♪ live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" on cnbc. i'm andrew ross sorkin with joe kernen, michelle caruso-cabrera is with us. bond markets are closed today in honor of veterans day. look at u.s. equities this hour after a rip roaring couple of days in the markets. we called it the trump rally. dow looks like it might open 20 points down. nasdaq off 45 points, the s&p 500 down about 8 points. in asia right now, bit of a mixed picture. nikkei up. hang seng is marginally down. over in europe, things have been down again after what was an up day yesterday. as joe said, experts in this

case got it wrong. nobody expected things to turn this thing this fast. >> the trump rally trademark is still available. nobody patented that, copyrighted that, it's still available. >> aren't you proud of the fact this show two days before the election, the day before the election, asked the questions over and over, if he wins, they control all houses of government, you at minimum get tax reform and less regulation, why would that be bad for the stock market? that question was asked over and over again on this show. >> i had to be called a jackass on twitter by a supposed colleague because i disagreed that the market would go down 1,000 points. by definition when this insane person with his finger on the button of the nuclear code, when he was going to be elected. we put up with a lot. we pit up with a lot to.

there have been a lot of speculation about where this would all go. >> let's juxtapose the wisdom of the american public versus the elitist intellectual ruling class that permeates this entire island. think about that. think about the difference. the republican party at this point is supposed to be fractured and never able to come back. the down ballot on the republican party was supposed to be decimated. >> i'm not disagreeing. >> look what happened. the only people that lost, kelly ayotte, the only people that lost were people not backing him. far fewer losses in the house. the senate is still firmly in hand. the supreme court now it sounds like -- i was calm the first couple days. just thinking back on -- >> you should be happy. >> i am happy. but no one will hold -- they're still at it. they're still a it. rachel mad do ydow, they're sti

it. >> it's hard to suggest that the country is still frankly divided. it is. >> okay. >> the -- >> that's a different point. >> which party -- which party is in -- is in smoking, steaming rubber? >> no question. >> and who are committing violence in the streets in the wake of the election. >> nobody predicted any of this. >> still writing editorials for your newspaper. still writing op s-eds every da for your newspaper. >> we agree. we agree. >> there is still a dividedbezo >> i don't need to say it. mike wolf started writing it. the smug -- >> breathe. here are the other big stories we're watching today. disney earnings and revenues falling short of estimates. among the reasons, lower adverb

t advertising losses. the stock initially fell on the news, but then rebounded after iger's upbeat comments. we'll have a report coming up. couple of retail reports to tell you about. nordstrom sales topping estimates helped by it's anniversary sale. gross margins rising more than expected. michael kors offering downbeat holiday guidance citing a decline in mall traffic. in its most recent quarter, kors beat on the bottom line, revenue came in line with estimates. that stock is off by 4% in extended hours trading. later on we'll get third quarter results from jcpenney. that expected at 7:30 a.m. eastern time. on today's economic calendar, federal reserve vice chair stanley fischer will speak on the economy at 8:30 a.m. eastern time. the first read on november

consumer sentiment at 10:00. >> george soros and moveon.org inspired demonstrations and financed demonstrations do not make for a completely divided country, andrew, just because of what you see -- check out the headline -- >> no. no i'm not going to debate this issue, because you're right. the republicans clearly own and control now all of washington, d.c. >> that's not my point. >> i'm just saying if you look at the popular vote, i'm saying there is a -- there's still a divided country. what about the popular vote? >> it was higher -- >> cnn is projecting trump will win the popular vote now. >> when they finish counting? >> yes. >> holy smokes. >> you were aware of that tidbit? >> i'm suggesting to you even if -- whether you think that he won the popular vote or she won the popular vote, it is that piece in this country that was so close there is still a

divided country. >> so like all elections, some people wanted clinton, some people wanted trump. it's always like that. >> was a guy who got elected who lost the popular vote. that's not unusual. in terms of the electoral college it wasn't that close, compared to 380 to 100 from the same intelligence. >> we're not on the other side of the point. >> let's look at what was widely predicted with copper by all the experts. the dow, which hit an all-time high yesterday, look at the copper chart. first, here's what stanley druckenmiller said on "squawk box" yesterday. >> dr. copper, have you seen him lately? it's been rising -- >> i haven't looked in the last couple of days. >> he's up 4% today. >> whoa. >> interest rates have been at stupid levels. they've been manipulated by central banks. they've been held down. like a beach ball held underwater. i think interest rate also go up. i think they'll go up a lot.

i think they'll go up a lot because, "a," they're just at insane levels. "b," i'm optimistic about economic growth. >> let's look at copper, there we go. again, it was up almost 6% at one point. up 5.5%. i think it's six straight days. you look where we are, 215 on the ten-year. yesterday you made the point, michelle, the very important point, it's happening as the bond market is absolutely selling. as interest rates are surging, the market is hitting new highs. >> in the final decoupling of stocks and bonds, which you needed to signal that maybe the economic malaise might be easing or maybe the dawn is breaking to some extent. we'll see. more on copper still to come. we'll talk to the global head of commodities from the s&p dow jones at the bottom of the hour. i think i'm most excited, mish

she michelle, that my kids, millennials, where the government can work in concert with the private sector. they might see what i saw in the '80s when you get regulation out of the way, lower taxes. >> dent make me cry, joe. >> it's not eight years of redistribution, but it's actually trying to grease the skids for the private sector. we may see that happen. it's amazing how quickly the market starts moving on that. we'll see whether it continues. there will be a lot of impediments to it. you see on twitter the number of assassination tweets? hundreds. >> about donald trump? >> yeah. exactly. that's what i mean about the -- you will never win with the left. ever. >> i thought it was his supporters that were going to cause violence. >> that's the thrust of the lead story. >> for more on the markets and the trump rally, let's bring in

david leibovitz and joseph lavorgne. joe, the stock market, the bond market, the copper market, all acting like the economic future is much brighter now in the wake of this election. do you agree? >> absolutely. you're looking at -- >> did you say absolutely? >> absolutely. as joe was saying, you're possibly unshackling a lot of businesses where sentiment has been poor, if you look at business confidence in this cycle. where you could really harness sort of the innovation creativity and dine ovism and te steepening of the yield curve and how that's a good predictor of growth. i've been a good predictor on growth, i've been proven right, but however my forecasts are in

the midst of changing. we have been growing at 1.5%, we could be growing at 3%, 4%. we could get faster growth. >> david, do you agree? >> i do. we've been talking about passing the baton from monetary potcy and stimulus which has not worked, to fiscal stimulus. the risk is to the upside. you will have lower taxes, an increase in infrastructure spending, how we pay for it is another issue, but this is very pro growth. >> tell me how as a stock investor you deal with interest rates rising. right now stock market rates are rising even though interest rates are rising. can that go on? >> my good friend larry kudlow said a year ago the only way the fed can get out and not destabilize markets is if real rates rise and the fed follows

the forwards. that's what we're seeing. >> when the market does it for them. >> yeah. the markets are reacting on growth. if break-even inflation rates rise, the fed follows higher real rates in anticipation of growth. you are not looking at it disintegrate with higher yields. >> we've seen the correlation in changes between rates has been positive. that's the point joe is making, why are rates rising? the growth outlook looks better. >> which joe? >> this joe. >> this joe. >> i wore the glasses for you today. you didn't say anything. >> but i think the risk, you hear so many people talking about the equity risk premium, what happens if that premium gets compressed, right now it's around 4%.

it still looks attractive and it looks like there's opportunities. >> i drill down at the individual level. for years i said why on earth would you buy a ten-year yielding a little more than 1% when you can buy a stock yielding maybe double or triple that and perhaps you get underlying asset appreciation as well. now that has just shifted, right? the ten-year yield is higher than the s&p 500 at this point. now the calculus on individual stocks starts to change. to me, i get worried about stocks that were bubblicioububb. >> that's what you've seen the last couple of days a rotation out of the stocks that people thought could grow in a soft environment, f.a.n.g., if you will, the market brought that out in anticipation of more growth. financials are a high beta on

the economy. if you think the economy is going tobetter, financials should do better as well. >> we should remind everybody, f.a.n.g. is facebook, apple, netflix and google. >> everybody wanted low volatility, defensive, high dividend yield. that investment thesis is coming under pressure. for us, valuations are our guide. cyclicals still look cheap relative to defensive. i don't know why you wouldn't follow what we see playing out in the markets. >> the analysts in those sectors? how long have they been analysts? have they been analysts in a risi rising interest rate environment? their whole world is potentially -- i haven't been an anchor at cnbc at a time when interest rates were going up. we could be going into a whole new world for a lot of people.

>> it also depends on what this fed does. be careful what you wish for and the fed -- stan is right, rates are been stupidly low for a long type. we had a bond bubble, half of sovereign bond markets were trading at negative yields. which is insane. how does the fed respond? do they still go slowly. yellen said she wants to run the economy out. let's see if she does that and not short circuit the move. >> guys, thank you very much. >> thank you. >> highlights from yesterday we want to show you. pershing square ceo bill ackman making comments yesterday. his investment in valiant has been a huge drag in pershing's performance. valiant's been down 80% this year. >> we have had one problem. >> what is that problem? >> the problem is valiant pharmaceuticals, the mistake is for the first time we bought a

company that had an incredibly successful track record, an activist on the board of directors, a ceo we thought had done an excellent job and we got our head ripped off. >> ackman said michael pearson went crazy and that changing the company's name may boost the earnings. he also reacted to trump's win. >> i woke up extremely bullish on trump, believe it or not. my thinking is as follows, united states is the greatest business in the world. it's been undermanaged for a long period of time. we now have a businessman in the president's -- as the president, and he has power. because republicans control congress, republicans control the senate, he's going to launch a major infrastructure program. he will take corporate taxes

down to a sensible level and get rid of loopholes. he's going to get a lot done. >> also spoke to lloyd blankfein about president-elect donald trump and the rally in stocks. >> his policies are market supported. now, i'm not saying it's good or bad. you would have to draw a different set of conclusions depending on your attitude about everything else. just as far as asset prices in the market is concerned, in the near-term, how can they not be supportive. more highlights this morning from the conference still to come. in the next half hour, we'll show you shari redstone talking for the first time about viacom and cbs. we'll show you the first public comments ever made about that tie-up. >> poor lloyd, still so shell-shocked from the levin interrogation from a few years back. he's even afraid to say the private sector -- >> you remember that? >> lloyd, would like to. if he does, someone will say, my god, you're pro wall street.

oh, no! maybe i am. but i'm not. but i am. but if elizabeth warren is watching, i'm not. >> one thing we did talk about was donald trump ran images of lloyd in a very negative ad that was about him and his connection to hillary clinton. >> we'll see -- >> you weren't here yesterday. >> he has own reasons. >> you weren't here yesterday. there's the candidate, and the person that actually has already won. we'll see what happens. >> the first day i landed in greece back in 2010 on the day of the crisis, huge poster, there's lloyd blankfein. ceo jack rivkin died. he was a ceo at altegris. he had been at a lot of great companies on the street, including lehman brothers.

he was on a lot. during his long career, i think we'll go over some of these. he was in the investment industry. and canadian singer and songwriter leonard cohen has died. he was known for his poetic and lyrical music including "hallelujah." he was inducted into the rock 'n roll hall of fame in 2008. he was 82. i was trying to figure out how old jack was. people are always older than i think they are. >> we'll miss having him on. >> time is always moving so quickly. when we return, reaction to disney's earning miss. we'll show you what will happen with the stock after some comments that were fascinating from ceo bob iger who also

talked about the health of espn. "squak" returns with that in a moment.

president obama will honor our nation's veterans today. he will pay tribute by laying a floral wreath at the tomb of the unknowns.

it's an annual observance at arlington national cemetery. he will make some formal remarks thanking veterans as well. we thank them all as well. >> disney reporting earnings and revenue that missed wall street expectations hit by lower advertising sales and subscriber losses at espn. ceo bob iger spoke to julia about it. >> our outlook on espn is positive. you are looking at a category live television sports that is generally very healthy. it adapts very well to mobile platforms. that's where we're moving espn. we feel good about espn. we're dealing with near-term issues on the sub side, eyes wide open on that. not trying to hide anything. we think long-term prospects for espn are fine. >> the stock fell initially on

those earnings reports, but turned around after iger's comments. joining us to break it down is steven nicholas. help us walk through your head line, if you will. >> our view is that this is a tale of two companies. you have the theme parks, the consumer products businesses, which have been running as well as anyone can imagine. the studio is number one by a far margin, that drives cp, theme parks, concerns about zika in florida are not showing up. and on the other side you have the cable iside of the business. you have challenges around espn in particular. espn is the highest sub channel they have, they're running that and it's a challenge. what's your price target on the company? >> i think around 100.

>> so 96 not bad, but still a buy for you. >> hold rated stock right now. has been since june or july. >> the comments that bob made which did seem to lift the stock a bit, they're not lifting in your mind? >> you know, i think what the whole company did yesterday was very good. they reset expectations for 2017. this is not a company that gives a tremendous amount of guidance. they gave more granual directional guidance. that being said, the challenge around subscribers are not going to erode. the larger debate is all of these vmp-s being launched, will they get new subs or people trading down from an existing service to one of these. >> what's the next thing you're looking for? >> from our perspective, probably some level of the subs of espn not going positive, the other thing is is there a larger

path to direct to consumer. the hard thing with these fully -- >> would you like to see them fully acquire bamtech? >> yeah. >> bamtech is the business behind major league baseball, this is the over-the-top technology. >> yeah. >> also works wi s wits with hb. >> not necessary. >> could they ever take that bamtech business and turn themselves into a netflix? >> theying a great tremendous more rights than they have the broadcast capacity to put out there. so they've done a lot of using that channel to have all the rights that they are not currently airing to put on that channel. that being said, there's a limited number of people. over time what espn will be is a much higher priced product. >> since we asked the question of just about everybody, is there any trump implication, if

you will, for disney in your mind? besides broad, just general economic -- >> not really. in my space, the time warner at&t one is in the cross hairs. >> you didn't see iger the one thing he wants from a trump administration that was all over the wires yesterday? >> that was all over, about the lower corporate taxes. >> and at&t, we talked about that yesterday in reference to the candidate versus the way the guy actually governs. i'm sure he'll look at the rulings of the s.e.c., people will talk to him about vertical integration, how it benefits and doesn't benefit certain people, and i'm sure the rhetoric he used when campaigning will change. >> coming up, we'll talk to the global head of commodities of

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♪ >> great music, love it today. welcome back to "squawk box." u.s. equity futures suggest a weaker open. it's been a strong week for the major averages. dow would open lower by 26 points, s&p by 8, and the nasdaq by 47. the mexican peso has broken

through 21 pesos per dollar. so, it continues to suffer on fears about what will happen with trade with mexico. then, i brought this up earlier about when was the last time we were in a rying interest rate environment. >> with stocks going up. >> just basically 20-year chart of the ten-year yield. there was a time from 2004 to 2006, thank you very much to peter shackner for this information, 15 straight fed interest rate increases. we got slightly rising interest rates. the long-term trend for the ten-year yield has been down for a long time. there are many, many analysts on wall street who are young and never lived through a time where they had to contend with just the opposite. >> not just wall street, obviously. but that chart right there, to a guy like mark grant doesn't necessarily mean it's not ready to turn back down. we're not out of the woods yet. this could be a false start. we need a breakout above there,

which i'm so hopeful for. the inflation, get out of the deflation that has wracked japan for 20 years. and the animal spirits that have been conjured up so far. did you see the volume at discount broker houses? >> i haven't. >> this is a feeling you haven't felt on wall street for at least eight years, maybe longer. we'll see. maybe it's a false start. maybe the market doesn't always anticipate things correctly. this is another one. a lot of things are moving in sync. think about copper. one big mover since trump's victory, not just one but several. it's copper. it's up nearly 30% in the past three weeks. when we asked stan druckenmiller yesterday why interest rates were rising, he went to the key industrial metal. he calls it dr. copperment he says the rise of which could be a bullish sign for growth. >> dr. copper, have you seen him lately?

it's been rising -- >> i haven't looked in the last couple of days. >> he's up 4% today. >> whoa. >> interest rates have been at stupid levels. they've been manipulated by central banks. they've been held down. like a beach ball held under water. i think interest rates will go up. i think they'll go up a lot. i think they'll go up a lot because, "a," they're just at insane levels. "b," i'm optimistic about economic growth. >> joining us now with a look at the commodities pictures under a president trump is jodie gu gunsburg. good morning. you know, there are false starts in all markets that may not be bor borne out by what the future holds. is this real? >> for copper, i disagree with the dr. copper comment. i don't think dr. copper is so smart. we looked at the relationship

between copper and gdp growth in different r. different areas of the world, we find relatively low correlations between growth and the price of copper. where we do see a relationship is with inflation. copper is one of the best inflation hedges of any metal. it is a much better inflation hedge than gold. that combined with the president-elect trump and a republican presidency could mean high growth for copper because we may be expecting more inflation and the best performance for copper has happened under republican presidency. >> sounds like you're splitting hairs, because the inflation comes from the commission growth improving. when do we get -- how does -- so we can have inflation but stagflation? >> maybe a matter of order. copper is used in order for the construction, the building. so you have that natural resource there. then were does the inflation

hitters haves the typing of the gdp growth? so i think that it may not be a separate story, but a matter of where are we in the cycle. >> have you done analysis as you watch the rise of copper what happens to the -- the pace of the rise of inflation? i ask that because to the splitting hairs issue, if you think copper is signaling inflation, that means interest rates are going up. you agree with druckenmiller to that extent. >> yes. in that line of logic. on the broader picture, the dollar is also really impactful on commodities. you can't look at inflation alone. but copper, along with nickel and lead and silver, some of the metals that are heavily used in industry are the most sensitive to a drop in the dollar. for every 1% drop in the dollar, we've seen as much as a 6% or 7%

rise in some of these metals. >> the other thing that was kind of interesting, druckenmiller yesterday, andrew, said i just hope president trump gives all the economic oversight to mike pence and paul ryan, because druckenmiller thinks paul ryan knows exactly what to do in terms of the economy. dope know if you saw paul ryan yesterday -- >> i saw him with donald trump. it happened duriaughteuring "po lunch." the affordable care act was written by the house, written by -- i'm not necessarily sure that trump is going to see what paul ryan comes up with and says, no, i don't like that. i need a populous tone to everything. i think paul ryan will be a major part of what happens in the future. you are bullish on the economy under a trump presidency? sounds like you're almost --

your analysis of what's happening with copper is almost to dispel the idea that it will be a positive for economic growth. >> there are some sectors where it will be positive and some not as positive. for energy and industrials it could be mixed. i would say negative except for where we are in the cycle of commodities. >> what would be negative? explain what you mean. something would be negative for commodities? >> generally on average, the energy sector and the industrial metals have outperformed in democratic presidencies. so if we go back and look at the policy, times the policies that republicans put in place actually don't kick in until the democratic presidency takes over. commodity cycle is longer. >> we've seen that again and again when you have someone tell you when the stock market does better under a democrat, that's because the policies put in don't happen until -- i've seen

that happen again and again. can't tell people that either. >> i think where there's opportunity is in agriculture, agriculture tends to do well under a republican presidency. all the grains. so 7 out of 24 commodities perform better in republican presidencies, but all four of t them sit in that seven. the other important commodity that does well with republicans is gas. between grains and gas, potentially doing well, you have a real story for inflation there. those are two major inputs into the cpi. as far as where do you play for the inflation protection, i think it's the grains and gas. then industrials, with the infrastructure comments, do have potential support there. and copper has done best under a republican president, even though on average again it's the democratic rule that drives copper more. >> okay.

got it. jodi, thank you very much. coming up, alibaba looking to set a sales record on singles day as consumers in xhchina spe billions on the world's biggest sales holiday. as we head to break a quick check on what's happening to european markets now. german dax higher, ftse lower by a quarter percent. cac lower by three quarters of a percent roughly.

singles day is the world's biggest shopping event. it's for chinese people who are single, they're encouraged by e-retailers to shop online. alibaba saw $1 billion in sales in the first five minutes of singles day and are expected to break another sales record this year. chery kang is live in shenzhen with more. >> thank you very much, we just broke through that $15 billion u.s. dollar threshold and we still have four hours to go we'll see what kind of record

they'll be making tonight. yes, we also broke last year's record sales of $14.3 billion. some were estimating maybe we'll hit the $20 billion threshold that would mean a 40% jump from last year. but whether we hit 20 billion or not, it is still a record. and given what we started off with in 2009, working with 27 merchants, alibaba owns this day, singles day, where singles feel sorry for themselves and go out and buy themselves a gift. so now they're working with 100,000 merchants around the world with names like apple, maserati, target joining the singles day discount for the first time this year as well. yes, there are some questions about how sustainable the sales growth will be when it comes to singles day sales.

there are some questions about whether this actually shows the real chinese consumption power given up we are hearing a lot of chinese consumers waits for days, weeks and months in some cases to make their purchase at steep discounts on singles day. of course there's the returns figure that u.s. s.e.c. is very much interested in looking into at this point. certainly this is a day that alibaba shows off its prowess as the e-commerce giant in china and ecosystem it tries to build, starting off with a fashion show in october in shanghai, trying to make good with luxury brands. sort of shaking off its linkage with fake goods on his platforms. the gala last night with global celebrities like kobe bryant, one republic and the beckhams

wa rallying support for the pree-sales hype. we'll key what record it makes tonight. >> thank you, chery. chery kang. alibaba's president will join "squawk on the street" for a talk on sales at 9:30 a.m. eastern time. thursday night football, the baltimore ravens beating the winless cleveland browns 28-7 last night. the ravens hold sole possession of first place in the afc north. the browns have now lost their last 13 games dating back to last season. coming up, viacom and cbs chairman shari redstone making her first comments about co combining the two companies. and coming up, more on the dow hitting an all-time high.

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what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i find romantic. this is literally throwing your money away. i think it's over there. that way? yeah, a little further up. what year was that quarter? what year is that one? '98 that's the one. you got it! nothing stops us from doing right by our customers. ally. do it right. let's get out of that water.

welcome back to "squawk box." dan loeb's hedge fund taking new

stakes in dell and increasing holdings in facebook and alphabet. shari redstone speaking publicly for the first time vict shari redstone talking about reuniting cbs and viacom. she never wanted cbs and viacom to separate ten years ago. they hold both companies. sumner decided to split cbs and viacom a decade ago, but early this fall, redstone urged the companies to explore a merger. >> i think it makes sense at this point in time to explore, whether it's in the interest of both companies to merge again. when you look at all the changes taking place in the industry, you've talked about some of them today, scale is going to matter. it's going to matter to the consumer, who's looking to choose a broad array of content, what do they want? the more content you can offer, the more choices you can give

them, the happier they're going to be. >> redstone added while she supports the merge terrify, both companies with stand on their own and be great. she also talks about the future of the media landscape. >> i think that there's going to continue to be mergers, there's going to continue to be acquisitions, there's going to continue to be consolidation, whether it's within our verticals of content, whether it's outside our verticals of content, i think it's going to continue to evolve. >> i knew she was from massachusetts, but she's really from massachusetts. >> i'm so glad that she did this. because we never really get to see her -- >> i can't remember the last time i heard her talk. >> i've known her for a very long time and she's very impressive and really understands the business. i almost wanted to have that conversation, just so people could know her and understand who she is and the way she thinks about this stuff. her father, obviously, very impressive over the years. but she gets this business. and it's going to be very interesting to see what happens, ultimately, to both these companies. you know, she says she wants

them to explore a deal. she wants more than just tan exploration. but given, as she said, the legality, she can't really say much more than that. in the meantime, we told you earlier what mr. blankfein had to say, lloyd blankfein at goldman sachs about the presidential election. here's what he said when we raised the issue of jpmorgan's ceo jamie dimon as a potential treasury secretary. >> look, i mean, there's certainly attractive aspects of that. i can think of a couple -- he'd be a great, he'd be a great treasury secretary. and he's been a terrific competitor, and i think in that one move, you can kill two birds with one stone. >> you know, that guy, that guy is always making us -- not only saying smart stuff, but making us laugh, too. >> so the word is that jamie dimon isn't interested. >> he's not -- >> but hold on one second.

wouldn't you want to hold the job that was held by alexander hamilton? i mean, come on! >> i don't know if we have tape of it. i said to lloyd blankfein, if jamie doesn't take it, would you take it? and hep didn't turn it out so quickly. >> and what irony would that be, the goldman sachs ceo becoming the treasury secretary. >> you saw the play and love the play -- >> i read the book, long before i saw the play. >> i think the good news about hearing a name about jamie dimon floated out there, even if it's unrealistic, is the fact that it demonstrates to some degree -- >> how radically different it would have been under hillary clinton. think how radically different it would have been. elizabeth warren wouldn't want -- >> i was going to say something different. just how seriously donald trump is taking this. and to the degree that people in the markets would say, okay, he's serious about this. now, i don't think he's ultimately going to get jamie

dimo dimon. i think the greater likelihood would be steven manucci, but to a degree, it shows a semblance and vigor about what this is all about. and had hillary clinton won, you wouldn't have somebody from industry. we've talked about that a lot. coming up in the next hour, we have more highlights the from the conference. roger goodell weighs in on the trump presidency and what it means for nfl. we've been talking about disney. the company's estimates falling short, but the stock rallied after hours. this morning, barclays is upgrading disney to equal weight from underweight. the analysts suggest disney is still relatively expensive media name on an absolute basis, but adds that downside should be limited, because time warner is in the middle of a major deal. cbs and viacom are doing their own m&a dance and there's potential rotation out of technology stocks. >> and for the second day in a

row, thousands of protesters took to the streets in several major cities following the election of donald trump. rallies heated up in portland, oregon, where police publicly declared a riot because of criminal and dangerous behaviors. sever thousand demonstrators gathered in the center of the city. some smashed shop windows and threw firecrackers and late last night, trump sent out a tweet response to the demonstration saying, in his words, just had a very open and successful presidential election. now professional protesters incited by the media are protesting. very unfair. >> do you think he wrote that, or did somebody else -- >> no, he wrote that. that was him. they let him near the phone. >> the funniest thing was about a year ago before any of this got nearly this serious, people did a parody of him tweeting, and it was the funniest thing -- like, he would tweet about a foreign person and go, chews with his mouth open, wife is awful, it was a parody, but there are certain phrases that

do sound like him. he skipped the other one. >> then this morning he woke up and got very presidential this morning. he seemed to change his typune. and he said, i love the fact that the small group of protesters last night have passion for our great country. we will all come together and be proud. >> is that more presidential? >> not sure who wrote that one. >> oh, because it was presidential. that's a good one, andrew. is that more presidential than what he said last night, what he said this morning? >> i would say, by the way, the e-mail last night raised a lot of the -- >> did you hear that? who wrote the one today, it was presidential. since he's not presidential. >> yes, yes! >> the comment he made last night, when you talk about the unattractive look of punching down after winning. >> that was your innuendo, it could not have been him. you can't help yourself. coming up, full analysis of the trump rally, straight ahead. we'll talk to richard kernel, black rock's chief investment strategist.

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a trump rally. the dow climbing to an all-time high. investors the betting a trump presidency will ignite an economic spark. the latest on where this market is headed and what areas of the economy could benefit. we'll hear from the chief investment strategist from one of the world's largest money management firms, black rock, our special guest. potential trump cabinet picks. who will be assigned to the white house staff and what will it mean for your money and your business. edward connard joins us. plus, nfl commissioner roger goodell sounding off on the election results and what a trump presidency means for the future of the league. his comments, straight ahead, as the second hour of "squawk box"

begins right now. >> announcer: live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with joe kernan and michelle caruso-cabrera. the futures this hour look like they're going to open up after what has been a remarkable two days in the market after donald trump's election. dow looks like it would open off about 19 points, nasdaq to open down about 33 points and the s&p opening down about 7 points. here's what's making headlines. we're going to get another retail snapshot this morning. jcpenney releases its quarterly numbers in just about half an hour. analysts think the company will report a loss of 21 cents per share on revenue under $3 billion. shares of dow component walt disney are higher in trading. but investors were cheered by ceo bob iger's more optimistic

comments on the investor conference call. you can see it's higher by a little more than 1%. and some ceo changes to tell you about. waste management has named cfo james fish as ceo, seceding the retiring david steiner, who's been ceo since 2004. and exchange operator cme group says executive chairman terry duffy will add the ceo duties. in national news, president obama will honor our nation's veterans today. the president will pay tribute by laying a floral wreath at the tomb of the unknowns, an annual observance at arlington national cemetery. president obama will also make some formal remarks, thanking veterans, as well. all right, the dow closing at new record highs, as investors ride the trump rally into financials and industrial stocks. investors seem to be betting that the election will provide an economic spark. joining us now is peter bookvar of the lindsay group, a cnbc

contributor. so you're with larry a lot, lindsay, you know he was brockenmiller's roommate. >> yeah. college buddies. >> where was that? at boden? >> yeah. >> amazing, because later, brockenmiller was talking about larry's book, which was a step-by-step chronology of the emergence of the ruling class over the last eight to ten years, would you say? >> even further back. >> and what that does to the country as a whole and to prosperity and everything else. and dan pointing out that may have been an answer to what happened on tuesday, an answer. >> yeah, tuesday was almost a time-out on the growing encroachment of government and to the economy. >> progressivism. great piece in the journal today. >> and the fed, too. >> the fed, to me is a fourth branch of the government. >> i got halfway through it. >> the progressive government can't be imposed from the top. look what happens. what's going to be left of the

obama presidency after all was said and done, do you think? >> that's a great question. i think the republicans try to make it as little as possible. >> and you think that's against the will of the people, or that is the will of the people? >> well, let's take health care. ask any middle class family that is tired of paying huge deductibles for their medical bills. they want some help. they want some relief. >> dodd/frank is vulnerable, is it not, andrew? do you think that's possible to unwind? >> it's interesting, maybe we'll show some clips of it. lloyd and i talked about that yesterday. he thinks there's a possibility of certain things to be rolled back, but not -- >> not dodd/frank? >> no, no, certain parts of dodd/frank, but not its entirety. and i'm not going to disagree you at all about the failures of obamacare, but we talked to silvio berwell, the secretary of health and human services, which

is the obamacare czar, and we talked about what it looks like in a trump world. and even though he talks about it in the context of being repealed and replaced it, the replacement version is not going to be wholly -- i mean, it's going to be different, but it's not a complete -- it will have a different name, there'll be lots of different -- >> and this is something we agree on. we're back to the candidate versus the guy actually in power. and there are 21 million -- you're not going to take things necessarily away from people. and i think one of the worries of the -- of people that help trump get elected is that he might waver on some of these things. and yesterday, when he said, i'm going to come to president obama for counsel and everything else, i think people like limbaugh and others were like, whoa, you don't need to suddenly start ingratiating yourself with the people -- >> but the one thing is, though, the deficit hawks in the world, in an odd way, one of the other conversations of the camp yesterday was what happens, that the debate is not going to be between republicans and democrats. it's going to be between republicans and republicans, the deficit hawk crowd that's going to say, if you're going to keep

obamacare or elements of obamacare -- >> this election was how it's all going to play. >> do you think he ends up a -- doing a lot of what paul ryan wants to do? do you think he does a lot of the stuff like building walls and deporting people? what do you think? >> i think trump is going to put his tuxedo on and him and melania will have a lot of dinner parties and travel around and leave policy to the policy makers. >> and sign the bills when they come to his desk. >> exactly. and paul ryan will be a driver of those policies. and pence. >> so what does that all mean? we want to talk about -- you've been negative for so long, are you capable of being positive? >> you capable of being positive on the market. >> the central bank influence on the markets. i'm optimistic that the regulatory news around the economy is going to loosen up. it will be bullish with lower taxes. the problem trump faces is we have an unwinding of a tremendous bond bubble. this is the biggest bubble we've ever had that is now leaking.

>> you want to go straight up. don't you think we should tread lightly? >> yes. that's the thing, is that interest rates now, the rapidity of this move is what's dangerous, not the level of interest rates. they're historically low. it's this -- the rapidity of this move is what's dangerous. >> peter, you were on here several months ago, talking about a canary in the coal mine, which is the yen. >> coal mine. >> what'd i say? >> "cold." >> it is cold down there. >> the japanese jgb market, where those interest rates started to rise. >> coal mines are coming back, by the way. >> so i've heard. so, we've been talking for some time, if we were at a pivotal moment and a change in the way that monetary policy was going to be done in the world and a change in the interest rate picture, the last couple of days seem to confirm that belief, that you raised. how far does the ten-year yield go? what does -- what drives it or not? >> right. well, it can easily go to 2 1/4

in the short-term, that's where it was at the beginning of the year. but this bubble was at epic proportions. fit starts to impact the economy through a reduction in housing activity or auto sales, maybe we drop a little bit. but rates are going higher over the next couple of years. the july lows in global interest rates, we may never see again in our lifetime. >> how high? i mean, if you go -- so if nominal gdp is around 3%, the ten-year yield can go to 3%. the fed funds rate, which is 37.5 basis points, in a more normalized world should be 1.5 to 2%. >> and this could be -- this could get good if the yield curve steepens and the market moves for the fed and all the fed is catching up and no one is going to care that they're raising. >> this will be eventually good. there's free lunch here for what the central banks have done. we have to deal with the consequence of that shift higher in interest rates. because the fed and other central banks have created an economic construct and an asset price construct based on very

low interest rates. there has to be an adjustment. >> and it's going to be hard to service our the debt as rates go up, unless we're growing much faster. i'll be glad to do it. >> maybe we might grow, but if those guys haven't reformed, haven't had any dramatic changes in their leadership to make their economies grow, it could be crazy that we go back to the italian debt crisis as they try to -- for debt per gdp, they're one of the large test in the world. >> the italian banking system owns a lot of italian bonds. if you get a vote no on december 4, that would be a big setback. >> so you have this sluggish global growth and a rise in the cost of capital. so with trump, i'm bullish on what he's doing, and this normalization of interest rates, but i don't think we're going to feel the benefits of it until maybe year two, three, four of

his presidency. the next year could be bumpy as we transition out of this low interest rate environment. >> not only is he not president, he's only been president-elect for two days. >> right, reagan was elected in november, 1980. he took office january '81. the stock market didn't bottom until august 1982. >> the hostages came off that day. >> this bond bubble, again, is epic. we have to get through it, no matter who's the next president. >> i'm thinking of all the people with bond portfolios and where they are in terms of duration and some of these people could really suffer, if this keeps going -- >> imagine the retirees that have been forced into anything with yield, just to pay for their retirement. the pain that they're going to feel -- >> did they really go anywhere? >> you know, they've been -- but 3% is, was a godsend, compared to their cds. >> people try to talk me into munis at 2%. i'm not going in 20-year munis

at 2%. >> the 3 to 4% yield they got can be lost in a kocouple of da. >> but somebody bought them, because that's how those yields got so low. >> so you saw that ten-year chart, it's still in a downtrend. >> it is. >> are they bringing back the 20-year or the 10-year. >> when will we know? >> i'll repeat again to the bond bull market is over and the yields in july we'll never see again. >> when you say "repeat," does that include the last five years? >> no, no, no. i wrote a piece for cnbc.com in august -- i'm sorry, in september, calling the end of the bond bull market. >> that was the first piece on that? >> yes. >> i said to michelle, the canary in the coal mine was the jgb market. >> coal mines are coming back. >> and they're very cold. thanks, peter. coming up, who will be part of the president-elect's administration? starting in january, the jockeying of positions has begun and we'll discuss it after the break. later, the ceo of kbw on the

possibility of rolling back dodd/t dodd/frank and other regulations. that conversation, straight ahead on squawk when we return.

welcome back to "squawk box." president-elect donald trump visiting washington yesterday, meeting with president obama and other key political leaders. for more on what's next for trump, let's bring in edward

connard, author of "upside of inequality." ed, thank you for being here. >> thank you. >> what do you think's going to happen here? we keep talking about, we've heard a lot of. different names bandied about. even heard jamie dimon's name bandied about as a potential press secretary. >> i don't think they can put somebody from wall street on given the public sentiment about wall street. >> do you think that's true? i've always thought steve ma nuchion might be that person. he worked on goldman sachs. he's worked on wall street before, a big troll in hollywood these days. >> i wrote a book that was very supportive of wall street and very concerned about financial regulation that would kill credit for the middle class. so i don't think it would necessarily be a bad pick. i think it would be quite a good and thoughtful pick. but i think the public's not -- a big part of the public. you remember when we debated barney frank, he said, you'll never overthrow dodd/frank,

because none of the democrats want it and half -- i mean, all the democrats want it and half the republicans -- >> but if you believe the republicans control the white house, the house, the senate now, don't you think you could take snb from wall street and put them in a role like that? >> i think it would be better to not do that, but to make reforms to dodd/frank that would make -- >> al greenspan was on yesterday and said, the whole thing should be scrapped from top to bottom. get rid of it, it was a disaster. >> it shows they didn't reduce the risk in banking at all. all they've done is squeeze out credit in the middle class. but to just scrap that many pages and start from scratch, pretty tough, too. >> on the other side, interestingly, donald trump during the campaign, at least, and what he said during the campaign and what he's going to now do in the position may be different things. but he did talk about bringing glass/steagall back, getting rid of dodd/frank and bringing back -- do you think that's possible? >> i think it's possible, but i think it's a really bad idea, to tell you the truth. >> can i go back to your idea

that you don't think he'll appoint anybody from wall street. don't take this the wrong way. you're establishment, by the way, so am i. i don't think we know anything about what the american people, you and me, what they really want. >> well, i'll tell you -- >> i think donald trump right now has tremendous political power. he amplified these people, he gave voice to them, they came out for him, there were new voters. people in their 40s and 50s. i think voting for the first time, i think he can appoint whoever the heck he wants at this point. >> he might put sarah palin in as head of the epa. >> someone said that. >> think about that. >> i want to argue this, which is, yes, i'm a member of the establishment, yes, i'm out of touch with the world, but i did grow up in detroit, in the suburbs of detroit. my dad worked at ford, my sister worked at ford, all my friends worked on the auto industry, i worked on the assembly line as an automotive engineer and i think i'm very much in touch in the way the midwest worker thinks about trade and immigration. >> i would caution you on the following thing. you can't do that.

everybody said, oh, donald trump can't do that and win, donald trump can't do that and -- you can't do that! >> that's a fair point. >> you're a establishment, what, a establishment republican? >> oh, yeah. >> but you live on what street? you live smack dab in the middle of this place. >> i'm sympathetic to wall street and i'm sympathetic to reforming the banks properly. >> do you think, ultimately -- you think he's not going to put a wall street person. look, the cynical view yesterday if you were reading it is that the jamie dimon name was floated and i'm sure he would have taken him if he could get him, but floated knowing that he probably wouldn't take him, but it sends a message to wall street to say, here's a serious guy who's thinking about this stuff. even if he's not -- even if it's not in the cards. >> i just think he has a very populist streak and i'm not sure how deep his understanding of banking. it's a very, very complicated area. >> and the populist streak, you

know, we know what that was about now. that certainly served him very well. and i wasn't disparaging sarah palin, necessarily, either, when i said it. i know i'm going to hear from people who say, what's wrong with sarah palin. but the notion that he would have her for something to do with the environment or the department of interior or something. >> my view is that he lacks experience and what would serve him well is bringing in a lot of credible people with a lot of experience. >> government experience? >> macro economic experience? what about as a businessman? you don't learn how to delegate to people who know what they're doing and make big-picture decisions. do you think a community ki activist chance as far as experience goes, because of one term in the senate. >> my own experience is this, 30 years in business, i think i know a lot about business, and i've spent 8 years trying to

understand macro economics since then, and they're different. not to say there isn't overlap and valuable lessons to be learned in business. >> get the best people you can find and delegate and make overall decisions. >> i'm talking about more marketing -- >> what about bringing in, you know, he's going to listen to pence and paul ryan. were you surprised yesterday at how those two guys looked like they were going able to work together? >> i think they'll have to work together, and i think you have to fuse the establishment republicans with this new trump blue collar democrat who is anti-trade and immigration. >> we won't know how to act when we see, who writes the bills. is it congress? we don't know how to act when the senate does something, the house passes it, and the president then signs it. we may all faint when we actually see that happen coming out of washington, d.c. it could happen with tax reform. >> i think we're going to see corporate tax reform. >> the law might actually change instead of through executive

order. >> i think it will be extraordinary. i think there's a real opportunity to fix some of the damaging things that were done in the two years when the democrats controlled -- >> we might actually see laws being passed and signed into law by the president. >> i don't know how much of a market prognosticator you are. where do you think the market ends up, not in the next week or two, but in the next year or two? >> yeah, i think that if he's thoughtful, he can accelerate growth in the economy. i think one of the biggest opportunities is to shift immigration from low-scale immigration to high-scale immigration, ultrahigh-scale immigration, and that could have a big effect on growth, over the long run. i always think that markets are pretty much properly priced. and i think that growth comes slowly, because you have to build institutional capabilities like silicon valley in order to grow. so the idea that we're immediately going to grow quickly in the short run, i think -- but i think the market can look forward and anticipate say, is this high quality or low quality. >> one of the conversations we had yesterday was eric schmidt

from google or alphabet. and with the exception of alex thiel, silicon valley is not happy. they're worried about the comments he's made about amazon, the comments he's made about apple, the comments he's made about immigration, they have a very different view when it comes to carbon and issues like that. how do you think this all plays, from silicon valley and sort of that engine of innovation, entrepreneurship that we talk about. >> i think they'll put their heads down, go back to work, and try to make millions of dollars. >> and stop telling people what to think. >> and have very little effect at all. that will be my take. >> ed, great to see you this morning. coming up, what have the clintons been up to since the election? details after the break. plus, nerds and gaming geeks are celebrating the addiction of -- the addition of a classic game into the toy hall of fame. that story, straight ahead. and as we head to break, check out today's aftlac trivia

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welcome back to "squawk box." before we went to break, we asked you, who was the only u.s. president to serve more than two terms. we hope the majority of you knew this right off the bat. franklin d. roosevelt. >> okay. so the question might be, what have the clintons been up to since the election? well, it seems they have been hiking. a woman's walk in the woods put her face to face with the former presidential candidate. hiking in chappaqua, new york. secretary clinton and the woman hugged and posed for this photo. the photographer, well, we think former president bill clinton. >> what a coinky-dink. that's amazing, isn't it. if i saw 14 secret service people scouring the woods, that's probably -- >> does she still get secret service? >> he does, if he was there. >> how many people does he get? >> it would be a big crowd with

them out there. >> have you seen people who -- have you heard what's happened here. holy smokes. >> this is a traffic problem. >> i know. >> it's an issue. >> and i'm told, by the way, that he has told friends that he plans to come here on weekends. so the traffic is going to be something for the next 40 years. >> trading the trump rally. >> we'll talk with black rock. t. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?

welcome back to "squawk box." among the stories the front and center at this hour, investors could be getting some additional clues as to what could happen at the december fed meeting. stanley fisher is going to be giving a speech in just about 09 minutes on monetary policy and the global economy. he's going to be speaking at an event in santiago, chile, this morning and we'll be monitoring that. separately, a judge has ordered amazon so set up a reimbursement process for parents whose children made in-app purchases without their permission. however, the judge rejected the ftc's request for a $26.5

million lump sum payout. i have to tell you, my greatest worry about alexa, we have alexa, the echo in our house. my boys talk to alexa all the time, they ask it the weather, the this, the that. they haven't figured out they can order stuff on it, but when they do, we are going to have problems. >> you don't like all those microphones in the house. >> i have two words for you. >> you've already called me nuts. >> no, billy bush! >> yeah, hot mike! >> i have a hot mike in our house all day long. i appreciate that point. alibaba, we should tell you, racking up billions in sales today. that's with the ap, and its annual singes day event, it passed last year's total of $13.4 billion, with nearly nine hours left in the day. but year over year growth, a little bit slower than last year's 60% jump. in the meantime, we want to tell you a little bit about yesterday's conference, because nfl commissioner roger goodell

joined us and pointed to the downturn in ratings -- or we pointed, rather, to the downturn in ratings, of the league this season. largely the result of changes in media technology. goodell pointed out that the league is adjusting to the changes, including more options for viewers, like their deal with twitter, which streams several games live. goodell also talked about the election, and the impact it could have on the league. >> a stronger position about regulation and unnecessary regulation and freeing up that. i don't know whether that will have an impact. a lot of what impacts us, andrew, is the media world, how that's transitioning. technologies transitioning, how we reach our fans. so that's something that we're particularly interested in, with obviously, is making sure that we have the flexibility to use that technology to reach our fans. >> we will have some more highlights from yesterday's conference in just a little bit. >> we going to do jcpenney right

here? let's do that right now. jcpenney reporting earnings, worse than expected loss. same-store sales fell short, slight miss in revenues. stock is off by 8% in the pre-market trading. yesterday it declined by 5% as part of the overall rally. we'll dig into this a little bit later on, but we're running the numbers there below, but a miss on revenues, slight, same-store sales were down, versus an expectation that they would rise by more than 2%, and then, worse-than-expected loss, as well. a loss of 22 cents rather than a loss of 21 cents. the dow, surging to record highs at more than 5% this week, as investors bet that a trump presidency could spark economic growth. joining us now, richard turnal, chief investment strategy at black rock. good to have you here. >> thank you. >> you agree with that bottom line, the markets are rallying? i think -- is it correct to believe that the economy will get better as a result of the election, richard.

>> we've seen a significant inflection point in markets, really taking place since this summer. that's about increasing what we describe as reflationary trend. and that's driven by signs that wages are picking up, particularly in the u.s., central banks, globally, which are prepared to let inflation run hot, and most recently, shifted emphasis away from monetary towards fiscal policy. so the result of the u.s. election, i think, amplifies that trend. it increases the prospect we get further fiscal stimulus. we're likely to get tax cuts for the consumer and the corporate sector coming through. we're likely to get a hotter economy, somewhat hotter economy than we otherwise would have had. and i think what's that driving is many of these reflationary themes within the market. i mean, steeper yield curves, cyclical assets like value stocks doing very well. >> okay. what do you do as a result of that? do you just buy the financials, because the yield curve is going

to be steeper? and how much steeper do you think it's going to get? >> first of all, yes, i think the yield curve does get steeper from here. i think that's going to be a gradual process, though. you've got to remember there's huge demand for high-yield products in the market. there's a lot of buyers out there as yields rise. we would expect to see those buyers come in. but we do see the yield curve getting steeper from here. so the beneficiaries of steeper yield curves, they include financials, particularly in the u.s., they include value as a style. values typically do very well in a steeper yield curve environment. and they include some of the commodity stocks, as well, which i think will also do well in a steeper yield curve environment. and on the flip side of that, the losers are likely to be -- well, not any government bonds themselves, we're seeing, you know, significant negative returns now coming through, particularly for long-duration bonds. but many of the bond proxies,

within equity markets, are stocks like utilities, some of the low-volatility stocks, which have done very well, up until recently. they look very vulnerable, as we see the yield curve steepen. >> you're over in london there, richard. if the control room could bring up the chart, and i bring that up only to emphasize over the long-term, we have been living in a declining yield environment for 20 years, ditto for europe. we see interest rates not just rising here, but they've been rising in europe, as well. are the europeans ready for rising interest rates, considering their debt profiles. many of them are still very, very bad? >> so, first of all, that we see this as a major shift in what has been a trend, for actually more than 20 years. really going back to paul volcker, declining bond yields, globally. >> good point. >> we now essentially see yields have bottomed out now. it is worth highlighting the move upwards we're seeing is

much more evident in the u.s. than it is in the rest of the world. yields in europe held down still by an ecb, which is easing. and of course in japan, where they have a zero yield target. but nonetheless, you get upward pressure on yields. i think this does create, though, a significant challenge for the european economy and for the european financial markets. i think the european economy remains weak. pace of growth still fragile. inflation in europe still far below not only the levels we see in the u.s., but far below the levels of the ecb targets -- >> we've got another vote coming up. december 4th in italy. that going to be the next one? is everybody going to be surprised next time? >> so, we've had two data points, i think people are -- i think what we've learned is first of all, that traditional polls are not accurate at predicting the outcome. and you have to price in a higher level of uncertainty than

before. i look at the challenges going forward, not only are there potentially higher interest rates than they would have had, but the risk premium in europe just stays high. uncertainty not just about the italian referendum, but to next year, we have general elections in france and germany. and i think the markets are now just going to price in a higher level of uncertainty, a higher risk premium around all those elections than they otherwise would have. >> you use very nice economist words, but what i hear is the potential unraveling of the eu and the eurozone. that's a conversation for another day, richard, as we talk more and more about those coming elections. thanks so much for joining us. we appreciate it. >> my pleasure. >> i'm reading your paper, andrew. >> yeah? >> and cheryl gaez stolberg, she wrote a pretty even-keeled pieces. it's amazing, women who helped

trump to victory. she talks about a small business owner married to a doctor and points out -- when it was all said and done, 53% of white women voted for donald trump. that's another thing that was -- i'm just -- i don't know. but maybe i'll -- you know what, as part of our detente, i'll start looking at this again. >> did you say, part of your detente? >> yeah. >> when's that going to start? >> if this is detente, i don't want to see more. >> you sent that message tuesday night when it became clear what was happening. >> yeah. >> and that was nice, but really, it was kind of preem preemptively asking for mercy. kind of like, i realize what i'm in for. >> is this what a detente feels like? >> that was my question! >> you were out yesterday! you forgot. and you were with eric schmidt and you know, all these -- >> yes! >> and you came right back and you -- >> and poor howard schultz. it looked like they had run over his puppy.

>> that's not nice! he's an amazing ceo. coming up, we'll talk about howard schultz. president-elect donald trump's plan to fast track deregulation. we'll talk about it. bank stocks soaring on speculation of the industry can see a roll back on rules. ceo of kbw will join us after the break. take a look at some bank stocks right now that are on the move. they had some big moves yesterday. "squawk" returns in just a moment. ift in human history is happening before our eyes. sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management businesses of prudential.

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nchtsz the winds of deregulation have started to pick up on capitol hill. eamon javers takes a look at what plekt trump could target first. >> they're going to target everything in terms to have regulations in washington, particularly all the new regulations that came in under the obama presidency. obamacare. some way to repeal and replace obamacare needs to be figured out. that's going to involve a thicket of regulations being hacked back, also in the oil and gas industries. but take a look at finance for a minute, and just focus on those things within the dodd/frank reforms that came under president obama, that the industry would like to replace. we've got a list here of just a couple of them for you, to give you a sense of how industry is thinking about that. the first thing they would like to do is change the way the fiduciary rule is enforced.

they would also like to change the financial services oversight process for designating what they call systemically important financial institutions. they would like to bring more transparency to that process, give those banks and institutions an opportunity to respond and participate in that. they would also like to restructure the consumer financial protection board, to not have one single leader. they would like a bipartisan board, more like a commission, like we see in other regulatory bodies around washington, d.c. so that's just the tip of the iceberg here. the question is, what does donald trump want to do? and i don't think that's entirely clear, just now. and guys, let me ask you this question pb and see how you think about this. it seems to me one of the dangers of this moment right now for donald trump is that he doesn't come to washington like other president-elects have come to washington, with an enormous legion of followers and an administration in waiting, sort of a kitchen cabinet ready to be plugged in and people in think tanks ready to take positions. he ran a very lean, mean machine

during his presidential campaign. there are not a lot of loyal trump republicans spread throughout washington. so he's going to need to staff this administration in many ways a lot of the same people have been in washington for a while. if you're going to run as an outsider, you need to governor as an outsider. the challenge is for him to do that, while bringing in a lot of the same inside people who have been doing it for years. we're going to have to watch how this shakes out, particularly how trump decides to staff this administration. >> if hillary clinton had won, you knew there was -- in a room somewhere, a huge schematic of all her -- >> the think tank people. >> just laid right on top of every single building in washington, d.c. he doesn't have that. the one thing that he would say, and we were sitting on the set election night, when we were all shocked to see the numbers coming in. and i asked everyone, i said, why are we still surprised when he surprises us? because he's done it every step of the way. let's see how he handles this

very hurdle that you're talking about. >> and look at the tone shift we've seen from president-elect trump since election day. it's a dramatically different donald trump, except for one of the tweets this morning about the protesters. but for the most part, it's been a totally different trump in power than it was out of power. and the question is, will that continue in terms of the staffing of the administration? will we see the treasury secretary come from capitol hill? will we see industry people put into positions of power -- >> eamonn, it's not just trump that's different. paul ryan's different, all the people that -- i would say ron johnson was always a trump guy, and pat toomey's probably pretty happy since he was down eight points. he doesn't have a lot of loyal republicans. do you see how quickly these republicans will learn loyalty. they're going to line up? and if some of them aren't there, if some of the lifelong bureaucrats aren't there to be with him, so be it. you can't drain the swamp with the same life-long democrats. >> that's my point.

donald trump is -- >> -- changeable terms. democrats and bureau accurates. >> donald trump campaigned on draining the swamp, so will we use the same swamp dwellers to staff his administration. >> we know you've got to get 4,000 people. obama found 4,000 people that he had no private sector experience pip already said that. so you can do anything if you work hard enough. anyway, thank you. wii going to move on. banking stocks surging this week, following the election of donald trump, especially mid-size and smaller banks, poised to benefit from the possibility of lighter regulations. i can't wait to talk to tom here. tom michaud is -- >> is that good? >> michaud, the "d" is silent. >> i don't seem like i know a lot about france, but i'm very french. he's the ceo of kbw. so here's how i want to -- i want to talk about big banks and i want to talk about small banks. and who could benefit if some of these regulations were rolled back. because there's so people that say that the big banks have done

very well, because they've got the lawyers and accounting staffs to deal with all these things. but when we had dick bovet on after we saw some good earnings, they were good relevant to recent years and quarters, but on an historic basis, they're horrible, working in the current environment. >> that's true if roe for the industry is down probably at least by a third, if not 40%. and it's because, just lower interest rates and the cost of regulation. >> lower interest rates. >> and for the big banks, the fact that their business model has been -- >> they could do much better? >> i think what's going to happen with trump is they'll do better, but i think the mid- and small cap banks will do even better than the big banks. >> that's what i was going to go to next. the ones that are really hurting are the ones that are mired in regulation all across the country, that's why you don't see a lot of loans going where they need to go. they could really do better with less paperwork and less regulation. >> absolutely. and there's been a lot of talk about, whether dodd/frank be

repealed? you don't have to repeal it to make a big deal. just amend it. >> like, what -- what should stay and what was helpful and how much of it? what percentage was good and what percentage was bad -- >> even if a third of it was bad, that's still a big number. the first thing i would do, i would change these artificial barriers from where banks get more highly regulated. 10 billion is the first and 50 billion, a whole another tranche of regulation comes on. the $50 billion banks weren't the once that struggled during the global financial crisis or caused it. so that is an artificial barrier. and what they're doing is with that barrier, they've caused regional banks to not grow, not want to grow. they don't want to be $50 billion. they go through $50 billion slow. the economy needs banks twha s want to grow and make loans. >> so if you go to greatagain.gov, this is where they rolled out all of the policy positions of a future trump administration, they say, dismantle the dodd/frank act and replace it with new policies to

encourage economic growth and job creation. dismantle? >> i think that's a technicality. whether you change or dismantle the dodd/frank, the big issues that need to be addressed are these thresholds where you get more regulation. the cfpb having very little governance and they don't have congress pass their budgets. those are some issues and you make those changes, that would have a big impact on the industry. >> what about the volcker rule? >> i'll tell you, of all of the reform agendas i've seen, i don't think that i've seen many that have gone right at that first, as the first topic. >> i don't think first, but possible? >> you know what? i think, possible, but more importantly, it's the implementation. remember, people are policy, i do believe that. and when president trump gets a chance to pick all the individuals who are going to be in these seats, just moving back to neutral from a highly focused regulatory bent is going to be a

positive for the industry. >> what about glass/steagall? any chance? >> i don't think it happens. when you look around the world, there are 30 global stiffies. >> eight are american banks. >> american finance is the leading industry in the world, and you still want these universal banks. the problem is they were too big and they were taking on too much risk. i think dodd/frank did address a lot of that. i think they have to be amended, because they don't have the capacity to be as profitable. but i wouldn't break apart securities and banking. >> so will regulation be rolled back enough for the sequel, for tp -- what is it? >> too big to fail. >> tbtf. but will the sequel be able to be written -- >> andrew's book? >> will we make fertile ground for the sequel to be written? >> i would be shocked -- i don't

think anybody -- what's interesting is the republican platform at the convention aid, let's bring back glass/steagall. now, whether or not that actually happens, i don't know. president-elect trump hasn't said so. i would -- i think that you're still going to have heavier regulation on the biggest banks, which is appropriate. the question is, i think the whole attitude has to shift from one of, let's just keep stepping on the banks to now let's worry more about growth for the economy. >> so no sequel? >> sequel! >> george bush gave me a book. now, you know what -- >> what? >> see, you're still doing it. you're still doing it. george bush gave -- >> bond. >> george bush caused the financial -- that's what he said. i was just trying to make up with you by mentioning your stupid book a couple of times. won't you get a check for that, what i just said. we you'd to do a addict ding -- coming up? >> thank you, tom. >> how is that deal book -- i'll

get -- i'll plug all of your ventures. >> thank you. >> coming up, retailers jcpenney reporting earlier in the hour. a look at that stock and some other names to watch ahead of the opening bell. squawk returns in just a moment. remember here at ally, nothing stops us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in. ♪ ♪

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♪ go ahead. >> we haven't had the animal orchestra in a while. you know what -- >> this is better. >> she's great. >> we always put different things with the animal orchestra. but now that the, you know, that the election is over, we can get back to a semblance of, you know, of normalcy. it doesn't have to be all about, you know, two sides of the country at each other's throats all the time. let's take a look at some stocks to watch this morning. look at how those animals get along. all different species, all different -- >> sometimes they eat each other. >> that's true, too. >> that's true. >> shares of retailer nordstrom are rising in pre-market training. report a quarterly profit of the 84 cents a share, well above estimates of 52 cents. that's pretty amazing. and we mentioned michael kors earlier did beat estimates by 7 cents, with earnings at 95 cents a share. the luxury goods maker also issued a weaker than expected

holiday season. forecasts, as a result, that is shaving about 6% off of shares. coming up, riding the trump rally. how is money manager mario gabelli playing this market? and it is veterans day. central commander in iraq david petraeus will join us. "squawk box" will be right back. ? 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

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keeping the rally alive. the trump-fueled rally surge continues with the dow climbing to an all-time high. mario gabelli weighs in on the markets and the election. >> plus, digging into gabelli's media investments. we'll get his reaction to shari redstone's plan for viacom and cbs. >> so i think it makes sense to explore whether or not these companies can come up with a way to get together. >> and happy veterans day. retired four-star general david petraeus is here to discuss how military talent helps the businesses around the world, as the final hour of "squawk box" begins right now. >> announcer: live from the most powerful city in the work, new

york, this is "squawk box". >> welcome back to "squawk box" here on cnbc, i'm joe kernan. the futures this morning, they are -- geez. i thought they were down. they're not. the nasdaq had a tough session yesterday, tough session today. i wonder if you talk about that. it is a cyclical. >> but don't you think that's where some of those multiples were so huge, in a rising interest rate environment. >> you would think that the big thing, all of the money would come back. >> agreed. i thought about that too. >> you would also think that the -- and we'll talk to pario in a second. you would also think that the underpinnings of this market, which were so based on easy money and the fed and the wealth effect, if it actually starts growing a foundation, where it's actually the price is actually warranted, that should help all stocks. >> if interest rates keep rising, even if they go to 4%, let me tell you, we're going to

start seeing air coming out of everywhere. we're not going to know where it's coming from. it's going to be the wealthy that suffer the most. >> speaking of the wealthy, let's get to mario, quickly. he never laughs at things like that. >> he's pretty serious. you've got to flaunt it. >> 40 years ago, joe, i made $5,000, you know, so. >> you've got to go back to that to make us feel like you're a normal guy? >> i still buy less than wholesale. >> 40 years ago, i didn't have $3 billion. i was just like you. i had nothing. oil prices, take a quick look and then we'll get to today's top stories. there we are, down 60 cents at 44. >> top stories, jcpenney's revenues and same-store sales falling short of estimates. take a look at -- are we going to show the shares? yes, we are. they are getting hit this morning in the pre-market trading by -- even worse, lower by more than 9%. walt disney also missing wall street's mark on the top and bottom lines. results were impacted by

declining subscriber numbers at espn. the stock dropped initially. however, then rebounded, following more optimistic comments by ceo bob iger. disney is higher by 1.5% this hour. >> in political news, president-elect donald trump is planning his transition, that includes filling his cabinet. i sat down with goldman sachs ceo lloyd blankfein yesterday and asked him what he thought about the speculation and rumors that trump is considering jpmorgan ceo, jamie dimon, as treasury secretary. >> look, there's certainly attract eive aspects to that. he would be a great treasury secretary. and he's been a terrific competitor and i would say in that one move, we can kill two birds with one stone. >> let me turn it around -- >> so the possibilities are terrific. >> if you got the call -- >> asking me whether jamie

should be treasury secretary? >> if you got the call to be treasury secretary, there have been others from "gq" gx who have gone into government before. >> dozens. >> would you take the job? >> no. i don't know, i wouldn't -- i think people, again, look what i said a few minutes ago about your place in history, that's a tough, you know, you would have to weigh that. i mean, whatever else people have pronounced and said or thought, when you have an opportunity to make that kind of an impact, you would have to think quite seriously about it. you would have to know what your role would be and your relationship with your boss and those things are important. and what kind of license and latitude and what priorities your boss had. gosh. but people who say -- look, i'm familiar with the number of people who have accepted that job. i know what they said before and i know what they said during the process and i know what they said when they were sworn in. so i think that knowing that, as

i do, i think a lot of people, you know, would take that job. and of course, people would consider it. >> we will see whether lloyd blankfein is standing by the phone this morning. >> please! >> tecumseh sherman said in 1884, if nominated, i will not run, if elected, i will not serve. goldman sachs stock is $200. >> i love what he just said, especially on veterans day. he's the smartest guy -- he would be an unbelievable treasury secretary in terms of risk management and everything else. and it would also be, for trump to pick the head of goldman sachs, it would be like the elizabeth warren just -- i mean, that is. >> i would love to see her face in that moment. >> please! make it happen! i want to message him. i am. i didn't say who. >> later on on "squawk box," somebody else rumored to be in the running -- >> and jamie dimon. >> for secretary. >> it would be equally offensive

to certain -- and either one would be amazing as risk managers and as guys that know about -- would you have a problem with it? >> you know i have affection for him, so absolutely not. >> i don't mean that, but your view of the close relationship between government and wall street, would that be -- >> he's waving the flag. >> have you not read anything i've written about this? >> but, things are different. it's a long way from the first too big to fail -- do we have the cash register sound. cha-ching. i don't know how you feel. you would be -- "too big to fail." >> i am completely open to people on wall street. >> the head of goldman sachs being the treasury secretary? >> i would have no problem with that. i would have no problem with that. >> in one fell swoop, occupy wall street will be reborn. wouldn't it. and they'd be out protesting again. >> who will read the teleprompter? >> you know what, you're going

to introduce legendary investor, mario gabelli. >> sure. and later on, jeb hensarling, who may be the treasury secretary. >> maybe lloyd, who knows? 8:40 a.m. anyway, legendary investor mario gabelli is here. he predicted a trump victory right here on "squawk box" earlier this year. and joining us now on how to play the markets, the media, a deal-making landscape, and his top stocks, mario gabelli, chairman and ceo of. when was it, you specifically said trump will win? >> what happened in the barons panel in, they went around in alphabetical sequence, and i said, politicians are the lowest run in dante's inferno and above them were wall streeters. >> where's the media? >> as a result of that, they went around and say, who would you think would make it? and gundlach and myself said trump. >> and everybody else said hillary? >> i don't remember.

>> literally. probably, not just that the barons, in the entire country. at that point. now that it's happened, when you said it, was in a way of sort of a warning to people or -- >> no, i was basically reading the tea leaves of the disgruntled part of america that hated politicians. >> so now that it's happened, how is the country going to be and how are your investments going to be? >> it's fairly simple. both of them would have preached for infrastructure spending. we need to clean up our waterways, we need inland waterways, rails. everyone's talked about. so how do you play that? on wednesday morning, the infrastructure stocks jumped sharply. and in addition to that, we know you have someone on at 8:30, we trace, and the need to refurbish the military. you also have to do no student left behind, no adult left behind and the world is changing. innovation is terrific, tax structure, tax reform, so how do you play it? you buy infrastructure stocks.

there's a bunch of them that have done well. you look at the notion of what michelle said before. what happens if the ten-year goes up to 4%? unless you have pricing power, so nominal growth will increase, in terms of both real gdp and nominal growth. so what companies have pricing power in that environment so they can maintain their multiple? that's what we're doing every day. and clearly, the bank stocks, particularly the tv trust banks where they have less regulation, they become global powerhouses. they have great balance sheets, because of what happened. they will benefit from rising interest rates. those are stocks that did well and will continue to do well. in addition to that, ignore the money managers. those will do well. and on the infrastructure, joe, i brought you something. i didn't bring a bengals hat. i couldn't find a giants that the from monday night.

i knew you needed a peace solution. the giants are favored by one. but this is an example of what has made hard-working american farmers and those that provide them with infrastructure. those will do quite well. >> i think the giants are -- they seem to be getting a little better each week. i would never bet on the bengals. they may win, but i've learned -- >> joe, what's happening today on tvs and on the streets is monday morning quarterbacking. >> i get it. i get it. let me ask you this. since you know know what happened after tuesday night, the way that worked, where, you know, as the returns were coming in, the market sold off and -- >> yeah, at 2:30 in the morning, the market was down 800. >> right, so what -- >> but that happened also the day after brexit. >> then it recovered and then it went up the next day, the next day, and the next day. why? what happened? >> the market's up 4%. the first thing that happened is that europeans and the

non-americans who were trading at that time probably were uncomfortable with the president-elect. and so they were selling and then what happened is the financials supported the sectors like infrastructure stocks went up, and markets are adjusting. so we look at, ways the market? >> up to new highs the next two days. >> joe, this is simple. earnings. financials will be up sharply in 2017. that's 25% plus or minus of earnings. the dollars was a little stronger, but still relative to the -- let's say, the earnings, you're not going to have as bad as translation. >> this trend was in place, then? >> i think if part of it was reinforced. >> so now it's trump? >> well, ryan is going to do a great job of figuring this out. he's got his hands on the pulse. corporate tax rates on a global basis versus territorial have to change. and that in part would be a very

big plus for corporate profits, after tax, and as a result of that, cash flows will improve. and if interest rates goes up with, the present value of your liabilities on pension plans will result in less cash going into -- there was an element of uncertainty, both on the consumer and on corporate america in terms of making investments. that is now behind us. now we can start planning and look at, where can we put our money. innovation comes back and risk taking comes back. take a rule, sarbanes-oxley. it cost me close to $22 million. a little company. out of pocket. >> they should do that, too, for dodd/frank and sarbanes-oxley. >> there are rules that preclude -- the linkage is simple. if i am in a venture capital, i want to put money to work and earn returns so i can invest in start-ups and make a lot of money and create jobs and

innovation. creative innovation should be a driver. >> maybe you can get rid of anything with a politician's name on it. dodd and frank were -- those guys were great, though. >> stop, stop, stop. obamacare. >> smooth pauley. you can keep that one. >> well, ricardo and, you know, adam smith should come back. they weren't politicians. >> they came back in a big way on, at least to some extent, in turning the tide on tuesday night, don't you think? >> on the other side of the coin, the notion of fair trade, not free trade. u.s. steel benefits, you talked about copper with someone on the tv show yesterday. copper is up to -- >> you mentioned brand "x"? >> yes. he's retired! that's even better! >> oh, wow! >> he's a great guy. >> you never change.

>> look at copper. >> you can't say -- >> no -- >> you can't say his name out loud? it's like macbeth. >> did you ever give $8 million away? >> not that much. if i made it, i would. look at the guy that takes a big tax deduction for giving money away. >> who are you referring to? >> the guy in omaha. and he made so much money from this election, from wells fargo,. >> who aren't you going to sort out, stick it to. >> i forget the guy's name. >> this is fun. >> wow! >> the only guy i remember, joe, is you and this andrew. >> it's not quite icahn -- >> icahn is iep, the stock is $50, even though i have some creative tension with carl over something. >> what? >> on monday, we have to figure

out whether we tend to federal mogul into his bid or not. >> we'll talk more with the man who will maybe name names. >> we love you, stop! >> when we come back, shari redstone speaking out for the first time. i sat down with the vice chair of cbs and viacom. we'll get some reaction from mario gabelli when squawk returns in just a moment. mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle. and it keeps my investments fully mobile...

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disney reporting lower than expected earnings and revenue after the bell. julia boorstin had a chance to speak to disney chief, bob iger, and joins us with the highlights of that interview. >> with espn's declining subscriber numbers, bob iger says he is bullish on espn, especially as it reaches consumers in digital bundles. >> in a world that is obviously impacted by the use of the dvr and all kinds of shifts from networks to program viewing and new platforms emerging, live sport's still really popular. the nfl, i know, a lot of talk about nfl ratings being down. you're still looking at the most popular sport that exists. so espn has the strongest menu of sports programming that exists. >> in the wake of at&t's

acquisition of time warner, iger says he continues to look carefully at m&a, and he is interested in companies that will help disney bring content directly to consumers. >> not only do we choose the right assets to buy, pixar marvel lucas, but integrate them well into the company. the result of those three acquisitions very, very obvious on numbers we just released and we talked about it in the future and we'll continue to look at that and buy where there's an opportunity to create more value. >> while iger was a big supporter of hillary clinton, he says he's optimistic about president-elect trump having a smooth transition. >> one thing that i think seems clear is that there's going to be far more energy around attacking the tax code, changing the tax code, closing loopholes on corporate taxes, and lowering the base. we're not as competitive as we need to be, as a country. i think that is going to be addressed on a timely, meaning, a fast basis. >> you can find more from my

interview with iger, including his outlook on disney's growth over the next couple of years. why they gave a bullish forecast there. also, more thoughts on the election and espn. andrew, back over to you. >> thank you for that and thanks for that interview. staying on the media theme yesterday, i had the chance to talk to shari redstone. here's what she said to say about merging cbs with viacom again. >> i think it makes sense at this point in time to explore, whether it's in the interest of both companies to merge again. i think when you look at all the changes taking place in the industry, you've talked about some of them today, scale is going to matter. it's going to matter to the consumer, who's looking to choose among a broad array of content, what do they want. the more content you can offer, the more choices you can give them, the happier they're going to be. >> let's get back tour guest host for the morning, mario gabelli is here. what do you think? is this deal going to happen? >> a lot of consolidation and content and connectivity. you have a new fcc chairman

coming. he's going to be much more interested in allowing the free market to function and cbs, viacom, i would have viacom buy cbs so les gets a change of control premium and also gets a new contract. but also, he has to be in control. and i would like that to occur much the way warren buffett allowed murphy and burt to run cap cities and gave them the vote when they merged into abc. >> but for that to happen, the rest of them would effectively have to give them control of the company. >> for five years. he's a young guy at 56 or 7. he's very energetic. and he's the built a great business. i would think that shari is a very practical person. she did the right thing. she got started at the trust, amusements, and down at the company. >> what are the chances they

don't? what happens to viacom if it's an independent company? can it be reimagined and remanaged? >> the first ceo went out and bought something in argentina for $14 million. he's got a good footprint there. he's got some other interesting dynamics. the whole notion of content. you know, clearly, at $40 a share with $400 million shares, $16 billion market cap with $12 billion of debt, paramount's got to turn around at some point. >> do you have a view on the at&t time warner deal? >> i think the probability with wheeler gone, the fcc doesn't look into this one or they'll spin off the tv stations and some ground stations. i think i've gone from 40% probability to 70% telephone stock is down because interest rates went up and the market's rotates. and as a result of that, i get 1.4% shares of -- >> it's an r play for you at

this point? >> no, i own 4 million shares and it's more than that. i think it makes a lot of sense for what stevenson's is. and the free market system should allow ceos to go and make their bets. they bought direct tv. they're going after this one. >> so strategically, you like the idea of vertical integration. does that make sense to you. the idea that they're going to create more value by having these assets together? >> i think the ceo should be willing to make the bet. his board is supporting him. his shareholders will have to look at it. and if they lose, that's fine. if they win, that's fine. from my point of view, andrew, i have no problem in making that bet. in addition to that, you know, disney has got 1.6 billion shares, sells at 100, so 160 billion market cap. will they buy netflix? >> if that happens and all of a sudden we're talking about the direct to the consumer issue. comcast, our parent company with nbc has a connection to the consumer. at&t and time warner would have a true connection to the

consumer. disney doesn't have that connection to the consumer yesterday. cbs/viacom -- >> they can buy netflix, and apple can come in and buy both of them. there's a lot that will go on in the next six months that are going -- consolidation is going to occur. but don't look at the u.s. consumer. we're only only 3308 millio mil. who is in the global market place that will be part of this process? viacom has a global footprint that cbs doesn't have. so it will bring it together. i think the next step would be to own content and distribution globally and connectivity. don't ignore the fact that the wireless companies -- you know, we are starting a new fund that is -- >> yes, the gabelli media mogul fund. >> it's an actively managed etf that we took a license that's in the process. and john malone has his fingerprints everywhere. so the notion of deal making,

the notion of corporate nations merging and consolidating and getting efficiency and getting content -- >> where do you think rupert murdoch is within this chess board. it may be that he is no longer in that same type of position. >> you have less than 2 billion shares. shrunk his cap. he's part of a -- he's part of the family now of malone. and as a result of that, you know, there's a lot of things going on. >> are you suggesting there could be a malone/murdoch tile m. >> no. rupert is very creative, very good, and a risktaker. let's see if tim cook at apple can do some of that risk taking by making a big bet on something. and in addition to that, fox's stock is cheap. and when the blue people come out, that's going to do quite well. and you've got three of those coming out over the next three or four years. live entertainment, live

entertainment -- >> people being -- >> i was very confused there for a second. >> "avatar." >> i thought you were talk about politics. >> the blue man group. >> there you go. but think about live entertainment. think about sports. the atlanta braves, the madison square garden with the knicks and rangers. think about live nation, touring. the millennials love concerts. the coachella was private, or you would be talking about that. you're talking about entertainment and companies like ryman that own the ryman theater. you're talking about football. the chinese love it. they're buying up soccer companies. and we wrote a report in chinese on man u. we have a book that we wrote up in japanese, we're doing it in chinese and italian. >> italian. >> sticking around. >> he should know, gabelli. coming up, rumors swirling about

donald trump's cabinet in waiting. president-elect reportedly considering representative jeb hensarling for treasury secretary. that congressman will join us at 8:40 eastern. we'll be right back. siness be ry when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com.

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welcome back to squawk this morning. here is what's making headlines at this the hour. valeant pharmaceuticals may soon get a new name. that's what persian square's bill ackman told me yesterday, saying a name change could help boost the troubled drug make's reputation. a little naming history. drugmaker biovail bought valeant back in 2010 and took on the valeant name for the combined company. fed vice chairman stanley fisher giving a speech in chile this morning. steve liesman joins us now with the details. steve. >> thanks very much. stan fisher speaking to a central bank company. saying the case for removing accommodation is, quote, quite strong. he said the fed is close to achieving its inflation and employment mandates, but he said u.s. rates will rise only gradually, and then plateau at a level that is lower than normal. he is optimistic, among reasons why the fed can hike. he says he's optimistic the economic drag from the u.s. dollar, a stronger u.s. dollar, has passed. you know, it's the gap between u.s. and foreign rates is likely

to widen. think about this, a fisher kind of preparing foreign central banks for what's going to happen in the united states. he is optimistic, though, that the effects of the, of these u.s. rate hikes will be, quote, manageable abroad. here's what he talks about. the foreign fed effects. foreign economies, he says, are on better footing to handle higher u.s. rates. and the stronger u.s. economy, which would be the reason why the fed would ik, should help those foreign governments. finally, he says foreign central banks can offset the effects of higher u.s. rates. speaking of a hike, jeff lacker has given reasons, bullard has said go ahead and hike, and john williams says a gradual rate rise still makes sense. that's four fed officials after the, election now suggesting a rate hike is still on the table. the probability of a rate hike was around 67%, for december. it had gone pretty much back. and who knows, guys. the fed is very, very concerned,

not to get, you know, repeat some of the market volatility that's happened around these rate hikes. but now that rates are already higher, especially on the shorter end, for example, north of 90 basis points on the two-year, maybe the market is already ready for this, but you have to watch those gaps with the foreign interest rates. michelle? >> that's an especially important point, steve. thank you so much. and i'm sure they've taken solace in the reaction of the market since election day. coming up, it's veterans days. david petraeus is here with plans about putting vets to work. that's next.

on this veterans day morning, our next guest joins us to suggest why it's smart business for companies to hire vets. let's bring in retired four-star army general, david petraeus, his historic career includes leading u.s. coalition forces in iraq, and commanding u.s. and nato forces in afghanistan. he also served as cia director, under president obama. general we trapetraeus chairs tr veterans at work program. also joining us, paul rykoff,

he's the founder and ceo of the iraq and veterans of afghanistan and america war. he's an iraq war veteran. gentleman, thank you. great to have you both on. for anyone that needs convincing that the skills that these guys across the board, i mean, i think about, i don't know how i'm any good -- i mean, they have faced things that i have no concept of. and most of the time, excelled. why do you still have to convince people they're the right people to hire? >> i think that's not a very hard sell, increasingly. businesses are experiencing exactly what you've said. it's not just the right thing to do to hire a veteran, it's the smart thing to do. but beyond that, we want to get our veterans careers, not just jobs. and that means that the firms need to invest in them. they need to educate, train, and mentor them along the way. that's what's really important. in fact, next week, kkr, and a number of the other large private equity firms are going to be hosting over 400 companies here in new york to discuss

lessons learned of the various firms. kkr, for example, has hired nearly 42,000 veterans now with its portfolio companies in america alone. >> i mean, i would think that when you're in the armed forces, there's -- i mean, there's privates and there's generals, but everybody's leading, aren't they? even a private has peers and he wants to lead for them. and i just think it instills those type of values that are absolutely transferable to the business world, right? >> that's right. they stepped forward to serve this country. and they want to continue to serve in different ways. they're also incredibly entrepreneurial. when things are rough, you need people who can handle it. and the men and women who have served in iraq and afghanistan have been doing that for over a decade. we're not a charity, we're an investment. you guys talk every day about investment opportunities. this is a generation of people who are an investment opportunity for our country, across every industry, across every business. and i think that message is

getting out there, but on veterans day, it's a perfect time to ram it home. >> and this is america's new greatest generation. in fact, tom brokaw is the one that announced that. back when he was with us, when i was privileged to command the 101st airborne division in northern iraq and mosul, he spent a day with us, and as he was leaving he said, surely he is is new greatest generation. and he's right. >> you happy about the election? >> well, i'm actually nonpartisan, apolitical, so -- >> didn't get -- >> the system worked. >> so let me ask you this. you made some comments earlier during the kpaun, not directly -- you never used the word drmp, but you were worried a little bit about some of the language that was being used, i think at time around the muslims and isis and things like that. do you have any anxiety there? and people who worked with you, mike morrell and others were much more direct in their view about trump. >> i've always been up-front. i've worked for democrats and republicans in the white house.

i've advised candidates of either party. i continue to do that. and at the end of the day, what has to happen now, in fact, i just finished a piece for "the new york times" that will go in this sunday. and my advice is, you've got to rebuild the center. rebuild the center on domestic issues and rebuild the center on national security and foreign policy issues. and by the way, this is a political outsider, who -- a dealmaker who can, indeed, forge a new coalition. and that's what has to happen. people have to give a little to get a lot. >> there's an opportunity here, too, though. you can rebuild around veterans. our country is extremely divided. supporting veterans might be the one thing we can all agree on, bring partisan folks together. and we've launched a campaign this week called operations unite america. veterans day is a couple of days after the election. let's use this as a time to bring folks together of all political backgrounds and have them bring us forward. >> general? >> this is the other 1%. you all have a lot of 1

percenters at this table. today we're talking about the 1% of individuals, men and women who raised their right hand and took an oath at a time of war. this is the iraq and afghanistan veterans of america, who he leads. and they're extraordinary individuals. they knew that they were going to war when they raised their right hand. now they're back, nearly 3 million of them have served since 9/11 and entered the civilian workforce. and it's about ensuring that we capitalize on the extraordinary attributes and qualities that they bring to the civilian work. >> god help us if we never -- i mean, we need people like that, obviously, to protect us and to protect our values. but if we ever don't have guys with that experience in society, i think we talked about blankfein earlier, i think he was the guy on the way into the new york fed during the financial crisis and the person with him said, i think i'm going to throw up. he said, you're not in a freaking u boat storming

normandy. you're going into the new york fed. >> he referred to omaha. >> omaha beach. you guys have a totally different set of skills and life experience that i actually -- i don't know if i'm envious, because i don't know what would happen to me, but you guys are different breed. you really are. >> they're a generation of men and women who can handle adversity. and we saw the world war ii generation come home and build the middle class and really drive our economy, because they could get stuff done in really trying times. they're the people you can depend on. we see it in every sector, in finance, in tech, in energy, especially in areas of operation, execution, they're people you can count on in a chaotic environment to get things done. and also, they're not just privates. they're also generals and colonels and strategic leaders who can really help us the in complicated times. >> let me ask you different question. that is, what's the right action for the united states from here. policemen of the world or pull back and let things -- let the chips fall where they may?

>> this is one of the areas where i think president-elect when he takes office is going to have to navigate. we have seen what happens if america is overactive, hyperactive, if you will. >> we've also seen what happens if america draws back. and there is a fibro, narrow line that we have to walk, where we do need to provide leadership for the world in a variety of different endeavors, without question. america is the number one economy, the greatest military, still a voice that is the loudest, if you will, in any given situation. >> do we enforce a no fly zone in syria? do we work with the russians to defeat isis? how do we approach it? >> well, with again, this is going to be a time to have some strategic dialogue with countries where we have not had that. where relationships have frayed. >> you find that with iran, didn't work out very well, did it, general? >> there are converging interests here and very significant diversion interests. and we have to go into these with our eyes wide open. >> what would you do with the iran deal?

>> with iran? first of all, what i would do with iran is the president ought to work with congress. and of course, they own it now. this is all republicans. and the first thing they ought to do is announce a statement of national policy that is that iran will never be allowed to enrich uranium to weapons grade, period. of course, the iranians have said, they don't want a nuclear weapon, so they shouldn't be concerned about this. then maintain the capability to ensure that's the case. and then, also, work with our partners in the region and our allies to counter the maligned iran influence that is causing such significant challenges. >> the president thought it was a good idea to bring our enemies, maybe, closer, i'm talking about iran, even though they still say things about great satan and destroying israel and everything else. does that not apply to putin? is it possible for him to be a frenemy? >> when you're talking to a guy who promoted reconciliation at a critical moment in iraq during

the surge. by the way, the surge that motored most the is change in forces. one of the biggest of the big ideas was the fact that you can't kill or capture your way out of an industrial strength insurgency. and then you go, even more. i just think all that means is that you should not hesitate to engage in countries that are adversaries, in many respects, but certainly may have some common interests in other respects. by the way, we're going to have to do the same thing with china. this is our number one trading partner now. and the two biggest economies in the world, but there clearly is a divergence of interest when it comes to the south china sea, the east china sea, a variety of other issues. and we'll have to figure out how to deal with these so china, for examp example, is the key to issues with north korea. if there are going to be sanctions on north korea, china

will have to support them or they won't work. >> one of the controversies during the election is when donald trump started talking about whether or not our nato allies were spending enough of their gdp on their self-defense, which is part of the requirement of being -- >> 2% of gdp. and the vast majority do not. is that going to change at any moment? >> i hope so. secretary gates, his valedictory address at the north atlantic council, i was there as a the commander from afghanistan was to say, you're not doing enough. and it went down farther after that. actually, to be fair, it has come back a bit. in part because of vladimir putin. nate's new reason for living is because of their aggressive action. >> and they finally woke up it would be their continent they would roll across instead of ours. >> there's still more to be done. so i think it is not unhelpful to have a president of the united states actually push these allies and remind them that we're doing the lion's share here, but we need to make

this a coalition in which all are contributing to the best of their ability. >> general we trace, thank you. >> thank. >> and paul rykoff, thank you. >> great to be with you. >> thanks for every day. >> thanks on this veterans day. >> and i don't know, as you get older, if i see like reagan with the boys of,, you know -- >> normandy. >> every time i see it wing about it. >> well, they'll be out in communities nationwide today. we want to join us for everyone here in new york. >> no veteran should be homeless. >> make every day veterans day. go to iava.org if you want to find ways to be involved and help and particularly focus on the employment issues, which needs that continued focus. >> thank you. >> great to be with you. >> the trump transition is underway. speculation flying about who president-elect trump will pick as his treasury secretaries. among the names mentioned, jamie

dimon, stephen ma nuchian, tom barrett, and our next guest. joining us, tom hensarling. good to have you here. >> thanks for having me. >> i hate this little ritual we're going to do. i'm going to ask you, do you want the job, and you'll give me some mealymouthed answer, but let's do it. congressman, if you were given the job of secretary of the treasury, would you take it? >> before we go to the ritual, if we could, i was listening to your program, thank you for your attention to veterans day, and as an elected official and father of two teenagers, any veteran within earshot of the program, thank you, thank you, thank you, thank you for making us safe, secure and free. that's a far more important statement. so, listen, i saw my name in the newspaper, they spelled it right. they haven't called me, i haven't sought the job. i have a great job, and frankly, i'm a lot more excited about it today than -- >> your last name or your first

name? isn't your first name spelled "jim." >> you'll never forget that. >> i love when the president calls one of the ranking members ofongress "jim" on purpose. >> president-elect trump once he's president will need somebody on kplcapitol hill to transh translate his vision into legislative language. and i'm uniquely positioned to do that. of course, let's go through the ritu ritual. if the call came, i wouldn't with block the call, we'd have the conversation. but i'm not anticipating the call. it's not sympathetomething i've thought about. >> do you think his supporters, the name jamie dimon has been floated, banker, do you think his supporters would be upset, would care, if he named a banker, somebody from goldman sachs to be the head of the treasury? >> i think that president-elect

trump's supporters are very loyal to president trump. and i think what they would do is, obviously, defer to his decision. i mean, he'd make his case to his supporters, make his case to the american people. and i don't think anybody would doubt that the buck would stop with a president trump. he would be the boss, he would call the shots. but he has to have people who he's confident in, to serve with him. but you know, i'm not ignorant of the fact that the whole wall street bailout in many respects gave birth to both the occupy wall street movement and the tea party movement. >> and not to mention andrew's book, as well. >> too big to fail. >> so believe it or not, even though i live in new york city, i know a lot of republicans. and you can imagine the euphoria that happened when they saw all houses of government now going to be controlled by the republicans. and the laundry list of dreams that has been to -- >> it is a field of dreams, isn't it? >> they're going to repeal

obamacare, do this, defund all the climate change stuff. no more subsidies for -- the list goes on and on and on. what is reality? >> well, a fair amount of it is to go it alone and to rule with his pen and his telephone. in other words, there were lots of executive orders, many dubious constitutional validity, but what it means is when donald trump takes his hand off the bible with his pen and his telephone, he can undo a lot of it. now, obamacare is tricky because roughly 95% of that happens to be entitlement spending. but much of dodd/frank, for example, has been carried out through rule making and enforcement actions within the larger unaccountable unelected bureaucracy. by putting the right people in place, by rescinding that, a lot of the damage that is done to our economy through dodd/frank

can be done through the right appointment of any executive order. >> alan greenspan yesterday said rip up the whole thing, get rid of it. is that what you're talking about? or is it tweaking it, changing it? >> there's no tweaking to dodd/frank. i'd love to rip it out. we have a bill called the financial choice act that has come out of my committee, which essentially will end all bank bailouts, create economic opportunity for all, we have a title for wall street accountability, washington accountability, capital formation. we have a title for community financial institution relief. we end too big to fail. it's a wonderful piece of legislation. i've talked to president-elect trump about it a number of months ago. he seemed to be very, very receptive to it. so, yes, we have both pledged to repeal and replace dodd/frank. its made us less free, less prosperous, less stable. >> all right, congressman, i'm glad you were able to deliver texas. i was told how touch and go that was going to be repeatedly. >> turning blue. >> the last couple of weeks by

so many of the pundits. good work. >> bad rumor. >> good work keeping that state. >> go texas. >> nip and tuck there for awhile. >> thank you, sir. >> thank you. >> when we return, jim cramer from the new york stock exchange. we get his take on the day's top stories. sing girl, come on. ♪[ singing ]♪ sorry, ariana you gotta go. seriously? verizon limits me and i gotta get home. you're gonna choose navigation over me? maps get up here. umm... that way. girl! you better get on t-mobile! why pay more for data limits? introducing t-mobile one, unlimited data for everyone. get four lines just $35 a month.

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welcome back to squawk. let's get down to the new york stock exchange. jim cramer joins us now. jim. >> first, andrew, congratulations. just unbelievable journalism. unbelievable session. you don't get congratulated enough. i'm giving it to you flat out. >> appreciate it. thank you for that. help us understand what should we think about disney this morning? >> there was a q and a, we've taken a more bullish position in espn sub. it was 91 when said, it was 96 when he finished that paragraph. now those up against what he's regarded as the interactive mode of espn and people should start counting subscribers. i think there may be other fires to put out but espn was extinguished last night in q and a. >> why have the tech companies

not had a good bounce? >> they were going to do well without the economy, so therefore we knew what their numbers were going to be. we can take up numbers for freeport, we can't for adobe. adobe has high numbers. look at something like nvidia and hope that ignites a tech rally, but that was one of the greatest quarters i've ever seen. that stock will be up 12 and will be because that was the best quarter of the year. >> for the viewer who plays the indexes at this point -- >> smart. >> do you think there's room to run? is there more room to run in the immediate term? >> there's too many people who bought on wednesday who are up. people bought tuesday they covered their short. the people who bought wednesday, let them sell off today and a new day on monday. >> okay. jim cramer, see you in a couple minutes. >> thank you. >> and a quick programming note, you don't want to miss doubleline capital jeffrey gundlach coming at noon eastern time today. squawk returns in a moment.

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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. ♪ a final check on the markets before we go. the futures right now are now consolidating gains. nasdaq continues to be weak. it was weak yesterday and actually the s&p is pulling back a little also, or indicated to do so. only the dow is indicated higher, which closed at an

all-time high. there's a currency check on the euro 1.09, yen, 1.06. the pound has actually strengthened recently. there's the energy markets, oil weak, which is sort of the opposite of what you might think at this point. >> i think everything's being undone from the last couple days. >> cyclical rebound also headed. >> what a week it has been. only in america, everybody. michelle, thank you. have a great weekend, everybody. make sure you join us on monday. squawk begins right now. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. it is veterans day when we honor those who have served in the u.s. armed forces. bond market is closed. stocks are not changing much after of course the best week for the dow in at least five years. it is day three of the presidential transition. a lot to get to. europe is mixed. sterling at about a