live from new york where business never sleeps, this is squawk box. good morning, everyone. welcome to squawk box here on cnbc. andrew is reporting live from the new york times conference today. he'll be joining us later in the show. in the meantime let's get with the markets and check out what's been happening. a strong start in november. the dow moving back into the green for the year. you saw a gain of 165 points yesterday. nasdaq and s&p also higher. closed above 2100 for the first time since mid august. the nasdaq 100 is made up of the 100 largest non-financial firms. it topped a record close. we haven't seen in more than 15 years before actually pulling back to end the day at a new 52 week high. this morning the u.s. he i wasty futures look at least at this

hour like they are lower but this is a modest decline at this time. the mazz dak down by 8. >> the nasdaq hasn't hit a high. >> the nasdaq 100. >> wow is it one year to the election? the big election? >> i guess so. it's election day in new jersey today. >> no, but november 2015. may not be on the third. >> on a tuesday. >> i know that much. >> but it's going to be. >> i can't believe it. we'll know who is the candidate on the republican side. >> less than a year. >> and we'll know but wow. well, good. okay. that's only a year. only one more year. making headlines at this hour, activision blizzard buying king digital for $18 a share in cash

or $5.9 billion. a 16% premium to king's closing price yesterday. activision says the deal should help boost it's mobile games business. ceo will join us first on cnbc at 7:00 eastern this morning. he's not in town, is he? >> he's in l.a. so up at 4:00 a.m. for us. >> okay. >> a lot to talk about. >> that's excellent that he's coming in. >> it is. also we should tell you that the volkswagen emissions scandal is getting bigger. the epa is accusing them of cheating for a second time. the company installed software on thousands of audi, porsche cars with diesel engines. >> if you buy a diesel it's your own fault. >> the alleged cheating scandal involved other cars. they tested it and within one second of the test ending, the

emissions went right back to the level of normal on all of these other cars as well. vw has denied software was installed on the larger engines. there was no comment immediately on the latest charges but the epa is saying they have the proof in their own independent testing. >> but they're disputing it, right? >> we should also tell you auto makers are going to be releasing october sales today. analysts say the pace is expected to top 17 million vehicles for the 6th straight month. >> wow. >> the national highway traffic safety administration announcing that it will add automatic breaking to its five star car safety ratings. that starts with 2018 model vehicles. the system engages breaks automatically if the driver doesn't apply the brakes. the technology could help prevent 80% of rear end collisions. >> i read that this morning. i thought it said automatic banking. >> wall street on the brain? >> i was going to really go off on a rant. you don't need that on cars and

we're going to have everything in cars but automatic banking. >> is it too much to drive -- >> and then you would have said it's brakes and i would have said oh never mind. but we're not going to do that. in other headlines this morning, the company behind the push to build the keystone pipeline is changing it's tune. transcanada now asking the u.s. to suspend it's review of the project. it would push the decision all the way out to the next president which is only a year away anyway. it came after the white house said it still expects president obama to make a decision on a permit before leaving office. stocks to watch this morning, aigt quarterly results falling short of wall street's lowest estimate. the company increasing it's quarterly dividend to 28 cent ace share compared to 12.5 cents last year. aig yielding about 1.8%. this comes just days after carl icahn called on the company to break itself apart. cut costs more aggressively and

return more money to shareholders. fitbit shares are down sharply this morning. earnings and revenue topped expectations but the wearable fitness device maker announced plans to sell an additional 21 million shares. avis budget also dropping today. earnings revenue and guidance coming in below expectations. texas roadhouse getting a boost. earnings were in line and posted positive comp sales growth for the quarter. >> let's take another look at the markets. we showed you the futures and that they're below fair value this morning. we should point out that yesterday was the highest close since july 22nd for dow if you want to check the early trade in europe you'll see that at this point there's modest declines there as well. the dax is down by a quarter percent. the cac in france is

fractionally lower as the ftse is down. in asia overnight, japan was closed for a holiday but you can see the hang seng up by .9%. and the shanghai composite down by .2. back up by about 38 cents. let's take a look at what's been happening with the treasure risk. at this point it looks like the ten year is yielding 2.178%. in the foreign exchange market. euro yesterday was sitting right at about 110. this morning dollars up a little bit. 109.77. and gold prices down again today. >> the markets kicking off the first trading day of november with a nice gain firmly in the green pushing the dow back into positive territory for the year. karen firestone is ceo of asset

management and allison is consulta consultant. you don't have like a 12 step program. >> i hadn't thought about that. >> i haven't really. >> first thing you need to do is admit there's a higher power. have you made amends to people you lost money for in the past? >> no, there's a lot left to learn. i haven't learned the first step. >> i could write, couldn't i? listen, here's what i want to talk about. after all is said and done, if we end up like 6, 7, 8% on the year, we all said well, if consensus is up 6 or 8% for the year we'll either be up more or

down. we got november-december. we could be up -- we could do -- that's going to be so boring if that happens. >> not only that, most people said 6 or 7% and a lot of volatility. >> no, that can't be right. >> the people on this show, really? >> people on this show. >> that could actually happen. >> we still have two more months. >> we do. we could be up 15% theoretica y theoretically. >> we did our correction based on all the negative stuff. china. and the fed moving. all of that stuff? we went down 10%. here we are up for the year. >> we're not going to see much more up from here. >> how about you? >> if i knew i would be on my yacht but we had a lot of churning so the market is back 12% from where it was. remember a month ago. we were down 12% so we're back to the 2100 level on the s&p.

the concerns that china is going to take the market down and the world down. nobody can handle when interest rates are going up. what are we going to do about commodity prices and how about the earnings level? are they going to be okay? well, china seems to be a problem unto itself mostly. commodity prices have found a floor. we're seeing earnings come in sort of as expected and i don't think the market is as worried about interest rates as it was. they know interest rates are going up and they're not focused on what day that's going to happen. >> it's been pushed out because of global concerns what corporate earnings and the u. s. look like. the fear about interest rate rising to push out further. >> valuations can only go and stocks are at the high end but

then you look at it. that's the half empty view and then a half full view and interest rates are almost zero. they're going to stay low for a long time. inflation is quite. we're the best performing economy in the world so you could have a great two-sided debate on whether things are good or bad and it seems like those pulling on each side is what causes the volatility. >> but i think it's also -- people are thinking is it great or bad when really it's like, it's good. >> that's pretty good. >> that's what the market looks like. >> the last 30 years i watched the stock market go up at 6 or 7% and watched it hit 18 to 20 multiple with interest rates much higher. buy back stock. >> or buy companies. >> we're seeing a lot of m&a

deals now. game changing situation in health care where it's a land grab. it's the biggest in the market. and now you have gilead and big companies looking at what's out there to buy and low interest rates makes it possible. >> but is that an argument for being more selective and not buying the indexes like in the last five years. >> yes i think so. >> you have been hard hit and health care looks better so you need to be much more selective. it's good for the market to see merger activity but why aren't corporations taking this free money and investing more aggressively in growth because there's not global demand.

>> you watch the companies acquiring their stocks go up on news of these things too. it's a strange thing to see them rewarding the buyer. >> everybody goes up. because in an environment where you can buy companies with cheap money, it's a move of aggressiveness and a positive move when you're seeing people going out and making those choices to buy this and that to your earning. >> and hopefully it's less diluted. >> so you were standing over there both of you when we broke the news that the presidential election is a year away. >> i had becky's reaction. oh, no, a whole year of this. >> we didn't know that. it's november 8th. >> but do you have a strong opinion about whether election year stock market moves are consistent and whether they repeat themselves? and if so, what should happen? is it always a goodyear? is it not always a good year? does the fed always stay easy in you hear all of the urban legends about it's a good time to invest during an election

year because no one tightens money. >> that's often the story. that it's a goodyear but it seems to me that right now the market might be looking at whether things get done in congress. seems to be a tone right now that perhaps will be a little bit more coordinated over the next year and we don't know the republican candidate. we seem to know the democratic candidate so there's less uncertainty on one side of that. >> we changed the speaker of the house. we didn't change the president. >> but we're going to. >> but in the next reason there's no reason for hope. he's not going to do anything the republicans want to do, right? >> but the republicans are not going to threaten debt payments and things like that which creates uncertainty and volatility and could put pressure on the market and they're less likely to do that

in a year when they want to look more favorable. >> we won't get pro growth initiatives either. >> we weren't going to get that either. >> at this point, the country doesn't expect much out of congress. >> or washington. >> actually there's a lot of talk later today, we're going to go around congress on obamacare and on paris. on the climate apparently. we'll talk to him about that. anyway, thank you. >> thank you. >> i know a lot about -- >> i'm thinking to rechange the name. i haven't thought about that. >> i did go to a couple of meetings a couple of times and it is very interesting what happens there. it's really good for people that are in that position. so i wasn't disparaging that at all. >> when we come back this morning, one year until the big presidential election. new nbc news wall street journal poll this morning finds ben carson and hillary clinton as the party's front runners.

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ceo optimism has dropped around the globe according to the latest global pulse survey. the chinese economy, commodity

prices and a looming fed rate hike, really? we'll see. were all contributing factors. here at home, ceo optimism dropped for the third consecutive quarter. global uncertainty will continue to erode confidence over the next six months. >> you think december? >> yeah. >> which, you know, shread, the credibility they have left. ypo is the young president's organization. it's an exclusive cnbc partner with 23,000 executives worldwide. >> and in politics, a new nbc news wall street journal poll out this morning. john harang gewood joins us wit details. >> good morning. you talk about looming. we have a presidential election

looming a year away and i want to review the key guide posts there and what we do from the new nbc news wall street journal poll. >> first of all, the critical nomination battles are going to begin three months from now. february 1st is the iowa caucuses and february 9th is the new hampshire primary. here's what we know about the races at this moment. you have a new sheriff in that race. ben carson is in first place with 29% of the vote. donald trump is 23%. after that you have marco rubio with 11. cruz with 10, jeb bush with 8. on the other hand, the democrats have a very stable race and clinton has stabilize had the last couple of weeks a 2-1 edge over bernie sanders. 62 to 31. o'malley is only getting 3%. after the nomination battles we have the summer nominating

conventions. both of those are in july. republicans in cleveland, democrats in philadelphia and here's what we know at this point about how voters view about the two parties. on the democratic side they have a mediocre reputation. just slightly in the positive but republicans are significantly underwater. 15%. they are going to have to deal with that as the nomination battle continues. then of course after the nomination takes place you have general election debates, election day on november 8th and the thing we know right now one year out is that the public is very discontent with the american political system, the american economic system. when we asked are the systems stacked against people like you, ordinary people like you, a majority, you got both parties reflected in this, 54% say yes, it's stacked against people like me. only 41% say no it's not. it's a fair system. what does all of that shake out

to? when you ask people who do you want to come out of this election as the next president, 44% say a republican. 43% say democrats. strong cross currents on both sides. republicans have change going in their favor. democrats have and hillary clinton the best political brand name in the race. long way to go. it's likely to be a close race, guys. >> where are we usually at this point in time. how reflective is looking at the leaders at this point and saying this is where we'll be at the end? particularly in a race where you have so many candidates? >> well, the unusual thing about this cycle beck ski the nature of the republican race because you have in ben carson and donald trump two candidates from completely outside the system and completely break the mold and who most of the other campaigns don't believe are going to be there at the end. >> but they have over 50% of the voters at this point. >> that's what makes it extraordinary. donald trump has been a

persistent force in this race. he may be fading a bit now but he has been a force for quite sometime. ben carson has been a rising force in the race. you have two people. in 2011 you had a set of shooting stars in the race. michelle bauchmann, hermann cain at this point in the race was doing quite well and then those stars would fade but here you have two guys taking half the vote on the republican side and the traditional candidates down at 8%. marco rubio is doing well but only has 11 and ted cruz that's a bomb throwing outcider from within the system, somebody that's taken on his own party. so we don't know whether or not these outcider candidates can hold 50% of the vote when we get close to iowa. that's part of the drama of this race. >> thank you very much. we'll talk to you again soon.

>> the u.s. embassy in egypt says don't travel in sinai. warning. do not travel. but it's weird because it's gone from absolutely not -- in fact, the first couple of days there are a lot of news organizations that wouldn't even mention isis claims. weird -- and you don't want to rush to conclusions but for an abundance of precaution because nobody knows what happened at this point. it was so high it's hard to imagine a missile but could have been a bomb. >> there was a spark and that could indicate a lot of things. foul play or a problem with one of the engines. >> right. but it seemed to break up up in the air but that's just from the u.s. embassy saying do not travel in the sinai. remember this video we first showed you yesterday? an uber driver attacked by a passenger? drunk as a skunk. falling over and didn't know where he wanted to go.

poor uber guy. it's caught all on camera. we're learning it was an executive. not a small ranking executive. but an executive at a well-known company. he's no longer at that company. the details when squawk box comes right back. excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere.

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we are in the chairs and talking about some things that actually this yesterday and if

you're watching and you probably saw it in a lot of different places maybe but the sky in the uber car with the backwards hat losing it on the uber driver. a total thug. you can't generalize about where people -- appearances are misleading and you can't judge a book by it's cover but i did not think that this guy would be a fairly -- not necessarily a ranking executive but this guy worked at taco bell and was an executive and it says he lead taco bell's mobile commerce and innovation initiatives. the guy couldn't figure out where he wanted to go. the uber driver made a turn and the guy went flying across the backseat. >> he wouldn't put on his seat belt and was slurring. >> i think he lost his job at this point but 32 years old. he got pepper sprayed and, you

know -- i was young once and i was in my 30s once and i'm glad maybe at certain points that there weren't cameras always around all the time because we've all probably had a situation where we drank too much. >> but i never punched a guy in the face repeatedly. >> and i immediately thought, man, you hire millennials for a big executive position. they wear their hats backward. he is 32 years old. what is he doing? backward hat and totally faced -- >> thank god we grew up before social media and cameras. >> there but for the grace of god but i have never started smacking some poor guy. >> that's terrible. >> a thug and the thug happened to be an executive at a firm that we've all heard about. heading up their what is it mobile commerce and innovation. >> you meet a young person -- >> that's what i mean. >> they're not going to hire you or me to do that. >> but i didn't think -- when you look and you think maybe he's not -- >> i thought he was about 25 or

26 years old. >> maybe not in any senior executive position to be acting -- well he's not anymore. >> and real quickly, just a little wink and a nod on this one, bill gross now, $500 million from george soros and lost him $10 million. i don't think his record has been so great lately. but he lost soros $10 million so soros is pulling the $500 million out of jarksnice. two people a dso close together it's sad to see a falling out between two people that wanted to -- >> it does seem like a fair weather friend. >> it does. bill is a big lefty. he's a friend of mine.

but he's a huge lefty and soros so that probably had something to do with the original relationship. it's sad to see it fall apart. >> yeah. in these political times. >> yeah. >> we also talked about the new chip cards that are out. the new chips on your credit cards and debit cards and we talked about confusion on this. they're taking advantage of all of this confusion. as of the end of september, 60% of americans had not received these new cards yet. the deadline was october 1st. so people have been waiting saying where's my card. what's happening? the bad guys are going in and praying on you by trying to fish people where they send them e-mails to say here's part of your card number. please respond with the rest. change your personal information so that we can send this card to you. they're doing it by e-mail and phone and some of the time they actually have part of your card number because they can buy some of that on the black market. >> i got something the other day that said some banking, some

online banking at a bank that i actually do bank with that someone was trying to do something but it didn't have my name as the address. it just looked like spam from the beginning. >> when in doubt. never click on any of those things. they will download malware. never give anyone your passwords and if you have any questions go to the number on the back of the card and call to confirm or verify. never believe someone calling you. your bank should not have to be doing this in order for you to get your new card. don't believe it. it's a situation where the bad guys are taking advantage of the chaos that's out in the marketplace right now. so look out. >> no one is going to get my password because no one knows my birthday. >> or your dog's name. >> or 1, 2, 3, 4. >> 4, 3, 2, 1. >> is that what you have. >> no. >> but that's the second most common.

>> are you kidding? >> no. >> by the way, have you been trying to figure out a new car to buy? my car broke down yesterday. i was talking about what cars he never has to tow because i figure he's the guy that's going to know -- >> you have a minivan. >> it wasn't the minivan. he said suburus almost never break down and the toyota highlander, he's never had to tow one. >> not happening for me. >> which one is a reliable car? >> my cars are cheating on emissions. but anyway, coming up -- supposedly. i'm not sure i believe it. but from washington -- >> you don't have a diesel car. >> like i said i'd deserve it. from washington to wall street he served as commerce secretary. white house chief of staff and now he helps run a hedge fund. no topic is off the table with our next guest bill daley.

first as we head to break, a quick check on the currency markets this morning. stay tuned. you're watching squawk box on cnbc. first in business worldwide.

welcome back. u.s. equity futures at this hour. they have been a little lower this morning but after a great session yesterday, first session of november after a october if you're bullish. co-founder larry page was seen making a rare public appearance last night. speaking at a fortune conference

he explained the thought process behind the company's new alphabet structure. the new company will operate a little bit like a venture capital firm. if i ever saw him in public i might just faint right there, becky. i guess it's being young and being worth about 30 or 40 billion. >> he's a smart guy too. he has constant ideas. >> smart guys around. walk on a college campus and you'll find some smart guys. it's the money. it's the money. if you see a guy doing great research in molecular biology, you're not going to faint if you see him. he's smart. the money that this guy has. ask bill daily. he'd wafaint too. >> it's the money joining us with more on this is bill daily.

he's the head of u.s. operations and also former white house chief of staff under president obama and come her commerce secretary under president clinton. thank you for being here. >> thank you, becky. >> we have already talked to market guests that said this is a good thing. you may not be seeing a lot of big moves out of washington but at least it's not the risk of a shutdown. >> not just the shutdown. more important is the debt ceiling kicked off to the next president a month after the next president comes in. it's good. it's an acknowledgment that nothing is getting done anyways and i think john boehner should be credited for at least putting the country on a some what quite path as far as the madness. >> he said he was going to clean out the barn. >> he did and he really helped speaker ryan and quite frankly helped the president. >> washington for a long time, if you had gridlock it was something that wall street appreciated. maybe not quite as much anymore when you look at all the issues that need to happen. from tax reform to trade issues.

>> just infrastructure. just how to get the economy movi moving. that's only because the politicians haven't been able to act or do anything. the fed doesn't raise rates but when is the real economy going to really move and other items like infrastructure. what are we going for really improving our schools for the new economy that's coming. this economy is changing dramat dramatically. but uber and other technologies are changing our economy. is anybody, at your debate did anybody talk about that? did anybody talk about how the government, the politicians have to respond with right policies to respond to that? no. >> two sides have totally different viewpoints on how to

end on -- if you did end the gridlock on what you do to put in growth policies. on the one side it's talking about regulatory reform. it's not talking about necessarily just spending more money whether it's on infrastructure or maybe you do private-public partnership, however you want to do it. >> but infrastructure and trade used to be bipartisan type of issues. >> traded bipartisan, both sides. >> but the truth is you're not going to get any of those issues unless something draw matdmatic changes. >> but that's a year away. we had plenty of elections and nothing happened ever. >> we made it 7 years. we can make it one more. >> this is a situation where the well was poisoned very early and you don't have trust on either side. when you see new players that come in on both the congressional side and the presidential side, will that change? or is this the way of politics today? >> well, we better hope for the

future of the country it isn't the way of the future and when you listen to the debate so far and listen to the debate last week you all were involved in and you have a lot of the usual sort of stuff that seems to look backward about economic growth in the past and not about the future. i know they have tax policies. i listen to carson and these polls are pretty impressive for ben carson but where was an economic policy? where was real discussion around economics. >> policies of the past didn't work. how far back are you going? are you talking about the economic policies of the last 7 years that didn't work or the ones that you're saying the reagan and then clinton type lower taxes? >> over the last couple of years you have a congress that's been better and a president that although he has proposed a lot of things they vn been acted upon. >> obamacare was acted upon. >> a lot of things that weren't

acted upon we went around congress to get. >> not serious things to get done. >> you don't see regulations coming from those two agencies at this point in they're holding back economic growth. >> but you've also seen the explosion in fracking and energy in this country that the epa didn't stop that a lot of people predicted they would and this president gets no credit for an energy policy. >> you want credit for fracking and developing hydrocarbon. >> if you listen to everybody on the republican side they'd say he stopped that. >> he didn't. >> well, okay. that's your opinion. my sense is he didn't do what lots of people thought he was going to do and that is to stop it. >> the policies that generates a lot of income inequality and tepid growth after a deep recession. you can't go back to bush and trickle down to say why we're still at 2%. that's with the fed and with the fed at 0 we're barely growing and they're afraid to go up a quarter point because we might

hit stall speed. >> when you said policies of the past. >> but you also have a congress that now, pick your poison, six years -- >> congress was there to prevent some of the stuff. that's why they were elected to prevent some of the stuff. >> but you also have to sit down and come up with compromises. in hillary clinton wins or whoever wins -- >> so having a -- he doesn't even associate with people in his own party for compromises. he doesn't go to capitol hill. you need a leader to bring together congress. >> i think at this stage, the political system has moved on to the next election. no question about it. the president has even acknowledged that. so you've got -- and i think you began to drill down at the debate and kind of got lost in the craziness. >> no drilling. >> real economic plans for economic growth and then in the end, can they get done? you can propose anything you juan but the reality -- >> i think you said that, didn't you? >> to be frank with you i think

it is way overblown. but what's the difference. i don't think it was going to change the equation, joe. the jobs creation that everybody talked about that were bs in my opinion. >> that's private infrastructure. there's a nice private infrastructure -- >> couple of hundred jobs. it's all the ancillary stuff. probably at least 10,000. >> you have a pipe. >> the oil is going to go somewhere. the idea that we're not going to develop it, it's not going to be left in the ground. >> global market as you know so it wasn't like it was going from canada to a gas station in new york city. >> that was a no brainer. >> i don't think it effects the economy. how much have we spent talking about the keystone pipeline when we spend no time about economic growth. i don't think that adds to the economic growth of this country.

a pipeline from canada to louisiana. >> it's one example that it was not a republican's fault that this didn't happen. there's a lot of pro growth that hasn't gone through. >> how about bringing back growth and the trillions of dollars that are oversaes. >> that's a given. >> changing the system. where is it. >> it has to be part of a tax reform package that's much larger. >> you're not going to get it. every republican leader. >> anything he wants to do he tries really hard with. climate change, gun control, things that are not priorities he doesn't try. >> but gun control in congress, climate change in congress, really? >> no, those are the things he decided to focus on. if he had put the same energy into corporate tax reform. >> if you want economic growth

you have to have congress act. you have to have a tax plan and something beyond just a tax plan. >> let's talk seriously, paul ryan has proposed a lot of tax plans. his plans are not going to be accepted. >> they weren't even accepted by the republican caucus. he put his tax reform plan out and the republican party walk addway from it. if they were serious about that they could have gotten it done. >> i'm not blaming one side. >> blaming the other side. >> that's why i'm -- i don't have a side. >> i need to push back. >> really i didn't know. >> let's talk about what's happening with the global economy. you see this because you're dealing with a global hedge fund. a lot of the hedge funds were on the wrong side when the markets went down. they have been on the wrong side as it's coming back up. what happens now. >> i think as you tumble to the

end of this year you are going to see, i watched your two guests earlier this morning and both of them seem to have a sense that things were going to stay fairly stable the next 60 days to the end of the year and we're going to start with the debate. is the fed going to raise the rates or not? that's going to be the whole discussion. for the u.s. economy we're healthier than anybody else in the world but is that saying a lot? >> if the fed actually raises rates in december as it seems like they might at this point, what's the market's reaction and what does that mean for end of the year window dressing for what all of these traders are -- >> some people think it's baked in. a response is already baked in. people expect it. i'm not sure. i think the reaction will be more dramatic than given and the fact is if they raise rates a quarter and there's a terrible reaction, if that's going to cause a reaction that's over the top, that's maybe about the

greater statement of how difficult our economy might be. more difficult than people think. >> there's a lot of concern just trying to read the tea leaves at this point. >> that's all people have done every day. because of the world economy we're not going to raise rates. now they dropped that sentence. i don't know what happened in the world economy the last 30 days. didn't seem to drop that dramatically. but everyone seems to now expect that come december they're going to raise the rates. my opinion is they should have done it in june and gotten it over with and i think people were expecting it then and move on. but now they kicked the can once again. >> maybe clear guidance is what you'd like to see ahead. >> some action. but again as we talked earlier, you have to admit that their inaction is a result of congress not getting it's act together with the administration. i could see that. to get a plan done that really begins to move the economy and

it's up to the fed. >> in the midterms you had a wave that put that congress in place for a reason. >> right. >> with a very small turn out, joe. but a agree it was a wave for those that came out. >> elected at 7%. so things happen. >> you like that. >> yeah. i'm thrilled. >> thank you. great seeing you. >> good to see you bill. coming up, big news for amex reward users. how you can now use points to book airbnb stays. that's coming up next.

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good news for air b and b, but bad news for hotel industry. amme kp a ammex and air b and b are tod teaming up? >> they can book stays around the world, and here is how this is going to work, so amex members will be able to create an airbnb account by using their american express id and password, look for the dream vacational, and now book a state at the apartment house, a castle, if that's their thing,

and you can use reward points for their bookings directly on the airbnb site. this is a significant win for airbnb, already growing fast. according to the wall street journal, the company generates 900 million in revenue this year, up from 250 million back in 2013. the home rental site has fans among investors raising $2.3 billion at a valuation of $25 billion according to cb insights. with each new major partnership, airbnb risks greater scrutiny from voters. that's happening here in san francisco. today, in fact, voters here cast ballots on a measure that could restrict airbnb's growth, more on that story coming up later this morning on squawk alley. back to you. >> josh, thank you very much. >> did you -- josh?

which would scare you more, unhygienic slob in your bed or you in an unhygienic slob's bed? >> definitely somebody else in your bed. >> yeah -- >> no, they are both bad. >> you can't get rid of it. >> is there quality control, josh? how do i know who who's coming into my bed? >> tough call, joe. that's why, for me, i'm a ritz guy. they give me a reason to leave. >> i can work with you. i was thinking, do i ask that question, will he roll? i love that. exactly, like, yeah. that's two bad choices. anyway -- >> make all of us itch this morning, thank you. >> you never get bedbugs in hotels. >> yes, you do. >> i know, that's another thing. >> you're never beginning to leave your house. >> home sweet home. >> when we come back, activation blizzard, buying candy crush for

$a 00 million, and he will join us, first on cnbc come iing up next.

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earnings alert due before the opening bell, the numbers, and breaking down aig's dismal quarterly report. a big deal for gamers, activision blizzard is buying candy crush, and we have a first on cnbc interview. actor topher grace is our special guest. >> i'll keep working until i figure out what i want to do be life. >> we think you have such potential. you could be an astronaut. >> oh, problem solved. i'll just be an astronaut. >> asking about the role in the

new movie "truth about dan rather"? >> why did you get into journalism? >> curiosity. why did you get into it? >> you. >> as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." welcome back to "squawk box" here on cnbc, first in business worldwide, i'm becky quick with joe and andrew is on assignment today, and he'll be reporting live from the new york times conference all day right here on cnbc. we'll be talking to andrew in45a minutes. top story is activision blizzard is buying candy crush for $5 million. he'll be joining us in a moment, but we have a quick run down of this morning's other top stories.

we begin with the markets today, a strong start for the bulls in november. the dow back in the green for the year, and s&p closing above 2100 for the first time since mid-august. look at the futures this morning, you see a little bit of give back, but not a lot. modest declines. looking at the dow futures down by 37 points below fair value, s&p futures up by seven and nasdaq down by 12. the company behind the keystonepipeline asked the u.s. government to temporarily sis pend review of the project pushing the decision to the next president. this announcement came after the white house still expects president obama to make a decision on a permit before leaving office. and google's drone delivery gets a target date. the leader of the company's project wing said it expects to begin delivering packages using drones in 2017. google parent alphabet is in talks with the faa and other parties to set up a air traffic control system for the drones. >> all right. discovery communications is reporting 43 cents a share,

which, if it's clean, adjusted, it looks like 47 cents, well above 38 cents. that is what the street was looking for. the cast load, $234 million. the revenue number's 1.65, and 1.67 was the estimate. more or less in line with expectations, and adjusted operating income, oibda found 9%, and then the company's also increases its buyback authorization by $2 billion, by $2 billion. that number is pretty good, 47 cents adjusted versus estimates of 38 and i don't know whether there's much trading going on, but so far, it's up about 2%. we'll check it later when people have a chance to digest the numbers and see if, indeed, that big beat on the bottom line helps the stock trade higher today, and you can see on the

left hand side, the -- that's all sort of -- it had something to do with discovery, but also just the disney effect that hit so many of the cable companies, the cable tv companies. >> right. media stocks in general. let's tell you about the big news of the morning, activision blizzard bought candy crush for under $6 million. we have the ceo, bobby codick, congratlation, and thanks for being with us this morning. >> thanks for having me, becky. >> why now? why the deal? >> we couldn't be more excited because that gives us the opportunity to participate in the fastest growing market in the world, the mobile game market, and while we had some investments in this raerks nothing of the magnitude of king. >> blackhawks, destiny, what you are well known for are not games i sit playing for hours, it's

mostly men, but candy crush i get. how much of it is about getting women involved in the game, and other demographics, and how much is gaining just the mobile? >> mobile was important, but also attracting women to gaming is really important part of the strategy. with king, 60% of the audience is now female, which is a really great expansion opportunity for us, and they are in 196 countries around the world, which is something that's really exciting. >> and in terms of what you do with this, i mean, part of the key must be constantly putting out new titles and new games. i will add milt the women that i know in my family who play candy crush are addicts and you have them for life, but how important is it to put out new titles to bring in additional eyeballs? >> it's a balance. we have over 350 million people who play candy crush in some the other games that king make, and

so our priority's always to supporting those players with great new content sint consistently, and we have to introduce great new games an concepts. one of the things that was really enticing to us about king is how talented, truly incredibly talented their design teams are. >> bobby, we have been watching mergers and acquisitions and deals taking place, and what's surprising are the times you see the buyer's stock going up with this, and that's the case today. your shares have been trade overseas on the news. you point out you think this is increased by how much next year? >> 30% acreative, using all cash, a lot of foreign cash, not earning much money, but this is a productive way to use our capital, and i think we're one of the few transactions where moody's actually upgraded our dead in connection with the acquisition, so we were upgraded to investment agreed this

morning. >> bobby, we've talked this morning about tax policies in the united states, the idea that companies that make money overseas leave it there unless they bring it back of high rates of taxation. you mentioned that was part of the reason the deal makes so much sense. what would you do differently? are there things to do differently if the united states actually got its act together and had a new tax palsy? >> yeah, absolutely. we would be repatriating cash and investing that in america, and it would be used for creating jobs and opportunities in america, and so it's a silly thing we're not able to access that cash the way we'd like, but this transaction shows that you can actually productively put your capital to work in other countries. >> wow. we have gamers on staff who are big into destiny, and i guess the new -- the take in king is the new destiny year two out there. they asked about the numbers. most recent i've seen is that destiny now has something like

25 million users. is that the latest numbers? >> well, we announced our record ruts for the quarter also last night including the success of the take in king, so roughly 25 million people now playing that game, and we're about to release call of duty black ops 3, the best one made. >> what's your opportunity in terms of a sales forecast? >> no forecast, but we think it's the best = call of duty game" we made. >> they point out you have a deal with kc restaurants for exclusive end game content, guns, a deal with red bull for taking codes, and how much more is the way the business gets done and how important is that to what you make now? >> i think if you think about the impact on popular culture that our games have, much like film and television, promotional partners are excited to participate with us. today, with the merger, we have a network now of 5ers between tk

and ours. we reach 500 million users. other than facebook, by far the biggest, and youtube, we're the third largest network of players. >> with that network, these are people who are spending a lot of time -- i saw for destiny, people spend an average of 3 hours a day playing the game. >> i have not heard that number, but we have highly engaged players. >> what do you do with that? you're reaching out? other networking where you basically are doing tie ends and this is a great way t advertise? >> well, one of the things we announced last week is steve bornstein, the ceo of espn and nfl networks has joined with mike to really build out our initiatives, and that's a great opportunity for us to celebrate players and provide them with a competitive gaming opportunity to earn cash, prizes, where they

could be recognized for their play, and we think this is going to be a really important part of the growth of the company. >> you pointed out in the release, the deal is expected to be completed by the spring of 2016, but it faces regulatory clearance in ireland, is that something you have any concerns about? >> we don't. you know, our collective share is still a fragmented market source, shares below 10%, and we're not in the mobile gaming business. other than hearthstone, this is our only entrance into the platfo platform. >> wow. congratulations again on the deal. >> thank you very much, becky. >> thank you. coming up, it is jobs week. we'll get app early read on small business hiring at 7:30 with the paychex ceo, and adp private payrolls tomorrow, tom lee and savita are here to tell us what to expect, and a dismal

quarter for aig. the company stock trading lower missing earnings and revenue expectations by a wide margin. we'll dig through the report with an analyst. when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.

futures this morning lower

after a big day for the markets yesterday. up 165 points yesterday. this morning, dow is down 39 points. s&p futures up 6.5, and nasdaq down by 11. take a look at shares of fitbit, earnings and revenue topping expectations. fitbit issuing upbeat guidance for the holiday quarter, but the wearable fitness device maker has plans to sell app additional 21 million shares. stock down sharply in the premarket, down by 7%. markets now at levels not seen since the summer. to talk about the current rally is savita, head of u.s. equity and quantitative strategy at bank of america, and tom lee is managing partner, head of research at funds global advisers. we talked with a couple people earlier, and here we are up up for the year in the dow and s&p, if we do a little in november and december, we could be at the 6% that the consensus said we'll do this year. would that surprise either of you at this point?

>> if we get another -- if we get a 6% year? >> if we end up just right where most of the people at the end of the last year said, i look for the stock market to go up the same amount of earnings. if earnings per share is up -- >> this year earnings are flat, right. if we got of% -- >> take out energy, though. >> yes, then it's another story. i would not be surprised. i think that normal returns for the markets are to be expected. >> see, i thought it would have been up 20 or down 10-15. >> that's normal. >> because it's the popposite. >> maybe that's why we have two mont months left. everybody saying we're going to flat line into the end of the year. you know, given we're short positions and how much capital's on the sideline, maybe we have way double digit --

>> 10-15? >> 12% for the year. >> what you were saying. ? that's right. >> i think it depends on the fed, though. so one of the things we were disappointed by was the fact that the fed did not raise rates in september, and if they don't go in december, i think that's going to be a negative rather than the positive, that no fed hike has been for the last five years. >> don't you any right now they go unless it's derailed. >> unless something terrible happens between now and december. we expect 150 on the payrolls, expecting things to be better, and the fed to prepare for liftoff by the end of the year. >> 150, we can do that. >> yeah. >> we were doing 200. >> like, i think this is a year where people were expecting a lot of bad things to happen, and a lot of bad things did happen, but the market showed a lot of resilience, and i think even with regard to the fed, the fed could be seen as leading markets or following markets, and i

think whatever they do in december is going to just confirm underlying trends, and i think it's bullish. >> so first quarter of next year, this 3.9, whatever on gdp and 1.5, whatever, next year is another 2%? >> 2-plus. >> two plus? >> well, you know -- >> do we need that for the market to go up? >> you know, this year currency was a head wind, right, taking ten bucks out of s&p earnings, and i think consensus thinks, hey, the fed tightens, dollar strength strengthe strengthens. whenever it steepens, and it did this year, the dollar falls after the fed tightens. i think we might see a surprise in the dollar next year. >> the fed did not believe that or would have tightened in october or whatever. they did not tight p because of the dollar. the dollar is down after fed tightens? why? >> i know it's counter intuitive because we published this last week. we looked at 45 years of data.

i think what is happening is whenever the fed's tightening, but not tightening economic conditions, it's essentially confirming inflationary trends. reflation is not good. we see rates go up. >> assuming the fed's doing what it should be doing by raising rates than it does see that it's coming, the economy is bad, that's faith in the fed that they are right. >> i hope there's no policy mistakes, right? >> right. that's the danger. i think that this bull market is not going to be your grandmother's bull market led by small caps and super juice cyclicals. it could be big, boring large cap companies with healthy dividend growth. that's the opportunity. the companies are cheap. everyone's looking for income still because rates are probably not going to go too high over the next couple years.

i think that that's where we are going to see leadership, not necessarily in what we're used to, which is small cap juice high beta stock. >> i know when something's not my father's, but grandmothers? is that widow and orphan stocks, conservative yield or like crazy granny stocks, like biotech stocks? >> well, i think it will be the individual investor stocks that lead the market rather than the really exciting growth names that are -- >> so you're saying the grandmother names were the exciting growth names? >> well -- well, okay. so -- so -- >> i'm trying to understand. >> it's not going to be the bull market we're used to, but stocks that lead could be a different cohort than, you know, than what we think of as leaders in a bull market. >> you recommending your uncle's portfolio? >> my uncle? >> which relative do you think? >> my -- i don't know. i'll have to ask my uncle later when his portfolio is. >> go ahead. in terms of where we do go, i mean, do you go with the high

fliers or the more staying companies? >> i think, you know, regime change caught people offguard this year, right? people have been over allocated to china, bonds, and growth stocks, so i do think we're entering a value regime, which means, you know, one, like a walmart, that stock should be everyone's corporate bond because it's higher than the ten year bond yield, you all tech is huge in the next couple years, and that's not traditional value, but it's that tech companies are cheap. you pay for more toilet paper than software. >> i agree. old tech is where it's at. >> really? >> old tech is the new dividend growth play. >> so it's almost time for us to start asking people about, like, next year, 2016. almost, like, what are the -- what the trouble spots that could reemerge? china? what are the elections coming? way are the things dictating what we talk about? we don't know most of the time,

but do you have guesses? what do you think? >> i think you want to stay away from anything with credit sensitivity. >> really? why? >> because we're at the other side of the credit bubble. we've seep a 30-year bull market in bonds where anything with credit sensitivity has done well, emerging markets, credits, materials, commodities, the next 20 years i think is beginning to be very different. we're a cash rich companies with healthy balance sheets. like i said, maybe they are your grandmother's stocks, but that's where i think -- >> depends on the grandmother. what do you think? >> well, i mean, i think next year is all about reallocation of capital. like, i think people took chips off, in the wrong places, and i think the one thing we can count on is, i'm sure next year is tough a year as this year's been. i think it's still a bull market, but it's a tough year. >> was that greece this year, becky? >> yeah. >> greece every year. >> yeah. >> we had greece, we had china.

>> do you remember when greece is what we were worried about? >> that was july and june. >> the good ole days. >> the problems were mangle. >> the size of delaware. >> not china, 1.4 billion people. >> the second largest economy. >> thank you. we'll update your -- i want a list of all your relatives, what they are doing, and even the black sheep of the family, someone you don't talk about anymore. when we come back this morning, more problems for volkswagen. the epa says the company cheated on emissions tests with more engine models than prooefgsly believed. we have the details straight ahead.

welcome back, everyone, the volkswagen emissions scandal is bigger, accused of cheating for a second time. the government says the german company installed software on thousands of audi, porsche and six cylinder incidents. prior to this, it was smaller 4 cylinder diesels. it's said to let the cars emit fewer pollutants in the tests than actual driving. they denied the soft ware on

larger diesel, but, again, it's a situation where epa says testing shows it. we'll see how it plays out. the national traffic hay safety administration is adding automatic braking to the five star car safety ratings, starting with models 2018. the system engauges brakes automatically if there's a coming collision and the driver does not apply break. they say the technology could prevent 80% of rear end deliciouses. small business hiring, a call on the companies that split in three units, and actor topher grace joining us on the new movie "truth" about the investigation leading to dan rather leading cbs news. we'll be right back.

welcome back. among the stories that are front and center today, sprint posted a bigger than expected loss in the biggest quarter, revenue falling short of estimates. adm missed the mark on top and bottom lines, and company says results were limited by lower margins and volumes of north american exports. noweigan cruise posted better than expected revenue, guidance light, but it's within the wall street consensus, and the stock now unchanged. singer adele broke the u.s. record for most digital music downloads in a week. billboard says the new song "hello" sold more than 1 million in the week that it was available, the first song to crack the million download mark in a week. it's the first single released from her upcoming album. breaking right now, fresh data on the small business jobs market. the paychex ihs survey for

october is positive despite recent slow down in small business employment growth. the ceo is joining us now with the numbers. slow down, but was it better than you expected? >> well, it's been a steady continuati continuation. joe, we've seen a decrease each month. now we're down to the growth rate, down a half percent from last year at this time. while it's still positive, it certainly is leveling off a bit. >> are you under the -- i mean, do you have the opinion that small businesses are at a disadvantage to big businesses because they can't deal with all the regulatory and other overhang that big businesses can deal with much better? >> well, i think it's a mixed story sometimes. you know, smaller businesses sometimes are not subject to the same regulations, but there certainly is plenty of regulations that make it difficult on small business. the good thing about the index,

the paychex index is leaving the markets. you see what's happening. i think employment growth numbers have kind of levelled off a bit, positive, but leveling out, not at peak it was last year. >> we always hear about how many of the jobs small businesses generate, and what is it, i don't know, two-thirds or something? you know? >> yeah. it's like 95% of the jobs in the u.s. really are from a small businesses. >> okay. well, that's a lot more than that, and even though we're at 5.1%, there's still the general feeling that one of the reasons we don't have income growth and wage growth is because of the labor market's not really as tight as 5.1 would indicate. is it -- is it slow moving in the small growth or small business arena, or are things finally recovering from five, six, seven years ago? >> well, i think we've seen a slow steady recovery.

it's not been a fast recovery, and i think now it's kind of leveling out. there's normal, kind of job growth, and the one thing we're trying to watch here is a lot of it is part time, so i think there's still a big caution with small businesses, an they are bringing on part-timers. looking at the industry sector in our index this month, that continues to be other services. so the good news is those are discretionary. people are spending money on discretionary services. that's good news. the bad news is a lot of that is part time. you know, it's personal care. it's things like that, so the hiring is up on the part-time side, still cautionary. >> why are people cautious after, you know, seven years after the financial crisis? why is there still so much caution? >> yeah. i just don't think they are seeing as much as the spend, demand is not there for the products as strong, so if i'm not sure the demand for the products are sustainable, i'm going to be care. . i've also seen a lot of regulations, the health care regulations on the affordable care act. new overtime rules, you know,

things like that make me cautious as a small business so i hire part time to see how it goes and what the costs are that i bring into the business. >> like pulling teeth. that was the question about five minutes ago, with the regulations hurting small businesses, so wow of you got around to it. it is a problem, then, right? >> well, sure. that's part of it. it doesn't all apply to them, but certainly, small businesses is hurt by regulation in general. >> marty, doesn't the growth of that part-time sector you're talking about, doesn't that make the 5.1% kind of misleading in terms of whether we're really at full ploemployment right now? >> yeah, sure. i think it does to some degree. you know, you look part-time employment as a percentage of the whole is up 2% from two years ago. i think that that has a little bit of an impact on whether we're really getting towards full employment or not. when it's part-time, you're not getting as many as the benefits, et cetera, and the wage growth,

that's why we are seeing wage growth under 2% on a net basis, which is pretty mild. >> yeah, it is. all right. the best actual areas for small business, did you -- did you mention the best and the worst? >> yeah. i mean, really, the best cities for -- the best states are washington state and texas. the best cities are still dallas, number one, been extremely strong, and houston dropped off a lot, i think that's certainly oil production and so forth. >> yeah. >> and miami has seen the number one largest growth in one year, miami has seen it. i think there's a lot of investment from outside the u.s. coming into miami in the building back in miami from condos, et cetera. >> okay, great, thank you, see you next month, appreciate it. >> thank you. aig posted a big miss on top and bottom lines after the bell, and taking a half billion dollar restructuring charge. this is coming a few days after the billionaire activist, carl icahn, called the up the company to break into three separate

companies. we are joined by randy, senior equity analyst at fbr capital markets. thank you for being here this morning. >> good morning. >> the numbers short of what wall street expected. a big miss in this case, 52 cents versus a dollar that the street looked forment what happened? >> downgraded a month ago on concerns about what they would print. aig has market-to-market items for hedge funds, investments in other insurance companies, private equity, et cetera. that number was lower than expected. i think the market lookings through that. a lot of the assets rallied in october. the challenge is that loss margins, particularly in the property casualty business were worse than expected. that's a focus on the call, but not as much as the activists' activity. >> the activists' activity interesting, calling for the breakup of the company in three different businesses, carl has good points.

you don't want to be classified as a sipi, a systemically important financial institution. that's an onerous definition, but what do you think about the idea of splitting up? >> great plan overall, but the devil is in the details. there's a note recently, moving to market performance on aig m breaking up is hard to do in the note, and that makes great sense to break the company up. the gaiting fact on is it the tax asset that aig laz, an nol, worth $8 a share on the $63 price target. it's not a new issue. they thought it could be impaired in a spin situation. my suspicion is that icahn has a better plan if there is a spin. that's on focus in the 8:00 call this morning. beyond that, you know, if they can keep the tax asset in place, that could make sense to break it up. you know, our view is valuing

the businesses of aig, a lot of businesses globally, really good brands, really weak businesses, and we have about a 10 multiple on earnings across the complex, but the m&a market in particular, and insurance, very active right now, you know, maybe they could get multiples up to 12, maybe higher, and i think that's what icahn's looking at. >> he wants to see them cutting costs as well, but people close to the company pointed out issues, first of all, if you leave the individual units to stand independently, they need to shore up their own capital bases, and that would be expensive. there's one sales unite that services all of the different industries, and if you were to split, you need to double the size of the sales team. are those valid arguments for not doing it? >> on the capital, i heard the arguments, and i say there's a lot of capital unleashed, if you will, in a spin, so i think capitalizing the units probably is not a big concern of mine. iag broadly is over capitalized.

i worry more about the quality of the infrastructure in the businesses, and so, you know, my take on it is that, you know, the current management team's trying to create one aig, is what they say, basically trying to fix the old aig, that was, you know, poorly integrated company. i don't know that it's safe not to spend a lot of money on i.t. at the company, and so that's kind of more of the angle i'm taking it from. i think there's plenty of capital for the independent businesses, staffing up a sales organization is a greater thing in the scheme of aig. >> you sound like you agree with carl, then? >> listen, we agree, but as we said, that means -- i have a $63 price target. i don't -- i think aig, quarters like this show the quality of the business at aig is reserves in particular are weak. so, you know, i don't know how much higher the multiple they get out in the market is, i think given how low the multiple is and how far below book value effectively the company's trading, they don't have a lot

to lose. as long as they don't endanger that tax asset. as long as the tax asset survives. aig does not pay taxes right now. they are not going to pay taxes for years to come. that's incredibly valuable, the most valuable thing at aig as long as they preserve that in a spin, there's not a lot to lose. the low interest rate environments causes crazy m&a. s largest m&a year ever, if they expose grands to that, i think that that, you know, could drive upside. $100? that's what they said in the letter, that's high. you know, it would be more like $10, maybe $20 of extra value. >> property in casualty and life insurance have been the issues dragging aig down. is that simply a fixture? you mentioned how much m&a's been in the arena lately. is that simply a feature of, you know, the way insurance works, you take the float, take the money, paid up front, invest it, find ways to get a return on that. it's really hard to get a return these days given 0 interest rate

environment. >> yes. it's a problem. i mean, you summarized it well, whether it's life, property casualty, they are myriad projects globally on the margin, and if you read a warren buffet book, this is what you make money on, the float, for lurnif insurance, it's a spread. they are under tremendous pressure. fold the tent, go home, so they react with m&a, and, particularly, it's the japanese. the japanese have much lower interest rates, no growth domestically, a huge insurance market. the companies are better buyers of a lot of assets. as i said, as bad as it is for the insurance space from macro, the m&a environment draws a line under things, and in the case of aig, a weak quarter, we have the questions about the company, now they have this activist activity that drawing a line under the stock. the stock is not weak today as it would be on this. it was a bad print. stock is better because of the activists' activity. >> all right, randy, thank you very much for joining us.

>> all right, thank you. by the way, programming note, aig's ceo will be appearing on "squawk on the street" after the company's conference call, and carl icahn is speaking at the new york times deal book conference. manufacture on that in minutes. coming up, one of the stars of the new movie "truth," topher grace, joining us on the 2004 investigation bringing down dan rather and other things. interesting guy.

you know, one side or the other says you're partisan. you stop asking question, and that's when the american people lose. that sounds hokey, but i believe it. keep it up. >> yeah or no -- thank you. >> you're welcome. >> in 2004, "60 minutes" investigation into president george w. bush or the two investigations in his vietnam air military service led to a

scandal, and eventually dan rather left the anchor chair, and topher grace is one of the stars of the new movie "truth," joining us now. good to see you. >> thank you for having me. i was so excited to spend time with mr. andrew ross sorkin who wrote "too big to fail" which i was in. where is he? >> at a deal book conference. >> what a jerk. what a jerk. if you're watching, andrew, you're a jerk. i came on for you, buddy. >> he had fish to fry today. >> i'm with the two bigger ones today. >> he's with his idol, al gore, so i don't know -- >> he's going to be joining us soon, and probably listening right now. >> we were each other's dates to the emmy's that year. >> really? >> he's a great guy. >> yeah. so this is not -- regardless of what you think about dan rather, regardless what you think about whether cbs, you know, was in the right, and they are still -- both sides are still bitter. i mean -- >> that's the worst part about doing the press for this, people

go so, what is the truth? >> exactly. >> like, i don't know. no one knows really. >> the method deal, what -- did you study method somewhere? >> no. whatever the opposite of that is. probably doing a sitcom for a bunch of years. >> that was yours? >> yeah. i mean, for this, yes, it takes more research. you know, like when i did "too big to fail", i mean, we're actors, i mean, us learning anything about what you guys do is like a joke. >> right. we don't know what we do. it is a joke. >> i feel i know more about the housing crisis hanging out with andrew for months, and same thing with this. dan was on set and mary was on set, and i read her book, and then, you know, just the director did a bunch more research, and then you form your own opinions, and that's the best part of being an actor -- >> did you eat less or any the opposing -- >> no, no, i never met les.

>> who was the -- i know one of the spokes people said it's astounding how little truth is in truth. >> well, i mean, none of this has anything to do with me. [ laughter ] but i -- i mean, like, i'm -- outside the fact i'm in it, but i will tell you what's interesting is going around and doing press for the film, just as an actor, you realize what a litmus film like this is for people's political views. >> definitely, yeah. >> i hate taking about my own perm political views, but, certainly, everyone when i've been talking to them, it's really quickly exposed. >> one of your favorite films was "all the president's men." >> my favorite. >> right. that was redford and hoffman. >> i like movie, and then someone in 10th great, studying watergate showed us that movie, like, oh, i like films now. i like cinema? >> because history comes alive or -- >> yes, everything of the that's the best film made in terms of

what it's about, in terms of the acting, in terms of -- that it was real, something that happened, and you see inside it, and then to get a film like that is a dream. >> about journalism. >> on top of it, robert redford was in it. >> too old to play me, but dan rather is lucky, to have someone -- >> you need ryan gosling. >> yes! >> i can see it. i met ryan, i'll talk to him about that. >> or nick. did you see that shot? thanks. we were going to talk about how different things are changing. you made -- i don't know what vimeo was, but to get this, you didn't have a casting call, but made a tape, sent if, although you're topher grace, although you have a huge resume -- >> i look at the actors in it, you know, kate is the best actor of our time, and, you know, to know robert redford, going to be playing that role, like i, said

in this movie, i was on another project, and i thought, i'm not going to get this, so i made a tape -- they were not -- i think they wanted someone else and they were not -- they had, like, kind of -- normally when you do a movie, they have sides, they read the scene. that was not available. i just flipped through the script, and i made my own audition tape. i feel so bad. my fiance was, like, reading off camera with e me, there's a lot of yelling, and i was crying at one appointment, a really intense, man, i'm not going to get this. but then i did. an amazing experience. >> i wish we had more time. you have a netflix movie with brad pitt. >> yes. that's not so high and tight. >> exactly. >> that was the movie. >> called "war machine" about general mcchrystal, another journalism political -- >> the idea you are doing something on netflix, that's not the way of hollywood just a few years ago. >> yeah. it's been amazing doing it

because i -- you know, it's not -- i was explaining to my 7-year-old niece awhile ago what block buster video was. she didn't know what this was. >> exactly. >> oh, the technology such at the time you had to go to a store, and i was getting nostalgic about it, it was better then, you know, we got to look at the fronts of the video. >> she said, isn't it better you get it instantly with the push of a button? i went, oh, yeah, i thought, that's kind of -- i think that every day on set, you know, brad's giving an amazing performance in it. it's a great film. >> you don't -- maybe you -- you were inspired -- i liked it. these block buster movies is what seem to be, you know, the martian, but there's enough room now, there's content everywhere, and that's opened up for actors to where -- >> yeah. >> tv even got sort of a renaissance because you can go and be in a homeland or whatever. >> i think it's all eventually

going to be one thing, right? >> yeah. >> we're in that interim, and it's like block buster, like a certain -- that was the technology that went with vcrs. >> obsessed with the big movie, and that's all anyone wants to make, there's plenty of outlets. >> it's a really exciting time to be an actor. there's more to do. >> yeah. we act here quite a bit too. >> yeah. >> we have certain stories. >> you do a great job in this one. >> right? i acted like i cared about this. >> you did. i almost believed it. >> that's it. >> thank you. >> watch this, you know -- >> thank you. >> if i feel something, i do it. watch. >> oh, wow. >> like brando. >> exactly. that was what i was thinking. >> weren't you? >> this is amazing to watch. [ laughter ] >> what's topher? >> the second half of christopher. >> cool. nickna nickname. >> i did not know that. that's my johnny carson. >> wow, this is school for me. thank you for having me. >> you thought redford was impressive. >> this is something else.

>> yeah. >> we'll talk to andrew. >> tell him he's a total jerk for not being here. >> i'll do that. >> every day. >> thank you, topher. when we come back, the lineup, and andrew talking about it. back after this.

new york times deal book conference about to get underway, and andrew is joining us now from the whitney museum of american art with the lineup. start at 8:00 or 9:00, andrew?

>> starts at 9:00, joseph. >> wow. >> reporter: giving you time to get down here. >> yes. >> reporter: the second the show's over, you can, you know, hop in the car, hop in the limo and have them bring you down. >> what time is my buddy going to get there? >> reporter: what did you say? >> what time is my buddy going to arrive? >> reporter: which buddy we talking about? >> you know who we're talking about. you know. come on. come on. come on. >> there's two buddies, i know two, bob kraft is here in the audience, a buddy of yours here at 9:00. >> he is. >> you can see him then, but al gore, your other buddy -- >> right. >> reporter: on stage at 3:00 p.m. this afternoon. we have a huge lineup. the theme of the day is playing for the long term, of course, this is the great debate going on in the country right now, what's it mean to play for the long term, activist quarterly return, how do you play for the long term? we have larry fink starting us off, and reid hastings of netflix, hoping to make some news this morning, and a little

bit later, we have james gorman, ceo of stapply, and they try to transform that, and they speak to him, and the ceo of ibm, of course, a century-year-old company that is facing a transformation, and than gary cohen steps in for lloyd blankfein before lunch to talk about goldman sachs, and coming up this afternoon, we have coca-cola, another company that's dealing with its own transformation, if you will, and peter and chris of the newest shark of "shark tank" talking about venture capital this afternoon, and we have al gore, and then to cap it off, the one and only carl icahn. that's the day coming up, and i expect to see you down here, joseph, and becky, no less. >> well, we have had topher grace. >> he missed you and mad at you being not being here. >> i know, i know, i got to call him. it was a great interview.

>> a lot more andrew coming up, and we'll be right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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. this is an opportunity to right that wrong. the idea was to bring capital into the affordable housing space in south africa, with a fund that offers families of modest income safe and good accommodation. citi got involved very early on and showed an enormous commitment. and that gave other investors confidence. citi's really unique, because they bring deep understanding of what's happening in africa. i really believe we only live once, and so you need to take an idea that you have and go for it.

you have the opportunity to say, "i've been part of the creation of over 27,000 units of housing," and to replicate this across the entire african continent. new data on millennials in the walk place, we have the details on how the generation is not that different from the

rest. plus, a look at how they are investing their money with a special father-son duo, jim and patrick. >> creating a new nanny for a navy seal. >> you will not laugh. you will not cry. you will learn by the numbers. >> how they shook up the home life by hiring one of america's toughest soldiers to live with him and his wife and kids for a month. >> and disruption in the classroom. they want to bring education to the masses. one video at a time. why this hedge funds analyst turned education pioneer is attracting big backer, and bending the learning curve, the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box." welcome back to "squawk box" here on cnbc, first in business worldwide, i'm joe along with

becky quick, less than 90 minutes from the opening bell on wall street, and a year away from the presidential election, i'm told. >> september -- november 8th. >> a year and five days. >> yeah. >> futures now are down 48 points after a pretty good session yesterday. for the first trading day of november after what was a very positive month for all the averages in october. checking out the markets in europe. at this hour, maybe you would have expected more follow through after what we did in the states yesterday, but as you can see there, all red arrows across the board, nothing too significant, but between a quarter and half point in the major averages, and then italy and greece after that. new this hour, persing square lost 3% in object, down 19% now year to date. they have a large position in valean pharmaceuticals, taking a beating after the controversy of the business relationship with specialty pharmacies. >> did you say?

>> down 19%. >> 19%? >> year to date. valeant got hammered. >> i could beat that. >> look over the long haul, but, yeah. >> 19% down? i'll go up against that. i will. stay in cash. >> braver than i am. cash, there you go. the other stories talked about today, auto makers release october sale, and analysts say the pace is expected to top 17 million vehicles for the sixth straight month. chrysler just out with the october sales, up 14%, up above estimates, and the company behind the push to build the keystonepipeline, transcanada, asking the u.s. to suspend the review of the project to the next presidential election. the poll finds ben carson surges to the lead of the republican presidential race, with the

support of 29% of polled gop primary voters. carson followed by trump, rubio at 11%, and ted cruz at 10%, and burr at 8%. >> who is writing this? anyway, activision blizzard buys king for $5 million, a 16% premium to king's closing price yesterday. they say the deal should boost its mobile games business. the company also giving an update on the registered user base of the widely popular game, "destiny," and they say the user base grew from 20 million to 25 million in the past few months. that's one of the most watched games on tv. ceo joined us in the last hour to talk about the deal in the future of gaming. >> with king, 60% of the audience is now female, which is

a really great caption opportunity for us, and now they are in 196 countries around the world, which is something that's really exciting. >> take a look agents the shares of acti vision over the next year on a steady climb, and just off what i think is an all-time high. candy crush is -- you seem to know about it. i watched a little bit about it. >> it's, like, you know, you put them together like bejewelled. you don't know what that is either, right? >> no, i don't. >> put them together, match them up, they disappear, and you build off of that. it's like it tetris -- >> i don't know what that is either. >> they are games. >> you keep playing, and it's not old? >> addicting. the women in the family who play really hard core, like, yeah, ere's no getting the phone away from them. >> the girls, talking about -- >> no, my aunt and my aunt, my cousins. a lot of people addicted to this. let's get to the all america

survey that's out, and this time with a twist, the millennial edition, how the next generation of leaders view the world. and work too. steve leisman has the details. >> good morning, becky. conventional wisdom is the 18-34 group are a very distinct demographic, but our cnbc survey that did an over sample ever millennials, greater than the proportion in the population, finds sometimes differences, especially with economic issues, they are more similar than they are different from other demographic groups. first thing, we asked, what do you look for when it comes to a company or an employer? we asked about how important is the environmental record, how important is hiring the best and the brightest, work force diversity, work-life balance. when you see this chart, in terms of rank order, millennials are the same as the broader population. environmental is least important, ethical practices the most. inside, if you zoom in, you see slight differences, hiring the

best and brightest more important to my men yal, diverse di about the same, work-life balance about the same. they lack a little bit when it comes to the importance of rong ethical practices, but it's the same. looking at the satisfaction that millennials have with their employers on this level, they are the same as all adults, 72% for all adults, 73% to millennials. not a whiney group of youths contrary to the conventional wisdom. digging into things of financial and pocketbook issues. what's the most important thing in a company? well, they are the same as everybody else, salary, wages, and a good boss, 15%, same as everybody else. here's where there are differences. on the next screen here, promotional opportunities are very important to millennials, retirement less important, flexible hours more important. then, again, we look at the satisfaction of millennials, those who rank their current employers good or excellent on these issues here, millennials are actually more satisfied,

more satisfied with promotional opportunities, satisfied with the boss, and less satisfied with vacation time. joe, i don't see this whiney group of youths in the survey of 18-34-year-olds. i see a hard working serious group of youths, joe. >> what is a ute? why do you say that? >> a tent in mongolia, a utah team? >> right, right. >> are you saying youth? >> youth. >> who are you? youth. >> joe pessi? >> no -- >> exactly. exactly. >> so -- so these my men yals, they are here to stay, aren't they? they are not -- we're going to have to pay attention to them, not going anywhere, are they? >> not as far as i can tell, no. >> i guess we have to pay attention? >> you have to. you have to. >> for more on millennial money and investing habits, this is a

father-son duo. patrick, and author of millennial money, how they build a fortune, and his father, ceo of the asset management and member of the squawk plat number portfolio. >> which are you are millennials? >> take a guess, what do you think? >> that is funny. >> i tend to agree a lot with what the millennials are saying. forever young, joe. forever young. >> your attempted -- so we saw it right there -- >> i like the same music. >> so they have the same concerns a lot of the same issues, just as they are talking about them, they are like this. that's the only difference? ask what they are doing, looking here on facebook. >> what i found interesting was the third chart saying what they want is flexible work hours and want to be ahead more than the other generations, a funny combination, and care less about retirement benefits.

that's mixed up. i argue that people who have time ahead of them, care more about retirement benefits. >> i didn't care about retirement either. >> makes sense, right? hard to care about something that's four decades away. >> there's another thing from another part of the survey we'll talk talk about later today which is that they are risk averse. they are more -- they don't count the stocks the way older people do, but they should. they are more into savings accounts. this is the time to take risk, and they are not. that's a big difference. >> i agree with the main points of the survey, a generation like any other, and differences are because we're still young. >> where does this idea come from? >> i'm not too sure. >> i thought i'd find a group of alien youth, but it was a very normal -- stuff in it where they are different, but nothing not explained from the fact they young. like, they grew up post-9/11, they have student debt, grew up like this, you know -- >> any political questions -- >> we did. >> lean left? >> they lean center, joe, and,

in fact -- in terms of satisfaction with republicans in congress, they are greater than all adults in terms of satisfaction with congress. one thing where they differ is that i don't find this huge youthful optimism about the economy. >> yep. >> that you might expect from younger people, and i don't know -- >> wonder why. >> i don't know that that -- well, whatever the reason, joe, we don't find this incredible youthful optimism. >> you have to remember they came of age in the financial crisis. >> right. dpl that was terrifying. >> right. >> so, you know, like people in the 1930s, they were extremely risk averse. my grandfather would not invest in stocks. just bonds. >> they want to earn their own success, they want to afford -- >> no doubt. >> it's expensive to be a millennial. >> no doubt. >> they want to experience things, go to africa, they want to do things that cost money. you need to be a productive member of --

>> i thought there are satisfaction levels with different aspects of the work force was amazing. i thought they would be, you know, because you make fun of them all the time. we all make fun of them all the time. they are not a whiney group of youths. the other thing that's weird is that -- >> entitled. >> 18-34 is a vastly huge demographic. >> exactly. >> when you're 34, the world is way difference than at 19. >> 80 million people, a massive swath to paint with one brush, but what's different about this generation is the skepticism of stocks. >> huge. >> this preference for cash is key instrument when you're young, totally backwards. i understand why it's the case because of the financial crisis, but that's the thing we should try to change for young people more than anything else. they have a great opportunity, even if they are vesting a small amount, it should not be in cash. ? another thing found was that they are skeptical about social security more than -- th

they should be, but they are not taking action as a result of it. they should be saving more, but they are not. >> they have time. >> you do live forever. >> so many simple things. >> living forever, that's the other problem. >> guys like me and joe and becky, we shouldn't get social security. it should be means tested. people who don't need it, should not get it. there's a lot of real simple solutions. >> why interest them in stocks by giving us -- watch how i do this -- giving us picks from the platinum portfolio. o one or two. >> so glaxos is on the list. we have dow chemical on the list, also new, and we have china offshore, which is also new. >> when did you pick that one? it's had a run recently. >> just for this go around. >> sell all the dogs with fleas that you can get? people buying it last time?

what happened to the old one? >> the way we do things, they did not qualify. since they were not qualifying, we rebalance monthly. >> lose money for everybody on it? >> no. we made a little money. >> okay. >> joe, can i ask patrick, a balance of a portfolio for a millenni millennial? a guy or gal 25 years old. >> yeah. >> tell me the stock bond portfolio percentages you do for them? >> i argue almost all stocks. >> 100% stocks? >> yeah, that's what i'm positioned in. >> opposite of what they want. >> i understand is depends on the individual, terrified of markets, don't be 100% stocks. if it's for retirement they invest, it should be as much in stocks as possible. they are in opposite names recommended. we recommend amazon and netflix. >> the same for millennials as they -- >> they should be arguably, but they are not popular stocks for millennia millennials. >> cool.

all right, gentlemen, thanks very much. >> thank you. when we come back, need motivation? hiring a navy seal to live with you for a month to break bad habits? >> well, millionaire entrepreneur did just that, sharing the experience and tell us how it's changed his life coming up in a bit. the future belongs to the fast.

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coming up, why a self-made millionaire hired a navy seal to kick his butt, rapper turned businessman joins us to talk about the new book, and why he wanted to train with the toughest man on the planet. yeah. these are picturing from some of the harrowing experiences. more about that coming up, and later, a former hedge fund analyst disrupts the education process. the founder of the academy is bringing free education to the masses, and he has some big backers. we'll talk to him about the future of education in just a bit. "squawk box" will be right back. you've watching "squawk box" on cnbc, first in business worldwide. 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.

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welcome back, everybody. after sells one company he cofounded to warren buffet and another startup to coca-cola, this entrepreneur worry his life was on auto pilot, so hi hired a navy seal handing over the control of the life. 31 days training with the toughest man on the planet. david is the toughest man on the planet, an endurance athlete, navy seal, and welcome to both of you, great to have you here. >> thank you, guys, thank you. >> appreciate it. >> i have to say, when you first told me about the story, i

couldn't believe it, the idea your life is on auto pilot. what made you hire david saying coming into my life. >> i met him at a 24 hour marathon in san diego, running the race as a six person relay team, and he was did it alone. the race was unsupported. you had to bring your own supplies, and we went overboard, and he sat in a chair, fold up chair, with a bottle of water and crackers. that was it. i looked at him, and i'm, like, this guy has something that i need in my life, just like a grit and determination, so i called him. >> david, i heard about what you were doing, running the race, why, why by yourself? >> well, some buddies of mine, i'm a navy seal, was, and now retired, and my buddies died in afghanistan, so i wanted to raise money for their families, found a way to do it, and ran. >> how do you get mentally prepared for a 24-hour race like

that? >> you are never prepared for it. you know, you just go through it, take one mile at a time. you know, just slowly chunk it away. >> what did you think when he called you? >> thought he was crazy. >> had you ever had anybody request something like this before? >> never. never. >> what did you do in response? what was the training? >> well, you know, we just did things that were totally outside the box, you know, anything that made him uncomfortable, that's what we did. anything he did not look ig, that's what we did. so, like, you know, about building mental toughness, that's the one way to do it, take somebody from the comfort zone and put them in the element that's uncomfortable. >> describe day one. >> well, he had a motto, if it doesn't suck, we don't do it. every day, i woke up, basically, what's sucking today? day would be was tough because i slept in a chair the first night rather than my bed with my wife, but -- >> david moved into your apartment? >> moved in, no escaping. i called up my wife, said, you know, there's a guest coming,

and, you know, we -- he really was pushing me to all kinds of limits. he took a boulder and cracked it through a frozing lake in the middle of winter and told me to jump in. it was all about just getting uncomfortable. >> that sounds not only up comfortable, but dangerous. >> yeah. >> well, he was with me, i felt okay. >> i think you mentioned at one point, one of the things was you two went downstairs to the gym in the building, and, by the way, you and your wife, the founder of spanx, a friend of show, you have a nice building in new york city. you went down to the gym, and what happened? >> well, we were going down all times of the night, and people, i mean, we have nontraditional methods, i mean, some of the exercises and workouts were like me carrying him up and down the steps at 15 central park west -- >> how many steps? >> 37th floor. so it was -- it was challenging. but, you know what? it was rewarding. you know, i really -- i wanted

to just completely get out of any comfort zone, and get better in all buckets of my life, and i thought this would help translate into work and not just the physical, but i wanted to know, like, what makes a guy like this tick? it started out as a blog. you know, people told me it's motivating, and inspiring and interesting that we turned it into a book. >> what have you learned? what lessons do you take away? did it shake you from the traditional way of looking at things? >> deaf in thely, you know, i learned i have more in my tank. the big things is what's in the reserve tank. i thought i was operating at a high level, but i had so much more. that's something that i definitely applied, and i'm way more efficient with my time. you know, david would find 15 minutes of work if i had a break to say, okay, e-mail break, he said, let's go, how many burpees can you do in 15 minutes? every minute was utilized, so efficient, and that consistency and discipline has really

translated into my life. >> david, you look like you've lost weight since when we saw some of the pictures in here. >> a little bit. >> what happened? what are you doing? >> constantly transforming, 300 pounds, then 205, now, like, 175. now i'm running a lot, retired from the military, just time for more goals. >> has anybody else called you and asked you to do something like this since then? since the book came? >> not yet, but after they read the book, i don't think they will, you know. i don't think they will, for real. >> what was the worst thing you did in the entire process? >> well, jumping in the lake was bad, but he came up with all these different phrases, and had had a 4-4-48. every four hours, we ran four miles for 48 miles. i would run, fall asleep, get a tap on the shoulder, time to go. >> time to go. >> a ten minute mile?

>> we did it with this weight pack on. >> carry this. >> no, no. i do things to make myself uncomfortable like wearing male spanx. i'm uncomfortable right now. >> you look good. >> thank you. >> no more kids for me. >> were there times you thought i wish i had not done this or call him? >> oh, yeah. all the time. >> but, you know, he -- it became -- it became addictive. it was -- i kept looking forward to the next challenge. like anything else, after two weeks, three weeks, it welcobec habits. he did not realize it, but putting good habits, better habits into life. >> you're not waking up every four hours now, are you? >> only if he's here. >> have you gone back to the old ways or go back to a newer version of yourself? >> i went, you know, i've been able to keep consistency, the level of difficulty has gone

down. the consistency's still there. >> that's great. i know this is one of a series of things you are considering doing. what are the other challenges you are taking on? >> when i meet inspiring people, i want to meet them, like i met david, and so this will be a series of living with interesting people, and we were just talking about, i'm going to live with a monk next, but open to suggestions. >> a monk. >> you won't be able to talk. >> yeah. >> no sex. >> a month with an asterisk. >> that's cheating. go all the way, dude. >> what's your wife think about this? living with her too. >> yeah. that's a book. living with sara is a book. you know, she lives her life so out of the box and put herself out there that when i told her, called her up, literally, a navy seal's moving in with us, she's, like, okay, sweet swie. >> wow. >> i marry the right woman.

>> right. thank you so much for the book, we appreciate you coming in, and, david, thanks for coming in, pleasure to meet you. >> trainers are necessary to make progress. they are. i thought i was going to have it one time, show me what to do, shows me, but when he's not around, i cheat, oh, oh, that's enough sets, enough reps. when someone is there you don't want to let down, that's another ball game. >> absolutely. i totally agree. especially him. i mean, he's an american hero. >> the name rhymes with pain that rhymes with gain, the way to do it. >> imagine living him 24/7? >> i feel like i do that now, stretched one day, and right in front of him the next day, i wish i was not here. that's the only way, otherwise you don't do. >> i didn't have a choice. >> do this or this? oh, i want to do that. okay, then we do this. give the alternate choice, whatever they don't pick -- >> there was no choices between

us. [ laughter ] >> worst in your mind you imagine, that's what you're doing. >> >> that's what we're doing. >> training with the toughest man on the planet. >> wow. thanks, guys. when we return, i like you -- both of you guys -- i don't -- giving me the scary look. anyway, when we return, third open enrollment period for obamacare, what's working, what is not, and the senator john barrasso of wyoming joining us o after the break. equity futures still down.

chrysler out with numbers, and phil lebeau has more. how are you? >> better than expected sales number for fiat chrysler with an increase of 14.7%, better than the edmonds.com estimate, 14%, and no guessing what's driving the sales, the jeep brand. listen to this. jeep sales last month up 33%, and they were already high expectations, but they exceeded those up 33% for jeep last month, and, guys, we'll be

getting all the numbers in the next hour and a half to two hour, and early indication is for a sales pace of 17.8, maybe 17.9 million, and joe, becky, i hear whispers we might see a monthly sales rate above 18 million, and just for reference, it's happened once we had two months in a row with sales pace above 18 million, back in 2000, we'll see if it happens when the numbers come in over the next couple hours. guys, back to you. >> all right, phil. so the diesel porsche, phil, probably a cayenne, isn't it? >> that's what it is. the one the epa says as a defeat device on it, and, oh, by the way, volkswagen is emphatic saying, nope, no defeat device. there's, clearly, a point of disagreement on this one, shaking out over the next couple days. >> okay. good. i was wondering. thanks, phil. >> you bet.

obamacare enrollment underw underway for the third year, and premiums in the 27 metropolitan areas will be higher in 2016, the chairman of the republican policy committee is out with a new op ed "beginning of the end of obama care," joining us from washington. i've seen a lot written in the last couple days, senator, went an of the things is that there is sort of a media sacred cow now that obamacare has given insurance policy to 10 million people that never had it before, and that there is -- it's absolutely been a huge success, and no one really wants to look at details, how many had insurance, and now have them, how many lose it, co-ops shut down, and how poor this year's going to be. they add a million. this was to be a 20 million, we're only going to get from 9

to 10 this year. hard to trumpet this as unmitigated success, is it not? >> absolutely, right, joe, 32 million uninsured, 72,000 americans lost insurance because of the co-ops under obamacare have fallen apart, and the one in new york, you know, they are not going to be allowed to sell insurance, and they have to shut down december 1st. people are scrambling, 200,000 in the home state there in new york, but the reason the people are not signing up is because of the cost, which is so high, and the confusion about the health care law itself. people are realizing that they are really not getting a good deal for their own money, and even those that buy the cheapest plans look at huge deductibles, over 5,000, so even though they have insurance, as the president talks about, it's not something they afford even with the insurance card. >> and always a false choice presented, no one with preexisting conditions have

insurance if not for obamacare when all the other remedies bipartisan at that point addressed the preexisting condition need, and that would have been taken care of without this huge unwielding program. >> absolutely right. there's been this incredible upheaval of the whole health care system in america when we could have helped the people with preexisting conditions in a way that did not hurt so many other americans who have noticed their premiums going up, their choices going down, losing their doctors, and their hospitals closing, over 50 hospitals have closed since obamacare came into play, in rural americas. that has a human impact on the communities there, so a law that the president has said is supposed to make things better for every and everybody has been covered has fallen woefully short. the president said, hey, it works better than i thought. in my home state in wyoming on the exchange, people have one choice, only one. choices are going down around

the country, and americans are suffering sticker shock on the exchange. the cheapest policies up 13% on average. looking at double digit increases. that's why americans are moving away from this and why it continues to be so unpopular. >> right. well, i keep hearing, you know, people just don't know what's good for them when it's stuck down at 35% approval, you have to take med sip, but say a republican, just for argument's sake, a republican is elected, and that there's, you know, cooperation in congress if the gop controls that. what is there a viable replacement, a way to take the niep or ten million people that have insurance policy, would they lose insurance policy or is there a program existing or proposed by republicans that would, you know, allow the people to stay in the insured ranks? >> well, obviously, that's something the presidential candidates are talking about, their open best ideas, but i

proposed for several years now the state health care choice approach, which says that if california and new york want to keep what they have, that's fine, but if wyoming and texas want to get out of it, let those states decide if the mandates should apply, and i don't think they should apply anywhere, mandates you have to buy insurance that and that you have to buy a government approved policy. i think that we ought to be able to as individuals make a decision about what's best for us, our family, and buy insurance that's working for us and our needs, not washington's one-size fits all, telling us what the needs are. >> medicaid genie is out of the bottle. a lot of metaphors, no putting that tooth paste back in the tube, is there? expanded medicaid with grants from the federal government, and all the states, and those people are going to stay on medicaid, right? >> well, i've been in the state legislature in wyoming where we dealt with medicaid.

we felt if we had more control at home in our own state, we could be doing a much better job of getting more care, more coverage for individuals and helping them with their actual health care needs than when washington comes in and temperatures us how to do it. i'd much rather see states making those decisions with regard to medicaid with the conditions on the ground in their own states, with what's available in terms of health care facilities and what the people actually need rather than washington say that the best way to do it, but, joe, we've seen before with medicaid, washington continues to ratchet down how much money went to the states so the states put in more, meaning less money for schools, for teachers, for fire service, for police. all those things took money away. >> looked good in the outset, but what happened when federal funds dry up. last question, quickly, i've seen some scuttle bud that the climate paris talks that the president is going to try to enter into a treaty that the

senate has no say in, and, normally, kyoto or other treaties in the past have to go through the senate. is he going to go around the senate this time in paris? if so, are any of the agreements end forcible? unenforceable agreement, doesn't it? >> well, the president is trying as hard as he can, again, to by pass the elective representatives of the people. i expect he's going to try to do that in paris. he's promised three billion dollars of taxpayer money, and that is the lynch pin of the whole process, and i'm here to tell the president today or today to tell people who want the money, don't cash the checks. we'll have something to say about it. you know, the president has -- is known for making bad deals, and my worry is here he makes another bad deal. one on climate with china says that china can continue to increase emissions all the way until 2030 where the u.s. has to

cut by 2025. the concessions we make and the cost to us and our economy are much greater and much more real than what china will ever do, and the president needs to realize that and recognize it. >> all right. senator, senator john barrasso, thank you. >> thanks for having me, joe, thank pps. >> see you around, thank you. when we come back, the classroom on your computer for free, how the academy is disrupting education and allowing users to learn at their own pace. that's next. in the meantime, the futures at this hour, yesterday, you saw gains of 165 points for the dow, and this morning, the futures down by 30 points, s&p futures off by 5.5, and nasdaq down by 10. "squawk box" will be right back. ♪ today, we're seeing new technologies

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prge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world.

welcome back, everybody, former hedge fund analyst reinvented access to education with online academy reaching millions of students and teachers, to joins now, more on the next project he's taking on, the idea of growth mind set. you have been on before, viewers are familiar with what you're doing, but you are reaching people online, making sure that lecturing is something kids can do on their open. what's the next step? >> what khan academy has, we have video and subjects, elementary to college, science, humanities, all the exercises, if students have the right mind set, tap into the potential, learn at their own pace, but the

question is how do you get people to have the mind set. >> that's what i think the whole time. i have never a student like that. how do you get to that point? >> not yet. there's great literature from academia around the importance of mind set and how to you intervene in mind set. remind students your brain is a muscle, the more you use it, stronger it gets, grit and perseverance is traits to make you better in academics and life freights as well. >> in terms of why you started thinking about this, this was when you were in high school, even, you started noticing that smart kids have trouble with things? >> yeah. well, i think all of us, in our educations or our peers, you take a test, you get 10% wrong on a test, and that's a good grade, a b on it, and then you move on to the next subject, and the 10% gap sits there. you accumulate those, and then

you're in a organic chemistry class, and nothing it making sense anymore. not because the class is difficult or you're not smart, but it's because you have so many gaps. >> missed a building block along the way and can't fill it in. >> that's right. >> what do you do about that? >> in the old days, not a lot, maybe there's a personal tutor to figure out the gap, but that's hard to do, and then they work on it, but now you have tools like khan academy the, it's free, and students can go, software finds the gaps, pick and choose what to learn. there's no judgment. weak on al j bra? before you were embarrassed to say i forgot. >> i look back, and i thought about calculus and helping our kids with homework, i'm relearning the stuff to explain it to them. i don't know that i know where my gaps were or what was missing, but you can take a test that points that out in. >> yeah. coin the khan economy, pick your

goal, and they give you questions, and based on what you get wrong and right, it builds o model on what you know or don't know, and they coach you to fill in the gaps. >> you know, what i know is that when you get behind in school, feel like things are not making sense, frustrated, impatient, and last thing i want is to log on here and take this series of things that take you a few hours to figure out, and then we'll start with the basics. at that point, you want the answer to what you need to know for tomorrow. >> yeah, no, and that tends -- even with my own family members, like, just put in 20 minutes a day, especially if you have gone multiple years with all of these gaps, there's no quick fix to pretend you are learning. go back, learn the algebra. >> you have sixth and seventh grade on here too? >> yes, yes. >> that might work. not for me. that's where we are now. >> we have kids at home, trying to spend a lot of time helping them with this, and, frankly, i feel ill-equipped to do it, and

i think there's pressure when you're dealing with your kids, and i remember my dad not wants to hear from him helping me with trig or calculus because it's hard to have a pamprent teach y. >> working with my son, six now, and one on one, they sense you are frustrated or impatient, but the videos are infin nitly patient. you can find the concepts. >> called slope. have you heard of this? >> oh, yeah, yeah, inclination of a line. >> i thought it was a special meaning for something. it's just an inclination of a line? slope in i never heart of that. >> jumping ahead what they do in school, do 20-30 minutes a day. >> 30 minutes a day. >> day in, day out. >> the khan academy tracks progress on this? >> yeah, yeah. >> i can consistently do this? why is it free? people would pay for this.

>> it's our mission. we're non-for-profit, free world class education for anyone anywhere. let's create things, personalized learning, a free tutor for anybody. we don't want access it. think that's amazing. you told us the story before, but this started because you were tutoring a cousin? ye >> yeah, a while ago now. at the time she was 12, she had math, i was tutoring her. i developed software, then other cousins came, and then others. >> i understand this is something you want to bring to everyone. your backers include bill gates and who else? >> folks like bill gates, bill benton. >> what's the biggest -- where are the biggest successes? are they in the united states? is this internationally?

what do you point to and say this is what i'm most proud of. >> two-thirds of our usage is in the u.s. we estimated a third of all american students used this at least once. every week at our company update we read testimonials. some of the neatest ones are students who thought they were bad at math. they had given up. maybe decided to go back to community college and they stumble on us for a summer and learn at their own pace and then show up and end up in an honors math class. >> sal, thank you for coming in. i think joe and i will be giving this a close look. >> organic chemistry is a good example, if you don't have the building blocks, you're lost. >> i think you'll enjoy it. >> i don't know if i'm going back to that. it's too late. never too late. when we return, jim cramer from the new york stock exchange. p you accelerate, p you accelerate, we've created a new company... one totally focused on what's next for your business.

the true partnership where people,technology and ideas push everyone forward. accelerating innovation. accelerating transformation. accelerating next. hewlett packard enterprise. hand apparently, they also lovee stickers. ng. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this.

thinking that could be a a major impetus. infrastructure and defense will be up big next year. >> jim, thanks. see you in a few minutes. >> when we come back this morning, a sweet deal for activision, the video gamemaker buying the creator of candy crush. we tails after the break. "squawk box" will be right back. . . ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.

welcome back. let's look at some stocks to watch this morning. kellogg reported quarterly profit of 85 cents a share for the third quarter. that beat the street's estimates by a penny. but the cereal maker saw revenue fall short of forecast. that stock is down by 3.25%. and candy crush king digital

after an announcement of a ta takeover. a lot of money left overseas because of tax reasons, that's why deals like this make sense. that does it for us today. make sure you join us tomorrow. right now time for "squawk on the street". ♪ >> good tuesday morning. welcome to "squawk on the street," i'm carl quintanilla, with jim cramer, david faber at the new york stock exchange. premarket giving back some of that unexpected rally yesterday which has the dow positive for the year. the s&p within a percent or so of an all time high. we will juggle auto sales, earnings and m&a. ken-year at 2.2 for the first time since september 22nd. factory orders in about an hour. a $6 billion gaming deal. king gaming