they provide the private sector jobs. you need the taxes from the private sector. >> absolutely. >> how can you be an anti-corporatist? >> to give credit to the other side, you don't want to tie planned parenthood into it either. >> that's true. >> happy thanksgiving. >> right now time for "squawk on the street." good tuesday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. busy morning of retail and consumer earnings. geo politics has the headline today as a russian jet is shot down on the border of syria and turkey. putin already blaming turkey for what he calls a stab in the back. oil and gold rallying. that's a live shot of andrews air force base as francois

hollande is arriving for a meeting with the president. gdp revised up to 2.1. case-shiller is out on your screen. our road map this morning, the latest on the fight against isis including angry remarks from putin after that russian jet was shot down by turkey. and a couple more deals, nothing like yesterday's major deal. but $2.5 billion semiconductor deal and a billion dollar acquisition in the food business. >> shares of tiffany down big. first up, concerns about geopolitics weighing on futures. this russian warplane was shot down by turkish jets along the syria/turkey border. the turkish prime minister said his country had the right to respond when its airspace was violated despite repeated warnings. putin said "this event is beyond the normal framework of fighting against terrorism. of course our military is doing

heroic work against terrorism, but the loss today is a stab in the back, carried out by the accomplices of terrorists. i can't describe it in any other way. in about an hour from now, obama is set to meet with hollande at the white house to discuss plan force defeating isis. putin accusing turkey of aiding isis but taking their oil to some degree. >> turkey -- ancient war against pkk, the group of -- the kurd fighters who have historically been quite tough, have been winning, are no friend of turkey. if you're making an alliance and you're basically saying, okay, pkk coming in from this side, russia from that side, turkey is not happy about that. they're caught up with the best ideas that the best fighters against isis are historically great fighters against turkey. this is really convoluted. i would point out if hollande goes and gets the president to

say we have go against merkel and talk with the russians. which i know what not been the rap right now, i think you'll see a lot of the reasons why the market has been better. if they can welcome russia back somehow, that was the beginning of the end of the rally in europe. it's come back because draghi -- i think our market, by the way, have to be careful that we may not be down as much, because the dollar is getting weaker on this. we have to be very careful in thinking this is necessarily -- this is necessarily bad. because the battle lines are being drawn here. it's not clear -- i think our country is concerned that turkey is not as aggressive as it should be. >> well, there's that. there's the idea that the skies are crowded over there. >> yes. >> we have a department of state warnings to traveler here's through february saying be careful going overseas.

bu belgium on lockdown for the rest of the week at least. >> stance has changed. stance has changed. this is war. that's what the french -- the french declared war. the sign-ups for their army are like what happened after 9/11 in our country. i think the orders for our defense contractors are way up. everybody is arming. i think that the president -- we pulled back. so i don't know what will happen. geez, these other guys are not pulling back. a lot of people in our country feel let russia do the work because so many of our soldiers were lost over there. this is an alliance building. if the russians would give it all on assad, you have a coalition that is of the unwilling, not unlike what we saw in world war ii. churchill was no friend of the communists. >> no, he was not. >> no. >> he was not fond of stalin. >> man with a vision that is

still -- love churchill so much. he was willing to compromise in order to beat the nazis. a lot of people in europe think this is a cult and it can be stopped, but it can't be stopped if you gfive the guys driving te oil trucks a while to get out of the trucks before you bomb the trucks. russia has -- putin claims he was misquoted, and we'll send them where they have to go. but putin, i think a lot of people say he means business. fortunately it's not our guys. let's watch this. i'm saying turkey is not the pal that a lot of people think they are right here. you have to be careful in thinking turkey is one for one with the united states anymore. it's not really clear. >> yes, indeed. well said. >> not clear. >> you have to balance that with tiffany. missing with results for the third quarter citing 4x

pressure. saying volatile and uncertain market conditions in the u.s. are affecting consumer spending. comps on tiffany -- let's see, eps down 5 to 10. prior was down 2 to 3. is this a 4x story. >> i'm sick of tiffany. i went over the last two releases. what is it with these guys? >> i agree. it's the same old story. >> it's incredible what they have been predicting, what they thought they could do versus what they do. i'm not saying anybody has a crystal ball. when they came out and said they could do good numbers in the second half of the year, where did that get that from? this is a company that has to start thinking about what it's doing and the way it offers guidance. their guidance is awful. one of the reasons why i bring this up, they kept their own stock up by giving good guidance. you know how it is. we had a bad quarter but get long us because we see the second half being strong.

we get to the second half of the year, it's terrible. i don't know. honestly, i'm losing faith in tiffany management. >> that said stock is trading near the lows of the last couple of years. doesn't appear to be giving up that much ground this morning. down 3%. we'll see. >> a lot of people thought this would be the upside surprise. the company led you to believe things would get better. after listening to terry lundgren. he talked about the strong dollar. tiffany had good numbers in japan. good numbers in asia. but it's the strong dollar. i'm saying unless you thought the dollar was going to get weaker, there was no reason for them to be bullish. i do not know a single executive, any ceo i can name other than the tiffany's ceo who thought there would be a change here. you talk to these -- >> they all accept the idea of the dollar staying where it is. >> cigna misses by six cents. >> i was surprised by that. they didn't have the christmas

quarter. that's zales, jared, every kiss begins with lower numbers. >> that's pretty good. >> i can't stand those ads. >> "usa today" has a list of retailer force whom the fourth quarter has the lions share of revenues. number one, gamestop. almost 40%. >> i went over that gamestop quarter. i'm a fan. they did exactly the opposite of what tiffany did. they had a november to remember. they had a november that was good, but not part of the quarter. so, they said wait a second. you know what? before you write us off, last few weeks were great. the last few weeks thesis being something that in that business because of releases does matter. look, no one is buying it a bunch of downgrades today. i have to tell you, there is an issue -- a fundamental issue here. the fundamental issue is that the star wars game, you saw it

with ea yesterday, is not getting good reviews. i think people felt star wars was going to be a great game. and it's apparently not. i'm not a gamer. my friends who do game are not rating. from buy to hold, merrill lynch buy to hold. sometimes i wish -- my nephew is a gamer. he'll say, no. no good. it's kind of like -- that one is no good. the gamers know. that game's awful. i don't know how they know. to me "call of duty" you kill a lot of people. grand theft out to you steal a lot of cars. i don't know. the thesis itself eludes me. eludes me. as a parent it particularly eludes me. frankly it's a stinker is what people are saying, star wars. maybe not enough people blowing up. >> maybe not. i don't know. >> does someone get a nobel peace prize in that game? >> not that i'm aware of.

>> they surrender and don't get shot? >> three weeks until the movie opens. disney down a half percent. >> maybe that's an opportunity. disney is -- i don't know. i saw the trailer. >> some of the studio chiefs are trying to manage the expectations with box office arguing that december openings are not -- >> that's smart. that way i can get a ticket. >> you mean every person in the world will to the see the movie? they will eventually. might take a few weeks. >> i think it looks fabulous. this is a soggy open. we had a mixed trade yesterday. europe is weaker. we get the carryover from the pajama traders who trade overnight. there's a german confidence number they don't like. we come to earnings. wow, i get to buy home depot under 130. >> some m&a news, pale ms in

comparison to yesterday, but pmc-sierra agreed to be 5:quiacd by microsemi. and pinnacle foods buying bolder foods that price $975 million. talking about bolder brands consensus ebita of 62 million increasing that by 50% over the next two years through a conversation of synergies. partially offset by the impact of portfolio optization that pinnacle plans to undertake. >> they were without a ceo since june. >> down a little bit. >> hollis sold the company. jim lehman left for more time with the family kind of thing. >> health and wellness. >> gluten free. herb greenberg always had some critical comments about these

guys. i'm sure he will be on the two, three, four. bit of a joke. on the two, probably. i think pinnacle is trying to get more natural and -- herb, i'm joking. they have the birds eye division. if my mom were alive, she would say it's natural organic because it comes really frozen, as opposed to green giant which comes in a package that's frozen. bird's eye making it more organic. you know what i mean. >> i don't actually. i -- >> there's french president francois hollande getting off the airport at andrews on his way to the white house. we expect that joint press conference around 11:30 a.m. eastern time as he tries to build the coalition of the unwilling in advance of his trip to moscow. >> this is historical, but merkel. merkel has said nothing. i think our president will never

contradict merkel. never. they are -- that's incredible. that's the german/american allianc alliance. >> keep an eye on that. >> when we come back, we'll stay on top of the developments surrounding turkey's downing of the russian jet. icahn and ackman raising their stakes. let me look at the premarket as we continue to waffle between positive and negative. s&p futures down more than 12. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most.

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two of the largest activists staying active. carl icahn discloses a 7.1% stake in xerox. calling xerox undervalued saying he may seek seats on its board of directors. as well, pershing square's bill ackman increases his firm's stake in valeant to 9.9%. that's right. roughly 10% of valeant owned by pershing. may answer some of our questions as to why valeant was moving up in recent days.

mr. ackman may have been behind some buying. a brave statement from him given the fact that the special committee, which is investigating the use of specialty pharmacies has not come back with its recommendation. one would have to anticipate he might want a board see the. at the same time when you seek a board see the you lock yourself up in the ability to sell shares. he's at 9.9. is he willing to stay in there for quite some time? that's the question i don't have an answer to. >> didn't he say he wished to buy more but he couldn't -- there was a convoluted -- i would love to buy more. he did buy more. >> prices still higher than here. >> maybe he got that big margin call. he was on the other side of the big margin call from goldman. >> i don't know. you mean on pearson having to sell some of his stock after being used for collateral for debt. >> you don't get this margin call stuff from the ceo, but you get the call that there's a big

distressed piece, do you want to buy it? that turned out to be a fabulous price when pearson had to do late fund-raising. >> yeah. one wonders how he can be in position to better analyze what's going on in the company than others, particularly as it deals with specialty pharmacy impact, what they're no longer dealing with philidor at valeant or shuttered that. we'll see. does he want the company to get sold? will he support mr. pearson? will there be a change in ceo at some point? you have to consider all of those things. i'm not sure who would buy valeant? >> do you think the cash flow is real? if it is, 70s is cheap stock. >> that's a good question. >> there is cash flow. >> there is cash flow, without a doubt. you're right. trading at a low multiple to that cash flow now. >> a lot of guys i know bought

it in the 70s. they said we don't care if the pharmacies go away. this company has real assets, real business. took a lot of bravery to get in there and buy it at the 70s. >> i don't know who would be buying valeant overall, if another company bought it, their tax rate -- they wouldn't benefit from it. it would be the other way around. >> right. >> tax rate is so low. unless they use it as inversion. >> look, it's near the end of the year. a lot would like the stock higher than lower. that's a tall order to keep the stock up. you know what? maybe valeant has a discovery. did you ever think of that? >> i can't imagine that's the case. when they spend as little on r & d. >> the no wrinkle thing, maybe something cooking there, coming under botox, botox raised the price. >> i don't know. icahn has been busy.

comes yesterday on aig, writes the letter in the morning and xerox later in the day. wondering where he's been. there he is. >> got to get your beauty rest. >> some of us were watching the pats/bills, not him. he was fire ag wing away a lettt we haven't seen yet. >> turned the game off with 50 seconds left, penned the letter to someone. >> xerox responds, just noting his ownership stakes saying they're aware of carl icahn's maiden investment in the company. xerox values constructive dialogue. its board authorized a review of its business portfolio and capital allocation with the goal of enhancing shareholder value. they said they are committed to improving performance. >> they had a horrible conference call. i say that because they said they had one. they were very -- they were very downbeat. they lost the cfo. they do these healthcare

insurance exchange businesses which we know hasn't been that strong. to try to get people into that business is a failure. cash flow declined, 595 million to 270 million. they bought back shares, 10% of the company. i look at the company, the company is saying, listen, i read it. it was a call for help. people are like he's bumped out -- no, it was a call for help. call for help. this conference call was a cry for help. >> maybe carl icahn heard it. >> yes. we don't know. we've been bad. we'll get better. for some that looked to icahn, he read the call, it's a cry. >> like a dog, he can hear at a certain frequency for icahn. >> 911 for him. read the call. the call was like, okay, all right. that didn't work. uh -- cfo left -- well, you know

what? that's when icahn comes. >> yes. >> he's like mr. wolf. >> yes. >> he's mr. wolf. >> it's a ten-minute drive, i'll be there in nine. we'll get cramer's mad dash and count down to the opening bell. we haven't gotten to the gdp figures. >> mr. wolf. >> more "squawk on the street" from post nine in a minute. ♪ the lexus december to remember sales event is here. lease the 2015 gs350 with complimentary navigation system for these terms. see your lexus dealer.

all right. a mad dash for this tuesday. we have some fun during the breaks here. we have about 5 1/2 minutes before the opening bell. >> palo alto.

this group, a hot group. it's been a mess. mark mclaughlin came out and basically said it's a mess because the other guys don't know what they're doing. >> i don't understand. they mean other people? >> the other guys have screwed up because he has the platform. he's got the customers. he's got the people who understand you can't just bolt on different threat preventions. you have to do it holistically. he's a fabulous guy. had him on many times. he does, just so you know, david -- i will point this out -- he takes it to cisco. travel trust names. says to chuck robbins, the ceo, we continue to beat cisco handed ly quarter after quarter as we have done this quarter. fighting words, david! they'll get mr. robbins to say, is that true? this is a beatdown! he's saying, listen, cisco, not even a factor.

n.a.f., not a factor. j.a.g., just another guy, as they would say on espn. j.a.g. calling cisco a j.a.g. just another guy. what do you think of that? >> that's fascinating. i like when there's tension. >> you do? good. >> controversy is good. >> yes! palo alto. it was a beautiful quarter. david, 61% year over year billings. 71% growth in deferred revenue. they have earnings from here to the sky! david hack is back! >> hack is back and we're back after this.

you're watching cnbc's "squawk on the street" live from the financial capital of the world. opening bell in about 30 seconds. a busy morning, especially for geopolitical concerns, that russian jet shot down near the border of turkey and syria. futures have been lower this

morning. let's get the opening bell and a look at the s&p at the bottom of the screen. at the big board, it's scripps network ceo, ken lowe and austin brown. over at the nasdaq, fuling global, a distributor of environmentally plastic serviceware. we have not done dollar tree or campbell. >> dollar tree goes down two bucks. they had an earnings miss, but i don't want to give up on dollar tree. campbells, you know the 3g guys, they want to do zero based budgeting, and find out where the unallocated corporate assets are, they're clamping down on it? campbells is its own internal activist. when you read the note, they mean business. this is not the old campbells this is a new campbell's.

denise morrison, doing such a good job. we have more work ahead to improve our growth trajectory and talks about revised fiscal guidance. cost-saving initiative, no tnp! tnp! >> tnp? >> tnp! >> what does that mean? >> take no prisoners! >> right. >> killing us over here. >> nfp, no free passes? >> nfp. >> and j.a.g. -- >> just another guy. adam schefter sold me that. that guy is a j.a.g. i picked up some people for s t fanta fantasy. i like how bold house farms remains good. my wife's using that.

she's watching cat videos. >> never listening. >> she's in that cute cats thing. >> you use that line that companies like, we're our own activists. i don't know how much to believe it or not, but in this case you're a believer? >> petridge arm products did well, and goldfish doing well. she did not use the word internal activist. i am. >> okay. this whole thing does not mention anything about allergan or valeant. >> family still controls in various ways. >> yes. but, look, these guys have prego. v8 fusion beverages. i'm a v8 guy. i start my bloody's from scratch. i'm not a mr. t. are you a mr. t. guy? >> no. >> you like clamato? >> no. what? >> don't you do anything?

>> no. actually i don't. >> you don't shop? you don't cook. you don't watchdog vid dog vide. >> no. do you play video games with your kids? >> no. >> do you read? >> i do. >> do you watch npr? >> i sit and think. >> what does he do? it's what americans do it's called what americans do. we have an agenda. >> what is that agenda? >> go to nordstrom, play video games, cook, go to netflix, watch "narcos." this is what americans do! you go on amazon, do prime. >> i swear i am an american. >> do you do any of these things? >> some. i ordered some stuff on prime. >> i'm a russian spy? >> the things you're offering me tell me that you're not one of us. or maybe it's that invasion of the body snatchers. >> can't we all come together in this country. can't we all just come together? do we have to divide ourselves? >> no. i was --

>> in between the thinkers and non-thinkers? >> i am suggesting things that americans do. by the way, there's a holiday on thursday, lyincoln came up with it. >> i'm in favor of that holiday. >> we haven't touched on oil yet. >> thank you, carl. >> have we taken a turn here where -- >> it is very, very interesting to see oil fighting and everyone thought it would break again on 40. this is geopolitical tension coming up. exxon and chevron have been stand-outs here. it's just incredible how much people want to be in those two stocks. i've got to tell you, i think there is a -- if this is really -- if they can hold 40, exxon is a buy. >> really? >> yeah. >> it was some call last week that exxon is less leveraged as a company to oil. >> it's a bank. i've been critical of exxon, but they had this rainy day attitude. now they think they could, if

they wanted to they could let everybody go and come in and buy. >> really? >> that's why anadarko, did you see that call volume? >> yeah. there was a block posting somewhere. >> carl english did one on the street. >> total. i mention it, because it did move the stock. anadarko comes up when people talk consolidation. they did that weird move on apache. people were like what is that about? >> they thought it was defensive move. cigna coming back. >> all the usual suspects on the inverse, royal caribbean, delta, carnival getting hit hard. >> getting tired of it. just this high frequency of traders. i think traders don't eat spam, they eat applegate farms. look at hormel. once again, hormel delivering an amazing quarter. this company is such a great dividend payer. they keep buying companies. applegate farms and spam. who would have thought?

that is a fire and straw coalition. >> when you say expedia and priceline down 2 1/2, do you think travel takes a substantive turn? >> travel comes back. travel always comes back. we know it even after horrible tragedies. i think expedia in a couple days will be higher. i think it's a remarkable company. they do a lot of good stuff. i'm not giving up on them. >> activism -- active in the last 24 hours. aa yesterday with elliott had a nice move up. up again today. >> you had great reporting yesterday on that. everyone else was behind you. they had to make up things. it's great that you stuck to the facts. >> i learn from you. stay within the four walls. >> 2016, i think they pass a law no more facts. >> we mentioned zero earlier, up 1% on news that mr. icahn owns a little over 7% of that company.

east in that fight with aig. we'll see if that goes anywhere. threatening that consensus solicitation to go after one board see the, potentially mr. hancock's, the ceo. they make the case it is not -- it is not a good idea to break up the company. paulson also in there arguing for same in terms of breaking it apart. so, shrink to grow for aig is what some activists say. we'll see if that advances. >> they've done a lot of work on it. i question it. i felt hancock has done a decent job. >> yeah. >> sometimes it doesn't matter. >> valeant is down a little bit. >> really? >> yeah. >> on the news of mr. ackman's stake. >> someone else buying. >> i don't know. 86. it has moved up dramatically from the lows of 70 bucks a week ago. >> if you notice, the

semiconductors deeply -- nxpi, okay? doing some shrink to grow here. >> yeah. apple's making a small move. >> yes. let's watch skyworks. as david mentioned, they didn't get the pmc. the stock is going up. they announced a buyback. this company has been down as if it's done. it's done. they are such a smart company. let's watch them. >> we'll keep an eye on apple, suddenly joining the growing list of dow components in the green. >> wow. >> "journal" has a take on yahoo! arguing that -- we already know that executives are leaving. the turnaround is lagging. not breaking news but repeating what others have reported. >> i remember when i was at the l.a. herald examiner, i said i have nothing to write. dh probably probing some rackets. >> write another yahoo! in turmoil story.

>> a thousand words on yahoo! >> put the one from six months in there. add a couple new quotes. >> run the picture. >> got to run the pictures. with all that, dow down 66. there's a few in the green, largely led by energy. mary thompson on the floor for us. good morning. >> hey there, carl. stocks are down in early trade. off the lows of the session. dow was down about 90 points. as concerns about global uncertainty weighs on the markets in what typically is a strong week for the markets. again yesterday we got off to a week start. today we continue that in the wake of that russian plane being shot down by turkey. we'll wait to see if there are more comments from either side and waiting comments from france's president late their morning what we're seeing again is weakness in the markets. vix getting a bit of a bid as well as treasuries this morning. look at some of the travel stocks. in addition to that, the state department issued a travel warning to u.s. citizens across

the world saying because of an increased risk of terrorist attacks, they should be on alert. as result, we're seeing weakness in cruise lines and airlines. transportation index down about 63 points now. as you guys were mentioning, energy getting a bid, despite expectations when opec meets on december 4th that the cartel will maintain production at current levels. still oil above just about $43 a barrel now. that's giving a lift to the n complex, even as natural gas is lower. early movers are the miners which sold off hard yesterday. they are rebounding in early trade as well as energy stocks, which is a leading sector in early trading today. as we head into the holiday shopping season, we're keeping watch on the jewelers. signet retailers came out with weaker than expected results, also offered a weaker outlet, so did tiffany.

signet has more of the moderately priced chains, down about 4.5%. jim was mentioning semiconductors earlier. this is a group where we have seen consolidation, the latest pmc-sierra. the index is down about 4% this year. nevertheless in the last three months up 16%. today extending those recent gains. we want to end with some food companies which came out with strong results. they were mentioning -- you guys were mentioning campbell soup earlier. hormel foods coming in with better than expected earnings as revenues were better than expected. cracker barrel coming out with an 11% beat, but the numbers weren't there. and j.m. smucker under pressure because of a secondary offering. the dow down about 60 points of the lows of the session. right now a little bit of weakness on wall street. carl, back to you. >> thank you very much.

we did get gdp numbers this morning. let's get to rick santelli at the cme in chicago. >> it's all about context. many were nervous that the 1.5 wouldn't get a two handle but it did for our second look at gdp as carl referenced. that same 2.1 we ended up in the fourth quarter last year wasn't as optimistic. it's all about the rate of change and stability. but in the end 2% handle isn't exciting, but it may be just enough. if you look at intraday of two-year note yields, they moved up a bit after the 8:30 release. if you open the chart up to may, that's 2010, we're still i doing with these new high yield closes for the short maturity most closely associated with the fed may or may not do mid-december. if we want to look at flattening

of the yield curve, let's look at tens to twos. this is the flattest it's been since about february 5th of early -- i don't know, 2015. really is quite amazing. here's where you want to pay the most attention to. look at the long end. intraday chart of tens, if you put it at a two-day, it gives better context. that flattening i referenced, most of it is already out of the market. the long end has come back because gdp wasn't as bad and people are having second thoughts exactly about the type of inventory situation we are dealing with going into the end of this year and early next year. if we open the chart up to early november, this says it all. what changed the complexion and put the ceiling on rates was the strong labor report on the 6th of november. dollar index for two days, look at it closely. we touched 100. we certainly didn't settle above it. last time we settled above it was march of this year. the last time we settled above it more than two days in a row

was 2002. david, back to you. >> thank you very much, rick santelli. stay tuned for the megamerger. i'm talking about pfizer's acquisition of allergan, though it is structured as allergan actually buying pfizer. but really, it's pfizer buying allergan. 11.3 shares. not a great performance out of the gate. perhaps the companies did not get the opportunity they were hoping for to explain beyond the simple fact of having access to overseas cash, perhaps lower tax rate as to why it is beneficial for both sets of shareholders. that may have contributed to a less than stellar opening performance. today pfizer is up 7 cents, allergan up 33 cents. the spread is still fairly significant that comes to 3.55 or so on the share price. talking 3.02 now on allergan. a lot of the presidential candidates have weighed in. we're going to hear more in terms of jawboning about pfizer no longer being a u.s. taxpayer

when and if the deal closes in nine months from now. there doesn't seem to be a great deal of threat to it when you really get down to what can or cannot happen. that said, the merger agreement, they have a $3 billion break up fee. it's $400 million for either side to get out. should allergan be deemed a u.s. taxpayer that seems highly unlikely. but there's one thing that people will be focused on. the allergan activist deal, when they issued the shares to activists, if that's deemed -- that potential deal is deemed to be excluded from the pro forma ownership calculation that determines the ownership overall calculations for the deal, then it could come back. that's one area that people are focused on. again, unlikely. unlikely. highly unlikely, jim. >> yeah. >> comes back more to the conversation about fundamentals here. perhaps they didn't make the case on the allergan side as to why this is beneficial.

some people talking about internationally now you will be able to distribute botox and the o franchises around the world. and then the idea of splitting the company into two, into what is more innovative franchises, including oncology and vaccines. people thought that was coming. now it's not coming until 2018 or 2019. perhaps further down the road than some had wanted. >> i know david piatt would argue that botox is big in brazil already. brazil has been fabulous for that. maybe they don't necessarily -- not underselling around the world, but look. people don't understand that allergan has a great pipeline. one of the reasons why i liked allergan so much is you may think it can't raise prices, this or that. but they had many things in the

pipe. which made me think they could get to that aspirational 20 bucks in 2017 which is why i found the deal so problematic with in the first place. people say it's brent saunders, he can't raise prices, he gave up. you can raise prices for botox. that's an elective drug. >> that's why i put those four stocks up. >> you put those up. >> i asked for them. katie spencer made it happen. >> i love that, she left my show for you. >> it's been a while, get over it. >> no. >> oh, man. >> go on. >> i will. the reason i put them up, they're still u.s. taxpayers. it's a small group now of these global pharmaceutical companies based in the united states, or i should say u.s. taxpayers. and the ability of those companies to compete for assets here in the u.s., they're not going to be able to compete against a pfizer any longer. they generate a good deal of -- many of them -- the majority of cash flow is overseas, but they

have huge domestic dividend calls here in the states. and it -- it limits the debt capacity. j & j has great debt capacity. triple a. >> triple a balance sheet. >> otherwise it limits debt capaci capacity. pfizer could have done a $20 million deal as far as debt capacity, ones it gets this done, it will have more debt capacity than any other pharmaceutical company out there. it has access to overseas cash and changes the profile of the company. >> then it shouldn't be as hated as it is. >> that's what david reid says, i can't understand why it's not applauded. >> there's a lack of understanding in terms of the full benefits and/or the negatives of these deals. it's easy to say they're leaving, they're unpatriotic. >> a story poorly told. the story wasn't told well. >> that said, we probably do need corporate tax reform. who knows where the next one is coming from. >> st. jude med comes up against

medtronic. not even fair. eli lilly, fine indiana company, retold you it would go higher, headquartered in indiana. they pay taxes everywhere. not fair. not fair. in washington, what do they focus on? not this. >> yeah. >> they claim to be focused on it. when we come back, the business of thanksgiving and luring the crowd that doesn't want to cook. we'll talk to the ceo of boston market gearing up for the busiest day of the year. dow trying to come off the lows here. ho, ho, hello... can you help santa with a new data plan? sure thing... uh right now you can get 15 gigs of data for the price of 10. that's five extra gigs for the same price. looks like someone just made it to the top of the nice list. in that case, i want a new bicycle, a bike helmet,

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call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. live shot of the white house where we're awaiting french president francois hollande as he wants to up assistance against isis in syria. we'll get to stop trading with jim in a moment. so what's your news? i got a job! i'll be programming at ge.

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. time for cramer and stop trading. >> the best way to predict where apple will go is watch avago, xpi and skyworks solutions. those stocks are screaming.

someone knows something. it's not just apple pay coming to china, but apple is coming back. you would be surprised to see good news is coming out. those are the chief suppliers. people thought the supply chain was filled. i think apple goes higher. >> i like what you said the other day, it's better than calling five guys and saying what are you hearing? >> my asian team is saying apple is going higher. my asian team is tim cook's asian team. doing well. apple pay powerful. don't overlook the fact that square is not to be -- square is a commodity. other guys are gunning for it. starbucks, too. they are doing well. >> what's on "mad" tonight. >> holiday time, so we have hane, talking about natural organ organic turkeys. >> irwin simon.

>> it's a tradition. i calls get the second joint. that's my favorite part. pre-thanksgiving, thanksgiving. the wife is making thanksgiving this year. what a treat. >> what time should we be over. >> you ought to come over before the eagle beatdown. >> thanks, jim. we'll see you later tonight at 6:00 p.m. eastern time. when we come back, breaking news on consumer confidence and we'll keep our eye on the white house as the president gets ready to meet with hollande.

good tuesday morning. welcome back to "squawk on the street," i'm carl quintanilla with sara eisen, simon hobbs, and david faber. geopolitics the name of the game. hollande meets with the president. a russian jet shot down on the turkey/syria border. emergency nato meetings. crude not surprisingly up almost 3.5%. rick santelli with some reads on consumer confidence. >> not necessarily a good one. this is our 11th read, november

read for consumer confidence it marks the lowest read of the year. 90.4. we were looking for 99.4. 90.4 comp backs to the last time we were under 90, 89 and change from september of last year. so, this is not a good read. last month did get a revision to where we hope this month would be to 99.1. now, i don't normally cover richmond fed aggressively. a lot of the regionals. some people pay attention. some don't. this is interesting. minus 3, which means it's the third negative in a row. it happens. but it doesn't happen often according to my research. last time we had three minuses in a row was mid 2012 for the richmond fed. definitely a couple misses here. we want to watch how stocks and everything behaves. are these date to points enough to make us have summer

tightening? probably not. stocks have certainly cut their losses. simon, back to you. president obama and the french president, francois hollande, are about to meet. you are looking at a live shot of the white house. the french president has landed in d.c. we're awaiting his arrival at the government buildings themselves. our own john harwood is there with the latest. clearly, john, the tension is mounting with the shooting down of this russian fighter by nato member turkey this morning. if anything, that may play into the hands of the white house who will argue that they may go wobbly over russia and sanctions with ukraine. >> vladimir putin described the shootdown of that plane as a stab in the back from turkish forces. you have president hollande who we're waiting for, he landed earlier at andrews air force

base. want to see what he specifically is going to ask of president obama and whether we see an adjustment from president obama in return. the president said in his news conference last week that attracted criticism, that his approach was the right one. he wasn't fundamentally going to change it. though there would be an intensification of it. the united states has been assisting the french with their air strikes. the combination of this shootdown of the plane and the violence in mali, which followed the violence in paris, just underscores the global nature of the threat, how complicated dealing with the threat is rush, to some degree is an ally against isis. but vladimir putin is also trying to sustain bashar al assad in power in syria, which the united states says is a pre-condition for solving the syrian civil war and dealing with isis. a lot of variables on the table. we will hear from the two leaders around 11:30. they scheduled a news

conference. we'll get a better sense of what came out of the meeting rather than -- or in addition to just the united states reiterating that as the white house press secretary said yet that the united states has france's back. >> thank you very much, john harwood. as if that weren't enough, a heightened terror alert issued for domestic law enforcement agencies across the country. now this global travel warning from the state department. hampton pearson has those details. >> reporter: good morning. that's right. frankly we are now dealing with two warnings about possible terror attacks. one from top u.s. counterterroism officials to local law enforcement around the country aimed at preventing attacks at home and from the state department alerting american travelers worldwide to be especially careful. first, on the domestic front, a new bulletin issued by the fbi, homeland security department and the national counter terrorism center warning that extremists

could seek to replicate the effects of the paris attacks using similar weapons and tactics, though on a smaller scale. it was sent out to 18,000 agencies across the country. the document asked them to be on the lookout for suspicious people conducting surveillance of soft targets in the u.s. then there's the second bulletin from the state department warning travelers, saying among other things that militants with the islamic state, isil, al qaeda, boca haram and others plan terrorist attacks in multiple regions. and we should be aware of surroundings, avoid large crowds and crowded areas, exercise particular caution during the holiday season at holiday festivals and events. homeland officials are saying there's no evidence of an attack here in the u.s., but officials offer no such assurances for

what might happen overseas now that isis has shown it can attack in the heart of europe. back to you guys. >> hampton, thank you. let's discuss what happens next in all of this now. we wanted to welcome the former homeland security assistant secretary for infrastructure protection, bob leskowsky, now president of implant science which makes explosive detection equipment. welcome back. >> thank you. >> talk to us about this heightened worldwide travel alert and travel warning for the u.s. on the busiest u.s. travel week. what's the significance of it? >> well, it is significant. historically this is not an uncommon reaction to events worldwide. this time of year we have people traveling abroad and obviously things going on here in the united states that attract large crowds. it's not uncommon that we have that. it's not coincidental either. the threats abroad and

heightened by what's going on in mali and elsewhere represent an increase in terrorist activity that the state department has to take and exercise caution for u.s. travelers. it's a prudent thing to do. we have to get the message out to people that things are unstable around the world in many places and these attacks could occur without warning. >> let's talk about the recent instability, the downing of the russian fighter jet. putin calling it a stab in the back. how does this affect turkey, a nato member, and russia. how does that change the conversation between president obama and president hollande at the white house today? >> this is a complicated issue. french president hollande is coming over here to seek, i would think, seeking the u.s. help in battling isis, looking for stronger support as they're moving out and attacking isis in their strongholds. i would imagine they'll be asking for u.s. support in that effort. and it's complicated because, of

course, the russians play a precarious position because they're supporting assad and potentially being our allies in supporting attacking isis. the united states, france and russia have become more tense it will cloud how we'll get to the ultimate goal for which i think the united states needs to be taking a stronger position for. >> just elaborate on that what does hollande need from obama? is there any signal he will get it? obama has not indicated he is changing his strategy on syria. he told everyone last week it's working. >> it does seem that way. the speech he gave last week doesn't indicate at all that he is changing his position. i think president hollande is looking for support in their operations. the french have the capacity to conduct attacks on their own. it's much better to do this with allied support. ground forces, we probably have ground support capabilities

there that the french could rely upon. i would suggest at a minimum president hollande is asking for support there. >> he may be asking for more than that. there's growing pressure within france to cozy up to the russians for a better solution in syria. russia is dangerous in this. the assumption will be that the white house will try to modify any moves that the french may be making towards the russian position, not least that he's going there on thursday to meet vladimir putin. on the one hand you're supporting a genocidal dictator who is forcing a lot of people to the jihadi side, it is argued. at the same time if you look at what's happening on the border at the moment, you could easily get an act of war being generated between the russian fighters that are attacking essentially turkish allies just over the border. >> simon, you're right.

i think you described the problem well. we need the russians to some degree. we don't want to cave to the russi russians, because we need them for what they did in crimea and ukraine. we have to keep that in front on the discussions. we have to continue the pressure on russia. we look at them as an ally in the case, but allies are always temporary in these situations. president hollande's agenda and our agenda may not be aligned here. it will be difficult for president obama, i think, to ensure that we can on one hand support the french president for what his objectives are, without necessarily looking like we're too soft on russia. >> it's so complicated to figure out a solution. obviously they have so much to talk about. it does seem, bob, what president hollande and president obama need to figure out is what is next for bashar al assad? isn't he the bunch pin here? when it comes to them fighting isis and forming a coalition

with russia, there's been no decision since both hollande and obama have said that al assad needs to leave. what happens next with him? isn't that key? >> that's absolutely key. believe me, i think there's much greater minds that can comment about that better than i. but i'sis is the problem here. we do need to focus our efforts both diplomatically and with our allies in a military sense to ensure we can route out isis, stop their capacity to expand their reach. they demonstrated some significant military capacity, and fighting a war on a couple fronts. fighting in iraq. fighting in syria. they brought the fight to europe and elsewhere. clearly we're concerned about them bringing the fight to the united states. in my mind, all other politics aside, i would be concerned about what we could do collectively to assure we can decimate isis. >> very briefly, as we look to

the events that are set to unfold later with nato. can you describe the significance strategically of turkey? >> turkey has been a strategic ally of the united states for decades. he have been a linchpin for foreign policy in the united states in the soviet era days. they have gone through significant changes politically and ideology with regard to religious movements that have been there. it's an ally we need. but they're critical to us in the middle east. they play an important part. they border all the countries that are currently in turmoil. they provide transit area force refugees. they provide transit for oil. that's coming out of iraq, via kurdistan. there's a lot of dynamics going on with turkey today. it's extremely politically a sensitive dynamic. the shootdown of this aircraft couldn't come at a worse time for us in terms of trying to negotiate in the middle east right now. >> we are seeing a rise, just to mention, crude oil and brent up

3%. bob, thanks for the valuable perspective. >> thank you. when we come back, a lot more on the french president's visit to the united states. president obama and hollande set to speak in that joint news conference in just over an hour's time with the back drop of a global travel warning from the state department and turkey shooting down that russian jet. markets are down about 52 points. s&p down about 8. not quite as low as some futures suggested at the worst in the premarket. tiffany out with results cutting their forecast. stock made its way to the positive side. we'll get more on that in a moment.

shares of tiffany were down sharply but have rebounded. tiffany also lowered the full-year earnings guidance. joining us is brian nagle from oppenheimer and company. is this a traffic story or a 4x story. >> i think it's a 4x story and the issue for tiffany, as has been the case for a while, the stronger u.s. dollar is impacting sales to foreign tourists in the united states. the good news is we're probably getting past the worst of this. again, that was the key factor in this third quarter report this morning. >> margins were a bright spot. up about 50 basis points.

they think they can raise prices to offset some of that dollar dynamic. is that true. >> my team and i got off the conference call a while ago. they reiterated that. tiffany continually looks at pricing. we're hearing them say they continue to raise prices. >> it hasn't been enough. the stock is down 28%. you kept your bullish call. $110 price target. you're one of the most bullish analysts on the street. why have you held on to that and not had to lower it? will you eventually have to cave in with the stock trading around 75? >> i'll make myself clear on that a lot of what i read lately, the comments i put out to clients were cautious on tiffany in the near-term. the report i wrote this morning said we very much anticipated this earnings miss. when i look at the $110 price target i have, that's a longer term call. as i look -- the real takeaway for me is looking at the results

tiffany put out this morning. things get better for them going forward. comparisons are easier. guidance is lower. we're moving past the worst of the strength of the u.s. dollar. another big factor, we probably have not seen this yet but we will, tiffany will benefit from lower input costs, lower gold and silver prices that will help margins further in 2016. >> not necessarily moving away from the strong u.s. dollar. i can't help but wonder if it's all macro and beyond the company's control, why aren't other companies feeling it as badly as tiffany. >> tiffany is a unique animal. it's a u.s. based luxury jeweler. as i dig through the results today, i think relative to what could be happening, relative to the back drop of a volatile market now, tiffany is performing well. >> brian, really quickly. that's a shot of french president hollande making his

way into the white house. we'll hear from them in over an hour's time. to sarah's question, we heard from macy's and nordstrom. all these retailers that tend to count on tourists coming to this country and shopping. where does tiffany fit? are they most exposed to that? somewhere in the middle? >> it's hard to say. we don't know the number specifically. i figure that somewhere between 20% and 25% of tiffany north american sales, largely united states are to foreign fotourist. foreign tourism spending in markets like new york, san francisco, orlando, that's a big driver for tiffany. >> you don't see trouble, brian, any sign of trouble for the actual tiffany brand? >> the tiffany -- i think that's a real key positive here. one of the issues with tiffany, they have a wide product spectrum. i think tiffany continues to do well at the high end. the lower end product, they struggled there a bit but we're

seeing signs of life. i'm in chicago today. i was visiting their store on michigan avenue. the new product they're bringing in looks nice. the new additions to the t collection, the infinity collection. i see some improvements even at the low end. >> on the subject of for reign tourists coming to this country, and other lodging companies banking on that, clearly in those receptor cities we've been challenged recently. if the dollar continues to rise, presumably a holiday for the chinese in this country becomes more and more expensive. are you sure this is a one-way bet here in an environment where the state department itself is warning travelers around the world of global terrorism? >> i think, look, if the u.s. dollar continues to strengthen, that's not something i make a forecast on, if the u.s. dollar

continues to strengthen, that's an ongoing challenge for tiffany. i tend to think we're through the worst of that. the other comment i would make, one of the powerful aspects of the tiffany business model is that the company has stores in many regions of the country. you look at results they reported today or the past couple quarters, we're saying, y the dollar has suffered, but we've seen much stronger sales in areas like japan and in europe as -- as tours -- as tourists basically shift the way they travel to spend. >> brian, we'll see what happens. the stock has turned into the green. >> thank you. coming up, president hollande arriving at the white house. we'll have much more on his meeting with president obama.

increased trade with mexico one of the biggest opportunities for the transportation industry. morgan brennan is in new mexico with which companies are benefiting the most. this is one heck of an assignment. >> yeah. this is a pretty good assignment. simon, this is union pacific's $400 million trade facility. a new rail hub newly constructed near the border as the company looks to further capitalize on trade with mexico. this facility has capacity for 250,000 of these containers. many of them moving back and forth across the border. also a diesel station where trains can refuel in half the time it would take at a nearby facility in el paso, texas. trade between the two countries, about $530 billion per year. that's up 550% over the past two

decades since nafta was signed. with costs rising in asia, mexico has become a manufacturing destination of choice for makers of autos, aerospace, appliances, computers, even legos. seeing more of that freight move across the border is creating opportunities for transportation companies like union pacific. >> from a union pacific standpoint, it represents 10% of the company's total revenue. it's big. it's growing. good growth opportunities south of the border. >> and u.p. is not alone. kansas city southern and berkshire hathaway has been expanding operations tied to the border. on the trucking side, warner enterprises says this is 14% of overall revenue and continues to be one of the fastest growing segments for that company. ryder says every single one of its metrics from revenue to shipment growth has been growing by double digit percentages over the past few years.

and acquisitions of conway and pacer were geared towards boosting cross-border business. this continues to be a big opportunity for all of these companies as well as the states. some manufacturing companies as well. we'll get into that as the day goes on. >> will be a huge issue as we head further into the holidays. when we come back, geopolitical issues center stage. markets reacting to turkey's downing of that russian jet. obama and holland set to speak in about an hour's time.

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good morning. i'm sue herera, here is your cnbc news update. just over a week after the paris terror attacks, french president francois hollande is meeting with president obama at the white house today. hollande is expected to push for more u.s. military involvement in the fight against isis. vladimir putin is calling turkey's decision to shoot down a russian warplane a stab in the back. turkey claims the plane violated its airspace and was warned ten times before being fired upon and just a moment ago a u.s. military spokesman just confirmed that the russian pilots were, indeed, warned. u.s. counterterroism officials are sharing new details about the paris terror attacks with local law enforcement warning them to be on alert for copycat attacks.

the u.s. state department issuing its own alert warning to travelers to be careful overseas. and finally, four crew members are dead following a u.s. military helicopter crash at ft. hood. the cause of that crash is being investigated. the victims have not yet been identified. that is the news update at this hour. let's get back downtown to carl. >> thank you very much. for more on turkey's downing of that russian warplane near the syrian border, we turn to nbc's joe friar. >> reporter: vladimir putin visibly angry when speaking out this morning, calling what happened a stab in the back by terrorist helpers. he said this will have serious consequences for russian/turkish relations. turkey shot down a russian warplane near the syrian border. turkey claims it violated turkish airspace, ignoring repeated warnings.

russia's defense ministry said the plane was only flying within the borders of syrian territory citing what it calls objective monitoring data. dramatic footage from turkish tv shows the plane going down in flames in a wood area and a pilot parachuting down. russian helicopters were seen searching for the pilots. but a spokesman for rebels trying to topple syrian president assad said some of its fighters opened fire on the pilots as they fell to the ground and claims one was killed. no word on the second pilot. russia is an ally of assad and has been running bombing raids against his foes, including isis. nato has called for an emergency meeting later today to discuss what happened. the fear is that this will heighten tensions between moscow and the west. all this comes as francois hollande meets with president obama later today and putin

later this week. we're looking at a shot of the white house right there, as the hollande and obama begin. the president instructing the press they've reserve their comments until 11:30 a.m. eastern time when we get that joint presser. obviously so much to talk about. the discussion of a russian jet was not on the agenda. >> no. never underestimate the desire for the french to be seen as independent. they only came back into nato the last five, six years. dow is down 80 points overall amid those heightened geopolitical tensions. joining hires at post nine is james lew from jpmorgan funds. good morning. it's remarkable how markets hang in there over the last ten days, two weeks. >> i do think some the story has

been about uncertainty. uncertainsercertainty around fe. and geo politcal risk has been with us for the last 15 years, whether it's crcrimea, afghanisn or iraq. the thing is to focus on the economy and markets during that time and not get out of the markets because of uncertainty in the world. >> i guess that depends on whether the geopolitical event or risk becomes so big. it's a statement of the obvious, you can't price in what hasn't actually happened. that's where we are with

consecutive meetings? >> it's hard to say. the easiest thing for them, it would be to move over consecutive meetings, rather than every other meeting. the worst thing to do is hike by 50 basis points rather than 25 basis points per meeting. >> what does that mean for the markets? at this point the words from the fed have been easy in terms of

yes, we may hike rates but we'll take it slow and steady. that's been reassuring. >> i think that means if that comes to pass, rates will be higher than we expected. you listen to strategists around wall street, consensus is they'll be incredibly gradual over the next year or two year. maybe only getting up to 1% next year. does that mean a bigger pull back for the equity markets. >> on the equity market sides, rising rates will be great that has been a great source of uncertainty. our argument is if you increase rates from a low base, that gets people off the couch in order to spend more and do things in the economy. >> it would be great to have a steady slow rate of inflation. it would be great to have raises wa rise, top lines grow, but people come back to the fed ends booms because it raises rates. you have to deal with that as well, don't you? >> they do end booms

historically, but that's because they were far too aggressive. this time around they are far too easy. the boom is likely to end on its own. we don't see any bubbles out there. cycles can end regardless. if we hit 4% unemployment, very few cycles have gotten there without petering out after that the type of recession we could see -- everybody is looking for a massive bubble that blows up, we could see two consecutive sessions of growth and then bounce back from there. >> james, nice to see you. james liu there. when we come back, a live report from nato headquarters as the security lockdown in brussels extends to four days now. with sharp moves in commodities, you saw oil and gold respond to putin this morning. the ceo of the american petroleum institute with rick santelli. and can you explain why you recommend synthetic over cedar?

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leaving you free to focus on what matters most. welcome back to "squawk on the street." the s&p 500 struggles to hold on to gains today. the energy sector standing out as the lone sector in the green, up by a percent or so. currently the only sector positive today. this as crude surges to nearly $43 a barrel. energy is the worst performing sector on the year, down by about 14%. among today's stocks powering the gains, marathon oil, murphy oil, devon energy up about 2% 3%. energy a big focus. the only stock sector in the green. we are waiting that news conference from president obama and francois hollande as tension

in europe is front and center. turkey shot down a russian jet on its border earlier this morning. our own julia chatterley is in brussels, where she's been for the terrorist lockdown. she's moved over to nato headquarters where we know there is an emergency meeting underway. this is not the first time that there's been this sort of encounter on the turkish border. it's not the first time that nato has met to think about this. last time they did they were talking about how the russian navigation system had locked on to the turkish pilots. this is very, very serious for nat nato. >> you're absolutely right. as you quite rightly point out. in one case, nato produced a statement condemning russia's activities. this is the back drop here,

simon. this is very, very important. remember, turkey has called this meeting, this extraordinary meeting of nato. they will brief allies on what they feel happened, and why this jet was downed. they're saying, as you pointed out it was in their airspace. clearly the russians are saying different. so what we wait for at the end of this meeting is a statement from nato. will they condemn the role of russia again in this case. clearly the stakes are far higher. in this case, a jet has actually been downed. of course, this crucial desire between nato and russia here to maintain the warming relations and present this united front in fighting the terrorism and islamic states. the stakes are incredibly high here. we wait for the results of this meeting. back to you. >> we'll continue to check back with you, julia chatterley. let's get over to chicago and rick santelli with the santelli exchange. good morning. i would like to welcome my

guest, head of the api, american petroleum institute, jack gerard. thanks for taking the time. >> you're welcome, rick. >> you know, the epa, one would think would be trying to maximize how we can have the most energy with the least pollution at the best price. but, jack, i'm sorry, the more i read and look at the strategies, what they want to implement, it doesn't seem that way. in your words, describe how the u.s. compares to air quality versus other countries, and whether it's better or worse than it was ten years ago. >> you raise a very important point. as we are talking on a global scale and the president is getting ready to go to paris to talk about climate carbon emissi emissions, we have a proven case study right here in the united states where our carbon emissions are down to a 27-year low. we are leading the world in emissions reduction. yet the solution the president is taking to paris is a

different solution. his solution or their approach will ultimately drive up costs to consumers. it will harm the economy, slow economic growth. we believe actually hurt jobs here at home. so we believe there's an alternative solution. it's driven heavily by current experience, which relies on american produced clean-burning natural gas, which allows us to reduce our emissions, while also creating good paying jobs here at home. and making us energy secure, particularly as we look around the world today, and all that's taken place, the volatility. we need to focus on that national security component. >> you know, jack, ten years ago i don't think anybody would have believed the revolution we had in energy. not only that it occurred, not only that it produced an abundance of natural gas and other energy, liquid as well, but the idea that it wasn't government subsidized, government pushed, government

handled. it just happened almost despite all those issues. so why would the epa still look the other way? why wouldn't they bring this message to china? to india, to pakistan? can you make any sense of it? is it just a religion of anything that has fossil fuel in it is bad? >> rick, it's very frustrating. our hope is that the american consumer continues to look at the options out there. we all support a clean environment. we all want to do better by the environment, to live longer lives, to enjoy a high quality of life. we found the proven model in the united states to your point was not driven by government mandate. it was driven by technological advancements, and the ability to find cleaner burning fuels right here at home in the form of natural gas. that new case study, that experience, if you will, i like to call it the u.s. model, has demonstrated leadership to the

world. we have encouraged the president, take this u.s. model, go around the word, talk about how we can collectively resolve ordeal with challenges of today, but we can do it in a way that creates well-paying american jobs. that keeps us to work. allows to us have gasoline prices -- i heard a report today that are averaging $2 a gallon. who would have thought about that a few years ago. it's a reality. it's driven by the private sector. >> we're out of time here. i would like to go on. i would like to invite you back. >> i'd like to join you. >> some things that they could agree on in paris could be counter intuitive to our discussion. thank you. >> good to talk to you. >> thanks, rick santelli. want to show you what's going on with markets. looking at session lows for stocks. the dow is down triple digits, 100 points. s&p 500 down three quarters of a percent. energy is the only bright spot.

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with thanksgiving just two days away, restaurants and -- one chain, boston market, expecting to serve more than one million customers, including thousands of retail workers on thanksgiving day. the restaurant's busiest day of the year. joining us to talk about it at post nine, boston market's ceo george michelle. it's good to see you again. >> good morning. how are you? >> so you are expecting another big year. is this a sign that fewer americans are cooking than ever? >> yeah, and more people are eating out as well. there was a research that came out that said about 10% of people eat outside the home right now, but most people are looking for solutions so they're coming to boston market to become the full meal, heat them, and serve them at home. >> isn't it still cheaper, though, to cook it yourself? >> well, it's about 50% to 60% of the cost of getting a prepared meal, but then you don't go through the hassle, or the stress. then can you pick up ready to

eat food, or come to boston market and eat in our restaurants. >> i'm curious about how it's been doing. from the saga from bankruptcy in the 1990s, right -- or in the early 2000s -- >> 189 -- 1999. >> you were bought by private equity, and now are you growing again. >> we've opened eight restaurants this year. we're going into food courts. we did an agreement with the u.s. army and air force exchange. we've gone on army bases, and we are opening three restaurants in the next 60 days here in new york with three more following next year. >> is it a franchise? >> no, it's a corporate owned restaurant. >> what's happening to your -- we were talking about how turkey prices have ultimately fallen probably this year despite the avian flu outbreak. i mean, where are you on that and, of course, on this question of wages? >> wages will go up a bit. we pay about $1.22 above the minimum wage in our restaurants

because we value our employees. we have long-term bees working in our restaurants. we feel that you have to fairly pay your employees when they work in the restaurants. >> is that because you feel the retention is being challenged or -- >> we are very fortunate that we have a lot of people that have been with us 20 years. we focus on full-time people more than part-time people. >> do they have health care? >> they can opt for health care. >> i was talk to somebody else in a very similar business to yours earlier in the week, and he was suggesting actually for a lot of his staff they were opting out of health care, and one of the open questions for next year with remuneration is what will they do with it? >> they're working less than required hours. they don't want to be covered, but we have a lot of full-time people that have opted for health care in our system, and we're glad that we are. >> back to expansion and growth, how are you doing that in an environment where there's so

much competition and chipolte that isn't doing that great with -- noodles and company, shack shake, they're also growing. >> we're very unique in that we serve rhodhissry chicken. you can only get that at boston market. >> it's not rotisserie chicken. the whole bird. we bring it fresh. we cook in in the rotisserie ovens. >> are you suggesting you're healthier than some of the alternatives? >> we're a different cooking method where our bird takes about an hour and a half to cook on a slow heat, and we serve full chicken. it comes in fresh, never frozen into our restaurants. >> wooufr consider going public again now that you are back on the up swing? >> we're very much focused on growth right now going into new york, florida, food courts, and then, you know, we're going to look at international expansion. >> how do you judge how quickly you should expand because, of course, expanding too quickly can end up being the death nail for some chains, and you seem to have been very dig deliberate in your approach these days. >> we're very careful in that we

want to really go after markets where we do very well. toupt develop your people internally and understand your systems, but more importantly, you're operating excellence as well. >> what markets do you do well in? >> we do very well in the burroughs of new york and jersey. these are the top markets. sfroo lower price points for the industry arguably. >> not necessarily. in new york here, you know, the price points are very competitive. if you go to spain, for example, this style of cooking of fast food is huge, absolutely huge. this is an example in that weather. >> south america as well. >> what is the price point for a thanksgiving dinner for a family? i think you have three to five on the website, right? >> we have the family meal that eats 12 people. it's $109.99. it's about $9.29 a person. if you come into our restaurants

to eat it's $12.99 with a slice of pie, and the rest of the country it's $11.99. >> a little higher than cook, but it's a convenience factor. thank you for stopping by, george michelle, to talk about the thanksgiving meal. ceo of boston market. >> with a slice of pie. coming up on "squawk alley" president obama is set to deliver a joint news conference in apparently a half hour with the french president francois hollande. that's a moveable feast, pardon the pun. let's just check on the markets. dow down 91 points. more ahead on cnbc. ♪

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♪ my mom works at ge. ♪ esbrand news. we're keeping our eye on washington. the president will hold a news conference with french president francois hollande. i he made brief comments. they've reserved most of their comments for the news conference. we'll go live to washington as soon as they begin to speak. in the meantime, on a tuesday john fort, kayla, and myself at post nine as we are watching events both in washington and,

of course, on the turkey-syria border. tension racheting up overseas after turkey shot down a russian jet, a fighter jet, near the border with syria. russian president vladimir putin calling that attack a stab in the back. our john harwood is at the white house this morning with more. good morning, john. >> good morning, carl. you know, the french president, president obama are now meeting. we're going to find out in roughly a half hour or so whether there are any new policy changes coming out of that meeting. we've seen president obama after the paris attacks saying he would have an intensification of his current strategy, but not a fundamental change in it. francois hollande on is on a diplomatic tour. he will be seeing angela merkel of germany and vladimir putin of russia, and, of course, the new tension injected by the shootdown by turkish forces of the russian plane which had the turks said had violated their airspace injekts a new level of