airplane boarding pass could be putting you at serious risk of identity theft. plus three different bands getting into the rock and roll hall of fame and friday october 9th, 2015. i'm exhausted. squawk box begins right now. ♪ >> live from new york where business never sleeps, this is squawk box. >> good morning and welcome to squawk box on cnbc. if you're getting ready to head out to work and draeading this commute, this could put it into perspective for you. check out the traffic jam? thousands of vehicles bumper to bumper as people return to the city at the end of the country's national holiday. the big problem is this jam happened where 50 lanes.

that's right, 50 lanes merge into just 20 lanes. we thought we had it bad here but check this out. this was hours with these people at a stand still. we show you this to make you feel better about things about yourself today. >> some people abandoned their cars. >> that used to happen years ago in china. maybe five or six years ago and then suddenly people would just walk away from their cars and into the villages. but wow. >> this makes me feel better about my commute today. >> you don't live in l.a. that doesn't look a lot different from the 405. >> my first thought was china and second thought was l.a. >> but what is the widest highway? how many lanes? >> not 50. >> but wide. like 5. >> like 5. >> and across on both sides but yeah, 50. so let's get to the u.s. stock market. we're looking at what is potentially setting up for the best week since february for the dow and since december for the s&p 500.

this morning things were flat but we did see gain across the board yesterday. we'll continue to watch this. >> a couple of stories we're watching this morning. falling short of estimates. company hit by slumping commodity prices including aluminum. the stronger market not helping things. shares down on that news. next month they announced they would split into two companies in a bid to revive the stock a little bit. also european freight company buying u.s. based rival uti worldwide. doing that for $7.10 per share in cash or about $1.4 billion to roughly 50% premium to yesterday's closing price. elon musk has never been afraid to speak his mind and today no exception. he brushed off concerns that am could become a new car competitor. he called apple the tesla graveyard where employees that fail at his company to go work after taking a jab at the apple

watch. he then went on to say cars are very complex compared to phones or smart watches. you can't just go to a supplier like foxconn and say build me a car. it almost sounds like they struck a nerve with that. i don't think i've ever heard him say anything that pointed. i've never heard him that strongly worded against another company. >> people peak sometimes. you were talking about how anybody that talks about elon musk talks about him in these tones no matter what he's talking about. that's weird. i understand that the iphone is not a car but if i were to look at what transformed the entire world in terms of the way we act, okay i like your electric car but i'd like it to go 300

miles. y you haven't done an iphone, you didn't invent the personal computer. >> i'm very impressed by elon musk. >> look at all the things he thought of that didn't happen. >> he has no right to throw stones at am. >> i'm not going to knock him. >> you knew steve jobs. elon musk is not a steve jobs yet. >> i think he's getting there. >> he's in training but he's not there yet. >> you know who his best friend is. >> who? >> larry paige. so google is making cars the whole time and you never heard a word about google. >> google is another one compared to tesla at this point. you have work to do to rise to the point of how transformative google has been as well.

>> he's had a couple of bad experiences. >> at least he's trying new things. >> that's fine but the other person, his history is already complete. this is in training. how old is he? >> 44 years old. >> co-founded paypal and tesla and rocket ships. >> you love people about inventing themselves and creating something out of nothing. >> i think that you can jump when too many people defer everything you say, they write it down as it's coming from, like your infallible and you can jump the shark and then hopefully there's not a humbling experience on the way. >> he's had some humbling experiences. a company almost went out of business. like two hours left before they

were able to save the company. >> maybe it's just trash talk. >> that's why i think it has maybe hit a little close to home when you react that way. >> i'll have to check twitter. >> which camp has more -- >> more of the wacos. >> that ought to make everybody happy. >> good. i got them both. commodities giant glencore is cutting 500,000 tons of global zinc production. about a third of the annual output. prices dropped 30% to five year lows. gap shares are underpressure. the retailer says september same store sales dropped 1% and watch shake shack's stock today, they

will convert about 20 billion shares into class a shares. it will let pre-ipo investors cash out. new analysis reports suggest that mac sales are slowing to the lowest rate in two years. shipment of the apple product dropped 3.4% year over year. it marks the slowest growth rate of am computers since 2013. >> turmoil in the republican party. kevin mccarthy dropping out of the race for the house speaker at the last minute stunning just about everyone. john harwood is covering the story from d.c. what the heck happened? >> what the heck happened was that the house republican caucus came face to face with the fact that it is in chaos. you have a faction of members that don't know how to govern or aren't terribly interested in governing and they collided with

those who are and kevin mccarthy found that he did not have the support needed to take over the reigns from john boehner and we went into yesterday believing he would be dominated by the republican caucus and instead he came out and made this announcement which took everybody by surprise. >> the one thing i always said to earn this majority werer is haven' -- was confidence. i'll stay on asthma joir majori but if we're going to unite and be strong we need a new face to help do that. so nothing more than that. >> now the reality is its not a new face they need for the republican caucus. they need the faction that has been making it difficult to

govern to acquire the maturity to play with others and that's the problem. paul ryan who is, people are trying to draft into this job may for a short time be able to paper over that gap but he would face the same thing that john boehner and kevin mccarthy did. he made a deal with patti murray on budget levels. the conservatives did not like that deal. paul ryan is going to have to make more deals like that if he's going to be successful as long as we have a divided government and until the freedom caucus and people like them come face to face with that they're not going to solve the problem. >> i saw somewhere john, i think it was in forbes where they basically say this is parliamentary politics. what the republicans are dealing with is a loose coalition of 2 or 3 different parties. i don't know how you resolve that issue or why paul ryan would be able to hold it together for much longer than mccarthy or boehner would be

able to. >> he'd be able to hold it together for a little bit longer because of the credibility he has as a conservative. people don't doubt where his heart is ultimately but this is about maturity and the people who don't recognize the limits of the political power they hold in a divided political system, if they don't acquire the ability to recognize that then the republicans can't do their business. they can do it in the senate but they can't do it in the house. >> the guys in the freedom, even congressman brat they have their own guy that they like in florida. same name as -- what's his name, daniel webster? is that it? >> yeah, dan webster is not really their candidate. he's a place holder. >> yeah but then, it was saying him but when they said what

about paul ryan, said absolutely. called him transformational and could go in but doesn't sound like he's going to. all the stuff that's interesting about how split the caucus is, that is interesting but i think there's more to this story than we're reporting on and you know that there is. you saw the e-mail sent and the letter sent from the gentleman. >> are you talking about walter jones and all of that? yeah, that's fine and i don't doubt that there may be other layers to this. >> there's other layers to this and just his demeanor. >> fair enough joe but that's not why john boehner stepped out. >> no, i'm talking about mccarthy. >> i understand. but until you resolve the issue that forced boehner out you do

not have a functions caucus. >> i know. i understand that. >> whatever mccarthy's problems and the same thing is going to hit paul ryan again -- >> no, no that's not what i'm talking about. >> okay. i'm talking about the inability of certain people to accept the limits of what they can do and what they cannot do. >> when boehner stepped down everybody read this, the knee jerk reaction that we'll get through the debt ceiling and get a budget extended that carries us through the end of the year. what are people thinking at this point? boehner agreed to stick around until the next speaker is found but what happens with this whole idea of being able to shutdown the government at some point or another? >> the irony becky is that by extending this chaos for a longer period of time into the fall it's going to keep john boehner on the job and make it more likely that he disposes of

the issues and avoids the shutdown and the debt limit crisis. i think that john boehner as a patriot and somebody that sees what his party needs to get done and avoid is likely to resolve a yearlong budge deal and raise it through the 2016 election and when he walks away and hands this terrible job to somebody else he may have, as he put it the other day, cleaned up the barn a little bit. >> thank you. we'll talk to you again soon. >> let's turn back to the marke markets. melting up again yesterday. it's down 30 or 40 points. >> what reason? >> it's been moving higher ever since it turned around. >> it's the weird issue where it helps the energy stocks. >> it's been up since friday.

it's been up since the fed is back. >> we are back to the west week for the s&p since december and the best week for the dow since february. >> yeah, october is just beginning though. it ain't over yet. >> we're back on the -- you don't watch fear the walking dead but you see someone trying to go through withdrawal. it's horrible. you throw up and you're sweating and you get a little more and you seem fine again. you're feeling good. >> functional. >> but you're still on the drug but you're still feeling better. joining us is lou green. david voi. really lou, that's, you know, we're getting more mileage out of easy money again? >> that's probably the case because after the fed took a pass in september and then the jobs data was, you know, the worst looking the deeper you look into it and people are

pushing into the future the idea of when the fed is going to raise rates. however they haven't backed away from the idea that they're going to raise rates therefore i think there's limited upside just like there has been limited upside throughout the last six years. the market goes up when the fed expands it's balance sheet and the s&p is where it is now so that's the tricky thing. if there was to be a suggestion of more qe then you put the after burners on but right now i think that just delaying a rate hike is probably not enough to push us back to the highs. >> i have to get used to the idea of even thinking there could be more qe. so then we'd have to start watching for when we could end the qe again and we'd be in the waiting game for ending the next round of qe and then start the

waiting game around if we would ever go up. >> the one thing with waiting for the end of the qe, that hasn't played out. the market over the last six years as the fed balance sheet expands the market goes up until it's done. >> do you really think after burners could go on? >> that's been the pattern for the next six years. >> david where do you think we are right now? is the market going up on easy money or going up because we still have the prospect for a pretty good economy compared to the rest of the world? >> i think it's the third option. i think it's we're going up because the fed stayed on the sidelines and took pressure off the u.s. dollar and there's a lot of fears that you would see them rush out of emerging

markets and that didn't happen until the fed meets again. i don't think the market needs anymore stimulus. i don't think we need anymore qe. the u.s. economy is okay. this is an international issue and it's all related to the dollar in my view. so this rally can extend as long as the dollar stays in the range it's in now and market is going to go back down. >> part of the reason that oil has gone higher. not just supply and demand but also the dollar. >> so david, were you fortunate enough to deploy any cash when we were threatening to break 16,000? >> we most recently trimmed our equity exposure a little bit. we're fully invested but we look

at the fundamentals and we're seeing economic deterioration internationally of course but also at home and since the fed met you had a weak jobs number and weak manufacturing and exports. wage growth, 2.2 again so we slowed down since the fed met which suggests they won't raise rates until march. i don't think the fundamentals support this rally. we're enjoying it while it's lasting but i don't think it's sustainable until you get more traction. we'll have to see that starting with china in a couple of weeks. big round of data points coming out of china in the next couple of weeks. that's going to be important. >> would you say you're in a mode where you're selling rallies and not buying dips or would you just happen to trim a little? would you trim more? >> i would trim more if i thought china was slowing down

even more. of course you can speculate what the real growth rate is. if we felt it was going to 5 or maybe to 4, i would say yes we'd probably have to think long and hard about trimming more. >> they're mad at the colonel. i know that. i saw what happened to yum brands but thanks. i got a scare when i saw that traffic jam. what if every single person in china get ace car? even if it's electric cars. you need to power the grid to charge the cars. if everybody in the world is driving a car -- not everybody in the world can drive a car. why can't they be like you? >> you don't have a car. >> i don't. >> you're not part of the problem.

>> i'm not. >> you put your money where your mouth is. >> exactly. >> you're a good citizen. >> they'll get uber eventually. no, they already have uber. >> they do. >> the rock and roll hall of fame is about to get some new members. nominees for the class of 2016 just announced we'll bring you those names next but first as we head to a break, take a look at this date in history. ♪ actions. they speak louder. we like that. not just because we're doers. because we're changing. big things. small things. spur of the moment things. changes you'll notice. wherever you are in the world. sheraton.

welcome back. rock and roll hall of fame announcing class for the 2016 nominees. i like some of these other ones. good because the ones that we were talking about -- the acts eligible for induction, the cars should definitely be in. chicago. i can't believe chicago is not in. cheap trick, two hit wonder. no thanks. deep purple should be in. janet jackson -- >> that's who you're listening to right now. >> i would defer to andrew on anything jackson related. does janet rise to the level? >> i'd give it to her. absolutely. >> i know you like michael. >> the jbs. >> who is that?

>> not sure. >> steve miller, i know becky likes -- >> i like steve miller. >> nine inch nails. >> that's awesome. >> come on. nba. >> definitely. >> i can't believe they're not already in. >> and the spinners. the spinners, you probably don't remember but they were big. >> >> i can't believe the cars aren't in it. >> you don't want janet jackson. >> you think nwa should be in it. >> is it rock? >> no. i don't know how it works. >> i don't know how it works either. with janet i don't know how it works either. >> there's an 800 person voting membership. so it's like the baseball hall of fame or something. >> okay. yeah. yeah okay.

i don't know, andrew. >> how many janet jackson songs can you name? i can name zero. >> you were just listening to one. >> i know. but i don't know it. >> it's janet, miss jackson if you're nasty. there it is. ♪ >> okay. i remember the malfunction. >> that's what you remember her for? the malfunction with justin timberlake at the super bowl. >> you don't remember that? >> i do. i just described it. >> well, you acted like you didn't remember it. >> but you would have had to of been watching football to see it. >> i watch for the commercials. a little bit of news this morning outside of the music world. finance ministers and central bankers are gathering for the imf world meeting. that's where we find jeff . >> good morning, andrew. the message now at this imf world bank meeting has been we

risk another global financial crisis if policy makers don't work together and the sub text to this has been a message to the federal reserve not to move on interest rates too quickly. christine lagarde saying there's too much debt and leverage in emerging markets. very much the focus on the american consumer still continuing to pull the global economy along and the federal reserve not doing anything to damage that. i was in a late night briefing with the treasury secretary who has arrived here now and he said you know what, there is the capacity and the will elsewhere in the world to try to pick up some of the slack here and he pointed the finger at europe and asia and said this is not a job that the united states needs to do alone. we need to see those countries also engaging more aggressively in creating demand and you know what, he also turned that twin

message of the capacity and the will toward congress and said there are a number of issues domestically where we need to see congress pick up the slack and he pointed out tpp in particular. of course we've seen hillary clinton come out in opposition in recent days to that but he said we do need to see ratification on that and he also said we need to see the debt ceiling raised. the export-import bank back in business and funding for infrastructure projects but the point of jack lew's message was to focus on the imf and the world bank's view that the u.s. needs to be doing more here. saying the rest of the world also needs to get a little bit more in the game and demonstrate the will they want the global economy to grow at a faster pace than it is currently doing. back to you. >> thank you very much. when we come back this morning, attention all your road warriors. before you throw away your

boarding pass listen to our next story. why you could be at risk of identity theft. we'll get to that next. squawk box will be right back. excellent. researching a hunch, and making a decision. time for a change of menu. research and invest with e*trade's browser trading. e*trade. the great beauty of owning a property is that you can create wealth through capital appreciation, and this has been denied to many south africans for generations.

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♪ is she going to make it? >> somebody else sang it. >> but that's her song. >> i saw her perform it. >> she could be inducted into the rock and roll hall of fame. >> we'll be playing this music

all morning long. >> if you're like me when you get your boarding pass when you check in you probably forget about it. i use it as a bookmarker. winds up on my purse or on the floor. maybe something happens to it. there's a new report that suggests you better be really careful with that stub because all the lines and pixel marks on it contain a lot of personal information about you. there's security that found out this guy took his friend's boarding pass and was able to find out his frequent fly kwier number, name, information and was able to take control of the account and create a new pin number. >> even if they give you just a stub? >> yeah. >> don't you just use your iphone. >> i feel like if you're using paper. >> but it's nice to have the boarding pass. >> i worry if my phone runs out of battery so i print it out anyway and keep it with me. >> i go straight with the phone. >> i downloaded the ios 9

immediately. i make a lot of rookie mistakes. you know how do this. >> i'm waiting for the next one. >> been a week or two. >> we are talking a lot about the hall of fame. >> right. >> music hall of fame. >> so i'm excited about it but the mets are in playing the dodgers. this is exciting and then you have the cubbies are in playing st. louis which has been a dominant team. so i'm excited. i'm watching last night on fs1 and pete is one of the commentato commentators. >> pete rose? >> yes. >> no way. >> but he's wackier and crazier. he's so insane. someone said something about it and pete himself said don't talk about -- he's got this weird sort of cadence. but he was good and they were

all standing up and he had a bat. he was the greatest hitter ever but he's crazy. >> now there's a controversy over whether he should be in the baseball hall of fame. >> the reason i thought about it this morning is because someone tweeted is his the jet dark. someone tweeted does pete dye his hair and then they said joe kernen could advise on that. they mean because i'm from cincinnati i think. >> no. >> yeah they do. they're questions your hair color. >> you know now i got -- how can i -- >> i know it's real. i can see right here. >> not that there's anything wrong. >> i dye my hair. >> i know but i did the leaf blower challenge for the haters. how can i prove it's now dye. >> lift your chin right there. you're right. >> can you get in and see the grey. >> zoom in. >> the grey is there.

>> you can get that to look that natural. >> maybe it's too perfect. >> i'm sorry that my hair is too perfect. i'm sorry that i'm too perfect. >> the things you have to live with. >> tonight both nl teams like pete was classic. who is going to win the royals? and he goes well kansas city is more of a national league play. national league team. >> that's where my money is. >> exactly. anyway, do you like the cubbies. >> no. but who is your team? >> yankees. >> that hurt the other night. >> i know. >> one night after 162 games. >> but i'm a new yorker so i should root for the mets. >> but you're right the cubs finally break the curse. >> jerry seinfeld a lot of big people are mets. i never liked them. >> i liked them when wilson was

playing for the mets. like a long time ago. >> it's really not that long ago. >> final story, netflix. do you both subscribe to netflix now? >> netflix. >> i'm tempted to go back on. >> you do subscribe. they're raising the price by $1. >> so what. >> but remember the last time they raised it it creates problems. >> it was a 40% increase or something crazy and after they promised people they would keep it lower. >> so now with hbo going over the top and hulu and amazon and everyone trying to do the same thing, is there more competition and does that change the dynamic? is a dollar too much. >> it's been on my list of things to do and a dollar will not stop me. >> and by the way content costs they're going to spend $5 billion in 2016 to buy content

for netflix. 5 billion annually. >> they need this price increase. because they're having to buy content movies and tv shows. >> they're probably going easy because of the past experience but the dollar doesn't seem out rages you. >> i like it but i'm still mad whenever i try to find a movie -- you don't want to watch that. >> it's going to be harder and harder. that's why they're investing so much on original content. right now the competition for movies and other things. >> you can try to watch jaws and they'll try to talk you into watching splash. it's not the same -- >> on most cable offerings you can find any movie you want to rent that night, $3. >> oh, you haven't seen, there are certain movies everyone

should see. >> >> you do peter pan on netflix and they show you a play of peter pan from chicago or canada because they don't have the rights to the real thing. >> he walks on water too and reid hastings or whatever. you better get some movies on there to be able to watch. >> you are a tough critic this morning. >> the new american horror story hotel, kathie baits is so scary. it was troubling. disturbing. i saw things i was hoping my kids weren't looking around. coming up, geo political hotspots, we're joined with a map of the stories that have him worried. right now. (trader vo) i search.

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con semiing russia's intervention in the war torn country. our next guest thinks we have moved a step beyond a proxy war in syria. do you want to talk about russia? the whole missile situation. landing in the wrong place. >> the americans are saying yes and the intelligence hasn't been shared. >> explain what we're talking about. >> the russians having launched a battery of cruise missiles that didn't hit their intended destination. they did not warn anyone that this was going to be done until they were flying. the fact is, deconflicting is hard with a country that you're saying you're going to isolate as far as you possibly will. they have intentionally been

breaching turkish air space which is a nato ally. >> and european air space too. >> i consider the turks european but the europeans don't. but clearly the syrian war will be worse but the potential for conflict and between the russians and nato ally is real. >> it's the equivalent of a bad child saying you will pay attention to me and engage. >> this is strategic and i don't think it's stupid for putin. s a -- assad is losing power. the iranians can provide ground troops so the russians don't take as many causalities. that's why they waited for when they did plus the europeans are trying to get rid of sanctions on ukraine. a couple of days ago the militaries on the ground said they were going to back off of

their election that they were planning which is illegal. the cease fair has been holding. the russians are basically saying ukraine can be frozen but if you want any solution down the road you'll come through moscow. this helps them end the isolation. the americans are saying they're deepening. >> when clients call you and your number one global risk right now is what? >> what's your time frame? if it's a medium time frame it's the arise of the short-term standards. if it's the short-term time frame it would come from the escalation of the russian issue. >> you mentioned that there's new news on the china cyber. >> you know the summit went well. it was well managed but we did say beforehand that we were talking about putting sanctions against them because chinese companies have been benefitting from cyberattacks against the americans. u.s. government came out a couple of days ago and said there are three chinese

companies they have identified that have directly benefitted from cyberattacks. these are state owned enterprises in steel and aluminum. it is a big deal. if that means we are a precursor to direct sanctions because you can't say it and do nothing -- >> what are they going to do. >> we can. we have done it before. >> true. that's fair point. >> the right commentary from the right on the meeting was to come out and to say we have arrived at an understanding on this so they won't do it anymore on the cyber -- they thought that was a joke because they thought the chinese got the best of us by pretending to agree they wouldn't do it again. when will we know if there was an understanding? >> i think members of the obama administration that came away from that said we're glad they're at least willing to say there's a problem and sign their name to something but they weren't expecting a change in behavior. no one -- >> it seems like serious -- it

seems like we shouldn't be quite as ready to embrace all open and free relations with china if they won't somehow curtail this. >> and the problem that you have is that we don't have the tools on this issue. when the chinese are attacking our companies we know it's undermining them and i'm going to organize a summit and invite them and they're going to come and they're going to beg me to have more access to my market and tell me how wonderful i am. we don't have the ability to strategically align with our private sector who are doing everything possible to out flank each other. mark zuckerberg said would you suggest a symbolic chinese name for my newborn. >> are you kidding? >> no, i swear to god he did that and xi jinping's response

was i'm not going to do that and n i'm not letting you do business in my country. how do you respond when the people taking it on the chin are saying publicly no, we want to get in. the potential for sanctions to be implemented against china because of this persisting and expanding is real and the companies are not small companies. they're big companies owned directly by the chinese state. i don't see this getting fixed. >> why don't you see some form of retaliation in a terrible, terrible way. >> by the chinese? >> yes. >> the reason i'm mentioning this is if we heavy sanctions even if they're small against three chinese companies i don't see how that doesn't become tit for tat very quickly. when we started leveying sanctions a couple of years agatha didn't become anything we wanted. they're nothing compared to us. it doesn't effect america but chinese --

>> let's not draw red lines. >> let's not draw red lines. >> we could use a different color. >> some grey. i think most of our lines are grey and makes it easier. >> thank you. great to see you this morning. >> when we come back this morning, the start uptaking the so-called on demand economy to a whole new level. the company that brings a beauty team fit for hollywood stars right to your doorstep. the glam squad is here and we'll talk to them when squawk box comes right back.

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♪ welcome back this morning, investigation into uber's data breach last year in stolen drivers' records is focusing on executives at rival, lyft, thinking an intruder used a company security key on a public website to access up to 50,000 driver records. they deny the executives in question or any of the employees being involved in that breach. >> that's intriguing. >> intriguing. >> i don't know who to believe. we'll talk about a company applying an uber model to the beauty industry. glamsquad is an on demand app that's a beauty provider

delivering professional hair, makeup, and nail services to clients in new york, l.a., and miami. glamsquad raised $15 million. and joining us now to talk about the latest financing and the future of the on-demand economy is glamsquad's cofounder and ceo, alexandria wilkes-wilkenson. thank you for being here. >> thanks for having me. >> they can be at my house in an hour? >> they bring elite beauty independent professionals, delivered to your home or office or hotel room in three cities, new york, l.a., miami, and there's three beauty services, hair, makeup, and nails. >> the idea. uber makes sense to me, and i get this, but how do you make them feel comfortable, they will do my hair and makeup. is there a ratings system? how do you know who shows up at your door? >> so we are very conscious of

how important it is to send the best of the best, so we make sure that all of our beauty professionalings are licensed, trained, have thousands of hours of experience before they even come to try to be a part of glamsquad. we take only 8% of the beauty professionals who apply to be pa part of the squad and take it seriously. we go into the clients' homes every single day, and our clients give incredible feedback. some use us two to three times a week. >> wow. >> do i get to choose who shows up? whoever's closest, available, the first to take the job? do i have input at all? >> typically, we find our clients rely on glamsquad and all the beauty professionals are able to execute our signature looks. we have different looks, different names, and you can customize those looks so if you want your hair straight, that's the editor. if you want volume, that's the bombshell, but you can tweak a service so that you're happy with what you're getting. >> so what type of hair services

are we talking about here? >> so we offer today blowouts, updo, focused on women, no cuts, no color. >> oh. >> nothing for the guys yet? >> we're happy to send manicures and pedicures, and some men are using those services. >> there you go. >> it's a cool idea, but what's to stop somebody from using your app, saying what they like, and what's your number, i'll do it on the side? >> that's a great question and something we worried about in the very beginning, and what we found sour beauty professionals are so busy, they are often making -- they have the potential to make 1.5 to 2 times what they made previously, so they are loyal to the system. they know that if they were to be taking side jobs and sort of taking clients away from us, they could potentially lose so much upside in working with us, so it really doesn't happen. at the end of the day, the client, she's time starved.

>> what cut do you take of this? >> so, one thing that's great about glamsquad from the beauty professional is they get 20% gratuity. 50 dollar blowout gets an extra 20% gratuity charged. makeup is $75, and -- >> so blowouts are huge for anybody that -- you know about that? >> i do. >> anybody that -- because straight is better people think, i don't know. and it's $50 -- so $70? >> 20%. >> so it's $50 blowout, $10 for the gratuity, so it's 62.50. >> at your house. >> at 7:00 a.m. >> in new york city, we have professional women who love getting the services done just because before they go to work, so 7:00 a.m. in new york city is prime time. >> thank you. >> thank you. >> wow. >> coming up, the gop, really,

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earnings on, and the numbers are not pretty. mike thompson says where we could be in for a dismal quarter. without kevin mccar any in the race, they scramble for a new candidate. congressman peter king and harold ford will break down the race. a new fbi warning, holders of secure chip credit and debit cards, don't let the guard down. how you could be vulnerable to fraud as the second hour of "squawk box" continues right

now. ♪ live from the beating heart of new york city, this is "squawk box." ♪ welcome back. running up the flag pole. you know what that is? no, i'm not telling you. i'm with becky quick and andrew ross sorken, and the asian markets up, u.s. equities at this hour, they have been a little bit positive. good gain yesterday, and it's been a good week after a tough month and a tough quarter. the scary october time period is friendlier to those who like the markets. up to date on the watch

list. export and import price data at 8:30 a.m. eastern time, and 10:00 a.m., wholesale numbers for august and fed speak on the together as well. federal reserve vice chair bill dudley at 11:00 a.m. eastern time on "squawk alley," and separately, dennis lock you know hart gives a speech in new york at 9:00 a.m. eastern time, and chicago fed president charles evans speaks in milwaukee at 1:30 p.m. eastern time. a lot of news and headlines there, and in corporate news, apple removed applications from its app store over security concerns. at issue, use of certificates in the apps that could expose use of data by monitoring to third parties. nay are working to address that and get the apps back in the store. alcoa fell short of estimates, hit by slumping commodity prices like aluminum, a volatile currency market, and stronger dollar is not helping things.

last month, of course, they announced they would split into two companies. >> it is the most world time of the year, the floods of reports kicking off the third quarter's earning season. dom? >> the reason why you have some out there saying the markets are not sick, but they are not well is about what i'm going to show you here. it's earning sessions this time around, and -- >> dom -- hold on. we're having a problem. we may need you to come over here to set. yeah? i think we're going to do that. >> all right. i'll come here. >> he's going to join us on set, and we'll talk about what to expect, and mike, of course, s&p investment advisers service chairman, but what can we expect? people think there's nothing to move the market at this point. will the third quarter earnings surprise pleasantly or lousy numbers people expect? >> it's not going to be good

news. in fact, right now, according to the consensus, we're down 5%, negative 5% growth. this will be the first negative growth since the third quarter of 2009. that's not real good news. >> only good news is it's not a high bar to jump, right? >> looking forward, i think, we're at the bottom. if you try to put a spin on it, say, well, maybe this is the bottom because the outdated quarter going forward and data is murky looks to move up, but that's a good thing, and comps are easier as energy is less a drag on the whole entire s&p. >> just to put numbers behind it. you talk about the idea, the expectations right now for s&p 500 companies through yesterday down 4.5%. >> wow. >> in the wheel house you're talking about. those people say that, okay, well, you got to exclude energy. remember the days we excluded financials post the financial crisis? now they exclude energy. >> which is 10 --20%?

>> it's now 8% of the overall s&p 500. >> wow. >> it's important because energy is a sector that is expect eed show earnings declines over 60% if the analysts' sfiestimates c to fruition. >> wow. >> the bullish case is the three most important sector we argue in the s&p, technology, financials, and health care. the three biggest wanings in the s&p slated to show gains, be it modest, technology 2%, financials 8.5%, and health care at 4.5%. those three sectors do the heavy lifting now to counteract what's happening with the energy sector overall. >> what do you think? start with financials, mike. >> financials, you know, tepid, single digit growth, mid single digit growth. good margins, i say x energy,

your s&p's probably in the 2-2.5% positive growth. down 5% as of yesterday, so, you know, it's a big swing. you know, i think the real question comes down to top line revenu revenues. a negative number at 1%. you know, it's hard for me to think about this earnings season being anything too spectacular. the real question is how do you justify 16.5 times next year's multiple with earnings growth being the negative -- it's not positive, and revenue growth being negative, and i think what you have when you look at valuations, this, to me, after years of looking at this sort of looks like a wall of worry type of rally. the other thing i would point out is that you have, right now, that the fed is going back into this more of a dormant state position, there's a dividend

yield on the s&p. as long as it's the best place for income and fixed income instruments do not compete with it, it holds despite you don't have the cat least driving evaluations. >> what happens if the fed raises rates in october or december? >> yeah. that's interesting. i think what happens is there's a constant rotation from stocks moving boomers who are misallocated knew into anything that gives them a reasonable yield, north of 2.5%. what's happening in the market is that there's so much money waiting for yield to come out of the credit markets, that the good news is that interest rates go nowhere fast and the market is the arbiter of that. if there's yield, gophers pop the heads up. the bond is supported by people rotating out of the misallocation you have. >> what's interesting, though, you talk about, perhaps, the secular tail winds for these

instruments, bonds included. they say, oh, interest rates rise, but you have this whole segment of the population, possibly, that needs to reach for yield, go after dividend paying stocks or corporates, and so the question then becomes whether or not even if the fed raises interest rates, do you still have that kind of bid, that secular bid from those in the market buying bonds. boomers retire all the time. >> you do if the fed raises rates, but raises 50 basis points on hold indefinitely. you're not talking about -- >> sure. >> getting near 2% any time soon. >> no. if you talk about dividend paying stocks like that, they have been volatile this year. real estate, investment trusts, those things, volatile. the question is whether or not you see any kind of a real, real take down of the stocks just because the fed raises by 25-50 basis points. there are camps who say, yes, utilities will be crushed more than they have been already and

the reits will be the same way. there's an argument to be made that, perhaps, demographically because there's so many people who need these kinds of instruments that you're always going to have a bit of a bid to some of the securities, so when they drop, people step in and buy, perhaps, i mean, this is -- that's the argument that the bulls make for these defensive sectors. >> what's the probability the next move is q.e., not raising rates? what's the probability? >> it's got to be less -- very low. >> it really does. >> that would be something, though. >> joe. you know, i saw a well-republiced asset manager who did a survey of people, boomers, 53 years and over, they have 100% equity portfolios. how absurd is that? you have trillion equities that belong somewhere else. >> that's the nightmare scenario. we had one bad jobs number. that's a really just an outlier

idea, but think about it, think if we had a couple, and then it's clear, october's off, you know, i was sure it was october. i'm not convinced. >> last five objects, we've seen realities. >> whether they raise rates. >> oh, yeah. >> up until a couple weeks ago -- >> just last week, you had four governors including yellen saying there was going to a rate rise by december. >> this year. >> right. >> now we don't know. that what i mean, if they push it past end of 2016 and then there are -- if there is that slow down we've seen in the beginning of every year, i don't know why, or whatever it is, but i'm just wondering. i don't think qe again, but just think about it. that's, like, i don't think an asteroid will hit us, the 2 mile wide asteroid won't hit the earth, but what if there's another qe? that's frightening. we'd be so stuck, so few policy remedies. >> i think the market would absolutely spit that one up. >> we just heard they would not. one said qe is an afterburner. >> they are looking for the

symbol saying the fed is to the point where the economy is sustainable, anemic slow growth. >> been there, they have not done it. >> fact, but i would say that the one thing that the numbers are not reflecting is that consumer, the consumer sector is still the growth sector -- >> plus 11%. could be the best -- one of the best earnings so far. >> it's consistent. since 2008, the consumer keeps pulling this economy along and i don't think that stops. i don't think that stops. >> you have pressure from multinationals to not raise rates. down 5% s&p, like you said, with even including whatever -- including energy, you're going to have a hard time if you're the fed because you're -- the all the ceos are whining and crying. earnings down. you call it negative growth. i like how you do that. >> negative growth. >> there's growth, but it's negative. >> it's the wrong growth. >> negative growth of 1%. that's not growth!

that's shrinkage. >> now the market is going to actually take over the control of the yield curve because any movements in it, any particular -- >> yeah, that's not good either. >> sweeps in, and the curve flattens. >> can i say one thing about this? the idea here is -- i spoke to a lot of traders over the past few days here who said you're not seeing a reason to go higher or lower in the market place right now because no portfolio manager out there has a catalyst or reason to change the strategy. they are not trading. they are not doing that because they know don't what's going to happen. if there's a qe on one extreme or have a rate rise on the other end, it would at least give a reason for portfolio managers to change their strategy. >> or alter allocation. >> right. opposed to saying, okay, we're going to trade because people either put money into mutual funds or take marginal amounts of money out of mutual funds and only trading for these reasons for the next whatever it is. if it happens, you'll see action in the markets. >> all right.

dom, thank you. >> sure. >> mike, thank you. >> thank you. >> okay. coming up, republicans scramble for a new candidate for house speaker after kevin mccarthy quick the race. peter king and harold ford, jr. will be here next on the top candidates for the job, and soda stream is under pressure. the stock down 16% in the last six months. we have the ceo joining us on the "squawk" set, and plus, secured chip credit cards as a rule nearly to fraud. detills on the fbi's warning straight ahead. surprise!!!!! we heard you got a job as a developer! its official, i work for ge!! what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is?

dropping out of the race for house speaker, and peter king says we need a speaker who can bang heads and break legs, congressman peter king is with us this morning and former congressman harold ford, and, congressman king, at least starting with you for a sec, obviously, everything is used for political spin nowadays. democracy, many times, is ugly, and it's in the past there's been, you know, when a speaker is elected, there's a lot of jockeying, a lot going on, it will be taken care of eventually. is this much worse or a little worse than previous things seen in washington? >> no. i would say this is

unprecedented because in the past, you did have fights within a party over who the speaker or majority or minority leader would be, but with a decision made within the party, they went to the house floor united. so in our case, john boehner had the support of 80-85% of the republicans, stepped down because one faction was willing to bring the house down, shut the government down, and now we have cell phone mccarthy had easily 85% of the votes of the republicans, but you have 30-35 people who said when it came to the house floor, they would not vote for him, and that means nobody gets 218 votes and could have a catastrophic situation. i don't recall it being like this where interparty fights are taken to the floor of the house, especially with the constitutional officer, and the speaker of the house is not just the head of the republican party or democratic party. he's the speaker of the entire house, a unique position. the majority and minority leaders are the partisans, the speaker is partisan, but he has

obligations to the entire house, and i just think we have people in the party who do not realize that, a minimum knowledge of the constitution, and it can be very chaotic. it needs straightened out. >> boehner's going to stay, and people say at this point, not currying favor anymore to keep everyone happy, he'll work with democrats to do things necessary to do and not worry about the repercussions of the 30 gauys. >> ronald reagan was president -- >> you said it was unprecedented. i'm saying it's not. it's not the end. >> yeah. >> people out in the heartland are, like, christie said, i don't want to watch "game of thrones," i don't care who ascends or doesn't, do the business. >> we are agreeing. >> okay. >> it's not unprecedented to have republicans and democrats work together. that's the way it's supposed to work. listen, as republicans, we should try to get all we can, which espouses our party's position, but the president has

the veto power, the senate with the 60-vote rule. get the best you can and make deals. nothing wrong with making deals. policy and democracy is deals and compromise. people from districts with the overwhelmingly democrat or overwhelmingly republican, never had to deal with people who do not look, sound, and agree with them or know what it's like to compromise to get a a deal done. there's nothing wrong with making deals. that's what democracy is. it's competing interests coming together to try to work out the best arrangement they can for as many people. >> harold, without taking too much satisfaction in everything that's happening here with these, i was watching you sit there, keep seeing you smile, and then democrats are loving this? >> peter said it well. it's unprecedented not just to see a constitutional office, but speaker second in line to be president behind the vice president, the speaker would be president. there's huge responsibilities the speaker has, and peter's second point about people working together, we could have

a point -- which i don't know that the house will where you have a speaker supported by democrats and republicans in order to win. peter probably doesn't want that, but at the same time, he would not totally disagree. i hope someone like peter or tom cole runs for. >> could be anybody. you don't have to be a member of congress, right? >> which leads me to say that you could be candidate. >> i could be a candidate. to bring people together. >> newt gingribeginningingrich . >> i think a cole type leader in the house for republicans and democrats is someone to accomplish the template that was articulated this morning. >> no, actually, i think that is -- that is a possibility. my name, news day, does not agree with me, floated that idea, but i'm not looking for that. you mentioned tom cole, harold, i think cole, if paul ryan -- >> paul ryan, certainly, he would be one of the leading

forces. >> just no interest. >> by the way, this is -- in new york in the 1960s, the state legislature, democrats couldn't agree on who their speaker and majority leader should be in the senate, and nelson rockefeller came in, and there was a coalition support for speaker and a democratic majority leader with republicans providing the balance of the votes, so, listen, it's important that the government works. you know, christie is easy and outside to criticize. saying that, the american people don't care about the nuances. they just know that the people's house is not working. we have to make it work. we need democrats to do it, let's do it. >> so you're calling an end to the rule, essentially, which was that any vote has to be carried by a republican led majority on the issues. you don't think that works, and you're calling for an end to that, congressman? >> have the rule when feasible, but, for instance, last week, 151 republicans voted the shut down the government. 11 committee chairman voted to shut down the government. three people in leadership voted

to shut down the government. the reason they did it was because they knew that a coalition of 90 republicans and 180 democrats were going to vote to keep it open. you know, listen, whenever you -- it's possible, yeah, have a the rule, but running the government comes first, and if it means paying our debts, meaning defending ourselves against terrorists, for instance, republicans wanted to shut down the department of homeland security when isis was burning people alive. responsible people move forward. the speaker of the house really is -- he's above politics. >> congressman, just speak to the issue because it's what i think the markets want to know, which is does this increase or decrease the chance of the government staying open in. >> oh, i would say we have to keep the government open. i don't know what's going to happen. i hope that calmer heads prevail and tell the caucus they can play the games elsewhere. they can't determine whether or not the government stays open,

whether or not we pay our debts. how can you be conservative and be a deadbeat nation and not pay the debts? that's irresponsible. i would say, especially if boehner stays on as speaker. the talk is he'll stay on until there's a new speaker, giving him the opportunity to increase the debt ceiling by november 5th. we have to govern. there's so many things to argue about, disagree with, philosophical arguments, but those are legitimate issues, not shutting down the government, not defunding the department of headland security. >> working closely together in the congress, peter's point, if boehner stays on, there's a willingness to find a coalition of democratic votes to keep the government open. if republicans cow tower or placate to the conservative members, the handicapping number, you say it's a higher percentage we find ourselves in the unfortunate predictment of a government show down or shut down, but listening to peter

this morning, i'm encouraged. i think there's a growing consensus among some republicans including the rational ones own those who bend the institution for a period of time like peter that you have to find agreement, even if that means finding agreement with democrats to do the most fundamental and responsible things government has to do, which is to function. i applaud peter and tom cole and the ryan in the conference who understand that. >> did you -- you saw eva is not running for mayor? >> i did see that this morning. >> and? >> i hope that republicans in congress are able to find a leader that ensures we do not shut down government. >> what are you doing? do you have plans in 2017? this is joe's campaign. i'll draft you. i will. i'll draft you for this. do you want me to do this? start this ball rolling? >> you for paul ryan or cole? >> i love paul ryan. i'm not convinced, but how long for the session?

14 months? he wants to stay with his kids, i get that. i love that man. a guy with nine kids, father was a bartender, people want it. now you can't give it away. it's weird. isn't it? to not want to be the second in line to be president of the united states, you have people turning it down. >> it's crazy. >> i know. congressman king, thank you. >> thank you. >> peter, great to syou. >> me for speaker, you for mayor of new york? please. save us. what about the mets? you don't have a team in tennessee, do you? >> the cardinals were the team in memphis, but i'm a yankees man, but rooting for the mets now. >> okay. all right, good. good. i like the cardinals. thank you, harold. >> great to see you. when we come back this morning, china finished its golden week holiday wednesday and people spent the vacation at

the movies. unbelievable box office numbers when we come back. time now for today's aflac trivia question. in what game was the term "grand slam" first used? the answer when cnbc's "squawk box" continues. aa-flac! aflaaac. aaaa-flaaaac. someone's sandbagging. i'd be tired too. he paid my claim in one day when i got hurt. one day? serious hustle. serious duck. in just one day, we process, approve and pay. one day pay, only from aflac. ah!

hello, ken jennings. i haven't seen you since that tv quiz show. hello, watson. you can see now? i can recognize people, analyze images and watch movies. well i wrote a few books, did a speaking tour, i... i've been helping people plan for retirement. and i help doctors identify cancer treatments. is that all? i recently learned japanese... yeah, i was being sarcastic. i haven't learned sarcasm yet. i can help with that.

now the answer to today's aflac trivia question. in what game was the term "grand slam" first used? the answer? whist, a forerunner of bridge, where it means winning all 13 card tricks in a hand. welcome back, everyone. this is cnbc, first in business worldwide, among the stories that are front and center this morning, worldwide pc shipments dropped 8% to 74 million yunits in the third quarter. they cited the stronger dollar, making them costlier, and united continental seeing better than expected earnings, they site extra revenue from frequent fliers, and commodities giant is cutting 500,000 tons of global sink production, a third of the output.

zinc dropped 30% in the last five months to five year lows. some block buster numbers from chichina, the holiday set office records, totaling an estimated $299 billion, yes, billion, 70% increase from last year's total. the country is home to more than 5600 cinemas serving a population of more than 1.3 billion. in incredible, right? >> a bunch of imaxs too. saw a lot of mission impossible, right? >> u.s. films -- >> action flicks, yeah. >> right. check this out. a tarp attack caught on tape. a grounds keeper slips, nearly run over by the tarp at the game. there was a rain delay, and the up licky keeper was not injury. they defeated the rails, and as you know, that guy is backing

up, not helping him. you see that? like, oh, save yourself. i saw the first couple innings, and just right out of the box, he could -- >> oh, too late to save him, oh. >> two games tonight. >> and news from canada, and, you know what? the other day when i -- >> we just talked about this. >> randy quiad, we talked about him, he had problems years ago. >> is that him? >> yes. oh, my goodnd. >> the actor was released from jail, but faces deportation to the u.s. next week. he appeared in a hearing with long hair and an unkept beard, but that's in the eye of the beholder, i think. if you followed the story. in 2010, this is what i was talking about, quaid and his wife charged with trespassing causing damage to the guest house of a home they once owned. they fled the u.s. saying they were victims of a persecution.

quadi plaplied for residency in can canada because he was being stalked, and that was denied, and he's arrested this week because authorities felt he would not comply with app order to leave canada by next wednesday. they declined to comment as they left the montreal immigration office -- >> "christmas vacation," so many -- >> an interesting look. rerack it. i was reading. i didn't look at it. yeah. >> or santa. >> cousin eddy, dude, wow. look at that. he's not wearing the white shoes. those are sharp, clark. really sharp. remember when he says, no, no, you can't buy us stuff for christmas, no, no, no. okay, but here's this list.

>> here's the dog food, and get something really nice. we did the jelly of the month club yesterday. a lot of vacation -- >> we're stuck in the '80s. >> yeah. coming up, daddy says i kiss best. anyway, french kiss best. beverage wars coming to a kitchen top counter top near you, and keurig taking on the cold drink maker, but soda stream is working on new innovations of its own, both stocks pummelled, and the ceo will join us next on the "squawk" set.

welcome back to "squawk box," cola wars headed to the kitchen counter. the new rival, we'll talk about that, keurig partnering with coca-cola. they make a case on "squawk on the street" last week, saying

why they'll be on top. >> we've listened a lot to the consumers of in-home machines today who have them in the home, and what they said is they want a machine that comes out cold, the product has to be cold, so we deliver that. they told us they want it carbonated without a source. it's in the pod. they don't recycle it. >> the move comes after a tough few months, soda stream down 20% year to date, and keurig down 50%. here to discuss this is daniel, the ceo of soda stream. good morning to you. >> good normorning. >> you brought things with us to show off. what do you think of what he just said? >> look, you know, i think it's much bigger than that, whether there's a canister or not, we are pioneering the industry of home carbonation, have been for many decades, been in the states for five or six years, and it's a big honor, a validation of the category that a player leek

cocoa la together with keurig decided there's merit in home beverages, the significance here. which is better? the consumer will decide. >> will you make them cold automatically? >> it's in the works, launching in a year's time. it's not about whether it's cold or not. there's other factors. it's more important to make the consumer make however they want. you decide how many bubbles, how sweet it will be, and it has to be healthy. there's nothing healthier than water. that's what we co. >> are you focusing more now on carbonated water opposed to coke or pepsi or whatever's going to go in it? >> that's right. the that's the big distinction on what soda stream has been doing for a long time and what coca-cola is doing. we are a -- we are a sparkling waters company. take tap water and press a butt button, and you get sparkling water, and att ethe flavors you want.

coca-cola is a sugared soft drinks company, athey make a devees to make what you could in a can, that's the distinction. the consumer decides what they want, coke at home or healthy waters at home. >> carbonating it with c02? >> that's right. >> classified as a pollutant by the epa. >> c02 is perfectly to be perfectly healthy. >> i'm with you, believe me, but this is the only context you can have the c-word without someone accusing you of war in syria. it's regular carbon dioxide, they conflate with carbon and smoke and soot and that stuff. it's an odorless, color es gas. >> it's different from co. >> we're not talking about carbon monoxide. it's co, 2, classified as a pollutant by the epa.

>> telling you the absurdity. >> fine. >> the beverage industry is one of the biggest categories in the world, and there's three converging factors going on. megatrends, health and wellness, environment, we're polluting the world with a billion bottles of cans a day. a pollution? a billion bottles of and cans produced and most are trashed. we'll live in trash, and the third trend is empowerment. they want to be empowered to customize and personalize. that's what we do at soda stream, okay? that's what's changing those three forces changing the beverage industry today, and coca-cola recognizes that they have to provide a different delivery system to the consumer. they are doing it at home like we've been doing for decades. >> just speak to this. so pepsi was working with you -- >> still is. >> still is. she says, when you go to make your own, it's hard to replicate the taste of the original product, so they taste the product at home, oh, doesn't taste as good. >> pepsi, out of the gate,

working with us starting a year ago, and we're expanding with pepsi right now, decided they don't want to deliver the pepsi in a can at a home version. they want pepsi home made. it's different. it's half the calories. it's naturally sweetened, and the consumers make pepsi the way he or she wants, sweeter, more bubbles, less bubbles, and that's what we do with pepsi at soda stream. that's different from keurig cold. they provide what you get in a can at home for more money. >> when i was thinking about my daughter loves, all she'll drink is carbonated water, okay? i was thinking, to use tap, people don't want to drink tap. that's why they buy bottled water in the first place. if i use bottled water like an evian or king's supermarket water, isn't it easier to buy? i have to buy the bottled water and carbonate it. how much cheaper is that than just buying carbonated water?

>> we're in 45 countries of the world. >> not everybody has bottled water? >> in the modern world, europe, u.s., japan, people drink tap water. it's good, it's healthy, and we work with municipalities. there's no issue with tap water in the modern world. that's why we're not going to china or india tomorrow. you can make your own. you won't taste the difference between that and what you pay dollars for, only this is 8 cents a receivering. >> does anyone buy bottled water and carbonate it? >> i don't know. >> is there a filter in there? >> of course, yes. we have products that provide filtration in the future. we have 25 million people using soda stream regularly. we're the biggest brand in the world. we're bigger than others, and -- >> does the cold threat worry you? i mean -- >> no. we welcome this competition. we need this competition to succeed.

look at the coffee category, the single serve coffee business, it really took off when competition happened. it was not keurig alone, but so many others came in, that's when everyone needed to have their single serve coffee maker. we need this competition. we've been lonely in the category. it's a new category. it takes some time to build, and we welcome this so much, embrace it, and it's different. competitors have a different story here, okay, they do soda, the sugary drinks, and we do the waters. it's time. this is the future of beverage. ten years, everyone has a home carbonation device, no one is carrying bottles or drinking that unhealthy stuff. >> do you short soda companies? >> no. >> if you're long or short the soda guys? >> look, the brands that represent the big soda players are power. . if they are smart to extend into the new delivery systems, which they are, pepsi and coke, there's a future in the

industry. >> dame, thank you. >> thank you. >> appreciate it. when we come back this morning, hockey's new home in brook land, the barclays cement center, and at the top of the hour, darrell issa says if he's a candidate for the house speaker job. stick around, we'll be right back.

all right. the new york islanders are coming to town after more than 40 years on long island, the hockey team will play the season's opening game at the new home in brooklyn, and they are playing a key role in that, ceo of barclays center and brooklyn mets and leads the business operations for the new york islanders and is joining us now on set, resurgence in hockey, it's nice it's coinciding with the move. what a sweet spot. >> we're excited about it we relocated years ago, never thought we'd have the chance to do it again. tonight is opening night. we played a defending stanley cup champion, the blackhawks. >> rangers beat them. >> they did. hope any they'll lose today. it's been a two year journey, you know, main taping the old

traditions from long island, and that was very much a big part of the transition, but also infusing a little brooklyn. >> what do you mean, what traditions? >> i mean, you know, the franchise was out for 40 years, a fan base accustomed to different things relating to how the game is presented, and we've tried to take the traditions over to brooklyn, whether it's the pa announcer, the organnist, pay attention to the banner, the arena, and we want them to feel welcomed, but also infusing brooklyn. >> this is the new brook lip, right? >> the brooklyn flair. this is a third jersey. since moving to brooklyn, black and white is adopted as the color. we'll wear it 12 times, and right now it's the number one sell eer nhl. weaver proud of it.

these stripes remit the four cups won in long island. we tried to maintain the tradition and infuse brook len. >> there are complaints, but did you turn the corner 1234. >> i think so. you know, the fans have been active via social media, and i learned a lot from them, and sometimes they are nice, other times they are not, but that's the world we live in, but, you know, tonight, sets up a new chapter, and i think with the fans seeing at the game tonight is balance. we'll bring the old and infuse the new, and i think, together, we'll grow together, you know, throughout the season, and i think it should be a great experience. >> how is the barclays center, it's been three years -- >> it's been terrific. celebrated three years, the music business is terrific, and we have the chance to have the biggest year we have had. boxing is big, the mets, family shows, 240 events this year, building, and with the islanders

coming in with their 44 dates, that makes us that much busier. >> who do you compete with? madison square garden? >> the market's big enough for all of us issue and i think we've proven that. i mean, in the m certification g and barclays center, they are ranked as far as the top performing venues in the country, if not the world, since opening, and, together, we are growing the market here in new york. >> manhattan, there's no more land. it's excepensive here. you can't live here. brooklyn is ready. >> we're there. part of the renaissance in downtown brooklyn. many great retailers are moving to brooklyn. the demographics are terrific. >> do you see that mayweather is talking to pacquiao, can you do that? >> we're big in boxing. >> let's do that. i don't want to go to vegas. >> i don't know that that story was real. >> come on. there's a rotator cup problem. >> if it's real, we want to be the host.

>> can you below they'd do it again? >> the last one was disappointing. >> how much more million? >> it was a meganight. >> do it again? >> we'd love to be a participant of it. >> oh, my god. >> cia zrazcrazy. we watched it together in omaha. >> that's right. >> all three of us. >> amazing. >> cool. >> janet jackson can open. i don't know. thank you. >> thank you so much. >> thank you. >> appreciate it. coming up, a new warning on security vulnerabilities that supposedly secure chip credit cards and debit cards, details after the break. (vo) what does the world run on?

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welcome back, the fbi issued a new warning, enhanced security pins are still vulnerable to fraud. we are joined now with more, and, aman, this is a concern. we thought we were safer, but not as safe as we maybe considered? >> that is right, becky. consumers and banks work to switch over to the microchip enabled credit card system called chip and signature, the name of the system that all the banks switched over to here in the united states, but the fbi alert that came out last night. look at the image. you see what the fbi sent out to everybody in the country. this goes out to retailers, consumers, everybody. they are saying that these new credit cards are still, quote, vulnerable to fraud, and vulnerable to exploitation by

fraudsters. this is a battle between the retailer and banks, and groups react overnight to the fbi alert that went out last night. the national retail federation has argued in the past that the banks have not gone to a high enough security standard. they've gone to the so-called chip and signature standard, not to the elite chip and pin standard they'd like to see. they'd said we think the fbi is on the mark. the banks in the u.s. chose to implementless protections. the national retail declaring victory given last night. the banks, however, talking to industry representatives last night, they say they want more clarity from the fbi here because they say the fbi is actually advising consumers in the alert to do something they can't do, which is to use the chip and pin technology. that technology, they say, is not available in the united states. it's not planned on being available in the united states, and this goes into a long running battle between the retailers and the banks over who is to blame for the data

breaches seep in recent months. the banks want clarity from the fbi, and if we get more clarity from the fbi, i'll bring it to you as soon as we have it. >> great, thank you so much. looking forward to it. >> you bet. stop eating these protein bars during the show. coming up, republicans scrambling to find a new c candidate after mccarthy dropped from the race, and darrell issa served in the house for 14 years, is he planning to throw a hat in the ring? >> oh, chicago. >> so, yeah, chicago might get in. we'll be right back.

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40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town, the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward.

40% of the lights were out, but they're not out for long.they're coming back. chaos in the republican party. kevin mccarthy drops from the race for house speaker, suggesting that the party may need to hit rock bottom before it's governable. congressman issa, a possible candidate for the speaker position, talks dysfunction in the halls of congress and what he plans to do about it. is there a doctor in the house? >> bent over like this, i'd feel 100% better -- ♪ moon river >> the new program for practicing doctor interest in

getting their mba, and it's all online. jack well welch and medical systems joining us for a special announcement. plus the scary business of halloween. the numbers are frightening, but could a pumpkin shortage kill the holiday spirit? grab a chain saw. 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." all right, rubber stamp, deep purple, yes. yes. >> take them in. >> hall of fame. yes. welcome back to "squawk box" on cnbc, first in business worldwide. some people have written in, they want to like organize some type of demonstration that --

>> you have to have somebody you want to put in it to look forward to every year. >> i guess so. cheap trick? before the cars? before deep purple? oh, it's app outrage! >> yes. >> the futures are indicated now up about 35 points. checking out the markets in europe, which are responding in like fashion to the continued rally seen yesterday, and now they are all up more than 1%, portending some good things, perhaps, for markets here today. >> okay. a couple stories that investors are talking about this morning. oil prices are rising again. crude on track now for the biggest weakly gain in six years. brent rising 11% in the last four session. meantime, wti crude is now at a two-month high. looking at 50.28. alcoa fell short of estimates, hit by slumping commodity prices, including aluminum, and

volatile markets in the stronger dollar not helping things, shares down last month after announcing they would split in two companies. gardener reports they dropped 8% to 74 million units in the third quarter. max sales there slowing to the slowest rate in two years, and that may explain why dell may be wanting to go off and do an emc and get as far as way from the pc business as humanly possible. >> there's another story today, house republicans are going to be meeting this morning on capitol hill. congressman kevin mccarthy dropped from the race for house speaker, leading to the question, could the next best guest be in the running? joining us right now is california congressman, darrell issa, thanks for being here today. >> thanks for having me on. obviously, it's an interesting time, which is not a good thing, but, in fact, it is an opportunity for republicans to real soul search which direction we're going to take our party on

america's behalf. >> and, so far, your soul searching, what's that brought you to the conclusion? >> that we need a cap dat as kevin mccarthy said yesterday that gets to 240 members, bringing conservatives back into the fold feeling they have a seat at the table, they can have an say jagenda. >> who do you think is the best candidate to do that? >> well, i certainly, when they float paul ryan's name, all of us get excited that paul could bring us together, but can ditly, paul has not yet said he'll do it. a lot of people are still urging him, and, hopefully, this morning, we'll find out. >> if paul ryan is not interested, if he says no again, then who is the choice? >> well, you know, from the field that ran, i don't have a second choice. i am really looking beyond that. i said this morning that i would

consider, i am considering whether or not to put my name in the hat. to be honest, i probably am better suit eed to be the republican leader or committee chairman, but that's not a question of suiting at this point or even experience. it's a question of can we come together? can we get our broad party together on a set of common value so that we can start putting 218 consistent votes up for meaningful legislation? that's what we'll be talking about this morning. it's an important time for republicans. we have a mandate that we have not yet met after the last two elections. >> congressman, the real problem is that the 30-40 republican congressman who are with the freedom caucus, who are associated with this, they are not interested in cutting deals and seeing things with the other side. they would like to see their initiatives enacted and think that leader boehner did not -- or house speaker boehner did not do that. they thought he was too willing to compromise and give in.

if you were to take on the role of speaker, how would you go about doing that? would you insist on republicans having their say and having their voice, or would you be willing to compromise in order to get thing passed the senate and signed by the president? >> well, first of all, the last part is an essential part of governing. it is about not compromising on your values, but compromising on how much everybody gets in a process of moving in the right direction. i will take a little issue. the interpretation that the 40 or so members of the freedom caucus are an all or nothing crowd couldn't be more misunderstood. many of the members served as fantastic members, even chairman on the oversight committee for years. they are people who, in fact, simply want to be heard. they want to be recognized that they have good ideas, and they want some of those good ideas included in legislation. that's a long way from take it or leave it. the fact is they are not the

problem. they are part of a challenge that we have to meet the expectations of the american people. you know, when leader mccarthy said 240, he didn't say 247. you're never going to get everybody. >> sure. >> the fact is that i believe strongly that the members of the freedom caucus can, in fact, have a seat the the table and can be and are necessary to be a constructive part of a republican-conservative agenda. >> you say it was the freedom caucus, they were in the at fault at this, but frustrated by john boehner. do you think he was at fault in this? >> i do. i think that speaker boehner when he used terms for unnamed members that were somewhat felt the agenda was not moving, he forget it was a team issue everybody has to be represented at the table, and, in fact, the speaker of the house is a person who has to make what needs to be

done happen, but at the same time, the leader, the whip, they were often, i believe, telling speaker boehner that they had -- that he had to maybe do things a little different. i'll give you an example i used earlier this morning. we voted a $14 billion program for nih called the cures act. nothing wrong with the con cement of trying to get more funding for research, but we did it with a phony pay-for, smoke and mirrors, ten years to pay for it, using petroleum for the second time. you imagine how american people and younger members sent here for honest accounting and to cut the size of government chafe at the idea that there's a $14 billion new program that spends 14 billion in five years and claims to pay for it in ten years, some of which is by selling the same strategic oil already sold in the budget process. for anyone other than a businessman, they don't see the

ridiculousness in seeing the same oil twice as a problem, but i do. a lot of the freedom caucus, those are the kind of things that shouldn't have come to a vote without honest accounting of how to pay for it. >> my guess is john boehner did not do that because he's looking for tricky accounting and lie about it, but my guess is it was too tough to come up with other programs that 218 members would great to cut, is that what you think too? >> well, becky, i'll use the example appropriately. this was a completely discretionary decision. it did not have to come to the floor. you know, while the reauthorization and reforms in the xm bank are bottled up because the chairman does not want to move it, quite frankly, there are lots of other bills that the chairman want to move that boehner's not moving. he made a decision to move this. it did get the majority of republicans, but many of them saying we could have done better than that, and those who said no were not saying no because they don't believe in the cures or in the nih, but they voted no for

the most part because they found it to be an unacceptable way of expanding government. so that kind of thing within our conference, it's not a question of what we do. it's a question of who we listen to and how we do it. there's a republican, a conservative, a fiscally responsible way to fund programs, and then there's the way where you do it say, well, we'll pay for it later. we did that with medicare part d under president george w. bush, pay for it out of taxes, and candidly candidate obama said we were irresponsible because we were expanding the deficit. republicans are tired of expanding the deficit. if we can do a program, we have to know how we're going to pay for it, and if we can't pay for it, second guess whether or not to do the program. >> congressman, you said something a moment ago about john boehner and his leadership style, and when frustrated, he called other congressmen and women names?

>> the crazies, the idiots, that sort. >> to the faces or behind closed doors? >> look through the record. some were fairly public. look, john boehner served a long time and worked hard, and he's dedicated his life to this institution. he believes in the institution. when he made a decision that he was no longer the right person to do this, he did so out of concern for the institution. he has the respect of members who disagree with him on what he did, but not on his motives or the fact he was dedicated to congress. the fact is, he found that he was no longer the right person. kevin mccarthy found he couldn't get to 240, so starting this morning, we are looking for a consensus candidate or team that can get us to 240 or more. that's what we need to do because speaker pelosi is not -- former speaker pelosi is not going to help us move an agenda. we have to move it mostly on the backs of republicans and from

time to time, conservative or free market democrats that are willing to come along. >> you said that you are considering a run. you'd like to see paul ryan run. if he does not, is that the biggest deciding factor, if he does not run, you will run? >> if we can't find a consensus candidate, then every member of congress needs to be willing to step up to the plate and ask the conference, could i be that consensus candidate? if we can't find a single candidate, then i'm very much calling for us to reconsider the entire team, to build a balance of the speaker, the leader, the whip, if that's what it takes in order to have all parties at the table and feel that they have a real voice, a real voice in management. >> mccarthy says he's staying, but if there's not a consensus candidate, you think the leadership of the republican party should be tossed aside and voted again? >> the word "tossed aside" is

inappropriate. everyone memen menwants a worka conference. no one covets the job so much they would through the future under the bus. the challenge before us is one candidate to unite us with the existing rest of the team. if we can, that's the first goal starting at 9:00 this morning. >> congressman, do you think that paul ryan looks at, you know, what his day-to-day job would be, and he sees that, okay, i try to bring the two sides together. the minute that i don't satisfy either the freedom caucus or the minute i do satisfy them and i hear it from the other side. it's personal. it's ugly. they are going -- i can imagine what the freedom caucus would say to him if his conservative feet were not, you know, did not live up to their expectations. who needs that? who needs that? how can anyone bring it together? i'm not -- most -- usually people want to be speaker of the house. it's unbelievable prestigious and quite an accomplishment and to serve the country as well. this is a sad commentary that you can't give the job away

because of what it's going to entail. >> well, first of all, when it comes to paul ryan, i believe that he, with a young family -- >> i know. >> and desire to travel less than the speaker would have to, and with his desire to do real tact reform, to really make the system work in the 21st zenk century, those are his priorities. >> though, the children were younger running for vice president. >> it would be nasty. only 14 months, too, congressman, so for your country, if it was not such a, you know, daunting challenge, maybe he'd say, okay, 14 months, okay, i'll do it. >> well, you're making a good argument, we're going to be continuing to make that argument with paul ryan, but on the other hand of it, understand the business of being the speaker of the house, not just now, but most of the time, is a little bit like the great honor of being allowed to speak to the entire town on what you truly believe, just before they tar and feather you. >> right. that's right. that's -- you heard that.

that must be what -- that's the common perception. you heard that before, right? about being the speaker? i'll use that. i'll remember that. >> use it liberally or conservatively. >> you talk to everyone before you are tarred and feathered, perfect. >> thank you. >> thank you. when we come back, online prescription for doctors to earn an mba, new offering from long time "squawk box" guess, jack welch, and the ceo of thomas jefferson medical systems and university. check out futures rights now before we head to the break. looking at green arrows, and the dow would open 52 points higher. back in a moment. (patrick 1) what's it like to be the boss of you?

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you can change that if you need to. rising cost, changing technology, and increased regulation, welch, today's physician need bedside manner and business sense that jack welch is teaming up with thomas jefferson university online. the executive chairman of the jack welch management

institution, and steve glasco, welcome, gentlemen. great to see you. the rationale, i mean, i understand it in today's world, an mba would be invaluable to a doctor with a pc or professional corporation orments menmen mew the real world. >> 400,000 doctors in the world without an mba practicing, and with the changing health care regulation, it's a opportunity for us and them to come in and joining up with steve here who is on the forefront of changing what he calls population health at jefferson, the two of us, it's a dream. we have nine students already without doing anything. doctors who just want to get a handle on the business. >> and, steve, i will bet we've heard earlier this week that one of the reasons we can't get costs under control is because

there's three desperate entities involved in every decision. the doctors don't think about the treatments cost, the party's not thinking about it, the insurance thinks about it. you have a doctor with a business sense, everybody's watching the ps and qs. >> i'm an ob/gyn, and i figured if i can deliver a 9 pound baby, i can figure out business. we have to focus on the individual. we have to think about the population population, how -- >> steve, that baby's coming out, dude. just because you can deliver a baby doesn't mean you're jack welch at general electric. the baby's coming out, can you stop the baby? you sit there. give it hot water. >> i can't stop the baby or health care changing, but at the end of the day, the industries with the most disruption are academics and health care. >> agreed. >> and you got them both. >> ability for us to have a relationship with jack welch

clearly someone who kraecreated leaders and positively disrupted business, and thomas jefferson is a fantastic relationship. >> would the doctor have to consider himself a businessman to want an mba? run a professional corporation and employ, you know, other doctors, or would just a country doctor benefit from an mba? >> i think both, but i think the fact is we're a couple trillion dollar industry, and deciding to go into business and manager, it's not just finance, but being a manager. it's just as important as you decide to be a neurosurgeon or family doctor. everybody need an mba? no, but with everything changes, i'm confident if i was out there practicing, i could get the jack welch management institute, thomas jefferson university relationship. >> think about how busy doctors are and how much time it takes. must be easier online. >> there are several schools out there now offering these types

of things, but they have to go to a campus, give up their time. we're going to have a fully online program to do at nights and on weekends, and the price is going to be $39,000. >> so it's $40,000. >> $40,000, and the others are a hundred grand, et cetera, and you go in residency for a month or ten days, three times a year. >> and give up your practice. >> they captain afford to do that. >> without the residency aspect and human pieces, what's that do to the educational experience? >> we're over a thousand students, offering real life experiences, and they get raises and promotions, so the same happens to a doctor. we're not teaching actual medicine. we're teaching -- steve, tell the courses you'll be offering.

>> yeah. things like health care law, health care problematics, understanding data, i mean, again, we have a college of population health, only one in the country. how do you care for a group of people with the best quality at lowest cost? your question, the key will be having the faculty, and they do this very, very well, saying, how can you apply principles to what you are doing now. they have a residency in a way. it's their real life. >> how fast can you do this? >> 18 months. >> that's not fast enough. >> wow. >> that's fast. >> if only ben had, you know, the left -- did you see that -- they set him up yesterday. >> the 18 months is my fault. i can't be fast enough for jack, but academic world, that's fast. >> those who couldn't explain the debt ceiling are hammering ben carson because he tripped it up. too late for him to get an mba before the election? >> we'll give him a scholarship.

>> all right. >> very good, steve. >> excellent. >> that's exciting, the program to change the focus of doctors and allow them to cope with obamacare and the other stuff out there. >> steve, i guess you are making the stuff almost up on the fly because the entire industry is changing so fast. >> it is. we changed the vision. we were a hospital company with the most amount of beds in philadelphia, and our new vision is we will reimagine health care and education to create unparalleled value. reimagine value. jack welch. >> how much is the individuals paying versus what programs are for them? >> well, we don't know how hospitals will treat it. >> right. >> companies are now paying it in our program. >> okay. >> in the jack welch management institute. 40% i told you. >> i think what you'll find is ceos say, oh, thank you, if i get 206 my docs to get this, this would be great. >> you have them all. >> we have 70 or 8 o places i talked to, and, boy, if you can

help me get my docs -- we went through healthcare reform, think about it, all the transformation, we've not changed the dna of the it is physicians, still learning the old way. this is something that individuals will decide to do, and their companies will decide to do it. >> okay. >> thank you. >> thank you. >> thanks a lot. nice to see you. >> you too. >> thanks, appreciate it. when we come back, the slow down on china on everyone's mind, whether there is more downside with john rutledge, and then, trick or treaters for halloween fans running scared. there is a pumpkin predicament going on. i don't know if you heard yet, a shortage, the future of halloween in a moment. we've got trouble in tummy town. peptocopter! ♪ when cold cuts give your belly thunder,

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welcome back to "squawk box," rick santelli with breaking news. september read on income and spending, oh, i'm sorry, import crisis. import prices. down one tenth month over month, a smaller drop than expected looking for numbers down .50% and last month it was revised from 1.6 to 1.8. year over year, down 10.8 7, but shocking, but we expected the number down 11%, and last month was 11.9. the other way, exports down .7%

minus 1.4. becky, back to you. >> thank you, sir, very much. have a great weekend, all right, rick? >> you too, becky, go cubs. >> oh, yes, we're rooting for you guys. steve liesman has more. steve, what do you think? you were deeply pouring over that the entire time. >> we were talking about janet jackson. i didn't look too much at the numbers here. a little better than expected if you are concerned about prices falling. rick is right, looking for 11% year over year in decline in import prices, now 10.7. at the margin it does not matter. the key issue there there's an impulse from overseas, one that plays largely at the fed table. we sth we saw that yesterday in the minutes where i was surprised it was not a close a call as people thought it was. the idea was when you read these minutes, there was no strong argument on the table it seemed to raise rates. it was all about why they

shouldn't. now, i will concede the context was one to raise or not, and they never put forward, but in the context of -- i look forward to a motion to hike rates. it was not on the table, no strong argument, but hawkish comments, but not a lot. this is data dependent. as data comes in, there was a general sense that remember, they go in june, backed off of that, the data was squirrely, and data was on the table firmly. you had dudley saying after market volatility the case was less come pelling, stan fisher said it was on the table, can't wait until we see the eyes of inflation, and then in the meeting, they didn't hike. that's how it happened.

>> probably? >> the wide shot of the hitting so it's on evidence, the hitting? >> probability in your mind that the next thing that happens is qe here, not a rate increase? what is the probability? 10%? 2%? >> i think it's 5-10%. >> 5-10%. >> they will use it. they will do it. they will do it. >> would that not be an alibi? >> i'm in a difficult position here. i have a bet with rick they raise this year, a $100 donation to the charity of his choice. i will do that gladly, but it's going to be embarrassing for me to lose to rick, very embarrassing. >> 10%, what's that say? >> come on. >> qe's not possible again? >> i think there's some discussion among some guys who are really deep in the leads here on this, and i mean, the weeds figuratively not literally, but quicker to go to interest rates more than qe. they don't want to raise the

balance sheet, there's a sense they don't want to bring on additional -- >> negative interest rates. >> stimulus. >> do you consider the scenario? >> if they don't hike, i lose in 2015. i will lose. i'll stand up here and tell you. >> look, look, i mean, if the jobs -- i want it to happen because the economy's not good. there's talk out there that the lousy payroll numbers were more noise than what they were. the claims, in the 260 range, hard to argue there's jobs. hope jobs come back and in a place where the fed hikes a quarter point because the economy's good enough. >> i wonder what is likely, your bet they raise this year or boone pickens' bet oil is back to 70 before the end of the year. >> wow, wow. >> hard to get to 70. maybe not. >> two things i have to say. the first is that i'm talking to

dudley this afternoon, and forget what i have to say, the most important person at the table right there. it's what don rutledge says on china that's the most informative thing for anybody. >> thank you. >> what a lead-in. >> was that a lead? >> it's very important. >> another lead, john rutledge, investment strategist at geneva based -- >> easy for you to say. >> yes, what happens? >> i would think that the probability of the rates going up is just a little bit lower than the cubs winning the world series, but the economy sucks right now, the manufacturing side, especially, regarding china, manufacturing industry is very, very weak in china, they've got, you know, falling import prices, partly because although we talk about it, devaluation in the currency, it's appreciated by a ton in the last year against all emerging markets, against all of the raw materials suppliers, so prices

are down, and so -- but that seed of the conversation -- service side is okay, but they got to reprieve this week. the leaders of china, and when you sit privately with them, they only talk about stability. they never talk about gdp or anything else. stability means stable politics, stable politics means stable jobs, and the biggest risk to them right now is outflows of capital. there's a ton of capital that went in there. they have capital controls so you can't measure it. it's illegal. that capital's flowing out now. this week -- >> you mean a lesson on how to do capital in china, and i was writing it down. tell people how. >> absolutely. >> how to take money out? >> how to legally move your money. >> if i'm a chinese national and want to move a million out of china, i send a $2 million boat load of stuff to myself. the other business i own in australia. which would be a cayman company, write an invoice for a million

dollars, and that invis for a million dollars is the man at the port sees, and that's recorded in exports. >> how much is going on? how do you track it? >> it ton of it is beginning on forever, and when you see a sharp change in the import or export number. a sharp drop means under invoicing is moving capital out. a sharp drop in the import number means t going the other way. we had imports happening in the hot monday days, now it's out. you see that any time they remove the reserve requirements, they are not used to control credit, but offset capital fl s flows. >> this was talked about. >> yeah, yeah. the third one is what you hear the leaders saying. that's what you hear the leaders saying. right now, they are happy. this gives them a little more time to get their act together and i think if you talk about when we will see qe, yes, we will, but it's in china, not the u.s. they are the only major central bank without qe. qe, those of you who are older,

is what we used to call printing money, right? no difference whatsoever. >> they are manipulating the currency, float it in the way they want it to float. >> the currency is pegged to the dollar upward trend since 2005. it moved 3%, 3% is chump change in the currency game. >> right. >> their prices against their importers went up 17% in the last year. this is taking their appreciation from 17 to 14. this is not a deappreciation. >> is there a stat that tells the real story? everyone talks how bad the data is from china. >> the data out of china is not very good, but it's an emerging market, and that's what you expect. i know the guys measuring data in china who are trying hard. the problem is in the provinces, data comes from mayors and vice mayors who are compensated in the careers by producing jobs so they produce over estimates. think about that for a minute. they produce an overestimate

last year too. that doesn't affect the growth rat. just puts an error return in it. overestimates the amount. >> the next couple weeks, there's all sorts of data, hopefully, that -- what do you think the janet yellen's looking at? >> not gentle ben, but generous janet is the one we're talking about. she's looking at the pmis are good numbers. >> they are real? >> well, they i are good. they are both good, measuring different things, private measures little firms, public measures big firms, both very useful number, and the export numbers matter a lot to me. the gdp numbers don't. ? sounds like the numbers are not kp capturing what you are talking about. >> they don't. pay attention to policy, pay attention to the export numbers, pay attention to reserve requirements, and -- but, yeah. >> how bad can it get? >> with capital controls, it's illegal for a chinese personal to own foreign assets. you can't look at normal things you'd measure to see what nay

are doing with it, and that's true for incoming -- >> how bad can it get? 0? negati negative? >> on rates? >> on growth. >> growth. >> no, no. i think china's going to grow, you know, they could go to 5, but there's still second fastest growing place in the world, just not as much, but the commodity markets say now china's not shrinking as much as people thought it was. it's starting to firm. the property markets in china are good numbers. they are firming up. this china story is page 2 before too long. >> appreciate it. >> great. >> i hope it does. up next, halloween's coming, plan on trick-or-treating, having a party, or carving pumpkins, you will spend a terrifying amount of money this year. the business of halloween is next as we head to break. look at last year's numbers, and those pretty scary too.

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if you live in a big city like los angeles, new york, you are no stranger to congestion. check this video out putting it in perspective. there's a huge traffic jam at a highway toll booth outside of beijing. thousands -- what, maybe more than that, vehicles bumper to bumper as people return to the city at the end of the national holiday. the big problem jam happened

where 50 lanes merge into 20. i can't fathom a street with 50 leaps. >> imagine frogger in that scenario. >> wow. there you have it. >> wow. end joy your commute. that's nothing compared to this. >> well, yeah, i can't imagine. i'd cry. >> i'd walk. >> i don't know what to do. will halloween -- i'm getting emotional. will halloween be a trick or a treat for business in national retail federation says spending on the holiday drops to 6.9 billion, but a farmer single handedly pumped up the pumpkin business and pumpkin business -- i like big pumpkins too. that sounds dirty. jane wells has the amazing story. jane? >> reporter: oh, guys, you know, there is some story out there there may be a shortage of pumpkin for thanksgiving, but not for halloween.

there are pumpkins, and there are pumpkinsteins. this is one farmer's great story. >> this is my creation. this is molded fruit. >> reporter: that's tony, center grove farms, from a year ago after four years of trial and err error, found a way to grow pumpkins in molded shapes, selling to $100 to high end stores. that was followed by the new york times, network tv, and this year, we checked back in. describe what the last year's been like. >> the last year, boy, let me tell you, something we never expected. >> reporter: build a better pumpkin and the world will beat a path to the door, or at least sam's club will. the walmart subsidiary convinced him to do a deal. when you saw your first one in person, what do you think? >> is it real? it's amazing. i mean, it is a real pumpkin. tony is a very innovative

growing, aleadershigning with a our innovative growers. >> reporter: he signed for more land, more farmers, lowered wholesale from $1 00 to $30. hey, it's sams, part of walmart, but still selling some to other chains for more if he can meet demand. >> last year, we did 5,000, a little over 5,000. >> reporter: how many do you want to grow this year? >> we have orders for probably close to 90,000. >> reporter: all right. next year? white pumpkins grown in the shape of skulls. even his failures have turned into successes. this thing right here was a mistake. the guys forget to really bolt on the back of the mold so you yacht the front one, the back fell off k and people like these better than the regular ones sometimes. >> that is really cool. what's this guy -- i mean, the one question, jane, is this something that somebody else could try to knock off, or is he

really have like a patent on this? >> reporter: well, he's trying to pa tent it. believe me, this is harder to do than you think because you have to have a mold that is -- you have to have the right pumpkin variety, he went through 27. you have to have the right mold material, put the mold on at the right time, not too small to explodes or not too big so the pumpkin can't fill it up. it's not that easy. >> that's really cool. >> that is. >> have a great weekend. >> reporter: you too. when we return, gym cramer from the new york stock exchange look, and the dow looks to open 60 points higher. than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool.

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as a gas service rep we are basically the ambassador of the company. we make the most contact with the customers on a daily basis. i work hand-in-hand with crews to make sure our gas pipes are safe. my wife and i are both from san jose. my kids and their friends live in this community. every time i go to a customer's house, their children could be friends with my children so it's important to me. one of the most rewarding parts of this job is after you help a customer, seeing a smile on their face. together, we're building a better california. let's get down to the new york stock exchange. jim cramer joins us now. yesterday it starts slow, who is that? who is in there that's buying and moving us up? do you have any idea? any insight into that? >> i think that anything that sells at a low multiple just caught buyers after the fed's minute came out. the short squeeze in oil is monumental. the talk of most of the desks

that i talk to is that the dollar has peaked, every against the so-called junk currencies. so that's going to make it so you have a commodity rally that continues, an industrial international stock rally that continues. it's been almost unstoppable. the market is the most overbought it's been for 2015. joe, there's buyers everywhere if its got value. >> interesting. i just wonder -- i wonder whether the lows are in. i guess you're not ready to say that. >> i think the lows are in for oil. i don't know if the lows are in for growth, any time they get boeing at all, they come right back in selling the high-growth semiconductor and internets. other than twitter, where i think there's a bottom in twitter. >> really? >> i think the prince put a bottom in twitter. the guy has fire power. >> i'm furious at the bottom. they know how it works. they got me conditioned, whenever there's that dot, i knows there new tweets.

so i hit them on the -- either the ones i'm getting. now next to that, there's a stupid thing they put in there. they always put the little thing there. i got to get rid of it. i got to get rid of it. that makes me click on it. how do i get rid of it? you can't. you can't. it's an infection. floss cure for it plus the e t there's no cure for it. plus the emojis. >> you know yesterday it was kevin mccarthy -- >> @jack is changing things daily. >> i feel manipulated. i almost feel soiled and violated by this. >> tell @adambain. >> will earnings show -- all day long people call it negative grow. will earnings year over year be down this quarter? >> i think what will matter is

the executives will say that the dollar has peaked, so they won't let you take down 2016. alcoa, remember, part of alcoa that was bad actually needs a stronger dollar. don't conclude from alcoa that things are that bad. >> see, look? i have a new moment. i have to click on that. >> moments are good. northern lights. >> i'll tell you what it is. it's so important from twitter, i got to click on right here. i know this. i know this. i already knew this. >> i'm sponsoring an ad next to you. i will periscope on the way home. up periscope. >> are you periscoping yet? >> is that dirty? >> what? >> what is that? i'm going to look up urban dictionary what is periscoping. >> oh, boy. >> we'll talk about it during break. when we come back, nominees for the rock 'n roll hall of fame are out. and check out the -- >> oh, my god. >> oh, boy.

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cars should be hall of fame. private equity firm golden gate capital has taken a 9% stake in ascene that. that's retail. that's the parent company of dress barn, lane bryant and ann taylor. golden gate said it is discussing ways of increasing shareholder value. eli lilly upgraded to outperform from neutral at credit suisse. and the rock 'n roll hall of fame announcing the nominees for 2016. the acts eligible for induction include the cars, chicago, cheap trick -- this must be af fa met cal. deep purple, janet jackson, jay

bees, shack chaka khan, nine in nails, the spinners and yes. >> you don't want janet jackson in. >> i don't have a strong feeling. i have other rock bands that i think should be in. yes should be in. deep purple should definitely be in. >> there she is. >> that's not really -- rock 'n roll? >> steve liesman was skeptical. he thinks of it being pop. >> "control" was one of the albums. >> and "rhythm nation." >> '86 and '89. >> you never saw her in "different strokes." >> i like her, but i understand the question if it's rock or pop. >> you have no shame, you said you wanted michael jackson's glove. >> she was in "good times?" come on. >> i was in college for those

things. >> you remember that, right? >> a little. >> you can become eligible for induction 25 years after the debut -- >> maybe that's why. that's why we couldn't figure out why they've been nominated before. am i reading this? viewers have been tweeting in all morning. squawk fan john says he is backing janet jackson, cheap trick and nine inch nails. >> it's been 25 year s for nine inch nails? >> yeah. it has been a fun week. if you are a bull, you've had a good week in the stock market. we'll see what happens the rest of the day. the futures have been indicating higher. capping off a good week for the markets. >> just the fnext week is our b celebration. the 20th anniversary. >> i know we've been talking about it for 20 years. now it's for real. >> throw-back thursday, carl,

david and jim will join us on the set. that's cool. >> tuesday -- do we know we've invited everyone we should have invited? >> i'm sure we have been -- >> i don't know. >> -- remiss in some issue. >> we should publicize it so there's a big crowd outside. >> join us on monday. see ya. "squawk on the street" right now. ♪ good morning. welcome to "squawk on the street" i'm david faber along with jim cramer. we are live from the new york stock exchange on this friday. carl quintanilla hat day off. let's give you a look at futures as we start our coverage. you can see we're looking nor a slightly higher open on all the major averages it would seem to me. the ten-year yield moved up yesterday. interesting, wasn't it? yesterday we were at 2.0. we ended the day well above that you can seere