >> you need a fence. >> you need a fence. part of the reason it's appealing to them to steal liquid cargo is because it's extremely hard to trace. especially if you mix it with another one. >> they hold the ship at gunpoint while they siphon it. >> yes. it's still traumatic for the guys on the front lines. >> on "breaking bad" they didn't know what happened when they stole that material. it's not like that. this they know they're being siphoned. that's crazy. they need a tanker, stop the ship, siphon it off, then they drive off with the oil and set it. >> and they need a buyer in advance. sometimes they need a refinery that will look the other way. and they need sometimes -- well,

they need intelligence. they have a client saying i'm lo looking for this particular type of diesel fuel. they need to find a particular port, when it will be leaving -- >> so they can tracking these guys the whole way along. >> they have inside intelligence. everybody i talk to agreed. this is local sources from the outside. >> when you say organized crime, where are they? >> probably malaysia. >> malaysian organized crime. they must have good organized crime. >> probably. >> what was used to stop the attacks in somalia and can those same sort of techniques be used here? >> it's interesting. the geography makes that difficult the reason that we manage to basically put the kibosh on the sew ma somalian pirates is we have a flotilla there that's helped out and they drench the area in ships. the ships out there are not in

this bottle neck setting. so the pirates were able to try to track down a ship, get it alone. think of it more as a street criminal. hits you when you're in a dark alley. that's what they would do. and enough cops on the street plus improved tactics being taught to the sailors on board almost eradicate it. the reason that hasn't worked yet in these waters is that you have a group of traditional maritime nations and it is exclusive to us the united states is about to join the coalition out there stopping it. they -- you can't tell when there's an attack happening because two vessels alongside one of other shifting cargoes is incredibly common. >> i don't know if there's too much relief, but is the profits

possibly going to terrorist organizations like isis? >> there are sources who say there's a very good chance. there are islamic separatist militants on sumatra. we also know -- we have the precedent of the somalian pirates were working with terrorists. they were funding al shabab or its equivalent in that area. so we know it has happened and it's a lot of money. you can get a take off one of these hits with two teams of seven guys each. plus the fencing operation. >> why don't the boats themselves have greater -- why aren't they manned with guns, manned with -- you always say -- >> you like guns in this case? >> in this case i might. >> that's good. >> i ask everybody that.

some people do believe that arming the vessels with private security firms, for example, would be a good idea. now, there are problems though. there are serious drawbacks. earlier this year or late last year we had a group of italian marines who were on board an italian tanker off the coast of india and allegedly opened up on a fishing boat and killed many who were not pirates. there are 55,000 merchant vehicles in the world. and the expense of arming or putting guys on that ship is not worth did -- >> one guy's not going to do it. >> and most of the time they're not killing the sailors. they let them go. if you insert guns into the equation, you could be talking about -- >> you escalate the situation. yes, that's different about somalia as well. no killings. at least, you know, knock on wood, so far. there is also -- we know as

documentation as we can get, we know that of the huge per siptous drop that took place in somalia, seven of the hijackings were stopped by armed security guys. but the mass majority were due to mass vigilance. >> by boats with armed people. >> who were able to get there quickly. and much better arms. >> good to have those when the pirates have arms. >> yes. and also we -- also if you think about it, it's a pretty boring job to be the guy with the automatic rifle on a merchant vessel that is probably going to have nothing happen to it in 20 years. the chances of any individual ship being attacked in the singapore strait is low. >> there are a lot of jobs. digging ditches is not boring. but sitting there with -- it

would not be that bad. take some dramamine and just sit there. and play on your iphone 6. >> we had two s.e.a.l.s die on the vessels that were taken. >> that's weird. >> thank you for bringing this story to us. ted kemp. you can see his article on cnbc.com/pirates. when we return, jim cramer on the week ahead on wall street. don't forget, in just two days peter thiel is going to be here. if you have a question for him, send them to us. tweet us @squawkcnbc or you can post a question in the comment thread on our facebook page. we got more "squawk" when we return.

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welcome back. futures this morning. markets setting themselves up for the morning. dow will open higher it looks like. this is good news. dow about 14.5 tonights higher. nasdaq higher. s&p 500 call it almost -- marginally lower but may turn around. making head loons this morning,

apple says it's received more than 4 million preorders for the new iphone and breaks a record. demand far exceeding supply and some customers wont receive the devices until next month. new york stock exchange. jim cramer, are you -- you're not in indianapolis. >> no, no. i should be. tonight a very big game and i have to tell you i think it's tough to go against luck with real receivers. that's all right. fantastic game. >> they're 0-1, too, aren't they? >> eagles won the first and colts no ed to win bad. >> they need. they do. >> yeah. >> that's -- you know, i just by talking about it, everybody wants to talk about roger goodell. i'm waiting for -- i've been waiting for the season to start and college, georgia, killed me. >> that was amazing. how about the bc game? >> unbelievable. >> amazing. >> the defense man handled. that was unbelievable, jim. i know. >> a head case game. bc saluting the family, that

stadium. a game to be at. we forget. could be the most exciting thing in the world. >> i love jesuits obviously. bc is a great school. i work with screaming eagles. almost as bad as the notre dame types and the sc types but with -- >> sc, too. >> they're crazy. the alumni. anyway, jim, it wasn't a great week last week. some day when the market acts like the other averages where they just realize i'm on this kick. some day the party really is over in terms of fed and i wonder if we're starting to see beginnings of that or whether the economy can take the baton and -- >> no. i was worried, too. i felt last week was about, okay, everybody sells stuff to buy alibaba but if you lose the fed or change the way the considerable -- the word's taken out, you have a market where there's some pockets of good but there's a lot of companies that

are just doing okay and i don't want to see the big high growth stocks sold to get alibaba because then the money won't come back. there's not a lot of money coming into. there's not the interest i would have expected given the averages. i'm with you. it's tepid. >> usually not a zero sum game and sometimes it is. >> that's what i think you and i are feeling. without new money coming in, amazon, listen to ann. saying certain stocks she doesn't like anymore. they go down today. it is like, wow. those are stocks to sell to buy aliba alibaba. i saw it last week. without new money coming in, if the fed gets tighter, i think you're going to see people say, you know what? i don't know. i don't know where i want to be. do i want to start buying in microsoft here? there's just i think an on week and alibaba is the focus an by way of that yahoo!. everything else is like, well, i don't know. see what happens in europe. see what happens in the middle

east. let's see what happens in japan and if when you have a lot of see what happens you don't have a lot of buyers. >> who are the three best teams? san francisco loses. seattle lost. >> seattle lost. geez, you know, boy. is richard sherman -- gates cost them. >> who's the three best teams now? >> i tell you, it's really. you know, look. >> green bay looked totally vulnerable. >> panted in the first half. >> new orleans? new orleans? >> can't play outside of the dome. very disappointing game. in the end, throwing it to graham every single time. i could figure out that game plan. >> the bengals? >> injuries now. i don't know where. >> eagles? >> all right, gjimbo. see you later. >> yeah. one of the most successful sitcoms of all time is popping back up in new york. see how you can grab a cup of coffee with your friends. we'll be right back. ng chimes

sfx: ambient park noise, crane engine, music begins. we asked people a question, how much money do you have in your pocket right now? i have $40, $53, $21, do you think the money in your pocket could make an impact on something as big as your retirement? not a chance. i don't think so. it's hard to imagine how something so small can help with something so big. but if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge sfx: crowd cheering might not seem so big after all. ♪

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pop-up replica of the neighborhood coffee shop is opening up in new york's soho district and serve free coffee from this wednesday through mid october. maybe we should all go. >> good name. central perk. >> join us tomorrow. "squawk on the street" begins right now. ♪ good monday morning. welcome to "squawk on the street." at the new york stock exchange, premarket is modestly positive as stocks did break that five-week winning streak. we're set for a blockbuster week. a fed meeting. a scottish referendum. an alibaba ipo. the launch of the iphone 6. we begin with the markets trying to reverse course from their first losing week in about two months with the fed meeting on tap this week. >> i'm going to have fresh and bubbling details on the