year details straight ahead on this tuesday, september 25, 2018, "squawk box" begins apparently right now. ♪ live from new york where business never sleeps, this is "squawk box. >> all right good morning, everybody. welcome to "squawk box" 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. let's look at u.s. equity futures. yesterday we saw a rare pull dak f pull back for the markets. this morning green arrows across the board once again dow futures indicated up by 52

points s&p up by 4. nasdaq up by 8 points. then let's look at what happened overnight in asia. you should have a couple major markets closed on monday the nikkei came out and ended up by a third of a percentage point. you did see the hang seng down 1.6% the shanghai off by a half percent. looking at what's happening in the early trading in europe, you will see green arrows across the board. major averages, like the ftse up by a quarter percent so is the dax in germany check out treasury yields which have been steadily moving higher looks like this morning the ten-year is yielding above 3.1%. >> our top corporate story, instagram's cofounders have resigned overnight from the photo sharing app, considered the company's crown jewel. their departure comes less than six months after whatsapp's

co-founder left. they did not give a specific reason for leaving but reports say they also clashed with zuckerberg they say they plan to take time off to explore their next move saying building new things requires that we step back, understand what inspires us and match that with what the world needs. instagram is facebook's most successful acquisition instagram has more than 1 billion users, and is increasingly popular among younger people at a time when growth of facebook's core app stalled. in a statement mark zuckerberg called them extraordinary product leaders and wishing them well shares of facebook are lower in premarket trade. kevin was really responsible for the quick shift to compete with snap and people talked about mark

being thbig deal >> do you still need those guys, do you think >> do you ever need a founder? i think you might. when you think where instagram was a year and a half ago when people thought snap would overtake them. >> kids do both. >> unfortunately, though -- >> kids don't do facebook. >> they do instagram >> facebook traffic has gone down >> right >> facebook young people -- >> people have moved materially over to instagram. snap, it is impossible, i hate to say it given that you would like to see them succeed, they are not succeeding the way anybody expected them to in large part because instagram was able to basically copy and arguably make some of their features better. >> is that because of what

zuckerberg was doing at facebook or because of what these two gentlemen were doing at insta graha gram, my read was the shift on instagram that overtook snap in a big way is a product of what kevin did. so the fact he's leaving is a big deal >> so you can get 1 million fol lowers lowers on instagram. >> yes >> and snap is more just -- you go -- >> there are snap stars. >> my kids use snap. they have -- >> it's messaging. texting. they have streaks where they talked to somebody 40 days in a row. got to do it >> can't break the streak. >> you wonder why they have no time for anything other than that we have the audio computer unlocked the ifbs have been switched over we switched to the backup

computer we don't have "worldwide exchange" anymore, we have "squawk. there's a lot of things going on -- >> most of it was in our heads >> i'm not sure the audience knew >> they do now >> they do now that's the way sausage is made, actually the pigs are all sliced up sometimes they get rid of the waste. >> breakfast >> yeah, well, if you're eating sausage, buyer beware. stocks to watch. starbucks is planning job cuts at its corporate headquarters this fall. including some top executives. kevin johnson said the goal is to speed up innovation the number of cuts has not been determined and they are not expected to impact any baristas. whoever thought that you would

be getting stuff like that takes six words to order and you are paying $5 for it >> i don't play that game. i go in and say i would like a large coffee >> i have to look it up, i never remember which one it is large regular coffee they bring you a large regular coffee >> is this a u.n. thing? >> yeah. >> you're going to wade into that you're going east of where we are? >> yeah. >> that's insanity >> the traffic will be a nightmare, so i'll walk. in the rain. >> eamon is excited to be inside >> to be here with a roof over my head. >> is this like a dream? >> yeah. last time i was on set with you -- >> mohawk day? >> no. that was the trump tower day the day after election day in 2016 >> yeah. >> we had an hour and a half of sleep and came out and did "squawk box. >> i wasn't there. i saw it

>> was a wild day. everyone trying to process what happened that's the last time i was on set with you guys. it's a treat to be here. >> without the white house behypb behind you >> it makes everybody look 10% better with the white house behind you now you have this. >> which is also good. >> boeing has won the first round of u.s. air force contract worth more than $2 billion to replace its fleet of huey helicopters. the air force will use the choppers to protect the u.s. nuclear arsenal. someone in the air force said because of competition we were able to cut out a huge chunk of how much it would have cost us i think maybe 1$1.7 billion but it made me start thinking are these contracts less lucrative than they used to be >> the president will tell you he's been putting the screws on the defense contractors, getting them to jam prices down.

it's a weird world it's sort of a market but not really because there's only one buyer for a lot of these things. >> once you win the contract, then it's -- >> yeah. once you win the contract, it's how many years, how many plus ups can you do inside the contract the advantage goes to the contractor >> good to have you here >> this is really easy today shares of century link are lower today. its cfo is leaving good guy >> i don't know. i'll do a little research. i have to call a guy >> he is joining t-mobile to help oversea its peaeoversee itr with sprint. >> that's a phone company. >> he's come down to earth his value added is these are phone companies. a year after president trump's rocket man speech to the u.n., the president returns to the general assembly and his comments on north korea will likely be different than last year and reflect some progress made eamon javers is in town.

you're heading into that vortex, which we're glad you're doing it and not us >> it will be fascinating this week this is the president's second u.n. general assembly. he was an unknown quantity last year this year the world leaders have a better sense of his style, what he brings to the table. the president said yesterday that he is looking forward to another summit with kim jong-un in north korea, but no indicate when that will happen. the big topic is iran. the iranian president sat down with lester holt of nbc news yesterday. one thing he said is he's dismissive of american efforts to limit the iranian oil market. >> the united states is not capable of bringing our oil exports to zero. this is an empty promise, it's a threat that is empty of credibility. perhaps on this path we will sustain certain pressures, but

certainly the united states will not reach its objective. >> defiance there from rouhani, suggesting that the united states is not able to limit the iranian oil exports. the united states has been putting pressure on allies in europe to lower their amount of iranian oil buying the iranians don't think it will work the other thing he said yesterday that is important is he said there's no meeting scheduled with president trump and the iranian side that was a possibility at the beginning of the week iranians saying yesterday no meeting. >> i saw him, it was translated. he's talking about how no leader should be talking about walls, but be talking about bridges human rights, racism that's prevalent in the united states now. over in iran, you know how they run things over there. looking over here, he had some advice for how to -- how we might become more into the 21 1

century. >> right what's interesting with the iranians they decided to abide by the terms of the iran nuclear deal even though the president tore it up what is that play about and how long can that be sustainable that's a fascinating question. >> i would abide by it if i had a couple hundred billion dollars, too they didn't abide by stopping funding these activities all over the middle east >> the iran nuclear deal was strictly about the nuclear program, wasn't about terrorism. >> it could have been. >> it could have been. the question is if you could have gotten the deal had he added those things >> maybe john kerry is getting that stuff done now as a private citizen. thank you. >> i can't >> it's good to be here. >> you don't have your jackets on i feel like i should take mine off.

>> you are going to be here for a while? >> i'll be back at 7:00. >> you can do that >> if you're going to take it off here -- >> please don't. >> we won't. >> there play be children watching this. >> i sell sweaters >> this is going downhill. >> it is, fast were you surprised >> i thought it would go >> it's different when you're on remote all you have is audio. >> this is pretty bad. >> i might reach over and make that little thing -- remember that >> see, what happens it goes this way >> little product in there when the wind blows that way -- >> it was awesome. >> there was nothing i could do about it >> i could have been a diver >> this has been great >> look at what carl has going on >> nice. >> the fed kicks off its highly anticipated two-day policy meeting today. let's talk markets joining us for that is jurrien

timmer also hank smith from haverford trust joins us gentlemen, welcome to both of you. jurrien, we know this fed meeting is coming up, we're anticipating they'll raise rates. that's baked in. is there anything the fed says this week that changes the direction of the market? >> they could. we'll get a rate hike, it will be the eighth hike the economy seems to be stronger and more inflationary after eight hikes than before. i think it is an interesting milestone to suggest that the fed is not even close to being done raising rates but for this week, you know, obviously everyone will look at the press release, the interview, what the words are, which words they're putting n which words they're taking out that's a big game around the fomc they'll add the dots for 2021.

>> when you say dots, that means showing us where they think, the members think you'll see rate hikes for 2021 >> yeah. back in 2012 they created the dot plot where it shows each fomc's member individual projection for where the fed funds target rate will be so many years out as a way to create transparency and guidance going forward. you know, it's always a game to see how the dots are moving. but it's interesting that the fed has been suggesting six more hikes over the next couple of years through the dot plot, those are only suggestions those are not official fed projections. the market has been at three more hikes the markets generally have had it more right than the fed i think in this case the fed has it more right. the market has repriced itself over the past three weeks sharply. >> wait, do you think the market is not getting it right this time around meaning it is running up despite the fact that

these rate hikes are here and the fed is going to be the one that's right in the end that raises rates more sharply than the market is anticipating >> yes i think the market has been too complacent about how many more rate hikes are coming. pricing in three more over the next two years prior to labor day, now it's up to four more. the market is repricing itself this is why the ten-year has gone from 2.80 to 3.10 over the next few weeks maybe it will go up to 3.5 as the fed has more wood to chop. >> hank, even if we do get to 3.3, 3.5%, we are continuing to see the stock market make gains at this point. could you have both those things happen >> yeah, absolutely. the fed couldn't ask for a better framework here because we have fiscal stimulus from tax reform, increased spending, regulatory rollback.

that is providing the platform for normalization. you just couldn't ask for a better setup we don't expect anysurprises with this fed meeting. clairem chairman powell will acknowledge the economy is strong. he may talk about a few headwinds, trade wars. as usual he will say the fed is data dependent >> jurrien, that's the interesting point, this is the perfect scenario to have this fiscal stimulus coming in usually you have a more cyclical effect could this make it an easier landing period or will it be the same situation where oftentimes an economy is hampered by the fed raising rates? >> historically unfortunately it has been the fed that has often sort of killed the expansion, i necessarily the fed's fault. late in the cycle when the

economy overheats, usually the fed has to chase the inflation rate higher because that's part of its mandate then it hikes too many times and you get an inverted yield curve at the same time you have the fed's policy rate well above the so-called neutral rate we should compare it not to zero but what would be a neutral rate >> we may be looking at that now. if inflation is 2%, you're getting to 2% -- >> well, so that is my point so the neutral rate, the goal post seems to be moving. the estimate was revised higher by almost 85 basis points over the summer if it is 3, and the fed needs to get moderately restrictive, we are looking at a fed funds rate of 2.5, where 2.75 was priced

in so it's a moving target, but as the natural rate goes up, it allows the fed to raise rates further without damaging the economy. therefore if the curve were to invert next year, it may not be as damaging as it might have been in other cycles >> hank, what are you telling investors to do now? people are realizing the dow is hitting new highs, the s&p is hitting new highs. it's happening in this environment. are you telling people to double down and buy here? >> well, we think investors should have their maximum exposure to equities and be confident in that. whether you're a balanced investor, you're 60/40, you should be at 60% equities. if you're 100% equities, that's where you should be. i don't think we're in the late stages of this economic cycle or market cycle we're certainly not in the early stages, but we may be in the middle innings and when you have had tax reform like this, it is not a sugar

high it has a multi-year effect >> not everybody says that, hank writing that down. >> i know that >> i know you know i make sure i know the people who say one thing and the people who say the other. i don't know what will happen, but i would think you would change structurally the competitive landscape globally for u.s. companies, and it's almost like the people that called it a sugar high were the ones who said it wouldn't work for the first year they're clinging to their denial >> joe, when president bush gave everyone a $500 credit in 2001, that was a sugar high. then in 2003 he lowered capital gains, dividends, the top marginal rate that had a multi-year impact. that is where we are today >> okay. >> hank, thank you for joining us hank smith of haverford trust.

jurrien timmer, thank you. when we return, a lot more the ceo of shell weighing in on the big move higher on oil prices brian sullivan has that exclusive interview. as we head to break, a look at biggest pre-market winners and losers in the dow. ♪

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welcome back brent crude hitting a four-year high, that's one of the topics brian sullivan discussed in his interview with the ceo of shell. brian, good morning again. >> good morning. thank you very much. we were able to sit down yesterday, the u.n. bringing a lot of people to town. the ceo of shell was one of

them we talked about prices here's what he said about the balancing of the market with 80 the dollar crude >> 80 is not an unreasonable price. we should be able to balance the market at that level, bringing on production is not a short-term event it takes years to bring on new production we will have to collectively as an industry find our way through this difficult period. >> we moved on to tariffs as well i think you guys touched on tariffs the last couple of weeks. we asked if tariffs were stopping any of the current products here are his comments about tariffs and big projects >> the president is trying to do the right thing for the industry, trying to stimulate the economy. but having said that, i do believe that tariffs are generally not a good thing of course they are affecting us what is affecting us more are quota at this time, steel quota that impedes us in some construction projects that we have

but, you know, i think we are, while being affected, not to the point that it makes us change our mind on investments. >> i think that last part is the key, right now any way -- many of these projects were begun many years ago, but no construction changes yet because of the tariffs >> thank you, brian. coming up, regulating cryptocurrencies that's a topic of a roundtable hosted by warren davidson today. congressman davidson will join us next. he's being interviewed by the right guy, mr. bitcoin you don't talk about it when it's down, andrew. >> i talk about it when it's down, up, sideways >> you get to talk about it today. >> 6,393 >> we have a lot to talk about is this a buying opportunity or a selling sign >> if it is below 6,000, i'm in.

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. yeah, it's raining it will rain all day did you look at satellite? >> we already have soccer practice canceled. >> you play soccer no, kyle >> okay. >> but i did for a few years >> you just said your soccer practice was canceled. >> our soccer practice, meaning his. among the stories a big blow to facebook's instagram unit the co-founders are leaving the company. in a blog post they said they plan to take time off, explore their curiosity and creativity again and build something new. starbucks is planning some job cuts they are trying to jump start sales and boost innovation okay kind of interesting.

lay off some people in management and boost sales and innovation the number of cuts has not been determined. novartis will cut about 2200 jobs at switzerland over the next four years. the company said they're consolidating production and shifting positions elsewhere to boost profitability. earlier this month novartis said they would streamline production amid declining prices in the united states. u.s. equity futures at this hour, getting back some of the losses we saw yesterday. dow up 72. nasdaq was up yesterday. >> the nasdaq has been the counter for the last how many sessions whatever the dow and s&p does, it does the opposite >> up a lot the last couple of years. green across the board. time for the "squawk" planner. the fed kicks off a two-day policy meeting today the central bank is expected to announce a rate like tomorrow. on the data front we'll get the case-shiller home price index at 9:00 p.m

consumer confidence at 10:00 a.m., president trump will address the u.n. general assembly today around 10:00 a.m. eastern time. today congressman warren davidson of ohio will host a roundtable to discuss cryptocurrency regulations, it will include rawmakelawmakers, cryptocurrency currency firms and cryptocurrency experts congressman, we thank you for being with it's today. help us understand where you stand on crypto right now? would you allow, for example, etfs and other types of financial products around bitcoin and cryptocurrencies >> cryptocurrencies are much bigger than bitcoin. you think about bitcoin, it is approaching a currency, but the big thing that we're doing today is holding a roundtable with a lot of industry leaders coming in and getting ideas so we don't

start legislating before we start listening. so i'm fairly new to congress. been in manufacturing, and generally you try to gather as much input as you can to launch good products. that's what we want to do with this piece of legislation. there's a lot of uncertainty out there, and people who want to do those things like etfs, turn commodities into securities, trade futures on markets need some sort of certainty and credibility that legislation brings to prevent fraud. >> is this about legislation or is this about the s.e.c. taking a more progressive policy, if you will why do you think the s.e.c. has not allowed any of these financial instruments to hit the markets just yet >> well, i think they're still wrestling with it one concern early on when we were look at the timeline and when we would launch this roundtable is director clayton mentioning that virtually everything looks like a security to him. then this test which goes back to a court case involving citrus

growers, where everything starts looking like a security. there's a thing called a utility token, which is important to get at is that a security or is that something else more akin to a prepaid card though it does have a risk that the value would change can it be traded so a lot of folks in the industry found a way to raise capital that eliminates a lot of intermediaries it is not selling shares of a company. so if you think about apple when they were launching icloud, let's say they decided to do that through utility tokens, they had one terabyte equals one token, would you be owning part of apple i don't think so, but some people feel like, no, that's a security t has to be regulated as if they're selling shares >> congressman -- >> we'll have that dialogue today. >> how do you deal with what might be described as the biggest thorn, i would suggest, which is the custody issue

the idea that a bitcoin or most of these cryptocurrencies, if one of them gets stolen from me or if i send it accidentally, whatever, that it could -- it is gone there is really no way to meaningfully track it and that so much of this world is being used unfortunately to launder money, and for other uses. >> i don't want to dismiss the fact that there's elicit uses, but when cash goes away, cash is gone when a cryptocurrency is moved, it's inherently traceable. there's a distributed ledger, it's a public ledger, so there's -- the only anonymity is at the point of entry. >> that's why it is being used elicitly and clearly, unlike cash it can be used efficiently. it's one thing to put it in a

briefcase and get on a plane, but it's another thing to transfer it across the world in milliseconds >> in that sense it's like anything else traded in the market you have similar risks for traud with the market. >> you think it's the same >> i think some of them are the same right now everything has been kind of sloppy with our language we call everything a cryptocurrency the reality is we have crypto securities, crypto commodities, and i believe there's a third thing called a -- currently described as a utility token, but a crypto asset which is more generic. when the swiss created regulatory uncertainty there, they created that third asset class. it will be useful for real estate, titles, you name it. that's the platform ethereum created to be able to facilitate efficient transactions and it will eliminate a lot of underwriting costs

>> congressman, do you own any cryptocurrency >> i do not. >> do you want to own some cryptocurrency >> i would love to i feel like in a lot of ways i'm missing out on a great market. i feel like it would be appropriate for me to be making these investments now as i'm working to write this legislation. >> maybe >> fair enough congressman, thank you for your time good luck with the panel and we do hope to hear back from you. it's an interesting topic. we're all fascinated by it >> writing the regulations, probably -- should preclude you. i thought it was worth asking. there are people in congress and others, i hear it constantly, they want to own a piece of this >> i understand we work for comcast and nbc, but did you see these ratings for tiger? >> man >> 200%, that's triple why do you not want to talk about this, sorkin you started laughing the ryder cup is on friday tiger will be in there

>> tiger -- >> you know who is broadcasting the ryder cup. >> nbc >> what's interesting about this, tiger being back in good form for the northern trust. ticket sales went up 40% the day he was announced to be in there. what i do for cnbc you do for the "new york times. mine is closer to home >> just because it came after the conversation with the congressman about whether he would own crypto, because of his own conflict, then we went into this >> that's the segue, speaking of conflicts. >> speaking of conflicts, i will talk about comcast >> go for it >> i already did up 200%, crazy >> that's huge when we come back f you're thinkithin if you're thinking about joining the gig economy, listen up we have exactly how much the average gig employee makes

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time for the executive edge. a new study from jpmorgan found participation in the gig economy jobs surged over the past five years, that includes driving for uber or lyft or walking dogs for wag. you probably won't be able to quit your day job. on average the gig economy worker earned $828 per month, that's up from $688 in 2013. but down from just over $1,000 in 2015. the biggest payout came from users who leased something like renting out your home on airbnb or your car. a small fraction participate the in this kind of service, but those who did earned $2,100 per month. if you look at some of those numbers, just the living wage in some of the cities where this is

going on, the idea that these can be full-time jobs -- >> most people i know who do it do it to supplement other things they're doing. >> that's the issue. in places like new york, most uber drivers are full time similarly in l.a. and some major cities there's a lot of people who tried to take this on as a full-time role they do it as a supplement the supplement can be helpful when that works. a lot of people decide i will take more time off to try do this, then it doesn't work it's hard. >> just the perils of what might be down that path. united healthcare is warning hospitals it may drop envision healthcare from its network in january if the two can't reach an agreement before then envision is the largest provider of emergency room doctors. united health sent a letter to 250 hospitals on friday obtained by cnbc. it blamed envision's rates for driving up the coasts of healthcare overall a spokesperson for envision says the firm is negotiating in good

faith and accused united of using misleading data and making egregious demands. emergency room doctors contract with health insurers separately from hospitals so if united drops envision doctors could be out of network for more than 1 million united members across the united states. coming up, if you ever had a great idea for an app but you don't know how to write computer code, appian can help. no-code software, just sort of happens, i guess they help -- you remember the case stocks back in the '70s and '80s, computer engineering companies, this is like that but better the ceo will join us next. before we go to break, a quick check of what's happening in the european markets

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prevagen. healthier brain. better life. whai tell clients, etfs can follow an index, but which ones target your goals? 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,

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censored launch product in china. it will also talk about censoring certain things on google appian is betting the future of software development is low code or no code, and that will build apps more quickly by reducing the need to code. joining sus maus is matt calkins companies need software, and they need it customized. typically they have to build their own. >> these days companies compete based on the software they write. >> for all their stuff back office stuff, customer satisfaction >> it used to be back office, now it's front office. it's appealing to everybody and differentiating from competit n competition. >> someone comes in and says i will do this for you, i will write the code, what you can do is 20 times faster -- >> 10 to 20 according to a leading analyst.

here's why instead of writing it by lines, you draw it like a picture it's a flowchart, you depict your intentions. >> and you're already using some of it or it's really computer generated new code >> it's an interpretation layer. and so you can think of it as the code already existing, but it's not blocks of code. because that wouldn't be smart enough >> is that ai? >> there is ai in there. >> that's why i can come out translated properly. >> it's just an augmentation ai isn't smart enough yet to actually write your code. >> what language is it writing it in? >> well, it's not in a language. the important thing here is there's never an authoritative layer you can go down to and modify we're interpreting your instructions we interpret that on any mobile

device, in the cloud -- >> this is zen meets software development. >> i think about when you talk to your phone, the translations that come out. >> hold on, hold on, hold on so if you want to write an app for this phone, it ultimately has to be done somehow in swift, right? >> eventually and it ends up as a native app on that phone however, it's going to be on every -- >> you're going to write in swift for apple and do a different version over here. >> it's going to translate your intentions in drag and drop ways into a piece of software that will run on that phone >> drag and drop the old computer aided software engineering. that sounded good, but it really wasn't custom. someone had to write a bunch of more code to make it work. >> over the years there have been a lot of attempts to create software this is the latest generation. i think it's further than the other generations. you can tell that because we're being run by the biggest

organizations unlike these old attempts that kept it simple and it wasn't powerful enough to do the top job >> so i've been studying this python book. i don't even need it anymore so big revenue increases and narrowing losses, but still not profitable >> that is correct >> when -- so year over year for the next two or three years, your compound revenue growth is, you see it to be how much? >> over the past year we've delivered 36% subscription revenue growth that's the most important component of our revenue and we're going to continue to grow we haven't put out a forecast for 2019, but i feel good about our growth >> and do you have a goal for profitability? when do you see that >> we have got an informal goal that we'll be cash positive by the end of 2019. we did at the outset of 2018

invest $10 million >> do you have companies like ryder or colleges, department of agriculture. do they come to you? or do you have a sales force that goes out? >> we have a sales force, but i'm proud of those clients you'll find though i can't always talk about them, we have some of the top firms in every industry in the world running multi-million-dollar platforms on appian. >> so if they don't come to appian, who do you think they're working -- who do you think they're working with >> a competitor. >> like who? >> well, they could have built the software in-house. it's slower but it's traditional. they could have gone to a competitor like pegus systems. >> are you a coder >> i've fiddled around a bit >> you're on economist >> yeah. >> so this was your idea or how did this happen >> well, it was many people's idea and happened over time. we went into this business 19 years ago. over time we've adapted and

we've changed the business plan a little bit i'd say we've been doing low code for seven to ten years. >> i almost got into that -- what is it you can't even say the division. you know what i'm talking about? no i had it here. but high productivity application as a service cat gorization it's h-pap-pass definition >> what is otherwise called low code >> so we can call it low code. >> my organization is simplicity everything about created code should be simple ler i think that's what's missing in code >> okay. all right, matt. thank you. can't believe i wasted my time with that python book when i didn't need to i don't need to write code you're telling me that i don't need to write code

>> the skills you've developed you won't ever use >> right at least i know how to do it now, right, andrew >> it's a logic training it's a way to think. >> that's a problem for me >> i'm not sure it worked, but i'm with you >> thank you good luck. in the meantime, peter navarro blasting some of our allies over bad trade deals. >> our allies and partners and strateg strategic rivals like china are ripping us off and the american worker off and the president is going through these areas whether it's mexico, canada, japan, china, and so on, europe. and basically calling them to account and getting to the bargaining table and getting a better result for the american people >> navarro's comments came moments after president trump inked a new trade agreement with south korea. the president calling that a big deal and a great day for the united states. okay lots to come in the next two

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addressing the world president trump speaks before the u.n. general assembly later this morning what to expect when he speaks as a showdown with iran looms details are straight ahead nike set to report results after the bell a preview of what to expect when the dow component reports is

just minutes away. plus, supply drop incoming a unique blood and drug delivery system we'll show you how the drone delivery system could disrupt the medical field. 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" here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures at this hour dow had fallen yesterday, but today looks like we're going to open up higher nasdaq looking to open about 20 points higher. s&p 500 looking to open eight points higher right now. couple headlines to bring you are the big ones

federal policy makers begin a two-day meeting today. considered all but certain they will raise by a quarter point. this means it will be followed by a news conference with jay pa powell steve liesman will be there. then we have big departures at instagram. mike krieger and psystrom have left it's said to be worth close to $100 billion today now that stock off about 2.5%. >> i guess the big question is, did they go and launch a competitor to instagram? >> i don't know what kind of non-compete they have, if they have other ideas for different types of software. i don't know if they would necessarily try to rebuild instagram so much as -- they're both pretty creative guys. they like to build stuff but given this is the crown jewel for facebook right now and

it is the growing piece of the business, there'll be new questions about what's happening internally meantime, other news in. michael kors has bought italy's versace. the two luxury good makers were close to finalizing a deal yesterday. it will be renamed capri holdings an interesting decision for a company that has historically not been in the high-end fashion space and whether or not they'll be able to turn around versace starbucks expecting layoffs this fall. reportedly include some top executives it's all part of starbucks trying to tighten up decision making at the company. the number of cuts hasn't been determined and are not expected to impact what goes on at starbucks retail stores. and boeing has won the first round of a more than $2 billion contract from the u.s. air force to replace its fleet of huey

helicopters. and united health care warning hospitals it may drop envision health care from its network. that would happen in january if the two can't reach an agreement. envision is the largest provider of emergency doctors it blame ed the rates. they are negotiating good faith and accused united of making egregious demands. doctors contract with insurers separately from hospitals. if united drops envision, doctors at in-network hospitals could be out of network for more than 1 million united members across the u.s that could have a bigger impact on the cost of health care president trump and iran's president rouhani could come face-to-face tomorrow at the security council meeting eamon javers is here again and he has more on this story. good morning again >> so much speculation leading

up to this whether or not we'd see that face-to-face meeting between rouhani and trump this week maybe not the week we'll see that, according to rouhani rouhani sat down with lester holt of nbc news last night. he talked about the strait of hormuz and the iranian threats to close that vital waterway if it doesn't get what it wants in terms of the global oil markets. take a listen to that exchange >> translator: if the united states wishes to use force in order to sanction the petroleum industry of iran, it will certainly see the appropriate response we do have the power to secure our own waterways and keep our waterways free >> is that a warning to the trump administration should they take that as an administration >> translator: this is not a warning. this is a reality. if the persian gulf waterway which is to remain free and secure, it must remain so for

everyone >> so a veiled threat or maybe not so veiled threat from the leader of iran we'll see how that plays out throughout the course of the day today. we'll see the president this morning addressing the u.n. general assembly this is the 73rd general assembly and it's president trump's second >> i mean, we've pointed at that before this is a different backdrop than what we have seen last year when all of the threats back and forth with north korea have been heavy and flying high. we've come a long way over the course of the last year. >> i think the international community has had the time to address the trump. last year might not be this year you've got the brett kavanaugh supreme court nomination out there. and then you've also got the rod rosenstein situation at the department of justice.

entirely unclear what their fate is going to be all of those things weighing on the president as well this week. >> thursday when we'll be hearing the testimony in front of the senate. >> thursday's a big showdown day in washington. >> i ditched the jacket. this is full "squawk box" style. >> but you were worried about your gut you can see we put -- >> i need to flex. >> we have a ticker. we have a lower third. >> you need this table to be a little higher. >> believe me, when i was pregnant, i dropped my feet so far so you would never see >> so you always feel uptight, little buddy >> i work in washington, buddy >> so you're all liberated

i don't want you to feel all pent up. all right. ambassador is here you should stay because this was your report. >> sure. i'm fascinated to hear what he has to say >> joining us now to talk about the global politics, robert kimmet we just heard eamon's report my first question when it's all said and done and we're reading the newspapers in a couple of days, is that going to be what the headlines are? or north korea what do you think is really all, you know, the priority on the president's plate? >> korea was clearly the priority last year i think it is iran this year you saw the iranian president taking a hard line i think you're going to hear a pretty hard line from the president both in his speech today and the council session tomorrow >> if the president got everything he wanted with iran, what would that look like? no more adventurism in any countries in the world in terms

of funding terrorism no more missile -- what would it be what would be a detaunt between the united states and iran >> well, first it would be the core jcpoa, the joint comprehensive plan of action, would be tightened up a bit particularly to inspections. but then the other issues, missile proliferation, regional stability, also u.s. prisoners held in iran i actually was with a group that met with president rouhani last evening. it's been reported in the papers this morning i was there to raise the issue of americans held in evan prison i think there's that core jcpoa but there are issues about proliferation, about regional instability, terrorism as you mentioned. but also the american prisoners held in iran >> it helps to have the support of your people from the ground

up is that -- are you starting to see that reach a critical point there yet? he talks tough and he's still in charge, but he has concerns at home, doesn't he rouhani. >> he certainly does -- >> you thought i was talking about trump? >> he also has concerns at home. >> he's got trouble with the ground he's got 60% against him too >> i wasn't following pronouns rouhani clearly has problems at home you've seen some of the street demonstrations primarily driven by a deteriorating economy. there are a lot of pressures inside iran. i would hope they would see it to be in their interest to move towards a path on that broader range of issues. not just the agreement itself. >> ambassador, eamon hinted at this, but we've seen a big change in diplomacy and how it's

been dealt with this administration and in the past it's thought you need to allow other leaders to be able to go home and say we're winning on something too. what do you think about this new sort of bull in a china shop mentality? and is it working? are you seeing results from it >> i think we're seeing some results. typically at the u.n. general assembly, it's all about political and diplomatic issues. more recently trade and other issues have come into the discussions during this week >> i just mean more broadly in diplomatic approaches. >> so yes, for example, a new and improved u.s./korea free trade agreement was signed kimmi they've. very clear they said this week is about sovereignty. not just u.s. sovereignty but the sovereignty of other kocou y countri countries. let's have people come to the table, play their strongest cards, and find that mid-ground

that serves both he's pretty clear about what his concerns are i think that's helpful to the other side progress has been made in some cases. particularly on korea on trade i would say in other areas with europe, mexico, canada, and especially china still some work to be done >> you know, i had a question about sovereignty. when you mentioned that dinner with rouhani last night, i want to find out more about that. what's rouhani like in person? we saw that clip of him with lester holt on television. we see him at formal set pieces. when you meet with him one-on-one, do you get a sense of the man >> it was a group of about 20 people >> 20 on 1 you got closer to him than i've been >> he had people both from his staff and the foreign minister there. i think what you saw on television is what i saw in the room that we were in he is very articulate,

relatively congenial in the discussion but very hard-lined i would say on the issues raised from the jcpoa through syria, through missile prolivuation, he was very tough i would say on the prisoner issues that we raised, i, for example, represent princeton university who has a 28-year-old grad student who has been held prisoner for two years now i would say that he was receptive, but not as responsive as we would have liked to have seen >> fascinating >> all right, appreciate it. thank you. robert kimmitt that's a pretty good gig, i would think. >> it was a great gig. we talked about ambassadorships last time. >> you know, i still don't have one. >> i know. and you were sort of aiming at malta. >> i'm still malta >> i think that's available to you. >> you've been to malta? zblif n >> i have not. >> a lot of problems to fix there. >> i think it's fine it's in the mediterranean.

average temperature of 82. >> never have to wear a jacket there. >> no. i haven't heard anything are you -- >> listen. there's no better job in government than having the honor of representing your country abroad >> who's the ambassador to malta right now? >> oh, my god, is it open? >> it might be hold the phone do you know who it is? he might be on the way out unfortunately, you google ambassador malta and there's a hotel called the ambassador. >> that's where you can stay >> i thought maybe a falcon would come up or something what's that? kathleen hill. dag-gone-it. >> remember the u.s. is the only country in the world that has political as well as career appointees so 2/3 of our roughly 210 ambassadors are career foreign service officers the other 1/3 with political appointees. i personally think that is a

good way to run the representation of the u.s. abroad, the ambassadors here >> she dauz, but you might have a chance because she was appointed by obama >> she was clock is ticking i, myself, am not political. >> your time is coming, joe. >> ambassador, thank you very much >> thank you when we come back, dow component nike is set to report results after the bell today the company making headlines earlier this month when it debuted an ad features colin kaepernick the stock has moved sharply higher over the last year. the market cap is up about $6 billion. we're going to preview tonight's earnings report and find out if the company can keep up the momentum stay tuned you're watching "squawk box" right here on cnbc i know that every single time that i suit up,

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181 i think. >> was it 180 at the close >> yeah. all right. nike's quarterly results are expected to be released after the bell today that's after the ad campaign with colin kaepernick. joins us is kate mcshane from citi a lot of people would say given the stock's momentum, the big gains we've seen recently, that the risk would be more likely to the downside. that they'd disappoint with some of these numbers you don't think that's the case though >> we don't think so tonight there seems to be a good degree of momentum behind the brand right now. the sales number is the key thing we're going to be looking for. going to be up high single digits >> you say this is based on your work what kind of channel checks do you have >> internationally, nike is a global company it is harder to get a better read but we survey a lot of he

retailers that sell nike product particularly in china and western europe we've done this for the last 12, 16 quarters. so we have a history of talking to those retailers and all are indicating that the strength of the brand is definitely improving >> that's interesting because so many are looking at this report because we've seen the market cap build up after the release even though there was so much controversy surrounding it what you're talking about is more of an international play. not one that ties into this. >> i think nike because it's a u.s. company, people forget how global nike really is. i think the print tonight, everyone is going to be focused on north america numbers >> what was your take when the colin ad first came out? >> i've covered nike for a long time >> did you think it was the right decision though? >> they've always been very successful with their marketing. so i think, you know, he's a point of conversation and he's an athlete it kind of ties to --

>> when the stock sold off in the immediate aftermath, there was this sense at least amongst some investors clearly that they expected people would start burning their shoes never to buy nikes again. >> right you did see images of that post-the tease they had. but i think since then you have seen this surge in stock you've seen the google searches go up. you've seen a good response, i think, post-once you saw the whole campaign >> and in terms of what you're saying with this right now, where do you expect the stock could wind up just based on what you've seen in the channel checks >> i think there's good momentum in nike. we're seeing a lot of -- if they maintain their guidance for the year, the stock will continue to go up. >> how about our beleaguered under armour how do you think about them relative to nike these days? >> yeah, so, you know, under armour has had its challenges.

they're still trying to figure out, i think, their place in the world. the reason why they're struggling is they didn't segment their brand well enough when they went into different channels so as they kind of figure out how to go into different channel and market their brand to different demographics, it's going to be something to figure out. >> they ran into their own political buzz saw on the opposite end, if you remember. >> yes >> why do you think it didn't work for them and is working for nike >> i don't quite know. i don't quite know again, i think nike's expertise has been for a long time marketing. and i think they had their finger on the pulse of what people want to hear. >> kate, thanks for coming in. >> thanks for having me. when we come back, we're going to be talkingmarkets and the fed. and later, getting medical needs to rural areas take days at this point. but with a start-up called zipline, it takes minutes. the ceo will be here to explain

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the philadelphia flyers introduced their new mascot to mixed reviewed named gritty. it'll make its official debut when the new nhl season gets under way. joseph take it away >> by the way, this guy is no weirder than the philadelphia fanatic. like, he just looks like a yellow version of the fanatic. >> i thought it was facing the other way for a second anyway let's check on the futures as we said, we are indicated up almost triple digits on the dow. 97 points now. s&p indicated up eight nasdaq indicated up 20 so grand told with a half a trillion possible tariffs on china was about a 90-point selloff compared to where we are right now. we will talk markets and get the results from the latest cnbc fed survey after the break and then later, melinda gates joins becky to discuss her work

to help close the gap between women and tech thatxcsi eluve interview is coming up. stay tuned you're watching "squawk box" on cnbc

good morning welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square among the stories front and center, michael kors will buy italian luxury maker versace in a deal valued at -- did you like that >> you know, i -- >> and you know what people sometimes just take it and they don't -- then they -- >> i mispronounce everything >> that was a joke who hasn't heard of versace? come on. it had been widely reported the two sides were close to a deal the combined company will be renamed capri holdings

they'll make more than just those pants, hopefully you don't know of any of this, do you >> capri no >> who's laughing? why are you laughing >> i do not. >> because becky's not here. >> i own cargo shorts still. i don't think versace makes those. >> so do i those are -- i've passed mirrors and been in pictures they're not good >> i know they're not. but they're comfortable and they have pockets >> but there's a reason our wives tell us that they're bad >> yes, unfortunately. >> oh, is this me? okay we're going to -- >> i'm just told versace does make cargo shorts for $340 those i bet your wife would approve of >> you think so? >> maybe. >> it's the pockets. i don't think you can put them on there where they don't look dorky. >> do you wear them with your birkenstocks >> i've never owned those. the latest read on home read --

how about your tevas anyway about 90 minutes from now we're going to get the shiller report for july it's expected to show home prices rose 6.2% compared to a year ago shares of ascena beat on the top and bottom lines also reported better than expected comp store sales. let's talk fed survey. the latest cnbc fed survey is out ahead of tomorrow's statement and press conference our own steve liesman joins us with some of the highlights. mr. liesman in d.c. getting ready for the big meeting tomorrow >> getting ready doing my push-ups and pullups and getting the blood flowing, ready to go look, the rest of the year is coming into pretty good focus here pretty good agreement on the street among our participants in the fed survey what happens the rest of the year it includes two rate hikes

take a look at the fed expectations 98% agreement this time around and then i'm very surprised to see all this agreement, but that's where they think the fed is going here. average number of hikes, call it four for 2018. but 2019 is where the question is two hikes and then they're debating whether or not you get a third hike there here's some commentary we got. fed funds increases in september and december are as certain as certain can be but the fed's real challenge starts after the first increase in 2019 which will bring the rate to 2.75% or finally back to even to inflation. take a look where our panelists are versus where the fed is. you can see pretty good agreement through 2018 and 2019. after that is where there's some disagreement where the market thinks the fed will be a little bit more dovish short-term but a little more hawkish

long-term with that 3.3% rate where the fed right now is below 3% big question here. will the fed go above neutral o 33% say no here's some of the commentary th saying, quote, the u.s. bond market will reach a decision point some time in the next year when the market participants will have to decide whether the fed will go beyond current market pricing guys, all of this, we have a story online about this. we'll come back in the next hour and talk about trade but just looking at the 10-year this morning, it looks like the market is on its way to deciding the fed is going to do more next year >> all right steve liesman, thank you we just had a guy from -- i think is it -- it's haverford,

isn't it >> did i say it wrong? i guess i woke up this morning, turned on the tv and there was the guy from haverford >> frank smith yeah all right, my friend so they're going to do it today and do it one more time. >> pretty good agreement on that >> then they get to 3% next year and they stop. >> yeah. it's 2.75% or 3% and they'll stop depending on how the economy is doing, joe. i think if we're still going gang busters in that three and four range, you got a gdp between that, it's not crazy to have a rate in that zone >> so you're there for -- what's today? is today tuesday you're not going to be there tomorrow or thursday, i guess. >> in washington >> yeah. >> i'll be here tomorrow i was here yesterday for a thing with sonnenfeld. >> i'm thinking about the big testimony on thursday. if you could get a ticket. >> no, i'll get out of town for that i don't want to be anywhere near that, joe.

>> really? everybody's going to be watching, steve. >> they can watch. that's fine. that's why i'm a business reporter, so i don't have to do that stuff percentages and data and numbers but not this stuff >> yes okay all right. thanks, steve liesman. let's talk more about the fed and the markets. joining us for that is david joy and siemian hyman. do we read anything into -- we're talking $500 billion at 25% tariffs possibly we don't know. i mean, we're headed headlong towards that why? >> it seems to me the market's done a pretty good job of saying, you know what? we'll worry about these tariffs when there's evidence they're harming the economy. and until then, let's focus on what we do know and the economy is strong, earnings are really strong so i think if this thing lingers well past the midterm elections,

i think then we'll try to get -- >> what is the linger? that there's effect? that there's more retaliation? when you say linger, what does that mean? >> i think both of those i think we're probably on a path to, you know -- >> you see both sides stepping back from where they are >> i see both sides digging in and lasting well into 2019 >> i think this is another ingredient for the inflation mix. we have just about every inflation indicator pointing upwards. this is going to add fuel to that fire. i think weal hear more hawkish comments from the fed. we heard very hawkish comments from draghi. we need normalization on the other end of the curve so their quantitative tightening is in full swing we had a 90% reduction in bond buying from the second half of 2019 >> we talked about this yesterday briefly.

why have the chinese not threatened -- and i don't suggest they would do something meaningfully with their bond purchases, but if they just played around at the next auction a little bit just to prove their medal, if you will, i think that would send a real signal and shift this debate why don't they do that if they made this a meaningful part of their strategy to some degree, where the real leverage lies, it's there. >> it's not the same issue it would have been seven or eight years ago because it would not be a terrible thing to see a 3.5%, 4% yield on it more of a disruptive issue at this point, the economy's much more healthy. >> do you have a feeling for next year in terms of whether this market can sustain itself and trade at new highs again all

next year? >> we're only 18 times 2018 earnings so we're not that expensive given how much earnings growth there has been that said, there are pockets that are a little bit cheaper. small and mid-cap stocks are trading at a 30% discount to the s&p 500. so, you know, certainly the large cap run has made them relatively expensive >> and like so many things, i could argue from both sides. if the economy stays strong, corporate earnings continue to go up. but then you worry about inflation and higher interest rates. but if the economy did just sort of level out, then you wouldn't be as worried about the fed and multiples don't look so high i could see it going up either way. >> i think inflation is a big issue -- labor market's tight and they're worried about it that was their whole gist of the speech that paul gave at jackson hole that they've made mistakes in the past about what the real

natural rate of unemployment is. well below where i think they're comfortable already. that's one issue but the other issue i think for next year is i think stock prices can go higher because the earnings will be good. but valuations by a number of different metrics are quite stretched. that implies modest returns going forward. they can be positive, but i don't think they're going to be robust >> how do you feel about tech right now? >> we've lightened up on our tech exposure. we're neutral on the sector, the new sector we've moved some of that money into the cheaper value parts of the market >> same place? >> the only advantage that tech has at this point is that they will be able to -- because of pricing power -- hold onto more of the tax benefits than some of the other sectors. it's just very expensive >> all right our thanks to siemian hyman and david joy. okay when we come back, you got to

see this to believe it access to medicine, blood supplies in remote part os this world. it is a problem. but california-based zipline are looking at new ways. the company's cofounder is going to be here after the break this is a drone business literally dropping the blood u' glies to people in need yoveot to see the video and the interview. back in a minute cal: we saved our money and now, we get to spend it - our way.

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welcome back to "squawk box. technology is always improving one thing that remains is access to critical supplies joining us now is the ceo of zipline who thinks they have a solution to this product zipline is number 25 on cnbc's disrupter 2018 list. thank you for being here >> thank you for having me >> just tell us -- i mean, i've seen this. but a lot of people are uninitiated. tell us what ziplinedoes >> so zipline is an instant delivery network for health care products and we use drone delivery at national scale to allow countries to provide universal

access to health care to all of their citizens in the long run, we're just a new kind of logistics network. >> okay. so we have some video and i want you to walk us through what we're about to see but this is the drone takeoff process. explain what's happening >> yeah. so we operate from our own distribution centers the vehicle will basically launch in about half of a second once in the air, it's flying fully autonomously out to one of the health centers we serve throughout the country >> so we also have some video of the supply drops once in the air, it's now flying autonomously >> yeah. when the vehicle arrives at the hospital or delivery site, we'll deliver the package from about 30 feet up in the air. we can deliver into our customer's quote, unquote, mailbox. >> this is the video of the drone recovery process it actually has to get back to base somehow

>> you have to land. so there's no landing gear on these aircraft we build everything from scratch. we're catching a one centimeter target on the back this is the advantage of using flight algorithms. >> what happens when it's wind y i? >> i mean, interestingly, it's not enough for us to say that we can save patients' lives when the weather is crazy we fly in everything. >> and finally zipline is explaexpan expanding its radius in rwanda explain that >> we'll build distribution centers to cover every human in the country. you can see basically operating from two different distribution centers by the end of this year, in partnership with rwanda make them the first in the world to have universal access to health care. >> what's the cost per delivery? do you break that down >> that depends on the price of labor in each country.

generally, it's less expensive to a motorcycle. >> and in terms of health care products with is there a certain weight limit in terms of what you can send on a drone like this >> today we're delivering around two kilograms per flight, but you can do over 500 flights a day. >> now, the rwanda government has given you a path to do this. the u.s. is a lot more complicated. do you see this coming here soon >> so, a lot of people assume that rural health care is only a challenge in developing countries, but that's not actually the case. critical hospitals in the u.s. are closing at a record rate and the u.s. has the highest rate of mortality in the world we're going to be doing our first commercial flights in north carolina in the first quarter of 2019.

>> and is it specific to north carolina, that state deciding to do it because of air traffic control issues >> from an air traffic control perspective. >> long-term when you started this this was about health care. you think of yourself as a logistics provider is this the next fedex, u.p.s. is this how we're going to be getting deliveries all over the world? or there's a certain use case? >> yeah, i mean, the thing that really drives us is we think that people's access to health care should not depend on the gps coordinates of where they live in the long run, i think you're going to see instant and automated delivery for everything >> when you're here, you remember when jeff bezos showed off drones saying we're going to deliver stuff to your lawn >> hasn't happened >> it hasn't but you're doing it in other countries at national scale. how far out do you think that reality is if you think it could become a reality

>> it is a reality today >> i'm saying for -- >> for everything. >> yes whether you're going to get your pizza from dominos this way or whether it's drugs that are d p dropped on your door, what have you. >> it's just a difference in vision we think that the potential over the next few years is to provide universal health care and not to deliver burritos or pizza. >> he built all of this technology himself this is not, like, off the shelf hardware or software >> our team did. you know, the entire team is driven by this overall vision to change the way health care works. >> thank you for coming in >> thank you coming up, stocks to watch ahead of the opening bell on wall street. make sure you keep it locked right here on "squawk box. melinda gates is going to join becky for an interview at 8:40 a.m. this morning. as we head to break, look at the

premarket winners and losers we're going to stick to the dow here there it is. [knocking] ♪ ♪ memories. what we deliver by delivering.

i decided that i wanted to go for electrical engineering and you need to go to college for that. if i didn't have internet in the home i would have to give up more time with my kids. which is the main reason i left the military. everybody wants more for their kids, but i feel like with my kids,

they measurably get more than i ever got. and i get to do that. i get to provide that for them. let's take a look at some stocks to watch this morning factset reported a quarterly profit of $2.20 a share.

that was 1 cent below estimates. the financial information provider also saw revenue miss forecast b.j.'s wholesale being sold by current shareholders and the warehouse retailer will not receive any proceeds from that sale and centurylink, the cfo has resigned to join t-moblie. t-moblie u.s he'll be in charge of t-moblie's integration of sprint which at this point is buying federal approval of that takeover still pending then match group will give extra scrutiny and security before they allow men to converse with women online that feature is being tested in india. what match intending to roll it out worldwide if test is successful jpmorgan found participation

in the gig economy jobs has surged driving for uber, lyft, delivering goods, walking dogs but probably won't be able to quit your day job just yet here's on average, the gig economy workers earning $828 per month. down from just over a thousand dollars a month in 2015. if you go out and rent your home on airbnb or your car on truro, only a few participated in this. but those who did earned an average of $2,100 per month. and drug maker novartis is going to cut about 2,200 jobs in switzerland in the next four years. consolidating and shifting positions to boost profitabil y profitability. company said earlier this month they would streamline production

for the drugs in the united states and palihapitiya has fired now multiple members of his staff including four partners. this coming together business insider. palihapitiya switching to a holding company instead of a traditional vc firm. he said last week he would cut the firm's head count to 40 people compared to 70 at its peak the business insider reports the layoffs took employees by surprise we did reach out to the firm haven't heard back yet but when we got chamath either on the phone or e-mail, we'll bring you whatever comments we can. national trade council director peter navarro blasting our allies over bad trade deals. >> there are allies and strategic rivals like china who are ripping us off and the american worker off. and the president is going

through these areas whether it's mexico, canada, japan, china, and so on and basically calling them to account and getting to the bargaining table and getting a better result for the american people. >> navarro's comments coming moments after president trump signed a deal with south korea on a different note, the $350 versace cargo pants, they were $700 >> there's a reason they're 50% off. >> they're not bad >> i did not -- >> i looked at different ones. >> i'm not in agreement. i would not wear those >> there's a reason they're 50% off, i think you thought they'd be good though >> i'm still into the old school abercrombie kind of -- >> big versized pockets.

>> all right so you saw them, you looked them up >> yeah. 50% off at bergdorf. >> what happened to them >> they're still in business >> henry bindal. they're going away that's the thing which was a big deal in my house. berg door -- bergdorf, goes, we're in trouble coming up, the fed kicking off a meeting. we'll talk markets after the break as well. and melinda gates is going to be with us. she's going to join becky quick. we're going to hear about her work to close the gap in women in tech. that exclusive interview at 8:40 eastern time you don't want to miss it. stay tuned your watching "squawk box. big hour ahead let's begin.

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raise interest rates this week the final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box. >> it's like the empty chair routine. you remember that? do you remember clint eastwood >> i do remember just for us, it just seems like we're separated. >> becky's left us to go visit with melinda gates who we're going to be seeing in an hour. not an hour. i should say 8:40, she's going to be live >> paul is here. >> paul is closer to me on this. >> but he's much closer to me in general. >> i might have to get over here right now. >> just in general, he's -- yeah

anyway -- >> you want me to sit here it's nice. >> are you still hooked up >> i'm in. i'm wireless i can swing around >> we can both just -- i'm going to go over and sit in becky's chair. >> can we have chair races around >> we can. welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with andrew ross sorkin and becky usually sits here. i'm not sure if this camera works well from here is this good i love her american flag i've always wanted that she's going to join us live in the next half hour with melinda gates. the futures right now are indicated up again it's been a good august, a good september. those aren't always great months but we have seen a series of new highs. we hit one on thursday no, hit one on friday, i guess, then gave back a little on monday about 180 points we get about half of that back

right now. nasdaq indicated up 19 s&p indicated up eight or so treasuries finally got through 3% and got all the way to 3.1% where they are today on the 10-year. and then oil prices have been stubbornly moving up in spite of some rhetoric from president trump. we're almost $82 on brent. that's been awhile since we've seen levels that high. olympikay. making headlines -- come on over come on over this is like photobomb right in the shot. president trump is going to be addressing the u.n. general assembly today among other topics, he's expected to talk about sanctions on iran. trump tweeting earlier this morning, despite questions, i have no plans to meet iranian -- the iranian president. maybe some day in the future >> what's his that im? >> i am sure he's an absolutely lovely man then the other big corporate

news of the morning, instagram's cofounders have now resigned from the company this is very, very big news for facebook given that was really the crown jewel of the company over the past year and a half they have under those two founders' leadership really pushed on snap now we're going to show you snap shares because yesterday we learned the snapchat is testing a new feature to help you buy from apps maybe setting itself up to be bought by amazon with just announced partnership between the two. a possible first step in that process. so the speculation begins. that stock up 2.5% today this morning in the premarket i don't know if that's the speculation of amazon. maybe we're speaking and this is happening. or if this is a bit of a function of the view that those founders at instagram who were competing so aggressively against snap are now taking an exit from the company.

now back to the broader markets. joining us is paul schatz. he's president at heritage capital. and matt toms who we have room for right here, andrew but actually he's on remote. we could put you right here. but this will be fine. head of fixed investment at voya investment management. you're bullish long-term you like the underlying fundamentals but we could be looking at a mid to high-single digit near term correction in the markets in your view. >> so long-term the fundamentals are still good listen we all know tax cuts, repatriation of money. 700-plus regs cut. the backdrop is still pretty good but i think if there's going to be a decline the rest of the year, it starts in the next one, two, three weeks it's a mid to high single digit. i don't think it hits 10%. people call it the tactical pullback stocks have come pretty far

since the q1 lows. now you're seeing a split market people have talked about it before you've got a lot of stocks doing really well. and you have the last stocks even in bear markets now the window of opportunity is open now for a routine normal healthy pullback on the way to dow possibly 30,000 by july 4th. >> because you say we got to get to 27,000 obviously to get to 30,000 but once we get there, that's your target now. then you'd raise your target to 30,000 >> as our targets go, it takes five closes above a number and the next target gets open. so five closes above dow 27,000 will open to dow 30,000 by july 4th. >> i can tell you a 8%, 9%, 10% correction, it would be tied to china and tariffs. and i think it would coincide with the midterms coming up. so there'd be all kinds of

conjecture and commentary and rhetoric that there would be attributed to tariffs and politics, i think, and the midterm. >> i think it's always hard in advance to assign blame or credit >> i'm not saying it's real. but that's what you're going to read >> and if you lean to the right, you have to be concerned if there is weakness ahead of the election, that has favorable conditions for the dems to take the house which i think they will by five seats if the dems take the house and the republicans maintain or gain in the senate, i don't think the market cares still i think you've got higher prices coming in the markets >> a lot of cross currents i think nate silver, i think we're at 25% that the gop holds

on 75% that the senate holds on for gop. then you had a recent nbc/"wall street journal" poll shows up 11 for generic democrats or 12. might have been 12 but then you had the overall gop approval rating on a gallup poll at the highest level in seven years. higher -- and gop is more favorable. but that was after the hearings but before the accusations so it was -- i'm not sure that initially the dems -- >> look, i think we're still a month away i think so much is going to happen i think so much is going to happen maybe on thursday who knows what's going to happen >> we got rosenstein and dr. ford on -- and brett kavanaugh. >> but the average voter, you poll them now it's one thing they're -- in the congressional districts, they're really voting for that person. it's not like 2020 so it's much more localized than

the four-year presidential elections. and they don't vote with their wallet as much as they would if this was 2020. but people still care about the economy. >> all right let's get to matt. we're not avoiding you, matt who do you work for? voya is that it >> well done >> we need to pay for that >> he's paying for it now. look he's conducting. >> it's perfect. >> it's catchy that's why advertising works >> thank you >> we need "squawk" something. i guess today we were just talking to liesman do you think we have one today, we have another one, who knows about next year in terms of rate hikes from powell. then we get to 3% and stop is that your forecast? >> yeah. that's fair enough the only dots that matter are the terminal rates so they're at 2 7/8.

the bond market is they will stop at 2.75% to 3%. and the fed is saying they might. we think the fed will not take away optionality tomorrow. the next three are baked in the cake the question is beyond the next three. >> do we have normal asset allocations even though everyone's expecting rates to go higher high yield or something? what do i use for my portfolio for the fixed income side of things munis? what are you telling people? >> right so munis are attractive particularly in high-tax districts which have a higher incentive to own them. still there's a bias towards instruments that will benefit from upward lift in rates through the end of 2018 is our key call once you get into 2019, you're talking the last couple fed hikes. likely topped out at 3.5%. but next year see the ecb begin to do some of the lifting for

the fed. >> in general with high yields or corporates, things like that, do you worry about interest rate risk because we are in a rising rate environment, or does it become dicier in an economic slowdown because of credit risk i guess you always have to take both into account. >> yeah. it's always both, joe. you're right but today it's more interest rate risk. default rates are still projected to be in the mid-2% ranges you have seen a degradation. but that doesn't create credit risk it actually creates casualty and default risk which is the downside of the next economic cycle. not today's worry. that's more of a worry 2020 and beyond the corporate outlook is still decent earnings are decent. that income from corporates is still quite valuable in today's environment. >> all right thank you, matt toms of voya and mike co-twitter troll.

everyone is crazy, aren't they >> everyone's tough behind their keyboard >> you send one thing out, and hundreds of things happen and i just sit back and watch. it's kind of funny, isn't it >> big beg for relevancy >> is that what tit is? it's not working when we return, a lot more on snapchat teaming up with amazon to take pictures of objects and then buy them. we're going to talk to a top analyst next because the speculation is flying. this could be the beginning of a long relationship. and later, becky is going to be sitting down with melinda gates. she's speaking out about the fight against poverty in her new firm's effort to boost dertyivsi in tech. your watching "squawk" on cnbc need a change of scenery?

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it's rainy real is going to be 50 degrees and rainy. i don't know we had a pretty good summer. dow futures right now indicated up almost 98 on the dow. the s&p indicated up 8, and the nasdaq indicated just up under 22 corporate news, comcast said it's bought more than 30% of the shares of britain's sky in the marketplace. fox still holds a 39% stake in sky and is mulling whether to sell or hold onto that stake snapchat announcing a new partnership with amazon to boost its e-commerce capabilities. this just one of many moves from social media platforms to expand into the online shopping space joins us now to talk about it is jeff hill. good morning to you. >> if you look right now, there is some speculation that this relationship between snap and amazon is not just a quickie

partnership. maybe it is the beginning of something larger what do you think of that? >> it feels like this is the beginning of them dating we'll see if it leads to marriage so far we think this is pretty early to speculate clearly snap under a lot of pressure we think this is ultimately a bigger picture game that facebook is taking share and so snap needs any type of partnership they can get for amazon, this pick up on a younger audience they want access to that has a lot of detail and a lot of impact on brands so we think that, you know, this definitely makes sense but if any of you have used an amazon search bar, you know how easy it is to find something on your mobile device searching for whatever you want on amazon. so i don't think this is going to change the game for amazon. it's a nice to have. it's not a must have >> what about on the snap side i would imagine if people are

taking shots and images of different things and in the middle they could see if they happen to like my tie, for example, they could buy it right off amazon that would be a cool feature >> again, it's a great feature we don't think it's a game changer. again, i think that this is one of many things that snap needs to do to get back on track and clearly the user base has been disengaged you can see it in the numbers. so they've got a lot of work to do it's a nice step i wouldn't call it a game changer. >> what was the reaction when you saw the headline late last night that the two founders of instagram who largely had been responsible for the ability to take share of snap by copying some of their features >> it's a blow there's no question. but in technology over the last 20 years, it's really hard to name a founding member that was

acquired that's still at the parent company you know, covering software for 20 years, every company we watched, the ceos would stay for a year or two and then disappear and start their own thing. no question a big blow i think there's a lot of questions about what led to that departure. where their fights with zuckerberg over instagram. ultimately if you look at the history of tech, you can't find these founders it's a very low hit rate of staying for multiple years. >> what's to say they go out and build an instagram/snap killer meaning they compete with their old product. >> sorry, that facebook does something? >> no, no. that the two founders kevin and mark who say one of the reasons they want to leave the company is to start something new. the question, of course, is is the thing they want to start that's new in the same space they were just in. an improved version, if you will, or do you think they start something completely different >> i think they would go a

completely different direction i think they've had so much success. instagram is the powering engine of facebook going forward. they'll steer clear of that. it just happened, it's unclear but our sense is they'd go somewhere else >> and finally, when you stack these social need ja stocks up against each other, where do you put your money >> amazon. we took the price target to $23.50 we highlighted this morning we think the stock can go much higher we didn't apply a big multiple on the cloud business. we left a lot of wiggle room, we think. we still two years out can get to $3,000 a share. it sounds crazy, a big number. but when you back into it, it's really not when you look at the multiples and laid it out this morning. so we still like amazon. google we think is cheap facebook's short-term has some issues that they've got to work through. and i think it's probably in the short-term either going to be a

sideliner for many people. but it's probably going to be 2019 before investors get excited to come back to facebook >> and come back to where we started. what about snap? buy or sell? >> it's -- you know, we have a hold rating. we have an $11 price target. we're not that excited by where the business is going. they did bring on a new cfo that came from amazon they brought in a number of new key execs around the finance group that we think will be supportive of the story. but we stl think they've -- there's better stories that we have more conviction in. >> and finally, where do you land on twitter? it's a topic we haven't discussed recently >> they're doing a great job we have not recommended twitter during the recent run-up or the recent yrundown. they've done a great job the key to twitter is the u.s. recovery they've been undergrowing the market and we think in the back half of the year, they have easy comps in the u.s so we think the acceleration can

continue for twitter in the back half of the year seems like jack's very engaged there. square is doing very well. some speculation maybe spend a little more time fixing twitter because square's running really well so we're not ruling them out >> okay. brent, thank you so much i feel like the weather is better in minneapolis today than new york >> it is it's better than new york. >> enjoy it. because we're going to be wet. >> did you look at the satellite? it's a huge thing. it's a major front sitting right on top of us >> this is like the financial al roker we have here. >> yes, it is. coming up, becky's exclusive interview with melinda gates as we head to break, here's a look at the biggest premarket winners and losers in the dow. stay tuned "squawk box" will be right back.

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welcome back to "squawk box" here on cnbc the futures right now, take another look 83 now come down a little bit they were up in the mid-90s for most of the last 90 minutes or so s&p indicated up 6.5, nasdaq 18.5 oil prices have been remaining stubbornly high based on where a

lot of people would like them to be trading including president trump. up now at $72.32 a share among the stories front and center, trade tensions as well as the new effects of some testing regulations cutting bmw forecast stocks falling in european trading this morning down to 4%. major retailers are pushing back against the rewards-based credit cards merchants like amazon, target, and home depot want the right to reject some of those cards which carry higher fees. there's the rub for the merchants. currently merchants that accept mastercard or visa branded cards must take any card no matter the issuer 92% of all u.s. credit card purchases are charged on these reward cards i have one for united frequent

flier miles which are -- i don't know if they're worth anything anymore. >> they are, but it's harder and more expensive you're using more and more points >> i used to -- i don't know i wasn't thinking about it right. i used to urge family members to spend more to get the frequent flier miles. you know, i did the math i'm not sure that was -- >> no, no. by the way, you can go onto likes the points guy do you know that site? >> sell them >> you can sell them not for enough money the way to use them correctly to get the most value, unfortunately, is not -- you can't really do the upgrade thing anymore. but you could do an international business class thing, that's how you get the most value out of it >> international business class. >> that's the best you're going to do. if you can get the upgrade, i'd do it. >> lately it's been you're planning a trip three or four months away and they say maybe

three days before you might get -- you can't plan anything >> you have to plan it out eight months in advance, joseph. >> if it's eight months, you can guarantee the business class seat >> yes but you're trying to do united uni united's tough. >> that's my point what happened? >> you can do better usually amex points, you can use them -- >> come over here. again with we meet in the middle >> can we? oh, my goodness. >> this would be a first let's have becky's thing right in between us. >> okay. here we go we're going to be back in just a moment some of the -- i got to read over there though. >> they do this on others. they have people sitting so close. >> that's right. they sit on each other's laps. people tell me all the time i have the craziest job,

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♪ good morning welcome back to "squawk box" on this rainy day, this rainy tuesday. we're live on cnbc at the nasdaq market site in times square.

among the stories front and center at this hour, the fed kicking off a two-day policy meeting today. rate hike expected to be released tomorrow. steve liesman is joining us with the results of the new cnbc fed survey ahead of that hike. steve? >> as we said in the last hour, we're looking at two more hikes this year. but i wanted to look at this group, what they think about the president's trade policy before we do that, let's get right to what this group thinks about the president himself and how he's handling the economy. 61% approve. this has been pretty consistent. and 29% disapprove no matter which 40 or so folks we have in this survey, these numbers remain consistent. however, take a look at what they think the impact of his trade policies will be 59% say it will decrease gdp 35% and about 39% say little or no effect. in a small percentage, they say these are good for growth. how much

well, the tariffs are expected on average to lower gdp by just 0.1 percentage points and raise inflation by 0.1 it's about double but still not too bad considering we're thinking about growing in the 3% range. the gartman letter wrote, quote, the president should be remembered for his cuts in regulations that served the economy so poorly but instead will be remembered for his illogical justifiable support for trade protection and tariffs. how sad is that? 51% say these tariffs are a short-term bargaining tool however, about a third say it's a long-term protectionism. take a look at whether or not we'll get better outcomes. 53% say yes it will lead to better outcomes. 22% say they will be about the same and one other little factoid for you, 83% say the new nafta deal

will include both mexico and canada and maybe that's why we see all of this kind of push me, pull you on trade some days it doesn't matter. some days it does. because the market has at least judged from this survey very conflicting opinions about the president's -- on the one hand, his economic policy. they think they make come out here >> you said something i totally agree with >> what is that? >> you said you were confused. i'm kidding. just joking. just id ikidding. did you see me and andrew meet in the middle? >> i did not >> look at that gulf in between there. >> we were much closer >> we did. but -- >> for a brief moment. >> but he had an onion bagel earlier. >> i would say andrew had to travel quite far to meet you in the middle >> you know what

i know you would that's exactly what you would say. because you guys do occupy similar spots. coming up, our news maker of the morning melinda gates will in becky when "squawk" comes back live. stay with us you know, i used to be good at this. then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days.

hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade.

good morning, everybody. welcome back to "squawk box.

we are here this morning in new york where the u.n. is meeting today. we've got people from all over the world from business and from leadership who are talking about all kinds of things that the u.n. general assembly are talking about. at the same time you have the bill and melinda gates foundation hosting a summit on the progress of what's been taking place some of the goals for the global development and the u.n. joining us to talk about that is melinda gates herself. thank you very much for being here >> thanks for having me. >> i know this is a busy time for you, so we appreciate your time you guys focus and highlight some very important goals and make sure that we are kind of following up on a lot of the promises that we've made. >> yes yeah, bill and i are in new york because we're hosting an event called goalkeepers it's really to show what's the progress that's happened on these u.n. sustainable development goals that were set in 2015. and to talk about the fact the world has made incredible progress, but that progress is not at all inevitable. >> that's what struck me from

the goalkeepers progress report this year. you focus specifically on global health and eliminating poverty you all have been very optimistic where people think things have not gotten better. you've pointed out things have gotten better. the line struck with me is progress is possible but not inevitable what did you see happen over the last year. is there anything that caused you to think that? >> as you said, poverty's been cut in half as a world childhood deaths have been cut in half in the last 25 years but you see this youth boom happening now in africa. 60% of the population there is under the age of 25. so if we invest in their health and education, they'll lift up the continent. but the converse could also happen if we don't make those investments. you're going to see more hiv/aids you're going to see more deaths than we've had before. so we need to keep on yur eye o

the ball >> what you do at the foundation is important work, but kwn yi kw you also rely on government funding. things like attacking malaria or trying to eradicate polio. those aren't things you can do by yourself. >> absolutely not. it's important to know the role of philanthropy versus the role of government. we can take risks. we can show what works we can bring forward data, but then it's really government funding that has to really deal with huge numbers of vaccination. or hiv or investing in education. quality education is a place the world really needs to focus. >> we have seen a lot of governments more focused on trying to manage their own budgets and be concerned about these issues is that why you're concerned about this you think that governments may step back from some of these initiatives? >> i think that as a world, we sometimes think, oh, i've taken care of that issue already the fact that number of childhood deaths are dun or the fact, okay.

we've put all this funding into hiv/aids what we need to say is the high-income countries need to keep doing that. south korea used to receive aid then it eventually became a middle income country and we stopped funding it and it now helps fund the rest of the world. until some of these african nations move to middle income, we have to make investments and call on their governments to make the right investments in health and education >> melinda, i saw an interview you did recently and you were asked if you had a magic wand what it would be you wouldwave away or what you would do with that magic wand. you had an interesting answer. you said you'd focus on reproductive health. >> absolutely. >> why >> because when women have access to contraceptives and they can choose when and if to have children, it completely changes their lives and changes their families' lives. we know from great data all over the world now that once women can make that decision, she can

lift her family out of poverty literally. but if you don't give her that tool and don't give her education about it and give her access, you keep her in a life of poverty she's des tinned to a life of poverty. so there are 214 million women asking us for the tools that we have here in the united states and in europe. and we need to deliver them to them >> you know, i thought a lot about that because the foundation has always kind of steered clear of anything controversial because you are doing so much. you've got big goals you need to ask for help from governments to do that what actually brought you on your own personal journey to get to that point? to where you thought that this is so important. what did you see along the way >> i met women all over the world. and when i would sit down and talk to them in their homes, in their villages, in a township and really listen to them, i would often be there to talk about childhood vax sooccines but when i gave them the chance

to talk, they would say to me, what about that tool, what about that shot? they use a shot in africa for reproductive health. why can't i get? they were irate. look, i have five children it's not fair to my youngest child for me to have another one. and so finally listening to the women and coming back and looking at the data, i thought, you know, i can't just -- i can't shy away from this issue somebody has to answer those cries. and somebody has to rise above the politics and say this is important. this has to be on the global health agenda. >> was that a struggle for you personally because with your own background and upbringing, that wasn't necessarily something that you thought growing up, right? >> you bet i'm catholic and i had many discussions with my family, my immediate family, my parents, my siblings. i had discussions with former priests and nuns and at the end of the day, i decided i use these tools, i counsel all three of my children, my son and two daughters to use these tools

and i thought, toif follow my conscience women's babies are dying because they're coming too quickly and the women's bodies, they can't sustain what's going on. how can i not answer those calls? so at the end of the day, had to wrestle with my conscience and my conscience says this is the right thing to do. >> let's talk a little bit about another initiative that i hadn't realized until very recently you were doing pivotal is -- pivotal ventures is a venture capitalist. you're involved in this. you've been looking to help fund companies that were alternatively led. maybe not led by white men who were out there this is, again, something i didn't realize you were doing. how'd you get to this point? >> i founded a company called pivotal ventures in 2015 really the point is, again, as i traveled the world, i had to ask myself is there anywhere in the world where we have true equa y ty for women and the true answer is no. not even in the united states. so there are some gaps in

particular in the united states that i wanted to help fill separate from the foundation so i formed pivotal ventures one of the places i focused that company on is women in tech. women are so underrepresented in the technology sector in the united states and yet tech is pervasive. it is changing our lives and so women have to be able to have their great ideas come forward. not just have a seat at the table, but have their great ideas come forward to help change society. >> why do you think it is that only about 2% of vc funding goes to companies headed by women >> i think that industry became a boys network very early. less than 8% of partners at vc funds are women at the partner level. i don't know about you, but i think that's more a symptom of the funders, not the founders. so the fact that less than 2% of funding goes to women's companies, that's crazy. less than 1% to women of color we have to change that

i'm investing in people like aspect ventures, defy capital, female founders fund where their funds absolutely expect a return. i expect a good return but they over-index for women's businesses >> you know, there's been so much talk about this in california there's a proposed rule that would force companies to have a certain number of board members that are women we talked about this with sallie krawcheck recently she's not a fan of government legislation doing these things, but she said some day i might be because nothing else seems to be working. what's your thought on this? do you have a larger thought or is this i'm just going to put my money where my mouth is >> i put my money where my mouth is right now but i'm watching that and i'm collecting data and looking at it. there are places that sometimes quotas make sense for a time to get things going for instance, one of the countries that has the most number of women parliamentarians is rwanda. it's because the president came in and said we will have at least 40% of women

parliamentarians they're way over that now. so i don't know if that's right for the united states, but i know we need to do something to accelerate women in business. >> what have you found pivotal so far what has your research shown you there? >> one of my pieces of research also shows me that we need to create new pathways for women into technology. that first opening computer science class at college is too late we need to work there. there are great things that universities are doing to change the class to make it accessible to women changing things in high school so women want to go into tech, they know they can do that i see that i also see we have a workforce today, a workplace, i should say, today that's not designed for families and yet if you interview most men and women around the united states, they have families so we need to have a good paid family medical leave policy so if you have an elderly parent that needs care, a young child, you go out for pregnancy, you

can come back to your career we're one of only eight countries in the world -- in the world that doesn't have a paid family leave policy. that's crazy >> i don't know if everyone knows your background from before you went to duke you went to the school of business you worked at microsoft and headed up a lot of initiatives there. you've seen the corporate workplace. what was it, 1996 when you joined microsoft >> i joined actually in 1997 87d left in '96. >> so you've seen this for a long time. you have your own experiences you can fall back on this is what women are watching now in this me too movement. we see changes taking place. do you think this is taking place across corporate america and where do you think we are on this journey >> i think it's spotty right now. i think there are places where we are moving forward. and i think there will continue to be a pushback where people

will try to roll back their progress the thing that makes me optimistic this time, if you interview women who are over 60 and then you interview younger women and look at the generation in between, this younger generation is about bringing all women forward. there's a lot of guilt for women over 60. they say i made it, i assimilated, but i'm one of one. i think everybody sees we need to get better across society government, corporations, founding businesses. it can't be just in one industry we can't accept that less than 14% of women have paid family medical leave. we just can't accept that anymore. so i'm starting to see everyone speak out and say this is not right. and when something goes wrong, you see a group of voices come along saying move forward. >> you start to see more men taking advantage of family leave. is that the pathway? >> it is absolutely the pathway.

you have to say it's okay to go out and take leave one of the things is when a man takes a leave, he's more involved in raising the children it's better for him and it's better for the kids. women around the world do seven years of unpaid labor that their husbands don't do. in the united states, women do five years of unpaid labor their husbands don't do. we do 90 minutes more a day. you know, make the school lunch, help with the homework, fix the breakfast, drive them to school. we need to look at that and recognize women are working today. they're in the workforce but we have to redistribute the workload at home and paid family medical leave for men and women helps with that >> you're a mom not only of two daughters but also a son how do you look at them going out in the world and what are your hopes >> my hopes and dreams for my kids are that they reach their full potential and that anything they want to do, they can do

and that they end up in an equal relationship and i'm incredibly proud of them my son allows me to call him a feminist he believes in women having equality my daughters believe in it too i'm excited to see where they go in the world >> as well. i am excited to see where they go in the world. >> melinda gates, thank you, when we come back on "squawk box. we'll have more from jim cramer down at the new york stock exchange we'll be right back. got your hands full with your global supply chain. okay, france wants 50,000 front fenders by friday. that's why you work with watson. i analyzed thousands of contracts and detected a discrepancy. it works with procurement systems you already use to help speed up distribution without slowing down your team. frank, tell fred full force on those french fenders. fine. fine. fantastic. for ai that knows your industry, choose watson. hello! the best ai for the job.

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♪ ♪ comcast business. the company that delivers unrelenting speed in more places. is also the company that's redefining what a provider provides. comcast business. beyond fast. time to check in with jim cramer he's in san francisco with a fed meeting and we got nike earning, what are you watching today? >> i am watching facebook. it is significant and it is rare that i will say any -- these two were i think a lot of what i i would say anticulture of facebook within the organization let's call them gorillas and the

gorillas lost >> i asked them earlier right now if it matters with instagram. does it need continual upgrade and innovation i thought they already did it. in your view it is >> facebook's growth is peaked but not instagram. more importantly, it has to do with culture my understanding endlessly that zuckerberg's era is a -- he's far more free spirit and less tyranny. it is going put pressure on facebook and some of the metrics and advertisements are strong. i am out here in one market and they're big personalities. personalities do control a lot of technology. >> jim, i know kevin for years, when you look at what's happening with that business of instagram and the last year and a half where they had to take on

snap and make some significant changes, i think those came from directly from kevin in that team, i think when he and mark leaves, mark was the engineering part of the whole business just in terms of the culture of that place. i would imagine it would have anal pa impact i can't see it now >> i guess i should be definitive of what you stated is what a lot of people are thinking here. these two guys are brilliant and fun. they're not about trying to sell your name. >> jimmy, what are you doing in san francisco? >> we got drop box fire eye, fire slecurity, i kno something that jamie dimon talked about this is the progression of people trying to figure out where we are in terms of alliances and digitalization and how far are we just in terms of being able to say transcend any

sort of economic stuff that we are talking about. maybe out here we are not constrained by the federal reserves or interest rates >> jim, thanks, we'll see you in a couple of minutes. tonight we'll tune into "mad money" and some of the individuals. stay tuned, i will be right back more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges.

welcome back to "squawk box. social capital has fired multiple members of their staff. he's turning the firm into a technology, holding the company instead of a traditional vc firm he says he'll cut the firm's head count to 40 people. business reports that lay offs took employees by surprise we have reached out to social capital for comments and we have not heard back yet we talked to palihapitiya many

times. >> i know you will ask him >> final check on the markets as we yell at each other from across the set >> not yelling >> just happiness. >> we are just so far away >> see you tomorrow. make sure you join us tomorrow "squawk on the street" is next ♪ good tuesday morning, welcome to "squawk on the street," i am carl quintanilla with david faber a lot to come from jim cramer today. rebounding from the dow since its biggest loss we watched potus at the end and europe is