and squawk box begins right now. >> live from new york where business never sleeps, this is squawk box. >> good morning and welcome to squawk box. i'm kelly evans. the bulls will try to make it two in a row after a losing streak in yesterday's session but the s&p and nasdaq are all down at least 1.5% so far this week. that's putting stocks on track for the worst week in a month. u.s. equity futures let's check in on that this morning. keeping an eye across the major indexes. it's down 117. the s&p 500 to about 14 points right now and nasdaq 28. energy is a big market driver right now. crude holding near 7 year lows

and this morning the iea says it sees the oil glut worsening. the big reason, demand growth now is slowing while opec's out look continues to boom the ieac global market is supplied until at least the end of next year. wti with 36 and change down another 1%. even brent at 39 and natural gas, look at that, below the $2 mark. >> we were -- you messed it up yesterday. halftime report we were up like 150 or something? >> almost 200. >> almost 200. we ended up, up 80. what did you do? which guy was it do you think? >> were you on the show. >> they were both there. >> could have been either one. or could have been each. but, you know what i think honestly what did happen, oil got weaker and weaker and in the old days if oil went down, it was party.

sit that people think it's not as slower or. >> what is it? the iea saying it's demand and not supply. >> last two weeks we decided it was all supply. every guy we had on said it was supply. >> maybe it's just that the shorts out there in the market are just leaning on it because they're looking to make money in a year where they haven't made much. >> i don't know but it seems like every day and when she said the dow was down triple digits you're like no surprise because as you said, joe, the stock market is absolutely trading on wti crude. >> we don't care about the stock market but the market goes down and it's a sick feeling. >> the one place you would expect it to show up in a more positive way, that's the one place where they have been kind of -- if you expect anywhere you

see that correlation, lower oil prices and better consumer confidence, it's not really quite happening. >> used to thinking of enriching our enemies in the middle east versus the production where we're hurting people that have jobs here in the industry and i haven't switched to that attitude you would think the tax cut that people have gotten over the last year at least would have sent people out buying everything under the sun and it hasn't happened. >> tax cut for consumers and businesses and people that use oil for input or anybody that has to pay power to keep factories open it's just -- it's -- instead of blowing it on energy you could use it -- i don't see why it's not positive. >> it still might emerge long-term as a positive but right now all the concerns about the last time we saw a bubble

situation on housing collapse it was really ugly. >> do you have a problem with me hoping for $25 or $12 oil. >> no who would. >> 12 is too much. >> i remember filling up for 79 cents a gallon. >> really? you're a millennial too. >> i know. >> ain't you one of them millennials? we're weird. all they do is play with their electronics. i'm getting very -- oh, you got it right here. >> it's like a natural reflex too it is hard to tryon that ipad so i have gone to dictating but you can't believe the stuff she comes up with that i say. >> how about the other big

stories today? a slew of economic data, 8:30 eastern, november retail sales and the producer price index. forecasters expect sales to have risen which could ease concerns about a slow down in consumer spending. as for inflation, headline ppi is not seen changing held back by lower oil prices. and one more snapshot of the american shopper today that at 10:00 eastern. it is expected to pick up slightly to start the month. >> the perfect reports here for everything we were talking about wti is below the 2008 and 2009 low. just barely. >> on the mark grant list as

well. >> have we reached the 2009 lows. >> it's on this chart. >> you are not on this list? >> i can't get my e-mail. >> we're close enough at this point. >> stocks to watch this morning, united technologies is raising the lower end of the 23earnings forecast. a $1.5 billion restructuring plan aimed at cutting costs. shares of adobe getting a boost today. companies earnings beat the street for a 9th straight quarter growth for its cloud software. it's pretty good. a mixed quarter. earnings beat the street but the home furnishing companies the sales fell short jet blue

offering disappointing guidance. it expects passenger revenue per available seat mile to decline by 2 to 3% and the corporate credit rating was downgraded to junk by s&p yesterday. the fast food chain announced plans to return $6.2 billion to shareholders and s&p says this is a significant shift from the company's previous financial policy and the ceo is going to join us later live today you don care about that? that might be significant. >> those are the long-term trend lines traders always talk about. you wonder where the next move lower is. >> it's coming. >> i moved on to yum research. >> speaking of fast food, more bad news for chipotle.

one of the chain's restaurants has been closed for food safety violations. they found repeated violations. it reopened last month after passing inspections following an e.coli outbreak. what a slide they have been on since this first started to take more prominens. in global news a chinese tycoon gone missing. shares in companies controlled by the billionaire has been suspended. reports say the man's employees have been unable to con tack him since thursday and he was last seen with police at an airport in shanghai. china is in the middle of a sweeping anticorruption crack down. raising lots of speculation about whether it's connected to that today or several others that have been hauled in after the stock market swing this summer. >> in other international market news china reporting the country has attracted $114 billion in foreign direct investment this year. that is up about 8% from the same period one year ago.

china's aluminum is promising to shut more production this month and not add any new capacity next year. >> they want to sure up prices for the metal that have been down slightly. >> would you go to a chipotle tonight. >> i don't think i would. i love mexican food. it's my favorite. but i love mexican food but mexican food even when it's fine is suspect. at times. >> what are you talking about. >> i'm just telling you that things can happen. >> it's probably the most common cuisine for america. >> things for me can happen, if the food is fine there can still be a problem. >> i love the food there. but would you go tonight? >> i don't know. >> this is going to be a problem for sales. >> ready for this? >> probably. 2009, a low of 3459.

>> why does it look below. a weekly close. >> i think we still have a couple more to go and you can expect the headlines to pick up as that happens. >> what's going to determine whether you go back or not? >> that's a good question. >> what do you need to see? >> we need a clear sailing sign. >> but the location out in seattle are you going to go to every single fast casual place. >> did you have your initial bout down there? >> i didn't. >> i had three days. >> that didn't happen to you. >> no. i had a three day spell. >> i went roadside taco stand too that has nothing to do with

chipotle. >> i did too. >> that was exactly where i was too. >> it was delicious. >> but i had paid my dues. >> you got off the airline and hit. >> tried to stay away. >> passport control. >> but sooner or later you'll get something. anyway, so you never had any problem. you got an iron stomach? it happens to most americans. >> i went to morocco once and i was the only one. but all rice is all i ate the entire time. >> i said that stuff happens. ford's head of research says the company wants to develop ride hailing services that can compete with uber and lift. see this guy travis. >> yeah. >> man of the year. >> ford will launch a pilot

program -- >> we moved on again. >> will let employees in michigan use smartphone apps to hail rides in specifically designed ford transit fans. the auto maker is considering expanding the service beyond it's corporate campus. and in other news from ford today ceo mark fields announcing plans to invest 4.5 billion more in electric cars by 2020. >> we're building our leadership really driven by customer requirements and even with gas prices low fuel economy is still really on people's minds because they also have short memories. they know it can go up. it's down right now but it's part of building on our leadership and responding to customer needs and also at the same time being aware of the regulatory requirements. >> late next year ford will launch a new version of its focus. it can recharge in just 30 minutes. >> let's check on the markets this morning.

taking a look at what has been happening. here the dow futures lower by 138 points and we're keeping a close eye on what's happening in crude oil nearing 2009 lows for wti. s&p 500 lower by almost 17 points now and the nasdaq about 35 and let's check on markets around the world here as well as we look to europe. the worst performer there, the german dax down 1.8%. the cac in france down 1.4%. ftse, italy, all with declines of 1% so we're ecoing what we have seen in the overnight sessi session. turning your attention to the bond market where i think i red recently that the five year note had the highest level of shorts ever. ahead of the anticipated rate hike next week. everybody still kind of holding in place here, the ten year is at 2.21% this morning and

finally a check on the dollar and gold. the moves reflect what is happening as well with the dollar. the euro is stronger again this morning. it's up a quarter of percent just below the $1.10 level. gold down about $7 this morning. 10:46 an ounce. >> i like this headline. we try. stocks having their worst week in the last two -- no, actually in the last month as investors -- we need more, don't we? >> it's the worst week. anyway, beginning the final countdown to next week's big fed decision here to set the table for the trading day ahead is todd gordon. founder of trading analysis.com and larry mcdonald head of u.s.

strategy. >> you're the best. >> maybe go to chipotle tonight. >> so, i'll start with you. so all of this all yearlong we're like where we started. >> a lot of markets, except for oil. >> it's time to look ahead now. 2016 be any different in your view with many of the same things happening? >> i think with the dynamics being pulled forward it's going to get worse. i think volatility is set to explode. >> is that down volatility. >> volatility up. i think markets down. i think with this move in the futures now the s&p is negative for the year and if you just take a look -- >> in 10 minutes it could be positive though. >> that's the thing. yesterday at the close we were up .2%. when we open now we'll be down for the year. you take a look at the disparity in the markets.

you have the xly which is consumer discretionary up 11 or 12% for the year. compare that. it's been an unbelievable trading market and you're starting to see it deteriorate so that carries through it's been this anticipation of a tightening and once we get a quarterback in december we're going to think are they going to go another quarter so we'll be worried about markets tightening at least in terms of fed policy so can it be a positive year if nick growth doesn't pick up? >> well, the dynamic around a year from now, the futures are down at 85% and they're a little bit around 1%.

so in other words people expect this big rate hike over the next year. >> that should still be plend -- the fed meetings, the expectations is so high coming in that they put a more dovish spin over the next 12 months. expectations are so high that the fed could talk down the dots and talk down the future policy path and that could help oil and risk assets. >> you probably know everybody is expecting and hoping for a dovish hike.

she told us yesterday she thinks the fed is going to be one and we'll let you know in terms of any future rate hikes. >> how could they not. >> but if that's the expectation for wednesday then are we confident the fed will be able to deliver that? >> i believe they will be able to deliver. they're going to have to talk down the market significantly it's not the hikes that would sink the economy. it's the psychology. it's an exclues to eject from your long position. it's been so built up to your point that markets will want to head lower. >> you don't think it's in the market already? you're starting to see the dollar. >> i do and it does leave the equity market so i do think the markets will be lower heading in and oil has not yet reached the low. looking at the futures continuous contract the low is about 33.

we have serious drop in oil going right now and i think that is going to continue to exacerbate and the reason we're seeing the drop, we need to turn it back to emerging markets. look at the hang seng and shanghai they didn't put in anywhere near what the s&p did. >> you think the market will sell off on a rate hike that yesterday people were saying to us if they don't raise rates that will be the big market sell off. >> i think it sells off either way. >> there's no pleasing you. >> we can't buy stocks but we can have mutual funds and stuff. do you blow it all or defer -- >> all of it. >> i have some deferred and have to choose mutual funds. i don't know what i'm doing right now. >> did you know what you were doing then?

>> why am i here? so i got some emerging market i got american like small cap grow growth. >> these are always horrible. >> should i get -- this matters to me. should i go into cash? should i move everything overseas? will you tell me what to do next year or are you going to talk in these vague -- tell me something. what should i do. >> the way to make money is just buy what nobody wants and hold it. if you bought european stocks in 2011. >> should do that now? >> yes. because maybe 2016 is a flat year again. >> you can wait forever now

everybody thinks it's going to be a flat to lousy year. >> i heard one person say it's going to be a great year. >> only one person and you talked to these people all day long. >> on at noon with scott and his band of merry traders. how is that? >> awesome. >> can you do that again? >> i will. >> but the real elephant in the room to watch is global gdp is 60 trillion. the amount of dollar denominated debt now is 10. so what happened is and the reason why when oil is lower and the dollar goes high wrer ther there's so much debt that is out there tied to oil that is sensitive to the dollar that wasn't there. so because the fed kept rates where they have for so long that's what is making it. >> what happen ifs the dollar surprises and goes lower even if the fed hikes rates? that is a thought and it has

happened before in history that some folks that i have been stalking to site as a reason that you can have a really good stock. >> i think that's what is going to happen in the first quarter because the dollar has made such a violent move to your point and now the fed can talk it down by hiking that policy path. right now the street is looking for this and if they talk it down to that the dollar will go lower and that's going to support market equities and oil and commodities. >> i kind of like the dividend fund and look at the dividend fund. >> i think there's going to be short-term. >> how many people have said the market is going to be great in 2016? >> the last five years. >> all right. >> you think i'm making that up? >> no. that's what i said. you got -- you know, on the halftime report, which appears

at noon on cnbc, scott and his band of merry traders talk about this every day, don't you? >> you might learn something. >> well i learn a lot on closing bell with kelly evans. >> we're not paying him for this. this is great. coming up it's the hottest gift of the year this holiday season but now the nation's airlines are banning hover boards. will this impact their sales? that story from courtney reagan is next. first as we head to break take a look at this date back in history. ♪

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sports freaks. x1 from xfinity will change the way you experience tv. balancing motorized two wheel boards are among the year's hottest gift but reports of ten fires in nine states have safety concerns heating up. major airlines in even new york city banned the devices. they sold 7500 on cyber monday. slice intelligence data shows about 70% of hover board sales took place in november with

sales increasing as some prices have fallen from $1,300 in the spring to around $400. in the meantime it recommends certifying it's parts. it has been a top concern for retailers with many choosing not to sell them at all. those that do sell online. so far none is polling them. the extra measure to use certified, quote, adapters and top quality samsung or lg lithium ion batteries to ensure safety. incidentally all the hover boards are either sold out or back orders. now razor hover tracks is another model sold at retailers and it's history of standing behind it's products like the two wheel scooters is well-known. it warns consumers, to quote, watch out for cheap uncontrolled imports because manufacturing

standards are unknown. we talked about this previously off line that a lot of the concern is the counterfeit products. >> that is different manufacturers of these things are there. >> it will come from overseas and it's where they come from and who manufacture them. my brother wanted a hover board and had to order 8 of them from china just to get one and he's selling the other 7. >> are all lithium ion batteries created equal? >> i don't know but sounds like they're not. that's why some of the companies are saying we use ones that are certified and they're called out as safer options but i think we need to be careful. you need to be careful when you large them and just be a little mindful. there's a lot of different things to consider but a big reason why new york city for instance banned them is folks falling off or bumping into each other. i mean, self-balancing.

if you have ever ridden one it's hard. i think for someone that doesn't have great balance it's a hard thing to ride. >> yeah. they're like weaving in and out of traffic. >> 15 years ago it was dangerous too. >> no lithium ion batteries. >> in short shorts. >> they still work for me. they make them a lot longer. >> you want to go the short one. >> yeah. >> show it off in central park. >> almost like 80s sort of -- what was that olivia newton john, john travolta, like that. >> the worst part is visualizing this and feeling sick. >> feeling sick again. >> you got it. careful on the hover boards. a $500 ticket in new york city.

>> $500. >> we have a guest later in the program. if you're riding in new york city you get a $500 ticket. it's classified as a motorized vehicle. you need a license for it. you could get a $500 ticket. >> there are wheels and they took the ground. >> six or seven stories up that might be even more dangerous. >> yeah. >> coming up, congress in final stage talks on massive budget and tax bills. this as the clock ticks toward the threat of a government shutdown. first as we head to break a look at yesterday's s&p 500 winners and losers.

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welcome back to squawk box. in washington news this morning the deadline to avoid a federal government shutdown is today but the senate agreed by voice vote to extend that deadline through next wednesday. the house is expected to follow suit today. lawmakers are working to finalize a $1.1 trillion spending bill as well as a tax package.

>> 3rd avenue management is liquidating a nearly $1 billion junk bond fund that bet big on ill liquid assets. they're trying to complete th y liquidati liquidation. this is being called the biggest failure in the mutual fund industry since the primary fund broke the buck during the financial crisis and it has a lot of people talking this morning. >> it's a big deal. >> maybe it should have more people talking. >> it's not as if the fund shutdown. in a way that's happening but for them to just gate it. >> if it started out, investing in ill liquid securities and then we know what happened in the last month and even longer but it's accelerated. do we start talking about the last time something hike this happened? i don't know at this point yet. >> well we just did in the story. >> we did in the wall street journal. >> but that's what makes it so unusual. >> i don't know if it's time to start extrapolating or not. >> maybe it's something to tuck back and say okay keep an eye on

this because this could be an important moment that we'll talk about more in a matter of whether it's weeks or months or whatever. >> like a canary in a coal mine. >> that would at least justify this move. otherwise how can you justify it? these investors are strieing to get their money pack after a lot of losses. and what do we understand, were you talking about what we're doing here. >> my only point too is the first time. they vn even started yet. >> do you remember the financial crisis where if you marked them to market some assets were 50%

below -- they're not real. those bids. >> that done clarify. >> you'll get less money out for your clients. >> did the investors know? even though you're right, it doesn't matter if they didn't understand that hey, this money, you might not get it back for years. >> right. >> my guess is maybe they didn't know the extent. do you ever? until after the fact? >> you're reaching into this junk literally better than 1% but it's not double digit is it? >> the losses. >> what you were reaching for barely. >> the average high yield is what, still about five. >> i'm sure there were parts of it where you were.

>> let's turn to the pharma space now. megais here and joins us with a special guest this morning. >> joining us now is the ceo, thank you for joining us john. >> thanks for having me. >> you just had your r and d-day in new york laying out a path for ten trial data read outs in the next year and it would be great to start if you could briefly explain the technology you're working in. rna interference. it's a new way of going after disease. >> it's a promising technology. came out of basic research and we have been leading this into a whole new way of developing medicines. it's basically a way of turning off the bad acting protein and it's a very potent mechanism and we figured out how to use it in a way to develop important medicines for patients. >> what is so interesting is most drugs target the actual

proteins but you're going upstream and you're actually turning off the gene's ability to do something bad to the body. >> think of it like a flood on your kitchen floor. you can either mop up the flood which is what today's medicines do or turn off the faucet. what we do is turn off the faucet so. that approach for new medicines can be frankly revolutionary for a whole bunch of diseases so even rare diseases to even more common diseases. >> did it have to be a protein that someone has to have a mutation already or healthy people get other drugs. >> it's a little bit of both, joe. >> you could have situations where there's cholesterol. i got that. >> and that's an exciting

opportunity and we're turning off a protein that is normally okay and we could lower cholesterol levels dramatically. >> one number you have to worry about side effects and turn off other stuff. it's a very unstable molecule too. >> we figured out how to make it very durable. by chemically modifying these molecules and weaken with our program we have a potential for a dosing regimen. could be revolutionary. >> the dow dupont deal is official. it's now crossing. do we have the actual numbers on that?

it was expected to be a merger of equals. they're up on the news of that report. >> do you have something in front of you? because i don't have it. >> that's not out yet i don't think. >> it was just starting to cross but at any rate that much talked about or speculated on deal that we were expecting this week, maybe yesterday but now we're getting this morning, dow and dupont making it official. around $120 billion is what these companies were worth together. 60 billion a piece. two of america's oldest businesses. each by i think more than 100 years old. >> i wonder if they'll talk at all at this point about breaking it off into three more focus companies. >> agricultural, chemicals and specialty products. it was expected that edward that was the ceo of dupont would be the ceo of the combined company and the ceo of dow chemical

would be the executive chair. >> are you sure -- they're restructuring dow corning which would have been nice. because i said i didn't see it and i don't see it. >> they're telling me that it's out. >> no, we know. we all heard it. dow chemical company this morning. we'll get the other one soon. >> what do you mean they're telling you it's out. who is telling you it's out? well we can just move on. it didn't happen. they're restructuring dow corning, 100% of dow corning. i know you want this deal to happen. >> i don't care whether it happens or not. >> announcing a transaction to restructure the ownership of dow corning and you remember that. >> so the deal is not out. >> no. the dow dupont deal is not out. that's why we're making it clear that it's not out. >> they should have made it more clear to me. >> yeah, they should. maybe. i don't know how you would have -- >> as we wait for that, i'd like to bring john back in one big

issue is drug pricing. i'm so curious to know how the executives executives are different from other companies in the industry like touring for example. is there a stronger level of communication that we'll see from you guys? >> yeah, we're focussing on value and innovation and patient access with our medicines and i think the industry certainly realizes that we have to be more forth right in terms of articulating that value so i do think that this moment of time is creating some introspection and some perspective within the industry and i think clearly our ability to articulate the value that we deliver to patients is really critical. i mean, we also have an innovation cycle. let's not forget the medicines we pay for today are free for our children. they're essentially free for our kids and if we don fund those

medicines today our kids won't get the free medicines. >> how much of the message that is actually translated in the protein, how much do you have to block. >> well, it depends on the disease. in some cases we want to go all the way to the floor. we have a program in. >> let's say it's 300 base pairs. do you need a complimentary 300 base pairs? >> a small snippet. 21 base pairs and harness this mechanism. >> that's it. >> science everyone. >> yeah. >> on a friday morning. >> it would be much more specific if you did the whole. >> it would except that would be hard to do. >> hopefully you're not just blocking some sequence that's used elsewhere. >> we know how to avoid that. >> oh, you know everything. >> since we know the whole genome. >> i showed it to him yesterday. he saw my chromosomes. i felt so exposed.

>> i was blushing. >> i try. john, thank you for joining us. >> thank you guys. >> up next, crude, how about $80 barrel in the new year. find out what could drive oil in 2016 even as it's under further pressure this morning. as we head to break a quick check of european markets. the dax down 1.5%. weighing on u.s. equity futures. the dow implied to open lower still by more than triple digits.

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joint venture and maybe that was part of being able to do the whole deal but it was basically what was said all along. dupont and dow did combine in a merger. it's a merger of equals. they see it closing in the first half of 2016. it will result in what was also discu discussed. run rate, synergies. it expects to be substantially tax free. also -- this is all what we already said. 130 billion is what the combined market cap will be. ed breen will be the ceo of the combined company. shareholders get 50% of the combined company on a fully diluted basis excluding the stock. as approved by the board of dupont and the pooboard of dow they intend to approve a

separation. and ceo has been trying to do this as we said for a long time. he calls this a game changer for our industry and it would be three public companies within 18 to 24 months. split into three will be merger closing. >> interesting they are just going dow-dupont, mashing the name there, and second sentence of the release talking about three independent companies. >> had to be done before. i mean, allegiance did not work for united airplane. >> dow pont is no good. >> pontdue? coming up, a bold call on oil. "squawk box" will be right back.

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welcome back, crude plunged more than 40% in six months, but by next summer, it's hitting $80 a barrel. david, make your case. what's it predicated on? >> so fundamentally demand grows next year, supply falls, and the real issue is we don't think the market oversupplied as consensus believes. recent inventory trends, the report shows this morning that october oecd inventories fell ten million barrels for the

month on top of normal. look at third quarter inventory draws, and in september, you're only above normal builds by half a million barrels a day or run rate. the market is oversupplied through the year, but not to two or three million barrels a day. guys like me get on and suggest it's tighter than people believe so if that's the case, then a million barrel a days demand growth and supply growth tightens in the market next year. >> did you ever on the way down from a hundred have a sell or negative view on this or picking a bottom the entire way down? >> well, it's -- so, one, i hate to pick a bottom on crude because this would happen -- >> but in the last year, did you ever identify that it was going to go below 40? was that -- >> no. >> you were buying it the whole way down. why is this any different then? >> i wouldn't say i was buying it all the way down, but it's hard to pick a bottom on crude. we've always been --

>> discussing too. >> it's -- the issue for us is that it takes time for u.s. supply to react to -- >> no, i know. >> lower prices. that's happening. >> a lot of analysts are still stuck. you're going back to 80, but others are stuck there that they said on the way down. that's the point. glad i did not listen to them on the way down, and, you know, it jur undercuts forecasts from here. david, we have to run. thank you. >> laying out the case. >> and this story's, megamerger between dow chemical and dupont.

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breaking news, a tieup between two $60 billion companies, details on dow chemical and dupont and regulatory challenges lay are likely to face. terrorist attacks in paris and san bernardino, results of a survey on terror in the economy. the senator weighs in on the fight against isil. >> happening overnight, crude prices trading near levels not seen since 2009 with opec increases its fast and furious production by a quarter billion barrels a day. a breakdown on the economy as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." welcome back to "squawk

box." enjoying the music here. first in business word wide, i'm kelly evans this morning, and becky and andrew are off. let's look at u.s. equity futures this hour, pointed lower. the dow looking to open lower by 134 points in the implied open there, nasdaq down potentially 28 this morning, but as we said, joe, the big story right now. >> what's the market? i don't know. >> oil, you said it yourself. >> oh, it should be positive. the story of the morning, dew popt and dow combining an emerging of equals, and liveris is the chairman, and breen will be named ceo of the combined company, and david faber is joining us now with more. is there a single point that is different than what you already told us three or four days ago? >> well, we know the ratio and details. >> the merger, both get 50%. >> although buffet owns the preferred and dow, if he

converts -- >> does not include the preferred. >> does not. it would be roughly 52/48. 50/50 said in yesterday's close or the day before, so i mean, they really have. -- >> did they have to get that dow corning deal out of the way before this? that's why they released that first? that was part of the release? >> all part of it, confusing there, i know, with the two releases. unexpected to see dow corning. >> forgot about that. >> i know. they gain more on the balance sheet from it viewed as positive, but the government structure here is interesting joe. never seen anything like this, two historic companies together in a mermg ger, setting a struce to allow for the quickest timeline they can on the spinoffs of the three companies we've talked about, materials, ag, and specialty products. so much so that they are going to have a combined board of directors, but seven directors drop down from dow into the materials board, and materials,

by the way, is run by andrew liveris, executive chairman, running materials. >> ceo? >> well, he runs it, although he's not call ceo. seven directors drop down from dupont for the ag to oversee ag, so they've already got a structure built in, and they split for specialty products. now, it's going to be 18-24 months after the close of the merger that you actually get these companies out into the marketplace, but it certainly is interesting to see them. they are not, like, trying to jam all the companies together in a merger, but keep them separately run in a sense and have them each merge their businesses together. >> what happens -- >> why is that? >> i'm not sure. maybe the ratio. >> really? supposedly knew everything. >> they did. we don't know exactly where the ratio would be. >> both stocks up sharply yesterday. >> two trading days now since

the potential news. yesterday was down a bit. >> the structure you're talking about, sorry, and the way it's sort of broken up, that has a lot, i would gather, to do with the regulatory process in trying to have it set up or appear in any way to get it further or easier past the government, right? >> it could helpme menit would but the ag business alone will be twice the size of monsanto. enormous. it's huge opportunities for cost savings for companies. you see that, okay, what about the regulatory side? >> assume it gets the -- a big assumption -- >> it should. there's not overlap. it's not a big difference. in fact, it would still be a huge competitor, maybe larger than monsanto, but you're right, this brings together -- i'm told dow was working with potentially

three bidders for its ag business including what i believe one was monsanto until the end to motivate dupont to follow through. to your point, there's crop protection and seeds. the key here, joe, in terms of the stock price, and we'll get a conference call and see what the synergy numbers are. we told above 3 billion, and they could not say it, but they put head quarters a lot. >> analysts say five or six. >> dupont, for example, pays monsanto a lot of money for the seeds, for the intellectual property for the seeds. that could end. excuse me, yeah. so there's a lot of things that could go on here. >> which is for sure the slow growth business outs of the three, and which is the big growth business? where do they put the crappy businesses, slow growth businesses? >> i don't know the answer to

that, but that's a good question. >> remember we were sure about viacom and cbs. that was a slam dunk. >> right. >> you never know. >> you never know. >> they want out of businesses -- or is it just separating conflict of interest? >> to rationalize business structure and to be more powerful in the marketplace. specialty products are -- what are you looking at? >> your suit is cool. the pink lapel. what's this right here? >> i can't believe you did that. >> i know. i did that to leisman the other day. i can't help it. >> i knew you were, but he wouldn't do that. >> what about -- yeah, you know. >> i have not be with you enough lately. >> how many layoffs? >> i don't know the answer. on the call, the last -- i mean, it's got to be a fairly significant number, and,

unfortunately, i didn't have the opportunity to ask in the last 15 minutes. >> do you know the toal number of employees? hundreds of thousands, isn't it? >> yes. yes. well, dow had 53,000 people worldwide, and one would expect that is going to drop. you know, they got headquarters just alone in each of these businesses. there's any number of them, and they will be closing a few. at the same time, there aren't, again, they are not trying to shove the different companies together within one structure in any way. it's very interesting to see how they are trying to do this in the sense of get together as an m moe, but not having to deal with issues when you shove two companies together. we'll get every single -- >> mattered to the environment, for years, the main case investors made the companies buy back your shares, and now the main case they make is spin off, slim down, whatever, your

businesses, and if you think about what's happening with pfizer and allergan, potentially the same thing, spinning back out again, and now this happens, two get together, but it's like instead of calling it a megamerger, it really seems like a megasplit. >> in a way, it is. it will be each respective companies, obviously, larger than it otherwise would have been, but there was pressure to consider splitting into three with a reasonable question, well, why not just go that path? particularly because this will take quite some time. i mean, we're talking about second half of 16 before this deal gets down and 18-24 months, but that point is a good one, kelly, and the fact is pfizer and allergan could be doing the same thing. 2018 could be the time we see them traded publicly and separately. never seen this at all, but the idea they go in with the plan ahead of time is interesting, and, perhaps, we'll suede fears

on investors to worry about dislocations that happen when you have a huge deal with this and not one side is clearly in charge. >> is it emblematic of how tough it is to grow globally? they even cite, right, the tough global economic conditions in ag and emerging markets, and that we've had such an incredible year of m&a, like, what, david, four and a third trillion dollars? this is, as i said, the cherry and the whipped cream on top of an incredible year. it's hard to grow. it's hard to grow organically given where the world is. >> right. it is. that's been the theme. that is always the theme, by the way, in any m&a market, of course, that you'll hear from bankers in getting top line growth, doing everything you can, shrunk your account for buy backs, but mergers are the best way to do that. you're right, scott. we have to wonder how late we are in the cycle.

>> raising rates? >> in the m&a sicycle, you can' remember this, right, joe, can you? >> right, no. >> last was the private equity guys, the last boom. >> you did a great job on this. high five. oh! >> see. >> well, first of all, i knew you'd never compliment me. >> this is true. >> this is what i would have done, go like that when the other guy -- it's very embarrassing, but you -- >> do you do that to all your guests? >> i've done it, and you're the only one who has not gone for the high five. when we come to break, we'll do a real high five, okay? and a hug. >> don't believe him. >> no, we are. >> by the way, we will have the gentleman joining us, andrew liveris, and ed breen later on "squawk on the street." i'm not. >> you're too smart for me. >> i'm not doing it. >> okay. >> and there's the information, watch that interview coming up

with david in a couple hours here, and ahead, a new survey data, i should say, on how americans' fear of terrorist attacks changed after the shooting in san bernardino. that's coming up, and a check on retail. the ceo joins us on countdown of christmas and impact of weakness in china, and the senator joining us on the presidential campaign and a message for silicon valley on avoidi ining terrorist attacks, and now the ceo of yum brands to talk about the spinoff of yum's china business. stay tuned.

the results of cnbc's all america survey focuses on terror this time, and they are in, and what's surprising is not that americans are more worried now. it's about who is more worried. cnbc's steve leisman has more. interested to hear what that means, steve. >> yeah, joe, political implications here. first, we did the survey, and then the tragedy of san bernardino happened. we went back in the field and reached 347 of the 800 spo

responden respondents. these are results before and after the attacks. we asked the question, are you concerned about terrorism or how concerned about terrorism are you in america? not much change here before san bernardino. by the way, this came after paris, and then look what happened. this gap here, this six point gap between those who were concerned and those who were not opened up to a 13 point gap, and in the next slide, where the concern happened. it happened among those who were very worried, and there was a precipitous decline of not concerned at all. it's on american's minds, clearly, and many more, a third of the public are very concerned here. the prelim implications, i was telling you about, here you can see a big rise among democrats, among those who are more worried. now, they are not at the level of republicans who are at 45%. republicans went up five points, but you can see here the gain among democrats, a big gain with a high school education or less, and a big gain among women.

what's important there, joe, about who is more concerned comes to be, well, this puts pressure on the democratic party to respond, and it could also be a boom to the republican party seen, of course, as stronger on security issues, joe? >> it's weird, steve. i guess -- polls go on, we get more and more specific on asking questions because i don't think everyone is necessarily worried they would be the person that was harmed in the terrorist attack. it's just the overall fear of something like that because we all know that it's more likely, you know, so many other ways that you're more likely -- never step outside the house if you saw numbers of being on the highway, whatever, but think about it as we do in an economic sense, it's frightening what could happen for a lot of reasons, and that's part of the fear the guys you ask have. >> absolutely right. what we did in another question to present later, and i'll tell you results now, which we asked

people, what are you concerned about? fear of international flying was at the top, and going to malls and concerts and big public gatherings was up there, but not quite as high as you'd think. i think this is registering, joe, and what we saw for sure is that we did not get a change like you had after 9/11 in some of the questions. we asked, for example, do you think the government needs to go further? there was an increase, but not like the increase we had preand post 9/11. >> yeah. it's getting scary for a lot of reasons because, you know, if it -- you can imagine, and you've seen the numbers on donald trump's comments too between republicans and democrats. >> right. >> some of the numbers are staggeringly high, which is amazing to me given, you know, what's in the constitution, et cetera, et cetera, et cetera, but you wonder if it were to become more common or if god forbid if there were, you know, something like that happens, you wonder where the numbers could go, and you realize why in the past, certain things happen that

you look at now and say that could never happen here. >> i think that's right. i think as these numbers that we're talking about were to go up, then support for things like what frutrump talks about, thoso up too. should the government go further in monitoring versus private rights concerns? what you saw is that those flipped, joe, in the eric snowden revelations, when that came out, and since then with the terrorism revelations, it goes the other way and the government ought to do more. >> right. okay. steve, thank you for joining us, happy friday. david bianco is here, chief u.s. equity strategist at deutsche bank with gabriella, chief strategist at jp morgan. great to see you. >> good morning. >> in the past, you know, number one, it's always to talk about money in the markets and, you know, in light of things like

this, it's -- we have to do it, but it's always uncomfortable to do it, but in the past, some of these opportunities, when this has happened, presented a time when you shouldn't have sold, but say i'll keep my head in and buy. i hate to frame it in that way, but is this situation more serious this time since it seems to be happening with more frequency? could it turn into something where you'd want to be risk averse completely? >> geopolitical risk as well as risk of attacks is on investors' minds since sev9/11. this is something we live with. >> even 9/11, not sold. >> i agree with that. what you find is major ka tas troe fes like that or smaller engagemen engagements, the market sells off as military prepares to take action, but once action is taken, stocks rally. >> same thing? >> i think the response after

the paris attacks, that monday after when markets opened, there was barely a response. it's strange to talk about that, but i think that in some ways investors have gotten used to the idea of terrorism because, ultimately, it doesn't change our patterns of behavior. >> normally. >> normally. >> unless it's getting to a tipping point where it does affect economic activity. that was in paris, number one, but the same with the different horrific attacks in europe. >> exactly. >> but then there's still that ocean between us, and if that ocean and this country seems to not be a hindrance anymore, i wonder if it could usher in more than just a week or so of fear. >> yeah, but i think it was interesting even after the attacks in europe itself. it did not change their pattern of behavior very permanently either. >> true. >> it did not affect their economic consumption either, and that's what markets looked at. >> if we sense, though, that there are more long-run political and social changes

happening, dave, how does that affect markets ultimately? it has to. >> 2016 will be a political year, and sectors like health care and financials and energy that are exposed to politics, that's what we will be talking about, but i do believe that health care and the technology sector have strong performances in 2016 despite discussion about politics, particularly around health care. >> what do you think the s&p does next year? >> i'm constructive on the s&p, more constructive on the s&p for next year than this time last year. market's up 10% from this time last year. i'm constructive on the markets because of the large contribution to the market from health care and technology. that's 36% s&p earnings at this stage, bigger than financials and energy, and that sets the s&p apart from its history as well as other global ecstasy indi indexes. >> i think it's a matter of what happens with earnings. that's the big expectations that

earnings will bounce back to mid to high single digits next year. >> what do you think, joe? >> realm, scott's going to be back in a second and we have to write the guy down as someone, two that are going against the grain here. >> moderately. >> moderately. >> thank you. david. thank you. >> thank you. coming up, trucking companies face a shortage of drivers and turning to an untapped labor pool in the industry. we have that story from a truck stop in new jersey. morgan? >> reporter: hey, kelly. well, throw everything you think you know about trucking out the window because this is no longer a macho man's world. trucking companies are going to great lengths to bring more women into big rigs. that story when "squawk box" returns. time now for today's aflac trivia question. how many packages does ups expect to ship this holiday season? the answer when cnbc's "squawk box" continues. and . . . exhale. . . aflac!

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>> unbelievable. hey, truck driver shortage pushes companies to actively recruit more women. we go now to morgan brennan, okay, you're just covering this, okay, at the vince lombardi rest stop in new jersey. morgan -- although, you know, cowgirl of the road, things like that, it is a cool job. it's cool, but it might be boring, i guess? >> reporter: it's a very cool job, and i will tell you, we did a ride along with a female truck driver, we'll get into that later on in the day. here's the situation in general. we have a steep truck driver shortage and fleets that are now turning to the little tapped labor pool to recruit workers which is women. women make up just under 6% of the truck driver population in the u.s., but that is up 4% from five years ago. at warner enterprises, it's 9% of the drivers female, and coo, derek letters, says the part of

recruiting process is convincing women that they are welcomed. >> there's been stereotypes of the independent male truck driver, a macho truck industry, career, if you will, and stereotypes about female drivers, which the stats clearly show are untrue does not help, and then mostly, i think, maybe it's just the simple idea of us making it very, very clear that we want them. >> reporter: so at werner, swift, covenant, and snider, they offer financial incentives, carving out shorter trips to cater to family life, and they encourage team driving so couples hit the road together, even in some cases modifying specks to make trucks easier to drive. that's something a rider system took to another level this year by rolling out customized trucks that it is offering to its shipping clientele. there's even a girl scout patch now which the women in trucking association recently created to educate young women about

potential careers in transportation. we'll be talking about this throughout the day, but that gives you a glimpse on how this world of trucking is changing. guys, back over to you. >> they are pros. i'm always, whenever there's a truck in the left lane that i need to pass, they won't get over going 55, whenever i get up to them, it's a represented truck, like a rider. it's not a professional. those guys know exactly pass, get in the right lane, get out of the way, and people want to pass. i mean, i respect them. you know, they are big old things they are handling, and surprise there's not more issues, but think you get good at it. thank you, morgan, and glad you reconsidered and are sticking with tv. anyway, thank you. coming up, a read on holiday retail from the executive chairman of estee, and we'll talk with the ceo, and look at u.s. equity futures from the losing streak yesterday, but we're a loser off the open this

morning. dow would open lower by 160 at this hour, and s&p would open down 18 points, and nasdaq opens lower by 35.

♪ welcome back to "squawk box." in the headlines, the deal of the morning, dupontmerging in ak deal, combined $130 called dow dupont, just take out all the spaces. you see dow shares under pressure there -- dupont slightly down, dow slightly higher. don't miss the interview with the leaders of the two companies on "squawk on the street" today at 9:15 eastern time. crude holding at seven year lows, and this morning, the international energy agency says it sees the oil glut worsening. the reason? demand growth is slowing.

output booms, they see the global markets oversupplied until the end of 2016. more americans cut the cord. 21% of households do not pay for traditional tv by 2018, up from 17% by the end of this year. an asset eliminating a junk bond fund that bet big on ill liquid assets. the firm is blocking investors from withdrawing money as they try to complete this. it's called the biggest failure in the mutual fund industry since the primary fund broke the buck in the crisis. joe? >> american, delta, and united announcing they will no longer allow hover boards on the planes due to safety concerns. delta says it found that the strength of the batteries in the hover board exceeded government limits for what's allowed on an aircraft, but the manufacturers don't consistently label the

size or power of the batteries. jet blue, alaska airlines, and virgin air banned the devices. southwest is allowing them for now, but evaluating the policy. coming up, we'll talk to an executive on the manufacturer of the hover boards. lithium batteries and planes do not mix. worst was the everglades deal which i think they figured might have been in the -- i think it's called air tran? used to be -- >> oh, oh, yeah. >> yeah. they thought they were transporting some of those in the hold, and one of them might have -- i think it was -- may have been this. >> reacted quick to that video. two weeks until christmas now. hard to believe. here now from the front lines of the retail to talk about the holiday shopping season, william lauder. good morning to you. >> good morning. questions on the holiday season, we are not getting the traditional clumping,

necessarily of people showing up in the stores. a lot of online photos of empty malls and that thing and department stores struggling. what do you think is going on? department store and mall specific or something larger? >> you know, i think there's a couple things going on. fist of all, the numbers are, perhaps, not as bad as photos say because if it's taken at 8:00 in the morning, they are empty for a reason, look at saturday at noon, it's bigger, and weather is a factor. it could be 60 degrees in the northeast, that has a different effect on the holiday spirit, if you will, but the fact of the matter is there is substantial shopping, online shopping for sure is growing dramatically as well as we're seeing the retail is not that bad, and it depends where you are in the world. let's, you know, north america's a piece of it, but for us, it's 30% of the business, and 70% is outside america. you see demand in the u.k.

europe with the exception -- paris is good to very good, and asia's pretty good. don't forget it's very much an anglo-european trend christmas shopping. >> shopping is. >> right. >> and cosmetic, those related products have done well for the traditional merchants, you guys, obviously, throughout the period, an ulta beauty salon, those are places people are spending money, but overtime, and you have a product here selling like hot cakes directly to consumers on line, are you going to de-emphasize the department store channel? is that just less important to you guys than ten to 20 years ago? >> well, i think it's more of a rebalancing of the business, so if we were to go back prior to 1995, before al gore invented the internet, you would see that we did 98.9% of the business through department stores or other traditional retailers like that.

today we're doing a substantial portion of the business online, meaning it's about 10-12% of the business, and there's a shift. we are focusing on bringing brands to where consumers want to shop. can bring it online, through our own retail, and what we're trying to do is be a part of what the future of retail is going to be. future of retail is not necessarily a lot of big box stores stuffed to the nose with merchandise. it's going to be back to think of the old sears showrooming where central warehouses held inventory, and they said, i liked it to shop, okay, fine, i'll have it. deliver later on today or tomorrow. >> i don't think he actually invented the internet. >> i know. i was making that up. >> i give him credit for climate change. he invented climate change. >> he affected the weather, made

it warmer. >> and seas, and thinking about amazon, and that's back to the future of the catalog, right? here's every product, what do you want? >> correct. amazon has not created an amazon where there's a showroom short where they can sell the best in stock, buy it now, and have some form of tablet technology, i guess, the amazon fire, wherever, order what you want, amazon has it, push the button and delivered by this time. >> it's not a bad idea. what about china, and what about the growth market for businesses, what are you seeing there. china is not as robust as it was, but it is good. we are still getting nice growth numbers. those are the kinds of numbers where, in most other developed markets in the world, we would be saying it's fantastic. but because china used to be so good, meaningfully high strong

double digits, and now there's meaningfully good strong single digits. that's still very good. >> the masks are doing well. >> for example, they are doing well in asia. women and men in particular, but north america too. one of the favorite products is this, joe. you know -- >> i'm not going to say what i said because that could ruin it. i said, you know what, lamer. i have andrew's christmas present. i was thinking -- how much does it cost? >> this product -- >> probably a couple hundred dollars. >> this is $250. >> you don't have a lamer mist? >> lame is the best. >> now you to change it. i'm not buying lamer. >> it's good. very french. >> oh, i heard a wonderful quote the other day, which i really appreciate, and someone asked about a high priced product like this, and the answer was, you forget about -- you remember

quality long after you forgot about the price. >> i have to smell this. put it on. >> is it a perfume? nobody knows what to do with it. >> it's a special serum. give me the back of my hand. >> i'll give you the back of my hand. [ laughter ] >> just rub it in, and it is a special serum for your skin. >> you know what, i have old man hands now. >> you will have less old man hands. >> yes. >> really? >> i try products all the time. this smooths your skin, makes it supple, and refreshes cells in the skip so that -- >> gets rid of wrinkles and jowls? >> helps you in all those areas. >> fda watching or something? >> we always have to be careful, but it will help. this is -- >> looks -- >> make joe try that. mariah carrey lipstick.

>> selling like hot cakes. >> online is hot, hot, hot right now. we're seeing -- we're going on 12-14 plus years of strong double digit growth in on line. and we're seeing number over 40%. >> thank you so much for joining us this morning. >> thank you. >> that's a good smell. it does smell good. >> yeah. >> smell it. >> yeah, that's nice. >> oh, you know, i should have done that. >> i'll never learn. >> yeah. coming up, a message for silicon valley, it's ur gent, and the tech companies provide access to encrypted information to law enforcement officials to prevent domestic terrorist attacks. the senator joining us from the campaign trail next. ideas are scary. they come into this world ugly and messy.

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that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. welcome back to "squawk box," and after some pressure across equities in europe and asia overnight, look at u.s. futures pointed down for the dow. they continue to drift higher -- lower throughout the morning. the dow implied to open lower by 182 points. s&p gave up 20, and nasdaq 43 or so. if you wonder what's going on,

it might have to do with this. the energy sector, wti crude down 50 cents to 36 a barrel and change. better than 1% decline, and brent crude below 40, almost below 39 this morning, and natural gas below $2. they hope to divert from the natural gas, a big hit for the energy space again. senator graham and mccain call for u.s. involvement in the middle east suggesting ground troops are the only way to defeat isis. senator graham gone as far to say he believes if we don't ask now, there's going to be another 9/11 on u.s. soil. presidential candidate and south carolina senator graham joining us this morning. senator, good to see you. it's not been a month yet since paris, and we've also had san bernardino, and just chronological chronologically, i realize all your tough talk prior to that, you were already saying it's

probably similar things to what you're saying now, even though these two events have now sort of proven you right. >> well, i don't want to be right as much as i want to protect the country. >> i know. >> two years ago, i put forth a proposal that we got to destroy them before they get stronger, and if i could find a way to do with without american ground forces, i would. i know the sacrifice required. we need to go up to 10,000 to expedite the demise of isil inside of iraq, stiffen the spine of iraqi army, giving them the capability they do not have. there's no good choices left. they would go in if we go in with them, and that's going to require a hundred thousand troops. with our leadership, they would do this. 10,000 u.s. western, and the rest come from the region to destroy them. >> do we hear people that are opposed to it in the administration? they use a lot of false

narratives or false choices, i hear it all the time, you know, either we put a hundred thousand americans on the ground or we do what we're doing, and that's all we do, that's the only two choices. the other day i saw someone, a great hero vets talking about it's -- eventually, could end up being our guys that have to dig us out of this mess, and by the time we finally do it, the longer you wait, the more of our guys end up, you know, getting hurt or killed. you know, we think we're sparing us another situation, but maybe we could, maybe by not acting two years ago with our guys, maybe more of our guys -- guys and gals end up being affected this time around. >> absolutely right. you know, john mccain and myself were arguing along with the military to keep a residual force of 10,000 in iraq. the serge worked, and in 2010,

iraq was in a secure spot, security improved, and political progress was made. a residual force would have prevented al qaeda and iraq from becoming isil. three years ago, asod was on the ropes, the country turned against him, and the syria army in tact, no fly zone, the free syria army would have taken assad down, and the security team advised him to do that, but obama refused to listen to sound military advice in iraq, took a pass on assad on the ropes, and the rest is history. if the war goes on another year, it's going to go into lebanon and jordan. this veteran was right. the longer you wait, the worse it gets. >> senator, the numbers are not even close to plurality or majority for trump's proposals about temporarily not allowing muslims to enter the country.

one of the reasons is resinates with is the -- you've heard what if people from this country or people from, you know, don't base on religion, but some way take a pause and step back so that people that -- you know, the picture of that couple coming in through customs is fresh in everyone's mind. is there a way to do it more constitutional or palate able to more people? >> i've been iraq and afghanistan 36 times. i went for my 36th trip a week ago. donald trump has done absolutely the worst possible thing to do as an american political leader, and that's declare war on the fate itself. my plan is to get people within the faith, the arab governments, turkey muslims who reject isil to rally, create an army where they are 90% of the forces going

on the ground with them to destroy a common enemy. donald trump abandoning all muslims or suggesting to do that makes it very difficult to have partnerships with people in the faith who overwhelmingly reject the ideology. he's done the one thing that helps isil and hurts us. what would i do? i'd have a timeout on syria refugees until we have aprocess. i'm the first person to suggest this couple may have pep traited our defenses by having an arranged marriage from a terrorist group organization. i'm very aware of the holes in our system, nsa program going down, but the one thing you don't want to do is declare war on faith because it is a religious war between radical islamists and 90% of the rest of the faith. i intend to join with people in the faith. >> senator, on that note, the journal, for example, called for total informational awareness. the thing to do is not just color the faith with a broad brush, but make sure you follow

connections to actual terrorism activity. >> exactly. >> on that point, do you think silicon valley's products and services undermine national security? >> yes. the fbi director said it was not a technical problem to be able to crack into communications. it was a business model problem. here's my advice to our friends in silicon valley. if you can't find an agreement with the fbi director soon as to how we, the government, with a court order can find out what's going on with terrorist communications, congress will do this for you. i would prefer the private sector working with the fbi cotom up with a system that allows us to be safe and protect privacy. the most chilling testimony from the fbi director was 109 messages were sent by a shooter in texas to a known terrorist, and he still has not seen the communications because he can't get into them. all i suggest, if you have a court order where there's a terrorist on one end of the communication and somebody

inside the country on the other that we have a system that allows the fbi with a court order to look at the communications, and if silicon valley is standing in the way of that, they have to get out of the way. >> senator, is there anything that you think mr. trump could say that would hurt him in the polls? seems like no matter what he says, his numbers continue to get better. >> not with some people. if you poll -- >> there's a new poll out there morning, forgive me for interrupting, but there's a poll, four in ten republican primary voters are for mr. trump. numbers continue to get stronger almost day after day after day. >> yeah. there's nothing really mysterious about this. quite frankly, he's convinced people he's strong when actually he's weak. if he knew anything about the war at all, the last thing you'd do is say something that would hurt us and ability to put together a coalition. how do you go to saudi arabia and e egypt and put together a

partnership they're willing to enter into when the loudest voice in america declared war on your faith? it's an ill conceived idea. americans believe what he says makes them safe. i don't. >> senator, the wall street -- sorry, the gop establishment and pundits, everyone's been wrong on trump up to this point. >> right. >> who knows what timely happens, and, you know, they are considering broker convention, all this stuff, but a lot of them say, look, you add up everybody else's numbers, and it's above mr. trump's numbers, and that's what's going to happen, but until people drop out, that's not going to happen. what would cause you to finally say i'm going to give whatever it is, throw it over to a single candidate that people want, is that after iowa? after new hampshire? when do you decide i'm finished here and i'm going to go for the greater good, try it add my numbers to somebody else? >> right. well, if i don't do well in new hampshire, if i can't do well outside my state, new hampshire

will be the place to breakthrough, i'll reevaluate for reasons you said. one of the reasons i ran for president above all else is drive the national security debate overdue, and i've been successful in that regard. >> and here we are today talking about it with you. we appreciate the time. >> thank you. coming up, greg phlegming, president of morgagan stanley wealth management talking about the path to rate liftoff and beyond.

coming up, the ceo in an exclusive interview to talk about china's spinoff division and fast food industry. don't miss it. (politely) wait, wait, wait! you can't put it in like that,

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yum's new menu for success, laying out plans for the china spinoff, ratings agency s&p is not buying what the company is selling, cutting its bonds all the way to junk in response to the company's buy back plans, and the ceo is here to walk us through the plan in an exclusive interview. stocking under pressure following oil prices and the meeting weighing on investors, and wealth management is here to share a view and look ahead to 2016. >> plus, hottest gift of the season, the hoverboardith a brad rep thanks to knockoffs and safety concerns. we'll ride around the studio and see if you should put one under the tree for christmas as the final hour of "squawk box" rolls on. ♪

live from the most powerful city in the world, new york, this is "squawk box." welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe with scott and kelly and also a guest host, morgan stanley wealth management president greg flemming, an old friend of the show, faber is here, my high five buddy. >> we used to work with phil mccuddy who is your buddy. >> yes. remember that. anyway, a lot to discussion including oil's impact, the field's timeline for rate increases, and you have a 2016 wish list. >> i do personally. >> yeah. >> we all have wish lists? know actually formally written down

wish lists, but i'm sure we have certain ones, a lot in common, maybe some different. first, let's check out the futures and, you know what i'm talking about. there's the futures, yikes. this is really oil again, kelly? seriously? that's oil? >> i'm not saying it's anything. just look at it. >> down 200 points. >> oil about to reach 2009 lows. >> that's good. >> good for some people, but tough for other, and every day people say how much they love the energy trade. >> yeah. that's true. this week will not go down in history as a great week. in fact, as we've said, worst one in a month. the yield on the ten year note right now, which is -- that's truly -- remember greenspan said i would rather see that than the other things? well, that's been like watching somebody paint grass. it's 2.19%. we've been waiting five years. there's europe which may be

inspiring weakness we have here. those are ugly red numbers there. breaking news this morning. it is official, due popt and dow combine in a merger of equals. andrew liveris -- was that him? fa br faber's phone is ringing. ed breen will be ceo of the company, and david is joining us now with more. breen used to be a buddy of ours from -- >> well, he took over at tyco, took them apart. >> try to call him. >> we've tried. he's going to be joining us at 9:00. >> oh, good. >> both of them. >> walk overover. they are nearby in midtown. >> not one, but two for friday. >> that's big. >> a deal we've waited for for a couple days, and the market already adjusted to it. it was wednesday they were up sharply, 10% at least. >> yeah. >> added 14 billion in market values for the one day.

yesterday, pulled back, and we'll watch today. they are down, dupont down more than that. 1.28 shares fixed exchange ratio for one share -- calling it dowdupont, so for each share, you get one share, and dow received 1.82. >> half million dollars just to come up with the name, you think? some advertising firm? >> highly paid advisers. >> we think dow dupont. >> going through it. they've gone through a lot in the last eight weeks in particular, joe, and people who have been involved in putting the deal together are going through all the areas, deciding even things along the line of key leadership names that cannot be fired, if you will, because, of course, an emerging of equals, decisions about who runs what, and as in terms of who is running what business

specifically as we told you, three companies emerge from this huge conglomeration, if you will, and they will keep them separate, albeit under the dow-dupont umbrella with agriculture, specialty products, chemical materials, and the more km commodity businesses, the slower of the three is materials. they do the cracking, creating et lean and things of that nature. it's a liveris company. >> under specialty products? specialty products split between the two of the board. >> got it. >> breen will be ag, liveris is specifically overseeing materials. so, you know, we'll see. 18-24 months after closing the deal, they have the spinoff of the three enormous companies in their own right, larger than

monsanto, you could -- there's a lot of consolidation going on. >> a lot of consolidation and interesting, you know, side stories too talk about here, david, that i know you have an interest in too. i'm hearing that trian is supportive of the deal because of the angle on both sides. and they lost a approximaty fight, been active as far as we know behind the scenes saying from the get-go they were not going away by any stretch. >> scott, they were involved by this. signing the agreement, they were involved, and so had not been speaking, but have been involved in helping the structure of the deal. you're right. they were intermittenly involved, shepherding to a certain extent, being there, saying, keep it going, guys. >> exactly. they are for it. i wonder what their point thinks, and there's a standstill agreement that expires monday with dow, so here we have an announcement of a deal on

friday, and on monday, you are going to get the likely comment or we'll find out what third point and dan loeb think of the transaction after a year, what they think of mr. liveris as executive chairman and running a business broken into three. it's something to look forward to. >> it is. there's certainly got to have been a little prod. as we've reported and others have as well, scott, i mean, liveris had been revisiting the idea of this transaction for many years, and had considered splitting the company and doing any number of things, approached breen's predecessor for a potential deal, and knowing that standstill expires, certainly, i'm sure, i know was also something at least in the back of their minds. >> was it the main motivating portion? no way. it had to be in the back of their minds to try to get this thing done now knowing the standstill was coming monday.

looking forward to the interview. 9:15. >> is that when it is? absolutely right. that's accurate. we like people to tune in at 9:00. >> nay will. they want to hear the commentary of you talk about the deal, leading up to the interview. that's how it works. >> got it, exactly. >> 9:00 a.m. >> "squawk on the street." >> another story, third avenue management liquidating a fund betting big on ill-liquid assets. investors blocked from withdrawing money, the biggest failure since the primary reserve fund broke the buck in the financial aid crisis. to avoid a government shutdown, the senate agreed to a voice vote to extend the deadline through next wednesday. the house is expected to follow suit today. in a prom innocent chinese tycoon is missing. reports say the billionaire has been out of contact since midday thursday, and that he was last

seen with police at an airport in shanghai. china in the middle of a sweeping anticorruption crackdown. the businessman's disappearance raises speculation today. this morning, crude prices remain at levels not seen since early 2009, just in the middle, basically, of the financial crisis. this as output in the middle east continues to rise despite an already huge global glut. wti hit 36 yesterday, the lowest mark since february 2009. the price route is result of a huge overhang in production fast filling storage sites which some analysts expect to run out in the early part of next year. again, we're talking about crude, crude everywhere, and crude prices, crude oil down to 36.27 this morning. >> south lake union chipotle closed this morning. the store received red violations on three consecutive visits from health officials. they closed 43 chains in

washington and oregon amid an e.coli outbreak that sickened people as far as back as last summer. 140 people were sickened by neuroviruses in a boston location. shares of chipotle this morning down 1.5%. this news, joe, coming after the ceo went on "today" with matt lauer yesterday. the shares got a lift yesterday in the session after that interview. >> yep. >> here we are talking about another health violation, and not that interview. >> right. for me, if there was one supplier across the country, and it was e.coli -- suddenly it's neurovirus. doesn't that make you wonder what's happening in terms of quality control? this is when a ceo -- wonder why nay are paid a lot, managing through this is difficult. we'll see how it works. annual investor meeting, yum

brands, owner of kfc and taco bell plan to spin off the business and return $6 billion to shareholders, and by the time the merger is complete, in response to the announcement, s&p lowered its ratings of yum brands. three levels at once all the way to junk warning the dividend and share buyback requires the company taking on higher debt. shares of yum brands now down over 20% in the last six months. joining us now for the exclusive, greg creed, ceo of young brands. good to see you this morning, thank you. >> my pleasure, good morning, everybody. >> you didn't have this same situation, obviously, you were not ceo at the time, but, you know, i guess china with kfc, i mean, it is a mine field trying to run a global chain of restaurants because you got so many moving parts. what do you think of the job --

i understand that, but how do you respond to something like this? >> well, i love my job and the fact that yesterday we got a chance to talk to investors and analysts about creating two powerful independent focus growth companies. couldn't be more excited about the future whether it's china or other countries we operate in around the world. >> one thing, if you don't want to talk about chipotle or quality control issues, we can just move on, but the buyback, causing a downgrade by s&p. we talk about buybacks here all the time, and some people think with multiples where they are, that may not be the best use of cash. especially if you're borrowing it. why do you think this makes sense? >> well, we're going to become a global franchise or with a huge cash flow, and we did a lot of analys analysis, obviously, and we believe we can leverage up, the

high point of the highly focussed global franchise companies, and, yes, we spoke to the ratings agencies. it was not a surprise to us. we think we have an incredibly strong story to the shareholders returning to the capital, and we can cover interest rate over four times, and we feel good about the financial position of the company today, and we're going to feel better going forward when we are a pure franchise play. >> greg, what about underlying economy in the u.s. through your businesses? clearly, there's a lot of positive momentum. are you seeing that in sales? how are you looking at 2016 and beyond? >> yeah. interesting you talked earlier about oil prices. low gas prices has a positive impact on the industry, and i can't report the numbers, but across the board, there's a lot of transaction growth in the fourth quarter and excited when i see sales growth driven by transaction growth. that's a good sign for yum and

the economy. >> it is very -- i mean, china, at this point, can you see that it's hon a scale of one to ten, how fixed is the situation there? >> well, we've got a new leadership team in china. bringing fresh perspectives and new ideas. i definitely believe we're improving, and every kwaurtd there quarter there's signs of improvement and excited about the growth potential in china. think about it, you know, in ten years, we have products in china grow 300 million to 600 million people, and, you know, we're still going to deliver in the fourth quarter possibly same store sales growth. i think we are making positive momentum. >> mr. creed, we've, on this program, oftentimes, you know, debated, argued over, maybe at times given too much credit to the role that activists investors play in certain

situations. your company has one involved. you have one on the board now. i'm wondering, the kind of decision you make to buy back the stock knowing that it could hurt the credit rating, are you in any way doing things to appease activists investors that you otherwise wouldn't do if they were not involved? is that a fair question to be asked, i think? >> it's a fair question to ask, but i want to assure you the decision made to separate the two companies and decision to lever up the balance sheet was a decision we had made actually prior to keith coming on the board. now, what was exciting for us when they, you know, came forward with their ideas. it demonstrated to us we were on commonground. we got to that position. it was actually really nice to see that they sort of got to the same place, and i have to say that, you know, we got a full board, all the board members

make a large contribution to the success of yum, and very excited to be working with keith and, obviously, keith and the whole board have been, you know, supporters of the division to separate into two global growth companies. >> i understand that you are going to take on dominos in a bigger way in 2016? >> i think the potential for pizza hut is huge. you know, we are the most loved and trusted brand and biggest brand in the united states. biggest brand globally, but, obviously, you know, not as competitive as we need to be in the past. this is not going to be an easy challenge, but confident in the leadership of the pizza hut team, and i believe we can be much more competitive in the pizza category going forward. >> okay. thanks for coming on today, greg. greg creed, fairly new ceo of yum. thank you. coming up, weighing risksing and rewards of the fed hike, and we'll ask what he thinks about

the deal of the day. dow chemical and dupont made it official. more on the plans to combine the companies in an all-stock deal. "squawk box" is back after the quick break. they come into this world ugly and messy. ideas are frightening because they threaten what is known. they are the natural born enemy of the way things are. yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful.

the market's focus is fully

on fed next week, but the guest says we have to focus on the policy path. greg fleming our guest host, president of morgan stanley wealth management with $2 trillion under asset in management. it's about the fed, look past what happens next wednesday and focus on pace and pat? >> that's fair. next wednesday is by and large done in people's minds and looks like they are finally going to go forward. one thing i would say, scott, looking back over the last 12-18 months is they have been tightening in the sense they pulled out of qe. there's already been that taking place from a monetary stand appointment. this is as well telegraphed as any rate rise in our lifetime and decades from here. i think the market is expecting it, but the market reaction, which somebody asks, what's the near term market reaction, hard

to predict, but the market is looking closely at the language in the statement and the signaling around next year, how much, how fast, how frequently everything along those lines. >> any chance of a surprise next week in that they, in fact, don't go? >> very, very lift. i don't think there's much surprise in any direction. i think they'll go. i think they are cautious with the language. they'll be clear that they are going to move it in a methodical pace. i think that they have telegraphed it and telegraphed it and really on message. >> let me ask you about -- i love your comment on the stories of the morning, and that the third avenue barring withdraws as it liquidates. is that a concerning sign to you? >> barring the specific fund, equity market and credit markets are going through a difficult time. yield markets with a difficult time, and we take a close look at that. one thing i say whether it's equity market or high yield or credit markets, you have to back up and talk about how is the

larger economy doing? ultimately, in the near term, things move for reasons, but over time, it's going to be about how is the economy doing, and we're upbeat on the u.s. economy. >> does that sound like a red flag moment to you? >> it depends, scott, it's a fair appointment, depends where we go from here on an economic stand appointment. you know, the u.s. economy could be accelerating in the fourth quarter. when we look into 2016, and i said this before, sentiment is such an important part of this that we lived through so many cycles now, we've been in cycles where people are reluctant to let go of a positive view on the world. that would be the late '90s, 2006 before the credit crisis began. here, the credit crisis had such a huge impact on human psyche, there's reluctance to grab on that the u.s. economy is doing very well, and unemployment rate, this is already one of the longest expansions in the

history of the u.s. economy. >> yes. that makes it interesting. just quick before we go, journal says third avenue is the first fund to halt redemptions without obtaining an sec order. can you reassure people you'd never do something like that? >> i think the facts of that case look like they might be specific to what's going on there, but to scott's point, you stand back, say is this going to be -- the signaling moment is the bigger issue there. >> yeah. >> it's not al all clear to me it's a moment that people look back and say it's a big event, particularly if the u.s. economy plays out the way we expect it to play out. >> is that the same statement you made if i said, are you concerned about what's happening in high yield in general? >> high yield in general, there is a concern because the market has had a challenging time, and credit markets are relative to what's going on in the underlying economy. the question is, where does it go from here? we're upbeat. >> coming up, a southerby's auction report driven by janis joplin.

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when we return, ppi data for november, and a look at u.s. equity futures, opening lower 165 points.

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subscribe. >> there you go. united technologies raising the full year earnings forecast, and a restructuring plan aimed at cutting costs. easy just to say cloud. >> and sounds cool. >> secs from retail sales for november. rick santelli is standing by. >> the survey says for november retail sales headline up .20, a whisker shy of what was expected. up .4 leaving out autos. exautos and gas goes up, .50, half of 1%, and what's known as the control group, what is taken and put it into other calculations like gdp up .6. headlines weakness, but as you get into the details, it improves. all things considered is a good number. only a real subtle revision to

october in the form of exautos, originally released .20 up now.10. ppi up .3, and strip out food and energy, also up .3. higher than anticipated. we looked for unchanged on both, so the market's going to have to grapple with two issues that historically would represent higher yields. rising prices and better activity with regard to the economy. let's see if it holds true here. going into the data point, we're hovering under 220. we are at 220. equities improved, but still negative, and indexes around the world are negative. look at the dax. we continue to digest the great recalibration, others call it a great divergence because of the

central bank against the rest of the world in direction of stimulus and liquidity, and that, mostly, is driving the small pieces when added together to give us a macro view that if you don't believe it, think emerging markets. back to you. >> rick, thank you. for more on the numbers, steve leisman is joining us. our guest host as well, greg fleming. >> that's right. the headline number is the weak part, but the other parts are stronger, the parts that feed into gdp a stronger. i do not understand the government's numbers on cars. i never understood them. they have them bawling. i'll find it in a second here. >> include used cars? no? >> includes used cars, but it makes no sense. we have autos falling ..60%. my apologies to the entire used and preowned car industry. they are falling at .60 and furniture down with strength in grocery stores. bottom line quickly, there's the story of the journal this

morning that makes no sense to me about consumer spending not being strong. what's happening is that the prices are falling. when you correct for inflation and the decline in inflation, which is beyond gasoline prices, it's inside the retail sales number. you saw it yesterday in the nonenergy import numbers that came in. they are also declining. take a look at that gap, the orange line is inflation adjusted numbers. the white line is nominal, and then zoom in, what's happening, the bigger gap we've had since recession, there's strong consumer spending adjusting for inflation. of course, retailers' numbers, their profit numbers are not adjusted, but their inputs are correlated with the cost or declining costs of the outputs. i don't get the story in the journal this morning. it's not accurate to say consumer is weak. >> let's bring in our guest to elaborate on that, reaction, and fed meeting. a former federal reserve governor, welcome. greg fleming it here from morgan stanley wealth management.

greg? >> i want to agree with steve that numbers are positive, should be, and consumer spending is going in the right direction given the fact we have real wage growth at a significant level for the first time in a while. our -- ahead of our global investment committee, mike wilson talked about the fact real wages are in the top vessel of gain over the last 35 years. >> wow. >> filtering through. i agree with steve. i think the numbers are positive. >> what do you think, larry? >> this was an excellent report. now, i do believe that consumer spending was slowing in the 40 quarter, you know, two and a half, not bad. >> right. >> the driver of the economy. it was taking down private domestic demand. this is a freight report really. it gives comfort to me as a forecaster and to the fomc which was going on in any case. this is a really good report. >> larry, you had three in the third, and you are slower at 2.5%, but it's not weak by any

stretch of the imagination. >> the journal's story siays its uneven, which is true. consumers spend money on cars, vehicles, and around the homes, not apparel. >> you're getting it in services. the apparel thing was seasonal, right? there's a problem -- hate to say this -- problem with warm weather, likely to be fishing this weekend, very excited about that. i approach the weather problem with ambiguity myself, but i don't think, when you have the strong auto numbers, and you have the other strong numbers out this, it's hard to have the headline like they had this morning about the gasoline prices not showing up in consumers. larry -- >> i would just say we were not worried about consumer spending in the fourth quarter because fundamentals are positive, so, yeah, we think consumer spending will be above 3%. >> why -- when the reports hit, go back and look at the ten year, which, by the way, given that we're gout about to

approach the fed rate hike, not breaking out lately, and dipping below in reaction to the reports, it was ppi, and now it's right back at that flat line growth. what do you think of that? >> well, this is something the fed look the at closely. raidsing rates consistently in 202016, if the curve flattens, they will move more slowly. they don't want to see that because that indicates growth is coming down. i think, again, to larry's point and what we're talking about here with steve, the underlying consumer is accelerating from a momentum standpoint into 2016, driven by wage growth, consumer spending is healthy, and it is maybe what scott said, certain sectors not as robust as others, but the overall picture is positive, and i think the market reacts to that over time. >> larry, we need a deja vu situation all over again like 2004 and 2005 where the fed tried to move the long end of the curve and incapable of doing it and it ignored the fed that

fundamentally it sees policy mace ticks coming or doesn't see inflation generated by fed policy? >> well, i would see it differently. i think it is a real possibility. remember, that was a situation in which there were developments going on abroad which came to the u.s. this is similar here in terms of global divergence that we talked about, and that means capital flows into the u.s., and it leads to an appreciation of the dollar, but purchases of u.s. financial assets put pressure on long teerm rates. this is something to really watch. >> larry, not long ago, i spoke with greenspan who said, he's not sure actually con numb drum is the right word to use, but it should make sense that as the fed begins raising, you put the bre brakes on the economy so the long end should fall. >> i don't agree. >> could be living through something that makes sense in that regard. >> well, i don't think so. in terms of the fundamentals, market believes the pace the fed moves at is glacial.

the fomc believes it will be historically slow, faster than the markets, and if markets converge to what the fed anticipat anticipates, there's long rates going up more than the otherwise they would in a tightening cycle like this. not a big jump, but that's the likely outcome than rates not moving at all. >> i think larry's right on what he said. i think the -- when the market starts getting closer to where the fed's actually going to go, and you start to see some forecasters saying, you know, maybe it's not just three rate rises in 2016 so when the market goes where larry talks about, long end of the curve reacts. >> one thing, larry, which is that i'm pretty sure at the federal reserve, they are going to be happy if they can just raise the fed funds rate. they are so concerned about all the extra money sloshing around, and one of the days, we have to get technical, sorry, joe, on the show about reverse rates and all the other stuff, interest on

excess reserves that they have to do to raise the rates just ta 25-50 because of the extra range, they will be happy to just hit the range. >> why are stocks selling off as we have a good economic report here? >> this is often a knee jerk reaction. if the markets believe that it's more likely that the fed is going to raise rates, and i don't know if it's a given deal, changing expectations for december, but you often see the equity market go down when it should be going up. >> down all morning. >> been down all morning. >> down all morning, but after the numbers came out, it's down by another 30 points on the dow. >> in the early stages of a tight -- in the early stages of tightening cycle, it's good for equities, it pulls up rates. it's going to be slowing growth that it turns around. >> got to leave it there, gentlemen. larry, thank you for joining us in morning. >> pleasure. >> with our steve, and greg

sticks around. >> quick thought on the market? >> we have to wait and see because it's going to be weeks and mornths to see how the markt digests. i agree with larry, in the near term, hard to say one day or one week really reflects what is going to happen from a market stand point or reaction to the fed. >> okay. ford motors plans to invest by 2020 in programs to broad offerings of hybrids and electric vehicles, and the ceo announced the auto maker is launching a new version of the focused electric car with a 100 mile range and recharges, and there's vintage cars last night, and janis joplin's porsche, and c brought in more than the top estimate. wow. it was white when she purchased it, and used at the rock n' roll hall of fame in cleveland for two decades, and another sale,

'56 ferrari stelling for $28 million. wow. when we return, the hoverboard is the hottest gift this holiday season, but buyers beware, safety concerns and knockoffs abound. we roll into the keep squawking segment. futures at this hour, red picture on the street. at least in implied open thus far. ♪ today, we're seeing new technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies,

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welcome back, three biggest

airlines in the u.s. banned hoverboards. american, delta, united all announcing they no longer allow devices on the planes due to safety concerns. delta found the strength of the batteries in the boards exceed government limits for what's allowed on an aircraft. the batteries often are not labeled. virgin and jet blue banned devices, southwest allowing them for now, but evaluating their policies. scott? >> today's keep squawking segment, while the scooter does not hover, it's a hot holiday gift, and ebay sold one every 12 seconds on cyber monday, but some are slowing their role. there are dozens of hoverboard related injuries in the country, and plus reports of it explo exploding. look at that there, burst into claims. commission launched a high priority to analyze which hoverboards are safe and which are not. earlier, we asked you if a hoverboard was on your wish list despite the dangerous factors. frank tweets, no, he says he'll

only by one if he's planning a barbecue and wants a quick fire. ouch. here to take us on a test ride is jolene, chief marketing officer at inventist. when you see the videos, you hear a twitter say something like that, what do you think? >> you know, it's really disappointing for us to hear that because we spent two years in research and development with the manufacturer of the original patented hover tracks, and a lot reports stem from the illegal copy products that are, in fact, you know, not based and don't have the same quality parts and pieces this our product has. >> can you 100% guarantee the safety of the product? >> we offer a one year warranty with a high quality sony battery that's been in other products, and we've been selling them with zero incidences for three-plus years. >> have any one of your hover track items have a problem?

>> no. >> not even one? >> not one. >> with a fire or anything? >> not one. we source ourselves high quality parts and pieces where the illegal copiers are not doing that, but substituting poor quality parts and pieces, and that's why we run into these issues. >> yours are more expensive, anywhere from $599 to $sa 1500. how do you think the models offered for a couple hundred dollars, what's in them? what's going ton? >> great question. we want to talk about that. you know, the battery and the motor that is inside the hover tracks that we have, it's a thousand watt moe e ttor so the product can stabilize you and provide support, key for safety. in addition, rather than a no-name battery with unknown watt hour safety, ours has 96 watt hours which is exactly under what's allowed on airplanes to be safe. d >> you can travel on an airplane with your device? >> correct. >> who is buying this?

millennials buying them? seems like it's really ramping up for you. ? right. >> who are the buyers? >> it's everybody. we're just as amazed as everybody else as how popular it's been. everything from children all the way up -- we recommend 13 and plus, but people buy it for their kids. we see big kids riding them, adults, 35, 40. >> is it american, u.s., or around the world? >> the middle east is a big hot area for this product, the u.k. >> is it possible to overcharge these devices, overcharge the battery? >> with low quality illegal products it is possible. >> with yours. >> it's not. >> doesn't matter how long you charge it? doesn't come with a recommendation, charge for x amount of hours? >> well, we recommend -- same with the laptops, they recommend for optimum battery, you unplug it after you charge it for an hour and a half, but ours is not

going to blow up if you leave it plugged in as with this happening with other ones. >> indoors, outdoors, does it matter? >> recommend staying on smooth surfaces, indoors or outdoors, as long as it's smooth, you are good to ride. >> how fast can it go? what's the maximum speed? >> well, it could go as fast as you want to go, but we govern it at 5 miles per hour. >> how fast do you want to go? >> 100 miles per hour? >> thank you so much. >> thank you. when we return here on "squawk box," jim cramer from the new york stock exchange. futures now, pressure across the board. we'll be right back. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions.

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walmart says its chief marketing executive will be leaving. the move comes as walmart aims to appeal to higher income shoppers. shares of walmart down nearly 30% over a one-year period down a third of a percent at this hour. >> pressure on markets across the board here.

let's get down to the new york stock exchange. jim cramer joins us now. what do you make of what's happening this morning? >> i have to tell you the truth. ever since we had that employment number i said we have to be careful because employment number was too high. i listened to your guest. there's this whole dichotomy of three and done. all that matters is it's going in the wrong direction. economy, surface numbers on employment are too hot and everything else is too cold. the watershed was the $90 billion energy company that had to cut the dividend. it says smartest people are dead wrong on oil. when i saw oil drop down and futures were up at 4:30 and down big, that drives it. doesn't matter what individual companies do right now. people have to recognize that oil going down is going to take this market down. if they haven't taken some profits going in as i said on

the show, you're going to get hurt. this is readjustment into the new regime and it's not as good for stocks as it used to be. >> jim, when you factor in the positive impact of oil prices on the consumer and some of the numbers we were just looking at with larry and steve, how do you feel as we get into 2016 if the economy really does accelerate, what about the impact of that potentially on the market over the next 6 or 12 months? >> i wish i could see where it's helping. many of the consumer product companies are reluctant to talk about possible gains. corporations got the best sense of how people are spending. they're not spending that much. they're trying to save at a very low rate because of interest rates. there's a couple restaurants that told me that consumer spending is up. not a single retailer told me that consumer is up. whether it be walmart or restoration harbor last night. it's promotional environment.

it's extraordinary how wrong everything is right now just when the fed wants to hike rates. i accept they want to hike. >> big show coming up. >> give me an industry that's doing better than three months ago. give me one industry. i don't have one industry. >> pro football? >> maybe. >> the eagles. >> i'm downgrading everybody. i'm keeping panthers as a bye. i'm downgrading the rest of the league right here. >> got you. see you in a bit. we come back to wrap up the week that was on wall street and look ahead to next week's big fed meeting. look at futures down across the board. dow opened lower by 157. big day?

ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. 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. this holiday season, gi see you brought a friend?

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its official, i work for ge!! what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is? our guest host, greg flemming flemming joining us. how will advisers feel going into 2016? >> for our financial advisers, 16,000 and their clients, 3.5 million clients, it's been a challenging investing year given volatility in equity markets and the whole impending rate rise coming off zero rates. i think heading into 2016, there's a lot of caution. jim cramer talked about that

from an industry standpoint on the corporate side. a lot of caution. you know, cautiously upbeat as well in the sense that ultimately as i've said multiple times on the show, the underlying economy is going to drive where markets go and the u.s. economy looks like it's accelerating in the positive direction. >> when you hear jim saying the smartest guys, biggest guys in the room got this energy thing wrong and with oil moving further lower this morning, how much additional pressure could that bring? you've seen these cycles before, greg. how much more pressure could that bring to bear on markets before the positive story shakes out? >> clearly the energy sector has a huge impact directly there. one of the positives that joe was talking about earlier, the tailwind from these lower oil and gas prices on the consumer and many industries across the economy when the price of oil is where it is, there are a lot of winners from that as well as those that are more challenged. >> airlines are doing fine. >> airlines. again the consumer. i think the u.s. consumer is in surprise mode on the upside.

there is a lot of caution in terms of our clients and advisers. if the economy does accelerate in 2016, it could be a much better year than people are anticipating. >> you think it will take a while for people to get their real arms around what the first rate hike in nine years actually means for investing going forward. >> i think that's how they think about it. i think it's been overdone though. it's 25 basis points off zero. >> it's the start of a change of a cycle and policy. >> one thing people will look at closely is what the fed says in terms of timing. will it be three more in 2016? four or five more? do they actually have to move faster because inflation is starting to move and trying to get ahead of it. >> what about geopolitics? how concerned are you about the events around the world? >> you know, concerned. what i would say and i always say that in response to this question. if you look back three years, five years, ten years, we've had geopolitical events on a regular basis for decades around the

world. it's a very complicated, complex world that we live in and things happening on geopolitical front all the time. we haven't had many years if you look back over the last two decades where you haven't had geopolitical risk. >> thanks so much. make sure to join us on monday on "squawk box." for now, "squawk on the street" is up next. good friday morning. welcome to "squawk on the street." i an historic morning. big sell-off in the making as oil, currency, high yield sparking investor worries today. we'll get to that. europe is down 3%. retail sales in the u.s. were