live from new york where business never sleeps. this is squawk box. ♪ >> good morning everybody and welcome to "squawk box". we are live from the nasdaq market site at times square. at least it's going to be spring. can't believe we're going to lose an hour. >> seemed early, didn't it? >> yeah, but that's because it's cold out too. >> it was 70 two weeks ago and i like 70 better. >> me too. >> i don't even worry about why it happened. >> i don't care if it rains and it's 70. i'm betty quick. joining us for the hour right here onset is the chief market

analysis at lindsey group. we have a special event to tell you about coming up on wednesday. our guest host will be edavid tepor. he'll join us to talk about the fed, the market and where he's investing right now. let's get a check on the markets. u.s. equity futures. it is an up week for friday and the week the dow futures indicated down. the nasdaq down by close to 14. overnight in asia, let's see where the nikkei closed. stocks in china were a little higher. and in the early trade, you'll see that right now -- yeah, similar stories to what we're

seeing here. footse 100 down by 1/3 of a percent. >> is he going tobe here? >> you were talking to buffett. if you find someone who actually knows how tomanage money and is worth 2 and 20. i don't know what they're charging now but in previous appearances -- >> the teper rally and the tepor taper. >> and stan out of all the guys he watches. specifically mentioned teppers being the guy with the most guts. the biggest guts. >> bold calls. and he does. >> you're allowed to say bald in the air. while you went straight at it.

i can do it indirectly. i can say other things and allude to what i was saying earlier. dance around the topic. in his early days. but now the one guy does it. that will be great because i don't know what to think now. >> every time he's come on he's made some major call of a shifting paradigm. >> he's willing to take draw downs in order to have the big years. as opposed to i need to be up 5 or 10%. it worked tremendously. >> it's official. general motors is selling opal. wow, they still make those. to tsa group. tsa is the maker of peugeot and

citron. i remember they were cool for a while. they were modern looking, the citron cars, long ago. if you have one in good shape, it's pretty cool. the acquisition of opal propels it to second place behind volkswagen and the deal completes gm's exit from the continent. standard light is buying aberdeen in an all stock transaction. and that tie up will create one of the biggest fund managements in europe. deutsche bank announcing an $8.5 million capital increase. and telling cnbc it was the right time to bolster. and naming two co deputy ceo's to work along side crien. >> i am not weary of deutsche

bank. i'm 150% in. and i'm around to see this entire process through. >> bank will also undergo restructuring news. the lender will list a minority stake and the global markets and banking divisions. there is a fair amount of economic data that's going to be happening this week. factory orders are out at 10:00 eastern time. tomorrow we'll begin the small pay cheks small jobs index. and wednesday/thursday import prices and it is all topped off on friday with the monthly jobs report. >> yeah. 2:00 a.m., saturday. march 12th. >> we lose an hour. >> uh-huh. turn your claurk clocks forward. >> i was excited about spring

but i don't want to lose an hour. >> you thinkial a ia'll just ch the clock but it wears on us because of our schedule. i don't -- i like daylight savings but in the winter -- >> it's concerning because in the winter you don't want your kids standing in the dark waiting for the bus. >> for farmers, i think. >> there are some states -- >> indiana. only in part of the state, yeah. north korea firing four ballistic missiles this morning. they flew about 600 miles and landed in an area japan claims is an exclusive economic zone. it's unclear the type of missiles north korea fired. they fired four and -- if you

weren't listening closely, we're going to emphasize this. >> well, it is a big story. >> and we have had off the record conversations. >> the number one issue. >> and i'm even afraid to say why because i don't want -- not want that guy to know who i am, know what i mean? he'll sneak up on me with a tissue. >> right. i did hear additional analysis today that there had been so many provocations, that it's leading some to believe there could be problems. >> why china can't control him. >> and the idea they cut off funding for coal, i saw that's not true. wouldn't you? >> you mean china cutting off funding for north korea.

>> and china that the end of th day has to deal with it and i don't know why they can't. >> when you owe the bank $1,000 and a billion, that sort of scenario. >> totally unpredictable and young and sort of grew up. i mean his father wasn't necessarily the most squared away guy. >> no. does anyone there? >> i thought you meant anyone of us. >> compared to that i feel pretty squared away. >> it is a busy day in washington. got a lot coming up with the new immigration order and health details expected soon. wrapping up all of this in a quick 90 seconds. >> that's right, becky. we've got a big day legislatively ahead in washington and this is all a

bazar series of allegations and denials. here's where it all started with donald trump's tweet saturday morning. the president tweeted out. terrible! just found out that obama had had my wires tapped in trump tower just before the victory. nothing found. this is mccarthyism. he didn't offer up any evidence but the white house soon doubled down with a statement from press secretary. "president donald j. trump is requesting that as part of their investigation intorussian activity, the congressional committee exericize their oversight committee to find out when executive branch investigative powers were abused in 2016. neither the white house will

respond. that was met by a denial by the former president's office. they said a cardinal rule of the obama administration was that no white house official ever interfered with any independent investigation led by the department of justice. neitherer president obama nor any white house official ever ordered surveillance on any u.s. citizen. any suggestion otherwise is simply false. and the former director of national intelligence was on tv yesterday and denied what the president had tweeted was true. here's what he said. >> for the part of the national security apparatus that i saw as dni, there was no such wire tap activity mounted against the president, the president elect, or its campaign. >> so cnbc news is confirming that comey of the fbi has asked

the department of justice to issue a denial as well. the implication is that fbi would have had had to do something against the law if the president's tweet is correct. comey unhappy with that suggestion. so into monday morning, washington is abuzz with this story trying to figure out whether the department of justice will deny something the president said was simply a fact on saturday. and all those legislative items that you mention, health care, tax cuts and the rest pending in washington as well. >> it was surreal watching it. surreal watching comey. a good guy a bad guy, now he's a good guy again. >> he's had a roller coaster. the journal had a good piece, the lead editorial. they just sort of talk about maybe -- i don't know about the wire tapping. but the facts are that the

extent to which the obama administration did try to share raw intelligence, we saw in the new york times. and in january -- the month before -- right before they leave, they change it, lower the security classification so that anything the nsa found out they can share with all the other agencies just to spread all of the -- one of theert ine intere things from lindsey graham and schumer that it didn't happen. but if it did, then it's even worse. >> there's a way this could have been done legally, right? the president of the united states can't order that. but you can get a -- the department of justice can get a fiesau warrant from a secret intelligence court if they have probable cause to suspect

there's been wrong doing. if that happens, that would be potentially disastrous for donald trump. because it would indicate there was probable cause. >> the conspiracy theory is they started off by saying let's see if there's anything we can find there. so they narrowed the request to let's do it this way. let's say his campaign has been colluding with the russians and that's the scuttle but. i don't know. >> the president can clear this up very easily. he said that this was a fact. today he could come out and say how he knows that. was he involved in some private intelligence briefing where he knows this information? what is this information? that should be relatively straight forward. >> i think sean spicer is the key part, not that we're asking for the investigation, that we're not going to speak again.

the president will not, the white house will not until we see something additional. nobody else is going to comment on it. >> but the white house opened it up themselves on saturday. >> i think sean -- i think this is the white house's way of let's shut this down. >> they call them nondenial, denials and say that -- >> you have to look at the exact words people are using here. >> and i saw trump said that. >> look at that statement from the former president's office. what obama is denying here is that he ordered any surveillance. he's not denying any surveillance took place. so if there was legal surveillance involving the future president of the united states, that would have been done by the department of justice with a secret court order mandating it based on probable cause. the president of the united states would have had no

involvement in that. he might not have even known. there would be no reason for him to interfere. >> he might not have known if it did exist. >> so what he's denying is that he ordered it. >> we hear pelosi and others, we would never do this. what happened with flynn? that they weren't listening on him, they were listening to the counterpart? >> they were listening to the russian counterparts, who you would expect to have -- >> once again that's hard to put your finger on too. >> not really. >> director comey has a big question -- >> we don't know -- >> does director comey come out and flatly deny this today? >> you take the intelligence agencies at their word. >> the intelligence agency ever say we were monitoring russians and that's how they caught

flynn? >> there have been aggressive leaks of the fact that they routinely monitor russian officials in the united states. that's sort of accepted as standard. >> nothing would surprise me at this -- >> we're in strange territory. got to tell you. >> merkel. how long were we wire tapping her? and that's known. from people saying it could have been done. there are five or six instances and it did actually happen. >> technically did it really happen? legally and ethically did this happen? and is the president asserting something he knows to be true or making it up? >> and breitbart piece or -- >> right. where is the president getting his information. he has access to the entire

intelligen intelligence. >> just because it came from breitbart doesn't mean it's not true either. >> right. if you are the president of the united states, you can easily ask a question and get an answerer. all times day or night. >> there's conjecture to shine a light on the whole thing. >> i appreciate if he knows it's true. we're starting a wild goose chase, that will show publicly. >> why -- because the democrats, that's all they've got. is pounding this russian thing. >> the piece on twitter is a little bazar. >> there has been zero evidence of what they're looking for of the collusion between the campaign and the right. >> zero evidence of what he just tweeted unless we can find out that came from somewhere else.

i don't understand why you wouldn't ask the question and then go forward. >> explain what's true and release any information to back that up. >> ran into the news guy on the golf course, right? and said i know that this is true or you will see that when it comes out p. >> he can put it out. he doesn't have to wait. he's the president of the united states. if he's making the allegation, he candle classify it and put it out today. >> ammon, thank you. good to see you. when we come back, we'll have more of this morning's movers. plus a superhero surprise at the box office.

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welcome back to "squawk box." it is jobs week but washington will continue to be the focus as they look for more clues about regulatory reform.

dan clifton is head of policy research at research partners and our guest. markets indicated down today, guys and there's been some conjecture that sooner or later these distractions will start having people worry about the policy that the market has been depending on to keep going up. you think we're at a point where we're seeing that? >> i definitely think each week it gets more complicated. saturday was a very big deal np discussion previously i think missed the point. we're no longer talking about jeff sessions. the president is trying to say there's leaks happening from his administration. he's trying to get in front of that to focus on the agenda. this week health care, look at the new york times talking about all the regulations being

slashed and congress continues to work towards what that is dp going to be. energy deregulations, then health care, then tax reform. that's a pretty progress agenda and the market has been resilient because they see ahead of that despite all the political noise. >> today we're going to be talking about the new immigration order. probably forget about the tweets immediately. because they'll be back on the streets. which country is it? the saudi guys didn't even come from those countries. it's going to be all that again. >> they there are a lot of expectations that this is going to be lower regulation, and somehow do it without blowing up the budget. that's a rabbit out of the hat and by the way the markets are killing it right now but the

companies who are going to be hurst the worst are the large cap companies. that's a heck of disconnect going on unless you believe everything you have had hyped up is going to happen. >> this is like a broken record. how long you been saying this? >> about two months. >> you've been wrong for two months. >> i didn't say take your money and throw it in a bucket in the backyard -- >> you're certainly in the crowd and giving us consensus stuff. blah blah blah. >> but that's what it is. >> so the market's wrong and you're right. >> in the '90s the markets went up 25% every year because of hype. >> so you're just early. >> i'm just saying if you take some of the gains you've made and put it in something more realistic, small u.s. stocks. the whole america first thing going on, put that in the small

caps, real estate. none of us know what the trump administration is going to do and i know the wall street is where he made his money. i'm not saying sell everything but rotate into things more likely -- >> danx i want to ask a question about tax reform. the controversial border adjustment tax. how does that get through the senate? >> so you have the house where i don't even think paul ryan has the votes in the house. if the president endorsed a tax system, it will be easier to get through the house. in the senate there may be 10 or 15 republican votes and so if you have a bill where the republicans are able to pass a tax reform bill and they're not, their back is against the wall. >> it wouldn't come in for five or six years. we did that with the cadillac

tax. the trump administration is moving to a third way on border adjustment where they're looking at a resip ruical tax where if a company no longer taxes u.s. exports, we won't tax their imports. we're trying to figure out if there's a way to do that and that's what is going to take some time. but i don't think pure system is what we'll get signed into law. >> those other plans happen or we're looking at 25 instead. >> so i'm very out of consensus on this, peter. i believe we can get a good progrowth tax reform without a border adjustable tax system. the dirty secret is sh of that border adjustable money will be used to finance individual tax reform. you can seg reigate corporate, you can get a couple years of 100% expensing and i think that would be very good. >> okay. we're done. thank you. stick around.

or please stick around. you're scheduled to stick around, i'm trying to tell you. so if you want to stay, you're welcome to but we can't force you. are you a contributor? >> yes. >> oh, yeah. stick around. i can't afford you. you're mine. do i have to stay? i guess i do too. it's jobs week in america. we have a special report about employing people with autism. and as we head to break and a look at last week's s&p 500 winners and losers.

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what's dirty about this? >> i don't know. i know the lyrics. harry smith is here. >> when we'd listen to that in high school -- >> you had had to lock the door on your room. i've listened to it a lot. do you know what they're talking about? i'm going to google it. >> would you tweet us the answer? >> no i'm going to google because it's really dirty right now. like, i'm embarrassed. are you embarrassed?

>> animal house is all we theng of it. is this the dirtiest song from the '60s? from the new yorker. this is when everybody heard the obscene not the -- and i have to dig. >> we may or may not report back. if we do, it will be becky because she has been walking on the wild side. there is minus -- down 44. >> mistake. >> wassant a mistake, it was brave. you're breaking new boundaries, new frontiers. >> continuing to remind people. >> we've got a couple of stocks to watch. nearing with mantle ridge to instal harrison. that was -- yeah. it's funny we're bringing it up. maybe off camera. filing a perspects on friday for the right to sell millions of

shares of chipotle. it doesn't have immediate plans to divest the shares but it reserves a right to do so. and amazon and repsol are planning a deal. customers will be able to receive deliveries at nearly 4,000 stations across spain and portugal. it will be rolled out in the next couple of months. >> so a father of a teen age girl spoking to the attorney general to write about the -- it's a war shack test. all these laboratory examinations deemed inconclusive. nobody could figure out what he was singing. >> i left my phones in the other room, otherwise i would be -- >> dirty harry wants to know

about it. i've been watching again, all of them. >> he's great. >> he's getting old and i want him to live to like 400 if he can because he's so cool. >> even at&t a couple weeks ago and then he came on. >> you saw him with nance and he's just still -- becky's having a really tough time with that. >> an update on a story that touched so many of our viewers. a father opened a car wash and says people with autism can get oo job, including his own son. >> reporter: business is good at the rising tide car wash in parkland, florida. how good? really good says owner. >> we went from 40,000 car as year when we bought it to

160,000. that's a quadruple inside of three years. you can't do that without a great staff. >> reporter: a staff primarily comprised of people on the autism spectrum, including his son, andrew. they pay metackulous attention to detail. >> their attitude is strong and nothing can beat that. >> reporter: what some have called his folly, has turned into a scaleable business. a second rising tide car wash is under construction. they have received more than 700 job applications. did you set out to be the johnny appleseed of autism employment? >> no. i set out to help my son and others like him have a life. >> he and his other son, tom are spreading the news with lectures and seminars and even testimony at the u.n.

managing this is not easy. the learning curve is constant. >> we want to reinforce positive behavior over the course of the day. >> reporter: the rewards can't begin to be measurered. the guys that car wash even hangout together on friday nights. andrew is a new man. >> he's motivated and motivation is something andrew never had but it's key to a life, right? >> reporter: and you know what they say about a rising tide. it lifts all boats. >> harry smith is with us this morning. this is an amazing story when you brought it to us three years ago. what prompted you to go back? >> we were just checking in because it looked like it had so much promise. they're opening a second one. he's starting to raise money to do a third. they're clekting data on every single thing they do and other

people who think maybe there's a cross over here. what have you done in the last three years that may be applicable to our business? and there's a couple hundred thousand young people every year diagnosed and put someplace on the autism spectrum. what happens when they reach 21 or 22? >> in new jersey for boys it's one out of 50 or 60. >> several hundred thousand a year. >> it equates to more than that i think. and you add to that cumatively every year, that's millions. we have to figure out college because they're smart. >> some. many who are closer to the aspergerer syndrome have gone into high tech. maybe college isn't the answer for them. what's really interesting the guy's done this with zero

government money. pays them minimum wage and kids are making $11 an hour. he says the only atrition i have is people who move on to other jobs. he's had guys who have gotten driver's license. the first time they said we're all getting together, they would go to dave and busters, everybody was like who said rr going to wash or whatever? they're becoming self sufficient and nthey have a community together, which in the end of the day, for their parents, this is a mazing. >> you want -- it's nice that they're together and socializing together. sometimes you want to mainstream kids like this and that may or may not be the right thing. sometimes it's better if they're with guys or gals that there similar and socialization is so important. >> and the other part of this is there's a standard there. you're going to come there. you're going to have to be able to do this work, right? there's very little wiggle room

in their process. they're very intentional. as we spent the day with them over and over again this is not a thing. i'm going to start a business and hire these people in the spectrum. if you're going to do this, you've got to really have in your mind i have to figure out how to accommodate -- >> it covers the whole range? low functioning up to -- >> it's not a guy who's typically going to come up to you and say how are you? his abilities have increased. >> everyone to maximize their potential and it's the numbers -- >> it's huge. >> good story. >> harry, thank you so much. good to see you. come back soon. >> we'll get a live report from bejing next and also it's jobs week in america and daylight savings. we're going to lose an hour.

spring forward is the way to remember it, right? >> gain sun lite. >> exactly. and hedge fund manager, david tepor will guest host "squawk box" on wednesday. it's an interview i wouldn't miss if i were you, 7:30 a.m. oh, not so fast,arl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less tha. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry i bet they're calling about thschwab news. schwab. a modern approach to weal.

welcome back to "squawk box". a national people congress is underway. a new target for economic growth. hate units. >> this is the time of year where law makers gather in bejing to map out the country's economic agenda for the year and looming over it all is the trump administration. over the weekend i got a chance to speak with the vice finance minister and he told me that the biggest source of uncertainty for china this year is u.s. policy. >> internationally, a big challenge. so i see uncertainty for the

trump administration economic policy. that's what will happen and impact on the global economy. second is certainly federal reserve. how best make decisions. >> i also specifically asked the vice finance minister if bejing is concerned about being labelled a currency manipulate e manipulateer. >> we should face reality and u.s. treasury has three conditions. we have the our gentleman we keep close communications. >> the vice finance minister also told me that the february phone call between president's trump and xi was very well received among china's leaders who hope it will lead to a stronger relationship. even though he said bejing does want and need to have better

communications with the trump white house and in fact off camera he asked me if president trump watches cnbc. joe? >> yes. he does. i can confirm that unequivocally. thank you. eunice, not too bad a delay. >> no. we've had worse delays from new jersey. anyway, thank you. when we come back. shopping by screen shot. new app lets you grab products and find out where to buy them. fashion meets technology next. a quick check of what's happening in european markets right now. looks like things are under a little bit of pressure in europe. germany is down as is the ftse and.

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from the moment i arrived in this country i've been an entrepreneur. i've invested in hundreds of successful companies. i'm being pulled in every possible direction. i think i need another me. my search for the partner starts now. one million global brands level rewards style and try to drive online sales. joining us to talk about the power of digical influence, rewards style founder and ceo. >> thank you for having me. . >> explain what this is.

rewards style. with a group of influence. >> we are launching the like to know it app and it allows consumers to shop their screen shots from theirdevice. like to know existed as consumer service to date that's been very specific social platforming, instagram. what we've done with screen shot technology is elevated out of any specific discovery platform and allowed consumers to shop their screen shots anywhere across mobile web. >> i see something i like somebody tweets, i say how do i find this and it's going to tell me through some algorithm? >> essentially. we have 12,000 influencers who use rewards style and social tools. those influencers are creating -- they already create a million pieces of content for publishing platform, thousands of pieces of unique content per day. with that content they connect the dots with consumers. they let us know technology

platform exactly what products they feature in the images, whether at home or nursery or outfit they are wearing. we then track that content. when you as a consumer have the app, take you a screen shot of that content, we actually give you a push notification that tells you all the products in that picture as told to us by the editors themselves. >> you're only as good as the network built by these? >> yes. >> you created a link to those websites? >> exactly. the network is a really big piece of this. this is something we launched rewards style in 2011 as a solution for my own -- to monetize my own blog. i was a personal shopper before offline. i got paid a commission on sales just like you go into any department store, a salesperson gets paid a commission. that's what i did. i start add website to document those services thinking i was marketing myself offline. really my customers just started going to my blog and shopping there, so i cut myself out of my own business and we launched rewards style to be the solution to that. how did i move old school

business online that's how we created rewards style. what started with me and my piers using this tool and a couple of retailers, today it's 4,000 retailers worldwide we recruited worldwide. everyone from gucci to gap. >> how do you get paid? >> as an influencer, a couple of ways. one is a salesperson. i'm showing you all sorts of content, show you how to style an outfit, living room, if you buy those products i'm paid a commission on the products. >> by the retailer. >> by the retailer. >> reward style we created these networks. we recruited these brands 4,000 worldwide, negotiated with them, educated them on the value of influencers. when we started rewards style in 2011 blogger was a pejorative term. no one thinking of using influencers as a marketing tool. today the highest growth channel. so we started out in 2012 with our first full year in business

we drove $50 million in retail sales. this year we'll drive over $1 billion in retail sales for our partners. we've come 5 to 13% of their overall traffic, some of the largest retail brands in the world. this channel has become important for them. >> they pay the bloggers or stylists or influencers. then how do you get paid? >> we negotiate all these relationships and we've educated and on boarded all these retailers. we've had over 100,000 applications from influencers, we've accepted 12,000 of those and really invest in those influencers. >> not everybody gets to be an influencers. >> absolutely not. >> a whole set of criteria. >> i would say it's hard to become a reward style influencer but we plug in and provide consulting, education. people who enter our platform, we look at classes of influencers. year by year. we look at the class that came in 2012 and all the tools we've created to this point, class of 2016 was actually four times as

productive as the class of 2012. what that means for us is they are actually driving four times as many sales for retail partners as they were back then. that's in large part due to tools we launched in 2014. like to know it is a tool to help retailers connect with consumers inside of closed mobile platforms. it's now 20% of the sales we're driving to these brands. >> you get a cut from commissions to commissions you pay out to influencers. >> the cool piece and part of why we've been ecosystem is win. driving retailers. retailers only paying only really with house money. they now have thousands of influencers who are sales people essentially driving sales to their platform and only paying when it works. from a consumer perspective you've never had more choice or control. you are actually seeing i mentioned a million pieces of content just in the social web that's available for you to shop

today. >> do you guys make money as a company? >> we do. that's the end of the ecosystem we actually only get paid when that circle is complete mplgt when you as a kurm find something you like and make a purchase. >> what's your ultimate goal, ipo in the work like we saw with s.n.a.p.? do you think somebody will buy you some of it's very early in the influence game to be there. we've been so focused on growing this company. we boot strapped, started 2011, 2013, took series a round of funding. we've really been able to fund based on our growth since that point. for us we now have six offices. in the last 18 months we opened four new offices, doubled our team, acquired a company that actually enabled us to power this technology that we're launching today. we are on our second child and still growing the team. we think it's very early in this industry so i think we're

focusing on being an infinite player. >> thank you. >> what about friday's number? because them not to raise? >> the fed is raising. i don't care what that number is. it's going to get revised next month and in a year. if they are going to change policy on this one number it's ridiculous. >> ridiculous for -- >> absolutely right. now with the rate hike odds at 90%. >> so they have got it ready. >> yeah. >> the second hike in ten years. crazy. >> third. >> third. >> third in ten years. they have done two. so far they have done two in ten years. they are crazy. they are wild. >> out of control. >> anything at any time. you just don't know. they are out of control. thanks. >> whole new world. >> thanks. quarter points, too. so a half point. coming up markets pulling back this morning. we'll talk strategy after the break.

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could the jobs report derail a rate hike. we'll look at the markets and where you should put your money to work. >> the latest on washington claims that former president obama wiretapped trump tower. plus trump's ties to russia heat up on twitter. ambassador nick burns joins us on his thoughts. >> quantum leap for ibm. the company unveiling a new computer that could reshape the world of business as the second hour of "squawk box" begins right now. >> announcer: live from the beating heart of business, new york city, this is "squawk box." good morning and welcome back to squawks here on cnbc.

live from nasdaq market site in times square. i'm joe kernen with becky quick. will fred frost will be joining us short ly. he'll bring his lanky frame over here and try to get the cameras from here -- i don't know how they do that with us. >> drop his chair down. >> that's a good idea. >> i look like i'm your height. this is all tv magic. >> futures this hour, we can't do anything about this. we could but it would be unethical, down 30%, down 11 on nasdaq indicated down 6.5 on the s&p. europe wasn't awful, down across the board. we've had pretty big gains. there may come a day where proof is in the pudding for a lot of these things. this might be an important week

for that in terms of legislation someday they might get started on, obama care. >> when we see a tax plan, too. a lot of people watching. here are headlines, economic data this week. factory orders comes out at 10xz a.m. eastern point. tomorrow paycheck ihs small business jobs index. on wednesday february adp employment report, revised productivity and labor cost. on thursday we'll be getting february import prices. then it is all topped off with the big number on friday, that's the monthly jobs report. general motors selling opel will for $2.3 million, maker of peuge

peugeot. jim cramer has been talking about this, thought it's a great move for general motors. set to release long awaited bills to reduce and repeal obama care. a draft by nbc would gut most of the current law over the next few years. it would provide expanded tax credits, cuts federal spending on medicaid and get rid of individual mandate for employers to provide employee health insurance. >> i don't know. conservatives don't want to do that. >> they do not. >> they do not want to do -- call them subsidies now, call them tax credits. calling it obama care light. you've heard you can never take back an entitlement. that's europe's problem. i think the democrats and obama knew this eight years ago. i don't know how it works out. deutsche bank announcing $8.5 million increase shares dropping on the news. ceo john cryan telling cnbc it

was the right time to go to the market. >> we were listening to some feedback from the market where there was still concerns which were to some extent shared by our clients and counter-parts that we still didn't have enough capital. >> deutsche bank also announcing changes to its executive team naming two co-deputy ceos to work alongside cryan. the bank will undergo restructuring moves in order to turn its business around. the lender minority stake in asset business and unite its corporate finance, global markets and banking divisions between scrapping sale of postbank unit and instead integrate that into its german retail group. >> so stocks go up, csx nearing a deal with hedge fund manager mantel ridge to install harrison, a railroad executive

as the new ceo. the deal could be announced as early as next week. pershing square filing per suspect us friday for the right to share millions of shares of chipotle. doesn't have immediate fans to divest shares but reserving the right to do so. amazon and repsol reaching a deal to pick up packages at filling stations. pick up at 4,000 repsol stations across spain and portugal. that service will be rolled out over the next few months. barron's calling snap share price overvalued. even with the potential for strong growth, hard to justify more than half the stock price. shares of snap since going public have done well. >> more than half, so they think it's not $14 stock even though it rolled out ipo at $1. >> that's scary. dow posing fourth positive week in a row. futures pointing to lower opening. joining us now, chairman and

found eer of the company. also a cnbc contributor. lou, you've been steadfastly bullish, even though macrocenrr not your thing. i don't know if you looked askance, you're going with it. >> there are. earnings are getting progressively stronger as the year goes on. the only thing that will derail the market is if we don't get corporate tax reform through. we are anticipating and analysts estimating it on earnings. >> you're not waking up every morning thinking it's going to be the start of a 10% correction. that's what you're thinking. >> not march and april. march and april are the two

seasonally strong months. a lot-of-pension closing. it's unlikely to happen. this week we tread water because we're waiting for retail sales and payroll and things like that. >> karen, you have been steadfastly bullish as well. trying to find people like this, they are not easy to find. as far as why, karen, that might be a little bit different, you think this was bound to happen anyway and growth already picking up around the world and companies already doing well so you ascribe less of the reason to the new administration? >> well, there's a combination. we've been bullish for the last couple of years at least because we saw the economy picking up in general. you saw unemployment come down, lots of people are at work. wages were going up, personal spending improving, housing market has been good. so there are a lot of reasons to stay bullish, plus the alternatives, very, very low interest rates. so now you're starting to see

some signs that there could be a tax cut, there could be reform. the market is very enthusiastic about that. so we're remaining in the market. we have to be watchful. the market has a double edged sword. deregulation sounds fantastic, but remember what happened with the airline industry and telecommunications when there was deregulation years ago. it has to be done carefully or else the participants don't really do that well. you can suffer from deregulation. like the tax cut idea. we also by the way see. we talked about this on the show, big endowments and pension plans that are putting more money into the market. they have been uninvested, underinvested for years now. they have missed the market. 5 billion here, 5 billion there adds up. that adds to demand and can drive the market higher. >> louie, got any new positions, anything you've sold. we like watching your individual stocks because you go all out for these things to triple in

three weeks. what have you got? >> well engineering firm in miami, utility, pipelines, for lack of a better word trump stock that earns money now, so we like mtz. ferrari showed up on radar, rece is the symbol on that. obviously now that they are public they have to sell more cars. so it's interesting, they are slowly building their production. of course the more profitable cars, they are trying to sell more of those now. finally we like stm, which is going to be a big supplier for the iphone 8. they make little microspeaker, so their technology is going to dominate a lot of mobile phones, the tablets. so stm is a great stock right now. >> when did you buy that thing. look at that thing, that's sick. did you buy it? were you in it for the last year? >> not last year. i've had it for the last few

months. ferrari is new, showed up a couple weeks ago, the other for about four months. >> what is going on there? you think that goes from 5 to 15, now from 15 to 30 on stm. >> again dominating speakers, big suppliers of iphone 8, a big hit, even though $1,000. >> so karen you worry about the fed or figure it's slow and steady and not derail anything. >> well, we expect the rate increase in march. by definition the people at the fed are pretty measured and careful about when they increase rates, so we think they will be a sensible and logical progression, which the market will be comfortable with. the market has at times been

very negative about rate increases. but with the growth we're seeing in the economy, the feds suggest they feel confident that the market can handle -- the economy can handle rate increases. so we feel positive about that. a little bit of inflation, a little bit of rate increases, that's fine for the economy. we like the stocks we own. you know, we've been adding to names in financials. we like some of the industrials. by the way, if we look at health care, which was one of the worst performing groups over the past 12 months for sure, there's places in health care we feel comfortable, whether boston scientific, thermofisher, names like health equity, health savings accounts. even you look at bristol-myers, which we owned after it fell last september is someplace we feel you can add to. >> okay. all right. thanks, karen. thanks louie nevelier. >> louie louie. >> i've read the lyrics,

nothing. >> depends what you hear. i read some that could be. >> not the lyrics. >> did you read the new york piece that lays out different combinations of lyrics. >> no, i didn't. new yorker, louie louie. >> thank you, louie. thank you, karen. guess who is here, folks? come on. come on out. show everybody how tall you are. show everybody how tall you are. >> pan the cameras higher. >> not my fault. >> watch your head, watch your head on the thing back there. yeah, watch your head. >> welcome, will. >> what did you eat growing up? >> predominantly doughnuts. >> and growth hormones. >> when i was little. >> doughnuts and growth hormones. >> great to be here, guys. sorry i'm a little late. >> that's all right. president trump taking on twittersphere.

could job concerns derail the rate hike. what is this music? >> dirty. this is like poor music. >> is it? >> no. i'm looking at louie louie trying to figure out why that's dirty. >> we'll get update from major economic policy conference in washington this morning. >> this is when they are hooking up. hi. >> ibm, computer that could reshape industries. we will speak to the man leading the charge to put the new computer in the hands of corporate america. stay tuned. you are watching "squawk box" on cnbc.

>> off the back of slight gains on friday. gains for the week as a whole the dow up shy of 1% for a week, s&p 0.7 and nasdaq half a percent this morning, as you can see down by about a third of 1% or 38 points on the dow. >> fbi reportedly asked justice department to publicly reject the claim that he was wiretapped by his predecessor. this is the latest around the probe in russia. joining us nicholas burns former united states ambassador to nato

and former under-secretary of state. he's now a professor at harvard's kennedy school of government. ambassador burns, thank you for joining us this morning. >> good morning. >> all right. good luck taking this and making any sense of it, because it's something that has most of our heads spinning from this weekend. what do you think? >> i think we've got to go back to first principles. donald trump is, i think, running the weakest policy towards russia in foreign policy terms than any president in 0 years. he has not reacted to russian interference in our elections. he's not behind an investigation. has he not reacted to russian invasion of crimea, annexation and invasion of eastern ukraine. he's had a very soft policy on that. in foreign policy terms that's a concern to republicans and congress as well as democrats. now you have allegations by president trump over the weekend that president obama ordered wiretapping of trump tower, which everybody in washington who knows something says is untrue. so we're in difficult, uncharted

waters here. >> the soft policy towards russia not any surprise given how he was campaigning. >> in 40 days. crimea is his fault, ambassador. really? >> no. you didn't get what i was saying. >> the previous add manage, how was their policy. >> you didn't get what i was saying. so you might just listen for a minute. >> okay. >> so the russians invade annexed crimea, eastern ukraine. the u.s. and europe put sanctions on russia and moved troops into eastern europe and president trump has talked about unraveling all that, release -- of lifting the sanctions and having a softer policy towards russia. if you're interested in foreign policy, russia is our most dangerous adversary in the world. you want to have a situation where the american president stands up to russia as angela merkel is doing and we're not

seeing that. you're seeing a pushback from senator mccain and graham and others. that's the issue at the heart of this. >> as you mentioned, that's how he was campaigning through all of this. watching from the outside, it seems he's going to have a much tougher time lifting sanctions simply because of the issues that have risen with russia since that time. would you agree with that? >> i think the real drama has baseball the republican party and republican pushback. now you have the situation over the weekend with this call from donald trump that there has been a tapping of his phones during the campaign. but if you read the press, the "times," fbi director doesn't agree with it, former director of national intelligence doesn't agree. these are among the most incendiary charges of made in the history of our country by one president against predecessors and i think they are destructive to our democracy. >> the white house has said

through sean spicer that they have asked for this investigation. the committees agreed to investigate. where do you think we head from here? >> i think in both house and senate you're going to see investigations of all these different charges. the charges by president trump over the weekend i think will be quickly cast aside because they don't appear to be true. they are not based on cnbc or "wall street journal," "new york times," they are based on breitbart and conservative talk show host alex jones. i think the source will be -- >> based on the "new york times," ambassador, based on the "new york times," the unprecedented sharing of harmful information and saving it, you saw that as well. so there's something somewhere that wasn't caused by -- the prior administration isn't totally without blame, is it? >> i think in this case it probably is. >> really? okay. >> i say that as someone who worked in both republican and democrat administrations. "the new york times" did not a little that president obama tapped dmpz phone.

>> i didn't say that. there's plenty there. >> don't mix apples and oranges. >> decides to lower security clrv classification for all this, much more widely dispersed to different agencies to give more people a chance to -- there hasn't been at this point any clear example of collusion between the campaign and russia. they are certainly going to look for it if they find it. >> the investigation is going to center on whether or not the trump campaign had ties to russia during the campaign. there's smoke. but you're right, there's no proof of that yet, so that's where the investigation has to go. the investigation also has to look at russian interference in our election and all the intelligence agencies believe that did happen. that's a threat to our democracy. now you have this additional charge by president trump, which is a wild charge because it's not grounded in fact. you would think he would have actually talked to the fbi or

justice department before he made those tweets on saturday morning, but his staff is not saying that he did that. so i think you have to worry about a president who cast these wild accusations that i think will be a threat to our democracy, the way people feel, the trust they have in their government or the former president. this is a serious time for america and it's certainly not a time for partisan chpshshiparti >> ambassador you said earlier russia was united states most dangerous opponent. i can see how that stands against some of america's allies, particularly those in europe. can you justify the claim they are most dangerous opponent to america? >> the chairman of the join chiefs, that's what a lot of people believe. look, they have invade crimea and annexed it and eastern ukraine. the united states is a european power through nato. we're involved in the security of that continent. so what the russians have done in europe is absolutely contrary to the vital interest of the united states.

if they have interfered in our elections and sought to change the direction of the election, that's something everyone should be concerned about. both policies people would say long range competition with china. next four or five years russia is the most dangerous adversary. >> we're watching north korea with four ballistic missiles that it fired into the sea of japan. that has plenty of people worried. how do we possibly contain north korea? >> difficult. i think this is probably a situation where we have got to work with china because china supplies the coal, energy to north korea. there's leverage there. the chinese have now shut off coal exports to north koreans because of the murder of the half brother of kim jong-un. these ballistic missile firings over the weekend are a great concern to japan and south korea. so i think you'll see the trump administration want to both work with japanese and south koreans but more importantly work with xi jinping and chinese, see if

we can get the chinese to be more tough minded. that's difficult because they have not been eager to do that in the past, but they may be nearing a level of frustration with the north that we can take advantage of. >> ambassador, thank you for your time this morning. >> thank you. when we come back. janet yellen signaling a rate hike coming later this month. could a weak jobs report derail that plan. we'll talk about that in a few minutes. programming note, founder david tepper will be joining us wednesday. where he's putting his money to work. that will be on "squawk box." stick around. we'll be right back.

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. coming up, ibm's quantum leap. the company unveiling a new computer that could help industries like drug discovery, cloud security and even artificial intelligence. we'll hear more about the first commercially available quantum computer in just a bit. looking at futures, they are called following gains, fourth week in a row gains, dow expected to open down 37 points on the dow. we're back in just a couple minutes.

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welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square new york. among stories front and center deutsche bank 8.5 billion capital, changes to executive team, shares are down sharply about 5.9% as you can see. that decline could perhaps have been bigger judging by futures moves over the weekend and 6% relative to expectation not too severe. fourth quarter earnings season almost officially in the book. 98%, 500 companies reported, 65% beat bottom line estimates. fourth quarter coming in around $0.05. big coin in focus. s.e.c. expected to rule on request to bring bitcoin to market. this could give investors another vehicle to capitalize on bitcoin craze. very similar to -- >> winkle vie back.

bitcoin certainly back. president's top trade adviser speaking at nabe conference in washington. steve liesman is there covering this. did you write this, unimportant meeting, writing your own intros. >> no, if i did i would say unimportant. >> it's actually pretty interesting, joe. peter navarro, president's top trade speaking in half an hour. knoll it closely. meantime come out nation's top economist saying monetary policy and fiscal policy right now are about right. they are expressing disagreements with what they expect to be the policies of the trump administration. i want to go through some of the survey. more than 200 business economists surveyed here, 78%

say the deficit will increase under president trump and 69% say, you know, what that's the wrong way to go. we should be reducing the deficit. how do they think they should do it? 51% say cutting entitlements is a good way to do it, 31% cut defense spending. of course disagreements on trade and immigration. 69% say you should only have barriers to trade occasionally and 49% say we should be increasing that migration, not decreasing it and only 5% say we should be using more hone to deport illegal immigrants. again, he will be speaking and he had an op-ed that was very strong about the dangers of trade deficit saying undermine defense spending capabilities as well as technology. here is a quote from "wall street journal" op-ed. the u.s. has begun to lose control of food supply chain and foreign firms are eager to purchase large swaths of silicon valley's treasures. peter navarro is urging the

economists to get behind the trump administration's efforts to reduce the trade deficit, which, of course, creates the huge capital account surplus on the other side, guys. >> steve, stick around. we're going to talk more about this plus the federal reserve with all these federal reserve officials including chair janet yellen heavily hinting a rate hike at the next meeting of the talk turns to second-guessing, third guessing and exactly when that rate hike will come. for more on that, fellow from the brookings institution. what do you think, is the march hike for real? >> the march hike is for real and it's going to keep going. the fed is racing to get to 1.5% interest rates so they can get out ahead of the next recession, out in front. they create wiggle room for when the economy slows down. the fed is in a tough spot. look, still room to run on labor market. slack employment and inflation

edging towards 2% but happened hit that yet. we've had years below that level. >> we've been waiting so long for this hike, aaron. we've been given hints in the past it has come and the fed has chosen not to do it. you think dead set happening? >> absolutely. there were false starts year after year after year. this is going to be the first non-december rate hike in about almost a decade, frankly. they have only done it twice, always in december. this is really the start of it. yellen gave a speech where she talked about 2014 kind of the inflection point in the grand arc. people start to get used to regular federate hikes all year starting now. >> steve, i want to ask you about your take on this change in sentiment from the fed. not that they are telegraphing ahead of the meeting. do you think there's a more meaningful change in tactics from the fed, coordinated two-week effort to start to move forward to many rate hikes this

year? >> well, you know, the only thing i could think all weekend was this notion that donald trump has bailed the fed out. coming forward with a very strong tax cutting proposal, strong infrastructure spending proposal, all this buoyed markets, interest rates, given the fed cover to do what you say, wilford, which is a dramatic change in policy. this notion of essentially back-to-back press conference to press conference in that regard is something people didn't think yellen wanted to do. what's happened is the bright light is shining on the fiscal policy side. the fed is essentially using what i'm calling the cover of darkness to really alter and change its policy to get a little more aggressive about raising rates. the key is that yellen speech on friday, very transparent about a march rate hike. look what the markets did, virtually nothing. the dow, not big on interest

rates. true, rates adjusted to it. really the fed finding a way to do this and not upset the markets in a big way. >> on top of that, aaron, we did see fourth straight week of gains for the dollar last week but only a quarter of a percent. in fact, the dollar slipped on friday. while we're seeing a bigger reaction to upside in the dollar given we are seeing this massive change in terms of rate hike expectations. >> the other thing that's moving the dollar around is this question about whether or not we're going to move to border adjustment tax. that would have mammoth implication on the dollar. over the week you see senate republicans are far more opposed to border adjustment tax than house republicans who are pushing it. the white house has ambiguity. interesting to see if navarro big proponent of border adjustment tax weighs into that in his speech. dollar buffeted by border adjustment tax on the one hand and fed moving on the other. >> okay, steve.

what's important about this rate hike? saying we're giving at this point, language around when the next rate hike is coming? >> i think that's something we're going to be watching for very carefully. also they will be putting out their forecast. we're still waiting, becky, for the federal reserve to internalize some of the fiscal policies that are coming. they have had this wait and see approach, which by the way at least on the near-term it might have been the right way to go. i'm hearing a lot of folks talk about tax cut issues being one for 2018 more than for 2017. this idea mnuchin told you, beck y, this idea it's not till august and maybe past that that the tax cut issue may not have stimulative effect since 2018. >> not backward looking. something that takes effect next year. >> right. that's critical. the fed may well have baseball right to not incorporate that into their current policies and to wait until sort of seeing the

whites of the eyes of fiscal stimulus. i think the fed is using this kind of notion here that it's got this opportunity, and so it's grabbing it. the conversations that we've had on "squawk box" set, why wouldn't they, i think the fed has seen the light in that regard? >> steve, i want to jump in on this point about fiscal stimulus. it would be wonderful if there was a large infrastructure. slack, labor, particularly men without college degrees. zero appetite among congressional republicans doing anything regarding infrastructure. meanwhile big defense buildup, $51 billion in year one, $500 billion, half a billion ten years sustained is going to come out of the president's budget. that's something where you're going to find republicans eager. unfortunately instead of doing wise infrastructure investment, this administration is really starting to move on fiscal kind of guns and butter. they want military buildup and cut taxes, which we've seen before, which will blow out the

deficit as the economists said. get to the point where equity markets acting one way and deficits another. >> steve, thank you. we'll see you later. >> ibm's quantum computer about to go commercial. a look how this powerful tool will reshape communities around the world. futures pointing lower, about 35 points lower on the dow following last week's percent of gains for the dow. this wednesday manager david tepper joins "squawk box" live. he's moved markets in the past. find out what he thinks of the trump rally and where markets are headed. 7:40 eastern time. "squawk box" will be right back.

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it's your trade. ♪ ♪ e*trade. ♪ ♪ start trading today at etrade.com classic computers solve classic problems but quantum answer questions about the world and uncover answers. joining us to discuss recent breakthroughs in quantum computers to discuss this, good morning to you. today ibm releasing first available quantum computer. quickly outline what a quantum

computer is. >> quantum computer is a system that works according to the laws of quantum mechanics. at its core, we have this unit of computation called cubit, short for quantum bit. what a quantum computer does is allow this bit in a manner so it actually can solve problems you couldn't do with classical system. >> what sort of problems are we talking about? things that develop new drugs or predict the movements of financial markets, for example? >> that's right. it is going to impact a whole variety of industries from farm ark, industry, materials, information problems for logistic, supply chain and finance. take materials as an example since you alluded to it. turns out you take a simple molecule like we probably all ingested this morning, caffeine. there's not enough computing power and memory in the world to be able to map out all the states of this molecule. to create a new material we have

to do this calculation efficiently. today we cannot do it well. that is something that is going to change with quantum computers. >> in terms of innovation ibm is doing, who do you see as biggest competitors. in the consumer space innovation has been behind likes of apple and samsung in recent years. we talk about the cloud space, the names we usually talk about here are amazon and microsoft. who are ibm's biggest competitors in this space and more broadly? >> well, what ibm is known for for over a century, we're the only company that has been able to adapt from transition and transition in computing is to really push the frontiers of information technology. what i would say right now is quantum computing is one of the most exciting new frontiers and there's very significant investments happening across venture capital community, governments, european union, u.s. i would say all the leading technology players are really pushing this. we're a clear leader in this space. last year as an example, we put

experimental quantum computer in the cloud. that was industry first. what we're announcing today is the path to make these commercially available to solve business and science problems. >> so you expect to take this in the corporate world. which kind of companies out there are you pitching a take up of quantum computing service. >> already to give you a complete example, we already have a collaboration to ibm research frontier's institute with companies like samsung and cannon and hitachi meltals with us that work collaboratively to explore computers. we think everyone an early adaptor of quantum computing to solve problems will be extremely interested in using quantum computers. >> there's a belief artificial intelligence is the future for a lot of tech companies. is that something quantum computer can help with. do you also believe a growth driver for tech companies? >> without a doubt. today artificial intelligence is

transforming how software is being created and the problems it can solve. quantum will impact artificial intelligence. behind the scenes learning a key enabler of it requires some problems that quantum computers are going to transform. >> right now everything, ai, all the progress we've made is digital, just binary bits. it hasn't been quantum at all. >> it has not been quantum at all. a nice contrast between ai and quantum is that in artificial intelligence we are able to learn patterns and extract insights from data we already have. since it's exploding, it's enormously useful. the thing with quantum, it allows us to explore potential solutions to problems where we don't have the data. the reason we don't have it, because the number of states and possibilities we would have to map is just impossible for a classical computer to do. >> it's very weird. i think artificial intelligence

exists now because a lot of guests come object that i think they are trying to say intelligent things and they are not. is that different? that's a different type of artificial intelligence. they make me think they are intelligent but when i look at it. >> fake intelligence. >> artificial intelligence. >> that's different. >> a lot of our guests made great progress on that. >> thank you. coming up -- >> so i've got an idea for you? >> what's that? >> if someone is being a complete arsenal, instead of global -- instead of royal a hole, which i used to use, why don't you say a bunch of arsenal. if you swallow the word -- >> you are such a complete arsenal. >> main lesson last week you can wait and tell someone they are an arsenal the next day.

>> when he says it, it really sounds like it. >> i thought you said it. whoa. coming up stocks to watch at the opening of trade this morning. check out the future. we'll be right back. the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc.

stocks to watch today, csx nearing a deal with activist hedge fund mantel ridge to

install hunter harrison, railroad exec. the new deal could be announced as early as this week. that was the guy bill ackman wanted to install at canadian pacific. >> i think he did. >> i think he did finally. >> pershing square filing perspectus. it reserves the right to do so. amazon and repsol a deal to pick up packages at repsol filling stations. customers will be able to receive deliveries at nearly 4,000 repsol stations across spain and portugal. that service over the next few months. >> barron's saying xerox shares look cheap following spinoff of its processing business. article citing portfolio manager who estimates xerox shares could double. barron calling snap's share

price overvalued. even with the potential for strong growth, it's hard to justify more than half the stock price, rising 11% day two, 42% day one, huge volume more than double, almost double the second biggest stock by friday, which is bank of america. samsung bioepis for best selling drug called humira. it is 60% of sales for the quarter this morning. in sports, first tournament as number one golfer dustin johnson gave every indication he plans to stay on top for a while. in the final round of wgc mexico championship yesterday johnson held off all challengers with a tough shot out of the bunker on the 18th hole. if you watch that shot, maybe we can show you. then tapped in for part of the victory. he's won five times on the pga tour over his last 15 starts dating back to u.s. open last

summer. this was the first week i think he was number one. okay. here you go. how smooth. he hit the ball, over that tree. >> only 110 yards. you couldn't tell that the lie -- his feet were way above the ball and couldn't stand in the bunker. he was standing on the grass outside the bunker and on an incline. you can screw that up so easily. >> long arms. >> only hit a one-stroke lead. that thing went over. he's got a great -- >> you talk about golf, you like it almost as much as soccer. >> almost as much as soccer. i don't follow arsenals? >> arsenal. >> i watched the whole tournament. what a beautiful course outside of mexico city, great fans of it was fun to watch and a great leaderboard. phil couldn't drive the ball so didn't hit any greens in regulation but hung in there.

only a couple strokes back when all was said and done. rory there. fun to watch, it was good. >> let me tell you something else people found fun to watch. x man "logan" stars hugh jackman as wolverine. brought in $85 billion in its debut. jackman said this would be his last turn as wolverine after playing the role 17 years. universal horror movie "get out" second place, $26 million. real quickly i have to show you this, if you guys can come in. i stole his phone from him. he has a picture as wolverine. real close. >> this was my best costume ever. >> halloween. >> halloween a few years back. >> this one? >> he's got a love hate -- >> wolverine. >> anyway, managing. >> there we go. >> is that actually hugh

jackman. >> no. >> you do look like him. specially made. >> i stole his phone. >> there we go. >> you think winger should stay the manager of arse holes? >> arsenal. >> as much as i adore he's like a family member he's been there so long, i think it's time to go. but i'd like to see him go -- >> someone asked me to say that. >> that's a tough thing for you to say because you're so polite. for you to say, like a screaming new york fan. >> with as much grace as possible. >> his name is arsen and the team is arsenal. >> arsen. >> is the team named after him? >> no but he's been there long. >> he's french. >> french german, speaks six languages fluently as well as japanese. a smart man, very smart man.

>> someone just said does arsenio hall have anything to do with arsenal. >> i very much doubt it. >> do you remember armand hammer bought armand hammer. so arsenio hall should at least be an arsenal fan. >> it's almost like you should work on "morning joe." >> the sore spot. >> this is 20 years old. that other -- you know. alpha seems more elusive today. is it because so many go after it the same way? chasing after short term returns. instead if getting caught up with the crowd, the investment managers at pgim take a long term view, teaming specialized active investing with risk-management rigor, to seek out global opportunities. we manage over a trillion dollars this way, attracting many of the world's leading investors. partner with pgim. the global investment management businesses of prudential

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new this morning shares of deutsche bank under pressure after announcing billion and a half rate plan. >> republicans set to unveil health care plan this week. we'll talk to congressman patrick mchenry coming up. >> world tennis day. pros venus williams and andy roddick will hit the court to promote the game on the world stage and the final hour of "squawk box" gibbs right now. ♪ >> announcer: live from the most powerful city in the world, new york. this is "squawk box." good morning and welcome

back to "squawk box" on cnbc, live from nasdaq market site in times square. joe kernen with becky quick and wilford frost. futures down over 40. looked a little better down 35 right now on the dow jones down seven and change on the s&p and down 14 on the nasdaq. treasury yields have been under control this morning moderating a little. i think they are down as you can see 2.47 in the ten-year. >> headlines deutsche bank announcing $8.5 billion capital increasish, changes to its executive team and restructuring efforts as well. add all that up and take a look at shares, down 5.8%. it is a lot of shares coming on obviously need to raise capital, this the time to do it but we'll continue to watch that stock. general motors selling for $2 million. maker of peugeot aunleugeot car.

shares up 3%. political news fbi director james comey calling on the justice department to reject prmpz wiretap claims. in a series of tweets, trump claimed former president barack obama tried to undermine him by tapping tell phones at trump tower where he based his election campaign. the trump white house is calling on congress to investigate. you don't have an ag. >> just temporarily filling the spot. >> he's an obama guy. they haven't confirmed the new deputy. >> justice department in a tough bind. >> what's the justice department supposed to go. >> either go along with white house. >> comey has done like six really weird financial. >> i think he's trying to -- >> an article, op-ed piece a week and a half ago that went

over some of the things this gentleman thought had been damaged. the first one, to decide what's prosecutable and not prosecutable instead of presenting the evidence. >> both sides with a love-hate relationship. >> some of it is unprecedented. this is very weird to tell the agency that fbi is part of, to tell them they ned -- it's bizarre. >> both sides made accusations without backing it up with evidence far too much. >> also on the washington agenda house republicans set to introduce a long awaited bill to repeal and replace obama care. north carolina republican pat mchenry, chief deputy whip. i didn't recognize you, congressman. >> that's fairly standard. >> that is okay? how did you like our conversation off camera. do you think we should do outtakes. >> i think you should. i think that's the most

impactful conversation the viewers didn't get to hear, what we're discussing. >> i'm going to define it there's lollipop -- it's a union thing, lollipop guild. one other -- >> the girls group. >> i can't remember. >> history, important stuff. >> are you on terms of repeal and replace, there are certain parts of the republican party that repeal, damn the torpedoes, let's send the same bill. let's not do obama care light, let's not just expand entitlement state by calling a subsidy a tax credit. in your view, does that have to be done to avoid an absolute disaster? >> no. legislation marked up in energy and commerce and ways and means committee this week will pass on the house floor. it takes a very long time to work through the legislative process. it's basically a three-week long

process to use reconciliation budget tool to get it through house and go to the senate. the senate has a very abbreviated schedule, more abbreviated than the house. that package as introduced will pass in almost the exact same form. the way i would describe it is this. it's where i grew up in the south, it's all over except for the cussing and fighting. right? we know what's going to happen. we've pledged to do it for seven years. that doesn't mean we can't give the media a little drama in the meantime. we're republicans, independent minded people. everybody has an opinion what should and should not be in the package. given an up or down vote, they will vote to repeal obama care. >> all this furor around it is not for anything because there are no changes? it is what it is, we know the details. it's up or down and that's it. >> yes. >> wow. >> we have process through the committees, what comes out of

committee will be what we pass and enact into law. >> go ahead. >> when can tax reform come with that in mind. >> have you to burn the first budget reconciliation process in order to get to the second one, which gives an option for 51 of course in the senate to mass tax reform. fax reform for us in the house began four years ago, so we've done the most work of any branch of government on this. paul ryan is former chairman of ways and means committee has the most fixed world view on what should be the architecture of tax reform as briefing the senate and white house on what that should be. now, certainly the white house has to weigh in on their plan. they are still debating it. they are still putting form to it. we've got a long way to go. >> although the president has said you can expect something beginning to middle of march. we are there now. depends next week we may be seeing what white house thinks about this. >> the most important thing is you get the first pledge, repealing obama care, done,

check, before you immerse your self into what will be an even more dramatic set of votes. if there's this much drama around repealing obama care, pledged for serven years, there will be more around tax reform. tax reform is going to die at least a dozen times this year. it will be dead at least a dozen times and will have either house and senate saying it's dead and white house saying it's still alive or some iteration of one or two of the three saying it's dead. going to be an interest year. >> when we get to, spoke to treasury secretary steven mnuchin, he says he would like to see something put together by august for tax reform. is that a likely timetable talking about all these dead on arrivals before we get to that point? >> yes. that's the speaker would like to see it done before the end of july before we leave for august recess. as somebody who counts votes,

you want to have the package done, signed into law before you leave for five weeks. you don't want to leave that package out there. >> i know you count votes on the house side but probably the senate where there are the most questionable votes. have you done tallies where you can figure out if you get senators behind it particularly when it comes to border adjustment tax. that had a lot of senators, republican senators come out and say they will not support it at this point. >> until you get very close to the vote, you're not going to know what your votes look like. the architecture of tax reform is still being hotly, hotly debated. the border adjustment tax is just one large functionality of it. we have, for instance, financial service products section is highly complicated, very complex and could cause enormous market dislocation, dry up market liquidity. that has to be done with very sharp pencil when you merge into

that. >> vice chair of fox services committee. what areas of deregulation do you think are going to be the focus and what areas can come relatively simply without needing similar hurdles as tax reform. >> nothing in the world of financial services will come simply based on the nature of the senate. 60 votes to move the policy absent a few large pieces of dodd/frank you can repeal through reconciliation of the budget process, so what we're doing in the house is packaging up everything we want to do and we can pass that. we can pass one piece of legislation that rewrites dodd/frank, and it moves in a very aggressively different direction and that's jeb hensarling's view to move that policy out as a bill. what the senate does is take pieces of that and see if they can cobble together bipartisan group to pass it. that's going to be highly complex andic a very long effort is going to be put in order to have a small dodd/frank changes.

>> one of the things i hear spoken about a lot not so much removing volcker rule in total but changing within that. is that something you can see happening as a priority? >> sure. we can do that in the house. the question is whether you can touch volcker in the senate. can you get eight democrats to go along with 52 republicans. that's an open question. >> very quickly, congressman, all the twittersphere talk around russia and the situation there, what does that do to the process, just the policy process? does it have an impact? >> we have a really ambitious legislative agenda. to do health care and tax reform, just this one health package, that's before you get to the rest of market reforms for health insurance, to do tax reform and that plus infrastructure, that is really two congresses worth of work. so we want the white house to stay focused on delivering

results for american people. if we deliver results, get economic results f we get economic results you can keep republican house and senate and this president can be re-elected in four years. absent that it's going to be hard to say we kept our promises. so all the sideline show and all these commentators that are my colleagues in the house and senate that are not on the house intelligence committee don't have the full briefing on what's happening with russia, international meddling in our elections which is obviously troubling. then the president says something i think we should take seriously. it's a serious accusation we should take seriously. but i'm not read into say whether or not that's true or false. most of the people talking have no briefing and no basis of knowledge of what they are saying. >> things are -- the side show for cable is like great. for mainstream media they love

it. the democrats get all up in arms about it but they are not going to cooperate anyway. you're not going to the any cooperation. you're going to have to do reconciliation anyway. i'm not sure what it means. it's the lullaby league in a lollip lollipop guild. this has nothing to do with will being like 6'11" and you're like 5'10". >> patrick mchenry is like the coolest name. patrick mchenry. are you the son of patrick henry? >> yeah. >> son of thunder. >> i think it's a cool name. sounds like -- did you know that when your parents did that. >> when i conducted my first poll when i ran for office the first time, it came back and i had 3% name awareness. my pollster told me, ignore that, don't worry about it. after the full briefing, 3%, i should be worried about.

3% they think they have heard of you. >> made some really good speeches. you're a great american. >> congressman, thank you very much for joining us. still to come on "squawk box" a march hike may be on the table. one strategist said fed chair will keep her status as once a year. coming up. coach brad gilbert will be here to talk to us about the game on the global stage. later best selling author bill cohan calling on donald trump to make a grand bargain with wall street. his new book at 8:30 eastern time. we'll be back in a couple minutes.

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welcome back. joining us right now to help get ready for the trading week ahead from kumar trading. good to see you. >> good to be with you, becky. >> let's talk about a couple of thingsish first off the fed. the fed is going to hike in march. that's what everybody seems to think so far.

you're on board with that but you don't think it will be multiple hikes beyond that this year. >> i think the world economy cannot take a multiple hike. i don't think it can take one hike, becky. i think they are going to raise on march 15th unless this friday's job number is terrible or wage increases are not high. if neither happens and a reasonable report and 185 to 190,000 jobs i think they are going to hike. that is going to prompt capital outflows from eurozone especially with political risk. it is going to increase the capital outflow from china and u.s. economy will feel the impact. i say it's going to be a once a year yellen in 2017 as well. >> is that more a reflection of weakness in these economies or simply a reflection of what's going to happen to the dollar when it becomes clear that the fed is intent on hiking rates relative to other currencies. >> actually if she were to increase rates on march 15th,

the dollar is going to officiate. you're going to see downward pressure on the euro, probably good for european economy from a trade perspective. the problem is in terms of capital outflows. also, those economies despite some positive numbers, becky, they are not in strong enough shape to take an increase in interest rate on the part of the united states. i still think the world economy will not be able to tolerate it. so those are the influences i'm talking about. >> sri we've been waiting a long time to feel like the economy is back up and running. it's not like we're talking about raising rates to 4, 5% or what we used to consider normalized. we're talking about 1% to get us north of 1%. why do you think we're not strong enough to get anywhere near normalized rates? >> that's an excellent question, becky. i think the reason is we've had too long a period of excessive

liquidity. the markets have been distorted. the bond yields are very, very low, much lower than they would have been in the abscess of quantitative easing and zero interest rate policy. same thing can be said about japan and europe. as a as a result of that, any small change in the united states has a big mag tied impact on a global scale. that is the difference. if we had moved over 2009 to quickly start norm lializing interest rates, yes, the economy would take a hit but we'd be on our way up in terms of the economy looking up, bond yields rising, equity markets being supported by fundamentals rather than liquidity creation. we don't have that that's the reason why, as you said, even with tiny increases in interest rates the impact on the rest of the world and u.s. economy is significant. >> sri, you know what, i agree with that.

the counter factual, we found out counter factials are bs, brexit, counter factual, didn't happen. trump election. the counter factual, world was going to end, didn't happen. in fact, the opposite happened on both. we have no idea that the fed had to stay as tepid and with merge liquidity and everything, we don't even know going all the way back to the osh the origina bailout. we don't know what would have happened then if we had just taken our medicine. we might have cleared out the system and not had eight years of no growth, 0 interest rates, values going up with income inequality. counter-factual had us so scared we let them do anything to us. we have no idea what really would have happened? >> joe, you are singing my song. that is exactly right. i think maybe you needed qe1 in

2009. thereafter you should have moved up. if you didn't do that, especially we have punished savers. we have punished workers in terms of low wage increases. we have helped people who went into the equity market. that is not basically the job of the fed. it is supposed to be employment creation and inflation management. i think the fed failed on both of those targets that it has. i don't see how or why i should be believing any of the forecast now in the future. >> if you think we've had too much liquidity for too long isn't the only way to get off of that to go ahead and start raising rates. >> it is. but once you start raising rates, becky, you have to be prepared for a big shock to the market. i said they should have raised by 1 to 1.5 percentage points three years ago. the market would have taken a hit but we would be on the way up. if you do this chinese water torture in terms of slight increases, you are not going to

get sustained economic growth. the point being, if you are a plumber when the fed's balance sheet was $800 billion in 2008 and now we have quintupled the balance sheet, you're still a plumber. you need training, you need education, you don't need monetary increases to make the changes, becky. that's the problem. >> all right, sri, thank you very much for joining us today. >> thank you, becky. coming up, it's world tennis day. tennis champs like venus williams and andrew roddick will hit the courts. brad gilbert, former player, i keep saying coach, like those who can't do, coach but he's a player. wednesday you won't want to miss hedge fund david tepper will be here 7:30 eastern time. stay tuned. we'll be right back.

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welcome back to "squawk box." futures this hour pointing low, comes off the back of gains, of course, on friday, very slight gains on friday, gains for dow, nasdaq, s&p between that, banks best performer up a couple percent. telco's underperforming as you see by 40 points and dollar is a little bit higher against euro and pound and lower against the yen. when we return it's world

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good morning, everybody. welcome back to "squawk box" on cnbc. we are live from nasdaq market site in times square. it's going to be a busy week in washington. more details expected about health care and immigration reform. eamon javers is here and he has more. eamon. >> take a look at agenda items we're expecting from trump administration. it's a big week for their agenda. we're expecting later this morning some information on the white house in terms of what's going to be in this new executive order on immigration, how exactly they have refined it as a second pass on the immigration executive order. we're also expecting new information in terms of health care and where republicans here in washington expect to go in terms of repealing and replacing

obama care. all that overshadowed by firestorm of controversy surrounding president trump's tweets over the weekend regarding allegations of wiretapping. here is what the president put out saturday morning. he tweeted early in the morning, terrible. just found out that obama had my wires tapped in trump tower just before the victory. nothing found. this is mccarthyism. the white house later doubled down on that with a statement from press secretary sean spicer. here is what spicer said. president donald j. truch is requesting as part of investigation into russian activity congressional intelligence committee exercise oversight authority to determine whether executive branch investigative powers were abused in 2016. neither the white house nor president will comment further until such oversight is conducted. the white house there demanding an investigation into whether the thing the president tweeted earlier on saturday was, in fact, the case. obama for his part through a

spokesman denies this entirely. the spokesman saying cardinal rule of obama administration was that no white house official ever interfered with any independent investigation led by the department of justice. as part of that practice, neither president obama nor any white house official ever ordered surveillance on any u.s. citizen. any suggestion otherwise is simply false. guys, the question for today going into this busy week for the trump team is does this controversy overshadow and distract the white house team from focusing on the president's dpend ark. that's where we are monday morning. back to you. >> all right, eamon, thank you. >> you bet. >> i don't know if you know, it's world tennis day. you should know if you were watching venus last week. they will face off at madison square garden last night to promote participation in the sport. joining us brad gilbert former pro tennis player analyst at espn, coached tennis greats like andre, agassi, roddick. saw the semifinals with you. >> you did.

you sat there in the box, joe. >> against that guy, came back. remember that guy. >> he came back, was down 2-0, came back and won. >> i had hair then. >> you still have good hair. >> i see why you lose your hair, watching you as your guys are -- not quite the reception venus had last week, but you're big. you saw when venus was here. how great is she. >> i did moderating for the very first time in veil, colorado with the two williams sisters in front of 400 people. venus couldn't have been nicer, told great stories about serena when she was a kid. they get it. she was a tremendous lady. an honor to be here on world tennis day promoting great health. tennis is a lifestyle forever. a tremendous sponsor. this is the tenth anniversary in the garden. >> not just the spectator sport

you're promoting, participation, play the game, play the sport. >> i tell people when you learn to play tennis as kid, it's one of those things you can do for the rest of your life. it will help you in all facets of your life and it's a great way to keep healthy. >> i wish i play. my kids play. i wish i had somebody -- >> i can say the older i get, the better i used to be but it's a great game. >> you remember you're much besh the reality. >> we can say a lot of things or i can say i'm aging up a little bit. i'm getting better as i'm getting into aarp but for my age i'm okay. >> kids have been playing their whole life. great for kids. my wife is really good, played high school tennis and had like a 50-set streak over me. i have beat her but she had like -- it takes a real man to admit that that you get -- >> you ever play mixed doubles with your misses. >> we have. we play with the kids now. >> okay.

>> what goes on with fun matches. are you playing or not playing of i am not playing. i'm up in the booth. >> doing the commentating. >> with mcenroe. older guys -- younger, hewitt and roddick, curious, venus williams playing french open cha champ. team style, shorter sets. singles, doubles and mixed doubles. >> it's good to promote it, tennis in good shape. i don't care that much. >> why don't you care. >> no, i don't care we don't have american male star. venus and serena, we have that on the ladies side but roddick was our last great hope and he was overall you got him to win one but he just won one grand slam. >> it's tough.

i love federer. >> i will say this, obviously as an american we would love an american to be there. between djokovic, federer, when people are watching, i don't think they are thinking about that. that's the great health of where these guys are. they are so international. roger federer. >> all-time. >> derek jeter like his fan base in new york, remember jeter fan, fed is big everywhere in the world. he's iconic. he's become maybe the biggest brand ambassador in sports history. so that i think that been a great thing for tennis. i think before that as ab american, if it wasn't american, you know, people would think, okay, where is the american. i think they actually think, why didn't he grow up in l.a. >> we had some good years. >> which is the most important grand slam. >> which is the most important grand slam. well, as an american we'd like to think of the u.s. open,

obviously, because you dream of being there. but to be honest with you, the last 36 years, every time i get to walk through i call it the cathedral of tennis in wimbledon, you get to walk through the gates -- the first time i walked through this, i was like what is the whites thing all about. cow to appreciate it's the only one of the slams at an actual club. not exactly easy to become a member there, but it's the cathedral of our sport. between wimbledon and the open, those are the twomore most important things. >> from wimbledon, quickly ask about murray. has he now had his greatest year or two? is he past his peak or continue up from there. >> why is he past his peak? 29 coming up on 30, his best year, number one in the world. in tennis it used to be once you turned 30 you're on the downside of your career. that's completely changed. a lot of athletes pushing the envelope.

i expect murray to play good for the next two to three years. i could see him winning a couple more. he's reunited with lindell, in the best shape of his career, so i'm expecting another big year from him. >> i guess we did get a little spoiled. we had conners, mcenroe -- sorry to mention mcenroe. are you getting along with him. >> sure, i work with him. >> you had some fun competing with each other. >> the older i get, you kind of let things go and focus on what we're doing now. >> and then andre obviously. >> we've had great american players. >> sampras. >> but we're going to have to be patient. >> sampras is amazing. >> i can ask that question. i don't have to be like mr. -- maybe you haven't seen it. globalism is out, dude. this is nationalism now. we're trying to get -- >> cnbc is global, man. the day of brexit. >> i don't have -- >> i'm watching cnbc, you are

making me money telling me like the companies -- >> unrelated fashion. >> worst exposure to brexit. >> i'm not going to apologize for hoping there's an american male star. venus and serena have been carrying the mantle for tennis for a long time. >> a really good group of americans. >> who is the best one. >> the best young american player right now, if i could put a buy rating on the stock, an unusual prospect. riley opelka. he's 7' tall. he's 19 years old. >> are you going to coach again? >> am i going to coach again? >> i'm really happen at espn. i can't lose any matches, i can just make bad picks like i do on stocks. but never say never about anything. >> twenty year viewer of cnbc,

got andre investing, mentioned me. >> i'm a home gamer. i watch every day. i watch first in the morning to see what futures are doing. you guys get into a lot of politics, 9:00 a.m. out in california every day i watch the judge with the brothers. they talk focus on stocks. because i'm the home gamer, what do i want to do, trade stocks. >> what's the latest stock you bought. >> i buy and sell way too much. >> he's got a problem, i'm telling you. >> you know what it is -- >> a good problem. >> i don't get married to stock. i trade too much. my two biggest holdings are morgan stanley and go daddy. i like go daddy. i think they have potential in that space. core stuff in facebook, amazon, apple, a lot of boring ones that are going up. i like to buy and sell. you know, the snapchat thing last week was crazy. all week i hate this -- i call

her sleeper hold. she's putting us on hold. raise frickin' rates already, get over with it. >> have you filled out option papers? i don't want to tell you -- >> of course i trade options. that's a given. >> oh, god. >> i hate when you have analysts on or people on and they don't have skin in the game. you've got to have skin in the game, you know. then your passion comes out. of course i trade options. >> giving you options is like giving you a hypodrmic needle. >> are you passionate you're the bank genius guru. >> i was an analyst before cnbc but we're not allowed to trade anymore, which is the right thing. >> ever when they are expiring. >> one day thing. >> by at 16 and closes at 4. that's whey used to do. >> that's when you've got to have a towel. you're going to be sweating a

little bit. you know, you can go to the weekend. >> i've had great weekends and horrible weekends. >> i want to watch sports with this man. >> come to the tennis tonight. we'll be all good. >> thank you. good to see you. >> perfect margarita we've got to discuss one day. >> we do. on air. >> when we return response to fox crisis, bill cohan makes the case for dismantling dodd/frank in his new book. why wall street matters. we'll be back in a few minutes.

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. >> joining us seth harris, former secretary of labor under osh administration. seth, what's the truth? near full employment or a lot of people come back if things get better and wages go up? what's the true narrative or some of both. >> i think there's a lot more slack in the labor debt than people are giving credit. not just a lot of people who left the labor market who could easily come back in, but we've got about 6 million americans working part time involuntarily who would like to work fulltime. that is slack. so the unemployment number doesn't tell the full story, jobs numbers doesn't tell the story. we need to look at wages.

that tells you whether they have the numbers. >> is this prelude to saying the fed should not move. >> i think 25 basis points isn't going to hurt the labor market very much. i'm nervous about the fed going to 100, 150 basis points this calendar year. i think that we are not seeing wage push inflation in the economy right now. i don't think workers are seeing meaningful, real wage increases. we're seeing a bump in cpi. we're seeing a little bit of inflation in the economy but it's not wages doing that, it's prices. >> do you think that there are any self-inflicted problems over the last year. you're in the obama administration. do you think if we do something with obama care, so people can hire more than 49 employees and be less part time, less regulation, tax cuts for businesses, do you think all of those things will help juice the

job market and get some wage gains like we're looking for? >> no, i don't think that's the problem. >> surprise surprise. >> right. >> the problem in the economy isn't that wealthy people and corporations don't have enough money to invest, the problem is we're slack on the demand side. we don't have enough consumers spending enough, even though their confidence is up. that's because of a long range trend in real wages. we've had flat or dleeeclining wages for real families -- >> that's chicken and egg. if we didn't have to stay at zero for so long on interest rates maybe wealthy people wouldn't be doing so well. if we didn't mark up every asset by the fed with easy money, pro growth supply side policies for the last eight years maybe you wouldn't have to stay at 0 and you wouldn't be complaining about it. >> low interest rates helped keeping economy humming, at low

growth rate. >> humming. >> we're 2% more. >> first time ever we didn't have one year where you did 3%. it's been tepid. you wouldn't be complaining if things were flush. it's certainly not humming. >> that's right. i think if we were moving faster, i would be happier and you would see growth. growth is not enough. distribution to working families. we're not seeing that. >> tighter labor market and people can start -- you're strapped to hire people, then the wage gains start coming organically instead of trying to legislate higher wages. >> i think we need to see both. tight labor markets recently have not been doing enough. >> you said there's still too much slack. >> too much slack but not enough bump from labor standards, not enough bump from good quality middle wage middle skill jobs that come from investments in fiscal policy. >> okay, seth, thank you. >> thank you. >> next guest is calling on

president trump to make a grand bargain with wall street. let's bring in bill cohan, "vanity fair" special correspondent an "new york times" columnist. also the author of this new book "why wall street matters." good morning to you. >> thanks so much for joining us. >> thanks for having me. >> in the past you've been critical of wall street. this book is somewhat defending us. can you frame that change of heart. >> sure. i'm sure you remember antonio weis former banker nominated by president obama to become under-secretary of the treasury. elizabeth warren wouldn't even meet with him because he had wall street on his resume. to me that was a catalyst, a turning point that to me the pendulum had just swung too far against wall street, too much villainizing of wall street, too much plaming wall street for every ill that had gone wrong. i thought it was time and important to remind people about what wall street does right. i have been critical of wall

street because it did a lot of things wrong leading up to the financial crisis. there's still things that need to be fixed. i thought it was time to explain to people what it does right and why we should love wall street for what it does right. >> in terms of the pendulum swinging too far in your eyes. you're not just critical of where it swung but suggesting it shouldn't have been so much congress and dodd/frank that exerted the punishment for the crisis but department of justice. >> yes. >> what do you mean by that and where do we go from here? >> it's the justice department's job to punish wrongdoing on wall street or generally everywhere. there was a lot of wrongdoing on wall street. i documented it at bear stearns, my book "house of cards" about goldman, money and power. instead of prosecution, instead of justice there were, what, $200 billion in fines against wall street forms, which i call a form of extortion against wall street shareholders having nothing to do withholding people who did bad things responsible. and so into that vacuum of

failing to prosecute wrongdoing on wall street comes regulators, comes politicians who decide to grandstand and demagogue the issue of how bad wall street is and use it for their prosecuted? they tried to do the two bay sterns. >> in my book, joe "house of cards" there were documents i had found that showed these two hedge fund managers -- look, i wasn't in the eastern district when they prosecuted them. they should have used -- my book came out before that prosecution. they could have easily just used the documents that were in the book, but they didn't. >> a lot of it is by definition wall street is risk taking where you can lose. that's not against the law. you can't put people in jail for being stupid and betting the house money. >> of course not. but one of the points i make in my new book you refer to this grand bargain wealth is that now we're at a position where the pendulum is now about to swing the other way, there's going to be a lot of reform.

and i think there needs to be as brad gilbert was saying talking about options saying having skin in the game. we need to have wall street have skin in the game again just like when they were small private partnerships in the old days before doj went public and changed everything. we need to have wall street bankers and traders and executives having skin in the game again. that's the way to hold them accountable. >> they lose -- >> they lose in their pocket where they really care. they keep their eye on the ball. jimmy cane told me in writing "house of cards" what's it like to lose a billion dollars in your own stock, he basically said to me it was not that big a deal. i'm thinking what do you mean it's not that big a deal. the reason is he had $400 million he'd already pulled out and put in his bank account. >> as you said the pendulum at the moment -- >> and he's a good bridge player. >> the pendulum is slightly easing and likely to ease under this new administration. i want to ask about the wells fargo scandal, we've forgotten about that a little bit. >> we shouldn't.

>> exactly. we shouldn't. and some point expect a full independent board review. when that comes might generate headline and coverage and swing the pendulum back again to the anti-wall street. do you think there's been enough punishment for the wells fargo scandal? what do you expect when that review comes out? >> the wells fargo scandal was really bad. and it was chronic. it was 2,500 employees doing bad things. so that was a cultural mistake. and i don't think -- i think the ceo has left now. there's been some clawback of bonuses. to me that was a very bad example of systemic cultural problems. i don't know that it's going to swing back because the trump administration seems to be off doing its own thing now. but that will get headlines. hopefully the trump administration will do the right thing by holding wall street accountable for its bad behavior. >> william, thank you very much for joining us. new book as well "why wall street matters" is out now. >> when we come back, jim cramer will join us live from the new

york stock exchange. stay tuned. you are watching "squawk box" right here on cnbc. when ♪ou have $4.95 ...you realize the smartest investing idea, ist just what you invest in, but who you invest with. ♪ hello, my name is watson. i am helping 8 million taxpayers get the largest refund they deserve. one million people can benefit from precision cancer care.

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get down to the new york stock exchange. jim cramer joins us now. is it ever possible to just

totally ignore d.c. and just not think about it? or do we always have to try and ascribe some of the movement to what's happening? >> no. i think a lot of the companies that reported had great numbers because of overseas and i think a lot of the companies that are reporting that are bad that are going down have to do with the fact that the consumer in this country is just not using the same spending pattern they used to. >> if the programs in the market excited about, if it gets derailed or bogged down in all this other stuff, would that be a problem for the market? >> no, not at all. i think that's the perception. i read there were two articles, one article in times, one journal, citing hedge fund managers that were negative. it's like, all right, okay, sure, you've been wrong. most of these guys negative the whole way. i find if you listen to these companies they're not waiting for what the federal reserve's going to do or what trump's going to do, they're taking a lot of action.

i think deregulation does matter, but the other things we're going to talk about them all the time. someone on earlier said it's going to be this, going to be that, i don't know i got to look at the companies. companies are telling you everything. >> all right, jim, see you in a couple minutes. tomorrow on "squawk box" don't miss barry sternlicht. my business was built with passion... but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing.

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that does it for us today. wilf, thank you for joining us. we'll see you back here tomorrow. right now it's time for "squawk on the street." ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. futures are weak as the market takes stock of developments over the weekend. deutsche's equity sale, the president's allegations of wiretapping, don't forget a jobs number on our way this friday. and we might see a new immigration order from the white house today. europe is lower. factory orders are coming our way in about an hour. roadmap begins with stocks seeking to extend the rally but futures pointing to a muted open. >> deutsche bank annoues