the democrats favorite day as 2014, "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. joe kernen doing the math on when tax day is going to be and where we are. joe kernen is here. i'm here. becky quick, she will be here. she's going to join us in about a half an hour. she has the newsmaker of the morning. she will be interviewing blackro blackrock's chairman and ceo larry fink. he's going to be discussing his company's latest results. plus, give us his take on the markets, the fed, the economy and geopolitics and much, much more. if there's one guy out there these days that you want to hear from auto on a day like today, it is mr. fink. >> in the meantime were going to get to markets. not a great way to wake up this morning. a second health care worker now in texas has tested positive for ebola. the worker was among those who

took care of thomas eric duncan at that texas health presbyterian hospital. duncan later died. the latest health care worker reported a fever just yesterday, was immediately isolated at the hospital. joining us now, meg turrell. meg. >> hey, andrew. that's right. we're just getting word, of course, for this additional health care worker who just tested positive last night. the cdc saying yesterday they're monitoring every person who was in contact with thomas eric duncan during his care because the nurse who originally tested positive was exposed. others could have been, as well. they were warning about this. they were monitoring about 76 people would they say had cac in the hospital. this was pretty quick news that a second person has been diagnosed with ebola. again, saying that they're not surprised. they haven't yet identified

exactly what happened, how they became infected. there's a lot of questions about that. the cdc saying they sent another team to the hospital in dallas. they wp wish they had sent that team there at the beginning and perhaps we wouldn't be seeing these additional infections of health care workers. meg, a couple questions. first, this worker, do do we know what this person did in particular, what they were touching that may have been different. >> we don't have any details about what the health care worker did yet. >> i imagine they go home and they have families and they have friends and they go to dinner and lunch and things and have been around others, as well.

>> presumably, that's true. all of the health care workers were instructed to self-monitor. but, of course, we're out and about. as we know, ebola isn't contagious unless you have symptoms and she just reported having a severe yesterday. >> not surprise. that's disengenui eingenuous if saying thee not surprised. because the first health care worker supposedly followed protocol with the suit and everything else. that surprised them. they immediately said, there has to be a break youp in the protocol. it's surprising and disconcerting to me because now i don't know what we can believe. >> well, i agree with you. i think everybody is disconcerted by this.

this is something that was expected if there was a breach in protocol. >> sounds like their protocol -- maybe there wasn't a protocol. i'm hearing more .more, and this is before this latest patient, but just around the twitter sphere and cable and everything else about this cdc director that at some point his support is slowly crumbling in terms of whether he's really been that effective so far. are you hearing any calls for frieden to go? >> i haven't heard that directly. there was a hearing tomorrow in washington. dr. frieden is testifying as well as other folks. >> there will be a lot of questions there. i think the criticisms that we've been hearing a lot about the cdc is they deferred too much to the local hospital and

state. they needed to take more control. they say they have new measures in place, that they'll send it to you immediately within hours if there are any more kaes cases in the u.s. obviously that didn't contain the spread in dallas. >> meg, we will be speaking to you throughout the day and throughout the broadcast. thanks for that report. back to the markets, now on a four-day losing streak. quite a day yesterday. up a hundred, down a hundred. finally it faded into the close. i don't think this news was out at that point, but i'm telling you, andrew, this news, it's hard for the markets to go up as long as people keep coming down with fevers and testing positive for ebola. >> there's something who -- 10,000 a week. >> yesterday we talked about the costs of ebola and the estimates

that have been put together. those estimates were a worst case scenario 20,000 people. sorry, best case scenario, 20,000. worst case 200,000 people. >> we talked already and i asked you about keeping west africans out. we're going the start hearing an increasing number of people saying instead of just trying to monitor who comes in and pointing a temperature, a thermometer at them, they're going to just say -- how far? >> i don't know what i'm supposed to think. >> the argument, andrew, is that somehow they'll be less able to handle it over there if we -- i don't think that holds water. you sent charter, you send the military over through charter pes that's the way you should do

it because then you can monitor when they go and when they come back. why do you node to use the commercial -- >> you say you bring in people by charter? >> yeah. >> didn't rare france already stop? >> i think there have been places. >> we just don't agree on anything. >> i could come out on the other side of this. >> you're not sure? did you vote for obama? are you going to punt that, too, like this person in kentucky? she won't admit she -- she was a delegate to the freaking convention. she won't admit whether she voted for obama. >> i'm a journalist,. >> and a good one. the ten-year falling to the

lowest level since 2011. then we had the big story in the "wall street journal" today. >> you had been right. >> i'm not saying i've been right. i'm just saying that i question people about how do we know oil has a right to be at 100. why is it having trouble holding all this. why cooperate it -- and thin it's not -- that showed that they were slowly, the supply and demand looks like they were changing, right? poor putin, all the stuff he's been dealing with. >> he's losing all his power. >> probably that 80 billion he had is probably $79 billion now. among tests for the market today, economic data, earnings report at 8:30 eastern. that's an important number, i think.

last month's producer price index, we're going to get as well and the october empire state. survey, then at 10:00 -- >> how do you rank them on important? >> the one zip that happens on our show it could take a wire. oh, no. this afternoon the fed's beige book. on the earnings front, we're going to hear from blackrock, bank of america before the bell. this afternoon, quarterly reports due from american express, ebay and netflix among others. them you see how exciting it's going to be for the rest of the week.

shire is now calling on abbvie to continue its takeover plan. an inversion transaction that the u.s. government is managering such tie-ups attractive. reuters is saying hp may announce the development as soon as today officially. actor elliott has been pushing producerses to push and said. >> yes it was pretty interesting to watch. but then again, it had a chance to semester off. the dow's big rally, almost 150 points, ended as a six-point

loss. the s&p, though, and the nasdaq managed to post slight gains, although it's hard for the averages to move higher with energy which makes up a large part of the s&p and actually the dow itself. energy is tough. it continues to be the biggest eye opening part of the market. oil continues to sell off sharply. now down 24% from its june highs. what does this all mean for stocks in the economy? joining us is howard silverblatt. dow jones industry. on the set, we have jillian. oil and energy related are a big part of it. what could be good for the a lot of companies looks negative because they don't start

spending and feeling slush bart of that. >> energy here is the poster child. all 43 issues are down. consumers are being help, but energy is taking a hit. there was low demands, high spry and a stronger dollar. energy is about 9% of the s&p 5 500. and we're off starting earnings season now and that is what's going to hopefully dominate the market. we've got 42 issues in the s&p 500. if they disappoint at this point in time, we're going to see more than that correction.

>> yeah. i'll trade the energy issues, sorkin, for the other -- everything else going higher and consumers having more money. especially, especially when people are still holding these emitters. even the rockefellers, they pointed out how they found religion. everybody should be out of these stocks. we're at 0.04% now. we could be at 0.041% before long. so people should have gotten out of these already, right? no meat and -- you're okay with these going down? >> also a good investment piece. >> so you're on board totally, right there.

>> what we're looking at the last couple of weeks, obviously, the large cap, the s&p 500 has started selling off. technology has started selling off. they were essentially the leaders. stramgly enough, we're starting to see the signs of small cap stocks trying to find the bottom here. for us, the end is closer to the beginning. >> what about oil? >> i think in the back of investors minds, there's a rerun from 2008. to under $35 a barrel in five months and people just feel like there's this growth scare mentality which we've seen several times in the last few years that have been -- >> but you know what, andrew? and that was the part of the good cop/bad cop yen and yang

b but if it's notice just the man -- >> we may not able to have both. >> but there's a lot of supply. >> once you get below $80, you'll see supply responses. but at this point, people think of fracking as natural gas. we have obviously added to our production of crude in a big way because of horizontal fracturing, as well, right? >> there's no doubt. this shale revolution adds on average it will add 0.5% to gdp through the rest of the decade. so it's a positive. but, you know, you have to get through the short-term to get to

the long-term. >> andrew, the firm reporting third quarter profits, $5.20 a share. beating estimates of $4.66 a share. blackrock saw a 10% rise in assets under management compared to a year earlier. so they're kind of still killing it overthere. in just a couple of minutes, we're going to get more from the man who is killing it, blackrock's chairman and chief executive who is going to join us and is with the one and only becky quick. >> our format is different in the high def. i don't know with looking at me whether i like it. but our picture of people look gorgeous, they ready good. . and i will say forer for you,

good job. what did you do today? >> today i used a -- i used a gillett fusion. >> clean it up with the -- >> with a harry's shaving cream. >> oh, you did? yeah. >> you need to be able to press hard. today that's like a baby's behind. >> so soft. >> very good. howard, it's a three-hour show, howard. we do focus on important things occasionally. blackrocks number is here? >> i think we all have to focus on the. that cash flow looks like it's going to do well. so earnings, you know, will be the dominating factor here outside of oil, which can still

continue to go down. but if the earnings are good and the forecast not too bad going forward again, we've got to worry about the dollar in detail. we should be able to support the market on there. the fundamentals are there. companies are in decent shape. the concern is where we're going for here. the forecast right now is the dollar and oil. >> julian, last question. i saw people yesterday saying coming, q5 and then qe6. because the fed is going to stumble. if inflation filters through. >> i don't think they're wog go see qe anytime soon. what we are thinking we might see is some form from the ecb.

>> you're saying when they're done here, they may keep rates -- you're telling me definitively? >> never say never again, but -- >> yeah, and i would recommend that view right now in terms of the fed. because i don't know we have any idea what they're -- wouldn't you say? they could do a qe5, 6, 7, couldn't they? no? they're done? >>. if with he slow down, they don't want to do that already. coming up next, intel telling the world that the pc isn't quite dead yet. the numbers after the break. plus, we are just minutes away from becky's exclusive interview with blackrock's ceo. stick around. "squawk box" will be right back with all that and a lot more.

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afternoon that, the ceo spoke to cnbc after the numbers. >> record ever revenue. and we were grew operating profit by 30%. so we saw a pretty strong quartzer, better than we expected. >> here to walk us through the quarter is chris casso. i thought the pc was dead and intel was never going to be able to figure out what to do after that. >> feel, most of this year, the pc has been remark blgly resilient. tablet growth has flattened out a little bit now. we've seen some improvement in gdp. and intel would say that, you know, there's a lot of older pcs that need on to be refreshed. >> have we overstated the import of the tablet market? >> well, i mean, the tablet, it's interesting when you look at the growth rate of computing in total. but the trend line has been fairley constant since the ipad

came out. but actually, about six months after the ipad came out, is when the pc started to decline. the tablet has had an impact on it. the question is -- >> do you remember literally 18 months ago, maybe even less when we used to have conversations about michael dell and his interest in taking that company private, there was a view that companies like a dell were going to be lost for good. i'm just uncleaver what happens. and now, by the way, it looks like that was a -- it turns out to be a trend. we don't know yet, but corporations are with pcs. >> and intel, their chips are -- they're trying to get into this internet of things, right? >> they're still ceiling cpus. the pc is still the biggest part of this. >> that's cloud.

i just wrote everything up to the cloud. but if someone does well, they're apparently taking advantage of the cloud. >> i just said that. >> but intel, they still need the pc to be help. they at least need the pc to be stable because it's such a big part of their profitability. within the ecosystem, they have the advantage. you're pretty much stuck with buying intel, you're going to get paid for that. that's the concern over time -- you know. >> where are you on microsoft, then? >> right now, at the anniversary of windows 8 now, which is not a successful product. >> on windows 10, it should be out sometime next year. there is hope, as well, that

that will reinvigorate things. the other thing is the tablet thing. it's probably looking at it in too small a fashion. >> we will see what they end up doing. >> good to spin off, bad? yes, no? >> i don't cover hp, so -- >> thank you. >> thank you. becky is live from 30 rock. and after the break, she's got a special guest. becky, you know, we think of blackrock and we know that do bonds, but we think of equity. but that is more like -- like one of those guys in the whole mortgage and mortgage-backed area. >> that's right. >> he's going to explain the ten-year to us. and global interest rates and everything else.

>> joe, you are stealing my thunder. larry fink is sitting right here. blackrock is out with much better-than-expected earnings. we'll be watching that slowsly. as you said, joe, this is the perfect time to have larry fink here to talk us through all the questions we have. stick around. when "squawk box" comes back, we have the one, the only larry fink. th universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov philosophy is, reynolds? >>no. not exactly. to attain success, one must project success. that's why we use fedex one rate®. >>their flat rate shipping. exactly. it makes us look top-notch but we know it's affordable.

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you hear that a lot, andrew. good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with andrew ross sorkin. becky, as you know, is in new

york. and this morning, she's going to join us in a second with blackrock chairman and ceo larry fink. but first, let's get up to speed on some of the top stories of this morning. this is one that, like we said, not surprised, but not a good one. a second health care worker in texas has tested positive for ebola. she is among those who took care of thomas eric duncan at the texas health presbyterian hospital. duncan later died. the latest health care worker reported a fever yesterday and was immediately isolated at the hospital. we don't know, andrew, what he did, what part of the support or -- >> we don't know any of these. >> we don't know where it comes from. whether he cleaned up, whether he was a caregiver. we don't know. >> and one of the things that people keep raise questions on, we talked about yesterday, a second health worker. but we don't have anybody who

was in the home with him. remember, there were family members who were in his home with him. >> well, are you positive, they have not been. >> obviously, he was symptomatic when he went to the hospital. so definitely contagious at that point. who knows in the home when he became -- >> right. >> and i think as the virus multiplies, you probably become probably more contagious. >> and symptomatic. >> and the only good news is when you find the early stages, it is easier to treat, supposedly. and we hope that there would be no more. becky has the newsmaker of the morning. >> andrew, thank you very much. our special guest today is larry fink of plaqblackrock. the numbers were better than the street pekt expected. $5.21 a share for earnings. revenue was up. if you look at the rise and assets under management, it

increased up 3%. so strong across the board. are there any areas where you saw some weakness? >> first, thanks for having me, becky. guys, sorry you're not in new york today. the -- what we saw was a world market that were attracted to blackrock's position. it is a combination of our culture and our people and certainly our product. so we saw flows at $11 billion for asia. $5 billion from europe and another $11 billion from america. so those were pretty broad. $18 billion in shares, $5 billion in international retail and $5 billion constitutionally. it shows the depth of the platform business model. you put that altogether, i think we've proved that our business model is one that investors

worldwide are attracted to. >> that's a stunning number. >> that's for the year, yes. >> we're looking at some of nos numbers. what about organic growth? part of it comes from acquisition and part of it comes from organic. >> the 10% is all organic growth. and beta, obviously. actually, in the last quarter, we lost beta and we lost over $90 billion in assets because of currency. so, you know, we are a barometer of the world global markets including currency. so we convert everything back to the dollars. obviously to our investors who invest in euros or sterling or other currency, we report back into the united states. i don't want to say everything is perfect. we all have been reporting on the high yield market.

we did not have a story that was totally clean. but i think blackrock is reflective of the global markets and the flows in the global markets and we continue to expect more flows from asia. and a restructuring of flows in the united states. and pretty consistent in europe. lar larry, you say you're a barometer of global markets and global markets recently have been in quite a bit of turmoil. what have you seen? what do you think about the increase in volatility? what do you think about the fear level for investsers at this point? >> i think we were so complacent, i think the fear level maybe is appropriate for this moment. i spent the weekend at the imf and i would say the entire tonality of the imf and the participants was negative. we feel very good about global

growth and certainly the uncertainty of europe is growing. and europe has probably more structural issues today than it did in 2012 when we had that market. and less flexibility in europe. and i think some of the understatement, you're starting to see a slowdown in the global and oil markets. obviously it affects the stock market because it affects the oil companies. excuse me. but it is a huge tax cut for the world. and the market right now is so absorbed with negative, but some muj positives are coming out of this. i believe the emerging world will be a much better place with lower petroleum. so india probably will increase 1% in gdp if oil prices stay this low. the american consumer, this is an early christmas present.

so we're going to see 30% to 40% decrease at the pump right into the christmas season. so it should be good for u.s. retailers. but the negativity today, it's just so pervasive, people are unwinding positions, people are frightened. you have because of the tax changes for inversions, you're seeing many people getting wiped out who have those trades on today. you have another major acquisition with shire. so you're having losses there. so you're seeing a big -- what i would call a meltdown with a lot of hedge funds and fast money. that is the -- that is the most pervasive thing that's going on. i have not seen, other than one mairn major sovereign fund sell equities in the last six weeks. >> really? >> no. so this is all more of fast money moving out. but if you look at our etf

flows, which is a good barometer of retail, especially in our series, our core series grew considerably in the last quarter. and so i am pretty open mystic here because of this meltdown. >> that makes it sound like you think this is a buying opportunity for individual investors. >> individual investors can tolerate this type of volatility. because i think this volatility is more real than what we were used to the last few years. you know, we're citing the big change in the world is we're going to have -- we're not going to have coordinated central bank behavior any more. the ecb is going to do whatever they can, excuse me, to stabilize europe.

you're going to have probably the uk be the first central bank to raise rates. and i do believe the u.s. central bank will start raising rates sometime early next year. >> sometime early next year, in the first half of next year into the middle of next year? >> yeah. i actually believe for the world economies, the u.s. federal reserve needs to raise rates. i think if they don't raise rates, the world economies are harmed. >> because? >> because the world economy, especially europe, needs a weaker currency. the much weaker euro will stabilize this economy. as i've been speaking for months now, no place is a better place to invest than the united

states. if you look at all the m&a, you're seeing a lot of m&a companies buying u.s. companies. why? it's a statement that ceos want to do more business in the united states, less in europe. and so we believe for europe to get back on its feet, it's going to need a weaker currency. >> that is true for europe, but specifically india's central bank has been complaining about the federal reserve ending quantitative easing. they say it's been hurting their markets. they blame the fed for some of those problems. is it true around the globe? >> there's no question we're seeing extreme valuations and we're seeing quite a bit of movement back into the u.s. and that was money that was once in emerging economies.

specifically india. i spent time with the governor and i spent time with the prime minister two weeks ago. india is a place that was a very attractive place to invest now. i have never said that before. markets are up about 50%, 60%. we know there's quite a bit of bandwidth for india. >> because of the changes they put in politically? >> well, the proposed changes they put in politically. now we have to see them executed. india has slowed down dramatically. it's growing around 5%, 5.5%. if these proposals, if these reforms come into pass, plus with the weakening of oil, you could see shortly a india growing at 6.5%, 7%, maybe 7.5%. great fears about china. china has grown around 7.5%.

let's assume china slows to 7%. china is three times bigger than the indian economy. if ivend ya can growindia can g greater than they have been, that's going to offset the slowdown in china. i believe right now there's so much negativity in the world and positions are being unwound, for those investors who can live with the volatility, it's a great time to get back into the market. >> let's leave it on that notoriety now. we're going to slip in a quick break. joe and andrew, we'll flip it back to you, but we will get more with larry fink after this. up next, russia's prime minister is speaking and we're going to listen. squawk is coming right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

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a war of words this morning. russia's prime minister telling cnbc that a reset of relations with the united states is, in his words, impossible. in an interview with of you geoff cutmore, dimitry medicimi says the ties between the two are damaged. >> translator: just to show how cool we are, just to show that somebody can punish someone which, in my opinion, it's absolutely destructive. and i would even go as far as saying a stupid position. >> russian president vladimir putin and petro poroshenko will

hold talks in italy later this week. and this makes me think about it. everybody has me thinking about oil at this point. you've got to roam holman jenkins today. >> a good piece. >> popping the green policy bubble. at $2.99, you wonder why tesla dropped. and then you read, even for china, which is having trouble managing slower growth, their input costs go down based on the global -- that helps china want we just heard larry talking about how much it's going to help india. it's really -- i mean, our production in this country, we said we can never take care of ourselves. we have to do something. up 54% of production since 2004. we've got half again as much as we produced back then, andrew. this is -- >> if there's a chance for a morning in america, there it is. and i'm not saying that cynically. i'm saying that completely serious. >> but you said if there's a chance. there's not a chance.

it's always morning in america. i've told you that. >> when we return, the morning in america continues and we're going to head back with becky and blackrock's larry if you think. plus, results are in for bank of america and we'll going to give them to you with some analysis.

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welcome back to "squawk box," everybody, live in new york city with a special guest, larry fink of black rock talking

about the earnings and markets and so much more. we have not talked about bond markets. they have. royal by the news of bill gross leaving, a lot of changes, pension funds rethinking things. i wonder what you see in relationship to that? >> well, i don't agree with the notion that bond markets have been royaled because of bill gross. >> okay. we've been talking about it a lot. >> i think it's a good story. it's good chatterment bond markets are enormous, and the bond market has been able to cope quite well will whatever's happening, with some of the sales that are going, and the bond market has rally ied considerably because of the fear of global growth. there was bad positions with some hedge funds getting back to the other notion. there is is constant drive for investors, more than fixed income. this is a global phenomena.

we've seen this a lot. we say this a lot. there's a shortage of bonds. you know, as deficits shrunk, deleverages of banks in europe, and so year to date, we had $45 billion in net new flows in fixed income, and so we witnessed good flows and our etfs and active products now through the interior. >> 45 billion dollars, massive inflows, a time when places have seen massive outflows. do you capture the market share they are losing? >> most of the activity's happening after the third quarter. i mean, and, more importantly, they were a great firm and remain so. bill was a great investor and will remain so. >> you said it was a great firm and will remain a very good firm.

>> great firm. i'm not trying to make allusions there. blackrock is a great bond firm too. we have $1.3 trillion in fixed income in beta and alpha products. we had extraordinary good performance now for five years, and we're winning market share and, you know, we've been winning market share for over a year and a half now, and that's accelerating new into the fourth quarter, and whatever happens, i think you'll see a lot of money moving around, and this is going to be a one to two year process, and if the leadership continues to do the right thing, and i think they have done a great job in stabilizing itself, look, the outflows are minimized if performance continues to have challenges, they will be outflows. but this is -- we're creating way too much drama.

ere's great movements of money between firms all the time. the greatest beneficiary because of the performance in 2008. firms like blackrock and other firms were net losers in fixed income in 2009 and 2010 because of that. the ecosystem moves around. i know it's fun chatter. right now, we're a beneficiary. i hope we'll be a beneficiary for a long time. we do see very good flows in the fourth quarter and expect to see the flows continue next year. >> okay. joe, i know you had a question as well. >> i do. i want to see if i can get larry -- i don't know what he says in private about the fed or what he'll say on tv about the fed, but for a while, you thought that the fed should maybe get tighter, larry, in terms for a lot of reasons. i saw yesterday, and you feel there is some risk of a global slow down, so i saw yesterday people saying that another round

of qe is not completely out of the question for these guys, and my question to you is, do you think that they're -- that they've been really good at anticipating how to do this at this point? is it possible for them to come back and do more qe? could they be, in you view, that's incompetent, but do you think the guys are smarts and doing a great job, or do you think anything's b possible for them down the road? seriously, i can imagine you and private saying, you know, these guys, these -- maybe you don't need to answer after the break, think of a good answer, but i want to hear you in private talk about the gang that can't sthoot straight. going to break, you think about how to answer is tactfully, but honestly. more coming up next. 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.

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welcome back to "squawk box" here on cnbc. becky is reporting live this morning from new york city with more with our news maker of the day, blackrock chairman and ceo, larry fink, and joe's answer on the fed in a second, but let's get up to speed on this morning's top stories. big one developing at this hour, a second texas health care worker testing positive for ebo ebola. the worker among those who treated duncan who died last week of ebola. another nurse who treated duncan and was infected is now in good condition. we'll be joined with more on that story. meanti

meantime, though, bank of america is down? >> first number the company is reporting is a third quarter loss of a penny a share, and i don't know whether that's probably -- yeah, okay, analysts saw a third quarter loss of nine cents a share. that's above expectations. we were looking for revenue of 21.355 billion dollars, and i have not seen the revenue number on your wires there? >> not yet, sir. >> yeah, 21.34 is where analysts were looking, and -- i don't see the actual revenue number, but we'll get it in a second. the stock not doing much, up about four cents so far. consumer and banking revenue, 7.5 billion, global banking revenue, 4.09. investment revenue, 4.67, and --

okay pb. >> you're saying the revenue is below? >> we'll talk to the analyst. >> revenue? >> yeah, 21. just below the estimate, but marginally. >> we've been waiting a long time to hear from larry, and, in fact, he's had so much time, i'm sure he has a politically correct answer for how the fed -- oh, they had certain --ny way, he can answer. becky, off camera, did he talk about the fed in. >> nope, he's a vault. >> i got mail, larry, i love this, that the -- in reality, the fed answers to fink, not the other way around. that was the wrong question to ask in the first place because you're controlling the -- you know, with all the clout you have, but, i mean, don't you think they have been behind the curve in your mind? >> during the break, we talked about you, so we were not talking about the other. do i think the fed's behind the

curve? they should be raising rates, as i said earlier. obviously, i don't know where the sources came that they will do another run of qe. >> not that they would. >> oh. >> but let's see the globe slows down more than people thought. is it beyond comprehension that these guys, these ladies, the yellen, behind your comprehension they could do more qe? >> i don't believe they will do more qe. i believe they have a systematic approach -- i may believe they are behind the curves but they have a systematic approach, finish bond purchasing this month and on a path to normalize rates. what is normalize rates? a forward curve. the forward curve is 2% or 3%. maybe they raise rates up to one

and one and a quarter percent, but i believe, as i said earlier, the world needs a stronger dollar, and the only way we have a stronger dollar is to begin the process of normalizing interest rates. >> given the comments from fed people on inflation staying below target until 2018, i don't think they will raise rates, if you think they should raise right now and will not do it for at least another year, you must take -- think they are behind the curve or at least not ear as toilet as they should be at this point. >> as i said, i believe they are behind the curve, so i agree with that statement, but i've said that i think the last time i was on the show. >> right. well, more behind now because that was awhile ago. getting further and further behind. >> as i said, the world is benefitting quite well because of the lowering of oil prices.

that will be a big stimulus for the world, including europe, and on top of that, if we had a euro at 1.15, europe finds ways to stabilize itself. this is ultimately good for u.s. commerce, having a stronger europe. as you said earlier, it's good for china. it's superb for india and other parts of the world, so as i said, amongst all the doom and gloom right now, i see more opportunities now because of the price of oil than i've seen earlier, and as i said, i do believe the fed is behind -- we need higher short term rates, but we don't need them too high. just the symbolism of raising rates incrept tally one, one and a quarter, and interesting

thing, i asked six ceos last -- two weeks, ceos of large financial institutions, and i asked them a question, will it create more damage to your company? sustain the same over the next two years or rates up? it was 6-0 all claiming it's more damage to their business if rates stay where they are. >> what if rates fall. market watchers say they see the ten year move below 2%. >> there's no question we could see spikes, but i don't believe that's a sustainable level. we see flows at the fixed income. people are parking murn in t ii fixed income market, especially during these times, but i don't believe a 220 is a sustainable

level and say that more below 2 %. >> we know that some of the fears out there are things that slow down the global growth, and in the break, we talk about ebola. how much time do you think about this? >> i read as many articles as i can related to the disease, and i think it's very help ful that it is a front page story. i believe as this becomes more part of the consciousness, the medical community response will be better. political response will be better. hopefully we'll have global support for west africa in trying to eliminate in reducing the disease. if this was not a discussed event, i would be much more frightened, and i do believe it's clear the texas hospital probably had a break down in

procedures and/or maybe we don't know as much as we should know about the disease. the transmission of the disease. as a cochair of nyu medical center, i know the new york medical community is doing a great deal of preparing for eventi eventualities, and there's training going on making sure if there is an individual with that disease, we have the procedures to manage it and most importantly, containing it. >> andrew has a question. >> larry, not to go back in time, a headline in the news today, but six years ago, hank greenberg's lawsuit reinvolving around aig. i ask because i believe you heavied the government do some of the analysis on the value of aig. does he have a case?

>> i don't believe there's a case there. i didn't think there was a case related to fannie and freddie either. i believe the government put the company in receivership, but wanted to maintain stability, and i believe the judges in the court case of fannie mae, we're going to have a similar type of judgment related to aig. >> there was a recent story in the new york times suggesting lehman brothers the company was possibly solvent. you've done work on the company. do you think the company was solvent? >> no. at that moment, the company was not solvent. reality is everyone has revisionist history. conceivably five weeks later, it might have been solvent. no different than ber sterns

weekend. people take things out of context. remember the week before secretary paulson basically put into receivership, following wednesday, lehman brothers was failing, and we were already engaged with aig, a huge impairment prior to announcement a week later, and there was the weekend, and, you know, the courts sometimes are not as p what i call straightforward as one thinks. i was pleased with the findings because the u.s. government was to stabilize a world that at the time, they did not want to have headlines of bankruptcies and did the best they can in a very troublesome times in a short

time frame, and i think it's unfair the way some people in the private sector try to recant history, and i do believe secretary geithner then new york fed president geithner, mr. paulson, and mr. bernanke did a great job. >> what's happening with cyber attacks on financial institutions? we've seen attacks stepped up, and jp morgan dealing with issues of being broken into. how safe are we? what is blackrock in particular doing to protect itself? >> well, we all hope we are safe. it's incorrect defiptively to say we are safe. we spend a great deal of time inspecting our fire walls, inspecting the system, and we hire young kids to hack us.

we learn from what they are doi doing. when we are a connected society, you're going to have behaviors, and it's very important for these companies to constantly build and rebuild their technology platform to make sure that it's safe as possible. >> is there more the government should be doing to help with the financial institutions and other big retailers? in some cases, it's nation states hacking in. >> assuming the government has better systems than the private sector, and i don't think that's necessarily true. i think the private sectors, companies like jp morgan have fine as protection and fire walls as anybody, and that is why one should be always frightened of these procedures. as jamie dimon suggested, it was not impactful on the clients when broken into.

our aladdin system, we have trillions of dollars in our clients' systems worldwide, and so we are fearful of the events, but make sure our clients' information is protected. i don't believe most people would have an advantage knowing that information relative to, i mean, the main reason why people hack in systems, get personal systems to use social security numbers or credit card numbers, and so nevertheless, we're focused on preserving fire walls and protecting our climates' interests. >> larry, thank you so much for the time today, for joining us, and congratulations on the earnings. >> thank you. >> guys, enjoy new jersey. >> thank you. >> that's a loaded -- what did happen here, fink? you're too far out here for you? we got -- >> no, the last time he was here, he was late to a conference call. a busy day.

>> i don't know how many ceos come on before they have a conference call, guys? >> you're right. >> i'm looking forward -- >> i noticed you were in new york for a trial period. hopefully that turns into reality. >> stay tuned. stay tuned. >> and then you can see me more often. >> can we borrow -- do you have like low financing if we need to, like, sign an extensive deal down there or something? last time i remember, you worked for a company that has an incredibly high credit rating for all it does. >> yes, thank you. >> so that's a yes? >> i'll buy their debt, how about that? >> there you go. by the way, guys, you know we are in studio, 8h today, the "saturday night live" studio. jealous? >> i'm on stage for saturday night live right now. might be the only time i'm there. d >> larry, thank you, we'll see you back here, taking the helicopter across the hudson. >> why did you let her do that?

>> flat rate. >> you're not making money on it. >> let's not talk about the margin. >> all right. up next, bank of america shares on the move after reporting results. inside the numbers after the break in just a moment. lly has o hidden fees on savings accounts? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn. 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?

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bank of america posting a smaller than expected loss, shares the money center giant at this point are indicated, you know, not a whole lot happening, even though it was, what do you do when you post a penny loss and supposed to earn nine cents? up on a percentage basis up over 1%. jeff hart knows everything about bank of america, all banks, actually, covering banks for sandler, and we ask the same question. if you were writing a headline, jeff, what would it be about? >> caller: thanks about the introduction because i know everything in the press release at this point. they look like good results. the penny loss -- we were at a 14 cents loss, so it's a good looking result, going through it, i mean, credit better than expected, but, you know, the stuff you care about, and i think for bank of america, that's expenses excludeing

litigation charge that we knew was coming, was better than we expected. trading revenues better than expected, and so, you know, that held together well there, and the fee had come -- net interest income in line with expectations. i think the areas people were worried about is would they get the expenses? would they continue to be able to cut it on investment banking and trading side, and to what extent can they keep the interest there? loans are declining with the runoff portfolio, coming through positively. credit, a tail win as well. we think for b organization c that credit benefits are behind them because of the coverage ratio of nonperformers keeps looking tight, but nonperformers get better. there's credit tail winds too. should be good results for people once they get through them. >> yeah, now up almost 2%. so all the banks did well. you follow them all. did one out perform the other

execution-wise, would you say? >> caller: so far, citi group had the best quarter. >> really? >> caller: the bank of america stuff, we'll see, may be in the running for that as we get through. you know, jpmorgan had a solid quarter, but not the prize of citi, and i don't specifically cover wells fargo, but that quarter was more charged. >> okay. the high picture looks good in high def as well. >> thank you. >> you'd be fun live also. we have good shots of everyone. look at him. clean cut. all right. thank you. see ya. up next, the ebola threat, learning about a new case in dallas this morning. that's what we knew about, the nurse. we will update this developing story when we return. time now for today's trivia question. what percent of americans are

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trivia question. what percent of americans are worried about getting the ebola virus? the answer? 23%. a developing story this morning, another confirmed ebola case in the united states. we are join now on set, back from dallas, and this is not positive news. >> no. it's the second worker diagnosed after nian, 26, nurse involved in treating duncan, was diagnosed. now, the cdc says there's 76 people involved in the care, monitoring them all. they do not know the breach so they don't know how they were infected. other people could have been as well. scary information coming from a nurses' union who says that they are in touch with the nurses who work at texas health presbyterian, have not identified them, and the nurses are not part of the union, but say there's no protocols in place to deal with ebola pashlgts, that mr. duncan was not in isolation for a long time before being move the into an

isolation room. questions raised there. right know, nina pham, 26, original nurse diagnosed, says she's feeling well and identifying contacts of the second health care worker now. awaiting numbers on that. what seems like a miracle, the 48 contacts of dup can monitored for 14 days have not shown symptoms. >> between 8 and 10 is the average time in. >> so yesterday, cdc saying they are optimistic now, past 14 days, but out to 21 it can go. >> see the poll, how many americans are afraid of getting a virus, 23 %. i think that means ask them are oh worried about you contracting ebola, and that makes sense. that's a high number for that. ask in a different way, how many people are afraid of contracting? it's a hundred percent.

>> all afraid. >> it's whether there's any -- of course, now, there's not, but you hear 10,000 a week in -- that would be globally, but most, obviously. >> many west africa. the situation there is very bad, and there's a lot of calls for more global aid. >> can you make the case, asking me in the 6:00 hour whether we should stop flights. >> commercial flights. from west africa. >> i said, i just don't know. i heard the argument why yes and why no. >> i don't know if they hold water. >> you can't send them with no guarantee they can get out. >> charter? >> i was reading a story this morning that said it's a hard to find pilots who fly folks. >> send the commercial -- fly with all the other passengers and commercial pilots. charter? i don't know. i don't know.

>> okay. >> thank you for coming in, we'll continue to talk throughout the show and rest of the day. coming up, though, lower squeeze, lower prices helping consumers at the pump, but the slide puts a hurt on some of the world's largest hedge funds. who is suffering? after the break. ch ally bank 24, but there are no branches? 24/7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates. sometimes they just drop in. always obvious. 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 to "squawk box" this morning on cnbc. stories front and center this morning, prodemocracy protests in hong kong took a violent turn, and police tighten the grip as officers drag away activists. protesters have been in the streets for more than two weeks calling for free elections. in other news, russia's prime minister tells nbc a reset relationship with the united states is, in his words, impossible. an interview, arguing ties between two powers were damaged by sanctions. >> translator: when foundations of international relations we worked so hard for are sacrificed to impose all sorts

of restrictions to show how cool we are, to show somebody can punish someone, well, in my opinion, it's absolutely destructive and go as far as saying it stupid position. >> a stupid position. russia's president and ukraine leader hold talks in italy this week. a turn in the business cyclones announcing stock and commodity prices, hedge funds battered by energy holdings. talking emergen energy all morn. who is in trouble? >> well, let's look, andrew. it's been a difficult last three months, and, of course, last month in particular in this sphere. the worst performing companies over that period of time, hess, apache, pioneer, natural resources, and ego resources all pretty popular within the hedge fund community in recent quarters. recent filing, several funds, including de shaw, aqr, and citadel had a number of them, a

couple held all five, and meanwhile, elliot is the shareholder of hess and furtree, and although in smaller size. skeptics know hedge funds consistently underperform the s&p in recent years argue hedge funds by and large missed the nuances of the oil and gas business and are flat footed by the trend now at play. those familiar with the playbook like elliot, citadel, and furtree, they say what's happening on paper, looks like losses, but they hedge the short side to prevent losses, have been all along, and may be seeing gains. moreover, they see a buying opportunity, but we'll see what october results shows us. >> spin, spin, spin, like a doppler radarle th draddle they spin. >> if heads don't make money either way, they don't make

money either way. best they can say is they didn't lose money. >> shaw, driven funds, computers tell them what metrics are attractive. hard to tell where they are. >> if they were smart, they wouldn't have been hedging long, but out of the long positions and short. ? right, right. >> they weren't. >> elliot's interesting, had a fight resolved in its favor, anne that's a longer term holding, but a big hold r for them p zb them. >> that was an operational story. that was not a larger story. >> right, right, but, look, the downturn in oil, velocity of it, and in the brent market, one thing of supply issues in the u.s., but over there, globally, it's surprising. >> are you recognized a lot now on the street? >> we're going to go there? >> no, we're not going to go there. but if you can -- >> only when i'm on "squawk box." >> get yourself in a political ad. seriously. if possible. i see you on more than any other

station. i love it. >> i know. unfortunately, the general has me in a clip with a news -- >> i've seen it. >> i was not asked to be in it. i'm not happy to be in it. it is no way an endorsement. >> there's some that might. >> this next guy could -- >> oh, there's candidates who like you a lot. >> i need to talk at some point. >> we will talk -- >> i have a beef to pick with him. >> i bet you do. >> you never do. >> a new poll on the midterms. the president and handling of the middle east out this morning. you can tell why you have questions for john harwood, because he has details, john? >> hey, andrew, if i was running for office, i want kate in my ads too. >> oh, shucks, john, thank you. >> let me give you the highlights, three weeks from the election, and what it shows is

this is going to be a good republican year, likely to gain seats in the house, gain seats in the senate. question is, how big, and is it a wave election that sweeps republicans in control of the senate. look at the macro picture and shape of the electorat. when you poll voters, democrats have the advantage. they have a lead a couple points in terms of who criminals congress, but narrow it down to who is considered likely voters, most interested in the election, republicans have the advantage. now, take a look at what the elements of what produces a wave, and this is usually in 2006, 2010, you had independence joining and surging to the winning side. we do not see that happening right now. you see interest in the election dropping among independents from august, 42% ratesed at a very high level of interest in the election, and now down to 35 %, and, finally, a look at

obamacare with republicans, wanting to be a huge weapon for them in the election. it's not turned out to be the case. among all of the issues in that voters ranks most important to the vote, health care is only fifth, and with you asked them, do you want a candidate who will give obamacare a chance to work with changes or repeal and start over, you see them saying i want somebody who gives it a chance to work guys. >> ready? my friend? >> ready. >> i love it. >> we have a great -- you know, a great history together. here's the thing. both you and main main stream media made a huge deal about the debate the other night, and i saw on national news, saw still shots of the young grimes, and she looked young, great.

she wants to do things for kentucky, and then i saw the old mitch mcconnell, and supposedly she was the one great, and the thing -- the huge deal -- >> didn't hear me say that. i said they were both good. >> the democrats said there's no money going to grimes. over. they are acknowledges that the race is not close as of today. that was just yesterday. >> no, no, that's not true. that's not true. not putting money in ads, but the race is close. mcconnell, as -- >> here's the journal, parties and outside groups shift money in the final weeks of elections to the most competitive contest. the news reported today by the congressional newspaper roll call that because the democrats don't currently have air time booked to help mrs. grimes, raises questions about whether she can win. >> uh-huh, right, there are questions. >> yesterday, the news, i thought mcconnell was out. media had her as the darling, briefly. >> if you thought watching the

news yesterday mcconnell was out, i think you were -- >> i said yesterday -- >> i believe i said yesterday on your show that mcconnell is likely to win, still think he is likely to win, but it's not a blowout election. she has a chance. in fact, some of the polls over the last 24 to 48 hours moved in her direction. >> do you admit you voted for president obama in the last election and the prior? >> me? the truth is, i have not voted in either of the past two presidential elections. >> because they -- i will tell you, they loved showing those -- i think they showed, like, all eight times that she was asked. that was not helping. >> yes. i gave a truthful answer. i didn't vote the last two elections, or in 2004 either because i'm always, like, traveling on election day, and i don't get my act together to request an absentee. >> if you run now, people throw that in your face that you did not vote.

>> bring it. bring it. i got kate kelly in the ad, i'm fine. >> ha-ha! fair and balanced. fair and balanced. >> there you go. >> oh, my. he's done a great job. >> explaning the president's position. >> exactly. >> that's nice. no, john, i love you. sarcasm. maybe the most surprising, shouldn't be, it's murphy's law, elections never -- predicted six months ago what they hinge on, we have noed why, no idea, other things center stage, no one predicted that it would be hinging on the obamacare, you know, on the back burner, and even the economy is on the back burner. >> the economy's number one, but tied with breaking partisan gridlock. that's the frustration with washington. >> before foreign policy. >> and the fight with isis, which we didn't know about.

>> foreign policy, and i d't know how the cdc thing plays out. people have told me that he'll be the president's brownie. what do you think? >> i don't know if that's the case, but i think the ebola fear and anxiety is something not helpful to democrats because it helps foster the impression that things are out of control and the administration's not handling things, and i haste p en to say that's not a criticism of the cdc because i don't know how to judge their performance, and i'm not, you know, seized with pappnic, and i suspect the are doing a good job with this, but i don't think it helps the democrats. >> all right. thank you. >> thank you. >> stick around over the next couple weeks. it's going to get -- we'll need you. >> you know where to find me, buddy.

>> get that absentee ballot. >> oh, yeah. i don't know if i'm too late or not. >> we got to run. thank you. coming up next, the mouse is going high-tech, and talking about disney's new accelerator program, and, later, a "shark tank" success circles, the founder of scrub daddy. we should mention, futures are taking a turn for the worst. look right now while we are in the red, dow looks to open off at 6 points down. talking about that in a moment too when "squawk box" returns.

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market alert at this hour. volatile moves in the futures, were positive, dropped sharply, and now they are coming back slightly just a bit. what you see there are red arrows, dow opens off 60 points, and was worse five minutes ago. s&p 500 looks like to open off niep points and nasdaq off 14 points. we have to tell you it's the story on the fron page of the wall street journal, oil prices at the lowest level since june 29th, 2012. that was the last time crude dipped below $80 a barrel in the trade, and that has all sorts of implications for the economy,

the markets, and everything else. >> talking about jim yesterday, cramer, the market in trouble? market maybe is in a little of trouble. next time there's another ebola -- >> and here we are, down 16. >> putting that on ebola? >> i am. >> you are? >> oh, yeah. >> can you see the market having a sustained rally if we hear about additional cases day in and day out? >> i mean, as we discussed if that report that we talked about even yesterday that suggested 32 billion was the worst case scenario in terms of global losses. >> you're not -- the fear, at $80 basically. >> the airline stocks crushed at $80? why? what's taking precedence. >> ebola.

it's the fear -- i don't want to say it's irrational -- >> it is. >> the fear is spreading faster than the virus. we said that. >> other than in west africa where the 10,000 number has everyone petrified at this point, even on a humanitarian bas basis. 10,000 a week, 70% mortality rate? anyway. talk about disney. disney. they are in the tourism business too. >> they are. >> think about that. >> think about that. >> anyway, disney getting into the tech startup sector with a help from tech star, and we were there speaking exclusively to the ceo. julia, good morning. >> reporter: that's right, good morning, andrew. yesterday was the demo day for the first start-up incubator program, created to keep the 9 1 -year-old disney at the cutting emg of technology from robot toys to educational happapps. >> the more we create with the new world order, the market place, profound effects on

businesses long term, the better off we are. >> reporter: disney invested up to $120,000 to start-ups, and they got mentorships. over the 15-week period of the accelerator, all ten companies struck deals with different disney divisions, and when disney snaps up a start-up like makers studios in march, they are committed to a hands-off approach, he says is working with maker. >> going extremely well. it's been mutually beneficial. they brought vibrancy and technology and a different way of thinking in terms of creating and distributing video to a company at a time we very much needed that. >> reporter: i asked about expanding the contract to 2018, and he says he loves the job in part because of what technology enables, and he's eager to follow through on the biggest project at disney.

>> its future excites me. specifically, there's big projects we've been involved in that are very exciting that, you know, we'll just be coming to fruition, shanghai disneyland is one of them, and star wars being another. >> reporter: he was very excited. coming up, we'll hear more on which specific technology he worked with in the incubator program that excite him the most. joe, to you p. >> thank you. stocks to watch, pnc financial posted better than expected earnings and revenues, and resulted helped by cost cuts. they call it more like a super read. they thought of it as a well manage institution over the years. a lot of people at pnc. >> totally. >> apple added to the best ideas list at morgan stanley. just recently up earthed this name, came on the radar somehow. the firm sites strong iphone6

demand and expansion into the -- someone added this company called apple. you know about it, right? it's a record company. as far as i know. >> really? >> apple record. >> you know what i'm carrying? can i show you something? the big one. >> you got -- >> yesterday. >> no way? >> yeah, very exciting. anyway, it's the most -- see, now i look like a fans boy or something. >> you do. >> the most successful product in "shark tank" history with sales promgtsed to be $30 million this year. meet the maker of scrub daddy. small business next, and futures are volatile. worse before, but still not great. opening off 60 points, and a lot on that and more when we return in just a moment.

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welcome back, jumping into the "shark tank" now, the most successful product to kate. scrub daddy featured on the show in 2012 and scored a $200,000 investment. didn't seem like a lot the time, but it was a great deal of all time, and got the deal, and it's grown -- greener? he look at me like i lost my mind, grown from home inveninve

$18 million a year. welcome. >> thank you. >> it's not 18, we think it's closer to 30 maybe? >> well, honestly, 18 was months ago when we were on an abc show, and approaching more like 30 at this point in retail sales, but hard to say that number because that's up to the discretion of the retailers we work with. many are public companies. we are thinking more like vol e volume, doing 10 million units sold so far, and 2 million was done in a day on qvc. >> who is the largest retailer? >> right now, it's qvc because of the mia and television and i was on a couple times a week, but second only is bed, bath, and beyond, and followed by that is walmart, home depot, ace hardware, kroger, many big public companies now. ? it's a great story. i want to know how it works, and, you know, he's very good because i immediately said these are not elaine-type sponges on "seinfeld," and he said no, but

you're sponge worthy. and elaine talked about dates whether they are sponge worthy, and i, immediately came back with that. he's quick. i am sponge worthy. >> qvc is live. impromp impromptu, no script, no delay. if you're not on the game, you go down. >> he's not sponge worthy? >> well, you asked how it works. >> show us. >> do we have a camera here? >> it changes texture based on water temperature, that's a feature that makes it unique and up believable. i brought hot and cold water on set to show. one in the hot water. one in the cold water. i'll show you, i brought a ma mallet with me, but you feel it as well. feel that? >> totally hard. can't move it. cold. >> right. >> feel the warm water. >> completely soft. >> right? i'll show the audience.

>> he's got this down. >> that's impossible. >> incredible. second thing these pods never smell bad. we are used to uses sponges that hold bacteria, and greatest thing about this, and cramer said it live on air, hates sponges because they stink and smell terrible. >> i agree. >> this is lab tested to not hold odors making it a mass marketed product. >> what do you do that -- why are the other guys can't figure it out? >> it material is completely unique and exclusive to scrub daddy. pores look open, but they are mostly closed so degree just sits on the top surfaces and rinses out every time. >> how did you figure this out? >> a back story, i'm an inventer, i have 13 patents now, and the last success was a line of buffing and polishing pads for cars, boats, and planes, and that was acquired in 2008 by 3m. >> that's nice. >> wow. >> you don't make a sponge bob

sponge? >> i don't want to be sueded by nick. >> can you make one for me with aed ma face. >> you seem happy. >> sometimes i'm not. i want to, based on the mood, would not like it washing dishes. >> you will like it now because -- >> oh, oh, my gosh. he's a salesman too. >> second reason why it does not smell because it dries quickly in an hour. >> does it? >> unlike a typical sponge. this gives you access to the bottom. >> this is why "shark tank" is awesome. >> and the mouth cleans knives, forks, and spoons. >> look at that. it's all going on. wow. thank you. come back. we have to talk about other things. you have more over here. >> we are not a one product company. >> i know. >> we have all new clolors, and this is scrub daisy. >> that's for -- >> a dish wand.

sits in the sink in a vase, never smells, soap in it, and we have a ton of new products co coming out. you'll see us more often. >> thank you. >> is he sponge worthy? he's not. >> no, i am. >> he asked right questions, he is. >> okay. find "shark tank" here on cnbc tuesdays and wednesdays. what does crude prices mean for investors who want to put money in energy patch? a second health care worker in diagnose diagnosed with ebola. details after the break, must-see hour up next after the short break. back in a moment.

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guys got a lot of pa tents. >> i gave him an idea, and he's going to go do, and i'm getting a royalty. >> welcome back to squawk box here, first in business, and i thought app drew was kidding about the chopper for becky, but she's here. worked out. my guy didn't get you? >> nope. >> i was waiting and everything. nothing. >> i had it scheduled.

sorry. sorry. >> thanks for doing what you had to do. >> it was great. >> good to have him right after earnings, $50 billion company. biggest money manager at this point, and also you nknow the rivalry, and watching him go -- royal, the global bond markets -- no, no, i saw that. >> he did say the bond markets are liquid. >> that was a good loaded question. right. you know, a really big firm, larry. >> i like the follow-up, saying not great. >> right. >> said it could be a good firm. futures, becky, i don't know. now they are lower again. now 88 points. >> 88 points, what happened? >> it's the second person. what do you think? cramer said wait until we have another case. >> larry said the idea it's on

the front pages, idea it's in the headlines makes them think it's less likely to be a crisis. >> of course it's on the front page. it's overhyped at this point, and the fear is spreading faster than the virus. >> i worry with flu season, everybody has a fever -- >> and i will admit, joe, talking about you in the break, literally talking about ebola in the break. it was the topic of everyone's mind. people do dig into them. >> you know, people write in and have a conspiracy theories, in china, india, the highly populated -- why is it here? why is it not -- >> because if you were sick, you come here too for care, right? >> i guess. where are you now on whether we just do no commercial? >> wants to stop the commercial -- >> i think the economic impact, honestly, they do not say it out

loud, but the economic impact is what they are worried about. >> i hope it's not -- to me, hopefully the 47 -- until it's under control, you're not coming here. it's just, you know -- >> it's an economic -- it's not just people coming in and out of the country, but cargo used for all sorts. >> from west africa? >> no coming into. the commercial planes -- >> the reason there's not a spread before because they had them, and -- >> there's more talk. i guarantee you, if this -- the other, what is it? how many? 37 47? out of the woods? >> 47 days. >> no, how many people are we waiting for that passed two weeks? >> you're waiting -- looking -- >> made it past two weeks -- that's good. >> 74 health care workers who

was in contact with duncan. it's the circles and concept. >> i think as we continue to have additional cases, it's going to be hard for the market to have a sustained advance while this continues to happen. >> i agree. >> energy stocks pounded as the price of crude continues a decline, and oil prices fall to the lowest level since june 29, 212, last time it was below $80 a barrel. >> if you look at what's happening, andrew, the idea that crude prizes are in bear market territory just set in for some. look where cross-suit hads come from over the say, a longer term span, look at this. the crude is down 24% since june 20 th. it's an orely slide up until just the -- maybe the last week or two here where there's a downturn for that particular market, so, again, a big drop

from the price of the crude. look at the ripple effects, right? how long it's come from. the s&p energy index, again, it's down 20% during that sometime time that we saw recent peak in crude. they dropped by 20% as well. look at the individual pain has been felt within the energy sector, first of all, exploration and production, extracting oil from the ground and put it in the marketplace. exploration, all down 35% and 39 % respectively. the other industry group with an energy group hitting as well, the oil services companies, people that provide services around drilling. hal burrton down 30% just since june, and baker hughes down 30% in the time as well, and then what are the biggest impacts felt for energy? that's in the contract drilling industry here, transocean rigged the ticker there, and neighbors' industries, both down 36.4 is 1.

the emergency complex as a hole took a huge hit, but specifically, the part of the market hit the worst has been contract drilling, at least in that part of the industry group, and, joe, that's the reason why this energy tried is seen as huge for a lot of people. energy makes up 10%. >> a huge story that looking at the chart, we have no oil analysts left to book. >> well, if you book only the people calling for it to fall. >> no one call for that. no one left that can give us any insight because -- okay, so -- resuming the buy back? >> let's mention what's going on. hp resuming buy back and reiterating guidance for the next two quarters. >> looks like they suspended it. >> they had because of the bad news, they knew the spinoff, and now they are resuming it.

it's a technical thing. they reiterating their guidance, which i think the market sees as positive. we'll see. >> all right k talk about oil, john is here to get his take on the dive in oil and impact on the energy complex and ceo and founder of citizens for affordable energy, and we have not talked to you in quite a while, journ, so i don't know whether you are stubbornly telling the world, and the demand will rise. they told me, john, the fracking and domestic production just in our mind, told so many times by, well, the administration, and others in government that we really can't make a dent with the domestic production. why bother? remember? why open more areas for drilling? we can't make a dent. here's, 54% increase in production since 2004 in the country, john. >> incredible.

i think that's contributed to the mind set that's out there that the u.s. can continue to grow further, which i think it will. what's going on now, joe, i think, and i was never stuck at the highest prices because anybody who does doesn't understand the industry. the industry's cyclical and will always be cyclical, and i think what we're seeing now is that global demand has weakened a bit in the face of strength of production that led to people dumping reserves they have been holding aggravating the problem. now that we're in the 80s, i think the kingdom of saudi arabia is doing smart things taking advantage of the lower oil price building relationships, unilateral relationships with new customers as is kuwait. they are slapping down some of the radicals in opec because it's time to teach them a lesson, and some of the skal

wags like venezuela deserve a lesson, and at the same time, saudi is testing, what is the bottom for the u.s.? at what point do they lay down rigs because they want to know the number. the industry never reveals the number until they start to lay down rigs, but now that we're this low, let's test it. good news is -- >> john -- go ahead. >> the good news is overall demand is not that weak. you know, we're still at 92 to 93 million barrels a day. when i retire from shell, it was 86 million. >> i was going to go there, demands is weak, but it's demand growth is weak. it's -- demand has not gone down, has it? >>. >> no, not really, changes a limit, but at 93 million a day, this is a short run, low oil price peer. going back up in another two or three months. >> all right, but the reason that i talk about demand not

necessarily being down, i wish there was a way to just embrace lower oil prices because it's good for china and we say, but, it indicates a slow down in the global economy which is bad. i wish we can say it indicates we found more and we added supply here. >> was it -- was this is false level trading at, john? the idea that we were at 80 to a hundred dollars, people thought it was the new normal. is that a false idea? >> no, i think that's pretty much the normal. at the rate of demand increase and the rate of supply increase, 8 0 to a hundred is where we will be, i think, for period of time until alternative fuels take away market share of oil. when that happens, then we could see a lower rate for oil for a sustained period of time. >> huh, okay. weal we'll see. i mean, it's a huge tax cut for the entire world. you know, i know that the averages, the stock market

reflects, you know, some red because there's so many oil issues that are not benefitting from it, but overall, for the rest of us, festival for the rest of us should be good. anyway, go ahead, yeah, final word, john? yeah? >> yeah, the fact that saudi arabia is not reducing production is a signal to the rest of the world, and i think it'll be a few -- take a much deeper cut in the oil price for the u.s. to lay down rigs. >> right. okay, john. thank you. only other negative is putin. doesn't have as much. >> oh. >> yeah, right? our heart bleeds, definitely, for putin. >> thank you. >> what did you say? >> putin. up next, what impact does oil's slide have on wallets during the shopping season? tax reform politics and the fed. former economic counsel chair is tackling the issues facing the money with us in just a bit.

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i've never felt so alive. get the future of phone and the phones are free. comcast business. built for business. welcome back, futures in the red, goes back and forth. it was worse, now a little better, but we'll see where things open up at 9:30. dow opens off 63 points, and s&p

up three points, and nasdaq off 15 points. bank of america posting a loss, shares of bac rising 15% in the last month and premarket trading this morning, see what's going on there, up six cents, calling it marginal for now. retail, the national retail federation forecasting a happy holiday season and expected to climb over christmas, and the question is will the forecast climb higher thanks to plummeting gas prices? with that story, matt, jp mori dpan's senior retail analyst. good morning to you. i have a different question, actually. begin the volatility in the markets and ebola that's out there, what's that do in your mind to retail, retail traffic, and consumer sentiment? >> yeah, look, i think the consumer today is on fragile footing. there's head winds, weather, not talked about, it's 75 degrees

here in new york, and the amount of people i think thinking about buying a sweater or coat right now probably is a low probability. you have weatherment you have ebola scares. and on top of it, you have some of the geopolitical events, so i think, right now, you have this balance between today and future, and that's where the gas prices and last year's winter disruptions come into play. >> go through winners and losers. give me one, two, and three in terms of who will -- when the holidays are over, clap their hands. >> deep discounts and i think dollar stores is where gas prices are the greatest, 10 % of expenditures the lower end you go, to us, that's the offprice sector, ross, tjx, burlington, and macy's in terms of selling brands forless, again, business out there is tough. that's not a surprise to anyone begin the weather, and holiday

season, lower gas prices lapping last year's winter, macy's under ten times earning is a name to look at. >> super luxury? >> i think luxury is another story. you know, as you move higher up, get into the sachs of the world, the higher ends brands, it's the wealth effect. you talk about that earlier, what impact is crude going to have on the market? i think that's the number one factor to watch the higher end you go. >> we just showed jcp on the screen for a second there. they have a new ceo coming in. what's that mean to the holiday season for them? >> well, i think it'll be early for marvin to really impact this year's holiday. i think the biggest thing that jcp has now going for it is, i think, his reputation at home depot, ability to attract talent, that's something for the basically for the last two years with uncertainty, i think that the biggest head wind they face was really recruiting new people, new talent, good buyers, good store people.

that's the biggest opportunity they now have going forward. >> right. you like nike and foot locker. do you cover nike? >> yeah, i cover nike, i cover foot locker. look, i think athletic is working. i think health and wellness is here to stay. i think nike, footlocker, they are solid compounding models, and i think that, you know, you have joe yog my like europe, china, and the u.s. hitting at the same time for nike, that sets up well. >> nike, earning cop verse, all of these makers of sneakers that look like chuck taylor's yesterday? 31 companies, walmart, bob stores, and everybody who makes sneakers with the line with the canvas on the toe, the rounded toe, everyone is getting sue. is that a good suit, mat? >> in the grand scheme, worth noting, but not a game changer for nike.

>> okay. interesting lawsuit. i don't know that you can win that. fashion, everyone copies each other. i don't know. matt, thank you. >> thank you. coming up, brian on the state of bank of america, and falling oil prices, the consumer and the state of the economy, and in this case, we'll get economic data and speak to economists in columbia, a business school dean and former bush administration official. opportunities aren't always obvious. sometimes they just drop in.

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you've, i'm sure, heard by now a second health care worker at texas health presbyterian hospital who provided care for patient zero has been diagnosed with the virus in the united states. he's tested positive for the disease, and meg joins us with the latest. morning again, meg. >> reporter: good morningings that's right, this is the second health care worker after pham was diagnosed over the weekend. health officials are monitoring 76 people involved in the care of duncan, the party who passed away last week at that hospital. they have not identified the breach in protocol saying it happened, how nina and the second worker were exposed, and if they were, others could have been as well. they have identified one contact of nina who is in isolation, not showing symptoms, but now they are interviewing this new health care worker to determine whether there are any contacts there. we don't know the number of yet. there's a press briefing going on now in texas.

hoping to learn more about numbers of and about what they know about this breach in protocol. there is going to be a hearing tomorrow in washington where folks from the fda, homeland security, and representative of the hospital system will testify. a lot of questions about what we are doing in the united states, dallas, and overseas. >> i guess the question about the breach in protocol, there's a case, it's blamed on a breach in protocol. the doctor who survived, came back, brought back from africa, treated at emery university, and then released and survived, never remembers a time breaching protocols. how complex are the protocol, how difficult they are to follow in real world situation with panic in the room or a severe situation? just raises so many questions along the way. >> yeah, that terminology "breach in protocol" implies

somebody did something wrong. they apologized for making it seem like they blame anybody, the cdc has, but that's right, think of taking off equipment, people don't know how to do it. they did not wear it every day. it's complicated. allegations coming out from aupon remitting anonymous nurses in the hospital saying they did not have the right equipment. there's all sorts of issues, isolates folks right away. >> nobody knows whether the transfusions helped or drugs helped, or really intensive care, what helps people survive. fascinating piece in the people who have survived in west africa who are care gooiivers and immu. you don't want to reintroduce the virus, and supposedly immunity goes down with time that passes. >> how long does it last? >> plasma from the blood is

effective. >> this guy has given three donations. >> people that match him by coincidence and the nurse did as well. let's hope that works. okay. we'll talk bank of america. they are holding a media call to break down the results, and we have been listening to the call and she is joining us now. >> reporter: good morning, app dr andrew, the call just ending, reporting a better an expected quarter. a few take aways, but the most important thing was discussion about the legal expenses. cfo bruce thompson identified the litigation expect in the quarter including $700 million for other. take away what you will, but there was the settlement last quarter that implies there's a little bit more bumpiness on the legal front. ahead, that being said, cost for

freedomline, revenues were slow this quarter, but where they saw strength was in markets and banking. better than expected, and at least relative to piers, you saw fixed income up 11%, equity sales and trading up 6%, and advisory up 4%, even though equity underwriting and debt underwriting were both down. cfo bruce thompson talked about effective low rates, how it affects their business, and a quick quote, he said, where it affects us most are not necessarily when markets trade, that's markets conditions but affects us with excess deposits, where we lend, and going forward, we're mindful of not chasing yield. telling you, guys, margins could be under pressure going forward, but as far as a general take away, better than expected take away. back to you. >> thank you. breaking news on the economy, september retail sales and price index data after this break. loc. (shouting) location. here's the location that matters the most.

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>> welcome back everybody, seconds from the consumer price index, watching futures this morning, and red arrows, but nothing as steep as seep earlier today. you see the dow futures down by

56 points and s&p off by eight and a half points below fair value and look what's happened with the ten year ahead of the data. yield at this point looking at 2.162%, yield looks lower every time we see it. let's get the numbers right now. rick santelli is at the cme. rick, take it away. >> here we go, the most current, and that is the empire october, 6.17, a big drop, and sales headline, down three tenths lower than departmented, and, boy, down, and gas down 110, and control group just all together like snowballs down two, that's disappointing. look at what's going on ppi, and it's down one ten, ppi, and if

we look at energy on change, metrics month over month and year over year -- excuse me, year over year, at 1.6. that's light. but, you know, again, programs are most likely putting punish on prices, and central banksment to stop the health thing because they are afraid of 1930s type depression, type, what, deflati deflation? nobody sees that on the horizon. yes, we're at 212. 212. bottom is not working out so well. where's the bottom? anybody who picks bottoms deserves to be taken to the cleaners. that's what always happens on a trading floor. where is the bottom? tell me br, and i'll tell you where the bottom of ten year note yields are. the southern european economies, the rates were pushed down, probably not a reality scenario, but what you see in greece, for

example, pop up, and under 70 points in boons so flood gates look to markets as twam on the cheap side. i'm talking treasuries. back to you. >> rick, what you said that jumped out at me is tell me where the bottom is in stocks. up until recently, it's been the bond market that's been leading the direction on things. do you think that's shifted, and now it's stocks leading the way? >> well, i think that the treasury market gave you an insight into less than stellar growth, and anyone trading in 8 7, and i did, in fact, it turns into a fire sale. that's just an extra huge eye opener for buyers in treasuries. >> by the way, on that news, we notice the futuring almost down triple digits, 98 points. >> 117 now, and s&ps down 18 in

opening futures. >> all right. steve, been sitting here crunching numbers as we watch futures drop. >> quiz for you. which sector, one of the only sectors up, was up 3.4% this month and why? >> utilities? >> no. >> it's not oil. >> no. >> not the transports. >> no, no. >> not technology because -- >> oh? >> is it? >> stay there. >> a part of the technology because of the spinoffs. >> electronics, apple, iphone, up 3.4%. every time they introduce a product, it shows up in the national data. >> you got yours? >> you got it in. >> right here. >> let me do a test. this is a weak report, guys, negatives all -- unexpected. we thought the number would be down because of the snap back from the auto sales number, which was expected and came through, and you gave back half of the gain from august on

autos, but it's the core number that causes concern here of what's happening. clearly, consumers took a pause in the month of september. we'll see if that bouncines bac because of lower prices. ppi, the core number is also unchanged. so i look back up on the stage of production, don't see any inflation herement what happened to the federal reserve, though, the outlook for the fed here. >> okay. >> one thing, they have dial back their expectations for rate hikes in 2015 in a big way coming along with the plunge in the two year, plunge in other rates, i don't know if you have a chart in the back, but there's an expectation in the december of 2015. see that chart there? thought it would be 75 basis points, but now it's 45. one cut dialled out. >> if there's another round of

qe -- no, i'm not saying i think that, but if there is another round of qe, any time within the next two years, will you shave your head and be a cooler bald guy for me? >> no. no, i won't. >> you worry. >> because i don't think qe happens. there's two main issues now for the federal reserve. the first one is -- they realize it did not work, making things work? >> they think they are behind the curve, joe, some do, in not doing enough. >> woah. >> so you know where they come from. >> woah. >> more than 180. >> you can't. you can say -- instead of opposite, say exact opposite. >> remember when you made a big deal of 2018 and not hitting the rate? >> yes. ? okay. not only that, that's the feds' stat forecast, they do not hit

the 2% until -- for several years. it's not outlier, joe. >> steve, do you remember when the fed panicked when there was a little bit of a market equity break in there? taper tantrum? remember they panicked, thought it was their fault, and now they have not done anything, and we are breaking equity prices. >> breaking prices. could be related what was saird, all different things going on, expectations for one thing. >> what if the u.s. went into a recession in the next two years, no question e? >> there would be qe in that sense. in that sense. >> you wimped out on the bald thing like me. >> look -- >> you'd be famous, iconic. >> happy with the play i have, joe, thank you. >> all right, fine. thanks. >> what do i get if i win? what do you do? >> shave his head. >> i'll take it off, all off.

>> will you? that's upside. >> i'll unglue it. if it's a toupee -- >> no, no. >> i'm also a client. >> no, no. for more on the economy, getting to glenn hubbard, something came out in the numbers, glenn, that got a weak stock market weaker. what do you think it was on the news peg today? >> well, i think there's a lack of confidence in long term growth, discussion about secular stagnation and whether the economy's growing slowly. personally, i think policy could make a big shift here. it's not monetary policy, but fiscal policy. >> like, what -- yeah, but so many times your -- one man's fisc fiscal's policy is another mans, you know, veto. the fiscal policy or republicans have to do have to do with, you know, less regulation.

lower taxes. the fiscal policy that democrats want to do is spending another $8 00 billion on billing a train between chicago and peoria or something. >> well, i think there's a way to do a bit of both. i mean, we could do a sustained infrastructure program on projects that make sense, and do tax reform. particularly aimed at low income americans and the corporate tax. there's a enough of a constituency, particularly after the midterm elections, to get if done. i don't know why the president would oppose p. >> really? may just be sore losers after the election, glenn. >> i honestly think if the economy say stays in the dull drums, pressure to act will be there. lower interest rates is bit is not what it takes to reflay the economy. we need better fiscal policy. the pressure will be there. we'll get it. >> they do not agree, they will

not do another round no matter what in your view? >> i do not see it unless we fall out of bed because it's not helping that much at the mar squl gin, and i think the staff knows that, and there's a concern about effects on the allocation of capital and the creation of bubbles, and so i don't see it. >> when will they normalize rates? people talk of normalizing rates, but i don't know what that is now, how far away from normal we are when it's eight tenths a percent on a german bund. >> that's right. you think of a 2 % rate as, quote, normal, taylor rule logic, but that depends on growth not having change. we don't know. i still expect the fed to begin normalizing in 2015, but go slow at it. >> how about if oil stays down here or goes down another $10, will that eventually sort of be

a -- an energy drink for china, india, the united states, the globe, for everyone? >> not for everybody, someone produces oil, but for users, yes. it's like a tax cut. sum consumers feel it. industries feel it. oil prices are on pressure because of u.s. production. higher growth is unlikely. >> becky, you may see a seven handle today. look at that. >> 27 cents to go. >> may see a seven handle -- 79, something. >> yeah. >> so, glenn, just so, i mean, how should we feel right now? the country -- this is almost a new high in wrong direction, right direction. is that warranted given what our economic prospects are right now? warranted in the sense we are growing faster. it's not a terrible economy, and

i think that's where the prosecution is. we are putting too much attention on washington on the fed and not enough -- >> in terms of the larger market, i agree, we can do better, but in terms of market evaluating where the economy is? >> well, i think the market is now pricing in things. we had a rich set of valuations given growth prospects, and now the market is beginning to price in more future fed actions, middling growth, and this is all beginning to come together. >> in a bad way. >> all right, glenn, appreciate your time this morning. sure. >> pleasure. >> jay leno. it's official. >> no way! so awesome. >> right here, a new tv gig right here on cnbc. the details on the legendary tonight show host returns to television after the break. look, he's with jane -- no, who is that with jane? oh, no, that's him. check out the futures now, down

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welcome back, everybody. pressure comets on u.s. futures here. i saw a tick, looks like dow was down by 120 points below fair value. also accelerating in the european markets, which are open at this point. check out what's happening in germany, dax off 2%, a similar decline for the cac in france, and ftse off one and a half, and greece is off 10%. they are not one month numbers,

but markets today. this is what's happening. >> okay. as joe teased right before the break, a new prime time show coming to cnbc featuring a familiar face to nbc viewers. jane wells is joining us now with the details. jane? >> reporter: andrew, a labor of love, quote, reached a point where automobiles reached art stat status, so says a guy who knows more about value of cars than anyone owning 130 of them and 90 motorcycles. >> you look at it, just meant to run over poor people with. >> reporter: that's jay leno with a duzenberg owned by eli lily displayed in his personal 101,000 square foot garage. his new show starts next year centers on car stories, history, driving, and investing. >> you know, that's a lot of money. can i ask how much money this is worth? >> i have no idea. i think it's safe to say whatever i paid for it is double

or tripled in value, certainly. i mean, the automobiles seem to be a good investment. i don't know if it's as good as artwork, but it's up there. the mcclaren f 1 is now worth $12 million. you don't really lose money with these. >> reporter: when you look at a car, how much of it is investment? >> i don't see it as an investment at all. i buy what i like. if you are reasonably knowledgeable and buy what you like, chances are, other people will like it too. >> reporter: now, i saw no teslas in the garage, but leno's a fan of the car and the creator. he said, people don't realize how hard it is to create a car company from the ground up in america, and he was frustrated with the news stories that went on and on about a couple car fires with the tesla consider how many happen within internal

cop bus stati combustion and mystifies him why they want to tear musk down. >> reached a point in america now where success is sort of jeered and people who fail all -- well, we get like the english that way. we become either so jealous or we knit-pick, and what tesla's done is amazing. as companies go out of business, pontiac and others as well, here's a guy starting from scratch and being extremely successful with it. i think it's wonderful. i think it's really what america's all about. >> reporter: a lot all day. i mean, we talked about serious stuff and fed policy. talking about printing money, but he had me laughing hysterically. he shows off 3-d printer to make car parts, called the future of manufacturing in america and explains why he's come back to nbc. it was a lot of fun.

back to you. >> i love this. >> this is great. fantastic. >> how many episodes? do we know? >> we don't know. they have not started filming yet, and we don't know the name, but airs after the first of the year, and, you know, they sort of had a practice run when he was up in monteray and did stuff for cnbc, got really good ratings. it's a mix, he says, between, you know, antiques road show, ken burns, you know, the car guy, but it's not one of the car shows, he says, where people throw tools at their son, and you know what i'm talking about. >> i want to know if he's in the building, is he going to be here just out of personal -- >> reporter: why would he want to leave that garage? that place, you could perform surgery there. it is amazing. the artwork, and goes on and on, like raiders of the lost arc. it's crazy. >> there's something too, i don't know, his -- i don't know, just the way he did things,

jane, in terms of enduring and winning in the ratings for so long. he would never pull punches, although, he always seemed gentle with people, didn't he? never -- >> the staff, very good to the staff. >> never mean spirited to the objects of the people. >> right. >> you know what else he did? both sides of the aisle equally. you know, we have his perennial also ran with, you know, the night show -- i know where letterman, you know, fine, be whatever you want, but you are -- certain people will not watch you if you only favor one side or the other, and i think that's what happened to letterman. we'll see. colbert, how will he be down the middle? >> how did we get into this? >> reporter: we're talking cars, joe. plus -- >> i'm talking about leno in a way of doing it that lasted for how long where he was adding to the lead at the end too. why am i saying that? >> we'll benefit now. >> the colbert show will suck

and fallon will kill him. that's why. >> back to you. >> there you have it. the final word on the late night wars from joe. when we return, inside the mind of cramer with a take on this morning's selloff. tomorrow on "squawk box," a special earnings interview with richard anderson. our very special guest. going to talk about kids in first class. ♪

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get down to the new york stock exchange. jim cramer joins us now. the reason i like -- jim, i ask you a question, you always answer it. yesterday, said the market's in trouble. the next ebola case we see is going to be an issue. i still this it has something to do with it. if we continue with the daily or weekly -- if not the great scenario plays out and we have more people contracted in the u.s., could you see the market making a concerted rally if that continues to happen? >> we can't. cdc seems at this point to have lost, let's say, gravitas. i don't want to say lost control because i think cdc could set up

four or five sites where the protocols won't be violated. this hospital, don't want to denigrate the people there, but obviously this is a tragedy. this hope was woefully ill equipped to handle what's happened. i think the country is going to be gripped by this, whether it should be or not. and this, plus oil going down so much, is going to hurt the job growth in 16 important states. retail sales very weak. i continue to think we underestimate ebola. we underestimate russia. these are not positives. a lot of things have to occur. the only thing that's occurred is we got a couple tech earnings. even there, we decided intel wasn't any good. >> and how far is isis from baghdad? i don't know that either. >> we're underestimating isis. it's pretty obvious that we are not winning there. the president seems absent. i don't know -- obviously, he would disagree with that. but it feels like we're

leaderless. you have isis and you have ebola. you have russia. >> jim, should we just say no commercial flights from west africa? >> well, you know, it's not up to me. >> i know, but when someone asked me that two weeks ago i said, you know what, the people that know what they're talking about, there's all these different things. i don't know enough about it. somehow it makes it less likely to be able to contain it over there, i don't know if there's anything to back that up. if no one from west africa takes a commercial flight in here, then -- >> but a lot of these patients are coming in, going through belgium and other countries too. >> if you know it originated in west africa. >> you need a vaccine. until you have a vaccine, then i think there will be a consensus building in the country, why are we letting people come in if the cdc can't control it?

now, i think that the cdc can control it. the guy who ran the cdc made a lot of statements in july that were very reassuring that in retrospect were quite wrong. i'm not a scientist. i'm not a cdc guy. i'm a person who watches stocks and knows that people sell stocks on this kind of news. >> all right. thank, jim. see you in a couple minutes. >> up next, a squawk rewind from blackrock's larry fink. does he think it's a time to buy? more "squawk" right after this. 7 7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

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i believe right now there's so much negativity in the world and positions are being unwound. for those investors who can live with the volatility, it's a great time to get back into the market. >> that was blackrock's chairman and ceo larry fink on "squawk box" earlier this morning. it has been a very volatile morning for the markets. you can see that right now those dow futures are down by 140 points. s&p futures off by 20 points. we have seen a lot of volatility in recent sessions. larry's point was really if you're somebody who can withstand this volatility, if you have the threshold for that, he thinks this is a decent time. obviously markets aren't quite ready to take that message just yet. >> seeing 133 before it even

opens. the ten-year and oil, all these marketare at this point getting into places where, you know, things are happening. >> oil, he said, is a huge boon. it's going to be a big boon for the u.s., other nations too. we'll see what happens. make sure you keep watching this through the day. >> yeah, make sure you join us tomorrow too. "squawk on the street" is up right now. good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. we have a selloff set to take place at the open. s&p futures down about 20 handles. whether that's due to the second case of ebola in texas, the ten-year, or m&a beginning to crack, we'll see. crude oil a big part of this. just a stone's throw from $79. sharp moves in the market. futures firmly in the red. crude continues its slide.