apparently that was last night we're going to bring you the biggest winners and losers monday september 18th, 2017. "squawk box" begins right now. ♪ ♪ ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq markets in times square. i'm becky quick along with andrew kernekernen the dow was up by 2.2% this morning the green arrows continue with the dow futures up another 56 points. s&p futures up by 4.5 and nasdaq up by 13 overnight in asia, japan was closed for a public holiday. the hang seng was up by 1.25%.

kospi in south korea was up by 1 1/3% shanghai index ended slightly higher as well this morning in europe in some of the early trading we've already seen, again, the green arrows continue there, too the dax is up by over half a percentage point the cac in france up by 4% ftse is up by .3 of a percent. check out crude oil prices which were up sharply last week. we saw oil close above $50 for the first time in over a month a gain of $2.50 over the course of the week. this morning down by 2 cents to $49.87 currency, dollar was also stronger after coming under pressure in recent months but the dollar index was stronger. dollar down against the euro at 119.5. up against the yen, $111.29. record night of emmy awards.

"handmaid's tale." took home the top prize. the cast of "veep" took home the best comedy. "saturday night live" came out on top it won nine awards hbo won the most awards of any network. "big little lies" helped secure that record. hbo held off netflix yet again winning 29 total emmys compared to netflix's 20. it is a big win for hulu and it's quite amazing how one show, this is sort of like "house of cards" situation "house of cards" made netflix. >> have you watched this >> i have watched the first two episodes my wife loves it. she watched the whole thing. i just -- i -- travel schedule >> any potential >> yeah, it's a real show. >> for us? >> yeah. i mean, it's deep. there's a lot going on >> i was watching future potential emmys last night and i

did watch -- >> "the deuce" with david diamond. >> with my kids. >> a little too late to try and say stop about a couple of times my eyes were like -- >> yeah. >> full frontal stuff happening in this one. but now i've also -- i'm hearing narcos have you done that narcos >> yes >> the third season of that. >> oh, i haven't seen that ozark. everybody is talking about "ozark." that's the ore one. >> okay. so the emmys >> if it was colbert, it must have been cbs, the way they do that >> yes. >> they cross promote their super late night so they stick their guy in and it's on their network. >> we would never do that. >> that's what we do when we do it >> we didn't do it last night. >> not last evening. >> if i'm able to criticize do what i say, not what i do. >> "this is us" was robbed is

what you should be saying. >> my rant today is i'm just sick of twitter dictating what's actually news. just because something trends on twitter does not make it news. like i read that that one actress was kidding and she's -- when laura dern won. jackie hoffman said dammit, dammit i saw her saying, you really think i was serious? she goes, it's not the media it's the 10,000 people on twitter. >> the true twitter eruption last night was over sean spicer. >> i know it. >> you saw what he did. >> i saw it on "huffington post." >> i saw your take on "huffington post." it drove me razy. >> it drove you crazy? >> yes >> he went out there, made fun of -- >> he made fun of lying to the public. >> good natured. >> i thought it was funny. i'm not saying it wasn't funny. >> the other thing the "huffington post" said, trump tweeted something out he took a swing with a golf club and hit

hillary clinton in the back. they called it -- they're advocating violence and ma soj any on hillary the world is going crazy over the weekend i said, stop the world. i want to get off. i can't take it anymore. i can't. i ka can't. i can't take the "huffington post" spin on things i can't. it's killing me. >> i see that. >> i'm sorry. >> it's un -- >> news for you. >> among today's top -- i will just say one thing i never saw jay carney or josh bolton or josh earnest the star of the emmys, so i guess maybe lying is -- or at least -- >> you said it, i didn't keep going >> okay. i would say that lies a little -- like i said, that lie is a little more frivolous irs lie. >> corporate news. >> northrop grumman reported a deal to acquire missile and rocket maker orbital the announcement could come as

soon as today. >> that doesn't have to do with rocket man, does it? >> exactly "the wall street journal" -- >> i thought about that and how exciting it is to see a rocket blast off. the acquisition price could exceed 7.5 billion if a typical premium is attached and at&t is reportedly considering investing its latin american tv assets which could be worth $8 billion. slack bringing in fresh cash from investors the company raising another quarter of a billion dollars thanks to a big injection from soft bank. company is valued at $5.1 billion. slack says it will help run it as a cash generating company and reduce its dependence on outside financing. the tragic thing that happened, guys, was they're scouting location for narcos. you saw this scouting locations in mexico for

narcos and a guy got shot. >> i didn't see it. >> you didn't see this >> no, this i missed. >> he's now dead they're looking at -- this was another twitter thing so, you know -- they're thinking of using colombia because it would be safer than mexico to scout locations for -- the scout was unfortunately in the line of fire down there. >> wow >> that's why -- you know, that's why -- i checked -- you know, i think there was a third season that wrought brought it prominet everyone's discussion with "narcos. >> let's get to washington ylan mui joins us. >> reporter: good morning, president trump is in your neck of the woods this week he's in new york for the annual united nations meeting and the growing threat from north korea topping the agenda there

trump discussed with president moon jae-in over the weekend they agreed to strengthen deterrence capabilities. trump has promised fire and fury if this doesn't work nikki haley said sunday on cnn that the president plans to make good on that threat. >> we all know that basically if north korea keeps on with this reckless behavior, if the united states has to defend itself or defend its allies in any way, north korea will be destroyed. >> reporter: the president also tagged north korea's leader with a new nickname this weekend calling him rocket man in a tweet and saying there are long lines for gas following the u.n.'s new sanctions another issue sure to come up at these meetings, the u.s. policy on climate change. "the wall street journal" reporting that the white house is looking for ways to stay in the paris accord, however, administration officials say that story is false and the u.s. would only stay in if it could

negotiate a better deal. today the president has bilateral discussions with benjamin netanyahu and macron. guys, this is trump's biggest moment so far on the world stage so we'll see how his america first agenda will go. >> ylan, thank you very much. in other news in the intersection of business and politics, facebook says it handed over new ad sales information to special prosecutor robert mueller. that news comes as lawmakers turn up the pressure on facebook to provide more information. here's what adam schiff said over the weekend. >> we are requesting a lot more information from facebook and we have received some information but there are a lot of unanswer erred questions. >> frankly i'm distressed it has taken us this long to be informed that the russians had paid for at least 100,000 dd of ads designed to try to influence

our electoral process. >> earlier this month facebook revealed, quote, inauthentic russian actors bought $100,000 of ads on the site they're saying there are people inside the white house concerned that each other might be taping each other did you see this they might be wearing wires as part of some kind of mueller investigation. >> that's part of the big questions to come back to facebook and some of the other technology companies there was a huge piece suspecting that facebook has been the darling for so long of silicon valley and washington but once you get into areas like this, is this going to change? are there going to be calls for regulation is this going to have to be a u.s. centric company and not steer clear of any government? >> couldn't you always be sitting there with your phone on video record when i talk to you now off camera i don't -- do you notice i just try to confine it to

small talk i don't say what i really say. >> you haven't said what you really think >> no. >> oh, boy >> sure. >> couldn't you do that? anywhere you are now, worry that everything is recorded. >> i think you should always think that you're being -- well, that's apparently the concern. that makes it hard to work. >> with the watch now, right >> yeah. well, it has a telephone on it, right? >> if it has a recording device. >> society needs to be -- different than five years ago. jokes. pictures selfies. got to watch the selfies poor giraldo >> watch the selfies as you know. >> we have to watch the selfies. some people that enters their mind. >> let's get back to the markets.

if you look at other asset classes, there was some risk in the marketplace especially the run up in gold and that manifested itself in a sentiment measure. >> we're going to talk about some of the other asset classes including oil in just a moment, but in the meantime gabriella why tonight you talk about where you see the economy now if it supports the technical move we talked about. >> for the economy we saw a nice pickup in growth in the second quarter. we think the third quarter can be quite strong as well. strong consumption coming in

of you have some inventory adjustment as well for the third quarter. the economy here in the u.s. is holding in nicely. more importantly i think for some of the moves we've seen in earning expectations and the s&p is the acceleration that's happening abroad that's really getting amplified by the weakening of the dollar earnings justifying that move. >> what i can't figure out is why the dollar has struggled so mightily. >> i think it's a story of how far, how fast it moved, 2014-2015. there were two main stories there. the u.s. was the only house on the block, the only economy picking up speed that's not the case at all anymore. the fed was the only bank that was moving at all and that's also not the case anymore. in our view the move is downwards for the dollar over the next year. >> isn't it weird though to see the euro at almost $1.20 for the dollar and think, okay, this is where we are we're almost at parity or we thought we might hit parity. >> the european economy is so different now when we were very close to parity, right

the eurozone is staging a very, very nice excacceleration in grh and that's coming domestically the european central bank is getting much closer in normalizing policy itself. it does justify a stronger euro, not just in europe but in the next year. >> it was a peaceful mark grant pointing to what we have seen from central banks and this massive global liquidity even when they talk about potentially tightening, it is just removing a huge rip from the bucket and what we're really talking about while the boe and the ecb and the bank of japan continue to really be incredibly cash rich. >> still going to be a very, very gradual adjustment. we are taking steps in that direction. we do expect an announcement from the fed this week normalizing the balance sheet. then we do a second announcement next month by the european central banks to start tapering. it's very gradual but the tide is turning that's something to watch when

it comes to fixed income. >> katie, why don't we talk a little bit about oil we did see oil push back above $50. what do you think from the technical perspective? >> $50 per barrel is a psychologically resistant level. so breakout about that level would be, of course, a positive. it would create a higher high. we already have a higher low i believe we've already seen an intermediate term turn around. whether that's lasting in the next few months i can't be sure. certainly momentum has improved. so to me the support's right around 46 to $48 per barrel. resistance right about in line once we get above that, you start talking about the high 50s. >> the high 50s? >> the high 50s. >> just not -- not ever think about fundamentals or trump or north korea, just listen to what the market -- the message of the market says. >> really. i think that's true.

the orbital deal is done northrop grumman is acquiring orbital for $9.2 billion. >> anything else we should be watching from a technical perspective? >> yields are very important now. we saw a backup in yields, treasury. >> down quick and up quick >> that's right. a little bit of a shakeout that shakeout has benefitted the financial sector when you think about sector leadership for q4, maybe financials will come back again and be tech will take a back seat. >> katie, gabriela, i want to thank you. >> quale did you see this capricorn who are ri scope >> no. >> be careful what you say over the next 24 hours. this is one of those occasions when it might be best to say nothing. so, i mean, i -- i read that -- >> huh >> say nothing. >> i'm not a big believer in who are r-- horoscopes.

>> we're going to need another hour. >> you missed my joke. i've been waiting to use that. i don't believe in them but capricorns are very cynical. >> never mind. coming up when we return, thank you for the room >> i stole that. >> stay tuned. you're watching "squawk box" right here on cnbc people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen.

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find your awesome with xfinity xfi and change the way you wifi. welcome back to "squawk box. more details in northrup grumman's deal buying orbital for $7.8 billion in cash also assuming $1.4 billion in net debt the deal valued at $134.50 per share. the agreement has now been officially approved by both boards deal expected to close in the first half of 2018 and puerto rico could be facing its worst hurricane since 1928 nbc meteorologist steve mclaughlin joins us from cnbc's world headquarters steve. >> well, good morning. you know, last week we had irma and it was a huge storm. winds of 185 miles per hour, but it never actually made landfall

in puerto rico this one could be a lot worse even though it's not nearly as big as irma was. we want to begin with jose now a category 1 hurricane little bit weaker than 24 hours ago. we were up to 90 miles per hour yesterday. now down to 85 it continues to move to the north. the bottom line is that anywhere from washington, d.c., to boston there will be impacts, but the likelihood of landfall is going down as we check out where our hurricane watches are, basically fenwick island up the jersey shoreline east of new york city, long island, coastal connecticut, coastal rhode island up to plymouth. that's all of cape cod this is where we have the most likely tropical storm conditions those are winds over 39 miles per hour maybe gusts higher than that storm surge and heavy rain i think new england will be taking the brunt of this storm as we check out the track, the storm continues up to the north. it should weaken into a tropical storm and that means winds 39

miles per hour, maybe up to 70 miles per hour at most the storm will then just graze cape cod and then do a little bit of a loop. it's pretty interesting that this storm is going to try to make a second run at the northeast about 5 to 7 days from now. we'll talk more about that in a bit. first i want to show you the latest on maria. this is a much bigger storm. it is going to make landfall around puerto rico over the next couple of days as a major category 3 or 4 hurricane. the good news for south florida where i live, this storm does not look to be a threat. bahamas could take a direct hit. if you are watching from the east coast, new york all the way up to boston, maria could be a factor in your weather next week big question is how does maria interact with jose those are questions that we will be answering over the next couple of days for sure. we'll send it back to you. >> thank you for that. the cnbc global cfo council releasing its latest survey this morning. jackie deangelis joins us with

the details. good morning. >> good morning to you, andrew the survey covered a range of topics, but the answers on trump's performance could possibly be a predictor on the market's next move the cfos gave him some credit for the record runs we've seen in the market, about 60% a little more than 40% gave him the same rating on job creation. looking forward, they thought deregulation would have the most positive impact over the next year while withdrawal from the t.p.p. would be negative how confident are they that tax reform will be here by the end of the year? less dropped steadily on obamacare, building the wall, personal and corporate tax reform as well as repatriation they thought the dow would cost 23 k before it drops below 21,000 so market optimism still there on rate hikes, the majority think the fed is done for the year, but more than 34% still think it's possible that we'll

get one more rate hike. overall while there's skepticism on how quickly the administration can work to improve the economy, it seems the overall sentiment is that things are improving, guys >> thank you. >> sure. coming up, this morning's top stories including a $7.8 billion defense deal do you remember orbital sciences >> sort of. >> do you remember a lient tell systems? >> no. >> it's the product of the previous president trump heading to the u.n. we'll get the big political stories to watch stay tuned you're watching "squawk box" on cnbc

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♪ ♪ ♪ welcome back you're watching "squawk box", live from the nasdaq market site in times square. good morning, everybody. welcome back to "squawk box" here on cnbc let's take a look at the u.s. equity futures this morning. we have been seeing things in the green once again even after the big gains we saw last week for the markets. dow was up by more than 2% the dow futures up another 50 points s&p futures up by 3.5. treasuries, the ten year note, the yield stands above 2.2%. 2.211%

we'll keep an eye on that as well in our headlines northrop is buying orbit technical atk for $134.50 a share. jimmy choo shareholders will vote on an acquisition by michael kors that deal was first announced back in july. details on the coming roku ipo they plan to price 15.7 million shares between $12 and $14 a share. roku says the company is offering 9 million shares with the selling stockholders offering an additional 6.7 million. president trump meeting with world leaders at the u.n. general assembly this week the north korea threat expected to be a key topic. for more on the week ahead in washington let's bring in jonathan swann, professional political reporter at axios. jonathan, you have a way of hearing a lot of stuff that goes

on in the white house. i was struck that maybe the most time is being spent, in your view, on north korea, not on mueller, any of the other myriad things happening in the world but north korea is taking up the lion's share of the president's time at this point in your view? >> there's no question that north korea, particularly among his national security team, but also beyond that it's widely viewed as the issue that's going to define the first term of the trump presidency the way that he handles this standoff with kim jong-un. i don't -- they're pretty dark about it, to be honest with you, when you talk to them privately. it's a road and there are two forks. the confrontation with china and the other which is obviously unthinkable.

to be clear, they're not there yet. they still believe there's more to pressure north korea and other clients of north korea, but the real pivot they've made recently is to start pressuring china on cutting its oil exports to north korea obviously china's refused to do that so we'll see where that plays out. >> a couple of months ago tillerson -- secretary of state tillerson took a vacation. some people say he's not coming back after looking at some of your comments, the feeling's mutual, it seems like, isn't it, in terms of him maybe not wanting to stay and people not wanting him to stay. does he have any support left? and in which circles does he have support in the white house? >> it's pretty hard these days to find somebody in washington to speak up on rex tillerson's behalf in fact, i just tried to do this exercise we reported three weeks ago the president had said to aides that rex just doesn't get it.

that's a direct quote. he's totally establishment and he's thinking. what was notable about that story is the white house didn't contest our reporting and they issued only the blandest statement in support of rex tillerson. it really doesn't get blander. it was from a spokesperson, not donald trump since then the tensions have only escalated rex tillerson, the best way to sum it up, former bush administration person told me he's got no support on the left because of managerial reasons. they're upset about what he's done to the state department and he's got no support on the right. he doesn't be have an ideological constituency on the right because he doesn't lean forward on issues like human rights and being very aggressive on russia which is what republicans typically expect of their top diplomats. it's a really bad situation for him. >> you think he gets fed up with it and leaves at some point? >> i can't speak to how he feels

personally people who speak to him, friends of his assure me that he's not planning to leave and, you know, that they say that he's doing quiet diplomacy, working with china and south korea and japan, but nobody, even his friends will try and spin you that he has this warm, great relationship with donald trump he just doesn't. >> jonathan, what's your latest take on the fate one way or the other of gary cohn >> again, i don't think anything is imminent with gary cohn obviously he had a rough patch with the president, but it was notable that rex tillerson yesterday said that gary cohn is leading the effort to -- we'll see what happens, but potentially re-engage with the paris climate accord and obviously he's going to be there -- >> right. >> -- at the u.n. general assembly >> do you think nikki haley is the next secretary of state,

jonathan >> she has to be -- there's concern that she doesn't have the substance, that she's not experienced enough in foreign affairs and would need another year or so, but certainly she's the obvious choice she's -- trump likes her on tv she's a very strong -- she's got great communication and political skills i haven't heard anyone else talked about seriously for that role so by default, yes. >> she's more belacose the stuff she said scares me in terms of brinksmanship is the world ending on september 23rd isn't that in the bible? it's not like we don't have -- it's not like we don't have some reason to -- i mean, the events are converging i mean, it's not funny, but it's a very precarious time because, you know, every time they send another missile over japan, hopefully that doesn't break up and land on a populated area because that will start it, won't it >> well, it is a very precarious

time i spoke to republican senator dan sullivan over the weekend. he's from alaska and they're the first in the firing range if it comes to that, and he said something that, you know, is, again, a remote possibility but still very chilling to hear. he wants congress to authorize legislation that would approve, quote, preemptive ground war on the korean peninsula he's raised that with the white house. now to be clear, that is not something that is being taken seriously at all within the white house, but it's still chilling to hear people talk about that. >> so who's formulating the -- behind the scenes the response to the daily occurrences that are coming out of pyongyang right now? is it the president? is it kelly? is it mattis is it tillerson? i mean, who is it? is it all of them? >> it's the national security

team obviously coordinated by general h.r. mcmaster. he tries to play the honest broker role and i would say among the national security team, no one would dispute internally that general mattis is the voice that donald trump listens to beyond any other voice. >> so what are you doing for the rest of the day? like who are you going to call give me three or four -- >> i'm not telling you who i'm calling. i'm getting on a plane i'm going on air force 2 with the vice president to u.n. general assembly. >> well, that's pretty good. >> that's a pretty good story. >> i got something out of you on that you're not willing to give me any other -- i guess you can't -- >> you want my text messages >> yes i just want to know before everybody else. >> are you on signal or telegram, that's what we want to know >> i'm on signal, telegram and confide. >> there you go. >> that's reporter talk? >> they're all secret patch where you can text people. >> that's a little reporter

talk. >> safer than snap chat. >> all right thank you, jonathan. you may be interested in different things "the new york times" was writing about violation of labor laws with the kid cutting the grass that wasn't your story, was it, jonathan that was shameful. >> i didn't do extensive reporting on the -- >> fred, what was his name >> 11-year-old. >> jonathan, talking about the times, what did you make of the story about people inside the white house apparently worried that they were recording each other as part of this investigation? >> by the way, jonathan, you're being recorded right now >> i've been told. >> is there a hot mike here? >> there's a hot mike and you're being recorded. >> i haven't heard anyone. there are a pretty paranoid bunch of people in there i heard herd paranoia. >> great to have you thanks for having me. >> e-mail me those sources. the bible of rock and roll,

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welcome back u.s. equity futures up again after the best week of the year for the dow. pretty solid start to this morning if it opens there. up 5 points, 56 points on the dow. the staup h&p has indicated up r four records set last week for the dow jones. time for the executive edge this morning. the iconic "rolling stone" magazine is now officially up for sale jan wenner says it is up for sale a drop in circulation, wenner's company sold other magazines, ""us weekly"" and "men's journal" to the publisher of the

national inquirer. i don't know if you want to pick up that 51%, joe. >> yeah, no. i might. close it down. ryanair says it will cancel 40 -- >> that's not funny. >> will cancel 40 to 50 flights every day for the next six weeks due to a scheduling error. >> i can replace everyone, i guess, and change the editorial stance. >> that's a great iconic -- you love music. >> i do. the budget airline said it messed up the planning of pilot vacations. >> what? >> angry customers are taking to social media to complain and demand the airline publish a full list of the flights it plans to cancel. shares are down more than -- >> they're going to cancel them and they haven't told everybody which ones they're canceling yet? >> exactly. >> that's a little messed up. in the meantime, toys "r" us could be headed for bankruptcy before the holiday shopping season the retailer could file for chapter 11 in the next several weeks. the company's suppliers are

behind the move. reports say they are not shipping items unless they are paid in cash toys "r" us has most of its items for the holidays restocking could be a problem. slack bringing in fresh new cash from investors. company raising another quarter of a billion thanks to an injection from soft bank it's valued at $5.1 billion. slack says it will help it run as a cash generating company and reduce its dependence on outside financing. coming up, make sure you get the memo john hope bryant is here with a look at his new book five rules for economic liberation let's take a quick check on what's been happening in the european markets they've been higher this morning as well. green arrows across the board. stick around, you are watching quk x"ig he cc.

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welcome back to "squawk box", everybody. we've been watching the u.s. equity futures and they've been higher this morning after the gains we saw last week you may expect to see a pull back that's not happening this morning. dow futures up by 58 points. dow futures up by 4 and a half and the nasdaq up by 15. dollar index actually picked up a little bit of ground last

week this morning it's down against the euro at 1.196. it's up against the yen at 1.1120 the memo, john hope bryant hopes that achieving economic liberation is five steps away. he joins us now right on set good morning to you, john hope bryant chairman of operation hope you talk about combatting this idea of meritocricy. you think there isn't one out there. >> i think that there is deep aspiration but i think it has some deep and very strong headwinds. let's look at manhattan right now. the five boroughs. we did some research on fico credit scores yesterday and we found that while about 40% of african-americans in all five boroughs have a credit score of below 620, about 65%, almost 70%

of whites have a credit score of 740. stop right there you can't access the credit markets. i don't care how bright you are, how brilliant you are, amazing you are, you cannot get a loan for a home loan, small business loan you cannot access the credit market at 620, you just can't. the company -- just nunled in the head poverty has nothing to do with money. beyond a roof over your head and the little animal that becky -- really wealth has to do and poverty with your mindset. the book is about getting your

mind right because when you believe you can and you believe you can't, you're right. i think -- >> part of this is not just your mindset. part of it is getting that credit score >> which has to do with your mindset. >> you're not contending that the credit score is somehow because -- it's somehow associated directly with race itself you're saying it has to do with the mindset. >> correct if you went through -- this is not a racial conversation. >> no, no. >> if you are african-american and you went through 350 years of slavery and 100 years of jim crow that ended in 1979, 1870, and you were told you weren't -- it's a good sense that you are clinically undiagnosed depressed, and you don't feel good about yourself. you're not going to be able to come in here and do this show if you don't have confidence. >> you can fix everything you want to or try to in urban schoolings, but until you

address sort of that original sin right there, because the kids are going to go home and if they're not feeling good about themselves and if this is the way it is surrounding them, you got to get around that i know exactly what you are saying >> i'll go one step further. if you hang around nine broke people, you'll be the tenth. what's your environment? i mean, what is your environment? environment is everything, right? >> how do you change that with a book, though, with a memo? >> by the way, this is not a black people's book. my rural white friends have the same exact problem as my black and brown urban friends. that's one of the reasons we're in this upheaval right now in this country it's not a ph.d. answer. it's a p.h.-do answer. coming back to abraham lincoln's bank we decided, as you know, to pick that up. came on the show and announced

two and a half years ago we opened our 100th last week with fulton financial in baltimore. >> these are operations inside banks that are helping people with their credit. >> to raise them to 700 because nothing changes your life more than god or love than moving your credit score 120 points and we're moving credit scores 120 points we are seeing transformations in the way people see their life. >> you want who reading this book this is a memo to people who didn't get the memo. >> this is the invisible class forget race. whether you are black, white, red, brown, yellow, you want to see more green if you want to live in new york city, and you have too much month at the end of your money, you need to read the book. if you are middle class ask struggling, and you have two parents running around working and you are still arguing with each other, you need to read this book. if you are talking about divorce from your husband and your wife and really the root cause is money, you need to read this book certainly if you are struggling

and poor in this country, black, white, or whatever, you need to read this book literally 80% on the people on the planet never got the memo. >> okay. the memo that's the name of the book. john hope brian, thank you for coming in. >> thank you >> all right let's take a look at the futures this morning once again. wea we've been watching, and you can they have been higher this morning. last week the dow was up by 2.2% for the would wreck the nasdaq up by 1.4% this morning you're going to see the dow futures up by 57 points. s&p futures up by just over 4.5. the nasdaq up by about 14. we've been watching some of the other markets, and oil prices last week were up by about $2.41. first time we had crossed above $50 in over a month. we saw a technical analyst earlier this morning who said katie stockton said that's the type of thing you see momentum like that. she wouldn't be surprised if we continue to push higher, if you are then looking at a range all

the way up to the high 50s where, right now wti, $49.80 >> will you get rid of that disgusting -- >> want to show that >> that's not going to turn into a butterfly. >> he was talking about when we walked in with the book, there was a little caterpillar >> it's a moth caterpillar it's not a nice butterfly caterpillar. it's going to eat your clothes >> he never got the memo, man. >> it's important. i'm saving it. >> we're supposed to protect every bacteria too >> i'm not going to squish it. he is a cute little caterpillar. >> maybe there's a nice fungus that's going to go into my fingernails. >> not everything is nice. that thing is going to turn into a moth get rid of that thipg. we're not buddhists here >> all right take a quick look before we go at the dollar boards dollar about $1.19 or so the pound was pretty strong. $1.35. i thought we were going to be at parody i guess that's not going to happen finally, the ten-year had a big

backup in yields in recent sessions i don't know what that means we don't need a flatter yield curve. maybe it will help the banks a little 221 is where we are right now. coming up, this morning's top stories. plus, president trump is going to address world leaders at the u.n. this week north korea will be front and center we're going to talk with former -- smash that thing >> no. >> we're going to talk with former undersecretary of state for political affairs, ambassador nick burns. stay tuned you're watching "squawk box" on cnbc

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>> stocks push higher around the world following another record week on wall street. monday, market setup as investors get ready for a two-day fed meeting.

will silicon valley lead us to our doom a rise of big technology and our compensated ens on companies like amazon and facebook are changing how we live our lives, and according to the author of "world without mind" it's for the worse. he is here to explain. the 2017 emmys the winners that scored big at last night's awards show the second hour of "squawk box" begins right now >> we're live at the nasdaq. becky quick and joe kernan the futures at this hour dow looks like we open up higher by 56 points higher right now. nasdaq up as well. 13 points higher the s&p 50000 looking to open about 4.5 points higher. we have a couple of headlines to tell you about at this hour. it is a very busy week ahead on

wall street today. the national association of home builders puts out its monthly sentiment survey tomorrow. look for august housing starts and import prices. the fed begins its two-day meeting. that happens on wednesday. yet, existing home sales and the fed's decision along with latest economic forecasts and janet yellen's news conference then coming up on thursday, you got to look for weekly jobless claims and the filly fed survey. several notable names reporting earnings this week, including adobe systems, fedex joe and our favorite bed, bath, and beyond, and then general mills. we also have a big deal to tell you about this morning northrop drummond with owner bittal north paying $7.8 billion. northrop says he expects the deal to close in the first half of the year. also workplace messaging app slack bringing in some fresh new cash from investors. this time from soft bank the company raising another quarter of a billion dollars, thanks to that injection from the company now valued at $5.1

billion. >> supposed to rain tomorrow if you want to go. bed, bath, and beyond. haven't been in a while. >> the traffic given the city, given this is u.n. week, i think is going to be complicated even the subways are going to be a little much. >> it's going to be hard to get a cab with all the things that you guys will be hauling back. >> what are we going to do >> just browse where is the nearest one we usually go out. >> down in chelsea >> okay. >> i think it's about 17th or 18th street on sixth avenue. >> you knew that >> pack an overnight case. come out to jersey with me, and we'll go tomorrow supposed to rain all day >> okay. >> going to golf, but -- anyway, president trump is in -- we were just talking about this. that's why there's going to be traffic. -- is in new york this week for the u.n. general assembly. he is going to address the group tomorrow we probably will hear about north korea. large focus of the president's speech in an interview yesterday on cnn, u.n. ambassador nikki

haley emphasized that president trump meant what he said when he promised that a provocation by north korea would be met with fire and fury. >> we were being responsible by trying to use every diplomatic possibility that we could possibly do. we have pretty much exhausted all the things that we could do at the security council at this point. >> the u.n. security council adopted a new round of sanctions on north korea, as you know, last week. in response to the nation's latest nuclear test and icbm firing >> global political news, japanese prime minister shinzo abe is reportedly considering calling for a snap election as soon as next month the move comes as abe's approval rating has recovered it's been held by jitters over north korea's missile and nuclear tests and disarray in japan's main opposition party. reports say that abe has told members of his liberal democratic party that he may dissolve the lower house of

parliament for a snap poll after the legislature meets at the end of september in an op ed in today's "new york times", abe says that the international community must remain united and enforce sanctions against north korea. british prime minister theresa may traveling to canada today to discuss plans for a post-brexit trade deal she's also going to be in new york as well to speak to the u.n. general assembly. in an interview on abc may said she has no doubt brexit will happen >> we're in the negotiations, and we're looking at the deal that we can do, the way that we can come to an agreement with the e.u. for the future, for our future relationship in trading terms, but what this enables us to do is actually by having our own control is do our own trade deals. hence, we're talking to the united states. >> as for her relationship with president trump, theresa may says they will work very well together, although she disagreed with some of his positions, including pulling out of the paris climate accord

jimmy choo shareholders will vote on an acquisition by michael kors it was announced in july another record high for the dow on friday as the index had its best week since last december. it's indicated higher today. brad mcmillan shares his market views. he is the chief investment officer at commonwealth financial network. $114 billion under management. not everyone is familiar with commonwealth sounds like it might be in massachusetts, brad. you have independent brokers that it's all part of a network. is that how it works >> we work with independent financial advisors across the country. in other words, if you are looking for financial advice, you can go to the company store or to somebody who has absolutely no interest except your own at heart. those are the folks we work with independence is key. >> you're the chief investment officer. what does that mean? how do you get the word out for what you think these independent guys should be doing what do you do send out a newsletter, conference call?

what do you do >> we do everything they want. because they're independent, because they can choose who to work with, we need to work with them in whatever way works best for them some folks want to actually read stuff. others want to talk to people. we can do that >> what are you telling them right now? stay long? >> i'm telling them right now -- i won't say there's nothing to worry about. there's lots to worry about, but there's nothing to act on, and the reason for that is we know what causes -- >> in terms of selling, serious bear markets, exactly. >> do not sell right now a recession is a good ways away. that's the engine for bear markets. a lot of worry not a lot of need to act >> you think that there's already down side risk that's reflected in the markets where would we be if that wasn't reflected in the markets we would be even higher? >> absolutely right. if you think about it, in the past couple of weeks, we've had north korea launching ballistic missiles over japan. we've had a hydrogen bomb going off. we've had the two worst storms in u.s. history, and we're still at all-time highs. >> i don't think it was a hydrogen bomb.

i think it was a lot more than the last one, but i still don't think they've made it to the fusion >> you might be right. enhanced fission hydrog hydrogen it's a big deal. >> it's ten times the size of russia >> massive earthquake felt on the scale. >> we're talking about semantics at this point. how about with your 1,600 guys you are advising, your favorite investment is bit coin for them? >> i've been writing about bit coin, and i created an ward just for fun. >> the bubbly award. this is for jamie dimon too, right? >> sometimes you get it right. >> everything that goes with the bit coin, the scarcity, okay, there is scarcity for bit coins, but there's 700 other crypto currencies out there

there's no scarcity of crypto currencies in general. it requires regularity blessing. >> do you have investors that are in bit coin like a substantial number of your clients are in bit coin? >> we do not there's only a handful, and in all of those cases, they're where clients individually wanted to get in and made that decision you know, we're not recommending it we don't take a position either way. we just want to be able to understand this. >> you do facilitate the trade if people want to do it? >> no, actually, we don't. we don't have any products other than i think it's an etf that invests. again, that's currently trading at some ridiculous premium underlying asset value we point that out too. >> if 2017, if we continue to see -- it's 2017 >> it is >> if we continue to see upward gains this year, it's going to be a much better year than anyone thought double digits. >> yes >> what about 2018 you say there's no recession in sight. are you going to give me the pat answer mid to high single digits

next year? that's what everyone always says they're usually, i don't know, just -- sell side guys that just sort of want to make sure they don't say anything really, really wrong, but what about next year? double digit gains could it be a down year? mid single digits. what are you saying? >> i've been saying for about the past year, this year looks a lot like 1999 to me. you can draw your own conclusions from that. >> i don't like to hear that >> well, you know, if you look at the -- if you look at the underlying economics, if you look at the market, the similarities are remarkable. >> there's no -- you know, a huge cadre of the most popular stocks are not trading at infinity times earnings like they were in 1999. there were no earnings >> bang? the bang stocks -- >> i'm not saying they're fairly valued, but they're real companies with real revenue and real earnings per share, which we didn't have in 1999 >> is it different you're saying it's different this time? >> no, all i'm saying in terms of whether technology is trading on infinity times earnings

okay so now you just told me don't worry about a recession. stay long, but you just told me the entire fang universe is the same as 1999 which is it? >> it's both at some point things are going to roll over the question is when is that going to happen? if you look at every single bear market since the big one back in 1929, the eighth that have been longlasting have all coincided with recessions. they've all coincided with the yield curve rolling over they've all coincided -- >> so you're telling me no recession in sight, but the fang stocks are, what, selling for twice as much as they should >> it doesn't -- i can't give you a fair value because it depends on the market. you know, i give the fang stocks as an example. when you have a handful of stocks, the nifty 50, for example, the tech sector in general, amazon was a company that was considered richly valued back in -- >> it's always been considered >> that's not to say individual companies won't power through,

but if you look at the market as a whole, you have to be cautious it's not always a good time to be in the market >> just for the people that you are advising then, you are telling them for the short-term it's good, but for the longer term, look out >> in the long -- in the longer term, you should take as much risk as you want now you should be aware that at some point the market is going to pull back. >> what are the warnings signs you tell them to watch for when should they get out >> actually, i track on my blog every month of the economic risks to the market risks. the best signal that i have found is either the 200 day and the 400 day moving averages for the s&p. this isn't a secret. people have been talking about this for a long time it's remarkable if you look at it, it's a wonderful signal. 200 day gives false alarms the 400 day is only gichk two false alarms in the past 35 years. you know, there are ways to say, yes, the market is starting to roll over. >> i mean, are you suggesting we

raise any cash prior to the end of the world on september 23rd or maybe go to 10% to 20% -- raise a little cash before the end of the world, or not >> if you are not feeling comfortable with where your risk is at, i'm not against holding cash >> september 23rd. the world is supposed to end how should we go into that >> gold, cash, bit coin? what do we do to protect ourselves? on a more serious question, what's the true it down side in your mind right now? >> to get to fair value, the market is probably going to drop -- would have to drop somewhere between 30% and 40%. >> 30% and 40% >> to get to fair value based on historical standards >> you are reading about it right now. >> yeah. >> i'm going to raise a little cash before the 23rd just in case just in case >> what percentage of your assets would you put in cash right now? >> it depends on how -- it depends on the client. >> we have about ten different signals on brad of what to do

here >> you can talk to us. right now i think you should be allocated with your risk tolerance. at some point in the future, i don't know when it's going to be, i think you should probably dial back a little bit i do a monthly update. you can see that on the monthly update >> all right, gra great. thank you. >> thank you, brad >> appreciate it coming up, when we return, escalating tension on north korea's nuclear and missile programs former undersecretary of state political affairs ambassador nick burns is going to join us avenue the break, and then, later, is big tech bad for the economy? our privacy and democracy? a new book focussing on four major tech players who amassed so much power that they are transforming our lives the authors of world without mind will join us in just a bit to explain stay tuned you're watching ""squawk box"" right here on cnbc

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>> rocket man, probably not the best thing to say, even to a brugts leader like kim jong un he accused the south koreans of appeasement. threatening nuclear war. he his administration, mattis, tillerson, have been measured, very successful in trying to get countries on board with what we're doing, but the president's remarks tend to divide people. >> is the threat of military force an option right now?

i don't think the idea that the united states can use military force offensively to take out kim jong un, that's not realistic given the catastrophic threat to 30 million civilians below the demilitarized zone i don't see that >> about what you said about sanctions, senator lindsey graham saying that north korea doesn't care about sanctions, and the only way to get their attention is to threaten them with military action we're not going to take offensive action, where clearly, according to secretary mattis, on a diplomatic track, which i think is where we should be. i don't believe that kim jong un feared an offensive from the united states. >> what is his intention then when he does these demonstrations when he shows and tests these

missiles at some level he is trying to provoke something, no? >> well, it's interesting. kim jong un issued a statement on saturday after their latest missile test, and he said we're trying to achieve evening lib yum, and frankly, it might be the only honest thing he has said in his entire career as leader of north korea. they are -- they're trying to achieve some kind of strategic stability with the united states where they -- we can't threaten them the president is here in new york, and so many other leaders are here as well is there a dealto be done behind the scenes? >> i don't think so. this is going to be a slow moving crisis. there's no short-term fix. what you have are these very unsatisfactory sanctions they're not strong enough to convince him to give up his nuclear program.

at some point if if the chinese engaged much more strongly in the sanctions, this he might be enough to drive them towards kim jong un. they fear more a collapse of north korea because of the refugees into their country, and they don't want to see a united korean peninsula that is democratic and aligned with the u.s. the problem that we've got is not -- it's not president trump's fault that every american president has dealt with china is angry at north korea, but not sufficiently angry to do what they should do. >> there's no diplomatic solution if you were coming to new york this week and you were president trump, what would you be doing >> well, i think there's a -- i would be aiming at the following. try to convince the countries

with capacity -- china, japan, south korea, the europeans, india -- to engage in stronger economic sanctions to try to get to negotiations to try to produce an unsatisfactory field. i believe that's where the administration is heading, and there are rationale and right to head there the idea that you could actually resolve the crisis, not this week, not this year. >> okay. ambassador burns, we always appreciate your perspective. thanks for joining us this morning. >> thank you >> you bet when we return, a big night for the hand maid's tale at the emmy awards. the details after the break. later, the fed in foek as we get ready for a two-day policy meeting. closer look at what investors will need wchtoat that and much more of what has been driving the markets is straight ahead "squawk box" will be right back. at fidelity, trades are now just $4.95.

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>> the hand maid's tale -- that was the first time that a streaming service won the tv's

top prize. let's pool our resources here. it's like acres and acres of a horse ranch. johnny depp having trouble as his kentucky horse farm failed to sell at auction after bidding was too low. the property was litsed for $2. million. look at this place the top bid was only $1.4 million. have they done a green acres 2 me and you moving there. i'm telling you. we've got to bring a camera crew >> i think you would prefer to stay at blackberry farms once a year >> you know, that's the elitist idea of roughing it, isn't it? going down to -- >> if that's where you're going. >> let's just pull up stakes and

go let's just go. >> can we move the show there? becky, you coming? >> i'll anchor from back here. >> we need a girl. i said in the past you kind of resemble ed. he was a handsome guy. do you remember? huh? got to go. >> coming up, a dollar and the fed. investors will be watching this week's policy meeting and its affect on the greenback. that's near a seven-week high against the yen. we have more on what's driving currencies after the break, and as we head to the break, take a look at u.s. equity futures. if you all want to chip in for joe's trip to kentucky, we can all organize that. dow looks like it would open up about 47 points. we're back in a moment

>> we're live at the nasdaq market site? times square among the stories front and center, ipo news for you roku claiming the price 15.7 million shares between $12 and $14 per share. the company offering nine million shares they'll be selling -- that's with selling stockholders offering an additional $6.7 million. also, at&t reportedly considering divesting its latin american tv assets the assets could be worth up to $8 billion also, in other global corporate news, qatar says it will buy 24 typhoon jets from the u.k.'s bae systems. terms of that deal, though, not immediately known. >> let's talk currencies joining us right now is nick beenenbrook. he is managing director and head of currency strategy at wells fargo, and nick, thanks for being here today >> good morning. >> last week we actually saw the dollar pick up a little bit of steam. the dollar index was a little stronger, but you say that when it comes to the bull market for the euro, things aren't over yet.

>> if you look at the federal reserve as along the path of this monetary tightening, but the european central bank hasn't started. if you look out a month, three months, a year, so on and so forth, the european central bank has a lot of catch-up to do. it will help the your coover a long time. >> it's been interesting watching some of the signals from the ecb mario draghi at this last meeting commented a little bit about the strength of the euro i was a little surprised by the reaction in the markets because immediately when he said they would be watching currency moves as a future issue, the euro still picked up ground as it was. it surprised me that signaling i thought maybe the market would take it a little differently >> yes i think the market was looking for more forceful words from the eb president for example, if you go back to jean claude, he talked about the euro and the moves being brutal when it got to 130 i feel that when you look at what mr. draghi said recently, his words were balanced enough that there was not enough to scare the sentiment off in terms of stronger euro

>> what has the stronger euro meant for the economy there? has it been a huge headwind or not? >> not so far. i mean, if you look at the gdp growth in europe, it's running just above the 2%. it's 2.3%. it's close to the u.s., which comes back to what i was saying before arguably the u.s. economy is looking more normal. the european economy is looking more normal. what doesn't look normal in either case is just the monetary policy, although we're starting to get closer in the u.s >> it's still the idea of getting back to normal on any front even here in the united states with the fed still seems like it's such a long way off. >> well, yes i guess one has to be careful. you know, i guess the question is which is the least abnormal >> right >> certainly nobody knows what quite a famous phrase, what the new normal is. certainly with the european central bank, the interest rates are still negative, and let's look at the ten manufacture year bond yields. in the case of the united states they're 2.2%, which is extremely low. in the case of germany, there is

0.4% we think they're going to narrow over time. the euro will catch up and then as that happens i think we'll see a reversal in fixed income flows, and they'll be supportive of the euro. >> what do you think about the yen? the nikkei was up by 3% last week largely because of the yen's actions. >> when we look at the dollar yen exchange rates, a lot of it's got to do again with those yields there's been quite a close movement or correlation right now between u.s. treasury yields and the dollar yen exchange rate in the case of the bank of japan, they're keeping those bond yields at zero. they're not moving it comes back again to whether we see a hawkish federal reserve. things are pretty subdued and calm, and that's why we're seeing the yen doing okay against the u.s. dollar. >> you expect that the fed will move again this year, once maybe in december, or no >> well, that's a good question.

our medium term targets, we'll be at 130. the canadian dollar is another one where the central bank is raising interest rates we think that can get down to 110 to 115 that's one u.s. dollar 110 to 115. >> what if the fed is more hawkish? we see a raise in rates and maybe tougher language what would the fall-out be >> that would be quite significant. i think, you know, nothing really seems to have helped the dollar at all this year. that would be quite a surprise correction could be three, four cents. it would be notable. i think in one of your earlier segments and the equity markets was that the correction, you know >> the 3% that we saw. >> in terms of the currencies,

it's almost the same when we see sort of a dollar move up on some of the foreign currency moves down, the corrections have been very shallow, and i know overall that's what we expect to continue >> nick, thanks for coming in today. gooed to see you >> thank you >> today is national cheeseburger day >> yes >> the world might be ending on september 23rd. >> eat a cheeseburger while you can. >> every day is a national something, right andrew >> donuts day. >> i think we need -- i think i'm going to -- i had some last night. i need to honor this day >> go for it >> could be tofu burger. i think you can substitute we've had $100 cheeseburgers on this show. >> i've got to go. >> huh >> they didn't say anything to me this is you? all right. coming up, while silicon valley -- >> someone has to say it >> while silicon valley says it wants to improve the world, our next guest argues it's hurting

us our next guest, world without -- saying journalist and author eatoklin joins us for after the brk explain "squawk box" will be right back. . i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.

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welcome back to "squawk box. facebook says that it handed over new ad sales information to a special prosecutor, robert mueller, as the investigation into russia's role in the 2016 election widens. this news comes as lawmakers turn up the pressure on facebook to try and provide even more information. here's what the ranking democrat on the house intelligence committee adam schiff said over the weekend. >> we are requesting a lot more information from facebook, and we have received some information, but there are a lot of unanswered questions. frankly, i'm distressed that it has taken us this long to be informed that the russians had paid for at least $100,000 of ads designed to try to influence our electoral process. >> earlier this month facebook revealed what it is calling inauthentic russian actors buying at least $100,000 worth of ads on its site in the months leading up to the 2016 u.s. election >> our next guest warns in a new big book that big tech is bad for the economy.

our privacy and democracy. want to bring in franklin for his national correspondent for "the atlantic. now the author of "world without mind, the threat of big tech." we were talking about how the narrative around these big fang stocks, these big companies has changed really after the election what do you think has happened here >> facebook's role in the election, and i think the sense that our democratic discourse has been injured by facebook's now increasingly dominant role as a gate keeper i think starting to awaken people to the threat that companies pose these companies -- i read about google, facebook, amazon, and apple, and they're magical companies, and they've sprouted up and created all these incredible things. if we're going to talk about the dark side, they're all very

different. >> they're different and the same they're the same in that they're all trying to control networks i think idealogically there are a lot of similarities between them i mean, it's true that jeff basos is not really of silicon valley in the same sort of way that larry paige is of silicon valley, and mark zuckerberg has a set of dreams for facebook that are unique to facebook. >> to me facebook is at the top of the list simply because they stand between people and news. and information. facebook is this giant feedback loop that gives people what they want i think facebook's dominance in that role is really -- i think it imperils us as a democracy. >> let me just take the opposite side of this look, i'm part of the mainstream media. >> yes >> there is an argument to be made that it democratizes the

news the "establishment" -- >> there are two different ideas about gate keeping there there's an old -- you come from the "new york times. >> yes >> it's an old-fashioned idea that the "new york times" has a set of obligations to readers and that it tries to give them things that will be good for them ultimately. >> right >> facebook is a market that responds to what people want facebook does not make an effort to try to impose quality >> although there are people that push back about that and said, yes, they have they've gotten involved with what they allow to trend and what they don't and have these news people who have been kind of the new gate keepers. >> only -- well, first of all, a lot of this is algarhythmic. the news feed that you and i look at on a daily basis is not controlled by a human being. >> there are humans who are allowed to play around the edges. >> that is true. >> i wasn't paying that close attention. what did you say about the "new york times" again? is this without a hint of irony. say that again they try to give you things that -- >> they're gate keepers who --

they have a view of the world -- zoom it's a very difrptd view of what responsibility is >> yes >> wow >> always good for me. >> what's good for him >> what's good for me. >> that is the ultimate problem. if we told facebook and google, hey, take responsibility for what you are doing, there's some ways that they could do that that wouldn't be hard. they wouldn't be able to sell ads to people who were searching for jew hater or other racist anti-semitic terms okay fine easy problem solved. when it comes to actually improving -- taking fake news out of the system or diminishing propaganda, that's a much harder thing. it merely illustrates the power

that they have >> what's your problem with apple? >> well, apple has kraed this ecosystem, these devices which were addicted to i don't think that there's a regulatory solution to that. i don't think -- i do think that there is a cost that we pay as human beings, and we should think about it >> i lump them together with the others because they are part of this big four. >> tell me how for think about amazon amazon, you can make the argument has been very good for consumers. this is not a business that is somehow taking advantage of the customer maybe taking advantage or we'll see what happens with robots for workers and what happens to wages. that is a longer term kind of

almost question, and it's not just amazon. it will be everybody >> so with amazon, we get to this kind of core question about what exactly our attitude is towards pricing, because when it comes to pricing, amazon is amazing. there's no doubting the fact that amazon delivers the lowest prices and that they use their size in order to provide that. they actually don't even necessarily have to turn a profit in order to get those low prices i think the merger with whole foods has elicited a lot of anxiety about size, and so we're in a different sort of debate about monopoly >> amazon began as a book business, and they undercut barnes & noble when it came to pricing, and that had an affect. it didn't have the affect for readers was pretty great, but the affect for the producers

actually was a roblem. as amazon -- how does amazon maintain its low prices? it exerts pressure on its -- >> it's the story about wal-mart and anyone else that's come along. >> that's always been a story. >> here's a question how is whole foods going to work whole foods gets its food from a bunch of guys in rural pennsylvania who are growing peaches in an organic sort of way with the whole cost model that works for them. if amazon is going to start to lower prices, where does that money come from? >> they're going to have to make the supply chain more efficient, which is probably meaning to some degree squeezing some of them and also including some technology i was going to say, if jeff basoser were here right now, he would call this progress that's what he would say >> yeah. >> he would say that what you are talking about is slowing down this steady march of progress that ultimately the better view of the world is actually having robots pick the strawberries for us, because those are jobs that you wouldn't want human beings

to do. i'm not saying i gray with that argument, but that is the argument >> i half agree with it, but i also think that we're doing something -- we're in a really momentous stage of the history of the human species where we've always had tools, but right now those tools have changed they've become intellectual tools, and they're filtering our reality and shaping our reality in new and different sorts of ways as we merge with these machines, as they are now on our wrist, we wear going the glass, they're going to be implanted within us soon, we're going to start to change as human beings, and we're not just merging with machines we merge with the companies that operate these machines, and they have values,ing and they have profit motives we just have to consider the implications of these changes, and so i'm not saying that we reject the changes wholesale says, but i'm saying as a society we should actually be thoughtful about the process >> i want my sports news to be

just sports and no politics. that's all i want. i want my -- i want my music news to be about music i don't want a political commentary on every cover of "rolling stone." when i watch cnn, i want to see 24 hour news coverage. i don't want to hear what -- you are taking me to a world -- when i send my kids to college, i want them to learn -- i want them to learn content that isn't skewed by -- >> you just told me it's okay for the "new york times" to tell me how to think about -- >> they know your mind through the data, and they give you what you want >> actually, i'm not >> god bless you then. when you are in facebook and you are in facebook world, you are getting what you want. the filter bubble is exactly -- >> aren't we going the -- that's why espn is having problems right now. just -- can i have sports scores and not have a political

commentary on -- >> that's -- just i think that's a separate -- >> he just told me that facebook doesn't apply to -- the "new york times" tries to do what's right and tell me what i'm supposed to"new york times" is a real news organization relative to people legitimately putting out legit fake news. >> i don't want someone to decide what's good for me to give me and to spoon feed me what they think is good to me, which is -- >> the question is if people are truly lying and intentionally lying, right, there are people with genuine interests that are at least trying, and then there are people who are literally trying to do something that ultimately they know is wrong. that's a whole different story >> joseph, you are always going to be -- there's always going to be a gate keeper who is going to be trying to lead you in a direction and trying to shape your view in some way, shape, or form >> i question whether people acknowledge that power >> i understand that, but instead of striving for one versus striving for the other, i wish they would just strive to just the facts just give me the facts i'll decide if i want to watch

your tv. i'll decide if i want to -- i can decide not to read the "new york times." >> all right the book is called world without mind it's awesome it's provocative it will make you think go out and get it. thank you for coming this morning. appreciate it. >> you want to merge with computers and live forever >> before the 23rd of september. >> when we come back -- >> i'm buying puts >> stocks to watch ahead of the open on wall street. then in the next hour the markets basically ignoring the latest north korean missile test a terrorist attack and hurricane. why? we will take a look at investor sentiment and what is really driving this market. that's coming up of course, this morning futures pointing to a higher open once again. dow futures indicated up by close to 50 points s&p futures up by 3.5. the nasdaq up by 10.5. "squawk box" will be right back. , causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...

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. >> northrop drummond buying orb orbital. the deal was announced in the last hour, and northrop will pay $7.8 billion >> caterpillar has been upgraded to buy from neutral at ubs the firm sees the earning cycle continuing driving up margins and profits higher and the price target was increased to 140 from 116. when did that happen look at that >> yeah. >> holy smokes applied materials upgraded outperform from sector perform at rbc capital

the analyst sites revenue and earnings exexpansion despite cyclical concerns. the price from 55 to 48. finish line downgraded from neutral at piper firm points to risks to third quarter earnings to above average exposure to hurricanes harvey and irma. ryanair says it will cancel 40 to 50 flights every day due to a scheduling airline the budget airline says it messed up the planning of pilot vacations. angry customers are taking to social media to complain, demanding that the airline publish a full list of the flights that it plans to cancel. shares are down more than 3% in europe today remember caterpillar had bought the mining company and doubled down on that and went down to 75 >> we had paul ryan on our air the day that happened. >> we went -- they were in some dire position. remember doug would come on and say, yeah, that wasn't the greatest time. >> still waiting it's the global rebound, right >> that's what i mean. >> is that not what that chart

just showed you? it was global economic -- >> yes >> it was no doubt copper. everything >> there it is >> yeah. >> all right we can also tell you about toys "r" us the company could be heading for bankruptcy the "wall street journal" reports that the retailer could be filing for chapter 11 just in the next several weeks the company's suppliers are behind the move. reports say that they are not shipping items unless they are paid in cash toys "r" us has most of its merchandise for the holidays, but restocking items could pose a problem. "it" continues to kill it at the box office warner brothers film based on the stephen king novel took in another $120 million worldwide over the weekend the r-rated horror flick has already grossed more than $218 million domestically since its release. the highest earning september movie ever "it" the record run is welcome news for hollywood which just suffered its worst summer movie

season in over a decade, and i guess "mother" is not doing so well >> no. you know, what's amazing about this, by the way, only cost them $35 million to produce this film they're going to make a small fortune, and i think it also suggests for all of those people complaining that somehow nobody is going to the movies because somehow technology, it's because there are no good movies this is a good movie coming up when we return, equifax under fire suing the credit -- carson block suing the credit reporting company he will join us to talk about that big lawsuit as we head to a break, take a look at futures. dow looks like it will open up about 54 points higher s&p 500 autoupots squawk returns in a moment

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>> new this morning a defense deal northrop drummond -- plus, a big night for tv >> the emmy goes to the hand maid's tale. >> the streaming companies that scored the biggest we're going to tell you which

platform made history as the final hour of "squawk box" begins right now ♪ >> live from the most powerful city in the world -- >> good morning. welcome back to "squawk box" here on cnbc >> we're at 55 points. the nasdaq indicated up 12 s&p indicated up four points at this hour. in europe similar situation in europe and asia. at least early on. all green across the board in the european markets check out the ten-year, which is seeing the yield back up above 220. now 221.5.

>> here's what's making headlines this hour. a deal in the defense sector $134 it and $50 a share. it's valued at $7.8 billion in cash plus, the assumption of $1.4 billion in net debt. the ceo of northrop drummond says that the acquisition will help the company amp up competition in critical global security domains check it out orbital atk up chinese authorities are reportedly moving towards a broad clampdown on bit coin trading. according to the "wall street journal" regulators have decide odd a comprehensive ban on channels for the buying or selling of the virtual currency. that would block mainland access to web sites of foreign bitcoin exchanges like coin base, which is based right here in the united states. bitcoin, by the way, is down significantly from its high that it reached earlier this month. i think it's down about 25%. it is officially in a bear market mcdo not's is doubling down on the organic food trend. the facebook giant's happy meal

is about to get healthier. starting in november the made for kids meals will include organic apple juice with less sugar. consumers can also opt for 1% milk or nonfat chocolate milk too. facebook says it handed over new ad sales info to special prosecutor robert mueller as an investigation into russia's role in the 2016 election widens. the news comes as lawmakers turn up the pressure on facebook to provide even more information. now, last week the social media company disclosed that it identified about 500 fake accounts with ties to russia that bought $100,000 worth of ads throughout the presidential election >> okay. short seller carson block is no stranger to calling out companies vulnerable to seeber attacks. now, he is personally suing ek fax for the massive breech that could impact as much as 143 million americans. carson block joins us on set chief investment officer and founder of muddy waters capital. well known for his short telling research, which has led to several high profile fraud

investigations and major restatements good morning >> good morning. >> this just to be clear is a personal investment -- a personal case that you are bringing >> that's correct. we're not short equifax, but this is really on my behalf since apparently my data was among that that may have been compromised. i'm suing. >> how much are you suing for? >> we've put $500,000 down as the damages. if my identity is never actually stolen, then we don't know really --

>> class action attorneys are probably going to go home when every american gets a 13% check. they'll have made money, and equifax and individuals responsible for this really won't have bled that much. if approximate every individual in america had the resources to sue or every individual that was compromised, that would be great, but what i'm also trying to do here because we're -- we didn't just name the company as a defendant. snoo these go down to midlevel people involved in security. really, the message i'm trying to send is that if you work at a company that has critical data and you are in security, and you see something that's wrong, you shouldn't turn a blind eye to it >> to me the bigger issue, though, is not going up to the midlevel guys. i agree you not to sent this message out that everybody

should take it seriously, but you should go after the guys who are indemnified, and they're setting the tone for the entire company that they were not going to take this very seriously. >> look, and they're included in this, but the reality is usually when those people get canned, they get some kind of golden parachute because the company wants to avoid the litigation and they are indemnified, and i really think that that doesn't -- just look around. we see these breaches almost every day. not of this magnitude, but significant breaches nothing has changed despite the class action lawsuit >> let me ask you, you say nothing has changed. where does the liability begin and end for a company when it comes to your data, both in terms of if they do all the right things let's say -- i'm not saying they did, but let's say they did all of the right things, and they were still hacked. do they still have the same liability? >> well, so from a legal perspective, this is an evolving area i mean, my suit is a negligent

suit, which basically in order for me to win, i'm going to have to show that they didn't do what they should have done. if a company did what it should have done, then it's not going to be held liable ultimately, but one of my biggest problems with the way that cyber security works and it's analagous to my issues with accounting and just so much of our society, is that this is all done in -- these are tick the box exercises well, you know, we hired such and such consultant and, you know, we're conforming with iso, whatever that is form over substance. that's what people have to really understand here is that forget the form. focus on the substance and just there are not enough companies or government agencies doing that >> talking about government agencies do you think that these three credit rating agencies since there really are only three should be regulated in a more meaningful way >> they've been pretty good at beating back regulation. >> right >> it's hard to see what the answer for cyber security is because the federal government

does not usually have the best people who could set those standards. not what we're doing in this case, but what we were the first ones to do, is effectively to regulate to the market i think at the end of the day what's going to change the behavior the most for public companies is when ceos and members of the boards of directors, when their stock prices go down, and they personally lose money. >> here's the question, though talking about market regulating itself what does it say about the fact that you are bringing this lawsuit personally, but not shorting this stock? >> well, it says that i didn't try to short it soon enough. the reason i'm not shorting the stock is because there's so much that we don't know about how this is going to play out. from a legal perspective, i don't know what the liability is >> what it suggests is you don't feel confident that the market is going to punish this company well enough. >> i don't know that it will

it will only punish the company well enough if the liabilities from the lawsuits are so massive or if there's a wholesale change one of the things i don't think anybody is talking about yet is what will this do in the very short to medium term in approximate consumer credit? it sounds like about 75% of americans' credit files have been compromised the odds are if somebody tries to open up a macy's charge card, the odds today are that that data has been compromised. >> this is going to all get slowed down. you think this could have a true ripple effect through the economy? >> it is really too early to say. i mean, i think there are potentially profound implications from this, but it just depends on how -- it depends on what -- >> you haven't done -- >> you are going to say that on live tv? >> well, yes i guess i was, you know -- i have just said it, but, no, i'm going to do it, but it's really -- it's -- you have to do it with every bureau now >> it's such an incredible

morace >> is lifelong a public company? >> no, they were acquired by one of the -- by equifax, by one of the ratings agencies actually, 200,000 credit card numbers were compromised last year because of the hack of lifelong >> so if you signed up for the service, you actually were putting yourself in a position to be more likely to have been hacked >> i was watching infomercials for lifelong over the weekend thinking of this equifax situation. i didn't realize this. >> brought to you by equifaequi. >> really? >> they happen to be on cnbc >> sometimes it's like when you are getting detailed tests for lumps, and then they find something. it's a false positive. i don't know if you should do anything you know what i mean in trying could deal with your problems, you end up causing the problem. then i feel like an ostrich if i

don't worry about identity theft. >> lifelong had been a popular short and just goes to show you how painful it's been for short seller because it was acquired, but it had been a popular short because part of the thesis was that what they're selling is not actually that beneficial it's more for people that were uninformed about the fact that they can get their own credit reports for free, and they can freeze their credit. yeah it's really difficult. >> carson, thank you for coming in >> thank you >> this is fascinating we look forward to getting an update as your lawsuit continues. you won't join any of the class actions, right >> no. >> your plan is to go all the way independently? >> i would be very interested in a selgsment where people are held accountable and can understand who didn't do or who did what and understand they've been held accountable, ie fire and where money is donated to one of these organizations that

helps people prepare their credit >> before we let you go, do you buy the argument made by lifelong -- not lifelong economictives, equifax executives, rather, that some of the trading that took place was all a coincidence. >> it's always a coincidence sure >> i think that's the answer okay appreciate it. thank you. >> thank you when we come back, tensions remain high with north korea, but the markets are pretty calm. what are investors worried about? we're going to get a check on sentiment right after this plus, if you went to bed early, you missed a few streaming milestones at the emmys. a rundown of the winners and losers coming up stay tuned u yoare watching "squawk box" here on cnbc

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york for the u.n. general assembly he will address world leaders tomorrow north korea will likely be a large focus of the president's speech in an interview with cnn, u.n. ambassador nikki haley emphasized president trump meant what he said when he promised that a provocation by north

korea would be met with, in his words, fire and fury >> we were being responsible where north korea is being irresponsible and reckless we were being responsible by trying to use every diplomatic possibility that we could possibly do. we've pretty the much exhausted all the things we coulddo at the security council at this point. >> the u.n. security council adopted a new round of sanctions last week. in response to the nation's latest provocations. >> as tensions with north korea continue to escalate -- in a recent american association of individual investors survey, 41% of those polled said that north korea has little to no impact on their investing. joining us right now is the american association of individual investors vice president charles. charles, great to see you today. >> good morning. >> so it's not just north korea. we've had hurricanes impacting the entire united states huge swaths of it. yet, when you look at your

investor surveys, their optimism is off the charts. the highest we've seen since early january. what do you think is going on? >> yeah. it's actually right about a little above average we haven't seen that much this year our average is 38.5. bullish sentiment is 41% right now. it's really the biggest jump we saw since the election i think it's a couple of things. i think we had a bounce off of the august lows. even though there's tensions with north korea it's not so much in the headlines. i think that's helping and i think investors overall we hear a lot about trump week after week in our sentiment survey when you look at it as a approval ratings, they've been trending up. at least over the short-term, some of the concerns about the presidency have diminished, but i don't think they've gone away because a lot of investors just view them as a wild card, and both sides of the spectrum >> so what are -- is that the b biggest concern that's still out there, or are there other

concerns as well too >> donald trump really seems to be the top when we ask investors what is affecting their sent mepts. we still hear a lot of investors talk about valuations. there's concerns that valuations are too high i still think there's a lot of fears that we could see a bigger pullback than what we saw in august some people are still a little frustrated with interest rates and economic growth. >> usually we look at investor sentiment as a counter indicator. something that the more optimistic people get maybe the more concerned you should really get if you are following the markets. what do you think about that >> it is, but it's really to the negative when we've looked at our numbers, looked at the analysis over the long-term, it's really when bullish sentiment gets too low or really just unusually low. in this case below 28.5% we tend to see the markets be up on average over the following six and 12-month period. it goes back to that old saying, buy when there's blood on the streets, and it's really when we see sentiment being too low that

we tend to see the markets do well not so much when sentiment is too high when optimism is too high. >> really? i think of some of the most optimistic times that we've had, and they're usually followed in pretty quick order by some sort of a crash or a major correction i mean, when you start hearing everyone on the streets talking about stocks, that tends to be an indicator that, wow, everybody is already in. >> there have been periods such as march 2000, and our survey where we saw optimism being extremely high when we looked on average, when we see bullish sent meant being more than one deviation above its average, meaning unusually high, we do tend to see underperformance for the markets, but because overall the s&p 500 tends to trend upwards, we still see gains, but gains that are less than we would normally expect if sent meant were, say, right about its average. bullish sentiment was right about its average. >> you mentioned the federal reserve. the central bank being one of the things that investors are watching what are they thinking about the central bank

>> a lot of our members are retirees, and they like to see interest rates being higher. i think the general consensus is that the federal reserve is trying to manage the economy too much, and i think they would like to see them pull back probably be more direct with interest rate hikes accident be more clear this is how we're going to raise. this is how we're going to pull back stimulus. some people, though, are concerned about interest rates being raised too quickly too high, so you do have this push and pull where some people do want higher rates normalization, and other people are concerned that the fed goes too quickly. we could have the economy slow down and possibly slip into another recession. >> all right charles, thanks for your time today. >> thank you >> okay. coming up when we return, says a new job. we'll tell you what wall coisp 's former top p u to "squawk" returns in a moment before our eyes. peng sixty to seventy million people are moving to cities every year. at pgim, we help investors see the implications

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>> he has been critical of the trump administration on twitter since his dismissal. he tells usa today that nothing is off limits on his podcast, which launches on wednesday. coming up, president trump talking about the market's record run a great deal of good things

happening for our country. jobs, stock market, all-time highs. it will be getting even better a new op ed lays out what president trump can do to prevent the next crash morgan stanley ruchir sharma, is the author, and he will join us next check out the futures which are higher again this morning. "squawk box" will be right back.

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♪ >> good morning, everybody welcome back to "squawk box" here on cnbc we are live from the nasdaq market site? it times square. among the stories front and center northrop drummond is buying orbital for $7.8 billion. here's a look at why this deal is notable morgan, good morning >> good morning, becky >> or $134.50 per share plus debt northrop expects this to be a free cash flow per share in the

first year after the acquisition closes, and that is expected to happen in the first half of 2018 we'll be hearing more at about 8:30 eastern on this announced acquisition. this coming as a bit of a surprise to the industry and the street, but analysts say it does make a lot of sense. expanding northrop's product line in areas like rocket prop you will shon, composite says and munition orbital has space contracts with the government and nasas awell as department of defense, and it's a big munition manufacturer when you talk about things like missile defense on the heels of everything going on with north korea, orbital is one of the biggest suppliers in that realm. the deal coming on the heels of the air force also choosing northrop and rival boeing to proceed with their prototypes for the minute man 3 intercontinental missile replacement. that is an $85 billion contract, and it's a contract that orbital's technology is very likely to contribute to. orbital is also a key supplier of the b-21 stealth bomber that is the super secretive next generation bomber that northrop is developing for the department

of defense right now, and that really brings into question what happens with this acquisition? on the heels of just another aerospace acquisition united technology is acquiring rockwell colli collins. this is a very regulated industry does the government move forward with letting this deal happen? in the meantime, shares of orbital, atk are up premarket. they're up about, let's see, 50 -- they're up 50% year-to-date, and they have been one of the biggest outperformers within an outperforming defense sector back to you. >> morgan, thank you very much those shares up about 20% this morning. also in our headlines, shares of caterpillar are up in the premarket trading as well. the heavy machine maker upgraded to a buy from neutral at ubs the firm says that it sees the earnings cycle continuing because of margins and earnings being higher the price target increased to $140 from $116, and that stock this morning up 1.5% to $123.20. >> first, your food now. amazon could be coming for your cable channels the tech giant just holding

tal talks. >> yawn confirming that he wants to sell his 51% stake in that magazine, which he co-founded just about 50 kbleerz ago now. he sold 49% of rolling stone to a digital music start-up back in 2013 amid the industry-wide drop in circulation his company recently sold its other making zwleenz as well us weekly. i love reading us weekly, by the way. and men's journal to the publisher of the national enquirer >> big week for the fed. we have a rate decision, and janet yellen will hold a news conference also. c northbound's senior economics reporter steve liesman is here

>> yeah. >> palpable. >> palpable. >> it's palpable >> it's huge >> the excitement. >> but not just that, joe. >> no. >> we have the fed meeting we have the press kvs. >> wow >> yeah. >> stop, stop. >> be still your beating heart >> stop. >> because the b.o.j. is meeting. you know what that stands for? >> i do. >> bank of japan >> i think bah of jap al arian >> the monetary mystery here >> you know, it's a no change. global monetary policy is on the move around the world. >> it's less easy than it was. here's what j.p. morgan wrote over the weekend

against an improving global macroeconomic back drop central bankers are now becoming concerned about the market's complace ensy and the risk this poses for financial stability. now we're going to do a really exciting survey of central banks around the world here's where people are and where markets sort of generally expect them to be. the fed at 1.16. the rate is seen rising over time the balance sheet is next month they're going to announce or at this meeting they'll announce that the balance sheet will begin to fall. ecb steady at minus 0.4, and we're expecting sometime in the next couple of months them to taper. the bankof england now everybody thinks they're going to be rising they're at a quarter point the balance sheet, though, is steady, and the bank of japan also steady at minus 0.1%. the expectation is that they're going to do some tinkering and possibly taper their balance sheet. we'll have results of the cnbc fed survey tomorrow, but just a quick look at our question on the outlook for ecb policy when will ecb announce this taper? you can see the average is december, but it looks like

the -- they're expecting that announcement, guys, to come in october about the ecb tapering next year. it's very small incremental moves, but i think what you are hearing is that it all sort of amounts to this dwra gradual tightening of policy at least not as easy as it was over time. i'm keeping track. >> we thought it might be a little faster, so by being slower, it might actually be more -- >> in other words, relative to expectations that it's going >> everybody does everything to avoid the temper tantrum they say they're thinking about doing something later. they that i, oh, now they're really thinking about it then they're thinking about making a decision. it goes on and on until finally we're at this point where maybe on wednesday or very likely on wednesday the fed is going to announce that it's going to reduce its balance sheet probably next month in a very slow, gradual announcing way

>> mark grant came on and just said it's still all about this all about this trillions, trillions, trillions. trillions here and there and trillions everywhere >> a wad of capital around the globe. >> because it's not -- >> i think they're just putting -- if we are tapering, you're still going to see other central banks continuing to add more liquidity >> it's happening more slowly. >> we're going to be reducing, but -- >> his point is what we reduce will be more than made up for. >> ecb still buying less >> right, right. >> right >> thanks, steve let's talk more about the fed. new op ed focussing on the importance of president trump's fed appointments titled what trump can do to prevent the next crash. the author of that op ed, he is the chief global strategist at morgan stanley he joins us now.

aa complete -- what do is it still possible for trump to orchestrate a soft landing from all the global accommodation >> i think that the risks are really going up. i am just thinking about this as i was writing this op ed that we're about to celebrate the 30th anniversary of the 1987 stock market crash i was just hearing the discussion earlier, but for me what really strikes me is how much the world has changed this week when the 1987 stock market crash happened, the size of the financial economy and the real economy were about the same fast forward to 30 years to date the size of the financial economy, which is the value of global stocks and bonds mainly, is 3.5 times the size of the underlying economy now really the tale wags the dog. to me this is the single biggest concern, and the central banks have got caught in this sort of loop here, which is that every

time there's a etch iter tantrum or a panic in the markets, they rush to try and prevent that from really spreading more, but all that happens is the size of the financial economy gets larger and larger, and so when the downturn comes, this time i think it could start in the markets rather than the economy. we are so conditioned to thinking that when the economy goes down, that's when the markets are go down. it's quite possible that now we have a reverse in that order, and i think that central banks are getting a bit more sensitive to this, which is that the world financial stability is increasingly creeping into the narrative. look at the minutes of the fed in the last three to four years. the word football stability would not feature ten years ago. now increasingly features in there. >> it used to be we thought there was a day of reckoning from all the accommodation during the financial crisis. that we didn't let any trades clear. we didn't flush the bottom out we didn't allow things to clear like they normally would we sort of -- we put off the

pain for a while we thought eventually that the pain would have to come and be reckoned with, but now we're beyond that. we think the fed successfully did everything, and janet yellen and we've had people come in, like, paul macaulay say that they deserve an a-plus, and they successfully saved us from the financial crisis and everything is fine. you're saying maybe we're not fine maybe the day of reckoning is still somewhere in the future. >> yes, i think so >> you know? >> at the margin as qe turns into qt next year, which is -- you do see what happens. >> they fixed everything, and they're -- >> i have been surprised how well it's worked, joe. i come on, and i report the fed's tapering >> maybe it hasn't >> and -- you know, at some point, joe, you got to call the game >> i don't think that's true, is it >> i think -- >> you get out ten years after the crisis, and you are ten years -- >> four times the size if it's four times the size of the real economy, i think it's down to 1.5 times the size, we're in for a heap of trouble

>> i think he is right i think alan greenspan has been talking about that for a while this idea that the market is now more consequential for the outlook for the economy than the economy is feeling for the market >> absolutely. >> i think that's true not entirely clear to me that that is the result of fed policy or central bank policy >> something has changed >> is it necessarily central bank policy? what evidence do you have of that >> when i think that the reaction function of the central bank is asymmetric, which is they will do anything to prevent a downturn, but they will do nothing to moderate the upturn of financial asset prices. it's the policy that we clean up the mess only after the mess occurs because there's no way for us to try and figure out as to when this is going to -- i think this thinking is changing and has to change. let's not forget that central bank thinking has changed over time i was researching this op ed it just sort of reminded me that the fed did not have inflation as part of its dual mandate until 1977 then you had the big inflation -- >> are you going to tell us what trump can do to make sure we

don't all go down in flames? can he appoint steve liesman to the fed or something what can trump do to make sure this doesn't happen? >> well, in ermz it of the did. >> i'm sure we go down in flames >> by the way, andrew, you perked up with this. you love the idea that this -- that we're four times over valued from the real economy, right? >> i'm fascinated by it. >> that's what i mean. >> it would come into your way of thinking that things are way ahead of themselves right now, right? >> possibly, but i've always been in steve's camp generally in terms of thinking that the approach -- what was the right approach i don't look at the approach as the wrong approach look, maybe they stayed there too long >> should he leak yellen in? >> it's about changing the way that the fed thinks, which is the fact that it's a dual mandate today, which is mac miez unemployment and you sort of have an inflation target, but my point to the financial stability has to be part of the fed's mandate now because the financial economy is so big. here's a chance to do that >> financial stability has been. watching the markets has been.

you're right that they've watched on the way down. it's hard to say on the way up if you look at anybody's guess as to when things are overvalued we've been hearing that for forever. >> all you have is you have leading bankers complaining that the government has their foot on their throats inhibiting the lending that's going on. what you have is this whole other set of rules that are blamed for not allowing the financial sector to grow more, and, by the way, this is coming from the president the president wants to take the foot off the throat of the banking system even more a little contradictory here. which one is it? to the pressed with the regulation or pressed with the regulation, or ease up on central bank policy. which is it? >> look at the evidence. your central banks from australia, to canada, to sweden, to norway, all have been trying to do macro -- putting regulatory measures in place to try to calm down the housing bubbles. it's not working the fact that the price of money is wrong

if interest rates are far too low, you're bound to get bubbles. that's what central banks across the world with really finding out. my sort of thing is that the regulatory stuff, all that it does, it sort of allocates capital in a distorted way you don't get enough into the banking system, but you have enough going through other channels in terms of the money flow if the price of money is too low,ing you are bound to get financial bubbles in the economy. >> the fact that asset prices have to be part of the -- we are so focused on consumer price inflation, and new consumer price inflation there's no need for tighter policy there's never been an instance of history where all asset prices have been this expensive simultaneously we've had instances in 2000 that stocks were more expensive in 2007 when housing was more expensive, but never an instance where housing stocks and bonds

have simultaneously been this expensive. i think that's the problem >> fascinating thought experiment hopefully it's only a thought experiment >> why >> that we tell trump how to save the economy that was what we kept saying did you tell us how he has to do that >> when you appoint the fed governors financial stability has to be top of mind in terms of matrix here >> i'm ready to serve. i don't think -- i would go that route because i think asset policy and asset prices and the inflation index is the wrong way to run monetary policy >> it's the longer debate. >> what last night's emmys told us about television's new world order. a rundown of the big winners we'll do that next later, gender diversity battles in silicon valley. we're going to talk to the ceo of women's world banking largest network of microfinance organizations and banks. squawk returns in just a moment.

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zbloinchs also, the snubs. julia. >> well, andrew, it was a big night for hulu assist its investment in original content really paid off. last night hulu took home five awards, including outstanding drama for hand maid's tale it was the first time a streaming company has ever taken the top drama award.

considered the most prestigious prize of the night this is after winning its first emmy's just last year. now, last night netflix brought home just four awards as one behind hulu with nods to the crown and master of none while amazon came home empty handed last night with no awards at the big show. now, hbo, as usual, still came in first place with ten wins that's despite not having "game of thrones." veep won best comedy and also earned awards for lead actress, among others also a big night for nbc, though it lost the top award for "this is us. it ended the night in second place behind hbo six awards thanks to "saturday night live" winning half of them, including for alec baldwin, as his president trump impersonation and for kate mckinnen and her portrayal of hillary clinton and jeff sessions speaking of politics, sean spicer made an appearance in steven colbert's opening number, and politics was front and center throughout his jokes and many of the acceptance speeches. back to you. >> hey, before we let you go

real quick, just wanted to touch base because you are one of our facebook experts as well facebook obviously didn't win anything during the emmys last night, but wanted to get your take on what we've heard some number of reports now over the weekend about what facebook has been doing and its involvement in this mueller investigation. >> certainly growing pressure on facebook we have representative adam schif calling on facebook to testify in front of congress a lot of questions about whether facebook is giving more to mueller and his investigation than they gave to congress a lot of growing questions i reached out to facebook. they just gave me this brief statement saying that they are providing information. we'll see if we can get more on what exactly they're providing i know there are a lot of questions about why maybe this wasn't provided earlier to congress we'll see where this all leads >> staying up late and waking up early for us >> i don't know if you went to bed. thaur for that appreciate it. three former google

employees filed a suit against the technology giant last week claiming that gender bias and pay in promotions. if the suit becomes class action, it could cover all female employees who worked at google all the way back to 2013. joining us right now to talk about this and other issues is mary ellen she's the ceo of women's world banking. she sits on the business and sustainable development commission along with jack mah and ken frazier. that group makes the business case for sustainable economic development. thanks for being here today. >> thanks for having me. >> let's talk first about what's happening at google. you've worked in a lot of different places >> these women were all making the case that men who had less or certainly equal qualifications passed them by in

terms of promotions and pay. we're all going to be watching it very carefully. i particularly find it really ironic, though, because, you know, over the years there's been a lot of research really good research showing that gender diversity and particularly women in leadership positions, women on boards, can have a dramatic impact on corporate performance. where you've seen the most impact is particularly on companies where innovation is at the core of their strategy that always seems really ironic to me that the tech sector where women are so underrepresented haven't taken advantage of that boost that gender diversity can bring. >> you know, we've seen the studies. we've heard that froror a long time, and yet, it doesn't seem that there are massive changes that are taking place as a result why do you think that is >> who knows there really is a great deal of unconscious bias i think that's one of the most frustrating things that those of us who are working in this field because we do know that the kinds of things that women bring to leadership, again, we -- for

the first time really certainly in my career we have really good evidence-based research. there's 15-year data of the s&p 1500 that shows gender diversity at the board and at corporate levels that lead to better environmental social and governance goals as well as better financial performance >> let me play devil's advocate. i have spoken with people and even seen it here where we have tried to look for more female guests it's hard sometimes to find people to fit that bill. if you are looking for programmers, i would imagine that they probably have a difficult time doing that too. why is that? it's not that women don't start off in a lot of these positions and a lot of these jobs, but sometimes they fail to make it up the rungs of the corporate hierarchy. why do you think that happens?

women leaders can -- women need to own their confidence, own their leadership and step up >> part of it is i would say women having children and getting off the track, trying to get back in can be difficult. what would you say to try and address that problem >> a lot of companies have done impressive things about both making that transition into motherhood and having kids but also reentry into companies. you've seen particularly i think in the financial services industry, industry i know best, companies have made real strides in making that easier. some of the data has shown it's not so much the taking the time offand being away, but not communicating with the woman while she's on that time away can be one of the most distancing things for her to

make it hard to come back in. >> you think there's progress that will see in the next decade >> oh, my goodness. if we don't, i'd be shock. i don't see how we can afford not too. >> thank you very much for being with us today. good to see you. when we return we'll talk to jim cramer. wel rhtac'lbeig bk. ♪ so, i was at mom and dad's and found this. cd's, baseball cards... your old magic set? and this wrestling ticket... which you still owe me for.

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let's get down to the new york stochl exchange. we got -- instead of getting to the point where we're overbought, we got past some levels that now indicate higher levels, higher price action. that's sort of counterintuitive? >> there are a lot of groups that really broke out in thursday and friday. the semi-couldn't duck torz broke out, the heavy machinery companies broke out, a lot of companies related to the hurricane harvey and hurricane irma went and just went crazy on friday. i think these are a lot of despairate groups. when you see cars, homes, rails, semis, that's a lot of groups going right and it's difficult to contain from here.

>> i didn't buy -- caterpillar at 75. >> no. what happened is they fired a lot of people then the orders came through and they're going to be used part of the rebuild. there's a lot of mining coming out -- there's a lot of good orders coming out of china but mostly what's happening is they've streamlined. inventories are low. people talk about $14 number. i've always felt if they do $10 the stock could see 150. if you got a $14 number the stock could see 180. it's great. it's such a good manufacturer that's been struggling for so long. >> does that look like a global economy chart too? >> yes. taking a lot of business away from kamatsu. the only area that's weak for them frankly is brazil. >> all right, jim, good sports

weekend. sorry about -- how about college? did you watch any of that in texas? >> i watched some of the other games. i'm on a -- >> that rutgers is -- >> college high school and pro. >> that's quite an offense rutgers has. any way, we'll see you a in a couple minutes. >> tomorrow on "squawk box," don't miss a special ierewntvi. 8:00 a.m. eastern time. we'll be right back.

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welcome back. final check on the markets. we've been watching the futures this morning and they have been higher. this comes after the way dow was up by 2.2% last week. nasdaq was up 1.4%. this morning the futures are indicated higher but off the highs of the morning. we've been looking at the dow futures up by almost 60 points now they're up by 38. s&p 500 futures up by 2 and the ten yield note the note is back up 2.2%. and the dollar which overall the dollar index picked up ground last week too.

the dollar's down against the euro at 119.6. dollar yen is 111.42. >> national cheeseburger day. >> you have burgers again tonight? >> urge you to celebrate it in your own way, whatever that might be, but that gives me a pretty good excuse. got some pickles yesterday, spicy pickles, really, really good. i love food. make sure you join us tomorrow "squawk on the street" is next. good monday morning. welcome to "squawk on the street." futures are positive after the dow's best week of the year and the s&p crossing 2,500 on friday. got some defense sector m & a. the president starts four days at the u.n. europe is up and the ten years around