already, 2018, and "squawk box" begins right now live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. dow futures indicated down by 41 points s&p futures off by 4 nasdaq off by 18 it comes after a strong week for the markets last week. you have some concerns circulating about what's going to happen with the trade talks from china talk of tariffs on an additional $200 billion goods being considered this week by the administration. we'll talk more about that in a moment again, red arrows today but nothing drastic just yet overnight in asia, japan's nikkei was closed with respect

for the aged holiday stocks were weaker in china. shanghai down by 1.1% and hang seng off by 1.3% in europe where there's already early trading taking place in markets there. things are weaker for the big three major averages the dax is down by .4 and the cac in france off by 1/3 and so is the ftse. italy stocks are higher and finally take a look at the treasury we're sitting just at 3%. >> want to get an update on the flooding and powder -- powder, power outages. jackie deangeles joins us and we have contessa brewer in latta, north carolina let's start with kalee dionne.

>> wow, florence is the wettest storm. if you look here at the radar at this point most of the moisture now starting to push forth some of the locations getting pounded by north carolina and flash flood watches stretch all the way up to the you are at the rivers here are the rivers at minor flooding or mild flooding or major flooding little river this morning as of 5:00 this had peaked over the record high of 32 feet it is now 32 and a half feet and it's going to continue to go up. a lot of these rivers, guys, are not going to crest nm toll or wednesday then they'll slowly start to go down several days of what could be some devastating flooding. >> thank you right now we'll get over to

jackie, deafc less good morning to you, jackie. >> the border patrol ahead of e me, the rain has not stopped since this made landfall on friday morning so the issue right now, of course, is the areas like i'm standing in where here by my feet we've got about a foot of water. behind me it goes as deep as four or potentially five feet and these areas keep moving because they're moving with the tide we are on the cape fear river which is expected to crest tomorrow at 62 feet. when that happens, the water rushes inland. the effect of this basically is it's created a situation where wilmington is locked in. it's isolated almost like it's its own island the governor of north carolina saying if you left wilmington,

do not go back to check on your home it is not time to do that yet. it is not really safe. there are sections where it's one of those situations where no one is coming in, no one is going out and they're waiting for water to subside right now because the rain has stopped doesn't mean that the worst is over here just yet. >> jackie, thank you very much in wilmington, north carolina. joining us more on the cleanup is mary kay wegner she's president of the service master group including service master restore which could be very helpful in this situation marry kit, where does it look like we stand? >> we activated our emergency response operations about one

week ago we have 30 service master restore businesses that actually live and work in the communities that have been impacted. but to support them and to support these communities that have been devastated by hurricane florence we mobilized 90 service master restore around the area that's been impacted. a few have gotten into the impacted cities and started work. >> what have they found so far there are a few places we've gone in. we think our value is in rebuilding communities and focusing on restoring the social infrastructure that are required for these communities to thrive. so our initial focus are on hospitals, assisted living cente

centers. those are essential organizations that a community needs to be able to drive. >> what have you seen in flooding situations like this in the past, places that you've responded to what does it take to get a community back up and running? and what can people in businesses in these areas reasonably expect? >> well, you know, an event such as hurricane florence is very overwhelming for home and business owners. so it pays to have a plan in advance knowing what you're going do our teams are working with many of our clients and many new clients now helping them as we go into their buildings, start to remove debris as well as their contents work on preserving their contents once the water has left their home, sometimes it takes pumping, then we start the process.

that's when reconstruction can start after the drying process. >> based on what we've seen with some of these rivers, are we talking a process that's going to take weeks, months? >> this will absolutely take a number of months to help these communities rebuild. we worked on the -- both the hurricane harvey and hurricane irma events that happened last year and the recovery effort for these communities will take months. >> mary kay, wantto thank you for your time this morning. >> thank you so much. >> from service master. we have some other news this morning. dow dupont announcing leadership plans for the plant split up into three different companies edward breen will become president of the specialty spinoff. then there's mark doyle, chief operating of dow specialty products division. he becomes the coo of that division then there's james collins he becomes the coo of the unit

to be known as cortev corteva agriscience. it had been previously announced. when the separation is complete it will be renamed as dow chemical jim fitterling will be president. >> cortiva. >> i have no idea. i have no idea i'm with you corteva. i don't know we may find out some day or maybe not. i think our lives will be fine either way. >> either way. right. >> trade again taking center stage as the white house prepares new tariffs on $200 billion in chinese goods eamon javers joins us. >> since we follow all of this, eamon, with the effect on global markets, it gets frustrating

24 hours later it's like, oh, maybe they're not coming do. we know the chances now are -- i have low level officials i went the vice president. >> it's a little bit unclear i can toll you that a senior administration official told me yesterday that as of yesterday the tariffs on $200 billion on chinese goods is a done deal and they expect an announcement today or tomorrow. so that apparently is coming getting a little bit more clarity there, but beyond that not clear exactly where we go from here. take a look at sort of the history of this. you can see this decision goes back to earlier in the year. $50 billion already in effect. and then they started the u.s.

trade office and started on september 6th. senior administration officials telling me that that decision was made as of yesterday so we'll wait and see when they roll out the formal announcement here of these new tariffs. the question is what happens next the president has already suggested that if the chinese retalley eight this round of $200 billion in tariffs, then the united states will put tariffs on $267 billion worth of chinese goods. that's pretty much all other goods. the u.s. feels the chinese will be out of bullets. they won't be able to respond. they don't import as much from the united states as the u.s. imports from china the u.s. can win a tariff tit-for-tat because there's more for the united states to put tariffs on but as of now we're expecting

that announcement. vice premiere. >> vice premiere eamon, 10%, 25%, what are you hearing? >> reporter: i can't get a clear answer on that i was asking yesterday, will be asking today wall street journal have been reporting a 150% figure as sort of a fall-back position for the administration and not go all the way to 25. we'll see if that is, in fact, what they roll out as joe was saying last week, will they, won't they. now we'll see when the inked is on the paper what it actually says. >> when you are talking to people do you think they're optimistic do you think they've changed where are we in terms of a siege mentality if i -- there are

people in the white house who feel tariff trade wars are easy to win for the united states and the united states has the advantage here and that you have to keep the pressure on the chinese, that they only respond to sort of blunt force pressure and they won't respond to, you know, polite requests and negotiating seminars and that sort of thing. that's one side of it. the other side is where you get a sense that people are concerned about the impact on markets, concerned about the impact on cost of goods in the united states. particularly in the run up to the election that that price increase could be felt by voters across the country that's something on the political side that has people worried as well. >> just a stupid question. when we talk about $200 billion of goods sold on an annual basis. >> yeah. what they're going to do is try to pull together a list and these lists are incredibly complicated of what the actual goods are. so you see these long alpha bed

call the trick in this is upping up with the list. the big question is what's the tariff rate on this? that goes straight to prices >> 200 billion, the 50 billion was finally culled and they figured they could do it by causing the least amount of damage $200 billion is probably clothing, shoes, iphones >> yeah. you see companies exactly how they're going to be impacted and what it means for prices ultimately the consumer needs to do it. where is the tipping point at which it becomes economical for

apple to start building their phones here? it might be higher than 10%. >> eamon the president is just tweeting it's amazing because he started it with your name. eamon, tariffs have put the u.s. in a very strong bargaining position. >> there we go. >> actually, he didn't have your name it sound the like he was directing this at you but maybe not. he says tariffs have put the u.s. in a very strong bargaining position with billions of jobs flowing into our country, yet the cost increases have thus far been almost unnoticeable countries will not make fair deals with you the they will be noticeable. when does it become noticeable in our gdp numbers and some numbers that we read >> that's amazing. i was outlining the two camps of thought within the administration you can see which camp the president is in right there from his tweet, right the president feels that this

generates revenue for the united states, that ultimately it is going to bring some jobs back to the united states and then finally that it puts the united states in the best possible position in terms of the negotiations with the chinese. that they have some leverage over them. then they say, we're at 10%. the question is will that bring the chinese to the table or is the chinese reaction to this to say, hey, wait a second, you are far too aggressive we're not going to talk to you. >> how many days to the election, eamon. you don't have the exact number. >> 50 or something like that. >> huh >> 50. >> never do math on live tv. >> i want you to have it ready every day from here on out. >> why don't we do our own -- >> i want eamon. he's our washington guy. now you no he what they're saying now, senate senate senate is at risk but who knows. >> yeah. what a difference that would

make for the trump administration. >> i don't know what that would mean. >> subpoena power in the hands of the democrats and all of the committees that would launch the investigations. >> i don't know what would happen -- would they repeal the tax reform act i don't know >> you'd have to have a majority >> because he'd veto it. >> what's the point? >> for impeachment or whatever people -- who knows. the democrats don't want to talk about it now because they won't have the senate. you still need 2/3, right? >> i don't think the tax rules will get -- would get overturned -- >> oh, impeachment oh yeah. >> eamon javers, you're thinking 50. >> i'm probably wrong. >> your name is getting popular again for babies >> oh, yeah. >> margaret brennan named her baby eamon. >> good name old irish. gaelick. >> thanks, eamon

>> see you in a little bit. into the meantime, when we come back, get ready for the trading week ahead the trading calendar and we'll do that after the break. as we head to the break. >> take a look at the biggest premarket winners and losers in the dow right now. ♪

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welcome back to "squawk box. elon musk wanted tesla to do collision repairs in house outside firms take weeks to months to repair driving tesla owners and us crazy. tesla collision repair operations completing within 24 hours. saming for same day soon then under an hour separately musk said that tesla has gone from production hell to

logistics delivery hell. a customer complained about a delivery hell. if that's the case, that's the problem. >> the problems are moving down the line >> yes yes. if pro dugs heel is the long way down. >> the pig working its way down to the snake. >> i can't get into the -- >> gotcha. >> my life is not complete they present the bear case for tesla? is this piece today? >> no, you're referring to the piece about the boring company there's a fascinating piece about the boring dp company -- >> less about tesla and the boring company -- if that's what you're raefrg to. >> i don't know. this seemed like it was about tesla. i can see how conflicting that

would be it's green renewable. i can't believe they're ever going to say anything negative. >> if you are not reading the paper, you can't comment. >> okay. >> i can't read the paper. i can't. >> you can >> the print version is right next to you. >> no, i literally can't stomach. i can't read the paper i could, but i'm saying i can't. >> oh, i'm able to. >> oh, i did already that's a pretty hollow victory this week's squawk planner, it is a light week for economic data august housing starts are out on wednesday. on thursday we'll get existing home sales and then on the d calendar and then on thursday we'll get reports from darden res strants. for more on the markets, joining us is jack calf ri

in the past, jack, i have this feeling you were kind of skeptical about the markets and about the economy. >> no, i think actually the economy is doing well. >> in hindsight i think it is but i don't think you thought tax reform was going to be a big bonus. >> it would be a nice -- >> not much, a little bit better than trend >> no, actually, i was wrong. >> all right >> i just remember -- the feeling that i have when i -- because i remember that we've sort of talked about that in the past. >> we have and i've been more positive i think of the market than i have been of the economy. >> how about now >> i think the economy is doing well >> hopefully we'll stop growing

fafs fast so you'll be right. >> i'd rather the market go up >> did you say hopefully the economy will start slowing >> you have always a tradeoff between a fast growing economy, exceptional low unemployment and when the fed is fast to overtop the breaks, since the dips that are being bought are more shallow that maybe that's a positive >> yeah. i think it speaks to the fact that you're seeing investors speak to the situation they separate the noise and earnings are doing well. earnings will likely continue to do well until we find the reason for costs to spiral higher whether that's due to trading

instead of borrowing our markets are continuing to appreciate there's always a tradeoff between sentiment and the earnings story underpinning that we're seeing reasonable expectations and they're being beat more often than not and the earnings story grows. >> as far as sentiment, still an unlying factor at the end of january stocks were trading 18 times earning. at the 16 multiple things are on the higher side of average and i think higher side of average is more likely than not going to give you average equity returns. mid high single digits is a pretty powerful story. if you can compound at that, you wind up in a much better place. >> great

thank you, jack. we'll leave it there did you find it, sorkin. >> i didn't realize -- >> or up to date today without a subscription. >> batting against tesla, skeptics make -- >> i don't need to know everything my only point was i can't believe "the new york times" would write this. >> why >> because it's such a socially responsible company. it's like trying to save the planet and everything. it seems like they're going against their -- i think they love tesla deep down they're highlighting some skeptics you do, right, until the flame thrower. >> there as a story here. >> the point is the paper writes about all siends of different issues right now there are lots of different people who have different views of tesla so it tries to reflect all of the different views. >> like with politics?

>> it does >> all right that i didn't realize because i don't have a subscription. maybe if i had a subscription i would realize this. sad news, mark olsen has died after a long illness. during his 50 year career he served as a community bank ceo president of the american bankers association and federal reserve governor we didn't really know that he was ill. he was a frequent "squawk box" guest and he was only 75 years old. that's sad news for us this is the first i'm hearing of it as well all right. when we come back today, we'll talk about the week ahead in washington and new math on the mid-term elects. contessa, what can you tell us about the hurricane? >> reporter: becky, large stretches of i-95 are closed in

south and north carolina and drivers are being urged to avoid north carolina altogher etin their north-south commute. coming up. what the real threat is now. that's ahead on "squawk box. 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. ♪ don't forget that the past can speak to the future. ♪ ♪ i'm going to be your substitute teacher. don't assume the substitute teacher has nothing to offer... same goes for a neighborhood. don't forget that friendships last longer than any broadway run. mr. president. (laughing) don't settle for your first draft. or your 10th draft. ♪ ♪ you get to create the room where it happens. ♪ ♪ just don't think you have to do it alone.

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back, everybody. among the stories front and center, president trump is writing a new round of tariffs on $200 billion of chinese goods ahead of scheduled trade talks with beijing the journal is reporting the tariffs will be set at 10% that's lower than earlier reports of a 25% tax

a senior administration official said the tariffs -- salesforce ceobenioff is buying "time magazine." the deal is unrelated to salesforce the couple won't be involved in day-to-day operations or editorial decisions. kind of like what you've seen with jeff bezos and amazon b benioff said the power is their story telling. meredith publishes better home and gardens and they bought time, inc. u.s. equities have been lower. dow futures down by 41 points.

nasdaq off 20 after a strong week last week for the markets. let's get an update on the damage caused by hurricane florence contessa brewer is in latta, south carolina, with an update you're in south carolina all right, contessa, good morning. >> reporter: good morning, joe we're at the halfway point here between new york and miami and right now we're under a flash flood warning and major stretches of interstate 95, already inundated with water. >> reporter: convoys of pow jer tractor-trailers through tiny historic towns lines lumbering down main streets. the economic powerhouse of south carolina, the port of charleston, is moving cargo once again. norfolk southern still has lines out in eastern north carolina due to washouts and downed trees. csx is rerouting trains around

flooded areas and at least for now amtrak has canceled all passenger trains south of washington, d.c. airports are putting pass with the exception of wilmington. rivers are still rising and could cripple commerce and commodities. >> the crops can't hold this amount of water for a long period of time. >> reporter: more than 12,000 farms in south carolina are assessing wind damage and watching for for preventing it >> is there anything you can do to prevent it at this point? >> un-huh. >> dams in north carolina are already breaching. rivers will run at flood stage later, joe, becky, andrew? >> thank you, contessa brewer.

amazing how many things there are we don't think about, things holding colace, things holding pig waste that if it overflows becomes a problem. you don't think of wind, flooding and then you have -- you don't think -- so there will be thaks things that we have to monitor. a couple of big stories this week that will dominate the headlines in politics. joining us is co-founder at axios. top of the e-mail this morning to you and top of the e-mail -- >> thank you be. >> -- is all about the debate over kavanaugh and what is going to happen. i'll ask you, what is going to happen >> there's no doubt there is queasiness from, said they want to hear from the accuser most likely there will be a delay in the vote in committee

on him the big thing to watch is lisa murkowski, susan collins in maine. these moderate republicans who people thought would have more concerns with kavanaugh. are they persuaded by this susan collins said, listened i'm sort of amazed the question is does she come back and say, listen, i have serious reservations and we are hearing from her what we're hearing from the white house, they want to force this listen, if you want to testify, come testify before the committee. do it in public. let's do it quickly and have the vote so the people heem people will know if it's derailing it >> and it can change based on what she says? >> i mean, it's less what she

says because we kind of -- if you read the washington post -- >> you know what she -- that's what i'm trying to understand. >> oh, it would change it would be like what -- does what she said -- does it change the mind of a susan collins or jeff flake somebody who is supportive of kavanaugh who could derile it and say, i have concerns and i want to hear from her, that's different from saying i have concerns and i want to hear from her. jeff flake is not running and is this a situation where if it continues to reverberate, is it a situation where they are pressured not to support it? how does this play out is time the element that is going to put additional pressure >> we don't really know.

you have to look at someone like susan collins. she's already under a lot of pressure democrats have dumped a lot of money into her state to pressure her to be antikavanaugh. does she look at this to say, this is enough for me to fundamentally change my mind some republicans look at november look at the polls, we're getting clobbered a among suburban women. if this makes it harder for us with suburban women and we end this election with fewer seats and we seem more like the party of white men including white men who sort of ram through this judicial nomination, this pick to the court despite this accusation from a woman. i don't flow if people would respond and say, therefore, i'm not going to vote for kavanaugh. the betting is that it would be app ugly bench. >> in the piece from axios in

high lighting the pressures. if she doesn't do that but appears on a media or a news show. >> it seems like her mind set has changed pretty rapidly a week ago she didn't want to talk about it at all. >> yeah, but there's a difference twheen and sitting in front of -- is there a notion that she doesn't want to sit in front of congress and maybe gives the interview, i don't know, to a journalist? >> there's certainly some republicans who think she's not going to want to you go and you sit before that committee, you go public you put your face on tv and have 10s, 20 million people watching you. your life is really ripped apart. you become known for this. that's a big step. >> that's why she said she didn't want to come forward. >> that seems very authentic,

that she didn't want to come forward. she brought it privately, confidentially and only she says now came forward because all of these other reporters are starting to dig around, people are starting to say things about her that she thought would shape her own lead. >> are these issues disqualifying? has the world changed in a me too post -- we used to have conversations a week ago about les moonves here >> there's no doubt the world has changed. >> but has washington changed. >> pardon? >> the business world has clearly changed. >> yes. >> the question is has washington changed >> i don't know. that's a really good question. i don't know that this is enough, that something that happened in high school -- >> but, jim, allegedly happened. you've got the other -- and in the interview she said it was four people -- she didn't say but the person talking said

they've denied all of these things. >> you have two people there that said it didn't happen it's a -- she says it did, he said it didn't. >> the other gentleman in the room says he doesn't recall. >> i thought he denied it. >> what i saw was he didn't recall that happening. >> jim, separate topic a number of big business executives over the weekend who have been supportive of republicans overtime le s sp wexner said i'm not going to support this nonsense, he may be the largest donor now to the republican party ahead of mid terms. does money talk? does this change the dynamic in terms of how the republicans or democrats think about any of

this >> i don't think it changes it in the short term. this is a huge issue you say what ben sass was saying in twitter and a couple of interviews where he's rethinking being a republican you've had a couple of donors saying i'm thinking of not being a republican anymore, not giving party. steve schmidt and others have left when you start to lose people on the edges, it can matter i think this identity crisis, at least for some republicans who held their nose, the wait and see approach who say i can't take it anymore, if enough of those decide to bolt the party, even if it's a couple of percent that makes a difference. >> i don't know -- just to put a fine point on that i don't know if the individuals are saying they will never support the party again. >> right. >> so much as they want to support a check on the current version of the party in the form of the mid terms and

specifically the white house. >> joe, you're right. >> i'm looking 5 p at it. >> where did you -- >> i saw an earlier version of it. >> there are some that say i want to check. others are saying i want to leave the party. even if you say if you get a check, if you have republicans who are giving money to republicans now giving it to democrats, that is problematic for the republican party republicans control everything and the fact that they're getting outraged by democrats, that's political malpractice this should be the best stinking thing that ever happened to the party is this election you look at the sen map in general. they should be way outraising the democrats. you look at the fact that the economy is booming the fact that we're having a debate about whether they can control the senate, they'll probably lose the house. the president has 40%. that's not good for the republican party given the hand they have been dealt.

>> jim, nice to see you. thanks. looking to sell to gain an edge the o of balfour holdings will join us at 8:00. stay tuned, you're watching "squawk box" on cnbc with autonomous vehicles. financial data, so now we can predict the future. our new flexible propeller design. by collaborating with public schools on a program called p-tech, ibm is helping students build the skills they'll need for tomorrow. revolutionizing. aerospace industry. it's an entirely sustainable approach. any questions? when you rethink education, everyone can put smart to work.

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well come back to "squawk box. amazon investigating suspected data leaks and bribes of its employees according to an article in "the wall street journal. amazon employees sold internal data and other confidential data used by independent merchants where payment of as little as $80 could buy internal sales metrics and the e-mail addresses of reviewers amazon is claiming it's going to investigate that. when we come back, florence continues to dump rain on the carolinas as hundreds of thousands are still without power. and at least one city was completely cut off by the flood waters we'll talk about the impact on insurers right after this break.

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welcome back, everybody. hurricane florence is hitting businesses and homes which is in turn affecting insurance companies. joining us now to talk about the destruction and the toll on the insurance industry is jay paul newsome. paul, thanks for being here this

morning. >> thank you >> so it's still early, but it's time to assess what this means and what kind of liabilities we're going to see how far would you rank what you expect to see in terms of damages here >> well, it's obviously a very serious event. but from an insurance company perspective, it's probably not that bad i've seen estimates of $3 billion to $5 billion in industrial losses. that would show up in companies' earnings reports in the quarter, but probably not enough to dig into capital in any meaningful way. so an event that will show up, but not one that has a really ginormous impact on the industry itself >> which insurers do you expect it will have the biggest impact on >> well, little bit depends how it turns out whether it's more flood than wind but the usual suspects, it's going to be an all state, state farm, ravelers, chubb.

all those companies with the biggest market share in those territories will tend to have significant losses it may also show up in the re-insurers. >> you say it depends where the damage originates. whether it's wind or flood you look at this from the commercial perspective versus the home perspective, right? >> that's right. flood is not covered by most home insurers. it's a separate coverage provided by the government and the more flooding you have, the more likely it is an event that is either covered by the individuals who just without snu insurance or by the government less by the insurance industry >> you think this is not a huge issue, but you say it matters what the end result is will these insurers end up raising their rates eventually because of this? >> probably a little bit you know, there's generally a pressure on coastal property rates.

for awhile last year was a very heavy year for catastrophe losses this sort of puts an exclamation point on that. so i think in general you'll still see pressure on coastal properties insurance rates for coastal properties and this just is another reminder that these kind of storms happen and they happen often. and, you know, when florence was looking like it was going to be a really big event, it was also a reminder that these could be potentially devastating. truly devastating events for the country. >> what do you think of the national flood program that's where a lot of this coverage picks up. how healthy is that program and what do you think needs to be done >> well, i'm sure it'shealthy from a claims paying perspective. it has essentially the backing of the u.s. government but there are issues with how it's underwritten, whether or not the flood planes are accurately put together. it's not purchased as much as we would like

it's perhaps maybe 20% of the folks actually purchase it so a lot of people go uncovered. so there are some issues here in terms of how well it functions to really protect people in these territories when the event happens. and that's -- you know, this is a system that's been around for a long time now. so i don't know if it's going to change but it definitely could be improved in a way that would, you know, encourage people to use it more. >> paul, thank you for your time today. >> my pleasure thank you. >> paul newsome from sandler o'neil coming up, two big hours on "squawk" ahead floodwaters rising in the carolinas as florence continues to dump rain on the region contessa brewer is there on the ground with an update on the impacted business. we'll talk to her next plus we're going to check in with the president of duke energy north carolina's hundreds of thousands still out of power we'll talk about that when "squawk" returns in just a moment

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downpours and deadly flooding rising waters and rescue efforts are under way in the carolinas the latest from the region is straight ahead president trump ratcheting up the trade war with china. more tariffs expected today. what it means for your money plus salesforce's cofounder marc benioff buys "time" magazine those plus corporate headlines coming up as the second hour of "squawk box" begins right now. live from the beating heart of business, new york, this is "squawk box.

good morning welcome back to "squawk box" right here on cnbc we're live at the nasdaq market site in times square take a look at equity futures at this hour. dow looks like it would open off about 30 points. nasdaq off about 18 points s&p off about four points. it may be this president trump likely to announce new tariffs on about $200 billion on chinese goods that could come as soon as today. that comes even as administration officials try to resolve and restart talks in this ongoing dispute christine lagarde says the global economic outlook has deteriorated she made her comments in london. she says there are signs that growth has peaked in some imf economies. also a proxy fight is set to escalate at campbell's soup.

the company has filed proxy materials. each are urging shareholders to vote for two different slates of board members. flooding and power outages caused by florence still a major problem in the carolinas jackie deangelis joins us from wilmington, north carolina contessa brewer is in south carolina but we begin with meteorologist kalee dionne >> record rainfall totals from across the carolinas and rivers are still rising it's still raining, trailing rain bands continue to dump heavy amounts of rainfall in the northern part of the state of north carolina and that's going to continue for most of the day today. the majority of moisture, though, starting to pull itself farther to the north which is good news. it's finally starting to move.

and it will continue to move up to the east, the north and east as we move forward so flash flooding, that's still going to be a concern. even though it's not in north and south carolina, it will continue into the mid-atlantic and to the northeast and even the new england states before it finally moves out as we go into the day on wednesday that's when we can finally say good-bye to florence but some top headlines as this continues to make its way to the north. 2 to 4 more inches throughout the day today. up to 6 possible in the next few days mid-atlantic states up to new england. i-95 and to the west, that's going to be the main area that's going to see this. coming up, we are going to be looking at some of the rainfall totals that are historic for this storm that beat several records across the carolinas >> thank you, kalee. want to get over to jackie deangelis. she's been in north carolina now for the past several days. jackie

>> reporter: good morning to you, joe as kalee mentions, the issue here in wilmington is the flooding flash floods like this popping up all over the place. the problem is you don't know exactly where they're going to be when one washes away or dries up, you find another one in the middle of the street that's because this area has gotten 24 inches of rain that surpassed the record for wilmington for the entire year that was this one storm. we are sitting on the cape fear river. this river expected to crest tomorrow morning, 62 feet. the concern is that these floods will just continue for the next couple of days and that possibly the dams could even break causing more damage. so what happens right now? well, the governor of north carolina saying no one's really coming in, no one's really coming out the danger is still too high over the next couple of days it is not raining now but it is still supposed to continue to rain some more

there is one silver lining here. that was with the power story in this hurricane a million people, 1.4 million people did lose power. but duke energy says power has been restored to a million people we did see it as we drove around we did see traffic lights working and some street lamps working although it's not consistent all through wilmington back to you. >> all right, jackie thanks joining us now, former fema deputy director rich serino. fema is base cl in a preparatory stage right now. a lot of the response at the moment is state and local as fema gets ready to move into action when the wind subsides and the rain starts letting up is that correct? >> that's correct. fema's been ready for the last week they've been preparing for this. they've been working with the states north carolina, south carolina, and virginia as they

continue also working with the emergency management assistance compact. they have been moving resources, communicating with federal agencies as well as other state agencies as well so they've been preparing for this for awhile. they sent a number of the urban search and rescue teams. so it's been a whole community effort so far. >> but a lot of this so far is state and local. now the next week and a half, you're going to see this really ramp up in terms of getting people -- first, i guess, is you're trying to save lives. then you're trying to get people where they can live in a dry environment. whether it's hotels, airbnb, whatever it is >> right it's a combination of things disaster isn't over for certain areas. there are evacuations still going on from the massive flooding that's going to continue and the river's going to crest towards the end of the week middle and end of the week and then we have to look at sheltering folks, sheltering

people for the short-term. then unfortunately some people for the long-term as well. that's where fema will be encouraging people to registering for help to get the help they need from the local agencies and nonprofits that will assist to help getting people the help they need. >> this is a much less populated area than houston, for example is there something good about that or something bad about that in terms of response >> it's a combination. less people in rural areas, but harder to get to but wilmington is a densely populated area couldn't even get to them, the roads were washed out for awhile it's a combination of rural areas and urban areas. they both have different challenges. >> in terms of, i guess you've also got to get all the utilities in there until the flooding subsides, you

can't even get the power turned back on. can you? >> right but in certain areas, they've been heard they get a large number of customers back on. but the areas that are under water, that cannot be turned on for awhile they have a lot of crews that have come in from around the country to support north carolina as well looking at getting the power back on but initially it's life safety, sheltering, making sure people are safe. at the same time be able to look and get the power back on in the areas you can get power back on. then you have to go through and clean out the houses and start the assessment process for people who have insurance and those who don't as well. >> we are talking about a storm that is continuing to move north. that's good news for the people there, but it does pose threats for where it's moving into the mountainous areas. i've heard concern of landslides if there's heavy rainfall that continues there. what does fema do in a situation like this where the storm is

continuing over the mainland >> inland, now it will be moving up through tennessee, kentucky, and then eventually into new england. and realizing that those -- all those states have been on the different calls, been preparing for if there needs to be flooding fema has been coordinated in bringing in department of defense resources as needed as well as bringing together the other federal departments such as health and human services for the health and medical but also bringing together the buzz community the national business emergency operation center the nboc has been activated to bring together businesses to get the businesses back up and running and see businesses helps businesses >> who was in charge when you were at fema >> craig fugate. we worked together for years. >> what do you think of the current fema management? >> i think the current fema management, brock is a tremendous emergency manager the career professionals at fema are great. they are people who are truly

dedicated, who want to help people, who are making a difference each and every day. so a combination of the, you know, you have brock then a lot of the career folks. the vast majority of people are all career folks who've worked there, some for decades. i learned many things from them over the years >> so they're always trying as hard as they can, i guess. it gets political. it's weird when you hear a lot of criticism you figure fema always is full out and with everyone's best interest in mind, rugt -- right >> they want to help people. they don't get into this type of work for the money, that's for sure usually people get into it because they want to help people they want to make a difference more often than not, they do the nature of the work that fema does in public safety is we see people on their worst days we have to be our best on america's worst days. >> right the federal government tells fema to do whatever is necessary. so it's -- you know, when there

are unfortunate things it feels there's not much of a response, these are catastrophes, after all. i figure people are always trying to do the right thing >> right people are always trying to help they always want to make a difference sometimes we look at neighbors helping neighbors. that makes a difference. then you have the first responders, the unsung heroes. the firefighters, paramedics, police officers that make a difference every day and in disasters, really save lives. then you have the private sector, the nonprofits, the whole community coming together that's when we see the best of america, the best of people coming out to help >> okay, rich. thank you. >> thank you. >> rich serino former administrator at fema. when we come back, the trade

war with china ratcheting up how will the market react? we'll find out right after the break. in the meantime, here are the futures which have been down but they are moderating their losses this morning dow futures down by about 25 points right now s&p futures off by three the nasdaq down by 16. stay tuned you are watching "squawk box" right here on cnbc

welcome back to "squawk box" this morning want to take a deeper look at the markets. joining us right now is head of merrill lynch and u.s. trust and krishna, chief investment officer and head of -- i don't know why they put it in -- i've known you so long, every time they put it into -- what's the word i'm looking for >> it's okay >> when they spell it out that way, it makes it harder. let me ask you this, keith china. this morning there seems to be new concerns about tariffs we've known this was coming. was there an expectation it wasn't coming? >> i don't know there's an expectation it wasn't coming, but i think the key is the markets have been powered really by the fundamentals. and the fundamentals certainly in the u.s. have been incredibly strong we just saw 25% second quarter earnings growth driven by strong top line growth. so i think people have been focused more on the immediate

fundamentals which have been incredibly powerful. but we'll see what happens if the trade tariffs are actually announced. >> the question is if they are, what happens >> well, it matters. number one, it'll definitely have some impact on china's growth that's important because that will influence emerging market growth and ultimately growth in europe and for us here in the united states, it will have an impact on inflation depending on how big the impact is, that could drive rates higher if rates go higher, the dollar goes higher and feeds into growth in the u.s. >> krishna, how do you handicap it >> i think it's likely they do something whether that's sustainable in the long run i think is debatable from an economic policy standpoint, tariffs are never good if the intent is to reduce trade deficit, reducing fiscal deficit is probably the best thing you can do because then you don't have to import savings which is what trade is.

having said that, i think keith is absolutely right. if this is taking place at a time when the economic growth in the u.s. is reasonably good, i think that cushions the market if it was a different situation, i think the impact would have been significantly worse but say whatever you want, at the end of the day, it is market negative >> how do you think the fed is going to think about the china piece of all this come this fall >> well, look. they'll look at the whole picture. >> you think that's going to factor in a big way? >> it'll factor in if, in fact, the fundamentals get impacted. meaning if inflation gets impacted and growth gets impacted then they'll also have a lens on the global aspects of that it will all feed in, i think, to their decision making. although we anticipate there will be further hikes. certainly one in september right now the odds in december >> overall you think the market is where at the end of the year? >> we're staying with a 3,000 price target for the s&p which

would be about 3%-plus up from current levels >> more or less aggressive >> i think that's probably the right range. we will find resolution to this in some form it'll just cause a lot of heart ache getting there i think it's more that than anything else. i think the underlying economic moment is strong enough for the fed to tighten at least two times. it impacts what they do in 2019. >> to the extent these tariffs take place on some of the other places you'd like to invest? they could actually be beneficiaries of this. >> they could. but at the end of the day, the tariffs in and of themselves are emerging market negative from a sentiment standpoint, a flow standpoint, from the dollar strength standpoint, it acts against emerging markets we would rather resolve this issue. >> krishna, there's a school of thought that, look, this is a

trade war that is going to hurt the chinese much more than us that they would, therefore, blink first. we have seen it play out in the markets more ferociously here, markets don't seem to care >> i think it's because the underlying growth in the u.s. is as turbo charged as it is because of tax cuts. that wasn't the case, i think we'd be debating the issue that you're raising for now, the chinese probably get impacted because the impact of it on their growth is going to be higher than what it is here from a long-term perspective, it's far more inflationary in the u.s. which brings the fed into the play and increases our risk meaninglfully. >> it would suggest that people would stop buying some of these goods. right? that's why it's bad for the chinese, because if the tariffs go up, we're not going to be buying the goods made there. >> it's about elasticity they'll buy the goods. perhaps not as much and therefore growth in china will slow down.

>> different question. is there any place outside the u.s. you'd put money right now that you think is going to be the like great upside of all this >> we still believe you want to be in the u.s. we're overweight the u.s we like large and small. we have an exposure -- >> by the way, in the u.s. large and small across the board what about tech? >> we still like tech. the sectors we favor include tech but outside the u.s., we're neutral on developed international right now. there's obvious problems in europe and emerging markets. we've been wrong on this, but slightly overweight at 1%. we think you could see a possible pop near the end of the year but we're keeping a close eye on em >> i think from a valuation standpoint, emerging markets are ridiculously cheap at this point. so if i had $2 to put to work and had a five-year perspective, i would be buying emerging markets -- >> emerging markets broadly or a

specific market? >> emerging markets in asia where the risk program has gone up >> okay. keith, krishna, thank you, guys. >> thank you. >> good to be here when we come back, tesla ceo elon musk keeping a promise he made during the shareholder meeting. we have details on what he said next and later, the sun rising in south carolina as folks start recovery efforts after hurricane florence we will get a live report from the region in just a few minutes. "squawk box" will be right back.

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fidelity. open an account today. jpmorgan ceo jamie diamond continued to walk back his comments about president trump he said he could beat trump in an election saying he's tougher and smarter. the president called him a nervous mess on twitter. here's what he said this week.

>> i shouldn't have said it. and more out of frustration, but i shouldn't have said it it also proves i wouldn't be a good politician. >> so you're done with politics? >> yes >> no running for president for you? >> no. >> ever? >> i'd never say never to anything, but no >> and dimon also gave president trump credit for economic growth >> you know, when president trump was elected, confidence skyrocketed. consumer, small business, large corporate. because pro-business, pro-competitive taxes, pro-regulatory reform that has helped the economy it'd be impossible for me to tease out how much, but it has helped the economy just like president obama stopped the economy from getting much worse but they also do policy that slowed down growth yeah, he should take some credit for that >> all right >> did you see, by the way --

did you read that article over the weekend? you know what i'm talking about? this piece where he basically says he doesn't care about what's happened to the economy since president trump. but that -- not that the -- basically that the means don't justify the ends that he doesn't care about the ends given the means of what's happening. it's interesting to see how people have -- they give him credit, but they don't, and it's back and forth. >> yjamie has all along given credit to the president and the administration on what's happening on the business front. i think what he said last week was kind of out of context to where he's been to this point. meantime, let's talk about tesla. elon musk wants tesla to do collision repairs in house he said tesla is bringing most collision repairs in house as outside firms take weeks to months for repairs driving tesla owners and us crazy. exciting to see some collision repairs are already completing within 24 hours aiminging for

same day soon and then under an hour the under an hour might take awhile that tweet in response to a customer complaint about delivery delay but does suggest that things on the production end are getting better but as we mentioned, there's a piece in "the new york times" today talking about various -- the reasons to short tesla and why shorts are betting against it we'll see who wins that game meantime, coming up, rivers continue to rise as hurricane florence moves on. contessa brewer is in south carolina with a preview of what's coming up contessa >> reporter: we're watching the utility trucks roll out here from the truck stop right where i-95 is shut down. and the major obstacle they're going to face when getting to where they need btotoe restore the power, the flooding. i have updates coming up right here on "squawk box. your muscles look good, but we should be seeing

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good morning welcome back to "squawk box" here on cnbc among the stories front and center at this hour, two notable earnings reports on tap later today. we'll hear from fedex and oracle they'll both report their quarterly numbers. european union officials have set an october 19th deadline for the disney and 21st century fox deal it has the option of opening a four-month investigation the u.s. justice department has already given its okay contingent on the sports networks one of this morning's biggest movers is teva pharmaceuticals. teva says its new migraine drug should be available in about two weeks. catastrophic flooding in north and south carolina making roads impassable and trapping

flood victims. contessa brewer joins us from latta, south carolina, with more >> reporter: hi there, joe right at exit 181 on i-95 here in south carolina, the interstate is closed down entirely what's happening is you have all of these disaster recovery resources -- military vehicles with generators, pickup trucks, power trucks this has been flooded out. they're telling people even the detour is flooded. that's likely to be the big obstacle for everybody trying to move these disaster recovery resources into place you know, you have these crane trucks coming in and the utility trucks over here that they know they're not going to be able to get on interstate 95 now how do they get around all these other flooded streets and highways and if the problem is bad here in south carolina, in north

carolina, it's much worse. there's a map that shows the road closures. in south carolina as the roads get -- as you get off the roads, the tractor-trailers are having to go through these tiny historic towns to get where they need to be here's the good news the airports are largely open up the coast today with the exceptions of wilmington, and jacksonville, north carolina trains amtrak has shut down train service south of washington, d.c. they use csx and norfolk southern lines that's problems because some of them are washed out. there was a derailment of a csx train carrying chemicals the port opened yesterday. major economic hub here in the southeast. and boeing started the third shift up last night. so 6,000 workers boeing had sent

him by tuesday of last week now coming back on the job charleston largely spared of any damage from florence the real story here is that border with south carolina and north carolina and then towards wilmington by the way, guys, these rivers are not expected to crest until late this week they'll be running at flood stage all week long. so this is going to be a problem. >> contessa, the stages where you see the cresting continue to come, i guess that also means that the problem areas shift and it's hard to keep track of where that's happening how do authorities try to deal with that? >> so the national weather service has a great resource that shows you the rivers and where they're crusting if you look at the map of north carolina, there are multiple rivers at major flooding stage right now. that's before they've crested 37 we're seeing sunshine come out and some blue skies, but they're

still forecasting the potential for thunderstorms in south carolina any rain that comes in now is just inundated already soaked areas of land. that's why these rivers become so dangerous people think it's safe to get back to their homes and it may not be by tuesday, wednesday, thursday of thus week. >> all right thank you. contessa brewer. meantime, let's talk about the response to the hundreds of thousands who have been left without power. joining us now is david fountain, duke energy north carolina's president and david, we've heard that there were maybe 1.4 million people without power in south carolina we heard you managed to get a million of them back with power. what's the most recent update you can give us? >> that's exactly right. in conjunction with this husk storm, we were anticipating widespread power outages we were well prepared for that we had an army of over 20,000

personnel. from florida, ohio, indiana, kentucky, and more from 25 states and canada. we were poised a e ed and readyo attack we were able to restore about 1.1 million customers so far about a third of our customers here in the carolinas lost power. we serve about 4 million homes and businesses and with 1.4 million customers have been been impacted, we're pleased with the restoration progress we've been able to make so far we've got a lot more work to do particularly in the hardest hit areas. the most heavily impacted counties in north carolina, we've had 35% of our customers lose power we've got people down there to continue to work to restore power, but it's going to take us a number of more days to do so because of the challenging

flooding conditions you referenced >> i read ahead of time there were many anticipating to be out of power was this better or worse what you anticipated given the wind being downgraded but then the rain being worse than expected >> well, this was consistent with our range where we thought we mightlose 1 million to 3 million customers as a result of the storm. the flooding has just been absolutely historic. we've had some areas getting over 30 inches in less than three days and more to come. we're currently under a tornado watch here and have flash flood warnings throughout the day. but we're continuing to make really good progress on a restoration effort because we know our customers are counting on us. >> in terms of the customers who have gotten back, that was quick

wo work is this a situation where it could take days or weeks just to get them back to power >> it's really going to depend on the conditions. our field crews are doing heroic work working underneath these constantly changing conditions floodwaters, high winds. so it's going to depend on how safe it is for them to continue to do their work in those hardest hit areas. we're still completing our damage assessment. we're using helicopters and unmanned aerial devices or drones to complete that damage assessment we haven't really been able to do that as completely yet because the storm has just lingered and lingered. we'll be able to complete that today, though, and that'll give us a better time of restoration for those areas. it could take a week or more for hardest hit areas. >> how would you compare florence to other situations you've lived through in the past is this the worst you've seen? >> i've lived in north carolina my entire life

i've seen a lot of bad storms, a lot of bad hurricanes. but this is absolutely the worst. the torrential flooding is something that is really heart breaking for me personally to see for particularly the eastern communities. just two years ago we had hurricane matthew. that was a hundred-year flood. i thought that would be the worst i saw in my life this surpasses that. but our team is continuing to work through the challenges presented every hour and i feel confident we're going to be able to get through this together >> david, our thoughts go out to you and your crews on the front line thank you for your time today. >> thank you >> andrew, you wrote a piece on all the pro growth policies not going to work because we're not looking at the full ramifications. then he went on to say much of his anxiety is from mr. trump's leadership style this is what you wrote the erratic tendencies and over-confidence in his own --

>> seth carmen wrote that. >> yes of 2017. so all these gdp numbers and consumer confidence and stock market highs all these things that happened your point is he still has the same feeling he transmitted to you about the leadership style >> that was a letter he sent to his investors. >> that's what i'm saying. but he has the psalm feeling now even after all of the positive things that happened so he felt this way in february of 2017. that's all i'm saying. this is not a new feeling for him. >> the interesting component is "a" it happened and "b," he -- >> you wrote this. >> i know what he thinks >> you know what he thought in february okay, so he's doubling down now. >> he's given more money to republicans than democrats by a large margin >> but he's been a big skeptic of trump all along >> yes

but it's very interesting what happens -- >> now it's the means to the ends >> if he starts giving money to basically every -- he's giving money to -- he doesn't even agree necessarily with democratic ideals. >> i got it. i got it i got it it seems -- >> probably going to be the largest donor to the democratic party ahead of this midterm. >> even though -- but he's saying now even though things have gone really well, he doesn't care because of the way it's happened. >> same thing with lex okay coming up when we return, president donald trump could announce new tariffs on around $200 billion worth of chinese imports. that could happen as soon as today. we'll talk about the latest tensions between the u.s. and china after the break. intooid later ceo of belfour is gog jn us with an update on how many boots are on the ground "squawk" returns in a moment

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the white house preparing another $200 billion in tariffs against china. >> those tariffs are aimed at beijing, but american businesses are warning that they could feel the pain too president trump just tweeted

this morning tariffs have put the u.s. in a very strong bargaining position with billions of dollars and jobs flowing into our country and yet cost increases have thus far been almost unnoticeable if countries will not make fair deals with the u.s., they will be tariffed. but u.s. companies say their costs are rising and eventually they'll have to pass that onto consumers. in a letter to consumers, sears said, quote, a remedy for china's unfair acts which harms u.s. retailers, consumers, and iconic brands is not much of a plan at all. the company says that shift could even have a national security implication meanwhile, which is headquartered in mike pence's home state, they said they can't get the parts they want from suppliers outside of china even if they could, a global production shift of that

magnitude would take 18 to 24 months to implement. let's also not forget that china promised to fight back with tariffs of its own the bulk of that is expected to push goods for all or equipment. both of those would weigh heavily on the manufacturing sector that president trump is trying to dechbfend the administration says the short-term pain will be worth the long-term gain it wants to end ip theft and subsidies. the businesses are not convinced this is going to work. >> okay. thank you for that meantime, for the latest trade tensions between the u.s. and china i want to welcome leland miller. he always has his pulse on where things stand this morning markets seem to be headed in the wrong direction. where do things stand? >> well, nothing really happened over the weekend nothing is really going to happen this week. >> what's the anxiety then >> there were an announcement of

tariffs which were set the past couple of months we knew that were they going between 5% and 10%. beyond that, this is about the trade talks and whether it throws off the trade talks that's based on implementation you have a question on when he will come around to implementing these. it's unlikely to happen in the next couple of weeks >> i think r you think an announcement could come on saying -- >> that's what we've been seeing >> that's why the market's not -- >> they don't like the signal, but they -- this is not them implementing tariffs the administration has some things planned, a surprise they'd like to push the implementation of the tariffs beyond september into october because of that. so then you have a question of -- >> what do you mean a prisurprie >> well, it rhymes with shmafta.

>> so if we could get nafta on board, then you can go ahead with the potential of threats and it gives a negotiating hand? >> if you're going have a victory tour on another trade issue which they're looking to do, then you want to push the china stuff off so it doesn't success the oxygen out of the air. you're looking at october. you're looking at the implementation of tariffs. now you have these trade talks if you have looming tariffs, then it will come. so maybe you punish the tariffs off further. this week was not that interesting after all. >> who has influence in this conversation the big wall street ceos, many of them were in china and beijing last week trying to talk to chinese officials about this. historically they've actually typically had the powers of persuasion on some of these issues both in china and in washington and it appears they might not have it in either right now.

i don't think it's unto them right now. i think the chinese would do a deal in a second if they got the opportunity. the question is whether trump thinks he wants and needs it right now it's entirely what's inside the president's head and whether you have a deal. i think the mistake markets are making is all these noise distracts from the possibility there could be a deal in the fall there may not be a deal, but none of this has changed the idea there could be a deal on the same terms and timeline we've been talking about the last couple of months. they don't realize a deal window is there if he wants it. >> because i know you studied all of it, is there any surprise company or industry that you think either gets hit or is a beneficiary we're not thinking about? >> i think people are going to watch apple for the simple fact that most of the ipod and the

ipad, they're produced -- it'll hit china, but it'll also hit u.s. and i think that's going to be this signal about how seriously -- that's the proxy for keeping an eye on consumers they say they're not watching it but you can't ignore the consumer that's why you're seeing10%. >> leland miller, china beige book international ceo good to see you. when we come back, some stocks to look at ahead of the open plus more on hurricane florence as it leaves a path of destruction and rising floodwaters. mean kym, ahead of the opening bell an wall street.

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let's take a look at some stock ths to watch this morning. american express is increasing merchant engagement and driving payment volumes higher and tronc is reportedly in talks of being acquired by mcclachy.

tronc has already been in transition talks with investment firm donarail group. do you know that one >> i don't know. >> what was that other one we had earlier? anyway, that offer is between $19 and $20 a share for tronc. fiat chrysler is looking at other potential buyers for its parts unit reports say the automaker got a bid from private equity firm kkr. but it considers that to be too low. a new report says that ai, artificial intelligence, and robotics will create almost 60 million more jobs. artificial intelligence and its impact on jobs has become a hot topic of debate. many experts have said -- ai

will also create new jobs and there's an analysis out from global audit firm wpc making similar predictions. it says ai and robotics could boost productivity and create better products and services >> before we do movies really good, dona, jail was started by will wide who was one of the activist informsers. the sci-fi thriller earned $24 million in its opening weekend. film encountered some controversy when it had to cut a scene featuring an actor that was a registered sex offender. "the nun" went to second place in its second place. following closely in third was "a simple favor" is $16.1 million for its opening weekend.

>> he was a horse. >> who was a horse >> donarail. >> the horse that ran? >> upset the big favorite of the kentucky derby in 1913 >> that's a good name for a company. a good reason to name it >> his win stands to this day as the biggest long shot victory in the history of the derby >> i like that name for an investment firm. >> guess what his odds were? 91-1 so a $2 bet paid off $184. b the russian arm of dominos pizza got more than they bargained for. they promised 100 free pizzas or life to any patron that tattooed their logo on a prominent body

part the chain has since had to halt the promotion after too many people started sending in photos of their tattoos the first 350 people to submit their proof will get pizza anyone after that will just v to live with their new body art -- >> you can't go back on that after you promised it. >> they said people in the process now of getting them will live up to -- >> but they stopped it at noon the day it started. >> they said it would have been a million people if they let it go moral of the story, people in russia really like free food >> i don't know if that's just a russian thing. you might have the same thing break out anywhere >> millions. plural >> a lot of people are willing to desecrate their flesh uj the logo is fun new if i could find a place that isn't that obvious -- >> how do they know it's not just magic marker? >> you'd have to prove it.

but it's not a bad idea. you're looking at a live shot of the white house where the president could announce new tariffs today for china. what it could mean for the markets straight ahead plus catastrophic flooding in the carolinas. the ceo of belfor is going to join us with the latest there. then the coo of paypal bill ready is our guest "squawk box" returns in a moment

hurricane florence and the aftermath. the storm continuing to dump rain on the carolinas causing destruction and slowing commerce a live report from the ground straight ahead trade war. president trump preparing to announce tariffs on $200 billion worth of chinese goods plus blame game. elon musk wants tesla to do collision repairs in house saying outside shops are taking too long final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box. >> good morning. welcome back to "squawk box"

here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick and andrew ross sorkin the futures have been in the red all day long dow jones down 20. s&p down 2.5 treasury yields just under 3% on the 10-year at the start of the session. now they're over 3.01% now. we've got the three handle tropical depression florence is still drenching the carolinas this morning the storm wreaking havoc since arriving on friday. dumping foots, inches and inches of rain. the storm is now responsible for the death of at least 16 people. what was the highest we saw? 40 inches? >> i didn't see that, but i don't know if i was looking comprehensively. but lots and lots of rain. >> and more to come.

before we get to another update on this, let's get to other top stories we're following this morning the trump administration is expected to announce new tariffs on $200 billion worth of chinese goods. this comes ahead of scheduled trade talks between washington and beijing. "the wall street journal" reports that the tariffs will be set at 10% that's lower than the original 25% that was floated by some and news out of europe, london mayor sadiq khan is backing for a second referendum. >> unfortunately we're at the area where the government is embarking on situations that could lead to two things either a bad deal and that includes the possibility of us leaving the eu without knowing the future relationship with the european union or no deal and both those options would be deeply damaging to the country what i'm saying is the british public should have a say on the outcome of those negotiations including the option of staying in the eu.

>> the mayor's stance is expected to put more pressure on jeremy corbyn to support calls for a second vote when the opposition party gathers later this month but theresa may says she will not back off her brexit plan ahead of talks this week christine lagarde argues a disorderly brexit could have what she calls dire consequences speaking in london today. >> on the horizon of not become lighter but darker >> lagarde sites rising trade tensions in other global news, saudi arabia's sovereign wealth fund assigning a loan with global banks. this is the first time public investment fund has borrowed money. the capital raise comes as saudi arabia wants s ts to diversifyd invest in new industries

what does it say in the stall thd, postponed voice -- >> saying you're not going to get that, so you've got to diversify somewhere else >> this is a way to do it. meantime, saudi investors will take note of this authorities seeking the death penalty for three clerics. they are among the most popular sunni officials. they were arrested last year for not openly supporting the government's -- including conspireing against the monarchy and supporting terrorism some stocks to watch this morning. dow dupont ceo ed breen will become the chairman. that unit will take the dupont name that had been previously announced that the current dow dupont executive fitterling will

become part of chemical. will take over when other two companies to be known as dupont and cortiva are separate shares of twitter under this morning as moffett nathanson cut it and bed bath and beyond was upgraded the firm says that sales reports should re -- the analysts says the company is likely sustainable well into 2019 and teva's drug avigve should be available in about two weeks after being approved by the fda.

campbell soup with a proxy campbell's board and management have failed to -- >> now let's get back to hurricane florence right now it's time for an update on the flooding and power outages caused by this storm jackie deangelis joins us once again. we hear reports that wilmington has been entirely cut off by the flood on all sides >> reporter: that's exactly right, becky that's the problem here. usually once the storm passes, the trees are down, the power lines are down you have a sense of relief in some sense when the sun comes up because you think it's over. but the people in wilmington are concerned at this point because these flash floods are presenting a severe problem over the skoucourse of the next coupf days there was a massive accumulation of rain from this storm. 24 inches of rain. that was more than wilmington

has seen -- its record for the year what ends up happening is that rain combined with the cape fear river accumulations, you get flash floods all over town and we've observe d multiple times, sometimes it goes away and then appears somewhere else. the problem with the cape fear river is tomorrow morning is it could crest to 62 feet the worry there is it could burst right through the dam and cause more damage. even though it seems calm now, it's not raining the rain is supposed to continue throughout the day and the forecast says it could even rain potentially more tomorrow so right now wilmington as you said, it's cut off it's basically its own island. that really is going to be a problem for the next couple of days the residents that we spoke to here are concerned about it. the people who came here to seek

shelter are concerned. >> we have to keep that in mind. joining us now sheldon yellen, ceo of disaster recovery company belfor holdings. welcome. >> thank you for having me >> largest disaster recovery company around this is as bad as you've seen in terms of water damage? >> as you've been reporting, this event and a lot of people see it as the hurricane comes, there's damage, and then the next day they would expect recovery efforts to just unfold and have no obstacles in the way. but in this event, the rain that has fallen and the rivers, the inland rivers that have crested and continue to flood these communities and as you just reported like in wilmington

which is really shut off to the rest of the state, we encourage people to allow the first responders to do their jobs. allow the utility companies and administrative things to unfold. because life safety is a serious concern. we presently had 1200 people stationed in rocky mount, dispatched around the area we're working on some hospitals. we're working on some municipalities trying to restore and get these facilities back up and running. but again, the most important thing you've been seeing is people have to have patience this sp a serious problem. you can't just force your way back in to see your property you've got to show your patience let that guide you >> and at this point, while we're talking right now, there are people that are trapped in

areas that are still at a point where no first responders have been able to get there >> yes, that is true and you are finding and we are seeing and have heard heroic stories about everyday people. utility workers, the first responders of course, belfor personnel that have actually gone in o to rescue people it's an extremely dangerous situation. and people just have to be patient. you have to wait for help to get there. and i think the best advice we could give to the rest of the population is don't try and force your way into these areas. obviously the first responders have roads cut off, signage, not allowing you through and please heed these calls and let the authorities do their work so it's safe for people to re-ent re-enter >> there's still some danger of

waste areas or whether it's animal waste do you have any efforts on -- >> the authorities are working on all of these issues concurrently our people are trained we're in protective gear the waters are not safe and clean water. utilities have, you know, need the repair that will be performed. and you have to be conscious that what you're walking into if you're in half a foot, three feet of water is not clean water. these communities are going to need a little time to get things cleaned up you have to be patient there's so -- let them get away

with that. >> you have a feeling whether -- is this going to be similar to harvey or is it worse because the population is not as dense as houston, it won't be as bad? do you have a feel for that? >> just earlier i was talking to somebody it's similar to what happened in houston. the rains that took place after the hurricane left houston were more devastating than the wind themselves and we're finding the same things here. these rivers cresting and the continual rain that's falling is creating more and more problems. the population is getting anxious because, again, the psyche is that we should be able to go back and see our homes is it safe or not. it's a similar situation to houston. the best things we saw in houston are the same things we're asking for here. people, please just be patient

let three, four more days pass as tough as, you have to -- the utility crews are work iing. let your lives begin to find that semblance of order again. >> great sheldon yellen, thank you. >> thank you >> appreciate it this morning. ceo of belfor which is the world's largest property restoration company. in other weather-related news, a fierce and deadly typhoon roaring ashore in hong kong millions of people were evacuated in southeast china ahead of that storm. the typhoon also left at in the

philippines. coming up, tesla wants to do collision we pairs in house. plus, another billionaire is getting into the business. they bought "time" magazine. stay tuned you're watching "squawk box" on cnbc

welcome back, everybody. we've been watching the stock market futures this morning. they've been negative, but they have been easing those losses. s&p futures off by two and the nasdaq down by 20. let's also look at oil prices. wti was up by about $1.24 last week those gains are continuing this morning with wti up another 43 cents to $69.43 a barrel elon musk wants tesla to do collision repairs in house he says they could be fixed within an hour or one day. he is blaming external collision shops taking too long to fix in

them he said companies moving out of production hell now getting into logistics hell of sorts. meantime, speaking of elon musk, space fans taking notice of his latest tweets sending out two consent photos of spacex's prototypes he also tweeted #occupymars. he's talked about wanting to get to mars for a long time. spacex's next generation falcon rocket and launch of passengers, the event set for 9:00 p.m. tonight eastern time 6:00 p.m. pacific. meredith corporation is selling "time" magazine to salesforce cofounder marc benioff and his wife lynn for $190 million the benioffs are buying "time" as individuals and the deal is unrelated to salesforce. the couple says they won't be

involved in day-to-day operations or editorial decisions. in a tweet, marc benioff says the power of "time" has always been in its unique story telling of the people and issues that affect us all. we have deep respect for their organization and are honored to be stewards of this brand. >> this came in a way -- a lot of people compared it to jeff bezos and the wn"the washington and others but now anxiety at another magazine many of our viewers read "fortune." you used to write for it it'll be interesting to see who picks off "fortune." and the price tag for "time" is much higher than people thought. >> double? >> this was a real in you remember >> there were four publications from "time" that were up for sale >> you still have sports illustrated, "fortune.

yeah it would be interesting to see if anybody takes that. >> at the very peak, was it worth? they followed them a long way. >> just with that entity >> i think there were periods at which people would have easily have paid a billion dollars. >> that was a long time ago. >> that's what i mean. before everything was like this -- >> you remember when news week fell off a cliff miller bought it with brown. >> going way back. >> bruce springsteen was on the same -- the same cover of "time" and news week. >> was that born to run days >> i was in like eighth grade. honest to god. anyway amazon is investigating suspected data leaks and bribes of its employees that's according to "the wall street journal."

report says that amazon employees sold internal data and other confidential information used by independent merchants. the practice is pronounced in china where payments are as little as $80 -- and confirms it's investigating claims. in other news out of the technology world we, the creatof google's self-driving car work is looking into something else boring office functions. looking to automate sales chats. he says it is to train ai to do boring repetitive tasks so in his words, we can free humanity and reach new heights. imagine that if every business meeting was just now taeattendeb the ai bots. >> the one they're working on is for retail people. language to use which is more successful than the language you

might be using yourself. >> can i sign up for it for my next conference call >> this is more for people trying to set you a product. this is if you were a salesperson trying to sell. >> good luck with that as soon as i figure out you're a bot, i'm hanging up on you. >> no, no. what it's doing is -- my understanding is it's not speaking just yet. it's been listening to calls for a very long time in different sectors. now it's giving you prompts. so if you're the salesperson on the phone making cold calls -- >> as soon as i figure out you're not a body -- if you're a body i might hang up on you anyways. if you're not, yeah. click. it's going to have to get really good >> got some interesting -- okay. >> but i do want it for my conference calls. >> all right it was october 27th, 1975. >> springsteen was on the cover then that was way before born to run. >> it was right during the breakthrou breakthrough success of born to

run. and according to a biography, it wasn't a coincidence apparently the editor of "time" found out that maureen orth of news week, she was doing a piece about springsteen. they convinced the editor they were about to be one upped by their chief competitor so they both went with it. >> wow >> here's the picture. so i wasn't quite in high school i was kind of -- i kind of might have been out of high school i was in nursery school. pre-nursery. a glint in my mother's eyes in '75. coming up, apple is out with an ios update today. but should you download it or will something bad happen like it usually does that's next. but before we head to break, check out the shares this morning. 22ey're off a little bit

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welcome back to "squawk box. futures now down around 30 on the dow. down three on the s&p. the nasdaq is indicated down about 24 points or so. 10-year above 3% it's been awhile, but it's back there now. when we come back, trade war. president trump preparing to announce tariffs on $200 billion e ob mkerehinese goods thglalart action is straight ahead stay tuned you are watching "squawk box" right here on cnbc it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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good morning, everybody. welcome back to "squawk box" on cnbc we are live from the nasdaq market site in times square. among the stories front and center this morning, the chief executive officer of tyson foods is leaving the producer. tom hayes will be stepping down on september 30th after two years on the job the company says he's leaving for personal reasons he will be replaced by long-time company executive noel white today's earnings calendar is

thin, but we will be getting two high profile reports just today after the closing bell oracle ernings are expected to be up by about 11% from a year ago. analysts looking for a better than 50% surge in fedex profits. one of unilever's -- according to the financial times. unilever plans to exit the uk. aviva investors said the move does not create value for shareholders and that the food company's resulting removal from the index will create selling pressure apple set to release ios 12 today. you can track how long you've been on the device facetime will also let you chat with 32 people at once think of it as a giant conference call of sorts there's some new siri shortcuts as well. do not disturb during bedtime

feature. and third party apps for car play we've talked about it before people always wonder, do you want to download it the day of or wait a couple day usually in 24 hours you will know one way or the other whether there are any quirks in the system you should know this particular version has been in development for quite some time. there are i imagine now tens of thousands who are using it one note this ios 12 especially for people with older phones makes them much faster than they used to be. usually it's the opposite. >> i can wait a week to find out. let somebody else be the guinea pig. >> that's one way to do it we'll see. >> so my phone doesn't charge as well as it used to. >> it can't fix your battery >> i know. but i looked at it that is happening. there's a place you can find on your phone that will describe how your battery's doing

90%. it gets to 90% it gets to 100%, but it's only 90% of what it used to get >> okay. >> all right and this just in an 11-year-old girl has set a hugging record a world record in washington, d.c. grace roberts hugged 133 people in 55 seconds. that's averaging more than two per second the most in a minute she was inspired by her brother noah who was fighting cancer she set that as part of a week-long cure fest on the national mall. two per second there it is. that's happening wow. i didn't know that -- so there's world records for just about everything is this actually guinness? must be if it's a true world record way to go, grace meantime, 31 million people are in a flash flood watch today

because of the remains of hurricane florence how will the storm affect the national economy steve liesman joins us now he's got some early reads on the storm's costs. this is a tough one to pin down. >> it's still early. the cost will be in the tens of billions of dollars. not because a major stit wcity s hit. rivers have yet to crest in the carolinas. that means more damage to come it also means there are few estimates of the cost yet. it's just the 17th largest population compared to harvey that hit houston. the weather effects are so widespread, jpmorgan says think of this in terms of the gdp of both north and south carolina together and that's bigger than houston but smaller than new york which of course was hit by sandy that said, the typical effects of these storms cause deep pain in the regional economies but have little effect on the -- some are made up over time

through rebuilding and recoup spending but not all. take a look here here's an example of auto sales after harvey it ruined hundreds of thousands of cars. but car sales shot up in the wake of the storm and trailed off over time. this did hit during the reference week for the september jobs report. over many, many months and quarters the broader u.s. economy usually shows small impacts. >> we had an analyst on earlier who covers a lot of the insurance companies. both those that offer commercial insurance and housing insurance -- home insurance. his point was that because much of the damage is likely to be more from flooding than from winds, that lets a lot of the home insurers off the hook >> it goes to the national -- i'm interested in this just to stir the pot a little bit from a global warming perspective and we don't have to debate is

it real or not the insurance companies will tell us. one of the effects of this will be if there are more storms, you'll have higher rates but here's the thing from a meteorological standpoint. let's say global warming makes the storms bigger. what makes them stall? and that has almost nothing to do -- this is really what happened with this storm there was a big weather system -- there was no weather system for it to leave some effects same thing happened with harvey. it stalled what i don't know is how the insurance companies not this time around but over time, how they factor that into their actuarial tables >> to this point every time we've asked buffett, he said they have not seen a huge increase in that >> i thought there were no

categories 2 that hit since 2005 >> we had sandy, katrina, and these other storms what i do know is the insurance companies are studying this carefully. i see this all the time. >> right. >> they want to know if these storms not only are more powerful but i can't imagine it connecting to global warming is the idea that they stall and that's really the big deal >> because there's plenty of places tying it to global warming already. i've seen it on twitter. >> the idea -- there's a lot of people that have written about the size and strength of the storms >> everything is -- >> slow movement, i don't see that is. >> i don't either. but the links say could be there isn't any actual -- and anecdotes and feelings and must be feelings and things like that >> there have been more storms that have stalled out. >> i don't know if that's true either over -- >> certainly it's a big deal in florence and in harvey they came and they did not

leave. that's how you get these terrible flood damage. >> we know the 19th century, 18th century, 17th century, you don't know any of -- and there's such a small time frame. >> it's worth looking at whether or not they have stalled more. >> fair to say insurance companies are kpachecking it ou. >> buffett has sort of -- he didn't laugh, but he sort of did say after 2005 when we went through the entire alphabet that premiums went up and that was a good time. because for the next 11 years -- >> didn't pay out. >> good time to be in insurance. the next 11 years, reverted back to the mean. and it wasn't like 2005. i mean, that year you remember we were told by someone like al gore that every year was going to be like 2005 and it wasn't. 2006 through '16 were all way below mean >> when this storm was approaching, the weather geek who is i follow on twitter were

clear there was this anomaly there was no weather movement over the eastern united states and is that is -- i don't know how you plan for that on an insurance basis. >> somebody last week said it was el nino. i don't know if that's true or not and i didn't dig deeply enough >> ask the weather guys about that it has big economic effects. all right. let's get back to the aftermath of hurricane florence. joining us now is chairman, ceo of american electric power thank you for being here today >> thank you, becky. >> i realize this isn't landing in your yard right now, but obviously you have a lot of experience you know what huge storms like this could mean. i wonder if you could walk us through what's happening right now from your perspective. >> yeah. so at this point, the industry has 40,000 people there. we had to hold ours back because there was a tropical storm potentially developing in the gulf of mexico it's now moving -- florence is now moving toward our territory

in virginia, west virginia, kentucky, tennessee. but less rain amounts. lower wind is projected. right now the industry is really focused on making sure we can do assessments, getting in and doing recovery at this point in time, there's about 100 analogies. it is the ability to get in, do assessments. but now you're moving into the flooding situation i know you mentioned earlier it's been compared with hurricane harvey in many respects because it did just park on top of south carolina and north carolina that really drives a different thought process. you really have to think about the flooding and the ability to get in and even do these types of assessments and be able to recover. so the next 600,000 will be harder, but we'll continue to make progress. >> what lessons were learned from hurricane harvey? and what's being deployed now?

>> i think so there's a lot since superstorm sandy we have regional response networks throughout the country. but after superstorm sandy, we collapsed those regional response networks to make sure we knew where the resources were across the country and into canada now we're able to deploy those resources quickly. we also kept track of not only our own employees but contractors so we can move it together quickly also there's a coordinating council that's been put together with the government. we work with d.o.e., homeland security, fema there's been a lot of security around the exchange of information and ensuring we're prepared when these storms come through. in this case it was mapping what flooding could look like, mapping transportation channels to ensure we're able to move fuel and other types of resources when we needed them. that's really a big plus that's occurred over the last few

years. after hurricane harvey, it was really one of those that set on top, so we learned from the flooding conditions particularly when you moved over from corpus christi and on into houston. you have to evaluate these hurricanes differently based upon how they're going to be able to focus on a particular area >> can you just say, is this worse than harvey? is it worse than katrina or sandy? how do you put it in context of the other big storms >> i'd say it's on par with harvey but harvey obviously hit a less populated area initially and it went down the coast. you saw the flooding actually, it was an event where it tore up things going into kor put -- when you moved on, it became more of a rain and flooding event

this one was primarily a wind and rain and flooding event. i think it's probably more extensive from a rain event and flooding in this particular area so it's going to be -- it's going to take time i mean, these customers -- some customers will be out for weeks in this kind of activity because not only is the infrastructure torn up, but also you have to be able to wait for the water to recede to get the electric supply back. >> nick, i want to thank you for your time today. >> thank you >> nick akins. when we return, paypal announcing a new product today the ceo is going to join us with the details. we'll tell you all about it when "squawk" returns really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies.

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welcome back to "squawk box. paypal working on commerce tools for businesses of all sizes. most recently announcing a product that gives small businesses instant access to their funds. this morning announcing another product launch joining us now is bill ready we welcome him to the show explain the new product. >> good morning. today we're announcing the global rollout of the new paypal checkout that has smart payment button technology embedded in it what that's really doing is making sure businesses of all sizes around the world are able to easily connect with consumers no matter how they want to pay which is quite a meaningful thing given that around the world there are different local

payment methods. digital wallets are increasingly important to consumers we're making it such that merchants can access all the ways the consumer would want to pay or the best ways the consumers would want to pay with just a few lines of code so they can really make sure they're getting the best digital commerce capabilities. >> is this like anything what stripe is? is that the biggest competitor for this element of the product? >> paypal's really quite different than anything else in the market on the consumer and merchant side of the payment ecosystem. we're able to bring 250 million-plus users to the equation that's one of the things that this new product includes is our paypal marketing solutions which opens up the ability for a merchant to connect with consumers. because we operate as a consumer product as well as a merchant product, we're able to help those merchants gain insights into consumers in an aggregated way.

but they can connect more with the consumers so they offer not only the most relevant payment but they are better equipped to turn those shoppers into buyers. you really can't do that unless you operate on both the consumer and merchant side of the system. >> who's coming up so far? >> we're seeing this from small businesses all the way to the smallest retailers in the world. this is really running across the spectrum again, because it's giving access not only the best of our capabilities, but also locally relevant payment methods around the world and access to our 250 million-plus users so we're seeing great response from merchants from all sizes. >> so this button is it hooked to everything related? how's it work? >> with a few simple lines of code, a merchant is able to offer all of those and importantly, we dynamically

render whatever is relevant to the consumer whether that's a paypal payment method or another that is relevant to that user. that's the big piece of complexity we're solving for the merchant understanding how people want to pay in markets around the world. it's going to be a hard thing to solve and you can't have 50 different buttons on your checkout it's just going to confuse people and drive conversion down we're able to solve that for the merchant based on our knowledge of hundreds of millions of consumers, what's the most relevant way a consumer wants to pay. really solving that complexity for the merchant >> hey, bill how to think about paypal these days because some people put it in a particular bucket. when you sit around on a monday morning and maybe with a white board talk about your competitors today, who would they be and how do you think about them >> that's a really interesting thing about us is that we are quite unique if we're the only

player that operates on both the consumer and merchant side of the payments ecosystem and is able to connect it end to end and do it at scale around the globe. that makes us really unique. one hand you can say there are many people who do some aspect of what we do. demonstrated tha partner with the ecosystem that we have done over the last partnership over the last couple of years with major card networks and mayjor banks and with the largest platforms out there. we can be a great partner to the entire system because we are uniquely able to connect buyers and sellers into new commerce and experiences. that's something that a wide range of players want to be able to do. we demonstrate that we can partner across the system. >> we were talking about ios 12 today. what do you think of apple pay has apple pay have the success

that you would have imagined >> well, i can't comment on others paypal continues to gain tremendously our last quarterly result was 27% growth rate which was much higher we are gaining market share at a rapid rate at a large denominator. what you are seeing is the rise of the digital wallet as the preferred way for consumers to pay. we are powering not only paypal and venmo but we are the largest devices as well. apple pay and google pay, we are the largest providers of those methods as well. if you were to pay with those. >> thank you, we got to go bitcoin, love it or hate it? >> i think there is a lot of opportunity in the technology but i think it is still early

days >> thank you, appreciate it. when we return, jim cramer will join us live from the new york stock exchange. stay tuned, you are watching "squawk box" on cnbc barbec our i'm just sick about it. aflac!? different kind of sick. if i can't work after surgery, how am i gonna pay my rent? all these bills? aflac! oh, aflac! and they pay you cash in just one day. see how aflac helps cover everyday expenses at aflac.com. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors.

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. let's get down to the new york stock exchange. jim cramer is joining us now let me see last week we were talking to china maybe we are talking to him but it is not going well it is going to be this way for a while. the moves are not huge, jim. >> no, they're not i think people start recognizing it and the $200 billion, the important is the 10% one there is a lot of confusion there. i think the president's tweet of how strong the economy is makes people feel better the big buying has been domestic there is been a huge number of international stocks of exports to china that were up last week. so i just think people don't think it is that boiig of a deal not 10% or 200%. >> we had discussion about the president had of none of the

pricing increases and it has been unnoticeable. steve was talking about lumber prices and wholesale levels and appliance prices that are unnoticeable when i read it, yeah, i have not noticed a lot. once again you don't necessarily have to take it literally but take the sentiment seriously have you notice in a big way yet, jim >> well, i don't see they collapse but they're going down very big and steel prices peaky. i got camping world on tonight yeah, it is not impactful and the economy is too strong. >> not impactful >> not yet >> maybe noticeable was not the right word >> china market is down to november 2014. the china stock market is repealing all of its gains and

looks pretty much like 2000s and u.s. and nasdaq. >> thank you, jim, we'll see you n'mi bky minutes dot ssec's conversation with larry kudlow live on the halftime report, sreports, stay, we'll be right back. manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.

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welcome back, a final check on the market. there had been some modest declines and that continues right now. dow futures down by 21 points. watch the treasury today, we have seen the 10-year pushed above 3.01%. >> "squawk on the street" is next ♪ >> good monday morning, welcome to "squawk on the street," i am carl quintanilla with david faber and jim cramer >> a potential white house move to go with tariffs mixed action in europe 10-yr at 301 th