♪ i come around like a hurricane ♪ ♪ my life is flashing across the sky ♪ welcome to "squawk alley." for a monday. good morning, guys. first up, the president making a prime-time address last night, laying out the administration's strategy for combating terror. our chief washington correspondent john harwood joins us this morning with the reaction to last night's address. hey, john. >> hey, carl. in a speech from the oval office last night, president obama told the nation we're in a new phase in the war on terrorism. part of the u.s. response is military, special operations, assisting in forces in iraq and

syria, air strikes as well. part of it's intelligence sharing with our allies around the world and part of it is coop race from tech companies in an age when it is a key start of the isis strategy. >> we examine our strategy to determine when additional step are also needed to get the job done. that's why i've ordered the departments of state and homeland security to review the visa waiver program under which the female terrorist in san bernardino originally came to this country. that's why i will urge high-tech only law enforcement leaders to make it harder for terrorists to use technology to escape from justice. >> now, the president didn't educate he wants a new law from congress, merely that he wants the tech industry to work with law enforcement, try to figure out ways to help them track threats without invading the privacy of customers. obviously, that's an extremely speech, the lance to strike. president tried to balance the need for military action versus

a softer approach in terms of our approach to muslims. that has generated a tremendous backlash from republican candidates who say the president's not doing enough, that his emphasis was all wrong, guys. >> john, thank you for that. this angle regarding tech companies is sort of what we're interested in, john. what is a reasonable request? does that change if we get more instances like san bernardino? >> it's just been a really difficult position that tech companies are in. when there are revelations that the government was intercepts cisco networking equipment that was heading overseas, eavesdropping on it. now, at this point, their business, just the very nature of it, is threatened by the idea that the u.s. government wants to compromise the data of people who are not u.s. sit steps. so it's interesting, the language to me in his speech sounded like he was walking it back a little bit. he wasn't talking about a back door to encryption, he was just talking about, hey, help us out

here a bit. maybe this is the middle ground that he's opening up that we've been looking for. >> the question of a back door into encryption is really an open matter. they were basically, both obama and clinton speaking at the forum. she says two things. she says you're going to hear the familiar complaints. then she said we need to put the great disrupters at work. she says basically some way we'll need access to these systems. these online companies will have to turn over information if they want safety. they said we need innovation in this area. the cia has a venture capital fund. and actually one of the high-flying unicorns right now is the major company that works with almost every government agency to parse big data. we need to get access to this and everyone needs to innovate a little more around this stuff. >> the privacy argument gets tougher, we know this. also the added question, less certain but the effect on traffic, the effect on growth,

the effect on time spent. if people begin to believe these are platforms that are potentially tang rudangerous. >> i got to think at some point if the government does get access that they want to the flow of data that they want, they won't tell us, right. well, if they figure it out, they're not going to tell everybody, okay, we're eating all your stuff now, so terrorists, move on, find some other venue. i think as the public, we're in an interesting position now. there's this request going out but i don't think we'll know how it gets resolved. >> russo and the social contract always something under negotiation. giving up certain freedoms in exchange for others. we do seem to be at a moment where people need to give up a little access just for the government to protect us. >> also, the deal to take keurig private. an investor group led by jab holding for $92 a share in cash. for more on that, we're joined

by herb greenberg. it's good to talk to you, good morning. i saw your tweet this morning. you said, look, in every short name, the biggest risk is the possibility of a takeout. that was certainly the case here. >> it was always the case here. it was something we said when we initiated our coverage in june with the red flag when the stock was about 83. we said, you know, the risk is that somebody comes in, buys the whole thing. at that point, a lot of people thought coke might be the one who does that. i think that you look at what jb did today. you know, it strikes home, you know, how markets work. they see tremendous opportunity. i think the price surprised even the most bearish of bears who thought it could be acquired. it was a question of price. but look it's an interesting transacti transaction. it will be interesting to see what they do with it. i think it's intriguing that

coke gets out pretty much without a loss. in their 10-q, they were already setting the stage for possible impairment of their shares. >> herb, are you -- so when you look at the balance sheet today, versus three months ago, i mean, are you having to look at it through a different prism? what do they see that others didn't see? >> you would have to ask them. they obviously see a way of bringing it all together. we saw it as a packager of coffee. we saw green mountain. we saw them having lost pricing leverage. we saw, you know, tremendous risk with cold product. we saw some accounting issues. but again, you know, in the end if someone's going to come in and in low interest rate environment, do a deal like this, all the things we were concerned about, obviously become moot.

>> remember, jab is almost like a coffee private equity fund, right? they own pete coffee, caribou coffee. one of the big complaints in that dismal launch was it didn't take generic third party cuts. maybe there's something that jab can do with all their various coffee brands to lower the cost and get that consumer friendly story turned around a little bit for them. >> you know what they can do, john, they can do what dell did, and they can do all of this that has to be done outside of the public eye. and they can deal with the pricing leverage. look, there's a lot of capacity out there. if you look at -- for making pods and for others making pods. you can look at what tree house has been saying recently. which is a competitor in the private label space. you can look at the pricing of pods and how it's fallen so much. you can go to the grocery store and see the price wars there. sometimes you look at these things and you say, you know, when it's out of the public eye, suddenly no one's talking about

it anymore. they can correct the call, if that's what is suggested. suggesting that the cold certainly has to be in effect redesigned. they don't have people like you and me, you know, pointing out every twist and turn of the strategy. >> so, herb, watching short names or names too short the way you do, does this change at all your calculus, after dell, emc, now this, are you looking differently at companies that you think are having a rough time? is this kind of a hazard for you that's always out there and you can never really consider it? >> again, we don't short. we do research. >> that's what i mean, you're just looking at names that people might short. >> look, look, look, some companies have great cash flow, some don't. when there are fundamental flows, we're in the business of pointing those flaws out. most of the time, they're not taken out. what i often say is a name on

our list could also be on an activist's list because you're all looking at it for the same purpose. jb's not an activist. jp's coming along and seeing opportunity. that's always the risk. i look at our group of companies we cover and, you know, when we write about them, we'll often say, on several of them, we said, that's the risk. it's an obvious risk. but green mountain is going to be acquired, good for them, and it will be -- it's still an interesting one to follow as a private company, you know, just as we see the brand and the marketplace. >> as is dell, as you point out. herb, it's good to talk to you. herb greenberg. finally this morning, netflix content chief speaking at a media conference sayi rath billion on original content that spend $1 billion on secure ago movie from studios. he also says netflix will not

enter into larger deals in the u.s. anymore. netflix currently down about 2%. he said the notion of saying i get paramount films just doesn't mean much. >> it's almost a commodity. like right now on the weekend, you know, my wife and i, we got a couple kids so we're often not going out. we're looking at a movie to watch. it's not like we're expecting netflix to have a movie. that's not why we subscribe to netflix. it's for the original content. it's for the kid shows, which are just a different bit of -- so even though we talked about the move from dvd to streaming as a big shift, i think that's a big shift in original content being the driver for growth. >> this is effectively vertical integration, right? they have full control over it, less exposed to reno goshations. nobody wants to be in the position the media companies are with the nfl or large sports league. so this creates more security around them. it's a product that's working very well for them.

very smart comments. amazing that ted is the most powerful man in the entertainment industry. you would have thought eisner or -- but it's ted sarandos from netflix. >> is it less expensive than getting movies the traditional way? >> less expensive. they've gotten more influence. they also know what customers are watching. they can make decisions to fill in some gaps. especially interesting is what they're doing with marvel. it's not like they're coming up with their own ideas entirely but they're figuring out which ideas from marvel's catalog, way in the back of their catalog, are going to work for their audience. >> heck of a focus group having all those subs and all the data. john, good to see you. when we come back on this monday morning, more on the response to the president's speech last night and an update on the investigation in san bernardino. markets meantime struggling on the back of oil that is below 39. year to date, west texas down

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victims are speaking out following last week's deadly attacks. investigators probing the shooters now believe the wife was the driving force behind the

assault. our jane wells is in california with the latest. >> right inside the county government building, they're having a news conference. it's pretty emotional. people talking about coming back to work as county government finally reopens, although with higher security. this, as the city is mourning. people are planning funerals. some of the wounded remain hospitalized. security at government buildings will remain increased. counseling service will be provided. quote, all managers have been told to look for signs of stress among employees. >> there are many, many opportunities by which our good county employees will be able to come together as we begin today to move forward. >> what truly bothers me most is that none of the 14 who perished had a chance. >> we will get an update at noon

from the fbi. over the weekend, they raided the home of the man who bought the two assault rifles legally which somehow ended up in the hands of the killers. meantime, syed's father tells a newspaper his son was, quote, upset. let's let the sirens go by. we are in downtown san bernardino. telling a newspaper his son was, quote, obsessed with israel. as for tashfeen malik, called her a vocal and driven student, someone who liked to laugh, covered herself around men. she can't believe this is the same woman. >> they are saying that they have proof, but they are not shown any proof that she has done this. if they say that she died, then they have no proof she's the person who died. >> all right, well, homeland security secretary is tell iing

us, quote, a pretty good system of detecting oversea s plots in their earliest stages. domestically, it's challenge, it could happen at a moment's notice. >> jane wells, thank you. homeland security's new terror alert system. coming after the president sought to ease the public's concerns in that rare oval address office last night. >> our success won't depend on tough talk or a bbandoning our values or giving in to fear. instead, we will prevail by being strong and smart. resilient and relentless. and by drawing upon every aspect of american power. >> joining us at post nine this morning, former homeland security assistant secretary, it's good to have you on. some of these policy measures like visa waiver reform, people

would call it closing the barn door after the horse is out. what can be done? what should be done? >> you're right, it's hard to detect terrorists coming into the united states but it's even harder to detect them once they're here. but since 9/11 what we have done, we've increased security standards worldwide. we've increased security airport standards, cargo screening standards and even percent until screening standards. because it is so difficult to find them once they're here. >> seems like there are a number of things the government can do short having a back door to encrypti encryption. they can know who you are, where you are, through credit card information, they could know what you're buying and perhaps get a lead on if somebody's purchasing a suspicious -- of course they could use cash. what is likely that the government can get out of tech right now short of the back door to incryption which doesn't seem like it's something that tech

wants to give? >> let's look at this from the standpoint of what tech is currently doing. we know from ad sense and the different tracking mechanisms available on the internet today, you go to one site and you'll search for a couch, you'll find ten different ads on your web browser. the government can't do that. but the government is interested in knowing people going to radical sites and to places where they might be getting information about how to put a bomb together. so we want to track all those things. but that's within the domain of the private sector. so we need that information to us. the encryption problem is a big problem, right? there are encryption schemes out there that will protect any communication and make difficult for the government to get. if we don't have cooperation with the companies creating those technologies, the government won't be able to crack that. >> for those who argue a lot of communication happens on nonencrypted platforms, is that beside the point? >> no, we need every available resource for law enforcement.

we've got to be data driven. we can't be conclusion driven and then find the facts. and it might be one small piece of information, whether it's open source or encrypted data that adds to that piece of puzzle. >> if it's clear the u.s. companies that have encrypted products are cooperating with the government, probably would be clear, i guess, if the encryption back door were discovered, wouldn't the sophisticated terrorist just use something that was created overseas anyway? would this only catch the sloppy terrorist and expose the rest of the u.s. population? >> that's a good point. we need to have available to us every opportunity we can. people make mistakes. linkages between people, communications, i'll call you, you'll call john. you might be encrypted between you and i but you might be open, i might be able to find that. yes, we need to work with foreign partners to do the same thing. quite candidly in many countries aaron the world, which is where

technologies are being deployed, those countries have ubiquitous access to that data. we're making it more difficult on our own law enforcement. we need to put our folks on the same level platform. >> a lot of discussion today about how post-9/11 some argue, country was unified in the response. it's not happening this time. why do you think that is? >> i'm not a politician. i'm not a policy analyst. i think politics has a lot to do with this right now. in politics, you draw a conclusion, you look for the facts. in law enforcement, you're drawn to those conclusions based upon the facts you see in front of you. there's a big difference. so while there might be a lot of rhetoric around this particular debate, law enforcement is heads down, looking for people, irrespective of political ideology. when somebody walkings in and you're at the point of the gun, you don't care about the political ideology, religious thinking. all you want to do is figure out how to get out of that

situation. we need to be looking at all the facts that can help us identify people likely to conduct these acts. it's all crime. this just happens to fit into that. >> okay. guns is another issue. shares of smith & wesson breaking out today. we'll save that for another time. thanks for coming on. when we come back this morning, a former top executive at microsoft. some strong words for marissa mayer and the leadership lessons over at yahoo!. in the midst of a wicked sell-off. europe's going to close in just about eight minutes. when "squawk alley" comes back.

keeping an eye on some of the gunmakers today. smith and wesson up. up 113%. rgr up 67%, as sales of guns are

driving some pretty impressive stock performance. europe's going to close in about four minutes. >> this is the price of oil we have around the world. is really ricocheting through european markets. we were far higher than this earlier in the session. many markets moving into negative territory. the fallen energy production is already showing up in the data big time. german industrial production was really disappointing today. just up 0.2% because of this lower energy production as you can see. let's have a look at some of the oil majors. still, national oil companies in many sense, in terms of the weight they carry on the market. you see, rexle down. bp down over 5%. trading below $42 a barrel. there was a follow-through at the beginning of the session, from the upbeat comments we had here in new york, saying he was still dovish. and of course the huge 373 point rally in the dow, which as we

were cutting the losses from earlier in the week on the disappointment. as you see, biggest loser today, electra lux. ge is canceling the deal they had with this swedish operator to buy their appliance business. as a result of the doj opposition. the department of justice fighting electrolux and ultimately ge pulling the plug on this. in france, today the head of the far right party that did so well in the first round of those regional elections held a news conference today. it is unprecedented for them to have done quite so well leading the votes in 6 of the 13 regions it of course you have the second and final elections next weekend. the rest of the establishment parties will now do deals to try to remove competing candidates in many election spaces to try and prevent the far right from

gaining further power. it's a huge issue for europe in advance of course of the presidential election next year in france. more on that as we work our way through, guys, back to you. >> all right, thanks, simon. coming up, yahoo!'s board under increased scrutiny as it meets to consider the company's strategy going forward and why one former top exec sees, quote, serious leadership problem, when "squawk alley" returns. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

good morning. here is your cnbc news update. the supreme court is leaving a suburban town's ban on asalt weapons intact. the court anoupsing it will not hear a challenge to the 2013 law passed by highland park, illinois, which bans the sale of semiautomatic weapons. beijing is under its first ever red alert for smog. officials in the notoriously polluted city are limiting vehicle traffic and urging schools to close. factories are also being told to restrict their operations. the smog condition is expected to stick around for the next few days. the american association of pediatrics is releasing new guidelines for children's office visits and among the changes is a recommend that all kids ages 11 to 21 be screened for high blood cholesterol levels. and the tween obsession one direction beats out president obama for top of the twitter

charts. the social media company says this tweet by harry styles which came after one of the boy band's members left the group was the most retweeted of 2015. that's the news update. my tweens are obsessed with one direction. if i hear that's what makes you beautiful one more time. >> we're all the better for it, sue. >> it's headed your way, carl, when those little girls get older. >> i'm well aware. sue herrera. in the midst of a sell-off here. these tweets from presidential candidate trump getting attention today, calling out amazon after doing the same thing to macy's on friday. more on that from washington. >> another day, another tweet storm here for trump. this time as you say his target is amazon and jeff bezos who owns "the washington post." here are the tweets from trump just about an hour or so ago. he criticizes "the washington

post." he says "the washington post" which loses a fortune is owned by jeff basis for purple of keeping taxes down at his no profit company amazon. he went on to say "the washington post" loses money, a deduction, and gives owner jeff bezos power to screw public on low tax action of amazon, big tax shelter. if amazon ever had to pay fair taxes, its stock would crash and it would crumble like a paper bag. "the washington post" scam is saving it. all this appears to be a response to a "washington post" fact checker item which call nooed into question some of trump's comments about 9/11. it's not clear though what trump is specifically talking about here. jeff bezos owns "the washington post" individually so it's not clear there would be any tax benefits at all from any losses at the "washington post" to amazon, which is a separate corporation. not clear here, but clearly what we can say is donald trump is very upset at the "washington post" and at amazon today. >> ammon, do you think this is

just trump spouting off? is there any strategy here? is he aiming to be the grinch who stole christmas? first macy's, now amazon? where are trump fans supposed to shop? >> that's right. first of all, look, donald trump clearly has a media brushback pitch strategy, right? his idea is every time he gets criticism from any media organization, he just lobs bombs at that organization. we've seen that time and time between. it's almost become a daily thing here. i think you can put that -- this one in that basket. it's interesting he's going after bezos personally, one billionaire going after another is not something you see every day on twitter but it's becoming more and more common. clearly, trump thinks this is an effective strategy or it's gratifying to his ego. he likes doing it or he thinks it's working or maybe both. >> yeah, it's also interesting, trump has often brushed critics back, saying, hey, rich people are good at avoiding taxes. so going after amazon for avoiding taxes is an interesting tact. a number of people on twit

remember picking up on. >> the question is is donald trump going to company out for a tax increase for amazon. that wouldn't play very well with republican primary voters who are generally against every kind of tax increase. if that's what he's asking for here, that's not going to play well politically. >> or just prime shoppers in general. ammon jabbers, thanks so much. mean why, shares of yahoo! up fractionally as investors await word from the board on any restructuring moves and whether it's going to proceed with thealy back ba spin-off. yahoo! shares tumbled more than 30% for the year. the ceo continues to intensify. joining us now, former microsoft chief operating officer bob herbold, now managing director of the consulting firm herbold. i imagine you can relate to the position she's in. microsoft reached its highs in your last days working there.

and had struggled over the decade-plus since to regain those levels. can you empathize with the did i cut position yahoo!'s in? >> they've been in a difficult position, carl, for a number of years. in fact, the most recent ceo who is number seven out of the last ten years, by the way, has been watching this business get softer and softer for three years, and basically has spent a lot of money buying small companies. but the impact has been negligible. in fact, revenue has slightly declined. every year, profits are in much worst shape because costs have gone way up. you don't just sit around and watch it decline. you do something significant. and nothing significant has happened. >> among some of the things that you've taken issue with, i think sort of it resolves around ceo visibility, right? at a time where the business is

struggling. to what degree do you want to be seen at the met or in davos or doing anything that's high profile? >> well, it's okay to go to davos if you've got something you're proud of and should be proud of and you can, you know, communicate some wisdom. but to see a business continually decline and the person go to literally every technical conference possible and do as many keynotes as you can, that doesn't square with the employees. so this is a ceo that's having a lot of problems. the business has been terrible. and she got together the direct reports plus a few others about four months ago and put a letter in front of them in a group meeting saying this is a contract where you're going to sign up for three more years, and i want you to sign it, stay here for three years, because we're eventually going to figure this thing out. when you're on the receiving end of something like that, it's no

surprise that people go running out the doors pretty quickly. so them lost dozens of top executives in the last six months. it's a sad situation. and the leadership is nonexistent at the top of the company and the leadership is clearly not existing at the board. >> some in silicon valley says it's a good thing she asked for that kind of commitment. she could tell who was in for the longer haul and who isn't. but what would you do in this situation if you were in the board room? to you go ahead with the alibaba spin-off? do you sell off yahoo!'s core business? is there some move to preserve this? do you make an acquisition to preserve yahoo!'s core business as an independent company? >> a number of leaders have looked at this situation with yahoo! over the years, carl, and come up empty. i think it's time to liquidate. alibaba shares are worth a lot

of money about $32 billion. yahoo! japan is a valuable asset worth about $8 billion. the company yahoo! is valued only at $33 billion. so clearly wall street says it's not worth anything, but, in fact, it generates cash. you can sell the alibaba shares. you may have to pay tax, who knows? they haven't been able to figure that out with the irs and make a deal. then you liquidate the web properties to private equity. private equity would love to own them because they're cash cows. they do generate good cash. so it's time to stop fooling around and give the shareholders what they deserve, which is some meaningful decisions. >> all right. so you would say just sell everything, right? >> exactly. that's the way to go. bob, thanks so much for joining us. and coming up, an interview with the ceo of juno therapeutics, a

top name and volatile stock. first, rick santelli. >> i think we're going to be looking at what's going on in the world as the fed gets ready to normalize rates. we've called it from day one the great recalibration. and, in lieu of recalibration, i leave you with the big number of the day, 405 billion. what is it? come back after the break and i'll tell you.

coming up on the halftime show, why the biggest bull on

wall street is convinced stocks will surprise a lot of people in 2016. tony dwyer is with us live. plus what other deals could be brewing in the beverage space with keurig's big buyout? and can crude turn it around next year? a top portfolio manager will give us his outlook as well. >> in the meantime, we're going to track this sell-off we got going on. ubs director of floor operation. i thought the talk this morning was you took out some november resistance, what's going on here? >> well, friday was not exactly what it looked like. it was one of the weirdist days i've seen in 50 years of trading. there were anomalies all over the place. things didn't really connect. for example, the jobs number looked like a lock, and meanwhile the yield on the 10-year plummeted.

i think it may have come because of the -- moving the currencies. people had to sell assets they didn't want to sell. so we were up 300 and some odd points. and you had twice as many 52-week lows as you had new highs. >> this is a very strange month. if the trend is your friend, where's the trend? the traders cannot figure out a trend. think of what happened on thursday. we're down more than 200 points thursday. now we're down 200 points today. where is the trend? art's right, there's a lot of strange anomalies. we were talking earlier, oil's down and the transporpts are still getting killed today. we've got new 52-week lows. some of this is the coal problem overall. traders are saying, how do i make any money in this kind of market right now? it's a very difficult time. i think art's right. the dollar blowing up, the dollar trade blowing up, long dollar, short euro trade blowing

up last week, that really killed a lot of people for the year. they threw in the towel. so a lot of sort of frustrated people out there right now. >> now, art, we had paris. now we have san bernardino. the markets haven't had a huge reaction to any of that. are we just sort of going to flop back and forth a bit until holiday results become clear? or are their some other more significant economic trigger to move one way or the other? >> no, i think people are looking at the holiday. the san bernardino thing was absolutely dreadful, but it wasn't the scene of a public attack. it was a soft target that the killer knew well. because he worked there. but if it had been more like paris, if it had involved people at a wall the more or something along those lines, you would have had a much more severe reaction. >> if the seasonality were happening the way december tends to work, we would be talking about do you hold your nose and

buy? is that not -- >> well, remember, art, you know this too, there is a dip in december that traditionally occurs because you're selling your losers. and there may be some tax loss selling going on, particularly in the energy names. that's why you get an effect called the free lunch effect. art knows about this as well. in the middle of the month, sell a whole bunch of stocks, they drop to new lows, and those stocks tend to outperform in the following month or two. it gets a little complicated. but there is normally a little bit of a dip in the middle of the year. >> there is. at the beginning of december is strong. then as you get towards the middle, a little dip. then everybody starts listening for sleigh bells. >> what about high yield? are you beginning to sense real cracks, real fissures, in the strength of some of these markets? >> yeah, there are. i'm certainly not an analyst but i think people should consult with some of their analysts. because in the mlp sector for

example not every mlp is having serious problems. it depends on what part of the stream you're in that makes it work. but some of the other -- some are getting killed and rightfully so. some are getting killed just because they're in the neighborhood. >> the lesson here is beware of the analysis. the analyst on mlps from the very beginning of the year is guys, we're not in the oil business, we're toll keepers. they're sending oil through our pipelines. we are collecting a toll. there's only going to be a modest drop in what they thought was volumes. so far, they've been right. but the investor response has not been like that at all. the investor response has been like this business is in trouble because volumes could drop significantly and now dividends could be cut. and kmi was kind of the last straw. they cape out and said, well, we're looking at our dividend. they didn't even do anything. they did -- all they said was we're looking at our dividend policy and that was enough. >> good to see you.

let's hop over to the cme and check in with rick. >> the recalibration, i talk about it a lot, federal reserve, the european central bank, bank of japan. they must understand that throughout the course of what is, you know, in the macro, approaching the decade, things have been rejiggered to the point where of course the new normal is going to be difficult to get unwound and go back to the old normal. now, for the tease, i said the big number today. we had some data come out today. not in the u.s., in china. their reserves. their reserves for november. remember, november's the 11th month. it dropped 405 billion. that's year to date. the exact number for today that was released was the drop of 87 billion. which was the third biggest fx reserve drop ever.

i know you can guess what the biggest one was. think mid-august. depreciation of the yuan. i believe it was 94 billion. what's the year to date reserves now? well, year to date reserves are down. leaving them just shy of 3.5 trillion. this was a bit of a surprise number. it goes to the point. now, oversimplifying. but let's consider dynamics. as the fed embarks on raising rates, we can listen to multinational squawk but if you jump off a lad, you can squawk about hitting the ground but gravity is difficult to counter. you can't say, listen, i want to sue gravity for making me fall. when you normalize and raise interest rates, all things being equal, the dollar's appreciating. that appreciation has caused a lot capital outflows. so to try to control the value of the yuan, they are selling

dollars. this process, with the outflows, isn't unique to china. and it isn't only because of the central bank of the united states going in a different direction. the first to try to go back and dial back some of the recalibration. it's also the notion of falling interest rates. but it indeed is something to pay very close attention to. and what we want to add in is should we continue to see this, and you compound what's going on with china to purported liquidation of treasuries, you start to get the picture. back to you. >> all right, thanks, rick. up next, more on the market sell-off this morning. after friday's strong rally. squawk alley will be back in two.

with boy tech stalks falling, let's go to meg. >> we have been talking with a lot of ceos today. a lot of their stocks declining out of this meeting. juno therapeutics down about 7%. we sat down with our ceo in orlando. juno's working on therapies known as car-t immunotherapies. that's when you genetically modify cells to detect and fight cancer. there's been a lot of questions around this space because a competitor has developed a way of doing that off the shelf. using a donor's t-cells and not

the patient's own. we asked juno's ceo about those data today. take a listen to what he said. >> encouraging that that's been a report of a response but there's too early to say will these cells persist as long as cells made from the patient's own cells? we believe to get to competitor levels of efficacy, that's a key performance parameter, i think that's technically challenging. we have to wait and see when we've got more data to review. >> we also asked hans bishop if juno is working on its own version of off the shelf car-t. they have more than $1 billion in cash, as they said last report. so they are investing that in a lot of ways to expand their offerings. one of those does include an off the shelf approach. >> more on some of the biggest movers today, including keurig up on a buyout. but through good times and bad...

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we'll watch the sell-off as we head into the afternoon session. dow's down, off session lows. that's three quarters of a percent. s&p down 16. interesting action on some individual names. go pro for instance got some

attention earlier today in the 17 rang. >> oh, boy, go pro is having a rough time. at the end of the last week, we saw the smaller camera, the one that they're getting sued over, they cut it another 100 bucks. originally it was at 399. now it's selling at 199 on the web side. usually indicates they're having trouble moving units. given they had inventory troubles, not what you want to see. square, which has had some trouble since the ipo, up 3% today. etsy, which has struggled a bit, up nearly 3. and fit bit, which has been a favorite this holiday season, up a little better than 2. >> again, not surprisingly, mu, which is either in the top five or the bottom five of the winners and losers every single day as people try to make sense of the semiconductor market. talking about the advent of chips for cars.

assisted driving down the road. >> yeah, a flash is just a difficult area to gauge. we had pure storage on last week talking about how their bet on flash in enterprise storage has turned out well. of course, we had san disc getting acquired. so there's value in it. the question is, how do you play it into your larger storage strategy? it's not enough just to have flash be your main business. >> of course, keurig is going to take the lion's share of attention today. still holding on to a 73% gain on the heels of that deal to be taken private by an investor group led by jab. 92 in cash is the deal. followed by some other consumer names. whole foods coming in at number two. that's going to be a focus going into the holiday season still to see what kind of traffic these retailers and consumer companies can maintain. >> some of these hot names, look at chipotle, you just never know what's going to happen. whether it's to the downside for some of these names or in this

case keurig green mountain's looks like it's found a rescuer in this market. >> retail sales on friday along with ppi. a lot of the big macro stuff is out of the way for now. that does it for us. let's get back to headquarters. scott wapner and the half. welcome to the halftime show. jim lavinthal is here. our game plan looks like this. coffee talk. what the keurig/green mountain buyout means for the java trade and what other deals might be percolating. as oil hits its lowest level since the summer is one of this year's worst trade set for a rebound in 2016? a top performer in that space joins us live. we begin with the market