>> the gentleman is recognized for as much time as he may consume. >> wow, thank you, mr. speaker you have no idea how great this feels to be back here at work in the people's house [ applause ] as you can imagine, these last three and a half months have been pretty challenging times for me and my family, but if you look at the outpouring of love, of warmth, of prayer, my gosh, jennifer and i have been overwhelmed with all of that outpouring, and it's given us the strength to get through all of this and to get to this point today. and it starts with god [ applause ]

when i was laying out on that ballfield, the first thing i did was start to pray, and i'll tell you it gave me and unbelievable sense of calm knowing that at that point it was in god's hands, but i prayed for very specific things, and i'll tell you, pretty much every one of those prayers were answered, and it was pretty challenging prayers i was putting in god's hands, but he really did deliver for me and my family, and it gives you that renewed faith that the power of prayer is something you just can't underestimate. [ applse ] so i'm definitely a living example that miracles really do

happen the first place i want to go to thank true angels along the way starts with the united states capitol police [ applause ] >> when i was elected majority whip, as you know, the elected leadership has a security detail, and if anybody ever wondered why we're assigned security detail, i surely found out that day and let me tell you, i want to specifically mention crystal

griner and david bailey. [ applause ] crystal and david were assigned to my security detail that morning, and day in and day out, they are part of our family. jeifer and i truly do treat us partf our family, because they are with us everywhere we go on that day it was no different. on june 14th they came 6:30 in the morning, we arrived at the baseball field just to play and practice for a game of charity baseball and nobody would have suspected what ensued, and yet as soon as those shots were fired, i'll

tell you, when i was laying on the ground, one of the things i prayed for is that david and crystal would be successful in carrying out their duties, and both david and crystal are incredibly well trained, incredibly professional, but when i was laying there, not long after the first couple of shots were fired, i could hear a different caliber weapon, and that told me that they immediately engaged the shooter. and let me tell you, if they didn't act so quickly, and even after being shot both themselves, continue to engage the shooter and ultimately got him down, which not only saved my life, but saved the life of a lot of other people that are here in this chamber today, crystal couldn't be with us today, but david bailey is with us david, you are my hero you saved my life. thank you so much. [ applause ] >> just a remarkable recovery. one of the most remarkable recoveries you're likely to see.

steve scalise, the majority whip, returning to work after being shot back on june 14th obviously, thanking the capitol hill police, who saved his life. he was taken to the hospital in critical condition, and if you recall, guys, we were here on that morning not only was the initial trip to the hospital extremely dangerous, but then the following weeks. he fought infection, very touch and go it's incredible to see him back at work. >> it is, and some of his first words there in the chaer, you have no idea how great this feels to be back here at work in the people's house we haven't seen a lot of instances of kind of bipartisan unity and good feeling across the aisle. this is certainly one of those, and a great reason to see it >> yeah, smiles all around, standing ovations from all members of congress. really a warm welcome to the house whip, and also he opened up a little bit on "60 minutes," they are just starting to release some of the tape, talking about how doctors had to put him back together again.

so miraculous return there, and you can clearly see it in his face and hear it in his voice. >> looking forward to hearing more of that this weekend. in the meantime, good morning, good to have you with us on "squawk alley," i'm carl quintanilla with sara eisen and john fortt good morning to you both speaking of capitol hill, our big story involves it. the walls continue to close in on big tech. today executives from twitter meet with senate intel committee members to talk about the company's role in the election in '16 executives from facebook, google, and twitter have been asked to testify publicly before congress on november 1st, as well and just last night mark zuckerberg responded to the president's claims saying he was always antitrump in a facebook post he says trump says facebook is again him, liberals say we helpedtrump. both sides are upset about ias and content they don't like. that's what running a platform

for all ideas look like. after the election i made a comment i thought the idea information on facebook changed the outcome of the election crazy, calling that crazy was dismissive and i regret it so, ed, how does is that set up what he's likely to say to lawmakers later on >> that's the thing, are we sure he's the one to testify? he's avoided, there was a shareholder class lawsuit they settled, he was supposed to appear in court. he doesn't like talking to people on other people's terms you notice he does his own little state of facebook address through his own account, so that's a big question. in terms of what he's going to say or address, i think the big issue is he keeps calling it a platform, not just facebook, twitter, google, utilities, right? it's basically a way of saying we're not a media company so we should not be held responsible with other media companies that's the big debate here i don't think it's such a fine line either way. i think there are aspects how facebook works that it is a media company. they sell advertising to an

audience, disseminate information, so they've got to do more and be a lot clearer to both congress and the american public how they are going to fix it >> sounds like a media company, the whole both sides are upset with us. as an old newspaper guy, i know that's what newspapers say all the time, so what is the worst case scenario that if you're google, facebook, twitter, you want to avoid coming out of this process? >> well, ideally, john, you want to avoid regulation in any form, and ed's right, they've been trying to have it both ways for a long time, but facebook's at an inflection point. couldn't be clearer than the tweet mark sent last night the more you say we're just bringing pipes to the house, it's not our problem, the more you sound like a utility, a regulated monopoly, but you don't get freedom from regulation the more you say we are a curator of content, like what cnbc does, new york times does, the more you can push back from that sort of regulation, but

they are taking the right step of engaging with congress. i can't imagine coming out of this there won't be some increased scrutiny what that looks like, it's way too early. >> that's the question everyone says they need to be regulated, if they can't even police themselves, is it obvious how a regulator can do that? >> i think that narrative of we can't quite control all these things, that should be challenged a bit, because a lot is based on the so-called a algorithm. they can do a lot more than they claim they can, and i think that's something that should be dug into the other thing to contrast it with is, their big video play they've been doing lately, spending up to a billion dollars on original video. that is content that they control and vet. so if they can do it over here, why can't they do it over there? of course, people's message are something they shouldn't control, but they have a lot more money and power and technology to be able to do it that narrative should be challenged >> david, now the attention turns to twitter page 1 of "the times" today talking about how they are different when it comes to

anonymity and the ability of bots to influence. have they been underappreciated in this whole debate >> yes, they've been quietly avoiding the topic, and no one has really taken a close look until you've seen most recently "the times" report the anonymity feature is a problem for twitter, because it tries to absolve them from any connectivity, on the other hand makes it extremely attractive for foreign influence to insinuate themselves and face it, if you can do espionage without putting live people on the ground in high places with risk of discovery and can do it by adding people in a troll farm outside of moscow, just fomenting dissent d visiveness, that's an effective way to go and the government is going to do something to stop it >> this wasn't supposed to be a problem for facebook facebook was supposed to be about verifying people's real identity before they got active. for facebook to say we had no idea where these people were physically located, let alone if they were real people, the

people who placed these ads, you know, on behalf of some russian entity, does that suggest that facebook maybe sold a little bit of its soul in the name of an ad platform because it was about real people, right? >> it was about real people, about your friends and family. that was your primary connection, that was a whole advantage of facebook, whereas twitter is sort of this open platform, you can broadcast anybody. it also goes to show to your point, john, the power of facebook's viralty things spread on facebook in a much faster and deeper way than they do on twitter it's a hard thing to see publicly, because you don't see how many retweets the way president trump sees how many of those things are happening it's harder to see on facebook and how fast it goes to other networks within facebook that's an issue. >> i wonder, twitter specifically, how much of a complicating factor it is that the president uses it as one of his primary methods of communicating with the american

people >> contrary of their hate speech terms of service, they are not going to touch it, i'm sure. the last point worth mentioning, 20 years ago, 25 years ago, microsoft was the ubiquitous brand in technology and the government got involved. those days it was antitrust, it wasn't potential espionage microsoft was never the same after the government got involved, and i think that's on the minds of people at facebook and twitter today. >> all right, we do want to get to a news alert here from the hedge fund world let's go to dom chu with that. >> good morning, this involves whitney tilson of case capital we're getting headlines saying whitney tilson is going to close his case capital hedge fund firm, also, again, they managed about $180 million at their peak, but now just down to around $50 million or so his fund had been underperforming the market down about 8% so far this year compared to a gain of 11%, 12% for the overall s&p, but whitney

tilson the latest to join well known hedge funds that have closed up their shop given the underperformance in certain parts of the country, but whitney tilson is a big one. >> that is an end of an era. roku, of course, moving higher for that, bertha at the nasdaq bertha >> it opened up 15%, but you can see it just off the highs of this early session here trading at $17.55 after pricing at $14 a share. that was the top of the expected range. the streaming company raising about $219 million the ipo now gives them a valuation of more than $1.5 billion. roku, of course, among the first streaming devices for cord cutters. it has expanded to do content distribution, to be more of a service advertising, 15 million active users revenues up 23% in the first six months of the year, but the firm still not profitable in a very

crowded and competitive market ceo anthony woods says he's not worried abili worried about competitors. they all have devices and platforms, and they are increasingly talking about content. google recently having pulled youtube from amazon's alexa devices. apple, of course, never providing access to amazon prime on apple tv. this is a very tough market. meantime, for the nasdaq, this marks the 84th ipo of the year, giving them about 60% share of all companies going public this year 30 of them have been about financials 30 have been bio techs and only about ten, now make 11, tech firms. so you can see where the companies are going private and what sectors these days. not necessarily in tech. carl >> all right bertha, that's good information. bertha coombs, thanks. other ipo news, we are expecting angry birds to price its ipo tonight. reuters is reporting lyft is close to appointing ipo advisers

of its own and david has taken issue with spotify's reported direct listing, calling it a mistake. why? >> i think that's correct, carl. tilson's hedge fund should have been investing in the ipo class. it's done well and he'd be well ahead of the indexes once you decide to go public, which spotify has done, they are doing 99% of the work and will ve 99% of the headache and none of the cash associated with a public offering. so i don't get it. they are going to be public, it's going to let the market find it own level, they'll be able to speak more freely, but they are not filling up their coffers at all when they are paying all the costs associated, except the underwriting fee. >> one of the best funded private companies in europe. >> the private markets have been more than willing and likely would for the foreseeable future but that's a second debate, but once you decided to go public for whatever motivations they have, why you wouldn't pay wall street to do it the right way is beyond me. if you look at the handful of

companies that do it this way, they are companies you've not heard of, they are sub micro cap companies and orphaned on wall street they don't have to do it it's an iconic company to put it another way, i wouldn't call jpmorgan to curate my news egg. i don't think anybody should call spotify to monitor its market needs i don't think they are going to do a good job. >> on the other side, roku is a 15 year in the making overnight success, it was founded 15 years ago next month, in october so, what's your take on the positioning of this company? we keep talking about the competition between amazon and apple, but really it kind of also benefits roku, because they have a big customer base, they are sort of a neutral player >> agnostic platform, right? there was this whole issue with, for example, amazon video and apple video, apps weren't on each other's devices, all that, meanwhile, roku had amazon, you

could also play apple stuff, as well so i think that's a big part of its appeal the other thing to know, still not a profitable company, but the fastest growing part is the media business, which is the advertising, also the bounties they get when they sell a netflix subscription through the roku box, so the growth is going to come from content if they really want to put it out in the next few years, they need to start looking at should we produce some of our own content since we have a captive audience >> subscription revenue share make up about 40% of sales at roku you say that's going to get to a majority >> it's the faster growing portion. >> they are also growing revenue per user pretty fast >> i think the growth -- you're buying into -- if you're buying to roku now, you're biuying on the theory that's going to grow faster it's being more embedded in different devices and having content that's going to keep people sticking to it. >> to that last point, we got a couple seconds left, david amazon nfl tonight

does it mark the beginning or end of a chapter in any way? >> i think it's the beginning of a chapter as more channels and avenues for content become available and consumers have more choice and the competitive landscape deepens, as well >> $50 million for ten games is pretty amazing >> it's a bargain. >> didn't twitter pay $10 million? >> for the same amount difference is, it's for amazon prime, maybe 85 million prime members out there. twitter is 300 million so the ratings on twitter nfl weren't great. amazon has its work cut out in terms of if it's going to win the audience >> not as many bots paying for amazon thanks, guys when we return, shares of blackberry are up this morning on a surprise profit beat. we're going to talk to john chen later on, the crisis in puerto rico as the president waves the hotly debated jones act. and we'll hear from paul ryan on the tax plan and a lot more later this hour dow has gone green and stayed

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want sure!ck? alright, looks like we've got chips, popcorn, pretzels? pretzels! plain, sourdough, spicy, sesame, honey mustard, chocolate covered, peanut butter filled, this one's in german, it says, "reindfleisch?" plain. great. so what are we gonna watch? oh! show me fall tv. check out the best of the best hand-picked fall shows on xfinity x1, online, and the xfinity stream app. thirsty? blackberry beating second quarter earnings with a higher than expected revenue on the heels of a pivot away from hardware focusing on software mobility and security. shares up double digits this morning, right now nearly 13%. blackberry and joins uod morning >> good morning.

>> john, this is a quarter, caught wall street by a surprise close to $11 a share, where you were earlier this year but haven't been since probably a year and a half ago. is this consistent performance we can expect here on out? if so, it says something about where the stock might be headed. >> well, couple of quarters ago, john, in q4 we also had a good quarter. as i said at that time we expected to see more good quarters than bad. i think this is not a straight lineup i want to be cautious of that, but we are building some very solid fundamentals in vistas and, you know, you have followed the story for a long time. we're coming around, we've become a good software company, and good earnings, so i'm comfortable with moving forward, but i wouldn't say this is going to be a straight lineup and it is going to be the quarter of the quarters and everything is

going to be great going forward. i think it's going to -- it's going to go through some up and downs, but i'm hoping more ups than down. >> okay, talk to me about the speed bumps now, because it used to be hardware and inventory and the difficulty forecasting demand in a shifting smartphone environment. you've pivoted away from hardware pretty much entirely at this point, so what is it that's causing the fog in the lanes ahead? >> well, enterprise spending i think capital spending is a big part of it now that the same software things i think, you know, the adoption rate of cybersecurity technology, although you see great results lately, i said this morning in a conference call, we have a consulting surfaces from cybersecurity in seven digit, and that is starting to get in the very sizable range no so we have to deliver that ave to have enough people

and trade personnel around the world to deliver that. we're very big in cars, in auto, and we won a number of autonomous driving platforms, but those revenues are going to come later when the cars are being shipped. so there's still road bumps going along the way, but not so much that it will get ourselves off the track, and i think i'm comfortable in where we are as a company and the strategicness of it >> i want to talk to you about security, especially when it comes to the impact on consumers. you are on the board of wells fargo, which has had its own issues with people's information and customer accounts. i know you don't like to talk about that as a board member, but it also comes up with equifax and this issue that we've seen of them getting breached what is the new standard in this mobile digital era for when companies should let people know that their information, their accounts, haven't been used in the ways that they expected?

>> yeah, you know, i haven't been close enough to the equifax situation. you're right, as a board member, it's inappropriate for me to talk about a company i'm on the board of you leave that to management, but on the equifax situations, you know, i read just like everybody read, you know, looks like they've been on this problem for a while, and my personal opinion is you should be out as soon as you know it's confirmed. that's my personal opinion, where they have technical difficulties behind it or not, i don't know that personally, and if i could be helpful, i'd love to >> john, i hope you won't mind a question on tax reform it's on the minds of so many of our viewers today. is all this debate about the fiscal multiplier of corporate tax cuts versus household tax cuts, on repatriation, to the

degree these companies have offshore cash, but it's been offset by the level of debt here in this country, do you think a cut in the corporate tax or a big move on repatriation really results in job creation? >> yes, i do i do i'm a believer in that camp. and i'm in that camp and so i do expect that if you let people repatriate back to the united states, there's a lot of foreign profit out there in cash, and two choices. you either pay hefty tax on repatriation and then see your value of those money down, or if that's the case, you have to invest elsewhere overseas. so an incentive to take it back to the united states to invest, it's the right thing and i'm a believer of that >> all right, thank you for weighing in on that, john chen, ceo of blackberry. after earnings, the stock up better than 12%. >> thank you when we come back we're going to go back to san juan,

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hello, everyone, i'm sue herrera. here's your cnbc news update at this hour. just today after president trump declared his displeasure with him, hhs secretary tom price showed up at a flu shot event. he didn't mention the controversy over his costly charter flights, but did respond to a reporter who asked if he still got the confidence of the president. >> the -- we're going to work through this i think i've got the confidence of the president >> the supreme court is taking on a new case with the potential to financially cripple labor

unions that represent government workers. the court agreed to consider a free speech. and prince harry made a new friend in toronto. 2-year-old emily hanson made a grab for the prince's popcorn as he was absorbed in conversation. when the prince realized who was going on, he teased emily by taking the popcorn away, but then he gave it back and shared it with her. there you go looks like it tasted good, too that's the update at this hour back dntown to "squawk alley." sara, back to you. >> i already loved prince harry, even more now. >> he's got such a big heart >> and popcorn, my favorite food >> there you go. you got it, sara markets closing in the uk and across europe right now. mixed session over there, as you can see. italy in the red most of the markets, though, from the uk to germany in the

green. aiming for a sixth straight day of gains european bond yields have been on the move jumping along with u.s. treasury yields, we should say. we are looking at the highest yields there in weeks on expectations of tighter monetary policy worldwide moving on to currencies. that had been boosting the dollar against current sis like the euro, little bit a reversal in that trend. firmer up, the pound is also stronger today, 1.3444 rough day for shares of h&m. take a look at the retailer down sharply after posting a 20% drop in third quarter net profit hurt by heavy discounting over the summer and fewer visitors to its stores the stock finishing lower by about 5% the trump administration authorizing a waiver of the jones act for puerto rico this morning, and that allows foreign vessels to ship from american ports to the island. critics argue the law was

holding back disaster relief for the hurricane-ravaged u.s. territory. our contessa brewer is live in san juan with more contessa, has there been any progress >> reporter: yeah, for one thing we know now the rate of egress here at the crawley terminal in the port of san juan is improving. how much it's very slow we just watched this container ship with more than 400 containers remember, they are stacked now there's a second level and first level. here's one of the problems the port and terminal for crawley is up and running on generator power, using 4,000 gallons of diesel every day, so the cranes come in and they lift off of these containers, but there's nowhere to put them. crawley is already at capacity for where to put the cargo containers full of these supplies, medicine, food, water,

construction equipment, building supplies so the plan is they are going to start stacking them out on the pier, and when that's full, he's going to start blocking off the roads, which means the truck drivers when they come in won't have access to the containers that have already been sitting here across the way you're seeing tote maritime in much the same position 10,000 containers in the port of san juan, and remember the executives have family, friends, neighbors who are desperate for supplies, so all of this is making them very emotional >> it makes me sad and frustrated just to see that we have here all these goods and people out there are just begging, anxious, in the need of such important supplies, and they are all sitting here in this yard.

>> reporter: brock long, fema administrator, said in the last hour not only is fema here and helping with logistics, they are working with the department of defense and local governors to make sure the supply chain gets back up and running, but he says the problem here is you can't bring in extra truck drivers and trucks from the mainland, because there are limited slots. they have to make due with what's in puerto rico, getting fuel to the drivers so they can get to work, so they can drive the trucks, so they can get out and deliver this stuff is the important piece of this supply chain. carl >> contessa brewer in san juan, thank you so much for that for more on this we're joined by crowley senior vice president, mike, it's good to have you with us good morning >> good morning, good to be here >> what does this waiver mean for relief efforts >> well, it remains to be seen as you can see, the -- all of the cargo is backing up in the

port the issue is not getting cargo to puerto rico, it'she suppl chain and getting it out oport and to where it's needed >> so when the president yesterday said that there was resistance to a waiver from shipping -- the shipping lobby, was he overstating that case >> i would put it this way first of all, our top priority is the health and well being of the people of puerto rico. we have 400 employees in puerto rico, we heard from the last of them just on tuesday, and thankfully they are all okay they have lost homes, had their homes damaged. that's our top priority, so we have been responding aggressively since before the storm to get the cargo there and to help in other ways and get the cargo moving to where it's needed >> mike, this disaster seems to be shining a light on a weak point in logistics and emergency response writ large. i'm hoping you can talk about what we're learning about the

need for communication, not just among government folks, but among truck drivers, logistics providers, the people needed to move goods around after an event like this. how can we do better next time >> well, it's a good question. i think part of the answer is we have to recognize we're one week after one of the most catastrophic storms to hit the caribbean in a long time, so you understand many of the loads that are sitting on the terminal, the companies would love treceive them the grocery stores, thbox stores, would love to receive them they can't receive them because the roof was blown off of their establishment, or they don't have power and they can't open their doors. so the idea of getting the cargo to them is the secondary priority for them. i think we have a very efficient supply chain in normal times in puerto rico, and it's to be

expected that it's going to take some time to get this back up. we appreciate, you know, the work that fema is doing and d.o.d. is doing and happy to hear that even more assistance with the trucking logistics and fuel for the trucks is on its way. that's critical. so i think things are moving in the right direction. >> so we've all learned about the jones act and some of the controversy surrounding it got this waiver now. why do we need a jones act puerto rico is a u.s. territory. why do we need these kind of restrictions on shipping >> well, the jones act is one of the first laws passed by congress after the constitution was signed it is the bedrock of the american maritime industry it basically says if you're going to move cargo between two american points, you have to do that in an american vessel, and that includes an american-built vessel and american crews on the vessel

without that law, there would t be an american maritime industry shipping industry, it isnational entirely dominated by foreign flag of convenience vessels and that would not -- that would not be acceptable from a security perspective within the united states, and from a security perspective, we need to have an american maritime industry to support our military in times like this and in times of national emergency >> senator john mccain before this was waived did call it a protectionist rule, that the shippers were just trying to protect their own interests. >> he's been saying that for a long time. i respect disagree with him. i think it's not protectionist to say that you have to hire american workers to work in american domestic commerce i think he's just wrong about that and has been for a long time >> he's been stubbornly pushing for that over time mike, we certainly are thinking

about the people of puerto rico and hoping that relief effort picks up steam we thank you for your time >> thank you >> thanks so much, mike crowley of crowley maritime. watching the markets as we go to break, dow is managing to hang on to some gains, mcdonald ldi t'seanghe stri industrials this morning we're back in a moment oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain td with mammm, blueberry?als and thousands of other traders? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

there certainly is a lot of

hope and hype around what tax cuts and repatriation will actually mean for markets and companies. good thing our senior economics reporter steve leishman joins us now to cut through it all and describe some of the winners and losers steve? >> thanks. the markets sometimes treat everyone as an equal winner to cut corporate taxes, but a closer look finds definite winners and either losers or those who win less let's look at the overseas cash situation. tech and pharmacy are big winners. jpmorgan points out two reasons companies hold money overseas, one to avoid taxes, the other is to run overseas businesses some tech and pharma companies have ownership overseas mostly to avoid tax or pay lower taxes. they are the most likely winners from repatriation. consumer products companies keep their money overseas for overseas operations, they'll probably boost payouts less, so their stocks will be less

winners. deduction winners and losers and there's a lack of clarity here some companies will see deductions wiped out for example, the interest deduction is on the block. the r&d tax credit, probably not. and then there's a big debate between capital and labor. thadminiration argues a corporate tax cut will benefit labor, which they say pays the bulk of the tax through lower wages. this idea that workers bear some of this burden, it's widely accepted, but the administration is definitely at odds with mainstream economists and argue that workers pay the bulk of it. they say 70%, others say more like 25% or 30%. one more thing, will corporate taxes and repatriation lead to an investment boom unlikely economists say companies these days, they are not liquidity or capital constrained. they can get access to plenty of money. there could be some upside, though, as they spend less time and resources, guys, figuring out how to pay their taxes back to you. >> steve, where do you come down on the stimulus of having a lower tax rate, versus the

increase and what you may pay in debt interest and what you may pay in labor costs >> i think there's a lot of disruption as people figure this out, but here's where i have a problem and i'm glad you asked this question. i don't have my brain around the whole thing here, but think about this, the effective tax rate paid by companies is not a whole lot different from where the administration is. we call it 22, call it 25%, administration going down to 20%. companies are not paying the statutory rate, so there is not going to be a huge investment boom or change at all just from lowering the rate. what there will be is some less effort used to get that rate down on the part of companies. there's one thing we haven't talked about, carl, which is there is some potential here for m & a, both for overseas and u.s. companies in the sense that when the u.s. company bids on a foreign asset, they have a bit of a problem and less money here because their tax rate is

higher >> i just have another quick one on repatriation. this has been a hot debate you know, when the politicians say more than $2 trillion is sitting in cash overseas, it is mostly in u.s. dollar denominated assets i know that because this was once a big issue for foreign exchange, was all that money going to flow back into dollars, no, it's already into dollars. >> sara, you're ruining the myth, sara the idea is there's this money that's going to come flooding back into dollars because it's overseas >> is that real? >> folks, i'm sorry, it's not overseas it never was where it is is either in foreign bank accounts or even u.s. custodial accounts and it's sitting mostly or largely in dollar denominated assets. it's in treasuries, high quality corporate bonds, it's in money market funds, and this merakes sense because corporate ceo and hedge fund operators make money in a foreign currency and if they don't need it, they either convert it to dollars or hedge it as dollars and keep it there. there's going to be no flood,

not much expected in terms of an interest rate or a dollar change because of this money coming flooding back to dollars it's already in dollars. >> i thought so. thank you for clearing that up, steve. >> well done, sara >> thanks, let's get to rick santelli and the santelli exchange at the cme. hey, rick. >> hi, carl. you know, i have to weigh in on this quickly steve's right. i talked about the effective tax rate for corporations, but let's not miss the big elephant in the room you know what, small businesses, an engine of growth that's been starved fuel those entities and the subchapter s and all the configurations will give us horsepower we need to really pay attention to that group. they don't vrbahave the money t deal with the huge compliance, but they have huge effects on hiring now let's talk about a couple of channels broadcasting, channels with regard to the fixed income

market listen, i'm going to go over things we all know, but in a slightly different way we know there's been four increases since the crisis 2015 december from 25 to 50, we were zeer ro to 25 if we go to may -- deficit neutral in the out years. >> i know you visited and spoke to steve scalise in the hospital many times, but what was it like and what did you say to him when you first saw him in the capitol today? >> i'm not like john boehner, wasn't a big crier, but i was a babbling idiot i could not compose myself i don't have words for it. you know, we were there when he was basically in a coma, and he couldn't even talk he couldn't -- he wasn't conscious, and when he came off

that helicopter, it was very, very, very dire. and for a couple of days there, we really thought we had a real chance of losing him, and to talk to s rgeon, he was up in the gallery, and how he mapped out just how hard a road this was going to be and just how dire the situation was, and where he's come from, from there to here, it really is miraculous it's just amazing. and so to just see him there sitting and standing with a suit on and jennifer, i'm just amazed i mean, it was really something. so i really don't have words, other than just relief and just thanks >> mr. speaker, to that end, i mean, he talked a lot about prayer and his prayers starting out on the ball field here talk about, you know, you sometimes talk about your faith. talk about what you were saying to god in prayer for him, his family, the house in general you talk about this being an attack on the institution and

the american system. >> yeah, i mean, i prayed constantly you know, i'm a strong person of faith, as well as catholics we don't usually wear it on our sleeves, but our prayers have been answered. answered we prayed for steve and his family we prayed for crystal and daly, who are friends of ours, we all know each other. i also prayed for the country. you know, obviously i think the person was mentally disturbed, but to take political emotions and beliefs and to turn it into that is just an awful thing. we have a lot of anxiety and a lot of polarization in this country because people have strong political beliefs and i think to witness the bipartisanship that occurred right then and aft, i think it's a good example to follow. i still think about that picture of the democrats praying in the dugout when they were doing their practice that morning. and i think that's the example

that ought to be set, which is we have differences. let's keep them in check let's treat people with respect. let's pray for each other. so out of these tragedies, good things can come from it, and i think that's a prayer that's been i think as well so i just think there's a lot to be thankful for and it's pretty amazing. >> mr. speaker -- >> who are you with? >> fox mr. speaker, the president has given some comments about nfl players and used racist language to describe these black players who are kneeling for police brutality and racial injustice >> you want my take on the nfl >> i want your take on the president's comments. >> i haven't seen all of his comments other than clearly people have a right to express themselves the way they want to. that's the first amendment what i don't think people seem to get is when you do it on the flag and the anthem, it looks like you're protesting against the ideals of america, the patriotism, the people who put

their life on the line and giving their life for the country. so i think it's misguided to protest the anthem and the flag because people don't see it as an issue on some political issue, they see it as protesting against the people who have given their lives for this country and the id we all strive for to make a me perfect union. that's the poi that think some people are missing in this debate yeah. >> mr. speaker, liz with yahoo! news i was on -- so the president has stressed again and again that his tax plan will not benefit the wealthiest americans i was wondering if you could commit to keeping that promise, and if that would include a fourth income tax bracket? >> so the purpose of our tax plan is to help the middle class and it's to help get jobs created and to help keep businesses in america and to help get money that's trapped overseas back into this country.

that's the purpose of this tax plan and so the fourth bracket, the fourth rate, the goal of that is to make sure that the benefit on income earners attributes to the middle class that's the whole purpose of this tax plan as you know, if you've been covering this, this is the framework. within this framework we're going to work and that's going to be up to the ways and means committee and finance committee to specify exactly how that is done there are many different ways of doing it that's why in our framework we introduced the idea that the rate reduction won't be as significant for high income earners because we want the relief to go to the middle class. yeah >> you've long talked about lowering tax rates on capital gains and dividends and that was in your blueprint but not in this framework why? >> well, it's one of the casualties of the health care law not getting passed as some of you probably know how the numbers work, not getting the health care bill passed baked into the baseline that 3.8% tax that's like $170 billion

so it's all about fiscal space what we wanted to really keep our focus on is getting rates down we think rates are a critical thing with growth and international competitiveness. we wanted to have a middle class tax cut. so you just can't do everything you want to do hopefully the ways and means committee can maybe find a way of improving on this, but that's where it stands now. >> mr. speaker, on health care i was wondering if you could address sort of vice president mike pence's ability to deliver on legislative wins given what happened with graham/cassidy this week. when he went to lunch in the senate this week, the senators said he didn't even talk about health care. so i was wondering if you have any -- >> i can't speak to what they talked about at lunch. >> what is his role as sort of the -- >> i think mike plays a very productive, very constructive role here. what's good about mike pence is he was a house member, he knows our system, he knows house members personally very well he's the president of th senate a lot of people that he knew in the house are over in the senate so mike is the perfect bridge

between the house, the senate and the white house. i think he's doing a fantastic job. that's just a tough issue. we're disappointed in the house that they couldn't get this over the finish line. it's not over. we'll have to do something to fix this i tell people there's a reconciliation vehicle next year and we'll ultimately get to this >> last question thank you, mr. speaker, kelly with cq. on hurricane harvey, democrats say that there's not a quick enough response from the trump administration and that a spending billneeds to be on th floor now for puerto rico and the virgin islands there's a $6 billion injection of funds into the disaster relief -- >> yeah, in two days. >> so i wonder is money really the problem right now or is it manpower and what do we do about that >> that's a good question. as you know, as soon as we get these requests, we've turned around and financed these requests $6.7 billion in two days will be released into the fema accounts, which equally applies to puerto rico actually the president waived

100% of the match with respect to puerto rico, more generous than for texas and florida so a huge capital injection will occur in two days. so the resources are there, but we clearly believe and understand that those resources will eventually be tapped. what's happening now is you have to do damage assessments but you can't do damage assessments until you do the actual humanitarian mission, the rescue mission, the helping people who are trapped in their homes, people who are in need of critical care, diesel for generators and water so that humanitarian mission is happening right now. so you have a surge of manpower to get relief to people immediately under duress then you have time to do damage assessment and so we're going to be waiting for the administration to be able to collect all that damage assessmentata. d clearly because harveyas earlier, irma was earlier than maria, we're getting better damage assessment information from florida and from texas. but we still have to get more damage assessment from puerto

rico and we believe -- i assume it's in october that we will get a request from the administration and we will quickly act on that request, because we need to get help to people who need it and so that's going to happen. i'm comforted in the fact that the bill we passed earlier a few weeks ago in response to the request, that also applies to puerto rico. and i'm very glad we front loaded the detectiv$6.7 billionh was in the cr that they'll get in two days. the challenge with puerto rico, there are several of them, but it's an island i mean in janesville, we loaded ten trucks with a day's notice for the j.j. watt foundation and sent them down to texas. you can't send trucks to puerto rico it's -- it's -- so it's much more challenging i'm very glad the president waived the jones act so we can get every ship we can find over to puerto rico then it's about getting the radar up on the runway so the air traffic system can be fully up and running

so there's a lot of work that's happening right now. >> is more military needed >> i won't speak to what north com can or shouldn't do but obviously everything we can do is needed. there is military involvement clearly happening right now. the hospital ship, the c-130s, the national guard, so there's a surge of resources we've just got to make sure we can everything we possibly can for our fellow citizens who are in puerto rico thank you very much, everybody apprectet. >> house speaker paul ryan in his weekly briefing with reporters, taking questions, guys, on everything from tax reform to the relief -- hurricane relief for puerto rico says that $6.7 billion authorized by congress will be released to fema in two days for relief, including puerto rico, but clearly the island presents challenges because it's an island logistically also made some interesting comments, i thought, re the nfl controversy. he sort of stood up for the ability to protest and have free speech, but also called it misguided to kneel during the

national anthem because it sends a message that we're not fully support -- behind our troops that's the first time we've heard at length from speaker ryan on that and then taxes continue to sound the message from the proposal that we got and that we heard from him on cnbc this morning. i think we have elon ready now what did we learn from the house speaker on taxes and anything else >> reporter: the next step is the budget i asked the speaker if he believed that any tax package should be deficit neutral. he said yes, it has to in order to comply with the special rules they want to use for this process. but it was also interesting that he mentioned the capital gains rate that may not be reduced and that's a casualty of the failure of republicans to pass the health care bill back over to you guys. >> tnk you very much also made some comments on seeing steve scalise back at work, which was one of the highlights of the morning and probably the year. meanwhile, dow is hanging on to a gain with the help of mcdonald's you saw this report that argued

that mcdonald's benefits from legalized marijuana. whether or not that has to do anything to do with the stock appreciation, it's the best day for mcd in almost a year you have to go back to october of 2016 to see a gain like this. let's get over to "the half" back at hq and welcome to "the halftime report." i'm scott wapner our top trade this hour, the remarkably resilient most positively prolonged rally for stocks ever. how long the good times can really last. with us joe terranova, josh brown, john and pete najarian, carrie firestone is here also. we begin with the markets where stocks are winding down, a september to remember. the major averages have bucked history thus far and haven't had much volatility at all despite plenty of reasons to be volatile wondering what all of that says about where the rally goes from