and "squawk box" begins right now. >> live from new york where business never sleeps, this is "squawk box." >> good morning and welcome to "squawk box" on cnbc. u.s. futures are pointing to yet another strong open, the dow opened higher by 76 points. the nasdaq by 12 and the s&p by more than 6. overnight in asia, pretty decent gdp. that's why the market is higher by 1.7%. hang seng and hong kong lower by 1%. and shanghai was flat. european equities, the yields are moving higher. germany and france are higher. italy and spain are lower. we'll see what is happening with the u.s. treasuries. the ten-year yield is rising and solidly above 2%.

we're decoupling 2.27%. 30-year at 3%. five-year at 2.6. and i go through all of those to highlight the yield is steepening and continues to do so. global yields, this is getting interesting. italian ten-year, 2.21%. it's moved 18 basis points in a day. you see the biggest weekly rise, one-week rise for the italian, german and french ten-year yield, we have seen it happen the highest in years. >> how long? >> 30 years. >> but all the strategists said probably five years -- four or five years ago we were wait iin. >> here we are. >> what was happening the entire time that rates were not going up? we were sub-2%. we were stuck in the muck,

basically. the greatest thing, i mean, to see the stock market hitting new highs while rates are surging, if you're at zero on rates and sooner or later you have to normalize, if rising rates are going to move into financial assets, you have a problem with stocks going down. unless you decouple. rates are going up for good reason, then the stocks go up at the same time. >> you have something else to underline. i think for months if not years or the last year, the european yields have been leading u.s. yields and now it's reversed. now as the u.s. yields rise in response to what you're saying, higher growth and expectations, if you're going to get 2% in the u.s. ten-year, everybody else in the world has got to pay more because that is the rate of return. so everybody else has to compete. >> nobody else would buy the other debt. but how much do you think the upcoming italian referendum has to do with the current move in yields because deutsche bank is putting a 60% profitability on a rejection of referendum, but i don't think we trust any

strategist at this point. >> here's what i think about the referendum, this is the one where they actually are like, this is going to to go against the european. maybe they're wrong. maybe this is the non-brexit. everybody assumes this is another brexit moment. >> europe is not what is causing what is happening here. maybe this reverses itself. maybe people are ahead of themselves based on a guy that is only elected. he's president-elect and all this happens in a week? the opposite of what was predicted to happen, but this much of an opposite? i mean, and so you wonder, could the united states really start meeting again in terms of interest rates, economic activity and stock markets, just because a guy gets elected? >> even before the election, our interest rates as low as they were were still among the highest in the world. our growth is still better than elsewhere. >> we thought we were between 1.5 and 1.7 forever.

>> i think you're right, the rate of change since the election is dramatic and stands out. >> a lot of pent up energy in the, ma. here's other big corporate stories we are watching today. some news with siemens buying mentor for $37.25 a share. the deal is valued at $4.5 billion. that's including debt. mentor sells hardware and software design automation tools used in developing and testing lek tropic systems. s samsung electronics is acquiring harman international industries. the deal is valued at $112 per share in cash or $8 billion. that's a 28% premium. and it is samsung's biggest acquisition in itself history. the south korean electronics giant says harman will operate as a stand-alone subsidiary and plans to keep the company's

workforce headquarters and facilities. take a look at where harman is unchanged in premarket trading, but it is interesting samsung is going the acquisition route among the cloudy corporate structure and all the troubles in the electronics recently. and american apparel filed for the second bankruptcy protection in just over a year. this news comes at the retailer has faced heavy competition and a rocky relationship with its founder. the clothing maker listed assets and liabilities in the range of $100 million to half a billion dollars according to a court filing. separately, gilden activewear agreed to buy intellectual property rights related to american apparel but not the retail stores, of which american apparel had quite a few when it first opened. >> harman's probably halted. the bid is 109, it closed at 87. the ask is 112. >> speakers, right?

really good speakers. >> yes, audio car speakers. that is for people who still have a car or find the need for a car. >> or need to -- >> you did. you rode on uber. >> i did ride on uber. >> it's definitely peaked. >> it's a pretty crappy car. >> compared to a taxi? >> i took a taxi back yesterday because i didn't feel like figuring out the uber. and it was three times more. >> the taxi is a lot more expensive. >> normally you can't get a taxi to take you from new jersey. >> the train station in newark. but the crappy car, some of the cars. >> they are like toyota camrys. >> this was like an old buick regal. >> that is an outliar. >> i had a 4.8. >> it probably had nothing to do with the car. he was probably a nice guy.

>> you sound like al gore. >> he had a 76! >> was it uber x or black? >> i don't know. my daughter booked it. a busy week for fed speak. we'll hear from dallas, richmond and san francisco fed presidents. you know, the election is over, but at least this still happens. you know what i mean? i thought i was tired of the election. but who could ever tire of these guys? >> look at them all. one, two, three, four, every single day at least two. >> who doesn't want to hear from at least three of those guys per day? because they -- some day they may actually raise interest rates a point. >> it needs some strengthening. >> we need to talk about that and need to kick that around a little. they have kicked that around for at least a couple more months.

>> i played devil's advocate in the past to say maybe the fed has to lay it out so clearly because people have either chased the yield curve or chased the asset class down into de-stressed debt and need time to unwind some liquid investments. >> i hope we can know what to plan for. >> what would happen? on tuesday vice chair stanley will speak along with two others. on tuesday we have two speakers as well. we have the fed speak on

wednesday and the consumer price index on thursday. >> steve bannon will be the senior counselor to the president. bannon was the president of conservative breitbart news. and reince priebus is the white house chief of staff. >> did any of you notice that he was head of the rnc? so -- >> basically he just added some vowels. >> right? the rnc, put an e -- >> he was boorn to be the leade, i see. >> he got to the rnc, what can my name be? r -- n -- it is embedded in his first name, the rnc. >> does he have to change his name now? >> no.

the bottom of the hour, we're going to talk -- is this me still? >> no, it's good. >> we're going to talk to craig fuller at the bottom of the hour. >> he served as co-chair to george w.h. bush's transition team and has advice for the president-elect. >> do you think i'm going to steal it from you after what i have seen from you in the past? >> i count my words. >> i have not witnessed that. >> i get up at 4:00 in the morning for this show. i want to read some copy, okay? >> i get up at the same time. go ahead. you can have all of mine. what do they call luck being the intersection of hard work -- >> and destiny. >> love comes to those who work their butts off. >> i'm lucky. yesterday i ran into one

politician who probably won't have a spot in trump's cabinet. senator bernie sanders. i had a weekend with bernie. now, for all you people out there that are saying, first class -- no, no, no, no. it was not first class. >> you were going down to interview his press secretary? >> no, i came back. i would not take that job. you know, it's hard, but you think i'm going to listen to the mainstream media question -- more mainstream media to question people about trump? i do that here, mainstream immediate xwmedia questions about trump. but i do get lucky. this was another one. everywhere i go i run into people that i'm excited about. did you see that one, too? >> i was here that morning that you displayed it, yes. >> and everybody is always smiling. >> we don't have a good name for bernie like we have for her. she's got two.

hiawatha. do you like that one? >> it's okay. other people use it. i'm afraid to -- i'm still politically correct. but yeah, bernie, i went up to him, he was very nice. and one of his staffers was there. he's been on the show before. >> did he ask to take a selfie with you as well? >> to be perfectly honest, my daughter who is in the conservative club at her school, though a lot of her friends are not, and he is their absolute idol. and she said, all my friends would love that. and she gets along, i don't know how, she gets along with all of them. that was very important. but it was very weird. i turned around after the election season, he's two people back in line to get on the sail flight. >> no secret service? >> no, he's just very nice, mr. sanders. >> senator. >> mrs. sanders. >> i thought you said mr. sanders, sorry. mike santolli has a new piece on the bulls bet on the

trump presidency. i assume that is on cnbc.com. he is joining us now. >> cnbc.com/pro. you guys are talking about this new story line attached to the s&p 500. we have had big rallies off an election shock, but there's definitely something different about this one. and the storyline as well as the violent rotation that has kind of taken place along with it has been different here's what is going on, obviously the markets rush to price in when you see the pro-growth policies in the coming year. cyclicals, it's a renation trade. so nominal growth will be higher. the markets are suggesting that obviously the bond and stock market is doing that. we had a rush from big stocks to small stocks, from same stocks to risky stocks. that's all going on below the surface. maybe this is finally -- nobody talks about the great rotation from stocks to bonds, maybe now we get one. and the market is saying let's not worry too much about the stuff we don't potentially like, like trade barriers and other

things, which maybe there doesn't seem to be as much of a direct line as least to those things happening. the question is, can you believe it? what might be the pitfalls or maybe it's gone a little fast in some directions. the direct infrastructure plays seem to be running hot whether it is copper or shares of caterpillar. and are we going to be talking pretty soon about the fed having to move or wanting to move faster? this could help you get higher mom mall growth, nominal growth. i have been coming down on the idea that it's a high data environment. that means a wider range of outcomes, that concludes the upside risk as well as potentially more volatility attached to policy as it comes out and develops. >> let's get cyclical -- is that -- >> it's hard to resist that one. it's a market of my generation,

i think. i might have had the album cover. >> she was hot. she was cute. >> but for halloween, that was the clothes yous you used to we >> the leg warmers and the headband, yeah. >> they are a particular brand and color of neon. >> i had a sick vision just for an instant of that. >> we have to plan this better. for more on the markets, let's bring in steven weiss ean i think of our past conversations, am i wrong that you never -- you are both steve. shoot. you never want to raise interest rates, do you? the things are so bad and it's working for us and we've got such great economic -- don't ever raise them, that's your vie? >> the environment we were

locked in to before with the potential fiscal policy and monetary policy, yes. the question now as you kind of indicated is have we shot the first and second questions later? that's a big risk and this does indicate that is there potential for the fed to do anything earlier than anticipated. all i know is that they tend to move further than anticipated and create a very good opportunity on the other side. and they take economic hostage along the way. remember, we have a 600 billion structuraldeficit. you're going to add $850 billion. that will affect the long-term interest rates. the currency goes up dramatically. a lot of the conversation hasn't been about currency, but it goes directly to the in-court potential to bring up the whole trade implication side of this. because where is the yuan going to go? my colleague in hong kong wouldn't be surprised to see the yuan down to 7.9.

these things are all going to have reciprocal reaction. >> they finally get the value. >> exactly correct. >> when the market moves, we give it to sort of metaphysical attribute, but there are individual players doing things. for example, bruckemiller the night of the election sold all his gold. and in animal spirit, i know the guy is just the president-elect and who knows -- i don't know who he is going to pick for the cabinet position, but maybe everybody isn't wrong from the knee-jerk reaction. we are inflating and everything else. >> a lot of people have been on the sidelines since early this summer. >> the sidelines for eight years. >> exactly. there are things like taps reform, it's significant. thinking about repatriotization that could bring back six points to earnings. if corporate rates are lower,

the numbers are huge. we are talking 12% to 20%. >> they might do infrastructure if they think it is their idea, you know what i mean? if they didn't have to say no to obama. >> and have to deal with the private sector involvement. >> they will find a way to do it. >> the infrastructure is huge as well. he's talking about a trillion dollars. that's harder to figure to the exactly where that flows through to equity markets, but the market is definitely focusing on the pro-growth parts of the plan. >> at what point does the rise in interest rates, regardless if you're excited about the economy, at what problem is it a problem for the stock market or the bubbalicious stock market. >> we have a position with jpmorgan that is finally going to work out. i don't think it continues. >> the bond proxy is what? >> telecom, bond proxies, so the companies that don't grow to pay the higher yield, those are the companies to avoid here.

>> the pension fund is not changing tech allocation at all. i'm just going to accumulate cash, see what happens with the fed in december and see what happens with 2017. the market's really not anticipating the federal reserve to come in in 2017. the market right now says let's cross the line to see. the steven ricchiuto fund has worned well since my son was 3. he would never be able to take care of mom and dad. >> you're talking about your room. okay. >> okay, all right. >> to both of you, thank you. coming up, it's a big week for earnings reports from home depot, lowe's, target and walmart.

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retail reporting season officially underway. we have seen a few of the large players, but things really ramp up this week with reports from

home depot, target, walmart among others. joining us now with a look at retail's big week ahead is our cnbc contributor, pleasure to have you here, jay. >> good to be here. the only thing retailers are concerned about ttp not going through but we have gotten used to that. and everybody is worried about there could be tariffs. i don't think we'll see that in retail. we may see that in other forms of manufacturing, but nobody thinks manufacturing is coming back to the states. so in general i think if you're a retailer, you go, wow, if tax rates are really low, the higher retail could be better. if we get higher growth, obviously the middle part is better. and so i think most retailers right now, a lot of retailers didn't vote for donald trump, but they should have because

their business will be better. and now they might see that. >> one of them was looking at inventory supply management. he was not talking about the other side of the supply/demand equation, which is demand. he wasn't convinced yet. he didn't expressly state that, let's put it that way. is that what this quarter will be about for the retailers, inventory management? >> yes, i have been telling my clients all along we are going to have a stronger fourth quarter. the third quarter was better than the second quarter. the second quarter was better than the first quarter. >> all because they have less stuff. >> they are doing a better job of managing the inventory process. and they'll have more weather, it can't be worse than last year. and they are looking at more jobs. they are looking at a little growth in wages. all that has been happening over time. that will culminate over the fourth quarter. we'll see a decent fourth quarter in 2017. that was going to happen no matter who got elected, but i do think we may see better high-end

now since people are not going, oh, my god, my taxes are going up because we had seen pull-back among people fending at the high end, even though they could afford to spend, they weren't spending. >> the inventory quandary is counter intuitive with retailers having less stuff to sell, meaning sales are not as high as before. yes, they were over inventoried, but they were optimistic about the consumer. do you think the optimism will improve? >> we have not seen great top lines, but we have seen a better gross margin. so i don't think we'll see really strong top line growth. and i do think we'll see a huge shift to the internet. so some people are going to get hurt from that, but in general we're going to see stronger bottom line numbers and okay top line numbers. >> how far in advance are you managing for inventory? you're picking -- >> six months. >> six months ago they had no idea the election was going to happen. during the crisis, you walked into a store in the spring and

summer of 2008, the fall of 2008, and they were all inventoried for 2006/2007 mindset. boom, it was a whole new world. feels like it is just the opposite of what's happening here potentially. >> well, i do think if we get real strength for consumer in the fourth quarter that we didn't expect, because the election went the way it did, and things are a little more optimistic. and generally, things are going to be better, just because the election is over. we always see a slowdown heading into elections. and god knows if we see that normally heading into an election, this election had to be worse for retail traffic and retail sales than anyone i've ever seen. so the post-election pop no matter who should have won should be better. >> best retail names in terms of sales? >> the best names to watch in retail sales, we'll see recovery in things like teen, because it's been so bad, but they won't be the best in retail sales. we'll see benefit in the department stores, just because

they were so tough last year. as you saw in the third quarter, if expectations get low number, you can beat them. well, we'll see benefit there, too. >> thank you, january. >> could people get into saks fifth avenue? >> no, we'll see issues on fifth avenue and see issues on madison avenue. and i don't think that will change for the next four years. >> because retailers in trump tower -- >> they can't get in there. >> yeah. >> the good news for most of retail, that's not a problem. >> usually these are mostly peaceful -- >> is that where andrew is? >> i don't know for sure. isn't it? i haven't heard. is it -- maybe someone -- i just assumed that. >> i was disappointed he was not here to talk the election. >> yeah, i don't know for a fact that he's there, but i don't know he's not there. coming up, a busy weekend for the trump transition team with the president's first picks and who is in line for other key jobs. and craig fuller is joining us

next. he co-chaired the transition team for h.w.

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morgan stanley welcome back to "squawk box." u.s. equity futures falling off the session, the dow opens higher by 19 points. the s&p is lower by 1 and the nasdaq lower by 10. that's a reversal from this morning. treasury yields touching 2016 highs. just this morning the ten-year yield is at 2.26%. we have seen rising yields throughout europe and the united states today. a continuation of what we saw

post the u.s. election on tuesday. take a look at currencies, the dollar is stronger. very consistently. and we see that again this morning. look at that. euro is now below $1.08. they are happy about that. almost $1.08 yen for every dollar. the pound will cost you 1.25. to the presidential transition now, the president-elect has named reince priebus as chief of staff. priebus is currently serving his third term as rnc. see? >> right there, yeah. can i buy a vowel? >> it's embedded in his first name, rnc is right there. he was perfect for the job. that's the longest tenure as chairman in modern history. and trump's campaign ceo steve bannon will serve as chief strategist and senior counselor to the president. and joining us now to share his thoughts on how the presidential transition works is craig fuller, he served as co-chair to

president h.w.'s transition team. good to see you, mr. fuller. a lot of people have said that if you're going to find one that can do those hundred most important initial positions, like the rnc chair, those people, he knows people to fill those important staffing positions. and i read somewhere that maybe some trump staffers weren't completely aware that everybody leaves at the end of the administration. and they are like, well, a couple people, right? you got to start from scratch. and priebus can do that, couldn't he? >> it's a daunting task. no corporation would eliminate the entire upper echelon and try to replace it in 70 days. that's what he has. i think reince priebus is a good choice because he does noah. he does know the players here. but he's also been out all over the country, so he understands the pulse of the country as well. and i guess most importantly it seems he and the president-elect

have developed a very good relationship because the chief of staff is there to make sure you're implementing what the president-elect and soon to be president trump want to see happen every day. >> i don't -- it's funny because, let's see, last week it seems like we're still as the media watching every tweet that donald trump tweets out. and last week he didn't have the right tweet for the demonstrations at night. then he came out with the right one the next morning. and the media still hammers that, it's like, 5:38 and it doesn't matter anymore. you drive the poll numbers down. it's not -- i don't know why we continue to do that. but if i were the trump transition team, he is still trying to walk a fine line between draining the swamp and keeping people in that actually know what they're doing. he's going to be criticized if he doesn't get all outsiders, he's not draining the swamp. and if he does -- you know what i'm saying? he's going to somehow have to walk a fine line or be criticized. >> you mentioned the top 100

jobs and i have always thought that was the most important thing to focus on during the transition. and there has to be a balance. really, there needs to be people who are new, fresh, with bringing new ideas, but you need to have people who understand how the mechanisms of washington work. there's precious little time between inauguration and the submission of the budget for the huge government that he now will run. he needs people that understand that. and i know his congressional affairs office and his chief of staff, i think he's sent a signal right up front there's going to be a balance. i suspect we're going to see that. and he also seems to be reaching to it to a much broader audience. he doesn't seem to be burdened by the rhetoric of the campaign. hopefully he'll find a path that works for all of us. >> should he go all the way across? i heard kelly ayotte who didn't back him, that she could have a cabinet position. should he reach across and pick a democrat, jamie diamond, something like that for

treasury? or will then the conservatives say, he doesn't know what his -- he doesn't know where he stands philosophically? >> my experience, i haven't seen a president-elect that has more freedom. he was not a partisan republican. he certainly has some reason to be skeptical even though the republican leadership, although he has to work with them, i do think you'll see him reaching across the aisle and probably forging kind of a coalition of sorts to get things done. if there's one signal that the american people sent, it's that they want washington to work. they want it to function again. and to do that, he has to be working both sides of the aisle. and i think he's more free to do that without the political past that most presidents come to. >> the lead editorial in the journal is about having picked both bannon and priebus and questioning whether it's a sublime yin and yang, or if it's

a trump "survivor" and will they work together. >> why did you pick an abc show? >> because i'm quoting -- what are you hearing, did they get along or not get along? and is it a justifiable concern with battles many the white house? >> the west wing of the white house is a pressure cooker. nothing easy happens there. there are times when we have rivalries. we hear part of the trump management system is to put people in positions where they sometimes may work against each other. that would be a waste of time in many ways because you do -- the clock starts running right away. in the reagan white house, we had a great blend of people with washington experience like jim baker, chief of staff, ed meece, long-time advisor to ronald reagan. there were tensions reported, but for the most part these people worked closely with each other, the staff worked well

with each other. i tell you one thing, the staff below the two top people, that's critical. because if there is tension, you really get it played out in the second and third levels below that. and it burns up a tremendous amount of time. >> craig, what functions do you see falling to the chief stat just. because it's not a traditional role, i mean, normally a president would surround himself with senior advisor types, but the chief strategist title is a relatively new one. you have seen chief strategists in campaigns with david axelrod, but what functions do you see falling to bannon? and what staff do you think he'll actually get to build up underneath him? >> honestly, it will take time to sort out. but to me it means that the strategist that is the most critical is how to get your agenda through congress? how do you work capitol hill to put a winning coalition together. and that has a lot to do with the way you're communicating and shaping public opinion. again, the strategist --

>> but if somebody on capitol hill goes against donald trump, that's the guy who will help him frame the positioning to say, get on board. and here's the methodology and the language that you use to make sure they come along with you. that's my guess. >> that's my guess. and there is also an old saying in washington that sometimes to see the light you have to feel a little heat. and i suspect that there will be a little heat applied. >> and bannon is all about heat. >> that's for sure. >> yeah. >> okay. thank you. i've said it before, the whole pool, i made this joke ten times, times,but the whole pool of applicants has opened up. some with private sector experience will be considered this time around, up like the last eight years, that is an immediate qualification for serving. you can have worked if the private sector to come in here. you don't have the to be a total novice in that regard. >> i think it probably has a premium with this administration.

>> instead of qualifying. >> right. and actually, these agencies and departments of government are bigger than most of the fortune companies. so they are big management positions. and i think you'll see president-elect trump picking people who are good at running. >> although the journal piece also posted out co-ceos. >> they seem to think it's a bad idea. >> yeah, all the way back to oklahoma. remember the co-counsel more recently was john reid. >> thank you, craig. coming up, protesters outside trump tower create security concerns and congestion in midtown. robert frank has more details up next. and as we head to break, a quick check of what is happening in european markets right now. bond yields are back up, but you're also seeing equities rise, too. we'll be right back. reti rent squirrel from voya. we're putting away acorns. you know, to show the importance of saving for the future. so you're sort of like a spokes person?

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time now for the executive edge. trump tower is at the center of daily anti-trump protests with security barriers blocking the front of the hotel in order to protect the president-elect. robert frank is joining us now with the impact this is having on real estate and businesses on fifth avenue, especially now,

robert earth, that some reports are that donald trump won't live in the white house full-time. he'll still be living in trump tower. >> reporter: yeah, exactly, kayla. well, one of the questions that the new trump era is, what happens when the president lives on one of the busiest intersections in america? this is trump tower where he has his three-story penthouse and offices. and it is smack in the middle of midtown. because of all the security needed to protect the president, this entire area has become a ring of steel. there are barriers, there are police, there's a mobile command center. there is a no-fly zone above trump tower. and there are a lot of lane closures and road closures for a street and area that is very important for bus traffic, for emergency vehicle traffic, for bridge access. the question is, how long this will continue? there are a lot of businesses in this area, we have prada, we have tiffany and gucci in trump tower itself. to get into the stores, you have

to pass through very heavy security. now people poclose to the trump family tell me mr. trump does plan to spend time here during his presidency. mayor deblasio says anything like that is untellable given the security and importance of this area. of course, trump outranks the mayor at this point, so that will ultimately be trump's decision, guys. back to you. >> unless the helicopter traffic got congested, it wouldn't really influence de blasio, would it, at this point? i mean, the no fly zone. so the mayor has to go around trump tower to get where he wants to go now. okay, i got it. i understand. >> robert, i wanted to see what was going on, so i walked over there yesterday, to exactly where you are, and if you tell all the guards and everything you want to go shopping at one of the stores, most of the time they let you through unless something is going on.

and speaking with some of the workers there, they said traffic was down dramatically in places like gucci, et cetera. however, the people that got through were far more likely to buy, like your return on ticket -- because i think a lot of times when the streets are open, a lot of people go in to look because they are curious about new york. >> reporter: we are approaching the holiday season, and passing through security guards with an automatic weapon doesn't put you in the mood to buy a $3,000 purse. but you're right, these stores will open soon and the people who want to get in can get in as long as they're not protesting. so we're going to see how that shakes out through the season and whether this is sort of the new normal for this area or whether this just lasts until january. >> right. robert, trump is not the only person who lives in that building. if you are a tenant of trump tower and you have to deal with that constant presence of people and of barricades and of security and metal detectors just to get to your apartment, do you think we'll see a lot of

selling many that building? >> reporter: yeah, that's so far a no, kayla, but that is something to watch as well. and whether you can really get a good price for these units. on the one hand, this is a tough sort of period of time. on the other hand, it's only temporary, whether four to eight years, eventually this will go back to normal. so there could be good deals in the next four years on trump tower if he continues to come back here. we'll keep a close eye on that as well as all the trump buildings in new york city. >> you got it, robert. thank you. coming up, a closer look at some of the stocks that missed the trump rally. the tech informs or the paul niche tells us why apple, facebook and amazon got left out and why there could be buyers right now. tomorrow on "squawk box," at 7:00 a.m. you'll know what time it is. >> it's miller time. >> it's miller time! >> our guest host is the father/son investment team of bill miller and bill miller iv.

they'll join us to talk markets, the economy and the impact of donald trump's electoral victory. miller time starts tomorrow at 7:00 a.m. eastern on "squawk box." mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t.

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markets climbing after the

election, but a few stocks missed out on the trump company. and paul, if you think about the trump rally, and the under pinning being this theme of borrow and build that we will see large scale infrastructure investing, it's hard to see tech playing a role in that. >> in the near term and intermediate term, look at how robust the cloud computing business is and just with all the rhetoric, pre and post election, some of the technology companies have come down, and i think it's unjustified and i think the select names, the correction is overdone and there are great buying opportunities which i have not seen in

technology. >> which names do you think the buying and selling is overdone? >> the best buys here are facebook, and facebook is not a cloud computing play, but i think they have a long runway with messaging and video, and i think amazon -- driven by amazon web services is attractive here, and i think the downside to amazon is moving average and it gives you 5% lower risks and the stock goes up higher, and then smp, that company is going to be executed in a merger at about a year from now at $110 cash prize and could get a annual percentage. >> what happened, paul, if amazon were -- the way that people would like to tax amazon,

if the worse case scenario came to pass, and, you know, i don't necessarily buy into resrepblg, trump, and how much would that mean to the bottom line at amazon if that changed? >> first of all, joe, i love your view, you know, jeff base yos is not going to be able to send trump into orbit and trump is fought going to be able to do anything like that, and i do think overall if there are changes and we have a repay treeation of overseas and back

to the united states, and i think overall this would be positive for amazon. >> what about the rising interest rate? those stocks have to prove that they can do even more, right? that's generally bad for amazon regardless of what the fundamentals are. apple is trading in a small period, and amazon is not. >> another good question. when you look at amazon and every since the company went public in 1997, and people are not focused necessarily on eps on whether that's a gap or nongap, they are focused on free cash flow, and yes, the discount factor is going to play a role. i think what has happened recently is the explosive growth

in amazon web services and everybody latching on to the cloud computing theme, and it's infrastructure as a surface, or sub infrastructure, and i have a very bullish view because it will be very strong. >> betting against amazon, wrong set of history. if you look at the long-term chart, yeah. we have to leave it there. appreciate it. coming up, joining us after the break, barry and russ cause stretch.

green arrows across the board. to start the week, russ koesterich is here to talk about the markets' next move. and reince priebus and we talk market implications with barry sternlicht. ing. the second hour of "squawk box" starts right now. >> announcer: live from the beating heart of business, new york city. this is "squawk box." >> welcome back to "squawk box" here on cnbc. i am michelle cabrera along with

joe concernen. here's what is making headlines at this hour. what will the economy look like under president-elect trump. tax cuts and economic spending will see a economic stimulus and there are worries over trade policy. the former cfo over the software maker has been indicted if that the cfo's attorney says his client is innocent and will be acquitted. hp eventually took an $8.8 billion write-down on that business. and two multibillion cross border deals this morning, and germany siemens is buying mentor graphics who is the maker of

software use, and look at mentor stock, up about 20%. this week is jam-packed with fed speak and key economic data. look at this graphic. every single day this week, at least two or three members of the fed are going to be talking. today we are going to here from fed president's dallas and san francisco, and the one is watch is fischer. thursday we will get cpi data. on the earnings agenda for the week, tomorrow home depot, and wednesday lowes, target is cisco are the ones to watch. how many of the fed folks had to change their speeches after the election? >> well, maybe none of them. >> maybe it was not going to be relevant at all. the trump administration is

naming republican national committee reince priebus as chief of staff, and and steve bannon as chief of staff. now i will have them both with me in the white house as we work to make america great again. i don't know where kellyanne goes. >> press secretary? is that too low for her? >> i hope it's laura. >> laura? >> ingram. >> they will write songs about her. >> when greatagain.gov, more

than 4,000 -- >> trump is starting from scratch. and this makes farage the first foreign met with trump. the chief brexit engineer argues teresa maes needs to mend fences. he said i am just a tourist, only here as a tourist. >> when you lead the press release, they mention twice the bust of winston churchill, and

now he asked that donald trump move it back in again. this is a big deal. this is in the wake of brexit, so the kwraour pea union, they called a emergency meeting, and they thought donald trump's presidency warranted the same response. >> i know colleges were giving students time to spend with some puppies and things like that, to pet the cute thing and try to get them to stop crying and stuff, and were there puppies involved, golden retriever puppies were the best for grief. i thought you were going to get farage on. >> i spoke with him at 11:30 on saturday night. >> can he be a cabinet member? >> as a foreigner? i don't see why not. >> speaking of international

relations, the trump team sent out a readout last night that president-elect trump got on the phone with china's president, and trump stated he believed they could have one of the strongest relationships for countries. >> that isn't different than what a lot of china experts were saying even before trump was elected, and that is over in china, they wanted trump. i don't know why. >> i know why. they hated hillary clinton because of the human -- >> and the chinese wanted trump. >> hillary clinton was always lecturing them about human rights. >> you have a stake in every country in the world as to who you are, and which makes you very wealthy.

our guest -- >> that's why you are here, dude. let's not kid anybody. >> we were talking about -- were you going to say something or you just are amused? >> i think we are in this interesting period. it's a goldy hraubgs period. the currency manipulator, will they be upset with that, and they have a fixed currency, and they may have fixed it at the wrong spot and they may have appreciated against the dollar in advance of the election because they didn't want to be ab labeled a currency manipulator go into this, and i think they know things have changed, so i think everybody -- we are optimistic, and a strong u.s. economy regardless of how it happens is good for the chinese. >> did you watch last week.

it was wednesday or thursday. it is almost like people got permission to be bullish about animal spirits. >> commence sense has been divorced from politics for so long, and when bill clinton was go into the second term i was worried he might pivot left, and people say he wants to be great, and to do that you have to go to the center, and that's why you get reince priebus as staff. if that happens, he has a chance to be great. >> these people from the "new york times," i saw it in hindsight, and they got mad he was not campaigning harder than

hillary clinton. for a 70-year-old guy, it was unbelievab unbelievable. eight cities in a day. >> yeah, he got great receptions, and you heard 31,000 people at 1:00 in the morning in michigan. he loves the positive feedback, and he did hear it. he heard a wave -- such an interesting election, right? the kids voted basically for her, and not for -- it was a brexit vote. the older people went for hillary and the younger people went for her, and they -- i think you have -- was it the wider margin, and whites 31% versus 20, and there was a racial under tone to this a little bit, and he said he needs to work on it and he said last night on "60 minutes," stop with

the violence and hate crimes -- >> and he did rise to that occasion, and he said this is done. knock it off. and maybe he needs to make a speech, because that would reassure a lot of people, and there are a lot of people that are nervous, and the donald, we both know, he's not a racist. he's not a racist. >> no, i know. was romney, because he was cast as a racist, and george w. bush, and -- >> they say it every time. they put it out of the playbook and in the gender playbook, too, barry. it's hard when your policies -- >> trump is very colorful. >> look who he has employed? look who is in charge of his construction company, it's a woman. >> everything for donald, for those of us who know him, it

will be his cabinet. he will delegate, and his instincts will help to drive his thoughts. a lot of this is new for him. >> i am thinking back to cnbc delivering the alpha conference, and the crowd was big name investors, were asked would any of you work with donald trump and not a single person in the room raised their hand. has that changed now? >> the rhetoric that divided the country has to stop, and i think a lot of people were nervous about that. >> harry reid is helping -- >> harry reid is not helping. the two of them -- there's a lot of things that he said are going to be hard to do, and one thing that you worry about, and his priorities, right, how are you going to pay for infrastructure, and it's going to be tied to giving jobs only to u.s. companies, because we don't have enough workers, right? we are running 4.9 of

unemployment, and he has to train, and have education, and ivanka talked about that last night, and that has to be a priority of the president, because we will continue to have innovation, and new things like autonomous cars, and people will lose jobs and if there's not training and education and the big emphasis on education, these people will not be able to fill the jobs out there. we have to get these people off -- they are not unemployed, under under employed. we have to get the 9 million people that left the workplace after '08, and some are old but some have to come back into the workplace. otherwise we will have huge inflation. >> somebody who really has a lot of real estate, and he's a friend of the show, he'll be on, but he -- his concern is real estate is really over valued at this point, and i don't know if you believe that. it would make sense, given how long we have been at zero, and

that would be one of the places you would look. i guess house ownership, and that kind of stuff i don't see, but are there pockets of -- will the economy start improving fast enough or will rates go up too quickly? >> that's a big question for the economy and how fast the thing donald wants to do. >> is it over valued, real estate? >> if rates skyrocket, yes, and it was 184 five days ago, 178, and the pace of the increase which will reflect views of how quickly he can bring stimulus forces to the economy, because the economy will keep up. if he keeps jobs, rents will rise, and that's more important than the interest rates, the direction of rent. >> rents on fifth avenue, here in manhattan? >> everywhere.

apartments, or office, you know, across the country, and -- that's a little disturbing. >> no, it's good. really good. >> it's important that rates go up slowly, moderately, and i think we don't know, we will see. i think some of the things are going to take time. a tax cut properly implemented, donald called the 20 trillion implement a disaster. i am in favor -- >> are the tax cuts the field of dreams, where if you build it they will have to -- >> no, no, they are totally separate. you would like to see donald spend on jobs and training, otherwise we will bring in chinese contractors to build the buildings and roads.

and maybe even the wall. >> i thought you knew something about building the wall. >> they have a great wall. >> that's what i thought you meant. barry is sticking around. when we come back, what can investors expect at the opening bell today? russ koesterich joins us after the break to talk about the next move. futures lost a little steam. the dow would open up by 43 points. we'll be right back. whether it's bringing cutting-edge wifi to 35,000 fans...

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been almost a week since donald trump was elected a president and investors are trying to position themselves of what is to come when he takes office. joining us to break that down is russ koesterich, and russ, the move that we have seen up in yields in the last week have been nothing short of stunning, and does the curb keep steepening and does the pace continue? >> i don't think the pace continues, but i think you will see the curb keep steepening.

and that trade is unwinding very, very fast right now, so it's going to continue because a lot of people position the wrong way for the outcome. >> stan tkrupben miller described it as a beach ball being held underwater, and the 10-year is going to go to three or four percent. >> probably not, and if you think about the policies we are likely to see in the trump administration, they all have a retphraeugs airy bend to them. wages were rising, and some of the stickier parts of core inflation, rent, medical cost, they were rising ahead of this, so this only adds fuel to the fire where you saw some evidence of retphraeugs starting to take hold in the u.s. >> looking forward to the feds meeting in december, we have seen a two-year almost at 1%,

and we have seen the dollar strengthening for the last week, but fed funds futures fell after the election, and there are still above 50%, but they did fall. i am wondering what part of the market we should look at as for december. >> the financials have been ripping and part of that is hopes for a lighter regulatory touch and a large part is what has happened on the regulatory curb, and staples and utilities, these are names that ran up on the first part of the year on the assumption the 10-year was going to be stuck at 1% forever, and if people expect rates to continue to climb, that's the part of the market where you see the most pain and multiple compression. >> russ, good to see you, russ koesterich from black rock joining us this morning. and joining us now on the

squawk news line. good to have you, mr. farage, but you were the lead campaigner for brexit, and you met with donald trump twice in the last two days, right. what did you talk about? >> we talked about the election campaign and being the outsiders, if you like, and pulling off the two remarkable victories, and brexit and trump getting elected, and 2016 has been quite revolutionary in these terms, and we were thinking about how he can create jobs and wealth, and i would just say to people that don't underestimate this guy. he's made a big, big success of his business career and intends to be a successful president and i think he will be. >> you saw the european union,

and they had to have a emergency meeting to grapple with the situation, and they said they need to teach donald trump about europe. what would you say to that? >> well, look, i think what one calls european union was the european union, and what i call europe, individual member states, germany, netherlands and so on. what trump believes in and what i believe in is nation state democracy, we should be controlling our own borders and making our own laws, and yes, trading with each other and being good neighbors. i am completely opposed to the eu form of government and i have a feeling that in 2017 there could be more quiet big shocks to come, and there are a whole series of elections coming up across europe and skeptical

parties on the rise absolutely everywhere. >> i just had some antidote annual evidence from people in germany about the situation there in terms of refugees and everything else. i don't know whether that attitude is accurately measured in polls either. we we assume merkel is fine, and could there be surprises with her? >> merkel had been a fantastic leader and without a doubt the most successful leader in europe until last year when she made the statement as many people that want to come may come, and over 1 million people settled there last year, and hardly any of them would have qualified for refugee status under any geneva

convention definition, and it was not just germany, they have gone through the rest of europe and there's deep resentment towards germany, and within germany -- i don't want to scare munger on this, but within germany, enormous social problems. if you let into a modern western country a large number of young males who come from a culture where women at very best are second-class citizens, you are storing up a huge problem. i suspect merkel will hang on, and i don't think it's germany that will provide the shot next year, but it may be france or italy. >> a press conference put out by your party, twice the bust of winston churchill was brought up, and you brought up the office was moved back into the oval office and why is that so important to you and the british people? >> if you think about the last

100 years, and what america and the uk have done together for liberty, democracy, freedom, you know, fighting off tyranny so that people can be free, churchill is an amazing symbol of that, and not just the fact he was the wartime leader in the uk, but his mother, of course, was an american, and in many ways he embodied that close relationship between the two countries, and sadly obama did not like the united kingdom very much and he was happier for us to be parcelled out and to be part of the european union, and maybe we were being cheeky to ask donald trump to do that but he took the idea. >> did you ask if the uk was still at the back of the queue? >> that's what obama told the british people, we would be at the back of the line, and it made people very, very angry.

>> you may be at the front now, first brexit and now trump, and it may be like a new alliance, and i saw somebody over the weekend saying we kind of speak the same language. >> yeah, with one or two minor differenc differences. we got a lot between us and we are big investors in each other's country, and we're the leaders in nato, and i think with trump as president we may get back to the days of the 1980s when there was an amazing relationship between ronny reagan and margaret thatcher and i hope we are headed back in that direction. >> you advised the president-elect during the campaign to drain the swap that, and now that he has been elected there's a delicate dance between making amends with the establishment and the

appointment with reince priebus was described as instead of draining the swamp, we just put in the head alligator. >> he has a balance to strike. he has to deliver. he's got to deliver on immigration, and he's got to deliver on, you know, promoting jobs, and these things he has to do, and he also has to try and find some way of bringing the republican party back together, because effectively, for the last few weeks of that campaign he was almost an independent candidate because all the hierarchy in the republican party ran for the hills and turned their backs on him, and i think what you will see and it's typical in my view of businessmen, ultimately they are pragmatic, and they know for the thing to work they have to have a team and that's why i think he made that appointment, and, look, you know, i have no doubt -- i have no doubt that

it's not easy to pacify a republican party that turned against him and to put in place radical policies. i get that, but i think this guy is capable of it. >> mr. farage, thank you so much for calling in, and hope you had a call back to the uk. >> you went running out of here. that was great. you go back 18 months and think about what he was trying to pull off, and that's a swamp that needed to be drained and this is the beginning of draining that swamp. how did the same thing -- the same things aren't happening -- >> because it was ruled by elites for 20 years. >> no, you have not seen the impact of england leaving the european union yet, right? >> sooner or later, it will be

horrible? >> no, nothing has happened. >> he's wrong about one thing, you will not have to wait until next year, and the italian elections are in december. >> how do you know the people in the uk will be feeling the same thing as the people here. attention: are you eligible for medicare? the medicare enrollment deadline is just a few weeks away. changes to medicare plans could impact your healthcare costs. are you getting all the benefits available to you? new plans are now available that could increase your benefits and lower how much you pay out of pocket.

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among the stories front and center, president obama holding a news conference today at 3:15 eastern time prior to his departure for an overseas trip, and he will be asked questions about the incoming trump administration and his meeting last week with the president-elect. >> he is going to greece. >> of all places. toyota is settling a class action lawsuit over truck rust for up to $3.4 billion owners of certain tundra and sequoia models sued over rust protection. "dr. strange" was the second consecutive weekend for the top marvel movie that took in $43 million in northern american ticket sales.

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the pillers of the trump economy, and jobs, taxes, health care, immigration and energy, and trade. right now we will focus on the future of obamacare. joining us is a family physician, a former u.s. senator, an old friend of the show. senator it's great to see you. you look well. >> it has, joe. good to see you. >> all through the campaign, you can find sound bites where trump said pre-existing conditions and kids on the plan, that was not -- "the wall street journal" thought they had a great scoop,

and he always said that. can you repeal the lion share of obamacare and still leave those things in that president-elect trump talked about or did he say we were going to leave it and work with it around the edges, what do you think? >> i think he can. a couple things that are not being applied in health care that we apply in every other area, it's market forces and transparency in markets, and people can't make great decisions because there's no transparency there, and if markets are going to work there has been personal responsibility. you can keep this, but you will have to do it in a way that allows the rest of the market to absorb some of the costs associated with that, and premarket principles are the way to do it, and it's not what they have done in the obama administration. right now we lost a lot of the art of medicine through the art of obamacare, and because everybody is never listening to

their patient and filling out a required mandatory screen. and we added a $12 billion hit to the health care industry with no benefit, no benefit for peoples' health. you can do those things, rich burr and i and orrin hatch had a plan and didn't get it out because the democrats wouldn't let us, and there's a way to do it. >> what would the mechanism be? would you repeal and replace, or modify? does the affordable care act stay in place and will it be in place in five years? >> i don't think so because there is nothing affordable to it, and it's an absolute disaster. most of the people that was brought in was brought in on medicaid and you lost a lot of people that can no longer afford

the premiums or deductibles. they used to have good insurance with a good response, and now they can't afford what they had before because of the price inflation and the cost shifting. the idea of the reforming health care in america is really important, but you have to do that in a way that actually puts the resources where there are needs and squeezes out. there are several studies that shows 6 to $8 billion spent in health care is wasted. >> senator, there are 13% or 14% of the people that voted made up their mind in the last two weeks of the election it sounded like, and ten days before they got their premium notices. do you think obama tilted the whole election in trump's victory, and in some states that could have been the final straw? soared of odd, isn't it? the thing that supposed to help

would be the end of the obama legacy probably. >> when something starts to hit your pocket book and somebody is responsible for it, it changes allegiances quickly especially if you are on a tight string where you don't have a lot of room. >> the pre-existing conditions, why would you buy it if you know you can get it if you are already sick? >> that's why it had not worked. >> so if you want to keep the ability to buy, even though you have pre-existing conditions, how do you solve that adverse selection? are there ideas? does it raise the penalties? what? >> you give people an opt-in time, and if you are not going to opt-in, it's not available to you after this period of time. and so if , in fact, you have a

pre-existing condition and you choose not to buy it, and one of the failures with obamacare, even if you did you didn't have to buy the insurance until you had a complication with your pre-existing illness, and you didn't have any intkepl tphau faction. >> i am not clear how you would fix it now when you say an apt-in. what does that feel like for a consumer? >> if you now have obamacare and have a pre-existing condition i would give you a period of time to reenroll in a new plan that was based on competitive market forces of us all, not just the sick people. the second thing i would do, if you failed to do that i would move a lot of it back to the states with high-risk pools where you can have a premium from insurance companies. one of the problems that we have is there is no instincttive for an insurance company to keep you

in the long term to be their patient, so they actually help you make great choices, and so that you don't have some of the calamitous end result in terms of health care, and so you have two good ways to do it, and one is personal responsibility, you have so sign up and pay your premiums and you have to be a participant, and the second is if you don't have the capability to do that, put you in a state high risk pool where we create a revenue screen for those in the pool of regular insurance and help paying for the high risk pool. the problem we have in health insurance is we never truly spread the risk, and it never has been an intkepl tphau tea policy. certainly have not had it in the plans for obamacare. >> do you think that that plan that you just laid out is enough to bring the insurance companies to the negotiating table because

they were part of the affordable care act and many of them backed out and created monopolies in certain regions and now they are threatening participation as a way to get a merger passed through the antitrust authorities and it seems like they have been once burned twice shy with federal health care. how do you get them back? >> first of all, i think it's part of donald trump's whole idea is sense when is the government responsible for making you successful? why don't we use real markets and let market forces work instead of, you know, we will buy into this president obama and help you do this only because it fattened their pocket book and then when the details came out they didn't get fattened, and they got stphaobgard. let's create a safety net -- >> what about buying across state lines? can that really happen, or the

vested interest in each state going to stop that? how do you break that? >> i think you have to allow the state insurance commissioners to participate in that, and you have licensing and all these other things, and i can buy my auto insurance across state lines and i can buy a lot of state insurance across state lines, and there are answers but i would leave you with the fact that you have to use market forces and allow market forces to allocate -- >> are you going to be part of the process? >> i have no idea. probably not. joe, i am really enjoying my retirement. >> that's what they all say. >> no, no, no. >> send me your phone number. they are going to feed need to you, senator. senator, you are in the heart land and we need you. >> see ya. before we head to break, let's check out the markets right now. futures are suggesting it's --

it's going to be a positive open. and oil right now, lower by 46 cents. and then look at this across the board. euro cost $1.07. sorry.

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we are whale watching this morning. kate joins us with more on the whales. >> trickling out with big names reporting already, and the sec reported on friday, and as usual the moves are all over the stock map so far, and i should emphasize these are through september 30th and may have changed in the intervening weeks. there are a few themes emerging that i think are interesting. long health care which could be seen as a pro trump trade well ahead of his presidential victory, and heyman capital, a smaller position but still 110,000 shares, and third point buying humana, and those are all

new positions in those cases. number two, the anti-restaurant trade with major names selling out of amid the restaurant recession. and a dissolving stake in mcdonald's. third point, decreasing its position by 2 million shares, and starboard dissolving a stake in darden foods. going to replace the entire board and good names on that name for them. number three, long technology. this is, of course, a trade that fl flux waits all the time. a new stake in apple in this case, 2.5 million shares, and a new stake in alibaba, and a new stake in hewlett-packard

enterprises. i don't know if that means they really like the names from a value perspective or there's an absence of new opportunities and ideas, and maybe they were going to the safe bets ahead of the election because these were so volatile. >> no word on how long those stocks will stay in? >> yeah, and it may be already. coming up on "squawk box," barry sternlicht on the real estate market. stay tuned for that. futures have come off slightly. the dow opened up by 23. we'll be right back. joining us to talk markets, the economy and the impact of donald trump's electoral victory. miller time starts tomorrow at 7:00 a.m. eastern on "squawk box."

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let's get back to our guest host, barry sternlicht. are your hotels doing great over there? >> the pound collapsed and we expect tourism to explode, and i am negative on the office market because i was talking to bank executives recently and they are going to move out. >> of the uk? >> of london. that can't be good for the office markets.

we keep waiting to see what is going to happen to the british economy, but so far it has been more competitive. the business in the regional manufacturers are doing better. and as the dollar increases to reflect the rise in interest rates, which seems very likely, we become less competitive. it will be a break on the economy. the markets are excited and have taken off, but i think the pace will be slower than people think. i expect the republicans to be in the house to look carefully at what they are doing and the additions to the deficit will take place, and also the same time, when you yell at the chinese, for example, if you make them feel bad who is going to buy our debt, so there will be supply and demand of the deficit dollar. >> looks like a lot of people selling our debt lately. >> yeah, look, inflation is good for real estate, really good for real estate and we have not seen it in 20 or 30 years.

one of the biggest beneficiaries -- >> i will stop you. when you say inflation is good, the counter is the inflation offsets it. tpeufp >> if a building cost more to build because of comma tease or labor, and rents can rise further before new supply shows up and higher interest rates will make the construction of the building more expensive, so in general, all existing assets should be worth more offset by maybe the rates rose too fast, and people have been sitting in real estate, anything with a world that has no yield, and i call it capital -- it's tourist, and they are just looking for a yield. i think what is so interesting, things like the bank markets, if he takes off, all of the deregulations on banks, they may

go back to lending. a whole series of new -- >> packages of commercial mortgages, maybe those are suspended, or reversed, and the whole system has been geared up for the new environment. >> okay. >> and you hear from jamie dimon there's a trillion dollars in capital not being used. >> we will see you at 8:00. >> i am staying until 8:30. >> half hour. more from barry coming up. meanwhile, deputy director, clay johnson, joins us to talk about the trump transition and more. and the future of pharma, and cutting red tape at the fda and planning to repeal and replace

obamacare. fred hassin joins us to discuss what investors should expect. we'll be right back. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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special guest, starwood capital's, barry sternlicht. the chief of staff and chief strategist. what is next? we will ask the man that helped lead george w. bush's transition. >> and the super moon, as the final hour of "squawk box" starts right now. ♪ ♪ >> welcome back to "squawk box" here on cnbc. i am getting old. i am joe koerner, and we have barry sternlicht. what is the starboard?

>> star wood. >> it's all about star wood. >> the futures in morning, they have been all over the place, and back up 45. they were up 100 and then up 10. >> and down at one point. >> yeah, and the nasdaq continues to go down. the nasdaq has been weird, because it is supposed to be cyclical. that's a little weird. you would think maybe the nasdaq stocks -- >> yeah, and what is the excuse for apple that only trades like 12 times? >> because they make a lot of stuff from china, obviously. >> i am thinking of the interest rate. >> and they can bring the money back. >> and the dollar after all of this, the dollar has been strengthening. we will see what finally happens. the higher court in the uk is

allowed to say you don't need parliament to allow a brexit. where are we on that right now? i saw that last week. it went to the higher court and they said the parliament had to vote. >> they did? >> yeah. it was a couple weeks ago. >> so there still needs to be a vote at this point. that's just emboldened the brexiteers, right? >> i don't think anybody thinks brexit is not going to happen. >> that's why we are at 120 and now 125 on the pound. samsung buying the u.s. based ought motive technology company for $8 in cash. it's the biggest acquisition for the south korean company, and haar man up 25%.

>> this is what i thought i saw. teresa has been given permission by the supreme court to appeal the ruling to give parliament a vote. >> so now we wait for that as well. >> how long does the appeal take, though? >> wow, i am impressed -- that is impressive. >> it's a slow week. >> i noticed the supreme court weighed in on something, and being a pwrebgs tear, i was hoping they would reverse it, but they did not reverse it and they will hear the appeal to not make parliament. you guys just said they okayed it? >> we were not wrong, we were just early. >> that's what people said about hillary clinton's election. >> she could also still lose the appeal. >> yeah, we don't know what this has done. the judge that granted the appeal in the lower court was a total remainor, a complete remainor, so --

>> you couldn't be impartial. >> no, wasn't. all right. back to corporate news. and tphau varietyice, novartis, the company has not done as well as expected. president-elect trump naming reince priebus has his white house chief of staff and the current rnc chairman on the "today" show earlier this morning. >> we had a great partnership, and i have learned to get to know president-elect trump and steve bannen and the whole team, and it has been a great partnership. he wants everybody to understand out there he wants to be a president for everybody, no matter your background or race or gender or faith, and he wants to do well for every american across the board. >> how many amens are there.

>> if you go to dublin, every third guy's name is aymen. >> really? >> donald trump spent the weekend, he gave this interview to "60 minutes" in which he laid out some of the thinking of how he is president-elect of how the administration is going to go and one of the points was on the whole issue of draining that swamp, and he seemed to acknowledge in the interview that he will need some of the lobbyist, particularly on the republican side to staff and get the job done. >> you said lobbyist own

politicians because they give them money and you admitted you used to do it yourself. >> when you say lobbyist, and special interests. >> you want to get rid of all that? >> i don't like it, no. >> your own transition team filled with lobbyist? >> the only people you have down there. everybody is a lobbyist down there. >> and then let's show you the two new titles he gave to campaign aides, reince priebus, chief of staff, and also steve bannon will be the chief strategist in the white house. those two jobs are a little bit of a more fuss. these jobs very much depend on the personalities of the people that hold them. what exactly their role will be, the amount of influence they have and which decisions will be entrusted to each man, that will be up to donald trump going forward, and we will see as this evolves what kind of role they

will play. and we are waiting on any announcement of cabinet secretaries, and now that the rnc position will be open, we will wait to see who gets the chairmanship of the national republican committee. >> thank you. let's get back to our guest host. barry sternlicht, we were talking last hour about inflation, raising costs for builders, and also making you able to raise rents as well. is that uniformly the case across the country? where do you think rents could soften? >> well, go into this, secondary cities like portland, denver, i don't -- they are not -- new york city, atlanta, sacramento, we have been buying in those markets where the markets are pretty strong. we will see how it all plays out. obviously deregulating the banks is good for new york city.

their cost structures have been bloated with regulatory infrastructure to handle what has gone on in washington, and that's good for jpmorgans and good for manhattan and san francisco and charlotte. >> it's not like dodd frank just goes away, they want to repeal and replace. >> personally, capitalism needs boundaries, and it's like a child growing up. >> why do things fail where you need boundaries? >> because failure can be very expensive and disruptive. and that's not -- >> that's why -- >> the guardrails are this tight and want to move them out to here, and canada doesn't have second mortgages on homes, and we had a collapse and they didn't. we are going to agree to disagree. this is really important to me.

my father had a manufacturing company, and it was based in connecticut, and he passed, but i worked in that factory when i was a kid. >> what did you make? >> disposable flashlights, and my job in the summer was to save the bulbs from the defective flashlights, and we had to move that country, and we needed to hit a price point and my father who was from europe and had to go to china and make that flashlight cheaper, and that was a free market, and we decided that walmart needed it and the consumer said i want that flashlight cheaper and we had all the world forces to lower prices, and those are the people that voted for donald, and if we put tariffs on imported goods, if that happens, everything in walmart goes up in price.

90% of what is made in walmart -- >> do profit margins go up? >> well, in the mall, as the price of a t-shirt rises because we decide to put imports on t-shirts made wherever they are made, we will see how people like that, because i think what people did not take into account, yeah, all the ability to restore manufacturing here will require we are not used to working for the wages of foreign countries, and there may not be jobs, right? there was a robot called pepper, and it's in automated restaurants. >> i have seen that. >> and it's going to serve you in a fast-food restaurant and it's going to take the human labor out if it gets too expensive. i am optimistic we can work through it, and it's going to be

exciting and fun, and you should be able to keep the talented people in the schools, and it's all going to be job training and we will have to train the workers for the jobs available, and yvonae ivanka said we shoul lot in, and to win over the youth and i think it's something he should re-examine his position on. joe and i don't agree on this, and -- >> keeping the environment clean and the water clean. >> are you good with that? >> yeah, i am just not co2 phobic. >> coal is not competitive with gas. >> the co2 aspects of coal, and -- >> the country would be so much better off --

>> wait -- we don't disagree on whether i like clean water. i want to move to flint. we disagree on this, and i want to move to flint. >> it's actually for the nation's interest to find renewable sources long term, because we won't rely on oil in the middle east -- >> or we could rely on domestic carbons -- >> it will run out. >> it's not running out. let's see how your jet goes on water or hydrogen bases or solar or something like that, and it may take you 15 hours in your solar-powered airplane to get to the beach front property in florida. >> and you have 20 minutes left. >> my dad had to shut down that manufacturing facility, and unless you intervene with tariffs you cannot easily restore manufacturing to the people that voted for donald.

it's going to be interesting to see if that tilted the election, if it was michigan or ohio, will you build factories to build what? will they build it with labor. >> what is the difference between the disposable flashlight -- >> at that point nobody cared about biodegradable. >> are you okay without subsidies? >> i'm okay. >> without that they don't work. >> solar will continue to drop and will be competitive. do you want to get off hydrocarbons -- >> natural gas is great. >> it's the big deflationairy force in what trump offered us. >> there's a lot of things in a transportation-driven economy that are never going to be -- at least for the next 30, 40, or 50 years it will still be hydro --

>> gas trucks will be better than oil trucks, true? it's all good. we don't dis >> we don't disagree on whether we want a clean environment. we would like a really filthy -- >> then we are good. >> 15 minutes left. >> i have to bring my battle gear. >> i just don't attribute every adverse weather event to a trace level of co2. coming up, president-elect trump -- your paris agreement will have trouble under trump. and trump naming a chief of staff and strategist. up next, clay johnson will join us next.

president-elect trump announcing his transition team and naming a chief of staff and chief strategist. clay johnson served as director over george w. bush's

transition. on one hand reince priebus and on the other hand, steve bannon. is that a good idea or set up for war? >> well, karl rove was the strategist, and they worked well and they would come together with the heads of the domestic policy advisers, and they would set policies and schedules and so forth and work together, and they went back to the respective offices and you have the chief of staff there to help and insure that the staff is successful serving the president of the united states, and that's a different role than the strategist, and it makes a lot of sense and probably generally organized that way. >> how do you read the decisions made thus far when it comes to those two individuals by the trump team?

>> i don't know the specific backgrounds of them. it strikes me to get somebody with good republican credentials as chief of staff and well known to all republican members, starting with all republican members of congress is a good idea, because a lot of what candidate trump talked about trying to get done will involve congress. and the president, as is our former government dictates, he can't do it to congress, but if he works real smart and real hard can do it with congress, so starting by somebody who has credibility with congress is a good idea. >> steve bannon seems to scare the day lights out of everybody. i assume he is there to keep everybody on their toes. >> i really don't know anything about his background so i can't comment about that. >> what would you do next if you were donald trump in terms of naming staff? >> well, the most time sensitive

and the most important thing that has to be accomplished in a transition is to prepare the president-elect to be a really good commander-in-chief, and head of the national security and homeland security apparatus, and the rest of the world knows our country is vulnerable leadership wise after a new administration comes in, and we have to be prepared -- our country has to be prepared to deal with any and all national security matters and any and all homeland security matters, which means the president needs his national security people and homeland security land security people in the white house, and working with other senior staff people, and he needs his senior

defense department, homeland security department and state department people in place, and briefed for the same reason, and that's probably the top -- i don't know, maybe 25 or 30 people in the white house, and in the cabinet, it's probably a similar number. maybe 30 or 40 or so. >> the crucial issue is that they have got to be ready to go in case of a crisis. >> yeah. >> when they have been picked, the president announces his intent to nominate but can't officially nominate anybody until he's the president, and it's a mad dash to rush them to the senate and get the hearings in anticipation of them being officially nominated and -- >> got it. >> it's 50 people total, homeland security, and national security focused and that's the

most important because it has to do with the security and safekeeping of our country and people. >> thank you. thank you for coming on. >> okay. coming up, the future of pharma in a trump administration. fred hassan will join the conversation coming right up.

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they had been in the green for much of the morning, and the nasdaq opened by 10 points and the dow would open up by 32, and the s&p up by one. >> always scares me when it says final thought. you are feeling okay? >> i think the economy was making a turn and was going to be strengthened after the election, and even the third quarter was not strong with the businesses, and so we have to be careful about overheating the economy, and if you create the jobs, and no doubt we will have infrastructure bills, and it will be huge pressure on existing wages, and we can't build enough homes because we don't have construction workers, so how are we going to build walls and ports unless -- and if we bring in foreign contractors to do it that would defeat the

whole purpose, wouldn't it? we have to train the under employed people, and that would be great for the economy and good for real estate and the nation. >> maybe we can export inflation? the world could use some. >> that's true. and if this works, you will see europe take a structural reform, and that would be fantastic. then you would be happy. if it works, if our economy takes off, europe will look at, look at labor reform and what free markets do. >> we can only hope. >> the dollar is going to get really strong, which will break the economy. >> they will bring in the puppies to deal with trump. >> you should start talking about the italian elections in december. that's the next crisis in a jar. you get to go to rome. >> beautiful. >> thank you. good having you here. coming up, generating

controversy. still, heading to north dakota to find out why, next.

♪ ♪

welcome back to "squawk box." here's what is making headlines at this hour. the rise in treasury yields once again happening this morning, but the 10-year and 30-year yields hitting their highest, and the 30-year crossing the 3% level for the first time since december. that's the 10-year expectations of more growth. duke energy will settle a lawsuit over the firing of its ceo. duke bought progress energy and agreed to give johnson the ceo job but was fired within hours of the closing leading in a suit. and anheuser-busch in a bid for coca-cola. wow. and that looking at different ways for the company to expand

following consolidation in the beer industry. >> they have been consolidating everything. >> how long would that name get? >> yeah. >> coke? >> no. >> come on. >> no. >> pork, i understand -- >> i signed off on bacon, not signing off on coca-cola. no, i am kidding. it's unbelievable. i was thinking about market -- >> it's fairly speculative, but it's a reputable news organization, so -- >> it's not an oxymoron. >> $170 million market cap. >> that would be a big gulp. come on and laugh with me. it was funny. >> i am trying. i like my own jokes.

and then let's move on to energy, and generating controversy and protest from environmental groups, and we are joined from cannonball, north dakota, with that story. >> reporter: good morning, kylah. we may have a decision as early as today. behind me the campground for the standing rock sioux tribe and others contesting the construction of this more than 1,000-mile pipeline that will bring crude to illinois where it will flow to the gulf coast. demonstrations have been peaceful at this campground but clashes with the police and the construction site up the road have gotten violent in the last six months. on one side you have native americans trying to protect sacred grounds from disturbance and environmental issues and on the other side energy transfer partners, and the company trying to complete the project.

they say it's pivotal for the transportation of the crude oil, and each side confident it will win this fight. energy transfer partner ceo kelsey warren telling nbc news he is 100% sure the pipeline will be approved by a trump administration, and standing rock sioux tribe saying the fight will go on even if the decision doesn't go their way. >> i think no matter what happens, the future has pipelines coming regardless because of the dependance on foss fo fossil fuels. >> reporter: this could be a fight that falls into the lap of the trump administration, which alleged to be pro business and that could impact projects like

this, guys. >> okay. kind of a surreal shot, isn't it? >> beautiful. looks so gorgeous behind you. the pink sky. >> reporter: it's beautiful here. >> we had this picture from last night, the super moon from where their location is, isn't that incredible, right where jackie is standing. >> don't you wish you could be out in the field more, joe? >> i do get out in the field, but just not on business. i don't want a camera crew with me. pharma stocks getting a lift in trump's first few days as president-elect, and joining us is fred hassen, and he is a former ceo, and let's talk with respect to if it had been a hillary clinton presidency versus a trump presidency, would we have seen more happening

right now in pharmaceuticals in the stocks than we have with trump? how should we -- where is andrew? how should we think about this in terms of trump getting elected? help us with this. >> joe, the pharmaceutical stocks and the vie atech stocks have been down 35% from the peak from the summer of last year and that happened before the elections, and now they have come up nicely since that time, so to some extent this concern about the obamacare issues and some of the price control issues was already getting priced into the stocks. the biggest issue that was developing was that because of the problems with obamacare and the health insurance premiums going up, people were concerned, are we going to go in the direction of single payer eventually, and what is happening because obamacare didn't work very well, we now have another fork in the road

which is to go in the direction of health savings accounts, so in that context people are now seeing an opportunity to see more innovation and more growth in the industry as opposed to a single payer system. >> so that is in -- in your mind, that's where we go, fred, we are headed that way to the health savings accounts? >> i think that's the best way of doing it, joe, because ultimately governments around the world don't have enough money to pay for health care, and nowadays consumer empowerment is the big word around the world, especially in asia and now it's coming to europe and it's here already, and people want to take charge of their own lives, and they want to manage their own affairs, and there's a big demand from employers to teach health literacy to the employees so they can live better and practice wellness prevention, and if you can do all of these

things and get people to take responsibility for their own health care, it's surprising how well people can live and how easily cost can be brought down, especially in very difficult and inexpensive areas like diabetes. there's a huge opportunity here. >> so what are we going to do with already -- we hear about the 20 million new additions to the insurance enrollment, but a lot is medicaid. what do you think happens with what we have seen? will all the people on medicaid going to stay on medicaid but we stop the explosion in medicaid? how is that going to work? >> i think that he is going to have to do a transition arrangement here. he cannot let people out there, especially very sick people, and he's already talked about that, and more importantly i think that what he is going to try and do is get people to see the future, which is them, which is their own power, and health savings accounts are the best

way to give people the power, and they are growing very fast in the corporate sector but they also need to start growing the individual market as well. there are very successful countries like singapore that use these very effectively, and we certainly need to go to health savings accounts in this country as well. >> so you would take people off of medicaid and transition them to health savings accounts? >> that might be one way of doing it, but it has to be done with great care because a lot of people are used to that safety net, and they are looking forward to being taken care of, especially those with chronic conditions, but i think ultimately you have to also give more accountability to those that generate a lot of the costs. if you go to any big population, small percentage of the population creates most of the costs, and if they can be given more health literacy and they are more involved in their own

health care, it's surprising how well you can improve the overall costs of that population. >> interesting. >> when we have time, and the new administration, you know, fixes immigration and takes care of isis and fixes our health care system, what a daunting system, and i am glad people want to hinder -- >> do you think you will be an adviser to the administration on any of the issues, fred? >> i am very well occupied, but if i can be of any help, i am a big believer in innovation and i think it's a fantastic time to be alive at this time with life sciences doing so well, and i am really a big, big cheerleader in that area. >> okay. tax reform. easy. >> appreciate it and good to see you. >> so instead of being stuck going only to doctors that take medicaid or medicare, you have a pile of cash and you can go to any doctor you want and it would

be incredibly liberating and powerful. and real estate and mogul, and donald trump friend, we will talk politics and the economy and much more, next. tomorrow on "squawk box," at 7:00 a.m., you will know what time it is. >> it's miller time. >> it's miller time. >> our guest host is bill miller and bill miller iv, and the economy and trump's electoral victory, and that's tomorrow at 7:00 a.m. eastern on "squawk box."

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welcome back to "squawk box." futures right now are continuing in the -- is it the trump rally? i don't -- you know. >> why wouldn't it be? >> because a lot of places are not really comfortable saying that, especially when it's the third all-time high and the best week last week since 2011, and it's just so against what we were told was going to be the affect of blowing out the deficit and trade wars. >> it's the growth rally. does that make you feel more comfortable? >> yeah, growth rally makes me more comfortable. here is the dollar, which also has gotten stronger, and is that good or bad? and we have to worry about obviously trade and it's impact. >> there are advisers in donald

trump's one more one that believe that. >> in king dollar? >> uh-huh. and then howard lorber, chairman of the douglas element and one of donald trump's closest friend for over 30 years. thank you for joining us. >> my pleasure. >> in the summer of 2015 before we came on the set, you said it's not an election and you said it's a revolution, and i laughed and thought you were just a friend of donald trump's. what did you see the rest of us did not? >> it's good to be right, so happy i was right, and when you say it's a revolution, people can take that different ways. nothing to do with a friend of donald's, because somebody could take that a different way. everybody is tired of washington and the politicians and tired of the clintons and was an outsider, is the outsider, and

that's what people wanted, and i had that feeling after seeing and speaking to people, that's what they wanted and that's why i called it a revolution. >> and there are questions of who is the predonald trump, and we had the pre-campaign donald trump, and now we have the president-elect trump. you have been a close friend of this through all of this, and what donald trump are we going to see in the white house? >> i think you will see a donald trump who is going to be very thoughtful, okay, much more thoughtful on what he says and positions he takes, and i think you will see a warm person, which he always has been, and there is so many stories i can tell you from phone calls from donald or melania and messages they have left me, and the whole family is fantastic, and it's an american family. >> you see him as the unifier we are starting to see, and have you seen that person throughout his whole life as opposed to the

campaign candidate, donald trump. >> a campaign is a campaign, okay. i can't say he didn't say what he felt at the time, but he is practical. obamacare, if people start to criticize him it doesn't make sense because he said he was going to get rid of obamacare, but why throw the baby out with the wash, and he's not ego-driven that way, and if it's two things but still obamacare and completedly gutted, that's fine. >> on his lifestyle, is he going to live part time in new york or go to public housing in washington, d.c. from his penthouse? that's going to be a tough shift for him? is he going to split his time? >> the campaign was a tough change for him. i think he will -- no, he will live in washington. there's no reason he can't come back to new york on some weekends if he wants to, and he loves new york and is a new yorker and loves --

>> loves his apartment. >> yeah, loves his apartment and life. so what? what does that mean? it doesn't mean anything. when he is back in new york he will work just as hard as when he is in washington, d.c. >> the real estate market. will he help the real estate market? especially in the top luxury end where you specialize, that has been weak. >> first of all, his tax plan is fantastic and his whole economic plan is fantastic, and at the end of the day what counts is you are putting money in peoples' pockets. if you put money in peoples' pockets, they have more spendable income they will buy real estate among other things they need, so there's not ca case --

>> well, what are they doing now? they will be sucking up to him, i guess? >> or hiding. >> what is the worst thing that happened to you with the stance you took? >> look, you know, you hear things. i don't have anything directly. i know that, you know, there are some things that have been on social media, you know, calling me names and things like that, but, you know -- >> "the huffington post," they had like eight words, massage northwest, racist, and disclaimer, this person is this. >> i actually had somebody write to me i was a massage northwest. i was not sure what it was so i googled it. and then i was more unhappy. >> you said you were supporting trump, and you didn't have -- >> bodyguards? >> you didn't have a lot of people giving you that look?

>> look, look, let's face it. a lot of people have a phoney element, okay? they are not going to say it to your face. did i hear things behind my back? of course. i say about friends, like when somebody says, oh, my friend is mad at me because i am voting this way, and i would say that means he's not your friend. if you can't have a difference on your politics and what you think is best for the country, it's not really a friend, simple as that. >> we heard him on "60 minutes" last night, and we are trying to see how close he will be with the traditional ideology. >> i think the revolution happened, and he's here, and he has the congress and the senate, fantastic, and he's going to push through what he thinks and his advisers think is right. as i said from the beginning, why i was comfortable with donald trump becoming president

is because i know he would have great people around him, and i think he is starting to prove that and you will see that going forward that he has the best people around him that will do the right thing and advise him the right way. >> howard, thank you for joining us. thank you for so early, one of the few people who's close to donald trump who actually would come on air and admit it and talk about it. thank you for that. >> it was very hard to find people. incredibly difficult. >> i was wondering why you asked me. you couldn't find anyone else. >> we would have a republican and democrat and both be anti-trump. it was incredible. >> we have a democrat and then bill crystal to argue -- or tony frato. >> i know. >> we had the never trump. there was no one. were you surprised when it finally happened? it was him against the world. >> he knew he was never unsure. every time i go to him say it's over, never. >> polls at 10% for that short period of time i was concerned. >> you have no faith in the media's ability to determine the outcome of an election at this point?

>> do you have any faith in the media? >> i don't have any faith in them, but to determine an outcome they certainly gave it their best shot. >> brexit tortured that. other instances. don't belittle momentum. it's a big thing. it was going in his direction. did he have enough time to get it there and obviously he did. >> thanks for joining us, howard. >> my pleasure. coming up, we'll check in at the nyse with jim cramer and the day's top stories. stay tuned. you're watching "squawk box" on cnbc. what powers the digital world. communication. that's why a cutting edge university counts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep

their dealer network streamlined and nimble. businesses count on communication, and communication counts on centurylink.

let's get down to the new york stock exchange where jim cramer joins us now. looks like it could be a continuation of what we saw last week. starting to think we're getting a little bit ahead of ourselves, jim? what would be our first clue? and what's going on with oil, do you think? is that -- everything else seems like a cyclical rebound and a rip roaring economy and oil keeps going down. >> well, i think that the november meeting's a failure. i think that iraq is pumping more than it has. iran's really starting to come online, the saudis never cut back. the russians are going full out. if you look at our rig count, we have come back, we're going to be ahead i think of where we were at this point next year or

so. you do have a flood. and you don't have anything other than china up about 6% in use. so this was just the november meeting's a bust. i think they'll try to say there's something they can pull out of the hat, but there was not a single one of these major countries pushback or is willing to make a freeze. so that i think is the most vulnerable area. the area that's still good i think is the banks. i mean, i know if you see interest rates continue to climb, you just buy the banks. i know it's a big etf people are buying. we got some downgrades but i would go back into that group in a second if it pulls back. >> nice yield curve. can you imagine? what if there was less regulation too. i mean, this might be a time for financial. >> regulation just had weight loss compliance. i know if you're a compliance person you got to be thinking do they still need me. i think the answer is under what trump wants to do there are fewer people involved with the day-to-day monitoring of what goes on. and if that's the case, then there's going to be big profits. >> jim, who was the best team in

the nfl? i mean -- >> dallas. >> i can't do college either. two, three and four all loss. >> yeah, alabama definitely and dallas is just -- >> philadelphia. >> we looked really, really good, but we got to get a quarterback who can find the end zone. this nfc east is where one of the wild cards going to come out. we go to seattle. i think tonight is a big game. i think giants crush bengals. >> so do i. >> sorry. >> that's your easiest pick of your career. >> well, it shouldn't be that way. giants aren't that good. they're good enough. >> a.j. mccarron. >> yeah. all right, buddy, thank you. >> thanks, see you in a few. and tomorrow on "squawk box," a special guest host, legendary investor bill miller will join us starting at 7:00 eastern.

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let's take one last -- well, there i go again. let's take for the day a final look at the markets up 65 now. so it's been all over the map. but it's kind of in the middle of where it's been, maybe a little above. but after last week pretty amazing to continue the rally going here. we were above 3% at one point on the 30-year.

up near 2.25 at one point on the 10-year, but yields are rising -- in a rising stock market, which is weird. there's the euro, which is now 1.07. that's going to help europe. but if we were worried at 1.10 about our exports, got to think that eventually now these corporate guys -- >> yeah. >> if you don't see the underlying domestic strength, they're going to start, you know, crying about currency fluctuations. >> pretty sure. >> watch "squawk box" tomorrow. for now "squawk on the street" is up next. ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer skb david faber at the new york stock exchange. we kick off an important week today. president-elect trump's transition builds steam. a lot of fed speak returns to the tape. we'll get enflags data, retail earnings, all headed our way. futures steady after the best week in years. europe is moderately positive. 10-year as you heard joe saying at 2.20 is n