where business never sleeps this is "squawk box". good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. take a look at u.s. equity futures. dow futures are up by 30 points. s&p up by three. nasdaq up by 15. those futures at this point building on yesterday's gains. overnight in asia mainland china once again closed for golden week celebrations but the nikkei was up .8 of one percent. shanghai composite up by a quarter percent. those green arrows are continuing. dax up by .6 of a percent. the cac is up by close to a percent. ftse that's kind of taking off. direct relation to some weakness in sterling. ftse looks like it's up by 1.6% this morning. take a look at crude another strong mover from yesterday. giving back a little bit of

ground. wti still above $48 trading at 48.43. >> other top stories we're watching, currency markets. sterling dropping to the weakest level against the dollar since june of 1985. now the plunge in the currency after uk prime minister theresa may said she's going to trigger the start of brexit by the end of march. also a little bit of corporate news. shares of deutsche bank rising in german trading. remember markets in germany were closed for a public holiday yesterday. big question, of course, will a justice department settlement be favorable to the bank or not? deutsche bank getting a strong vote confidence from a big name and competitor on wall street. here's jpmorgan's ceo and chairman jamie dimon that believes the german lender will be just fine. >> there's no reason that deutsche bank shouldn't get over its problems. they have plenty of capital and play liquidity. we want these banks to get through. it's better for everybody that we move on and help do our jobs.

>> more on deutsche bank coming up in just the next hour. on today's agenda here's what we got. gentlemen have jeff lacker speaking this morning at 8:00 a.m. at 8:00 p.m., charles evans will speak. he's a voting fomc member. on the earnings front, darden restaurant, parent of our faurcht oligarch reporting before the bell. got some pasta going and, come on you like it. don't pretend you don't. >> it's not me pretending like you go to olive garden. you're carmines where calamari costs $42. come on sorkin. when was the last time you were at olive garden. >> a year ago. whenever we go skiing in utah before you get down the service road at the bottom there's an olive garden on that main strip there. >> i have never been. >> you've never been to an olive

garden. >> i've been to carmine. somebody took me there. stocks to watch today. the jumbo thing has entered in my life. this drug, do executers do it. do you think computers come up with new drug names. >> this is still people. >> so there are a lot of combinations out of our -- >> sounds like brilliant. >> out of our 26 letters you can do a lot. in this case it's astrazeneca, a heart drug they decided to call it prilliant. it failed to show a benefit over an older blood thinner that was used to treat be patients with serious circulatory problems in their legs. the setback follows some disappointing results in march with the some drug in a clinical trial in this case for stroke

patients. the stock is up. i don't know. we're saying it failed to show some movement and the stock super. a company called team health top physician services company buying florida emergency physicians. terms haven't been disclosed. fep provides emergency medicine staffing for 6,000 patients a year across florida. cypress semiconductor is caught 500 jobs or 8% of its workforce >> google is holding an event in san francisco today where it's expected to introduce a new hardware. going to be taking on amazon and apple. the most strategically important product is google home. it's a stock market speaker that challenges amazon's echo.

more detail later today. other products include two new smartphones to compete with apple and samsung. they will run the latest high end android features and said to cost more than $600. some other items we might expect is google's version of video streaming stick. chrome cast. the new day dream virtual reality head set for gamers and routers to spread wireless connectivity through your home. >> san pedro. when was the last time you were there? >> sometime in the past year. i've been there before. been to olive garden. that's where you're trying to go. >> that's where we're going. >> i got it. trail bend. >> you're working on it. it's a problem. >> i haven't bean while. i should go. good idea. >> we digress. you're used to this. you guys are all right. okay. we'll be with you in a second.

a misstep for facebook's new marketplace feature. already? i just heard about this, i think -- >> launched yesterday. >> the social network -- oh, there it is launched the app allowing 1.7 billion users not 1.701 billion because i'm still not users to buy and sell each other through its mobile app. that's right. similar to craigslist. within hours users were selling stuff that violates at a minimum facebook's user agreement. some listings spotted including all these great things, drugs, sex, weapons and even if you need a body part you can apparently get one yesterday. facebook issuing an apology late last night saying a technical issue prevented it from identifying posts that violated its community standards. >> filters were not working. >> i need an example of the body part that was up for sale. >> i don't think you can sell a

liver. maybe you can sell part of it. >> it's a blarkt. a person who is selling their liver. >> if i had to part with one thing -- i don't want to give my little toe. >> you have some fingernails. >> like howard hughes things long curly ones. >> let's get a check on the markets. joining us to talk more about it is the president of wells fargo investment institute and chief investment officer of wells fargo wealth and investment management and david "joy" who is chief market strategist at ameriprise financial. welcome. we feel we're in this new quarter, the last of the year. we feel we're in a new month that could have a lot of volatility. do you worry about the same issues? what do you think? >> yes. but the markets so far is moving in the other direction at least in terms of volatility. we had a spike in september and the vix is down 13 or so.

while we're worried about earnings growth, the election, what the fed might do, markets is taking this all in stride and somewhat surprising. >> does that mean you think the market is at high levels, that you don't like the valuations here or does that mean this is just a powerful market and would you ride this? >> i think the market is saying -- we expect attorney general's start to turn positive maybe as early as the third quarter. certainly by the fourth. so valuations are okay if we get that follow through. >> what do you think? >> i would agree with david and say, i was looking at this the other day. when you look at the broader long term cycle this recovery cycle has been half as last gdp growth as we know but half as volatile as any recovery post-world war ii. >> because of the fed's influence. >> because of global central banks. it's across equity, interest rates, equity markets.

volatility has really been unprecedented at low levels and the uncertainty from investors is really high. investors are not willing to commit to new capital. >> what does it mean for somebody looking at markets now. >> historically that's a bullish indicator. there's a chart i use showing consumer confidence that hit 104 last week. new cycle high. if you look at investor sentiment it's below '08, '09 levels. >> not surprising given -- >> all the shocks -- >> all the things they don't trust about the system. it's hard to look historically and say it will come back because this time is different. >> you can get investors coming back. we're starting to see in the latest fund flows, households coming back. you're not getting positive equity flows from pentecosts, foreign investors or mutual funds. >> does that surprise you?

>> i don't know it surprises me. lion's share is coming from share buy backs. you're getting from some individual investors and share buy backs. so fwheed to balance that out. >> can we talk about what's happening in europe today? if you look at the weakness in the sterling sthrks weakest level that's been against the euro since the brexit vote came through. helping to boost stocks. what do you think happens over the slightly longer term? >> we loaded the beneficial aspect of brexit with the weak currency but theresa may apparently said just yesterday that she's not going favor the financial services sector and all of a sudden that's what's given rise to this weakness. >> part of her comments immigration is something they are more concerned about than nang the trade partnership. >> she wants a national sovereignty is her big issue and it's not what's best for the city. and so i think you are seeing some weakness there.

this issue of deutsche bank is still lurking in the background. i think there's some nervousness about the health of the european banking system. they do have access to a lot of liquidity but certainly they are struggle frlg a profitability standpoint. you know they will have these problems for a while. >> not talking about a meltdown but investors potentially not having a whole throat write home. >> maybe a little bit of loss of confidence. >> are you invested in uk companies now? the argument to be made the sterling company down will help certain companies. >> sure. we're underweight uk from a high level point of view and have been for some time. a lot of that index which is the way i think about it is energy centric. and that has bean great place to be. we've went under weighted the uk for a while. there's a big slice of that market that does get a benefit

from a weaker currency. >> one of the thing we've been talking about is this increased protectionism. deutsche bank is one example of this where we wonder if regulators here are picking up because of the eu apple fines and eu going after 10% of google's revenues because of anti-competitive things. maybe this is not tit for tat. you do see a rise of protectionism around the globe and do you see trade being a dirty word in our elections as well as elections that you see in other places. what does that mean? >> i think any time you start talk about imposing trade barriers that's not good economically and not good for global profits and the countries in general. i was looking the other day, tariffs have come down from all the goods coming into the united states, for example, have come down from having 20% tariffs if you go back to the great

depression now to 1.5% of goods coming into our country have import tariffs which are agricultural and pair weapparel. if you raise that that has questions how you get global capital goods and trade to become economic drivers. >> i read something that the cbo, congressional budget office have scored trade packages over the last 20 years including nafta and come away with a sense that it's been slightly better for our economy but workers who have struggled mightily. is it worth the tradeoff? >> yeah. i think it is worth the tradeoff. you end up still getting the global tide is raising all ships. you need to understand and let capital flow where it has to flow to find its most common value. it does, no different than when you had farmers moving into, you know, industrial and factory

jobs, you had kind after displacement period of time where you create this air bubble and air pocket. >> it was a displacement within our own country not a displacement where our workers suffer for the benefit of workers in other countries. >> you have to let capital flow. >> we don't. >> we don't. it's not used effectively and we waste it an productivity goes down and gdp doesn't grow as much and fewer people come out of poverty and nothing works as well but there's nothing that says we have to because we certainly don't. >> you don't have to. >> good idea. >> good idea. >> economically -- >> corporate tax rate for how long? >> capital is fleeing this country. and politicians are we'll stop it. >> for tax reform, the only two countries in the world that have higher corporate tax rates than the u.s. is chad and united arab

emrates. coming up vice presidential candidates facing off in virginia tonight. tim kaine is from virginia. john harwood is there and joins us next on what to expect. both mikes will be working tonight. who is nifg. later in the show we'll talk to the managers of the trump and clinton campaign. i wish it was at the same time. but it will be good enough. kellyanne conway and robby mook. rhymes with hook. guess what guys, i switched to sprint.

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hurricane matthew set to hammer haiti today and the risk to the southeastern united states is rising. weather channel's kelly cass joins us with more. >> good morning. it's already hammering haiti at this hour. we have the outer rain bands reaching into haiti. portions of the dominican republic and even the eastern end of jamaica. we've had reports of flooding there as well. got the storm surge and tropical storm conditions that extend outward about 200 miles from this clearly defined center.

look at the eye right there in the middle. we're talking a high end category 4 hurricane. very dangerous in terms of storm surge. heavy amounts of rainfall likely here. we take the path right over eastern cuba. after making landfall on the western tip of haiti we do expect to feel the worse of this storm in eastern cuba by wednesday morning with winds of 130 miles per hour. not doing much weakening either. over very warm water right through the bahama islands. not going that quickly. raining hard. much of the southeast is now in that cone as we go out towards the weekend and still keeping those winds on the high end as well. so beach eremarks rip current as threat even if we don't get a direct hit from the southeast coast. hurricane warnings are posted in the purple from the bahamas through the eastern half of cuba. all of haiti under a hurricane warning. jamaica is a tropical storm warning as i mentioned those tropical storm conditions already battering the island of

jamaica and we'll continue to see torrential downpours with this system. we're talking well over a foot-and-a-half of rainfall but andrew some isolated amounts perhaps 30 to 40 inches of rain and in haiti where we have deforestation across the hillsides that could be devastating in terms of flash flooding and mudslides there. back to you. >> very selfish question. we're doing a "squawk" the vote down in jacksonville, florida on friday. if i were to want to fly there from new york on thursday what do you think the chances are this is going to happen? >> i mean friday into the weekend it makes its closest approach to the sunshine state. governor has declared a state of emergency for all the counties in florida. as we take a look at the path once again the forecast track for matthew we do think it will get very close to the east coast of florida. jacksonville certainly could get in on some of those heavier rain bands by the time we get to friday overnight into saturday as well. yesterday we had terrible

flooding in st. augustine. >> thank you. maybe we should go to another swing state this friday. >> the frief to florida, you'll see a lot of the country. >> we were going get a "squawk" the vote bumper sticker. >> that works. a winnebago. >> talk to people in every state. >> maybe we'll do that. >> be good four too. >> get out of the studio. >> it doesn't matter, you'll be fine flying. >> i'm worried whether i'll get back to you on monday. >> you could go through the eye and be fine because you always come back. let's continue this political news. hillary clinton taking a shot at wall street on the campaign trail yesterday. >> it is outrageous that eight years after a cowboy culture on wall street wrecked our economy we are still seeing powerful bankers playing fast and loose with the law. >> hillary clinton was referring

to john stumpf at wells fargo but jpmorgan chairman ceo jamie dimon took issue with what she was saying particularly lumping everyone into one fell swoop. he responded during an interview on "power lunch" yesterday. >> when people blanket a whole class of people by making statements i think that's just unfair to everybody. i can do the same thing about media, i can do the same thing about politicians or lawyers and it is just never accurate. this business is full of high quality, qualified, talented, ethical people, smart and ethical as you'll find in stoorgss almost anywhere. i wish people would stop doing that and figure out pembroke the law should be punished. let's take a deep breath. you all in the press don't have to fuel it all the time which is adding it, over simplifying it. >> but i'll still be voting for. the countdown is tonight in the first and only vice presidential debate. mike pence and tim kaine face

off at longwood university. >> it's got an interesting history. where the civil war ended, just one end of its campus and civil rights -- pretty big civil rights movement. a serious event happened there too. >> john harwood joins us now. people kid around and say if the first one was ollie frazier this is like the meeting of a book club on a tuesday night or something. but i think it should be interesting. there may be some policy discussion that might break out, surprising everyone, right or not? will they just trash the opposing head of the ticket, top of the ticket? >> reporter: well i think there will be a lot of that, actually, joe, especially in light of the tax story that donald trump has been dealing with for the last 48 hours. i can imagine a lot of the questioning will go to that subject and i think on mike pence's part he'll try to redirect as the republicans have

to hillary clinton. so i think there will be some focus on policy and some focus on the individual qualifications of these two men who by all accounts are mainstream figures within their parties and the kind of choices that we're used to seeing in past years. but this year, the top of the ticket gets such outsize attention i expect that will likely dominate. >> you work for the "new york times" and there's another fine journalist that works there that writes a good column every tuesday, it is ago cross from. i hope you've seen it today. >> save this tape. >> these nols, it's just -- the way corporations use the tax code, i'm not saying that every corporation that their main unit are accountants going through the tax code, but they usually got a couple hundred, anyway, that are looking for ways to do things. >> reporter: yes. >> whether it's general

electric. general electric, great american company, but things happen. 2008 they had huge net operating -- citigroup huge nols. sometimes companies even buy other companies that have nols, get rid of the assets and save the nols to go forward. apple hundreds of accountants looking at tax rates around the world. finding ireland. let's do this there. andrew's point is that trump is small time compared to a real american company on how to take advantage -- >> reporter: hold on a second. donald trump in 1995 claimed 2% of all the net operating losses in the entire country. that's not small time. 2% of the entire country. >> legal or not? >> reporter: i assume it's totally legal. >> there was some kind of settlement that took place later.

>> reporter: here's the question. were the losses that donald trump claimed that were a shield against $50 million worth of income every year, were those actually losses he incurred or losses that he was able to claim because of the real estate law but were incurred by other people? >> i understand. >> reporter: i think that's the question. >> for example, i read somewhere yesterday general electric bought some enron assets and there were net operating losses associated with enron. i don't have this absolutely confirmed but after reading all these things that's not unheard of either, john. >> reporter: i'm not saying it's unheard of. it's been examined by the irs. >> the point is there's a way of looking at all these things and if you come to the conclusion that a ways of looking at avoiding taxes does that allow a private company or a public

company to keep more to do what it's doing to expand plans, to hire more people, to do this? do you look at it that way where it helps a company succeed and operate by keeping it to use for corporate purposes or do you say you're screwing the fireman and you're not paying for defense, you're not helping with the roads, so depending on whether you want to press someone or support someone on it it's the two sides. that's my point. just to say all the -- >> reporter: i take your point. >> all the middle class people have to pay for everything and you're not paying for anything but can you say that -- you can said about apple. because you're talking about tens of billions of dollars that if it wasn't set up a way where it would be domiciled in ireland that tens of billions would be going firemen and hospitals and everything else. >> is this corporate taxes or personal taxes. >> in real estate it's all

together. >> reporter: joe -- >> philosophically some people think you should maximize taxes, that that's a good use of capital. other people think capital should be left in the private-sector. >> reporter: joe, i take your point. it's a good point. don't you think the way to look at it is on a case by case basis and see what the circumstances of the individual case are and -- >> the minute i find -- >> reporter: how real transparent losses and that sort of thing. >> in a perfect world. the minute i hear legal, okay you have a problem with the tax code. >> right. which begs the question will donald trump change the tax code. >> you have to decide -- i'm more interested in overall -- >> reporter: joe, the house republicans had a provision that would curb the use, in their tax plan that would curb the use of

net operating losses. that is not in donald trump's tax plan. >> okay. i don't know what final one -- i don't know what the final plans -- a lot of conjecture. i don't know. we'll see, john. we will see. we will see. >> reporter: you watching tonight? you going to stay up until the end. >> starting at 9:00. set me back last week. set me back for the rest of the week. i was up to 11:00 that night. i'm old, john. look at your hair. you're gray. you're worried. >> you can do it. >> reporter: really? >> to watch the veeps? maybe i'll record an episode of veep and just watch that. anyway. >> reporter: be good. >> see you. coming up, gig economy company likes uber have changed the game. are the tradeoffs of convenience putting american workers at risk. we'll have that discussion. as we head to the break take a

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points. s&p up by under a point. nasdaq up by 11 and a half. sterling dropping to the weakest level to the dollar since june ever 1985. plunge in the currency coming after uk prime minister theresa may said she would trigger the start of the brexit by the end of march. she said this yesterday. what's more concerning in her comments was the idea she said she's going to make sure immigration and a right to refuse anybody coming in to the country is front and center and more important than maintaining trade relationships with temp your honor. that resulted in this drop to the lowest level since the '80ss. >> build a wall? >> i don't think she needs to. >> they have water on all sides. they are an island. look, the real power behind the brexit vote was concern about that. >> that's what i mean. >> so it's not going good. not just here. i mean, if you were in the uk

and you were used to sovereignty and then all of a sudden -- >> you had some terrorist attacks on your soil. >> see what happens to their economy. >> 1.26 on the british pound. >> at the moment. you'll see what will happen. we're counting down to jobs friday companies that make up the on demand economy like uber, lyft, said to be shake up the labor market. are workers being cheated in the process? that's a conversation we'll have now. joining us to talk about this and the role of the gig companies, steven hill author of "raw deal" how the per company and runaway capitalism is screwing american workers. help us understand what you mean by this. what do you mean? >> good morning. the problem is when you have companies like uber and task rabbit, some of these new online, on demand companies they specialize in, they themselves only have a small number of regular employees. but they use technology to hire

an army of freelancers and contractors and those freelancers and contractors really don't have any kind of safety net, any health care. they don't even have injured worker compensation. if they get injured on the job, something happens to them they have to pay for it themselves. if they have to miss work because they are injured they've pay for it out of their own savings. they don't have any paid sick leave. these are not great jobs. these are the types of jobs that have replaced many of the good jobs as they are called that we lost in the great recession of 2008-2009. this is where the growth in our economy in terms of job development is happening. >> i won't disagree with but i'll ask you this. there's an argument to be made at least for some this is a new economy that allows certain people who have jobs already to get a second income, people who want to have more flexibility. do you look at any of this and say there's a benefit?

>> certainly i would say if you're working this way and it's working for you then keep doing it. i interviewed a lot of uber drivers, for example, and typical tune you hear is, first six months they say oh, yeah this is working okay, i'm make being some extra money in my spare time. you check back in with them eight months, ten months into their experience and then you hear a different tune because at that point it's really a very unilateral platform. uber cuts the amount they give to drivers on a very unilateral basis. they can cut off the platform at any moment. drivers have a sense they are not a partner as uber likes to call the drivers. they are just kind of, one driver said i feel like i'm on the bottom of uber's shoe. these are the type of jobs being created. i think we have to ask ourselves can we do better? especially when these workers don't have access to health care. it's quite expensive to buy it on your own as an individual. you know, can we come up with a

way to make it okay to work part time. that's the real challenge. >> in the day and age of technology that's creating this sort of gig economy, freelance economy and i think arguably the sort of steady march of technology is going to move us more and more in this direction, what do you do about it? >> well there's a few things i think we can do. one is we need to create what i call a portable safety net. the idea that, you know, regardless of who the worker is, whether they are regularly employed or freelancer or contractor, whatever the type of employer is that they can get from that business who hires them a certain amount of support in terms of a safety net. so used to be a lot of workers worked full time for a single employer. but now more and more workers working part time for multiple employers. so the safety net was never geared for this type of worker. what we can do have each business that hires this worker

pay a little bit more above the wage into what i call an individual security account that would be prorated to the number of hours that worker works for that business. if you work ten hours they would pay about a inquiry of what would be a full time safety net for that worker. then that worker would use that, those funds to purchase her or his safety net. i think if we do that that would do a lot to relieve some of the anxiety that we see in the labor force that's leading to workers feeling so unsettled they are looking at candidates like donald trump. he's speaking to these issues in some ways. >> the economics, though, of the business, to the extent that we were to add on some of these additional fees and taxes to the companies, given that -- with the exception of uber and some others most are relatively unprofitable business. does this whole world go away >> you mean the whole world --

>> the gig economy lives on a razor thin margin. i'm trying to understand economically how much in terms of taxes safety net we can add to that and have that business still thrive to the competent you want it to thrive. >> sure. >> and be able to take care of employees. >> well, i've done some economic modeling on the proposal i just put forward using bureau of labor statistics. what it shows for service sector workers it would cost an extras $2.50 per hour to pay for a comprehensive basic safety net for these workers. it's not that much. if all businesses are subject to this then no one is hurt compete swrifly more than any other business. they pass the cost on to consumers because that's ultimately the biggest pool of people that can pay for this type of insurance system. so i don't think it's going to negatively hurt businesses. in fact the economy would adjust

quite well. a lot of people said raises the minimum wage would hurt workers ultimately. there's none of of that. the economy adjusts to these sorts of things. it's a matter of how do we more broadly share the prosperity and doing it in a way that doesn't negatively hurt these businesses and prevent them from innovating but does allow them to pass on some of the gain they are making to their workers as well. this is aldoable. the other thing we need do is data is emerging as a huge battleground in this new digital economy that these workers -- they need to know who each other because they are working anonymously. it's very hard for them to organize and, you know, work together to improve their conditions. so having the data that allows the home fine each other also becomes an extreme lui important issue as we look forward in how to make this new digital economy work. >> steven, thank you for the conversation. it's an interesting one and a

debate that will continue. appreciate it very much. >> coming up wikileaks founder julian assange speaking in the last few minutes and said there's some big disclosures coming that could shake up the election. as we head to break here's a big check in what's happening in the european markets right now. for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't.

and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. ♪

welcome back to "squawk box," everybody. again the u.s. equity futures a little bit higher but coming off the highs of the morning. s&p futures have turned around. down by less than a points. dow futures up by five points. nasdaq up by nine. this does come after a day of gains yesterday. right now time for the executive edge. new report shows political risks like brexit and the u.s. election are scaring companies from making deals this year. global m and a volume has slipped 22% through september to 2.5 trillion. this would end a three year winning streak. technology is the most active sector for deals with $745 billion worth of tie ups. volumes last year's sector, health care down 8.5%. election takes part of this. there's a whole lot of other

issues like market valuations. >> news out justin last few minutes, wikileaks julian assange promising ten weeks of disclosures. subjects include u.s. election, oil and war. he was speaking in commemoration of 10 year anniversary of wikileaks. worth noting there were some cables that hillary clinton wanted to take him out with a drone that might be his inspiration. >> he's mad. he's been mad for a while. the battle for the white house is extending to internet to name names. wired is reporting trump campaign now owns the site clintonkaine.com. the page is a host to a collection of negative headlines about hillary clinton and running mate tim kaine with a small tag at the bottom indicating who owns the site. the former owner bought the demand in 2011.

>> that's thinking ahead. >> "usa today" reports he sold it for 15,000 after the clinton campaign offered 2,000 and then during the republican primaries the trump campaign bought jeb bush.com which would be directing people to its very low energy official website. >> that's really good. speculating. >> i got it. >> low energy? >> what should we pick foupt speculate right now for next time. >> four years. paul ryan something something. >> a lot of money trying to figure out who it will be four years. >> they are all ten bucks. >> you can spend $1,000 and still be wrong. >> i like your thinking. paul ryan in four years. trump won't be running for re-election, of course. >> that was not my thinking. of the many options might be out

there. >> when we come back, everybody, who will run against hillary in four years. >> red flags in new york real estate market, rocket frank has got a very special report on the signs of a slow down. we're back in a not. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. 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 to "squawk box" this morning. the high end new york real estate market showing some signs. >> it was the worst third quarter in more than five years. real estate sales in manhattan falling 20% in the third quarter compared with a year ago. as wealthy buyers are basically pulling back spending on new luxury condos and a lot of those new buildings are piling up unsold. let's take a look at those numbers there. there were 3,000 sales in manhattan down from 3600 last year. that's according to a report from miller samuel. the number of properties for sale also rose. the time it took to sell a property went up. there's now a six month supply of inventory. that's still fairly low on a

nationwide basis. for new york it's much higher. now, bidding wars are fading and discounts are getting more common though discount is a relative term in a city where the average price is $2,032,000. especially the trophy apartments in condo towers. new development jumping 27% in the quarter. that's growing two and a half times faster than the inventory of retail apartments. and it's likely to get worse. artificially inflated by apartments that went to contract in 2013, 2014. they're only closed now because the buildings are finally being completed. an $88 million penthouse at 432 park avenue. it's also the highest residence ever sold in manhattan. and went to contract in 2013. the buyer at that time reported to be a saudi retail magnate.

not many right now where oil prices are where they are out buying $88 million apartments. >> it was high. that's what you were saying. right? that was my question. >> 1400 feet high. i think that building is 85 stories. >> wow. that was my question. you know, if you could pick one in new york city, do you get the five floor townhouse on the upper east side or one of the top floors with charlie sheen -- buddy fox floor to ceiling -- >> i get nervous being that high up. >> i do too. no fire escape. >> the services. >> would you go for the high? >> you open the win done and you're blown -- >> you can't open the window. >> so you want the five floor townhouse. >> with the butler. >> and the private garage. >> otherwise then you have to go high. >> you like high floor to ceiling glass. >> for the services. >> like doorman? >> oh, these buildings have way more services than a doorman.

>> they have spas, play areas for your kids, pools, gyms, dry cleaners. they have all this stuff. you never have to live. >> it's like living in a hotel. >> living in a city so you don't have to leave. cruise ship. that sounds like a cruise ship. >> $88 million is just like -- that's stupid money. i mean, that is like -- even having that much -- >> it's oil money. >> yeah. would probably sell for 100. >> not right now. >> so you like the services? so you might go for one of those? >> no. i think -- >> stick with the -- >> yeah. >> stick with real life? >> yeah. the townhouse. >> down to earth. the multi-million-dollar townhouse. >> for me it's the secured, gated community. where no one gets in. no, i'm kidding. >> thank you, robert. there's a pitch to save new york's famous carnegie deli from

closing. yesterday a former dishwasher of the business announced a $5 million offer to buy the deli known for pile high pastrami and corn beef sandwiches. i've been there. it's great. no word on the -- >> i didn't understand why it was going to close. it seems like a viable business with a great brand name. >> real estate is pricey. >> so it's hard to pay the rent. >> the pastrami sandwich already is about 18 bucks. >> seriously? >> maybe more actually. when we come back, tonight's vice presidential debate in focus. we're going to speak to the campaign managers. kellyanne conway and then robby mook. "squawk box" will be right back.

this is me, using a wrench to build a jet engine. well we thought ge programmed machines to talk. ge is an industrial company that actually builds world-changing machines. machines that can talk to each other digitally. hello? they don't talk to each other like that, ricky. shhhh, you'll anger it. he looks a little ticked off now.

the pound pounded. brexit fears are back and no settlement for the doj. we'll hear from bob dahl on the issues that matter most to your money. your money your vote. trump campaign manager kelly an conway joins us to preview tonight's vice presidential debate. and matthew on the move. the category 4 hurricane hitting haiti. will it threaten the east coast of the u.s.? that latest track is straight ahead. the second hour of quarterback 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. i'm joe kernen along with becky quick and andrew ross sorkin. the futures at this hour are flat sort of begin but up.

the nasdaq looks good up ten points or so. and the dow up ten. couple stories this hour. the pound slipping to a 30-year low. yesterday uk prime minister theresa may set a march date to start exiting the european union. and the ftse rising on a weaker pound. also deutsche bank getting a boost overseas this morning. remember the market was closed in germany yesterday. you didn't get to see the true action there. the banks still trying to hammer out a deal with the justice department and so we'll see whether a deal gets made and at what price. finally we will be talking about the implication for u.s. banks with robert albertson. shares of astrazeneca under pressure as well. the heart drug brilinta failed.

google expected to unveil new smartphone they invented today. to be released under the pixel brand. along with the new phones google expected to showcase some new hardware including a voice controlled speaker system to challenge amazon's echo device and a virtual reality headset. i'm looking forward to checking that out. >> yeah. you like the virtual reality headsets. >> but also this google home is. we have the echo house. it's named alexa. we actually had a woman named alexa which was confused. >> so your house is bugged. . >> only in one room. >> don't talk about me in front of -- i don't want to have that come out or something. okay? >> we turn the sync on. >> had another awful day --

>> we whisper. we are watching shares of netflix this morning as well. that stock closing higher by more than 4% yesterday. on wall street chatter disney could be looking into purchasing the streaming company. disney's been looking for ways to beef up its streaming interest. in august the company invested a billion dollars in bamtech. and last year they launched disney life. it's a netflix style service for its movies and tv shows. >> it'll be interest to see if that pans out. i remember doing an interview with them last year and said this is weird. why does this make sense them sitting together sfp this was a "vanity fair" thing. it's a small world after all. >> that was clever. >> thank you. risks such as brexit and the u.s. election are scaring companies from making deals this year. according to a dealogic shrimped

22% in september to $2.55 trillion. the most active sector for deals in tech. volume among last year's top sector, health care is down 48%. >> why would anyone want to get a brand new, like, phone that is like totally different from what one that you have? you know? >> this is from a man who doesn't like change. >> but the google thing. i'm just thinking about what it would take to learn it. >> and to transform the rest of your life over from it. >> about all the downloading from my iphone. now all my e-mails like if they come from one person, they're on top of each other. what happened? i can't -- and that's just a new operating system. >> people used to complain about that. stuff would get lost. >> these phones are not going to be that different. they're going to have a different brand. they're going from google nexus to google pixel.

>> all right. nexus going -- >> see, this is why apple has you because you live in their universe. your live in their sphere. and with your music and everything else, your photos there, the idea of transferring is daunting. >> apple music changed a bit with this operating system. i couldn't figure out how to get off of shuffle for like a week. so i wanted to just listen so something one song after the next like i'm used to -- >> and i think i'm the one who's technically challenged. >> i finally found it now. tweets. you know when you send a tweet to someone, you know, you used to hit something at the bottom. those three little dots. you could forward a tweet. i didn't think they were letting us forward tweets anymore. now it's on the side. you press that to find. but it took me a week to find that. so even the operating system -- >> that's why i haven't downloaded the new operating system. >> you should host a separate show in addition to the current show maybe in the evenings called technical assistance with joe kernen. then you could go through all of

the different new functionalties of technology every day that you learn about and tell the public about them. >> the comedy channel has some openings in certain hours. they're probably going to have more. as the fourth quarter gets under way and factors that could sustain a rally. we're joined by bob dahl. chief equity strategy and senior portfolio manager at nuveen. earlier, bob, you know, we're a business network but it's this debate tonight. okay? and we can't help but be sort of in a -- i don't know. there are things that aren't usually associated with normal business news that are happening. only every four years but it's a real thing, isn't it, bob? maybe earnings. once we get to earnings season we'll be there again. maybe it's back to business as usual. but we're kind of held hostage by politics. >> we are. but i think we way overdo the importance for the markets of

who sits in the white house. 90% of what hillary clinton is saying, 90% of what donald trump is saying they won't be able to do. the house republicans won't let them. so it's silly season and it's a good reason to sit on my hands and not do anything. but i think the day after the election the market's going to wake up and say okay that's who won now how's the economy and earnings doing? that's what matters. >> do you think -- let's go to what's been paramount in the last five years or so. that's the fed and interest rates. are we headed finally above 1.7 or the other way to test the lows in yields as growth isn't up to par? >> my guess, joe, is that 1.37 recently on the 10-year treasury was the low and we are in a multi-year bottoming process for rates. i don't see rates jumping much.

but i think the path of least resistance will be higher. inflationary numbers are picking up a little bit. real gdp is ho hum at two. i don't think the 10-year treasury should stay at 1.70. i think they'll drift higher. >> so the second derivative at the ecb and japan, have they passed it to where they're no longer becoming actually easier? or are they still in the process of actually getting easier or have they started at some -- i don't think they are. and not that we're held hostage globally, but, you know, can we go the other way with them still, you know, full bore headed towards easing? >> they are full bore. still an issue in japan and parts of europe. which is among the reasons why the fed has been so slow to raise rates as you know. many of us would have argued the fed should have gone sooner. they are fearful if they raise

rates they're going to trigger a dollar rally and we'll be back in the soup. i think they will still gingerly move forward and keep their eye on all those variables. you're right. we're held hostage but only to a slight degree. they've got to watch the nominal gdp number. it's still slow. but real is running two and inflation is heading towards two. that means nominal is heading towards four. i don't think that's consistent. >> we can really diverge then, huh? it would be nice. i hate having both the economy and the interest rate environment of the rest of the world. because we've always -- you know, we usually do better. and to be stuck with -- and that's the excuse the fed keeps -- that's an excuse policy makers keep using. we can't do any better. we're the best house in a bad neighborhood. it would be nice to diverge some day. >> i would agree with that. and, you know, global trade keeps heading the way it's going, that is becoming less

important for global economies. we will detach. i hope we don't go there because global trade is important for growth. >> hey, bob, recently at this network, it was pointed out that there's been at least a nascent shift into more offensive sectors of the market away from defensive. i don't know whether that means it's time to, you know, to buy the defensive issues that have gone down or to buy the offensive issues that have already moved a little. do you think it's a sustainable trend to go into cyclicals? >> i do, joe. i think you point out something not a lot of people are paying attention to. there was a big shift around the middle of the year from what was to what is. and the sectors first half of the year, utilities and telecom. the worst sector since then, utilities and telecom. what's come on the other side? selective financials and technology. you know the story. so look. if growth slows, we can't do that. we're going to get a gdp print

for the quarter here soon. we're probably going to be close to 3%. i guess that goes with the second quarter which you average and get two. but i think the valuation rubber band has been stretched significantly in the direction of i want to own the cheaper more cyclicly oriented and i want to make sure how much of the low vol things that i own. >> okay. all right. thanks, bob. >> all the best. >> i can go to settings and do -- turn on -- everybody's telling me this. people here, people on twitter. turn on most recent on top. so if i have that show, i'm going to have stuff here so that i can get information as the show's going on to then give to -- >> to help. >> yeah. >> you need a call-in line. >> that's true. >> not everybody is as considerable with -- i'd just get rid of that gordon gecko

thing he had. >> the brick phone? >> yeah. >> i think this show could be very popular. could be. >> on comedy -- >> no. i think there's a huge audience for this. this show. >> i would call in. i need help all the time. coming up, iran oil exports adding to the global supply gut. we're going to get an outlook for prices and talk america's energy policy with the ceo of the american petroleum institute. then later kellyanne conway is going to join us to preview tonight's vice presidential debate. we're back in a moment. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

in 1995. >> as a businessman and real estate developer, i have legally used the tax laws to my benefit. and to the benefit of my company, my investors, and my employees. i mean, honestly, i have brilliantly -- i have brilliantly used those laws.

>> trump fired up supporters by vowing to fix the broken tax code. meantime hillary clinton continued to attack trump's tax comments. >> in the debate he said it was smart to avoid paying taxes. yesterday his campaign was bragging it makes him a genius. here's my question. what kind of genius loses a billion dollars in a single year? >> this presidential campaign has focused on jobs and taxes. but unlike in other election years when things like high gas prices took center stage, energy has shifted a bit to the background. with just a month left to go in the race, our next guest believes energy has a more dominant role to play. we'd like to welcome jack girardi. thanks for being here today. >> thank you becky. always. >> we have not heard a lot of the energy issues come up like

in years passed. it's likely because people aren't mad about energy right now. they're paying what they think is pretty decent price for filling up their tank. what's happened as a result? >> what we see today is it's brought benefit to the consumer. every consumer now saves hundreds of dollars a year on gasoline. when the prices go down or are stable in the low $2 for a gallon of gas, the public tends not to think about it that much. >> yeah. the view being if it ain't broke don't fix it. what do you think's broken? >> well, i think right now the focus we need to place is more on the infrastructure question. and you see that out in the heartland of the united states. to continue to be competitive and to move this vast product that we have, oil and natural gas, we're going to need more modern technologies and infrastructure build. those seem to be some of the issues that are more front and

center now. >> both candidates have endorsed infrastructure. they haven't been clear where they want to see that spent. both candidates are talking about spending more on infrastructure in general. >> and i think that's an important focus. but i think it needs a broader focus on energy specifically. the reason i say that is we did an analysis about three years ago that shows there's $1.1 trillion. that's a "t" trillion dollars in potential investment in the next decade in the u.s. from we believe there should be more focus. how do we expedite the permits and get product across the country in a way to benefit the american consumer. >> when you say energy infrastructure, what are you specifically talking about?

do you mean pipelines, roads? what are we talking about? >> we're talking about all of the above but pipelines are a big focus right now. some of the critics of fossil fuels have now identified infrastructure projects as their main focus to stop our american energy renaissance. we think the public ought to come together with our politicians on how to expedite the permits. how do we move the product safely as we demonstrated we can. but how do we get it to the market most efficiently not only for domestic consumers but our potential now to export to benefit people worldwide, to continue to put downward pressure on the price of energy. >> you're right. these are issues that take on a lot more focus when consumers are mad, when they think they're not getting a fair shake. i think it's going to be a much tougher issue to get politicians to pay attention to something like this. when prices are low, consumers

aren't angry and you have things -- let's just talk about fracking and what we've seen in oklahoma with the number of hundreds of earthquakes. they think it's because of the dirty water being put back in and that it has destabilized things on some of these plates. that is a difficult issue to get a politician to say anything other than we should be looking into this and be figuring it out before we go forward. what do you say to that? >> there's clearly a focus in places like oklahoma, colorado, and elsewhere about the new technologies. we shouldn't forget, though, that service horizontal drilling that brought us our renaissance. plus there was a study that shows there's no impact as a result of hydraulic fracturing. >> if you look at the numbers there and i did recently and gone because because i had a lot

of people come back and tell me it's not a problem. if you talk to geologists on the ground there, you're now talking about roughly an earthquake a day taking place in a region that never had earthquakes before. you think it's not related at all to fracking? >> the issue in oklahoma now is being driven bethe state geologists. we encourage the state regulators to come and work with us as an industry. we're doing further seismic tests, better understanding of what's taking place in that state. it has a history of some movement, but the -- >> not like this. >> but the reinjection, if you will, is what they're looking at and the causation that's there. we believe it needs additional study but we also need to recognize the ability to harmonize the need for energy with the other considerations that come along with that energy development. >> let's get back to your point on permits and make sure they move through. where's the biggest hold up? >> right now we see -- we've got great concern over this dakota pipeline that took place out in

north dakota. it was improved by the corps of engineers. it was challenged in court. the judge looked at the process and said not only have all the requirements been met, but everybody has been consulted in the process. the process should move forward. within one hour of that judges decision, the administration stepped forward and said, yeah, but we want to put this project on hold. it's that arbitrary uncertainty that sends a chilling effect clear across our economy not just in the energy sector. but for other infrastructure as well. we have to honor the rule of law. that's one of the things that sets the united states apart, that makes us a great place to invest, to build, to develop this infrastructure. and when we have politicians, if you will, entering into that conversation making arbitrary decisions. it hurts our ability to do what's essential for our economy and for the energy infrastructure. >> i guess that would explain some of the low capital spending

that we've seen. >> well, it does. of course the market conditions out there were trying to find the new normal, if you will. but long-term the resiliency of the u.s. producers is really quite a remarkable story. and we look at its global implications. but also its domestic implications in what we could do right here at home creating great jobs, bringing low cost energy all for the benefit of americans. >> thanks for joining us today. >> thank you, becky. always good to visit with you. >> coming up when we return, donald trump campaign manager kellyanne conway is going to join us to preview the veep showdown. and later in the democrats' turn. hillary clinton's campaign manager robby mook is going to join us. quarterba "squawk box" returns in just a moment. guess what guys, i switched to sprint.

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still to come, hurricane matthew on the move. the east coast preparing for a wet weekend. get the details straight ahead. plus a preview of tonight's vice presidential showdown with donald trump's campaign manager. right now, though, as we head to a break, take a look at today's u.s. equity futures. little bit higher. dow futures up by 14.

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welcome back to "squawk box." among today's top stories, we're watching the currency market. the plunge in the currency coming after uk prime minister theresa may said she triggered the start of a brexit by the end of march. jeff flacker is going to be speaking at 8:30 eastern time. then tonight charles evans is going to be speaking. google is holding an event in san francisco today where it's expected to introduce a lot of new hardware taking on amazon and apple. most important product is google home. it's the voice activated smart speaker that would directly challenge echo. expect more details on the system's price and availability a little bit later today. in monday night football, the minnesota vikings playing host to the new york giants in their new home u.s. bank stadium in minneapolis.

and things went the vikings' way. minnesota is now 4-0 for the first time since 2009. i had some people telling me that they're a team to watch. my question was, okay, i thought the cardinals were good. what happened to arizona? someone had said it to me before and what else did i think. some of the teams that had been good are suddenly -- like dallas. they finally have a quarterback. you know what? >> or new england. even sans brady. >> right. we're not talking business angles but we are waiting for someone to get here. so you're damned if you do and damned if you don't. we can't just talk football. but i'm going to. are the giants good on defense? >> you're asking me? >> yes. stocks to watch today.

astrazeneca says that its heart drug brilinta failed in treating patients with serious circulatory problems in their legs. following disappointing results with a similar drug. and team health is buying florida emergency physicians. terms haven't been disclosed. fep provides emergency medical staffing for about 600,000 patients a year across florida. cypress semi taking a cut related to severance payments in the third and fourth quarter. we're also watching shares of netflix this morning. that stock closed higher by more than 4% yesterday on wall street chatter that disney could be looking into buying the streaming company. that's been out there over the weekend. we'll see what happens. and darden restaurants

posting higher than the 82 cents expected revenue. same store sales rose 1.3% of the quarter. darden raised its full year outlook and the board authorized a new $500 million share buyback. i think we should all go to olive garden to celebrate. >> you know, i like that alfredo sauce, but it's too fattening. >> all you can eat. >> it's too fattening. >> yeah. andrew can do it. he's got a hollow leg and he's young and youthful. >> he had five doughnuts. literally watched him do it. >> we had another voice. go head to head in the first only vice presidential debate. according to reports, mike pence has spent the last several days in mock debates as he gets ready to face off with virginia governor tim kaine. joining us now with more on who

exactly vice presidential candidate pence is -- that's one way of introducing it, you can tell us about that. donald trump's campaign manager kellyanne conway. before we get to the overall state of the campaign, who is mike pence? >> pence has spent 12 years in congress. i would like to say he was in washington but never became of washington. ten years on the foreign affairs committee. great tax cutting rb regulatory cutting record of course. free market guy. as governor of indiana, i mean, his record is really remarkable over the last almost four years. he has cut taxes 5% across the board for individuals and employers. the unemployment rate has been slashed in half. you compare that to governor kaine, not to be confused with mayor or senator kaine. when he was governor of virginia, the unemployment rate soared and he called for $4 billion in tax increases. you're talking about a tale of

two governorships. i know tonight they will be tasked mainly with going on offense against the top of the ticket for the other side. but i do hope that we get a chance to examine their gubernatorial records because they could not be more different. >> robby mook is going to be on later. that was going to be my question for him. from the data, both unpopular candidates. so both of them think that the way to do this is to capitalize on the unpopularity. you know, i don't know whether that's good. >> it's also their job. even with vice presidential quayle who i know you have as a frequent quest. in that debate in 1988, he had done his job before benson pulled the job he pulled. quayle spent much of that debate going after michael dukakis and why he would be unfit for the presidency.

that is their job tonight. i know that mike pence is ready to go on offense. he's a mild mannered guy. he's got a lot of great lines. he used to have a radio show before his political career. he called himself rush limbaugh on decaf. >> for pence, they will i think focus on his social issues record. and they'll use that as a negative, i think. in terms of i don't know whether it's lbgt or something or women's issues or -- he's known as a pretty strident social conservati conservative. i think that may be the weakness they go after. >> well, they can try. i think all issues are women's issues, by the way. i've been doing this for 28 years. i've never once heard the phrase men's issues. it's believed men can handle all the issues. i believe the same with women. i really hope the moderator goes after to ask tim kaine why the

same week he was selected to be the vice presidential running mate, he praised tpp and then it was oops, i didn't mean that. i'll be a flip-flopper just to become your running mate. he's disagreed with her on a number of things. i hope that's raised as well. >> let's go to the past ten days or whatever. i have a -- and i don't know what you think of 538. but junkies look at everything that's out there including real clear politics. on september 26th, the now today vote if it happened today hillary clinton was at 45.1% and donald trump was at 54.9%. within nine days as of yesterday, hillary clinton has risen to 78% for now vote and donald trump at 22%. >> yeah. that's all over the map. donald trump started at -- >> whether it's miss universe. my only point is, i know you. i wish i had seen you behind the

scenes as this 3:00 a.m. tweets were going out. >> i was sleeping. >> what do you do in the morning? >> when you saw him the next day and just watching it, you saw him get set up by hillary. their research, the dnc research found this woman. she brings it up at the debate. it's out of left field and has nothing to do with issues. brings it up and it goes on and has legs for a week because mr. trump can't seem to leave it alone. >> it has legs for a week because you mentioned the most important point here is that hillary clinton refuses to talk about issues. tim kaine on the stump never talks about issues. they talk about donald trump. do we want this election to be -- >> he helps them stay on this message. maybe he needed to say, look, it was a beauty pageant. butte -- >> he said he saved her job. he said that many times.

he gets lost in himself. hillary clinton wants you to talk about that because she never created a job. how do they make their money? through speeches. she didn't have a company. these people have made their gazillions of dollars by giving speeches, by trading favors from the state department to foreign nations. why isn't anybody disturbed about that? what can possibly be the but? >> the possible but and i'm just curious because i think we all have a lot of respect for you. >> thank you. >> but the question is when you see those tweets go out at 3:00 a.m., when you see him mock hillary clinton's health issue if she has a health issue -- i don't want to go too far with that. when you see him call people losers, what do you think of that just from a civility, being a respectful person? in america. >> well, first of all donald trump massachusethas a right to himself. you've never seen such a

coordinated attack on somebody. but secondly i think donald trump is at his best when he sticks to the issues, when he talks about the failures of obamacare. he should channel bill clinton who yesterday on the stump trying -- >> but the issue of the temperament. >> i didn't say that. i think she's got a terrible temperament. why aren't i 50 points ahead? that's just bizarre and we should be playing that. i can tell you why. she's not even at 50%. because people don't trust her and don't much want her to be president or commander in chief. i think telling the truth is a presidential quality. not just temperament. everybody' throwing these qualities in their polls now that they think hurt donald trump. what about voracity, truthfulness, judgment? hers has been terrible. what's her senate record here? yes, everybody voted for 9/11 health benefits, of course. but she -- you know, what really has her -- and that's very virtuous. what had her name on it? she like renamed a highway and a

post office. these were her big accomplishments. >> but i don't think it's going to win a popularity contest. that's why gary johnson has 10% in the polls. >> this is a show -- i watch your show every morning that's about issues. and it's about financial issues. it's about jobs and regulation. >> can i tell you something? this may to your credit or donald trump's credit. i was in des moines last week. you could talk to them about issues all day, not interested. not interested. whatever they're voting on is the personality, the temperament. they either like hillary clinton or they like donald trump. or they hate hillary clinton or they hate donald trump. sadly i wish it was about issues. >> didn't you find it wasn't just personality. there's also the strong leader a enthe change. it's always been about past versus future, disrupter outsider versus insider. >> we just had a market guest who said the market is all

a-twitter right now because they're worried about what it's going to mean. in the end it's not going to mean a whole lot. neither one are going to make significant change. the republicans in congress or the democrats on the other side are not going to make massive changes. do you agree with that? >> no, i don't. i think donald trump is well positioned to enact things that all these presidential candidates and indeed presidents from both sides of the aisle promised and never delivered. i think people are willing to roll the dice here. >> can we talk about taxes for a minute? and i'm not even going to go into the place you would think i would. speaking of the tax report from 1995. what i want to understand is he says he knows more about the tax code than anybody else. i want to know what he's going to do about it. would he change the tax code so what took place in 1995 couldn't happen again? >> well, you do know what he thinks about the tax code. about six weeks ago he came out publicly with his tax reform

plan. and it gives -- it goes from seven brackets to three brackets. a middle class tax relief. >> could you pull the effective losses forward for 18 years for real estate? >> been around since 1918. it's 100 years in the books. if this was such a issue for obama, why is it still there? because the reason president obama has never uprooted it, the reason when he had a democratic house and senate for his first two years, they never took this up for a reason. >> there are some companies that are around today because of that. it was beneficial. >> "the new york times" report this morning, in the year 1995, half a million individuals in this country leveraged that same provision. it's not a loophole. it's a provision in the tax code. it's been around for 100 years. >> is that a provision that would be stricken? we talk about complete overhaul

of corporate and personal taxes. that's something people on both sides of the aisle would like to see. a simpler tax code. there's still all these weird things that nobody knew about. these arcane issues in the tax code. all that gets stripped out too? >> there are plenty of arcane issues. he promised to make it simpler. it's meant to confuse and vex. and frankly he wants to reduce -- he said the only people who will be upset with his tax reform plan are the tax accountant preparers because they'll have -- >> so the next debate to look forward to after the veep debate, that is on sunday, right? >> sunday. >> so is there a different approach being talking about? for example, in this tax situation here, the next debate just, for example, i could see saying something like they ask about his taxes then he says look, is paying the normal

operating rate on $16 million from laureate university to accrue hundreds of millions of dollars -- >> it's not clear that was the case. >> okay. but we know there's hundreds of millions. >> it's not clear. >> it's not unclear either. >> you don't go into politics unless -- >> unless you're the clintons, i think. >> at least it was in the private sector. >> that's right. and creating jobs, by the way. creating jobs. >> so hold down for ten minutes about why he did this. like the last debate. >> it's a great point. if that were not on the minds of many americans, she would be ahead by 50 points the way she says. i mean, the fix is in for her. she's got all the advantages. she has all the king's horses, all the king's men, all the media coverage. but something's nagging at me. she only has 53% of women. there's something holding people

back. and to your point, if you haven't brought a company public, if you haven't hit the power ball, if you haven't inherited the money, people should know how you made that money. >> my point was not about that. it was about the way he last time focused on his own -- he seemed defensive. >> focus on her. you're right. by the way, to everybody's question about what would she do about this 100-year-old provision? maybe we'd know how she feels about it if we got the transcripts to the speeches she made to wall street. i have a feeling she's fond of this provision. >> you think she talks about nols? >> no, i think they're even more boring than that. >> here's the question. if we can get you the transcripts of those spich speeches, would donald trump release his tax records? >> you get that i'll raise you the 33,000 e-mails. >> might as well. >> we're using all the transparency of her tax records but we have no idea what his are. >> nobody confuses her with being transparent.

she set up an illegal e-mail server to cover up. and it compromised your security. >> where she said i think he's hiding something. and the irony didn't occur to your state saying -- i would have stopped the debate right then and say you're asking me whether i'm in the business of hiding things? wouldn't that have been your response instead of honoring that request and going back and talking about yourself and what you've done. you need -- you see what i'm saying? >> yeah. and he does a great job of that in our debate prep. the fact is that he was way too gracious to her. and i think you're making the same point. he got no credit whatsoever for being incredibly gracious to her at the beginning. what should i call you and then at the end -- >> is the next one going to get tougher? >> i think the next one is a great format for him. he loves being out there with people. he's had excluding yesterday he's had 350,000 people at his rallies just since the

conventions. she's had like 13,500 according to a statistic this weekend. that makes sense. i mean, he shows up somewhere and we have 10,000 people in the venue and 5,000 people outside getting in. she has 300 or 500. looks like a professor having a lecture. and these crowds matter. because he's used to engaging with people which is the town hall format. >> thanks. we have robby your counterpart. >> lovely. i love being his warm-up band. >> he's not in studio. >> he's not. >> good to see you. thanks for coming in. >> thanks for having me. coming up, we are watching deutsche bank shares. it could have implications for u.s. banks. "squawk box" will be right back. . i do the sales, the marketing. i have to do that from my phone. we use tons of data. i really don't have to worry about it 'cause everything is unlimited. i need data and i need it now. o

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. welcome back to "squawk box." we're going to talk about banks for a moment. they are in focus as a potential settlement between doish bank and department of justice. jamie dimon speaking to "power lunch" yesterday about the german bank and the banking sector. >> there is no reason that deutsche bank shouldn't get over its problems. they have plenty of capital, plenty of liquidity. we want all these banks to get through. >> joining us right now is robert albertson. he's a partners principal and

chief strategist. deutsche bank, do you agree they'll be all right or not? >> i do. i can't talk about specific companies, but it seems logical that eight years later with all the capital that's been jammed into banks especially european banks, the system is safe. there should be no issue. and the europeans probably need their banks four times more than we do because it's entirely bank credit that's credit there. >> deutsche bank is germany. germany will save them no matter what? >> no, no. >> you're saying they don't need the saving. >> i'm saying look at the regulatory trend now. trying to back down. not remove them. but just saying it's enough already. we've gone too far. used to be the other way around. and that's because you do need banks and you do need large banks as well as small banks to have momentum in the economy to support credit. >> what are the implications of this whole wells fargo scandal

dare i call it that. >> you have to assume they're going to go after whatever they can. i can't go beyond that. but i think about an industry where 1% over five years of people are fired. that's 0.2% a year. the attrition rate in banking is multiples of that. >> do you want to own banks in this environment? >> i do. the fundamental als are still there. you still have loan growth and uptick in provision. you've got 8%-plus growth. and you've got yield. >> but the interest rate environment itself, you think it's going to turn at some point or you just don't care? >> i do care, but i think for broader issues. i mean, if the fed is sitting there waiting for a 2% inflation number and a 2% gdp growth economy, come on.

it's not going to happen. meanwhile you've got bubbles everywhere. and by the way, housing prices. if you look at those closely, they're back up halfway to the last bubble. >> robert, we appreciate seeing you. >> pleasure. >> thank you for coming in. we just heard from kellyanne conway. when we come back, we'll hear from hillary clinton's campaign manager robby mook. we'll be right back. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit sprintrelay.com.

what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

your money your vote. we've heard from donald trump's campaign manager. >> hillary clinton refuses to talk about issues. tim kaine on the stump never talks about issues. they talk about donald trump. >> up next, hillary clinton's campaign chief robby mook. are the clouds clearing over the tech ipo market? we will tell you which private players could go public next. all that plus batter up. the boston red sox president will weigh in on the big business of baseball and all the business angles. the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc.

i'm joe kernen along with becky quick and andrew ross sorkin. the futures right now have been meh. up 18. i've got to use that. >> well done. >> 12 on the nasdaq and 0.65 on the s&p. the pound is trading at new lows. it's at 1.27 today. but it's been pointed out that the ftse is up 10% from pre-brexit levels. that's why people -- >> it's up almost 2% today. >> and there's the european markets. you can see the ftse again now over 7,000. let's get you caught up on today's top stories. jeff laker speaking at this hour. we'll bring you the headlines as they happen. about 12 hours from now we'll hear from voting fomc member charles evans. tonight's vice presidential candidates scoring off in a

debate. a survey finding hillary clinton is holding a 46% lead over donald trump's 40%. shares of deutsche bank swinging in volatile trading in europe today. this as investors wait to see if the lender can reach a settlement with the u.s. justice department. shares of darden getting a big boost. earnings topping expectations. also raising null full year guidance. that's good for a pop of better than 5% for the shares today. gold prices dropping to more than a two-week low and that is putting pressure on the names in the sector. and shares of netflix adding to their gains as the stocks grew higher. that disney could be looking into buying the streaming company. this morning stocks up another 1%. now back to politics this morning. we are a little more than a month away from the election and

the war on terror remains a top issue for people. joining us right now with his views on national security, former nato allied commander admiral jam admiral. you are now advising the clinton campaign on national security matters. so your role with nbc has been put on hold. good morning to you. >> hi, andrew. >> how are you? >> i want to talk about about syria in just a second. i do want to just mention this. which is we had that bombing just down here on 23rd street a couple years back. and the reaction to that from both candidates seemed to be a real divide. you could sort of see the distinction in how they approach this issue. trump talked a lot about immigration. hillary clinton talked about sort of intelligence that needs to change. when you look at sort of how

both those candidates approach this and i know you're advising hillary clinton, just speak to that division and what it means. >> i think you put your finger on it very well. another way to phrase it, andrew, is a trump administration as you look at their approach to foreign policy is more about building walls, about creates distance, about heightening security. and i don't want to use the word isolationalism and coming home. it's about connections. it's about -- but i would say broadly speaking we need more building of bridges than walls. >> isn't it a fair argument to say this was an intelligence failure but not an immigration failure per se, but a missing link in terms of what's going on outside of this country, people

going in and out of this country and what that ultimately means? >> it is. i think the way to think about that is part of the problem. that's more cyber security, more analysis of social networks. i think we can reduce the risks. the question is which approach gives you the better long-term uplift. and again, i would argue building cooperation will help you, but you do need some of the technology and guarding the wall piece of it as well. >> when we framed up this discussion at the top, we said that you talk about getting aggressive with isis by going to syria. what does that mean? how does it work? >> it actually starts in iraq. and that means cleaning out mosul. that's going to be a challenge. big city in northern iraq. and the reason for that is that isis is drawing a lot of resources out of that ownership,

if you will, of mosul. step one is that. step two is amp up the bombing campaign at raqqah. but step four to the t's is special forces and gradually surrounding the new raqqah. we'll need indigenous troops to do so but we're going to need leadership. >> what kind of u.s. boots on the ground does that require? >> i'd say about 6,000 to 10,000. so not an insignificant number. we're verging 5,000 now. probably 7,000 of them in iraq. 2,000 to 3,000 in a mentoring advising special forces reconnaissance kind of role actually rolling into syria. >> i wanted to get your comments and figure where you stand. you saw the comments by trump

and veterans with ptsd. what did you think? some people said it was over the top. some people said it was taken out of context. >> i think as a veteran, i wasn't overly offended by it. it's loose language that kind of makes veterans feel like we're lumped together as kind of weak. but people need help. it's another example of the vocabulary. but i didn't take it as a shot at the veteran community, no. >> fair enough. we appreciate your time this morning. thank you. >> thaurng. great to be with you guys. relationship monday fed president jeff lacquer saying there is a strong case -- below their 2% project.

but lacker has largely played out. maybe indicating that he thinks inflation could creep in. if you want to look at the futures this morning, we've been back and forth through the flat line much of this morning. we were up akros the board. this could be not much of an impact. now they're up by about eight points. and the nasdaq is still up to close to ten points. coming up, optimism in the world of tech. ipos showing that silicon valley is still alive and well. we'll break down the numbers after the break. [alarm clock beeping]

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welcome back to "squawk" this morning. political risks such as brexit and the political election scaring companies from making deals this year. the dealogics survey said this would end a three will have year winning streak. tech is the most active sector with more than $375 billion worth of tieups so far. last year's top health care is

down. the ipo market is on a slow pace this year. there only have been 75 new issues compared to 158 compared to a year ago at this time. those are out performing the market by about 21%. and 83% are trading above their ipo price. joining us now with more on e the ipo market, kathleen smith. she's from ipo focused etfs. let's start with this idea the numbers are down pretty significantly. when you look at health care, what happened? what caused this chill over the market? >> well, in august last year the entire -- the overall market did poorly and ipos in particular because there were many extended valuations and a pretty active level of issuance. >> they came out with prices that were too high. >> exactly. these companies corrected even more and it put a chill on

issuance and made the ipo investors very careful about what companies they were going to invest in. and most importantly then there was a shutdown of about four months where no activity happened whatsoever. >> where everyone said i'm going to see what happens to the market before i dip my toe back in. >> exactly. and these kind of shutdowns, they don't happen too much. four months is a pretty extended shutdown of no deals. when the window opened and our studies show when it opens it -- we call them ice breakers. we've been in this period of a very good period for ipo investors and positive returns. only better companies with strong returns are getting done. >> that's the silver lining you've been watching in technology in particular is that issues are coming to market. they're at better prices than they've been looking for before.

and as a result of winning as well. >> actually bb in our mind mind -- >> can we go back to the perennial debate about pricing. you're saying these are good prices. they're good prices before the investor is winning? >> i think in an apartment they have to offer something attractive enough. investors are selective. and we just -- priced above the range. and soared in its initial offering. when it first set its price, it was well below its peers. truly there was a lot of money they left on the table. but nornt to get the investor attracted, it's only reached sustainable level. >> should we expect to see some

of these unicorns coming to market too? that was kind of the expectation was okay these valuations are out there. if they come to market, they're not going to get that kind of evaluation. or do you think that has changed? >> the companies rf seen so far you could say nutanix was a unicorn. it was slightly below the last private round done in swrt. so ep there's a lot of capital market. they've been locked into the private market getting them out into the public market where there's more valuation sensitivity. >> very quickly will we see suber come to market next year? >> we think that the ubers and the air bnbs very large markets

make their view. if these companies can do a better job of making money as they have raising money, they'll fill into these high evaluations and maybe you'll value the economies with maybe lower multiples if they had. i'd like to see a prespecktous. >> kathleen, thank you for joining us. google is holding an event in san francisco today where it's expected to introduce a lot of new hardware taking on amazon and apple. the most strategically important product slated today is google home. it's like alexa. smart speaker that would directly exam amazon's echo. you're going to get more stuff that they're trying to sell you.

right? would you do that? >> google already nose everything about me. and they're going to know more. whoever knows more is going to win the game. >> you're constantly sneaking off to say bad things in other rooms. >> only when we're talking about you. >> which i hope is a lot. anyway, another products birming the had said to cost more than $600. and other items you might expect. a version of google's video streaming stick chrome cast. it will virtual reality headset for routers to better spread

internet connectivity throughout your home. we don't have any decisions on color for the router. very limited colors. >> black. >> probably. >> hopefully in your clodder. >> wikileaks founder julian assange is promising more releases about the election. "squawk box" will return. today, i am helping people work better... and also feel better. i am helping hospitals personalize treatments using billions of data points. and working with medtronic to predict the highs and lows of diabetes, hours in advance. and i am working with orreco to use biomarker data to boost the performance of athletes.

hello, my name is watson. working together, we can outthink anything. hello, my name is watson. now that fedex has helped us we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment.

i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce.

welcome back to "squawk box," everybody. the futures this morning have been bouncing back and forth across the flat line. you see that the dow futures are up by about nine points. s&p futures are down fractionally. nast dak up by about ten points. and we've been watching oil prices as well. big gain in oil prices sthorng. a litt-- wikileaks founder julian assange is promising ten weeks of disclosures with subjects includesing the u.s. election, google, oil, and war. so far not giving details. he was speaking earlier this morning in commemoration. posting and sharing videos online is many things.

talking about giving away everything for nothing. according to the experts you don't need to be experienced to find it. >> reporter: some simple photos posted online. but they may have a secret you don't want revealed. >> ipg b people don't know is how dangerous it is. >> reporter: it's called geotagging where your location data is automatic being dr-- th info leak potentially exposing your business dealings and your personal life too. takes the coordinates from his video and puts them into google maps. seconds later finding the city, neighborhood where this was taken. >> it could be a huge dangerous. >> and he says geo-loxs are

being used in every way. >> it's just a game wu give you you this. >> we should tell you cnbc is partnering with m.i.t. for the cam bridge. trying to discuss how to tackle the american threats. i will be off to cambridge tonight actually. >> yeah. >> flying to logan, i guess. >> that's my plan. that's my plan. thinking about the train. >> a misstep for facebook's new platform to buy and sell to each other through its mobile apps.

similar to craigslist. within houring you use it. listed as including drugs, sex, rock and -- weapons and even body parts. if you're in the market for a body part. you go here. facebook issuing an apology late last night. saying a technical issue may stop him from. and an update on kim kardashian's rob we. she's back in new york after reportedly being held at gun point in paris. among the items stolen, jewelry. when we return, hillary clinton calling out wall street on the campaign trail. we will tell you how jpmorgan ceo responded. plus hillary clinton's campaign

manager robby mook will join us. that is next. stick around. "squawk box" will be right back. guess what guys, i switched to sprint. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit sprintrelay.com.

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welcome back to "squawk box." here's what's making headlines this morning. richmond fed president jeff lacker says there's a strong case for raising fed funds. he argues that preemptive increases will be critical for keeping inflation stability. from falling oil prices and an appreciating dollar is largely played out. meanwhile sterling has dropped to the weakest level to the dollar since june of 1985. the plunge in the currency coming after uk prime minister theresa may said she would trigger the start of a brexit. . earnings were above expectations for darden. the dining chain is also raising its full year guidance and announcing a stock buyback. let's get a check on the markets this morning. we've been watching the u.s. equity futures and they've been bouncing back and forth. you're going to see right now they're still there near the

flat line. s&p futures are down but just marginally. dow futures up by about six points. the nasdaq by nine. mainland china is closed for golden week celebrations. we continue to see that today. the nikkei was higher. looks like our boards are frozen right now, but the nikkei was higher. hang seng higher as well. european markets have actually been doing fairly well this morning. we've been leading the way because of the ftse. we talked about the ftse up by 1.6%. again, this is because of the sterling move that joe was just talking about. as a result we have seen stock market there up substantially. stocks to watch today. shares of deutsche bank rising in german trading right now. they were closed for a public holiday yesterday. the question on the table will a justice department settlement be favorable or hurt the bank?

we will see where their number lands. deutsche bank getting a strong vote of confidence from a big name and competitor yesterday. jpmorgan's ceo jamie dimon. he said yesterday they'll be fine. >> there is no reason that deutsche bank should get over their problems. we want all our -- all these banks to get through because it's better for everybody that we kind of move on and just help do our jobs. >> dimon also weighed in on the scandal at wells fargo and john stumpf. >> john stumpf is a quality human being and a friend of mine. i want wells to get to the bottom too. obviously when these problems happen, every bank is going to cooperate which sha should and do course if they're disclosing solss on procedure.

stocks to watch. sales force.com is buying krux. the company provides other companies will information to hone their marketing. it already has a partnership with sales force. in german luggage maker db you know this one? romoa? >> i do not. >> for $719 million. the company founded in 1898 is known for its high end durable aluminum suitcases. popular among -- it says here popular among chinese buyers who use them to transport luxury goods bought overseas. very specific information i just gave you. eriksson is cutting 300 jobs in sweden. when we come back, clinton

campaign manager, robby mook will join us. and then quarterback sports. the bst ready to hit the mlp post season. they're staying good-bye to david ortiz. boston red sox president sam kennedy will join us after the break.

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box," everyone. hillary clinton calling out wall street on the campaign trail yesterday. here's what she had to say. >> it is outrageous that eight years after a cowboy culture on wall street we are still seeing powerful bankers playing fast and loose with the law. >> she was referring to john stumpf and the fallout from wells fargo scandal. but jamie dimon took issue with the attack. he responded to the comments on "power lunch" right here yesterday. >> when people blanket a whole class of people by making statements, i think that's just unfair to everybody. i could do the same thing about media. i could do the same thing about politicians or lawyers. they're just never accurate. you know? this business is full of high quality, qualified, talented, ethical people. smart and ethical as you'll find at institutions anywhere. i wish people would stop doing

that and figure out people broke the law and should be punished. let's take a deep breath. and you all on the press don't have to fuel it all the time which is adding to it and oversimplifying it. >> all of this comes ahead of tonight's vice presidential debate where kaine and pence will have to defend their candidates' policy stances. joining us is hillary clinton campaign manager arobby mook. >> thanks for having me. >> this has been talked about in the business world and on wall street in particular. a lot of people think they are being persecuted for other people's wrongs being lumped in with the wrong types. and it has certainly led to some populi populist animous. >> you mentioned what happened at wells fargo bank. some of the practices that we've seen are simply unacceptable.

and i think secretary clinton was simply trying to be clear that she will get tough if there are abuses in the system. i think what people find particularly outrageous, however, is that donald trump said he was smart after he lost almost a billion dollars and didn't have to pay taxes for nearly 20 years. i think that's what's particularly outrageous and, you know, i was frankly stunned that he said that. >> quick pivot, but that wasn't the question i was asking. i'm not quite done with this line of questioning yet. let's go back to what hillary clinton said. because again, i think you're right. nobody's defending wells fargo. it looks like there were some serious problems that happened there. but the idea of pitting all of business or all of wall street versus the rest of america, that is something that's gotten a lot of traction in recent years. how do we break that down, how do we stop it? i know it plays when on the campaign trail, but what do you

think this is all about? >> we're going to have to work together to solve all the problems we're facing. that's why the slogan is stronger together. a lot of americans are still very frustrated. this economy isn't working for everybody. and we've got to get more jobs created. you know, we've got to get our tax code figured out from the standpoint of fairness but also because we want a tax code that promotes more businesses here at home. look. the reason i touch on what donald trump said and the reason it is absolutely relevant to this conversation is he's a divisive figure who's going to be an impediment to solving some of these problems we're talking about. it makes no sense for the next leader of our country to be running around saying he's smart because he didn't pay taxes. what does that say about the rest of us who work really hard and pay our taxes or, you know, small businesses that pay theirs? so i think, you know, it'll be

interesting to see what mike pence has to say about this at the vice presidential debate tonight. >> isn't the issue ultimately assuming that what took place was legal and we have no information to suggest -- around tax policy that losses shouldn't be carried forward. whatever we all think about the tax code, shouldn't that with the focus of what's happening here? >> well, i'm really glad you asked that question. i completely agree with that. first of all, i don't think anybody contests the fact that secretary clinton and senator cain he's going to be in the debate today have detailed plans. how we get this economy working. how we provide small business the relief they need. trump has put out no specific plans. >> well, what i will say is when i look at the tax plans from each candidate, i have a hard time finding specifics on a lot of these issues. i mean, what's the corporate tax

rate that hillary clinton thinks is the best rate? we continue at 35% or do we cut it? >> i mean -- >> even obama has looked at 28%. >> i'm sorry? >> even president obama has said 28%. bill clinton told me himself that he thinks it should be lower than where it is right now. where does hillary clinton think it should be? >> well, i think there's broad consensus that a lot of people would like to lower it. but the fact of the matter is there are a lot of loopholes in the way of doing that right now. and the system is very uneven depending on a variety of different factors. that's the result of different people lobbying to get different loopholes in. but to the previous question, the real issue here with donald trump is it's not okay to say in a cavalier way it's smart not to pay our taxes for the president of the united states to be saying that -- >> but robby -- >> it completely contaminates the conversation. >> robby, you look at -- when you're in the private sector and

you're risking capital to try to make a return and create jobs, things happen as we know in the financial crisis great companies almost went under. they had carryovers they used to recover more quickly. apple has done certain things within the tax law that minimizes the tax liability. someone else would say the clintons have done very well and never risked a dime. whether it's hundreds of millions or tens of millions. they've accrued that without risking a penny. so to say you're smart but not paying taxes is not a pejorative. it's something i utilized for my business everything i can do under current law to make sure i have money in the operation of

my business. if you're stupid or not to lose a billion dollars, you're in the game. you're betti inting big and you risking capital which is what we do in this country. so i don't think it's so obvious that to say that it's smart you can just condemn the candidate for that. >> well, i guess what i -- where i would slightly disagree with that is donald trump has a lot of rhetoric about how he's going to bring all these jobs back to this country. he's fighting a rigged system. those are his terms. then for him to come around and pay taxes, that that's smart, i think that's completely out of touch with what working people are feeling nowadays. those who got let go because of his business failures, they had to pay on their unemployment insurance. he's talking about taking that to create a sham family leave plan. so i'm trying to hold him accountable for characterizing

himself as a champion of working people. we haven't brought up the fact that he's con stintly where to manufacture his products with b he shipped them overseas. he outsourced. so we're trying to hold him accountable for his own rhetoric. >> robby, the banks do perform a pretty good function in society. i understand the wells fargo situation, it's not even a one off. i understand that. but banks to provide the capital base for the entire country to function. you know, a lot of fines went out. it erodes the base. sometimes it seems counterproductive. i think we saw a lot of private sector. at some point it seems like a candidate can cut his -- a politician cuts their nose off

despite their face. we're left in a worst position we roding capital bases. >> well, first of all, i think the heart of this matter is real anger over what was done. and i think there's a frustration sometimes that executives are not held accountable for actions like this. as you said, i don't think anybody disagrees what happened here is wrong. this isn't about a conflict with the private sector. restoring our infrastructure, investing in clean energy, and a number of other things. so i think this is about us all working together to get this economy working for more people. i think everybody is on board with that. what's frustrating is that donald trump applies one set of rules and makes one set of statements. then when it comes to his own

actions. we had kellyanne conway on earlier. we talked to her about the debate tonight and the presidential depabate coming upn sunday. she said donald trump was too nice to hillary clinton and didn't get credit for it. which foreshadows how the debate is going to go. what tactics do you expect to see? >> this is unfortunate. i think everybody wants these debates to be job creation. unfortunately it sounds like donald trump has decided he wants to make this into a bunch of personal attacks. that's his choice. secretary clnt clinton is going to stay focused on the issues and talk about her families

afford child care and health care. we'll keep pushing through. >>'ve of the campaigns has taken -- we did ask conway this question too. but it did seem like both of the campaigns reverts to the idea of attacking and trying to make it about the other candidate. it has served each well in the polls when they've been to that. >> i didn't even know miss universe was an issue. i had no idea until the end of the last debate. that doesn't serve the american mr.ic, robby. >> you know, look. donald trump is a special candidate. >> that was nice of you to say. >> and the media and certainly we are a little bit baffled every single day about how to push forward. i think he's broken a lot of the bounds and norms of i would argue decency but also how to conduct a campaign and what to do. we are doing everything we can to talk about the issues. as i said. but there are times where his

behavior has been so offensive that it deserves to be called out. the president of the united states is niche to being a role model for our children. i don't think any young woman or young man for that matter in this country should hear their president saying the kinds of demeaning things that donald trump has said about women and about his political opponents. >> robby, want to thank you for being here. we'll be watching the vice presidential debate tonight and the debate next sunday too. >> thank you so much. >> thanks. time now for some "squawk" sports. baseball's post season kicks off today. one player approaching his last october before retiring is red sox david ortiz. he celebrated the end of his 14 seasons in boston over the weekend. joining us now is sam kennedy president of the boston red sox and fenway sports mag.

thanks for joining us today. >> looking forward to it. >> but the state of baseball right now, sam, is the real money being made locally? that's kind of shifted. not quite the same as nfl maybe. there's a lot of money to be made at local versus maybe nationwide. >> yeah. well, the health of the game is great. we've got over 74 million people coming through our gates at the major league baseball level. and most clubs are operating really to try and break even each year. our revenues do to player payroll. o trying to put a great quality on the field and a team that will play in october which is our goal each and every year. >> so business is bad? did you say breaking even is what you try to do after everything is said and done? >> yeah, well, different clubs

have different operating models. but you'd like to turn a profit each and every year. but these investments typically get made for the long hall. you've seen great valuation in sports team around the country. so there are different models in various markets. but business is good. major league baseball is healthy as an industry. rob manfred has done a great job since taking over as commissioner. we've had a lot of success here under john henry and tom warner's leadership. >> so is it an incomes problem or is it an expense problem. that's not making it as easy to operate profitable every year. what can you do? players need to be paid. there's going to be expenses. i don't know. you need to make the games faster or something? more refreshments? you know, what's the answer? >> ya e, you know like any business we need to grow that

top line every year. and we're always going to have increase in expenses. you've seen that traditionally with player payroll moving north each year. baseball is a healthy business at the national level and at the local level. >> do you think you're finally beyond some of the negatives for baseball at this point in terms of, i don't know, steroids, any of the things that have plagued -- walkouts, any of the things that have plagued the sport in the last decade or so? >> i do. i think baseball is really moving in the right direction. again, i mentioned commissioner f manford and some of the initiatives he has at connecting the game to kids. we have the most robust testing system in all of professional sports, testing blood and urine. the game has been cleaned up dramatically over the past decade. so baseball is in a really good place, provides incredible

content seven months out of the year. we're entering the most exciting part of the major league baseball season, which is postseason play. the red sox are very pleased to be a part of that. it's our seventh time doing that under the john henry/tom warner era here in boston. we're excited about david ortiz' final season as well. >> i know. i like him. i don't like the designated hitter, sam. i just -- can we revisit that, please? remember all the strategy that managers had to use, you know, when to pinch hit, when to pinch run, who's going to come up next inning, what do i do with -- is it better -- i guess big papi is a pretty good reason for dh because there's offense and you create a hero and everything else. maybe i'm wrong. am i wrong? >> i think you are wrong. i think that the designated hitter is extremely important in the american league. i have the perspective of working in the national league where we didn't have the designated hitter. >> now there's a league. >> when we arrived in boston in

2002 to think about our history here without david ortiz, arguably the greatest designated hitter in the history of the sport, in my mind a first ballot hall of famer and incredible champion in the community, baseball and the american league would not be the same without the designated hitter. >> maybe orange baseballs, sam. how's that kennedy name work in boston, pretty good i bet? you get tables at restaurants. >> unfortunately i'm from the wrong part of ireland so it doesn't work so well. >> there is no wrong part of ireland i don't think. anyway, thank you and good luck. appreciate it. say hi to mr. ortiz. >> great to be with you. coming up when we return, west coast cramer. we'll get his take on stories in just a moment.

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let's head west to one market, jim cramer joins us live from san francisco. jim, i don't know what you want to talk about. yesterday i actually started thinking about it, is it like to get cyclical and offensive because the move in defensive stocks is over and yield stocks, is that really over or did it

already start? >> we're in the same boat once again where we just feel like that the fed has to move. what i would caution is, is that every time we get like this but we're way too far from the fed, we get a lot of data which doesn't make sense. so not that i'm a buyer necessarily of utilities, but when you want to get more aggressive and buy cyclicals, you better have china, you better have europe, you better have latin america, you better have the autos, you better have construction. you better have the banks doing better. none of that is happening. but ahead of earnings, that's where people want to go. >> and i also had all the same questions you just mentioned. can we diverge here when everybody is still headed even deeper into it. we say we understand why the ten-year is where it is because where everybody else is. if everybody else is going to stay there, why are we suddenly going to diverge. our economy goes up, the ten-year yields go up. why is that going to happen when

it hasn't happened yet? >> it's been the sucker play. every time we get to this point, people say, it's time to rotate in and then we see the earnings and say, wait a second, why did we deviate. look at dardem. that's a yield stock and holds up. i think the whole notion of the cyclical switch other than technology always lets us down, joe, always. >> all right, jimbo, we'll see you in a few. we'll be right back. stay with us. to win, every millisecond matters. both on the track and thousands of miles away. 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.

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make sure you join us tomorrow. "squawk on the street" begins right now. good tuesday morning and welcome to "squawk on the street." cramer is live at one market in san francisco. a lot to get to with jim today. a lot to work with, whether that's fed speak, a vp debate tonight, the ftse at an all-time high as the pound hits a 31-year low. first up, the imf lowering its global growth forecast once again to 3.1% this year.