>> good morning, everyone. welcome to squawk box here on cnbc. i'm becky quick with joe concerner and andrew ros ross sorkin. police are seeking suspects in last week's attacks. a government spokesman says the raid is now over. michelle is on the scene and joins us with the latest. michelle. >> hey there becky. 8 hours ago the operation here began. this is a suburb just north of paris. happening in an apartment about 300 meters. that's about three american football fields behind me. there's a massive police presence. here's what we know at this point. federal prosecutors, french prosecutors say they began this operation about 4:30 in the morning. upon entering the apartment a

woman wearing a suicide vest blew herself up. french special forces went in and got three individuals and they arrested two individuals in a nearby apartment. there are other reports suggesting that 7 people have been arrested at this time and there's also been video taken of a naked man being taken away by police at this point. but this has been going on for 8 hours. witnesses and people that live in the neighborhood speaking with nbc news described explosions, gunfire, 20 minutes worth of gunfire. hours worth of irregular shootings and explosions throughout the morning as the operation was underway. the question is who are they looking for? right now all local media is reporting that they're looking for the alleged mastermind of the attacks in paris friday night that killed 129 people at various locations across the city. we're about 1.2 kilometers from

one of the areas that was attacked. three of the suicide bombers wearing suicide vests tried to attack the stadiums so we're near that neighborhood. this is considered a working class neighborhood at this point. we have spoken with a french professor that says 18% of the population in this neighborhood is north african but we're still heavy police presence in the area that has been on going since 8:00 in the morning. just moments ago french government spokesperson confirming that the raid is over and that they have taken people into custody and at least one woman is dead. there's a second report quoting an anonymous official that a second person in the raid might be dead but we do not have that confirmed. what is committed to paper by the french prosecutors is that a woman blew herself upon the beginning of the raid. three people arrested from the apartment. two from a nearby plat.

the number could be higher based on local reports and local media reporting that they are looking for within this department the alleged mastermind who was believed to be in syria at this point. a 26 or 27-year-old belgian born of moroccan descent. if he is here in paris the discussion already underway on french television is that it would be an incredible intelligence failure because he was extremely well-known. this is not some sleeper cell. they had been pursuing this individual for more than a year at this point for other incidents. so if that is the case and there is no confirmation but i can tell you that local media reports it almost and they have spoken with many sources that believe that's the individual they were looking for at this point. but that's the detail that we have right now. it's been a chaotic morning here in northern paris. >> how much of this turned to a

conversation about a failure of intelligence? the reports say there were at least three opportunities in the past year where the government knew about this particular terrorists or alleged terrorists. couldn't get to him. there was a time apparently in athens where they were tracking his cell phone and then lost track of that. there was a -- in the past 24 hours from his sister who said that they prayed that he was really dead at a time when there was an attempt to kill him in another situation. >> yeah, you're telling me a lot of information that i wasn't able to get this morning andrew. so that's all interesting and feeds into what will be the discussion if this turns out to be this individual of how on earth was he able to be in paris when police across europe had been looking for him for sometime. we should tell you there's another piece of information that french media is reporting this morning and that reuters has confirmed that a cell phone

was found in the trash near the theater. 89 people shot to death there by the attackers and the french news site with reporters they describe as close to the investigation say that there is a text message in there saying let's go and also a map, a diagram of the theater. if you can hear those church bells behind me, it's marking -- well, it's 5 past the hour but we're right standing next to a church at this point which is right in the center of northern paris. >> where is this other guy? >> is he in brussels now?

so we don't know where he is at this point. you're direct to highlight him joe because that's the individual for which the massive manhunt has been underway for the last several days. his most wanted picture has been put out by the french police and belgian police as well and there's the massive raid that occurred in the suburb of brussels yesterday and the day before looking for him and that's where his brother is. his brother has spoken to many media outlets asking him to turn himself in and saying they didn't know that their brother could have been involved with this and at first denied it and later said they must have been radicalized in some way. we don't know his location at this point, if he has been taken in or not. >> i like the way you throw in alleged just in case. if he goes on trial, we don't want to mess up the trial or somethi something.

that's how journalists do it, right? anchors? >> some journalists. we should thank michelle. another story in the paper. i believe he has officially been detained. the fellow that rented the apartment that they're all in, this group came to him and said we want to rent your apartment. he said well we have no mattresses and we have nothing in the apartment for you to use and they said oh, no, it doesn't matter. all we need is water and to be able to pray. that was how they -- >> isn't that nice. >> described how that -- and so of course then he rented them the apartment. >> >> another piece of news this morning. two air france flights were diverted after a bomb threat. one was forced to land in salt lake city and the other took off from washington and was diverted to halifax. both were bound for paris and both aircraft were searched after the landing. no explosives were bound on

either plane. this according to a spokesman saying the flights were subject after anonymous threats received by phone after takeoff. so the story doesn't end. >> joining us on the squawk newsline, the former director of intelligence and now chancellor of the institute of world politics. mr. director, so far, what are your impressions of the french response. it's impressive in a lot of different ways you would think although we're watching from afar. >> well, the french have obviously been keeping track of some of these people in some fashion. perhaps not in detail or day by day. they are doing a good job in rolling out some portion of this network but it may only be a tiny portion. it may be a very large network or could be one of a large

number of independent networks all essentially islamist and on jihad against you and me. >> and the president of france, immediately imparking on more than we have done probably and also and some of his allies don't seem to be as engaged as he is in the fight. >> i take my hat off to him. he's at least trying to do something and not minimizing the problem. we're at the outset of a multiyear or multidecade war and our own government is acting like it's an unfortunate skirmish and back to the narrative. >> just living here in the

states and working in new york, it's a little bit disconcerting to know that these guys were not on our watch list. i don't think any of them. were they? and if they had normal european passports they could have come here easily on a plane right and gotten a temporary visa and there could be other people like that here right now, is that correct? >> yeah. absolutely. the close cooperation on travel between the eu and the united states and travel within the eu and so forth are all put at sere warehouse risk by this. we had air france as you just reported aircraft flying out of the united states returning to basis in the u.s. because of bomb threats just yesterday so this could be a trigger.

anything that happens people are quick to think wow this could be serious and merkel, do you know any additional information about the soccer game where chancellor merkel was there? and they said that they had to call it off. a couple of the teams were like five minutes from the stadium. >> a viable threat. >> yeah but there were reports that there was an ambulance and that didn't turn out to be true. i don't know if they were saying we had to do it because the threats were serious or whether the threats really were serious. >> do you have any reports on that incident? >> no, but at least with respect to crowds or cancel events, one

can search people with metal detectors and so forth. on an aircraft it's either going to be blown up or probably land and interrupt it's mission because they don't keep good truck track and all the maintenance workers and the like. and the bomb that can bring down a aircraft can be as small as a cell phone. if you drop it in the baggage hole you can blow up an aircraft or at least make it crash and that will have a substantial effect on people's travel and the economy and trade and a lot of things. >> can we go back to what you were just talking about?

the idea that there are potential terrorists with an eu password, a legitimate eu passport, how big of a problem is that? because you're talking about a very different situation than worrying about refugees. >> yes and you have to ask yourself do you have enough information to track people down based on their identities in some passion and one of the things blocking us now from getting the kind of information from the cell phone numbers and e-mail addresses and so forth, not the substance of communications but one of the things that's blocking us from getting the meta data is so-called reforms that that have

taken place and are making it harder to keep track of overall groups. the dcia said yesterday we have to change some of the things we backed off from before and start getting serious about the groups that we're at least keeping track of their cell phone numbers on. >> we have a couple of gop candidates that are answering questions about that. unfortunate timing for them. they want to reign in a lot of the surveillance. the one thing i heard yesterday that really disturbed me was left everyone in the stadium for a reason and the soft targets you harden them up and you put metal detectors so people can't get in the stadium so terrorists are smart enough to phone in a

bomb threat inside of the stadium and set it off outside of the stadium. that's why they didn't have everyone flooding outside of the stadium and didn't want people to get to the stadium yet to exit the stadium. you can't control the person in paris could have, who knows what would have happened. >> exactly. unless and until we defeat isis and i think that has to take place in their fate at home and syria and iraq as well as in paris suburbs and in the neighborhoods of the united states we'll go in an area where you don't go to football games anymore and you can watch it remotely but crowds will not be

something that's very healthy to be part of. >> jim you mentioned how we can't profile based on religion or race. on the program yesterday we were talking about the approach they take in israel and i'm just curious given your experience do you think that we should be? . no, the israelis do this thoroughly and carefully. they have extremely able people screening at airports for example. a couple of years ago when i was at an airport the young woman in front of me said she was a graduate student and the guard said what were you studying and she said art history and he said really, when was he born? that's the guard, okay?

you have a lot of very intelligent people making judgments about whom to take off the aircraft and whom not and they don't have to do it based on religion and race and they shouldn't but they can based on behavior. >> sometimes they're changing profile event the woman that blew herself up with the suicide vest and that's constantly changing. >> all right. we thank you. came back from canada once and wife and kids and the guy said so you're from new york and he said so is that defensive end back playing with the jets again? is he back from that injury and i went i'm a bengal's fan. >> if they ask you any sports questions about new york teams

you're toast. they won't believe you're from the united states. >> we have a little bit of breaking news. we have to go back to paris because michelle has news we have to get to right now. >> hey, andrew. a french prosecutor is speaking with the media at this point and he is refusing to confirm whether he is inside at this point. he has been asked repeatedly. here's what he said so far. he gave a better sequence of how the raid went down this morning. 4:30 in the morning. he said first they arrested three people. then there was the explosion and then they arrested two other people who were hiding but he said it's impossible to give the i.d. on those arrested yet and those that were in the part. he did confirm they were looking for the alleged mastermind in that apartment. and then he wouldn't answer any further questions about whether or not they got him saying only that they don't know the identities of the dead or won't confirm them at least or who has been arrested at this point but confirming, indeed, they were looking for the alleged mastermind.

the belgian born of moroccan descent who they have been describing as the mastermind of the plot for the last few days. as soon as we know more we'll bring it to you. >> michelle, thank you very much. she is where the raids were taking place. she will bring us up to date as we get more information. in the meantime let's check out the market reaction to all of the gee owepolitical uncertainty. allison deans is here from deans advisory and also dennis gartman. they're also cnbc contributors. we have seen how some of the things played out before in the markets. what would you be doing today? >> this is anything other than bullish for the euro. it will put downward pressure on the euro. it has no choice but to do so. what astonished me is the manner in which the stock market responded to it. you can kill 129 people and send stock prices higher has me

absolutely amazed. stunned. but it is clearly detrimental to europe and clearly detrimental to the euro and par is not that far away. >> it's hard to try and really figure out how this is going to play out over time but this is while we have seen things like this in the past this is slightly different. you could be looking at years and even decades. >> when people are willing to kill themselves to fight against us it's much more challenging than in the past and they're going into places that regular civilians are in all the time and it could effect consumer behavior and corporate behavior. it could cause a pull back in spending. >> here in the united states too? or europe. >> in the united states if we keep seeing the stories in news and hearing where people think there's issues they become scared. uncertainty and fear are not very positive for overall spending and for growth and

people taking risks or investing. >> would you change anything about what you expect in the next few months here based on this? >> i thought the market was fairly valued and any growth would be driven by corporate profit growth next year and my concern now is corporate profit growth could slow down a bit. the one saving factor is u.s. economic growth is less vulnerable to the slow down overseas but very vulnerable to consumer spending so i'm more concerned that it could detee your rate next year because it also hurts the u.s. economy. >> if you don't believe that consumers are going to shutdown spending at the margin, you're naive. of course they are. even down in virginia where i live you can sense that people are disconcerted about what happened and listening to director woolsley indicate that an explosive the sides of a cell phone could be slipped into a aircraft.

that's not going to have supportive circumstances and i think at the margin, they're going to shutdown. >> your cynical reaction to the market trading higher sit puts the fed on hold. and people saying no it's not going to be on hold but we have 4.5 beaks to 4.5 weeks to be illustrated in that. is the euro weakening or consumers casting just on economic activity. we have four weeks from that. >> absolutely. >> do you think they raise in december? >> no. >> is that enough reason to bid the market higher. >> if euro trades under par that's a tightening for the united states. >> you don't need to do anything and i think that they have -- they were marginally likely to tighten monetary policy in december to begin with. i think this puts it absolutely on hold. >> but, you know, if they don't tighten i think it might put a bottom in the market but i don't think it should be the market upside at this point. >> the last seven years

shouldn't have given the market upside but it did. that's what these guys do. >> we did have positive corporate profit growth. the issue now -- >> we're doing better than everybody else but sooner or later it would be nice to do well on an absolute basis. >> fair to say though that both of you are at a position you're waiting and seeing what's happening with the market which is what we're seeing in the futures today and yesterday in the markets. >> i'm stunned by the response we had on monday. i couldn't believe what i was watching. that you were able to take the market up 500 dow points from the low to the high. are you kidding me? that's still amazing to me. the proper perspective is go to the sidelines and hunker down and get small. >> if you're a long-term investor stay in equities but if you from profits i'd trim back and sit on the sidelines. it will be very volatile between now and year end without a lot of upward bias. >> thank you for coming out. >> thanks for having us.

>> thanks. >> coming up when we return the latest on this morning's breaking news story out of france. police conducting a predawn raid targeting the masterminds behind the paris attacks. at least seven detained. one suicide bomber dead. check out the european markets at this hour. stay tuned to our continuing coverage right here on squawk box. we're back in a moment. ? it's a great school, but is it the right one for her? is this really any better than the one you got last year? if we consolidate suppliers, what's the savings there? so should we go with the 467 horsepower? ...or is a 423 enough? good question. you ask a lot of good questions... i think we should move you into our new fund. sure... ok. but are you asking enough about how your wealth is managed? wealth management at charles schwab. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities.

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breaking news overnight. if you are just waking up let's

get you up to speed on the situation in france. french police conducting a major operation near paris. seeking suspects in last week's attacks. a government spokesman says that the raid is now over. 7 people have been detained. at least one dead after a woman killed herself after detonating a suicide bomb. this all happened as police stormed that apartment. also happening overnight, two air france flights were diverted after bomb threats. one left los angeles international airport and was forced to land in salt lake city. the other took off from washington's airport and was diverted to halifax. both were bound for paris. both were searched after landing. no explosives were found on either plane. they were the subjects of threats received by phone after takeoff. in related terror news a soccer game between germany and the netherlands was cancelled on security concerns.

police say there was concrete evidence that someone wanted to set off an explosive device in the stadium. meantime last night crowds in london joined with a french national anthem in a mark of solidarity with the victims of the deadly paris attacks. it was a friendly match between england and france. prince william laid a wreath inside the stadium before the game started. >> thank you becky. switching gears this morning, a little bit of deal news this morning. air liquide is buying air gas making it the world's largest supplier of industrial gases and giving the company a dominant position in the u.s. they'll receive 143 dlfrs a share in cash joining us with details is the air liquide chairman and the president and

ceo of air gas. mike, a assume you have to think of this transaction to some degree as vindication of your decision to get out of or to get away from the air products deal only 5 or 6 years ago now. >> well, this is peter's line. it's not mike. but i guess it is vindication. it's really valuation of the hard work and dedication of our employees and our business model and 33 years of really good work. >> appreciate that. and apologies about the mix up on the name. let me ask you this, in terms of the price, though, some investors and analysts will say this is a rich priece. >> it's always seen as a rich price when you have a good business to buy and very few opportunities.

the price is never cheap but i think when i go beyond the price and look at the vision i think we have an excellent and unique platform for the coming years so the price should not be judged on today's conditions but we should look at the opportunities we can do together. if it would do that the price is a good price but justified. >> and walk us through the strategy of what this does though for your business especially for those that don't know what your business does. >> well, our business is all about producing, delivering the beginning air gases meaning oxygen, nitrogen to most of the industrial segments but also to the medical sector so we produce oxygen and nitrogen but we also

produce co2 and hydrogen. so we cover a full range of industries. we have a world company. we have more than 50,000 people. our products are really used for many benefits but if we think about the future, the energy, and change transition will require a lot of new processes using our products, the health care transformation for home and more connected health will require technologies and services that we supply and other industries use our product. and we're nearly in every industrial process. >> peter who i should say also is the executive chairman of air gas, peter, why sell now? >> well, we weren't looking to sell the company.

no one would look to sell a company like air gas but in the course of events we had this unique opportunity to combine with the global leader. this is a great deal for our shareholders but also a really good deal for the air gas associates today and in the years ahead. >> was air liquide in your view able to pay more than a domestic company because of tax consideration? >> i really don't think tax considerations had anything to do with it. i really believe that air liquide wanted to buy air gas for what air gas represents. our culture, our unique platform and the very complimentary -- >> let me ask you, were you able to offer more? because of tax considerations? that's another u.s. company?

ever into foreign hands now. but that's what is happening. >> i don't think taxes would be the driver. taxes always come at the end but as peter just said i think the two businesses really there and we know each other quite well. i would like also to insist on the culture because i think that we have very similar cultures. it's a good mix of entrepreneurship or values around people. long-term. and i think that what peter has done over the past 30 years is really unique. building such a great business in the u.s. we have done the same in our history in europe so the combination to business was really outstanding and this is the main reason. tax is not the main reason. >> hey, before i let you go, given that you're in paris and you did complete this transaction amid this terrible human tragedy, to the extent that you can speak about how that has weighed on business in

paris, the other business men in the industry that you spend time with. >> well, it happened that we had a european round table meeting this weekend so i could share with 50 chairmen or chief executive officers of the european industry. i think that, first of all, we have -- tried to add dretsz our sympathy to all the families because there have been a significant number of families affected. business-wise, i think we still look at the future. i don't think that we are going to be really highly affected in the way we conduct our business. of course we are more vigilant. i think the biggest impact will not be in the business but more in the young people. you have to realize what happened in paris was clearly their places.

that's the restaurants and the places and the concert places where they used to be on friday nights or saturday nights so the mood today in paris among the young is really low. and i think that's -- when you think about the impact of the long-term that's probably the most important thing and of course we have all the debates about how to ensure security in the country but i think that the whole people are behind the government and we try to really be united in such a circumstance. >> we really appreciate you taking the time this morning. congratulations on the transaction. peter thank you. apologies on confusing you with mike and we look forward to talking to you soon. >> that was quite a compliment actually. thank you. >> you nailed the name too. can you say peter's? >> thank you peter. >> let's take a quick look at a few stocks to watch this

morning. lowe's with quarterly profit of 80 cent ace share. sales were up by 4.6%. better than the street was expecting. the stock is up by just over 1% this morning. also semi-conductors being bought for $20 a share in cash. that's about $2.4 billion in total. they closed yesterday at $17.88 a share. you can see fairchild up by over 6.25% and semi-conductor up by .66%. also this news just in, conagrifoods announcing plans to split into two separate public companies. one will deal with the food brands and the other with the food services business. that stock is indicated slightly higher. >> what do you think? that's a major industrial kind of a gem of u.s. companies too. air gas. >> yeah. >> what do you think?

>> it's not an versiinversion. >> you would argue because of the tax issue. >> i don't know if i'd argue that but it's unfortunate. our companies buy companies around the world all the time. they make strategic sense. but the more we do see a lot of -- they're able to buy companies here at a higher price than our own. >> one thing that would dissuade that is the stronger dollar too. unless you're buying in stock. stronger dollar might make it tougher even with taxes making up for it. >> yeah. okay. i don't know. coming up, we will go back to france. police there for live report. police are conducting a predawn raid targeting the suspected mastermind. the guy behind it is i guess, i don't like that term though. gives him too much credit i think, behind the paris attacks. president hollande is speaking now and the latest when squawk box comes right back.

breaking news at this hour. french police conducting a major operation overnight near paris. hadley gamble joins us with the latest. >> good morning. well, france this morning is a country that is at war with terrorists. we know that the massive military and police raid that took place earlier today from about six hours, from about 4:30 a.m. local time here in paris targeting an apartment left at least 7 people arrested two people dead, two of themmer the -- them terrorists. one woman exploded a vest. there were explosions and a lot of gunfire and minor causalities among police as well and the target of this raid was the man

they're calling the mastermind of these attacks we saw in paris on friday. abaaoud. we'll be seeing french lawmakers behind me at the baiting these emergency powers that hollande says he must have in order to take this fight to the terrorists not just across the city but across the country. he needs to curtail the traditional liberties many of the french hold so dear. we're talking about search and seizure and serious implications as well but it's something that lawmakers have been telling me is something they understand has to go in order to keep the country safe. >> thank you very much. that's hadley gamble and we're continuing to monitor the situation on the ground. when we come back today, the terrorist attacks in france sparking renewed fears of global security. lots dealing with the issues of screening including the shipping companies. we'll talk about that and much

more. what he sees in his business right now. first though here's a check of the euro right now. under continued pressure. 1066 is the level of the euro against the dollar right now. stay tuned. squawk box will be right back. proud of you, son. ge! 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.

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>> the busiest time of the year for shipping is upon us and in the wake of the terror attacks in paris one of the questions now is how can the shippers keep the supply chain safe? first is greg hewitt. the new ceo of dhl express. good morning. >> good morning.

>> so this happened this year? happened last month? happened last week? >> the announcement well i guess has become official this week. >> but it's happening today. >> it is happening today. this is my first public appearance in the new role. i actually don't take office i guess until january 4th. what has happened is our ceo for the america's one of dhl's pioneers has announced his retirement. so we have got a strong pipeline of talent from within so our current ceo in the u.s. will move up and become the new ceo of the americas and i have been given the opportunity to move into the u.s.ceo role come january. >> the u.s. ceo of dhl express. is it a deutsche post company? >> it is. >> that's where peter quinn had to go -- >> don't tell. i'm trying to binge them all together. >> part of homeland. yeah. >> they have safe deposit boxes.

>> that's correct. >> it's a tough first day on the job. his first week was september 11th for ge. these are part of the territory i guess, right? >> yeah, i think security for us is integral and part of our business. we have to be in tune to what any countries are doing agross the globe. we have to work closely with authorities and be aware of what's going on in the political climate and when situations like what occurred in paris happened our role is to work closely with the authorities to make sure that we're doing our part to screen all goods coming in or out of a country and to make sure that we continue to facilitate global trade. business has to go on. you're looking this morning at what's happening in the markets. if people couldn't get their deliveries and packages that might have a profound impact on economies around the globe.

>> we've seen amazon gather market cap from other retailers. they seem to be aggregated everybody else's market cap. i figure e-commerce must be big for dhl. is it as big as it is more domestically oriented or dhl as well? >> it's for both of us. there's a lot of focus on the domestic side but from an international side business is booming. we're looking at helping small and mid-sized companies get access to markets they never had before. we're seeing our outbound volumes grow from u.s. companies accessing international markets. big ones. big buyers in say canada and australia tended to a lot of online shopping in goods from the u.s. and americans are buying from china and hong kong. we see big volume flows coming in there. we're growing 30% plus year over year. >> greg, we have seen fedex and ups both raise their rates. their shipping rates took effect earlier this month. fed ex was raising it's fuel

surcharge even though prices are down. they're saying they're doing this because they need to beef up their systems. have you made similar moves? >> we haven't. we do a general price increase usually at the start of the year. increase at the start of the year, we'll announce that shortly. that's meant to align with how our costs are growing. i think one of the things which talked about with fuel is traditionally we looked at fuel from a pump fuel cost. one of the challenges we are all seeing is the inbound e-commerce is stretching us into more rural areas. >> that would be nice for you. it's not going to pass. these guys are clowns him now the republicans and democrats, neither one, some republicans won't back it. the far left democrats, who is on which side? >> we know which side we're on, we're on the side of global trade, so for us, anything that facilitates trade is good news for us, so we support it. >> in this, did you gauys see

this? they made an investment. i know what that is covington, connecticut. >> general liner couple, right. cincinnati airport, though. >> that's right. >> and that is directly a result of the big inbound volume coming in. got to grow there. >> good, i'm glad you are investing down there, a good place, tri-state area. can grandfather. when we return, u.s. investors wake up to more news and security concerns, global marks taking the latest developments in stride. more from our colleagues in europe when "squawk box" returns in just a moment.

>> welcome back to "squawk box," everyone. let's get a check of the overnight raid in france. will ford frost joins us from london. obviously, markets still trying to digest everything that's happening yoemp night. >> absolutely, becky. we are seeing fairly sharp declines in europe today. there is probably some element of reaction to that ongoing nature of the situation in past. but as we touched on yesterday, the contribution of the situation in paris to markets really very small. today's moves, as you can see, declines to about a half to three-quarters of 1%. more, in fact, yesterday was so strong t. border was up 2.4%.

>> that has flown through into today's performance. france down three-quarters of a percent. let's look at stock movers. so it's down. similar to what the france market is down as well. so fought overly affected by those two grounded flights in the u.s. yesterday, although no bombs confirm to have been on board. quickly touch on things as well up 2%. news of potential interest from monsan monsanto. the story has been rumbling on since the summer following comments from the coo who said that more than absolutely everything remains on the table, specifically this issue back on the table. down quickly 6.5% after announcing the takeover, not going down well here in france. guys, i'll sunday it back to you. >> we check french president

hollande is speaking live right now after a pre-dawn raid on the mastermind. we have a live report when "squawk" comes back right after this. .

breaking news, an overnight raid near paris targets high level terror suspects involved in seven attacks. seven arrested. two confirmed dead, including a woman killed herself detonating a suicide bomb as police stormed the apartment. security scares here at home, two flights diverted after bomb threats. both planes have been searched and cleared. and jitters in the global marks. european stocks trading lower. the u.s. futures are pointing to a positive open on wall street.

it is wednesday, november 8th, 2015, "squawk box" begins right now. >>. welcome back to "squawk box" right here on cnbc. i'm andrew joe sorkin and becky quick, joining us is richard le frack. in the meantime, we will talk about the u.s. equities futures ahead of the marks. they do look like they will open higher. nasdaq would open 12 points higher. the s&p 500 up about 5 points despite the news out of europe, which is where we want to go. there is breaking news out of europe, out of france, specifically on storming this paris apartment where the suspected mastermind of last week's gun and bomb rampage was

believed to be holed up, two dead and seven arrested. the raid began before dawn and continued for more than five hours. michelle joins us from the scene this morning. michelle caruso-cabrera. >> reporter: french president hollande is speaking right now. let's give you a chronology of what happened here. 4:30 in the morning, loud bangs, explosions, gunfires heard in this area sontene, an apartment about 300 yards that way, where a long police operation began. we want to play for you some video taken by neighbors who were nearby that will inform you of the loudness and what they endauered for what was several hours. listen to the shooting and the explosions as they occurred roughly around 4:30 this mornin

morning, obviously, a dramatic series of events. here is the chronology according to a french prosecutor who has spoken with the press. special forces raided the apartment. they arrest three individuals. then a bomb explodes. a woman wearing a suicide vest, she dies along with someone else. then two other people arrested at some point nearby in a nearby apartment. then for hours, there were reports, there was a standoff with one individual still in that apartment and it was only a little more than an hour ago that we got confirmation that the raid was over. so eight hours had gone by during that process. final, the final members were seven people arrested, two dead. the question of the moment was

abdelhamid abaaoud in that apartment? that's who they were looking for. they have not confirmed anyone arrested. they are interested in abdelhamid abaaoud, because he has been described as the mastermind that caused the incident on friday night that left 129 people dead. he said in the wave of the attacks. so once again, we are waiting to hear from president francois hollande. several are arrested. two are dead after a dramatic raid that went on for hours and terrified the neighborhood. nbc spoke with one woman across the street in an apartment saying she was incredibly frightened. she sounded panicked. they had been listening for hours that all her neighbors were holed up in the same apartment because they were so frightened. we are in a neighborhood on the northern outskirts of paris, sontene, it is a little more

than 1 kilometer from the stadium where rugby and soccer matches were played. close proximity, a french professor tells us 18% in this neighborhood is from north africa. we are standing at the base of a church as police continue to sweep the neighborhood, looking for individuals. at one point, they broke into the church right behind us. there is hundreds if not thousands of reporters here from all over the world. again, the apartment in question is about 300 yards behind me down the street, where there is a massive police and military presence still at this hour. guys, back to you. >> michelle, thank you for that report this morning. joining us right now on the phone is talk to us is malcolm, nancy is a counter-terrorism expert of the terror asymmetrics project. good morning to you. the question i have at this hour is really about whether there was an intelligence failure, given there seems to be an

identification, at least, we don't know if the meanwhile was killed or taken custody in the raid this morning. clearly now evidence that officials across the globe seem to know who he was and at times were tracking him at one point in athens. his family was aware of him at one point there was a report this morning saying that the sister had hoped hehood been killed in an attack in syria. how do you think about it this morning? >> well, i think we ned to shy away from the intelligence failure. we have been hearing that a lot. you have to understand there is a difference between actually knowing something an not actually having any intelligence or all or having limited intelligence. this is a jigsaw puzzle. it took us eight years to get osama bin laden using all of the resources of the world and this man is from europe. he's operated there before. the videos which were released in syria. we have known about his

activities in syria. obviously, he has come back as a less of a mastermind, more of what we call an operational planner, who comes in and builds teams and deploys them on these missions. so what we need to do is if he's, if he's confirmed dead and that pay be possible, then we've scored a victory. then france has scored a victory. if he is not, then we have to call in all of those resources, the european again and confirm as to where he is. >> malcolm, i think there are still huge questions about whether these attacks were similar to 9/11, in fact, were they planned in the middle east and carried out by people on the grounds in europe or is this a situation where you have sympathetic characters who are on their own plotting these types of attacks? i mean, those are two different times of wars to try and fight. >> right, what you are saying is for example, 9/11 was a direction am attack.

this was an attack planned overseas. they deployed and infiltrated terrorist cells in the united states and carried out their attack. we also get inspirational attacks. you have individuals inspired by the ideology. this appears to be more of a direction am attack. they aper to have command and control that originated in syria. they deployed, obviously, very well trained terrorists. operating as a cell and carried out a suicide mission with absolutely no intention of coming out of it alive. that's why we need to determine very quickly whether abdelhamid abaaoud is actually in, dead or whether he's still on the run him because he may be the emir for the battle commander for europe of isis. at this point that's what i would assess him to be. >> malcolm, the other piece of news we got was two flights headed towards paris were diverted because of phone calls that had been made suggesting there were bombs on board.

those planes were cleared once they landed. that's the good news, selfishly, perhaps, the other question that the folks here, especially in the united states ask this morning is whether you think there is a real risk here at this moment? >> you know, you can never say whether it's a real risk or not. but you know, all i can say is you stand a better chance of being struck by lightning and surviving than you have of being involved or witnessing a terror innocent with your own eyes. 9/11, of course, was a gigantic exception to that. but for the most part, you are safe in air travel. >> that bomb threat was called from within the united states or somewhere in order to get aircraft that were over the united states to land. but they had already gone through the security procedures with an over abundance of caution. they rechecked those plains. if planes. if you were to get the information from the tobacco and fire arms, it would be thousands

and thousands per year. i don't think people should be afrom id to travel. i think the situation now has all the resources 0689d of the world oriented against it. >> all right. this is what, you do it one place and the entire globe is now on edge. >> that's the definition of terrorism. >> exactly, the definition of terrorism. it's a little scary when they say, well, you know, we attacked france because if we can't attack you, the united states, you are number one, they're helping you. and then they say d.c. is next. i mean, that's something that you need to pay attention to, wouldn't you, malcolm? >> sure. but when i speak to people on this subject and for example i'm trained, i have a leg turn a le front of police officers, we have been through mass casualties in the united states. europe has had terrorist attacks greater in magnitude in france,

the subway bombings in madrid. just because the name al qaeda is not being used. isis is the fifth generation of al qaeda, they're just the younger, fastergies that want to get their claims to fame. they're doing the attacks, which we've seerng almost three decades fighting this group. i have been work d.c. mission 26 years. we need to understand eight men do have the capacity to change history. but the tactics were extremely simplistic, using firearms and then home-made explosives, which were done by a bomb master. and that can happen just about anywhere. >> malcolm, break this down to one piece, if you could do whatever you wanted to try to end isis, what would it be? is it impossible? >> it's possible. and everybody loves the kinetic warfare, which is bombs, guns and helicopter rides.

you know, we have been doing that non-stop. i started this mission in 1981 and we struck al qaeda what has become isis over the last decade. they were the people we were fighting in iraqi from 2003 until 2011 when we withdrew. this group helped kill,000 american citizens. so what can i do? what would i do? there is one thing that hasn't been done. we have not gone after their ideology. we have not exposed to the world that this is an apocalyptic islamic cult. they are trying to coerce 1.5 billion muslims. we need them to turn against them. they will cease to exist. that's how terrorist groups die. >> how do you do that? >> quell, right now, you know, it's sort of funny, because i wrote a book about it in 20

12kw50i7b89d al qaeda" it was a complete study of a counter-ideological warfare. we ha we have cedeed this to islam. isis does not speak for islam. actually their actions are unislamic to the.they're anti-he islamic. they view anyone not in al qaeda or isis as the enemy. which means they are more than willing to kill muslims on a mass scale. we see that every day, thousands of people dying in weeks. so what we need to do is we need to help assist the muslim world amplify this message that this is a cult. islam has mechanisms for dealing with cults. it's pretty violent. they've stamped our four cults before by eliminating them. calling their own counterjihad. those mechanisms exist.

in order to stamp them out. we need toe people to worry about their soul. >> that would break the motivation of the terrorists or at least the people supporting these terrorists. and then that gives you the opportunity to kill the rest of them. >> you sort of gave cover to both sides of the debate rate now about whether the president should call it islamic extremism. but the other day there was a piece in the "journal" that said until president obama has an adult conversation about what is actually occurring, we can't get that conversation started in the muslim world about rejecteding the cult, the cult, itself. if you won't admit at ft. hood, if you say that was work place violence, you won't use the words islamic extremism under any circumstances. they won't in the debate. no one will have the discussion about how you stop it. >> but this is beyond islamic extremism. this is islamic cultism. >> that is so rare that the

muslim world will stamp it out, themselves. but the muslim world has to be helped to push that message. >> the president is not doing so bad. >> malcolm, we'd love to have a longer conversation with you. we appreciate your time with you this morning. thank you very much for joining us. >> it's my pleasure to be here. in the meantime, let's get a check on the futures. despite everything you are watching take place around the globe. these concerns around terrorism. you do see markets indicated higher opened once again. s&p up over 5 points t. nasdaq is up close to 15. tell you about a few corporate stories as well. fairchild semi conduct is being bot in a cash deal. it's worth about $20 a share. coning a dpra is spinning off its land west and frozen potato business. it will rename itself conagra- brands, housing brands like chef

boyardee and hunts. lowe has had a quarterly profit. same store sales were up. that's in the forecast as well. a back and forth takeover battle continues. microsemi had raised its offer to buy pnc sierra. they have a deal to be acquired by sky works. two bidders have each raised their original offers multiple times. coming up, the terrorist attacks in france, sparking we renewed fears at home. talk about how to keep individuals and businesses safe. as we head to break, check out the euro. "squawk box" will be right back. become the only thing you think about. .

welcome back. breaking overnight, two air france diverted overnight after bomb threats. one left los angeles international airport and forced to land in salt lake city. one in washington's dulles airport and diverted to nova scotia t. aircraft were searched. no explosives were found on either plane. they were the subject of anonymous threats received by phone after takeoff. paris attacks renewing fears everywhere from sports to stadiums to office complexes.

we are joined by one of the nation's leading developers, the president, i see people say le frack. do you prefer -- >> everybody in new york says le frack. so i can tell where you are from you see major ports elsewhere. >> i do believe. >> i answer to both. >> to give you the size of the le frack empire has 100,000 residential buildings, over 4 million square feet in retail and also for hotels, which we're talking about your new ones at some point hopefully in the hour, richard, but security is something that i mean you got to be -- >> you worry about this every day and you just kind of don't know, you know, what's going to

be vulnerable. obviously, we have seen this last horrible event they called soft targets as being the place and, you know, when you own real estate, basically, everything is a soft target. you don't know who is making a bomb. you hope you know. you really don't know in one of your apartment houses or, you know, as a potential target in one of your office buildings. our hotel is yu the nature of free society that you don't know what to do. so you will add more security, of whatever that means. obviously, nobody is sitting here hiring every counterterrorism expert in the united states to sit in the lobby of a building and vet the people that work in. so you are doing rudd imtary things to protect your property and your tenants. >> for a while, you are under the impression the real estate appreciation in new york city

was from foreigners when the dollar wasn't so strong. >> that slowed down. now you are actually seeing flights to the united states, it's a safer place? >> you know, i think that a part of a great appreciation in real estate everywhere has come from a tidal wave of money from everywhere. and i think people would be irresponsible for today if they did not take a portion of their assets and invest it in u.s. real estate. now, obviously, a lot of the money was invested in, you know, gateway cities, new york being the number 1, you know, three or four gateway cities. you know, i don't see that evading to be honest with you. -- abateing to be honest with you. what's interesting is you are seeing some investment ntt cities that you use, the criticism in nashville and in denvers. they're not gateway cities. they're becoming things that

work for real estate investment from these institutional-type investors. that's a little different you like that? >> you sleep for six hours and then the rest of the time are you in the city? >> i guess that's the way they differentiate some planner came up with that name. but, you know, it's meant to differentiate new york and san franciscos from let's say maybe cities that close between, you know, 12:00 and 6:00 a.m. t. bars close -- >> i think san francisco closes a little bit. not 24 hours. are they? >> would you say they are 20? >> maybe 20, 21 hours. >> the new dow jones index. >> be careful, though. remember when you said denver is not even a city. you said things in the past because have you this new york -- >> i have family in denver.

it's 16 hours. >> 9:00 the restaurants. >> the new york hours. >> we will talk more about. apartment buildings are always great. they have to pay rent every mont. we will talk about that. one of the best in this profitable area. we will take a break and talk about that. >> when we return, we will get another one from france. we will tell you what president hollande is targeting high level terrorist suspects. we are back with that and a lot more in just a moment. .

opportunities aren't always obvious.

coming up with a live report from paris in comments from french president hollande. security at home, keeping people safe in stadiums. woody johnson joins us on set. as we head as to break, take a look at u.s. equities futures.

>> french police conducting a major operation near paris seeking suspects in last week's attacks. our chief correspondent michelle caruso cabrera is in sontene with more. >> reporter: police have allowed us to move closer to the apartment. a massive crowd of journalists and neighbors. there is a line of police. they've cordoned this off. it's only about a half a block that way. the dramatic events that happened overnight occurred. let's give you the chronology. it's 4:20. neighbors start to hear

explosions, gunfire. it goes on 20 minutes. over the next four hours, they say they hear regular gunfire and regular explosions. they're pushing the crowd back here. so we're going to watch out and make sure we don't get pushed over here. we can play you some audio and video of what happened in the early morning and tell you what went down on the 2nd floor on the street in the northern suburb of sontene north of paris on the periphery of the city, if you are familiar with it. 4:30 in the morning the raid begins, explosions, then french prosecutors, the interior minister confirmed they arrested three people, special forces exfill traited three people. then there was an explosion in the apartment. a woman wearing a suicide vest, blew herself up. another man died at that point. then you can hear what the gunshots were like at that point.

there were far more intense moepts an than that. there is hours and hours worth of video about that. we are being pushed back here. we are saying there were seven arrested. two dead, the key question we are waiting to know is whether abdelhamid abaaoud, who is absolutely the subject of this exfiltration process. that's who they were looking for, the alleged mastermind of the attacks here on friday night a. belgian born of moroccan dissent man in his mid-20s. who they think organized the attack. no confirmation if he is one of the dead or one of the arrested. we have no identities on any of those individuals yet. we are waiting to find out. back to you. >> michelle, thank you for that report. i imagine we will be coming back. joining us to talk more about this the medal of honor recipient jack jacobs. ? good morning. >> it's a question i asked literally every guest this morning given they now seem to

at least think they've identified the mastermind, but there is a back story to this meanwhile, which is to say intelligence officers tried to track him to multiple places and, therefore, the question gets raised, was this a failure of intelligence? >> yes, of course it was, several times. not just him. some of the others in his ring, knew who they were and where they were and automatic rest of that stuff and didn't manage to get them. there are a couple problems here. the first is the open borders in europe. this is everybody is going to rethink that. once you step inside europe, wherever you come from you're home fry. you can go from one place to the other without a check. the second thing, the fact that they're pals of ours, we're all after the same guys, intelligence shareing is terrible. it's everybody knows a little bit of something. we haven't done a good job of putting it altogether. there is liable to change now.

among other things we are starting to talk about the russians the bad guys of syria. >> indeed, we might end up being on the side right now. >> when you talk about the structure of europe, culturally, do you think you will actually see a legitimate real change in terms of borders, for example? that would be a huge change? >> it will be. it's not going to happenment it's politically infeasible. i always thought it was insane to have a central, a coordinated europe in the first place to say nothing of unitary currency. that's all going to come to tears in the end. now, it's going tok to be extremely infees ablible. >> is it correct. you said we may be working closely with putin? >> yes, i think so. part of our problems. become the scold of the world. we tell people they need to turn into us.

they need to have republican democracy. we are not going to deal with you unless you are. if you do that, you make the wrong bet. we made the bet every single time. we cheered as mubarak went down. he was a horrible, horrible person. but you know, when you take a look at what happened in libya, i'm reminded. it's worth remembering. i think they were talking to harry truman said simosa in nicaragua. he's an sob harry truman said, yes, he's our sob. in that region of the world, you need blood thirsty checks. >> how many people are there like that that are on the list that have been identified in that way.

>> more than he, more than just him. i don't know what the number is it's greater than one. >> is it a dozen? i sort of dpaj what we're chasing here. >> there are hundreds of people who are like that. he was, i think we will redouble our efforts, taking a look at people we perceive to be minor characters. this guy was a petty thug, what became radicalized. not an idiot. he was able to organize this sort of thing. there are lot of people we haven't focused our attention on petty thugs like abaaoud. we have been focusing on higher level operatives. the whole idea is cut off the head, everything else will die. now i think we will take a look at it differently. it's a fragmented organization. we better start looking at people we know are bad guys to whom we haven't been paying much attention because their petty. this changes everything. >> we will turn our attention

and take that conversation to the presidential race and the impact on the presidential candidates, of course, refocusing their campaigns to address friday's terrorist attacks in paris. veteran jeffrey dobish is here and the columnist for the dait daily beast. how does it reshape to any degree you think it does the race? >> everybody who does what i do thinks day can answer that question. and the answer is it will benefit more experienced candidates. voters will move away from the unfestered. they'll seek security. it is true any type a populous feels threatened, by anything, even crime in the '70s, the political compass tends to swing right. but, everything says the laws may have been suspended. when you look at the most recent poll that says the republican candidate voters most trust to handle terrorism is donald trump the assumptions i would have

brought 72 hours are on hold. the one thing i think you can assert with some degree of certainty is that the candidates will move towards more hard line positions in the security, liberties, scale. a thing like this always moves the scale towards security. you've seen the republican candidates in response to the refugee issue take a stance so strong. governor christie says not even orphans under 5 can come in. what you are hearing is a sense of protect us. that's with one kind of common theme we have seeing reaffirm. but as i say, my jaw has been dropping about donald trump since last july. i think at this point the suspend any certainties how he will further -- >> i think the response, there is a backlash of the current

administration, obviously, and whether there is any blame. i don't know whether you can blame isis or refugees, but, what word would you say when you hearding is kerry say he understand legitimacy to they were justified because they were wrong is that a strange mind seth? >> the most charitable explanation for that particular phrase is you know ham handed, tone deaf, use the cliches. you kind of know what he is getting at, only in the sense that the attacks in paris. >> i know. one is totally random. these people didn't do anything. >> that seems like a fundamental misunderstanding of what terrorists want to do and who they are. the right approach to take to try to crush them. >> well, actually, what i think about this. i'm not going near jack shield.

the one word you better not use is whether you are a candidate is senseless. the isis people knew exactly what they were doing. if they attack in a place like this. the whole idea is to spread fear and the whole idea is to attack restaurants in theaters and football stadiums is to say your way of life, this comfortable way of life, we are going to threaten. i do agree with you. this is the same man who when he ran for president said i voted against the 87 billion. >> and what did the israeli guy say? he's not the sharpest pen sim in the box. i think there may be something do that. that's neither here nor there. but, secretary clinton, you know, help, hurts you, they say she's the most experienced. yet they say they have been a part of the strategy, she was a more hard-liner, now she is running on those issues? >> i don't think she's running left in the policy nearly as

much on the, you know, the identity politics, gay rates, break up the big banks. i keep coming back to this point about the trump standing for this reason. there was the normal response is let's get the big boys, grown-ups. i hear an increasing number of voters say what have the experts done for yourself? you go back to the iraq war decision for. that all those smart people who got us into iraq. all those smart people who said let's embrace arab spring, top him gadhafi. a lot of voters, experts are not only desired but they're affirmatively negative. that's why the governors who are supposed to always be in a food shape in a presidential race are not. >> we continue to say to take care of global warming, it will take care of isis? can you believe that? >> you are talking bernie sanders in particular. you are not talking about

hillary clinton. one of the things that, in fact, got her in trouble in 2008 and still may produce some trouble with the democratic base is she is more hawkish than other democrats are. i think because if there is one thing you can say about hillary clinton, she's finally attuned to the political sentiments. we saw about the tpp as we saw in other stands. you will see the more hard line part of hillary clinton emerge i think. >> okay. we got to thank you. come on back for more conversation. colonel, thank you for your insight, coming up, when we return, jeb bush will be at the citadel to talk about his chance to beef up the military and the owner of the new york jets will join us to discuss the latest in paris and how he is keeping fans safe at metlife stadium in new york. "squawk" returns in just a moment. .

. . . another update from overnight. a soccer game between germany and the netherlands was cancelled on security concerns him local hanover police say there were concrete evidence someone wanted to set off a bomb in the stadium. angela merkel was to attend that

match. no explosives were found after securing the area. jeb bush will address a major form of defense at the citadel. owner of the new york jets, also the national finance chairman for jeb bush's presidential company. a good guy to have, woody, in that we hear that in the past two or three months, that some of the big donors have gotten a little bit, kind of nervous or uncertain, given where the polls are. then jeb will, the candidate bush will say, look, debates aren't where these things happen. it's on the ground in the different states. you can't, this is like the pre game show. the game hasn't started yet. do you believe? >> your ending has started. we're a month mooind behind, where we normally will be t. caucuses and primaries have been moved out a month. this is really october. if you look back a couple years and see what happened in october, who is leading and how

it ended up with winning that. >> we were leading october four years ago. >> i think the donors all week, they're particularly after the debate what he did there, solid b. i think they're all gung ho. >> it's very weird. even as critics, even people who aren't backing him say, well, jeb bush, on terms of policies and issues, he is more qualified probably than anybody else to handle these problems. there is always a but -- >> i don't see the but, maybe you guys see it. >> you need your coach. >> he is fired up. he is a very competitive guy and that's going to start coming out after the reset we can fix it. you will see the conservative

executive experience come to light. particularly with what's happening today and yesterday and the day before in paris, we need an executive in charge, somebody that's done something with his record and what he did in florida. i think that kind of speaks for itself. eight tax cuts, balanced budgets and particularly, you know, the hurricanes i guess is a great analogy for what's going on. taking people woes lives have been devastated, bringing him back, making him feel secure. >> do you think it will be an osmotic effect of the bush name and the problems in the middle east? >> osmotic? i don't hear the bush name. i know that was the elephant in the room to start. i don't hear that much. it's really. i think you listen to your mum. if you are leading the race, of course the polls are good. few are where we are, the polls -- i think that's true, you want to start peaking now.

we have 77 days to go. now is the time to get it going. >> we did see bobby jindal stepping out of the race yesterday. do you expect to see more candidates that have kind of pulled back at this point? >> i would. i think they will. it wasn't unexpected if bobby got out. a number will get out. after you are off the stage what do you do? you can't really raise any money, so it's for not. i mean, what itself the purpose of it then? >> when was the last time you spoke to mitt? >> i spoke to him about ten days ago. >> and? >> he looks great, of course. >> what does he think about it? >> no way. he's not going to commit. i don't think mitt will commit to anybody prior to the nomination. >> will he commit to running it, himself? >> he said. i believe him. i don't think he will do it. >> you can't say you wish you would, but -- >> i'm solidly behind jeb. >> few wish you were elected. >> most of us, if you look at

what's happening in the world today, wish we had somebody that was more of a leader and could deal with issues like we have. i mean, this thing shouldn't have happened this way. >> you are looking at me. the games that you are preparing for now, you don't need to tell us what is going on. is it even more ramped up than it was? i'm sure it was ramped up with security. >> oh the security? oh, we're pretty goods on that. i'm sure we're doing additional things. we're all magged, pocketbooks and purses are clear. >> you can't take in a bag? >> you could take a bag. if it's not clear, you have to leave it outside. >> you kind of get mugged on the way in. >> you do. it's for everybody's safety. >> they look at pretty much everything that's going on. >> they will go through it all. >> you feel better as a fan

knowing that? >> yes, you do. >> i wouldn't try to park. now they could be in a big crowd leaving the stadium. >> the parking lot, that's really the next step. we do a lot and there is a lot, dogs, there are other kind of equipment that the law enforcement puts in as people are coming in just tore for certain things and we're doing everything we can do inside there is a camera that films every person, every second they're in the stadium. so we're good on. that we have a huge law enforcement president. 300 officers. >> bomber vehicles. >> we have armored vehicles. we're set up. >> okay. you know, it's frivolous maybe to talk about the jets. you are here. >> it's not frivolous. i asked you off camera, you wouldn't tell me watching, you know, tom brady take that last

drive against the giants. are you friends with tom? >> i am. >> so you are bad, laughing, happy, sad, where were you? >> i think it was an error of enev itably. a minute-and-a-half to tom brady what was going to happen? he's a maestro at that minute-and-a-half getting into the end zone, getting ready for a special teams effort. >> i got one more touchy question for you. and watching the eagles and sanchez, wow, he's great, he's great! then there it was again. >> yeah, i real lie like mar sanchez. i think he has a lot of talent. those things happen. >> they happen a lot. >> he's a pretty cool guy. i like mark a lot. >> eia. >> and i'm sad to see that happen to mark. >> i don't. >> not to the eagles.

>> i'll concentrate on other things. >> >> you know, for me. >> starting to follow again. i knew. anyway, woody johnson, thank you, good's speed to security and everything else. >> when we come back. richmond fed on the chances of a rate hike in december. "squawk box" will be right back. .

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. >> coming up, we'll be joined by richmond fed president jeff laquer and republican presidential candidate south carolina senator lindsey graham. all that after a quick break. "squawk box" will be right back. (patrick 1) what's it like to be the boss of you? (patrick 2) pretty great. (patrick 1) how about a 10% raise? (patrick 2) how about 20? (patrick 1) how about done? (patrick 2) that's the kind of control i like... ...and that's what they give me at national car rental. i can choose any car in the aisle i want- without having to ask anyone. who better to be the boss of you... (patrick 1)than me. i mean, you...us. (vo) go national. go like a pro.

>> deadly raids in france, two killed, including a person that detonated a suicide bomb. also, reaction here at home. the terrorist attacks in france sparking controversy about syrian refugees, a growing opposition by governors across the nation. republican candidate lindsey graham is here. react to the latest news. investor fears, could global market jitters change the plan? the fed president will layout his case for moving rates higher in december as the final hour of "squawk box" begins right now.

>> . welcome back to "squawk box" here on cnbc. first in business world wide. i'm becky quick and we are less than 90 minutes away from the opening bell on wall street despite all of the concerns about terror, all the activity overnight, you could see the futures are still hanging in. the dow futures up by about 31 points above fair value. s&p futures up over 4. the nasdaq up over 14. take a look at the markets in europe trading this hour. you can see there are some concerns there. the biggest declines of the major averages seal to be coming from france the kak down 18%. the footsie is down fractionally. french police conducting attacks. michelle carrera is in france.

hey, michelle. >> reporter: hi, we're on a balcony on a street about a half a block away from the apartment where the raid occurred this morning. we will zoom in so you can see exactly what happened and what is going on there. we have seen crime investigators go in and out of this apartment. those white vans with blue stripes are police veengs. here's the chronology of what happened. 4:30 in the morning, paris time. neighbors, explosion, gunfire, goes on for about 20 minutes. do we have that video? let me know. we can listen in for a few moments. nbc news spoke with people in the area. they were panicked. they thought there was another attack happening. instead, it was a special forces raid on that particular apartment. they had followed a woman they shot was connected to one of the

attackers. that's how they got to this apartment. the interior minister spoke with people this morning said when the special forces went in, they arrested three individual and a woman wearing a suicide vest, exploded the vest. she and another man died. then they subsequently arrested two another individuals we think in a nearby flat. then for hours, we waited. it became quiet about 7:30 in the morning. there were robert, there was one more individual there roughly noon local time. almost 8 hours later the interior ministry confirms the event is over. slowly and surely they have been letting reporters get closer and closer. seven arrested. two dead the woman wearing the suicide bomb. the other individual in the apartment. what we deep know at this point did they capture abdelhamid abaaoud? that was the target of this operation. he's the alleged mastermind of what occurred here friday night in paris with 129 dead. last known location for the

26-year-old was syria, belgian born but moroccan dissent. guys. when we have confirmation we will bring it to you. >> all right. michelle, thank you. we'll stay tuned. meanwhile, gop presidential candidate senator lindsey graham warning in his words there is a 9-11 coming, if the u.s. doesn't play a ground rule, adding without american boots on the ground in syria and iraq, we're going to get hit here at home. for lindsey frame joins us on set with more even before the events. you were one of the most outspoken about this, senator. >> when you talk to the counterintelligence community. you can see they're getting stronger, not weaker. ty want to hit us more than anybody else. it's a matter of time. you can go in on the ground and get hit here.

it's almost 100% certain. we will get hit at home on the ground in iraq and syria. >> let's say you are president obama and meeting with vladmir and have and he says, please, let's work together on this and hollande, saying the same thing. what do you say? >> basically, we said. under no circumstance would i work with putin and the iranians regarding syria if the price is to fight isil. we cannot stress to people enough, that the worst possible is to allow assad to stay in power and iran to control the mass cuss. that is more destabilizing than isil. if they want to keep us without keeping assad, that's a good deal. >> we've heard again and again, though, until the war in syria comes to an end, you won't be able really get your arms around this, if that has to be -- >> oh, absolutely.

isil is germany. assad is japan. if you don't fix syria, lebanon and jordan are going to fall. few don't fix syria, can you never fix iraq. few don't fix syria, they're going to hit us here at home. it goes back to a ground component versus an air campaign. there are not enough kurds and syrian arabs left to train to destroy isil. here's the goods news, unlike saddam hussein and the taliban, no one ever believed psalm dain hussein would come into jordan or egypt and take over the country. they do believe the region that isil is a different threat. they're ready do fight in a different fashion than they have in the past. we should seize that moment. >> how would we do that? is that something the u.s. leads? is it something the u.s. supports? how do we even -- >> you support. in the past, when when invaded afghanistan, when we went into iraq, large western armies we aregional forces. i would flip it. large regional forces with western forces integrated. 90% them, 10% us because they

have a different reason for this fight. isil is a different threat. >> the kurds are probably not willing to fight outside of their own geographic region. >> they will not unless they're a part of a regional force. they don't have tanks, an air force, neither does isim. this is not fighting the revolutionary guard with tanks. this is a paramilitary committed jihadist army that can be destroyed by professional armies. >> who do we team up with? >> egypt has the center of gravity. turkey would be a player. none are going in unless we put assad on the table. they're not going to fight isil and give syria to iran. >> there have been questions about whether turkey would go along with it if the kurds are a part of this coalition. there is a lot of regional. >> there the a part of the kurdish picks they will not fight with. most kurds are not in that camp. there is a socialist marksist version of the kurds that want to basically overthrow turkey.

a lot of the kurds would be good allies. egypt, jordan, saudi arabia and turkey would be the center of gravity of this war. >> isn't there an element of sunni versus sunni in your mix? in that isn't there some question? and many of the countries you mentioned, those are dominated by sunni. isn't there some question whether they would be fighting them? >> there is in question that everybody in egypt would kill every member of isil if they could. these guys have a goal of establishing their caliphate that's inconsistent with lcc being in charge and the saudi family running saudi arabia. every sunni arab would love to destroy isil tomorrow. >> in the meantime, if you were president, what would you do right now? bombing -- >> i would go to 10,000 in iraq versus 3500. >> in iraq? >> that would give us more capability. trainers at the battalion level, not at headquarters level. american hocks just not fighter

planes. special forces and larger numbers to kill their leadership inside of iraq and people to drop full air control theers to drop bombs on the right people. integrate our forces at the battalion level. >> that would give you a chance for ramadi and mosul and effect the militia controlled by iran, which is the largest ground force in iraq. >> no one would accuse president obama of not wanting to protect the united states. >> i'm not accusing that. >> i know that. what do you attribute the, can you contain -- can you geographically contain isil or isis and not expect that to keep the homeland safe in you contain him geographically? >> absolutely not. >> why is he not doing everything necessary in your view. >> i think he believes his strategy is working. he got 3500. he always does just the minimum. there is an urgency i have that he zvenlt i think an attack is

coming. i think it's imminent if we gone e don't get down on the region and destroy isil. i am intended to pull up the caliphate. i want to fate in raqqa, than paris or new york. >> have you seen an increase of donations and support, people coming your way since the attacks on friday? >> not really. i'm not asking people to give me money, to do anything other than to listen to the grand plan, which is to destroy isil in a smart way. i'm talking about their destruction. you got to hold when you militarily take them down. you got to give breathing space to the syrian miami who have been raped and murdered in large numbers. they have to be a part of the mix. what i would do is let assad know he cannot stayed and let him and the russians and iranians look at a giants arab army with western integration push him out and let the syrians pick the next leader. if the russians stay in syria, it will be a force of arms.

>> and taking refugees? >> timeout until we find a vetting process. i'm not saying never. based on paris, we should have a timeout. here's what i want republicans to know. if you stop the refugee flow. you have not stopped the homeland. most of the attackers were citizens of the country in question. >> you need passports. >> there is no substitute for destroying isil in syria and iraq. refugees do not make us, stopping the flow. >> can hillary clinton come back and say i wantt a no-fly zone? i recommended a safe zone? can she make the case she would have been even though she was secretary of state when all this was happening, can she say it's obama's fault? he wouldn't let me do what i wanted to do? >> i think she can say she gave the president sound solid advice. she can't say i have a plan to deal with isil as it is today. she is taking ground took place off the table. that's a good question.

why done you have her on this show and say what would you do, hillary? ask her. >> it might not be our first choice. >> we have had people on and they say to put serious boots on the ground if large number. >> and it comes from the region. unlike the first gulf war in afghanistan, the region has a different view of this enemy. isil is a threat to their way of life. the taliban and the wildest dreemgs of jordan and egypt. they never thought theal ban or al qaeda would come and take their countries over. they do believe isil wants to make those countries a part of caliphate. they are willing to fight. >> would you put the types of boots on the ground in terms of large numbers? >> you got 40,000. just who up. you need 100,000. there are 40,000 isil fighters at least. you don't want to have an even match. you got to double what they

have. >> they have 250,000 over 20 years. >> i'm a military lawyer. here's what i say, destroy them. create a large regional army, take the land back, repair the damage. but the key to winning against radical islam is to educate a poor young girl. let her have a choice about her children. they offer a glorious death. "squawk box" is the key to winning against radical islam than military action. "squawk box" is about free enterprise systems where people can invest, work harold, make money. the young people in the middle east will not live in dictatorships for our convenience. they are demanding social justice. there is a fight for the heart and soul of islam, between radicals and the vast majority. i will side with the vast majority. >> in terms of putting 10,000 american soldiers in iraq, how long would that take and are we equipped to do that? >> as long as it takes.

whatever it takes, as long as it takes. >> can we do that as a matter of the month? >> sure. absolutely. adpenl, i would turn to my commanders. i know we do not have enough capacity on the ground in iraq to liberate ramadi, mosul we don't have any ground component. so you can't win from there. you need more ground forces. we will have to be a part of that force. the sooner, the better. >> senator graham, thank you. a food discussion. invite hillary on to talk about her airplane. i challenge you. >> come on, these are nice people. >> thank you. >> senator graham, thank you. we will tell you about earnings out from retailer target. the company coming in with earnings that match the street's estimates. a profit of 86 vents e cents a share. revenue is above sentiment. same store sales come in 1.9%. you could see that that stock is reacting positively.

that's a gain of 2.3 percent. remember the other retailers. target looks like it is doing what it has laid out with its financial plans. we will continue to track the stock as well. >> when we return, fed president jeffrey laquer will join us on the set. we will talk about the economy and the recent geopolitical events could change the game plans. stay tuned for "squawk box." we return in just a moment. . . w company...

. one totally focused on . is

my name is griselda zendejas. i love working in the salinas area because i always wanted to do something where i could help people around me. so being a construction supervisor for pg&e gives me the opportunity to give a little bit back to my community. i have three boys. they're what keep me going every day. our friends, families live in the area. and it is important for all of us that we keep our community safe. together, we're building a better california.

. >> welcome back, earn, minutes from the fed's october meeting are due today. the markets are looking for a rate hike next month. is there anything at all that can sway the central bank. jeff laquer our special guest is from the federal reserve of richmond. steve liesman is here as well. president laquer, thank you very much for coming in today. >> my pleasure. >> it's great to have you here. you are someone who has voted in favor of raising rates at the last two meetings. obviously, your thoughts haven't changed on this. has the environment around changed anything in any significant way especially since friday's attack. >> i think it's too early to say, obviously, we will look at the data when we get into the meeting. i always leave the door opened by being sper waded by

colleagues, we have been in situations before in which some disruption of certain geopolitical or military nature affects things and you know for a time iteam with get cautious. these tend to be transitory, pulling back. keeping our fingers crossed and waiting and seeing. >> what you have seen today would not change your mind? >> i'm still where i was in october and november. i think consumer spending growth has been exceptionally strong. we saw that number for the third quarter. it's been 3% over two years now. >> that compares to numbers under 2% we were getting for early in the recovery. so that to my mind is a pretty important factor. in addition you look at that, it's based on improvement in the labor markets, that have been quite substantial. look at inflation performance. yesterday we got cpi over 2% in an annual rate. if you look at the numbers from january to july after the big

fall in oil prices last year, we saw inflation stabilize around 2% pretty rapidly. i'm expecting that to go period. >> is there a rush? >> a rush? >> is this something you think should happen immediately, perhaps the would should assess? >> i think we waited quite a while. i think the lesson from august. i dissented then. yes, there were some potential concerns that you might have for downside risk going to global economic developments. but we've over reacted to those in the past. i didn't see an immediate connection in the fundament also in the united states. i think that assessment has been borne out. >> i would present the case. but i have steve here. >> i am going to et up if that. >> he doesn't know me. say this. >> okay. since there is absolutely no possible harmful effects of

staying at zero and that are actually legitimate concerns and since there is no inflation and free lunches are something we can all have, is that about it? no misallocation of assets, no -- >> i might ask the president of richmond, what are the dangers if you don't go now? and i would also tag on to becky's question, you dissented in august. does that mean you whob on your third rate hike right now? >> september and october. >> all right. does that mean you would be on your second rate hike already? >> i was convinced it was strongest persuaded by my colleagues in april to june that one meeting one way or another didn't make much difference. but there is obviously -- >> is that the same thing saying you think the fed is 60, 105 basis points behind the curve? >> i think there the a chance we will get behind the curve. the dow can change kind of quickly. so in '03 and '04.

we went to the opposite. >> that kind of turned in the outlook. something you need to get on top of. the longer we wait, the more aggressively we have to move. >> you know what i'm trying to get at. not that we are behind the curve on inflation, we get surprised by inflation. but that already there has been asset inflation and there has been investments made that wouldn't have been made if rates weren't at zero for this long. are there negative, actual negative effects to this? do you believe that? a lot of people say stay at zero. there is nothing bad happening. might as well stay there. >> when you say their investments have been made rates are at zero. that's by design. it's designed to provide stimulus. >> you don't want people to be able to -- >> you b you you are bringing mr. le frack in here because -- because one place they're not going crazy is in the real

estate business. they're not building nothing there. >> my colleague and fed president i will say i have close to a billion dollars worth of construction projects that would go ahead in any event whether you raise a quarter of a point or not. because the margins in my business are not based on that, if that's how -- >> if that's the difference then i shouldn't be in business and so, so i'm not thinking about that as a bridge, whether you cross it or not. no if you said to me, hey, we will have ten year at 6%. i would say, wait, that may be damaging. whether you are at a quarter-and-a-half, short-term rates. >> that doesn't change anything for us. it doesn't. >> like manufacturers around this country? >> i think that's more of an issue, clintonr whether or not the dollar will strengthen so much it will discourage foreign investment. >> are there areas you think are

otherwise distorted because of zero policy? places that you not only is it monetary policy maker also as a major supervisors, we should point out that charlotte is in your district. banc of america. what itself the other major bank there? wells fargo. >> wells is in san francisco. but wachovia was. anyway, are there places when you look at the books of the banks you supervisors that are areas that are of concern for you along the line joe is asking about? >> i don't see anything i call a bubble and the people said word is something obviously going to go down real soon. so far, the thing seemed pretty manageable. so, i don't see something that's so out of wham, m na activity. that's like a swap of financial assets. so it's an implication for a real economic activity, spending consumers real capital investment by businesses. >> buy backs.

and the question is? >> and the question is whether you think you have companies that are borrowing money to buy back stock, whether that's a productive use of -- >> instead of long-term capital investment that they're fought doing now? >> no. >> i would argue, by the way, one of the reasons they're not investing is because they don't see on is other side the order book. >> maybe because there is no growth because here at zero. >> to make a physical capital investment. either they do or they don't. they can restructure the balance sheet, take on more debt, use it to pay people back. that's separate from whether they're making a capital investment or not. >> it doesn't cause short termism at all. >> it doesn't seem obvious. >> why raise it then? the economy, consumer spending growth is at 3% suggests the economy needs higher real interest rates. a fundamental building by virtually every model we have is our connection between the rate

of growth of consume were spending and real inflationed a judd interest rates. it's a fundamental building block of every model we have. and higher growth, a real consumption to suggest we have -- >> can't we import all this inflation? that might not be an indicator to use, domestic consumption. the rest of the world is fending off inflation or deflation. >> i'm confident in what we have. >> jeff, what about there the a bill in congress right now that is probably going to be voted on today that will reform the -- does it ka ul for audetary policy as well as urging our, or mandating, that the federal reserve go to a rule for making monetary policy, how do you feel about that? >> it's a sort of a large bill features of the audit provision, something that's spoken out against before. it sets up a mechanism whereby individual congress persons can

ask for an audit and go over all our records and transcripts of the meeting. i've characterized it for high frequency harassment. i don't think it's consistent with the balance we had in our country of insulation and around the world or insulation from short-term political dynamics of the central bank and monetary policy-making. i think that's shown to be good. >> that insulation comes with accountability and for transparency and the responsibility to be open with people. still a little buffer is very important. >> and finally, how do you respond to people who say, look, how do you raise rates when there is tons of slack in the labor market? do you see the slack? >> i don't see slack in the labor market. we are within confidence bounds of every estimate i have ever seen of full employment or maximum employment or the national rate of employment whatever you want to see. we have the non-employment index that takes into account people out in the labor force.

few lo if you look at it that way, it shows there is not much slack left. >> mr. laquer. thank you for being here today. when we come back, a key read on the housing market still ahead. we will head back to france, two now dead, seven arrested targeting attackers. we have a live report when "squawk box" returns in just a moment. . s

. >> rick, what are the numbers? >> the numbers are for october. housing starts down 11%. seasonally and annualized adjusted. that comes from a slightly revised 1.19 million units. it was actually the compact opposite up over a little over 4%. 1.50 revision down to 4.8%. we are splitting hairs there. >> that definitely weak on starlts and if we look at the last time we had a number that come do that, it would be the second weakest read of the year

so that was under a million with regard to the read. on the permit side, the news is brighter. 1.15 million. >> that stacks up nicely, comes to the 1.13 in july. so, of course, there is some improvements on permits. what's in the windshield in the rear view mirror, a little disappointing. few look back to '05 to '07, they were significantly higher. we are hovering around 230. i tried to catch as much as i can. i will get a transscript, of course, i like the issue you were trying to dig in on. that's, of course, malinvestment. whether by design it creates stimulus, bridges to nowhere, like broken windows. >> yeah. that's what i was trying, that's not his thing, though. we talked about it. it's the classic view that inflation, you get behind the curve on inflation. >> you know, joe, you should

tell them if growth is half the pace, why are they surprised the inflation rate is half the pace. i just don't understand it. in terms of that being the boogie man. you look at these lines for inflation and cpi and ppi. if only our portfolios of stock investments was that line, basically a straight line that goes up forever. when it comes down a little bit. everybody shakes. it's unbelievable. listen. i'm glad calculators don't cost $2,000 anymore. >> you haven't argued. you should see the faces he is making right now. rolling his eyes. i don't know what that hand signal means. what is that when you move your hand like that? what does that mean? >> which one, joe? >> i can't do it. i'm afraid to do that on camera. >> look it gets back to an old argument which argues with the data. >> how about the number? you have more?

>> i do have more of the data. when i look at the long-term chart of housing in this country. it's very hard to see malinvestment or over investment. in fact the story when you look at housing in this country has to be one of a fairly massive under investment. guys, there is the chart there. take a look at that one. >> that's the one thing the program was designed to fix. isn't that ironic? >> is true somehow money is so cheap out there we are building so many houses. >> cheap to rich people. not to cheap to the average guy on the street. from the commercial industry, they are building so many apartment buildings or commercial structures that we're overbuilding. none of that is going on. >> they be renters forever. bring me a salam my and a loaf of bread. >> beyond that, i'm not saying there around some problems out there among them high yield debt could be an area. programs there is some problems

that have to do with oil debt is out there, because the price of oil has changedch what's hard to 2350i7bd are these dramatic overinvestments that make you think that somehow the market, let alone the fed dramatically missed money. >> who said that's malinvestment. i never said that. >> it's not there, rick. it's the one place that over a 30-year career, it's where you see it, rick. anybody over invests or malinvests. >> all of these programs were supposed to boost it. the average guy can't get a mother-in-law, ben bernanke couldn't get a mortgage. gee, we did a good job of fixing that. >> what does that tell you about the mon? >> that the market is better than a group pricing capital tore the whole world. it's insanity. >> where is the market pricing money right now, rick? where would you put money? >> i don't know, steve. where do you think it's pricing? what market would you look at exactly? what doesn't have government

intervention, exactly. point it out to me. >> the market versus generally decided. >> right there is a difference between 50 miles, buddy? you ask a question, you don't really want an answer, do you? >> no, because you don't have one. >> basic ally, the idea that somehow the gold standard is the one to price money. >> i never said anything about the gold standard. >> you don't ever say anything, anyway, rick. >> according to allocation of capital. >> so the allocation of capital, the price for money, right, is being priced off a low base. no question about it right now. but the valuation and the appraisal of a project is being done off a completely different number. this gap the an equity gap. people have to put up equity the make up that difference. that's why there is not a misallocation of fund because the money is cheap but it's not

that big. so the rest of the money that has to go into these projects is not that cheap. it's expensive. it's equity capital. >> thank you. i thought i -- >> you are not really being truthful, joe kearney. >> thank you. >> it's been a while. i like that. i think you are two, you both of you guys -- >> it would be nice if people don't egg. >> we have to get back to paris right now two dead, seven arrested. nbc's kel klelly cobiella joins us. >> reporter: french police believe they had the mastermind in this neighborhood. the paris police say they were trailing a woman believed to have terrorist connections. >> that itself what led them

here that along with phone taps and under surveillance that abaaoud may have been saying in a safehouse in one of the apartments in sontene, so they launched the raid in the early morning hours about 4:30. people were sleeping. they came in with stun grenades, gunfire, explosions, helicopters overhead. people still in their homes. a lot of people say they stayed in, hid in their homes. you could hear it all happening for eight full hours as this raid wint on. once it finally came to a conclusion the french prosecutor saying two people had died, one an apparent suicide bomber. a woman blew herself up. another killed by special forces. five others arrested. but at this point we don't yet know if abaaoud was among them t. french prosecutor says he is not ready to say definitively if he was or not.

french president hollande fospo about this terrorist raid and the state of emergency in this country has been extended by three months and to all of the country and its overseas territories. there are reports in french media that there was an imminent attack, another attack being planned. those reports have not been confirmed by nbc news. back to you, guys. >> okay. kelly, thank you. present that. coming up, what u.s. cities states and private companies, what they all do or need to do to keep americans safe. we will talk to a former nypd detectivant these renewed terror threats. first, as you head to break. take a look at u.s. equity futures.

. >> all right. let's get back to our guests. we promised we talk about what you think is one of the best investments, baer none, not just in real estate but apartments. they never, they go in and out. >> maybe it's always a great business. >> i read a very interesting

thing with warren buffet i allegedly said about the market. he said, you know, if you own an apartment building and there is a morgue in pakistan, he's selling apartment buildings. it's an unrelated business. you are running a business. the business is a domestic business that runs off of fundamental also. right now we're in the middle of the fundamental for a bunch of reasons. one is the millennials, our best customer, cohort in our population is now up to 80 million people. so you got a natural demand. they're the people that are getting the jobs now. so that and their first place they generally live is an apartment. then you have a drive towards urbanization, where more and more people want to live in cities. so again that all helps the multi-family business a great deal. that's why that business has been so special, especially in

the last number of years. we're producing about 250,000 new multi-family units a year right now. which is fear kind of a high number but we're absorbing them. i would say the business is still very, very healthy with the offer from the richmond fed, even if the rates were to go up a little bit, it would not damage. >> sam zo is probably pruneing his portfolio, because he's a big believer if urban, this urban idea that people migrate. >> he sold and he sold it at a fair price to barry stern. >> done the opposite then. >> he is a pretty smart, very smart guy as well and i'm sure barry has an agenda for those apartments. i think he probably had money to spendch he probably got them at a decent. >> he can make out on this? >> for both of them, i don't

think either one would be taking advantage of the other. i think they both had ideas that they wanted to pursue that were in it kind of that this was a part of the strategy. >> you think california palo alto is overpriced? at this point in the graham i game in san francisco? >> here's what i say about that market. i have programs in that market. there are a lot of companies out there. we done know how many businesses there are. in other words, a lots of money going into the technology sector. it's speculative. we don't know how many of these things will work out to be uber. or a dot-com bust. there is a tremendous amount of talent out there. the human talent is enormous. somehow, there will be great businesses coming out of that and that san francisco area will benefit. but that phenomena is occurring not only in that area, you now have silicon beach in los

angeles, which is another area. of course, we know what's happening with the technology in the media business in new york. so i wouldn't say that they're the only beneficiary of this amazing drive in technology. >> here in new york, there is a lot of foreign coming into the market too. >> that will continue, especially when we have this terrorist incidents. i mean, you'd have to be an irresponsible manager of money, whether it's a, you know, wealthy family overseas, a national fund, not to say, hey, i want to put some of my money in the united states, a substantial amount of money in the united states and some of it should go on to real estate. >> are you real particular with trump? >> i do. i think they have it from 50 years ago. >> it's embarrassing to me. i had more hair and more vigor. i had more money.

nobody has more money than donald. >> are you backing donald trump for president? >> you know, i want to say this, knowing donald as well as i know him, i think people should not underestimate him or characterize him as not being a highly talented person. he's a highly charismatic person. he has great leadership skills. he does. i think he needs a little work on his policy. i think he's a little impulsive. but on the other hand, we've had some other great leaders in this country that will brash like that. teddy roosevelt, we all idolize him, revere, somebody said, well do i think he's can be tough? well, you know, lyndon johnson created our civil rights legislation by being tough and ruthless. so don't underestimate the guy. you know, none of these candidates don't come without

some flaws. >> on twitter the joke said the latest for when he will bra from the race is after he's inaugurated. >> i said, you know r, people expected him to leave a long time ago. all he is doing is better. >> inauguration day. >> we'll have more from him throughout the program. when we come back, though the global fight against terror and keeping americans safer here at home. 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.

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>> deadly raids in paris overnight. two dead, seven detained. terrorism here at home. joining us on the stock news line is a former nypd detective. thank you for joining former ny detective. we're trying to understand this morning beyond what's taken place in paris is the exposure at home and to the extent that cities here are safe. >> well, let me relate to the incident that happened on friday in paris. the police, they have specialized units, all kinds of training like new york city police do. here they were attacked by several different locations. one three people in a car just going, like, going in a place like that. driving up and down the street shooting into restaurants, shooting people in restaurants. they're all soft targets. there's an event going on in the theater where two gunmen come in, shoot and kill everybody. again, soft targets where they got in easily.

by the stadium, trying to blow up parts of the stadium. could that happen here? are we that much trained in new york? they were that trained. we have to do more, obviously, and so do people over there to see if we can stop something like this. what happened today, they called -- the president called it war. this is war, so they can go in and attack these locations, go right in and go into these apartments and see who is in there. they thought they had this particular person, who masterminded this event inside the apartment. he wasn't there yet. it's a good thing they did. the only good saving grace here is they can get all this evidence and see where all this thing leads to and how we can better protect ourselves throughout the world. >> real quick, gil, if you just look at new york, chicago, l.a., major cities, do you think we are any more prepared than the

team that was there in paris? >> no. i think we're getting now more prepared and more awareness. it's not only the police, it's the community, the awareness we all have to be involved. just letting the police do their work is not enough. are we prepared? there's a lot more we can do. no. look at how much ammunition and how much bombs in this little apartment, this place one mile from the theater. could these -- >> gil, when you say we need to do more what is it exactly that we need to do more of? >> well, i think we have to anticipate. we have, let's say, 50 known terrorists on the watch list that the fbi has. i think we have to be much more aware of where they go. what they do. i'm sure they're doing that. even who is coming into the country. everything, we have to be more vigilant than we were before. >> gil, appreciate your time and perspective. thank you. >> thank you for having me.

let's get down to the new york stock exchange. jim cramer joining us. did target raise their forecast? >> yeah, kind of a squishy raise. i think the problem is that target is up against others that are really just pure home. lowe's, home depot, coming back from the oblivion walmart, or tjx, which has a particular bargain set that is stronger. i think target will do a good conference call talking about consistency. when you have a stock that's up against others that blew things away, you won't get the pop. is it disappointing? it's disappointing versus the other guys who reported the last three days, but not against macy's and nordstrom. >> an unspectacular third quarter should prove out to be just fine, maybe, for target. >> yeah. just a long-term slog to try to get it so it's back to the

growth the way it used to be. the guys who are really winning are the off-mall, hugely dedicated to reconstruction of -- by the way, of remodeling a home that's 35, 40 years old that's had deferred maintenance. >> thank, jim. see you in a couple minutes. check out the futures right now before we go to a break. you will see green arrows, surprising. dow opening up about 8 points higher. and no sharing. just $30 bucks a line. that's 6gb each plus unlimited streaming with binge on. stream netflix, hbo now, hulu, and many more without using data. get 6gb each just $30 bucks a line, plus free video streaming. ditch your data worries with t-mobile.

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we want to thank richard lefrank for all your time today. >> thank you. nice to see you guys. >> and make sure you join us tomorrow. "squawk on the street" coming up right now. good wednesday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber. stocks are cautious but tipping to the upside as we have earnings from target and lowe's. good set of m&a activity. housing starts and more. dow going for its third consecutive gain. europe more tentative as we wait for details on those raids in paris overnight that left two suspects dead. a half