monday, november 12th as "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." >> good morning, everybody welcome to "squawk box" here on cnbc i'm becky quick. the bond market is closed today in open advance of veterans day but the stock market is open we've been watching the u.s. equities futures right now it looks like the dow futures are indicated down by 21 points s&p futures down by 1.5. the dow up by 2.8%, a gain of over 700 points. the nasdaq up by .7% overnight in asia, take a look at what happened you'll see that the nikkei was up but just barely it was up by less than a tenth

of a percent hang seng was up by just over a tenth of a percent and the shanghai composite up by 1.25%. active trading in the european markets. things are relatively flat cac is flat. ftse is up by a quarter of a percent. and we are watching crude oil prices this morning. saudi arabia's energy minister announcing a supply cut in december of 500,000 barrels a day. that would represent a reduction in global oil supply of half of 1% saudi said it's making the cut because of global oversupply the minister making comments talking about how the markets being down are misreading what's happening here wti still just above $60 a barrel and we have a big news of a deal sap buying qualetrics. they compete with survey monkey.

they're buying it for $8 billion in cash. that was as qualetrics was set to go public this week they offer software to collect and analyze data qualetrics competes with survey monkey which went public in september. shares of ap trasap trading at . morgan stanley who was the underwriter of the ipo didn't know this was going on we'll talk to bill mcdermott and ryan smith the smith family will make off with $3.3 billion as a result of this they took very little venture capital money early on when this company was first founded a couple of venture capital guys will make out. none ofless, we will talk to them at 8:00 right here first on

cnbc. some other stocks to watch this morning, athena health agreed to be bought by veritas $5.5 billion the deal which values the health care software maker at $135 a share will be announced today. elliott owns a 9% stake had pressured that company to sell itself you may remember earlier this year athena cut jobs fo former ceo jeff immelt and there were complicated circumstances and allegations including not just something that happened inside at his home but then elliott -- whether elliott was dredging up old sort of me too stuff to kick him out of the company. we've never seen that. >> pretty harsh maneuver. >> harsh maneuvers and the whole idea of sort of the political campaign being brought to the

business world also apptio to be bought for $2 billion and then shares of british american tobacco and imperial brands are lower in london that's reaction to the journal on friday that the fda will propose a ban on menthol cigarettes imperial manufactures kool menthols. >> apptipo >> in california, deadly wildfires continue to burn in the northern and southern parts of the state a total of 31 people have been killed it's staggering. 29 deaths from the camp fire in butte county alone the fire now matches the state's deadliest. it's believed to be the most

destructive in california history. so far it's burned 111,000 acres and destroyed more than 6,000 homes and businesses officials say it's just 25% contained at this point. >> there are still hundreds of people missing this morning, too, that haven't been accounted for. >> at the game yesterday in the coliseum you could still see smoke. >> yeah. >> crazy >> back to today's top business news we're heading over to china. the world's biggest shopping day just wrapping up and it was a record breaker i want to get over to live in shanghai with a wrapup of the singles day. good morning. >> reporter: good morning. i want to give you a rundown of the key figures. 213.5 billion yuan was raked in or $30.8 billion in terms of the growth rate here, you're looking at about 27% growth from last year. that was a touch lower than we've seen in the past remember, this is the tenth anniversary of singles day here in china for alibaba and the bar

is set very high they pointed to some pretty key success successes, in the houf you got a billion dollars of sales it gives you the sense of the scale of this event. going into the singles day there was big head winds u.s./china trades war increased competition on the main land as well alibaba tried to allay some of those fears saying the globalization trend is going to continue the middle class are continuing to come online and alibaba is a key platform for some of these foreign brands trying to sell into china it pointed to two very big u.s. brands one is apple apple was the top seller in mobile phone player during singles day beating out some of the domestic play eers. starbucks in the online shop set its own sales record so there

were big successes there for u.s. brands during singles day if you look at market reaction and premarket, shares are pretty flat for alibaba it doesn't seem like singles day is going to turn around the 16% year to date drop we've seen so far just given some of those huge macro economic head winds the company is facing. back to you. >> arjun, thank you very much. let's bring in gill luria. he is director of research at da davidson he covers alibaba. the statistics are phenomenal. 1:25 to rake in $1 billion that's hard to get your head around. >> take that with a grain of salt they opened up singles day three weeks before november 11th they have expanded singles day a lot over the last ten years. they've expanded the scope internationally. this year a lot of the focus was moving to offline retail

they take orders three weeks in advance. >> what we're hearing is sales that were pulled forward or held on to or is this something that generates additional sales for the company? >> i believe it does generate additional sales it's a made up holiday that alibaba made up ten years ago and they've been able to really expand it very significantly it's bigger than any day that we have it's bigger than black friday, bigger than amazon prime day it is incremental sales. the growth has slowed down considerably and that compares to 40 and 60% -- >> but you're dealing with a bigger base. >> it's hit the large numbers. 600 million annual users that it's very hard to grow the same rates it's grown at.

>> so what do we think overall about alibaba? we just heard from arjun a little bit about some of the trade winds that are buffeting things about at this point what's your overall take on the company? >> the chinese consumer is slowing down alibaba even admitted so on its most recent call and that means alibaba cannot grow nearly at the same rates. this is beyond the law of large numbers at this point. the chinese consumer is slowing regardless of the trade conflict the trade conflict could make it worse. let's not forget, china hasn't dealt with a lot of things and they've stopped buying big ticket items like cars and electronics. that will be a drag. they admitted so the external forces are slowing them down and they're going to have to adapt to that.

let's not forget alibaba puts customers first, employees second, shareholders third which means as things slow down, they're going to take it easy on their merchants. that's what they said on the call they'll slow down revenue growth, they'll slow down earnings growth and numbers keep going down and they have gone down all year. >> i want to thank you for joining us this morning. >> thank you >> gill luria again from d.a. davidson. >> let's get back to the broader markets. joining us now is tally ledger he's with oppenheimer funds. juri timer there's action today and happy veteran's day. should probably say that every time we intro someone or come in and out of the show. it's obviously something that we need to think about front and center but the other thing is oil i mean, as far as what's likely

to, you know, at least affect every other market because of concerns about demand, i guess is it right to be concerned about global demand or is this purely a supply issue? it has slowed this year. you see it to a lesser degree in europe we're still in the yach glow of all of the economic stimulus he'll have some 2018 to 9 or 10% in 2019. still good numbers so the demand side for oil has been robust but there's clearly some slowing and then you have some short-term concerns about supply and hearing all of the news about opec. oil is down about 20% but commodities in general are down.

i do think china plays a large role it's one of the key components that we try to figure out in terms of this puzzle for next year we know we're in this holding pattern in the u.s. market this year next year a few things have to come together. earnings in the u.s. have to slow but not much beyond 10% you have a decent valuation already on the s&p china needs to figure out some way to reflat its economy. china has been slow. the yuan is teetering at 7%. that's something we don't know how it's going to resolve itself the fed plays a role in that it's driving up the dollar it's driving up liquidity decisions. oil is a little bit in the cross hairs of that. certainly we have to take the move with a little bit of a grain of salt because they're a highly volatile asset class. a 20% decline is not the same as a 20% decline.

>> when we were back above 80, we heard rumblings of 80 and the super spike term no one expected 85 to 60 and just overnight i don't know, is that in your calculus i know you don't follow that, but it must say something about other markets. >> well, i think it's the sum of everything that we discussed a bit of cooling in global growth, that's the demand side, but there's a supply side as well that's the record production we're seeing here at home in the u.s. but i think there's also a silver lining, you know, to the extent that the strength of the dollar has been tightening financial conditions in the u.s., the flip side of that is the decline in oil, which i helped -- >> never happy oil. a lot of oil components in the s&p. it's a tax cut >> right

insofar as october and the selloff of stock, that's what i think it is. this is potentially a buying opportunity for investors through the end of the year. >> i mean, you're an international professor. >> right. >> so where's the value here do you like emerging markets now? it's been tough for six months >> it has. it's been a brutal six-month period when i think about this year and the outlook for next, i think it's really about the divergence/convergence trade between the u.s. and china. >> you mean diverge against, we've been tawe have -- divergence and c convergence. >> big discussion at the cocktail party no, not really >> to clarify, so as becky eluded to, this year's been all about -- at least through september the leadership of u.s.

equities helped by significant physical stimulus. we have the fading tail winds. >> we can't outrun the risk of the globe. >> you were talking about slowing earlier. we are face that go to a degree in the u.s meanwhile, in china they're doing the exact opposite they're doing an about face. they're actually implementing tax cuts a lot of what happened in the u.s. this year will happen for china next year. >> maybe the only bright spot in that entire scenario if that's how it played out is the dollar won't be quite as strong it helps china have more broadly a bit of a boost. >> are we still waiting for, you know, every comment or body language from president xi in relationship with president trump? i mean, you saw what happened with macron. you know, the headline is, oh,

my god, he just embarrassed trump. next thing you know he has his hand on his knee like they're best friends the same thing with -- we don't know there could be something positive perhaps in the next couple of weeks with china or you don't think so, 20 year cold war? certainly the hope is there will be a thaw. if this is, indeed, a long term containment on the part of the u.s., i would fade any coombaya moments, if you will, on trade because this is i think a longer term process but, you know, who knows i mean, china -- you know, china's stock market is down 30% from its highs and the economy is slowing china has t-- is having trouble easing you can't have a free flow of capital, a stable currency and independent monetary policy when

your currency is tied to the u.s. dollar. the u.s. is tightening, china is easing and that easing is not creating a very large multiplier because they're in the cross hairs of tightening liquidity conditions, a rising dollar as we're just talking about, this convergence. i do think that's potentially a story for 2019, but we need to see a number of things happen and trade remains a st stagflationary headwind. can at that and mexico have been resolved at the margin it's a headwind. it's one that will keep the pe in the u.s. lower than it otherwise would because either these terrorists are are have companies. i think it's a long-term

headwind. >> you're in >> it's not binary it doesn't mean the economy will go from expansion to recession. >> you see the number one state to live in, "usa today", did you happen to see that can you guess? >> it has to be massachusetts. >> in whose -- in whose world is that weather up there -- >> great schools great job opportunities. >> terrible weather. >> you know what number six was? >> what? >> what's that >> cincinnati. >> no, new jersey. >> jersey. high five. >> i mean, it was massachusetts -- >> we'll get this. >> "usa today." >> joe, boston is a great place to live. >> i love boston crappy weather i'm sorry. >> the winter is about three months -- it's about three months too long for my blood. >> the summer is like -- >> i'm very sensitive. >> the summer starts june 15th and ends august 15th raining before and snow and black slush. >> new jersey has a little bit

of everything. >> new jersey. new york is like 25. some of the great states are -- yeah. >> the best companies come here, my friend. >> i defer to "usa today." >> did you see long eye land city not sure they want them. >> that's a whole separate issue. >> did they drive on the l.i.e.? they might change their mind you are so lucky you live up there in massachusetts. coming up. >> and the patriots lost, can you believe that to tennessee. >> when we come back, democrats won the house in the mid term elections but that doesn't necessarily mean gridlock in washington infrastructure is one area where it would have some kind of a ground we'll find out if a bill is next here's a look at the biggest winners and losers in the dow. ♪ ♪

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♪ ♪ welcome back to "squawk box. infrastructure back in play after democrats took back control of the house president trump and a key democratic leaders, i should say, expressed interest in working together to invest in the country's crumbling roads, bridges and we have cgla president and ceo. we've talked a lot about the potential for some kind of bipartisan something do you think that this is -- this is -- this is potentially at least one topic they have in common is there actually bipartisan interest in doing something for real >> well, it looks like there is. they talk as if there is, and i think if you think about it, it looks like there could be a kind of grand bargain, right? because i was looking at the

electoral map yesterday. it was the scariest thing you've ever seen. the whole rest of the country is red but it's republicans rural and republicans control the senate, but the cities are select get together, figure out how you make 50 projects work for both rural america and also urban america. one place you start is broadband. i was talking to governor hickenlooper the other day big problem for him, democrat in colorado, big problem for governors all over the country how do you include people in this process. >> what do you think a bill looks like is it going to be a broadband bill i mean, would it be one offs like that or do you think there would be some all encompassing thing. i think we need a lot more leadership from washington and the white house. i think you need something like an infrastructure czar maybe in

the white house, maybe outside of the white house what we talk about is a national infrastructure council similar to the national economic count if you talk to politicians, you're talking about public works. >> you have talked about public/private partnerships before. >> yes. >> what would that look like in the context of what happened after the mid term election? nchs f >> for me that's a super question the democrats want to write that big check as one congresswoman told me, write the big check, public funding republicans want to look at private investment where would the money come from? i think the money comes from private investment 25%, maybe 25% comes from the public fund

raise the gas tax 25%. there is news for the national bank that's a lot of it how you pay for it will be the trouble. >> that's the issue. >> it seems like it's an easy issue but how you pay for it is the big nut. >> the other thing we've talked about, becky, so many times is all of the projects that we have on some of our project lists that are all privately funded, like the texas central railway project, like some of the -- ann shifts's wind projects, trans zigs projects. their problem is the regulatory and permitting pieces of this. they're stuck in that two years into the trump administration. so we see a huge number of -- huge backlog in terms of projects that don't require any public funding. >> even the keystone pipeline

though that trump went ahead and said he approved as soon as he came in is now being held up in the courts what happens >> i think this is something we have to talk about as a country, right? you look at the regulatory piece of this. it's almost like a regulatory ownership blanket that the federal government throws over the market if you look at the market, 80% of the infra strur tur and 80% of it. china's not that bad it's a big problem and it's all done through the regulatory area look at airports airports are municipally owned but you can't do anything. >> what have the lessons of europe been when it comes to selling off or at least these public/private partnerships which has turned out to be more public partnerships than private and the backlash >> right it's interesting talking about sap. i was looking at that earlier this morning sap's acquisition.

>> of qualetrics. >> of qualetrics what we're doing is getting citizens much more involved in the priority projects, what they own and getting them involved in owning some of the projects, right? it stops being a public versus elite game and becomes an our game that's what's really missing norm anderson, cgla. when we come back, president trump is back in the united states today after a weekend trip to paris. we will talk about the message delivered by fran's emmanuel macron next. right now though as we head to a break, let's take a look at yesterday's or last week's bins winners and losers

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♪ ♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning on this monday morning. among the stories that are front and center right now, alibaba setting a new singles' day record topping $30 billion in the 24 hour shopping event that is better than the $25 billion record set last year but some questions and concerns about whether it'll be able to do the same next year.

we'll talk more about that in a little bit. big deal this morning, sap acquiring survey software company qualetrics for $8 billion. they were gearing up for an ipo. that deal was supposed to happen literally within days. the deal with sap is its second biggest acquisition ever we will hear from the ceos at 8:00 a.m. eastern. private equity firm very ri tas -- veritas will acquire athenahealth let's take a quick look and the dow looks like it will open off 57 points down s&p 500 down 5.5 and nasdaq off 16 points. president trump is right now back in washington, d.c., wrapping up his first trip

abroad since the mid term elections. he attended a speech by emmanuel macron commemorating the 1 o00 year anniversary of armistice. joining us right now to talk about his speech is fred kiev. he is atlantic council and cnbc contributor. fred, what did you think of the events over the weekend? >> i was with some top republicans here in washington last night and they were sort of shrugging their shoulders why president trump wouldn't go to the cemetery in the rain the american cemetery, one of the most famous battled for the freedom. and they don't understand for a president who understands optics why he would stay out of that.

what it underscored is there is a growing rift between europe and the united states. a lot of european leaders are wondering what's going to come next from the united states. should they wait out president trump? is this going to be a permanent situation? to they have to await their own defense. there is a lot of gaming of how to protect it. our audience cares but with chinese president xi what's happening along those terms? >> it strikes me you have a situation where even if macron has somewhat of a victory, if you're actually looking where europe is, you have to worry a lot more about europe than you have to worry about brexit coming no matter how it ends up. europe will be poor for the second largest economy pulling

out. you have ground zero in the test of european governance in italy where italy is showing down the e.u. over its budget battle over austerity. then you have merck am stepping down as party leader in germany. that puts a question whether the political center can hold in germany. then when you get to the trade issues you're talking about, the germans are very worried president trump will still put on 25% tariff on autos and people are looking at that they're looking at china and then they're looking particularly at iran which could be the biggest test of the trump presidency over the next two years as he applies sanctions, tries to bring the europeans online and tries to change the behavior of iran i'm watching that issue probably as the one that will be the biggest test if he can transform the disruptive policies into actual progress.

north korea, china, trade. the next two years have to be trump looking at his legacy and turning this into agreement on all of these fronts. >> fred, help me about this. there was a comment by macro and then a tweet about europe perhaps needing to build up its own military to protect itself against china, russia, and the u.s. he thought there was a meeting between the boldt of them and they were trying to look friendly there was chilliness, the hand on the knee. i didn't know what was going on. is that going to affect trade ultimately >> well, one thing's for sure, and that's the bromance between merkel and trump is one of history. i think you're going to find the u.s. moving toward a trade agreement in europe partly

because at least the top trade officials in the trump administration want to fix their sights on china and they feel they have to get their allies back on board as they did through the redone nafta deal. it leans towards i think i can take on germany and china at the same time. there's some disagreement within the administration on that i think there's going to be a lot of drama on the trade front in the days ahead and then i think with the democratic congress, you could also get some pressure on trade to put more labor standards and higher standards in any trade deal say the bilateral deal the u.s. would like to have with japan. >> fred, the issue of tariffs on european cars and others, there was some reporting over the weekend that suggested president trump very much likes this because it's the one thing that seems to really rattle any idea

of these tariffs becoming reality. ps what happens is give you a strategic view and then a tariff view you have a divided europe. you have the germans and trans talking about strategic auton y autonomy we can't bet that the situation is going to change quickly or that it will even be different after trump is gone, therefore, we have to build a european army. that was what macron talked about. the second issue is the nordics and the east europeans are saying, strategic economy? you must be okay we can't live without the united states, we can't defend ourselves against russia the germans feel that as well. there's a feeling when i talk to senior german officials that trump is really singled them out. if you look back to what trump has said about germany back to

1990 in an interview he did with "playboy" magazine, he really has not liked german cars and he hasn't liked the way that we've paid for germany's defense and germany has taken on our markets. i don't think he's done with germany yet. there's still stock and that you would get to germany, you're absolutely right. >> very quickly, a test in whether the sanctions stick? >> yes there was a tremendous piece by secretary pompeo that outlines the entire policy. the best outlining of the policy i've read anywhere so you have the sanctions, which were implemented and even with exemptions it's going to be hard and then over the next 180 days they'll try to reduce the oil that's being received by those eight countries that got exemptions so they're trying to put more pressure on iran they would like to change iran's

behavior i don't doubt that some people within the administration would like regime change, but even if they don't get regime change, even if they can't bring iran back to the negotiating table, senior officials of the trump administration say that it's enough just to reduce the amount of money that iran would have to tie nans its proxies and to reduce the support for terrorism. you have a context with china that will continue to prop up iran russia will continue to give them weapons europe doesn't like the fact that we've withdrawn from the jcpoa, from the nuclear agreement with iran. so you've got a lot of things in play where it was a good thing that president trump was standing up to iran but now he has to turn it into something much more complex and that's an agreement with multiple parties that would change iran's behavior. >> fred, thank you very much

fred kempe is the atlantic council ceo. jobs in america, we'll get a read on hiring from the linked-in work force report. then at 8:00, our guest host is the man who ran the president's inauguration tom barrick is here talking about returning as ceo the latest investment deals and the president. plus deal news, sap acquiring qualetrics for $2 billion just before an ipo. stay tuned, you're watching "squawk x"eronnbbo he cc.

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back to "squawk box. time for the executive edge. softbank's domestic telecom unit planning a $21 billion ipo on the tokyo stock exchange it plans to list on november 19th it will retain a 66.6%

percentage squawk booze news. a bitter divorce hearing today perhaps in miller coors. miller coors produces packages and ships nearly all of pabst products, which is kind of a throw back no, that's a different -- that's -- >> pbr >> it's a throw back it wants to end the long-term partnership saying pabst doesn't pay enough to justify the deal pabst says the company's existence relies on that and that miller coors wants to break away and capture more of the cheap beer market. pabst is in a tough spot because the only other brewer in the u.s. with the capacity to produce its volume is anheuser-busch which doesn't do contract brewing so the disagreement goes to court today. where else >> milwaukee reading through that, it's a really confusing case.

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linkedin is out with its monthly workforce report among the takeaways is something we've known for awhile the labor force is tightening. here to break it down, dan roth. all this is embargoed until the segment right now. and the first thing is you are a cnbc contributor but not a paid contributor. has that been known, has that been out did you have an agent? >> we discussed this before. >> oh. i forgot >> it's my job to bring information to the world. >> for free? >> for free. it's a public service. >> it's really nice of you.

>> very altruistic >> we appreciate it. the next thing that i saw, dan, which i immediately wondered about because of the disconnect is that the first thing you say is hiring in the u.s. is leveling off that's after friday's -- when was it friday time flies but 250,000 doesn't seem like leveling off what are you seeing that we didn't see in the overall numbers? >> the same thing we saw last month. after a year of blistering hiring growth, it is not continuous still growing, but it's not growing at the pace before 3.8% increase at hiring. last month year over year and a slightly flat -- >> the 250 doesn't sound like that this is different. the linkedin data is different than the friday data >> it's different. we're also looking at measurements of people who are changing jobs, not just new jobs created. >> so is this a situation where

employered aren't hiring as much or they can't hire as much because they can't find qualified people >> it's hard to hire people. it's hard to get them out which they're reluctant to do. and you're just -- but it's also, if you look at the industries doing the hiring, it's totally changed so the last 18 months, the industries that were driving this were the big make it industries it was like manufacturing, aerospace and automotive, and construction this month it's public safety and business services. things like accounting. >> what is public safety >> public safety -- and software is the third one public safety is military, i.c.e., tsa, private security guards so a very different composite of -- for the hiring sector. >> can't tell whether this is a misquote or whether i'm not thinking about this right either cities with the largest growth shortages for skills >> new york on both lists, right? >> yeah. >> i saw that too. >> new york has the highest

shortage and the highest surplus? >> that's right. certain skills look at certain skills where there are massive skill gaps and others where there's a big -- >> new york is like 28th in terms of places to live. >> it's interesting. the city that's -- there's another one -- just because people want to live next to you. >> exactly new jersey if you look at the cities bringing professionals in, denver and austin have always been -- for the last two years have been the ones attracting the most professionals this month and last month we saw nashville suddenly start to show up could be a good place to move. but i think increasingly it's places that are -- the cost of housing is making it unaffordable for people to move to some of these. >> what do you think of the decision by amazon to do long island city? >> has it been announced yet >> no. but based on the reporting, how about that >> we're all confused why they would -- have they not been there? >> i don't have any answers.

i have questions is this even another headquarters or a satellite office is it just a way of announcing you're putting in new places >> the freeway out there, it just seems like really -- i wouldn't want to drive there >> who drives? it's all the subways which work flawlessly i'm kidding. they're terrible but if you look at these sectors, it is a tight market. it's going to be hard for amazon to hire in new york, in virginia, basically anywhere else without attracting people from elsewhere in the country. >> they can work for free. like contributors just wanting to be here thank you. when we come back, two more hours. deal news. s.a.p. acquired qutrs.alic our guest host will be tom

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happening now, oil prices are rising after saudi arabia announces a plan for a supply cut. breaking deal news s.a.p. buying qualtrics for $8 billion. qualtrics was named a cnbc disrupter last year and was set to go public within days plus a story gaining a lot of attention on wall street and main street. a number of tobacco stocks coming under pressure on reports the fda is planning to propose a ban on menthol cigarettes. the second hour of "squawk box" begins right now ♪ live from the beating heart of business, new york, this is "squawk box.

good morning welcome back to "squawk box" right here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin along with becky quick and joe kernen. we are watching stocks pointing to a lower open on wall street mike santoli will join us in just a moment with more. two, oil rising about 2% at the highs of the overnight session after saudi arabia said that opec and its partners believe demand is softenening. we'll bring a live report from one of the energy conferences in a bit. three, deadly wildfires in california more than 200 people are missing today. we're going to head there on the ground for a live report but first, this morning's top corporate stories. s.a.p. is buying data analytics start-up qualtrics for $8 billion in quash qualtrics was named a cnbc

disrupter last year. the ceos will join us at 8:00 a.m. eastern time for a first on cnbc interview athena health has agreed to be bought for $135 a share or $5.5 billion the deal is announced today. owns a 9% stake in athena health and pressured the company to sell itself. you see the shares up over 3%. alibaba will send more than a billion in relation to the sales. and dan loeb says, quote, while current u.s. growth remains above trend, helping

will combine with an increasing drag from tightening financials will combine with an increasing drag and tightening financial conditions we expect to be net sellers over the next few months if markets rally. >> all right now back to the markets. mike santoli joins us on set as we prepare for another week of trading as we do every week it seems like doesn't it >> just about. at least once a week we prepare for another week of trading every week, don't we >> we do >> yeah. only seven more this year. the time's coming short at this point. so what's interesting about the dan loeb stuff is i think that actually kind of fits with a bit of a consensus out there af piece today about the preference of the market right now for what you would call quality stocks in the market it's not the same as value it's strong balance sheets, lower debt, stable businesses, high profit margins.

these type of good -- >> procter & gamble. >> there's etfs for everything including this quality style factor sphq is one of them. it started a few months ago. it hasn't been since the market pulled back. it's about a -- about a percent advantage over the last month or so what's interesting is the message here if there's a message so all the things loeb was talking about. financial tightening, rates going up, companies with a lot of debt, companies dependent on fast growth, cyclical companies not in favor right now health care is up 11% year to date that's very much in line with quality. so the question is this kind of the market kind of hunkering down for something more difficult in more volatile markets. they tend to outperform. and there's just a lack of confidence that the cycle is going to have that >> what you're describing is a real shift in sentiment where we

used to be conditioned to buy every dip. now you're talking about selling every rally? >> i think that's part of this i think it's much more about preference okay, if i'm going to be a buy and hold person, what do i want to hold for awhile if, in fact, i don't think this cycle has long to go that is something going on tactically right now where we did get this nice bounce in the market it really was just a bounce at this point we have to see if it develops. the other thing i'm curious about with the rotation is we've had these head fakes before. in 2016 everybody wanted low volatility stocks that paid big dividends. that didn't end up being the thing to do for the next two years. >> was apple ever a faang stock? >> well, people used to add the "a." >> but you're saying don't put it there >> it's a different character of business it's there's this magical global network that's going to grow forever.

which was the premise behind faang. obviously it's a hardware business it was also a lower valuation. >> on "60 minutes" i saw they're not part of the evil trivert i love when tim cook gets self-righteous it's not his business anyway but if i were at the other companies, i'd be like, well you -- what the -- >> i think there is some of that >> it's awesome. >> i think tim cook could say, look a long time ago at apple we made a decision not to get into that business. >> listening to it last night, number one, i was thinking why am i such a mooch and not complain about owning my own privacy? and number two, if we ever do stand up for ourselves, that entire business model is not going to be nearly as profitable as it is right now >> and facebook has been moving towards that they've been tightening their privacy concerns it's become less profitable.

that's part of the concern. >> they're not saying your data is now yours >> they are stepping in saying we're not going to see -- >> was mark warner on it last night? he's the one that talks about it >> they had a sound bite from mark warner. a quick one. the 31-year-old guy that spearheaded the whole eu initiative you know, i was watching football and i saw it was coming up on "60 minutes. i was like, you know what? >> homework. >> no, i actually have to watch "60 minutes. maybe lesley stahl won't be interviewing anyway, i was able to watch it it actually was not bad. anyway, thank you. now saddling up to the set, joe seidel from blackstone and sarat sethi.

after the midterm stocks go up typically and santa claus normally brings some type of goodies with him why is everyone so bearish why does everyone think we can't go anywhere? >> i would describe myself as a stubborn bull. i think the markets are going to end the year higher than where they are today and people are mostly focused on all these negatives. there are other positives out there. when the markets moved down, one thing worth looking at is there was no contagion there was low treasury volatility the message is this is an oriented problem so to me it just says it's equity investors that are overly focused on, you know, these risks or problems that are going to be coming in 2019 what they're ignoring is third quarter earnings being up 27% year over year when we started the third

quarter earnings cycle, consensus was for 19% earnings growth and if you look at corporate profitability, companies are paying the lowest they have in 25 years that's not something that eclipses at the end of this year that continues into 2019 i look at the environment out there and i think the markets are going to head higher for the rest of the year. >> you mentioned the bond markets. does oil ever sniff things out if so, what does it sniff out. >> our view is you're getting a head fake from the oil markets >> supply. >> supply issue. we had the same thing 2016 when oil goes down, people look at it and say that's a demand issue. but we've seen companies are not talking about that >> you'd stick that in some type of model to figure out the behavior >> you try to see what it correlates to. the problem is all it's telling you is that there was a decision by opec to pump more >> $85 to below $60.

>> when oil goes back to $85, $90, the market gets really scared but even in light of all this, all your cyclical stocks are down right? the airlines are up, yes but -- >> that's because it's such a small sweet spot for oil prices. 70 bucks and everybody relaxes >> the global isn't down as much where the dollar is. >> but to your point, we agree that cyclical stocks are priced as if we're going to recession what do you do go to secular growth those stocks are getting killed now as well too. when you look at everything out there in terms of all the outputs, it's not like we're walking into a recession i think next year is going to be an interesting -- if you are a long equity holder and you think there is some growth, there's opportunity than staying on the sideline >> i have a question for you

guys whether it is a signal of something. s.a.p. buying qualtrics. this is just another example of a unicorn that was about to go public that basically decided i don't want to do that right now, i prefer to get bought we've had now probably half a dozen of these situations literally in the past 12 months. what does that say about the confidence ceos have in this market now or do you think it's something else >> top line growth is important. ibm did an acquisition as well >> i'm not talking about for the b buyer. i'm talking about the seller >> in today's market -- >> you think it's -- well, this is an all-cash deal. >> a lot of these are all-cash deals. to us that means if you're a seller with these really high valuations, probably a good time to get out. >> what does that mean, you're a sucker >> no. these are the companies looking for growth >> so it's a strategic buy >> exactly they're looking to grow the top line at this point some of the large

tech companies would become so large that you can get something like this that could be accretive. >> let's say you're a computer program, you're artificial intelligence and you see oil prices down 20% and cyclical stocks really weak and the fed raising interest rates and -- well, you put in some cramer input about the pockets of weakness in the economy. you put in trump saying you're going way to quick with the fed. why not think that the fed is overshooting too much and that a recession is more near term than people believe people say no way 2019 they say 2020, 2021. how do we know we're not getting signals. >> if you look at the consensus estimates, they are looking at the yield curve, the 10-year treasury yield topping out around 3.4%. and then a recession i think what everybody's missing is that the seeds of the recession are going to be in

excess capacity or like an economy overheating. there's no evidence of that whatsoever i think we end up going a lot longer than expected in this cycle. which means we might get a cyclical dip as 2019 has to digest really fast or strong earnings gains from this year. but it argues we have a lot of years left if you look at the economy, for 50 years the u.s. economy grew at 3.1% up until about 2008 when it lagged. it's not the economy having to close this gap, but our companies have been geared toward 3% gdp so long, when you take a decade of 2% growth, you don't have excess capacity there's no evidence we have an economy that's about to overheat i think the cycle goes on for years longer than people think >> in other words, the fed should stay the course everything you're saying there -- another question is can the stock market absorb that we're going to go into december,

everybody agrees then two or three next year, there's eight meetings >> and again, the fed is going to look at the curve you've got a choice of that point. but if growth is still there, you could still have steady growth but a flat to upward curve and all the naysayers at that point will come back. >> i want to know if you could ever overshoot and cause a recession at like 5% which historically seems so low. but on a relative basis, after you borrow $21 trillion -- >> a long way to go to 5%. >> but is that -- when you look at how money is treated and the relative value of equities, 5% is not a great -- >> especially if you look at debt payments. >> we were around 5% before the crisis 5.5%. >> is that enough to choke off an economy >> depends on where the inflation number is. >> i think you need like 18% to choke off. anyway, thanks joe and sarat

and mike santoli. >> good to see you very quickly, the president tweeting moments ago just returned from france where much was accomplished in my meetings with world leaders. we pay for large portions of other countries' military protection hundreds of billions of dollars for the great privilege of losing hundreds of billions of dollars with these same countries on trade i told them this situation cannot continue. it is and always has been ridiculously unfair to the united states. massive amounts dot dot dot. which we have not got the third tweet on that stretch yet. again, all of these issues coming to the forefront this weekend. trade is in the backdrop we will bring you the third section of that tweet when we see it when we come back, the father of virtual reality swings by the set

first as we head to a break, check out the faang stocks we're going to group apple in with it now even though we kind of said it's a different breed stay tuned you are watching "squawk box" on cnbc [ phone rings ] what?!

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♪ welcome back to "squawk box. a story in "the wall street journal" this morning catching our attention on the front page. it's titled "why did facebook fire a top executive hint it had something to do with trump." the story focuses on palmer luckey he came under fire for political activity he donated to an anti-hillary clinton group. and joining us to talk all things tech, jaron lanier. he works with microsoft but we should say he is here speaking only for himself we want to talk tech and vr and all sorts of things. but i want to talk politics for the moment in the valley and what your take is on the idea that palmer may have been fired, in fact, for his political views. when he was interviewed -- when we had him on the air, he sort of danced around it but

effectively said i didn't leave on my own volition. >> look. i wasn't in the loop for that, so i can't tell you why he left. i can say that i feel certain it wouldn't have been for political views, per se. i don't think anybody in silicon valley is going to get fired because they're conservative or liberal. i think there's a disconnect with people drinking our own whiskey. like what happens is our software tends to make people kind of irritable and paranoid there's a wacky quality that comes out on social media. when somebody exhibits those themselves and the recent example is elon musk that's when people start complaining. i think it was like that i think he was going off the deep end the thing is, it happens all the time. >> you don't think it was politically oriented >> i know people in silicon valley who are far left, far

right, center. i think what really bugs the rest of us is when they get really cranky. when they display the signs of weird cranky social media addiction, like it's really hard to tolerate. publicly, yeah >> can we talk about social media addiction. it's something you've written about. the idea the social media addiction is making us all cranky and crazy and the responsibility the tech companies should have in all of this >> yeah. well, i mean, nobody planned it this way but it just turns out that when their engagement algorithms from companies like facebook are trying to latch on to emotion and amplify it so people get more drawn in, it's a flight or fight emotions people tend to get angry or irritable. and you see this personality rise in the world. that i think is the problem. when we ourselves succumb to it,

it's a problem. >> as a technologist, do you think there's a research to it or the toothpaste is out of the tube >> to me what runs the world is financial incentives, right? and so right now the business is very much run on a model where the financial incentives are to sort of engage people. people don't pay directly for services on facebook or google and so forth it's third parties who pay because they believe they can influence those people everything is based on influence. >> do you see a model, a business model >> i do. >> what's it look like >> people buy services and sell their own data in other words, it becomes normal real business with actual money. here's a great example netflix. you pay netflix, they give you video. suddenly we have peak tv everybody loves it what's wrong with that >> if, in fact, facebook were able to continue to make the same amount per person, they would be charging the equivalent of $100 a year at least in the united states. do you think that there's enough

people who would pay $100 a year -- by the way, that would be on average. if they kept the exact same number of users. and do you think that even works as a model >> it's a similar estimate it's what people pay for netflix. on facebook you'd also get paid. when you make a viral post or something, you should get paid because you're adding value. the whole economy would grow more people would be able to afford facebook. in other words, capitalism would happen the magic of market places would grow the pie for everybody >> it would be good news for the giants out there bad news for start-ups who want to grow the same way >> no -- >> when you already have a hundred billion people using your service, easier to say you want to pay to be on the service. >> what's happening right now is that start-ups have to get bought by a small number of jients we love buying them. that's great but if there was more of a real economy, then there'd be this

huge room created for start-ups and medium sized companies that would make money in the ecosystem instead of only the giants once again, the magic of marketplaces could get started if only we treat it like a real market. >> the manipulation of news and the responsibility the tech companies are going to have. given that under your model, people are going to have to try to put out the craziest headlines they can whatever they think will go viral. last week we had the situation with the jim acosta video that appears to be manipulated. the one that sarah sanders pushed out what responsibility do tech companies have in all that >> once again, financial incentives if you look at the world when people paid for newspapers, you did have some outrageous -- you know, you had the national enquirer that would put out fake headlines. but overall, real news won real news had more space on the news stand and was a bigger

business i believe in people and i believe that the market would choose real news if it was given a choice right now in the manipulation economy, it's not even really a choice. >> we want to thank you. it is a much longer conversation jaron lanier is the author of "dawn of the new everything. we appreciate having you this morning. >> hey, thanks for having me coming up, tobacco stocks under pressure after the f idas threatening a ban on menthol cigarettes the story when we come back.

not long ago, ronda started here. and then, more jobs began to appear. what started with one job spread all around. because each job in energy creates many more in this town.

♪ been on a dave matthews kick welcome back to "squawk box" here on cnbc live at the nasdaq market site in times square. among the stories front and ter right now, apptio is being bought at $30 a share. 53% premium to friday's closing price. president trump just tweeting this this morning just returned from france where much was accomplished in my

meeting with leaders bringing up the fact u.s. must be treated fairly, it hasn't here's the rest of it now. hundreds of billions of dollars for the great privilege of losing hundreds of billions of dollars with these same countries on trade i told them this situation cannot continue. it is and always has been r ridiculously unfair to the united states. now we're onto the third tweet money spent on protecting other countries. we get nothing but trade deficits and losses. it is time these very rich countries either pay the united states for the great military protection or protect themselves and trade must be made free and fair the debate and conversation over the weekend in paris continuing on the role both of the united states and the rest of the world and that what relationship looks like take a quick look at futures ahead of the open. dow looks it would open off about 46 points down

>> in other corporate news, fda planning to propose a ban on menthol cigarettes found menthols are harder to quit and likely pose a greater health risk. two stocks to watch. british american tobacco and imperial brands. both getting hurt today. and the grinch stole the box office this weekend. the latest take on the dr. seuss holiday classic scored number one at movie theaters. "the grinch" is estimated to have snagged $78 million worldwide just on the first weekend. i have to say i was down at universal studio over the weekend, grinch was promoted everywhere >> yeah. the sorkin boys saw it on saturday >> kyle loves you too. he really does but when he looked around the park and saw the minions, the

grinch, harry potter, he said wow your company owns all this he was really impressed. >> yeah. i've tried to -- you know. >> it's amazing. >> the universal brand is awesome. oil prices rising overnight on word of a saudi-led supply cuts steve sedgwick joins us. >> reporter: i'm here in abu da bu already so much going on it's like a mini opec meeting. the russians were there, the saudis were there. along with the u.s., they are the big three oil producers in the world. i went to a meeting just like five or six weeks ago where they were talking about putting as much oil as they could on the table. now they're talking about taking a vast amount of oil off the table. what an extraordinary turnaround in six weeks and the key x-factor here are the sanctions over iran that weren't. the waivers came in and that's big news the fact that now the saudis and

their allies potentially are going to take a lot of oil off the table as well. whether the russians take it off the table remains to be seen another bit of news out of abu dhabi, i've talked to the ceo of aramco according to him, there is still going to be an ipo of aramco could be around $2 trillion. he says it will still happen they've done too much ground work to let it go. he says the time frame is still 2021 that to me sounds like the long grass, but who am i to say back to you guys >> okay. thank you for that we look forward to more. coming up when we return, this morning's top stories plus as the nation observes veterans day, we are going to be joined by david petraeus who's now working on getting vets back to work here at home then later this morning, you

don't want to miss david faber's interview with the ceo of general electric catch that at 9:00 a.m. eastern time "squawk box" returns in a moment

welcome back, everyone on this day where we remember veterans day, it was officially

yesterday but today is the day of national observance, we are welcoming our next guest who led all coalition forces in iraq and u.s. and nato forces in afghanistan. his current mission is getting veterans who have left the battlefield back to work right now we welcome david petraeus he is retired four star general. thank you for being here today >> good to be back with you. >> first of all, we appreciate your service on this day and we thank you for joining us >> thank you. >> let's talk about what happened with vets at work hired 12,500 veterans. >> that's since last year since i was here last year i think it's now 62,500 overall. by the way it's veterans and spouses. we believe they also need the opportunity and should be counted in this. our biggest emphasis here is with the portfolio companies that we have in which kkr is invested to provide our veterans not just a job but a career. and the difference is that a career has upward mobility

opportunities, it involves investment in the veterans, training, education, mentoring, and all the rest and that's what the veterans really want. and they have to be careful not to jump on the first job that goes by as they leave the service. but the career opportunity, i think, is what wier trying to provide that is so significant >> i had seen in an ad somewhere that they spent six weeks in basic training to learn to become a soldier he got five days coming back to learn being a civilian again what are the challenges they face >> there are a lot of challenges first is how do you translate what are military unique skills like an infantry tank man or something. i think at the end of the day is what's more important is for our veterans to remember they not only bring these skills, they bring values, work ethic, unique experience, leadership capabilities, and also this

tremendous ability on teamwork and to feel this intense desire to never let down those on your right and left these translate very, very nicely, we find, into the workplace. albeit with some specific training and education again to provide that career opportunity rather than just a job >> where are the industries this works best >> we have a number of them. some of the i.t. industries are doing well with these. we have landscaping, huge, the biggest in america where vets have been great supervisors and this type of thing obviously you have trucking industries that find this very attractive really there's no unique industry in which it's perfect except in those that are direct translations medical to medical or something like that. but in this case of the normal population, again, what we find is that they are able to

translate their work experiences into great career opportunities in this workforce. >> general, while you're here, i'm hoping to tap your expertise on other areas we've been talking about the sanctions against iran and what they might mean, how important they are, and the impact the the oil markets right now. you've been on the battlefield seeing iran taking oil money and use it for nefarious reasons what are your thoughts >> these sanctions are being reimposed because of malign activity by iran specifically iran is trying to try to create a force like h hezbollah. they'd like to do the same in iraq they'd like to do the same in syria. of course they're also causing mischief in a variety of other

places that's the reason for the imposition of course also the threatening missile program they continue to develop. the stananctions are being done carefully to make sure as we ramp up and others increase their production that that compensates for what will not be going from iran. that's why you have some of the allowances for certain countries to import from iran even as the sanctions are reimposed. so far that has the worked well. and it may move a bit back and forth as others say they may be controlling what they're producing. i think it's in everyone's interest to keep it in this band if it does spike, you could have effects on the global economy that would have problems >> you mentioned saudi

what do you make about the vision 2030? >> our foreign policy obviously is a result of values and also interests. we have very, very significant interests there, but we also have significant values. and as our leaders have been very clear, those values are clearly being tested given what took place in the consulate in turkey over the long-term, i think the real story here is whether the business community can regain confidence in the investment climate. is rule of law in saudi arabia going to be sufficient to have outside investment without which vision 2030 is not going to be viable >> what do you think the business community needs to see? >> i think it's going to take a period of time where again there is transparent, open, accountable rule of law in the kingdom. by the way, we should all hope that this does materialize

that this will be the case because we want vision 2030 to succeed. we want to see further moderation and religion that the crown prince has been pursuing more opportunities for women but not some of the other activities that have brought a lot of this into question. >> sir, we thank you again for your time today. >> pleasure to be with you >> david petraeus, retired four star army general. also chairman at kkr global institute. coming up, general electric shares under pressure again this morning. we're going to talk to bill cohn he's certainly working on the new book on the rise and fall of ge then at 9:00 eastern, don't miss david faber's live interview with ge's ceo larry culp stay tuned "squawk box" will be right back. , attractions, and experiences in destinations around the world! like new york! from bus tours,

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welcome back to "squawk box. we continue to follow shares of general electric this morning. take a look at what is going on. because jpmorgan downgrading that stock right now it's at 8:$8.55. they're calling for it to be at $6 taking a look at what's been

going on the past couple of weeks, months, years, decades. the ge ceo is here there are lots of fingers being wagged at certain people being pointed. and the question is who is to blame? i know you're early on in your assessment of this, but i want to start there then we'll figure out where this company is going >> look. it was once upon a time the world's most valuable company. $600 billion market cap. that doesn't disappear overnight, as you know, so mistakes have been made. to use the passive voice for a long period of time. >> i know you need to talk to a lot of these people to make this book work, but let me lay out a couple of different arguments. >> you're going to make it difficult for me >> i am. there's one argument that says the ground work for these problems was laid a long time ago and is at the feet of jack

welch. that is one view there is another view that actually the losses -- you watch the losses get built up during the jeffrey immelt period. he was working on transactions including the sale of nbc universal. that was at the wrong time >> do you want to co-author with me this could be great. >> it could be his fault. >> uh-huh. >> it probably can't be john flannery's fault maybe he should have had more time to figure this out. and we talk about this new ceo that's going to be on with david faber in a bit about what he can or can't do with this company. is this is a company headed to -- >> the "b" word? >> the "b" word. >> so, a couple of things. first of all, ge was at one point the ultimate con grom rat,

the ultimate arm attached to it. ge took its aaa rating and attached a financial unregulated financial business to it which was a brilliant move at the time why not leverage your ability to get access to cheap credit in an unregulated way and go to town with it. basically that's where i started my career was at ge capital. and it was a machine >> was it smoke and mirrors though >> it was not. so whether jeff immelt should have said in 2001 -- don't forget, he took over four days before 9/11. so he was faced with 9/11. that would have been a perfect time once they'd gotten through that to say, you know what this isn't sustainable at 40 pe. we need to do this, this, and this that wasn't his style. jeff's a marketing guy, very personable, great salesman.

>> if you have any sympathies in this situation, where do they lie? >> sympathies lie? my sympathies lie with, you know, trying to figure out what happened here. there's a dead body on the ground and what happened here? if you believe steve tusa which is the ax in the stock, he's been covering this company for 13 years he basically started covering it when immelt took over. i mean, the guy has been right >> so i was there from '91 on. so i understand what was going on >> and i was there from '87. >> right so let me ask you one question the deals that immelt did starting with amershen he did a lot of them >> so did jack. >> jack might have bought low and sold high though >> that's the difference >> is there a deal where immelt either didn't overpay for what he was acquiring or get less

than what it was worth for what he was selling can you name a single one? go all the way through the oil and gas, go through power, go through nbc. and that's one question. number two, i heard anecdotal evidence that in the trench that it wasn't nearly as good as -- i mean, it still worked. but i heard there were quality issues i heard so many different things >> while immelt was there. >> i think so all of that. i haven't studied yet all of the acquisitions that jeff made. >> you haven't done that >> no. can you believe that certainly the bigger ones we all know about, he bought too high, paid way too much for -- >> baker hughes. >> and sold cnbc >> right before the crash in a big way over -- >> big time in subprime.

financie ining themselves >> i heard it was much bigger than it was before >> the tail on the long-term health that john flannery took a $10 billion write down that is a huge problem >> does anyone get in serious trouble because of the accounting stuff >> well, i mean, we have the justice department looking at it we have the s.e.c. looking at it >> i mean you. >> i've heard the fraud word, yes. >> it's a power business, you mean >> well, tax to the long-term care business. what do they know? when did they know it? what do they know? they've taken a $15 billion writedown. >> the question comes down to is it ineptitude or fraud >> that's true >> the way i use to explain it back then, there was westinghouse and ge. they looks very similar. westinghouse went by the wayside. ge went from a billion to -- i

don't know what jack had $9 billion in revenue and went to $3 hurk$300 billion it was the envy of everyone. i don't know if there was legacy issues but to ask whether it's welch or immelt, i don't know how that's in the same universe of questions. >> the only question is jack as we know was a master of quarterly reports. >> did he manage the business or manage the earnings? >> he certainly managed the business and he inspired people >> that's his answer to that >> correct and a lot of people think he managed the earnings >> ge capital is a candy store >> you look at the new ceo who will be on at 9:00 >> i can't wait for that >> your sympathies are with him, i think, perhaps but what do you think -- >> he's got a tough hand. >> what do you think is going to happen with this company when you see the stock downgraded to $6

>> and more to the point steve tusa said it's got a hundred billion -- the bear case scenario has a hundred billion of debt and no free cash flow. that does not sound like a good scenario. >> so how brave do you have to be to buy in right now >> very brave. >> you don't think that's an easy call? >> i don't think it's an easy call there are potentially hidden liabilities that have not yet come out more of the same more this long-term health care is a big issue there's more coming. i think the problems in the power business to me to take a $22 billion writeoff on a business that still exists and there's still billions of people on the planet. >> what should i do with my options that are strike price 43 that didn't get replaced >> go outside here and sell them >> what do you try on a nelson peltz miss

>> a billion and a half dollars flushed down the toilet. >> come back we should talk more about this bill cohan we will hear from ge later this morning. ceo larry culp is going to join david faber at 9:00 eastern time when we come back, oil prices rising after saudi arabia tas oua pplkabt suly cut we've got the broader market implications next on "squawk box. i am a family man.

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still to come this morning, s.a.p. is buying qualtrics for $8 k $8 billion cash. and guest host tom barrack will join us when "squawk box" returns. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪

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breaking deal news s.a.p. buying qualtrics for $8 billion. we'll have the first interview with the ceos just minutes away. crude prices on the move after saudi arabia announced a surprise output cut. we'll show you the reaction in the markets. and stocking under pressure. we'll talk about the volatility with tom barrack the colony capital ceo will tell us where he's putting money to work as the secofinal hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box. good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin our guest host, tom barrack. how you doing? >> i'm great how are you?

>> it's great to see you meanwhile, the stock market is closed due to veterans day 63 down on the dow nasdaq down 23 crude prices, something to be watching they're up today up about 1% after saudi's oil minister announced an output cut for september but in bear market territory. we are watching three big stories this morning number one, alibaba setting a new singles day record with more than $30 billion in sales in just 24 hours. number two, tobacco companies under pressure on reports that the fda is planning to crack down on menthol cigarettes two companies that make those cigarettes, british american tobacco and imperial tobacco are both down sharply this morning and number three, deadly wildfires in california. more than 2 hurk00 people are mn

today. we will take you there for a live report at the bottom of the hour s.a.p. buying qualtrics, a data analytics start-up, for $8 billion all cash deal comes just before qualtrics was set to go public this week qualtrics competes with survey monkey which actually just went public in september. we had that ceo on the show. shares of s.a.p. in germany trading off this morning down about 4%. bill mcdermott and ryan smith joining us in just a couple of minutes first right here to talk all about the deal also, athena health has agreed to be bought by veritas capital. the price tag, $5.5 billion. the stock market halted this moment, so we will hopefully see a press release in a minute. reuters said the deal at $135 a

share will be announced today. and elliot pressured that company to sell itself earlier this year. hired former ge ceo who was then ousted and our guest host was one of president trump's biggest electi supporter during the elections our guest host for the hour tom barrack. tom, thanks for joining us not since the return of steve jobs have i seen anything with such excitement. because you're returning as the ceo to colony capital, the company you founded. >> it's like watching pain drying >> the travails of colony capital, you were focused on other things notefully one of the early backers of president trump

but what happened? are you still involved with the day-to-day operations at all and some of the decisions that were made that did harm colony quite a bit? what exactly went on >> sure. i was still executive chairman eventually the responsibility all comes back on me bottom line is we missed it. we had a big merger with northstar which is a great company. everybody in the alternative asset business, aum us yooed to be the mantra. we had an investment management toggle it was a reit because it had a great dividend and contractual income but the business going forward is really using that balance sheet for third party capital for fees and promote so the merger was more complicated and difficult. the assets were wrapped in unbelievable complexity and took longer meshing the cultures as you talk

about a ge and other corporate entities it's never easy. so we got tagged a bit on assets and it's just a rebuilding mode which is fine because we're now at the end of a cycle. what the end of that cycle looks like, nobody knows but i think it's a moment to run to capital preservation, monetize, keep the dividend solid, and build a balance sheet for when these markets recorrect. >> okay. at northstar, so it's fair to say that the assets in your view were overvalued at the time of the merger did circumstances change that made things i don't know did things deteriorate after the merge? >> the health care industry changed. we had a big retail distribution

business as a result of legal changes and we missed the underwriting assets. >> with northstar. >> so that's the bottom line but it's not an irretrievable problem. you're dealing with 20-year assets that ebb and flow on contractual income the advantage of a reit, people always buy it for the dividend it doesn't matter what you do going forward. the dividend is perceived as return of capital. but when you say recorrect of the markets, what do you mean? what's going to happen, you think, in the markets? >> i've probably been at it too long all my young guys and gals want me to leave the room in saying it just feels as though everything is surgically priced to perfection. and if you look at the debt markets and i think what you're going to see after the crude markets is the junk market will start to correct the leverage loan market will

start to correct you're financing it at seven times with debt and it's the same in the real estate market so as everything becomes more efficient, rates are still contracting. that's always a dangerous place. so i think what we have is the advantage to recycle and curate assets we have high yielding assets we're monetizing like crazy. we sold a billion five last year we raised almost $6 billion in outside equity and i think when the markets correct, there'll be another intervene i intervening -- >> that is very similar to what we heard from sam zell who was a guest about a week and a half ago. when he looks at these marks, he's concerned for all those

reasons. and gagain, because risks are being looked at again. >> it's inevitable too much liquidity too efficient. everybody's put risk aside and yet the utilization of real estate is changing we worked it on trades at a five times multiple it's a bizarre marketplace. >> to clean things up, you're not going to be expanding. you're going to be making sure everything is in order with what you've already got, i guess. i hope you didn't tell president trump this he's going to be screaming at the fed.

not so raise rates you told him things are this dire in terms of valuation. >> he's screaming at the fed anyhow right? every president has screamed at the fed. and the fed -- >> did you tell him you're somewhat negative on some of these things >> i don't dare to tell him or give him advice on those type of things >> okay. >> he understands. and steve mnuchin is probably the best secretary of treasury we've had in a long, long time they all get it. right? it's a balancing act of where you take these markets in the future and as the fed stops buying long and as the eu then follows that lead and if japan follows that lead, it's not interest rates that are the problem it's liquidity and if that pulls out of the marketplace, you'll have an issue. >> let me ask you on colony, there was a very tough article in business week about you and about colony itself. one of the issues that it talked about was not just the relationship with the president

but the relationship with some of your clients that you wor working on behalf of certain points for the president, certain points for your investors, some of which then came into conflict, if you will. and those became upended or confused what do you think about that >> that's a lot to think about i'm a backer of journalists even when it's negative to me because it creates a dialogue. the dialogue in the middle east was very simpl this president had very little paint on his middle eastern canvas it wasn't his job description before he became president so he needed relationships and i'm kind of a sophisticated rug salesman in the middle east. i'm lebanese it's a culture i grew up in. i've had relationships with all of them for four years

i've had saudi partners, qatari partners and his father and before that, mbs and his father so the idea was never the arabs wanted something from the president. they had been starved for dialogue president obama had a much different playbook it was different i iran and the shias were the ones he was focusing on in addition to the muslim brotherhood and egypt. so the gulf was looking for a dialogue all they wanted was a fresh canvas to be able to paint, this new picture of the middle east and jared kushner especially was interested in it he said perhaps there's a possibility of finding peace in

the middle east which really wrapped around israel and palestine at that point in time. that took relationships with all of these individuals so i was happy to be a liaison in creating those relationships but it had nothing to do with them influencing the campaign. there was zero flurns or attempt to influence and the president and jared and then rex tillerson, now mike pompeo, are the best equipped at figuring this out. i was watching general petraeus and was saying it's so amazing watching these unbelievable generals and military people like general petraeus. and pompeo is one of them. out of west point, harvard business school. as you're talking about crude, the balance of all of these tribes and flags is quite complex. after the marshall plan, we've had no playbook there.

other than to keep everybody off balance because it was to our benefit in the west. what we needed was oil and to the extent those regimes and monarchies were off balance we could control it. i'm happy to take the hit in the press. when you fly in that region, it comes as part of the territory it's a more complicated story. >> we will have you for the hour we need to talk about so many things president trump working with democrats, all types of stuff, whether we get anywhere. maybe you can tell us more about tuesday night, you know, if something comes to mind. let's go a break and we'll see what we can get out of you coming up, the two ceos behind the deal of the morning s.a.p. buying qualtrics. we'll talk to s.a.p.'s bill mcdermott and qualtrics' ryan smith. then ann winblad is here

we'll talk to her about a drop in the faang stocks. i think we're adding apple back in and don't miss david faber with the ceo of general electric larry culp that's live at 9:00 eastern. stay tuned you're watching "squawk box" on cnbc [ phone rings ] what?!

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by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. welcome back to "squawk box. big deal this morning. s.a.p. buying qualtrics for $8 billion in cash. qualtrics was named a cnbc disrupter last year and planned to go public this month. joining us now on cnbc first interview, bill mcdermott and ryan smith we thank both of them for joining this morning just after the completing this deal good morning to both of you. i'm going to start, if i could, actually with ryan in this case. because ryan, you were supposed to have an ipo this week and from what i've read now, it seems that this deal was going on in secret on one side while planning an ipo on the other what happened?

did we just lose him i think we just lost him we will try to get him back in just a minute. but just to give everybody is sense of the reporting on this, the company had planned to go public within days goldman sachs and morgan stanley were actually running the book on the ipo meanwhile on another side, frank's old firm was working on this both hands were not talking to each other this is one of those unicorn deals. one of the many unicorn deals that happened in the last couple of months now where big tech has bought them literally within moments before an ipo. it seems to be a trend i don't know if we're going to be able to get them back, guys do we have them? i think what we're going to do ndrylip in a quick break a t to get them back

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okay we are going to try this again our big guests of the morning just pulling off a big deal. bill mcdermott and ryan smith. can you hear us, guys? >> yeah, we got you. >> okay good okay we got you so here is the big moment.

you were supposed to have an ipo in just days what changed for you >> yeah. so we were planning on ringing the bell on thursday i was home this weekend just to take a break after a week on the road it was going really well we were 13 times over subscribed with the best ahead of us. we had the opportunity to combine with s.a.p. and change the experience forever i think my conversations with bill, it's something that we only dreamed of, that we could make this happen and it's pretty special. >> bill, this is the second largest deal you've done after concur what led you to this moment? and how quickly did this come together >> well, andrew, we're reshaping the enterprise application software industry. and what led us to it, all ceos you talk to want to run their companies on an end to end bays is

they want to deal with their customers on every channel they want to fulfill and that requires operational data s.a.p. touches 77% of the world's transactions but the operational data doesn't ask the right question it doesn't say why does the customer feel a certain way about your brand, about your products, about their experie e experience and this new category called experience management is all about "x" data and if you can combine "o" data and "x" data, you can change the world. ryan an i knew each other a few months and wanted to make a deal that would reshape the entire industry here we are, andrew. >> hey, bill, we had ryan's biggest competitor survey monkey on this set the day they were ringing the bell here at the nasdaq was that ever a company you looked at?

>> no. they do surveys. we do experience management. if you want to survey somebody, hire survey monkey if you want to change the way an enterprise thinks about its culture, brand, and products now you're talking qualtrics the leader of the marketplace by a factor of 10-x >> as my kids would say, burn. >> yeah. we've always bought the biggest and best one and thankfully with the high trust that ryan and i developed, we're ready to go >> hey, ryan help us with this. you would have controlled 48% of the company in a public situation. there've been a number of unicorns now that rather than go public have ultimately been sold we've seen half a dozen. what went into your thinking and how hard it was. suggested this was a difficult

decision for you >> yeah. so look. we been doing this for 16 years. we transform the entire experience management category we've created it i mean for financial institutions we've created this category to do something big that was the goal. we never had a financial reason to go public we boot strapped our company longer than anyone and we had no investor pressure. we're one of the only companies that has been cash flow positive and high growth since its inception. the reason we were going public was to create this massive new category when bill approached us with the opportunity to take all the power of qualtrics and our 9,000 brands and have that sit alongside s.a.p. and have every ounce of customer feedback go into the entire product process, reshape how the world thinks about crm, and everything we're

doing to power all the employee experience of the whole world, that's all available overnight that's something we couldn't turn down and we chose to be here our ipo was already over subscribed it was going to take off everyone was says this is the next $20 billion company we want to reshape the entire industry and bill's on board we're excited. >> it's a cash deal. all cash why not take stock and is that a commentary on anything in terms of the future of what you think this transaction looks like >> no, not at all. i mean, we're all in we're absolutely all in. i'm not going anywhere i've worked 16 years for this day. i'm more excited about the future than i have been about the past we're just getting started i probably had 20 different e-mails from analysts and folks out there from the road last week and my response to all of them was this is just the beginning. >> hey, bill before you go, the stock is down

close to about 4% this morning what do you think investors are getting right or wrong about this right now >> well, i think initially we were talking about doing tuck-in transactions so they're probably like, this is a big tuck-in, bill what's going on here hey, look. here's the metrics when you're talking about this particular company, qualtrics, they're growing at 40% on a year over year basis in the cloud they have a very serious go to business market. we're growing at 40% year over year and we have a large go to market machine more than 15,000 people touching the customer every day if you can combine that you have the number one business software growing in the cloud so digest that to the shareholders let me give you another one. we're saying and we're very

clear on this. we're going to grow in double digit, not to mention being the fastest growing cloud company in the world. this will be digested. why did he do that with tuck-ins it takes deskill to pull deals f like this. so that's what took a little bit of time and when we pulled it off together this weekend, we were literally crossing each other in the air at m39,000 fee. we're doing all hands meetings, talking to the media, talking to the bankers. i expect the stock to do extremely well as the day progresses and i'm here to build a company for the generations. not just for a few days. >> okay. bill mcdermott, we want to thank you. ryan, before you go, is it true

the underwriters of the deal didn't know you were in negotiations to do this deal separately >> no. i mean, that's not exactly true. they did a phenomenal job out there on the ipo you know, we had pretty tight communication there. i think we're -- you know, if you look at how this happened, we were pretty set on going public and so it wasn't until this opportunity came through this weekend where we said, hey, look this is by far a once in a generation opportunity and it's going to change how everyone thinks of this forever why wouldn't we want to be part of that? we couldn't be more excited. like i said, this is a pretty -- this is a pretty special team with bill. >> ryan smith, good luck with the transaction. bill mcdermott, thanks when we come back, more on "squawk. ann winblad is going to be here to talk about the tech wreck and where she sees putting money in the tech world as we head to a break, take a

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♪ welcome back to "squawk. some news right now, athena health has agreed to be bought officially by veritas capital and elliot management. price tag is $135 a share. elliot owns 9% of the company already. turning out to be quite a soap opera with the ousting of the company's ceo. deadly wildfires continue to burn in california aditi roy joins us now from california >> reporter: we are here at the command post for the woolsey fire it is one of three wildfires burning throughout the state you can see a slew of emergency support services behind me the other big fire is burning up in northern california

it's called the camp fire. it has been deemed the most destructive fire in california wildfire history the numbers here are just staggering starting with the death toll 31 lives lost. the camp fire matches the record for deadliest fire in the state's history that was first set in 1933. the fires have scorched 200,000 acres. nearly 7,000 structures have been destroyed another 72,000 homes threatened. and 250,000 people evacuated beyond the tragedy of dozens of lives lost, the wildfire is having an immediate impact on california companies starting with pg&e. shares were down plummeting 16% on friday. the biggest one-day decline since 2002 and down another 16% today. the utility is being blamed for a number of fires in northern california this year edison international was down 4%

on friday. it's indicated down another 12% this morning and in the meantime, a new report from insurance giant aon saying despite the fact it is so early, there are indications that the insurance sector could be facing a multi-billion-dollar payout from this round of wildfires. the causes of all the wildfires still under investigation. we noticed that the winds were calmer yesterday firefighters made a little bit of headway but they are back up this morning. so that's going to be definitely a big challenge in this fire fight today. back to you. >> okay, aditi thank you. wish everyone well and be safe out there. "the wall street journal" reporting that the trump administration is broadening its trade battle with china beyond just tariffs the paper says it plans to fight intellectual property theft by using tools including export controls and indictments if you look at the futures, you can see they did drop and get weaker a little bit when the

story first crossed at around 8:30 eastern or looks about 8:00. turning back to our guest host this morning, tom barrack just about that story and the relationship that the u.s. has with china and some of the tariffs and other things, not just tariffs but some of the other steps it appears the administration is taking what's the conversation you have with the president about that? >> the conversation is broad spread the president and president xi actually have a great personal relationship you remember president xi shows up at mar-a-lago thinking he's going to the white house and he's actually at a country club. you can imagine what his experience was that's the day we sent the missiles to syria. so they had a kind of a bond >> and you don't think that bond is broken at this point? >> no.

no, because president xi understands they've been taking advantage of us in a way for decades. even though they're the largest owner of our debt. which is the balance, right? but president trump's style is always startling confrontational and let his lieutenants draw it back he's got steve mnuchin on trade. he's got bob lighthizer, the best trade negotiator in history. and wilbur ross. they're all working the traffic. the difference is with a four-year term president, we're playing tennis against a ball machine and president xi is playing chess 30 years at a time i think you're going to see at the g20 be a really interesting moment for both of them. and the different time spans that each is facing. is there something where they can both walk away and say they've won? >> china right now, you have almost 300% debt to gdp without

the shadow banking changing the aircraft carrier on a dime in effect, what's happened to us of the tariffs, it's very little right? 10% tariff on $220 billion is nothing in the scheme of consumers. so i think both of them saving face and coming up with a truce on things like intellectual property, dropping these trade barriers on things that really matter in a soft way my bet is it will happen >> it's more than just the trade deficit, correct some have described it as an easy win you're talking about keeping shrek chul property in some of the more uneven playing fields that really being part of it too. >> absolutely. $500 billion in trade deficit, you can't focus on that with $800 billion of our debt so i really think china got the

ball on us and lighthizer who finished with canada and mexico, it was against all odds. when the president says i'm going to build a wall and let's talk about trade, we're all sitting here saying are you kidding me it was like with korea we started with this very confrontational program. i think it works the president has found a way to end run the diplomatic system at the beginning and used the powerful diplomatic machine to come in behind him and i think all of our -- >> but that sort of puts a gloss over -- i mean, the less sympathetic view is he throws something against the wall and has people clean it up afterwards that is the critical version of what you just said >> yes, but the critical version isn't reality. the bottom line is it's worked if it didn't work, that would be a way to look at it. the amazing aspect of it and we have a billion of trade with mexico a day we have a billion of trade with

canada a day if you just looked at north america by itself, whether you're a globalist or a protectionist, you would say north america could survive by itself without anybody else. >> what did you make of macron's comments over the weekend? >> i love macron he and the president get along great because he doesn't let the president push him back. and macron is facing his own i was there this weekend >> his approval rating is much lower than trump's over there. >> because they view him in france as being president of the rich difficult balance. this guy is so good. and i knew him when he was in investment banking he was at lazar. so when he was 30, he was as brilliant as he is now but again, they have issues that they thrust with each other. and by the way, macron put on an unbelievable weekend with 60 national leaders

>> since you were there, can you explain why the president didn't go to that ceremony? >> many of them didn't it wasn't the rain it turned into a nightmare that the french authorities actually suggested it might be too complicated. >> you're saying it was the french authorities >> well, i don't -- i'm just saying what the scuttlebutt was. >> do you need to do the altered video or can i move on to something else okay so very early on you were a trump supporter. you just said about the middle east there is basically a blank can v canvas the critics would say there was very little paint for the president to run what did you see earlier on before anyone else that made you think he would be a successful president? and i guess you still hold that view when his critics talk about the end of democracy as we know it and talk about getting through a period that the united

states hasn't seen since the civil war. so how did you -- what's wrong with you that's what i'm asking you >> i didn't see it what i knew was a man who'd been a friend of mine for 40 years. i'm basically apolitical i'm conservative on fiscal issues so i don't fall in the path of all the president's program. i disagree with him on presentation on a lot of things. but i know the man and i know our system. so if you look today, the midterm elections, we had the largest voter turnout in history. the most women elected, most minorities elected, and all of us are doing nothing but talking about politics i look and say what has he done? what he's done is participation. we're all in >> one way or looking at it, i guess. both sides are motivated, obviously. >> absolutely. and it becomes ugly. but everybody is all in all the

time >> do you think he sees his role as uniting the country >> yes >> he said that in that interview then he puts out tweets while there's fires raging in california effectively attacking the state. >> so look presentation -- you would like a conciliatory passionate moment we all need that, right? we all need that he views himself as me viewing a friend why does he do that? forest control and forest management is a gigantic issue. >> they're saying there's blood on his hands because of exiting paris and co2. so you've got one side blaming him for the fires and he's saying it's not. so you got both sides. you've got both sides saying ridiculous -- >> but to deal with forest fires in the state of california by the way, only 3% of the forest is being taken care of by

the state of california. >> i don't know it's federal money. >> the bottom line, we would like a conciliatory moment i think with the president and there's nobody -- he has more energy how he sustains himself every day under this pressure is unbelievable but remember he can hardly change the chef in his own cafeteria. he has 535 other individuals which are now becoming more hostile who are questioning every fact, every issue of what's going forward so to me, it's not about him it's about the debate that we're all having and can it be better, more conciliatory, what are we moving to, what system do we want when we have a health care system that doesn't work and a public education system that doesn't work it's complex, but at least we're all in >> okay. we are going to slip in a break. we have a lot more from tom barrack before the show ends thank you. up next, tech's been weak.

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during the season of audi sales event. welcome back to "squawk box. futures right now have gotten a little bit weak as the morning has gone on, but they were down 90 on the dow a couple minutes ago. the s&p down less than 10, just over 9 points. and the nasdaq indicated down about 55 take a look at the faang stocks

under pressure this morning. a lot of red across the board there with apple down the biggest percentage joining us now on set for a check on what's happening in the tech sectors, ann winblad. she's at winblad venture partners it's great to see you. thanks for coming in today >> thanks for having me on >> let's talk about the faang sector first of watching this f long time. you know these stocks well now they've gotten their knees taken out after that big run up. what's fair value on these stocks what's the real assessment >> every one of these stocks is different than the other if we compare amazon to apple, it's apples to oranges >> sure. >> you know, amazon i think is still a very attractive stock and one to hold for the long-term. they have enormous growth in their cloud business and other areas as well. i think they're a constant

innovator. facebook is another story. facebook has trust issues. we've talked about that in the past they have saturation they have revenue per user issues and they can't seem to come up with an encore either to their trust issues or to products themselves they have enormous technical strength so my expectation would be that they would have an act two or a plan "b. >> last time they kind of did that with instagram. can they do that again >> it's pretty hard for consumer software companies that are directing direct to the consumer to go buy things it's not as easy as it has been for the software enterprise companies. that's where all of the positive action has been in the enterprise the demand for enterprise software looks extremely strong going into 2019. we're seeing a lot of movement there with m&a, not just existing software companies but in the private equity space. and also we go from board meeting to board meeting on

these software companies that are private and we're seeing strong year ends, strong projections into next year, strong consumer demand it gets fuzzier if you're in the consumer market. you've got apple, you know, selling at higher and higher prices to anmarket you got apple and selling higher prices to increase luxury market and hopeful that their services and businesses catch up and its growth and filling ultimately will have to be a gap there. directive consumer is the first sector in technology that gets whacked when there are any risk issues >> how many of the issues that facebook is dealing with >> google is a diversiewhurst c.

they also have a growing cloud business they provide much of the technical support for when enterprise is using. they have been leader in artificial intelligence. they are good at bringing open source pieces. i was surprised they did not buy red hat since they are the other open source operating system company. people will do think in small terms as google as a consumer company, it is a much broader enterprise software company. they are a stock to pull for the long-term. they have multiple second ads process. i don't think google and facebook can be put in the same category >> what did you think of ibm >> i was surprised they have a big top line to push forward. it will be interesting to see how to integrate and open source

brand. they now have two clouds they're an operating system company again which they were long ago it will be interesting to see it piece together it is not obvious to me what the full integration strategy is but it is a big bet >> let's talk about enterprise company. one of the names you really like is microsoft >> i do like microsoft i think its got strong leadership right now and it has transitioned to a next generation company they are head to head with amazon on their cloud business and growing a little bit faster. they also have their own asset they brought to the cloud and their productivity software. they made a big acquisition mid year and get hub, that brought them access to 28 million software developers. as i said when i was here last

night, you take a company like goldman sachs, there are five times software developers these days the money is coming bottoms up into these developers. that's a new category called developing operation which is growing at an 18%. they are open to brand new markets with get hub that they have been in a small way >> if you had one more stock, which would it be? >> it would be sales force they also had done -- they purchased one of our companies in the spring when they purch e purchased it let's compare the multiple to sap. they got quite a bargain they have really integrated that company really quickly that increases their chance significantly and allowed them to do much more top down sign

and to the broader base. it puts them head to head with companies like ibm they are the company that you want to hold long-term as well >> anne, it is wonderful to see you. >> thanks. >> let's get down to the new york stock exchange. jim cramer is joining us we talk about oil a lot. i wonder how it plays into your thesis of the economy and whether it is half full or empty. is it all supply that dictates oil in a bare market or do you think it redpleflect back to yor view of the economy? how about a scenario which says that jay powell won. some of it is demand out of china. mr. powell, oil is coming down and a lot of supply chain problems were based on oils. this may be in part because you are winning so why not do one

more hike and say, you know what, maybe we won for now look at how anemic i am worried about what anne talked about because that was a fantastic analysis i am worried about fang but i am much less worried of the fed i think those are stocks that go up on farears of a big slow dow. the slow down is caused by jay powell >> jim, we have ten seconds or so can't do too much more after the patriots' loss and eagles who are the two best position teams do you think, rams or saints >> rams are unbelievable eagles go down the saints is not. i am probably not going to go. >> why expose yourself >> i think i will stay here for the weekend.

>> kansas city >> i think i am going to stay. my atlanta reservations for the super bowl, i may put that on hold, too. >> unless you are becoming a k.c. fan i don't know, thanks jim >> we'll see you in a few minutes. coming up at 9:00 eastern, david fab faber's interview with larry culp "squawk box" will be right back. finally. you're still here? come on, denise. we're voya! we stay with you to and through retirement... with solutions to help provide income throughout. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. oh. so, that means no breakfast? i said there might be breakfast. i was really looking forward to breakfast. i know... voya. helping you to and through retirement.

a time for a quick word from

our guest host, tom barrick. you had people writing in you are very calm. does not sound like we are ready to fall off. >> no, we are not. it is about partation that the president is forming a lyle log. he's got people around him and we are all debating. >> our two best businesses are digital and logistics. you p i can the trapick -- the c storing data server is better than storing ibm it is better than retail >> meaning that it is better to be in places that are outside of the city right now or is where

the money being spent? >> you have to feed the animal what it wants. you take the largest five stock. they do not want to be downtown. >> great talk. >> great to have you thank you. >> that does it for us today, make sure you join us tomorrow, right now it is time for "squawk on the street" good monday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer david faber is in boston with exclusive ceo larry culp the bond markets are closed for veterans day cpi on wednesday and oils does bound on talks of the saudis

the big story of