eye on, it's taking a breather that does it this hour for "squawk on the street. let's send it down to the new york stock exchange for the start of "squawk alley." back to you. >> thank you good morning it's 8:00 a.m. at roku headquarters in los gatos, california, 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ good thursday morning, welcome to "squawk alley." i'm carl quintanilla with sara eisen, mike santoli at post 9 of the new york stock exchange. interesting day as the eight-week run the markets have had currently at risk as we're

down for the week. interesting intraday movements here, mike, what do you think is going on >> there's been this undertow of weakness, small cap stocks underperforming. average stock made no progress, also a lot of focus on high yield debt the credit markets have been a leader, they've been weakening for days seems it's caught up to the headline indexes not sure if there's much more to it than that, other than pent-up selling in september and october when we're normally weak and skated higher through it >> i wonder if it has to do with anything that's been happening in the bond market we've been looking for clues we've been seeing a lot of buying in treasuries yields have come down from last week, almost around 250 and now people are looking at high yield and some of the selloff we're seeing there >> that pinched yield curve got more anxiety, another excuse to do more selling. >> doesn't take much to get people's attention these days. media is the big story at&t and time warner, that merger facing potential push

back after reports at&t may be required to sell cnn a chief responded to reports saying he has no intention of selling cnn. we'll hear more from stephenson in a couple of hours from the deal book conference, but in the meantime, let's bring in mike white, former directv ceo, who i imagine, mike, has been watching the last 24 hours of coverage with interest. what do you suspect is going on? >> good morning, carl. listen, i work carefully with randall and the at&t legal and government relations team. these guys are meticulous in the preparation they do for this kind of a transaction. you know, i think clearly the government is uncomfortable about some aspects of it, but ultimately i think at&t was very smart in the way they designed the transaction. it doesn't go through the federal communications

commission -- as it were the department of justice would have to go to the courts and this is a country of laws. i still expect it would -- that the justice department would not be successful in litigating it, because you've got a precedent out there, which is the comcast deal, and at&t, directv combined are not much larger than comcast. >> so -- >> where does directv fit into this equation? for instance, would this deal make sense for randall stephenson and at&t if directv wasn't part of the equation, or is it the key here in terms of what they are planning to do in terms of distributing all that content? >> no, sara, the bigger issue is they are looking for significant synergies from programmatic advertising and leverage that across all of their businesses and leveraging big data. i think when you start to pull

pieces out, you know, whether it's cnn, which i don't think would ever get pulled out individually or a directv, you start to kind of dilute the synergies. so i think clearly from the government's perspective you've got a large purchaser of content in directv and you've got a large provider of content. it's a vertical merger, which has always been looked at legally as benefiting consumers and not removing competitors from the market, so i still don't see the legal basis for a successful challenge in court, but, you know, this is a negotiation, and i have no doubt that it will take its own course and both sides undoubtedly will be fully prepared. >> mike, even if it does seem as if at&t is in a good position legally here, it does raise the prospect of just what cost and time makes it worth while to pursue it that way, i guess, if

you have the government trying to make the case that, look, the world has changed, at&t has got 150 million subscribers with their phones and it's a different type of distribution than we've been used to before and try to propose that, in fact, the industry terrain is different now and, therefore, we're going to make it harder for you, do you think there's a point for at&t where it becomes not worth it >> well, i notice the breakup fee isn't that hard, i think it's $500 million. it's a lot of money, but in the grand scheme of things for the deal this size it's not that huge, but, you know, my sense is at&t is very committed to this transaction, very strategic from their perspective. and usually, by the way, the litigation when you're dealing with this kind of a situation doesn't get dragged out, you know, for years. it tends to be months. and so my guess is they get an expedited hearing and it would, you know, if it does go to court, you know, it's not a matter ofyears, it's a matter

of months. and so i still think it's pretty efficient process from a legal standpoint compared to other things >> we are happy to rely on your expertise in this specific situation, mike, because you've been through it before we'll talk maybe some disney/fox next time. what a week it's been for media. >> well, you know, i think that's a more interesting case, carl, and there, by the way, you need to look at how do you create an alternative netflix, particularly to international subscribers, because that's where netflix has its strength >> indeed. thanks again, michael white, former directv ceo speaking of media, roku shares higher after its first report as a public company, thanks to strong sales, despite the fact that roku is not trying to get in on the content wars by creating original programming. we asked anthony wood about that a few moments ago.

>> when a company like disney, you know, if they do launch a channel that's an over the top channel, we are the leading ott distribution company in the u.s., and so those companies naturally come to roku for distribution of their content, and we're just a great partner for them we've built a lot of features in our platform to help them reach audience, monetize their content. >> not often you see a name like this move this much. >> yeah, obviously, on a tough reception after the ipo, so the skepticism was, hey, this is a transitional technology, we can't see them being at the center of things very long, but these results show me, look, maybe streaming is a fast enough growing part of the world they can do interesting things for a long enough period of time i think it's an accelerated version of what tivo did, which was hardware into software tivo still exists and is a partner of roku, but that's where i see it coming around

>> although the bear case is, yes, it was a first mover, but this is an overly crowded space with amazon, google, facebook. they are all getting in on the game apple. as big competitors who can afford to lose a lot more. >> market cap on roku still about $2.5 billion, so keep that in mind. when we come back, shares of square hitting a snag this morning. we'll talk to sarah friar exclusively. by the way, she's the executive that has jim cramer's big endorsement. take a listen to that. >> square is good. i remember sarah friar, who's a fabulous cfo jack dorsey should declare victory. >> plus, retailers dominating earnings agenda. insight from the ceo of elf is coming up. and mark cuban on the record we'll hear from the billionaire investor live at the new york times dealbook conference when "squawk alley" comes back.

shares of square climbing through the morning, now in the green on those better than expected earnings. let's get to deirdre bosa with square cfo sarah friar in san francisco. >> that's right, we have sarah friar here right beside me, and i know you guys were down a little after the earnings, but i also want to pull up a 12-year chart and show square shares have nearly tripled in the last year, so this quarter another great one. bigger merchants making up a

larger portion of shares, business, nearly half of the payments volume. you're actively recording them, too, came up a square register to better serve them what is the strategy here, how big are you looking? >> sure, ultimately we want to grow with our sellers and there isn't a cap to them. as you pointed out, we brought together all the best parts of square, hardware, software, managed payments we think that does open the door to really large merchants coming on the platform. we talked about one where we think they can bring 100 venues on to the platform, so a big part of our growth, 64% year over year this quarter >> what i'm getting is, how big could we see it, could we ever see another starbucksized deal that was a long time ago when your market cap was a fraction of what it is now. you guys are in a different position are you ready to partner with big chains again like a starbucks? >> i think what we learned is we don't want to customize our product. we want a product that's there for a merchant of any size

we absolutely added pieces like vertical point of sales, so we launched a retail point of sale in q1, understanding retailers have complex back end environments, lots of skus to manage, they need to be built to manage their supply chain, and we're trying to do that, so where we can add in machine learning, maybe a.i. in the future into those products, we think it will be a platform for a merchant of any size >> not ruling it out >> not ruling it out >> let's get to the bank charter, you applied for one early this year. why did square apply for a bank charter? what is square's approach to banking, traditional banking, and its long-term goal >> for us it's about the underserved. as we've done with payments, how do we bring folks on to a system that's discriminated against them with square capital we've been lending down into small businesses that traditional banks haven't gotten to. with the ilc, that's a way to get closer to the regulators we think with that we can move faster, be more innovative with

the product, but ultimately it's how do we serve the underserved. >> i get you're serving the underserved, but why shouldn't they be worried you'd move into more financial services, especially jack last night on the call was talking about square cash, a spending device and you're offering more and more services. >> we are. we're looking for where can we bring utility to our customers sometimes that's our sellers, as we've done with you talked about the register platform, square capital, crm products, but we're seeing it now on the buyer side. with square cash, the product has been doing phenomenally well regularly we're the number one finance app in the app store and google play and that's seeing ourselves a top 20 app, it's all about utility. we see buyers want to do p to p, use a spending card, you know, and over time they want to keep a balance in that account. >> i know we have to go, but quickly, respond to that clip of cramer saying that you're the public face, you run the day to

day. how do you respond to that >> sure, absolutely. judge us on our numbers, i think our team is amazing at square. starts with jack, amazing visionary. i think he doesn't get enough credit for how much he's driving our business, and you judge him by our results, right, 45% year over year growth this quarter, accelerating, and look at our whole team i think we've constructed an amazing group of people that bring a lot to the whole company, and again, you see it in our results >> got you, sarah, thank you very much for coming to talk to us >> appreciate it >> throw it back to you in new york >> deirdre, thank you very much. as we see the shares turn positive there as we head to break, taking a look at the retailers reported earnings today, sort of a mixed bag. macy's missed on comps it was a beat the stock up 7%. adidas under pressure. e.l.f. beauty, we'll talk to the ceo of that one, es,ye lips, face, moving in opposite directions here. "squawk alley" will be right back

hey, you every talk to anybody about your money? yeah, i got some financial guidance a while ago. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you.

another earnings mover on a big morning, e.l.f. beauty posting earnings that beat analysts' estimates, and joining us now is e.l.f. ceo, welcome back nice to see you. >> thanks, it's great to be back >> so, 28% sales growth, not bad, but there are some questions from analysts about the timing of holiday shipments being pulled forward and what that ultimately means for guidance can you clarify what you're seeing ahead >> sure. we guided that we will do approximately $270 million in sales, about 18% higher than a year ago for the fiscal year, and so the holiday, i mean, every year we have holiday shipments for the season in some years the retailers take that inventory in the third quarter, some in the fourth quarter, so that's not really the big news the big news is how strong our growth is and how well positioned we are in the marketplace.

we continue to grow strongly and the brand resinates with our core enthusiasts >> are you surprised to see the weakness of the stock given the fact you are showing double digit growth continually >> yeah, you know, we don't really pay attention to it on a short-term basis this is a long-term growth story, you know, we're really proud that in our almost 15-year history we've grown every single year, regardless of the economic cycle or where the category has been it's really been by executing against our mission of making luxurious beauty accessible for all, so i think all it does is gives a great opportunity for somebody to buy, but we're in this for the long run. >> is the category of makeup slowing? and if so, which a lot of analysts have pointed to in some of the data, is this a permanent shift or something temporary >> no, you know, i've worked a number of consumer categories over my career, and one of the things i love about color cosmetics is, it's a category if you look back decades has exhibited pretty strong growth

over a long period of time, and part of it is how important it is to consumers and how resilient it is. so we have seen in other times, i think back in 2014 we saw a few quarters where it was soft, then came roaring back, so we don't consider any kind of category softness as a long term thing. we see it as a temporal kind of move again, the core consumer fundamentals of women love this category we don't see changing. >> tarang, you mention you continue to take share, even at the revenue number you're projecting next year, which is certainly a product of fast expected growth, you're not big in absolute size relative to some of the brands of the larger companies and i wonder if you see them fighting harder in other words, do they have the means to essentially make the economics tougher for you and make more demands on the retailers and the rest of it are you seeing any kind of squeeze there? >> yeah, no, we haven't. if you think about our business, we started as an e-commerce

company and have an incredible direct to consumer kind of business we went into national retailers about eight years ago. one of our largest customers is target so some of the larger players have seen us at target for eight years and, you know, we're now the number one unit share brand at target. i think we're the number three dollar share brand at target and, you know, we really resinate with their guests so it's really tough for others to kind of compete against us, given how great our products are and extraordinary value. so if they did now, it's still more expensive than what e.l.f. is, our quality is great, we often have preference over prestige, and just the way we really engage with our consumers is quite differentiated. so we don't really worry about big legacy competitors obviously, you can see both within our growth, as well as kind of our share position, you know, we have plenty of room to grow >> ten seconds, hottest product for the holiday this year? last year i think it was lashes. what was this year

>> yeah, this year, you know, we have these wonderful holiday kits they are perfect for gifting and, you know, all sorts of different price points from $5 on up, so just go on e.l.f.cosmetics.com and stock up for your family and friends. >> all right, tarang, thank you very much. the ceo of e.l.f. beauty oliver chen at cowen says the contour bubble popped and that's why the category is slowing. i beg to differ as someone who contours every day little color for you there, literally. let's get to dominic for the european close >> moments away from the european close and the color of the day is red you can see red across the board from all the major sectors in europe all sectors closed with declines, the banking index saw stocks rise. check out what's happening with germany's commerce bank hosting a net profit as the focused

overhaul other earnings, reporting an increase in net profits and it saw higher profits and sales from a year ago. the ceo also telling cnbc it's set to conclude preparations to sell its health care business by the end of march of next year. and luxury brand burr berry getting hit hard after the company outlined costs of store refurbishments, it spooked investors, so a lot of red overall. back to you. >> thank you very much for that. let's go across the room and get a news update this morning with contessa brewer >> here's what's happening right now. at nato talks in brussels, jim mattis says his colleagues will discussed the threat from north korea and russia's attempts to interfere in the democratic process. >> recognize that european capitals are closer, in fact, to pyongyang than washington, d.c., and europe is keenly aware from our discussions it was obvious that europe is keenly aware of

this threat, and we are all aligned in terms of characterizing the threat and in solving this sobering issue. >> the neighbor accused of assaulting senator rand paul pled not guilty in court this morning. he requested a pretrial conference, which was scheduled for november 30th. kevin spacey is being cut out of his newest movie it's already shot. people close to the production of "all the money in the world" say actor christopher plummer will replace spacey in the film. director ridley scott intends to keep the film's original december 22nd release date that's our update this hour, back to "squawk alley. sara >> contessa, thank you coming up, back live to the "new york times" dealbook conference for a conversation with mark cuban. plus, kayla tausche sitting down with goldman sachs' ceo when "squawk alley" returns

among the earnings movers today, adidas third quarter sales up 9%, helped by strong sales in north america and china, but with new players like amazon entering the sportswear market, is adidas concerned?

>> amazons of this world will continue to be more and more dominant in the u.s. marketplace and development in other parts of the world that's where the transformation for us as a company is so fundamental for our future success. we have in the u.s. not been impacted by any retail in the u.s. because we were underdistributed so we didn't get the way up, so when sales picked up because we were never in the stores, so we're not impacted at this stage on the stores coming down >> amazon friend or foe at this point? >> sporting goods market is more than $100 billion and i think there's room for more players. i believe the consumer wants the right products and brand, so it's up to us that our brand and products we bring to market are competitive and that is with or without an amazon. >> and, guys, i asked that question because amazon is quietly been rolling out its own brand of private label sportswear brands on amazon. peak velocity is one it rolled out in october, for instance, so it raises the question with nike

warming up to amazon, something we talked about with mark parker a few weeks ago, they were launching this pilot program to sell directly. adidas doing that and under armour are they competing or are they going to be important as the growth continues to be online and e-commerce >> or both perhaps >> definition of frenemy, absolutely as we go to break, look at shares of priceline, stocks still down after disappointing results earlier in the week. the ceo sat down with r emousea mody we'll have some of that conversation with "squawk alley" comes right back ng the constitution by taking money from foreign governments and threatening to shut down news organizations that report the truth. if that isn't a case for impeaching and removing a dangerous president, then what has our government become? i'm tom steyer, and like you, i'm a citizen who knows it's up to us to do something. it's why i'm funding this effort to raise our voices together and demand that elected officials

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shares of priceline rising a bit, still after disappointing results this week. seema mody caught up with the ceo and joins us now with some of the highlights. good morning, seema. >> hey, sara priceline ceo glenn fogle addressing what was a challenging quarter, rifle rivals like air bnb and a drop in the stock >> we're up year to date in our stock about 13%, so that's still growing, still good. yes, there was a little bit of a setback, but when we look at what we're trying to do in terms of putting investments for the future, it's the right thing for us to do >> expedia, air bnb, google, somewhat of a crowded market who would you say is your biggest competition? >> you're right, this is a competitive business and it's

been competitive all the time i've been in it, and we've done a very good job over the last more than a decade and a half we've been growing this business from when i started how tiny it was and now we are by far the leader in the space, so, yes, we have lots of competition, but we've dealt with it very successfully >> shares of priceline down over 12% just this week glenn fogle saying that investing in brand advertising to sustain growth will be a key part of priceline's strategy and guys, that could pressure margins going forward, although he does continue to see growth in china, its stake in sea trip, which it continues to build. also i asked about acquisitions and he said acquisitions will continue to be a part of priceline's tool box keep in mind one of the biggest acquisitions was open table and continues to wait to see the growth in that space the restaurant space guys, back to you. >> our seema mody, thank you so much for that. senate republicans are set to introduce their own tax plan this morning and this is what we

know so far. the senate version is expected to completely eliminate the deduction for state and local taxes. it's expected to have more tax brackets than the house's, four, and reportedly addresses some concerns about the 20% tax on multinational corporations "washington post" is now saying it will delay the corporate tax cut until 2019 our john harwood sat down with the national economic director, gary cohn, to discuss the tax plan take a listen. >> generally, if you look at what we're doing for middle class taxpayers, the reality is kind of simple the median income family in the united states, the family that earns about $60,000 in the united states, the speaker talked about them getting an $1,182 tax cut that family is now paying a marginal tax rate of less than 1% they are paying less than $500 of total taxes in the system so a $60,000 earner family of four is paying less than $500. we have cut their taxes

significantly. you can't go much further in the tax system unless you want to start going negative tax rates and go into the negative world, so when people score this you're scoring against the bound of zero. [ inaudible question ] >> our john harwood joins us this morning to talk about the interview, which is getting a lot of attention this morning, john, and a lot of headlines most of them centered around the benefits cohn argues to a large number of people from tax cuts that affect a smaller number of people >> well, that's exactly right. in fact, there's a former bush administration economist who runs the penn warton model at the university of pennsylvania just this morning came out with a study that says by 2027 the top 1% will get 53% of the tax benefits in this bill and the bottom 80% will get 14% of the benefits that is a very difficult

equation to sustain politically. gary cohn tried to do so and he told me our biggest supporters are the big ceos and the business round table, and his argument, much disputed by other economists, is that even if companies take additional profits as dividends or share buybacks, it is ultimately going to get invested in a way that trickles down to workers he said trickle down economics is good for the economy. >> i read that as a whole supply side economics defense my favorite quote from your interview, john, was "the most excited group out there are big ceos about our tax plan. i wonder if that quote is going to come back to bite him >> well, look, our nbc/wall street journal poll showed 25%, only 25% of the american people, begin this debate believing this tax bill is a good idea and they've since been hearing stories about the share of

middle class people who will get a tax increase in the bill so it is a big challenge for republicans and after that virginia election the other day you've got conflicting arguments. some saying, whoa, better stand back from this agenda or we're going to get hammered. the other says we better do something or we're going to get hammered how they sift those arguments will determine what happens in the house and the senate >> john, given the fact that, as you say, it begins as a tough sell, what about the chance of a corporate tax cut being moved to 2019 almost like you're deferring the main central driving force behind this effort and then taking the pain up front >> well, i think there's a chance they will delay it. on the other hand, when i talked to economists, they all agree that the most powerful part of this legislation is the immediate full expensing it only lasts for five years, but that is likely to result in more economic growth than the rate cut itself. >> finally, john, chairman of the house judiciary says today

he's not going to run for re-election. yesterday orrin hatch said virginia and new jersey races add urgency to the tax debate. how much are these things connected? >> well, i think the republican party and the house is under a tremendous amount of pressure right now, because they look at those down ballot races in virginia, where democrats are on the brink of taking over the house of delegates and saying, if you represent a suburban district, you're in big trouble. democrats aren't going to win the district, it's a very republican district, but there's a whole lot of pressure weighing on these members as they try to move ahead >> we'll see what the duelling proposals show on facts between the senate and the house john, thank you very much. great interview. watch it on cnbc.com coming up, mark cuban on the record we'll hear from the billionaire investor live from the new york times dealbook conference. his take on everything from quk lepoti wn cshe "sawaly" returns (honking) (beeping) we're on to you, diabetes.

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with us for the hour today, how long does he think the bull market will last plus, mr. gabelli owns many of the biggest media names. which deals he think will happen and which won't. and our call of the day is a stunning one on snap from the lead underwriter on that company's ipo. plus, you'll ask mario

we're taking questions through twitter. all noon eastern sara, see you in just a bit. >> all right, scott, thank you kayla tausche sitting down with goldman sachs ceo lloyd blankfein in china she joins us now from beijing with more from that exclusive interview. kayla? >> hey, good morning, sara you just heard gary cohn say that ceos are the target audience for that corporate tax cut. well, lloyd blankfein doesn't think the market needs a stimulus right now and he's not been shy to criticize the administration when he feels his views have strong enough and he wants to share them, so i asked why he's become an advocate for the administration on this particular trip in beijing that's where we'll pick off in my interview with him today. you've used your twitter feed, though, to air some grumblings about this administration, whether it was trolling infrastructure week, or talking about an implication that the president was casting a shadow over the country

did you have hesitations about carrying the flag in this trade mission? >> you know, carrying the flag, you mean the sense of being an american in a bilateral trade mission? >> throwing your weight behind the administration that you have had issues with in the past. >> let me tell you, nobody's on all fours with anybody there's things that i disagree with on the administration, but let me just tell you what i agree with i think this is a pro business administration, not for the heck of enriching businessmen at the expense of there's kind of a narrative that this is a competitive interest between business interests on the one hand and working people on the other or the middle class on the other. i think -- i think if you support business and growth, that inures immediately to the benefit of every american. that's what we really need >> when you think about the

concept or the concepts, plural, that the administration has conceived, a lot of it has been generated by goldman sachs alums. we're a decade away from the coining of the government sachs moniker, but where is the influence on the white house and by extension the economy >> in some ways i wish i had a lot more access if there weren't as many goldman sachs people there and people didn't feel so awkward about engaging i wish that turns out to be a bit of an overhang listen, let me say i'm proud of the people after goldman sachs, i'm proud of the people we get i'm proud of what they learn when they are at goldman sachs, and i'm proud they are highly sought after when they leave goldman sachs. but when they leave goldman sachs, they leave goldman sachs. people have talked about the revolving door between government and industry. i would say, it's not a revolving door at goldman sachs. we're not taking a lot of people out of government. the government is taking people out of goldman sachs, and those people aren't returning to

goldman sachs when they get out. >> he followed up that comment by listing a long line of luminaries among them hank paulson, treasu treasury secretary, one-time ceo of goldman, who was known for his extensive deals he did in china. so, obviously, blankfein is owning the fact goldman is a training ground for people to go and serve there country and he said it right there on the record, it is not a revolving door, it is a door that closes after they leave goldman guys, back to you. >> interesting that we just heard from gary cohn with john and lloyd with you, as it appears at least corporate america really trying to push the benefits of the tax package as we know it right now. great stuff, kayla on your ongoing trip through asia with the president. dow's down 165, which may have something to do with some of these headlines regarding the senate version of the tax bill, but who knows? we're back in monta me

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stocks moving lower through the session, but we're close to the session lows right now, dow's down 153 art made his way to post 9 to talk about what may be driving this seemed like this last tick

coincided with the "washington post" headline that the senate would push for a 2019 start on corporate tax cuts >> that was, i think, what gave us this new leg down some of this nervousness, i think, started offshore. you had a big trading glitch in japan. they seemed to recover from that they seemed to recover from that but when europe began trading, things started to come apart there and it's fallen in our futures. so a lot of different things tugging around here. there's also some speculation in washington circles that when the president finishes his trip and comes back, there may be some more legal troubles for members of the cabinet and things like that so it doesn't sound like clear sailing going all the way through. so, you know, we've run the record highs on somewhat negative breath. so the market was a bit vulnerable it just all came together this morning. >> the credit market is the other thing people had been point to for several days and it

seems like the headline indexes are taking account of all of that in one bite today. >> yeah, i think that's right. the junk bond index has been down for i think seven days in a row. so we've had these little check engine lights go on all around i think it's suddenly come together but, you know, i think carl was spot on with the idea that when the headline came out about postponing the tax thing, everybody got a little further concerned. >> so as far as how the market is trading off of the headlines out of washington in terms of taxes, what's the key, just when those corporate tax cuts are implemented? >> yeah, i think the concern is that it might be drifting further and further out. of course if they wait to do it into next year, it's highly unlikely they could make it retroactive enough to impact this year. so that is a bit of a concern. they're looking for some real

action here and they want to see stuff nailed down. secondarily from the standpoint of the republicans, the longer it takes to implement this thing, the less impact it could possibly have on the 2018 election. >> larry kudlow has joined us at the desk i can see he's chomping at the bit. >> you heard tax reform. >> how much would this delay matter >> i've had this story for a little bit the corporate tax cult is going to be delayed in the senate. this is just the chairman's marks, it's not a final vote, to january 1, 2019. but the immediate expensing of cap capex will be implemented january 1, 2018. it's not good. it's not the worth thing in the world and i have a feeling it's not going to hold. capex is good, that's pro growth however, delaying the decline from 35 to 20, you know, it will take out some growth

it raises doubts, which is what art is suggesting. it also will continue the avoidance and the sheltering i mean, look, a lot of these big corporations are offshore for a reason we know that and have talked a lot about that but in terms of repatriation, if they're staring at a 35% tax rate, that's a whole different ball game. that's much higher than they expected, they will keep offshore if they can foreign firms that might want to come here because we have such a favorable tax climate, they're going to hold off for another year and see if it actually happens. but the tax avoidance issue is an issue back in the envelope, it could cost them $200 billion that's the weird ironic thing about that and in washington, they don't know how to model tax avoidance and tax sheltering, they just don't. there's two things they don't know how to do, international flows is not in their models and tax sheltering and avoidance not in their models. >> the other things we've heard, full elimination of s.a.l.t.

deductions. >> that's right. >> more brackets. >> that's right. >> no full repeal of the estate tax. >> that's right. >> so does this point to real problems reconciling, or no? >> you know, that's a great -- if i had a clear crystal ball. but look, there are bumps in the road remember, what you're going to get today in some way we used to call the chairman's mark i don't know if that's wholly. but then it has to get through the committee and come to the floor of the senate. the administration will not be happy with this. the president made it very clear that he wants it immediately the president is right in terms of growth and revenues and every darn thing possible. i will say this, though. i was -- republicans, senate, invited me to their breakfast on tuesday, i guess yeah they were determined to get it done now, it may not be the best and most optimal thing but the spirit is very high and very strong they are very kind to me the whole leadership was there,

among many others. i made the case that phase-ins are not a good idea, so sometimes i win a few and sometimes i don't. this is not over until it's over art made a great point in terms of the gop's situation, if you will, what they have to do is get a very good corporate tax cut through. you know, the rest of the package. hope that it does grow the economy. we're running at least for the moment around 3% plus. and that gives them a great economic narrative for 2018 midterms and you saw what happened tuesday night in virginia and so forth. so they need that. and the good news is they know that they get that. you know, very senior republican senator said to me we are going to get this done and we will reconcile it with the house. >> dow down 180, larry, just looking around -- i don't think you're helping the matter very much you've also got this report from the cbo and joint committee on taxation says the house version

adds $1.77 trillion to the deficit which means it wouldn't qualify for reconciliation what about the deficit hawks in the republican party >> oh, i don't know. that's not going -- >> they're just going to be cool with it? >> that's not going to be a big issue. jim langford has made some issues from oklahoma i've said it all along and still say it, they should have built in a dynamic 3% growth rate. they went from the cbo which is 1.9. they went to 2.6 that was part of the toomey from tennessee corker agreement i looked at it and looked at the numbers and they really, to get what they want, they should have built in 3%. which is what the administration -- steve mnuchin and everybody has been saying for a long time, what i've been saying for a long time, and they didn't so now they're like hus tinge and trying to put square pegs in round holes. >> mark cuban is saying he is

considering running for president. let's take a listen. >> and i think that people are looking for an independent voice, a real independent voice that at least as an inkling of what they're talking about >> let me tell you what maureen wrote. trump and cuban are testosterone twins in some ways both savor poking elites and flouting convention. >> wait, he owned a sports team for about six minutes. >> but the government has conspired against him. trump and the deep state cuban when he fended off trading charges by the s.e.c tell me do you think we have moved to a completely different place in politics in america businessmen, bob iger of disney as a possibility, have we moved to a different place the next elected candidates of all stripes not going to be

people who spent time in politics historically but maybe people like you? >> yes i think -- i tell you a quick story. i've known don, a lot of people have i even supported him briefly and then got to know him and i was talking -- i was talking to a friend in dallas, a red state, and i was explaining what i knew about him and why i was going -- not going to support him any longer and i said why would you vote for this man after all i've just said he said, mark, let me just tell you something. this guy is in his 50s that i've known forever. he said i've been voting for politicians my entire adult life and they have done nothing for me and i have not seen any results. you know the definition of insanity there you go and when you go around the country and you talk to people and you ask, you know, why did you go this way? why did you vote this way? people are tired of politicians and the things that politicians do and whether it's me, bob iger,

howard schultz or somebody else, i think there's a door that's wide open and i think somebody who doesn't have a deep affiliation with either party or with politicians has an even greater opportunity. >> it was reported that, quote, steve bannon had identified cuban has the number one threat for 2020 because he could appeal to republicans and independents. you met with steve bannon at some point. >> i've known steve bannon for 20 years and it was just to tell stories about donald >> and what happened >> nothing look, i'm somebody -- i met with michael cohen, his lawyer, this morning to talk to him about his book i met with 15 -- no, it ended up being eight democratic senators yesterday in d.c. to talk about health care to try to get a better understanding i talk to others about artificial intelligence and the impact on the workforce. i met with republicans i met with jeff flake yesterday.

so i'll talk to everybody. to me you can't absorb enough knowledge and you can't connect with people enough and so i don't want to just limit myself to one silo i don't want to be in a bubble i want to get feedback from everybody. >> so you say you're considering it what would put you in the ring or out of the ring >> the reason why i'm considering and haven't committed is because i've got three kids what caring, loving parent would put an 8, 11 and 14-year-old child through this >> what does your wife say >> she asked me if i want to stay married >> do you think that you'd be able to persuade her >> i don't know. but i think i have a year to find out i think -- you know, just look at what's happened in the past year there's plenty of time to find out. and so i don't have to rush.