and now they're calling for a snam election. it's monday, september 25th, 2017, and "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" right here on cnbc we're live at the nasdaq market site here in new york. becky is off today take a look at the u.s. equity futures at this hour this morning after the weekend here dow looks like it would open up down about 18.5 points down. nasdaq would open off about 9 points down. the s&p 500 looking to open up about 3 points later i don't know if you saw that dow 1 million in 100 years from now. >> that doesn't say that much about the annual gains though.

>> that's true that's true. you're looking at me why am i reading barons. >> that was my first thought my second thought was why hope for a million when we can get to 100,000. >> that's true that's true. >> the other thing is that fact points to the singularity at this so that we're all there. >> we will be there -- >> not from -- not looking down sort of placidly from the after life. >> i also -- just given your superstitions to remind you, it is past september 23rd now we're still here. >> oh. >> you had some questions about that last week >> no, no, no, on friday -- i'm not kidding. on friday the guy said he miscalculated. the biblical numerologist said

he miscalculated he said we're going to start seeing signs i didn't raise any chaos. >> i think gold was the trade. >> i didn't show you what they were doing. >> there are some reports the japanese mime minister is going to boost abe's approval rating it could help him retain his ratings. he's going to pass a massive stimulus package worth $17.8 billion. the look at the hang accepting and shanghai composite down marginally the nikkei up. in europe, germany's angela merkel was re-elected to a fourth term as chancellor. the nationalist alternative for germany party picked up 12% of the vote much more on the german election and what it means in europe and

what it means to the markets in just a moment. to politics now. president trump issuing new restrictions on travel to eight countries including north korea and venezuela. this after the administration's ban after six countries expired yesterday. the president said countries have not cooperated on issues related to terrorism in other news out of washington, republicans are making a late bid to repeal and replace obamacare. they are adding an additional $14 billion to states sponsored by lindsey graham and cass day rand paul and john mccain said they will vote no. senator graham says republicans will still press ahead with a vote on the bill this week >> to tax reform president trump is expected to give a speech outlining the so-called big six framework.

the top individual tax rate now will come down from 39.6 to 35%. the corporate tax rate will be taken down to 20%, currently 30%. yesterday president trump told reporters that he hopes to see the corporate tax rate lowered to 15% but that's a target republican leaders including house speaker paul ryan says is impossible to reach without adding too much money to the federal debt president trump taking on the nfl in a very big way over the weekend. it was probably the conversation of the weekend for many. in a series of tweets the president blasted the league for allowing players to protest the national anthem. he's even called for a bweekend of protest. >> it was a week end of protest in the national football league.

take a look at the teams around the league some teams decided not to come out of the locker room other teams taking a knee. it was all kicked off over the weekend on friday night with the president speaking in alabama at a campaign rally the president said that owners when one of the players disrespect the flag, he said, get that son of a bitch off the field right now, he's fired. that prompted a backlash among some of the players who respected the ability of colin kaepernick and others to take a knee in the national anthem in protest of what they call police violence in the united states. the president looking at these scenes over the weekend said on sunday night that he was pleased with what happened here's the president at andrews last night. >> i certainly think the owners should do something about it there was great solidarity i watched a little bit i was not watching the games today, believe me, i'm doing other things, but i watched a little bit i will say that there was

tremendous solidarity for our flag and for our country >> reporter: the president made political enmice of some of the strongest stars. the president tweeted out a disinvitation to steph curry and the warriors they were delying and he said they were no longer invited to the white house and he said, you bum. steph curry i'd ain't going. going to the white house was an honor until you showed up. robert kraft, the owner of the patriots also expressing some anti-trump sentiments here, frustration with what the president has done in terms of national conversation. i am deeply disappointed by the tone of the comments made by the president on friday. i support players' rights to peacefully effect social change and raise awareness in a manner that they feel is most

impactful. so there were scenes of division pro trump fans, anti-trump fans, pro protest fans very chaotic weekend over the weekend. the president decided this politics works for him he's going into a big week in washington in which he's trying to push through tax reform he's trying to resuscitate health care reform all of those things on the a gain as we see this social division swirling around the country over the weekend back to you. >> eamon, is there any fallout one way or the other whether we think there was a huge follow up with the smons sores on the side of the nfl. >> this is unprecedented we're seeing real divisions. speaking as a business, you can imagine that the nfl just

doesn't want to be drawn into the divisive social politics of our time and now they are squarely drawn into it they've been able to stay out of it for the most part the nfl has historically prided itself on being an expression of american patriotism with the giant flags, the anthems, the military flyovers. all of that associating the nfl with a brand and patriotism. now those waters are a little bit muddied. the president over the weekend tweeting out support for a ban or a boycott of the nfl by fans who feel that they don't like what they're seeing out on the field. for the nfl, this can be tricky. for politics, i'm not sure where this goes. whenever you have this much anger and fervor, it will have a

political impact. >> before we let you go, eamon, fascinating story in politico. i don't know if you caught it last night jared kushner and his use of e-mail >> yeah, i haven't had a chance to dive deeply into that the question is whether or not jared kushner is using private e-mail to communicate with people inside the white house and do white house business on his own e-mail account that's the one you're referring to >> that's the piece. we talked about e-mail for a very long amount of time on the show during the election what seems like -- >> their own server? >> that's his own server >> his own domain. his own domain >> you're the master of your own domain >> i like to think i am. >> good seinfeld. >> if you're referring to -- >> that's a whole different. what the piece did suggests is

that he had set up his own domain whether he was initiating -- >> let's move on. >> whether he was initiating the e-mails or not, people inside the administration were doing private business. >> there are rules that enable you to use private e-mails, correct? as long as you forward them to the official white hauser offer at the same time there are ways you can use private e-mail records -- they created the documents part of the white house. they're generally regarded not as part of their own property but property of the taxpayers. >> i don't believe the secretary of state needs to save all the e-mails, eamon >> that's right. >> the big issue with hillary clinton, right i know we go back to the hillary clinton clinton issue setting up her own issue. >> meanwhile, weiner is going to get sentenced. >> meanwhile, there are people

in the white house -- i can tell you, there are people who communicate using private texts, e-mails, other waste of communicating on a regular basis, but in order to communicate frequently. >> eamon, whether they're doing it out of their private e-mail, messaging, signified, whatever he was being accused of disappearing e-mails, it's in a similar place. they will not be kept as formal white house records, right why they're doing that, you have to look at them and look at each particular communication in order to understand it there are definitely people in

the white house who don't want other people in the white house knowing what they're sending and that's why they're using these other systems in order to get messages out as a reporter i can tell you you communicate with people in the white house on any system they want to communicate on >> it's not exciting me between jared and hillary. >> no? >> no. weiner is getting sentenced today, eamon >> you're worried about that you're worried -- >> no, not worried that all relates think about that, that was the final -- like we're going back into the investigation based on this guy. >> the e-mails >> it's just weird and now it all comes home to roost today that he's -- her' asking for like two years prison. you look at shakespeare falls from grace, tough to get one it's a lower low than what's going to happen. >> we'll have to see what

happens. >> could be two years. >> could be two years in prison. you know, there's an indication there that he doend know how to pun. if i can ij i canically, emotionally. >> eamon -- >> i'm going to leave it there the whole master of the domain thing, coming around to anthony weiner dangerous territory. move on. >> you're right. >> that's it. >> you're done after all is said and done with the nfl, one thing though, andrew, was the same, the bengals. one thing -- that's -- did you watch that, quail? >> it looked like they were going to win. >> yeah, they did, miami, right?

anyway, good to talk about the sports side of things. that's tough chancellor angela merkel clinching a fourth term in germany's election joining us is robert kimmet who's there for the lufthansa meeting. at this point, is there a metaphor how you would characterize her standing and power? as far as outcomes go, this is the weakest she's been in the four times she's been elected chancellor, right? >> yeah. good morning, joe. what i would say about this election, it was predictable, concerning and complex predictable in that she is going to start her fourth term, but as you say, from a weaker position. concerning because a far right

party has come into the german parliament for the first time since the nazi era and complex because there will be six parties in the parliament and we will likely see for the first time at the federal level a coalition involving three parties. >> and that starts in earnest today. will anything change in terms of the way germany approaches eu integration or the refugee policies will anything -- is there pressure being brought to bear on merkel's policies at this point from this? >> i believe the approach to europe will remain largely the same she has already begun to adjust the open immigration policy that she's started in 2015, which i think was the major cause for both moving to the far right

party, the so-called alternative to germany i think the most important thing for your viewers is that one of her likely coalition partners out of the free democratic party, they're referred to as the liberals in germany. in the u.s. they would be considered libertarian very free market in their or riff entags. mr. lintner, the head of that party, said that one -- the finance minister in germany in addition to doing what our secretary does runs the german budget so i think we could see a different approach to the budget if, in fact, mr. lintner and the free democrats get that finance ministry. >> that's very interesting that's the classic use of the term liberal from, i don't know, 70, 80 years ago meant more libertarian than -- it's now

analogous to progressive that's an important note you make that could mean if you hear in germany the liberals are taking over, it sounds like it's not. >> very much they're free market oriented they're driving very hard on innovation one of their central platforms was to make it easier for companies to start up in germany which has been a high barrier to entry. i do think in terms of economic policies broadly, if, in fact, they put together this three-party coalition, a so-called jamaica coalition, because it would be the cdu, the party represented by the color bla black, the liberals represented by the party yellow and the green and those are the colors of the jamaica flag. if they do send up that

tripartaid coalition, the free democrats, the liberals will have a very pronounced area on economic policy. i think that will be good for germany, good for europe and we'll see how that happens it will take place over the next four to six weeks. intense negotiations that would begin today. they actually end up writing a very detailed contract, and i think we need to watch very closely who goes into what positions and then what positions are laid out in that contract. >> yeah, got to think of prosperity versus stimulus it factors in who is a successor to mario draghi eventually and the incumbent, is it hubel dominated by him. >> scheuble.

>> that could change as well, right? >> yeah, absolutely. i think that's the key thing, particularly for your viewers to watch. wolfgang scheuble has been there for quite some time. he had an a didditional cost he just turned 75 last monday, but he's still fit and ready to serve. again, the liberals said that the last time they were in coalition with mrs. merkel they came in with more votes than they got yesterday they ended up not even crossing the 5% threshold in the next election and lintner said one of the big mistakes they made was not getting the finance ministry i think this is going to be a key part to the knof the negotin

if mr. scheuble left, he would see a push to replace mario draghi in 2019. >> all right i guess it would be too much to hope for, ambassador, like could liberals in the united states ever become more free market oriented is that something i could hope for at all, more private sector -- or that's probably not going to happen in this possible >> i like to think so, always. i think we're stuck. >> my feeling is you ask what's right for small to medium enterprises you'll come out to the right place. >> amen. >> they create 75% of new jobs, both in the u.s. and in germany. >> right >> that should have broad support across the political

spectrum >> yeah. these are liberals i could live with, i think. anyway, thank you, ambassador kimmitt. we appreciate it. coming up this morning, the biggest movers we'll talk market right after this break ♪ ♪ where's gary? 'saved money on motorcycle insurance with geico. goin' up the country. later, gary' i have a motorcycle! wonderful. ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ geico motorcycle, great rates for great rides. my "business" was going nowhere... so i built this kickin' new website with godaddy. building a website in under an hour is easy! 68% of people...

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welcome back to "squawk box. time for our monday morning strategy session phil orlando, chief equity market strategist. phil, i'll kick it off with you. where do we stand here in the markets in this third quarter? >> so we had this 3% correction in the middle of august. market has popped back to record highs. we've still got some issues. looked at the german elections right now. put that in the category of geopolitical risk. we had north korea at the top of that subsector who's to say what the issue the fall back is going to be here. we still think we can see another little pull back here over the next couple of weeks to a month and before we get into sort of the year end rally situation. >> jamie, is there anything concerning in the markets? i'm thinking we had tremendous leadership for most of the year from apple it's down 5% for the month here. it had been one of the stellar

performers in tech, tech being a stellar performer overall in the markets. are you worried about the rotation we're seeing could cause some hiccups >> i'm not in particular apple. i think when you introduce two phones at a time and you introduce a new concept phone with the apple iphone x you are not going to see a phone with a small improvement over the iphone 7 you should not pay much attention to it until after the release of the iphone x. the russell 2000 is up 100 points in 30 days. that's a pretty stellar run for that index it wouldn't surprise me to go back to general markets to see a little pull back here. that's kind of unprecedented to have that type of move in the russell 2000 in a small time even off a small correction. i think we're sort of due for a correction of a little bit more magnitude than what we've seen we have sectors like high yield that are clearly over valued

you have fully valued markets. you have a lot of really crazy things going on in the marketplace. i think it's high time that people should prepare themselves for that correction. >> you both are sort of on the same page in terms of seeing a pull back. which sectors are most vulnerable at this point if we do see that pull back? >> i think we're seeing a little bit of an internal rotation where energies and financials which have been laggards are catching a little bit of growth. the growth areas are starting to correct. so that's something we would absolutely expect to see >> the rise in financials, is that warranted gish tven the flattening that we've seen >> i think it's absolutely warranted. the fed is shrinking the balance sheet. we're looking for another rate hike they lay out three more rate hikes. the fact that the u.s. economy is doing well, the fed is getting back on track. that's exactly the sort of

recipe the financial service companies should do well under. >> jamie, the president's en a's expected to give a speech about tax, tax reform or tax cuts, i should say how much of a factor is that in your projections for the markets? granted, i don't think many people believe that that is sort of a catalyst, per se, here that's in the near term, but how far out is that in your view is that a possibility? >> i'll believe the details of the tax package when someone actually utters them they're saying, they're going to come out they're going to come out. if any of the president's other legislative endeavors are a guide, i'm afraid that folks that think they're going to get 15% corporate or even lower marginal rates for consumers, they need to be -- their expectations need to be muted. not only that, the ability to get this through congress. we're getting close to an election year next year. as we approach the end of the

year i don't think the tax reform is going to happen in 2017 despite the president's desire and despite the efforts of congress. they're just not able to get anything done because they can't all agree on anything, even something as simple as tax reform it's needed. the economy is doing fine even without tax reform if we move that aside and say, gosh, look at the economy just broadly, not just here in the u.s. but around the world, there's not a lot of incentive to need tax reform to move the economy to the next level. you know, they might be in your matrix but it's generally rev very nent. president trump says a blueprint for tax reform has been finalized it's due on wednesday. we'll talk to jonathan swan, a reporter at axios next as we head to a break, look at last week's s&p 500 winners and losers

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strong week last week. down 15. we'll see what happens by the time we open those futures kind of reflect how i feel on most mondays kind of. >> kind of negative? >> not negative, just not ready to go yet. not ready to go. you know, still, had a couple of margaritas it takes longer to recover. >> friday. friday and saturday but then it takes longer to recover. i don't -- you know, weekends -- >> do you sleep? what's the latest you sleep now on weekends, andrew? >> 7. >> yeah, i know. >> wow. >> 7:30. >> but i could be like a college kid and sleep -- >> if there weren't kids in the house or whatever, i would sleep until noon. >> if your grandmother had -- what do you mean there are kids i have kids. >> the same. >> i could be like a college student. >> here's what's going to happen >> i'd like to. >> your kids stay out until 12:30 at night and you still have to get up so now -- >> don't they sleep late now >> oh, yeah, sure, but you know -- and i have three -- i

consider my dogs kids, too. >> they need to go out. >> yeah. so just no sleep. >> sleep we don't sleep anyway -- >> i sleep plenty. >> do you? >> yeah. i sleep until 9:00 easily. >> 9 >> yeah. >> i haven't slept until 9 until -- >> 9 >> do you know what that is? >> how about a nap >> oh, yeah, i can sleep at any time >> now >> not counting during the day >> all right stocks to watch today, unilever buying carver korea for $2.7 billion. they've been working towards expanding the beauty and personal care business carver was the fastest growing skin care business in korea. they were a kwieg the business for $2.6 billion they are hoping to improve the lackluster business. they're hoping to buy gigya and

they're looking to strengthen its position terms of the deals were not disclosed. president trump tackling two key parts of the agenda. tax reform and health care as he continues the high profile fight with the nfl joining us to talk about all of that and more, jonathan swan, national political reporters at action i ow axios. how are you? >> good morning. >> you had a scoop looking at what the tax plan may look like including looking at the top individual rate. tell us about it. >> reporter: so this discussion has been happening for months within a framework known as the big six. they have been incredibly secretive. nothi nothing -- amazingly in washington, nothing has leaked out. friday a few things leaked out corporate rate cut from 25 to 20 we scooped at axios on saturday.

the top individual rate cut from 39.6 to 35 and the pass through rate, the rates most businesses in america, small businesses, sole proprietorships, that's going to be cut to 25, the top rate there >> and in terms of whether these are just sort of starting points, on the corporate rate, for example, the president talked for a long time or even up until now that he was trying to stick with 15%. >> right. >> now they're moving to 20. are we ultimately talking about 22, 23, 25 where do you think we're going to land here >> the other wrinkle in all of this is, look, everyone expects -- when i say everyone, republican leadership and white house officials expect the president to endorse the plan agreed upon by the big six but he still hasn't given us his -- until trump actually stands on stage in indiana on wednesday and says the words, we can't even take this as given because trump in the past has said, you

know, i can't sell this. i can't sell that privately to his aides. he's very nervous about it being perceived as a boon for the rich of course, even if he does come out and endorse this plan on wednesday, which i expect he will, it is just a very, very, very starting point for this before we go into regular process. >> right. >> before we go into house ways and means. this is going to change be a lot. nobody i've spoken to, you know, is confident that the corporate rate will stay at 20. >> jonathan, what's a realistic time line given that we've heard various time lines offered by the white house before, including ones that have already come and gone. >> they need to get a budget done, right? i will say that people who follow this very closely, tax experts were surprised by the deal that was cut in the senate budget committee bob corker who's known as a deficit hawk agreed to --

deficit spending reduction revenue of 1.5 trillion still needs to go through the house. still needs to be agreement. the budget is really a signal for whether they're going to get this done or not if there are long, drawn out fights over the budget in the house, it's a signal that maybe these guys don't have the appetite to get this done if they're getting hung up over small things they should be able to get a budget done in october certainly by thanksgiving and at the stretch, we don't want this to be stretching beyond q1 that's where it starts to become very difficult politically. >> thisis a 2018 project as fa as you're concerned? >> they want to goat it done this year. they wanted to get it done by august this goalpost just keeps moving so who knows. >> okay. we always say you have some of the best sources inside the white house. give us your take on what was

the reaction to president trump's tweeting about the nfl over the weekend internally. >> reporter: well, there's always a division internally on any issue because you have to remember, a lot of president trump's senior aides don't really agree with him ideologically. they weren't on the trump train during the campaign. a number of them would be quite comfortable in hillary clinton white house so i actually haven't spoken to a ton of them about this particular issue. i know there are some people in there who think it's absolutely a winning issue. steven mnuchin, the treasury secretary who is loyal to donald trump to a fault, he will support him on absolutely everything is supporting him to the hit on this even saying yesterday on sunday tv that the players can have free speech in their own time

he does back trump in a way that, for example, gary cohen would nef do he was very critical of him in charlottesville. >> while i have you, there was a "new york times" poem on saturday rk thes piece reflecting janet yellen and he are in the hunt for this role. >> the only thing i'll say, donald trump changes his mind, who knows. the one thing i can confirm is that donald trump has said to at least one official who has no economic expertise that they have a better chance of being fed chair than gary cohen. to be fair, that was a couple of weeks ago when he was really angry with him you know, you always need to factor in the goalposts changing but i'd be truly stunned if trump is seriously considering

giving this job to gary cohen. >> look forward to seeing you soon. >> thanks for having me. coming up, german election results. angela merkel's party retains the lead then our special guest at 8:00 a.m. eastern time, rerobt johnson, founder of b.e.t. and rlj companies. stay tuned, you're watching "squawk box" on cnbc 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. ♪

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time now for the executive edge uber reportedly looking to make a deal with the city of london after authorities there decide not to renew uber's license. reports say the concessions likely involve changes to passenger safety benefits for uber drivers including possible limits on working hours to improve road safety and holiday pay this morning uber's new ceo out with an open letter to londoners. he apologized for mistakes they made and vowing to work with the city to make things right. gasoline prices are coming back down after a spike following hurricane harvey the national average is now $2.62 down more than 7 cents in the last two weeks according to

a lundberg survey. prices decreased because -- that was when there was a line, i think. refineries in shipments that have been disrupted by the hurricane returning to normal. okay all right. it's not even the hour >> pretty funny. continue to be a sequel and a remake topped the box office "kingsman: the golden circle" brought in $39 million horror film "it" dropped to second place after two weeks at the top. it earned $30 million in north america bringing the global total to $500 million. it is the highest grossing horror film of all times. coming up, the book "blue ocean strategies" an iconic guide to business strategies published more than a decade ago. the follow of blue ocean shift hits store shelves now

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♪ ♪ welcome back to "squawk box. 2005 professor rene strategy. joining us now to talk about her follow-up book coming out tomorrow it is called "blue ocean shift." good morning >> good morning. >> tell us about blue ocean shift. >> "blue ocean shift" addresses a key challenge we all face. >> and that is what? >> how do we shift ourselves, our teams, and our organizations from competing to creating or from cut throat markets to wide open new markets

>> air bnb is creating a blue ocean. you look at what uber is trying to do. it has some difficulties, obviously, but our book lays out -- >> it is fighting for its life >> yeah. today, but did it open up a wide new market yeah that was the disruption. there's also what we call nondisruptive creation to create new markets. >> explain what that means >> nondisruptive, what we mean by that is creating a new market where there once wasn't any. i'll give you an example take life coaching that industry didn't exist 20 years ago. today it's a $2 billion industry the second fastest growing profession in america behind i.t.

>> if you look at retail, and you remove the signage, you won't know whether you are in a lord & taylor or sacks or bloomingdale's if they want to become viable, they need to shift themselves from competing to creating and creating new opportunities that's what they need to do. >> what if somebody hired you to advise them, what would you tell them >> stop making competing your number one priority and make creating your number one priority if you don't, you are never going to move the needle second thing i'm going to tell them is get super clear on your current state of play in the industry because we have a tool in the book that does just that. if they did, they would find out they all compete on the same

factors. their strategic profile departments look all the same and they haven't changed in 30 years. since i was 7 years of age now, what does that do it gets everyone aligned around the need for change. it makes people realize importantly that they have created their troubles, not amazon third, what does it do it takes the levers of control from amazon who we think is destroying ourselves, and gives it back to ourselves because we see our future as as bright or as weak as what we do, and that's what i would do get clear and make creating your number one priority. the book shows you how >> are these lessons applicable to individuals

>> typically when you create something new, you only have maybe a 12-month runway, meaning to own your own space, if you will then you're going to be back in the red ocean, right >> yeah. you look at all the companies in our book kimberly-clark, they apply the process in brazil. they revolutionize the industry. here we are ten years out. they're still the industry standard if you look at industry, we are looking at number one fastest growing hotel chain, most profitable citizen m. they applied the tools and framework and opened up a whole new market they're here in times square and around the world, called affordable luxury. five star comfort, three star price. here we are nine years out, and they have their own blue ocean no, you don't get -- look at home depot it just had its best quarter it created a whole blue ocean, right? that's going for a long time

actually the myth is people try to imitate, but the problem is look at this, andrew we think amazon is so successful today. it's so mighty amazon actually failed many times. when did it fail it failed when it went after ebay, it a blue ocean player boom, couldn't do it it failed when it went after zap pos, couldn't do it. had to buy it. the best offense today -- the best defense is an offense, and the best offense is creating these blue oceans, and they last >> renee, thank you. snoo thank you >> congratulations good luck on the book. >> thank you so very much. >> coming up, angela merkel, conservatives winning re-election, but with the lowest support levels that her party has seen since 1949. we're going to talk to germany's ambassador to the united states right after the break. and as we head to the aforementioned break, take a look at the euro sliding on the day following yesterday's election we'll be right back. ( ♪ )

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global politics. germany votes to re-elect achela merkel, while japan's president abe calls for a snap election. we'll call for the two global stories and find out what they'll mean for your portfolio straight ahead the nfl versus president trump after he calls for a football boycott as more players take a knee during the national anthem and the great space coaster stops by the squawk set. hayden planetarium and host of "star talk" neo degrass tyson will be here as the second hour of "squawk box" begins and takes off right now.

good morning welcome back to "squawk box. i'm andrew ross sorkin along with joe kernan and melissa lee. >> we're looking at down arrows. dow opens off about ten -- nine and a half points. nasdaq down by four and a half points, and the s&p 500 off close to two points. here's what's making headlines at this hour the senate finance committee set to hold a hearing today trying to build support for an obama care reform bill now, republican leaders are attempting to revamp the bill to sway hold off out senators the ability to pass that bill with a simple majority vote will expire on saturday

pelts will be right here on the set on thursday at 8:30 a.m. to discuss all of this with him walt disney threatening to pull its programming from optimum systems run by altise. that's the fourth largest it u.s. cable operator, once cable vision cable vision is a big part of that, in what's become a familiar story the two sides have been unable, though, to come to an agreement on a new carriage contract the current deal expiring at the end of the month, and the are away of words is getting fiercer. abe's approval rating has jumped over the past few months, although some political observers are saying it's a gamble that could create a political vacuum chancellor angela merkel clinching a fourth term in germa germany's election former jerlan defense minister chairman carl theodore

gutenberg. joining us from washington german ambassador to the u.s., peter wittig ambassador, thank you for joining us we'll get to you in a second ambassador, when will we know the make-up of the government exactly? it starts today. how do you think that finally plays out? >> well, first of all, i think it's worthwhile highlighting there is a clear winner. that's chancellor merkel she won her fourth term. she has a clear mandate to form the government there will bely at lot of continuity in germany's role in europe and the world the chancellor has said she wants to continue her successful economic policies of free but social market economies and free trade and a clear view of reforming the european union there will be a lot of continuity and, of course, germany will be a very reliable

partner to the united states now, there will be a difficult negotiations ahead with probably two coalition parties, but that's not something unusual that takes a couple of weeks, and i'm sure in the end there will be a government standing at the end of the process >> so it's -- compared to i think she won 42% last time. it was 32% this time that's definitely weakened do you expect it to be what is being called the jamaica coalition where the liberals and the greens are together with chancellor merkel's party? is that the most likely outcome, mr. ambassador >> yes, that seems today the most likely outcome. now, the losses of not only chancellor merkel's party, but also the central democrats, former coalition party, were largely due to the rise of this

new protest party, so-called afd. those were kind of priced in beforehand, but there is a clear winner in this election, and that's the cdo, cso, the center right party and she has a mandate to form a government, and i strongly assume that it will stand in a couple of weeks, and, again, here there's a lot of continuity in germany and in europe and in germany's role in the world. >> yes, continuity in some regards. we'll see continuity in the foreign policy stage, and i think it's good news that we know the chancellor has been re-lekd and will be the next chancellor as well on the other hand, it is not that i would say we are used to that kind of coalition building. it's the first time that a

chancellor in germany has to form a coalition with more than just one party we now are not only talking when we get into this framework, talking about two parties. we're talking actually about three parties. the sister party of the csu, which turns out to be my party, is an independent player in this whole game, and i think it will be extremely complicated to form something that will be long-lasting it's the only option right now all in all it's the first time germany has a two-party -- it's going to be hard it's going to be complex it will be managed to a certain degree, but it's a new stage in german history >> to your point, ambassador, aren't the parties very different also dfdp's differ tremendously from the green party on issues ranging from tax to immigration. how -- i mean, there may be continuity, but there could

actually be discord when it comes to domestic issues >> yeah. when i said that there's continuity, i referred mainly to the international politics and germany's role in the world. indeed, three parties in the coalition, that's something new, and they are different i think the chancellor has proven in the past, and this is her fourth term that she can manage to form partnerships with a variety of political forces. i would trust her and her skills and the need means to have a strong acting government in germany that she will manage in the end to form a government there will be a process of, you know, negotiations and detailed

discussions about the various fields of domestic politics, and in the end i'm pretty confident that we will have the government standing that is acting. >> well, something -- there's something that was reflected in these. is there any difference in refugee policy any difference in we hear maybe that the new finance administrators will be more private sector oriented. how would that be reflected, ambassador wittig? >> well, the emergence of that new party is, of course, the big new factor in germany. it's a protest party in my view.

>> she will make our external borders in europe safe and secure and also together with the european countries tackle causes of immigration. that is sort of a clear intention here i believe there was a political change, but that would not change germany role in europe and in the world and, again, here in europe we a chance to reinvigorate with the new french president together without the partners in europe, and i think that's something that the chancellor will be very mindful that it's her responsibility, the responsibility of the new government to push european union ahead for further reform >> i agree with you, ambassador. that's good to see you >> thank you

>> if you take into account that these coalition talks will take probably two to three months now, it's the most complicated setup we have seen more many, many years in germany. actually for decades at the same time we'll hear mccall laying out its ideas about the future of the yourp even union within the next few days we have heard the speech of theresa may just a few days ago. we have a hugely complex european framework right now europe needs to be pushed forward with reforms, and in germany and coalition talks. whether will be the role of germany in the next few weeks?

>> you will have a political compass and a charter towards reform and reinvigoration of the european union i think that's a clearer message that we will not waiver in leading europe together with france and other partners towards reform and reinvigoration >> okay. mr. ambassador, we thank you thanks for being with us this morning. we appreciate it k.t. will be with us for the rest of the hour >> coming up, when we return apple fans snatching up the newest iphone, but there are some early indications that demand for the new iphone 8 may not be as strong as previous models we're going to talk to an analyst right after the break. ed lee is going to help us also, later, it a hayden

planetarium director and star talk host neil tyson will join us at 8:00 a.m. eastern time we'll welcome robert johnson and talk politics and what the business community wants to hear stay right here on cnbc. i can't wait for her to have that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise

>> dlook at how we are setting up this morning and earlier. yep, still down across the board. we're going to lose about 6.5. s&p looking to be lower by two points here at the open. >> customers snapping up apple's new iphone 8 and its series 3 wristwatch despite lingering questions related to the phone call feature of the watch. sales good, bad? >> sales for the 8 are a little softer than they were anticipated. >> are they softer because there's less lines, and that's what people are indicating because people are buying it on-line or there's softening because the 10 is coming november 3rd

>> it's easier to buy on-line, so there's less reason to be physically on-line >> are we taking too much away from the fact that perhaps we're not having these great images of people camping out outside >> well, because thele is a nice upgrade, but it's not the big leap up that people are looking for. i think it's the 10 that's actually putting, you know, brur on 8 sales people say, well, now i might want a 10, despite the fact that it's much more expensive >> better margin phone >> better margin phone it has all the new bells and whistles >> how about the watch the reviews about the phone service not working -- >> the phone service isn't great largely because there's a weird glitch where if you tethered it to your computer, it's looking for an wi-fi signal rather than an lte signal. it's largely a software fix. zoo will it get fixed? >> it will get fixed my bigger issue with the watch is for the use case for it, if you like running, going out, listening to music,podcasts, you are limited, right you need apple music for it to

work on the watch. spotify -- there's no app on it right yet, and there's no good podcasting app either. >> spotiy isn't building an app? >> i'm sure they want to i'm sure they will, but at the same time they probably got to figure out how many people are using it should we bother building an app? after that you have to negotiate with apple there's a whole lot of hurdles there. >> we have to fix that >> what has to happen with this

during the process >> i this there's a lot of political element to this. it has something to do with how drivers are licensed and background checked >> how much are they going to have to give away, if you will, to the government in the u.k., in london to make this happen, meaning in terms of better wages for drivers, is there a health insurance -- >> all this kind of stuff? >> there's a political element in terms of tying. are they employees are they not employees there's a big movement in the u.k. among the drivers to push for those. i think that's going to be a factor that's something that uber -- i don't know how far they're willing to go, but from you are our sources they're telling us they're willing to do what they need to do >> why are you still optimistic about europe france was a failure germany was mainly a failure for uber now this whole story in the u.k., where do you get the optimism from? >> where where do i -- first of all, there's a new leadership. i think that's -- he is striking the right tone in terms of what they need to do.

here's the thing i disagree with the premise that they're a failure in europe. they're actually where they are operating they're doing really well, and i think given sort of the entrenched interest in terms of if you look at black cabs in london, they're incredibly expensive, and mass transit doesn't run all night. for a lot of people uber is the only solution in terms of how to get around they're actually filling a gap and a need the fact that they can make it profitable is very interesting >> where do you stand on facebook i mean, one after mr. zuckerberg over the weekend >> there was a washington post story from last night where there's an anecdote about president obama pulling him aside -- zuckerberg aside saying you need to pay attention to this whole fake news issue because we think it's a big thing. facebook is more than just a big snazzy new company it's this massive impact on how society works, and i think that's something that zuckerberg has come to grips with they need to do a lot more to figure out how their influence

really, really per vads every aspect of society, and then, you know, publicly what they plan to say to do about it >> is it on them, or do you think regulators will step in? >> that's the key. i think what mark zuckerberg was basically saying in his address -- he is making addresses now -- hey, we know we screwed up don't worry. we're going to fix it. meaning, don't bother trying to regulate us. we'll regulate ourselves >> joe doesn't believe that. >> trade you a facebook and a twitter for an uber. let me have the uber you can keep the facebook and the -- >> because you use uber. you like it. >> i have not -- personally i drive myself, but now, you know, the kids are getting where it's really important i don't want kids traveling late at night you can track them 15-year-old that may need -- >> by the way -- >> keep them both. >> when you said tracking, i thought about this apple has not advertised it. are parents going to use the apple watch, now that it has lt

on it, to track their kids >> i track my kid through her phone. i can track her anyway >> you can give this to a child. how old -- >> she's 12, right >> i don't know. are kids getting phones at 7 years old? >> you know they are >> 6 years old >> if they have to take the bus to go to school, yeah. >> they might. it's still expensive it's a $400 tracking device. >> you know the leashes that -- >> we don't do that. i'm thinking if a kid could just have the watch, that could be -- >> my kids actually blocked me i tried to track them, so i desperately failed here. >> a lot of schools don't allow you to bring the phone that's the other thing schools don't allow you to bring the phone into the classroom could they bring the watch into the classroom? this is where it gets interesting. >> it's a specific use case. i think municipalities and school districts are having to address that one >> a lot of viewers have children it's not just a specific use

case >> your kids are in your 30s, k.t. you should expect that, i think. >> exactly and i grew 30 years older. >> thank you always fun >> october 1st >> i'll bring the stocks back. >> is it really -- >> yeah, it's a calendar thing for me >> it's 80 degrees you can still do it. >> i guess it's true yeah i don't know >> let the viewer in on the secret >> no socks until october 1st. >> yeah, joe has a -- >> labor day >> i don't know. i feel like -- the -- it goes up my leg >> it's also really hot today, for example, here in new york. >> all right >> i dress up. >> wow >> i'm not -- >> all right coming up, i just wonder socks and -- no undergrarmts coming up, president trump taking on the nfl in a big way over the weekend julia borestein has more on that story in a couple of minutes germany's angela merkel

reelected. the chief -- what it means for the economies and the cotrs uny' relations with the united states "squawk box" will be right back. but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps. and bridges our divides. donate to your local y today. because where there's a y, there's an us.

>> futures at last check -- we have gains on the dax even after the re-election of angela merkel higher by .2%. red arrows across the board. over in asia, want to take a check on how we close there. nikkei was the only one who saw gains. higher by half a percent hang sang down by 1 .4%. take a check on oil. we did hit seven-month highs in the oil trade earlier today. we do have brent still higher by 1.25%. ten-year note, we're still watching that yield very closely, and we are 2.237% this morning. as for the dollar, we're watching euro dollar very closely in terms of the weakness in the euro after the election of angela merkel take a check on the price of gold this morning. with the dollar weaker, we do have gold trading slightly higher 1,297.8 this morning gasoline prices are coming

back down after a spike which followed hurricane harvey. the national average is now $2.62. down more than 7 cents in the last two weeks according to the lundberg survey, prices decreased because refineries and shipments that had been disrupted by the hurricane are returning to normal >> he finally got -- because -- >> in the bat cave parked it in the bat cave. >> that's what you came out. you're not going to tell me? can you tell me how much it costs per month? >>en aarm and a leg. it's like $600 in new york >> nfl owners and players were

not happy with the president's tweet over the weekend and that plased protesting the national anthem we have more on his comments and reaction from around the league after the break. as we head to a break, take a look at u.s. equity futures. we're down in the red. not terrible, but dow off about 11 points. we're back in a moment today, a focus on innovation is helping new york's southern tier soar. starting with advanced manufacturing that brings big ideas to life. and cutting-edge transportation development to connect those ideas to the world. along with urban redevelopment projects worthy of the world's top talent. here and all across new york state, we're building the new new york. to grow your business with us in the southern tier, visit esd.ny.gov.

>> aig will remain an important company at least for now the "wall street journal" reporting friday meeting of regulators resulted in no change for now in that designation, which carries with it daeshl federal security those discussions are expected to continue and, of course, have been waffling in large part because of what happened with that metlife lawsuit

also, another journal report saying new media company mashable leaning towards selling itself mashable said to have had some discussions. german tv broadcaster and another suit could emerge. viacom is reportedly involved with a possible deal for mashable, but isn't currently engaged in those talks german tv broadcaster -- three fed speeches are on tap for today. new york fed president william, chicago fed president -- all have public appearances. all three are fomc voters this year, so keep your eyes on what they have to say president trump criticizing athletes that protest the national anthem, and just now the president with a tweet this morning. so proud of nascar and its supporters and fans. they won't put up with disrespecting our country or our flag they said it loud and clear. julia borestein joins us now with more on this story. response from the athletes and the nfl owners julie, good morning. >> good morning. we won't get the ratings on the

sunday games until this afternoon, and we won't get the final numbers from nielsen until tomorrow, but president trump's attack on the nfl might actually drive ratings higher we'll see how many viewers tuned in to see how the league and players responded to the president's call for a boycott of the nfl, and then we'll see how many stuck around after it is national anthem last year's regular season games declined 8% on average this year total viewers declined 13% in week two of the season with season today ratings before yesterday's gains, down 12% according to guggenheim partners during the beginning of the season, it was largely blamed on hurricane irma and all of that news coverage. there have been some very good signs of strength. thursday night's game ratings were up 38% from the comparable gain a year ago. guggenheim's michael morris points to monday night football ratings growing 1% over last year seeing there are signs of stability.

>> the ratings could be higher, and people of the to have solidarity with the players, and there's that side of it as well. >> i think that he could definitely drive people back, and the big question is whether people tuned in to check out the anthem and then turned it off or whether they tuned in and got hooked and decided to stick around >> what do the sponsors say? >> we haven't really heard anything yet we've seen the players and the leagues that have come out in solidarity, and i think it's going to be really interesting today to see what those ratings are. >> the president just tweeted again, many people booed the players who kneeled yesterday, and then in parenthesis, which was a small percentage of the total. these are fans who demand respect for our flag what time do they come overnights >> the overnights will come

midday, early afternoon, and then the nielsen doesn't release the official final numbers until tomorrow >> the issue is the ratings next weekend and the weekend after and the weekend after that >> it's interesting because nfl has made a number of changes these are changes that have been in the works for years to make the game more engaging they are doing fewer, slightly longer ad breaks so people don't find so many interruptions they're going to be doing some screen in screen ads so whether they're doing other things on the field, they'll -- you'll see some ads on the side they're going to make things leak halftime and overtime shorter and limit that so people don't feel like the game drags on for as long >> does this at all play into the negotiation trz between disney and altice? >> i don't think this in particular does. you have to remember that the nfl is really on every network pretty much. i think that that's a separate issue, but, you know, tv ratings in general have been in decline, and nfl is the highest rated programming on television. >> roman james had an

interesting piece yesterday. don't worry about espn as people that maybe exit the bundle or exit espn, they probably weren't watching espn all along. he came back to the fundamental point that if there's one thing where roour not going to be able to dvr, skip through commercials, live sports espn is always going to have that >> that's why sports has remained the most valuable ad times. >> he said the $2 million they lose ever year, sooner or later you get down to where there are people that -- >> the core audience >> it's not going to -- probably true >> absolutely. >> everyone is paying for sports, whether it's espn, fox, cbs. everyone is investing where. >> i was looking around

yesterday. the nascar was nbc, wasn't it, yesterday? i think it was >> i didn't watch nascar yesterday. >> okay. >> have you ever >> i have. i mean, it's a fascinating story to see what's going on with the ratings there and what they're trying to do to keep their fans engaged. >> good answer >> there's a big challenge here. it's all about the rise of streaming options, and everything else that people can be doing instead of watching television >> thank you >> thank you, julia. zwrula boorstin. angela earning maniel re-election and what it means for the german economy is landau, global head of research at deutsche bank and k.t., spitsburg, and remember forrer germ ann defense minister. david, the market is an unclear message. the euro has weakness this morning. the dax is kind of flat. i'm just wondering what your interpretation is of the results and what it could mean for the economy there. >> well, if you listen to german

news, you would think this is a marnl earthquake >> well, that's what handelsblog said landslide shock. >> broader perspective looking from the outside i don't quite share that view. i think it -- there's a silver lining in here it's hopefully the inclusion of the market-oriented party into the next government. this is reflected in the market numbers this morning, both in the futures and in -- dax is up. it's basically stable. all the other indicators, too, is essentially a non-event i think looking forward there is some positives that might come out of this. on the assumption, however, that as was said earlier on your show, that a state of the coalition will emerge. it is a small probability that these discussions may not lead to fruition and that you may end up with a minority government or something like that.

my sense is that merkel is such a supreme negotiator with tremendous experience, stability, the right temperament. if anyone can pull this off, it is mrs. merkel, and i believe she will we will end up with a somewhat more constrained market oriented government you recall the grand coalition for the last 12 years basically has pushed through a lot of measures without what i would regard as proper democratic discussion and the environment, energy, europe, and all of those things while having maintained stability, it has also in a very significant way undermined sort of a productive exchange politics, it's a contact sport all of that kind of drifted away i believe you'll see more of that coming back now with the two fringe parties no, i don't view that the

election of the party which i don't take all that seriously, at the end of the day as being a major threat either to europe, to the global economy or to germany. >> can we separate out the implications between the outward facing germany and the inward facing germany in terms of how other international partners interact with germany? will anything change in your view will there be a policy stance changes on the part of germany and the new government >> nothing significant outside europe within europe probably a more reasonable conversation about where to go. again, constrained by the pay, which has been pro-europe. in a more market-based way i think the chances of seeing euro bonds has gone down not up the chances of much stronger fiscal integration of the central taxing power, i think that has taken a beating while i think integration is clearly going to proceed and with a strong backing of the new

government, but the specific measures will be somewhat different. that might change where europe is going >> i agree with your assessment of the chancellor's, and i think the chancellor will form this government she's extremely skilled when it comes to bringing together people who can spell self-confidence correctly. she'll manage that there are a couple of risk factors still on the horizon one is the green party none of the parties that will form the coalition have ever worked with the greens, and you'll have two small parties fighting for attention and that could risk the stability asset. we'll have talks that will take a while. at the same time there is a reshaping of who will be the strong voice in europe theresa may has laid out her ideas. at this time you need a strong germany as well. not which one just tied up in

coalition talks. that's one of the things we need to see >> see a lot of smiling faces? i really wonder why specifically amongst a large party where, it has been a zdisastrous result. it's actually historically low results for the social democrats and for the -- we need also to see another risk factor, which is a looming talk and mumbling about succession of angela earning maniel at one point. that's nothing which leads naturally to stability let's put that into account as well i think to see a wider frame here there's a lot of -- there's a lot of angst now over here as if there's a new nazi party emerging in germany. it's a very volatile, very

heterogenous group with a good bunch of lunatics. the last positive thing is the -- they made a right move to go into the opposition now because that leads to the fact that the largest opposition party is not the ad. it's the spd it's a mix we have to see here >> there are a lot of underlying problems, says and germany is doing well because of a subsidized exchange rate much too low interest rates at 45 bits for a country like germany, it should have been 200 basis points higher once those factors disappeared, these economic challenges are

going to emerge. then you need a strong leadership now, i believe that there is very high likelihood that our distinguished finance minister is going to stay in his seat or if not, he will be replaced by somebody from the fdp who will be even more market oriented to some extent. i'm not so much worried about the finance minister changing hands into somebody quite unknown, but, yeah, they're at risk however, one risk that has been avoided is if you have a grand coalition and you exclude the voices that are slightly to the left and to the right, you end up with a sort of cat frosk outcome, and in some ways that outcome has been avoided even though -- this is sort of a shot across the bow of the established parties, and you will see a move more to the right. certainly by the party in bavaria and i think immigration is an issue that -- >> one concern from over here

from a u.s. trend is always will we stick to our budget surplus policy what do you see here i actually expect them to follow-up with what they've done so far >> we, unfortunately, have to leave it there thank you, david k.t., sticking around. the wall street agenda full of economic data this week it starts tomorrow with the s&p kay shiler home price index new home sales andconsumer confidence coming up on wednesday. look for durable good orders and pending home sales thursday. we get the final estimate on second quarter gdp the week wraps up on friday with personal income and spending chicago pmi and consumer sentime sentiment. president trump tweeting it's the third one we've brought to you again, just moments ago. he says the issue of kneeling has nothing to do with race. it is about respect for our country, flag, and national an and the nfl must respect this. coming up, stark talk in focus with hayden planetarium director kneel degrass tyson. he joins us after the break with a preview of his new season.

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snoo jiengs now national physicist, director of the hayden planetarium at the american museum of natural history, and the new season of his show "star talk" begins next week on nat geo. i'm looking at katie couric and james cameron and karim. it's 20 episodes, right? >> katie perry >> katie couric and katy perry >> two katie's yeah it's a hell of a guest list. i agree. it starts in -- >> is this -- >> fourth season thanks for asking. that's longer than "star trek" went we're all very happy about this. you never know you know, stuff gets canceled all the time >> what are you going to talk to lance armstrong about? >> so lance is -- you know,

people think of these celebrities, these people from pop culture, as sources of controversy or love or hate, and i see them as just places to talk science with. or how science has touched their lives. with lance armstrong, you talk about the physics of cycling and energy and the transfer of energy from your body to the pedal. all this comes out in the interview. it's great >> can you tell me -- just shifting topics -- about what we find out from -- >> that's -- >> what -- it was -- >> kasini? >> did we find out a lot >> the spacecraft that went into orbit around saturn. >> it's done >> it's down now we plunged it down into saturn's atmosphere so approximate couldn't contaminate any moons by accident for any future explorer who might visit, and kasini, we learned so much not only about saturn, but also about saturn's moons there is a moon that has a geyser that is spewing forth material that formed one of

saturn's outer rings we learned that saturn has a hex gone on one of its poles who ordered that nobody -- that was a complete surprise one of -- there was a probe that was deposited down on to saturn's largest moon, titan, and there we learned that there's a photo right now. there are river beds and lake beds of liquid methane metha methane, the ga says that if you live in the city, it comes out of your gas stove. it has liquified and is coursing over the surface of that object. it has an atmosphere we can think of it as a planet maybe. >> caution that the matter -- we know that the matter is concentrate. it's the same stuff we have here >> different combinations of chemistry, but that's an interesting fact what we find here on earth, it's on earth as it is in the heavens, right the chemistry on earth, we find repeated across the universe >> as it is in -- elan musk is going to tell us about his latest plans for mars, right

>> he wants to go. okay >> are we going to use poop to make potatoes like matt damon? >> of course >> that's what i need to know. >> you have something against poop potatoes. where do you think the fertilizer otherwise comes from? it comes from another species in the farmer's field i'm saying you're eating potatoes made in some other animal's poop. >> what about elan musk? >> i think -- people are thinking, especially the press, is thinking he is going to be the first to go to mars. that as an exercise for a business to conduct doesn't have any obvious return on investment what generally happens historically is nations do this that have much longer time frames for the return on their investment than any corporate entity does that has to satisfy an annual report

private enterprise comes in after, and they can say here's what i can return on the investors. >> there seems to be a massive battle between elan musk and jeff bezos to get to space, but for two very different approaches, right? elan musk thinks there's going to be terrible climate change that's going to go on here and will make this place uninhabitable, and we can somehow get up there, right? >> or some kind of run-away nanobot that's a disaster on earth. >> a disaster is going to happen here bezos wants to make this place as great as possible and sort of upstream, if you will, all sorts of other things space so so that we don't have to deal with them here on the planet >> i would say that if we -- first, mars is not a hospital place -- hospitable place at this moment. what we would have to do is figure out some kind of way to terraform it one of my favorite words

turn mars into earth you seed, the soils, atmosphere, this sort of thing if you have the possibility to terraform earth, then you have the power of geoengineering to turn earth back into earth how are you going to trash earth and say, oh, i can't live here anymore, let me fix mars >> what time >> oh, yes, on national geographic sunday night october 1st it's a nighttime talk show >> what time >> 11:00 check your local listings kind of thing >> boy, have to dvr that >> that's what it's for. >> i'm asleep by that time i think i'm up one of the times. >> sunday night. everybody is home on a sunday night. >> anyway, thank you >> good. thanks for having me excellent. coming up, final thoughts from this hour's guest host k.t. gudenberg, and robert johnson joins us for the hour. we'll talk politic ts,he economy, business, and much more stay tuned you're watching "squawk box.

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>> going to get final thoughts from former german defense minister -- the former german defense minister i want to ask you a question you said that, like, a bulb going off. you started talking about nazis. nazis returning to germany >> you have to talk i think quite seriously about this party. it's not enough just to stay silent and say let's just spook them and they'll go away within the next four years. it is a movement it is a protest movement all the guests that have talked about this are right

>> people who use the language we have heard in jerm anne about 80 years ago we have to be outspoken and clear about the risk that emerges out of such a group of people that's a task germany has ahead of it. >> thank you for being that scary, and thank you for being here we'll continue this conversation appreciate it. >> coming up, robert johnson of rlj companies joins us for the hour we'll be right back. oya. i represent the money you save for the future. who's he? he's the green money you can spend now. what's up? gonna pay some bills, maybe buy a new tennis racket. he's got a killer backhand. when it's time to get organized for retirement, it's time to get voya. can we at least analyze can we push the offer online? legacy technology can handcuff any company. but "yes" is here. the new app will go live monday? yeah. with hewlett-packard enterprise, we're transforming the way we work. with the right mix of hybrid it, everything computes.

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>> a major debate on and off the field. president trump calls for an nfl boycott as more players are taking a knee during the national anthem. media mogul and former nba team owner bob johnson joins us right here with his take >> from washington to wall street tax reform, health care, both dominating the agenda this week. >> plus, media fight why disney is threatening to pull its programming from the fourth largest u.s. cable distributor. as a final hour of "squawk box" begins right now

>> i'm joe kernen along with andrew ross sorkin and beamanda lee. becky is off today with us this hour someone who recently reportedly made a hole in one, rlg company ceo and founder -- in aspen. >> elevated tee. >> bounce and rolled in? how many bounces >> i didn't see it the caddy saw it >> you sure he didn't kick it in there just to get a big tip or something? >> he was on the tee with me he couldn't. >> how excited it was exciting. >> irs if time >> you brought this up this was the -- at all the other things going on in your life, this was a highlight >> it was a great event. charlie rose has a great event >> i've never had wrun i've hit them in from the fairway and never off the tee. bob, the futures right now are indicated a little bit lower we'll see if they've.

>> altise, the fourth largest u.s. cable provider, and a lot of people looking at this deal,st, especially when it comes to what skinny bundles may ultimately look like with cable operators in the future as well. also, facebook dropped plans to issue a new class of shares that would have allowed founder mark zuckerberg to keep voting control of the company and fund facebook's philanthropy efforts. the value of facebook's stock has grown sufficiently since the original proposal to accomplish both of those goals without having to change the structure in deal news this morning, abb is acquiring the general electric -- the price tag $2.6

billion. he says it hopes the deal can improve the lackluster margins over the next five years let's take a look at the target sharsz and see if there's any reaction in the girng of this news and immediate response. the big box retailer raising its minimum hourly beige to $11 next month and in $15 by the end of 2020 >> $9 in 2015. now, despite the raises, target doesn't expect an earnings hit from the higher cost of labor. it's reiterating both its comp sales and earnings guidance for the current quarter and the full

year >> whatever is more favorable for workers. it does put target among the state minimum wage except washington and massachusetts it's $11 there d.c. is $12.50 targets pay increase is higher, but later than wal-mart's. big raise increase starting last year the world's largest retailer began its $2.7 billion two-year bump in hourly pay starting employees at $9 then to $10 after a training program. plus, then annual raises thereafter the world's largest retailer gets a lot of attention for its pay raise because it is the country's largest nongovernment employer gap inc is the first major retailer to raise its minimum wage they did so three years ago to $9 and then $10 in 2015. >> courtney, thanks. now to washington news, the

so-called big six will release the tax reform plan this week. meantime ceo confidence is up according to business round tabling with executives blooeflg a lower corporate tax rate is in the future our guest host this hour, bob johnson, it's great to have you. you think it would be a positive for business your business as well? particular >> i think it's absolutely in favor of corporatetax reduction. >> we've got to create more jobs in this country. we've got to close in some ways the income gap, says and that means worker higher pay. that comes with companies reinvesting and creating jobs, and if we can get 2.5%, 2.7% annual growth out of the economy and tax rates would be a big

part of making that happen -- >> we've been going back and forth with personal rates as well >> when you cut taxes on anyone in the upper 10% bracket would that be helpful? >> i'm not sure that's the driver >> you don't do anything about regulation or beginning to sort of scale down the deficit in the debt

do you think it could in any way pay for itself without matching dollar for dollar? do the cuts need to be offset? the tax cuts need to be offset by cuts otherwise spending or do we believe in dynamics that there could be something that this all shifts and ends up with gdp going up and, therefore, tax receipts go up, and you don't need to go dollar for dollar >> the reason i like scoring or pay as you go and paying for it is because entitlements once presented and once given to the public they never get taken away we're just spending a little bit more to take into account.

>> for me, first of all, it's certainty of the regulation. i wouldn't prescribe a particular regular laying. >> what industry do you think is overregulated? what's -- >> industries you're in perhaps. >> when do you think this is all going to change? >> i'll tell you what i think is a concern is that in we're big in the automobile dealership business if the government starts looking at auto loans, for example -- it's people buying more car than they can pay for, but you're saying that's happening? you don't want them to regulate? >> i don't want them to regulate it on the basis that there's no way of focussing on how to make sure that the customers can pay as opposed to saying we don't

believe that there's a model that allows to say i'm going to make these loans to people at this level of income or this fico score i think there's a discussion -- >> we talked, by the way, how worried will you about the auto market right now >> it's financial sfgss making loans, and it's servicing into cars fixing the cars up when they have problems, and then, of course, it's used cars

>> there is so much concern for so long that used car prices had been going down and down and down i'm wondering at this point are you seeing that trend reverse at all, and are you getting help from damaged and destroyed inventory from the hurricanes? being just taken out of the market, and so there's demand for the cars >> not so much for us. we're concentrated in the midwest. we didn't get a big impact the only other thing with cars is there's a trend for younger people, millennials. not to buy that car as quickly as probably i bought a car or wanted to buy a car. they're taking alternative transportation as far as i'm concerned.

>> it's probably going to win that race. for my standpoint, tesla is doing everything right tesla has to cross one threshold issue. they've got to determine how they're going to create a dealership base. i don't know if that's -- >> is it there any other manufacturer you think is even close to tesla or that can play a fast follower? in a meaningful way? >> right now i can't think of anything

>> i think they're the leader of the panning. >> there's first the market, which is an event, and then there's well healed companies like bmw that have -- i don't know how to -- that's why i can't figure out whether tesla really will be better. when you have these well-healed guys working day and night to try to -- they can even copy some of the stuff tesla does >> those well-healed guys have to reformat their whole industrial -- >> you didn't mention -- >> i feel bad that i don't >> they would have to almost reinstruct their entire production line, and that's risky. if you are a public company and you miss, you miss big

>> coming up, when we return, president trump taking on the nfl and its protest. the impact on big business and sports media as well also talk to b autobbo that. stay tuned you're watching "squawk" here on cnbc crying) (slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)

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>> a look at the impact on the business of football this morning. eric >> that's right. the latest round of drama started friday when the president called nfl players s.o.b.'s for not standing for the anthem, and he advocated firing them. then saturday he tweeted the two-time nba champion and mvp steph curry was no longer welcome at the white house that started all kinds of reaction from across sports, and the nfl alone, statements against trump came from team owners, players, coaches, the league office, and the players union.

even former trump supporters sided with their team. dan snyder, who donated to trump's campaign, it locked arms with his players many nba players, responded, including lebron james, calling trump a bum. we also saw responses from baseball, hockey, college basketball, nascar, and the wnba on both sides of the spectrum. the president tweeted almost a dozen more times on sunday and this morning about sports and this issue >> do you think there's going to be certain football fans that support trump? >> there's still so much money behind it that you might see some, but it's hard to imagine everyone is going to walk away

>> is it how players and teams are reacting >> we haven't heard that, but it's 8:00 a.m. on monday morning. all of this happened over the weekend. you feel like this whole week is going to have a ramp-up here >> our guest host this morning is rlj company's chairman bob johnson who knows a thing or two about professional sports. >> right >> you saw what the president had to say you saw the reaction what was your take >> let me go at it this way. i think the entire country has become so toxic on cultural issues that if we keep looking at everything that symbol issues unity in america, that something that we can all rally behind or believe in, if we keep tearing that down, piece by piece, because you think the statue should stay up, i think it should come down, you think you should kneel, i think you should stand up and support the flag. the country begins to lose the fabric that's tied us together for over 200 plus years. even though when you saw the

various teams, you know, some knelt down some stood arms locked >> it doesn't help the situation. >> what would you do if you were one of the owners of his team, as an african-american male in this country, what do you think of all this for real >> you know, i probably own a basketball team -- >> where do you land >> the way i land is this. >> would you be locking arms, be on your knees? >> i would be -- i would be locking arms with the players i

think the best statement i saw over the weekend was what drew brees said about how he can see the right of people to protest, but at the same time the flag has real true meaning to an americ american you have to be from the standpoint of an owner of a team or a leader of a country, you have to recognize that you have a lot of stake holders, and you try to find that bond that brings them together >> you would support their desire to protest. >> i gra he that people have a right. if you work at a job, and your job allows you before you get on the field to make a protest, you know, it's not going to destroy -- that's not going to destroy a company or the team. >> to the business side of this,

so when you see steph curry get attacked to some degree by the president on twitter and then you see lebron james come back with his response, they are now intertwined in the political game, right? they have fans, but they had fans, i imagine, on both sides of the political spectrum. they have sponsors who rely on customers on both sides of the political spectrum how is this all playing itself out, and if you are an honor and if you are dan gilbert with lebron, is there a phone call you need to make and what do you say? >> there are good marketing

things that bind the country with the team. the fact that the team and nfl is about 85% african-american. the nba is a little less if you are a ceo of the company, head of the team, you are president of the united states, your role should be to set the culture that takes into account every stakeholder and try to bring it together in a unifying way. that's what i hope will happen, and that's why i am for more name calling to take place between owners of players and the president. doesn't solve the problem of what i call this very toxic culture. we get into this zero sum game

of cultural destruction, skps from a business standpoint, i don't know how you move a country politically forward when everything is so divisive, and that's where i see we have to come together somehow. >> i think in the nba you have to stand for the anthem. that's why you didn't see this they all stand because it's the rule of that sport, which doesn't exist in the nfl >> it's even more than that. in the nba, we had a dress code. if you -- players used to come in with torn jeans and t-shirts and things like that because they wouldn't allow any individuality, and, of course, the nba said, you know, when david was there, what's our fan base >> not good for business >> not good for business they said, hey, guys, jacket or at least a collared shirt or something that looks business-like. owners do direct and control behavior i mean, you see what happens if you do things involving any kind of physical violence or any kind of intimidation to anybody you know, drunkenness or

whatever they do control how you act. now, the problem is when you get into the little narrow area of what's called free speech, it gets murky, and we haven't resolved how you're going to deal with that it becomes even worse when it gets political >> the extreenl -- >> do you think that was fair? >> i'll tell you what i think. if you -- two sides. a practical side of it there's no way this -- the league with that many african-american players was going to allow don to stay on. that was just plain practical. >> do you think he should stay

on you? >> no, here's what -- let me school back with a question. what if don sterling had been african-american and an owner and an african-american owner had said i don't want my girlfriend hanging out with those black guys do you think they would have said to the owner, hey, you got to go? >> right >> you know, would the players have said, hey, that owner got to go. you see what i'm saying? you got practical lifestyle of a business these are our businesses make no mistake about it then you have got the attitude of the country that shifts one way or the other sometimes depending on who is in the oval office.

>> every singe pg person is able to say go is about -- it turns into what used to be a school yard fight everybody can do it everybody that you will see in the main stream, every single person that says something about trump or if trump says something about them -- it's amp amplified. i went to the woodrow wilson school of princeton, and students at woodrow wilson are saying, he is a racist

let's take down the name from the school >> bob johnson is our very special guest host for the morning. this has been a spectacular conversation we're going to continue it after the break. thanks for coming in >> coming up, uber fights to stay on the roads in london. we have all the details next where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

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>> we're live at the nasdaq market site at times square. among the stories front and center at ho hour, one of this morning's premarket winners is auto parts maker genuine parts its shares are rising after it nouptsed a big deal to buy alliance automotive. the price tag $2 billion alliance currently owned by funds controlled by blackstone group and alliance's co-sfounders they're the winners there. proctor and gamble sharlds getting a letter from hedge fund firms. again, urging them to elect nelson pelt zwl to the p & g board. the consumer products giant has been resisting efforts to add peltz to that board. he will be joining us here on "squawk box" on thursday morning at 8:30 a.m. eerp tiastern time

we will talk all about it. we're also talking about the price of crude oil this morning. we're talking abouten itting signs that they're working to rebalance the market they've not settled above 51.22 at this hour >> uber has reportedly been prepared to make concessions the company unfit to operate in the city the sunday times is reporting that uber will likely make changes to passenger safety policy and benefits for its drivers. one uber exec also said the company is working with london police on better ways to deal with reporting serious incidents. the new survey out this morning looks at whether the trump administration can achieve its 3% growth target is this your survey? >> no. >> okay. good all right. steve liesman joins us with the findings so we don't have to waste time on whether it's all america or -- >> we're wasting time now. >> yeah, you're right. >> first, steve, we're also just hearing from new york fed president -- >> yeah, bill dudley what did he say?

>> he said that the federal reserve is likely to continue to remove the -- he says the effects of the hurricane are likely to be relatively short-lived. they will make interpreting the data difficult overall he is positive on the u.s. economy saying the growth trajectory is slightly above trend. there it is. him taking into account the better numbers we see. he sees a tightening labor market that will support wage growth and says u.s. fundamentals are quite favorable. we don't have the drag anymore from it is dollar and overseas growth is sno it no longer a drag on the economy. on to the results of the national association for business economics what you see is they don't see us getting to that 3% growth number this year or next year. take a look at the outlook 2.3% this year 2.3% next year there we go. payrolls come down a little bit. 187 was the average for 2016 goes down to 178 this is the forecast 160,000 next year. the unemployment rate, though, which was 4.9% 2016 on average falling to 4.4%, and then again

4.2% they asked as we have in our cnbc fed survey, what impact do you see from all of the fiscal policies, and i think the technical term is it ain't much. here are the numbers 17% of the respondents, they were 47 forkers in there, see it's zero or less. 37% say .01. and 37% say a quarter to a half a point and only less than 9% say more than half a percentage point. it's going to be hard to get there from here if these numbers are right. they see the cumulative effect of the fiscal policies as being modest at best this follows surveys that we've done about the impact of fiscal policy >> today the new economist covering america since he was

formerly chief u.s. economist at deutsche bank. a firm he was a part of for two decades. we just had like the chief global economist from deutsche bank here. did you see him? >> i guess you pass each other on the way >> we didn't pass each other >> did he fire you you still get along with him >> i get along with everybody, joe. i'm that kind of guy >> when you were there, who -- if you disagreed, who had the final say? >> generally i was left alone. i mean, i had my own -- >> you made the final say? >> i thought after 20 years it was maybe time to move on, and i am lucky because i hit a pretty good outfit. >> you are a cnbc contributor. that's what you should probably -- i mean, that's what you should wear on your chest. >> cnbc t-shirt on under absolutely >> i listen to steve liesman more than bill dudley, but what do you make of what dudley said? >> i'm an optimist i always have been

i think what larry kudlow and people like john taylor and others who believe that with the right policies, there's no reason why we can't get 3% growth i'm still of that view the consensus of the economists typically they're not systematically wrong, but they're generally wrong often. the fact that they don't think we can get to 3% doesn't mean we can't get there. ist juit's just about good poli. i'm still optimistic we can have bipartisanship in politics that's not a common theme, but i'm optimistic we can maybe do something. at least for a year maybe at 3% growth i wouldn't give up on that >> there are others that really don't want it to happen because it would be threatening to their idealogical believes about policy, and there's a whole group. people are here all the time telling me that any type of supply side or trick willing down thinking has been -- >> yeah, i don't think -- >> it's repudiated

>> the supply side is important because steve would agree with this we need productivity growth. >> really? >> we need productivity growth it's arithmetic. >> i also agree with supply side and demand side are both important. >> the fact, look, most people would agree maybe it's not done properly, but infrastructure spending work are retraining, there are some things that are important that are more demand side that you can marry with supply side and get the economy moving

>> i -- trying to move things along here >> you keep going. >> this year, i mean, growth this quarter could be up near 3%, and it's ponl growth is near there in q4 and growth for the year is in the high 2s that's not bad you think it's possible? >> you have to get tax reform. you're not going to get reform you're going to get cuts reform is out the window they'll do some cuts on corporate taxes. i think he'll get that

>> some of the money going into infrastructure bank for investment that makes sense it's pretty easy to do you have to get more productivity out of workers. that involves some retraining. that is sort of a long run >> it's important that we end up sort of budgeting and forecasting for the right growth numbers. if we end up creating a budget and tax cuts that are predicated on 3% growth, then you're going to be really disappointed when it comes to tax revenue. i think the other thing that's important is expectations. i think if the president can raise growth by half a point and get us from our underlying growth rate of .8 to 2.3 or 2.4, that's a hunl success

>> a quarter here from overseas growth, a quarter from tax cuts, a quarter from deregulation -- >> the did he regulation, steve, is important >> business confidence, small business ceo is still very high, and the administration is working to get rid of some of these what they perceive to be onus regulations that has not born any fruit ye , we could still see that in the numbers. the 2% -- to me i think that's too pessimistic for growth >> all right >> i agree >> do you raise? did you get a big raise? >> you're right, steve

>> as we head to break, what's coming up? take a look at equity futures. they've been here all morning. you are watching "squawk box" on cnbc

. >> coming up, bob johnson and, later this week on squawk you don't want to miss this. we have a lot of newsmakers coming up, including real estate titan sam zell oath ceo tim armstrong, pro golfer dustin johnson, quicken loans chair dan gilbert, and activist investor nelson peltz it is a very big week here on "squawk. you don't want to miss it. we're back in a moment today, central new york and the mohawk valley are rising together. we're invested in creating the world's first state-of-the-art drone testing facility. which marks the start of our nation's first 50-mile unmanned flight corridor.

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>> founder and chairman bob johnson. the last few times you have been on, you have got -- you have got your -- you're all over the place in different very interesting, some of it new media, some of it old, some of it traditional business. after you sold b.e.t., you have expanded into a lot of different areas. do you have new things that -- >> well, the one thing that's new for us and i'm really excited about is this whole issue of opportunity in streaming content targeted to audience and lets audiences pay for on a subscription basis. we bought this company, and we created a company called rlj entertainment.

>> with that content of which also includes 66% of the agatha christy library, so we just licensed an agatha christy remake of "murder on the orient express" to fox. it's a way to continue to build i.p. from agatha christy, and at all deliver quality british mysteries and dramas then pulling on my b.e.t. days, i launched another streaming site called umc, the urban movie channel, that's focused on giving african-american talent, story tellers and producers and writers and the like, a chance to showcase their content and go to subscribers who want to pay for it, so you're not just limited to saying you got -- i got hbo, i got show time, i got other stars and all the others you can get something that's tailor made to your viewing interest and also creates an economic system to fund content creation by african-american talent that's grossly under employed in hollywood.

it becomes very good business, and that's the way i look at it. i'm excited about that >> you know, in the hotel, we just acquired a company called falcore, and that makes us now approximately 160 some hoelgss the third largest in the country. even if you stream the notion is google and facebook and am skblon, they're all going to disintermediate the networks and have sports on you don't have the band width to

do it necessarily unless it's done the way it's done right now. the players may still be around. you may still be watching sports on nbc or espn five years from now. >> how is delivered to you that will change over time. we've seen it throughout the history. cable streaming, digital, whatever it is it's content driven. we're also involving some good programs i think that have good public policy impact for the labor department with one of our businesses trying to focus on something we call auto portability, which allows workers when they change jobs to carry their 401k with them so they don't cash out. stwlr billions of dollars being cashed out forsmall time small

dollar accounts for 401k when you change a job, you go from proctor & gamble to colgate, wherever you go somebody says do you want to cash out this 401k or do you want to take it with you people will say default, send me the money. taxes on the money, take out, no retirement savings >> say take it with me >> just a quick follow-up from our last discussion. tommy smith and john carlos, 1968, president johnson, and he was the target of this, said nothing. not a word. by the way, mohammed ali didn't want to be drafted, said nothing. we can go through the list. hurt flood said nothing so you're talking about where we are in this country and also what the world the president is in terms of whether they speak or not and how they approach it, just -- just to put it out there. >> i think there's a case to be made for silence and i think let it go away. there's plenty of room for not talking, but now because of all

the media and all the opinion that comes up, sometimes the people feel if you don't say anything this small brush fire is going to keep going. so president obama said, call the cop -- he didn't have to say anything. >> absolutely. >> that's the way it happens now, people feel like they got to say something. >> if there's a silver lining, maybe these things need to be talked about, maybe. >> my thing is, you know, until the country can find its unity again, you're not going to grow. rome didn't fall because of outside barbarians at the gate, rome fell when the institution collapsed and dictators came in and it became every person for themselves and all of a sudden, you know, something that was around for centuries died. >> bob will be sticking around. jim cramer new york stock exchange.

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let's get down to new york stock exchange. jim cramer joins us now, all this other stuff aside, you had -- i saw you tweeting, they're soaring, they're flying, what an ending

one second's important. 61 yards, jim? >> yep. alshon jeffery as much as important as the kicker. i would say that harry rosen picked him up off the practice squad from another teamand it was -- it's just a huge victory. this nfl, i know that the ratings may be down or whatever. to me that was the most thrilling game that i've been too -- i've been a season ticket holder forever. everyone may hate the game but still watch it. >> that's why you do it. your heart lept, i'll bet. do you think it was going to hit it >> no, not at all and he's a new kicker and as far as i could tell. i was looking at one of his high school kicks, he made some 47 yarder to win the game out of high school. no this was one of the biggest surprises and the giants looked like they were the comeback team of all kind in the fourth quarter and eli manning looked

fabulous and next thing i know, it's ours. >> i wish it was just sports. now it's politics too, but what are we going to do >> i agree with you. >> thanks. we'll see you at the top of the hour then tomorrow. don't miss special guest host sam zell. stay tuned. "squawk box" will be right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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welcome back to "squawk box." our guest host this morning is founder and chairman of the b.e.t. network, bob johnson is here. i want to get your thoughts real quick on this espn situation, though, with altease and what do you think is going to happen >> it's happened before. i'm going to drop you and call all the subscribers and say they're dropping us. usually the cable operators carve out an increase and they go on to the next contract. at some point there's going to be a defining moment, they're just going to say no. if you drop it, just drop it and we'll move on. >> and you think this is the moment >> it could very well could be. they are -- they're small enough but not the largest that disney could really hold out if they really wanted to but on the other hand, at some point, some company is going to say we simply can't grow our business

paying you more than our subscribers who are watching. so whether or not this will do it or not but the amount of money cable operators pay to carry basic cable program is going to decline over time. >> you heard it hear first, bob johnson, thank you very much. >> great having you here. make sure you join us tomorrow, "squawk on the street" is coming up right now. ♪ good mondays morning the new york stock exchange final week of q3 is upon us. a torrent of news from tax reform and health care to the president's battle with the nfl, facebook, german elections, puerto rico's difficult recovery. check out oil. it is not settled above 51 since