of those things. facebook says we can see something as big as a 747 in the very near future. that would be delivering some very large packages. it's thursday, september 25th, 2014, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen. andrew is off today. there is rain in the forecast here in the new york city area. that is adding to some of the drama around all this hoopla. we're going to have a live report from the bronx and more on what jeter's second act would be away from the baseball diamond. that will be later in the show. in market news, the dow is back in positive territory for the month. the s&p and nasdaq both have more work to go to get to that point.

dow futures up by about 14 points. s&p futures down slightly and nasdaq up slightly. august durable goods. then at 11:00, the kansas city fed survey. apple having a rough week after, you know, a couple of good weeks, after that new intro. reports are flying around social media about problems with two of the company's new products. first, there was what we talked about yesterday, there it is, bend gates and it cracks after you try to put it back. >> iphone 6 buyers claiming the device can bend when placed in back pockets. it depends on your weight when you sit on it, i guess.

i haven't done it, but i have been asked to download this partnership haven't done it. some users complain they had calls blocked and couldn't unlock their phones with their fingerprint. hmmm. i didn't know you could do that, anyway. apple says it's investigating reports of problems. it's offering consumers a way to manually reverse the updates. there was overheating with the iphone 5 and two years ago, remember the apple maps weren't as good as the google maps. that left people aloft.

>> i don't know. the thinner you get, it's something you have to address. >> i liked how thin that was. that's what made me think i wanted that. >> you don't want a fragile phone. you need a phone that -- it's a battle between your butt and your phone, you want your phone to win, right? >> yes. >> battle of the bulge, yes. >> because -- your butt will give, usually, unless you're just ripped, you know, which is -- when people do that. i can carry an ipad in my back pocket. >> if you're hearing a buzz today, it's because we have a lot of drone news this morning. there are drone flights to film inside sets today. so far, the faa has allowed

limited use of drones for surveillance for law enforcement. but the story could get bigger. facebook is offering more details on its plans to use solar powered drone to provide free wi-fi. facebook isn't using the term drone. it's going instead with plane because they would be flying these things roughly the size of a 747. facebook says it plans could become a reality in the next three to five years. that leaves a lot of questions about how these things work. i have questions just about drones themselves in the air, understanding who is using them. >> remote control commercial -- not commercial, but a plane the size of a commercial=oá" airlin gives me the creeps. >> me, too. >> then you wouldn't even need the train the pilots and sneak around and do all that stuff. you've just got to get -- >> they say three to five years. i have a hard time buying the faa signing off on that. >> would you get control of the remote control or something and steer it wherever you want.

that's insane. i'm sure that's the first thing that comes to mind, right? you could use it in a way that would be -- yeah. >> even if it was accidentally downed, i mean -- >> right. wherever. exactly. i don't know. that seems kind of science fiction, but -- >> i have a hard time believing that the faa would sign off on something like that. they may be able to physically do it in three to five years. >> we're worried about the little ones landing on people's heads. >> there was a kid that was killed, remember, in queens a year or two ago. the ap is reporting that the air traffic control system is not taking the new technology into account. in 2003, coming passed a law directing the faa to accommodate all types of aircrafts, including drones. but, again, the skies can get very busy very quickly. they are flying objects that can be dangerous. >> in corporate news, florida is adding 1200 workers. that's good. and another shift to a plant in

missouri. that's where the company is making its new transit van. i think we have seen similar to that. our crew does. they're all parked out there. we're going to talk to ford's president of the americas, joe henri can, at 8:00 p.m. eastern. i think phil will be involved with that, right? and private backed -- phil lebeau. and private equity backed oil and natural gas company vantage is postponing an ipo. the company sites unfavorable market conditions at this time. meantime, airline ticket company travelport worldwide priced its ipo at the top end of the range. it values this company, which was blackstone backed at 1.9 billion. the pe firm and a partner bought this company for more than 4 billion back in 2006. the shares are expected to start trading today. if you're wonder background the symbol, it is pvpt. tvtp. travelport.

in global news, usair strikes targeted 12 isis controlled oil refineries. early indications suggest those strikes were successful. but these refineries were responsible for bringing about $2 million a day back into isis either through cash or through other goods that were bartered or this oil. the front page of just about every newspaper this morning is president obama's speech. yesterday at the u.n., where he says the muslim world has to confront the isis network of death. the speech writer who wrote george bush's speech about the axis of evil said when you are confronted with such terror and such horrible beheadings and things of such nature, there are only so many words in the english language you can use to contribute it. >> and i was reading in the journal the key meeting was with saudi arabia. i didn't realize how they were

really upset a year ago. then i thought back on it and we really did get -- it was almost assumed that we were going to another red line. and i guess it was the -- that's when we were talking about the use of chemical -- >> a year ago, we were talking about shipping away from a perpetual war footing. >> but we also knew he was going to go, and i was expecting eminent air strikes. then it was now it looks like he's going to go to cob and then we just shelved the whole deal. it seems like it's better to be cautious. i didn't realize today we were going to have dick parsons.

you're not dick parsons. >> no. >> we'll be with you. i knew you weren't him. but with your clinton thing, i didn't realize the -- you know, just how amazing, and he just said yeah, it's notice unpatriotic. he just threw that right in jack lew and barack obama's face. >> he then went on to say treasury is what it is. >> do you think right now if bill clinton were president, i'm pretty sure he would talk to the -- even talk to the worst -- you know, the people they think are the worst republicans in the house. i think he would lower rates because he knows that it would generate jobs. >> he's not competitive. when he signed it into law, it was -- >> but he doesn't have this role, dislike of ceos and corporations and the private sector that really disallows this administration to ever get

close to -- although they're -- >> a lot has happened in 2008. is hellry -- where is she? what does she feel? she seems more left than he is. >> no, look, i think one thing with the clinton presidency, he was the head of the centrist organization of governors who went through. he believes very much in private and public relationship and having those private/public partnerships and getting things done. that's something hillary clinton has talked about, too. i saw her wednesday night where she was talking about the public/private relationships and how you build partnerships. >> i'm just wondering whether she is as business friendly as he was kind of business friendly the. >> she was as a senator in new york. >> he might be a copresidency, too. >> that's what everyone said a when he was president, that she was advising him, she was his closest adviser. that's what most of us do in our marriage.

>> yeah. really? >> yeah. >> no. >> yeah. >> i mostly just -- >> listen? >> yeah. you get the weigh in every once in a w450i8. >> follow directions. what's the upside of me weighing in? >> happy wife, happy life. >> exactly. let's check in on the markets this morning. futures are mixed this morning after a big day of gains yesterday. dow futures up by about 13 points. those gains from yesterday really reversed the last two days of losses. it was the biggest day of upswings for the markets since this summer, early this summer. you take a look at what's been happening with oil prices. right now, you will see wti is down about 96 cents. 92.63. the ten-year at this point looks like it is yielding 2.55%. about the same range we've been all week. and dollar prices, they're up across the board. the pound right in and out is at 1.6316. the euro is at 1.2729. if you take a look at what's been happening with gold prices, down about nine bucks this morning.

we are getting close to a point where you could break below $1200. $1,210.60 an ounce. stocks rallied yesterday. kind of interesting to watch. snapped a three-day loogz streak. the nasdaq had its best day in more than two months. small cap shares rebounded despite another death cross. so-called death cross, the traders were watching earlier this week. a few of them in different markets in the last 18 months or so. but with durable goods and claims out at 8:30 eastern, what about today? lindsay joins us. jj kinnehan in is in studios with us. it was a slow sort of grind higher yesterday. that picked up speed and sort of welcomed. >> it's interesting, joe. exactly what you said. it didn't seem to be any one cause of it.

we just stay in this range. we would be in this 1980 to 2012 basically range since august 19th. and we're in the middle of it. it's funny, you say after those three days in a row, we have three days in a row where we sell off for the first time or sixth time only all year and it felt like, oh, my god, everyone is talking about the world coming to an end. >> is that just a sign that there are so many people out there who are trying to buy the dip? >> i think that's a great point, becky. you've heard so many people. there's a lot of money managers underinvested. how many people have you heard saying when we go down 5%, i'm getting in. andite not happening at all. it is kind of interesting to me that actually i think this has been a rally where a lot of retail traders have been involved. maybe more son that some of the professionals. a lot of the professionals i think are overweighted in fixed income. everyone has been waiting for this other shoe to fall so to speak and it just hasn't happened. >> and the markets always move

when you don't know why. watching it for 25 years or whatever and you find out maybe later, but this market even more makes me think that the fed -- that as long as they're just -- you know, the last three or four years, it hasn't been really based on underlying fundamentals as much as maybe even previous moves. the money keeps flowing. the qe keeps happening. rates stay at zero and there's nowhere else to go. so stocks just kind of -- it's just like money finds its way into the market, it seems like. >> that's true. but you have to remember one thing. there's the old adage that earnings often find price in terms of rally. so i do believe that you're starting to see more evidence of that. if you look at some of the p/e ratios, we're not that outrageous. you can always pick out a few stocks that are. but the market as a whole isn't that outrageous. last earnings season, it was kind of lost with the geopolitical tensions and it was an earnings season overall and i think that got lost on a lot of people

lindsay, we had kooil bass on. that may or may not mean something to you. but yesterday, he talked about some of the things that others have said, that once again we're back to the fed. the fed is kind of orchestrated this asset recovery, hoping that the wealth effect trickles down to everyone else. but what it's really done is just delayed some day of reckoning and that we're never going to have rates really rise again because we're never going to get going quickly enough again. and the unemployment figures, they may say 5% or 6% or 6.5%, but, in fact, it's just -- you know, not an economy that can really support higher interest rates and our debt service with the government. we can't support 4%. >> sure. >> we would go broke quickly. do you agree with that? >> well, i think that's a growing concern of the economy. we saw that dot plot that shows committee members hoping the economy would be on a strong

enough footing. as we know, the fed is consistently overly optimistic in terms of reality. so when we look at the underlying fundamentals of the economy, the consumer continuing to lose momentum, business investment very uneven, the housing recovery positive, but very commuted, it's hard to argue that the economy will be on significantly stronger footing or a strong enough footing to suggest that the fed can begin to raise interest rates. so, again, despite the fact that we see a lot of committee members talking about that, it's likely that the fed is on hold well into 2016 and if the data does continue to disappoint, we could be talking about 2017. >> and the next time there is a slowdown, it would be nice to have some room to cut. if you're down here with no dry ammo and there is something

globally that happens that causes a slowdown, you're back to not having any of the tools to try to help. >> just to give the market a relaxation period and offering said, if we do need another jolt to the economy. we'll be talking about 400 basis points. i think it's pretty clear that the new normal is well below the historical norm in terms of that fed funds target rate, possibly around 2%, maybe 3% as opposed to 4% or 5% range.

>> charlie evans is saying they're going to extend some sort of -- >> no. >> be more easing. not extend this particular package, but charlie evans' comments continued to spark the market. he wasn't clear on what it was. >> well, they said -- it was strangely worded. >> they would be there, so to speak. >> people compared it and it keeps going farther and farther out of the money. one of the things that they are doing, which isn't bad, is interest rates for a while, rather than them raising or cutting rates, they're saying let's let markets trade things. that's one of the reasons we're so range bound. the 10-year is going to yield as we continue to push around and find a fair value in it without the fed intervening one way or the other.

hopefully the durable goods number is good because i think between durable goods and houses, there's no better measure of consumer confidence. with that number today, if it can come in better than expected, we know it's a negative number overall. kite show that the consumer is back. the housing numbers have been the most confusing for people. that has been the hardest market for everybody. >> so the fed knows that every time it raises rates, that we owe more money as a country on the stuff we've borrowed. it's billions of dollars every hundred basis points. and they know that, right? >> they certainly do. so remember, the fer has been very clear that they want to maintain their autonomy from the federal government. so, of course, there is conspiracy theories that there's a super secret phone call that

goes on between the president and the chairman, but, again, charm yellen has been very clear that that is not a prior to. the priority is stable prices and full employment. that's what they were focus on. that's not to say the federal government can't stack the committee with dovish doves. remember, we still have vacancies and appointments that we're waiting for. but from a direct standpoint, the debt payments is not a primary issue that the fed is focusing on. >> lindsay, thanks. joe, good to see you. >> good to see you. >> whenever you used the talk to him -- >> i call him j.j. now. >> you would say joe, what about this snm and you weren't interviewing me, you were trying to -- >> when i hear becky, my ears perk up. so you changed his name just to come on -- >> just for becky. >> thank you, j.j. we appreciate it. >> anything for you. >> thank you.

when we come back, transformers meets the disney prince princesses. the entertainment giant taking its business to hasbro. can mattel survive without the kingdom? that is coming up right here on "squawk box."

steve ballmer said he is going to bring his form of enthusiastic leadership to his new job. >> i like the microsovpt vfrts, i like the microsoft windows phone, i love the l.a. lakers and i'm going to be enthusiastic about those things. >> much more about that interview we'll have with ballmer in the next few hours. >> i love thinking of him on the sidelines. >> yeah, but figure 42 to -- figure five points on how many

that he owns millions of shares. 333 million shares. >> he made 2 billion and paid for profits. not to say that it was his leaving microsoft that ignited the stock. although the stock didn't seem to go down. >> over the years. >> i would just tell you that he -- if you look at the stock price, maybe that stayed flat for a long time. >> it was one of the blue chip bubble stocks. >> microsoft, you're managing a

company that revenue is so huge. and the law of large numbers comes in. i would not agree with critics that say he didn't know how to run the company. but it's done pretty well in the last year, for sure. >> i'm excited to see him on the sidelines. he will be there with enthusiasm. you remember those marketing meetings where he would get up? that will be great. amazon is the head of digital music and video is leaving the e-commerce company by the end of the year. so far, it's been a key player in amazon's quest to take on hulu and netflix and streaming online video. remember the computer bugs that surfaced last spring that allowed hackers to spy on computers.? now there's a newly discovered security bug that could be even more dangerous. it's called bash and it could let criminals take complete control of a targeted system. up next, mattel getting frozen out of the disney franchise by rival hasbro.

"let it go," and what will this mean for the new franchise for hasbro and its bottom line? plus the results of a billionaire beach battle. "squawk box" will be right back. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement.

big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on.

(laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick. andrew ross sorkin is off today. and if you are a billionaire living at the beach, it's probably safe to assume that you

want exclusive access to the sand, but no such luck for silicone valley's kosla. a judge in california, san mateo county ruling against him in a lawsuit over public access to the beach. kosla now must seek a permit from the california coastal commission -- those guys are tough -- before he can lock gates at martin's beach. it's an exclusive section of ocean front just south of half moon bay in san mateo county. >> half moon bay is up further north. it's all by pal alto. >> where did they have that -- >> further north. >> the great robert taylor. 6 robert taylor? rob taylor. felicia's dad. >> felicia's dad? >> felicia taylor's dad, on nbc. maybe not any more. used to be a coworker here.

>> that was before my time. >> how did you jump to bird wes that? that's scary. >> because half moon bay reminds me of -- i think there's a nice hotel in half moon bay, maybe. >> there is. it's very pretty. >> i was just looking at -- we'll get to this other news in a second. how do you know if someone is really dead? >> what is this? >> both of these people were dead. it supposedly happened twice. at the funeral, they resurrected. but i think they weren't really dead, right? but there are these reports. with ebola, when you start talking about pandemics, immediately, the lunatic fringe starts talking about ways the zombie apocalypse can happen. >> someone may not necessarily have checked the vitals when you're afraid of getting too close. >> one of the comments i saw was, look, obviously, it's not going to be a zombie apocalypse.

but a pandemic is a frightening thing if it were to take hold and if it were to be airborne. >> think about the influenza epidemic right after world war i. >> we're much -- obviously, society has come a long way since the plague and things back in the middle ages. but you just -- you know, how do we know that we're -- you just wonder, nature is very powerful and you wonder about a mutation of some sort that, you know, this ebola thing, if it gets to a million, i just did the math yesterday on 70% mortality. if it does hit a million, it's 700,000 people? seriously? >> by the way, that's 1.4 million would be the had it high end of the cdc. it's already in five countries. this was in two of the heavily hit countries. >> i was watching jeopardy last night. they talked bsh there was a virus, computer virus for a while that was called ebola. remember? that was one of the questions last night. and it just rang -- it was like very -- obviously, it had been

taped. at least six or eight months ago. it was weird. j.p. morgan earning the title as the top performing investment bank in the first half of the year. the financial giant making 11.5 billion in revenue. coalition reports that goldman sachs and deutsche bank fold jpmorgan. russia's rosneft may back out of a deal because of western sanctions making it virtually impossible to finance day-to-day operations the sdmroop and harvard university's endowment growing to more than 36 billion in the fiscal year that ended in june. it's the largest in the nation. the endousement in a return of 15.4%. it's now approaching its precrisis record high of 36.9 billion. harvard also announced that steven bliegth is going to be

running the endowment. easy guess well known to people associated with the endowment for quite a while so it's not a total surprise. yesterday you saw major moves towards equities. you can see that the dow and s&p 500 both had their best day since august 18th. the nasdaq had its best day since july 18th. this morning, futures are mixed. dow futures are up against by about 14 points above fair value. s&p and the nasdaq futures are slightly lower. if you watch what's been happening in europe and some of the early trading there, not major moves. the dax in germany, up by 0.4%. the ftse slightly lower. in asia overnight, you'll see that the nikkei was up by 1.25%. the hang seng was down and the shanghai barely budged. oil yesterday was up by 1.4%. pushing by $93 in the evening session. and if you've been watching the

ten-year note, it's in the range 2.55%. the dollar is stronger across the board this morning. the dollar index yesterday hit its highest level since july 2010. it's still on pace for its largest gain. euro traying this morning at 1.2716. gold prices look like they could push below 1,200 at this point. right thou, trading at $1,209.30 an ounce. hasbro clenched the rights for frozen dolls away from its rival mattel. disney said it will make the shift from hasbro to mattel in 2016. joining us right now is sean mcgowan. was this the steal of the century for hasbro? >> it was a pretty good move. obviously, frozen is hot now and it won't be as hot by the time they take over the license, but the rest of the disney princess

line is a substantial couple hundred million dollar piece of business. what happened behind the scenes? why did mattel lose it? >> i don't think it was anything that mattel was doing or not doing. i think it was probably more that disney felt like, hey, mattel, you have barbie and monster high, american girl, where do we fit in in that portfolio. hadbro, you have my little pony and littlest pet shop, but nothing that is clearly competitive with disney princess. so i think they felt more comfortable with somebody would with was going to give it a higher priority. >> and the disney princesses would be front and center for this company. >> i think that's the assumption. the irony is that hasbro does a couple action figures that are disney related, star wars and marvel. so it's not like there aren't some potential conflicts already in hasbro. but i think disney felt like on the girl side, hasbro would focus a little bit more. >> you have a full rating on

both of these stocks. does this change the equation for how you figure out your rating on either one of them? >> it does. and both of those ratings are related to some near term nervousness that i have about the toy sector. it's not shaping up to be a particularly good season. i would say this is a community deal, but not transformative for 2016. and a meaningful but not negative for mattel. so i would probably be a little bit more inclined to hasbro. >> what concerns you about this holiday season? what are you seeing early on? >> what we've seen so far is toys r us has had pretty good sales. they're a major customer. but a lot of that has been clearanced. there hasn't been any breakout hits. walmart has been a target. i don't think they've put the emphasis on the toy category as much. we have xbox 1, play station, disney infinity. a lot of electronic devices kids are flocking to. the traditional toy market

continues to be under pressure. >> we should know what the holiday season is going to look like. they have to have therefore shipments done. are you thinking many of these major retailers ordered less in terms of supplies going into this holiday season? >> i think that they've kept inventories pretty tight so far this year to try to allow themselves -- if there's a change. i don't think that retailers as a whole relike what they've seen so far from the consumer. there hasn't been a consistent, you know, uptick in consumer behavior. there's been some flashes of strength and then a pullback. i think the theme all year for retailers of a lot of varieties has been, you know, we would like to see some more strength. when they have that nervousness, they tend to get cautious. in the toy inventory, you can cancel orders at the last minute and for the manufacturers i think are taking a cautious approach to building. it could be if the consumer shows up, there may not be enough product. >> you know, you mentioned that if you're looking just at the near term, you still have mattel owning the rights to make disney

princesses and specifically frozen. there always seems to be one hot item or one hot toy that everybody has to get their hands on at the holiday season. could frozen dolls be that toy and could that be a silver lining, at least for the short-term, for mattel shares? >> yeah, i think that could help. it's one of the true bright spots. barbie has been weak, fisher price has been weak but frozen has been very strong. it caught everybody by such a surprise at the extent that there wasn't any surprise. it went through the first and second quarter not being able to keep up with demand. i think everyone girl that ricks the bell on halloween will be dressed up as anna and elsa or singing that song. you know, i think it's going to be a very hot property through the end of the year and into next year. >> sean, thanks for joining us. good talking to you the.

>> thank you. coming up, big media, big finance and big time sports. richard parsons is a part of it all. we're going to get his take on everything from media deals to the scandals starting at 7:00 a.m. eastern time. do they sound like harvey? and as we head to break, a quick check off what's happening in the european markets right now. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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welcome back, everyone. right now, time for the squawk planner. we have durable goods for august. then we have the key jobs reports. both those will be coming out at 8:00 eastern time. later today, the attorney general is expected to hold a

high level meeting in response to the ebola outbreak. we get results from nike, a dow component now. that is today's squawk planner. when "squawk box" comes back, we're going to be teeing up the ryder cup. the best golfers from the united states going head to head in this historic competition. the story lines that will drive the action on the greens of glenn eagle scotland, we'll have that story, coming up. right now, as we head to a break, check out the futures of yesterday's rally. "squawk box" will be right back. ameriprise asked people a simple question: in retirement, will you have enough money to live life on your terms? i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start building your confident retirement today.

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rider kip action, it's the first one in years without tiger. there's nothing to watch any more. >> stop the show. >> what was the last thing, the last hyperbole that he delivered for us. >> they don't do that here because joe is yelling at the cast. >> who is excited? >> what was that? because i'm what? >> base you're yelling at the guests coming up. but anyway, the ryder cup should be -- >> who? >> i'm yelling at him. >> they cut in on what? >> sometimes they show what happens in commercial breaks. we don't do that here. >> oh, oh, oh. i'm yelling at you because --

>> your producers are smart. >> there are too many things we can't show during the commercials. >> i was yelling at you because you were in on the complete hysteria surrounding roger goodell. but you guys happy to talk abou. but let's do talk about the ryder cup. the ryder cup is one of the greatest things happening in this game. the patriotism, the teamwork, the camaraderie, the fans are more involved. you could argue it is the greatest event in golf because it's different. it's different than anything else. >> i was watching golf channel yesterday and they went back to tony jacqueline in the '80s when it was nothing. and we had won every -- they started with inning in '85. then they really believed. in '87, they had the best golfers in the world. that's when they kept coming. now they've won seven out of nine. they kick our ass now consistently. >> a heavy favorite.

but that's kind of perfect when you look at this u.s. team. they'll ride that underdog wave. kids like rickie fowler. the guy shaved usa into his head. we actually have a better overall average ranking. there's rickie in the team usa right there. they might ride that underdog wave to a win, yes. first since 2008. >> he's one of golf's great hopes, obviously. there's a few of them that are going to be over there. now, it's in scotland. >> at glen eagles. >> i'm going to go check -- >> are we allowed to say where you are? >> i like to go and actually find things. i don't just report from afar. you know what i mean? >> you're the man on the street. >> i'm going over to scotland on this monday just to check out the courses and to compete. >> you will hate glen eagles. >> no. i'm going to dunn hill links.

>> this is all going to be broadcast live. >> you'll be able to watch. >> this will be broadcast. >> i'll be tuning in. this is the first time a european ryder cup is broadcast live. you can watch it all. it starts at 2:30 in the morning on friday morning, but you can get up early. but you can get up at 6:00 or 7:00 and watch it over your coffee if you're not watching "squawk." >> we'll definitely be updating it, obviously. and unlike friday or the first round of a major, there's not that much going on. it's interesting to see who shoots. if someone gets along early on here, it's harder to come back. >> but if they tie, they retain the cup. so the pressure's all on us to come out and make a statement. >> if they tie they retain? >> yeah. they've been dominant in this. >> it could be 14-14, but then it goes to -- yeah. >> and look.

they have the greatest ryder cup player of probably all time in ian poulter. if it comes down to him, forget about it. and our best player, jim furyk has been terrible in the ryder cup. second worst in u.s. history. that's a problem. >> he missed the putt last time. remember that? >> and they've seen hunter mahan miss a putt. yes. we're going to deep. >> that was the first one that got ugly and that's where the two teams really hated each other and you saw this is going to be a great thing to watch from now on. >> and look at phil mickelson's role. he's kind of the gel, kind of the guy that brings them together. keeps them light and loose. took a shot at rory mcilroy and mcdowell yesterday for a lawsuit going on between their two

management companies. said, you know, threw the first jab. >> so much gamesmanship started with game so he couldn't concentrate. it's not dirty. >> that's dirty. >> that's why the ryder cup is great. you get to see a different side. >> and you're not doing it for money either. you're doing it for pride and country. >> are we feeling good about derek jeter's final game at yankee stadium? 80% chance of showers in the bronx. that's why there's thousands of tickets still available for derek jeter's final game. >> what happens if it gets rained out? >> well, the baltimore orioles have already clinched a playoff spot? are they coming to new york on monday with nothing to achieve? i doubt it. >> where'd you grow up? >> i grew up in denver. and i lived in boston and i still appreciate derek jeter as a class act. >> i do too. i like him and appreciate it. but it's objectively.

i have no subjective love for jeter like i did with -- you know, when i would watch rhodes and they come up to the plate. i loved those guys. i was invested. jeter is great, but i also think the media -- new york all of a sudden it's a new york player and -- aren't there captains of other teams? how come you know him as the only captain in baseball? >> because he has five world series rings. he hit .308 in 200 post season games and .320 in seven world series. >> special circumstances. >> in the last two years only one does he have a single misstep. >> he'd party with everybody, but he knew how to go home and never push it to the point. he never got married so he never had those problems. >> brilliant. >> what do you mean brilliant never being married? now you sound like a dog. >> you said it.

>> i think it's brilliant not to get married. you're traveling all years, women throwing themselves at you. i'm no rock star. >> is your wife watching? >> i'm sure she is. and if i were a professional athlete, i wouldn't be married either. >> you're digging yourself in a little bit deeper. quiet, quiet. >> i know it's early, briggs. >> you are swimming and he's throwing bricks and you are taking them. >> you can still get in tonight for 300 bucks. >> you guys are whooping on roger. and now you're on. >> hey, o'reilly, we always agree that the games trump all. but it was a major problem. >> thank you. >> stick around. "squawk" will be right back. when change is in the air you see things in a whole new way.

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upsetting the apple card. apple is yanking its latest update for its operating system because it caused glitches. the bendable iphone not helping matters either. will the company be able to gain ground? steve ballmer unplugged. >> go clippers! >> the new owner of the l.a. clippers sat down to talk hoops and life away from microsoft. >> this is scarce property. this will appreciate. i expect to own this as long as i'm alive. the end of an era. >> number 2 derek jeter. number 2. >> derek jeter set to play his last game in pinstripes. the stadium will be rocking, weather permitting, of course. what's next for number 2?

the second hour of "squawk box" begins right now. ♪ good morning, everybody. welcome back to "squawk box" here on cnbc. i'm becky quick along with joe kernen. andrew is off today. our guest today. >> nice to see you. >> nice to see you too. >> oh, and joe. >> nice to see me. nice to see you, mr. parsons. thank you for joining us. we do have a lot to talk about. we just had a sports guy on and suddenly you are like a sports expert now. suddenly. right? we get to talk to you too. >> can you imagine? >> we'll talk about it in a second. they're moving us on again, but we'll talk about it in a second. >> first off, we are tracking drones this morning. we first heard about plans from amazon. now facebook is saying that remotely controlled planes could

bring internet access to everyone in the world. but these don't come without some problems. a plane the size of a 737 flying above being remotely controlled. we'll have the full story in a few minutes. we've also been watching the futures this morning. the s&p and the dow had their best days since august 18th. you could see there are moderate advances once again this morning with the futures up about 20%. also the 10-year note at this point is looking like it's yielding around what we've seen. >> steve ballmer, you heard of this guy ballmer? >> heard of him. >> well, the always outspoken former microsoft ceo has a new job. own ore -- owner of the clippers. josh lipton spoke to him. hey, josh. >> hey, joe. i sat down with ballmer in los angeles and asked him what made

him want to step in and buy this team and of course about that $2 billion price tag he paid. >> i always knew i wanted to have a chapter of my life post-microsoft. and i guess at least during the last several years when i've had the resources to think about i thought it would be really fun. and i was told it would be really fun for me to own a sports team. >> what do you think your contribution is going to be to this franchise? >> well, we will obviously doc rivers runs basketball operations. which is great. he's a tremendous talent. we will have somebody who runs the business side of this team. but i expect to be kind of an actively involved but delegating manager or leader, if you will. >> i'd imagine some clippers fans listen to this and say ballmer's not a california guy. are you promising fans this team is going to stay here in this city? >> yes.

the clippers are the l.a. clippers and they will remain the l.a. clippers. there's no question about that. i live in seattle. i will continue to li in seattle. i'll be down here a lot for a lot of games. >> are there lessons you learn as a microsoft ceo to bring to the clippers? >> absolutely. be hard core. be passionate. ideas matter. you have to have a strategy for what you want to do. where you're going is as important as the quality of your leadership to get there. there's an expression out of an old movie, relationships are like sharks. they move forward or they die. well, companies, teams, organizations, you're either improving and getting better or you are dying. so, yeah. i think there are some things that probably apply to sports too. >> you paid $2 billion. some thought you overpaid. how do you justify that price tag when you think about it? >> this will appreciate. i expect to own this as long as i'm alive, so we're talking

let's hope 25, 30 years, something like that. i would expect it to have capital appreciation that's at least as good or better than the s&p index fund and at the same time deliver dividend returns. >> if you're that optimistic about the prospects, would you have been willing to pay $3 billion then? >> i would be silent on that point. no one ever talks about what they would have done. i know i bid the most and bought the team. >> and of course i also asked him about taking the reins of the clippers from donald sterling. here's what he had to say about that. >> we had one meeting during the course of the, sort of the process if you will. perfectly nice meeting. obviously the matter still needed to be litigated between mr. and mrs. sterling and i'm just glad to be the owner today. >> what was it like to reach out to him? i imagine that was sensitive at the time?

>> well, we had made a deal. we had in place an agreement for me to buy the team. and i was kind of hoping we might be able to get things resolved for the litigation. that didn't work, but it was a perfectly civilized meeting. >> becky, joe, back to you guys. >> okay. >> that was a good interview. >> that was good, josh. thank you. we have a guest host that might know about this. dick parsons is the interim ceo of the clippers. you're like an expert in finance with dime and citi and then media time warner. now they needed someone with sports. let's get parsons. aren't there enough people around? how about that feinberg guy? every time they've got to divvy up money, he's the only guy that knows. are you the only guy that knows how to do anything in this country? how does this happen? do you call them? >> adam gave me a call.

we owned the hawks. we know something about ownership. in fact -- well, i won't go there right now. >> everybody that becomes a big success in business, sports just seems to be the next level ofr now that i've done this and i'm good at this, it's just fun and it's, you know, you can pretend you're still in business but you get to go to all the games. i mean, it's too good to be true, isn't it? it's almost like a broadcaster. >> it's the ultimate toy, in a sense. you remember lewis katz from new jersey? big philanthropist, great guy. >> oh, yeah. >> said in a commencement address once, when i was a kid i wanted to play in the nba. but i kept getting cut from every team i was on. i figured out the only way not to get cut is to buy the team. so it's a way to, you know, have your cake and eat it too. >> great. so do you think ballmer is just what the clippers needed?

>> i think ballmer is going to be a very good owner. i really do. he brings a ton of enthusiasm. and he's going to support the team. which is important. and all the team members sort of feel that. and by saying support the team, i don't mean just put financial resources in. he's going to be a super fan. he cares about the guys. he cares about winning. he cares about the fans. and they're going to feel the love. i think that's going to translate into a positive outcome. >> i think both you and ballmer, everybody is happy for the clippers. we kind of feel for the clippers. we want them to -- >> they went through a tough time. and it was inflicted on them. >> i used to live out there. they were going through a tough time then. >> for years. >> living in the shadow of the lakers. >> they were like abandoned children or abused children for years. now they've got an owner who believes in them, who's going to support them. who's going to put the dough on the table and bring the

enthusiasm. you know, i've said before i think this could well become america's team. >> and sterling, he's just got to -- i mean, $2 billion. it's like duh, shut up. put the lawyers away. like the guy in atlanta. look at the price the guy in atlanta got. he's like, i'm out at here. just give me my money. >> i think donald sterling, he is not living at the end of his life in his finest hour. let's put it that way. >> was part of the negotiations behind the scene was he wanted that lifetime ban revoke snd he wanted to be able to still attend if he wanted to? >> yes, but donald kept moving around in terms of what he wanted and whether he was -- at first he approved the sale. approved shelly selling the team. then he didn't approve the deal. he was having difficulty or at least the rest of us were having difficulty figuring out where he

was at any given time. >> you started to say something about the hawks. they're up for sale now. are you a potential interest? >> no, no he sold the hawks. >> you started to say something saying i'm not going to go there. what was that? >> we sold the hawks to the guy who is now having to sell them again. it's irony. >> is there a problem in the league? is this something where our society is changing faster and catching up with it? >> you know what? perceptive question. the line has moved in terms of what's appropriate and what's inappropriate. if you play up to the line, when the line moves you get caught off base sometimes. it didn't just happen in basketball. it's happening in other sports as you know right now. and so the leagues have to sort of take measure of where society is now. and get back on site. i think to his credit, adam

silver really sort of stepped up and set the high water mark in terms of, okay. new sheriff in town. times have changed. we're not tolerating certain things and will take tough action. and he did. >> people are writing in we're not espn. we know. it's just a couple minutes here. >> it's a huge business. you're talking about $2 billion that changed hands for the clippers to buy them. >> i'm going to have to -- i'm going to have to adopt the bucks. but i'll try to at least pull for you a little bit. are you actually involved? i just had a deja vu that i've asked you this before. you come in and there's automatically credibility, but are you going to be involved day-to-day? >> i was. my role, i asked adam for the interim ceo. my role is just during a transition period. >> you said you're thinking about me although i don't know that much about -- >> i put your name in.

steve's looking for a new leader. >> you know what? i would like to get paid by ballmer. >> you're never short of an opinion. >> that is true. that is true. >> you know what they say about opinions? >> but most people aren't right all the time. that's why they're not as good. well, we have a lot to talk about. we've got to talk media. that's something -- especially there's some info tout today about another company called time warner that comcast is interested in. >> fortunately dick is with us for the rest of the show. when we come back, we are going to be talking about changing the world with low cost affordable medical products for women and children in other countries. we'll look at the company's quest to save 1 million babies in the next five years. and what will the next five years look like for derek jeter? he might take a different course away from the football field. the next standing of "squawk box" is next.

welcome back to "squawk box." it's so cute too. little sleeping bag for babies. we're going to talk about it in a second. first, facebook is offering details on its plan to use solar powered drones to provide free wi-fi. the company wants to target the 2/3 of the world's population that lacks internet access. but facebook isn't using the term drone.

it's going with plane instead. that's because they will be roughly the size of a 747. yeah. i know. >> are you kidding? >> i know. >> and facebook says the plans could become a reality in the next three to five years. the only thing i'll say is, we had matt damon and and we know about water and access to sanitation and toilets in the developing world. and i do want all those people to be able to go on facebook and make friends and send pictures and everything, but shouldn't we do the water first so that people are safe? >> i could think of things we should do first. >> i don't have facebook. >> president clinton made a point this week that you need internet access to help people get access to jobs and beyond and education and that helps too. but you're right. water -- >> it's nice they want to bring facebook to developing countries. i think we have priorities that we're going to talk about right now. >> our change the world segment

today focuses on a company on a mission to create low cost affordable medical products for women and children in developing countries. embrace innovations has created the infant warmer. this is a product for premature babies. joining us right now is jane chen. thanks so much for being here. >> thanks for having me. >> this is a unique problem. when premature babies come in developing nations, they can't use i thincubatorsincubators. >> 3 million babies die within the first 23 days of their life. one of the problems they face is regulating their own temperature or staying warm. that's the function of an incubator. but they are expensive. in the u.s. they cost up to $20,000. they require a constant supply of electricity. you're not going to find them in these rural areas where many

babies are dying. >> so you developed an alternative. >> yes. this is the embrace infant warmer. it looks like a sleeping bag for ab infant. it's easy to sterilize. the core technology sits in the back. so this is a pouch of a wax-like substance. when melted and you can heat this either with a short burst of electricity or with boiling water. once this melts, it's able to maintain a constant temperature of 98 degrees fahrenheit for eight hours of a stretch. once it's melted, place this back into the pocket and that's it. it creates a warm, microenvironment for the infant. >> that's amazing technology. and how much is the cost for one of these? >> so this costs about $200. >> so you really think you can reach these goals? >> we hope so. we've reached close to 100,000

babies to date across ten countries. our focus is in india. we're also working in uganda, haiti, and afghanistan. with a recent gift from beyonce we're reaching into ten additional countries in ten months. >> is this based with philanthropic giving? >> we have a model that is profit and a nonprofit that sits side by side. so the nonprofit side donates these two the poorest areas and provides educational programs around infant mortality and the things that cause that. the for-profit licenses the non-profit. sales to paying entities like governments, for example. and all research and development is done by the for-profit side. so our vision on that side is to develop a line of affordable products to prevent infant and mother deaths. >> so if you can boil water, you

can use this. almost anybody can boil water in developing countries. >> why didn't we invent this? >> i'm sorry? >> why didn't we invent this? >> i know. it's true. i don't know why. the material, that's really neat that it stays at a constant 90 and it gives off heat. it's weird that it does that. what is that? >> basically it's changing phases from a solid to a liquid. when that's happening, it's giving off latent heat. so the phase change -- >> and that 90 is where it happens. and what's it made of? >> it's just a wax type of substance. very simple technology. but effective. we've seen a tremendous response from people on the ground who find this very easy to use. one of my favorite stories is an orphanage in china we started working with two years ago. we had just trained the staff on how to use the warmers. two days later they found a baby that was less than two pounds abandoned on a street. they brought him into the

orphanage and kept him in the warmer for 30 days. i went to visit seven months later, he was interactive and healthy. they told me it was the first time a baby of that side -- size survived in the orphanage. later we got a message from a family that adopted the baby. >> if you had a commercial use, you could fund the other -- i mean, when people are camping in really cold areas, do they use this in full size sleeping bags ever? >> well, there are other things. there are chemical warmers that are inexpensive. this one is special because it's a tight temperature raise. >> i guess a full size adult, if you could keep in your own body temperature, you don't need external heat. >> you can think of it like an electric blanket. so we are early next year launching a u.s. consumer version of the product that

we're really excited about. >> then you can fund the -- >> exactly. that will be used to subsidize our developing world work. >> it's phenomenal. thank you for coming in and showing this to us today. want to wish you the best of luck. >> thank you. coming up, the repo man goes high-tech. you don't want to be late on your car payments after seeing this story. "squawk box" will be back in just a moment. p breath in... and... exhale. aflac! and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep.

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our next story takes repo man to a new level. subprime lenders are remotely activating a device in a car when a borrower is late on a payment. it prevents the vehicle from starting. and the gps device also lets a

lender track a car's location and movements. the devices have been installed in about 2 million vehicles. >> 2 million vehicles have this in it? >> be aware. >> seems a little heartless. then you can't get to your job to make you get the paycheck to pay off. >> there's still a lot of subprime? >> it's growing. >> it is? >> in that area in consumer loans, yeah. >> why? >> because you can make money. >> all right. up next, we're going to talk about why one of the nation's largest pension funds is cutting out hedge funds. and apple taking some lumps. the bendable iphone 6 and glitches in the operating system. that's coming up in the next half hour of "squawk box."

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city leaders. nutrasweet plans to site increasing competition. and twitpic is shutting down today. they've been in a trademark dispute with twitter. the story about the los angeles hotels seeing their minimum wage raise to $15.37 an hour, what do you think of that? minimum wage debates around the country? >> i'm about to offend joe. >> okay. >> actually, for many years i thought that minimum wage was sort of contrary to market dictates. but it turns out that one of the reasons that we're having such an enormous sort of spread between the haves and have nots, it's not there's not money in the system, it's just not being pushed down far enough. and it's not that people aren't working hard. people are working harder at the lower ends than they did before. so i think actually, increasing minimum wage across the board is

going to do a lot for the overall economy. it's going to get more consumers going. it's going to reward work. it's going to pull in the fences a little bit in terms of the distance between the haves and have nots. so i'm for it. >> you know the numbers. i mean, i'm not opposed to it in terms of -- i mean, in general i think price control is going to make sense. it makes it harder for people in need of getting a job. all of a sudden some college kid or someone that may not be in as much need as somebody else is the one getting the increase. because what is it? 2% or 3% of the workforce and half of those people are young or it's a second job or whatever. whatever it is. or it's an entry level position when you're young to lead to something else. i mean, i just think it's a small thing to be spending so much time talking about when

what we really need are high paying jobs. >> high paying jobs, it's going to take awhile. that involves education and training, et cetera. like you, i tend to frown on programs that say, let's take from this one. and give to that one. >> if it was truly -- what's the earned income tax? something like that might make sense. >> here it's given to people who work hard. >> it'd be nice to pay everyone $60 an hour. it would. in l.a. it's going to be $15 and whatever. i bet you there's some weird locations that are counterproductive to what the law intended to do in l.a. right now. >> there have been some people who suggested just boosting the earned income credit as a way of rewarding people who are working hard. >> there are always going to be dislocations. there are no perfect solutions out here. so you can either focus on the

dislocations or the unintended consequence or look at the positives to be achieved. as i thought about it and read about it, it seems to me that increasing the minimum wage level just brings more people into the sort of functioning economy as opposed to people who are really actually working hard and still not able to -- >> you know the people against would say, okay, you've got across the fast food industry, let's count the number of jobs. you've got a million jobs at $10 an hour. so that's $10 million. go up to $12 an hour, and the companies are going to spend the same amount. so it's going to be 850,000 jobs. >> it doesn't really work that way. i mean, as you know i'm now sort of in the restaurant business. we have a lot of low end workers. you need a certain number of workers to produce your product or produce a service that you're selling.

it does mean you're paying more for the same. but you're taking it from others who can afford -- it's a way of balancing the scales. >> when they did the study on it that said it would -- whatever would get raised by $2 an hour. but 500,000 people would not have jobs. you take the minimum wage for those people go to zero while on other people, you know, it raises it a little but doesn't pull them out of -- >> i hear the argument. it's the zero sum game. if we increase the minimum wage, we reduce the number of workers. i don't think that's reality. >> what about raising minimum wage in different localities. it makes sense to me more on a state by state or city by city basis. >> what's the right number and how do you know it's the right

number? $15 too much? is $12 better? if it becomes self-defeating, that means there's always some degree of negative effect. >> there is no the number because it does depend on regional. when you start eliminating more jobs then you're creating more wealth. >> there are people who argue about unions as well. if you're in the union, it's great. but there are a lot of people that aren't in the union and sometimes you look at some of the unintended consequences of that too and a lot of people that are left out that don't get to join the party because they're not in the union. >> but what's happening to unions? it's because the market place is saying something. the market place is saying that the value proposition isn't what it was when the union movement got started and during its hay

day. we talked about line moving before in a different context. the line moves. >> there's a minimum wage, this is another one. minimum wage is a transfer of wealth from the middle class to the poor. that's not exactly the way we want to do things either. >> having spent some time in l.a. recently, i didn't see that many people standing at the peninsula. >> all right. but i resemble that you say i'm going to disagree with you on that. and i may sue you for defamation of character. >> he was right. >> no, he wasn't really. i give you the other side there. there is a legitimate argument on both sides. because well intentioned -- you know where well intentions many times lead. and you as well as anyone knows that. the investment community is

with the largest pension fund. calpers came on cnbc yesterday and explained why calpers decided to get out of that area. here's what he said. >> our investment portfolio is approximately $300 billion. our hedge fund program in stark contrast to that is quite small. it's $4 billion or a little over 1% of the overall portfolio. we conducted a thorough review of our portfolio and came to the conclusion at that scale it was just too small to have a meaningful impact on either our return or our diversification. >> joining us now donald lindsey, cio of the georgia washington university. you have some similar feelings that i think are aligned with what we just heard. >> absolutely. first let's put it in

perspective. hedge funds are just a way to get more expose sure to a wide array of equity strat yes. there is a great lack of capacity in this area. and so for a fund like calpers, exactly what was stated is the case. they cannot scale it up enough to make a difference in the overall program. >> after five years of this market and hedge funds are complex, they're expensive, a lot of times they don't even beat the averages. john vogel is preaching all you need is exposure to the indices just buy large caps. what about when you need a non-correlated asset? that you need something that could either insulate you if we had a two-year bear market or something? or something non-correlated with either commodities or stocks that would allow you to earn a return and a zero interest rate

environment. >> well, joe, correlation is an elusive concept. it tends to go away when you need it the most. and that's certainly the case with many hedge fund strat yes. not only that by what happens is the liquid any many of the underlying securities in the hedge fund programs, there's no market for them. there's no liquidity when the markets become stressed. so many times investors aren't getting the diversification they're looking for when they need it the most. i think right now in today's environment, the overall equity markets still offer considerable value. you want an active manager that can select the best securities in the best as the market becomes more and more overvalued. then i think there's some justification certainly this has

been the case for the last several years. >> if you could get in -- they're close. very best ones you can't get in. if you can get in to the top five guys, would you change your mind? that's also the problem. you don't know what you're getting a lot of times. >> i think there's a question of if you can get into the top hedge funds and i'd say 5% or less are worth investing. if you can get into those. and you can get transparency. you can get the underlying holdings. you can know what risks you're exposed to. that's very important. in hedge funds you're trading equity market risk for a wide array of other risks. but if you can get in and get the underlying holdings, if you can get transparency, then yes they can serve a purpose. but they're not scaleable. so the assets under management do make a big difference when you're thinking about adding hedge funds to your program.

>> all right. that's clear. thanks, don. appreciate it. >> thank you. >> so much for my hedge fund idea. >> it's interesting to me nobody mentioned value proposition. it was great during the last decade. after the bust, these funds aren't giving kind of returns prior to that in the area of sort of cheap credit. widely available credit. the valued proposition isn't there for many anymore. the last gentleman is right. if you can get the very best ones, they can still outperform and make a proposition. >> the problem is there's 8,000 hedge funds. literally. >> everybody that pushed out of the system from the big banks and from the investment banks, et cetera. what did they do? they turned around and said i'm a hedge fund. >> i got to read this now. you see the teleprompter?

up next -- do people out in missouri, do they just call jeter the captain? i mean, isn't this is new york term for him? because it's the local team. do i have to call him the captain when i'm a reds fan? why is he the captain? >> because it's the yankees. >> that's right. exactly. and a lot of times you say things without thinking about how people are going to respond. like you said earlier because they can make money. people are writing in, i love parsons he says because they can make money. you're right. i love derek jeter, i love him objectively. but i was never a yankee fan. anyway, derek jeter the captain getting ready to don the pinstripes the final time. and the path he's set to take once he hangs them up. i bet you he's going to be like a michael jordan-esque type of retired player wherever he goes. jordan loves him because jordan couldn't hit a fastball if his life depended on it.

>> he tried. >> plus blackberry taking the wraps off a new passport phone. aptly named because it's the same size as the passport. when fixed income experts work 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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yankees fans are paying world series prices for tickets to jeter's final home game, they may want to pay a poncho tonight as a nor'easter moves up the coast. let's get the forecast for tonight's game. alex wallace is at the weather channel. i looked at accuweather on my iphone which you don't have. >> i do have an iphone. >> i see this moving up. i don't know if i need you. i saw it onmy phone this thing moving up the coast. it's big. >> yeah. it is accurate. and no doubt we are watching it already on the radar. some of that rain moving in from the south. some steadier rains moving on this early morning. and for gametime, showers are still in the forecast. of course it's the o's and the yankees going at it. temps in the 50s. still a raw time. still showery. here's how it breaks down hour by hour. first pitch a little after 7:00 if we can get this. showers remain all the way through as we try to make aur

way through the latter inning. it is not looking too great to get this in for that last home game for jeter. guys, back to you. >> okay. alex, thank you. according to seat geek, the average cost of a ticket to tonight's big game has skyrocketed to more than 600 bucks. that was before we saw the weather. i think you can still get more for sale tonight because people think it's going to get washed out. >> if it's a world series price, that's as close as the yankees are going to get to the world series. so do it tonight. but there will be no world series. i know you think it's your birth right because you're a yankees fan. but it's not. steinbrenner is not -- >> it took you the entire week to come up with that, didn't it? >> you stole don. i'll never forget you. dominic chu is here. he has more on the business of jeter. >> the last time the yankees missed the playoff in

back-to-back years is '92-'93. there's thoughts jeter has played his final game yesterday afternoon. now, rain is expected all day which could lead to a rainout of his regularly scheduled home field finale tonight. that uncertainty has turned into one of the most expensive regular season games to get into in history. here's some of the numbers behind me. according to the secondary ticket search engine seat geek, the average sale price tonight through the course of this year is around $415 all season long. but if you were late to the party and just started trolling in the last day or so, it's going to cost more like 45% more. around 600 bucks. now, ticket iq says the cheapest ticket for tonight's game yesterday at $362. i just checked this morning. it's around $230 now. the most expensive one was close

to $10,000 yesterday. it's around $3,000 now. those numbers will fluctuate up to the opening pitch. here's the number i want you to focus on. what if tonight's game is totally rained out, not rescheduled. seat geek estimates 30,000 tickets for tonight's game have been sold on the secondary market. if you take that $415 average price, that would mean $12.5 million of market sales at stake here. so the weather outcome today worth millions to yankees fans and the yankees themselves. >> i never thought of that. those people are all just out of luck if that happens. >> yeah. that's a lot. >> dom, thank you. up next, iheadache. apple's new phones and operating system running into snags out of the gate. from the bendable phone to the ios 8. will this hurt in weeks to come? live report after the break. cute little guy, huh?

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welcome back, everybody. our guest host today is dick parsons. we've talked about a lot of things this morning, but we have not gettotten into the media at this point. there are media stories out there. i know you've thought about this. there's a story out there today about how comcast in its bid to go after time warner is fighting back. saying its rivals have been trying to extort it throughout this process. and when they don't get the

sweetheart deals they've gone to regulators and said you shouldn't allow this deal to happen. what do you think about it? >> this is not a new story. this is consistent with the practice in the industry since i was involved. in fact, part of my job -- every time we would announce a new deal when we did the turner deal, when we did the aol deal, my job was to go around and renegotiate all of our deals with all of our partners otherwise they'd pile up in washington. so it's a little bit of a, there's gambling in this place? >> but the idea comcast has called it extortion suggesting that they're just saying what's being happening for a long time. >> they're calling the game. but that goes on. and it's as i say, it reminds me of casablanca. >> i like to say you know what? even from some of the biggest complainers, they told us they'd siend off on the deal no problem if we could do this. now we didn't do -- now just

outing them. i kind of like this. >> listen to the numbers that add up on this. comcast said the programming requests cost alone from programmers who want more money to negotiate on those, that alone would have cost more than $5 billion in estimates in the coming year. adding more than $4 a month to customers' bills. $5 billion. are those the type of numbers you had to deal with too? >> you know, probably -- inflation adjusted, yes. you know b i see where you're coming from. at least they're calling it shedding light on this practice. but it's -- it's a battle that's gone on in the past and will continue to go on. it's the way the system works. >> does it influence the regulators' decisions? they're the ones that have to sign off on the deal. >> sure, it will. as the mail bags fill up, this is old washington adage. if the mail bags fill up, it's

an issue. if nobody says anything, it's not an issue. that's why this happens. and i guess, 'you know, comcast knows this was never going to be an easy path for them. this is a tough merger. >> i thought we had a minute. i thought we had a minute. i want to ask you about -- you still got friends at time warner? >> yes. >> did you take any satisfaction in them working for rupert. because i did. all those liberals working for rupert. i wanted that to happen so badly. >> first of all, he was going to trade out cnn. >> so that gets rid of half of them. >> but, you know, i know rupert. i love rupert. he's a good pal. but that was never going to happen. >> boy, i like watching them squirm though. we'll talk more about that coming up. more on media. dick parsons sounds off on some

of the big deals brewing at time warner. and we're going to talk content, netflix, and cable. and later, a shark tank success story the breathometer has topped $1 million in sales. we'll speak to the creator of the smart phone breathalyzer in a minute. you breathe into it and says that stinks. is it for alcohol or just bad breath? >> alcohol. >> that's putrid. there's all kinds of responses it can give you. "squawk box" will return after a break.

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why content is king. guest host and former time warner executive dick parsons is here. ford is revving up jobs. it's a first interview with the president to the americas and his plan to expand ford's manufacturing facility. and if you are tailgating this weekend, you may want to pick up a breathometer. >> in those moments when making smarter safer decisions are critical, breathometer is there. >> the shark tank success topping a $1 million in sales. we'll show you how to turn your smart phone into a breathalyzer. the happiest hour of "squawk box" begins right now.

a lot's changed, dick. a lot has changed. welcome back to "squawk box" here on cnbc, first in business worldwide. i'm here with dick parsons. i'm joe kernen along with becky quick. andrew ross sorkin is off. our guest host this morning former time warner chairman and ceo dick parsons who knew andrew when he was like 12, right? >> a little older. 15. >> you said he's gotten a little better since then about being a know it all. >> then sometimes i go back on that. >> he's just as bad as he was. i know. i know. there's a major new -- we miss him today. >> that's what he gets for not being here. >> i know. major computer bug floating around and it could affect apple's mac and lennox operating

systems. it could be more dangerous than the recent heartbleed bug. the latest bug could let hackers access and control a system remotely. in more technology news, blackberry unveiling its new blackberry passport. meantime, dealing with apple's new bugs and its ios operating system, also the negative press for the bendability of its new phone. joining us is jon fortt. jon, classic is not necessarily a word you should society with the state of our gadgets. you think they can pull this off? >> well, it's interesting. as you mention, we've got the black perry passport. that's what they just unveiled yesterday. it's wide. it's got a keyboard. kind of polarizing. the classic is meant to appeal to a slightly different audience that might not be willing to carry a weird looking phone. it's traditional design of the

blackberry. they have a few die hard fans that like that shape and look. so that's going to cost a little less. it's going to come out a little later. it's addressing a slightly different demographic. on to apple. with ios 8, with that subject you've got ios 8.0, .1. which didn't do good things to people's phones. rendered phone calls. basically you couldn't make them. also caused some other problems with touch id. people have numerous problems downloading that update. apple has pulled it. and there is a way to recover what you had on your phone and go back to regular ios 8. they're no longer pushing out that update. they're expected to come out with another one later. if you're looking at this and handicapping what's the effect on apple, it might make people trust ios updates less. it's unclear there's any bigger impact beyond that. consumer reports is looking into

this which is a good thing. they have said that they're going to test using their equipment to see if there really is a structural integrity problem with the iphone 6 plus. i've got a hard cover book right here. it's 165 pages. this is the amount of pressure i need to kind of bend this book. all right. i'm going to apply that same amount of pressure to the iphone 6 plus. it's not bending. so i don't know what people are doing to these phones to get them to bend, but if you're putting them in your back pocket and sitting on concrete, news flash. that's not wise to do with a $750 piece of equipment. i can't imagine this really bending in a front pocket in normal use. but we'll find out when consumer reports coming out with its analysis. >> what has apple said about this? about just the bending itself? >> apple has said that they are looking into it on support calls

that other media outlets have reported say they're dedicating a lot of attention to this issue. this is the sort of thing apple does tend to take seriously. i'm telling you. i don't see why anybody would apply more pressure than that to a phone. do you bend hard cover books like this? we don't. that's not something you should do everything. >> but if you accidentally sit on it, i could see that being an issue. >> any phone cracks when you do that, right? i don't see why that's news. >> was that an anti-fracking book you picked up. >> you mean you didn't write this? it was the only book that was -- >> the energy revolution. our input costs for manufacturing are going to be lower. world power again from it. you find the one book that says fracking is bad. you and matt damon. thanks. >> it's the only book sitting upstairs that was the same width as the iphone 6 plus. i was looking for a hard cover

book. >> almighty. yeah, i saw that, the guy doing that. it was like, don't do that. the guy with the iphone. it's like, here's a little instructional tape. do not do this. >> his hands are shaking when he does it. >> but if you drop an iphone from eight feet on concrete, that's not good either, right? >> that's what i hear. >> i broke one of my phones earlier this week. it was not the iphone. >> well, all i know from this report is i want to get to the fracking truth about fracking, jon. thank you. >> thank you, jon. >> no problem. >> can you believe he found that? >> i mean, really. really. you call this enlightened television? >> you signed up for this. >> i don't see any -- you're not strapped in. >> more and more sports networks are getting added to the dial. the broadcast networks which keep getting written off as

dying are still bringing in big numbers as the new fall season gets underway. who's going to win this battle for supremacy when it comes to audiences and where are the deals and the dollars going? brett harris is media and entertainment analyst. he joins us with more on this. and our guest host dick parsons is here as well. brett, welcome to the table this morning. >> thanks for having me. >> we talk all the time about how content is king. that sports is maybe the one thing that can still make people watch live television. what does it add up to? >> i think you're seeing a secular increase in the demand for content across the board. that's driven by a couple things. people are watching more television because of the prevalence of on-demand options. there's more competition for programming within the u.s. as we see more distributors. in the old days there was just broadcast networks. then cable came along. then satellite came. then over the top providers which is netflix. you're going to have a whole new

slew of competitors entering. so there's more competition in the u.s. for content. then you have the global growth in the middle class and one of the first things you do when you join the middle class, you buy a pay tv subscription. we're exporting more tv across the world. so there's this huge demand for content which is driving the value of the companies you mentioned. >> sometimes it's hard to get paid or get credit for some of that. television ratings are down across the board because you don't always get credit for the binge watching that people do. is that a problem for some of the old companies on that? >> it's a big problem. i'm looking at a headline here. content is king. this has been a debate for 30 years now. right? and i wish i had had said it but i have to give credit to my old boss jerry who said content may

be king but distribution is the power behind the throne. even with all of these othver t top threats coming, et cetera. how you get the content distributed, how widely you can get it distributed, that's still going to be in my opinion the driver of value. >> so when you look at this, bre brett, how do you figure out who the winners and losers are? >> you can make the content but you still need to distribute it as you said. you need a distribution network. those companies that both produce and distribute through cable networks their content. they can make the content and also make it popular. so the large content conglomerates, fox, time warner, cbs all have both of those. the distribution platform as well as the assets which make them valuable today. >> we talked earlier about the battle that comcast is facing right now in its bid to take

over time warner cable. the story being that comcast is saying its business partners and rivals are basically extorting it to try to get better bargains as they head up so they don't go before regulators and oppose this deal. >> they're right. there's more competition for content. it's much easier to change out if you're a comcast subscriber, you have more options today. typically there are between three or four bundles. you have your local cable and in the big markets the telecom providers. the cable networks know this which is why they can increase their prices and you're seeing margin dollars shift from these distributors to the actual cable networks. >> where do you -- do you have access to xfinity? >> i've had access -- >> the new xfinity x-1? i have the latest box. i'm going to sound like a homer

again. but it is the most advanced technology in terms of -- you just press xfinity. you don't need a universal remote. it does everything. have you seen it? >> it's fantastic. >> is it not absolutely the on demand and everything? >> we talk about netflix as a fantastic product. the reason netflix is a fantastic product is it's got a good user interface. >> you should come over just to see how this -- >> i may check it out. where does this get us when you start looking at the nfl, at some of the major leagues? that's where money still is. that's where you can get a live crowd. >> absolutely. sports has become the most important content on television. that's for a couple reasons. first, it's the only thing people still watch live. which makes advertising more valuable. and lastly, it's fans that watch it and fans are fanatics. if you turn it off, fans go nuts which we've seen in a number of

instances. so there's price -- >> time warner cable in particular. you were pulling your punches. >> so that's why, you know, that's why espn can get $6 per sub per month because of that engagement with their fans. >> you've still got fios. >> comcast doesn't exist in my neighborhood. >> you heard going to paris and going back to -- you're going back to like the worst did -- >> i'm okay with it. i don't like cable vision. >> you know what joe? the reason that people only get excited about whatever the new technology is and says it's so much better. >> you haven't seen it yet. >> i've seen it. >> an x-1 box? >> incumbency is a powerful thing. it's going to take a long time for people to give up what they have that works to grab something new because it's better. >> let me tell you this. if i am sitting there watching -- if there's a letters

and numbers, if you hit in three letters of whatever it is you want to watch, it comes up in a little box here and you press it there. that's all you need to do to go anywhere. you don't have to go to search. you just put in the first three letters of whatever. it's incredible. anyway, thank you. jon fortt's right. great minds think alike. everybody's claiming that term, the fracking truth. what he held up is a book about how all of the myths and lies about fracking, it's actually going to be a revolution. so his was appropriate. but there's a whole dot-org about how bad fracking is going to be. so everybody's claiming that term. so the one he held up apparently was not from andrew's desk. it was -- >> from your desk. >> exactly. when we come back this morning, boaford expanding production.

phil lebeau has that after the break. and what steve ballmer learned from pete carroll. josh talked with him about leadership. that interview is just ahead. "squawk box" will be right back. ? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor. "hello. you can go ahead and "have a nice flight."re." ♪ music plays ♪ music plays

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welcome back to "squawk box," everybody. in the futures this morning, they've been mixed throughout most of the session. this comes after gains yesterday where the dow was up by about 150 points. things are mixed this morning. we'll see where things take off from here. among our stocks to watch this morning, jabil shares getting a boost after the electronics maker forecast strong earnings. the iphone 6. they make cases for that device. ford announcing an expansion at the plant that produces the f-150 and the transit connect. phil lebeau joins us now with a special guest. >> hey, joe. let's bring in joe henriks. you guys are adding 1200 jobs. we talked about this before. this continues to be adding shifts, adding jobs because of

increased demand not only for transit but for your other vehicles as well. >> that's right, phil. we're so excited to be adding the shifts which now takes our total add of jobs since 2011 to 14,000 manufacturing jobs here in the united states. >> and that surpasses what you told the uaw you would add by 2015. but that also raises the question a number of people on wall street have when you look at ford and the other automakers. you now have a plant at three shifts. is it time for us to perhaps say you know what? we think that we're going b to see sustained demand over the next year or two of greater than 16.5 million or 17 million vehicles? >> well, phil, we've been utilizing much of our crew that lets us leverage those assets. but we've been squeezing out production in some of our plants

where the demand is. because we're working together finding ways like adding a shift here and increasing line rates or working through breaks to add more capacity. >> to get back to my question, does that mean we need to look at this industry and and perhaps reimagine what we expect demand to be over the next few years? is 17 million going to be the average run rate in the u.s. let's say through 2017, 2018? >> some think it could be close to 18 million. we are forecasting next year it can be over 17 million. and we're preparing for that. we'll have to see how interest rates grow and how the economy and housing market goes. but we believe the potential can go above 17 million. >> how concerned are you about the rises prices.

obviously you want to sell your vehicles for as much money as possible. but you have the average transaction price of greater than $32,000 per vehicle. a number of people are saying it's going to be unsustainable to a certain extent because you have people saying i want the lowest monthly payment possible for a new vehicle. you can't get much higher in terms of those transaction prices. >> we certainly watch that very carefully and are concerned about it. a lot of new technology going in these vehicles. more importantly the operating costs are getting better. people are willing to pay up for those special services and those attributes. so we believe there's still upside especially on suvs and trucks because people are demanding more content, more capability. but we're going to watch it very carefully. as interest rates rise, that will be a bigger part of the equation. >> joe, one last question.

what's the thing consumers are willing to pay up to add to their vehicle? whether it's a truck or car or whatever it might be. >> well, fuel economy is certainly an important part of pit. they're looking for more of the new technology that i think brbs the world around them into their car and they accessibility to the world outside the car as well. >> joe hinrichs joins us in missouri one other note from you. we just received word from chrysler that it will be increasing production for its ram pickup trucks at its michigan plant adding another 38,000 annually in production. this is what we're seeing in the industry across the board. everybody is trying to add jobs and add shifts here in the united states. >> probably especially with trucks as you watch gas prices fall, too, phil. >> absolutely. that's a huge driver right there. >> phil, thank you very much. when we come back this morning, monitoring your alcohol

consumption with your smart phone. the breathometer transforms your device into a breathalyzer in second. the creator of the device featured on "shark tank" will join us in a bit. up next, fighting mosquitoes with mosquitoes. how scientists are pitting insects against their own kind to wipe out a disease. "squawk box" will be right back. you know what my business philosophy is, reynolds? no. not exactly. to attain success, one must project success. that's why we use fedex one rate. their flatrate shipping. exactly.

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welcome back to "squawk box," everybody. scientists in brazil released a batch of mosquitoes carrying a bacteria they hope will combat the dengue fever. they carry the walbachia bacteria. scientists hope the bacteria will be passed through generations of mosquito's and wipe out the ability for them to spread dengue. 390 million people contract that disease every year. coming up, breaking news. you hear 390 and that really scares you about other potential diseases. jobless claims and durable goods orders. the weekend is just around the corner. you may be getting ready for a party. a ryder cup party. maybe some tailgating before your watch what's going to come off in scotland. doing a bit of boozing, perhaps?

i'm still drinking from last -- the ryder cup two years ago. it's better to be safe than sorry. one device will turn your smart phone into a breathalyzer. we're going to speak to the creator of the breathometer in just a bit. they ought to have an app whether it's bad too. not just alcohol. also look at equity futures. we needed 30 new hires for our call center. i'm spending too much time hiring

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welcome back, everybody. harvard university is growing to more than $36 billion in the fiscal year that ended in june. the largers endowment had 54%. it's now approaching its pre-crisis record high. harvard also announcing that steven blithe will be replacing jane mandillo after she retires. a lot of drone news this morning. it sounds like every morning. every morning there's a lot of droning from where i'm sitting. the government report -- but this is a different drone. government reportedly going to allow seven movie and tv

companies to use commercial drone flights for filming inside closed sets as early as today. so think about what you were unable to do or how expensive it would have been before to get those shots. >> helicopter shot. >> things like that. so far the faa has allowed limited use of drone use. so this is new in terms of that were for doing it in -- this is totally an optional -- i mean, there's other things that seem important, but this is to get us things that are cooler to watch, right? >> right. there's been problems with drones already sent out by news crews, documentary crews. there have been some pushback against that. >> this is on a closed set. come back! oh, no! could that happen? >> sure. >> anything could happen, right? anyway, we are just seconds away from jobless claims data in durable goods. we've been watching the futures ahead of that. it has been a mixed market this morning.

actually right now everything is a little bit lower, but just barely. dow future down by five points. s&p down by three points. look at the 10-year note. around 2.54%. let's get to rick santelli. he's standing by in chicago. >> let's start out with initial jobless claims. they moved up 12,000 from a very low 281,000 to 293,000. i'm not sure how much that's going to move markets. let's get to the meat of the market. a record negative month over month change. down 18.2%. going back to the beginning of this series, the old record was down close to 14% in 2000. but to be fair, the 22.6 last month now downgraded just a smidge to 22.5 is the record all-time highest month over month change. one in one direction, one in

another. let's get beyond the headlines, shall we? if we take out transportation, we're out .7. that's not a bad number. when you contrast it with the revised down .5 on this point last month. of course you can see improvement. now, here's where it's gets interesting. if we look at new capital goods shipment, nondefense, aircraft. that's way lighter than last month's 1.9. if we go to shipments to orders, the orders component is up much more solid. contrast that with with the look down to .5. no matter how you slice it, this isn't bad data when you get down to the granular side. shipments, even if they go to zero i don't know what that tells me. at this point it's whether they get back up towards 350,000 at least in my opinion. becky's right. 2.54 on a 10-year, two sessions ago with had a low.

rates popped only to moderate. basically extended the range. low to high at 25 basis point extension. what used to be 340-ish is now 265. and that seems to be the biggest resistance. if you really want to know what's going on with the credit markets, watch 5-year notes. 1.85 from september last year's high yield close. and that is the marker. we need to take that out to get a renewed effort to the sell side in the fixed income markets. back to you, gang. >> all right. >> all right, rick. thanks. for more on the state of the global economy, we're going to speak now to former chairman of citi group dick parsons. don't act like you can't talk about it. you can do sports, finance, media. now i need to know about the global economy. how is it? >> we'll start with u.s. i think the u.s. economy is continuing to improve. it's fundamentally -- that was a mixed bag you just heard, but it's fundamentally

strengthening. not as fast as some people would like particularly with elections coming up, but i think the u.s. economy is basically recovering, getting stronger. europe to me is still a puzzle. i don't get it. i don't get it. i don't see almost any signs of good news from europe. the euro holds up and people talk positively. basically paying you to give them money now rates are sort of in negative ter our or you've got to pay them. i think europe is still a big question mark. >> you sound puzzled about that. i would say now is a good time for you to get a first hand look at some of the things that are happeni happening. >> house of wine business. >> got to pick grapes.

>> do you question the realness of it because of the fed? >> no. you know, i think the fed a we had this conversation before. i give a b-plus. the negative is they've inflated the balance sheet to the point where nobody quite knows how they're going to wind that down the road. but they really effectively serviced what -- when i think of the economy, they have the wealthy, the middle class, the lower income folks. they've made the cost of the inflated assets which is good

for people who have assets. they've reduced the cost of debt for people who, you know, are homeowners. so the housing markets are coming back. and for the lower income may actually have been available at much, much cheaper rates. so that everybody in a sense, all the consumers -- this is a consumer driven economy have some benefit out of the fed policy. >> they've also really played with inequality. the rich have gotten a lot richer. >> that's true around the world though. that's a whole different debate. but it's okay for the rich to get richer if the poor also get lifted up. that's why i've reversed my only personal view on minimum wage. we've got to pound more money down there to lift the poor. the money is there in the system. just the rich getting richer isn't in itself a bad thing. but we've got to make sure the

bottom gets lifted up as well. >> i can remember where i came around to that thinking. where you look at how well -- for example, you look at how well walmart shafrlds have done in the past five years. then you think we want to maximize profits for companies, for shareholders and they have done well. maybe there's a time where you push like you said push some of it down to the people that are actually involved with generating those results by the people that are on the low end. i can see how that -- i just always worry about the unintended consequences. people say corporations are doing great. at least in terms of keeping expenses under control. to say the way they have it for the long-term. and they should because interest rates are zero. has there been an income statement recovery or balance sheet recovery? >> i think on the private si

side -- even the balance sheet, guys are holding cash. why? because they're still not certain where things are going, right? where we haven't invested is nationally. you know, our government. now is the time we really should be -- i mean we should be doing all this stuff. >> infrastructure. >> infrastructure and educational training. it's really more of a political issue. but they're going to be stamped out. i mean, the politics is just all against inversions. >> when will we lower our corporate tax rate? >> if i had to guess, some time in the next two, three years. it's going to take awhile to get that coalition put together. in the meantime, they're chipping away -- by definition,

a different president. >> it's going to take a different president to do it. >> i think it's going to take a lot of different people. well, the president will change. >> you couldn't talk republicans into getting rid of the way we do this with the territorial tax and also to lower the rate? you could talk them into that. clinton -- that's what we were just talking about. i bet you clinton right now could get it done. unfortunately he's not president anymore. or fortunately depending on your point of view. >> you've been watching. >> i'm learning, joe. he's been an extraordinary former president, that's for sure. this guy has -- but i also thought that he was elected too soon. he was too young. if he knew then what he knows now, he would have been off the chart. i think obama has lots of other challenges and this isn't going to take top priority. so they're chipping away at the

edges. but governments not just here are going to get on this inversion thing and kick it to the curb ultimately. >> it's possible. got to start coming to grips with that possibility. >> it's probably the most likely. >> we'll see. people say there's a difference between buyers remorse and being able to win. all right. dick will be with us for the rest of the show. >> up next, though, a "shark tank" winner turns a tv appearance into a massive success. a device that turns your smartphone into a breathalyzer. and take part in our "squawk" poll. log onto vote.cnbc.com and vote.

what we're asking today is, would you buy a breathometer? the polls open after the break. "squawk box" will be right back. e can mean lower returns and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today.

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today today today and everyday. call today, for an appointment today. welcome back, everybody. our next guest created a smartphone app to plug in to tell you if you've had too much to get behind the wheel. it's called the breathometer. and the owner went on "shark tank" to invest.

joining us right now with an update on how the business is going and how the sharks are helping him is charles michael yen. would you buy a breathometer, viewers? log onto cnbc.com/vote and cast your vote. the polls are open right now. but charles, it's great to see you again. thank you for coming back in. >> great to see you too. >> tell us what happened since march when we saw you last. >> the last time i was here i demoed this for you. >> show everybody how it works. >> quick demo. we are both a device like so. it's only $50 retail direct and online. at the same time the app you can download ios and android. plug it in through the audio jack. it takes about a sect for it to pair and recognize. so once that happens all you need to do is hit this big blue start button. they ask you has it been 20 minutes since you last drank to take an accurate reading.

it warms up the sensor. it takes roughly 30 seconds to heat up. in the meantime it has a screen to go ahead -- >> you can have a drink. >> -- it can coach you in terms how to breathe. a two inches from the blowhole. you don't have to put your lips on it. so you don't have to worry about hygiene. very different from any breathalyzer that's out there. and the main thing here is it's meant to basically go ahead and take an estimate of your blood alcohol. and our stance on it is if you have anything to drink in your blood above do not drive. you breathe like so. and i have not had a drink today. so as you can see i'm .00. more interesting, they have a back to zero feature that can estimate how long in hours and minutes it will take you to sober back up to zero. >> oh, wow. >> so if you've been at a dinner

party, what have you. it's basically again, it's right on the line of do not drink and drive. >> so you need to -- i was sitting here thinking how do you market this. because it sounds like you're enabling people to drink up to the point they wouldn't get the dui. but you know people are going to drink no matter what. and they're not all going to get someone to drive them home. so this is a way to measure when you're able to safely drive again. based on this. >> sure. >> that's how you market it. you can't market it the other way. like we can get you right to a .0079 and then you drink up to the edge and go. >> exactly right. and even more so, we actually have tapped into lyft and also uber. if you're at the point of no return, you can push a button and we can tell you what the rate fare would be for uber or lyft and will be with you in a matter of minutes. >> you're at the point of no return if you register anything than double zero.

>> in our stance, correct. if you had a long day and had a party and food and drinks. now do you know if you're literally .02? there have been attorneys that have had one beer or beer and a half and they started driving around the corner and they've gotten a dwi. it's not for the ones that have had five or six drinks. it's are you basically on the fence -- >> can't do this with cannabis, right? >> actually, we can. >> i get worried about that. seriously. how many under the influence drivers are in colorado right now that you have no idea. you don't smell it on their breath. >> right. it's an emerging market, right? and to that point, so the next set of products for the next upcoming year. we're releasing three products that are unrelated to alcohol. >> pot must be one of them. >> can't say just yet, but from a high level, we're working with key institutions. in fact, we're partnered with stanford university in particular.

we're part of their medical program. but you can range from lung cancer with about roughly 90% accuracy rate right now to diabetes which we're working on. as well as asthma and other things that are related. so our next couple apps are completely unrelated to alcohol. it was great to start off with alcohol because it's a market that's well understood. and we wanted to generate revenue off the bat. caught the attention of all the sharks, but moving forward we want to build a massive breath analysis platform. that's what we intend to do. >> we would love you to come back and tell us about the other platforms. it's interesting looking at the diseases down the road. >> i would love to demo those products. >> charles, thank you for joining us today. >> thank you. >> if you want to catch more "shark tank" see the show on cnbc five nights a week. check that out. coming up, dick parsons gives advice to steve ballmer as new owner of the l.a. clippers.

and a programming note. tomorrow's "squawk box" will be live in nantucket. andrew will have exclusive interviews with former barclays ceo bob diamond, barry sternlicht and former treasury secretary larry summers. i once knew a girl in nantucket. >> stop. while every business is unique,

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with pg&e's business energy check-up. welcome back to "squawk box." steve ballmer sitting down with josh lipton to talk about his new job as owner of los angeles clippers. let's take a look at the advice he was given. >> there are a lot of people who can and teach you, inform you, coach you up. adam silver. that's been great. paul allen, mark cuban. dan gilbert owns the cavaliers, another detroit guy like i am. pete carroll who is my neighbor and coaches the seahawks. john schneider, they had me in the seahawks camp. >> you sought coach carroll's advice before, right?

>> yeah. we know pete reasonably well because he is a neighbor and he's got both my wife and i separately involved in not-for-profit stuff, but yeah. this one specifically, he said, hey, would be glad to explain how we do it. though just won a championship so i was super interested. >> i imagine some clippers' fans are going to say ballmer is not a california guy. are you promising fans this team is going to stay here in this city? >> yes. the clippers are the l.a. clippers and they will remain the l.a. clippers. there is no question about that. i live in seattle. i will continue to live in seattle. i'll be down here a lot for a lot of games. >> dick parsons is our guest host. he happens to be ceo of l.a. clippers. what advice would you give to steve? >> first of all, as i already said, steve is going to be a breath of fresh air. he is going to be good for the clippers, i believe.

he's going to be good for the nba. he loves game and is full of enthusiasm. one thing i said to steve though. a, be authentic. you should come from authenticity. he is going to be authentic. be yourself. don't try to figure out what's this market and how i do act in this market? be authentic. two, there is an old adage someone told me years ago. i think it applies across the leadership spectrum whether it's sports or business. good leaders get other people to believe in them. great leaders get people to believe in themselves. that's going to be his challenge. get that team to believe they can win. they can do it. get the coaches to believe, we can get our guys there get the fans to believe. we can make it. then support that. >> i know you came in at a period of crisis and turmoil there, but have you enjoyed it? >> it's been interesting. very it's been very interesting. i watch my grandson play with

legos. he'll sit there and won't crack a smile for two hours putting these things together. when it's done, the smile comes on his face. mission accomplished. in that sense, i've enjoyed it. i was a transitional guy just to get them from where they were at the beginning of the summer to where they are now. >> it sounds like you are about to smile. >> i'm good. >> we'll be back. midterms? we may need to talk nfl, what you would have done. did we already talk about that? later on "squawk on the street," ballmer gives his report card on his successor. and dick parsons what he is expecting in washington. chasinge can mean lower returns and fewer choices in retirement.

know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today. "hello. you can go ahead and "have a nice flight."re."

♪ music plays ♪ music plays traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the fewest cancellations and the most on-time flights are nothing if we can't get your things there, too. it's no wonder more people choose delta than any other airline. there's a difference when you trade with fidelity. one you won't find anywhere else.

one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. let's get back to our guest host dick parsons. we are supposed to talk about the mid terms. that begs a question, do you think the senate goes to the gop? >> i don't think so. consensus view among the pundits is it will. i don't think so.

>> would it matter either way? >> not really. i don't believe. >> because? >> we are in a state of gridlock. you can't get anything through the congress anyway because one side or the other. i'm not going to point fingers. if you had republicans controlling the senate and house and democrat in the white house, i think we'll still be in a period of gridlock. >> as a republican -- outing you again -- are there things you want congress to pass obama has proposed? >> you know what? i think that's the wrong question. >> sorry. >> in my opinion. >> okay. >> there are things that need to be addressed that the government needs to be addressed, which means people have to sit down and figure it out and do what politicians are supposed to do, reach balanced and effective compromise. for example, immigration.

when are we going to get after this thing? it's a serious, serious issue. >> you know why we didn't before the elections. >> well, because it's like to make any sale you need a willing seller and willing buyer. you need two hands to clap. you need both parties to figure out that the issue is bigger than the ideology. to work through to a solution. we don't have that right now. >> i never thought about that. what is the sound of one hand clapping. >> exactly. >> will we have that in two years, dick, do you think? >> i hope. i hope. because we are paralyzed right now. the world is moving. we are not keeping up. >> dick, we want to thank you very much for joining us today. it's been a pleasure having you here. >> it's always fun to be with you. even with joe. >> very funny. do you need a man servant to go with you? i would carry your -- can you

put your jacket on yourself? >> you know what? i've been looking at those hands. those are soft hands. those are not the hands of a working man. >> you should see me work these keyboards. >> that's right. i need a strong body, weak mind. >> there you go. perfect guy. dick, thank you very much. that does it for us. right now it's time for "squawk on the street." ♪ everybody dance now good thursday morning. welcome to "squawk on the street." i'm carla quintanilla with simon hobbs at the new york stock exchange. jim and dave are off today. stocks easing off from the premarket bounce yesterday. best day for the market since july and best for the dow and s&p since the middle of au.