girlfriends. doesn't really narrow it down a lot. squawk box begins right now. ♪ >> live from the most powerful city in the world, new york, this is squawk box. >> good morning welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. the ecb is taking a hard line on the country's debt. they'll no longer let banks use greek government debt for collateral for loans. some lost up to a fifth of their data out of the gate this morning. the other big story, oil prices swinging wildly in the last few days. the saudi finance minister saying the kingdom is okay with cheap crude for some time. >> we have been preparing for such a period. we have learned from the past. we have been through this in the

past. with obviously the oil market. everybody knows goes through ups and downs and peaks and valleys and so in the last few years we have the resources. we build the resources. we build the buffers to help us in sustaining our policies and not disrupting them. so i'm comfortable we'll be able to continue that. >> he's comfortable but a lot of other people aren't. oil prices are now down about 60% since mid june but that doesn't tell the story of the last week. over the hastlast week oil prices pick up about 20%. you're talking about wild swings. a lot of people that rely on oil say they have a tougher time with the massive swings in oil prices. we'll be talking more about crude oil in a few minutes. >> first we have other stories to watch this morning. here's what's happening. a flood of economic data. weekly jobless claims. international trade and

productive and costs. all of those reports due at 8:30 eastern time and michael kors sirius xm and this afternoon go pro linkedin twitter, yelp pandora, and buffalo wild wings. a lot going on and the chairman will impose net neutrality. a full vote on the issue expected on february 26th and tom wheeler argued that the internet should be regulated like a public utility. the wall street journal has a take on the process that got wheeler to this position. this is probably the most the interesting part. the frc officials were blind sided by the announcement in november by the president on his vision for regulating the internet. two white housed as aids are said to have built it.

the big losers are cable and phone companies which got nowhere after they tried to go over the heads including by appealing directly to valerie. i don't know if you got a full chance to read the piece and then the question becomes as you know randall has said at at&t and others does this -- also just investment broadly in internet and broadband. >> from what i can tell at&t is likely to litigate something. >> this is going to be in the courts for a long time. >> there were some things in there that at least clarified the most draconian situation because comcast was up $2 yesterday based on what was being said and it was weird to me that they sort of were giving themselves cover from being swayed by the executive branch. they said it wasn't what the president said. it was all of the comments following that from industry

people that got wheeler to think in a new life. >> it's much more complicated for wheeler. even if he felt that way to begin with he's in this crazy position of looking like he was listening to orders. >> i don't think they care. there's more democrats now so they can vote on this. >> it's going to wind up -- >> it's unclear what all -- >> one of the things so interesting about wheeler is he is only playing for his legacy. so i would love to talk to him about why he would choose to do this. i'm not sure. we'll see. >> really senior rates two of them. once you exhaust your potential there you go to the president and you can't get him to do it and then you go to the person really in charge valerie. >> bingo. >> it's so great, right?

utilities when there's a storm, the lights never go out. they get the trees cleared within hours. utilities are so great and the service is so great that people should want the internet regulated like utilities. sorry. >> her name does come up everywhere. >> her name comes up in almost every major decision. >> yeah. >> obamacare about -- everything else. you're michelle. what are you here to talk about? greece today? >> i couldn't help myself. >> cable stocks did not come flying off yesterday. >> to i told you comcast was up $2. >> which made me think this regulation -- >> that's what i just said -- >> yes but he said it like this. >> but you said it like this. thanks andrew. let's take a look -- oh they're not -- >> we're clarifying each others positions. >> you used your hand. you had better hand movement.

>> i was responding to what michelle was saying. >> i looked at sirius xm. it never moves. it's a $19 billion market cap. talk about a company that should buy back some stock. get that thing above a penny stock level but they have too many shares outstanding. $19 billion company. i'm surprised that all the other numbers are coming out. it's february. what's the date? february 5th or 6th or something? a lot of numbers to still be coming out. they should have done this in january but we'll report them. take a look at some of the late -- as far as we're concerned -- let's take a look at this morning's stocks to watch. 21st century fox cutting it's profit forecast. they claim the stronger dollar and more viewers and advertisers swapping it's broadcast networks for on demand tv. prudential hurt by rising expenses and weaker yen. more than half of their earnings come from business overseas.

allstate profits beat estimates. the company also announced a $3 billion share buy back but the stock was under pressure after claim frequency for auto insurances rose in the latest quarter. i was amazed by oil yesterday. it was down after we were sure it had bottomed and down 10%. >> your wish is my command. >> that would be wishing too much. >> that would just be too good. >> he is going to be with us in just a minute. why don't we take a look at the markets this morning. if you have been checking out the futures you'll see we're seeing green arrows but as the morning starts that doesn't necessarily say much about the at a. we were looking at good gains early in the morning and managed to give most of those backs. stocks were down on the news we were talking about and we'll get in deeper with michelle in a moment. the dow barely held on to a third year of gains. the s&p closed down by 8.5 points and still the dow and s&p

500 are both only about 2% from record closes. if you take a look at what's happening in europe this morning it's the first chance that europe is going to react to the news that the ecb is going to take a much harder line. pulling steam out of u.s. stock trading yesterday and this morning the greek market is reacting to it. it's down about 5.5%. that doesn't tell you about deeper pain with the financials. if you look at what's happening with the dax in germany, the ftse? germany, the rest of the markets are down but not by a lot. greece has a much bigger problem than the ecb does at this point. looks like the shanghai closed down by over 1%. nikkei in japan closed down by over 1% and oil prices as joe mentioned this was a huge thing for the markets yesterday. this morning oil prices up by about 83 cents. if you have been watching the bond markets you'll see that at least right now the 10 year note

is yielding 1.774%. that yield dropped. it was under pressure yesterday too. also on these greek headlines and if you're taking a look at the dollar right now the euro was down at 1% versus the dollar yesterday on the greek headlines. this morning dollar is down against the euro which is trading back at 1.14. goal prices look right now, like they are down about $4.20. 1, 260. the ecb cutoff the country's banks and michelle is with us on set this morkning. >> this is a big tough message from the ecb to greece get with the program. they'll say this is about process but this is the message they have been given. the details, greece's bonds can no longer be given to the ecb as collateral for cash. many in our audience understand central banking operations. if you don't, it's not a big

deal. it's just know that central banking operations is the way you can get cash out of an atm. >> your money is no good here. >> right. exactly. so the rational was look normally we only accept investment bonds for collateral. you have been given a special exemption and you're rated junk but because you're in this program we have given you a special waver. that waver ends now. this is sooner than anybody had expected. the program, the program officially ends february 28th. speaking with a ceo last night they thought they had more time. what happens is this pushes forward. brings much more closer the decisions that the new greek government has to make about whether or not they are going to stick with the program. the greek banks aren't going to run out of cash because they have been given a lifeline. they can go to the national bank of greece. think of it as a subsidiary and

still get cash. it's also one step closer to being fully cutoff. that's the big deal. the greek three year that's the benchmark we use. shot up dramatically on this. this shows more concerns about whether or not there will be a full on default. you talked about the banks. some went down by as much as 20% on this news. if you look at the national bank of greece this is not the central bank. the publicly traded company. the volatility has been just you can see it there, incredible. the finance minister of greece is meeting with the finance minister of germany. i'm sure he'll get tough messages about whether or not they'll be able to stick with the program. >> wow. so why did the ecb pull it forward? only by a matter of weeks. was there something that the greeks were doing that was particularly alarming that they wanted to nip in the bud? >> well he met with mario draghi yesterday. how do you think that meeting went? >> probably not very well.

>> probably not very well. they said it's pretty clear from everything going on that greece isn't going to pass the current review. the greek government said we're not going to submit to this process. forget it. it's over. this gave them the excuse to say we're going to see this early. >> do they speak english? >> they probably do. >> just asking that question shows you how -- it's going to be hard to get everything in europe you know -- right? >> there's so many different cultures. >> mario's italian isn't he? and gentlemen i'm still not going to say his name. >> it's close to something else. i can say keep plucking that chicken but i go very slowly. in my view because you speak english it would be simpler if

everybody just used the dollar and we wouldn't have this whole euro situation. is that too ugly? that's pretty ugly american. >> i'm there with you. >> are you? >> yeah. can i highlight one thing. we have all been assuming that if the date comes when the greek banks get cutoff if and when that would mean greece would have to print their own currency. >> they should. they used to. >> the base case scenario a lot of people are starting to think is maybe they just go to capital controls. you get limits on how much you can take out of the atm. you run a company it's difficult for you to transform money outside of the country. they start printing up ious and then it becomes a cipher situation. so you don't necessarily because you shut off the banks doesn't mean greece has to leave the euro. just means you start to constrict the cash flowing through the economy. >> but then you expect chaos would develop from that? >> either way, right?

it's coming if they don stick with the program. >> right. >> if they print ious what happens to the economy? it's dropped 20 or 30%. you run a business and now you can't pay an overseas supplier because there are limbs on how much euro you can export it's a real problem. >> it's pain either way. >> thank you. let's bring in some guests now to talk about other things. the impact on all of this situation in greece on euro and global stocks but we're also looking at oil and currency. john is the founder partner at again capital and cnbc contributor and david is head of global rates and currency research at merrill lynch. this is what is running through my head at this point. okay. i have him saying never 100 again. have the gentlemen today saying we prepared for this and we're ready for a long period of weak prices. number one, i want you to make a

forecast on whether we actually test the lows and make new lows and number two the consensus is by the end of the year it will go back to where it needs to be. some people think 65 to 75 is where it's almost 90% of the people say it's going to end up there because that's where it deserves to be. which do you want to comment on? will it hit new lows. >> i still believe we're going to go to that 30 to $33 area which is the low point from the financial crisis. what you saw over the past several days was technical in nature. short squeeze. this volatility is a little crazy and that $30 target is a downside target for the technicians in this market pushing it around. as far as the second point, it does scare me when anybody says it will never do -- >> where's 75? when they say it won't ever go back up again. >> that could easily be in the cards. >> going all the way back to 100 would be -- if this asset is going to double that's a good

long bet to make. you don't just -- double your money is not that easy john. to get back to 100 would have to be serious. >> if you're an airline, a shipping company, anybody you have to be hedging down here. whether you lose the money or not. >> so there's upside pressure. >> yeah absolutely. >> i don't think it's going to go back up any time soon. we were close to $100 for hour years. >> there's nothing to say that the inhearnvalue is 75. >> that doesn't take horizontal. >> really? now the other thing someone said yesterday was no way there's been enough shut ins at this

point to take away from an oversupply situation. it's going to take more time and more closures. this is a guy smart on the way down. one of your competitors. >> i think what will be gotten rid of so far, the runs to the litter in terms of the oil riggs. with all the talk and highlight and scrutiny with the dropping rig count, falling rig count, not a drop of oil has been shut off from the production. still at 9.1 million a day. my only worry is the speculation about hurting the russians and they may turn tail to cut reduction. some was speculation around cutting back a deal with syria. people want to write off opec completely, you can't do that. they matter to a degree. >> so you go with putin.

>> on the front of usa today today there's a story that suggests that putin has aspergers syndrome. where is this coming from suggesting he has aspergers? >> who? >> putin. i almost fell over. i think it's the result of a freedom of information act that usa today filed to try to get ahold. >> that's fascinating. need to look at that. he's a worrisome character for sure. >> that doesn't necessarily make him worrisome. just makes him very smart. >> that was based on a study done for our military saying that the russian president carries a neurological abnormality and all his decisions will be effected by this. >> his decisions are irrational. how is he running from a great

position russia had. >> well it's working for him on the home front. he has 95% approval ratings. >> starving your people in the name of national i feel only goes so far. >> i heard someone say recently these are a people who love to suffer if you look at russian history and russian literature. >> i don't know what stalin is -- >> seinfeld self-diagnosed. there's very specific things about aspergers and i know about that. i don't know whether when you're an adult you say i had aspergers. >> this is based on when he was a child. they can't say it for sure because they haven't done a brain scan. >> i don't know if brain scans work anyway do they? >> i don't think so. >> nice to is you here. >> absolutely. >> they're joined at the hip, oil and the dollar but the dollar might even be more

important overall. look at these companies. we talked to welch about how it helps to be domestic all of a sudden because the fed has to think if the dollar gets too strong it could weigh on whether they raise in june or september. >> one client said to me the other day, we're all traders now. honestly, this is probably why i'm on your show right now. honestly at this point, it's become the prime driver of global volatility. you cannot make any investment decisions without actually understanding which way the dollar is heading. from that point of view we're entering into an era of currency war. from that point of view it's going to remain high. the report this week shows fx volatility is at the highest level for 20 years for noncrisis period. no other asset class is experiencing this spike in volatile but there's no question that fx volatility is driving -- >> that's because the central

banks have moved from quantitative easing as a way to manipulate the markets overall to one that's a currency war. >> exactly. with interest rates at zero globally, with companies facing physical constraints, it's a weaker currency. you have no choice not to play it. we call it war. somebody wins and somebody loses. >> i was joking. we would get rid of all the fluctuates and all the currency wars if everybody uses the dollar but think about how insane that notion would be with all the multispeed economies and multispeed physical policies. everything is differ. why would you try to do it in europe then with the euro? you have countries only 6 or 700 miles away. the difference between northern europe and southern europe. >> you're asking him to defend the euro? >> i'm asking you to -- you cannot go to a single currency

anywhere. you need to devalue because of the economy. >> eq isn't the right medicine for europe but if it's going to take oun the euro it's the only thing we're going to do. the germans wouldn't mind having a weaker euro. this is why it's up 11% year to date and s&p is a flood. this currency war is going to come at the expense of the u.s. u.s. companies are now struggling. 40% of earnings come from outside the u. s. is a strong dollar really in the best interest of the u.s. i would beg to differ. >> therefore we need to do what and how and when? >> right now there's not much the u.s. can do because at the end of the day draghi is doing exactly what they were doing three or four years ago. the u.s. economy came rolling back only because the dollar went down. they are saying you condition stop me from doing it because it's exactly what you did and

that's the problem. now this is why oil for the dollar was an important question. because china also seeing a massive depreciation of its currency. this is at a time the chinese economy is already slowing. if china decides to play the same game it will be a disaster. commodity price is going to crash because china consumes 40% of the commodities and you can trigger competitive devaluation around the world. that's probably the single biggest risk of 2014. >> germany will play ball. they know that. they can talk tough and say they're going to extract all of this. they need it to stay the way it is. >> yeah but mario was like forget it. if you're not going to agree to the austerity it's frankfurt pushing them. >> by the way the dax is not down today by much. the greek stock is. >> the move by china will be the

limit for the oil market. it will cut both ways. the stimulus is seen as china trying to consume more oil versus the currency pressures we get on it. it will be quite a push and pull if that were to occur. >> thank you for scaring me too. >> there's so much thought there which means that the demand side isn't quite there yet. >> no that would help create a further demand response like at the retail pump level here. gasoline demand has steadily risen in the u.s. >> i'm not scared. >> he did a very good job of articulating. >> it's great here. relax. things are good here. >> they're not -- did you not listen. >> we'll be okay. don't worry. >> okay. thank you. coming up when we return underarmour making a $500 million acquisition. if you're a squawk viewer you're familiar with the company it's buying. but first here's a look back at this date in history.

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welcome back to squawk box everyone. under armour is buying two mobile apps for $560 million. this is all part of the move into connected fitness and wearable devices. under armour will be paying for my fitness pal. >> and everything else. i use it. >> you use it too. >> i do.

>> haven't we had him in. >> i think we had one of them in yeah. >> to talk about this too. it's also paying $85 million for a european company that calls itself a personal trainer in your pocket. we talked to my if theness pal founder and ceo on january 2nd and we asked him why a company hadn't already bought him? >> we're not really looking to sell the company. you know we see a big independent play we can go after we're excited about. >> your hope is eventually to have an ipo. >> sure. >> under armour ceo kevin plank will our guest. we'll get the chance to talk to him about the acquisitions and earnings and other stuff too. >> we were talking to the company in january. yeah, why? i wonder. things change. things change in a month. >> do you think -- is there a finders fee or anything? >> how do you think kevin plank finds out about this stuff? >> i don't think that played out

in this one. >> you have delusions of grandeur i think which we already know. >> there's a bankers fee involved here that we should be talking about. but anyway the nation's number two health insurer has been hit by a massive data breach. hackers have stolen personal information relating to current and former customers and staff. the system contained data on up to 80 million people. names, social security numbers, street addresses, e-mail information and employment information and access. >> this is a much bigger deal than getting your credit cards stolen. you can completely steal this person's identity after getting this information. they know about your health care and how much money you made. your social security number they are way more -- this is way more dangerous than anything we heard with any breaches at this point. >> do you know about ransom wear? >> no. >> i saw it on the news last night on nightly that like this lady had her whole business was on her computer to these guys

come in and they get in there and they won't let -- they shut it all down and won't let her access any of it unless she paid her $500 in bitcoin and she said no and lost all of her data. took her six months to get her data back up. but if you say no you never get it back. if you pay -- and then the guys on the news are saying look the only reason these guys exist pause people pay the blackmail. >> but you be the one that spends the next six months trying to get back but they use bitcoin because you can't find them. so i knew something you din know. >> yes you did. >> about wear, besides underwear? coming up you see the sign in nearly every restaurant bathrooms. employees must wash their hands before returning to work so why is one senator questioning the policy? i bet he wishes he didn't. we're going to find out next.

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♪ welcome back everybody. we're in the chairs taking a look at a few things that caught our attention. the story i found this morning

jumped out at me because it had to do with washing your hands after going to the bathroom. this is a u.s. senator that took things overboard when he was starting to talk about business regulation and it is strangling our businesses. he suggested and by the way this was picked up by bbc because they are laughing at us for what he has been saying. it says a us. senator said restaurants should not have to make their employees wash their hands after toilet visits. he was trying to make the point that regulations go too far. it's good to illustrate the point, a sort of mentality that businesses should be allowed whether they want to make them do that or not. his point is businesses would go out of business if you western making your employees wash their hands before they go back to food preparation. i'm not so confident the system would work that well. >> this is a -- anybody that watched the show long enough knows this is your latest phobia

for germs and everything else. you saw the guy eat the pasta in grand central station. he cleaned it with some product but then put a big vat of spaghetti and meet balls. >> but i've also seen 2 or 3-year-olds licking the polls which also makes me want to vomit. >> with germs you're either all or nothing for me. >> i'm hoping if you run and workout that most of the germs are friendly. the other ones hopefully you are able to fend off. they're everywhere. >> but you can avoid getting sick once a year. >> i wish you had micro vision. i wish you could see what was around you all time. >> i'm so glad i can't. >> i'm looking in your mouth right now.

i'm so glad i can't. so number one and two they figure. >> toilet visits. >> i have one less gross. drones in china. alibaba is experimenting with drones in china in the sky. i think we have some images. maybe we can show people of these drones. these are some drones that are going to be taking off. this is all very light stuff. and the question is they're doing experimental -- experiments with these things whether you'd like to have these all over. >> amazon revisited. >> amazon wants to do it too. >> i think it's a terrible idea. i think the air space is already too crowded. i don't think that it necessarily want commercial operations untesting flying. >> if they're light enough they're as light as a bird so if they were to hit a plane or

something not too much damage however to make this a commercially viable thing i assume you have to start carrying lots of heavy stuff all the time. >> and just another person a very thought person said something about worried about ai again. >> bill gates said it. >> so you combine ai with drones everywhere and we're going to have to be out there hike ducking and watching. >> do you think in ten or 15 years we'll be k look at the sky and seeing this stuff? >> i don't think you can get to that point. jeff besos said if you don't let me test it here i'll go elsewhere. >> people are testing elsewhere. >> i'm fine with that. i think i can survive without this being added to a part of our daily lives. >> this doesn't work in a city. it works in other places. >> maybe. if you can drop it off in your backyard. >> you hear about problems with

drones like the drone that landed in the white house. we've about stories here where a kid was using it wrong and decapitated himself. i'm not in favor of these things driving around. >> but if your dream also becomes real these are going to be flying over. wash your hands. get your vaccine. everything that you do is going to be watched by drones and you better straight and narrow big brother. >> stories have been about not machines that necessarily wanted to hurt you but wanted to make sure that you were doing all things. >> pick up that gum wrapper sorkin. >> do you see there's literally cameras on the corners of all the streets around here. >> that's good. when something happens you want to be able to see it. europe has even more than we have. >> we have to run.

coming up we have the question will howard schultz run for president? next. plus the ceo of spectra energy will be here and kevin plank joins us. still ahead.

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welcome back. time magazine's new cover is out this morning. we're getting the exclusive new look. starbuck's ceo. the issue has an indepth profile and one of the most interesting revelations is that he is entertaining slightly the possibility of a presidential run. joining us to talk about it is the assistant managing editor for time magazine.

good morning. is he really? >> he is a fascinating character because he doesn't shy away from difficult topics. he talks about veterans rights. health care he talked about racial tensions and, you know these sound more like public policy than business policiful he definitely entertained the idea. he's happy to wait and see what hilary does. >> david is pushing him. >> david said he should do it. a friend says it's an interesting idea. >> he's waiting to see what hilary done meaning if she runs he won't. >> how real do you think he is? >> i think he really cares. i think he's completely genuine when he takes on some of these issues. the middle class really matters to him. >> you entertain the idea in the article but you also suggest if you were to run there would be certain things that would hold him back.

perhaps being a ceo period but some of the other issues, tax issues in the u. k. and elsewhere. >> look at what happened to mitt romney, right? who was a politician. >> i was going to say he's never run for office. people talk about president obama not having a lot of experience. he was a senator when he was elected. >> big deal. >> he was at the state house in illinois. >> yeah, look, we have seen when you have someone with no experience. we're living the life right now. howard schultz created hundreds of thousands of jobs. it's a huge enterprise. >> has there ever been a president that's run that didn't have some elected office beforehand or who has won, let's say? >> handicap it. put a percentage on it. >> you know hilary's running so he's not going to run. >> go ahead. >> he admits himself that he has

some personal failings that might keep him from running. he's a control freak. there's a lot of founders still running. do you believe he's using the company as a platform for himself over something beyond starbucks? he says in the article the private sector has to take a larger role than they have in the past. our responsibility goes beyond the pnl and stock price. we have to take care of the people in the communities we serve. if at least a third of the country doesn't have the same opportunities as the rest going forward then the country won't survive and he says that's not socialism. >> i mean -- >> all good things if you are -- maybe all good things is being a ceo but also clearly if you're running for office. >> i think this is not just talk with him. he really really cares. we spent a lot of time with him. this is something that he is doing and he sees himself as being in the bully pulpit.

whether it's political or -- >> whether he runs or not he can very clearly have an impact on the conversation. >> certainly when starbucks says we're going to hire 10,000 veterans, other companies pay attention. people care about what schultz is doing. >> he also believes -- even though he says he done believe it's for the pnl it goes back to his pnl but it all works -- >> when you're in a retail business the lower employee turn you have the lower your costs are and if it seems like starbucks is a good place to work, which it is you lower your costs. >> that always cheapens it a little for you. >> i can't can't it be both. >> it's much better than it is but for you it's totally useless just to -- its nice if it helps -- >> i like that it works for everybody. >> it's at&t with something they

were doing, the little message. >> don't text and drive. >> oh my god, yeah. >> i love howard schultz and starbucks. there you have it. >> there is a shot. >> let's take a look. can we show the cover? that's a great cover. thank you. >> coming up the ceo of speck to energy will be here and the natural gas giant posting better than expected results and offering an upbeat view of the future. squawk box will be right back.

welcome back, everybody. natural gas giant spectra energy to lay out its three-year financial plan. the sock over the last six months has struggled. down more than 13%. but there is good news in the financial place today. we'll tell you more about that right now. let's welcome greg evo he is the ceo of spectra energy. thanks for being here. including a dividend of 14 cents a share increase which is a 9% increase. that's a big number. particularly when we're looking at oil prices that are in decline. how do you feel about this? >> we feel confident about it given the nature of our business. the stock's been down a little bit over the last quarter. i think that's some

misunderstanding. but the bulk of our revenues are long-term contracts. we're really not exposed to the price of that. we're putting the infrastructure on the ground. natural gas is cheaper here. we get paid whether or not it goes through the line or not. we signed up new contracts. we're going to have billion dollars worth of new projects. average contract life will be 20 years. that gives us confidence to keep increasing the dividend. so 14 cents per year which is 2 cents higher than we promised investors a year ago. so our cash flows in 2015 are actually higher despite the commodity prices from a year ago. it talks about that replumbing that's going on in the united states and frankly north america for energy. >> although greg, while you are certainly a longer term play and not somebody who's going to be buffeted by three month moves or six month moves even when you

start talking about capital expenditures and what people are willing to pay for down the road that has to have some mental connection to the prices and how things are fluctuating. >> sure. absolutely. and there's no doubt. you know, look would we prefer to see -- we're assuming maybe $60 oil the next three years. >> that is your assumption at this point. >> it is. that seems to be on top of where expectation. s are and where the strip is. who knows for certain. but the real key is when we're moving products so when you're moving oil from western canada to chicago it's really the difference. so if it's only $40 in western canada and it's $60 or $50 in chicago, that's what people want to capture. if it's $90 in western canada $100 in chicago. so we're really playing that differential for our customers getting the product where the price is higher from where the supply is. but there's no doubt that lower commodity prices are not as

positive for the industry from a long-term perspective. >> i've actually been surprised at how quickly the integrated oil companies and small companies have slashed their budgets for next year. are those the companies you're reliant on? is this municipal money that's going for some of this. who are your customers in terms -- >> two things. here in new york city con-ed big for us. all the utilities, those folks need gas to power their power plants, et cetera. so that's one-half of the customers. that's the real pull right now. remember low natural gas for producers is a good thing. the power is cheaper. on the other, we've got suppliers who are pushing their product. so, you know you look at the shells or the bps or the exxons and know those folks are cutting back some of their capital expenditures right now. >> greg yesterday we had terry

lundgren, the ceo of may siscy's on. he said how houston was his top market until the fourth quart for e then things fell off. you're a houston-based company. have you seen the pressure on lower energy prices what that's been to the community? >> sure. that's still probably another six or eight months of that to go. you're seeing a lot of job cuts on the big companies. i think for our side of the business, all continues to grow and develop. part of our business where we have a joint venture where we laid off about 5% of our staff just in the first weeks of january. everybody we touched to one big element or another, for a company like spekt ra 90% really aren't subject to it. >> thank you for joining us today. we appreciate it. >> thanks. coming up this morning's top stories including a fight over regulating the internet. plus our news maker of the day.

underarmour ceo will be here. stick around. "squawk box" will be right back.

the ecb taking a hard line with greece and sending a shock wave through the global markets. we'll tell you what it means for the stocks here. why broad band could soon be a utility and how cable and internet companies are responding. under armour ceo here to talk technology sales growth and luring star athletes away from the competition. this second hour of "squawk box" begins right now.

live from new york where business never sleeps, this is quarterback. "squawk box." welcome back to "squawk box" here on cnbc, first in business worldwide. we are watching the european markets this morning. stocks in grease areece are getting crushed. will no longer let banks use greek government debt as collateral for loans which means anyone who's got a loan backed by greece debt has to come up with something, right? they're calling loans. it's frightening. >> i'm surprised the greek stock market is only down as much as it is. >> it's come back. now it's back down. it's just like a kabuki dance, right? or some type of ritual. i don't know how it all plays --

eventually they seem to need each other, don't they? germany needs greece, greece needs jerm in i.germany. >> we'll see how long that lasts. >> check out u.s. equity futures at this hour. we had two great days. yesterday the market didn't know what to do. but now up 38 points. on among the other stories we're watching this hour the nation's number two health insurer has been hit by a massive data breach. the hackers stole personal information relating to current and former customers they have staff, names, birthdays, social security numbers, street addresses, e-mail addresses, employment information. all of that was accessed. and we have gotten a little immune to the idea of data breaches. we seem to hear about them all the time. pay attention to this one because it is much worse when your personal on that level is

stole versus a credit card being stolen. when a credit card is stolen you get a new one. you cannot get a new identity. >> this is a really big deal. >> i'm looking at this right now. 17 billion is the enterprise value in total. >> $65 stock hsp. >> $90. >> so that's a 50% premium almost. so at 90 that's 50%. that's like 17 billion like you said. >> i don't know how much debt they have on that company. >> 45% higher than 11 billion. that's close enough to where you can get. it's amazing that pfizer sees this as something it needs to do, but it does see the deal adding 10 to 12 cents. it's immediately upon closing adding 10 to 12 cents earnings per share. the first full year after the

close. >> this is about injectables. remember they were unable to do what they wanted to do going into the uk. this is ian, our friend obviously behind this transaction. right? >> uh-huh. >> see what pfizer is doing really quickly. cash or stock? it looks like it's cash, doesn't it? >> it looks like a cash deal. >> so the stock doesn't necessarily go down. and the call is higher. >> they're also going to get some new debt that's how they're funding it with two-thirds from debt. and deliver $800 million in annual cost savings by 2018. >> a company worth 4$4.4 billion in sales. >> where is this from? >> lake forest, illinois.

>> no. it was part of something else. and i never learned -- >> it was products division of abbott. >> hospital parts of abbott. >> abbott's spun off a lot of stuff. abbvie this. >> about three or four companies that created a lot of value. >> okay. enough of this. because we have news from victoria's secret. >> that's the most important news of the morning. >> yes. because we can run -- >> do we have video? images? >> i'm sure. >> a chart is not enough. >> andrew wants more video. victoria's secret l brands raised fourth quarter earnings guidance above analyst estimates. increased by 40% to $2 a share. also announced a special part. >> such a missed opportunity here. >> let's look at the chart, andrew. >> thank you. >> going to buy back in shares.

all this as january same store sales jumped well above the estimate. this is a big banner red letter day for you. we're going to do "sports illustrated." >> we've got media guys that think about ratings all the too im. >> keep digging as you objectify every hard-working -- >> i'm not objectifying anything. let's talk net neutrality. what is that going to do? going to slow down a lot of downloads. >> you've been working with me too long, my friend. >> i know how you think. tom wheeler out with a new op-ed on net neutrality saying he wants to turn it into. he says there will be no last mile on bundling.

that helps push a few cable company's shares higher. you can see what's going on. with us to break it all down this morning is partner and senior research analyst. and then also cofounder and managing director of activate and a former yahoo! board member. we never see you in person so thanks for being here. you crossed the bridge for us a couple times. >> it's good to see you in this state state. >> so cable stocks went up. >> not only went up yesterday. they've been up since president obama made his first statement saying we want title two on november 10th. they outperformed the market since then. i've got to tell you. it's a puzzle to me because i don't think there is a case that can be made that cable stocks are worth more now that you know they're going to be under title two regulation than they were before you thought they were going to be under title two regulation. >> you know that? >> this was already pretty

mushmush much -- >> it will be under title two? >> for sure. >> it'll be tied up in court for a couple years. >> first the question whether congress is going to turn in to rewrite this into title x. it's pretty much over at this point. i don't think there's any real appetite for congress to step in. that means tough wait now for it to be published in the federal register. after that, four to six months from now you get the lawsuits then you have a long series of lawsuits to decide whether the fcc is reclassify. then another series of lawsuits whether they can or cannot forebear. >> what happened in the meantime? does industry turn to a stand still? what happens in terms of how they operate? >> not clear. it will depend on whether the judge in that first case grants an injunction. or whether title two takes -- >> michael, i'm making you for just a moment you can become brian roberts if you'd like or run at&t. there are two major transactions

on the table. >> right. >> you hear this news you as the ceo do what? >> well first of all, you worry about whether or not you're going to have a business where you're going to continue to make the kind of investments that you need to do. and so a lot of this is going to come down to do you believe that this is going to be about pricing? that it's going to in some way or another affect your ability to invest and pay for that investment by increasing your prices to consumers. >> but in terms of handicap you can handicap it if you'd like. comcast, time warner at&t directv what happens? >> i think that deal has a high probability of going through. there are some horizontal concentration issues in that deal. the deal that everybody's focused on is the comcast deal because it creates vertical market power, right? it's their market share in retail broadband that could connect power in the connection market. i don't know whether this helps

or hurts. it helps with one argument which is if the market's going to be regulated, then it is a probable remedy for the market power that comcast would otherwise have. and it is clear that the political environment in washington right now is anticable and that can't be good news for this deal. >> i know it's been a cable out-performing market, but yesterday was kind of interesting. even more so. because there was something that showed a lighter touch than people were expecting. what was it? >> well the chairman specifically said we're not going to impose rate regulation. we're not going to do unbundle. i suppose that to some that was news and was taken as a lighter touch. i think to most of the people that were reasonable close to the issue, what the chairman said was exactly what we knew he was going to say. and the thing about the politics, he circulated the order last night. the republicans asked him to

publish the order and he said no. and so he wanted to get the chairman's own spin on the order it was released before the republicans start to spin the leak today. >> if you're reed hastings should you be just cheering and throwing a party at this point? >> well, this is a win for internet companies big and small. and it's a win for users. because a lot of the innovation that's taken place on the internet wouldn't be able to be there if it wasn't for a free and open internet. >> hold on. i would make the argument we've seen in news yesterday or today that will be doing its tv and trying to unbundle thing. we saw this new sling project. some of that's already taking place. >> a lot of it's taking place, but a lot of it wouldn't take place if we had two lanes. if we had one where people like netflix and apple can pay for -- >> you think they're doing that in anticipation that tom wheeler is -- >> no. i don't think that the two are

the least bit related. i think a lot of this comes down to users. what's the kind of services that users want to buy. >> you think this long-term would be all right for users? >> i think it's better for users. >> if you were tom wheeler and wanted to create a legacy you would have made the same decision he did? >> absolutely. a lot of this comes from unprecedented users. they got comments. there were 7 million people looking and commenting around communications on reddit. >> are they right then? >> the reality is you don't want your cable operating being able to block or what they call throttle services. on the other side it's not so clear. because the other side is that the cable operator and the wireless companies, they've made huge amounts of investments. >> so this could never be reversed. what happens when a republican gets in with new people on the fc fcc, can they reverse this? >> it's not easy to reverse these kinds of things.

>> why? >> you'll have long court cases to change it. you'll have long court cases -- >> it's weird we can have not all presidents -- he puts who he wants on it and slaps him around to do what he wants. and then -- but suddenly the internet for the rest of time is going to be based on one president's idea. >> the rules we're invoking here date back to 1934. people laugh at that. with copper wires. to expect that the fcc can apply old rules and create the internet as a utility, it's not good for consumers. if the internet is like your electricity and your water. >> that's what i mean. if it's cast in stone. it seems next time it's less ideological on this side of things. >> but the act is still here. >> people said there's no way they'll do that now. but, you know we had -- the 34

act is still here. it's ban long time. and it's still here. >> i'm just worried that joe's downloads are going to start buffering. >> not clear long-term. >> okay. >> i've never downloaded anything, i don't think. >> can't you watch it without downloading it? >> streaming. >> incognito, i know what you're doing. thank you, guys. when we come back this morning, why currency shifts are making europe a more attractive investment. under armour ceo is going to be joining us at 7:30 a.m. eastern. also to talk about the purchase of two fitness apps and his company's knockout quarter. stick around. "squawk box" will be right back. 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.

welcome back to "squawk box." we do have breaking news for you this morning. let's recap what's going on. a multibillion dollar deal this morning. pfizer buying for $90 per share in cash. me boards have approved that transaction. pfizer plans to finance it through existing cash and new debt. it's a play on injectables. they say they're going to save 800 to a billion dollars. >> what do you mean by injectables? i'm not sure i understand. >> i'm not sure -- i just go with it. >> it came from abbott. it was a hospital supply -- or was it the -- something that abbott spun off. >> one of the many spinoffs of

abbott. >> a lot of money for that. >> i just wonder how synergistic synergistically -- we know it's going to get more creative as time goes on. but i wonder how it fits in with the whole, you know what pfizer offers now in terms of pharmaceuticals and services. how does it augment that? can you look that up? >> i will do a bit of work during your interview. >> you can do that or pronounce philippe's name. watch how this works. take a look at the european equities. handily beating the s&p 500 this year. joining us now jim paulsen and on opportunities in europe philippe ruje rurks. >> very good.

worldly. >> franklin templeton investments. paulsen, you were right. have we done enough to move permanently higher? how long did you think it would take? three to six months? >> maybe the whole year. but that doesn't mean it won't go higher. i guess i kind of wonder if we are bottoming out oil and we're going to -- the next surprise is there's going to be a bounce around the globe. if that happens, i think there could be a breakout of optimism a little bit. we could see these markets go higher. >> or at least the fundamentals will be where they are right now. >> right. that too. but i think they might go a little bit higher. but the problem might be okay overseas if we have a bounce in growth. but i think sitting at close to 5.5% unemployment here if we get a bounce of growth consistently, i think that's a

problem here for interest rates. >> do you feel -- do you think you're smart? have you felt like you're smart for a long time? >> i have enough of the opposite here for 31 years. >> it was pretty cool. look at what we're saying now. everything's good. oil's low. that's good. interest rates are low. that's good. within two months it was look at all this bad. oil's low that's bad. the whole perception changed and suddenly we had nothing good happening even though it was the same place we were. >> we climbed a wall of worry for five years and then we finally started feeling good about things with that's about the time wall street started to suffer a bit. >> but now goldilocks turned into everything's against us. all right, philippe. he just said you're going to surprise us with what you cover. european markets. both the economy and markets that surprise us. you believe that? >> i do. i'm actually pretty bullish on europe. i think there's far too much

pessimism among international investors. i'm not saying everything is rosy there, but i think in the alignment of the direction, at precisely this moment in time which to me is very good. and in a way, the excessive pessimism we're seeing gives me opportunity to develop. >> you have the euro which has fallen precipitously. you have price of oil which is very good for companies because it's an input cost. and then you have finally the qe which has been announced. and it's a bigger number than people expected. it's open ended. everybody's talking about the risk distribution because it's lower on the european level. that's just to accommodate the germans. >> everything you just said sounds good to me. do we need to read every headline out of greece to divide

whether europe is going to be okay or not? >> greece is a pain in the neck. it's a small country. it's like less than 2% of european gdp. but obviously the focus is there. because it's been a popular vote which may put some question marks. >> what happens with spain who is watching very closely? >> you're right. keep in mind one thing. 80% of the great people are for staying to the euro. the current greek government doesn't have mandate to take greece out of the euro. and i think on both side of the negotiating table, they will to keep greece in. >> those people are the same ones who elected this guy who says forget it. we're not going along with any of this. >> and trading and, you know physician like this morning. but at the end, my bet is that there would be a compromise

which would satisfy nobody. but it would be a compromise and greece would -- >> and in the anti-euro skepticism, in all the euro skepticism across europe they never really get above 30% or 35%. that could be a majority some place. >> and the better things go usually to less. >> and will back off on austerity a little. that's another start. the end of austerity. >> all right. sfl so >> so i like it. >> will you thank philippe with his whole name? >> no. i'm just going to thank philippe. >> okay. will you take a shot at paulsen? >> you can do that. >> all over the place. coming up a home run for derek jeter's girlfriend landing the cover of the "sports illustrated" swim suit issue.

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"sports illustrated" unveiling its cover model on "the tonight show." yankees fans may know her at derek jeter's girlfriend. the theme of this year's issue, made in the usa. that's just ratings bait right there. they say that on the internet. >> i'm going to let you handle it. >> just leave it alone? >> that covered up a lot. >> it does. >> but the bathing suits are skimpy, but they're ready to take off and there's nothing on anyway. why is that necessary? i don't know. anyway.

coming up under armour taking a bigger stake in digital workout cracking. buying two fitness apps for $560 million. ceo kevin plank is going to join us next. i'm doing something where i'm measuring my heart rate. i got maps on. >> he also has a heart rate monitor. >> yeah with my sadistic trainer. sandy. ♪ ♪ meet chris jackie joe. minor damage or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪ ♪ they're still after me. get to the terminal across town. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪

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welcome back to "squawk box" this morning. among the stories that are front and center, we have a lot to tell you about. pfizer purchasing with an all cash deal. also weatherford is cutting 5,000 jobs this quarter. that's about 9% of its workforce. and it's the end of an era. closing all of its futures in july. this includes trading areas from products ranging from grain and livestock to gold and oil. under armour hitting all-time highs since its ipo nearly ten years ago. the company reporting strong earnings will announce two

acquisitions in the physical fitness space. the my fitness pal application and endo mondo. ceo kevin plank founded the company in 1996 with just the $16,000 investment. one of the greatest growth stories of all time. under armour logs more than $3 billion in revenue for the first time last year. it is great to have you here on set. >> great new place. i love it. >> thank you. $16 billion market cap. unbelievable. >> you go guy. >> i'm just getting started too. >> so attractive for so many reasons. >> appreciate that. >> you're welcome. >> i have 15 different ways i want to on this. congratulations on the quarter. but this acquisition is a big move. it's something nike said it couldn't do. lay out why you're doing it how you're doing it and what we should expect? >> well, first of all, this

playbook hasn't been written yet. our job isn't following the competitors and what they have or haven't done. the white space that we saw frankly when we looked at wearables and we see the energy around it and we came back just reaffirmed everything we assumed and thought. there's so much energy about people tracking themselves. people measuring themselves. as much as you hear about jawbone and fit bit and the apple watch and all the devices coming out, one thing we believe is there will always be a better device. a place where we weren't tied to a consumer electronic. but regardless of what the best on the market was, whatever you had, it would plug in and we would read that information as easy as possible. so what we basically did is assembled the largest digital community in the entire world in one swoop. today we have $120 million active participants to give us

information. our job is to make it simple and help them live healthy lives. >> what do you tie in with what these companies are doing with your company? >> the more that someone works out, the more they exercise the more shirts and shoes they're going to buy. so for us it comes to how do we drive value, how do we think of it? there's a great way when you look at the unique people we have amongst our three different sites that we've purchased in addition to the product we launched last week there's 120 unique users that logged workouts in january alone. just think about the sheer scale. now we know that we have information to tell us who the most active people are. what we can see is what kek do to make their products easier. >> and can you push product to them? i mean, do you see this ultimately as -- i used my fitness pal. i use the jawbone on my wrist.

i use the fitbit scale at home. it all goes into this thing. >> yes. you are a wheel house. >> but my question is -- and i wear an under armour shirt. but i might wear nike sneakers. can you use all this to get me into under armour sneakers? >> i think we could change that. the idea is what we need to do is the thing i loved about the platforms is they were all completely open so you'll hear about the new apple watch that comes out, it is ios only. the one with samsung is for them only. no matter what you use, you can use one of our apps. just thinking about the numbers, our job is to give you a place no matter what if you weigh yourself every morning -- do you? >> i do. >> where do you track that? >> that goes into the my fitness thing. through fitbit wi-fied into the air into the cloud into it.

>> what we want to do is create a basic platform that's easy. we'll give you the daily dash board. why don't you check your health? the most valuable thing in your life and no one checks it. you guys were talking about health. how many days were you sick last year? you got to call hr to find out. then you look back and say how are you not just anticipating when you get a cold? i usually get one this time of year. and why don't we have data that supports it? identify got robin thurston and that led. and robin helped us get to the answer of getting to this opportunity and white space. >> can you imagine having hardware built into the clothing too? do you become a hardware company in software if you will? >> if you think in ten years from now we're going to walk around with three inch by five inch pieces of hard glass in our back pocket absolutely not.

wearables will equal some day. and this woman waking up in the future and you see her pull this outfit on and see her doing yoga in the morning then goes with the run. and with a swipe of her wrist she changes the color of her top and bottom. then she adjusts the thermostat. and you're going why are we heating this entire studio, why aren't we heating ourselves? you're colder than joe is every day of the week. it's that same approach where we can be more specified. i think wearables are something where one thing is positive. somewhere by 2020 there will be 50 billion things. everything is going to have a chip in it. your wearable device won't be this hard thing. it will be part of you. >> we had mike lee, the ceo of my fitness pal and the founder on our air a month ago. we were kind of surprised somebody hadn't bought him or

asked him what he wanted to do. when did you first find him? >> oh before then. yeah. >> there's no finders fee for us, okay. >> when we bought not my fitness in december and we were talking to my fitness pal and i'm going television trying not to trip over the words and slowing down that thing -- >> he in no interest in selling at that point. >> let me be clear. mike is thoughtful about the approach he had. the company in ten years with him and his brother building this company and community. the one thing that's so important to him was can we really make a difference? i think that's the one thing that partnering underarmor with my fitness pal is that we can make a bigger difference and impact. and our commitment to it and demonstrated we have done that with not my fitness a year earlier and seeing the investment we were ready to make. inall the stars aligned and they did a great job.

we're incredibly fortunate. >> we've talked and we were at the 25 year thing. we're simpatico on a lot of things in terms of what this country is capable of producing. right? and, you know we discuss maybe that the dream is gone. the american dream. obviously there are exceptions to the rule. but even in the past six years, you had an unbelievable greet run. so many people have carped about regulation and high taxes and uncertainty. and antiprivate sector. is there a counterfactual. would you be a $30 billion market cap if you had the wind behind you? is it in spite of all these things or can you still do it? >> first of all, i think it began with the attitude we never started with this can't happen because because because. when i started an apparel company in 1996 going through a tech boom we were turned down from trying to get office space because we weren't a web company. because that was specifically the charter of that office. and you're looking saying i

don't know if they'll be digital on one side and consumer on the other. i see all these things merging. to answer your question, when i look at it i never thought about of who's supposed to help me. frankly when you think of the federal government we can complain but i'm all for the beneficiary of our first $250,000 loan. there's a federal guarantee that was guaranteed at the adams national bank in d.c. the oldest women's owned bank in america where she just said i like this entrepreneur and i believe him. and the federal government did their job in saying if he defaults we'll guarantee 89% of it. that got me started. i think there are things out there, there are programs out there. you can find a way if you really want it. and if you want you can sit at home and complain why it didn't happen. i don't know where regulation starts and begins. but we were never big enough to be impacted bay draw. football is going to be played in the fall. baseball in the spring. >> by definition for the people that said you can't do it now you've obviously done it. but then again, you probably

have ten things that you would tell the government to do right now that would help not just -- maybe not under armour, but people trying to start businesses and grow businesses. people trying to flourish. i know having talked to you that there's ten things you can do. >> you know, you start with things like a company doing only 9% of our business outside the united states and our goal is to be a global company. why are we so heavily incented to drive to -- it's a drag on aur tax rate because of the amount of volume we don't do overseas. we don't have the profits pouring in overseas. the tax rate is 30 -- we had a 42% tax rate. >> the good news is the strong dollar. >> that helps. because i'll tell you the storm of fx is just coming out with earning season. wait until you see that. >> ceos have never had it so

good as the way taxes are now. you're all avoiding by going overseas. and you don't want to change it. right? >> no. i made the argument because there's money sitting overseas at a zero rate and by the way six months ago when we thought the rest of the world was growing people thought i'm going to use that money and be happy to use that money tax free in all these other environments. look. it would be nicer if it was more flexible. >> i saw the summary. big business doesn't want tax reform because they have too good a deal right now. >> nobody wants tax reform at 14%, 10%, maybe at 5%. >> how about zero? >> they'd love it at zero. we're going to take a quick break. after the break we'll have more with kevin plank. we'll get to him about tom brady who signed with ua. take a look at the futures. s&p futures up by 8. the nasdaq up by 10. "squawk box" will be right back.

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welcome back to "squawk box," everybody. tom brady celebrating his fourth super bowl championship yesterday. this was their welcome home parade, their congratulations parade.

brady signed a partnership deal with under armour in 2010 for an undisclosed equity stake in the company. we don't nope what that stake was, but shares are up about 500% since he made the deal so sounds like it was a good payoff. >> we know a guy that might know about that deal. >> in fact let's get back to our guest today. kevin plank is the chairman and ceo of under armour. wow. you sign him in 2010. he did well by getting the stock deal. but you did well by getting this guy too. >> and not just someone that's saying what's on my check, what's today, how is my life. but somebody who really cares about the company too. how are we doing in china, how's the retail rollout going. we've been a long rise since the public going back to 2005. tom's the guy that calls and says just letting you know i'm back in the truck today buying more stock. >> training centers too. are they called? >> tb 12. >> so it's more like a wellness

longevity center as well as fitness and training. the new england patriots there, they'll use the team locker and obviously they've got great positions and trainers there. but tb 12 is a different level. >> any dating tips or pickup lines? >> you have a 37-year-old quarterback that plays like a 25-year-old with the knowledge of a 50-year-old. >> he called you up saying he's buying more of the stock is that going back to speed skating days? when did he call and tell you that stuff? >> yeah. you know, he's a wonderful friend. we're lucky to have tom and his wife gisele who was part of our women's campaign last year also. they're people you look at. i remember when we had a sit-down with tom and said what's it like to be tom brady? and he just said it's good. you know, it's pretty good. >> the thing is he might want to be you. >> no, no no.

he's a good man. >> when you saw that catch that like, in slow motion land on that guy's chest, did you just go -- >> how does it happen? like welcocome to football, right? >> then when it turned around that mattered to you. >> of course. mostly i was happy for my friend. you know, the good news about under armour is we're still undefeated. i spent a life going to games and walking in saying congratulations the other saying shucks we'll get them next time. it's a good thing about the position we live in. however, there are people that you definitely -- you know you have a great affinity for in teams you root for. tom brady to win his fourth super bowl is a big one. >> do you have a plan to overtake nike? what year are we talking about? >> we shouldn't be in business unless our vision and goal wasn't to be number one in the world. we expect to be the number one global athletic brand, period. and that should be our ambition.

so we work at it every day. but you don't -- it's the same thing. when i started under armour saying i'm going to make a better shirt. >> how long do you think? ten years? >> the world is moving fast. we should be more important in dij ta l. the first thing i love about this is for our entire team at under armour. we're number one in many accounts but just the scale andbred of something we don't have. >> the guy yelled nike and then keeled over dead finishing a marathon. did you know that? he yelled victory, nike and then died. >> and they named the race after it. so we got a shot and we're going to keep running. but our intent is to be number one. we think we could be the best in the world. >> you became number two in north america, took over from adidas and claimed that from them. they're trying to come back strong too. >> they are. they've made a lot of claims about what they're going to do particularly here in the u.s. first thing, spending more money

is not a strategy and more importantly for us competing with our dumbest competitors. >> i know other people that that would be good. >> let me ask you about that. you're making a big play on the nba. >> yeah. >> tried for kevin durant. didn't get there. you have a new shoe coming out. >> the curry one. which is steph curry who's been in our stable for awhile. talk about wonderful people. when you look at our athletes from the jordan spieths to the tom bradys to the stephen curry, couldn't be more proud. did you see curry had 51 points last night? they were down 26-5 i think when the game started. >> does it keep getting raised in how much you have to pay the athletes? now that you are the size you are, it's probably harder to offer people stock in the same way. it's probably harder to be that underdog, right? >> well, no. i think it's absolutely not. because our budget our $3

billion budget and growing last five quarters plus 30% growth 19 consecutive quarters. while it's impressive because we're adding hundreds of millions of dollars every year our competitors have a lot more money. just spending more money, we can't do that. >> they're doing to do irrational things then. >> they are. we have to decide on the things we really want. but that's what led to this getting behind wearables. i want my team to know what it's like to be the largest in the world. had the largest health and fitness digital community in the world. i want my competition to know what it's like to be number two as well. >> we can't thank you enough for joining us. >> great to see you. >> have you talked about -- you haven't talked about the zipper. that's the one thing -- >> with the magnetic zipper. >> i have a jacket and you put it together the magnets go together and then it's ready to zip. >> and you don't have to worry about it. >> i could do it one handed in the dark. >> yes. with ski gloves on.

>> you have a patent on that. are you going to sell that to other manufacturers? >> no. we're going to be the destination where innovators bring their ideas to us. that's what we do. >> i think there's a huge bigger market for you. >> where? >> with the zipper. >> with your competitors. >> i'm just saying mt. claire coats or whatever could have the zipper. >> what maics a rolls-royce that great is they showed a picture of the burlwood and the rolex clock in there and say the rest of that car must be great. when you see the zipper we put time and attention into imagine what the rest of the product is like. >> thank you for being here. >> thank you so much. only in america. >> this tony robbins guy is down sometimes, you should talk to him about how to do this. >> kevin, thank you. coming up when we return the stocks you should be watching ahead of the opening bell. joe has your list of movers. then guest host walter isaacson

on everything from vaccinations to net neutrality to the tech industry. we're back in just a moment.

let's take a look at some stocks to watch this morning. fooiss pfizer is buying hospira for $90 a share in cash. a 39% premium to that stock's close yesterday. pfizer says immediately the deal will add 10 to 12 cents a share in the first year. i think pfizer is up as well. yep. pfizer is up 2.25%. obviously hospira is a nice one. >> it came from hospital spirit and the latin word spira.

>> anyway how about the bridge what was that? yum's earnings -- what was the other one? >> who's ever heard of wolworth? >> yum's earnings missed the mark. did cop consensus. but that wasn't as bad as analysts had been predicting. it's taking forever. when we come back the head of the cdc warning people not to believe internet myths about vaccinations. we'll talk to policy expert zeke emanuel. stick around. "squawk box" will be 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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battle over the internet. regulators talking about a plan to label internet providers as utilities. is it necessary? walter isaacson speaks out on the issue. the measles outbreak stirring controversy over vaccinations. and it's 8:00 a.m. on the east coast, but 5:00 somewhere. time for some shots. he's teamed up with george

clooney to make a super high end tequila and business is booming. cheers as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box," everybody. this is cnbc first in business worldwide. i'm becky quick with joe kernen and andrew ross sorkin. walter isaacson ceo of the aspen institute and cnbc contributor, we have a lot to talk to him about this hour. first we've got a few headlines for you. >> we've got the multibillion dollar purchase. a huge number. meg tirrell has more on the deal this morning. meg, good morning. >> good morning, andrew. that's right. not sure this deal is going to surprise anybody this morning. just on their earnings last

week, ian reed of pfizer is guiding to what kind of deals they're looking for. now, they're looking for deals that were already on the market. they weren't looking for ones on the earlier stages of testing. they get that with this one. and this adds to what they call their global established products business. now, these generic injectable drugs. so that really beefs up that section of pfizer's business. and as we know they've been reporting out individual sections of their business in order to potentially pursue a split within the next few years. so this beefs up that slower growth business. what's interesting about it is it's a u.s. company. we all know that pfizer was ready to spend $120 billion to move its tax base to the uk. this doesn't accomplish that change in the tax structure. although i think they're using a mix of crash and debt. in order to not have to bring back too much cash from overseas

in order to pay for this u.s. company. back to you guys. >> all right. meg, thank you. sticking with health care -- do we figure out injectables? are we good on this now? is meg gone? >> do we want to go back to her? meg? i think he's gone. >> maybe we'll have have her again. i'm on a need to know baa sis. the world health organization says 113 countries including china, russia and libya have higher immunization rates than the u.s. our guest host this morning walter isaacson. doctor, 90. if you can't do 90 you can't guarantee there's not going to be a full-on resurgence. we're at only 91% on measles, right? that's a frightening number. >> actually it's about 95% for

herd immunity. this is where just because enough people are immunized, the virus cannot get a perch in the community. and yes, it's not good enough. and the united states lags in many other vaccine immunization rates. and i think we have to confront the fact we're not doing well. i spent a couple of years in global health where we're trying to encourage countries to immunize. when we don't meet our own words, it undermines our message worldwide. >> so what do we want policy makers to do? what is your suggestion? would you do the federal law for measles? now, not all vaccines are created equal, obviously. i don't know whether -- you know, if you do a federal law mandating one, i think you'd have to do each one on an individual basis probably. or is it enough for states to do with public schools?

>> having states require it for enrollment in school is a very effective method to actually increase the immunization rate. we know that actually works very well. i think more than law, we really do need to change our social norm here. our social norm has been it's an individual choice, we have exemptions for, you know conscientious reasons which don't have to tie to religion. we have to get rid of that. i'm hoping that the measles outbreak will sort of re-energize the idea we're in this together. and we all have to contribute. especially when it's really safe. i mean having the measles vaccine can -- >> you do hpv absolutely? or let's say there's another new vaccine that comes out for something else. and it's a serious disease, whatever it is. but it's only a year old. do you force parents to give that vaccine that may not be as

well known as measles or as serious a disease as measles, do you make that mandated because we're in this together? >> i think we have to take a risk benefit ratio on how serious the illness is and what are the benefits. but we have dpt. we have chickenpox. we've got a lot of diseases that i think there's no discussion on a no debate. let's focus on where there's a very strong consensus and we all agree it's very beneficial for the country, for the individuals, and then i think we -- you know if we want to discuss hpv which reduces and can again if we get to a herd immunity level probably substantially get rid of cervical cancer which is killing 10,000 women a year. >> crazy. 99% of the people that get it don't get -- wouldn't you like to -- well i don't have a cervix but i'd like to cross

off a cancer. >> exactly. >> walter care to comment? >> yeah zeke i was wondering why so many smart people that you and i know you know silicon valley techies that all of a sudden they're part of this anti-vax sentiment. >> it is strange because usually they believe in science and here the science is -- >> why does the left hate gmos? they got nothing on gmo stz. they always invoke science. go ahead. >> just stick with the vaccines. but they also have a libertarian streak. i think this appeals to a libertarian streak and the fact is when we're talking about viruses and infections it's really a community issue because we spread it to each other. i would say the one area i'm very worried about is relative to flu. and getting vaccinated for the flu. we've begun to do much better over time. but, you know we're overdue for

a pandemic. we're overdue for a big threat. i think unless we get this culture of everyone gets vaccines and vaccinated. everyone's in it and we have to prevent the spread all together that could be a real threat some time in the future. >> zeke you think we're overdue for a pandemic threat like the flu, the influenza virus? where you're talking about 20% of the population? >> so in the 20th century, we had three big pandemics. the 1919 was far and away the worst because it corresponded to the end of world war i and people just took that virus back to their home country and it was particularly virulent. but we had a big outbreak in 1968 but haven't had a big one since. we're supposed to have about three a century and people are nervous. and we've had had near misses. 1997. in 2009 when i was in the white house we spent a lot of time on

the swine flu outbreak in california and mexico worrying that that would break out. but i do think, again, this is a situation where we have to get people in the habit of getting vaccinated, that it's their responsibility. that it's just part of what we do for ourselves and for the community. and i think that's a switch in social norms and mentality away from this libertarian i want to do it for myself. because if we don't get vaccinated, it is shoving the burdens on everyone else. everyone else is supposed to get vaccinated to protect us. if we get sick we expect everyone else to pay for health insurance for our illness. that doesn't seem to be the right thing to do in a disease that's preventable by vaccines. >> they're like the greatest. i mean instead of treating -- that's the holy grail for all health care, to prevent something from happening. >> that's right. and when we discovered them for smallpox and polio, you know people were celebrating because it was -- it got rid of the

courages. now we don't confront them so we forget how bad life can really be if we didn't have vaxccines. they are one of the few medical interventions that are cost saving. whatever we spend, we actually make money by doing it. and that is in health care the holy grail. >> i was scared you were going to say something about 75-year-olds not able to get any. i didn't know where you were going. >> it's just you that we're going to keep it. >> did you think you and your brother took -- one brother he's at the super bowl and here you are talking to us about measles. do you ever think about that? >> i think about it all the time. i am not jealous of his life. i love him. super bowl is not for me. >> all right. >> by the way, zeke has a great book. >> we've got it.

they do. >> all right. dr. emanuel, thank you. >> thank you. and i hope you get vaccinated just to be sure. >> there we go. >> i'm totally vaccinated. >> this is a historical thing in america. the very beginning of the colonies you have them debating vaccinations. >> are you vaccinated? >> e yyes, of course. >> we'll talk more about this in a moment. also a bit of controversy over new internet rules and how they came about. was the fcc strong armed by the white house? we'll debate after the break. and later jobless claims data set to be released. we've got the numbers and market reaction ahead. plus the countdown to cramer is on. he'll join us from the new york stock exchange. "squawk box" will be right back.

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welcome back to "squawk box," everybody. we've been watching the futures this morning. it's been a brighter picture for the bulls. you can see right now that the dow futures are up by about 62 points. nasdaq up by 10.5. to build a cage for net

neutrality. . working as a parallel version listing to companies like yahoo! and kickstarter. this is said to have thwarted months of work by thomas wheeler. let's hear from our guest host walter ooiss ak son. he's got a lot of views on the view of net neutrality and what it means. >> "the wall street journal" piece today is absolutely fascinating. because you actually see in a narrative way how both sides could argue things. you saw it with sort of a larry summers and people in the -- the older people in the white house earlier on saying you don't want to be that heavy handed. certainly wheeler didn't want to. but then they brought in a lot of people like chad dickerson and david karp who say wait a minute you couldn't have these start-ups if we all had to pay tolls or we all had to get on the broadband. you know, maybe i'm just always on both sides, but you can see both sides going to this

collision. and it's fascinating. >> what do you think the right answer will be? will it be tom wheeler's legacy or president obama's legacy? >> it will be obama's legacy. it was clear obama not only did this through -- but he very publicly announced that he wanted to have net neutrality as part of the last quarter. >> a decade from now as consumers, will we say this was the right decision or will we say what i imagine people in the cable and telecom business might say? >> still be the law of the land in ten years. >> well, i would hope that in ten years this will cause more competition. once you have four or five different sources for your broad band, then there's no reason to regulate it at all. but if you're in a place like here in manhattan where you really have only one, maybe two choices of how to get broad band, you probably do say we need a common carrier now. even comcast, the parent of this

network, is generally in favor of net neutrality. because you don't want the messier regulation that comes with saying okay you can charge different amounts. but we're going to make sure it meets a market test. you ought to just say no for the time being everybody gets on. >> competition is great for the consumer when it comes to how much they are paying. what i wonder is these are expensive systems to build. and we've had so much capital expenditure. at&t company and the united states for the last five years. >> right. but that's also one reason why for the moment it is a natural monopoly which is why you regulate it under title two. because you can't put a whole lot of coax and cable into every sidewalk. >> do you believe the argument that randall has made on this program for at&t that just this is going to stop and there's going to be so many lawsuits over the next couple years that

whatever innovation was going to happen he would argue won't. >> absolutely. this is a 51-49 call. on the downside it is if you didn't have something like this there would not only be more investment, there would be more incentment for people. you are going to say let's find a way to get into these homes without having to go with the cable company or the phone company. >> i wonder how it plays out. there was a time we'll look back and say can you believe we'll try that? maybe it does. >> you've got to look at each one of these things who are investing new things. or whatever new streaming video people invent. it's going to be harder to invent those. that's where the disinvestment will come. you will not have all the start-ups and say i know if i start something, i'm going to have equal access with anybody else onto the internet. that is really important to our start-up culture opposed to the heavy investment.

>> which is probably why you get somebody like diller who comes on saying what he loves more than anything is just the debate. he loves to hear. >> he never did anything. he didn't want it to go title two. >> he thought the debate to itself would keep everybody on -- >> whether it's vaccines or cable or internet access part of the debate and part of figuring out, should you -- what's the right thing to do. >> i want to turn our attention to another topic in the news this morning which is this security breach at anthem. 80 million users affected. social security numbers. i mean this seems to be at a different level than what we've seen before. >> i feel like a health care -- >> no, the health is where it goes right at your worries. and we got breaches. >> at aspen was taken? >> i try hard not to keep credit numbers on us. but we do have if an employee

has a health care claim, it's got to go through our computer system. that's what happened at sony which was particularly frightening. the kids of people who worked there got health problems and that got leaked. that's when you say let's figure this out. i really believe speaking of the internet changes, we need to now after 25 30 years build a new layer of the internet that's secure, that's domain name that's not as anonymous where you have secure id you have domain names. with a phone call you can track it back if somebody hacks into you. it is impossible to nail that in a network the way the protocols are done. >> do you think there's support really being built for that? >> i would think those banking financial and health care people in which you would say we would like to create an overlay to the

internet that has domain awareness, secure signatures and i think once you have that option, people should have the option of being on an anonymous internet. but if your banks or a health care system or insurance, you should be able to say i want to secure internet. >> that's a great idea. >> you go to aspen? why not maui? the carmel institute. the san clemente institute. pick a decent city. aspen's taken now because of you. >> all right. walter thank you. when we come back l brands hitting the investor cat walk this morning. we've got details of its upbeat guidance. we'll do that next. then jobless claims data being set to release. market reaction just ahead. we're back in a moment.

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welcome back everybody. the parent company at victoria's secret at bath and body works out with sale and guidance this morning. courtney reagan has the latest. >> it was a strong report overall for l brands the company that owns victoria's secret and bath and body works. same store sales increased 7%.

total fourth quarter comps increased 6%. which means l brands is among the holiday season reporters. revenues $4.069 the semiannual sales really helped drive those sales. and l brands upping earnings guidance for q4. also positive for shareholders company increasing its annual dividend at $2 per share. plus you get a special dividend for $2 per share as well. further retailer buying back $250 million and a share repurchase program. and yesterday l brands hit all time highs. back to you. >> thank you. coming up we are just one day away from the jobs report. in just minutes we're going to get another piece of the puzzle. jobless claims data. take a look at equity futures a at this hour. dow looks like it would open up 76 points higher. that could change at 8:30. back in a sec.

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welcome back to "squawk box." among he stories front and center pfizer buying hospira for $90 a share in cash. that was a 30% premium to that

stock's closing price yesterday. and we didn't figure out how much debt but $17 billion enterprise value. maybe a couple billion debt. injectables after looking into it more 70% of individuals that are in the hospital have an iv. and if you remember the iv is attached to a pole that has a bag of liquid. and those are injectables. whether it's a saline solution or something called a b-5. hospira had a lot of je neckic injectables. it would be on -- because you think a lot of drugs are injectable. these are the drip. netflix announcing plans to launch its movie and tv streaming service in japan. the rollout is going to begin in the fall. and cme group is going to close almost all of its open outcry in

july. that's a bummer. could they make trading places without those guys? >> frozen concentrated orange juice. >> where's rick going to hang out? >> i don't know. yeah. this includes product ranging from grain and livestock in chicago to gold and oil in new york. >> all right. rick santelli is standing by. we've got some numbers coming up. it's thursday, you know what that means. jobless claims we've been watching. take a look at futures ahead of that. at this point we're still looking at green arrows for the major indexes. dow futures up by 55 points. nasdaq up by about 11.5. rick santelli is standing by, take it away. >> for non-farm productivity down .18%.

this is disappointing. productivity is what keeps gdp hopping along and keeps the u.s. exceptional and it hasn't been trending. last month did have a nice revision from 2.3% up to 3.7%. unit labor cost higher than expected by twofold. 2.7%. and last month a very big revision from minus one to minus 2.3. 278,000 is the latest this week on initial claims. and of course that follows 267,000. so 11,000 difference -- i'm sorry. 9,000 difference. but the important part here isn't necessarily 278 versus 267. it was 265 prior to the revision. the reality of this is that after we started reining back on some of those initial claims that were the emergency claims that extended longer it seemed like we had a whole lot less

volatility not only in claims but of course in a lot of the employment data. trade balance at minus 46.6 billion. that is definitely a much bigger deficit than we were looking for. we were looking to be under 40 billion. and last month a very stubborn revision with the 39 billion handle remaining. that is something important, of course. that will figure into some of the numerology that goes into gdp calculation. back to you. >> let me ask you. we were just talking about the end of open outcry come july. what's it mean for you? >> well for me it doesn't mean anything. if you have a second listen camera guy pull out a bit. this is a futures pit. for all of it. it's been like this forever. it's basically a lot like the new york stock exchange. app lot of computers, a lot of guys that would rather be here than upstairs. now follow me. here's an options pit if and you

can see the way it swings back. this is where all the action's been. of course duffy has to respect shareholders. it's different from the old days. but if anybody's looking for this to change the world, many traders on this floor knew we were on borrowed time with regard to futures pit. it's easy. when you have one increment of trade like a 30 futures. but the options pits where the action's at they don't translate to the screen nearly as well. and a lot of the activity in foreign options markets have made some might be considered prearranged trading in the u.s. i wouldn't look for those to leave the pits any time soon. >> thank you. it's great to see you. we will see you tomorrow for the big jobs friday too. >> absolutely. steve leisman is here. you've been looking through those numbers as well. i heard you agrees with rick about the trade deficit?

>> what? it's a big number. important number. not only did economists think it was going to come in under 40 but the government had assumed a $40 billion trade deficit. look. the important story right here is how jack welsh was yesterday. let's review where he sid the fed would be insane to raise rates because of the dollar. what we see this morning in the trade numbers is exactly the channel by which the stronger dollar affects the u.s. economy. lower exports, higher imports. now, the higher imports is potentially a good thing in we have consumers with more money in their pockets for gasoline more money because of more jobs that are out there. so you have this increase in imports. and because there's more to spend. >> we thought we were going to get a big break on this because of the lower oil prices. that being a huge part of what we import too. >> exactly. but what's happening is we had other imports that took the

place of others. we'll have to go back and do some of -- they'll have to mess around with the number. in general, a higher trade deficit, subtract some gdp. the claims number it's better than departmented. that's an important number. it's the last input into my infamous model that i'll do when i go back to headquarters here. 278. we were expecting 290. in general the jobs number had been a touch softer than we've had. i don't think we have the full screen for the jobs report. we're looking for 237. i think it could be softer than that. unemployment rate ticking down to 5.5%. looking far decent number there. i think there's every reason to believe just on the power of reversion to the means that we end up going down a little bit and having a somewhat softer report. still i think above 200,000.

and then we don't have to answer these questions. because tomorrow we've got philadelphia fed president. the big question obviously for the fed is not so much when they raise rates but when they remove that famous patience word. >> thank you. >> i just wrapped exactly when i was told to wrap. >> that's very good. appreciate it. let me ask you a question then. now he's talking to me. i may ask you two questions. no, let's go to our guest host walter isaacson and get his take on the jobs in america. i'll frame it with what's always sort of an undercurrent. and that is you saw the president the other day, the big lie because of the people that would have working more better paying job. people that are permanently

affected in that. is this a different? >> especially because of a millennium organization. when you have a new type of economy that's not only a sharing economy, but it allows an on demand on tap jobs where people say okay because of these apps i'm going to be able to do a consulting role here and a writing gig here. and maybe help somebody there. i think you're seeing less of an industrial revolution. we organized jobs with big corporations, big firms. that's ending now. i think it makes it harder to assess what full employment is. i think it's fundamentally wrong to say that technology is somehow cutting back on jobs. >> you got to talk to andrew about that. he'll tell you there won't be any jobs left soon. we can't expect for people to be

able to start getting wage increases. if it's really not -- if it says 5.6 but it's not 5.6, the wage growth isn't coming. >> and we haven't seen wage growth much. once there's more demand for jobs, obviously wage growth will follow. but we need that. we need to make sure that we just keep employment up. i don't quite see why the fed would raise rates or even take the word patience out until they see the whys of the eyes. >> both of us know 60 is the new 40. i mean we've lived that. don't you know that? but is 5.6 the new 6.6? >> no it's a very different 5.6. it could be higher joe.

you can't say you're not coming back to work until i offer you the wage to come back. so the amount of slack in the labor force, i'll tell you what i do know. they know it has room to be wrong. because of the things joe is talking about. people who want full-time work can't get it. a matter of things that are out there. >> you think they use that more as they're looking at the strong dollar? you may not want to say that we're engaging in a currency war. >> right. and then put yourself in the shoes, becky, of a policy maker. would you -- could you possibly say you think the strong dollar is bad for the kmeconomy? you can't say that. even the fed can't say it. even though they think, you know what? i've always been like you know what don't get so high on a strong dollar or a weak dollar. the u.s. economy is flexible and it will adjust. >> the economists had a great

cover story on this on tap workers, people working part-time. and the real question is how many people are doing it? it's more flexible. whether you're in a millennial and we don't know whether some of that is voluntary. >> there's also a weird story i'm pursuing now. it comes from robert hall one of the most eminent economists in the country. he says the people who dropped out of the workforce are the wealthy. the decline in labor -- >> hasn't that always been the take? >> you talk about the idea of people dropping out. he says it's more likely to be the top tiers of income than it is the lower ones which gets right to your issue of choice. >> well have fun. >> are you going to hit the lottery tomorrow? >> got to come back. all these people. this big debate it's one of the

most important investment questions. >> we're going to get back on track. thank you very much. randy gerber and george clooney teaming up to bring you a high end tequila. they started the brand two years ago. business is booming. randy gerber himself will join us after the break.

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loosely translated house of friends, it may have had a hollywood beginning. but in just about two years the ultra premium brand is taking on more established names in the spirits industry. randy gerber the co-owner and founder started the brand with longtime friends george clooney and meldman. i warned you beforehand the last time i drank tequila, i threw up. but it smells smooth. >> i guarantee you won't after you drink this. >> that smells really good. >> thank you. >> how did you guys come up with this idea? >> well george and i were building homes in mexico as you do when you're in mexico you drink a lot of tequila. and he said to me -- you know, we were drinking at different bars and different bartenders said this is the best. nothing was amazing for us for

our palate. he said why don't we do our own for ourselves to serve at our homes. and our homes are called casa migos in mexico by the way. we told them what we wanted. the best tasting smoothing tequila you didn't have to cover up with a salt or a lime. and it took us two years to do this. >> you said for your palates what qualifies? >> we wanted something truly smooth. this takestes a bit of the oak barrels we use to age it. >> you saw patron. guy's a billionaire. we've seen it done with vodka as well. that guy made a couple of different vodka guys who have become billionaires. and all those things, how can vodka taste good? it has no taste. so i wonder is the ingredients, how long it takes? can you make something that is significantly better than what's out there already? >> well we have yes.

>> you have? >> yes. >> so patron would say that too, wouldn't that i? >> i'm sure they would. it's the agaves you using with how long you're cooking them. i think -- you know listen. you can't fool the consumer. you know? they're going to taste something and they're going to drink it because they like it. not because it's in a pretty bottle. >> they'll try it once but they won't stay with it. >> exactly. >> which one should we try first? >> either one. that's aged 14 months. and that's aged 7 months. that's 2 months. >> okay. hold on. >> while you're trying it i'll ask honestly. hard liquor in college i sort of learned that i do love margaritas. to use one you say silver. >> no. some people like the other. if you want a more oaky flavor

to it, then you use that. >> but you use a high quality -- >> yeah, premium. use the -- use the blanco which is this one. >> would you drink it this way or prefer it straight? >> we can drink it all night straight neat or on the rocks. >> maybe you're sipping it all night rather than drinking it? >> you can sip it. last night we were not sipping it. >> you look like you're feeling good this morning. >> i feel fantastic. that's the great thing. truly, i drink a lot of this and i wake up the next morning no hangovers. >> what do you drink this with? >> it depends. last night we had a bottle of the blanco and went to mission chinese and they brought out a fish bowl and took a bottle of each and some fresh lime juice and something spicy in there.

there were ten of us. and we finished the two bottles. it was fantastic. >> whatst the plan for this though? would you sell the company? >> no. we've been offered. we have no interest. we made the tequila just for us. we never planned on starting a company. we truly made it for ourselves to drink. then our friends liked it and it caught on. then we had sidney frank importer come on board and it took off. it's about all the reviews we've gotten and the awards we win is why the company is where it is today. we have no plans to sell it. it's our lifestyle. >> how big can it be k? can you take this brand and use it in other places? in other -- i mean are there more to do? >> well yeah. you can do an extra if you want. we also had companies come to us say we have a vodka. this is the anejo. >> what's the difference between those? >> this will sit from the barrel

for seven months. and this is 14 months. just the color from sitting in the barrel. >> you wouldn't do a vodka or the next or the next? >> no. we've been asked. listen. this is our brand. this is what -- we live this. we drink this. this is what we do. it's not about endorsing something. it's our money behind it. you know, we put a lot of time and effort and have the patience to do it right. we don't have an interest in creating a big liquor company and have other brands and then sell it. it's not what we want to do. >> how much time does it still take up? you got the mix decided with this? are you free of any of the manufacturing process with this? >> no. we talk to our distiller every day. it's just aging. we're doing different marketing. george is really involved in the company. mike meldman as well. so it's the three of us. it's not a big corporation. it's three guys that really knew what we wanted.

>> between this and bars which do you like better? >> there seems to be synergy. >> well the good thing, my brother, i sold the bars to him. so he handles that. and i have casa migos. >> you're right. i do like it. i didn't think anybody could convince me i'd like a tequila. >> i'll leave those for you. >> we'll see what happens. okay. thank you. coming up next we are going to get drunk apparently on some cramer. find out what's filling his glass of investment wisdom. that's right after the break. check out the futures right now. things are looking green. 86 points higher on the

it's frustrating being stuck in the

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hard to get. we keep running out of it. hard to get distributors to stock it an amazing thing. >> which un? the reposado. >> they both do great. we can charge a lot for them. >> interesting. >> you don't make them argue. we do 100% blanco. you don't want to waste it in a m margi, it's that good. when i heard it was clooney, i said what hasn't this guy done right? amazing when people kept asking for. avian's a big seller. but these guys are right. by the way, many people want to buy the brand, many. this beat pittman's thing. that's $400 a bottle. blind taste test this has beaten every single time. >> it's incredible. >> i had a bottle. that's $400? >> $400.

crushed. crushed it. we must have done the test maybe ten times to be sure. i could not believe it this brand kept killing it. gerber's real. i would tell you are real i don't know who you are but you're real. >> anyway -- $400 i didn't know that. learn something every day. see you in a couple of minuteses. >> when we return guess host walter isaacson will wrap up loose strings on topics we have not hit yet. tomorrow big jobs friday. charles plosser, 8:00 a.m. eastern on "squawk box." we return in a moment. you just got a big bump in miles. so this is a great opportunity for an upgrade. sound good? great. because you're not you you're a whole airline... and it's not a ticket you're upgrading

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welcome back to "squawk box." joined by our guest host walter isaacson. the president and ceo of the aspen institute. a new cnbc contributor. >> you know a great studio. >> i used to work. >> responsible for this? >> this the time life building. >> time life building. my office right up there. good reference. you didn't build this. >> right. when -- >> you know cnn, right after 9/11 needed a studio. i looked down on this place a bank branch first here and i think aaron brown, anderson

cooper many others used. it's great you're here. looks good. >> great to have you here. a couple of questions. we haven't touched on yet. apple. favorite topic. apple tv in the context of the net neutrality. >> talk about net neutrality what apple's doing, steve jobs, go to content providers and say, you want this show get it when you want on demand just by asking, you know i want this show now, and that's another reason you need to have experimentation. you can sort of have gate keepers telling you what can go on. i think apple will crack the ability to say, tv on demand what you want and do it -- >> is that in the box or form factor of a tv? >> i don't think the form factor, people asked me and mentioned in my book on steve jobs that he had been working on what does a tv look like? go back to music thing, ipod was really cool but more amazing was

him ham, all seven of the music companies to say, you've got to put songs in at 99 cents a pop. it's getting content connected to the software, connected to the hardware that was genius of apple for the past 20 years. >> dish do it. >> when dish does something like that it opens a way for everybody. once again, in tight balance, on the net neutrality argument it's an argument for net neutrality, people can experiment. >> you don't have the lighting specifications you used to use, do you? >> long story. >> thank you for being here. >> we should say, by the way, the steve jobs pick is out in october. we should talk about that. >> join us tomorrow for jobs friday. see you. bye. ♪

good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber at new york stock exchange. the whipsaw market action continueses. premark higher as we have a $15 billion pharma deal faceoff between germans and greeks. slew of retail earnings. oil's trying to climb back above 50 after the biggest one-day sell-off since november yesterday, 49.50 last check. ten-year yields above 1.8. coming back after a