now. >> good morning. welcome to "squawk box" here on cnbc. i'm kayla tausche. along with joe kernen. becky and andrew are off today. news crossing the wires. european yoonon ruling against apples tax. ireland gave apple illegal benefits worth up to 13 billion euros. shares of apple in premarket are down 1.5%. analysts had expected the fine could be anywhere from $200 million to $19 billion. really anyone's guess here. we have julia chatterley standing by in brussels with more. what can you tell us? >> reporter: as you quite rightly said, the estimates for this tax bill and the clawback

that was going to be demanded here by the european commission were huge. what we've got here in $13 billion is significantly away from challenge the ruling. and you've got the u.s. treasury that they feel companies, u.s. firms operating europe are being targeted unfairly as well. i think behind the scenes here, there's going to be a lot of kons nation at the significant size of the charge

reform in the interim because if the tax laws there change and some of these companies repat rate the cash they're holdi ing overseas, that's moves the cash out of the way of the european legal system. then will they ever get the money back. if they do push for a legal challenge here, the question is whether europe gets hold o tv monof the money or not. >> we'll have more from your later on this hour. >> in terms of talking about what it means. number one, you've got the eu.

ireland entered into this in gait v good faith. apple entered in in good faith. obviously the country says they can do it. do the system. worked out well. then the eu because ireland is part of the eu decides oh, no, no, no. you may have some sovereignty, but you're part of the eu. then they go back and tell apple, sorry, in hindsight, we're going to change everything we entered in to with you because the eu says we can't. once again, a fundamental flaw of those guys over there. >> eu is ordering ireland to recover the back taxes so the eu is saying find out what's wrong with the system. go back to the company you've been doing business with for well over a decade in this exact structure. the eu says it was happening since 2003. >> the eu should look across the water at the uk. say, maybe that's something we need to -- anyway.

i think that should have been that way for a while. i don't know. 13 billion. >> euros. >> and they go 200 over there supposedly. that's a lot. that's not 200 million, for example. the other thing i think about, i like the treasury. i haven't seen the treasury ever not like taxes being paid to anyone, and as a globalist of th, this administration, it's good to see they get the taxes instead of another country. at least they're not saying, hey, anyone that socks it to a corporation is good. at least they want to bring the tax money back here. so i can see that. i'm surprised they are taking apple's side. >> it's interesting to hear the talk about okay apple has $230 billion in cash. this is the portion of it that is sitting abroad.

i remember years ago when the bank's were doing mortgage fraud settlement with the government one of the reasons they never wanted to say how much they had in reserves they didn't want that to be the sticker price the government went after. the eu had no problem saying here's the size of what we're going to demand to recover from you because we know that you're good for it. >> the eu with some of the anti-trust stuff against some of our leading corporations that happen to do things better than competitors so the eu considers them pseudo monopolies because they happen to do something really well. i don't like this. if you were the u.s. government and you were more nationalist you might say back off. get your own structural problems in order and grow faster th than .5% and you won't have to keep trying to shake us down. anyway, meantime mark your

calendar. apple, i told you there's a lot of different ways of looking at it. >> i don't think we're marking our calendars anymore. >> no. hopefully you were using a pencil. if you did mark them, erase that. now we're going to talk about mondelez walking away from proposed bid or hershey. ending talks of acquisition after a month long campaign saying it was disappointed with the outcome. would have created the world's largest candy maker. hershey shares are down almost 12 percent while mondelez shares are rising. meanwhile housing tops the reports. home prices in the 20 biggest metro markets are forecast to have risen more than 5% in june. same pace in may. 10:00 a.m. look for august consumer confidence. joe, we have two days left of trading in august.

three and change -- three before we get the jobs report. people are going to be trying to figure out how to parse this data and what it means for what's traditionally a low volume week. that means the volatility can be higher. >> lowest volume day of the year yesterday, which was two days after the super bowl of monetary policy. supposedly and yet people -- today europe is up a little bit. >> that's not what we're doing. >> no, we know how important each and every trading day is. let's check on the markets this morning. i saw the dow might be up a little bit. up 8 points. the s&p is basically flat, down about .5 point. >> it's worth noting the apple news did that i can the futures down. all three had been implied to open in the groon. >> i want to see how the progressive websites write about

this. they'll take the -- as globalists, they'll take the eu side. it's nasty for krorpt. they want them to go somewhere. let me look at what the huffington post says and some clown is going to write it. >> i'm sure there will also be a conservative thread that says the money and jobs and taxes shouldn't have been over there in the first place. they should have been here at home. >> that's not conservative. that's populist. >> they're blending together. >> i think the conservative would say, look, you work within the framework of global laws and you do everything you can to pay the lowest level of taxes you can to maximum profits to shareholders. that's the normal free market conservative would say. >> normal. traditional. >> there aren't anymore.

hard to find these days. i don't know what i am. anyway, let's check out europe. everything was up more than 1% earlier. moderate add little bit. you can see germany and france up nearly 1%. we were up yesterday. i don't know if is this is following through from the u.s. markets or whether it influenced us today, there's shanghai. which i look at now. i don't know why. japan is more important. shanghai was down at 26, 27, 2800 and we were worried. it's been shol id above the 3,000 level for a while. let's look at oil. a feature yesterday because it was down. it's up a bit. between 45 and 50 it has been in a pretty tight range. ten-year was moderating below 1.6. now 1.587. following all that talk and anticipation on friday. the yen has been weaker against the dollar recently.

the euro 1.11. the pound, 1.30. let's take a quick look at gold. may be another hike at some point in the future. >> maybe in a decade. >> there's been one. there's been one quarter point hike in the last ten years. >> i was setting you up for that. >> they're likely to do a hike at any time. they're crazy, nuts, insane. for more on the markets, someone did write a piece on how many times you can cry wolf and people with janet yellen now just like janet, you know, you can't job own forever and pretend you're going to do something and back off. people stop believing. >> also people who say there had been such a stampede after yield into some of these dark pools, but less liquid assets s extrey high yield, distressed debt and you have to job own quite a bit

to get people moving there the asset classes. >> really. i didn't think about that side of things. you have a detailed sort of understanding of a lot of this bond stuff. >> i just try to be the counter chance balance. that's my job. >> that's a good idea. let's bring in ed campbell. qma. executive direct of the. ed, i think we've talked before about this. you're latest thing is that post-brexit, markets have rallied. not deservedly so without any -- without any fundamental underpinnings or reason why. did you think before brexit if brexit happened it was going to be a disaster. >> i thought we would see a selloff and eventually recover. >> are you still clinging to that wrong notion. the markets are wrong. ed campbell is right.

they went up, but they shouldn't have and sooner or later you're going be right and come back down. >> we've been active this year. we started the year off defensively positioned which turned to be good because we had big selloff at the beginning of the year. played that rebound pretty well. i'll admit post-brexit i haven't expected the rally to be powerful and it hasn't been. it's been driven by expectations of monetary policy easing. so i think heading into the fall we're going be vulnerable to a bit of a pull back here. nothing as dramatic as what we saw in the beginning of the year, but because there's no recession on the horizontal, we ultimately recover from that and rally into year end. >> you've been looking for the pullback as the market has rallied for the past four months. looking for a pullback the entire time. >> we saw the big move in july. haven't done much in august except tread water. been low volume and people are

on vacation. as we get into the fall, we have a lot on the calendar. u.s. elections. italian referendum. i think we're going if get a fed rate hike this year. as you begin to hear more hawkish rhetoric out of the fed. >> do you describe any discounting mechanism to the markets at all? how do you know it's not looking at better corporate earnings 6-9 months from now. >> we've been in this earnings recession for about six quarters mow. >> most people think we're coming out of it. >> the expectations are that we're coming out of it, but that's still more forecast thae rather than fact. very low gdp growth and margins high. a lot of room for disappointment in those numbers. >> market is not anticipating that rover in earnings. that could explain it. >> it could explain the post-brexit rally.

>> uh-huh. >> along with monetary policy the expectation that we're at an inflection in earnings, but as i said, that's still more forecast rather than fact and a lot of room for disappointment there. >> do you diverge from this at all. >> somewhat. we expected the rally post the uk referendum. >> if i check, will i find that's true. >> absolutely. >> okay. probably here on "squawk box." >> he's not going to check, but if he did. >> if i did. >> you absolutely would, but our view this morning is a perfect example of the fact that this point, the market is pricing in virtually no political risk. we see the id making noise. we know there's going to be an election in front of us. we too

gains. the market currently expects earnings growth near 14%.

digestion particularly after the uncertainty of the election. whoever wins whatever the outcome voters will be satisfied they made a choice. >> you think the economic doomsayers who say the reaction of the u.s. markets post election could be something that came to brexit. you think that's completely unfounded. if you look at it, maybe it is post-brexit reaction. and initial shock, but a realization that first of all policy takes a very long time to implement. there are checks and balances in the u.s. and things tend to have an adjustment period and i think that's why you've seen stocks rally in europe as well. >> by the way, joe, our research saying the opposite. low interest rates are bad for multiples and very low interest rates as you approach zero are bad for multiples and stock

market returns. a normal environment is much better for multiples and better for stock market return. >> the whole discount model of financial analysis. >> if you go from high rates to medium rates, r that's correct. if you go from medium rates to low rates. that's relationship breaks down. >> no alternative. >> that relationship breaks down. it's a reflection of the economy being sick. >> if i can get a 3.5 yield. why does that not make 3.5 more attractive? >> it may be a reason to invest in stocks for the extra yield. >> have you ever heard that low interest rates are a contractionable. >> it doesn't mean higher interest rates. >> we have heard of it. you've seen it in japan. >> we would say the low interest

rates that we've had in the u.s. have sent defenses high sgler if the low interest rates result from negative growth or from the recession after recession of slow stagnant growth, then it's sort of like talking about the tail being -- anyway, all right. thank you. julian and ed. we are remembering, gene wilder this morning. the actor died from alzheimer's disease. best known for blazing saddles, young frankenstein and willie wonka. i love the original. i liked it even more at the johnny dejohn johnny depp reboot. there's a seen.

he walks forward, the actor himself, he falls straightforward, flipped over and gets up and starts walking and i think his top hat stays on. he takes his top hat off. the actor himself did it. he works on that for days and that was one of the coolest moments of that. i like the full figured kid. what's his name? agus tus. loved chock las. rub it all over his face. he was -- everybody loved this guy. i went to a premier once in 1989 for this really stupid movie called see no evil, hear no evil. one of them richard prior was blind and gene wilder was supposed to be deaf and they worked at a newsstand and there was a murder. they couldn't really -- one guy couldn't communicate with the other. they thought they had done the

murder. they had to clear themselves even though one was blind. it was a preposterous thing. they made it work. >> he's one of those recognizable iconic actors you see him on screen. you don't mistake him for anybody else. >> i read that he was in therapy when he was younger he took care of gilda for years and year. >> he was 83 years old and alzheimer's is such an awful, awful tragic disease. >> it is. he said he didn't want people to -- when kids saw him, he didn't want the downer of

alzheimer's. when we come back on "squawk box," the eu ruling that ireland must recoup $14.5 billion in back taxes from apple. the stock fouling. that's bringing the market down with it. more on the story straight ahead. also, cnbc has obtained hillary clinton's daily schedule while she was at the state department in 2009 to 2011. eamon jabbers has read all 3700 pages and tell us what he learned. up next. road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering,

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wonka. welcome back to "squawk box." cnbc has obtained hillary clinton's schedule in the state department. eamon jabbers has read them all. 3700 pages. >> i'm sadly neglect manager twitter feed. we obtained these documents last week. these are the same documents the associated press used to do their big story last week. we've been going through them and looking at all the meetings and everything that hillary clinton did from early 2009

until the middle part of 2011. that's what has been produced so far by the state department. some of the spots on the documents are heavily redacted by the state department. we don't have every single meeting hillary clinton attended, but you do get a sense for who had access to hillary clinton and ha she spent her time doing. mostly that was traveling. she was the most widely traveled secretary of state in history. she visited like 112 different countries over the course of her tenu tenure. you see that in the documents. you see the billionaires who met with hillary clinton during her tenure. bill and melinda gates. sandy wile of citigroup. warn and sue buffet of. medical repo

mort zuker man. the warn and sue buffet meeting is one of the few where they give us a topic of the meeting. there they were meeting to discuss the buffet foundation. interesting with the clinton foundation in the news so early on she was talking to warren and susan buffet about their organization. a whole lot of detail here in terms of what hillary clinton did and where she was on planet earth every day for two and a half years. >> you heard the rap from critics that one -- whatever they're called depending on the airline, that doesn't necessarily add in to accomplishments. riding around on a plane and visiting different places, that doesn't necessarily mean that you are accomplishing a lot of productive things as secretary of state. i don't know what you point to there. the iran deal, i guess.

>> one of the interesting things you get the historical detail of her tenure. particularly the weekend of the bin laden raid. on friday night after president obama had given the order to go ahead with the raid and the principles that were in the loop on it knew the raid was going to happen friday night hillary clinton goes out to a private dinner in washington with ellen tousher. a former congresswoman who is big on intelligence issues. the next day on saturday, they were all determined to keep the schedule sort of to the normal schedule that they had publicly announced so hillary clinton went to a wedding actually on saturday. and then on sunday she goes over to the white house at about 12:30 in the afternoon and there through 1:00 a.m., midnight, 1:00 a.m. that's the time you see the famous photo of all the principles during the bin laden raid watching the live feed of the raid.

you get some sense of what her life was like over the time and who had access to hillary clinton. all of that is posted up on cnbc.com. you can look at every single meeting that hillary clinton had over that period of time on our website right now and look fernando rodney yourself and decide what she spent her time doing. >> we were with the president the night of the raid. were you? >> that's right. >> just a small intimate fwatherifwath eri gathering of a few thousand people. >> joe, you were at like the a table and i was at the kid's table. i'm not sensitive about that. >> and rightly so. >> sure. absolutely. >> and success has many fathers. a lot of people taking credit. failure, no one wants to claim. >> and speaking of failure, one of the things dwoent have from he's documents is the day of the benghazi raid. that was. >> i wasn't going to use the b word, but you did.

>> what we have does up to 2011. the benghazi date was 2012. has not been produced yet. at some point we will see the daily schedule for that day. you wonder if we'll see that date before election day. >> or if that will be heavily redacted. >> what difference does it make? that's my two cents. coming up on "squawk box." startups in focus. ask the crow of web.com what small businesses can do to compete with online giants like amends. as we head to break, take a look at s&p 500 winners and losers.

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welcome back to "squawk box" on cnbc first in business worldwide. had been more positive. you would think apple has something to do with that. new this morning, european union ruling against apple's tax arrangement with ireland.

paid almost no tax and asking ireland to recoup $14.5 billion in unpaid taxes. apple is going to appeal the decision and julia chattily are join us with more in a few minutes. struggled amid the rise of giants like amazon, but smaller players need to start leveraging online competition if they want the stay afloat. joining us now, david brown. ceo of marketing firm web.com. we tend to judge small business sentiment by the nfib which some say plateaued in recent months. what do you say? i say the number haves been very stable. i've look at nfib and it hooufing up and down. basically what it's telling you, we've been in a depressed state of ability. i'm beginning to see more new

small business creation. a lot of energy in the market. more millennials are focused on being entrepreneur and frankly even more 45 and 50-year-olds are throwing their hat in the ring to start up small business. >> one issue is you have to spend to grow. pay a lot of money to market heavily. where are they spending and how much does the average small business have to plunk downtown to get down to get an uptick in sales. >> you bought a ad or you put things in the mail. today it's all digital. 90% are looking for information or shopping online today. and, in fact, most are using mobile devices to shop. that is a major change for a small business. they have to go online. they have to go mobile. they have to figure out how to use all of this amazing tech knowled technology and do it quickly.

it's not a fast moving part of the marketplace. takes young influence to make that move. we're seeing small businesses spend from $100 a month to thousands of dollars a month. >> what does that get you? i do calligraphy in my free time. if i wanted to buy ad words and start a side hustle for heimyse how much would i have to spend. >> good news, calligraphy, you're not going to have a lot of competitors there. not going to have a lot of bidding. a few hundred bucks get you in the game starts generating traffic to your sight. most of our customers who have kbraet success online are spending in the low thousands of dollars. you might say that's a lot of money for a small business, but most key words likecalligraphy, you could get a small return on investments. >> where are you seeing sector product wise the most upside for

small business creation. >> a lot of service being created now. accountants, lawyers, people losing jobs or giving up on being in the corporate viern environment and creating their own ideas. we see exciting things. a business that just start add shoe business. the guy was a runner. tired of shoes that hurt his feet. he's a decath leet. you can run a marathon in the shoes he created or a father who decided his son needed help with autism came up with tasty and healthy treats to help are autism. he's

>> so in terms of the backdrop of regulatory -- regulatory and being able to get financing from small banks, from regional and local banks, on a scale of 1-10, how much more difficult is it than it should be right now? do we need to get out of the way more? this is the life blood of economy. job creation. most important thing for us to try to engender and i don't think we do it. >> i think there is a cloud. i said stability and i even used the word depressed. >> different than the cloud. >> this is a bad cloud. >> this is a bad cloud. >> this is a rain cloud. >> in you don't know if you're taxes are going to go up. >> filling out paperwork when it's half of your workweek. >> you sit and wait. >> i'm not getting a loan because. >> that's right. >> there's problems. >> there's definitely problems. >> there's also optimism. people wake up one day and say i'm going to go form my own

business andky do it. you've have that position going. >> do they make shoes i could poll vault or something? i'm thinking flubber. you don't know flubber. >> do i. they're not like that. they're light and comfortable. >> if you can already run a marathon, they're good for you. they won't let me run a marathon. >> could have happened. >> david, it's great to see you. david brown. coming up. joe will poll vault. >> there's a good commercial. >> better policing through technology. ceo of mark 43 tells us how cloud services, good cloud services are leading to

welcome back to "squawk

box." wilfred frost has made his way here. he's going be with us the rest of the show. >> that was a speedy record. >> i got here 24 minutes past, but i chilled in the background a bit. >> you already had makeup on. >> apparently i needed a touchup. >> wipe some sweat. >> exactly. you talk about marathon. just did a quick six mile stretch. >> you're not scheduled to be here until 7:00. >> can you just sit there and look exactly like you look right now. >> you have 16 minutes of things to say which is great. >> be part of this interview. i'm growioing to include you. scott crouch is the co-founder of mark 43 a software company putting crime reporting data in the cloud that's been adopted by

thousands of law enforcement professionals in washington, d.c. if you watch any of the realistic that's why where i get everything. watch everything like the wire or something, cops dread that initial report that they have to file. they almost don't want to report the crime sometimes because it takes hours. you address that as one of the things you to here; right? >> it's true. what we saw and started the company was the softd ware that police are counterly using was built in the '90s. using technology that takes two to three hours to do something that should take 20-30 minutes. you have officers sitting behind the desk doing paperwork, not patrolling. >> i've seen health care companies if doctors can share records, you don't -- we won't prescribe the wrong medication. there's so many ways and it's applicable to i'm sure to police work too. you would love immediately to have access to any priors or any of the information that's already out there about the person that you just are dealing

with. >> you absolutely need to. it's a matter of officer and community safety. the way the current system is set up is jurisdictions are separate from each other. they could be suspect if crimes a city away and be nothing on that person. what we need to do as a technology community is give back to police officers to first responders. put them in the cloud and connect the departments together. >> there are a lot of things police departments would do if they had the slush fund or the extra money to do it. how are they paying for this and where are they getting the budget for it. >> it's more affordable than other solutions. we're not going in there saying you need to pay us $20 million up front to afford this massive large sum. it's subscription service. we make sewer ure it fits withi their budget. >> are they rights to choose

across forces and states. or is 245 fairly simple. >> there are in some places. it's an opt in procedure for these departments and they all opt in. it's kind of the conception that police departments don't want to share data is just over. they know it's necessary in order to keep serving the community. >> did we have a nationwide data base already or could that use improvement as well. >> we don't have one of those. when you look a the the databases that need improvement in america, it's a central criminal data base. if i'm pulled over in miami and then i'm pulled over in seattle two weeks later, they need to look at the exact same criminal record across those states and currently they're not. >> you should be arrested for being so dam young doing all this. i just turned 25. >> you got an mba from somewhere. >> no, just a bachelor sgls from where. >> harvard. >> the real harvard. >> yes, not the fake one.

>> you were on cnbc before, like how long ago. >> about a year and a half ago. >> you were 23 then. >> now you're an old man. you just raised $27 million. >> we raised $41 medical total. >> growing the team and product. >> you're calling me sir because i'm old. >> it's just a habit from working in policing. >> yes, that's good. i like it. i like it when. >> joe, would you like me to call you, sir as well. >> in terms of respect and sonority, it might be comfortable. if you feel comfortable for that. what was the last thing i was going ask you. that was it. if i think of it, before you leave, i'm going come up with it. we have breaking news out of -- it's actually not breaking. we already talked about it. >> thanks for coming in.

let's get back to brussels. european commission ruling on tax deal with apple. find julia chattily with a special guest. julia. >> thank you so much. i'm actually joined by europe's commissioner. thank you for joining us. >> pleasure to be with you. >> clearly apple is not going to be happy here. the u.s. treasury is also accused you of unfairly penalizing u.s. firms in europe. >> of course identify i've been looking into this. when you see cases over the year, u.s. companies play a very limited role. we have a strong obligation obviously for equal treatment to any company in the u.s. single market. >> so you're saying apple has acted entirely unfairly here in paying far too little tax. >> this is a company making a lot of profit by selling wonderful products to european customers. apple have set up in waying they

themselves are completely in the good right to do, but ireland and then system. and then they will take a look at it. that is the most probably situation looking forward. >> could this number be reduced. is this a worst-case scenario? >> i think and maybe u.s. authorities would also have a look at the cost sharing agreement if they will is fair because that is obviously a very important thing.

>> this case dates back 25 years and in certain cases, what's your assessment of the current setup between app and will the irish tax authorities. do you want to see changes to what's going on today? >> it's up to the irish authorities to make sure the setup is in accordance with >> reporter: you've also got investigations. >> are you trying to send a strong and bold measure here to u.s. multinationals in europe that you can work here but

>> reporter: thank you so much for speaking to us. the competition there. guys, i'll hand back to you. the commissions case is not about how much app m pays in taxes. it's about which government collects the money. have a found andcollects. will apple follows the law, pays all the taxes we owe wherever we operate. we will appeal and are confident the decision will be overturned. >> which is why the commissioner just said apple was within its right, ireland was not within its. more "squawk box" coming up. g a. now that the train makes it easier to get here, the neighborhood is really changing. i'm always hopping on the train, running all over portland.

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coming up on "squawk box," the fed will be watching closely on friday when the labor department releases the august job report. we'll tell you how the number could change the central bank's plans. that's coming up.

no luck for the irish or for apple. the commission ruling they owe millions in back taxes. the reaction straight ahead. where's private equity putting money to work? scott sperling talks business trends and the art of the deal. plus his take on who will win the white house and get the economy growing. and the dream chaser getting ready for liftoff, but can the sierra nevada corporation keep up with the big boys like spacex and virgin galactic? we hear about the budding space 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" here on cnbc worldwide. wilfred frost as joined us if

you saw in the last 20 minutes of the 6:00 a.m. hour. and studio's scott sperling, thl partners coco-president. he's the good sperling we have today. no, i'm kidding. i love gene. in the futures this morning, they're indicated a little bit higher. you can see the nasdaq is down. once again, the eu -- we had some really successful companies over here in the united states. anyway, check out the price of oil at this hour. it is not doing a lot today. it's up 29 cents to $47.28.

plus interest. let's get a live update on the situation. julia joins us with more from brussels. >> reporter: good morning, wilfred. as you quite rightly said,

and that's not fair. guys? >> what was the takeaway from that? was she saying the fault in terms of who wasn't playing by the rules was more the irish or apple? and who's the blame on and also

you asked her about with this based on past situations or current situations with irish tax law regarding apple today? >> reporter: yeah. it's a great question, wilfred. and i did ask it whether or not she believed they've acted appropriately now. to look at the arrangements they set up. basically giving apple unfair competition relative to other companies in europe. i think this is the critical point and the argument they will make once again to the u.s. treasury, they're not trying to penalize u.s. firms operating in europe. they're just trying to maintain a level playing field here. it is a moot point. but is it fair that a company like apple pays a tax rate of less than 1%? it's a big question. and to go to your other point here as well to look beyond this, she said it's not for us to pick at the individual details because obviously

ireland have been trying to sort out their tax arrangements and make it a better competitive and more level playing field here. she kind of avoided answering, didn't she, watch this space. wilfred? >> thanks very much. julia chatterly live in brussels. another big story this morning, mondelez walking away from the bid to takeover hershey. in talks for a potential acquisition after a month-long campaign saying it was disappointed with the outcome. the combination would have created the world's largest candy maker. shares have reacting quickly. hershey's dropping 11%. mondelez getting a bump of 2%. and saturday news outside the business world. we're celebrating gene wilder. he died from complications of alzheimer's. wilder was 83. >> and it was not a big success, willy wonka when it came out. and it became more and more -- >> a cult film. >> yes.

to more and more generations. >> epic. >> it is epic. >> no kid misses that film. >> and veruca, each kid was classic. and everybody forgets where he says to the cute little kid that was -- what was his name? the main one that got the golden ticket. >> charlie. >> yeah, the kid with the blond hair where he says you're going to have -- gene wilder, playing willy wonka. writes in blood. no wonder he settled so quickly. they needed to get that behind

them. >> the best scene in the original is the oompa loompa scene. >> although i'm sure that's exploitive. i don't know. >> gene wilder will certainly be missed. he was 83 and died from complications of alzheimer's. meanwhile, steve leisman is just back from the mountains of wyoming. just in time to count down to friday's jobs report. welcome back. >> thank you, kayla. >> i see you found your way back to a suit as well. >> yeah. i mean, i was hoping maybe we could go to the outdoors look on a permanent basis, but i don't have approval. >> you were like mr. cabela. >> did it work well, you think? >> for the moment let me try to impart some information to you. let's look ahead at the jobs report.

we're looking at 180. for adp, that's tomorrow. then jobless claims, that low 260 range. 265 that suggests the friday august payroll numbers should be strong again. looking for 180. unemployment ticking down a tenth 4.8%. wages up 0.2%. the clear question is this. if we're at the expectation, does that mean the fed hikes? and we'll get to that in a second. there's disagreement on the federal reserve. that was evident from jackson hole. efr evercore picks up on this. he said the consistency in policy communications likely reflecting divisions within the committee that will test yellen in the weeks ahead. one thing i also picked up in jackson hole was a lot of confidence in the outlook. take a look right now at the q3 cnbc rapid update. now looking at 2.7%. that's up 0.2% from yesterday on

the strong spending numbers from the consumer. the range is pretty wide, though, 2% to 4%. and that's a big jump up from the second quarter actual 1.1%. remember, though, we were looking for 2.5% going into the second quarter. we only got half of that. hopefully that's not the case this time. but the fed is banking on a rebound. to me i think if we hit it, we're more than likely to get a rate hike this month. sorry, september. that's my call on this. i haven't had a chance to read all the commentary. >> have been doing a lot of -- >> you are literally on the edge of your seat. >> we have been doing a lot of analyzing of every move the fed makes for four or five years now. every nuance. every thought they had. probably just a coincidence that the economy can't get out of its own way. it's probably not related to that, right? >> that the fed is so low -- so you're -- >> maybe it's just coincidence that they're such a huge part of our life and so important in every facet of the economy

globally, but it's probably just coincidence we can't grow over 1%. probably has nothing to do with them. >> i'm just not sure if what we hear is that the reason why growth is so low is because productivity is so low. let me finish the point, joe. that i'm not sure what low interest rates have to do with low productivity. are low interest rates making companies less efficient? >> i know somebody to ask that very question. and that's dean who is a former executive at the federal reserve. also scott sperling of thl is here. he's going to be our guest host for much of the morning. but do you think that productivity is the fly in the ointment here? >> productivity is half to the potential growth. it's about labor force growth. productivity has been going down. why? nobody really knows for sure.

the closest you can do is probably link low productivity -- you know, the link to the interest rates is there is an argument to be made that companies that are maybe less efficient that should be transferred to stronger hands or different hands, that isn't happening. that's about the only argument that i've heard made that can create a link between low interest rates. japan is where this argument has been made in the past. is it happening here in don't know. the evidence is, you know, you really haven't seen the evidence of that. but that is the one possible link. so here we are. you know, the reality is the potential growth is low. the interest rate should be low. i think joe's absolutely right. we've been looking for five years at each move, and each move the fed comes to the edge and says we might raise. then they usually have backed off with the exception of december. so here we are again, i think steve is right. if you look at the data, there is a compelling case to move. but the fed has backed off.

>> i disagree with everything that he says so i don't -- can we both be right, steve? >> absolutely. i think you're right that the fed has done exactly what dino said. stan fisher a year ago moved u us back to a september rate hike and it happened in december. i don't know if we're there again. that this happens -- if you look at the futures market, they're looking at a 24% chance for december. and a 55% chance for december. >> you know, in september you've got -- >> i'd like us both to be right, joe. it'd be a nice place to be. >> you've got the g20 meeting coming up, election coming up. i'm not sure the fed's going to want to be in the headlines right now at this point in time. so you could see how for other reasons they might decide to back off a little bit and go for december. i mean, that is the plausible scenario. >> you think the g20 is a big enough event with enough headline risk that that alone could cause the fed to raise?

>> it's all the stuff that goes around the g20. it's in china. the last time we've had events out of china with the exchange markets both in february of this year, august of last year, each one caused volatility in exchange market. the fed sort of backed off. you know, plans that they may have had at the time. took the event risk, the headline risk around that. >> let me bring wilfred into this. the risks i picked up out west from talking to foreign and central bankers are the coming elections in europe. elections in three major states coming up, three major countries. and some possibility of eu referendum on there. what are you picking up on that? >> we've got a referendum coming in italy but

election potentially is the fact to delay it. >> by the way raises an issue. which is -- and i don't know what dino thinks of this. you have the possibility of the federal reserve to declare emphatically its independence. as an added benefit to this, if they hike in september, they officially remove any doubt about things that some people have suggested are motivating the federal reserve. >> the other fact to add to that i would say from jackson hole and the last sort of six months of policy is we really learned from europe and japan that negative rates isn't working. >> can i correct you? that's not what they think out there.

for what it's worth, i agree with you. but the central bankers think negative interest rates work. >> it's phenomenal that that is the view. i mean, i think i give a lot of credit to the fed they've steered away from negative interest rates. the fact that yellen didn't even mention it in her speech. >> if the whole world goes to you know what, we are not using the negative rates. >> and i'm just really surprised that the other central bankers came up so strongly in favor of it given that the record is just not there. >> and what happened to the banks as a result? >> i don't think they fundamentally do believe it's working but they have to maintain that rhetoric or else you see the tickup we've seen in japanese yields because investors have lost confidence in the bank of japan start to become much more -- >> but it does create a catch 22 for the u.s. economy. we talk about low interest rates. we have are low yields. the fed could hike and that affects the fund rate. >> are you kidding? we have the highest yields in

town. >> but it's a relatively flat yield curve. because of negative rates, people will still be investing in our bonds here and treasuries here which will keep yields low. companies can keep refinancing and buying back debt. why wouldn't that work? >> the other thing we may have going is a strong dollar. and the dollar has been stronger than a lot of people thought it would be. >> lower than it was before the rate hike? >> i mean, yeah, if you look at it -- >> you know, in the old days -- >> can i just pin dino down on something? >> greenspan's briefcase. >> that was it. dino, real quick. if we hit the number friday, does the fed hike in september? >> they should but they probably will not. >> so 180 is not enough for the fed to go? >> the history has been, you know, you threaten, threatening

with threaten and then back off. >> scott is going to settle this dispute for us as well after the break. more to come on "squawk box" including market thoughts from our guest host and thl co-president scott sperling as we just said. and at 7:30 this morning, apple being forced to pay more than a billion euros to ireland at the european commission ruled. we speak about e the all rooing and what it means for stock price coming up. "squawk box" back in a couple minutes. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.

welcome back. scott sperling is our guest host. i don't know what you were thinking when we were talking about all that stuff, scott. because it's -- in your business, i guess you'd call it -- >> i think the underlying problem is that the economy is so sluggish and remains reasonably sluggish. and the fed is the only place where there's some level of flexibility to either stimulate or slow down that economy. because nothing is happening on the fiscal side that would be stimulating. and part of that is the regulatory burden that has increased dramatically which is one of the reasons why the productivity numbers, i think, are not as good as we'd like them to be. if you look at most corporations, there has not been the level of investment because of other costs that they have to

absorb as you would have expected given the changes in technology. >> maybe they're also doing things they maybe wouldn't have been doing. when you said the fed's the only place that can either spur the economy or slow it down, i don't think you meant by being at zero they were actually slowing it. i think they're counterproductive. this point of slowing it down is the more they do, the more it hurts. >> it's almost all psychology. because as kayla said. the markets are going to set rates for most people who borrow on their own. so the fed i'm not even sure has that much power at this point in time to affect that. >> but they have a cover to go ahead and do it in case they want to. >> i'm not sure the fed's been that good about economic predictions. if you look over the course of the last six or seven years, how many times have they assured us that we're in 2%, 3% growth and it hasn't happened? so i'm not so sure i'm as confident -- >> or when janet yellen warned

us about bio -- >> i'm just going to put that aside as a slip of the tongue at some point in time. and she clearly has not repeated that sort of thing. but you're right. they're not really -- they haven't shown that they're able to take the models of the past and use it to predict accurately where the growth is coming from. so, you know, i think the biggest impact is the psychological of the stock market. people are worried that if they start raising rates, then the math underlying the multiples in the stock market don't work any longer. therefore the market comes down. we're in this funny position where the stock market is pretty schizophren schizophrenic. we want to know the economy's doing better, but at the same time we don't want the rate increases that go along with that. >> is the dollar not a bigger fear for the fed than the stock market? >> i think the dollar -- the issue on the dollar is, again, as the dollar strengthens, obviously it has a negative impact on exports which tends to

also put more of a break on the economy. so, you know, there's a fine line that you have to walk there. but, you know, again, getting back to it, i think companies are doing a generally the private sector is trying to do a good job with the hand they've been dealt. and it's in so many businesses there are more constraints today on how you operate than you've almost ever seen. and yet they're making the investments they can to rationalize. >> in fact, with the employment rate where it is, things are -- the way the economy has been managed has been effective. i would say here's what i would say, the heavy regulatory burden has held back in the private sector. that's why we continue to grow sub-2%. i would say not fixing the territorial tax, not fixing the corporate tax rate has also held us back. i think the single minded focus on this infrastructure thing that we hear from the president

or more stimulus or climate change, all of that stuff, none of that -- you know, you can brag about 4.9% unemployment. but we are being held back by shooting ourselves in the foot this way. we could be growing much more quickly. >> we would be europe. zero growth or japan if not for the benefits of low commodity prices which generally has come about because of the utilization because of the use of technologies. hydraulic fracturing, tracking and horizontal drilling. on the average american of energy and other goods. and reduce the goocost of other goods. commodity food prices are down in significant ways. without those benefits, the strong consumer we now talked about four months in a row of increased consumer spending, that wouldn't be happening either. because all the other burdens are going the other way.

>> i think we could be doing better. to say we're better off than we were during the financial crisis, the u.s. economy always comes back from that. >> labor participation rates are at incredible lows. let's not look at -- >> terrible. >> let's look at the labor participation rates. that's what's hurting the average american. >> coming up we're going to talk about space. colorado's budding space economy. how one company is chasing the dream. wow, no more overages? so that means... go on...say it... we'll finally be in control... and we're back... introducing new at&t plans with no data overage charges.

coming up, apple being forced to pay billions in euros to ireland. the latest on the news and what it may mean for the bottom line. straight ahead. as we head to break, take a look at u.s. equity futures. markets would set to open mixed. the nasdaq would be down by seven points. ♪

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welcome back to "squawk box" on cnbc, first in business worldwide. here are the stories making headlines in this morning. eu regulators say ireland has given apple illegal tax benefits worth up to 15 billion euros or $13.5 billion. the eu says ireland must now recover the unpaid back taxes plus interest. apple and the irish government both say they'll appeal the decision. mondelez walking away from its proposed takeover bid for hershey. the maker of oreo cookies ending talks for potential acquisition after a months' long campaign.

the combination would have created the world's largest candy makers. shares of hershey falling by 11% on the news. shares of mondelez up by 3%. alphabet executive david drummond who has been on the uber board for nearly three years is stepping down. the move comes as both firms are working hard to perfect the self-driving car. drummond joined the board after alphabet's venture capital arm called google ventures invested $250 million in uber in 2013. drummond says google remains an enthusiastic investor in uber. >> stepping down from the uber board. all right. let's switch focus back to the top story of the morning. apple revealing it's holding a special event on september 7th where it's widely expected a new iphone will be unveiled. that being somewhat overshadowed by the tax claw back from the

eu. joining us is senior research analyst at baird. thank you for joining us. let's get to this eu commission ruling this morning reclaiming some $14.5 billion. much, much bigger than was being looked at yesterday. does it hurt the investment case for apple in terms of that outright number? >> wilfred, good morning. thanks for having me. i guess a couple things i would call out. you know, first this is something that apple's already announced it will appeal and likely draw in support from the u.s. government. i think anything that ultimate pays is less

important. as you know, it's the driver of not only sales but also profits for the company. look, this is a device that's been panned by the financial community. the general press, you know, for months now. i think expectations are low. hopefully sufficiently low. we'll see. generally speaking, you know, we're looking for sales year over year as we move into fiscal '17. expectations have been brought down. i guess the question will be are there some significant surprises that we don't expect. >> and you're calling the stock in terms.

compelling case. you've got to be committed to holding a stock long-term. as you look through iphone 7, look through the new future potential devices. then of course you get into the iphone 8 hype. it's already starting to dwp. we don't even have the 7 out yet. i think the stock does fine from these levels. >> thanks for joining us. will power from baird. all right. thanks, will. coming up missions space. the sierra, nevada, corporation is getting into the space race. but can the dream chaser keep up with the big boys? a look at the budding colorado space economy. we don't mean spaced economy. that's next. and then burgers, burgers everywhere. with so many options and slowing sales are names like shake shack and mcdonald's about to see the burger bubble burst?

that story coming up. "squawk box" will be right back. >> under section 37-b it states quite clearly all offers shall become null and void if and you can read it for yourself in this copy, i the undersigned shall forfeit all rights, privileges, and licenses herein and herein contained et cetera, et cetera. it's all there black and white clear as crystal. you stole fizzy drinks. you have the ceiling washed and sterilized so you get nothing. you lose! good day, sir!

all right. it's time to blast off. the next frontier of the space race takes us to colorado. that's where our phil lebeau is this morning. phil, good morning. >> good morning, wilfred. we're here at the sierra nevada corporation. space division which is behind me where they're building the dream chaser.

this is a mockup of the dream chaser. the dream chaser will be a spaceship that about 2019, 2020, they expect to make missions to space delivering cargo, people, including small satellites. there's been huge growth in small satellite demand. you'll see how many small satellites are expected to be launched in the next couple of years. more and more corporations are turning to small satellites. because of that, the corporation is saying there's greater demand for space missions. as a result the dream chaser has been built. they expect the first mission to happen right around 2020. it can carry cargo and people and small satellites. it can also fly autonomously. here's the interesting thing. it can go up, rendezvous at the international space station and land just like an airplane. and for the head of the space systems division, he said the key here is how quickly it can be turned around and used again. >> from the time we launched

depending on where we're going and looking at if we're going to the space station, we can be there in a day, day and a half or faster if we need to. once we're there, we're home. we can leave for breakfast and be home on for dinner. >> one reason we're in colorado is the growth in the space industry, they're adding about 300 people here. oakman industries is a small company in middleton which is seeing great demand as well. we're going to be talking about them later on today. joe, the bottom line is this. whether it is the dream chaser or with other companies here in colorado, there's a lot of growth and i know people talk about california and texas and florida. but the growth in the space industry in terms of private corporations, huge growth here in colorado. that's why we're here today. more reports throughout the day not only about the dream chaser but other companies trying to

tap into that demand for space exploration. >> all right, phil. stay with us for a second because you'll want to hear this. for more on what we're talking about, let's bring in someone who knows. mike massimino has logged more than 500 hours in space and he's here. you're actually 130 but you're much younger from going up. >> no. you got to get really far away from the planet. >> well, you look great. >> really? that's just television. >> how many times were you in a space shuttle on the launching pad? how many times? >> twice. i've had two mission on the shuttle. >> so you're sitting atop that thing, that candle. that's what they say. when we sent up mon kees, they're like i'm just sitting here. when you're going, you know exactly where you are and exactly what can happen. >> yeah. you don't want to think about that too much. >> you don't. >> and you're trained pretty

well. the scariest thing for me was the before the launch looking at the spaceship we had my sfirs which was a night launch. i'd never been around a fueled shuttle before. there was a lot of smoke and noises. it looked like a beast. at that point i didn't think it was such a good idea. >> calf both the mishaps or just the first one? >> i flew in between them. i flew on colombia before we lost colombia. i was on the flight just before we lost it. >> just before. >> yeah. about nine months later columbia flew again and didn't come back. so i was in between the accidents. then i flew again after that. >> and you flew after? >> yeah. >> wow. >> but the point is you get trained really well to do your job. and your training kicks in when you're in those situations. >> is there a difference of training in companies like spacex, virgin galactic than at

nasa you got? >> that's a good question. we have ways of launching and getting astronauts ready. some of my friends -- every one of those companies have former astronauts doing things for them. i think for though folks flying the spaceship, i think it'll be similar to training we got. people going up as tourists because people who are not professionals, their training is going to be a lot different. >> keep your arms and legs inside the vehicle. >> it's going to be like an advanced briefing from the flight attendant. you're going to have to go through some safety training, but you're not going to have all the training. >> i'm excited when this becomes mainstream. how much of an impact is this going to have on people's bodies and mind-sets? >> i think we're at the point where hopefully now we're going to be turning over some of the

space travel to people who are -- say the tourists or the participants in space. they're paying money to go. i think in order to get to that level, it's going to be safe. maybe not as safe as airplanes. but i think it's going to be a lot safer than what we've had in the past. i certainly hope so. people aren't going to want to go if they're worried about something bad happening. so i think it's going to be tried and proven and it's going to be as safe as they can get it. i think there's always going to be risk in everything. the difference about space travel is that it's in your face risk. there's risk right now sitting in this building traveling around on an airplane. you don't think about it. when you're launching on top of that rocket like you explained, you know something could happen that day to you. it's like right in your face. i don't know if you'll ever get over that. >> a lot of students want the sexiness of working on a space project rather than in the airline industry. is there going to be a brain drain away from airlines? >> i don't think so.

i think there's -- you know, students -- i've gone from being an astronaut now working at the intrepid museum. the engineering students i have at columbia, some of them are interested in going to work for nasa. a lot of them are going to these new companies like spacex and blue origins and virgin galactic. a lot of them are still interested in airplanes. i don't think just -- it doesn't really drain things. i think it just gives more opportunities. i think that's the good thing about it. >> is the private sector going to be good? the government is good at certain things. military, nasa. you know, we just tried prisons and now we're not going to be doing that. is it really -- is there the money and the know-how and everything else in the private sector to compete with nasa? >> i think -- i don't necessarily think they're going to be competing. i think the private sector is -- not only just our best hope but i think it's our only hope. i think in terms of safety, they're going to have to

consider that. and they're not going to be sending up their paying customers right away. there's going to be test flights. they already had accidents in some of the private companies. i think they're our best hope and only hope. if they cannot be successful, i don't think our space program can thrive. the government cannot afford to do that like they were in the past. >> what do you think the mix of autonomous and manned versus -- obviously manned is dramatically more expensive and put people at risk, but it's romantic. but in space the cost and the safety factors in terms of accomplishing the various missions of the exploration or commercial missions. >> yeah. it's really expensive because people want to come back. you can land but then you have to come back. and that's even more expensive and dangerous to launch from a planet somewhere from the moon or mars to come back. it's very expensive. it is much more dangerous and complicated. i think we're always going to have this at some level mix of

sending, like, the probes we send around the solar system but also the rovers to mars. those rovers on mars are great. you don't have to worry about anybody getting hurt. but they move very, very slowly. and you can't do the amount of science or exploration with a robot at this point that you can do with a human. so until we get robots to the point where they're as good as humans doing work in a remote location, we're still going to want the human element there. plus it's kind of cool to send people. >> it is much more romantic to do that. >> i think you're going to see these unmanned missions leading the way and people following up. >> you mentioned private sector is the only hope for this. do you have a take on who in the private sector is going to win the race? >> i think it's a mix of government and commercial companies. i think that the government's role is to do the more advanced, more let's say risky things to do financially and maybe with human risk as well. but i see the private sector picking it up.

there's a lot of government development. and now there's a thriving airline transportation industry. as far as who's going to win, i think there's going to be a lot of winners here. each has their own. i really hope sierra nevada is going to be successful. i have a couple friends there i want to be successful. i hope so. i think spacex is. i hope that virgin galactic, blue origin i think has a great -- a lot of potential. the more of them that can be successful, the better. and there's so many of them out there. there's a lot of other little companies who have this niche thing they're doing. not all are going to be successful. but if we can get a percentage of them successful, we're going to be in good shape. >> what do you see as the end goal with government. is that just making thur russian or china doesn't colonize before we do. >> safety and showing people how to do it. the government's gotten pretty good at doing this. we learned a lot in a civilian

space. the government is good at trying to keep people safe. it doesn't always work really good. so i think what they can teach these newer companies is what they've learned on safety and operations and technology that they develop. hand that over which is what the government does to these new -- to these companies that are trying and help them out. as far as protecting us from other countries, i really think the way to go there is to cooperate. we have so many other things to spend money on as a country, i can't see us doing it alone. i think the only way we're going to do it is we have the private companies doing it being successful. go for the more advanced countries. it should be our country cooperating with some countries and private industry. >> going with one of the planes that fall and you can feel weightlessness without being out there, go to an imax if you want to see the view and it looks

like you're there. i might just go in a swimming pool because there's no air and there's weightlessness. but i can come up and get air. i'm afraid of 2001. remember that guy? he's still there. >> no, i was going through -- i can't like that idea a ert. . that was only a movie so he's probably not really there. >> oh, oh. but if it had happened, he'd still be like this. >> you don't want to become a permanent satellite. >> he'd still be -- >> you're going for a long time. >> the slightest pinhole in your suit and you get sucked out -- >> freshly made in the japanese tradition, each batch is small. special. unique... every bowl blurring the line between food...and art. when you cook with incredible ingredients... you make incredible meals. fresh ingredients. step-by-step-recipes. delivered to your door, for less than $9 a meal. get $30 off your first delivery blueapron.com/cook.

abercrombie and fitch just out with second quarter results. the stock getting crushes this morning. the company posting a loss of 19 cents per share. that was a penny better than expected. revenue also higher than expected. but comp store sales fell 4% and abercrombie says it expects sales to remain challenging through the second half of the year. it's that outlook that is really killing the stock. it's down about 11% right now. and the company expects to close up to 60 stores in the u.s. through this year through natural lease expirations. let's get back to our guest host scott sperling. thl partners co-president. scott, retail earnings have been mixed at best. what sector is thl focused on

right now? >> so we look at three broad sectors. i'll go through each of them. the consumer in health care in that area, we've been very focused on health care services. that provide very cost effective services to the system. so a company like curo who is the largest hospice service company that has become much more mainstream over the course of the last ten years where the academic medical community in the united states has really done an about face and said it is better to deal with end of life issues with patients in home than generally spending $10,000 a day under aggressive treatments that don't have the results. so being mortal has done remarkable work that has turned

around the thinking there. hospice is. ically about $155 a day versus $6,000 for a hospital. it's good for the patient and it's good for the economics of the system. >> going to dive into our other top sector picks as well. but after the break. and we will stick as well with some health care discussions. mylan set to release a generic version of the epi-pen at half the cost. we'll be discussing that after the break. our debt problem 19 trillion and growing money for programs like education will shrink. in just 8 years, interest on the debt will be our third largest federal program. bad news for small businesses. the good news? there's still time for a solution. ask the candidates for a plan to secure our future.

new this morning, european regulators tell app toll pay up. the tech giant on the hook for up to $14 billion in back taxes. obamacare at a crossroads. the government proposing changes to fix exchanges. we'll talk to dr. zeke emanuel. taking on the crippling student debt crisis with new technology. we'll talk to the ceo as the final hour of "squawk box" begins right now. ♪ live from e the most powerful city in the world, this is "squawk box." >> welcome back to "squawk box"

here on cnbc, first in business worldwide. i am joe kernen along with kayla tausche and wilfred frost. our guest host scott sperling. we're less than 90 minutes away from the opening bell. say that every morning at 8:00 and it's always true. markets open at 9:30. doesn't mean i'm going to stop saying it though. it always seems new and fresh and interesting to me. the futures right now as you can see -- feels like august. feels like august 30th. yesterday was the slowest trading day of the year. kind of flat on the sppz and dow jones. but the nasdaq is definitely responding a little bit to the news from -- got to worry about regulators here, scott. now we got to worry about regulators in the eu where they really like to regulate over there. like to regulate every part of your life.

>> they do, indeed. you're referring of course to the fact that new this morning the european union ruling against apple's tax arrangement with ireland. paid almost zero tax through 2014. they're asking ireland to recoup up to $14 billion in unpaid taxes. julia chatterly joins us with more from brussels. >> reporter: the irony is the irish government doesn't want this money. apple have come out and said, look, they blooe that this ruling will now be overturned. and actually that it's not about how much tax they pay, but about who's collecting it. this is about the european commission tackling ireland. when i spoke to the

commissioner, she indicated the same thing. and i said to her, but what kind of message are you sending to u.s. firms trying to invest in europe? listen in. >> we're sending a message to any taxpayer in europe. the multinationals, stand alone companies, small or big companies, european or foreign that this is a wonderful place to do business and to invest. but you have to play by the rules. and not to rely on unfair tax benefits. >> reporter: so $14.5 billion here is not the worst case scenario. and it's dwarfed in comparison to the amount of cash apple holds. but the principle here is huge. we're now looking at a huge legal battle potentially. how does the u.s. treasury respond and what does this mean for investigations into amazon and mcdonald's that are currently underware. back to you.

>> julia, thank you. the stock in premarket is down 1.4%. having been down about 0.4% before the size of that fine came out. 1% move off the back of that. other news, mark your calendar. unlike prior invitations there are no obvious clues to what the company is cooking up this time around. the presumption because of the season that we're in is that the tech giant will use the event to unveil both a new iphone and a new apple watch. a lot of speculation the new device will have only modest changes. but one of them could be slightly controversial. insiders say apple may remove the headphone jack from its iphone which would require the use of bluetooth headphones. of course there's a big uproar when they changed the charger a couple years ago. everyone had to get new chargers. we'll see if now people complain about having to get the bluetooth headphones. >> it would be annoying.

i just bought a new expensive pair of bose ones. i'd have to scrap those. >> buy a pair of beats, they're saying. >> or don't buy the iphone. retailer abercrombie and fitch posting a second quarter loss. 19 cents per share. that was a penny better than expected. revenue also higher than wall street estimates. comp store sales, though, fell 4%. abercrombie says that trend will continue. expect sales to remain challenging through the second half of the year. and it says it expects to close up to 60 stores in the u.s. through natural lease expirat n expiration. stock down now 12%. monday leelez walking away their months' long campaign to take over hershey's saying it was zpoibted with the outcome. here's thousand the market is responding. investors in hershey down by

11%. mondelez up by about 3.5%. mylan set to release a generic version of the epi-pen at half the cost. but the oversight committee is investigating the drug maker over the price hike of that autoinjector. meg terre ril joins us with more. never thought i'd know so much about the epi-pen. >> i never thought i would ear. but you're such a big "pulp fiction" fan you knew more than most. it would introduce its own generic epi-pen at half the cost. the question swirling yesterday was would this be enough to quell the outcry of epi-pen. the stock having a tough week last week. yesterday kind of digesting all of the stuff as analysts try to figure out what it means for mylan's bottom line. but we did see signed by both chaffetz and cummings asking

questions around the pricing of the epi-pen. of course this also sparked a war among the payer community with pbm's managers responding as well. we reached out to express grips to see if the generic launch will be enough to sort of quell their outcry. they say we appreciate that mylan heard our call to lower its price, but it's still too high compared to what it was even a few years ago. the question now is what will this do the the generic competition from other drug makers and what will the fda be called upon to do in terms of approving competition. >> you'll stay with us, meg. joining us now dr. zeke emmanuel at the university of pennsylvania. doctor, always good to see you. i'm looking through some of your comments here. it keeps saying that in a perfect world, you just wish it would be competition. competition would probably solve a lot of this. and then we ask you what about

price controls. you go, it's not my favorite way to do things. it's almost as if you're saying you'd really like to be free market, but it's impossible to do it in this way. why? whose fault is that? >> joe, you've summarized my view perfectly. if we had a market, it would be great. i think prices would come down as we see in many other markets. in the drug business, there's a monopoly granted to drug companies through patents, through fda marketing exclusivity and taking a long time to approve to line to produce drugs. those markets exclusiveties and patents give companies monopolies and companies, surprise, surprise, exploit the monopoly to raise prices to when screaming starts. we seen this over and over again. and we will continue to see it. epi-pen will not be the last case. you would have thought they learned after turri.

but they don't learn because the profit is too tempting. and the only way in a monopoly situation to keep the prices reasonable is government regulation. unfortunately. >> we've got algorithms for everything. so there must be a way to find out given what companies pay to develop life-saving drugs, given you want them to recoup their costs and continue to innovate -- you're smart. one of your brothers should be able to do this. write an algorithm which shows exactly how long exclusivity should be. but fix the fda. the fda is a real problem. >> let's be clear about the epi-pen at least which is there was no improvements over the last six, seven years. >> it's an fda issue. this is the fda. this is their second thing that you said. >> the prices have gone up.

there's been no improvement by mylan on that drug. >> no competition though because the fda hasn't let anyone in. >> well, the tepa thing as you know, we don't know why they said they couldn't produce it. whether there are quality problems. but if a new to develop this. it would take months if not years to get onto the market. all that time they have a monopoly situation. i agree with you. they do need to get the fda working faster to approve the generic drugs. also need regulation. there's going to be periods of time even if they're working well where companies will have a monopoly and they're going to exploit that power. >> you know, i listen to you on the exchanges. and look how that's working out. no. >> the exchanges are actually much better than your bad press suggests. we can come back and talk about that.

>> quickly dr.emmanuel. you pointed out that one of the issues there is sort of an imposed price control where you can't raise the price of cancer drugs every six months or so. i wonder if you think price controls didn't work. but also more broadly are we in a crisis in the united states because of so much consolidation we don't have enough people making them? >> so on the second point, i think you're very perceptive and that's probably true. we have had a lot of consolidation in the generic market. one of the reasons is that the generic prices have gone low. the united states has the lowest generic price situation. and that does create a problem for companies to stay in the market. when there is competition in the

generic space, it could be pretty ruthless. some companies do provide a floor for generic so that they can make a profit there. on the cancer chemotherapy side, that is a case of where the government imposed a crazy price increase limit of 6% once you hit rock bottom. and that i think was a problem because when jehher innics are too low priced, there's not incentive to come in and spur production. if they do decide to come in, they've got this fda approval process which can take months if not years. so i do think there has to be a way to create a floor on generic prices. but also a ceiling on generic prices. because you don't want the mylan situation where you're the only producer and you've got this monopoly and you can exploit it. and we're seeing that. winston churchill and joe i'm sure he's one of your favorites said the united states tries every solution and then it finds

the right solution. i think the fact is that this is fundamentally a problem about mow noply pricing. we're going to try lots of things. i think people are going to urge the fda to permit importation and there will be other halfway fixes that won't really solve the problem. then we're going to have to get to -- if we have monopoly pricing, we'll have to have both ceilings and floors. that's the direction we're going to go. it's not going to be tomorrow. it's going to take five or seven years, i believe. i don't think mylan and epi-pens are the last case. and i don't think this epi-pen generic is going to solve the problem. you're going to get increasing pressure in the political system to address the problem. we're going to go the way almost every other country goes with our own twists and turns which is you provide a floor but you regulate the top end price. i do have an algorithm for the top end price. that is -- i've been in print saying you need value based pricing. those drugs which provide better

health and, you know, really are life saving, we ought to pay a lot for them. those drugs which aren't like a lot of cancer chemotherapy drugs which give you a few months, we should not be paying $125,000 for that stuff. >> i don't think churchill meant everybody else does it right right away. they never do it. they never get it right. by the way, we're born about the same year. and i'm getting nervous about turning 75, zeke. so hopefully you're -- can you give me 80 or 85, please? >> are you feeling -- the question is are you feeling vigorous and living life to the fullest right now? >> yes, i am. >> good! >> but i'm doing it like gary player at 80. i want to come back to you at 75 and see if you're still singing the tune. >> absolutely. >> thank you, doctor. see you later. >> take care. coming up on "squawk box," the latest from the campaign trail. donald trump set to give a campaign speech on immigration

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. donald trump will give a speech on immigration tomorrow night in phoenix.

this amid criticism from supporters that the gop candidate softened his stance on immigration. joining us now congressman sean duffy. he serves in wisconsin and shares the house financial services subcommittee on oversight and investigations. congressman, how much of a softening will we see tomorrow and how much will the candidate stick to the script? >> now, i'm going to speculate here because i'm not in donald trump's mind. so i will tell you he's still going to come out and say we have to secure the border and with a wall. i don't know if he's going to switch from a physical wall or boots on the ground. what we're hearing is there might be a slight softening of those who come without that. that don't have legal status. they may be able to stay instead of having this deportation force that's going to round everybody up and send them back. frankly on that point is you are

never going to round up whether it's 11 or 20 million people and send them back home. >> so will that alienate his core supporter? that was one of his early proposals that rallied so much support for him. >> no, i don't think so. i think you have two choices in this campaign. hillary clinton is an open borders candidate. she's okay with sanctuary cities. the one who's tough on immigration is donald trump. so i think if he's able to do this in a way that says we're still going to have border security, americans get to decide who comes in and out of our country. we're going to get rid of the bad actors who are in our country. those who are committing crimes. and especially violent crimes. those who aren't taking off the american system. we're going to send them out. we got people here for 5 or 10 or 15 years that have families that are part of our economy. those people can stay. now, i'm speculating. i think that's what he should do. i hope that's what he does. and frankly, i think it'll help with the hispanic vote.

but also with a lot of suburban moms who want a softer touch on this issue. >> there was a piece on this over the weekend. must have been in "the wall street journal" because i won't buy "the new york times." i talked about that issue core supporters and they talked to quite a few core supporters. gave a big yawn about whether it's a pragmatic approach to something they've got other reasons why they're core supporters. now, in the article it did mention people like kevin madden, romney's guy. and mentioned there are some never trumpers there that are like, oh, yeah. his supporters are -- but the actual people behind him were -- i don't know. it's like a media narrative that this disenfranchises core supporters. >> i think some of the media want to push back on donald trump. they don't want him to soften. because i think they realize it'll hurt his campaign.

>> even though they're the biggest critics of the original horrible policy he softens it and it's like, you can't do that. you said you were going to be the hahn. you can't soften. we can't win. >> we want the new jobs and the enforcement force that's going to round folks up. in my district if i talk to the tea party groups, the furthest right groups in my district. you say we're going to secure the border. they're final with this kind of a strategy. i think americans on the right get so frustrated that we don't enforce our laws. let's enforce our laws and have our american government and american people decide who gets to come in, who doesn't. we want to stop the drug traffickers. those who are trafficking guns and people and maybe terrorists. you stop that, this becomes a way easier issue. the policy any potential president would be able to put in place depend on what the balance of congress looks like after this election. you yourself are up for

re-election. what are your pollsters telling you and what's the risk that the support you're putting behind trump in a district that your state is a battle ground state. what is the risk that putting not enough distance between you and donald trump would cost your fourth term. >> first of all, thank you for acknowledging that we in congress are going to have a say in this process and we will. just don't get a right immigration policy. the house and the senate are going to have, you know, their thumb os then zal of what we do. it is important what our president thinks about this issue. for me i have two choices. i don't like everything that donald trump says. i don't always like the tone. but when i have a choice between someone who i think is dishonest and i think has been crooked with this pay for play scandal within the clinton state department. with that choice, i'm going with donald trump. i'm clear in my district that the tone is not a wisconsin tone. some of the policies aren't

wisconsin policies. but on balance, donald trump will be better for our economy, will help grow more opportunity and better paying jobs in our district than hillary clinton. i think it goes back to -- if you listen to the economic speeches and listen to them in the car on xm radio, this is barack obama on steroids. she laid out problems in america and had a government spending solution or government program solution for every problem when she thought faces america. at least donald trump says free enterprise still works. we should look to the american people. the american business sector to solve some of these problems. maybe we should lift off some of these regulations that are crushing our businesses. maybe we should reduce the tax burdens for american businesses to compete globally. that's the right start on growing our economy as opposed to this collectivist model that whenever tried, it never works. whether you go to venezuela or

argentina or cuba or greece. big government with big regulation and high taxes always fails the middle class and the poorest among us. >> we appreciate your time this morning. >> you're up 20 aren't you? i'm looking a t the latest poll. are you up 20? but who's counting? >> 20, 30, i don't know. quickly, stay tuned. financial services in the house. we're going to do a reform of dodd/frank. "street signs" going to be good stuff in a couple weeks. again, lifting the regulatory burden off our sector. it can do wonders. stay tuned for that. >> we appreciate your time. still to come here on "squawk box," an update to instagram's new stories feature. joe will explain that to everyone. and much more on what to expect when the markets open.

coming up, we're counting down to the jobs report. we'll get the new data on the state of small business employment in the u.s. with paychex ceo marty musi. as we head to break, take a look at the u.s. equity futures. americans are buying more and more of everything online.

and so many businesses rely on the united states postal service to get it there. because when you ship with us, your business becomes our business. that's why we make more ecommerce deliveries to homes than anyone else in the country. the united states postal service. priority: you what's going on here? i'm val, the orange money retirement squirrel from voya. we're putting away acorns. you know, to show the importance of saving for the future. so you're sort of like a spokes person? more of a spokes metaphor. get organized at voya.com.

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♪ welcome back to "squawk box." here's what's making headlines. the story we've been following all morning. eu regulators say ireland has

given apple illegal tax benefits worth up to 13 billion euros or $14.5 billion. you would think that would be ireland's prerogative as a sovereign nation, but apparently not. the eu says ireland must now recover -- the brureaucrats in belgium. the unelected -- did i say that already? >> you might have said it before. >> they've got to pay back $14 billion, apple. they're saying they'll appeal that decision. and take another look, if you would. do you have to write it like that where i'm ordering people? if you're interested, you might look at shares at amber -- abercrombie. a penny better than expected. revenue also came in higher than expected. comp store sales fell 4%. it expects sales to remain challenging throughout the

second half of the year. in london, wilf, are there big lines at the abercrombie store? >> there were like five, six years ago. >> in paris a year ago you couldn't get in. >> because you were trying to. >> i was trying to. actually, we were passing it. >> you know when you're near the store because they pump it on the street. it's a bit much. i'm not the person to ask on this, i'm afraid. >> why not? >> i don't think i'm representative of young fashion trends. >> he's completely bespoke. k custom made. >> when you're an odd shape, it's necessary. >> you're 6'5" and thin. i mean, it's not -- it is odd in america. the latest sp p s&p case-shiller home price is out ahead. to have risen more than 5% in june. that's the same pace as in may. then at 10:00 a.m., look for

august consumer confidence if there was any. >> if you would look at -- >> if you would. it's up to you. it's just a suggestion. please and thank you. all right. changes are coming to instagram stories. the social media app will soon start showing people the short videos from people you don't already follow as if you didn't have enough to watch on social media already. instagram will suggest stories with the help of a facebook-like algorithm based on interests and users they already follow. i thought that's what the explore button was for. now you're being force fed that stuff. >> i agree. on instagram which is generally more curated than targeted before. i think we should ask joe's opinion on this. >> i have things happening. but tell me again? >> the snapchat/instagram thing? >> can we set that up? >> of course you can. for me?

no. i thought you were asking me what's possible to do. i'm a an expert on what is it? >> instagram. >> you're on instagram. >> i think my daughter put me on there. yeah. i think my daughter put me on there but i've never done anything on it. >> my daughter. yeah. >> what's on there? is there an entry? >> it is pictures of you and dour daughter. >> from like three years ago, yeah? >> and bill murray. >> yeah, is that on there too? okay. that's good stuff. >> i stalk you. >> yeah. >> is this at like 2:00 in the morning? >> in my dreams. >> exactly. okay. anyway, moving on from that slightly odd discussion. new data breaking on small business employment in the u.s. the latest paychex survey showing the small business job growth remaining stable in august. joining us is the ceo marty musi. good morning to you. quickly sum up for us the

overall trend we saw in august and what it means for the whole? >> we were flat in august but up about 2%. the job growth rate up about 0.2% from last year and about 0.3% year to date. we're seeing good consistent job growth in small businesses. it's a tale of two coasts. we have the west coast really dropping off strongly in california where they reached a peak in '14. now the east coast picking up very strong. particularly in the southeast. strong in a housing perspective. >> what about on a sector perspective? there's areas of struggle there as there are regionally with the likes of california. >> yeah. the other services sector still by far the strongest. this discretionary services. pet care, personal care, those are still the strongest jobs. unfortunately some of those are part-time. and you're seeing some of that be the strongest part. construction still number two

from a highest index perspective. and that's housing particularly in that southeast part is helping. housing coming back, came back pretty strong in california two years ago. now it's coming back strong in florida, georgia, and that area. >> marty, what's the correlation, the prediction been like from your survey so far this year for the non-farm payrolls each month and what does that make you think we're going to get this friday? >> yeah, it's been pretty close. i would assume we're going to have a consistent number for friday in good job growth. because we've been very consistent with the jobs number that comes out a few days after ours. so it's been good. also the other point that's interesting is wages are up. we're seeing in small business wages up 3.7% to 3.8% over last year. i think some of the minimum wages requirements, the minimums are kicking in. and that's driving up some wages which we hope will not impact too much job growth. >> marty, just finally to sum up

the state of the u.s. jobs market, are we looking at a much stronger market than perhaps many investors consider we have? >> well, i think it's consistent. i think it's still cautious, you know, with the election coming up and with all of the regulations that have come in that joe talks about. think about affordable care act, minimum wage requirements. this puts caution on adding jobs particularly in small businesses. but overall it's consistent and it's steady and it's good numbers. >> marty, thanks much for joining us today. well, move over silicon valley. start-ups and main street businesses flocking to columbus, ohio, where kate rogers joins us with one company's success story. >> reporter: hey there. we are here in columbus, ohio, which is home to big retailers liex l brands and express which

paves the way for a syndicate printing quirky quotes on t-shirts, posters, and home goods. catering to counterculture stripe. >> i felt there were a lot of opportunities for alien believers and feminists and cat lovers to have products that nobody else was making for them. >> reporter: so it turns out she was onto something. she sought to sell $1 million in 2012. she sold $4 million. this year she's on track to selling $14 million in sales. being here in the midwest allows her to rent space for cheap which also allows her to pay workers a fair wage and says the start-ups here in columbus are committed to growing the entrepreneurial ecosystem here. >> i think there's a consensus that we need a lot of big wins here to try to drive this city forward and we can have an impact here. >> reporter: so you guys might

have seen this meme before. notorious rbg referring to ruth bader ginsburg looking like rapper notorious b.i.g. she has a copyright on this. it was from a blog tracking all of the justice's scathing descents. it's actually their most popular product ever. back over to you guys. >> all right, kate. thanks. coming up, student debt 101. college grads are more than $1.3 trillion in loans. we're going to talk to a ceo using technology to make the lending process more transparent. "squawk box" will be back.

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turning now to a crisis on campus. americans owe $1.3 trillion in student loans. second only to home mortgages. the rise in student loan borrowing is tied to skyrocketing tuition rates. those are up 226% since 1980 according to vice news. the staggering numbers have caught the attention of politicians. but will the next president be able to get this crisis under control? joining us now to talk about this hot topic is joe depaulo from college ave. also former cfo of sally mae.

this seems to be one the private sector is trying to attack head on. with the plethora of all these student loans. refinancing start-ups. does the government have an important role in actually helping this crisis from here or would it be better to stand back because they helped to create this bubble? >> look, the issue really for people borrowing money for college is what we consider and if you look at the federal program, we consider the federal program one where it's an access tool for when you're going to school. okay? so it's a huge amount of money available as long as you fill out the fafsa form. that product becomes a credit obligation. and it's managing that transition from accessing the money which is a good thing because it helps a lot of underprivileged people go to

school to managing it as a consumer obligation when you get out. the way we do it at college ave student loans, we tell you what the loan costs in terms of nominal cost to you over the life of the loan. we show you your exact monthly payment. and then we reinforce it every month with statements that you receive while you're in school. >> to try and stem what? overborrowing? or just trying to educate the students? >> educate, stem overborrowing. think about it. you're giving money to an 18-year-old. it's a large obligation. it's going to last a long time. and they've never borrowed before. that's a pretty big decision. >> do you scare people off going to college at all by putting this up front and clear to them? >> well, i think -- remember, i think college -- college has an aspiration not component. it also has a great return on investment. so if you think about higher education, most studies say that those with a college degree earn between $600 thousand and a

million dollars more over those without over the course of their work history. that draws people in. i think as long as they're thinking that they're going to much better earning power, i don't think the cost bothers them. but borrowing, you have to do it with both eyes open. the way we look at it is we try to discourage people from deferring the product while they're in school. if they defer the product, that creates -- that creates the most cost. >> in tuition and other expenses, has that return on investment dropped for many students? fundamentally most of us had student loans a long, long time ago. but it was a good investment for many of us and it paid off. today the complaint you hear is that people are loaded with loans because of that increasing

cost but are not making commensurate improvement in their income. how is that balancing out? >> sure. the cost has risen. absolutely. but even today the average borrower owes about $35,000. the average income coming out is $43,000. if you look at everyone, it's about $17,000. and there's a lot of misinformation. so, for instance, defaults in the federal program. the number of customers in default today is about 16%. sounds like a large number. >> in a bank that had 16% of its mort ganls in default would need a bailout. >> let's keep this in context. two-thirds of those have balances less than $10,000. if you want to deal with it, deal with those people probably didn't finish school. then the other people is remember what the federal program is designed for. it's designed to give access to people who wouldn't be able to get money to go to college.

so it's going to have higher losses simply because you're giving access to that person who's smart, who's a good student but has no way. >> applying for a higher loan overall for their principal because the cost of college is going up. what can the colleges do? because they would say we have to build new buildings. we have to attract well-known professors. we have to fund research products. that's not free. >> well, i think we focus on that piece a lot. right? the bright shiny object. but remember even today if you want to do college reasonably, you can go to a community school for two years and it would cost the average price of $3500. the average in-state tuition is $9,000. now, i recognize not everyone is close to an in-state school. but that's a pretty good option if you can essentially shell out about $26,000 and have a

four-year degree from a state school. so everyone focuses on the high end. the $65,000 number which is the high price of a private school if you pay the full tuition. nobody is focus on the options in our system. >> it's an important reminder. joe, we appreciate it. >> thanks. when we return, jim cramer joins us live from the new york stock exchange. we'll get his take on this morning's biggest movers. futures right now pretty much flat as you can see. the dow slightly higher. the s&p and nasdaq slightly lower.

. and jim, steely dan, beacon theater coming up in october, i'll help you out. >> i think so. put your cards on the table. >> i'm trying to get them on, too. >> yes. >> so, i've been sort of -- there's so many angles to this apple store and as you can imagine, i've touched on most of them. today -- i don't know, it seems like ireland, sovereigninati na

they're doing great with the great tax rate. they wonder why there's problem with the eu. >> if we had retroactive taxation? do you know how much people would owe? they would taxation and they don't ask for representation. i don't know what they want at the eu. it seems like this is why you don't want to be in the e, if you're a country like ireland, which is a country. did that come up that it's a country? it's not a province, right? >> i'm trying to -- i'm suggesting irexit, but it sounds like irexit. we've got departugal, anditdep anand itale and italeve. >> they have 6,000 employees. this is not eton or tyco.

>> the other thing is, doesn't this drive home the politicians? doesn't this drive them home if they were not back here? >> they seem to be able to do whatever they want and if i were -- look, ireland, are they going to go take an exit off this? no their land has intel, and dell there. they have very good deals with ireland, where they've put a lot of good people to work. we're americans. people just probably feel we're talking our book. >> does it make you second guess maybe intel, or fiezer, or facebook, any of these companies that have such strong operations in ireland, maybe they could be next in the cross hairs? >> i think they will. why would they -- if the eu decides -- the eu can do whatever it wants. the question is, why would you want to put a plant there if you're getting a good deal because it looks like that whatever deal you have now has to go to the eu, and i don't think the eu's going to accept any deal, so if they're going to

go retroactive they are for that beautiful intel plant they did in the '90s. it was a great deal, and ireland won and now i guess ireland's the loser because they brought that company on. >> nobody should ever do anything in the eu again, that's the way i'd respond to this. >> i'm sure they'll say it's a strong man and give us a break. the eu -- this is why people don't -- this is why britain -- wolf's there, so i don't pretendtpreten pretendtpreten pretend to know second fiddle here. we have should retroactive. we had secretary on allergan, but i think they did, but that's unusual for us. >> and fiscal policies where it's meant to be up to the individual nations -- >> yes. >> -- with some rules around it. this will definitely be frustrating many in the eirish

government who said they're already going to appeal it. >> what does a sovereigninati n mean? >> they should have tried this before they put this jury-rigged thing together. >> and now we have super soverei sovereignty. >> it looks like that eu -- or that euro statue, in frank ford. that was a perfect metaphor for the eu. >> it's hard to fix. >> keep telling yourself that. >> it will work. it's going to work. >> i'm not margarita vestiture. >> he wants a margarita? coming up on "squawk box," jim, we'll see you in a few minutes. we'll find out where scott enterling is putting his money to work on the deal market stay tuned. no matter where you go. you want an experience that feels highly personalized. with watson on the ibm cloud, travel companies like wayblazer

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i'm in vests and as a vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests... or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. plan your never tiring retiring retired tires retirement it's a very specific moment, the launch window. we have to be very precise. if we're not ready when the planets are perfectly aligned, that's it. we need really tight temperature controls. engineering, aerodynamics-

a split second too long could mean scrapping it all and starting over. propulsion, structural analysis- maple bobon caramel. that's what we're working on right now. from design through production, siemens technology helps manufacturers meet critical deadlines. i think this'll be our biggest flavor yet. when you only have one shot, you need a whole lot of ingenuity. our guest host this morning, scott spurling -- tho partners copresident. my eyes are crossing. give us some good news from the deal market. >> so i think the south side of the deal market has been great and we've benefited from the realization of record levels for

a number of years. on buying you have to look where the macro trends are gone. i've talked about healthcare services where you're providing services at much-lower cost, better for patients and we look for abercrombe, very tough to the retail side because of the transition to e-commerce, eating away at the comp store sales. look for things that serve different markets that are not as vulnerable, and companies like bargain hunt, which is a small company in nashville, has goods at 20 cents on the dollar for walmart. >> give us more ipos to cover. >> the issue with ipos is the markets are attractive, they want it, but strategic players and other buyers are offering very attractive terms. inventive, provides outsource services from the pharma energy

to research to managing the sales force for them. we were going to take it public, a very attractive ipo alternative, but we were able to do a deal with some other friends in private equity and still retain half the ownership of had fast-growing company. we're looking at lots of different ways to make these investmen investments. >> good to be with you, and great to be with you. make sure you join us tomorrow. "squawk on the street" is coming up next. qua good morning and to "squawk on the street." we're live from the new york stock exchange, carl quintanilla is off this week. let's get a look at futures on this tuesday morning. we're looking for maybe -- let's just call it a flat open more or less. nasdaq's going to be open a little bit. green markets were in the green last time i looked.