get your trades set up the 23rd is supposed by theend of the world "squawk box" begins now good morning welcome to "squawk box" on cnbc. we're live at the nasdaq market site in times square i'm andrew ross sorkin, along with joe kernen and melissa lee. north korea's foreign minister threatening to detonate a hyd hydrogen bomb over the pacific ocean. this hours after the u.s. imposed the toughest sanctions yet on north korea china also stepping up sanctions against north korea. the white house saying the peoples bank of china has now ordered all chinese banks to stop doing business with that nation a lot more on the north korea threat in just a couple of minutes. separately, news breaking a few hours ago that iran's president said his country will strengthen

its missile capability without seeking permission from the international community. one report says the country unveiled a new ballistic missile capable of carrying several warheads a live report coming up in a moment. joining us now -- let's do it right now, joining us on the squa "squawk" news line from tehran is ali arouzi. good morning >> reporter: good morning. president rouhani after returning from the u.n. general assembly attended a massive military parade in tehran where he said iran will strengthen its missile capabilities they won't seek permission from any country to do so that is a reference to u.s. demands that iran curb its missile program and to reinforce the statement the revolutionary guard during that military parade unveiled a new ballistic missile, which they say has a range of 1,200 miles it's capable of carrying multiple warheads. as you guys are well aware,

president trump has accused iran of playing a destabilizing role in the region. but rouhani in his speech this morning said iran is playing a key role of restoring peace and stability in the region and said iran will always defend downtrodden people of yemen, palestine whether the u.s. likes it or not. he went to slam washington in statements at the u.n. general e assembly by saying the u.s. has singled itself out with the statements i think we can expect more tension going forward between iran and america as the united states tries to renegotiate the

nuclear deal i can tell you there's no appetite in iran whatsoever to renegotiate the nuclear deal in any form i think a lot of tension to watch out for between iran and america again. back to you. >> we'll leave it there, ali thank you for that report. let's get a check on the markets as geopolitical concerns display themselves and how we're trading around the world a look at u.s. equity futures, the dow snapped a nine-day winning streak it looks like it could be in positive territory today. looking up about 7 points at the open the nasdaq down about 5 1/2 points earlier this week, msci asia pacific was at a decade high in asia we saw some losses across the board down by a quarter of a percent on the nikkei, 0.8% for the hang seng shanghai down 0.15%. in europe, most indexes are up

a look at crude, wti down by 0.10%. now to the wall street agenda two economic reports to watch. manufacturing and services pmi out at 9:45 a.m. eastern time. also a lot of fed speak. we'll hear from john williams, kansas city fed president, esther george and dallas fed president robert kaplan. internationally, we'll hear from theresa may today, that's later in the morning she's in italy she will deliver a major brexit speech and try to rescue those stalled brexit talks and try to convince the eu she's ready to cut a fair divorce deal. that speech is expected just after the end of squawk, about 9:15 eastern germany heads to the polls on sunday for a nationwide election to decide whether angle merkel

has another four years in power. right now merkel is leading in the polls. we'll get the first results sunday around noon eastern also on the agenda, round three of nafta negotiations gets underway in canada we'll hear much more about the talks from the commerce secretary, wilbur ross, who will join us on set at 7:00 a.m. eastern. back to the broader markets. here on set is steve wood from russell investments, and bob michelle from jpmorgan asset management great to have you with us. steve, starting off with you where are we in this market? especially as we're seeing some rotation, perhaps cracks in the rally. we have apple, for instance, down to seven-week lows that had been a leader in technology, which was a leader for the markets. >> that concentration in market performance has been something we've been watching. we've been thinking for a good while that valuations are the critical issue in u.s. markets

fundamentals look good the earnings are great probably falling back to not bad. moving into the fourth quarter, we think valuations become more of a headwind in the u.s for some time we've been advising clients to go more global, multi asset and use the assets in the u.s. to diversify globally, do the basic planning investing they should have decision doing >> do rising rates influence that view or did you have that prior to the fed meeting we had it prior to the fed meeting. the fed always educates everybody on everything. i think the policy information we got this week from the federal reserve in terms of the options they got iss will stay u this is a global event so this could investigate momentum in the short-term in the u.s., but it could rebalance

globally >> what does happen with rates it feels like the fed lays out its plan for rising interest rates, we see a spike in yields, then a fall back we started seeing that yesterday. >> they've been raising rate foors coupkrates for a couple of years. the ecb talking about normalizing policy i thought the fed was perfect this week. the three things i took away, they realized unconventional tools have expired get them out that's a combination of balance sheet and rates. they'll work on both of them two, that the balance sheet is not going to be an ongoing policy tool. they'll let it run in the background, let it run to a normal size, and it would be a high hurdle in their own words to dial that down. the third thing i took away, don't pay attention to the dots. the population of governors that put those dots out are going to change over the next couple of -- >> the disparity of the dots was greater than in past meetings. >> i don't even waste my time

looking at them. it was intellectually dear use, but you have seven seats being replaced who knows what they'll look like and how they'll adjust monetary policy >> thinking of u.s. companies and comps for next year, in terms of the valuation issue, how bad for those who are out there who are long and who are believers, how bad do you think it will be >> a lot of the earning strength is on base effects, a lot from energy as well we think earnings in the u.s. will come off the boil starting next quarter into the end of the year so i think the earnings environment mid single digits makes sense for 2018 e the evaluations now that we're seeing in the u.s., you are making an enemy if you overplay that if you're looking at europe, looking at emerging -- >> you have no worry if you put all your money in europe, we always say what's the phrase, we'll catch a cold if you think we're about to get

a cold, that ultimately they get the cold too >> andrew, we're seeing the complete reverse in the fixed income market. everyone is talking about international, but i'll tell you, in fixed income the capital being exported out of asia and out of europe is enormous. and it's flooding our bond markets, it's depressing real yield. everyone is coming to the u.s. in the bond market equities may be a different kettle of fish, not in bonds >> look at the european economic cycle, they are early stage, we are later innings in the u.s the european central bank will be in accommodative mode for a while. when you add up the cost benefit, going forward there's more mileage you can get out of europe but look global, look emerging, look global credit it's not just an equity play, it's a multi asset play. as the united states gets longer in the tooth this is a good opportunity to rein some of these gains and rebalance. if they had done that in the

previous decade, they would have benefitted from that disciplined strategy what if rates stay longer for longer >> i think the rate also stay lower for longer that's one of the fundamental financial rules of gravity that investors need to deal with that global strategy will have to be active and nimble. >> you're not scared there's an upside risk to that in terms of what the fed does, if there is fiscal still plus -- >> we're more concerned about the balance sheet than rates that's the liquidity that's inflating all asset prices this time next show balance sheets go from expansion to contraction. >> last word >> lower yield environment is unlikely go away we're pushing into a decade and a half of this environment >> bob, steve, thank you news just crossing the

wires. london's transport regulator says it will not renew uber's taxi license in that city. that means the ride hailing service won't be able to continue to operate in london. the regulator says uber's conduct demonstrates a lack of corporate responsibility in relation to a number of issues which have potential public security and safety issues uber has 21 days to appeal that decision but a big hit given that it really is the second largest city in the world when it comes to taxi service. huge debate in the city for a long time about what it was doing taxi drivers medallion prices in new york have gone down in london the incomes of so many taxi drivers have come down. they go through the knowledge -- i don't know if you're aware of this. >> virtually tour guides >> they spend 18 months, 3 years going around on mow pedestriaper

bikes learning the maps of everythi everything this is a win, i guess, for the taxi drivers today we'll see where this goes. >> did you read -- >> if they can't compete in london -- >> it's an important city. they have the seats that come down that face the opposite way. >> you like trix. >> right >> did you see this article here i don't know what you're referring. >> they did what you wanted, they started selling all-natural trix made of radishes, purple carrots, and tumarec, it totally bombed -- >> for coloring. >> for flavoring, too. >> ugh >> they changed it back. >> i know what you're talking about. >> they'll use red dye number 4, blue number 1, yellow 6, and

high fructose corn syrup back to the original twixt >> how do you say quinoa >> totally moving away from -- >> did you see a bowl of -- look at the difference in colors. >> i like trix >> you know, i don't know if it's going to have a delayed -- if it's going to kill me after eating those when i was a kid. i thought i was fine from those. who would put radishes, purple carrots and tumerac in a nice, sugary cereal. the pendulum is swinging back. >> why is that your cause? >> high fructose corn syrup. >> that's terrible for you you should not be advocating this. >> i know. i know i can't believe i'm still alive.

i can't believe warren buffett is alive >> did you get sleep last night? kim jong-un says deranged trump will pay dearly for threats. and political analysis from mike allen he'll join us. the executive editor of axios. "squawk box" returns in a moment ♪

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we had a war of words but also tightening economic sanctions from the u.s. side there were u.n. applied sanctions on september 11th. yesterday the united states in an executive order from trump announced tightened sanctions on its own. here are the specifics in terms of trade and financial institutions on trade it targets shipping and trade networks there's a 180-day ban on vessels and aircraft that visited north korea. bans them from visiting the united states in that time period it targets industries including construction,

industry, textiles, mining, manufacturing. it gives treasury the authority to impose sanctions on any foreign financial institution that is conducting business with north korea. and also the authority to block funds that are originating from, destined for or passing through accounts linked to north korea that is an expansive new package of authorities for the united states treasury to use against north korea. importantly, though, the u.s. government said that the chinese central bank had sent a message to chinese banks requiring them to abide by those u.n. sanctions. that could be an important area of cooperation between beijing and washington all of that frustrating to pyongyang. the inconorth korean leader iss a statement. he said on behalf of the digny

and honor of my state and people on my own, i will make the man holding the prerogative the supreme command in the u.s. pay for dearly for his speech calling for totally destroying the dprk, i will surly and definitely tame the mentally deranged u.s. dotard with fire we will see if this results in another nuclear test, missile launch or several other things we've seen >> dotard, huh >> an old and dottery person >> weak, senile. >> did you have to look that up? >> i did >> you did >> yeah. >> you knew. >> i knew it yeah >> several people in my life qualify. >> people say you work with kernen, you say -- >> no, no, no i would never say such a thing >> you think that was a -- was that translated into dotard

or -- >> i think it's a translation issue. i'm not an expert on north korea or their language, but i think it's a translation thing maybe a result of the north koreans using flowery official lank w language, that's why it gets translated into more flowery english. >> all the top stories about dotard, here's what it means business insider he wrote a peace. dota doctor, old lunatic cnn says the north korean leader choose their words carefully it is something that people did sort of have the same response >> did you see the folks at the dictionary company, i think m e miriam webster said searches for that word skyrocketed on the site we're all learning something together here. >> they have a hydrogen bomb the last one was more powerful

than the previous one. all of the fingerprints that show truly that they've mastered that technology wasn't there, i don't think. >> so the question is would -- do they have-dwlash ds- -- and they test to shot world what they have publicly you could see an escalation here in the statement the north korean leader threatening to go to the maximum extent of their capabilities implying they have something else up their sleeve not clear what that could be >> i guess we will talk to wilbur -- we have the commerce secretary, wilbur ross on. trying to figure out what this means, if the chinese central bank really is not going to fund north korean banks that sounds like a problem >> i would be so serious -- curious as to get his take on this what the chinese central bank is saying to chinese banks broadly is that they ought to stay out of the north korean transactions if that's real, it could be a serious problem for north korea

in terms of getting access to the global financial system through those chinese banks. is this being delivered with a wink and a nod, or do they mean it how does the united states determine that those are all interesting questions. he might have some answers >> thanks. >> you bet coming up, the third round of nafta negotiations kicking off today. wilbur ross has a new op-ed making the case for an overhaul of the trade deal. he will join us at 7:00 a.m. first a report from washington on the progress of deal talks and some potential aticking points. th's next. take out the trash? (sigh) ( ♪ ) dad: molly! trash! ( ♪ ) whoo! ( ♪ )

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welcome back

you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back to "squawk box. look at u.s. equity futures at this hour. we'll show you what's going on s&p 500 looks like it will open off down marginally. nasdaq down as well. about 4.5 points dow jones looking to open higher close to 7 points higher breaking news overnight. north korea's foreign minister threatening to detonate a high kro j hydrogen bomb over the pacific oce ocean, china stepping up sanctions against north korea. the white house saying the peoples bank of china ordered all banks to stop doing business with north korea news breaking a few hours ago. iran's president said his country will strengthen its missile capabilities without seeking permission from the international community. one iranian news agency is reporting that the countsry

unveiled a new ballistic missile capable of carrying several warheads for more on the headlines out of washington, we bring in axi axios's co-founder mike allen. great to see you >> happy friday. >> a lot to talk to you about i want to talk too you about facebook, taxes. i do want you to comment if you could on this latest threat from north korea and what you think is going to be going on inside the white house this morning as they wake up to that news. >> andrew, inside the white house they may talk outside about immigration or tax reform, but as your viewers know, north korea is the issue that matters. people close to the president say this is going to wind up being the issue that defines him. they talk about it in very grave terms. and now you have the war of words continuing the worry is that this -- this north korean leader who senator mccain calls the fat kid, and who the president calls rocket

man, that the president will poke and prod him in a way that he'll do something that won't make sense for him during the cold war we figured all the actors would do what's in their interest. you look at how he was talking today, including a word that i had to google, dotard when he was calling the president the dotard, like my grandmother used to use the word doty, like an old senile guy he calls him hard of hearing these are two guys who are making it personal. >> i want to speak to another issue. top of axios this morning, zuck's real campaign, referring mark zuckerberg. you talk about the campaign he's on this is not a presidential one, but you say his and facebook's political base is in serious jeopardy what do you mean by that >> there's been such a wind shear in the sentiment about the

big tech companies in washington you've been covering it on "squawk. facebook is the face of it and i'm told that republicans are upset at facebook. they are -- these groups and leaders that made their reputations opposing government are calling for regulation of facebook we saw mark zuckerberg yesterday making that announcement we saw on cnbc about new rules for political ads, about turning over 3,000 ads bought by russian operatives all of that is trying to placate capitol hill, which is in no mood to be placated. >> what's the worst case scenario if you're facebook in terms of the regulatory environment now? what do you think u.s. regulate kearse d regulators could do? >> what they can do is much more constrained than what they're

talking about. so we have a story up on axios this morning saying that actually treating the tech companies like utilities which is what there's buzz about, that that would be difficult to do. what we're more likely to see is a bill that senator mark warner of virginia, the natter of minnesota, two democrats yesterday were seeking co-sponsors for. that is to codify some promises that facebook made about the new ways it will treat ads first step is more disclosure about ads, sort of the way we know a good amount about a tv buy in political advertising, we know nothing about a digital buy in political advertising they'll require more disclosure about who is behind these purchases. >> mike, while you've been speaking, donald trump has been tweeting let me read that tweet

president trump just tweeting simjo kim jong-un of north korea who is obviously a madman who doesn't mind starving or killing his people will be tested like never before do you think we'll hear more from him today on this issue >> i do. i certainly think that's a good morning de-escalation by the president, just as a word that we don't often associate with tax reform we're hearing this morning, momentum, a better chance for tax reform. i don't think we'll see the president deescalating his conversation with north korea. >> mike, we had a "wall street journal" nbc poll yesterday. i think we buried the lead a bit. mcconnell and ryan they're like under 20% approval, among republicans trump is 85% still.

the idea that he's like a third party or that he's not really a republican and that people are pining and craving the old -- what we think of as an establishment republican, isn't it weird that it's holding up so high among the republican base >> it's not weird it was perfectly predictable. we've seen this. i said on cnbc since the beginning that this president has a very long leash with his base i think the most constructive poll number is another "wall street journal" number that said if you voted for trump in the primaries and general, 98% of you are still with him there's been no erosion based on these deals. so the president is having it both ways. he's holding up with his base, as you point out there, but then y he got a lot of love after these

deals with the democrats at the u.n. meeting, i was up there the last couple days, world leaders are saying that they can deal with him more. i chatted with ian bremer, who talked with a bunch of world leaders. he said it's a combination of they're just getting used to him, but also it hasn't been as bad as they maybe thought or forecast >> i see axios all over. what was that -- it begins with a p what is that -- >> axios a.m., part of a good breakfast. what was that other -- >> worthy of your time, attention. what began with a p? people used to look at it -- >> stop. >> do you know what i'm talking about? >> politico! that's it. >> i start my day with cnbc and with axios >> there you go. love mike allen. >> man >> he's good >> really good when can you come back what time is it?

>> i haven't left yet. you're kicking me out. what are you doing at 7:30. >> going to be right here. >> mike allen, love you. >> have a great weekend. >> we'll talk about uber, that's the top of the news tomorrow, the way things are going here. news out just this morning, london's transport regulator said it will not renew uber's taxi license in the city how long will this be? >> we'll see they'll appeal they have it 1 days 2 1 days tol >> you can't stop uber, can you. >> we'll see whether there's such an outcry by londoners in the street >> it means the ride hailing service won't be able to continue operate in london, but it can operate untilt appeal til process is run uber responded saying it will immediately challenge the

decision it says london has caved to a small number of people who want to restrict consumer choice. i feel bad for the taxi guys they're powerful here, i'm sure powerful over there. whenever there's a disruptive technology, the people losing try to maintain. we all may be there in a few years with the bots. >> may not be necessary. >> we may be getting courts to allow us to keep dwloog we'oing we're doing instead of the bots. >> hopefully it will take longer >> did you see masa son? 10 billion robots, 10 billion people on the planet, and we'll lose we will. just we don't live as long not as strong or smart >> that's where it's going >> at least already being a

dotard, i don't have to worry about that. >> you'll forget about it. third round of nafta negotiations kick off today. kayla tausche joins us with an update on the deal talks and a potential shift in the trump trade agenda good morning >> reporter: good morning. the white house's hard line on trade, it may be softening as it looks to repair gop relations ahead of this fax reform fight that's approaching the vast majority of the weighs and means committee in the house, and the senate finance committee support free trade and they can't risk alienating that group on the one issue that unites both sides of pennsylvania avenue. that's why the investigation into steel dump hing has been video aisles wilbur ross addressed that issue in july. >> the president doesn't seem to

think we can do two things at once, he can do healthcare and this apparently the president doesn't have it as a high priority, i know ross wants to, but the president has to sign off on anything that important. >> the president apparently was worried he would risk republican votes that was back during the fight on healthcare. now sources say the white house will announce the outcome of that steel investigation before the president's november trip to china. so a little over a month before then round three talks on nafta begin in kacanada today the president's calls to withdraw have been quieted, but there may be two controversial m proposals tabled first a sunset provision requiring all three countries to buy into the deal or it ends and a second that says policies

must be made outside the president needs tough talk on trade if he's going to give in on immigration as the democrats wanted but he knows and the white house knows they need tax reform first. >> kayla tausche, thank you. coming up, wilbur ross joins us here on the "squawk" set. he's here to make the case for an overhaul of the nafta trade deal. and then the ceo of hearse joins us. and later, john paul dejoria, he will tell us about his latest venture stay tuned, you're watching "squawk box" on cnbc

. hurricane maria was the strongest storm to hit puerto rico in nearly 90 years. for a firsthand account of the damage, let's bring in phillip shone from the san juan based

newspaper, caribbean business. you live in san juan and your office is in san juan, philipe >> yes, we're based in san juan. the business community here and beyond our shores we serve so getting to the matter at hand, there's a curfew, but i was able to go out yesterday, journalists are allowed to go out. they have their state department issued i.d and, you know, i went through george here. george was a category 3. they say that a jump from a 3 to 4, the damage is 250 fold. i thought that was a myth. it's not it's not it's just horrific you look at the -- there were a bunch of poles that were upgraded after hugo in 1989. they put in big concrete --

solid concrete electrical poles, many of them are snapped in half i don't know how many poles are down right now i have not been able to assess the damage but i know in an interview we did with the executive director for the power utility company, he said we lost 100 secondary lines during hurricane george, that it would be 1,000 lines in a category 4 or category 5 storm. i hope he was exaggerating a little bit otherwise we're in for a long haul >> you've got your family there, right? is everyone okay >> we're all good. we're all good yes, my wife is here my daughter studies medicine in the town, we are unable to reach her because the entire mobile grid in that section is out. i hope she's fine. she was doing rotations at a hospital

so i would imagine she's helping people my son is in paris he's the lucky one any way, we're all fine, thank god. i understand that the devastation is widespread in other towns that i have not been to for instance, one town was supposedly underwater. levitown, people had to go to the roofs, it's on the coast of the north, people had to go on the roofs of their homes what i was able to assess in the greater san juan metropolitan area, the damage to infrastructure, homes, concrete homes held up rather well, but one thing that is really eerie, you look at fat sad the facadesf homes, it's as though you had a pressure machine wiping paint clean on parts of it that's how intense the wind was. we got hit by the eyewall, the northeast quadrant, just

something i can't describe then when it turned and we got the northwest, it was equally bad. we got a lull, we were able to free debris from the end of our street from some sewage drains that had water rising to three feet in a matter of a half hour. neighbor's banded together now we're connecting to power generators with our neighbors, and we're sharing coffee, food we feel -- we don't feel dread it's just uncomfortable. but we feel things will be back to normal at some point. it will be a few months. >> have you seen fema or local agency, relef aaf arerelief age? is it too early yet or is that happening? >> it's too early. we know that's on the way. i know the protocol. we did a story, after katrina, the playbook changed so the president is able to do

things like issuing -- making declaration of disaster zone prior to the disaster actually happening. i believe that's in place. i believe we already had that dressers will dress rehearsal with irma t, it skirted 49 miles from san juan we got hurricane force gusts, but you had close to a million people without power after that that set in motion a chain of things that were already in place. there's a playbook for that. you have fema in conjunction with federal agencies, everything orchestrated with the southern command under rear admiral san paparo, they diverted a ship from guantanamo down to the virgin islands, the uss wasp, that's in the area i'm sure it will provide relief. >> that's good. >> we have food and we should

have people from federal agencies arriving. >> we wish you the best. good luck. thanks for taking the time out of your day to speak to us we appreciate it >> good luck >> happy to do it. thank you for having me. when we return, is bitcoin a fraud? jamie dimon thinks so but our next guest thinks that logic is wrong. let's check on what's happenin with european markets right now. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most.

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>> there have been a choir of influential leaders, including jamie dimon at delivering alpha last week announcing bitcoin a fraud. >> all i said is bitcoin, the bigger these things get -- governments look at it as a novelty. they love in washington, oh, this technology, we love technology wait until someone gets hurt wait until its useful purpose is -- they close it down it's just not a real thing, and eventually it will be closed >> our next guest says that logic is dead wrong. want to bring in jewels, the

co-founder and chairman and ceo of cloud graphics company. we have had you here with us last week. we never got to finish the conversation and get into this very issue because we talk about block chain in the context of augmented reality, which is what you work on. >> yes >> but -- we'll get to that in a second speak to this issue because you do spend time in this space. >> yes >> directly >> i don't think those words are responsible. first of all, you can't close bitcoin or the block chain you would have to close the sbbt they're interrelated in other words, you have a decentralized system that validates everything that happens, and as long as one of those nodes anywhere in the world is running, the system can't be closed. that's the first thing that i heard in this statement that really bothered me, and i think that there's a lot of institutions that are going to be very disrupted by the fact that money will be digitized >> is the issue block chain, or is the issue bitcoin there are so many other crypto-currencies that are incorporated the block chain that are not bitcoin

>> yes >> that are not being used for necessarily elicit purposes or have the same anonymity attached to them that bitcoin does. >> there's a new crypto currency called -- it's like if you imagine bitcoin as being a gold coin, etherium has a magic spell in it that when you transact with somebody else, that is unlocked as long as those laws can be digitized -- >> when you say can replace laws, what do you mean >> if there's a law that governs how i'm supposed to transact an asset or how that's supposed to be -- how the ip chain, for example, is transferred to somebody else -- >> intellectual property chain >> exactly >> or even the services if the services are digital like a subscription to a newspaper. that would be on-line. if you can create services and create an entire media system, for example, that can be done in smart contrast on ethereum, you can build an economy around that

doesn't use -- >> this is hard for people to comprehend who are not involved in this. first of all, let me ask you a very basic question. do you own bitcoin >> i own other crypto currencies >> which one >> ethereum. >> are you short bitcoin and long ethereum? >> it's more that ethereum can do, which is why i want to invest in it my own system is built on top of that network, and that's why ethereum has a lot of legs you can build other services on top of it. >> take us back. again, just because i don't think i understand last time you were here we talked about august meanted reality and using the block chain to help with that. you said that's built on top of ethereum, which i understood to be a currency. am i misunderstanding? >> ethereum is a bit like bitcoin in that you can create tokens that are exchangeable in that sense you can call it a currency you can actually write programs that are transacted when people validate the exchange of those currencies or those tokens

the block chain has a function that's underneath all of these systems. underneath ethereum, underneath bitcoin. >> it's essentially a ledger >> yes >> explains this is where it's come from and what it can do >> it can't be altered, and it's very secure. >> this way for you you can do projects, right, and you know who owns that project, who owns that intellectual property >> exactly >> it can be traced, right what is the importance of the viability of the crypto currencies to your business? i mean, if you are using the block chain technology or if ethereum technology, the technology underlying it, does it matter if bit coin continues to go higher or if it crashes? >> i mean, it's connected in the sense that i don't feel bitcoin is a bellweather for how well the crypto currency community is doing, and if it does well, i think people have confidence in the system >> i think jamie dimon, just to clarify what i think his thoughts were, was that he was

looking at bitcoin less block chain, the currency itself, and his concern that governments ultimately just won't allow it one of the things that's happening in china right now is that government has decided this doesn't work we can't have this anymore >> you don't have facebook or twitter in china, but that hasn't stopped those things from thriving and growing in other parts of the world when you have a global system or -- >> wouldn't it benefit crypto currencies overall if they were not as volatile? >> well, that's true if there was less volatility it would be safer, but ultimately that volatility will diminish in time as more and more people and more mainstream adoption of crypto currency happens, that volatility will diminish for sure >> thanks for coming back and explaining this. >> always a pleasure >> appreciate it >> thank you coming up, dmers secretary wilbur ross has a new op ed in the washington post making the case for a nafta overhaul. secretary ross has an extended interview with us after the break. i've always wanted to create those experiences for others.

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>> kim jong un warns president trump will pay dearly for his u.n. speech. meantime, iran promises to step up its missile capabilities. the global market reaction is straight ahead "squawk box" news maker commerce secretary wilbur ross joins us in studio to talk trade. plus, uber hits a red light in the u.k. the ride sharing service stripped of its license to operate in london. the second hour of "squawk box" begins right now good morning welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square on this friday morning

i'm andrew ross sorkin along with joe kernen and melissa lee. s&p 500 which was in the red just turning marginally into the green right now. the nasdaq looking to open just slightly lower about 4.5 points off as i said, a lot of news overnight, and here's what's going on north korea's foreign minister threatening to detonate a hydrogen bomb over the pacific ocean. this coming just hours after the u.s. having closed the toughest sanctions yet on north korea china also stepping up sanctions against north korea, and the white house says the people's bank of china has ordered all the chinese banks to stop doing business with that nation. the president, president trump, tweeting out about this just minutes ago. also, in other geopolitical news, iran's president says his country will strengthen its missile capabilities without seeking permission from the international community on aunian news agency now reporting the country has unveiled a new

ballistic missile capable of carrying several warheads. >> breaking corporate news this morning. london's transport regulator says it will not renew uber's taxi license in the city that means the ride-hailing service will not be able to continue to operate in london. the regulator says uber's conduct demonstrates a lack of corporate responsibility in relation to a number of issues, which have potential public safety and security implications uber says it intends to immediately challenge the decision in the courts and can continue to operate until that appeals process is exhausted the commerce department releasing a report on the long-term impact of nafta as round three of reform negotiations is about to get underway joining us now first on cnbc to talk about the results, the negotiations china and much more, commerce secretary wilbur ross secretary, great to see you. it's been a while. >> good to see you >> used to be on all the time before you became such a big deal you were a big deal, but now it's hard to imagine you're even bigger we hope to see you a lot

it's 7:00. can you stay until 9:00. >> sure. i have nothing else to do. >> one of the things that people talked about in the auto bailout is how important the auto parts were in the whole equation if we lost that, it would have been a major issue that was one of the benefits until reading that i didn't realize -- it doesn't cover any of the parts that's the lion's share of our deficit in nafta trade deficit is from auto parts. >> in fact, it's autos and auto parts are more than 100% of the trade deficit.

>> we thought we were sold the notion that when we get -- when we take imports from canada and mexico that all of the parts in those imports were coming from the united states when, in fact, they're not. they're coming from -- that's not nafta. they're from non-nafta countries. >> that to me is the scariest part the sharp growth is in parts coming in from outside nafta from china, from southeast asia, from all those places. when you think about it, the fundamental purpose of a trade agreement is to help countries inside not to make an easier market for countries outside >> in auto parts and autos, the trade deficit with canada and mexico is 84.6 billion >> that's correct where. >> everything else offsets that deficit by under $15 billion it's not even close. >> more than 100% of the reason

for the trade deficit is auto and auto parts without that, there would actually be a surplus between u.s. and its two nafta partners. it's a very, very important part of it, but the most shocking part, joe, is the one you mentioned, which is that more and more of the content isn't even from within nafta >> back when it was written -- what constitutes an auto part now? it's almost 100% turnover from what was -- >> a huge turnover transmission systems are pretty much the same. wheels are pretty much the same. bodies are pretty much the same. >> everything else >> you have now much more electronic content, for example, than you had back when nafta was made >> these might be good jobs if we were growing a lot of the stuff here with the guts of the autos, and it was being made here

they would be high-paying jobs >> yes, they are they're good jobs. sflo . >> they shouldn't be against substituting parts one of the things that ambassador leighthauser has indicated he is going to do is push for total nafta content and especially for higher u.s. content. >> i'm just wondering -- this sounds like a notion line. how quickly would you see jobs actually coming back here? >> oh, well, we would have to have them pretty quickly to get the negotiations done because in 2018 u.s. trade promotion authority, the so-called fast track, runs out.

if you get much into political t the political calendar -- >> a disht trade question that revolves around what happened this morning overnight what kind of sanctions what can be done at this point when it comes to north korea are you involved in these conversations? >> well, the conversations are involving everybody because it's the biggest single issue north korea and iran after the hurricanes, of course. i'm very proud of the work that commerce and the other departments did in the rehabilitation after harvey and irma and our heart has to go out to the people in puerto rico that place has been totally devastated

>> aman on earlier, i talked to him about whether it's actually possible for the central bank to -- like the chinese central bank to say we're no longer going to support north korean banks. is that really possible? will it happen yesterday the president himself looked like he was shocked that china was -- or he just said that was an unexpected move that china would -- >> no, but a very welcome move >> right do you believe it, number one? is there teeth in it can it really happen what would the affects be to north korea? the

chinese central bank was important, a, from the physical point of view, limiting the trade because china is the main trading partner with north korea anyway, but even more importantly it sent a powerful message to north korea that china is not being as supportive of them as it had been >> but what's our relationship like with china right now when it comes do trade? >> i'll know better over the weekend because i'm going to beijing on saturday. when i come back, i can give you a more informed view >> is tax reform the number one priority of the agenda of the administration. i ask you that because kayla is getting indications from the administrati administration, our reporter in d.c., that there could be a softening many when it comes to the stances on trade, whether it

be steel or nafta, in order to score points and get tax across the finish line. >> well, tax is extremely important because that's the biggest single incremental factor in getting our growth rate over 3% that extra percentage of growth is huge. it's -- it's $3 trillion of more federal revenue. it's a lynch pin it coupled with the regulatory reforms that we have already been putting in are what's really driving business. i think they're very much what's driving the stock market as well >> sorry you didn't answer the question, though are we willing to have a softer stance on trade in order to win some of the support of some of the democrats and some republicans within the party are you willing to back down on some of the things that we really were saying that we would do, like backing out of nafta entirely, or taking a strong stance on china? the investigation to steel

dumping appears to be on hold right now. >> we don't want for unnecessarily irritate the senate as was proven with health care, it's a very fragile margin the president certainly is not going to suddenly be happy with trade deficits he is not going to be happy with exporting jobs, but the real priority is to get the tax bill through. a tax bill that materially lowers the corporate tax rate so we can bring back businesses here and to take care of the repr repatriation >> if you talk to american enterprise institute, they talk about tax cuts should be across the board. that's where -- i guess the philosophy is that money is

better spent, better left in the private sector where it can be used to take risk to grow the overall pie. >> it seems like it ties your hands for idealogical purity to appease the democrats because they're out in front saying it's going to be another tax cut for the rich it looked like the president actually kind of caved on that because of criticism that it was going to be a tax cut for the rich if you -- let's say you don't cut taxes on the top 10% you're at 70% of federal income tax. >> let's see what really comes out.

the administration makes a proposal, and then it gets dealt with in the house. then it gets dealt with in the senate probably will end up in reconciliation >> but across the board tax cuts are going to mean that some of the more successful -- now we call them rich other people call them producers or the job -- or whatever. now it's almost a bad thing to be in the top 5% or at least it's supposed to feel like it's a bad thing. >> well, i don't think that's it so much. the more important thing is the -- the people in the lower brackets get the real benefit by redistribution those are the fundamental objectives >> i want to go back and just talk about one of the other -- the sanctions on companies not just weapons makers now. it's across the board.

i can't think of things from people that don't adhere to those sanctions. i mean, will it work then i worry about north korea how many people does he need to take care of to keep happy his people have been suffering for, you know, for decades how many people do sanctions work when he is only taking care of himself and his -- and his military backing >> well, military spending is a huge part of the north korean total budgets. >> they can have anything -- >> anything they can do that smacks that down, is good, and we especially think that a lot of the materials for the rockets and for the warheads are really coming from outside. >> first, we need to slip in a quick break and take a check on the futures. yesterday the dow snapping a nine session winning streak. looking to be back on that streak

higher by nine points here at the open s&p looking to be down by just a fraction ayuned you're watching "squawk box" on cnbc it's not just a donation.

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ross is with us, and we're talking about steel imports. what we haven't talked about is technology companies and ip and how you have been thinking and working on some of those things. especially how european regulators perhaps have been treating our u.s. companies. by the way, just as there's a huge debate even in washington about how our own regulators should be treating our own companies. >> right well, the internet companies and the other technology ones really seem to be an unfair target in the e.u. it looks pretty obvious that they're becoming discriminated against because they're worried our companies are so much stronger than the ones in europe itself >> you think it's political? >> i do. i do >> i think what's happening with uber is really not very justified in london. for the u.k. people, obviously, to decide, but i think uber is a

wonderful invention. every city that i've tried it in, it works very, very well ty think the london cabbies have been slow in adjusting to the new system >> the new york cabbies have been slow as well. the medicine alian prices have -- >> collapsed that said, that was a very good middle class kind of activity here in manhattan. when you think about it, uber is fundamentally a communications system it's really good women going at night feel much safer in uber because the uber place is tracking them you get into a cab, who knows? >> will you be making a call later today to an official regulator in london to express your displeasure how does this work >> well, no. i'm not really involved in the

uber situation that's not at all to do with trade or fisheries, which is another big part of commerce we have our hands full doing the things that we are doing >> when it comes to the way the e.u. is dealing with google or some of the i.p. issues in china. >> ip issues in china are different because that very much is a trade issue they're not the only ones with whom we have intellectual property problems. the u.s. probably has the biggest cache of intellect property in the whole world, and everybody would like to free ride off of it you'll see in pharmaceuticals many foreign countries forcing the prices of drugs down there the pharma companies still have to pay for the rnd and they still have to pay for the fact that most drugs don't get through the testing. they have to pay for the fact it

took them ten years to develop the drug a lot of these initiatives by these european and other countries are very much anti-u.s >> we obviously don't have a trade agreement with europe, and, in fact, there's a reason we don't have trade agreements with our big trading partners. most of our deficits aren't from countries where we have free trade agreements the big deficits, china is the larnlest country deficit, and automotive is the largest product deficit. that's part of the reason the automotive thing is so important in nafta within nafta what's amazing about it before nafta, u.s. had

a $4 bhl to $5 billion a year surplus with mexico. you know what the cumulative deficit with mexico has been since nafta? $1 trillion, with a t. $1 trillion. >> let me askyou a question about bringing jobs back to america. we talk about what kind of industry can come back here and how that relates to trade. i says everything he is investing is about putting robots in the place of human beings i interviewed tim cook and asked him billion whether mafrg should come back to the united states he says he have to skate to where the puck is going, and i'm not sure that's where it was going in terms of physically manufacturing some of the electronic goods here.

>> samsung just opened up a big appliance factory in -- lg is opening up in south carolina people are starting to come back i think with the regulatory reform and now assuming we get the tax thing through, that tax has been a huge deterrent. >>. >> kayla reporting that administration officials are seeking a softer trade stance so that they don't make any republicans mad because you're going to need their votes for tax reform like you have to curry favor with these republicans in congress have you been told to go easy on trade so that you don't lose any republican votes -- zwlook no.

>> the question is one of -- >> have they seen their poll numbers versus trump's poll numbers? >> i'm sorry >> have they seen their poll numbers versus trump's poll numbers? like mcconnell or ryan at this point? they're in the teens in key states president trump's numbers are fine >> you're misunderstanding what i'm saying i can't believe that you need to curry favor with republicans to do tax reform. i can't believe you could -- you need to appease them so that they don't -- what are they going to vote? against tax reform republicans? >> i think any republican who votes against tax reform better hope he is not -- he or she is not up -- >> they better hope they're not up for re-election already, half of them. >> i think, in fact, the failure to deliver to the president on the health care puts more

pressure on republicans to do the tax bill >> do you think thaes something that should be considered? >> it's not a question of backing away it's a question of timing. the president takes very seriously his campaign promises, among which was bring jobs back in cutting the trade deficit i don't believe there's anything especially if you listen to his u.n. speech he made it quite clear that those are important objectives this is not a president who forgets his campaign promises. this is a president who delivers >> when can we expect something on steel that's -- kayla mentioned that you delayed it in july because of the legislative calendar. what specifically -- what does that mean? what are you waiting for with

steel? it sounds like maybe you are waiting for this with steel. >> well, there are plenty of other trade issues besides steel. >> that was a campaign promise too, wasn't it >> sure. the question is one of timing. it's not a question of direction. >> i've heard that wilbur, thank you. you have one more thing to say >> what i was going to say is congress is very much a process oriented -- >> oh, we've seen that process yeah we've seen the process >> reaction to commerce secretary sill we are ross from p.w.c. chairman bob moritz he is just back from beijing and mut be on set in just a couple ofinesyou're watching "squawk b cnbc

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>> good morning. welcome back to "squawk box. we're live at the nasdaq market site british prime minister theresa may will deliver a major brexit speechl today. she's going to try to rescue stalled brexit talks and try to convince the e.u. that she is ready to cut a fair divorce deal that expected at 9:15 a.m. eastern time also, sticking with europe, germany heads to the polls on sunday for a nationwide election they're going to decide whether incumbent chancellor angela merkel has another four years in power. right now merkel is leading in the polls. we're expecting to get the first results on sunday. that will happen around noon eastern time here in the u.s. two economic reports to watch we're going to get manufacturing and services, pmi. both out at 9:45 eastern time. a lot of fed speak as well we'll hear from john williams, esther george and ron kaplan later today. >> let's get back to today's top

story. transport regulators will say it will not renew the taxi license in the city. >> london's transport regulator rejecting the license to operate in the city from the end of the month, so that's only a few days away, guys uber may not be able to operate in london starting october they can appeal the decision the transfer from london statement says that it concluded that uber is not fit and proper to hold a private hire operator license and that its approach and conduct looks corporate responsibility in relation to a number of issues which have potential public safety and security implications. another hit, london's mayor is backing that decision saying that any operator or private

hire services in london needs to play by the rules. now, in london, like many other places, uber is facing, you know, lots of criticism and pushbacking from politicians >> they do have the right to -- they intend to challenge it. now, the cfl says that uber continues to operate until any appeal processes have been exhausted, and that means that uber is likely to continue to operate through october as it appeals this decision. this is another legal battle for uber it's already facing three federal investigations here in

the u.s., and that's even as they try to clean up the mess of the last year. >> any sense of how important london is to uber's revenues i imagine this would be in theory, a hit to valuation if it can't operate in one of europe's largest cities >> yeah, that's exactly it it's gm saying it's going to affect 40,000 licensed drivers uber has already been having a hard time, you know, with drivers treating them well, their reputation there 3.5 million londoners use the app. it's going to be a huge blow to the revenue. deirdre, thank you in some developing news,

shares of sprint and t mobile rising this morning. the companies are reportedly close to agreeing on tentative merger terms t mobile owner will reportly own a majority stake in the merged company. coming up, pwc chairman bob moritz, we will get his reaction to sreryoss ecta rs'comments on trade and taxes. 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. those people might just get what they want out of life. or they could get even more. ♪ ♪

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your voice is awesome. the x1 voice remote. xfinity. the future of awesome. . >> we just spoking to commerce secretary wilbur ross for an extended interview about trade, china, tacks, and more >> the president is certainly not going to suddenly be happy with trade deficits. he is not going to be happy with exporting jobs the real priority is to get the trade -- the tax bill through. a tax bill that materially lowers the corporate tax rate so he can bring back businesses here and to take care of the repatriation so we can get those fubds that have been trapped off shore. >> secretary ross is about to leave for china. our next guest just returned

from beijing like ships passing in the night. >> price waterhouse cooper's global chairman bob moritz joins us now you were in the greenroom. were you able to get audio >> i did yes, absolutely. >> what struck you about secretary ross's comments about china? >> one, china continues no matter what you potentially think of the gdp growth? the mega trends are there. the demographics are huge. the infrastructure is building out. the urbanization is happening. point number one is that point number two is actually the technology there you talked about ek it nolg earlier here in the states and how it's being applied globally. the infrastructure is amazing between what alibaba pay has done, what we chat does. that allows for commerce, the small businesses, to do tremendous things.

>> they're doing so well using capitalism to help raise the standard of living for their people do they look at north korea and say this is just like -- we don't need this right next to us happening right now, and it's just a total distraction and it's a real problem. >> it's a distraction as well as a big issue for them you absolutely hear it i would argue you hear it worse than in the states as much as the rhetoric is amongst our administration and the elected officials and the party over there they're worried about it more from a fundamental safety and security -- >> is it like a parent that's got a way ward child that just says -- they just throw up their

hands, i don't know what we're supposed to do can't control them >> we can't control it we hope that there's a plan. that's why it's fundamental to them it's fundamental safety and security >> eventually, you know, maybe not -- eventually keeping the analogy going, a parent from tough love needs to crack down >> absolutely. >> will they >> look, i don't know if we'll see that in the upcoming party official nouptsment, but we'll kpe expect them to lay out ground work as well as the foreign policy issues. you have to believe from what i understand behind the scenes that tough love is hopefully happening. >> so you remember the campaign and you remember the angst about trump's rhetoric about trade i would imagine that pwc, that was something that was on your

radar screen now that the reality is happening, is it not as draconian as you worry about is it the right tone is it the right amount of, if you will, protectionism at this point? too much not enough >> from our perspective i think there's two issues to focus on one is the nationalism that's coming and the bilaterals that are happening. that's a good thing as you think about how you negotiate an effective and efficient trade agreement. the challenge is the speed >> trying to get stuff on the books, trying to get these agreements landed so they can progress the investment, progress the infrastructure, and progress the economic benefits that come from it. >> is trurp a free trader? remember, the rhetoric was who

is worse, bernie sanders or trump or are they the same in terms of protectionism it hasn't panned out >> no, it hasn't panned out, and i think you have to irks ma that we go after this thing aggressively as much as possible the business community needs that the country needs that if you really go back to setting ourselves up for long-term sustainability as opposed to what i'll call episodi skr al issues, we have to go after this much harder. the marriage players are doing it better than we are right now. >> i think you'll open up the repatriation issue those are the two issues that every business needs, and the business community is looking at two things make it the number one priority, and make sure that the citizens, the taxpayerers, and the voters are talking to their elected officials getting stuff done you talked earlier to the

secretary about where the republicans are, if they want to negotiate. the reality is the party, the republican party, is so fractured that the problem used to be the business community couldn't get their act together in terms of what deductions should go away, how to think about a rate, et cetera. they were, you know, siloed in their behavior you've got a party that's fractured. we've actually got to make sure that the taxpayers and the voters are the ones pushing to get this done and get it done. it's a once in a lifetime opportunity. >> would you urge them to put faith in dynamic scoring, or would you urge them to know that we have $20 trillion already that we owe and pay for everything you do? which would you tell them to do it chairman of pwc. >> we have been telling our corporate clients, you have to do two things. you have to make sure you're focused on scenario planning, in ermz it of investments there are two factors. one is what happens in the u.s., and there's a second piece of what happens as a counter play to that. your point on the technology

company. you have france right now saying how do i go after the technology companies from a tax percent pelkt and thinking about what do i want to add on >> thank you for that. apple's stock at multi-week lows as the product hits shelves today. we'll discuss what worrying many some investors next. stay tuned you're watching "squawk box" right here on cnbc ♪

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>> there's speculation that presales of the newly released gadget have been weak. gene munster founder -- gene, great to speak with you.

>> hi, melissa >> hi. last we spoke, which is earlier this week, you said apple shares should see a pullback of between 5% and 10% we're 7% off of 52-week highs. we're about 4% down on the week. where are we in that call? >> investors, brace yourself if i can just quickly talk about what people are going to see today is a lot shorter lines than last year my long-time colleague doug clinton is at the fifth avenue store. he just reported in 250 people in line. it was 400 people in line last year we're still tallying up because it doesn't open until 8:00 that number is going to change mall of america had seven people at the stop about 30 minutes, and that line is down to four people never heard that before. i think that the reason is that this cycle is split between two

phones number one and number two, more people are buying things on-line. >> there are the first three days of preorders for the 8 and 8 plus saying in china as well as in the u.s. preorders were significantly below levels seen in the first three days for the iphone 6 as well as the iphone p. should we be concerned about that can we explain that away and say, you know what, says preorders are lower because people are, in fact, waiting for the 10, which is actually good because the asp is higher. >> that's exactly the take-away. this cycle is split between two phones i expect to see similar lines for the iphone 10 when that comes out.

p don't underestimate -- give apple consumers credit for their willingness to pay up for products we saw in the iphone 6 cycle when asp's went up 15% people didn't expect that to happen, and, in fact, people did reach for that higher phone, and so i think we're going to see that with the iphone 10. real quick, we did a survey this week about 400 people in the u.s. across all demographics 25% said that they would buy the iphone 10. these are of the people that said they're going to buy i phones, and it was about 40% for the iphone 8, and then the other 35% were for other i phones. in other words, it looks like the setup for the iphone 10 is going to be strong >> right gene, what do you make and hear about the new watch? the apple watch 3 with lte a lot of people, including myself, by the way, were jonesing to get it, to jump out and buy the thing. there are some new reports, at least some reviews later this week, that said that the lte connectivity had some issues,

and apple came out with a statement suggesting that they were working on trying to fix the bug. do you think that's going to slow sales is that something you worry about? does it matter to you? >> i would say this, most people who are kind of taking these first generation leaps know there are hiccups. we can look back everyone remembers in antenna-gate, and that got fixed. i'm not concerned that the kinks won't get worked out the biggest concern i have with this lte watch is going to be the bah theory life, and shame on anyone for thinking that this watch is going to make it through an entire day because we've been through this before, but it should be expected. i think at the end of the day the watch will be a nice step up >> at the end of the day the watch won't make it to the end of the day you are seeing a lot at the end of the days, gene. one was an idiom, and the other

was you were actually making a point. have i got that right? >> you might have it right let me take a step back. >> at what point would you be concerned that the early indications that are indicating that the preorders are demand for the eight are lower, and the premise is that it's split between two phones at what point will you be concerned that the demand is not, in fact, going to the 10, that people are just holding offer because, you know, they don't want to spend the money on the 8, which is a competent upgrade from apple to sort of paraphrase what one reviewer said this week >> we would get concerned if we didn't see lead times extending out with the iphone 10 is it a supply issue or a demand that's causing that? if we didn't see extended lead times when they start taking preorders, that would be a concern. i think separately, when iphone 10 launchsz and no one shows up

or very few people show up, that would be a concern there's different ways to kind of get that prosecute from web photographic, but i'm also skeptical. >> gene, thank you >> thank you >> gene munster, luke ventures >> mark zuckerberg speaks out about his company's plan to fight election meddling. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement.

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>> facebook has agreed to hand over 3,000 political ads to congress critical investigators that says were likely purchased by russian entities during the election the company launching an overhaul of the way it handles paid political ads ceo mark zuckerberg says the company will demand that advertisers disclose who is paying for the ad. >> i don't want anyone to use our tools to undermine democracy. i would like to say we're going to be able to stop all interference that wouldn't be realistic there will always be bad actors in the world, and we can't prevent all governments from all interference we can make it harder. we can make it much harder that's what we're going to focus on doing >> zuckerberg said that users will be able to tell who paid for a political ad, view other ads targetsing other audiences on facebook and visit the advertiser's web page. we should tell you the president tweegt this morning the russia hoax continues now its ads on facebook, what about the totally biassed and

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new this morning, the trump administration responds to the north korea threat first on cnbc >> i think that move by the chinese central bank was important. >> breaking news another bump in the road for uber the ride share giant loses its license to operate in london plus, a billionaire entrepreneur behind your favorite tequila john paul dejoria tackling e-waste. he is here to explain when the final hour of "squawk box" begins right now live from the most powerful city in the world, new york, this is "squawk box. good morning welcome back to "squawk box" here on cnbc live from the

nasdaq market site in times square i'm joe kernen along with andrew ross sorkin along with melissa lee. becky is off today new this morning, north korea's foreign minister threatening to detonate a hydrogen bomb over the pacific ocean. this comes just hours after the u.s. imposed the toughest sanctions yet on north korea and china is also reportedly stepping up sanctions against its neighbor and an ally the white house says that the people's bank of china has ordered all chinese banks to stop doing business with that nation here's what commerce secretary wilbur ross told us about the north korea threat in the last hour >> i think that move by the chinese central bank was important, a, from it a physical point of view limiting trade because china is the main trading partner with north korea anyway even more importantly, it sent a very powerful message to north

korea. >> we've also heard from the president this morning you know what, heard from the president means, and that is in the form of a tweet. kim jong un of north korea, who is obviously a madman who doesn't mind starving or killing his people, will be tested like never before >> iran said his country will strengthen its missile capabilities without seeking permission from the international community. one iranian news agency is reporting the country has already unveiled a new ballistic missile capable of carrying several warheads >> with all this said, let's get a check on where the markets says are right now futures fairly stable. all session long

>> if you talk about the -- just getting some ideas about position squaring. >> but why if it's going to be the end of the world tomorrow -- >> i would raise cash. >> what makes a difference >> i would -- >> you're going to be gone >> some people want to go really, really long just because how can you live, and then, see, i want to raise cash do you buy gold? see, the fast money traders need to get involved, and it's -- >> put together the end of the world playbook >> we need to know what to do today on this. i'm going to cash. >> if it's all gone, it doesn't

matter if you have cash or geld or stocks or puts or whatever. >> i think that's sort of the why we're talking about it as a joke that is obvious that that's why i'm saying see, that's why it's funny >> i think i would raise cash. the road for uber london -- so you are saying if it ends -- >> i'm saying this whole joke is not funny. >> there won't be anything happening if it ends so there won't be any marketplace didn't think of that >> they will not renew uber's tax license. that means the ride hailing service won't continue to operate in london. the regulator says uber's conduct demonstrates a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications uber says it intends to immediately challenge the decision in the courts >> apple's new iphone 8 hitting stores today josh lipman is at an p ale store

in palo alto this morning with the story. good morning to you. >>. >> good morning, andrew. let me show you those new phones we're talking about here we've got the 4.7 inch iphone 8 for $699 then here i've got that new 5.5 inch iphone 8 plus that's going to start at $799. if you talk about some of the new features and capabilities of these phones, of course, you have that new stronger glass and aluminum design that improve cameras. better images and video. >> it's going to run you $150 less others disagree. i spoke to some analysts who thought the iphone 8 would be a

hit, that there would be consumers who would look to move to a phone faster phone with a better camera, but maybe they still want some of the familiar technology they're used to, like touch id rather than say moving to the more cutting edge technology that's coming with that iphone 10 like facial recognition. now, in addition to the phones, this is going to go and be available in stores today too. this is the one with the cellular connection. $399 now, the idea of that device would be that it would be a much more independent stand-alone product. there may still be some issues to work out. we know there are some reviewers who said that at least when they spermed with the watch, it would sometimes lose that cellular connection apple tells me it's aware of the problem that these reviewers brought up, and it's looking into a fix >> josh, i'm going out to buy the watch, but i am waiting until november 3rd to buy the 10 the watch is available now i'm going to hold off on the rest of it before we go on this, i just

wanted to say -- to correct myself because in the last hour we're talking to wilbur ross, and i mentioned tim cook and i suggested that he was not he advocating for manufacturing in the united states. >> ho did you find out you were wrong? >> i realized i was wrong. >> i realized i was -- >> okay. all right. >> when i'm wrong, i like to say that i'm wrong >> i think that's commendable. >> developing deal news. shares of spribt and t mobile rising this morning. the companies were reportedly close to agreeing on tentative merger terms

japan's soft bank controls sprint reuters says it will own between 40% and 50% of the combined company. a t-mobile owner will reportedly own a majority stake in the -- do you remember there's a woody allen movie where there's a guy at the movie talking about marshall mccluen and saying all -- woody allen says you don't know anything about what he is saying the other says, oh, really, i teach a course on marshall mccluen and then marshall mccluen walks out and says you have no in whied what you are talking about? is that what happened? did you hear from someone? what's the matter? >> i recognized that i was wrong. let's just leave it there. >> why >> you know, joseph, we have a great interview to do. >> that could mean that someone really important is watching >> we have a great guest here. >> very influential people watch in high places >> it's important that i get to our guest this morning >> fine. >> this is important stuff

>> already wide reach in the health selktor steve schwartz is president and ceo of first >> we've been in the health care data and analytics sector for about 40 years this effort by the fabulous moffitt cancer center is an effort to put together the largest database of individual patients and their clinical data combined with the genetic data on the make-up of their individual cancer tumors >> also, this data with an analytics later on top is provided to drug companies and pharmaceutical companies in their important work to target individual cancers and come up

with effective therapy this is what we like to think of as doing good, but it also, we believe, could be a good business >> how much of your business is now health health and data, i should say. >> data in general our biggest data business is actually the fitch group, the bond rating business then second comes our collection of five health care businesses combined they're more than 25% of profits this year and will be close to one-third next year >> we oftentimes think of hearst in the context of media, and i wanted to get your sense of where we are in the media landscape right now. you own obviously a piece of espn, a&e, history, and vice you have stakes in buzzfeed, complex. >> first on the sfen spees people are trying to understand where sports is going and the challenges that espn may or may not pose >> i think the entire media

sector today is harder with all of the technological disruption. this is a golden age to be a consumer of television it's a tougher period to be a provider of television frankly, a seller of advertising, of course at espn fabulous business. if you looked at the suite of cable networks across the world, i don't think you would trade places with us to have a piece of espn. fabulous management in john skipper. fabulous leadership from bob eiger. they're making the transition as all media companies need to do when you are subject to. >> you would have to find new pockets of revenue the stuff they announced for new streaming products is exactly what they need to do >> if we had this conversation five years from now, espn would be more profitable than it is today, less profitable than it is today >> i would bet more.

>> john is the best spokesman for this, not me over time you'll see more and more niche sports products i've got a son playing ivy league lacrosse. i would take an ivy league package, and i think there is potential. >> he is a customer who migrates away from the cable, cuts the cord and then opts for a skinny bundle or one of these direct consumer products. is that person just as profitable to the company? >> absolutely. >> you think that profits are going to be higher in five years? >> i think that these new bundles are helping recapture some of the people that we're losing look, nobody is exactly sure how this is going to evolve, what the future of the bundle is. i think the bundle has a good long life.

a lot of people still like to get a lot of packages, television channels. i think it's encouraging the new bundles that are coming, and i think most importantly, for our great partnership with walt disney company, espn is in pretty much all of these bundles and our a&e and history and lifetime channels are in all of those bundles. i think tougher environment, but i think the best brands are going to do fine >> you have a stake in buzz feed as does nbc, parent company of this network >> yes >> what happens to buzz feed it has about a $1.5 billion valuation today? >> i would go broader. we have another investment with your parent company, awesomeness tv we have another venture similarly called complex networks, which we own with verizon. verizon is also a partner in aweso awesomeness. we and disney invested through our a&e network in vice.

>> buzz feed, vice, complex, awesomeness,i think they all have great potential, but let's not kid ourselves. the environment right now is a tough ad environment for some cyclical reasons, for just the amount of money that the success of facebook and google takes out of the market. it's a tough environment >> two are egg latory questions. we have been talking about facebook all morning in terms of what regulators are looking at or not do you have a problem with facebook are they a friend or foe of yours? >> i think, look, their success and that's -- let's face it, they've earned their success their success takes a lot of money out of the market that might be going to other media projects i think we're working well with them

>> sprint and t mobile may have actually at least the outlines of a deal may finally be on the table. if regulators called you up and said if this deal were to get announced and regulators called in and said is this a good idea or bad idea from a competitive perspective, you would tell them what >> look, i think in terms of we look at it as we can distribute our products and we just want a healthy competitive environment and if this promotes a more healthy competitive environment, then -- >> my question is does it? >> i would leave that up to the regulators to determine that look, we've got some strong players in the market already. facebook, google obviously at&t verizon, what have you yes. we just want a competitive environment, and i'll let the regulators figure that out >> steve, it's great to see you. appreciate you coming in >> good to be here >> thank you

>> coming up, german voters heading to the polls this weekend. we'll tell you what is at stake for incumbent chancellor angela merkel that's next. later, billionaire john paul dejoria has a new product. it's not technichair products or tequila. you are watching "squawk box" on you are watching "squawk box" on cnbc 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. those people might just get what they want out of life. or they could get even more.

>> let's get to michelle car usa cabrera for the outcome. no one really thinks that -- that this is in jeopardy for chancellor merkel at all, right? >> no. not at all i'll show you the polls in just a second the key point is when the german election is over, it's likely that the far right will have seats in parliament for the first time since the 1930s, and that is because of immigration now, to your point, joe, here are the latest polls angela merkel likely to win a fourth term as chancellor of skbrerm anne polling in second place. however, what's striking to many observers there on the right, right now the party running in third place. alternative for germany headed by alexander golaulgauland.

the party was created to oppose the financial bailouts of greece what's helped them lately is angela ameri a merkel's decisioo allow in more than one million migrants from countries like syria and iraq it was originally thought the immigrants would help with the shrinking labor force. the vast majority are unskilled and unemployed and officials admit they will likely remain unemployed for years critics of merkel's new also -- one example, the state of bavaria just reported a 48% increase in rapes with a large increase in the number of foreigners accused wrrn the immigration issue has pushed nearly every party first to the right than had been before it's going to have an impact on the future of german politics even though angela merkel is likely to be chancellor once likely to be chancellor once again.

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a senator and a heisman trophy winner teaming up for a good cause florida senator marco rubio and tim tebow handed out ice to hurricane victims in florida they later distributed food on big pine key, which is located about 30 miles away from key west it was one of the hardest hit

are areas. the company has reached a $300,000 settlement after slandering water in video games and gatorade's mobile game bolt. players guide track star husain bolt as he collects bottles of gatorade players must help him avoid water because in the game it slows the olympian down. california's attorney general said gatorade portrayed its products properly, while negatively depicting water as hindering athletic performance, adding that misleading statements violent state law you got to watch out who gets to sue over that? every water company? does the municipality get to say there's a problem? >> who gets the money, right it the state of california gets it >> i don't know. >> state gets it >> it's a shakedown. shakedown. >> coming up, a billionaire

entrepreneur who never holds back john paul dijorian talks about his new venture, and how, of course, to make the perfect margarita. >> we'll be down across the board with the nasdaq down by 13 stay tuned i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪

>> amonged stoefrz that are front and center at this hour, apple's new iphone 8 and 8 plus slated to hit store shelves today despite its new feature some analysts examining slightly lower sales and smaller customer turnout at least on launch day many customers are holding out for the iphone 10 molgz due in november if you don't see lines around the stores, it may very well be that at least some of them are buying it on-line. also, wal-mart says it will deliver not just to your door, but inside your home that means customers who order groceries can have their products delivered directory to their frig or freezer.

they're teaming with august homes. it's an electronic lock that is wi-fi enabled, and you can effectively give wal-mart a pass to your home using their phone you open up the door, go inside. there's cameras and things so you can watch all this happen. welcome to the future, people. >> lazy. >> lazy? >> so lazy >> if you could am come home and everything was sitting in your frig, you wouldn't take that >> i don't like the idea of a stranger in my home. >> amazon teaming up with olo to streamline on-line ordering. olo's on-line food ordering service will be integrated into amazon's restaurant delivery service. that will simplify the ordering process for restaurants. also, shares of rival delivery company grub hub are down sharply on that news >> we were just talking about

apple. people lining up to purchase the iphone 8, but start-up renew lolkic sees a new life for your old smartphone let's bring in an investor of that company john paul dijorian he is also co-founder of paul mitchell hair care and patron spirits. i use a lot of one of those things, j.p. i'm not going to say which and some of your pet products too. is this a money making venture, or is it an environmental recycling type venture, j.p., or both >> good question first of all, i congratulate you on the products you use. you have very good taste >> and i look good >> re nuewed logic is a combination. at the same time it's a profit making business. it's one that's really needed. most companies have laying around and many times in your own home damaged electronics,

electronics that are old that you want to do something with, but you cannot throw it in a landfill because it pole outs the land what a lot of people are not aware of is that with all these disasters going on, the big disaster happens even after the disaster we saw on tv because a lot of these electronics get out there in the water and all of a sudden the lead, the mercury and other things leech out the centers for disease control say there is so much disease going into the air through electronics, believe it or not, after these catastrophes that it really affects people. what happens is this, sometimes companies have a whole room full of what they call electronics. they're old or damaged or something is wrong with them they figure out how to get rid of them. the way to do it is renew logic. it's a company that takes all of your material, whatever electronics you have, disassembles it in an electronic way that is meaningful to the environment where they take out the lex trongs they take out the things that are meaningful that can be

reused and regenerated again >> tarmt it brings it back to the environment so we can renew it all over again. hence, renew logic >> you disassemble a lot of these things you probably don't use the actual parts you melt down metals and other materials that are used and then that's the way it's recycled, or is it actually some of the parts actually are reused because

they're not necessarily -- >> good question many of the parts are reused, but also, when you disassemble it, there are parts within parts that are semi-precious metals or metals that can be reused. >> yeah. >> nthey are dissected and put i different categories, and then sent to the proper places. it doesn't have to be -- >> sounds expensive john paul. sounds expensive >> it's not at all >> it's not? >> it costs nothing. it's free. >> then you sell -- someone will buy the refurbished or the material that you are collecting and use it to put in -- you can make money doing that? >> that is correct in other words, you send us the material we disassemble it costs you nothing to send it to us. there's enough of something in there, we will send you a check. >> where would did he -- >> it's a pretty good system >> where are you now how far along -- if i wanted to do this, i've got a -- i actually saved a blackberry because i used to play brick breaker. i don't need this stupid thing >> no, you don't >> i would like to get it out of

my drawer. >> sure. and you should >> how do i do that? >> go on-line to renew logic, renew and then logic.com renew logic.com. it will give you all the information on where to send it. we're here in austin, texas. we're in full operation. renew logic.com. send us yoo you are stuff. the great thing is it doesn't cost them anything so often people have this. now, how do i ship it to china or other places that will somehow dispose of it for me out of the country you don't have to. right here in the united states of america we take care of it and all in a very environmental way. the best you could ever imagine. >> and you're up and running, and it's -- what do you think you could do in revenue in the next year, for example

>> if you put that aside, the money it could generate -- it will generate enough money to be a profit, but what does it do for our land what does it do for mother earth? it cleans it up and doesn't hurt it anymore >> are supplying clean delicious tequila to people, right that's sort of the same thing? >> drink responsibly, and you're happy. i look at it this away i it's the best there is there's none better. when you have something like patron or the paul mitchell, it's not only good for you, for whatever you want it for, but believe it or not, every one of those companies gives back more than you could ever imagine, whether it's to pets, whether it's to orphanages, whether it's to -- we're still building

houses in new orleans at the st. bernard project left over from katrina. our people from patron are still down there building houses we really get into the environment. all the companies do i don't like to get involved in anything that won't do something to give back to the people or to the planet >>. >> we talked about brsh this is off topic from some of the great work you're doing and the serious work you're doing. i'm still tweaking the -- trying to find the perfect margarita, and i have tried you say -- >> got it give it to you >> let me give it to you the perfect margarita. put one and a half ounces of patron silver. >> or it could be three if you double it. >> well, but don't drive if you have a double. >> it's friday i'm not driving. >> i love it that's right it's friday. half an ounce of lime juice. a half an ounce of pineapple juice. put in the shaker and shake it up freezing cold.

freezing cold until the ice almost falls off you pour it in your glass. before you do, put a little bit of lime around the rim take sugar and cayenne pepper. mix the two together and kind of salt the rim not with salt, but with this combination of cayenne pepper and sugar together then you pour it in straight either with ice or without ice entirely up to you you will have one of the most unique margaritas. if you want some spiciness, put your lips right to the rim if you don't want that,, just move it aside. >> no simple syrup, no quantity row, no -- >> no, no, no, no. >> no triple sec >> what i believe is that will just the patron, legal juice, pineapple juice. some people put some citrange in there. >> what is that? >> citrange. it's like a p thetriple sec, bu little better. patron silver, ounce and a half. half ounce lime juice.

half ounce pineapple juice pour it back with the same ice you shook it in, and the salting of that rim, no salt that sugar cayenne pepper together, incredible margarita it's exciting. you will love it it's something to talk about it. peace, love, and happiness >> we'll talk hair next. i need some advice with that too. >> here here >> we'll talk about that next time j.p., thank you. appreciate it. >> love you guys out there thank you. >> okay. coming up next, innovating the ipo process. we're going to talk to a ceo that is looking to do just that right after the break. squawk returns in a moment

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. >> amongooo -- mongo db ranked the disrupt he were 50 list of the innovative companies that are changing the world ibm, mofts, and oracle are cited as competitors it is looking to disrupt. while we're on this topic, a new silicon valley stock exchange is looking to disrupt the way firms publicly list their shares it's minimizing pressure on public companies from high frequency traders and activist investors. joining us right now to talk about it is the founder and ceo of the long-term stock exchange. this is a fascinating and provocative new way to try to fix a lot of what we've been talking about needs fixing these days, eric

this would be a completely new -- this would be a completely new exchange. explain what the four big ideas that are that make it so different? >> we still integrate are the national market system we provide complete liquidity to companies. this is part of the listing standard first, what we call long-term voting, so that long-term shareholders have more say in corporate governance that short-term executive compensation reforms >> before you go on, let's -- let's stick on that one first.

my understanding is you have less voting rights than if you were a shareholder in the company for five years, and you might have more voting rights than if you were in for ten. >> yeah, that is exactly right all created with one share class. it's a voluntary registration that investors can go through, and the company understands who their long-term investors are. we kind of view those people as the citizens of the republic, the people who have the long-term interests of the company at heart and, therefore, should have more say in its governance >> you got to think that companies would love this. investors may not. >> you p, it depends of course, you have a lot of short-term investors who may not like it, but for the long-term investors, they really see a benefit. the whole idea of this is this is like a constitution like a social contract every stakeholder, both the investors and the companies, everyone has to give up a little in order for everyone to thrive together sense if companies are distracted from serving their customers, they're worth less money, and we all then make less money. >> the other major component is a real shift in executive

compensation investing schedules. >> on the flip side -- >> something for everybody >> what's the reaction been from executives who are looking and thinking to themselves how am i going to retain people, how am i going to attract people when they to be in this thing for ten years? >> well, remember, you don't have to stay for the full ten years, but you're incentiveized to do so when we talk to the really good companies, this is not an issue. they're already doing most of

these practices anyway this is more about having them really get credit from the markets for the good things they already do where. >> the third component, disclosure >> we still require gap reconciliation, but we lay disclosures on top of that to help investors understand which companies are investing for the long-term, and who is not where. >> in ermz it of what? meaning what are the new disclosure qualifications, and also i would mention you don't want these companies offering guidance >> no short-term guidance. the whied is to keep the focus on periods of time greater than one year >> we and think together, they made a mistake, and that's they have no idea what they're doing, and they're incompetently executing. >> the final idea is one about a

shifting governance. >> yeah, that's right. >> you know, most public company boards, especially you hear this from private companies, they become about compliance and audit. it's basically all about lawyers. we want there to be a product and strategy committee of the board and have that be the venue for deciding what really needs to be disclosed to investors and then to be able to vest governance power in the community so if you think about lyft drivers or air bnb hosts, they also have a stake in the company's future, and they should get additional voting power as well. >> why is it assumed that just because you're a long-term shareholder you have a better idea for a company, and more of the company in mind for your interest than a short-term shareholder? i still -- if i invest in the stock today versus ten years ago, i still want to make money in that stock? isn't that all of our goals? why is it different? >> yeah. well, everyone has the same economic rights. that's very important. the second is for a lot of quantity takive traders, who have an average holding period, they're not interested in governance

it doesn't really make sense for them to have the same weight as someone who is longer term then this is not a cliff system. it's just the longer i you hold the more power you accrue. people who stay in for six months have more than people who are in nor one month than one year, five years, ten years. it's a proportional system that says the longer. >> if only people voted their shares today that's a hunl problem. people don't even bother to open up the proxies they toss them in the mail, and they don't vote. for a lot of people this is going to go over their heads >> well, it's actually really difficult for companies to even find out who owns their stock in real-team. if you look at some of the proky contests, the amount of money that's being spent by the company just to be able to communicate with their shareholders is ridiculous yeah, we think we can make that process much more efficient. >> before you go, what's it going to take for this to be a

reality? >> we have to get s.e.c. approval, and we're working closely with them. at the end of the day we have very positive conversation with customers who have said, you know, you actually talk to the companies who are dealing with these problems this is a huge, huge crisis for them very frustrated about it ultimately it's going to be the companies who will decide if this is something worthwhile we're looking forward to that. >> irk a, it's a unique and provocative idea thanks for joining us this morning. >> thank you so much appreciate it. when we return, facebook's plan to curb election interference for mark zuckerberg on the issue, and he did it, where else, on facebook live we'll tell you what he said next take a look at the futures as we count down to the opening bell just about 15 minutes away we are looking to open lower across the board here. squawk books will be right back.

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the internet companies and the other technology ones really seem to be an unfair target in the eu looks pretty obvious that they're becoming discriminatory because they're worried our companies are so much stronger than the ones in europe itself >> that will be music to the ears of some technology companies this morning that was commerce secretary wilbur ross in the last hour

effectively saying it's political that much of the regulatory efforts that we have heard the eu pursue against google and perhaps even facebook and others not necessarily on the merits but on something very different and that will make headlines today i imagine. facebook, meantime, speaking of tech giants, launching an overhaul of paid political ads after congressional pressure and heard from president trump on the issues this morning. the president tweeting the russia hoax continues. now ads on facebook. what about the totally biassed and dishonest media coverage of crooked hillary. julia boorstin joins us with more good morning. >> reporter: he is addressing the statement of facebook zuckerberg making sure facebook is a force for good in democracy. facebook is now turning over to congress the 3,000 ads believed to be from russian profiles, ads already shared with special counsel robert mueller this is quite a 180 of

zuckerberg saying in november that fake news on facebook didn't influence the election. >> now we are going to explore ways to share information of anyone attempting to interfere with elections now, it's important that tech companies collaborate on this because it's almost certain that any actor trying to misuse facebook will also be trying to abuse other internet platforms, too. >> intelligence committee ranking member schiff with a statement on facebook's decision to release data saying, quote, it's important for the committee to scrutinize how vigorous facebook's internal investigation has been to test its conclusions an ento understand why it took as long as it did to discover the russian sponsored advertisements and what else may yet to be uncovered. as for what other tech companies are doing, representatives of twitter meeting with the senate intelligence committee next week in with the investigation. back over to you. >> i imagine it's a mad dash to

get things in place before it's mandated for them to do so. >> absolutely. i mean, a lot of changes coming here if you look at just sort of what's happened in the week or two at facebook, you know, facebook has put together this nine-step plan they're going to be hiring people, changing theal rory themes and a lot happening internally. >> thank you yulia boorstin. coming up, uber is losing its license to operate in london and the twitter-verse is responding in a very big way and tuouhasty ene orwh w rern

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welcome back a story we have been following all morning, london's transport regulator saying they won't renew the license of uber and won't operate in london. now twitter, though, responding. check out a user tweeted writing, quote, news of the uber ban just reached shortditch. an inner city in east london you're looking a the that kind of old bicycle of sorts. but it will be very interesting because they can appeal. they get 21 days to appeal this and given the outcry, also, 40,000 -- i mean, the

complicated part is the taxi drivers are probably thrilled about this but there are 40,000 other people, like the employment for a small town as some people suggested that could be out of work if this were to go through and, of course, weighs on the future of uber itself given i believe the second largest taxi riding city in the world currently i think there's other cities that obviously, china and elsewhere which would use more taxis. >> i can't hold back the dam you can't stop progress. this won't last i don't think. >> can you still do -- not do pickups of uber in the hamptons. remember east hampton they wouldn't allow it for a while now turning into a one-person show >> don't look at me for hampton info i mean - >> you did it to -- i remember when we had -- >> rhetorical question you're the hampton dude. >> i'm not but - >> uber guy on from new york. >> it is hard for london to attract technology companies if

they're saying, you know what? we won't embrace technology here i don't know. >> you know who we can ask quintanilla. see the big house in "the new york post" big, new mansion he's the hamptons. >> speaking of carl -- >> okay. we are going to say good-bye we'll see you all on monday. we hope you have a great weekend, everybody "squawk on the street" begins right now. ♪ good friday morning. i'm carl quintanilla with michelle and mike. cramer and farver are off. tax reforms in focus iphone debuts today. europe is mixed ahead of germany's elections and more fed speak, as well road map