that's probably where andrew is but we'll be looking overseas. it is friday, september 20, 2019 "squawk box" begins right now. foen foen ♪ >> live from new york where business never sleeps, this is "squawk box. >> good morning, welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in time square andrew is out today. our guest host today is paul hicky. good to see you. let's check u.s. equity futures now. yesterday, the dow was a little lower closed down by about 53 points you can see, they are indicated up by about 5 points for fur

turs the dow and s&p are a little lower. nasdaq is on pace for the fourth weekly gain. being looking at raise yeah, the nikkei up and shanghai composite. the ftse is down slightly, actually flat. so is the dax. the cac is up about .2%. the 10-year is yielding 1.779% >> in our tariff news du jour, the u.s. is going to temporarily free more than 400 products from the $250 billion in tariffs

imposed. according to documents said to be published by trade representatives today. including items such as christmas tree lights, retractible dog leashes. >> what? how did that get on the list >> that wouldn't work for my dogs if it went out, when i brought it in, something would be attached to the mouth. filters for k-cups, tiki torches, grills, electric skate boards stemming from more than 1,100 requests from companies.

holding lower level talks in preparation for higher level talks expected in october. here is what vice president pence and black stone's steve squartsman had to say. >> for too long, one administration after another, republican and democrat, were willing to accept extraordinary disadvantages to american workers. those days are over. >> china trade talks with the united states. you've been an advisor to the very top would you think a deal gets done by the 2020 election >> it is an interesting thing because, it is hard to know in a

will start on friday their first group will come over in a week or two in october. you'll know by the time that meeting is finished it is sort of hard to say >> you know steve well how many times has he been to china? >> a lot he wants to set up university over there bringing work here i don't know whether you call it a love, not love relationship. he understands the way --

>> he does but he's also taken a tougher turn >> the gift he gave to mit to help them become an ai power center part of that is from the concern of seeing china so advanced. he looks at america and wants to make sure they don't get eclipsed >> it is interesting, him pointing out that today, they'll

show those first cards this is about the chinese companies. it may not last on the same day. >> we've seen a good will gesture and thank got the tiki torches are there. >> just in time for christmas. >> those are summer things some of the grill equipment too. maybe it won't matter as much. >> florida let's get to apple now, the company's newest iphones and watches are available on line and in stores today. later this morning, we'll take you live to the grand reopening

to the flagship store in manhattan where tim took cook i expected to be that spiral stair case that was glass is now made of stainless steel. >> the new version of the iphone operating system is now available. early reviewers say you may want to hold off. they say version 13 is buggy 13.1 is coming out of tuesday next week apple says users can wait and get the updated version. another update, my new one is ordered. >> no way. >> way i don't even know which one it is

someone helped me go through the corporate red tape >> can you pass on your source >> no. no can everything be moved on >> yes it can be copied >> i'm getting a little sentiment al >> you won't when you get the new one. >> that thing is such a piece of junk, i bet they let you keep it >> they don't want it back >> the battery really does start. you are not going to miss it at all when you get the new one you would be surprised how many people on twitter responded to, should i get a new one >> you feed right into it. air bnb says it plans to go public in 2020 they provided no additional details about the plan including whether it would take the direct listing route.

valued at $31 billion after the last round of funding. postmates valued at $2.4 billion ahead of an expected ipo as well the food delivery service has already tapped jp morgan chase and others what do you think with these, every company is its own situation. you don't necessarily look at wework or smiledirect club but has the overall sentiment changed? >> some of the quality of these has become a little more suspect coming out the food delivery business is a competitive space. >> air bnb seems different though >> wework and others, we've said the same thing if we are in such a euphoric

sentiment, if wework can't get out the door, it is constantly being written down, it shows sentiment isn't too euphoric >> looking at air bnb, it can claim it is a technology company and it was there first >> right within other areas of the economy, tech is working into every sector. this is the hotel or vacation industry, air bnb, their technology and platform has created a much more efficient business model for providers of rooms and vacation rentals >> the s&p is above 3,000, we are going into october >> so september is usually the

bad month -- >> it bottoms. >> you usually see the turn arounds. the second half of september is historically when you run into trouble. we are seeing breath in the market hit new highs it is encouraging we are hitting a narrow rally here. geding back to fedex everybody warning that they are the canary in the coal mine. it is right in line with average right now, you are seeing a normal pace of companies

>> do you think there is a reported 3,000 or will we go right back to 2,300? >> it is hard to say we had a run for new highs in april, then in july. then trade headlines came back into the mix and the markets sold off here we are on friday. the most important day of these negotiations are we going to come in monday and have another headline. in the short term, there is the most noise but going forward, we have a constructive or a positive outlook for the rest of the year >> right a lot of analysts after the september sell off we are getting close to the end of the year it is coming if we are above 3,100, we are

around those levels. >> when we return, we'll talk more market strategy we are hearing more from st. louis fed president about why he decented he decented because he didn't want to cut by 50 basis points we've got that story after this. then tech under fire the latest ahead of the big meeting. as we head to the break. let's look at the biggest winners and losers in the dow. ♪

>> welcome back. fed president out with a statement explaining a dissent one of three discenters. the only one that dissented because he wanted a bigger rate cut. he said there are signs u.s. growth will slow in the near term he cites the inverted neeld curve and proposes to cut aggressively now and raise rate

later if necessary coming up at 10:00 a.m. eastern in an exclusive interview. joining us now our guests our guest host this morning is paul hickey from the spoke investment group simeon, how are you feeling now? >> we certainly had some is good economic data. the camp that says we might not get another rate cut is growing. at some point, there are low

rates. getting a handle of the 10 year. >> it will depend. because of the landscape and pushing back to market expectations the fed was trying to switch gears. if they don't do it there that is related to business

confidence our expectation is not a recession, we still think business confidence will stay weak they still feel we need to do something here whether october or december zwroo that cut again and feel good or bad what would concern you more about their view points. >> this is a pretty amazing week ever indicator released was stronger than expected and the fed cut rates. the market is expecting another 25-basis point cut >> that's the point, if they don't get that cut, would that take the optimism is way >> i think because the market is

improving when the yield is falling that is worth a part the higher yield isn't healthy that implies things are getting better in the economy. evolving or moving out of this bunker mentality i think the trade uncertainty, everybody talks about it that is a big worry should things deteriorate further the question is how much is priced in. >> does the fed cover trade tensions jo i think 25 basis points, we'll get that going forward i

would expect there is a whole lot of rate cuts that could happen. they'll take measures to keep things afloat. >> one tricky point about the data, when manufacturing did show signs of life this week, the issue is the first five months of the year, it has been improving. that epicenter is playing behind the idea of this rate cut still in the cards

look at high yield rallying and look at small caps and midcaps they react reasonably well to the rate cuts. >> why do you think that is there in the rate cuts >> similar to what we saw in the late 90s we've gone par di on the book to 60 cents on the dollar we've already had this return doubled. >> to that end, small caps have more exposure, would you be positive on that as well >> i think think about it from a leveraged standpoint

40% don't make any money if the economy does weaken a little, they are a little too exposed. >> thank you for your time paul will be with us for the rest of the show >> coming up, this was the scene in washington yesterday. >> mr. zuckerberg, how did the meeting go today what was the message today, mr. zuckerberg >> more details, "squawk box" will be right back (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school.

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>> hi, mr. zuckerberg, how did the meeting go today what was your message, mr. zuckerberg can you assure lawmakers your platform will not be manipulated ahead of the next election did you talk about breaking up facebook did you talk about privacy regulation are you ready to deal with california's privacy legislation? >> that was our own reporter chasing down mark zuckerberg in the halls of capitol hill yesterday. he may have brushed her off but

was more than happy to meet with president trump and other lawmakers. the president tweeting this pho photo saying it was constructive that was zuckerberg's first time to visit capitol hill since over a year ago when testifying this time discussing cryptocurrency and some of the political bias >> some is senate leaders did not meet with him. he got a lot of grief in washington uk and eu lawmakers are even out for more blood this is his home turf. he's getting a lot of grief here

but he'll get even more overseas some of the questions like would you be willing to get rid of what's app and instagram as a show of good faith and then we'll work from there we'll see. >> it looked like a perp walk. it is not. he was just going in --. >> that's right. that reminded me of mike huffman. a little more ordererly. when we come back, new numbers from the cdc on vaping related illnesses. that is ahead. as we head to break, let's take a look at yesterday's s&p winners and losers

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>> announcer: welcome back you are watching "squawk box" live from the market site at time square. >> good morning, u.s. equity futures are up a little bit. about 55 points or so on the dow. nasdaq indicated up about 17 and s&p about 6 that would put it almost at 3,010. the number of vaping illnesses and deaths continue. eight deaths have been confirmed and more than 500 people have been sickened this comes after president trump announced a plan to ban the sale of flavored cigarettes vaping advocates meeting had

been canceled yesterday. they say seven people have died. officials continue to look for answers. >> some stocks to watch today. etsy shares are higher they set a price target of $68 the analyst says the push to encourage more sellers to offer free shipping and advertising can boost revenue and sales. steelcase jumped the maker of office furniture expects sales to prize 2% to 5%. shares are up by almost 6% this morning. check out shares of xilinx, the long-time cfo is stepping down he's been in that role more than a decade that stock is down by about

3.3% >> coming up, james mcgregor and big tech discussing opportunities. that is still ahead. you are watching "squawk box" on cnbc

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>> up 51 on the dow, nasdaq up 17 pre-market. >> face to face, trade talks with china continuing today. kayla is here with more on what we can expect. today, i think, is the day they are supposed to show the cards >> it is the second day of talks, becky that's usually where you see the culmination will yield they are talking fentanyl an agriculture. outside observers expect a

little more than a statement they are trying to set the table for their bosses and the two leaders to meet in the coming o months they are expected to head to montana next week to meet with farmers. sunny purd sunny -- son any purdue is hopeful on these talks >> it is hopeful on a trade resolution >> hudson institute said they go to a new percent president trump doesn't mind that harder line because he believes it gives him more room to negotiation

china has held a pilot that had air gun pellets in his bag saying they should heed deals at home >> thank you, kayla. i think, mr. mcgregor, to maybe summarize and lose some of the color of what you are trying to save you are expecting the president to be able to eventually announce that he's got a great deal at the same time, president xi will announce bullying it will behalf measures. is that what you are expecting >> both sides have to climb down

because this has gotten ratcheted up to high if we are doing a deal that brings down a boil, china buys more goods and maybe they drop a little on the technology just to bring it down to then have more talks going forward. right now, we are more frozen. we have to worry about protecting our system. we need to bring it down for a while to a different way of looking at things. in my view, we should have reciprocity talks. it is no longer just about a rich america, poor china we had. we are both equal, we are competing. if we can't do it in china, you can't do it here

get more on an equal basis they've made big breakthroughs >> that is the issue, i guess. i guess the point you are making is that china has done well. it is almost systemic. some of these practices. the only question i have is whether president trump, now that he's taken it this far, i don't know if he would have risked all of this i think there is a risk to him pursuing this. i think he's serious about holding china accountable. i think he has some hawks in his ear. i'm wondering if you have that right. if he's going to be willing to take a sort of weak deal and pretend that it is a strong deal he responds to things like that. if you call it a weak deal, that

could push him into a much tougher bargaining position with china. >>that is what i'm talking about. changing the discussioninto a reciprocity talk that also gets xi jinping to calm down. china doesn't know which tweet it is negotiating with we need a path forward the business community, the american business community, they got $550 billion in sales they need the china market our chip companies, two-thirds of their companies go to china they have to have subsidies way beyond what goes to the farmers. no matter what trump feels

himself, he has to worry about the business community in the stock market >> i just don't know if it's fair to say they don't know what he wants because they are one tweet away they know exactly what they had signed on to do in april and reneged on all of those. the question like what you said, are they willing to change the relationship, which is no longer rich america, poor china, help us bring over a million people to the middle class. we had steve bannon on yesterday. saying we'll be talking about this years in the future about how we handle our relationship with china >> we need to protect ourselves.

we need to be very careful about allowing chinese mergers and investments. we need to open our doors to talent and give phds in the hard sciences and staple a green card to their diplomas and get in our own r&d. we have to compete against china. we have to figure out how do we compete against the structure china is we can do that the final thing is we got to work with our allies that would have incentivized china to change. you have 40% of gdp. china would have had to compete. t tip between u.s. and europe would have been a good agreement. we need to fix ourselves and then china will have a hard

time i've been there 30 years, their system is what it is >> that doesn't mean -- organized crime has had a system for 30 years they can't change. that's unacceptable. we can always find fault with ourselves. i know we need more phds we have great technology we just don't want them stealing things >> i completely agree with that. you have to remember the power of china it is a powerful economy and powerful country i don't think we can make them go on bended knee because we are so powerful. if they change and we do what we can do here. >> hope springs eternal.

>> that's a great shot in the dark with the capitol and everything else. thank you. when we come back, big tech has been in the crosshairs our next guest tells us why he still likes several names. a quick check on what's happening in the european market ftse flat lining essentially the crack in france is up and the dax by .2% we'll be right back. you definitely want to take advantage of all the benefits you can get. 2/3 of employees said that the workplace is an important source for personal savings and protection solutions. the workplace should be a source of financial security. keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential. imagine a world where

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welcome back, everybody. technology companies have been increasingly under fire for

privacy violations our next company sees plenty of reasons to invest in technology. sunday baga is the cio at whittier trust thank you for being here great to see you. >> great to be here. >> let's talk a little bit about all of these regulators. we just watched video of mark zuckerberg answering questions on capitol hill, meeting with president trump. these regulators seem like they are ramping things up. it's not just at the state level, it's at the federal level and overseas are you concerned about any of those in the cross hairs or do you look and say there are companies that aren't being as closely tracked and that's where you should go? >> let's talk about the regulatory risk and i'll close with compelling reasons to look at this sector closely this regulatory oversight is changing because people used to focus on consumer welfare and price effect that has now

expanded to what harm you're doing to competitors you're right, the scope is expanding. some of these companies, google, apple, amazon, facebook, they had engaged in kind of favorable treatment of proprietary products when you talk about regulation you have to talk at two levels, privacy first and then antitrust. privacy may not be such an issue, and in a very perverse way the large players here may actually come out winners because they have to scale to absorb the cost of meeting the regulatory compliance. they are multi-national in layer. so the experience in europe where gdpr is already in place will stand in a good stead should a company -- >> what about facebook zuckerberg yesterday getting asked questions like would you get rid of what's app and instagram as a sign of good faith, would you spin them off that's a u.s. regulator asking that. >> yes absolutely

antitrust component of regulatory risk, and one of the things that is being discussed are anticompetitive acquisitions i think they would come under attack what happens in the worst case there is a forced breakup. we put a very low likelihood for that outcome, but fines will come along the way there will be rulings that say you give equal parity during search processes and displaying of third party vendors and their products all of those we think can be absorbed by these companies because they are free high cash flow margins. >> would you say buy facebook, apping, amazon, netflix, by any of those stocks because any of the potential regulatory effects have been worked into it >> stocks are reflecting that. here are two compelling reasons to think about stock prices now and for future one is macro and the other is micro and fundamental. at the macro level, what is the

thought? as a result of that, interest rates are lower. slow growth and low interest rates help grow stocks when growth is scarce, growth companies get rewarded with a higher multiple and low interest rates help growth stocks because they have a higher equity duration and sensitivity to interest rates. >> let's very quickly run through your topics. one of them is microsoft which is not cross hairs. >> yeah. so microsoft is -- there is one take away, it's a stock to own for the long term. it's a great way to compound wealth it's for intergenerational wealth transfer. the company has rediscovered itself, moved away from a licensing model to a subscription model satya has reformed the company and while they're making in roads in cloud computing, they're actually very unique in that they can play in the hybrid cloud solution space with a foot in on premise software along

with cloud-based application. >> what about amazon >> amazon has just competed. its economic mode is based on scale, convenience and brand loyalty which doesn't get talked about much because of the technology backbone of amazon. the brand loyalty they've been able to get that into greater user adoption and monetized it with more and more transactions to get a bigger share of the wallet. >> sandip, thank you for coming in great to see you. >> likewise. senator chris coons comes in apple's iconic fifth avenue store is re-opening after a renovation with watches and phones on sale. tim cook will make an appearance stay tuned wchg quk x"n bo o cnbc

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hour 36 in the stakeout. as soon as the homeowners arrive, we'll inform them that liberty mutual customizes home insurance, so they'll only pay for what they need. your turn to keep watch, limu. wake me up if you see anything. [ snoring ] [ loud squawking and siren blaring ] only pay for what you need.

♪ liberty. liberty. liberty. liberty. ♪ but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. the president's team said to publish its own naughty and nice list of more than 400 chinese made goods that will soon be

exempt from tariffs. can it be an early holiday gift to the markets speaking of the markets, could today be the day the s&p in a new position to be at an all-time high. highlights from our delivering alpha conference and investing ideas straight ahead. and big tech under fire. facebook's zuckerberg meets with the president and faces tough questions from senators. highlights straight ahead as regulatory scrutiny grows in the nation's capitol second hour of "squawk box" begins right now ♪ ♪ ♪ live from the beating heart of business, new york. this is "squawk box. good morning, everybody. welcome back to "squawk box" here on cnbc i'm becky quick along with joe kernen joining us for the remainder of the show is paul hickey. he is co-founder of the spoke

investment group let's take a look at u.s. investments for the hour we're in the green on a friday dow futures indicated up by 33 points s&p up by about 3 points, however, for the week both the dow and the s&p are on a downward cycle nasdaq is indicated up higher by 8.5. it's on its fourth week in a row potentially of gains if it continues at this pace here's what's making headlines at this hour james bullard said that the fed should cut rates aggressively since it can raise them later if necessary. bullard released a statement explaining his dissent from this week's fed decision. he wanted a half a point rate cut rather than the quarter point that the fed went up with. he points to weakness and low inflation amongst other factors. we'll get another fed point of view when fed voice chairman richard clarida comes in. mark zuckerberg met with president trump in the oval

office on thursday amid the controversy of facebook's marketing practices. the president posted a twitter photo while facebook called the meeting constructive neither side disclosed any of the specifics but we'll have more on the story a little later in the hour. financial technology firm stripe has raised $250 million stripe is now valued at $35 billion. that's up by about 50% from earlier this year. stripe processes billions in payments for consumer apps, websites and business software makers. the u.s. will temporarily free more than 400 products from the $250 billion list of tariffs that president trump imposed last year according to documents set to be published by the u.s. trade representative's office today. the list includes such items as christmas tree lights, retractible dog leashes. the regular dog leashes are still subject to tariffs coffee filters for k-cup machines

tiki torches steel wire barbecue grills and certain electric tools the exemption stemts from more than 1100 requests it's part of three sets of exemptions that are going to expire roughly one year from now. yesterday i spoke to the vice president at delivering alpha about the ongoing trade war with china. >> when it comes to china, it's a whole different ball game. there are $500 billion trade deficits with china and we estimate that we lose almost as much in intellectual property theft every single year. i mean, look, what the president's doing with china is defending the american economy defending america's interests. the strong stand that he's taken we believe is having an impact on china's economy no question about it and -- but that being said,

discussions are ongoing. >> for more on this, let'sbrin in our guest joining us now, senator chris coons who came up with the eastern united -- did you take a train or plane >> train take train everywhere. >> in a quiet car? >> not on the way up. >> better to hear -- >> like crazy conversations. >> crazy stuff -- >> from influential people. >> i can't believe you came up just for the apple store opening. >> came up just for this interview. >> senator, it's good to see you. just off the bat, what do you make of -- you started yesterday at lower level, the talks. are you optimistic that we get somewhere? >> i'm hopeful the vice president has it right that this is essentially about china's mercantilism, the way they have stolen vast amounts of technology whether it's through compulsory technology traps 49er or the ways they've used cyber

attacks on america's public sector and private sector to steal a whole generation of innovation the president is right to make this the center point of this rising and sustained trade conflict with china. i disagree in the way in which he imposed tariffs on a lot of our other allies first we have lots of trade conflicts and issues around the world. frankly, i would have preferred that he pulled together the entire world and most of our allies in one common assault on china's actions. since we let them into the wto since they joined the wto they've grown dramatically and they continue to behave like a small developing company when, in fact, they're one of the world's most sophisticated, largest economies. they have to start playing by the rules. >> it could have given our allies you take down all of the unilateral currencies you have and then you can join with us against china. >> right. >> it's not like they're without blame either. >> absolutely. for example, with canada, they

are one of our absolutely closest, most trusted security allies we have issues software, lumber, dairy, fishing, but that doesn't -- >> worse than europe. >> it doesn't mean we go after them with a club and say we're going to impose national security justified tariffs on steel and aluminum frankly, i think they're right my hope is that the president having gotten us to this point won't back down just for some commitment to buy a couple of shiploads of soy bean or my favorite export from my home state, chicken, but that we will get something that is enforceable around i.t. theft. >> that's your hope. what's your gut? >> there's a lot of pressure consumer confidence is beginning to take a hit here so far it is hurting the chinese i think more than it is hurting us but it is beginning to have a real impact. i'm hearing from farmers, from small manufacturers, from folks who run small commercial businesses as they're getting prepared for the holiday season as they're purchasing toys, books, clothes they're almost

all imported from china. they're seeing their inputs go up significantly there's going to be a lot of pressure. >> what about the constituents or businesses -- >> to the exemptions that were just announced, that's something i've worked with senator langford on. i've pushed for a fair process for the companies that are going to pay the extra the reality is, we are paying for this this is imposing a drag on the american economy. >> the point is, we are paying for this the economy is still holding up pretty well here isn't this the time to do this type of thing you now rather than when the economy is -- under a lot of pressure? and getting back to the multi-lateral approach, have we seen a real willingness on the part of other countries to take a stance on china that -- >> as you know, three years ago we were at a point where the tpp, trans-pacific partnership, was ready to go. in fact, it has gone forward without us there is a table that has 11

nations around it. there's an empty seat that's got our name on it and that was our opportunity to set the rules of the road in a way that favors our values and our economy have and have china on the outside looking in the president is making progress on bilateral negotiations, for example, with japan, with india. i don't think you can exert the same sort of pressure on china with that. i worry about our deficit and debt and how that continues to put a structural drag on our economy. you saw a decision by the fed for a quarter point rate cut one of my concerns there, frankly, is the ways in which our president has sort of pushed and pushed on the fed to make certain decisions. that's a separation that for a long time has served us well, a separation between electoral politics and fed rate. >> although they all tried, they just didn't have a -- no such thing as twitter when lbj was

throwing that guy up against the wall, you know >> he was an effective communicator in a different age. >> yeah. i think -- can you imagine >> no. >> that would be -- or take your pick, if we could go back in time and give twitter feeds to all of the different presidents we have. i'm not sure that would be a great idea. >> me neither. >> if i had one piece of advice to our president, any tweet you're considering issuing between 3 and 6 a.m., stop it. >> i'm going to talk to loren and i'm going to get bill clinton's tweets around "saturday night live"? >> no. >> i'll write a few. >> oh, my god. >> senator is laughing war, iran? >> certainly testing our resolve and an active hostility that deserves a response. >> global economy they're messing with the mischievousness, none of it

is acceptable. tankers, this. >> supporting the houtis who are firing missiles. exporting violence throughout the region through syria, into lebanon, into iraq at the same time our security partner, the saudi kingdom, has not exactly been a strong and reliable ally as well. we have some real challenges for them if we are going to proceed with anything stronger, the president should brief congress on intelligence i have seen the top layer of it. we should have a debate about exactly what's in our best interests because an attack on a saudi oil facility, while of grave concern, is not a direct attack on american interests my concern is we have tens of thousands of troops very close to these facilities throughout the area this is a tight geography. if the intelligence is showing the iranians are seriously considering next attacking any american facility, american troops, we need to be cautious

about that the president should send the secretary to come make his case. >> congress? >> yeah. i don't know whether the u.s. public has any stomach for it anymore. very little involvement. okay one of the reasons that we're having this brouhaha with china, because we have a lot of stuff people would like to steal do we want to cut off our best technology companies at the knees because of, i don't know, take your pick, any of these concerns that we have? they're too big? monopolies privacy concerns or do we want to embrace and nurture them i guess it's some of both. >> right we need to strike a good balance. we had a series of round tables about privacy, about technology, regulation representatives from industry have been saying for a year with gdpr with the european union's

economy and with the california state statute on consumer data privacy coming into force in january, instead of saying, don't, don't, don't regulate, they're saying please regulate in a measured and balanced way that will allow us to innovate and grow but gives us predictable rules of the road. we had a series of meetings with advocacy groups, industry. we should be able to do this the united states is the world's leading open society the reason you have some of the largest technology companies on earth started in the united states is because of the rules of the road that we have adopted. but after the elections, after some other serious concerns about privacy, the role facebook played in our last two elections i think it's time for us to legislate responsibly in an area where there's got to be some buffers just in terms of how much data very few companies

have on all of them. >> talking about regulation. we touched on this in the last segment. what are the concerns that it's only going to solidify the place of the incumbents that we're regulating and squelch competition? >> that's often the case, those that have the loudest voice come to washington and persuade us to put in place structural advantages for them which prevent that sort of positive, creative challenges from startups that's the argument for not putting in place a regulatory regime that facebook and google want and instead something that allows for more innovation this is going to be a tough balance to strike. >> i wanted to get one more -- >> but we absolutely don't want 20 state laws that go in 20 different directions. >> i like you, senator i think you're in some weird third party nether world in terms of republicans, democrats -- okay. so you're still backing vice president biden. my question is -- and, you know, you've seen some of the

recent conjecture that elizabeth warren has a lot of momentum would an elizabeth warren as your party's candidate or bernie sanders as your party's candidate, where you are on the political spectrum, would -- do you have a problem with someone that seems much more progressive? the reason that biden's in a top spot is because he seems like somewhat moderate. do you think elizabeth warren is electable? >> i think the reason, joe, continues month after month to be in the top spot, not just nationally, but i'll remind you. he's leading in california and he's leading in new hampshire. so in a state where bernie sanders and elizabeth warren get to broadcast into that state day in and day out, the fact that joe biden remains in first position surprises even me, and i think it's because the american people know him

they know his heart. president trump ran on addressing the problems of the forgotten middle class here's a guy who got knocked down by life hard and he got back up. >> he pushes back on some of the more progressive initiatives there's a crazy article that says elizabeth warren is elected, the stock market won't open. >> that's -- >> it's hyperbole obviously, but, i mean, any pro private sector free market pro capitalist, the spec tore oftera warren/sanders presidency is horrifying. >> it will zblsh but what about warren or sanders? >> would walk into any room with any world leader and say, great to see you again. >> supposedly off the record he told some private sector leaders

that, you know, with me you don't have as much to worry about as you will with them and then he gets hammer by that. we want growth in the country. >> the corporations that create the jobs, yeah. >> you can't worry about -- this is a famous hubert humphrey quote. you can't worry about the working man and not for whom he's going to work >> humphrey -- >> at the end of the day i'm supporting joe with a whole heart. i'll be in iowa with him i'm optimistic about how he can actually solve the problems facing our country and bring them together. the best way as we were talking about earlier, the best way to confront a peer competitor in china is to be america to legislate, deal with drug pricing and i think -- >> are you sitting alone at lunch now? >> i've actually got a full lunch of folks who just don't go on twitter >> okay.

>> i don't know, i think even after this interview i think you will get some dirty looks. are you headed back down there today? maybe wait until monday. >> i'm in iowa for the weekend. >> hubert humphrey was vice president and not president. >> right >> i just wonder, is it a similar setup where you have a democratic party that's not willing to -- >> i hope not. i say over and over we need to be solving the problems that average americans want us to work on and that's -- how can we afford college for our kids? how can we ford it for our kids. we cannot be the party of freestyle. >> be the party of free dumb. >> make access to higher education, my proposal, national service. you want to send two years with citi, america, great, we'll give you a college education. >> that's a pretty good idea. >> i think that would work. >> senator, good to have you on set. next time you're up here -- you weren't?

>> no, i don't think so. >> no first class or private car? were you on the accella? >> i was on the accella. so eager to see my daughter. >> good answer. when we come back, some of the key highlights from yesterday's delivering alpha summit also some stock ideas from our guest host paul hickey if you missed out on the amazing lineup of delivering alpha, you have time to get tickets from cnbc's evolve summit join united ceo oscar mun munos, greg brown, i'll be there, too much more coming up at cnbc evolve summit. visit cnbcevents.com/evolve to register and "squawk box" will be right back.

coming up, yesterday's delivering alpha summit bringing together the smartest minds in business we're going to bring you some key moments during yesterday's

events and tell you what it could mean for your money, for the markets, et cetera we'll be coming right back after a quick break. time now for today's aflac trivia question. what world leader was once banned from disneyland the swaner when cnbc's "squawk box" continues coach saban we have health insurance. did health insurance pay for everything? no, we still have bills. aflac gives you money directly to help with those. aflac! and your deductibles, knee brace, whatever you choose. aflac sounds like a winner. umhum... umhum... we try. get help with expenses health insurance doesn't cover. get to know us at... duck: aflac! dot com you should be mad they gave this guy a promotion. you should be mad at forced camaraderie.

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now the answer to today's aflac vtrivia question. what world leader was once banned from disneyland the answer, nikita khrushchev. right now time to hear from delivering alpha conference. leslie picker is here. >> there's a shortened grubhub and davita he said he was long in wpx and cigna and glen kacher likes uber and disney confidence was another theme several investors noted that business confidence is being hampered by the trade war adding

that consumer confidence is a key bright spot for the u.s. economy. >> the reason the stock market is so important is that 70% of the u.s. economy is the consumer while it's been shaken by the u.s./china trade dispute >> consumer confidence is starting to weigh in the one to keep your eye on is consumer confidence. if that breaks that would be very worrisome around 2/3 of confidence is the consumer confidence. >> that's the biggest risk for the u.s. economy >> we've been waiting for tim cook to arrive at the apple store. take a look at pictures we've just been getting. it looks like he is on scene

shaking hands with the people who have been waiting out in the case of some hours or all night. this is the mid town newly redesigned store for apple. there's tim cook watching him walk across the floor, people mobbed him tried to get the pictures like they're doing here he has his own following for all of this. the store is opening at 8 a.m. and maybe they'll pull back a little we can see how big the crowds are that have been there waiting. again, that's tim cook waiting for these -- shaking hands with people who have been waiting for hours to get their hands on an iphone 11. >> good. he's into tnchts he is.

>> there aren't too many ceos. >> please, take a selfie with me take a selfie. >> what do you think about apple shares >> yeah, the stock after the last month has done really well. the stock is 5% cheaper than the bodder market. i can't think of a company that's been more consistent than apple and it trades cheap eer ta the market the consumer staple stock. buffet we were talking about earlier, he loves consumer staple stocks. with recurring revenues people consider apple -- >> consumer stock at this point. >> if it was traded on that basis, it's 12% cheaper. >> technology is 20% cheaper >> well, what about the regulatory overhang. privacy may not be as big of a deal for apple if you start looking at the rules of what they put in their app store, how they compete,

they could be facing tougher regulations. is that something that comes into the regulation? is that why you see the discount >> i think it's potentially a worry. it has less risk than the other companies that we all talk about here tim cook has been a master diplomat he has a great relationship with the president so he won't come under fire and he just knows how to play all of the angles. >> thank you very much paul is going to be with us and leslie, thank you. all right. coming up, the take on big tech. mr. zuckerberg, how did the meeting go today what was your message to lawmakers, mr. zuckerberg? >> senators meeting with mark zuckerberg to discuss regulation one senator telling him to spin off instagram and what's app both of which are involved in an antitrust probe. we'll discuss that in just a bit. as we head to break, take a look at u.s. equity futures they're indicated up marginally this morning we'll be right back.

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welcome back, everybody airbnb plans to go public in 2020 airbnb was valued at $31 billion after its last funding round which was back in march of 2017. also, postmates has raised another $225 million, a valuation of increasing. it's tapped j.p. morgan chase and it filed with the sec earlier this year. still to come on "squawk box," mark zuckerberg meeting with lawmakers over possible regulations in the ndustry. later, apple's newest iphones are available online and on store shelves today we'll take you to the new new york flagship store. we just saw tim cook there with

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mark zuckerberg meeting with

the president and senators in washington as the regulatory spotlight shines bright. ylan mui joins us. >> reporter: good morning, joe zuckerberg has been on a charm offensive here in d.c. he met with president trump in the oval office. the took shook hands and facebook called the meeting constructive zuckerberg has been working the hill he's had dinner with democrats and met with at least four republican senators yesterday but he didn't have a whole lot to say when i caught up with him. >> hi, mr. zuckerberg. how did the meeting go today what was your message to lawmakers, mr. zuckerberg? can you assure lawmakers that your platform will not be manipulated ahead of the next election did you talk about possibly breaking up facebook did you talk about privacy legislation? are you hopeful that it will come to the floor before the end of the year? are you ready to deal with california's privacy

legislation? >> reporter: lawmakers, they were a little more talkative senator josh hawley said he had a very frank discussion with zuckerberg and a very big ask. >> about data, sell what's app and sell instagram that's what they should do they should spin them off. sell them right now and show that you have confidence in your core product. >> reporter: facebook was not very receptive to that idea but the company has outlined four areas where it wants to engage with lawmakers, harmful content, election integrity, privacy and data portability today zuckerberg will be on the other side of capitol hill he'll be meeting with gop leader kevin mccarthy and other republican leaders this morning. guys, we will keep you posted if we learn wherever he goes. back over to you. >> ylan, what senator hawley said, let's just spin it off is that the reining sentiment on the hill or was that guy kind of -- >> hawley has certainly been one

of the most vocal and animated critics of big tech, but i think that his point is that, you know, if you can compete on your core platform, then you shouldn't need those businesses north to be su in order to be successful. i think that is a sentiment that a lot of lawmakers share they have gotten competitors and maybe that's not the right approach maybe that's killing off smaller get tors th competitors that would like to enter the market. >> if i'm smart enough to buy instagram -- >> when people thought they were over paying. >> the senator didn't say, hey, i'll take it off your hands and, you though, i'll quit the senate and i'll run it. it's a pretty valuable piece of -- i don't know you know what i mean if we start letting politicians decide business strategies just based on -- >> their expertise. >> yeah, based on their

expertise -- god help us anyway, thanks >> thank you joining us right now is frank fore he is national correspondent for "the atlantic. frank, thanks for being here with us today. >> pleasure. >> what do you think about the heightened scrutiny apple and other big tech is getting? >> i think it's telling that the call to break up the company was coming from a republican senator from missouri, it wasn't coming from a fire brand liberal. they're getting it on all sides right now. they have reviews happening by house subcommittee, by the fcc, by the justice department. they're getting hit on privacy, on election security, national security, on various public health, addiction issues and facebook was a pinata for so long

they were so flat footed in their initial response to criticism that i actually even though yesterday was probably a pretty painful day for them, it was kind of a necessary first step for behaving in a big way facebook is racing ahead saying, all right, we know that this needs to be regulated. we're willing to accept some additional layer of government scrutiny and let us be your partner in producing that rather than producing something that we can't live with because the thing that they actually genuinely fear most is not regulation, what they fear is having the core of their platform broken up into these component companies. >> do you think there's a case for that do you think there's enough support behind an idea like that to actually push the breakup i will say the same thing. i look at some of these things and think there should be more additional oversight in terms of privacy, in terms of what

they're doing with people's information, what should be allowed. when you hear calls for a breakup that seems to take it to such an extreme level, i don't know. >> i don't think it's that extreme of a position when you go back and you look at the history of the united states our policy in the past has always been to kind of open up space in the next communications realm so that there's some space for a challenger to come in and take on the incumbent company. so if we look back just a couple of decades to the microsoft case, i think that was actually a really important moment, that when the government threatened to break up microsoft, it caused microsoft to reform its behavior and so they didn't monopolize the browser to try to squelch or strangle google when it was in the crib and that unleashed the innovation that was web 2.0. we haven't quite applied any pressure to any of these mergers that have happened and so

political economy is swinging back in the other direction where we're saying, you know, we're going to actually -- we're going to monitor your growth we're going to try to con strain you so that there's actually space for incumbents to come in and challenge you. i don't think that the breakup of facebook is imminent even though i would support it. it is valuable for creating the ecology. >> the conversation in itself and the conversations that are happening on capitol hill and other places will change it, you're right frank, thank you for joining us. it's good to see you. >> thank you. coming up, we're going to talk markets, the fed and your portfolio even the futures this hour "squawk box" will be right back. oh, wow. you two are going to have such a great trip. yeah, have fun! thanks to you, we will. aw, stop. this is why voya helps reach today's goals...

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welcome back, everybody. james bullard making headlines finally, we're hearing about why? >> yeah, it's become common place now for theisen terse to on the friday or on or thereabouts to explain why they dissented. like the dissenting opinion. bullard gave us three reasons. this is the second time he's dissented. he says the recession risk is rising

he says manufacturers are already in recession inflation is too low and then this thing which is the big debate on the fed board, better to act aggressively and early. some say better to hold your fire let's see where the federal reserve funds rate is trading. 43% for the next time in october. that was trading well above 50 ahead of time. rick has this thing which is right. it's kind of like looking through a cloudy window at another window at another window. >> get closer and it becomes more accurate. >> that's the one that's accurate these other ones are indications of what's going to happen. 64% for that same cut in december that is priced in, another cut for the end of the year. you want to talk about a second cut or another cut from here, it's not until april we get above the 50% probability threshold. yesterday the debate about what the fed should do and why it should do it was front and center at the delivering alpha conference here's two folks, rick reader from black rock and sarah

bloomer debating what the fed ought to be doing. >> the fed operates and the u.s. economy operates in a global economy. as the chair said, a global economy is softening precipitously. you have a dynamic where if the fed didn't go, virtually every central bank is cutting rates and being accommodative. >> the centers who didn't want rates to come down both are actually keenly attuned to supervisory and regulatory matters. i would love to hear them talk about and elaborate on whether it is this sense that we're creating bubble-like behavior. >> yeah. concern about bubbles all but animated fed policy concern back a while ago. now we have eric rosengram will speak at 11:20 this morning. we'll get maybe a sense of his concern. don't forget, 8:30 again we'll get the answers -- we'll get the

results of the -- >> you realize how malleable i am you had me convinced no metrics to show and then bullard, i was like, what's he thinking i read his comments. that's pretty smart. it made total sense to me. manufacturing recession, global slowdown if we do go down now and it's the wrong move, let's go back up let's do it now to try to preempt what could be looming weakness my only point is that depending on which -- >> no, no, i get it. >> i can always argue both sides. that's why they don't -- that's why it's 7-3. >> 7-3, it's really 10-7 if you think about only 7 that want additional cuts. monetary policy fun -- >> fun, you know that's an oxymoron, you know that? >> i know. not for me >> that's so sad go ahead read the policy -- >> you fish, you have things -- >> i'm a gamer. >> you have things in your life.

you don't need this. >> come to the river outpost benefit for river keeper here's the thing read the policy statement, joe. >> children. >> instead of cut rates a quarter, fill in raise rates a quarter. >> it works. it works. >> it still works. >> you could go either way i think that's fun. >> in the big picture does it matter more than a hill of beans? >> i think it does. >> you have some smart folks here. >> let's expand our markets. this conversation bring in omar aguilar, chief investment officer of equities and multi-asset strategies of charles schwab investment management and our senior markets commentator mike santoli and our guest host paul hickey what do you think, omar? where were you were you like me, oh, that's why or do you know for sure? >> well, i think the biggest challenge here, joe, is that the

fed's credibility in terms of looking at what they call data dependent decisions. it has gone into a business sense. i can only imagine they're going into a meeting saying, all right, this is what the data tells us this is where we are in the economy. this is where the market sets. and all of a sudden the fed for the first time seems to be going towards the market as opposed to actually going towards data. i think that in itself, you can explain both ways. yes, you want to be preemptive of what the data will come and, therefore, they're trying to anticipate that bad data that will come because of the pressures they see overseas. you see that component of trying to prevent the deflationary import and therefore trying to be proactive but the problem of that is we have been hearing this dodd clause and data dependence for over a decade that's the challenge going forward. everybody is thinking of fed futures more indicative of what's going to happen going

forward. >> santoli, if it's a global economy now, you can pick your data points and it basically is a rorschach, isn't it? >> almost. >> what you see versus what someone else sees? >> right to your point, it's the nature of being at this kind of ambiguous moment in a cycle when you've had many cycles within this ten-year cycles you don't know if there is just a lull and we're coming out of it what you can do is observe the way global interest rates are and where they sit and where the fed-controlled rates rest relative to those. that's been a little bit of the outlier. i think it's one argument that the fed has not really embraced is we're just making this adjustment to tact where the world is so, i mean, it's interesting the plurality on the fed, if that's what it was, that wanted this quarter point cut, i think they're kind of willing to see if they get lucky and the economy comes back and the market is saying, okay, maybe we

can live with that for a while. >> maybe they're feeling like, okay, they pulled this one off and we wait and see for the next one? we had pushback from people saying, look, they left open -- they didn't give pushback on the idea there could be another rate cut coming. >> i think the markets take away. >> there's probably going to be one unless things get better. >> i kind of took the opposite we'll just wait and see what happens and the numbers are quite different. >> i think they want to pivot back to a data dependence thing, which omar was sort of arguing for. i don't know that they're able to do that quite yet. >> because of what's happening around the globe >> right right. i think they feel the down side risk of getting it wrong by being too aggressive to the down side is very limited >> yeah. >> with inflation the way it is, as low as it is. >> yeah. >> the problem i have with mike's argument, which is not his argument, it's the argument out there, i don't know if we go down, if they pivot down further, that we can ever really catch up with that. >> right >> as i've said several times,

if president trump wants europe's interest rates, he probably has to take europe's economy and i don't know that he wants that i don't know that -- there's a reason why european rates are negative there's a reason why our rates are positive with the question, should they be quite so positive relative to the others you can imagine if we go down further, europe goes down further, all of a sudden we're racing to the bottom. >> is there too much communication? the latest is is it five officials see fed funds 25 basis points higher by the end of the year >> yes >> yes so the dots just create so much uncertainty. we move from, you know, late last year we were expecting hikes, now we're expecting cuts. it's a little bit -- >> i'm old school about this in the sense that i remember when the thing we most wanted to know was the fed's forecast for the funds rate so i'm not going to look this gift horse in the mouth and say, i'm too confused by it, don't give me the information that we once thought was the most

critical piece of information to have we'll deal with it we'll deal with it. >> but it is true that one year ago we had three further hikes baked in. >> right. >> now you have, you know, probably another cut -- >> cuts. >> the point being that it can change and it's all over the place. by the way, the s&p had that top a year ago and we're up 2 1/2 percent. >> all right thank you. good to have you on set with us. mike, have a good weekend. sleep in tomorrow, right >> appreciate it. >> saturday. >> where is this >> day off. >> river outpost in peek skill it's a benefit for river keeper. >> that's kind of a cool place. >> have you been there >> yeah. >> it's right on the hudson river. >> i know. >> it's called rally for the river. surf and turf challenge. >> that's not far from our headquarters, is it? peek skill >> if you can get across the river with the ferrymen, if you know what i mean >> we've got to go.

>> when we come back, a big day for apple. the company's newest iphones and watches are available. rahil solomon is at the flagship store and she has more rahil. >> reporter: the iphones and the grand re-opening of the fifth avenue apple location have brought apple's top executive, tim cook, to the store we have lines, the buzz and a look inside at the teeeahr yr renovation "squawk box" is back after this. so servicenow put your workflows in the cloud, huh?

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going to 11. >> why don't you just make 10 louder and make 10 be the top number and make that a little louder >> these go to 11. >> apple's latest iphone about to hit store shelves a live report is straight ahead as ceo tim cook gets ready to greet the first customers in line. mark zuckerberg swings by the oval office. >> how did the meeting go today? what was your message to lawmakers, mr. zuckerberg? >> we'll bring you details in the nation's capitol. and an insurance giant tries to turn the tables on health tech startups. an exclusive interview with the

ceo of humana is just hours away the final hour of "squawk box" begins now some breaking news for you there it is. tim cook opening the doors at the company's fifth avenue store in mid town. that's just a few blocks north of here. they're waiting down the wires it is 8:00 open the doors open the doors their clock is off there they go. yes. opening the doors, letting people come in you're looking at live pictures right now. today is the day that the iphone 11 goes on sale. these are the crowds that have been waiting there it's also the re-opening of that mid town store for apple as a result, that's where tim cook is today as he's giving high fives to the first people walking through the doors. cnbc's rahil solomon is live >> reporter: you can see exactly what's happening behind me we have another camera i've spoken to some customers about why they wait overnight

for these phones to them, tim cook is like a rock star he is an icon. that's why we're hearing the cheers and the celebrations and the applause so many people are so excited. want to see the grand reopening of the store and also to get their hands on the iphone 11 i want to stick with the moment for a second 300, 400 people when we got here this morning it was a much smaller crowd. we'll get to that. yes, tim cook here at the fifth avenue location. it's a major store for them. their only 24 hour location. usually he does as a sort of reopening or the selling of the first merchandise, the first iphones from palo alto the last few years he's done that this is such a big store for them he's made his way to the east for this. this kicks off a week of celebrations for the re-opening of the fifth avenue location i spoke to a pr rep. he told me that the store first opened in 2007 and since then they have had 57 million visitors, more annually apparently than the statue of

liberty and madison square garden again, this is a huge store for them this is a major event for apple. he got here at about 7:30 this morning. he took the obligatory selfies he shook some hands. spoke to some people he made his way inside quickly about the renovations, they shut down the store in january 2017 they shut it down in january 2017 they have since doubled the size of this store. it's a 24 hour location. you can make a reservation at any time of the day and come fix your apple merchandise the sales floor is also open 24 hours. so for folks in this neighborhood and new yorkers, they've been waiting for this. there are three lines out here the people who have preordered, people who have not preordered guys, people who just want to see the store. people say that, you know, it's been missing they've been missing the store and so they really just wanted

to be among the first to see the new location so that's what you have right now. so it looks like tim cook, from what i can see, still taking pictures i don't know that they've actually let customers inside yet, but for most of the people here, i mean, he's the big attraction, right? they'll get to the phone they'll get to their apple watch which, by the way, guys, i asked most of the people in line at least about an hour ago what they were here for, almost all were here for the iphone i think like two or three told me they were here for just the apple watch and, again, you had a group of people who said they didn't have any intention on buying anything, they really just wanted to see the store and a lot of people, it's so interesting, if you're not an apple user, if you're not even really one of these fanatics, these apple fanatics, maybe you don't quite understand i asked them, why sleep overnight? you can pre-order it and have the phone arrive the same day it's available in store. some people say it's like a badge of honor, like a cultural thing. again, a really great, important

moment for a lot of these folks here tim cook welcoming the first customers in becky and joe, i'll send it back to you. >> kind of interesting i think the juxtaposition, i mean, you've got tim cook diving into the mosh pit and everybody's giving him high fives, everybody's shaking him then you have commander data walking forward, i am -- i do not hear you i do not see you i'm going -- >> you're talking about zuckerberg walking the halls of congress. >> commander data. you remember -- >> yes. >> when tim cook is -- >> the mosh pit. >> high five nobody high fives congress. >> you've got a big target on your back in washington. no one's high fiving you thanks. it's just after 8 a.m. here on the east coast. commander data is good, isn't it >> that's good >> futures right now up 40 points on the dow. nasdaq up 12 and the s&p up 5.

i mentioned -- take a quick look at -- i have to mention it jim tweeted it it was one of his great tweets of all times, cramer, about zuckerberg failed a touring test. >> data would at least answer you. >> so a touring test i had to have it -- that's what you -- >> developed it -- >> to determine whether it's a machine or a human. >> yes >> so mark sort of -- like i don't know missed a couple of important questions. >> that's an advantage of his when it comes to navigating certain kinds of business challenges, but then when it's time to be a man of the people, it can be -- >> falls a little -- so let's -- so not -- thanks for stopping by you've probably got to run and get into the line over here. is that why you're here? >> we'll talk about that i'm not running as much as i used to. >> safian, founder of the flux crew >> yeah. well, someone's got to.

>> cool. >> former editor you were on here a million times as editor in chief of fast company and flux is a fast company. our own john foer. co-anchor of "squawk alley." doesn't own a tie. >> they're dusty now >> john -- >> you broke the mold. >> they're for funerals. >> you are paving the way for the rest of us. >> i'm trying. >> what do you want to talk about? >> maybe apple isn't it great to have a business where people will stand in line and cheer so that they can give you their money >> yeah. >> what a great -- what a great position to be in, right >> those are the businesses where they do that. >> happens all day i can see the crowd, the mosh pit out there for you. they're waiting for you. no, but, listen, apple can still command these moments, you know, indicates the continuing power and relevance really of that brand. there was a report that came out

about the world's most relevant brands and apple, again, number one the world's most relevant brand even though their business is going through a real sort of strategic inflection point which tim cook is navigating john and i were talking about how much bigger and more complicated apple is today than the apple steve jobs ran and how steve jobs might approach things differently. the transition of their business if you go on apple's site now and you look at the way they're selling the iphone 11, you'll see the prices it's -- it's all based on recurring revenue in a way that's completely different from the way they operated before the main thing that sold is the monthly price and your trade-in value. it's like you're leasing a car they want you to be buying your apple and upgrading your phone continually. this is a continuation of what's happening all across their services, whether it's, you know, apple plus, apple tv plus, apple news plus, apple music

the new arcade video service it's all about getting that recurring revenue to come in so they can stabilize what is still a growing core business. growing at a much slower rate than it used to. and even with all of that excitement they know that. >> so how do you think the new launch of the phones this morning is going to go off do you think this is going to be a big growth point for the new phones >> it's not going to be a growth point. the iphone itself hasn't been growing for the past couple of cycles it's been more about can they make more money selling the same number of phones or fewer phones and i don't think anybody really expects this to be too much of a deviation from that. >> although i have to say the stuff in the ecosystem that they're going to be charging for, even though it's 4.99 for the tv service, 5 bucks for the games, that starts to add up if they can actually squeeze that much out of their entire ecosystem and you see an

ecosystem so jazzed up they go to an event like this. >> why not sell them more products, right? you asked the question earlier i think about sort of the regulatory challenges that could happen that may loom there in some ways for apple, as they do for all of these tech platforms and certainly for zuckerberg and facebook if you have that platform of course you use it, right and you're selling credit cards, right? you're selling games you're selling everything you can through that platform like why not? >> the iphone is a once in a lifetime, maybe once in a couple of lifetimes business. i think that wasn't clear at first. you think about a product that average selling price starting out was around 6 or $700 going up from there to 700 plus with the kind of margins that it had selling in the volumes of millions and millions a quarter. we've never really seen anything like that. then people were buying a new one every couple of years. and so this store, fifth avenue

apple store, it's the house the iphone built so is the new apple campus so is grand central. all of these kind of cultural monoliths that apple built for a while they thought maybe the ipad will be like that maybe the watch will be like that nothing's been like that so now they're in this mode of saying, all right, we're going to create ecosystems around the iphone and these other devices and we'll see how profitable we can make those we'll have a branding -- a cultural moment and bring more people in and keep the people who we have. we'll see where that leads us. i think this is an important moment in that transformation of apple. you know, it's been kind of a quiet transformation but it's important. this store that's open 24 hours, yes, it's about selling phones and selling watches, but it's about a lot more than that it's about apple's brand and keeping people learning and keeping people connected to what apple is about. >> i mean, you have, you know, a large group of millennials

cheering a ceo >> america's technology uncle is what my colleagues call tim cook everyone's friendly uncle. that's the way he's positioned himself and apple. events like this allowish that >> bob iger gets love. >> the trust and -- helps the growth and health care is a potential growth towards the watch. they have the trust of americ s americans. >> tim has leaned in the apple being different on privacy as long as apple lives up to that they'll be able to maintain and reinforce that

they have had some small bumps. >> the most important device for apple's ecosystem strategy is the $199 apple watch, right? the series 4 >> yeah. >> that they've now brought the price down to $199 it's almost an impulse buy for a certain demographic of consumer and what that gets you if you're apple is it gets you volume. it hits that level that the ipod started to hit. >> way more people, bigger ecosystem. >> mini, nano, people had music in their pocket and they can build businesses around it it will be interesting to see if that can happen. >> iger has the marvel group, abigail disney saying you're way overpaid and the left has iger in there did you forget about that? >> i didn't forget about that. nobody's talking about that. >> not last month but they were before that.

>> i was trying to think of other -- >> iger. not when you -- >> take a picture with him people want to take a picture -- >> costs $200 to go to the theme park costs $200 that's what you read about. what do they pay the workers >> galaxy's edge, people go and they love it they dance with r2-d2 and they drink the buttermilk. >> that's at universal >>coincidence, many of the bes things i suggest you get on board thanks you, mr. flux. how long >> thank you >> how long? flux >> oh, it's moving and you'll see more of it. >> okay. good when did you found it? >> a year and a half ago. >> where was i

>> yeah. >> let's get you caught up today on some of the other stories we've been talking about as well facebook ceo mark zuckerberg is set to speak with more lawmakers than yesterday trump posted a twitter photo and said the two had a nice meeting. facebook called the meeting constructive neither side disclosed any of the specifics though zuckerberg had said -- or facebook had said zuckerberg was in washington to hear lawmaker's concerns and talk about new regulations. james bullard is shedding light on his dissent to cut interest rates bullard wanted a half a point rate cut than the quarter point that the fed decided on on wednesday. he said the fed should cut aggressively now because it can raise rates if needed. make sure you don't miss an interview with fed vice chairman rich clarida coming at "squawk" on the street at 10 a.m. eastern time

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welcome back friday and you're looking at 45 points above and s&p is up by 5 and nasdaq up by 14. they're trying to do the same move

>> good morning. the ceo of humana. humana has not been shy about making acquisitions. you acquired kindred home. why effectively do your own startup when it comes to digital snelt. >> it's less about startup it's really more of how can we integrate the services that we offer our members, both from a personalized point of view and from a simplification point of view it's the integration of that that we're trying to enable. we have a lot of technology partnerships throughout the country but it's really how do we do that together and bring it for our members in a holistic orientation. >> what is it that brought you to boston rather than, say, going to silicon valley? although you do have offices there as well or in new york

where aetna was looking to go. >> we've done a lot of research and concluded boston has a great talent and a lot of companies that are oriented towards health technology as we defined it more around health technology, we concluded that we needed the ability to partner and in addition to recruit talent this talent has wonderful capabilities. >> you're just down the street from vertex pharmaceuticals, this new area called the boston seaport where there are a lot of tech startups. just across town is amazon's joint venture haven. >> yes. >> you announced about the same time a year ago and yet they've been under raps. they haven't apparently launched anything new you're set to launch a new virtual primary care service for small health groups. talk about how being here and having this kind of digital hub

helps you do that more quickly >> a few things. first, we do develop products in an agile fashion so what you see and even in this office you'll see us bring customers in, interview them and then our product design goes and designs them and then comes back and talks to the customer. so we have this very agile orientation to get products out as quickly as possible we're not going to be perfect, but the customers are helping us develop this first it's just how we design products and go to market. the second thing is is the ability to do that in a way that we have great talent what we've been able to amass over the last year and being able to develop this office is some really good health technology talent. that's allowed us to get product out to market and then the last thing, it's not bad being 25% of the medicare advantage marketplace and being able to do that at scale. >> one of the interesting things is a couple of years ago you partnered with a health tech enabled insurer, oscar health,

and now this year they're launching a medicare plan. >> right. >> here you are going into technology >> yeah. >> do some of these partnerships make you sort of think you can do it better >> no. i think you'll see us continue to partner it's more around this finding the sweet spot between advancing our partners business model and strategy and advancing ours. the oscar was a great example on the commercial side, but we felt that our ability, both from a medicare advantage and really on behalf of our members of what we were trying to get accomplished, it was much better for us to integrate it together in the back side of it as opposed to partnering and being able to do that with many partnerships. we have a number of partnerships that we're still part of so we're not doing this on our own. we're still building an ecosystem to allow us to advance it but do it in a way on behalf of our members working back. >> one of the things that continues to evolve and change is policy. these days in washington there's a lot of focus on really trying

to drive down costs. just yesterday the speaker of the house -- >> yes. >> -- unveiled the democrat's new plan to bring down drug costs. what do you think about the government sort of setting a cap on how much drug companies can increase their prices? >> well, that's a complicated question i don't want to get into all the details there. i do think overall we have to be oriented to lowering costs in health care. i think the ability to do that both at the counter, make it more affordable, whether it's a maximum out of pocket expense, which we are very pro for because we do that in our medicare advantage product unlike a medicare fee for service and also make it totally affordable what i mean by that is lowering the cost of care what you see here at studio h is really that, is how do we proactively manage health to slow disease progression >> do you think the government can hold prices down do you think that's a good idea? >> i think the government can help and assist where they create competition and in

addition in certain areas regulate the price i think that's one of the responsibilities they should look at, but i really would encourage drk also want to encourage competition. i think competition creates innovation and when you create innovation, everyone wins. i think just putting a cap on pricing is something that they -- that you can do in some areas but create a market that has innovation >> bruce broussard, thank you for joining us. >> enjoyed it. >> enjoy seeing your new studio h here in boston >> thank you. >> thanks mr. broussard. key stocks, a popular food company that just scored a former executive from tesla and one of the best quarters in decades from a supplier to rpatamerica. stay tuned, "squawk box" will be back in just a minute. so they sleep when they can. [ snoring ] cdw services can help.

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welcome back to "squawk box," everybody. futures still hanging in there up by a little bit dow futures up by 28 s&p up by 2.5. the dow and s&p 500 are a little lower. we'll see what happens today nasdaq is up if it continues on this trend today for the fourth

week in a row. now it's indicated up 6 points above fair value. >> beyond meat has hired sanjay shad, the meat alternative maker's chief operating officer. he had previously been senior vice president of tesla's solar business i don't get it i guess solar, fake meat and office furniture maker steelcase reported second quarter growth that beat estimates. they called the quarter one of the company's strongest in the past 20 years. i saw something, was that from seth zblams did you read that? >> the price of the 12 ounce impossible meat. >> i didn't understand it. because of stuff that's mixed in with it. >> no, it was $8.99 for 12 ounces that's not -- correct me if i'm wrong, that's not a pound. >> 16 ounces is a pound. >> i knew that

that's 3/4 of -- >> yeah. if you add it up, it's really good -- >> margins. >> i figure for that many i could be really -- if i'm going to pay up, i'd rather have the real thing. >> real thing is cheaper, actually >> if you were to cut the price on other things, that's a pretty expensive -- >> they're not going for people looking to save money. >> or be healthier. >> who are woke. >> no, i don't -- >> you have to be woke >> when we come back -- some people have no idea what we're talking about. >> no, but you get rid of the cow and get a bunch of your own. >> oh, lord. president trump's been vocal in his criticism of the fed including new attacks this week. it turns out they are just the

latest chapter in a long history of the critics fighting with the central bank. alan blinder will join us with his thoughts on this week's rate cut and the dc drama surrounding it stay tuned you're watching "squawk box" on cnbc great riches will find you when liberty mutual customizes your car insurance, so you only pay for what you need. wow. thanks, zoltar. how can i ever repay you? maybe you could free zoltar? thanks, lady. taxi! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

breaking news from the fed steve liesman joins us to try to fix it a little bit? >> yeah. i've got it under control now. this is a new feature, the repo thing the fed is doing dislocation of the overnight funding rate this looks better, i have to tell you, because the fed offered $75 billion of cash to do repo overnight skbl over subscribe? >> and it was 75.5 this is the closest they've been to meeting the demand out there in the market. the stop out rate which is the low rate was 180 high was 185 low was 180. weighted average, 182 which is closer to where the fed wants it

to be. i'm talking about the treasury issuance for 59 billion. they offered agency, mortgage back so, you know, it may be that we've gotten sort of further from the events that were out there. the tax payments the treasury issuance. even the saudi aramco thing has been mentioned amongst some traders that they needed some cash and so they withdrew from the reap poe mark-- repo market one is that the fed keeps doing the temporary operations two, it creates a permanent standing facility to do these sort of things and then, three, which powell told me in answer to my question on wednesday, we allow the balance sheet to begin growing again. estimates i've seen, create natural growth of the balance sheet, 8 to $20 billion a month of additional growth out there and some people are trying to call this qe light. >> it is. >> trying to dissuade them saying it's qe light because it's natural growth to go along

with the growth of theeconomy. the balance sheet in the old days when it was 800 billion not 3.8 trillion used to grow anyway, right? it used to grow with the growth of currency. >> yeah, but is this the new normal we're never getting a balance sheet that is anywhere near what it used to be? >> right if i could parse your comment there. the new normal is the fed is operating with a much, much bigger balance sheet that's bigger than the fed estimated it was going to be when it already knew it was going to be bigger the old new normal is that it's going to let the balance sheet grow again to be i guess -- >> but you never got to take away all that excess. >> you never took it out, but the problem you have is you have a situation, you've dramatically changed the rules of what the banks need on hand and jamie dimon will talk about this anybody will talk about this. >> they have to hold more reserves. >> more reserves against stuff that's out there liquidity ratios --

>> because we're forcing them to hold it -- >> they needmore reserves. how do you know how much more reserves are needed? >> yeah. >> you get to the situation where the repo rate blows out. some say the fed should have seen this coming the fed sort of argues, we didn't know, the market didn't know how do you know when there's too little stuff out there the price rises so now they know that they need to put more supply into the market to get a feel for where this thing should be. >> are there any potential bad things down the road we're going to keep a big, fat balance sheet and that's the way it's going to be unintended consequence or eventual consequence or are there any? >> i want to answer that two different ways are there any problems with the dislocation in repo? imagine there's a small hedge fund out there that can't finance its stuff overnight. all of a sudden you start to have the dot come through that the counter party risk is out there. this is not happening now, folks. this is not that situation it's that situation that everybody wants to avoid where all of a sudden -- >> what the heck happens when --

they're yelling at us we have to go what the heck happens in that situation if we don't really meade it now, we're already using this what do you do if there is a situation where that's need snd. >> well, then you have -- >> then we have an $8 trillion balance sheet that we're going to be dealing with >> i suppose you provide the amount of liquidity needed to hit your target funds rate that's the goal here >> reminds me of the old jay leno potato chip commercial. don't worry, go ahead. eat them all, we'll make more. >> exactly, becky. we can talk about the other part of your question, which is how much it matters that they -- that they -- if they have this ever expanding balance sheet people argued that it was a potential risk out there seems to be okay right now >> eat all you want. we'll make more. >> don't all these things matter in terms of the aftbsolute leve where interest rates are >> right if it's happening at 2%? >> yeah, if it's happening at

2% >> maybe i think that the -- this is a supply issue and i suppose you're saying if rates were higher, that it wouldn't be as big an issue i don't know. >> no, i'm saying for me to start feeling like ten years ago or something -- >> not saying it's ten years ago but what happens if you have a ten years ago, then what happens? >> no. no this is a matter of can people finance paper overnight? >> right. >> and the relative level of rate that they do it at i don't think matters so much as is there enough supply out there to finance the overnight market at the fed's target rate that they want i apologize to talk to people about all of this plumbing on tv. >> bottom line is it hasn't seen any -- >> you me it have to pay more. >> if they have to move off of it, i'm sorry. >> the fed doesn't want that rate to move. >> right >> it's -- i don't know that the fed is 100% sure how to calibrate all of this. there are several rates out

there. there's a lot -- it's really about how much money is sloshing around in the system and who has it, right? there's 3.8 trillion -- this gets to your initial issue here which is that when there was 800 billion in reserves, the fed just had to mentally think of where it wanted the rate and the rate went there. now it's a big thing of water going back and forth and how to calibrate it to the right rate is something the fed is learning as we go >> we've gotten used to a bigger bucket. >> don't worry about that. de blasio is coming home he's coming home so it's all going to be good. >> right >> going to be fine. >> right >> coming home now i feel better. >> steve, thank you. >> my pleasure. let's talk a little bit more about the fed at his post-fed decision conference on wednesday, central bank chairman jay powell spoke about receiving criticism from elected officials. >> i'm not going to change my practice here today of not responding to comments or

addressing comments made by elected officials. i will just say that i continue to believe that the independence of the federal reserve from direct political control has served the public well over time and i assure you that my colleagues and i will continue to conduct monetary policy without regard to political considerations. >> but criticism of the central bank's leadership isn't something unique to the trump administration in a wall street journal opinion piece alan blinder lays out the long history of u.s. president's bashing the fed. professor binder is with us. alan, it's not new to see presidents beating up on fed chairs, but it is new to see it advertised to the world on twitter in such a way, right >> yeah. well, two things are new people have short memories and they forgot that this hands off the fed policy only began with bill clinton and the point of my piece in the wall street journal

was if you look earlier than bill clinton there was one fed bashing after another. of course, none of that was on twitter. none of it was as nasty and personal as what president trump has been doing to jay powell he's calling him names like a child on a playground and i don't think you find any precedence for that. >> and a bonehead and a traitor. >> bonehead, traitor, yeah, all kinds of things. i don't think you can find that in past history. >> what do you think of jay powell's response to this? he says, look, i'm not going to take the bait. >> i think he's treating it with exactly the backbone and the dignity that he should i mean, it's a real contrast to the president who rants and raves and powell calmly says, i have a job to do the law gives me independence from politics. we are independent from politics and i'm not going to engage in a

tit-for-tat with -- he usually says politicians in general. he means, of course, the president who's the one who's giving him -- >> you're right, mr. president, when i said we were a long way from neutral on the low side, i was wrong. everything you've said is right and i've now cut rates twice >> i wouldn't put it that way. >> all right >> i think the fed realized at the top they were probably above -- around or above neutral. the estimate of neutral has been creeping down over time, as you know the fed is constantly adjusting it to realities. it could creep back up again i don't -- there's no fear, more certainty. it's always going to stay as it is now. >> he may have learned during the december selloff, something happened maybe it was the trade war something happened. >> it's possible look, i think as i said in the wall street journal piece, the case for cutting rates now is very debatable there is a case for cutting

them there is a case for not cutting them and you can see that among many other places on the federal open market committee itself, which is greatly, sharply divided. >> alan, you hold that right there because it's a perfect entree we now have eric rose engrand's statement. he was one of the two dissenters who decided that he wanted to vote against the rate cut. >> right. >> we heard earlier from bullard who wanted 50. let me tell you what eric rosen grand is saying. additional monetary stimulus is not needed for an economy where labor markets are tight and risks further inflating risky assets while risk clearly exists related to trade and geopolitical concerns, lowering rates to address uncertainty is not costless guys in the back, i couldn't want to put pressure on you now. if you could put up the full screen with bullard's points, he says inflation is low. he says we may already be near recession. you have these two really

opposing views, smart guys out there. where do you come down, alan is rosengrand right that there's this risk here of bubbles and pushing people into risky assets or should the fed be acting aggressively right now there's the bullard dissent explanation which is honestly the opposite of what rosengrand is saying. where do you come down on this >> i'm closer to rosengrand, if i was a dictator, a fanciful idea, i would not have cut the rates, either of the two, 25 basis points on the bullard side, this gives you a sense of why this is such a reasonable debate. i'd be watching very carefully for any signs of a down turn we don't really see them now, but any actual signs of a downturn and then i would fire away 50. i could imagine two 50s in a row or something if the economy really looks like it's losing steam but, look, we've been on kind of a 2% growth path give or

take for a long time now we still look to be on the growth path. that's what puts me more in the rosengrand camp than the mubullr camp. >> the yield curve has been inverted for four or five months now. what do you make of that and why is it different this time? >> right i think -- i don't make too much of it and i think the reason it's different this time is mainly that around the world and including at the united states, these aren't only foreigners, there's a rush to say fast that's given the apparently abundant demand. that has something to do with the repo issue you were talking about a few minutes ago. people are running into treasuries, which is, you know, the -- it -- some people run for

gold that's not really a safe asset more sensible people that are worried run to treasuries. you have this tremendous demand for u.s. treasuries. the short end, of course, is more or less controlled by the fed and the fed is now going down it wasn't before >> becky -- >> you have the reserve. eric rosengrand has a chart. he puts out charts in his dissent. lower interest rates are encouraging more flench underwritten riskier debt transactions he has a chart here average total debt to the ebida multiple it's now approaching 6 and above 5. it's higher than it was in 2007 as a measure of debt out there. >> what's your run rate of the gdp growth the last two years? >> been 2 -- i just did it, 2 1 2 1/4 i think it's been. 2.6. >> why say 2 if it's 2.6, alan

because it sounds better you don't like trump >> well, i don't like trump -- >> no, i know but -- say two we're still running at two is that 30 -- is 2.630 perce 30 than 2 >> we had a year or so after the tax cut in which the growth rate bumped up to closer to almost 3. >> oh, yes, the sugar high that wasn't supposed to happen either according to larry somers we were supposed to grow it at 1% >> well, i don't know. did larry say that i certainly never said that. >> we'll see whether -- you know, we are dealing with some things, some headwinds now you don't know it's going to be 2% for this year and next year >> all i was saying is that's where the forecasts are. they could be wrong. >> you said we've been growing at 2%. we've been growing at 2.6. anyway -- but who's counting as i say, who's counting. >> alan, thank you we appreciate your time today. alan blinder is the former vice

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from the day you're born we never stop taking care of you. it's been a big week for the bond markets with the federal reserve cutting interest rates for the second time since july and the two-year, ten-year spread almost inverting again. joining us to talk about the biggest opportunities in fixed income, brian railing, co-head of global fixed income strategy at the wells fargo investment institute. have we seen the lows in rates, brian, in your view? >> i don't think so. i think over time the trend is pretty clear, and, rates eventually will head lower maybe in the near term, not quite as fast, but, you know, lower rates are in our future, i'm quite sure. >> that doesn't sound like it is good news for everything else. does it? >> well, i don't know.

i mean, you know, low rates as long as they're not associated with the recession, you know, can actually be positive for a lot of risk assets, essentially what the fed is doing there, low rates, forcing investors into kind of riskier choices. >> so it is not at this point a global slowdown that brings us to new lows. it is just all the different reasons that, you know, that we use to explain negative rates in europe and elsewhere, inflation, it is a secular change in the whole interest rate structure, doesn't mean that we're going to have global recession or weak growth >> absolutely. right, so i think of it as, you know, you think of, like a recession, the conditions are favorable, right we need a spark, we still see something to kind of mix all those ingredients together to cause a recession. and then clearly you get

extremely low rates here in the u.s., but absent that, i think we can kind of continue along, continue along with some decent growth here in the u.s., but i think rates clearly globally and also here in the u.s. are kind of destined to stay relatively low. >> nobody will retire unless you retire and go into equity, keep following this -- this horrible sector of the financial markets. what should we do? buy some corporates, some junk, how do we get yield at this point, private equity? >> i do think you have to look for some of the alternatives as you see over on the equity side, the higher dividend yielding even within fixed income, you know, there are some opportunities, i think you have to be selective, you know. one area we have been advocating for clients for most of the year, and they become more expensive as of late, but preferred securities are an example where you can have high quality names, but they're subordinate and you get some

pretty decent yield and if you don't think rates are going up anytime soon, you're probably not too worried about the long dated or perpetual maturities there. yields there, they're 5.5% or so that asset class is up over 14% this year. >> do you -- so you never -- do you ever see equities decoupling from the bond market you're going to view this half full, that there is no alternative to equities? continue going higher, not that there is a problem globally with some type of malaise this is a positive thing for equities i would think eventually you decouple if rates went down so much >> well, i mean, i guess it depends why rates go down and how quickly they go down so, yeah, i mean, there is no question that if growth slows, meaningfully, that, you're not going to want to be in equities during that period in fact, even at those low rates, long dated high quality

fixed income, they're going to have really strong returns. >> you're still dancing, like chuck prince, goes down in history. we'll keep dancing until -- until everybody has got to find a chair and there is like three left for 15 people >> musical chairs. >> keep us updated we'll check back with you, lower rates, i thought we hit bottom, what do i know anyway, thanks down to the new york stock exchange jim cramer joins us right now. jim, we came into this week watching oil prices, seeing what had gone on with saudi arabia, all those huge concerns. the end of the week, friday, we haven't mentioned it once at all. and that's why you think it is time to sell the oil stocks, right? >> i just think that the forward curve showed almost no movement. so it was just a blip, we're producing so much oil here, we're actually discovering new oil. rusty brazil will be on "mad money" on monday, talking about big discoveries in utah. there is just so much oil here and we are the swing producer.

not the saudis so i think people just took solace in the idea we have a lot. two pipelines starting from the permian, we get a few more ships in and, yes, we will be the place that people go if there is a shortage in the middle east. we have got more, we have got better, all different grades and we got every single grade you need. >> you think that it means a lot of the oil companies are not going to be more aggressive, big oil companies, as a result, not a reason to be buying. >> we'll get a rig count rig count has been going down in the amount of oil going up there is kind of -- so sow the seeds of their own destruction look at of courccidental, they d high prices for anadarko a lot of the younger money managers think they're wasting assets i think they are. >> jim, thank you.

always appreciate your insight >> have a good weekend, everybody. >> great to see you in person yesterday. too long. >> first time in years, becky, thank you. >> good to see you. don't miss an exclusive interview tonight on "mad money" with the ceo of cybersecurity company zscaler at 6:00 p.m. eastern time ayuned "squawk box" will be right back. " it's not "acceptable or nothing." and it's definitely not "close enough or nothing." mercedes-benz suvs were engineered with only one mission in mind. to be the best. in the category, in the industry...in the world. lease the gla 250 suv for just $329 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch) tell him we need this merger. (in dutch)

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our guest host today, exhausted, paul hickey, co-founder of bespoke investment you look fresh, you're fine,

here since 6:00. >> normally up early >> you got up early today. you don't get up at 3:45. >> usually 4:30. >> really? >> yeah. this is child's play >> this is -- five days a week >> it is amazing that you guys do this every day at this hour >> you think we hit lower rates or go back down? >> as far as interest rates are concern, we're seeing economic data in the u.s. start to exceed expectations seeing that on a global basis, so i think it is hard to be really bullish on fixed income, especially long-term fixed income here when you have yields under 2% and i think, you know, with the economy picking up, interest rates, can't discount how stimulative they have been so far they have been to the economy, not on the trade side look at the housing numbers, housing starts, new cycle high, sentiment improved, existing home sales were improved so that stimulative effect and companies lowering borrowing costs -- >> can't be too optimistic

yields under 0% basically. >> yeah, anything which is, you know, impacted by rising rates, i think i want to be a bit cautious of here >> all right if you're out there, i'll see you on monday, if you're out ther there. "squawk on the street" is next ♪ >> good friday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. s&p is up 40 got quad witching today, s&p rebalance, that will give us volume at the open and the close. europe steady, india soaring as they slash their corporate tax rate, ten-year, 1.78 all the fed news this