good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. we start this morning with some breaking news from the scandal plagued envelope. the minnesota vikings have reversed their decision to reinstate adrian peterson. now they have placed peterson on the exempt commissioner's list that means he will have to stay away from the nfl activities while he addresses child abuse charges. this could mean that peterson misses the rest of the season as the case goes through the court. this decision comes as more sponsors like budweiser are speaking out about how the nfl is handling these off field issues. coming up, we have a sponsor that says the culture of the league is broken. an exclusive interview with bob mcnair, coming up at 6:30 eastern time. right now, let's get to andrew.

activist investor nelson phelps is taking his -- to the next helpful. out now with news this morning that the founder has sent a letter to the company, to -- calling for -- or dupont, rather, dow chemical, dupont, calling for a break-up of the country. if this story sounds familiar, he's been working since back in july of last year that we first reported that he bought a big stake in the company. he says that this is an excessive holding company cost. he estimates $2 billion to $4 billion of excess corporate costs. he says the district businesses

are overwhelmingly complex. >> how big is his stake in the company again? >> 3%. >> he's probably the largest shareholder. >> for us, it would be a big stake. for you, it's like $2 billion or something, $1.8 billion. >> it would be a big stake. >> for me, not for you. but -- >> both, you know, dow, dupont, they've been -- it's too slow? >> they've been doing a lot of stuff. >> i didn't get it from anyone. i got it. >> you got a cold? >> i do. both kids -- i know, i know. dust mites. i don't know what caused it. kids get it. i have been busy moving and not getting enough sleep. that's when i get it. i think that's something key to think about. if you stay healthy and get enough sleep and -- >> unfortunately life gets in the way. >> it does. but in general, we see a lot of different pathogens and they're

unable to make -- you know, to colonize you. >> there aren't many people who can get eight hours of sleep. working out is a luxury. sfwh. >> and when you have a job like this, everybody in the world gets to decide if you're a slacker. your relatives all know if you were at work. >> that part is true. my family knows if i'm not on the air. >> my mom and my grandma every time. >> i knew you got back from your vacation. everybody knows was going on. i'm sick, i'm going to by looging. this show, something will drip out on to my tie.

>> yellow tie, i'm glad. >> with a little green on it. >> i was worried about you because i know i'm going to get blamed and you've got kids and everything and i'm going to get blamed. >> i got my flu shot this week. >> you did? >> yeah. >> you should be coming down with the flu any second then. >> if you haven't come in, you could have face timed us because our next story is about tech -- >> you face time me on weekends. >> i know. in tech news, the iphone reviews are in. some of the nation's respected tech corporates tried to devices now and they are sharing their thoughts. the common theme, bigger is better. many calling the iphone 6 the best iphone ever made. >> you would expect that. >> it's the six, which is after five, right?

wallsburg writes, inge it is a terrific phone. in my view, it's the best smartphone on the market when you combine its hardware, all-new operating system and the apple ecosystem whose doors it opens. geoffry fowler says iphone felt stuck in a bygone era called 2012 before the launch of the bigger phones. >> is it not 2012? what era is it? >> 2014. >> i'm still writing 2012 on my checks. how old is geoff? >> i wrote 2004 last week. >> you know what i forgot to tell you guys? i didn't even tell my wife. i got back to my seat when i was at the game and i got carded. >> you did not. >> i did. i got carded. >> i don't believe that. >> i swear on my life -- on my life. i got carded by someone. >> were you wearing sunglasses and -- >> no, no, no, no.

>> lined -- >> no, be careful. it was not a visually impaired person. >> what did they say? >> i need to see your i.d. i was like, oh, my god. i jumped across the -- >> i rarely get carded. >> this nice, wonderful girl doing her job making sure that underage tips -- >> a big tip, that's what she wanted. >> that's taking it seriously, where you make sure that -- >> everybody has to get carded. >> did you tip? >> listen to me, i got two beers and a bag of peanuts. they were large beers. >> now he's going to be upset about the cost. >> take a guess. >> $22. >> $35. >> you know what they're telling me from the control room? >> what? >> you got carded to see if you get the senior discount. >> yeah, yeah, ha.

not your driver's license, your aarp card, sir. microsoft -- those guys. losers. okay. microsoft is boosting its dividend 11%. it's great to find this stuff out as i'm reading it. it's $a 46 stock. that is the smallest increase in the payout since i believe 2009. >> how do you feel all of those stats? >> the software giant also, if i'm correct, appointed to new directors to replace board members who decided not to seek re-elections. kraft foods ceo -- i'm sorry, cfo, terry listoll and visa's ceo charles srharf will join the board next month. endo offering to buy auxillium pharmaceuticals for $28.10 a share in cash and

stock. that is about $2.2 billion. at least it's -- look at that. no official response from auxilium. auxilium said it would move its headquarters to lower taxed british columbia. something we didn't talk about yesterday, that was the auto parts division, that big deal larry started talking about at crw. and it was not an inversion. it was bought by a foreign company. >> that to me is the more concerning issue. you start making our assets more valuable than -- >> they don't want to talk about that part of the thing. they just want to talk about the nasty -- you know. >> how can we not talk about that? we should have talked about it yesterday. another story, credit suisse coming under scrutiny from the fed. "the wall street journal" reports regulators want the bank to immediately address problems relating to the firm's

underwriting of sale and interest loans. new york's attorney general is blasting barclay's once again. that suit alleges fraud and how barclay's ran a private trading platform. eric schneiderman calls barclay's argument misguided and disingenious. he anteriores the bank isn't helping global traders. and the fed will be setting up a two-day policy meeting today. the big focus is on the language, of course. policy decision is due at 2:00 eastern time and chair janet yellen will hold a news conference a half hour later. >> i saw the hitton -- >> yesterday he was saying that the fed, they would leave that in, but take out -- they would leave that in, considerable time, and leave in another

statement, as well. both of those add up to the markets thinking maybe the fed is not moving as quickly as we had anticipated. >> moving -- yesterday we talked to traders who said -- >> no, no, but i mean, looking around and kind of listening to that one guest we had yesterday that said look, there is not a done deal in terms of getting above false speed. there is considerable -- people think it does no harm, maybe we don't know if it does any good. >> he said look, the market takes in this idea that the market is going to remove that. that is why stocks have been down at the beginning of last week and the beginning of this week. >> it's three sets down, two up. all of them have been acting like the rates are going to go up. what happened to my read? i didn't talk that long. i really wanted to read that.

what was that one we're skipping now? >> you wanted to read the boards? we'll keep talking about this. everything you said kb oil moving up. >> they do think that we're in here and we're just like -- okay. >> you're a puppet because whatever they say comes out of your mouth. >> you guys handle it, you guys in there. >> there are no strings on me. another federally this week. investors will not raise rates for a considerable time. here on set with us is ed keyon. ed, i saw you nodding as joe was just talking about this. the idea that the fed will hang in there. >> if they're going to make a mistake, it's going to be that they've stayed a little too

easy, a little too long. wages are not rising. there's still a lot of slack depending on which measure you use. >> so a little more conscious and you think as a result the market gets bored by this? >> i think actually the economy is going to be a little stronger than the market expects. and so the fed might end up moving earlier than the consensus, which i think is around june or july. from my perspective, that means you still want to be overweight stocks in your portfolio. if you're going to get a stronger economy, you're going to get stronger earnings, and that's going to be the driver of the market from here in my view. >> is there something point when the market realizes the fed may have to -- >> there always is a knee jerk reaction with the fed. all of us talking about two or three pieces.

>> the bottom line is that the economy is getting better. the fed is going to have supportive monetary policy and that stocks, although they are not cheap any more, are not terribly expensive, either. so i think you'll see that as earnings grow, the economy grows, you'll get positive returns out of the stock market. >> john, how about you? what's your view? >> i think it was just ten days ago that we had a terrible employment report. i think investors are lost on that fact. so i think that janet yellen has done a very good job broadening the labor market discussion to include underutilization, underemployed. the plight of the long-term unemployed. i think that gives them a lot of leeway. i'm not necessarily considered on underutilization. i think they're going to disappoint those people that think it's going to be sooner rather than later. >> you expect they will keep that in, the underutilization of

the labor market? >> ed just refers to slack in the labor market. we have a lot of people who may have been engineers in one job working in retail now. it sounds as a job, but they're only making a third of the income they had made previously. that has an income statement and a conimpact to the economy, which is why, in my opinion, we're growing at 2%, 2.5% as opposed to 3.5% or 4%. >> so you agree that they're not going to change the statement necessarily today, but you don't agree with limb that the economy could pick up faster than expected? >> yeah. i think the labor issue is the biggest thing for the fed. i agree with that, that the economy is going to be stronger in the second half. we've seen that. but i do believe the bigger issue for the fed and for rates is wages. if we're only up 2.5%, but it

itit' it's -- you know, all that liquidity the fed created has to become income before the fed translates it to inflation. >> i think in many ways we do agree. i think there is a lot of underutilized resources overall in this economy. the poll and half the american people city think we're in recession. that's because they look out at their own lives, their own ability to get jobs and income and it's pretty weak. so i think there is still -- even though the markets have done very well, there's still a lot of people not making the kind of living they would like to make. >> what's the tipping point? what changes that? >> actually, again, i'm optimistic. i think the economy is going to make more progress. i think we will see wages start to decree this year and next year. eventually the fed will have to go back to a more normal monetary policy. but i think that's what sdoun road and i think the fed is, again, it's been pretty clear.

they're going to make the mistake of being a little bit too cautious about the labor market rather than being too reactive to potential inflation -- >> which frankly isn't there. >> but you said that the first time. then you said they're going to err on the side of not tightening, but then you said i think the economy is stronger and it's going to come earlier. >> that's right. >> saying ta there are misjudging the actual strength of the economy. >> i think actually that's right. i think the economy is going to be stronger and they're going to end up moving a little sooner than they might have thought. but again, they're not going to do that. they're not going to make that move unless the economy is stronger. i think that's the key point. >> they don't think there's any error, that might be their complacency error. they think it's okay. stay at zero and there are some people that think that's the way the fed has made maces in the past. >> that may be. but i think if you look around the world and you say what's the big economic problem the world faces, it's not ininflation.

>> but the hardest thing to do is the one that helps out the most. who can't stay easy? who thinks it's great to always stay at zero and -- that's the easiest thing to do. traders likes you, the market goes up. that's the easy thing to do. is that going to be if thing that results in -- >> it's the easy thing to do, but the fed has been taking withering criticism about being too easy. >> notice from the left they're not. >> overall, if you look at the guests they have on their show, most of them are arguing for an easier more taken policy? most of them are arguing for a tighter monetary policy. >> thank you for coming in today. it's good to talk to you. >> thank you. coming up, yale's management guru jeff sonnenfeld is going to be with us. plus, we'll see if he has advice for roger goodell as the nfl deals with a variety of scandals. the vikings this morning reversing their big decision now suspending star running back

adrian peterson. and the owner of the houston texans, bob mcnair, is going to join us to talk about the nfl culture which he think is break breaken. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm.

welcome back. there are mow more than 2300 billionaires in the world. their net worth? $723 billion. and the united states claims most of them. >> yale university holding a major ceo summit in d.c. this week, bringing together power players in both business .politics. key challenge facing the corner office, how can corporate america be heard against a broken and noisy washington back drop? here to tell us what he's hearing, jeff sonnenfeld associate dean from the yale school of management. he's a cnbc contributor. gis the top tom topic that we're going to be hearing about this week. >> thanks. the top topic is two clusters, if you want to split them off. one of them has to do with the sense of frustration that the

ceos have that they just don't think they're being heard in washington. to our surprise, they're feeling a little bit better about their business advocacy groups, the business round tables, chamber of commerce and the like, maybe 80% think that they're trying hard in their advocacy, but 90% feel they aren't being heard. they have made no progress on the key issues. you had randall stephenson from at&t and he had a very optimistic discussion with you guys and "squawk box" back in the spring about the priorities. he and others there are admitting it's not going to -- >> it's not going to happen? >> no. the three priorities they had and even in a year, on immigration reform, tax reform, and trade promotion. but they're very optimistic about the economy. the 30% split were disappointed. it was like the business round

table event yesterday. but pumped on sales. and you wonder, that's the bigger companies. you talk to the guys and said the smaller companies, you see they're euphoric about the economy and they hope not much happens across the street. there's less out of washington for the small and mid sized -- >> i want to switch topics on you. we're going to be talking to bob mcnair in just a moment about the nfl. i wanted to get your reviews. you guys spend a lot of time oftentimes doing panels about crisis and is companies in crisis and how you deal with the crisis. roger goodell arguably is in the midst of one at the nvm. what do you think he needs to do, if anything? >> you know, i have appreciated the -- i think open-minded discussions you've had on this. you haven't raced off for a hanging party and i think many of us like roger goodell a lot. he's done an excellent job. he's been there 32 years or so, grew up in the place. but, you know, this is perhaps his eighth year in office and i

think he was planning on a ten-year term, anyway. >> are you calling for his head? is that what you're doing? >> not what he said at all. >> work on their succession. i mean, you -- >> i mean, he has great relations with the team owners. he's helped players learn to discipline their own teams. he's done a lot, not to mention made this thing quite a money team. >> but i hear you talking succession. am i -- >> succession, there was an issue in -- you're right on the four points of what's going on wrong here is there should have been more of a diligent examination of this stuff, should have been a better call on how this was handled. also the confidence or we get the full story on how the state came in there. like you say, the crisis management, the explanation of all this. there's a loss of some credibility with some advertisers. but no, i don't think this guy should be shot at sunset. he's done a great job. as they start to accelerate the sesson plan that i think roger

had in mind, it would be a win-win. when mueller's report comes out, the fbi chief who is doing the investigation. but i wouldn't rush to condemn this guy. it wasn't his finest moment, but he's had a long career that's stellar elsewhere. >> jeff, he's a young guy. i don't remember rozelle or any of these other guys signing on for ten years. where did you get that ten years figure? i don't know of any commissioner -- >> it's my surmising just in -- you know, he's a different guy. he's a family guy. he has some young girls that are interested in other sports, even lacrosse. i think that he's interested in other things in his life. he's a young guy, but he started there earlier. none of those other guys made their whole careerhierarchy. that's the same thing in

football and baseball. the other guys game in after doing things. he's been in this. this is a wearing job, too. i've had discussions with him, private discussions that i knew he was on a time frame. he's maybe 50, 55 years old or so. so -- >> we want to thank you and we want to wish you luck with the conference today and, of course, we will get more from you a little bit later this morning. >> thanks. the big challenge now is the geopolitical ripple affects that has everybody worried. >> and we will come back to you on that as we continue that conversation. >> yeah. >> 55, that's like -- that's really middle age. people 55 still get carded for alcohol. is the nfl culture broken? and what would we mean by that? houston texas owner bob mcnair says yes. he's got some interesting statistics on arrests per team. and it's completely -- one can be twice as likely on one team

to get arrested as another and that says something about how they draft and how -- which players they pick. back with that in a moment. guys! you're not gonna believe this!

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good morning and welcome back. lennar posting better th better-than-expected earnings and revenues. a 23 fers increase in orders. adobe, the photoshopmaker's earnings beat the street. but the company warns that its

current quarter, revenue will be below analyst expectations and that has that stock down almost 5% this morning. rackspace has been facing competition from companies such as amazon and google. >> let's take a look at the markets this morning. yesterday, du see a broad rally with the dow up by 0.6%. the s&p and the nasdaq up by 0.75%. this morning, you see the futures are indicated slightly higher for both the dow and the s&p. the do i dow up by 19 points above fair value. the nasdaq down. the dax in germany up by 0.5%. overnight in asia, we saw the markets there were mixed. the hang seng was up 1%.

oil prices picked up broadly. the ten-year note, at least at this point it looks like it is yielding 2.571%. so just below that 2.6% that we saw a couple of days ago. if you've been watching the dollar this morning, it is down against the euro, trading at 1.2963. so the euro is still below 1.30. gold prices this morning look like they are up slightly, 1,238.40 an ounce. the nfl is working to recover from two off the field issues. anheuser-busch statement said we are not yet satisfied with the league's handling of behaviors that so clearly go against our own company culture and moral

code. our next guest, bob mcnair from houston, texas owner. he has a reputation of hiring only, in quotation marks, choir boys. he's the head of the chairman finance committee. the nfl's reputation is on the agenda. quickly on an thiezer bush with all the statistics that we have on this, by far and away, the biggest incidence is dwi and driving while intoxicated. anheuser-busch would never market to young people or cause any type of overdrinking or a cultural -- for drinking with football games. so they're in a very good position here to train the nfl. i want to see budweiser not advertise on the nfl, like that is ever going to happen. this is like a wya move. they have to say something, obviously, and they're a sponsor

and they need to weigh in. physician, heal thyself. >> for example, over a 15-year period, the viking 5%. twice as many vikings are likely to have a run in with the law. is it an nfl problem or is it who of the individual owners decide to staff their team with? >> first of all, it's a micro-casm of society. it's high life. >> why is that something that you need to say that people aren't understanding right now? >> well, our players are role models, no question about it, whether they want to be or not, they are. so they're in the spotlight. if they do something that's wrong, that's in the spotlight, too. we have to recognize that we're being held to a higher standard and we need to act to a higher

standard. >> in any other business, you don't immediately -- you say, wow, i wonder if something happens to smp? you don't immediately say, ghee, i wonder if it's because of the row -- let me ask you this, is basketball a lower or higher innocence than -- >> that i can't say. >> the nl leads the nba is up there. major league baseball and the nhl are a lot lower. >> we know there's no violence in the nhl. they would have no reason off the field or off the ice to hit anyone because there's never any hitting or violence on the -- >> i would argue that's a great

example of why -- if you're capable of doing it in one sport, you should be capable of doing it in another sport. >> these guys are in college all the time. >> they're coddled a little bit. they're widely admired by everyone. is it just that they've -- they get a big head as they go through college and make a lot of money in professional football? >> i think all the way through high school. and in college. even grade school you see they're protected. >> they're protected because thool they're local heros and everyone is trying to take care of them. there's always a second or third chance for them. and i think what we have to say is zero tall rant. >> should individual teams do that or should goodell do it? >> i think individual teams do

it, but it's a bad situation and use it for a good purpose. >> zero doll rans means if you can tell arrested, convicted or not, that is a strike. >> no, it depends upon the nature of it. and that becomes a complicated issue. >> it is a complicated issue. so you would want to have -- as you would with any of your employees, if the evidence is overwhelming, that you have even though they haven't been tried, if there's a woman who comes in and she has a black eye and bruises, that's why i would the pooter son situation. >> i think that's something that needs to be addressed. i think they need to back off a little bit and think about it.

but, you know, the whole thing is, this has been going on in society for a long time. >> the national organization of women wants the nfl to do something about domestic violence. >> you know, when i read that, we all want domestic violence to be dealt with and people to get help. >> we can't take care of someone else's house. >> what about hooe, we've seen the pictures, okay, so we know that the kid had welts and everything. so we don't need -- you know, he's guilty. we know he's guilty, right? >> but your point is that the court system -- >> everybody is entitled to -- >> but in the meantime, should he be playing? >> i understand. and that's the team anticipates prerogative to not allow him to play. but we do sort of cross over the idea in that in country, that is the way we do things. i see how south africa conducts their courts and i believe we

have a good court system here. >> as an example, we can take action with a player without the league taking action. but we're limited with the collective barg yapping agreement to only four games. >> what would you do differently? >> first of all, i don't think i have the tenacity to be roger goodell. roger is an outstanding -- >> and you're 100% behind goodell? >> absolutely. >> here is the -- i talked about the daily news. their absolute witch-hunt, maybe they're an armed mob with pitch forks and baseball bats.

>> roger is an outstanding executive, a man of integrity. he's courageous. and i ask you the question, if you were there and looking at the ray rice situation and you have part of the information, you don't have all the information that the district attorney has and ray rice comes in and he brings his wife to be with him and he gives you a story as to what happened and then it turns out the video is different than what they had been told, based on the information you had at that time, are you going to say i had less information than the district attorney, but i'm going to pass judgment here that -- >> bob, let me ask you, this is now a major problem because the players' union is suing because they want ray rice reinstated. they say this is double jeopardy and it presents a huge problem for the rest of the players. he has more information now. he didn't have that information if he kwifrt made that decision?

>> well, it woovsh image for him to have that because. >> the ka sane know said if he would have asked, they could have given it to them. >> now, we know something happened in there. when you see it and the visceral feeling of watching it on video makes a difference, but the facts were there all along. this i would also say, andrew. you can thank my later for this. but this is a post, not too big to fail. that's the name of your book. i would say that the nfl has a better chance of surviving than citigroup or aig or any of those -- can i finish, please? the idea that this is going to take the -- really? that's why with mcdonald's

-- don't they live in a bad house in terms of -- >> i don't think anybody true think thinks -- you're kwlad to use the title? >> very. i think there's a question of how do you change the culture so that you're not having these problems as routinely and -- >> and how do you change society so we're not having these problems consistently and -- >> but here is the difference. you keep saying that it's somehow -- that somehow this is a mirror image of society. >> maybe it might be a higher. -- >> is -- we talked about it. it's the money it's what happens. >> the question is, if you're running a league, what are you supposed to do about it? i have a lot of admiration for

roger goodell. this is about when you were running the league given you all these things, what do you do snch. >> i think you say we're not going to hole rate it, in the case of domestic violence as an example. if someone committed murder pb -- >> but the incidence is about half that of the population. >> there's a fact you didn't have. that surprises me. >> that is a good stat. >> i would have thought wrb given numbers that we've looked at -- >> you didn't chair to just -- making the point gen and govern.

>> i think what we can do is just say, this is something that we're not going to have happen. as a merit of policy with our team, there's been three things we say we won't draft a player if theerve involved in domestic violence, drug abuse or show lack of work. >> you want to do it on the team side. you want the team to control the issue more than necessarily the league. is there a question about the incentive that a team would have to keep a player on the field whereas the league might have a different view given that they're looking at the whole spp. >> yes. that is why the league would have to be involved so there would be consistency in what we do. but in the meantime, the as a club, this is what we can do and what we should do. but what the commissioner has done, he's brought in some people who can help in terms of investigations of domestic

violence, the ladies brought in, the panel over 300 cases a year, very experienced. we just need to let people know this is not acceptable behavior. >> i've had a lot of people come in, normal people, that we want to talk about the friprocedure. >> you know, that's a good example. here is a person who, on the field, is a warrior. off the field, he is the finest gentleman that you'll find. >> how far are you doing this year with those setbacks of last year? we don't talk about last year. it was a bad year from the beginning. >> areas before, you beat the bengals. >> i hate to bring that up for you, joe. >> that's all right. >> but who do you like, three top teams this year, in your view? >> houston. >> well, you know, we've got a long ways to go, but we're

moving in the right direction. i like our coach. but it's new england i think has always done well. the packers are good. go where the really good quarterbacks are, that's a good starting point. >> they're both from wisconsin, aren't they, j.j. and russell. >> north carolina is there for this year. >> we're thrilled to hear you're cancer free throw right now. thank so much. down think that you can ignore this. it woernlt go away. we have great peemp around and poem like you. >> thank you very much. when we come back this morning, apple goes plus size. another iconic brand is going in the opposition direction. ♪

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attention coffee lovers this morning, starbucks testing a mini. i'm excited about this, a 10 ounce drink, lower in price, and calories are less than the traditional version. test taking place in denver and houston, two great cities in america, joe, a trend of smaller treats catch on as millennials focus on healthier habits. crumbs had done a smaller cupcake, maybe they would be around. >> you are a person who can enjoy them. you're a thin -- >> love them. >> you're a thin person. >> coming up, countdown to the alibaba ipo.

americans are not familiar with the company, but a criticism is that it's full of counterfeit goods. never guess what we found for sale on the site. give you the answer when we come back. this is a burrito made with

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to help transform their industries. today there's a new way to work. and it's made with ibm. ali ba ba on track to be the largest ipo in history, but many americans are to the familiar with the online retail giant. we have more on the legitimate

and counterfit goods for sale. >> a big player in e-commerce, but brands complain it's a tighten for the counterfeit trade. we looked into it, and what better way? >> we found a shanghai vender offering up cnbc stickerings, bookmarks, and mag innocents to deliver in a couple days. i'll order some stickers from the shanghai vendor and see what happens. >> reporter: days later, my orders arrives. oh, my official cnbc stickers. not so official as it turns out. cnbc does not authorize the production and sale of these types of stickers in china. we decided to call the vendor, mr. shun. shun told me he makes the stickers in his own factory

after copying the cnbc design from a special data base off the internet. i asked if he had legal authorization to use the logo? >> translator: we are not authorized. there are few people authorized unless they have special franchise stores. >> reporter: i asked if al alibaba told him to stop. >> translator: no, no, if they wanted to us stop, they let us know. >> reporter: alibaba refused to comment, but they are taking down counterfeits making it easier for brands to report infringements. i spoke to a lot of lawyers about this, and alibaba is not doing enough and policies far behind ebays. this is a question for the companiment as it lists in new york and starts to join the big leagues, there's a big question whether or not investors pressure them to clean up the site and really if they do that, what does that mean for the

sales? i have to say it is very easy to find fakes. in fact, andrew, your book is on the site, and we spoke to the vendor saying that it's going for 50 cents after he bought it on the kindle. >> so proud. >> jim cramer's book is on the site, ripped off, and, yeah, it's going for a dollar. >> his is going for a dollar. well, now my feelings are hurt. thank you for joining us. appreciate that story. >> all right. when we come back this morning, we do have a special "squawk box" event, twoours with power players peter thiel. bet big on facebook, now an author and he's the guest host from alibaba, apple, and beyond. it's all coming up here on "squawk." new car smell and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one.

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this is a special presentation of "squawk box." one of silicon valley's newest icons and rebels is here live. >> peter thiel, cofounded paypal, brains behind the internet security giant, and man who bet big on mark zuckerberg and facebook before anyone else. a move so shrewd, he got hollywood fame. >> we looked at everything, congratulations, we'll start you off with a $500,000 investment. >> the second hour of "squawk box" starts right now. good morning, welcome to "squawk box" on cnbc.

our special guest, peter thiel, member of the forbes mightyist list, on the cover of "fortune" magazine, a big time author. his book "zero to one." so much to talk about over the next two hours of the alibaba ipo, facebook, apple leadership, all kinds of stuff, apple and leadership and why he's not a fan of the term "disrupters," all that coming up. this is -- you get carded all the time, i'm sure, still, don't you? >> i was carded the other day. which has not happened in a while. >> at least as often as you do. >> yeah, all right. if you ever choose to order a drink. >> peter, you're 46 years old? >> yeah. looks 21. >> he does look young. >> let's start with the markets this morning. following the best day for u.s. stocks in a month ahead of the fed policy statement, futures are mixed.

dow and s&p futures indicated higher with the dow up 17 points, nasdaq down by two and a third points. ten-year treasury yields below 2.6%, and the fed policy statement issued at 2:00 p.m. eastern time followed by a news conference with janet yellen a half hour later. china looks to be a market mover. media reports says the country's central bank is injecting more than $81 billion in liquidity into china's top banks saying it's a sign policymakers are stepping up efforts to shore up the economy. >> dupont needs to break itself of management, 3% owned of dupont sent a letter to the board saying the current corporate structure is destroying the value. they say -- can i say it with sarcasm? they welcome open communication with the chair holders and vams input towards enhancing shareholder value.

>> wow, after three and a half years, you did it. >> what? >> you did sarcasm, nice. >> lthere was a little. sony forecasting a much larger than expected loss. it is announcing that it won't pay a dividend for the first time since it listed 1958. general mill shares hit hard in early african-americanings. the company says u.s. market conditions are more challenging than have been expected. >> alibaba on track to be the biggest ipo this week and may have missed a chance to get in on the action. we have more. >> in order to pull off what's going to shape up to be the single biggest equity race in the history of man kind, one of the biggest groups of banks and brokages formed, the underwriters, and they are called the syndicate. at the high end of the pricing

estimate, $68 a share, could race $22 billion. there's no single bank or small group of banks to handle that size and weight of a transaction. let's start with the biggest guys here. the six so-called lead underwriters, ones primarily responsible for raising the bulk of the mun that alibaba gets. you have credit swiss, morgan zanly, citi group, deutsche, jp morgan, a global list representing the global nature of the ipo. raising $22 billion, not an easy task. you need a lot more contacts to raise that kind of money. that's where all of these other guys are going to come into play. they retained to help further distribute the deal and take on the financial risk of financing the ipo. they are comanagers. think hsbc or maybe a steeple financial here. rbc in canada.

if you wanted any shot of getting in on this ipo at the offer price, you'd have -- you'd have to be at the tiptop of customers with any of the guys, and even then chances of getting any allocation close to what you want is tough. bottom line is the biggest ipo in history needs one of the biggest groups of underwriting banks to finance transactions and even then, you don't get shares you wanted, guys. back to you. >> thank you, turning our attention to the guest host for the next two hours. a lot to talk about. as we mentioned, cofounder of paypal, early investor today in facebook and author of a new book "zero to one," notes on startups, on -- or how to build the future, and, peter, we're going to talk about the book a lot over two hours, but we want the news that's out this this morning, specifically alibaba this week. you're an investor. have you invested in alibaba? >> well, it's quite hard to

invest in a private chinese internet company. >> did you want to? >> we didn't look at it that much. we probably should have looked more, but china is off limits for u.s. investors. you know, even yahoo! had a mixed experience where the ali paid subsidiary was -- >> given concerns, what's your view of the ipo? >> it probably -- it probably will do fine. certainly, the contraryian instinct i have is there's something odd about an ipo where people say it's underpriced, underpriced, underpriced, probably, but it's strange how that's the absolute drum beat you hear nonstop. >> flip it around, a year and a half ago now, longer -- >> two years ago. >> two years ago now, facebook had a public offering, all the hype for lack of a better word around it, and some people argued it did not work as well

as it should. today, looks like a great deal to some extent, but for a year, it was a lot of pain. should people buy at the ipo for these types of deals? >> well, it's mostly institutional investors who are able to get the allocations because ipo -- >> you mean after it opens? >> yeah, not at the ipo price? >> yes, i apologize, after it opens. >> i think after it opens, it's just like any other public stock. >> can go down. >> the super big companies are probably like any big stock, maybe more volatile initially, but i think it's just like buying any stock in the stock market. >> you see alibaba, opening an off in silicon valley. do you see them coming here and being a meaningful component of the valley and of the u.s. market? >> certainly we're starting to see a lot of -- of the large chinese companies investing in silicon valley startup, so there

is this sense that china will try to be competing more aggressively with a lot of the u.s. companies in the years and decades ahead. >> peter, you know, one thing we hear without is you really need to invest in people and management, and you made a comment, you know, alibaba, the 40 thieve, and jack ma, i mean, is he someone that you would normally think maybe he's -- has he changed his stripes in terms of the ali pay move? will -- since it's now going to be subject to global regulations, is it -- can it not happen again? can happen in china, but not again? is that a character flaw he was that ruthless about taking that without authority? would that keep you from investing in alibaba? >> it would keep me from investing. might not be, you know, i would miss out on it certainly. feels like i would have missed out on it in this case. >> that was a move that definitely makes you raise your

eyebrows. >> makes one raise eyebrows. >> with all the chinese internet companies, china thinks of the interpret differently from the way the u.s. does. thinks of computers and i.t. as less important than we do, but more importantly, politically. these companies are fundamentally political play, and alibaba goes up as long as he's in the good graces of the communism party, and if he falls out, goes to 0. >> margins, enaable enabled by being a backing of mo notary public liz tick powers. >> >> sure, sure. it is a state sanctioned monopoly. they don't want too many different companies in the it sector because they want to control the situation. even e-commerce. >> do you care the company effectively has the equivalent of a dual class? i mean, in some regards?

facebook has a dual class. you've been a proponent in certain instances. are you a proponent of dual class always means let the founders have control of the company? >> i do think there's something to be said for founders able to drive these companies for a long time. it's not clear you absolutely need a dual class structure. there's not many down sooids. google has it, facebook has it. >> it works until it doesn't, right? when it doesn't, you have a problem as a shareholder. >> sure, but you have a benefit as long as it works. >> multigenerational. after the founder passed the shares on. >> it's a big challenge once someone passes on. if the shares are transferred, they stop being multiclass. that's a way to fix it. the way the to be structure's set up, if the shares are sold to somebody else, they become the class b shares. >> one of the big alibaba plays over the past year is yahoo! to the extent you want expo slur to

china and alibaba, it's yahoo!. what do you think of melissa mooir? >> doing the best job of any ceo they ever had at yahoo! and, certainly, the best of the last few they had gone through. it's a fairly challenging job at yahoo! because it is, in some ways, it is an old media company. it's -- it's an old media space competing closely with new media. if you're in old media, you want to be in really, really old media like radio or billboards or something like that. if you're sort of the old internet like aol or yahoo! is the place to be. >> backing out the value of alibaba, what's left? will we see a renaissance or reinsurgence of yahoo! or say, oh, goodness, there's nothing here anymore? >> well, i believe if you back out alibaba, the rest is close to zero, slightly less or more,

depending which day you look at it. it's not the case that yahoo! is over valued at this point. >> can she fix it, though and make it worth something? >> should be worth more, and she's doing a good job, but it's hard to radically reinvent the business and she's up against all the tough competition. >> you spent a lot of time with iconic founders, you are an i n iconic founder. we talk about apple, the new iphone, what do you think of tim cook, the new watch, the new phones? >> well, tim cook has thee hardest -- one of the hardest jobs in the u.s. since he has these impossibly large shoes 20 fill from steve jobs. i think he's done a really good job as apple's ceo. the basic challenge you have at a place like apple is that if you have a 150 billion a year coming from phone revenues, it's really hard to have other product lines that even come close to moving the dial. a million dollars a year, a billion dollars a year does not

move the dial at apple. i think, you know, payments, watches, these are all probably too small to move the dial as far as apple goes. ? it's not the next ipad. >> even that was not enough to move the dial. >> but do you see the watch as a major sea change in the industry? >> it's probably not enough. maybe if they reinvented television sets, which was -- a thing they talked about for a long time, that might be a vertical. >> if you had a dollar to invest in google or am, you put it where? >> that's a tough call. i'd probably still go with google. the risks with apple are that at some point the -- they lose the pricing power on phones, risk of google is the e.u. antitrust stuff. those are the basic risks, but there's probably more upside with google than apple over the next decade. >> you think the e.u. trust situation impacts google in.

>> they don't seem to get it resolved. i think it's silicon valley which is oblivious to how it builds up. there's been little scrutiny from the u.s. on silicon valg lee, and the e.u. is hostile in part because european countries have not been able to compete on the i.t. sector so they run to the regulators to shut down u.s. businesses. >> is there a fix for that, or is that something they'll have to have loads of people go back and comply with the law? >> well, there are fixes for it, and questions are whether they are small technical fixes or major product changes. that's what's in debate. >> you big "lord of the rings" fan, i guess? >> i am. >> before the movies, before -- >> even before the movies. >> me too, in high school. the armor used. >> the armor of the elves.

>> yes. >> you have to be a big fan to name your two biggest companies after it. >> the eye? whatever it is. >> mary looked at it, and he stole it from gandolph. >> yeah, the seeing stones. >> see into the soul which no one should see that, i don't think. >> taken over by the bad guys when you get to the book, but the prehistory was very different, but, yes. >> if i start companies, i'll name them after characters in "too big to fail," you know what i mean? i don't know, a paulson or something or bernan nanke. we'll talk about the nsa and other issues. >> do you have time to read anything for fun when you were building your resume in grade school? >> no, i was just trying to climb the ladder. >> hanging out at the new york times. >> climbing the corporate

ladder. >> seen the movies, anything? >> climbing over people. >> basically. >> on their shoulders. >> i know, still trying to do that. >> starting with you. >> yeah, i know, it's happening. all slumped over. >> we're just getting started and why monopolies are a good thing, who gets it right and wrong. that's coming up. first, though, unveil for nike, the lebron 12, is it a game changer and a wallet buster? how much for a fleet of phantom? someone placed the biggest orders in rolls royce history. that's coming up ahead on "squawk box." financial noise financial noise financial noise

>> alternatives, also scaling back planned investments in several u.s. plants. lebron up vailing the newest shoe this week, first new nike product since returning to the sal call ofs. retailing for $200, and brought in $300 million last year, only a small fraction of the company's $28 billion in sales, biggest apparel company in the world, and held of a name, peter, which we talked about, how important it is to have a good name. you like nike? >> it's -- well, it's a

fantastic brand. >> become good over time. nike, nike, nike. >> a greek goddess. >> mythology, all these things work. there's a rule where the names you start companies with set the tone for the whole thing. facebook was a better name than my space. that sounded narcissistic, l.a. like, and facebook, more reading, and my space about writing, and reading dominated writing, or a bad name would have been napster, the music site. what do you nap? music? a kid? >> where are you between dr investor between uber and lyft? >> i'm bias. i'm an investor in lyft. i feel uber has -- i feel there's a negative ring because it sort of means you're above everybody, above the law, and --

>> and daring authority. >> lyft is uplifting everybody and catching a lift. >> yeah. >> it's a close call between the two. >> tell you about another story, hong kong real estate entrepreneur wants wealthy gamblers to travel in style placing an order for 30 rolls royce phantoms, largest order in the company's history. hung will use the cars for the hotel set to open in 2016. when we return, another giant leap for man's space flight. landing a million billion dollar deal. does this get the u.s. space program on track? that's next here on "squawk box." alibaba founder is the richest man in china. what is his net worth? the answer when cnbc's "squawk box" continues. and a gentle wavelike motion...

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now the answer to today's trivia question. alibaba founder is the richest man in china. what is his net worth? the the answer? he's worth an estimated $22

billion through his 7 preponderate 3% stake in the business. welcome back. boeing and musk spacex winning contracts. they will fly astronauts to the international space station and let the u.s. end dpenependence russia. boeing and spacex should be ready for services in 2017. remember yesterday, we talk about how jeff besos company was trying to get in option the action as well. up next, peter tells us why monopolies are a good thing and why he believes hypercompetitive businesses are for losers. we'll talk about that when we return in a moment. our best-ever pricing on mobile plans for business. run the numbers on that. well, unlimited talk and text, and ten gigs of data for the five of you would be... one-seventy-five a month. good calculating kyle. good job kyle. you just made partner. our best-ever pricing on mobile share value plans for business.

now with a $100 bill credit for every business line you add. what if we finally had that would be amazing. hey, what if we took down this wall? what if this was my art studio? what if we were pre-approved? shut up! from finding to financing, how'd you do that? llow.

> welcome back to "squawk box," everybody, among the stories front and center, fedex in connection withes shipping rates as of january 5. they'll post results any minute now. the nation's top military general says he cannot rule out a ground war for fighting isis

in iraq, but president obama says there's not a combat migsz. that will be continuing. the minnesota vikings reversing course on the decision to reinstate the running back. has to avoid the team and all activities while he addresses child abuse charges in texas. look at this texas. what is that? auxillium. >> thanks for listening to me when i told you six times. we're like a married couple. >> offering to buy the the company for $28 a share, about 2.2 billion. in june, they'll buy an ie drug maker, qlt and move to the lower tax quarters in british columbia. they have no plans to alter on abandon the qlt deal.

searching for the next big thing. the entrepreneur says there's new frontiers to explore and the next mark zuckerberg will not build another social network. the next great business nobody is billing. what he calls the paypal mafia and monopolies are a good thing. >> thanks for having me. >> how did you write a book? >> i started a class in stanford summarizing everything i learned about startups. one of the students, blake masters, took notes, posted them on the interpret. they went viral, hundreds of thousands of people read the notes, and as crazy as it seems, best follow-up thing, turn it into a book distilling everything. that's what we did over the last year. >> some of the theories that have people jumping around catching headlines. the idea that monopolies are a good thing, but not in the common sense of what we think

of. >> not, like in the parker brothers board game where you're a tax and toll collector, but i think that every time you have an innovative tech campaign that does something no one has done before, it will be in a unique place, a product nobody else has. when apple built the first smart phone that worked, they had a monopoly of sorts on the iphone. that's a good one, does not create scarcity, but forms of plenty. in some ways, they are protected by the government with patent laws, intellectual property law, and that's the kinds of thing that at the best these companies are doing. >> tough to stay a monopoly, though. >> tough to stay one. that's the kboel you want when you start businesses, do something so good that there's no competition. you don't want to go in the restaurant business -- that's super competitive, not

capitalist. >> a fren of yours quoted in the piece and says he's right, try to do something nobody's competing with, but wrong if there's a good idea, other people do it, and then what, give up? no, you compete. it he wrong when he comes back with that? >> that's true, although -- although if it's a good enough idea, you can get ahead of other people. you can -- something like google, you have the page rank search algorithm better than all other search engines in the late 90s, and by the time people figured out what to do, say microsoft with bing like that, they locked up the market. i do think that's the kind of dynamic you want. if it's an idea easily copied that people can immediately copy it and come after you and you have the third on line pet food

company and there's a fourth online pet food company, that's not as good. ideas that are easily copied, think twice before starting. >> if you have a hand puppet, it does not matter, you're going -- are they out of business? >> oh, yeah, pets.com. >> a while back. >> oh, i don't forget. fedex, you know, get my news edge up, but the 210 number is above $1.96, because of strong performance at fedexground. outlook for the year, even though they don't give a lot of forecast, 850 to $9. reaffirming that means they affirmed once already. i don't know they have. means they're affirming -- >> got what the street's expecting. >> $8.50 to $9. the stock now, as you can see, up $3 on that big beat of 2.10

versus $1.96. sorry, peter. >> fedex is a good mo nope my that placed the bad one, which is the post office. there's a point where they are bad, and it's in a stat tick world with no innovation, monopolies are bad. >> looking at ups, though. >> you said you don't mean like -- i think he did mean ma notary public my that you're talking about. >> you did mean that, did you not? >> if you're that good. the government takes you down. >> they do, but people say that, you know -- >> there's always these rules you're not allowed to use the power to crush other companies -- >> like that's not done. >> places where people run into trouble, but in some ways, that's -- in a way, that's the problem you want to have. you want to -- if you have a problems microsoft had in the 90s, you'd rather not have it.

rather be microsoft than, you know, whatever. >> jeff a monopoly yet? >> he's an interesting one since it's not making money. definitely has all the attributes of the monopoly business. >> "squawk box" a mo notary public my for morning business shows? >> define the market. there's a question how the market is defined. >> just say, yes. that was not a serious -- very close, although we don't want government -- >> it has pricing power, somewhere in between. >> okay. that's all we'll get. >> stay on the ball every day, though. >> uh-oh, that might be a problem. >> can't rest on your laurels and we don't. >> good. coming up from hammers to power tools, the ceo of stanley, black and decker, see, i don't know, stanley, black and decker, that's what you come up with, stanley, black, and decker, is that enough? >> not enough. >> set to join us. >> monopoly power too. >> yeah, company's stock up

close to 15% this year. what's his read on the economy? housing? jobs? that after the break. speaking of tools, andrew will bring us more on the fedex results. >> oh, that's mean. >> what? >> 2.10 the share was well above. >> speaking of tools -- >> did i say that? >> that was in the teleprompter. >> speak for yourself. >> we'll be right back. [ male announcer ] automotive innovation starts...

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stanley, black and decker a global tie tran in industrial tools and household hardware space, stock up 16 % in six months, and within striking distance of another al time high, joining us now the ceo, and senior associate dean for executive programings yale school and management joining us as well. john, you know, other than management, what do you attribute to the stock being at new highs to? >> i think a good portfolio. we were blessed with three strong businesses in three segments that ride various economic cycles, and the beauty

is when one is not working, others are. struggled last year, both our consumer and diy segment, consumer construction business, construction tools business, and our industrial segment performed well. simply said, earnings are up, not surprisingly, stocks performing well. >> jeff, i gave john a softball pitch about is it management? he's too modest to talk about it. you wrote books on leadership, jeff. does john fit into the mold. >> absolutely does. the stanley black and decker story is per felgt example of that. wherever you are, there's a statue in the town square, sure it's not a statue to a meet, task force, but a bold individual. john would hate me for saying this, but his predecessor did

not have the same reputation he did. weaved together the tapest ris, and it's all operates all over the world, and he's soaring. it's a reminder we're caught up talking about the new, new thing, but investing in old things can do a tremendous transformation, and that's -- people talk about the creative destruction, you know, that the essence of capitalism is its own demise, almost marx-like, and that's not the story. take a look the global foot prints and cults edge technology. >> how much -- >> and in the interpret of things. >> how much is your wife really running behind the scenes running this place? and her company? >> well, you know us both. she's a busy lady, proud of her

and her accomplishments. in addition to running her publicly traded company, which is a fortune 1,000 company over a hundred years old, sitting on boards and the san francisco fed, acting currently chairman of the u.s. chamber, i get a lot of good advice. i'll say that, and i listen to all of it. >> you're coasting. you can. one of the -- i wonder if home depot's outstanding results recently, you know, notwithstanding the hacking incident, but their same store sales, revenue indicated something about that sector of the market place. has stanley black and decker been doing better than a lot of other areas of the economy you think? >> yeah, we don't talk specifically about customers, but i'm sure home depot would not have a problem with me

saying we're gaining share in the market and gaining share at home depot. that's going to be seamless transition of management at home depot, and our strength is our brands. we have the leading brands in the world and our new dewalt power tools perform extremely well at home depot as the legacy stanley hand tools and black and decker products. we've performed well with the large domestic big box customers in general, and with home depot in particular. >> how much is international of stanley, black, and decker? >> yeah. jeff was a limit high. 53 % of our business is outside the u.s. about half of that is in europe. the rest spread across latin america, emerging markets which currency issues in latin america and gdp in emerging markets about half what it was a year ago is having an impact.

not growing as fast as nay were in the past. europe's flat, maybe up 1% on a good day in terms of gdp. we've gained a lot of share in europe, primarily new product driven. again, power tools and home products as well. >> hey, john -- >> we gained share in the u.s. and europe. >> i hate to lose you to a german competitor. how much taxes you pay last year, what personality, and how much money you got left out of the country? >> well, the overwhelming majority of the cash flow, our projection this year is $675-plus million of cash flow, would be a billion charges or one-time payment, and in a normal year, 70 to 80% of our cash is outside the country. our tax rate is in the 20 to 23% range. you know, and the issue with the inversions that we talked about

at jeff's provocative conference yesterday, it's not so much -- it's as much as access to the foreign cash -- the ability to bring it back to the u.s., to build factories, to create jobs, to pay dividends or buy back share, all benefitting the economy. >> john -- >> much of the -- it's due to the excess of cash more than lowering the tax rate. we are domiciled in the u.s. and intend to stay there. >> journ, in favor of another one year tax holiday for repatriating money? >> yeah, i think that's one -- didn't work as well as intended the last time. far more in favor of massive tax overhaul or tax reform including a territorial system that one that got our rates in line with the large global competitors and give us access to cash. that's a stopgap measure like

extending xm bank, helpful, but not the solution. extending highway funding. extensions are better than nothing, but i'm looking for something a little longer term. >> all right, thank you, appreciate it. see you again. peter, i just -- i just have to warn you, you know, with your question sounded like you were for that. when andrew found out he gave money to romney, it was watching someone so crest fallen -- >> that is so not true. >> that a tech person was conservative. i'm worried you might be in favor of corporate tax reform. if you are, don't tell him while we're here. >> i won't tell him. we have the high eest tax ratesn the world. >> tell him. >> thank you for misremitting my views. >> you're both right. both right. we have super high corporate tax rates that do not pay, and -- >> not a lot. >> that's an insane system.

>> why we're ying and yang. >> hurts sill conference valley because new companies pay the taxes. it's the old companies grandfathered in with the complicated rulings. new companies do not get grandfathered in. you effectively have -- >> you're so young. how -- i got the same question. >> he founded the stanford review. >> what are you talking about? >> conservative. >> i want lower taxes too, my friend. i do. >> fewer loopholes. >> i don't know about zero. >> we'll see. >> zero loopholes is the key. a trefrs with uber, lyft launches in l.a. peter thiel talks about the investment and the dispute after the break. and do you remember this ad? this is your brain on drugs? guess what, it's coming back, but not as an ad against drug

use. we'll explain after the break.

welcome back, everybody. the nation's largest pot advocacy group launching a new ad campaign in colorado aimed at promoting moderation and safe consumption of marijuana. to get the point across, skewing old ads like this, you remember this. this is your brain on drugs commercial from the 1980s. the idea is to caution consumers about the potential of getting sick from accidently eating too much pot. the group says the campaign is a

response to the marijuana education efforts which depict pot smokers as stoners. >> i have a little problem with this. i have friends that have tried pot in the past, and pot has gotten to the point now -- >> it's hype. >> there's no such thing -- you take one p hit of good pot, and there's -- what is that? moderation with pot? what's that mean? >> they are putting it in candy. >> i see what they are saying, but the notion that you can have two drink equivalent of marijuana, two glasses of wine or something, that's not -- it's just not the case. it isn't the case. one is multiple drinks. i can give you the names of the people who confirm this for me. >> as a libertarian, i'm in favor of legalization, but as someone -- i'm depressed by the fact we're doing it. i think it's symptomatic of a stagnant society. it's like prohibition ending in

the 30s, nothing better than people to do than to get drunk in the 30s, and now there's nothing better than to get high today. >> that's interesting. >> we legalize drugs when the economy is bad, and when it's good, like in the 80s, you got reagan's war on drugs. you might as well work, so much work to do, you can't get high. >> you don't want high schools 90% stoned while they learn, do you? >> or after high school, absolutely not. >> i watch -- >> i thought you were going to say hbo on pot, on stone? what did you say? >> think they get the best ideas or best ideas. that's ambiguity. >> and twinkies do not taste that good, and moody blues and pink floyd is not different. >> let's continue the conversation with peter, making the business finding and investing in the technology of

tomorrow. peter, you're an invester in lyft. side car made headlines. when you think about what's going on in the space, 1 it possible -- uber has the advantage, they got there first. shot on goal here for lyft, multiple players or a monopoly issue? >> ends up being a question exactly how the markets shape out, and lyft's pitch will be that it's going to be better for the drivers. they will treat employees bet e and their theory is that the competition comes around attracting drivers in the long run. that's the key factor. >> what do you make about the headlines that the ceo and what uber apparently has done, doing competitively, put that in quotes, apparently trying to go into the car, you know, booking rides and cancelling rides, booking rides, trying to get the

driver -- getting in the back of the car and pitching drivers to come to uber. is that fair, unfair? >> i'm extremely bias, but i think lyft -- uber is the most ethically challenged company at this point. >> ethically challenged? >> there are -- there's -- >> do you have an opportunity to invest in uber? >> we did not. >> did you have a chance? >> we did not look at it. >> because? >> we missed the boat early on and valuation got too high for our liking. i think it -- i think there's a question how intensely you're allowed to feet, and uber's probably right at the line. i'm not saying they'll get in trouble for it. it's -- there's a good chance they get away with it. i think they are pushing it right at the line. >> right. we have the ceo of lyft on "squawk ali" liert. bitcoin, we have to spend a

minute on. i was a nonbeliever, went to silicon valley, talked to a number of your friends and became a little more of a believer. where are you? >> i'm slightly skeptical. i think that it's -- it's the on skit of paypal. paypal was a payment system, but we could never create a new currency, which is in our fantastic founding vision. bitcoin, it's a new currency. you can't use it to make any payments. at least any legal payments. and so i'd like to see more payment activity to make sure it's not a bubble and something real. >> okay. hopefully we'll talk more about payments and apple payments and what you think about that and apple watch, which you sound like mcneil y, fashion. incremental and not quantum yet. >> if it is, it's a small markets. the fashion stuff, i agree. >> ugly fashion.

>> hard to do. >> looks like one of the old casio digital things. >> there are collectives these days. >> i can't evaluate fashion. >> when we come back, talk more about what peter thinks of edward snowden, net neutrality, cyber security, talking bitcoin too. miss it last night. the baltimore wrapped up the al east with a win over the blue jays, first division title in 17 years. and "squawk box" will be right back. whenwork with equity experts who work with regional experts that's when expertise happens. mfs. because there is no expertise without collaboration.

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mfs. because there is no expertise without collaboration. here's a tech rebel and icon. >> silicon valley is fairly o believe yous how it's building up. >> peter thiel our guest host from cyber security to the next business. covering it all this hour. >> hiking rates and reports results, what a large shipper says about the state of the economy. >> and it's down to the wire. ♪ what scotland's vote means for the global markets as the third hour of "squawk box" begins right now.

♪ welcome back to "squawk box" on cnbc. i'm joe with andrew, and check out this video. implosions are a fan favorite of viewers. this week was part of the kentucky bridge that was tumbling down. demolition crews imploded a 400 foot section as yo can see. the bridge that spans the tennessee river. wow, that's a different angle. they should have had a michael bay movie, a script to incorporate that in. >> i think they should call hollywood before they do this to be used. i agree a hundred personality. question is you how far had to write a swipt for this moment. >> i've seen this happen in one of arnold's movies. that one.

>> maybe get your money back, hollywood pays for it that way. >> or indiana jones running along a sanction. you can't do that anymore, he's about 70, but you could be. the headlines this morning, a number of things to talk about. mortgage applications soaring at 8 % in the latest week driven by refinancing despite a rise in rates, microsoft boost eed 11%, the smallest increase in the payout since 2009. the giant points to new directors to replace board members who did not seek re-election. shares of dupont get a boost. the company needs to break itself up. he's arguing that current corporate structure is destroying shareholder value lieu. they say it welcomes open communication with its shareholders. yeah right. owning roughly 3 % stake, talked

for over a year. spoke to us a year ago, and give him -- the last offering at the conference, said he would give a little more time, and they have run out. >> they have made moves. dupont made moves to sell off businesses. >> we wants the whole thing broken up across the board. thinks there's a discount applied to the company and that there's so much overhead to be taken out if they were broken up into many pieces. we'll see. >> climbing higher, helping the dow, which if you noticed yesterday, after segal was on, 17130-something. 18,000 by the enof the year. out of nowhere. over a hundred points yesterday, and dupont 1 up, starting up a couple points higher. >> looking at the markets this morning, as joe mentioned, dow is getting help, futures up by 12 points, s&p up less than half a point, and nasdaq down four

points. overseas mixed markets. the shanghai up by half a percent, but nikkei down slightly. europe, early trading, green arrows there. biggest gains come in france where the cac is up. >> peter, peter. a great guest host so far, and we got a lot of things. we have to get to bitcoin. i knew it was coming. let's get to the snow den, the hacking, major banks, security breaches. cloud. >> we did talk -- not much. >> a little. >> we can continue. >> we did. he says paypal -- you didn't hear? paypal was for transactions, not a currency, and it's obvious. all right. anyway. talk about naktd people, celebrity nude photos on the cloud, shining light on the as a rule nerlts. i want to talk about another thing that we were both right on

as ying and yang. i want to talk net neutrality. if i build these pipes, any other business i'm in, i'm allowed to say this is what it's going to cost you to use them. i don't understand this politically correct notion that the little startups that were unable to, you know, they got to be able to do this, that ridiculous argument, they somehow hurt innovation if you don't let markets work. you got to let markets work. monopolies are okay. we found that out. >> i would say -- i think comcast is on the border -- >> woah, woah, not talking about that. how about verizon? >> okay, they are borderline. >> okay, well they are, they are. we're not. >> i would say that, andrew, had net new tralty debates for sioux 15 to 20 years now, not necessary so far. i'm not sure this is the exact moment we needed, and then even if you're right in theory that there's a bad monopoly with

verizon but not with comcast -- >> you through that under the bus too. >> no, i want cheaper access -- >> in practice. >> faster speeds. >> that's what's been happening. >> look what's happening u.s. relative to europe and asia, we are woefully behind. why? >> peter? >> i think in theory, there's a problem in practice. you know, government trying to break up ibm, government breaking up microsoft, not clear it was necessary, not clear it did that much good. >> okay. the other thing you point out is that the -- provided the pipe owners are already charging their customers more to get it quickly so they get it on that end and they want to charge the content providers as well. get it both ways. if, you know -- >> my feeling is if you charge me extra for a high speed internet to get netflix supposed by without buffering issues,

then it's ridiculous to say, well, i know we're charging you, but the buffering problem is netflix because they don't pay us. >> there's always complicated pricing issues with all of these services. i don't think it's perfect. skeptical of that any regulations make it cured. the cure is worse than the disease. >> obama's guy tried to do the right thing, getting backlash. i don't know that the rules will be watered down. >> i'm not against mergers or -- >> that's big of you. >> suggesting -- >> not against mergers. >> i love mergers. founded something called deal book, is that a good name? >> created, by the way -- a great name, two short words that are spellble, spellble by average people. >> before facebook existed, 2001. >> they took it from you. >> i should have a lawsuit.

we could have done "the social network" -- anyway. >> you stated you're libertar n libertarian, are you mad about the nsa and once you found out what snowden brought to us, were you irate? >> look, i think snowden is both a trader and also a hero, and that's like -- even though they are contradictory, there's a sense he's both. it is a big problem there were no internal checks that we could in the have a debate about the nsa without something as crazy as the snowden stuff happening. >> talking about looking at so much stuff, not looking at anyone individually, don't care what porn site people visit, just looking for money going to yemen, i mean, is that a big deal? >> well, i would say the picture that snowden has of the nsa is it's not really big brother. it's more like the keystone

cops. they were hoovering up all the data all over the world no idea what they were doing anymore. first thing an intelligence agency should do is counterintelligence. if you have an it person, you notice that. once he's down loaded files, know what he took. if there's way too much data, you have no clue what's going on. i don't think they should have tapped merkel's cell phone. i don't think president obama knew. i think that was news to him. it was just massive data collection with no rhyme or reason at all. i think the more data you collected, the less you knew. >> what do you do with snowden if he's a traitor and hero at this point? >> that's somewhat above my pay grade. >> below your pay grade. >> or below, one or the other. >> it's below. >> we need to have a very serious debate about the nsa, how to strike a better balance.

i do think all these things where you -- i don't think there's, by the way, a tradeoff between privacy and security. i think if we develop technology, you could have both. in practice, we've had neither. look at airport security. >> yeah. >> where it's very low tech, very intrusive, and not secure presumably. >> for it to work and in order to find patterns and different things, it needs some level of metadata, no? how much data does it knead to both protect people's privacy and be successful in terms of being able to find when there's bad stuff going on and give that over to the -- >> well, the critical thing is always to be able to really be -- to have -- to be as -- to have -- to be able to get the analysts to sort through the data in very educative in very

educative ways. you don't need to have this enormous sweeping pools of data. the big pools make it worse. big data is one of the worst buzz words in silicon valley. it's like dumb data. it's overwhelming data. it's pages and pages of data you have no eidea what to do with. >> i thought big data was the opposite in that you needed all of this data to sort through because you wouldn't find patterns if you didn't have the massive -- >> key thing is to figure out how to make big data smaller. how to find valuable things in that. i think there are a lot of very powerful ways to do this that don't require us to be intrusive. we are intrusive with low tech solutions. this is why technology is the key to finding something where we have more privacy and security. airport security is neither.

>> yeah. >> i'm stalling. >> why? >> trying to order up music as we bump out. >> oh. clever. >> now that ruined it. normally, you talk forever. i messaged, said we'd have tom -- there it is. there, okay. now we can read the tease. >> more with him throughout the morning. when we back, though, hiking rates and the state of the economy after this. when will winds die in california? latest on growing wildfires already creating major damage in the area. we'll be right back. it's the barbarian queen. wait, wait, wait, wait, wait, wait...whoa, does she have special powers when she has the shroud? no. guys? it's the woven one the woven one. oh, oh that gives her invincibility. guys? no, no, no... the scarlet king is lord victor's son!! no don't.

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welcome back, firefighters continue to battle a wind driven wildfire near the small town of weed. the fire which is the largest currently burning in california already damaged or destroyed 150 structures including homes, business, and two churches. firefighters are making progress on containing the blaze, the danger is far from over. conditions there expected to be

more severe today. >> fedex beating estimates with the latest earnings out this morning. the company earning $2.10 a share for the first quarter compared to the what the street expected of $1.96. a rate hike january 5 of next year. joining us to break down the numbers is john, a managing director and senior research ammist, and, don, the street is impressed by the numbers, are you? >> i am, i am. another solid quarter. like california, fedex is on fire. >> okay. take a look at what happened there, a lot was it was strength across all across the units they are looking at. anything that jumps out, anything that caught your eye? >> well, you're absolutely right. we saw rebound in international air freight volumes, continuesed growth in ground, 6% growth in ground volume is the slowest in eight quarters, yet it's still

strong at 6%. we saw growth in freight. largest less than truckload carrier in the united states, up 11% volume, posted best operating margins since prior to the recession. a great turn around there. >> planning on raising their rates by 5% starting in january. is that something that sticks? >> it will stick. the reason is is capacity's tight. volumes strong across the board, capacity's tight, and so they have the ability to not only ask for but receive rate increases, great news for fedex. >> saying that all of these -- the numbers they are giving us now, outlook on this, it's all based on moderate economic growth continuing. is that something you see happening too. >> well, i see moderate economic growth, but look at the freight flows, actually seeing throughout the modes accelerating growth. fedex is notorious for being conservative in the outlook telling you they can't control

the price of fuel, can't control the global rate of economic growth. they can only control how well they operate and react to it. that's certainly true. they are conservative, i think. the -- we're at the top end of the guidance range for the full year. guidance is 850 to 9, i'm at 9. comfortable there. i think the number could be marketedly higher, but by the time the fiscal year, just the first quarter of the fiscal year, by the time the fiscal year is done, could be higher. >> how do you match up the stock with ups? >> you know, the story is clear on what the performance was last holiday. last holiday, we had ups stumble and bumble and deliver christmas packages, little johnny did not get a visit from santa until the 30th or beginning the january. if the carrier was ups. on the other hand, i literally had a fedex person driver knock on my door christmas morning and

deliver a package. they did not have service problems around the holidays despite the snow and ice, and ups did. i know the weather was a factor. bottom line is the little ice and snowplows did not follow aarp the ups trucks and ignore the fedex trucks. they got it delivered over the holidays, and that's benefits them in both volume and pricing power today. >> don, thank you for joining us. >> always a pleasure. >> when we come back, cpi data, a preview of today's fed decision. later, google, apple, my clo soft, ibm, a hundred billion dollar companies plus. see what peter thinks the next $100 billion giant will be. >> futures, things look like they turned down. dow, nasdaq, s&p below looking like they open lower this morning. we'll be right back. way to "plus" ourso what wea accounting firm's mobile plan. and "minus" our expenses. perfect timing. we're offering our best-ever pricing on mobile plans for business. run the numbers on that. well, unlimited talk and text, and ten gigs of data for the five of you would be...

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welcome back, everybody. u.s. man has been arrested in south korea for trying to swim across a river into north korea. the man found in a restricted military area near the border. a he said he was trying to get to north korea to meet the leader. >> this is a tourist -- did you read that article? that north korea -- i mean, you

go to exotic places, that's like the last place -- cross that border, all bets are off. you're out of your mine. don't do it. >> i'm not going there, don't worry about me. booker taking a shot at the nfl. the democrat introducing a bill disallowing sports leagues from claiming status as tax exempt nonprofits. nfl teams now pay taxes, but the league office does not. booker says the bill raises a hundred million dollars over ten years and money used to pay for domestic abuse programs. how do you feel about that? >> it's hard to, you know -- when it's put that way, who says that you don't want to pay domestic abuse. you get to the point on the break that government -- >> why are they tax exempt? >> should they be? >> why are they? >> the league? >> the teams, teams. >> no, no, the leagues are tax

exempt. >> they pay fees. >> pay taxes, but they pay fees to the league office. that's where the taxes are not paid, at the league level. >> figured they pay tax because of the team? >> it's a league. >> basically, i like whenever -- if there's a way to leave anything in the private sector, we talked about this, a better place for capital to get a return. >> well, it's, you know, i think that the government has gotten less efficient over the last 50 years. >> hard to imagine. >> hard to imagine. the empire state building in new york was built in 15 months in 193 is 1. world trade center, 13 years and counting. even though i'm libertarian, i would have that the obamacare website was going to work. i wouldn't have predicted that wouldn't work, and designing a website is much easier than building an atomic bomb or sending a man to the moon like the apolo program in the 60s.

that's been this real decline not talk the about enough. >> right. if you're running any type of organization where you can't find a person that's going to exert influence to do things in a way that is important that you do it quickly and first tieffic. why not take four hours for lunch? why do anything? it's the nature of the beast. >> they were not taking four hours for lunch so i do think there's -- >> they -- i'm not going to say the dmv or throw the post office, but take your pick and watch. >> those are probably the best since everyone knows how they are doing. the people are monitored much more than educational where. >> you want to end this, we had a minute left. ending it because we're trashing the government. >> we have a question from twitter for peter i wanted to get to. >> better be good.

>> from a fellow name the jartd, peter, what's your biggest concern in the social media space when we've seen the my january space's of the world leave and twitters of the world enter? so how durable are the franchises? >> well, they -- a number of them seem fairly durable. at the same time, it is a space where you see continued innovation. there's instagram, twitter, snapchat is the one that's emerged in the last year. it is a much more dynamic space where there's no competition with google at all. >> plong term bullish on twitter? i know you are on facebook. >> i -- twitter's hard to evaluate. they have a lot of potential. it's horribly mismanaged company. people -- a lot of pot smoking

probably going on there. >> wow. what do you really think? >> but it's such a solid franchise maybe it works even with all that. >> dick is going to call you for dinner to --nyway. talk about that and more with peter on the next 100 billion dollar company, and the countdown to today's major fed decision. back in a moment. financial noise financial noise financial noise where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling.

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welcome back, everybody, a few seconds away from cpi. let's get to rick santelli. >> here we go. down two tenths of 1%, headline cpi for august. cooler than we looked for. last month's one techt unrevised. strip out food and energy, looking for up a couple tenths. unchanged, year over year headline 1.7, core 1.7. sec quarter current account balance, and let's see, that's 98.5 billion. that's definitely on the right side. looking for a number of 110 billion. we could argue how that filters out into the things like tratd balance and how much of the

strength in the dollar actually made a difference here, but that is a surprising number as well. yes? yields moving down, after the high yield close last week of 261. second day of the fed meetings, so we'll get the decision today. most likely, push forward in time, any significant interactions with the marketplace via the fed. back to you. >> thanks, rick, for more, and look ahead to the fed decision this afternoon, steve joins us from washington. hesitate to talk about this, steve, i apologize, but you -- >> what? >> yeah. the only thing is, you know, he has a lot of hair. i don't want to go into that. >> you respect that more than you do -- you're an antibald guy established over the last decade. >> yes, and you go to the 12 step meetings to deal with it.

is it true that people that thought they were getting a little bit more accommodative, and considerable time? >> to be clear, talk about the odds rising, came out, big banks called for considerable time to be removed, tweaked, and third group remains. that's one of the main issues there we're watching today, what happens to it, could be tweaked, and comes from the hawks and doves who expressed concerns with being date dependent rather than data dependent. watching that word significant in the characteristicization is in the labor economy. we get the forecast for the fed looking at the rate forecast, same as the long run? long run's 375. getting there in 2017? there's the thing we talked about all week, joe. market's rate outlook versus the feds'.

i want to sure with you in theory fomc members who object to calendar based guidance should be alarmed by the dot chart. calendar based guidance does not get much more explicit than the dot charts. they are date dependent somehow and anyway. quick thing on the cpi, guys. we knew we would get a big decline in energy, down on gasoline, housing fuels down 0.4%, but there were declines in other things, for example, apparel down, airline fares down. my guess is fed looks through the report, does not see deflation in it in part because it's consistent to the extent it's energy based, but they are not going to feel any huge need to move because the numbers seem to go beyond just headline stuff of food and housing. those are the things i think they will be watching very closely here. joe?

>> all right. steve, thank you. man, watching the fed. will there come a day, steve? >> yeah, i mean -- >> you'll be out of a job, but -- >> one of the things worth mention -- why would i be out of a job? they raise interest rates? >> no, a day where we don't analyze every utterance from the fed? there was a time when we didn't. you didn't know who paul was then. >> were public, and, in fact, they have, you know, a lot of influence on the markets why it becomes so important equity and bond marks and sometimes they hear the same things or talk plainly or talk in code, joe, and one of the things our survey picked up yesterday we didn't talk about yesterday with you guys 1 how much respect there is out there right now or faith in janet yellen. ask people, you think the exit process ends badly or ends smoothly? more people now think it's going

to end smoothly, up ten points from the last survey, there's a good amount of faith she works out of it. so far she's coasting on the plan, ending qe in october and mid-2015 rise of interest rates. >> it does nothing. peter, the well known rand palm's father, you know, how he's viewing the fed. >> not friendly. >> do you have similar views? lives are greatly influenced by these people, aren't they? >> i don't think they have much choice. raised interest rates, it's not clear the economy would -- >> a big part of our lives in general. no way out? >> it's a huge part -- i suspect ending qe is a big deal and somewhat of a problem. probably done too much of it.

should have stopped at the first two rounds good, 2011 on warz was unnecessary. huge vehicletity in the markets, qe, that was good, qe 1, but infinity starting in late 2012 unnecessary. >> i was looking for a yes to outlaw the fed from you. not one of those? >> i think it's a mistake to make it the scapegoat for everything. i think problems are much more microregulation than macro economics, but i worry we have a third bubble in three decades going on in the u.s. a dot-com bubble in the 1990s, housing and finance last decade. it's the government now, it's the government bubble, bonds, fixed income. >> yeah? >> real rates are massively negative, clearly where the bubble is. >> interesting. >> sorry, steve. peter just said, you know, made more money. we have to talk to him. he has good hair too. >> let's talk about what's going

on overseas. big day for scotland tomorrow. they go to the polls to decide whether to split from the united kingdom, and michelle caruso-cabrera made her way across the pond. >> reporter: a beautiful place, andrew, yes, one day to go before the historic vote. the nos in the lead by a small percentage, but both sides campaign heavily still because they believe the result is still up for grabs. in eng lan last night, there were candle light vigils with the english begging the scots to stay, and bill clinton weighed in last night issuing a statement urging them to vote no saying unity with maximum self-determination sends a powerful message to a world torp by identity conflicts that it is possible to respect differences while living and working together. when you talk to the people on the ground here, the no vote is very much about fear and, you

know, why should we risk it? the yes vote among the common people is about passion and self-determination. when you read through the paperwork and advertisements out by the yes campaign, it's clear the politicians leading the campaign want to control all the tax revenue that is generated by scotland for scottish purposes, and i want to show you stats they put in posters and in graphics, showing you they are very unhappy with the reduction in the welfare state that the united kingdom has done in the last couple years. these are stats from the yes campaign saying, look, 89% of the scottish mps in the british parol limit voted against cutting the child benefit. actually, they voted against means testing the child's benefit. in other words, the subsidies you get as a child go now only to the poor or low income families. they voted against that. 91% of the scottish voted

against the bedroom tax. if you live in government housing with an empty room, they tax you on that now. that was skinned to -- if it family -- if children move out from a family, they want the family to move to smaller housing because there's a shortage of subsidized housing. they said no to privatization of the royal mail, and also to pension changes that would have ra raised the retirement age. very much very unhappy with the reduction in the welfare state as well, guys. back to you. >> all right, michelle caruso-cabrera, we'll see how it turns out this week. >> up next, peter thiel knocking twitter's management mitchs ago, back to the topic after the break. plus, his guess on what will be the next 1 00 billion dollar company. before we head to break, if you think u.s. politics are dirty, check out ukraine. angry citizens in kiev throw a member of parol limit in the trash screaming foul language,

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today there's a new way to work. and it's made with ibm. welcome back, everybody. raving reviews coming in this morning for the newest iphones, common theme is bigger is better. reid code writes in part, a terrific phone, best phone on

the market, hardware, new operating system, and apple ecosystem whose doors its opens. see more on the iphone 6 coming up later on "squawk alley." >> back to peter. all struck, what do you think of twitter? you had a very negative opinion both of the company and the management. >> the company is a fantastic franchise. the paradox is when the business model is as good as twitter with you have 140 characters, no one copies or competes with it, you can be screwing up a lot of other stuff. the management can be b-plus. maybe people come in at 10: 30, leave at 5:00 p.m. that's fine in a company that is -- >> significanti isuggesting the mismanaged today in. >> yes, they should be making more money, building more

products, i think it is -- it's -- it feels like it's a vastly under performing its potential. there is a way in which it's going to do fine as a business. decades ahead no mat whaer they do. >> you don't own shares 234 twitter. >> i do not. >> prevailing view in the valley it was mismanaged for a long time in the beginning, but once dick, the current ceo was brought in, things got better. you think they have not? >> it's hard to change these things, you know, the tone, the culture gets set at the founding moments of the company, and it's very, very hard to fix nda like that. >> eject the current ceo? >> i'm not sure they could do that much better, but it's -- the ceo can't change things that much in the companies. you don't have the -- i mean, you have to fire everybody and start over. >> founders lazy and put that culture into it? >> not lazy, but set the tone for the company. is the the tone for the company. >> to make more money, you need

more revenues. how do you do it with twitter 1234? >> it's all advertising. >> that will work? nothing on twitter induced me to do anything in terms of opening up my wallet. >> there probably are things -- >> for branding? i don't like it when i see something i'm not following. i go past it. i don't know what it is. i don't know how it got there. what is that? >> they have to figure out a way to do it where you don't notice it. >> you don't notice it now. >> i saw it, i don't like it. i don't follow it. >> it's when you don't notice it that it works. >> founded square. great entrepreneur. >> brilliant product guy, and i think, you know, played a key role in coming up with the idea behind twitter which was really good. the square reader was, again, a brilliant idea. competitive challenges with lots of other people copying the product at this point, but

definitely been a brilliant visionary. >> we said we'd ask you about the next hundred billion dollar tech company. if you were to pick one, is there one out there right now? >> well, this are -- there's a number with the potential to be there. probably on the consumer internet side, i would be most bullish on air bb. >> investor? >> i am there. as the one that has the potential to get there. >> alibaba. whispering that. >> if you go china, alibaba -- that's at 200 -- it's not really -- >> will it get there? >> i think so. i think so. that's more enterprise software. they tend to be more relentless, longer thing. some gets there fast, goes wrong fast, or grows fast. >> peter, i hate to ask, coming

back to it one more time. if jack dorsey was the guy behind it, ba what do you think of evan williams? where is the culture messed up? >> the whole founding is complicated. you know, there was a book written on the history and really unclear who exactly did what. i think dorsey was brilliant. a lot of talented people, but somehow the combination did not work. >> all right. >> and the culture was set in somewhat of a weird way. >> peter, i want to weigh in, if i can, a somewhat sensitive topic, only because we read fortune magazine. you talk about it. you have been public that you're gay. you're one of the few in silicon valley and in the business world who's been public about it. i wonder when you look at jim stewart, for example, wrote a column, two ceos public companies who came out historically, not historically, but are. do you wish more have no dooup

why they have not? views on this? >> i'm not sure i'm necessarily an expert on this topic per se. i suspect there are a number of gay ceos who have not announced it. i suspect a generational thing if you're in your 50s and 60s and have not come out, it's unlikely that you will, but i think we'll see a lot more in the decades ahead. coming up, coming up, jim cramer from the new york stock exchange, and later, rapid fire with our guest host, peter thier. tomorrow on "squawk box" reaction to the feds' rate decision, the guru is here, and, plus, the biggest ipo of the year set to hit the markets. we talk alibaba and e-commerce. "squawk box" on cnbc, profit from it.

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welcome back to "squawk box," everybody. take a look at the futures. they've turned around once again. s&p futures up about by 2 1/2. >> let's get down now to the new york stock exchange where jim

cramer joins us. think of the individual names we've had today. f fedex looked pretty good. you have dupont. we have had stanley black and decker on. i don't remember the founder, mr. black and decker stanley. do you see a great inventor of tools or something? >> i know the stanley family. >> oh, i'm sorry. >> yeah, the stanley family definitely up in connecticut. very smart people. black and decker, i think -- geez, the guy was a diplomat to see the previous guy wasn't that strong. that combination, it's a very winning combination. i think it's turning in europe, too, which is very significant. they have big european business. i like what they're doing. they have an oil service business that's good too. >> how about peter on twitter? you been listening to some of that? >> i'm a big anthony nodo fan.

i think he's shaking things up. but i respect peter so much. i feel there was a mismanaged situation, but a guy like nodo comes in, no nonsense. i'd like to hear what peter thinks it on a cfo. >> cfo is more the public facing. you need a cfo so you don't have creative accounting. it's really bad to have a bad cfo. good cfo only goes so far. >> that's interesting. >> i think -- look, who am i to disagree with peter? i would say nodo was a special enough guy he can make it so a lot of things -- they were kind of like a university of twitter. i think that's a little interpretation of what i think peter is saying. this place is kind of a -- geez, you know, we've got a good product in 140 characters. nodo says, no, we have to run a business. i think otherwise this business gets taken over eventually.

>> do you have a take on that? you own some companies that could buy it. >> well, i wouldn't speculate on that. >> fair enough. >> you remember that, jim? >> the dangerous combination is the smart and crooked cfo. that's the really dangerous combination. >> thanks, jim and peter. >> coming up, we do a little rapid fire session with guest host peter teal. off-the-cuff questions that answers that could surprise you.

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next opportunity. because at scottrade, our passion is to power yours. let's get back to our guest host peter teal. peter, we'd like to do a little rapid fire with you, if you don't mind. >> absolutely. >> so let's start out. iphone or galaxy? >> iphone. >> very good. are you online streaming or cable? >> cable. >> most unusual pitch you've ever heard. >> wikipedia entry from the year

2024 where the person had made a fortune. they had spent their last money -- the wikipedia entry indicated they spent their last $75 to go to a conference where they met me and that miraculously turned everything around. >> did you give them money? >> i did not. but i was somewhat disturbed by it. >> i would too. what's the one thing somebody shouldn't say when pitching you? >> they shouldn't say that they have five different ways to make money. i like to have one clear way to make money. when you say you have five different ways of making money, that means that you aren't clear on any of them and it suggests you don't really know what you're doing. >> i like that. >> when you say you can do a, b, c, or d, you haven't thought about any of them clearly. >> what's your power breakfast? >> egg white omelet. >> every day? >> every day. >> going to get one after the show? >> i had one already. >> online or in-store shopping? >> mostly online.

>> paperback or e-book? >> still paperback. >> your favorite movie. joe's already brought this up before. is it "lord of the rings"? >> "star wars" trilogy was probably the one i liked most as a kid. >> you're not going to back a republican candidate. who do you think is the most talented? >> i think christie is the most talented politician. he may have too much baggage to win. rand paul is probably the one i'm most sympathetic too ideologically. >> hillary going to be the next president? >> she's the odds-on favorite. maybe the clintons are making the same mistake as '08 to think they're automatically going to win. >> a little bit of complacency. >> the hubris is high. >> you don't like the term disrupter. why not? >> the disruptive kid gets sent to the principal's office. they get noticed but end up blowing up. >> what do you like? >> innovator, mission-driven

company. if you're a drinisrupter, you'r defining yourself against people you're competing with. you should be doing something new, fresh, and strange. >> should most people still go to college? >> probably, but they should think really hard about why they're doing it. >> thank you so much, peter. it's been a pleasure having you. >> this is fantastic. >> go buy the book. peter thiel's new book. >> "squawk on the street" is next. good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla at the new york stock exchange. we have got it all this morning. a falling cpi earnings from economic bell weathers. activism at dell components. and hours away from fed's statement and press conference later this afternoon. our road map is going to go like this. investor nelson peltz calling for dupont to break itself up. >> the markets looking ahead to the fed