xi this can't be an even deal. >> which is what president xi responded today that it has to be on equal -- >> does this move anything >> probably not. >> a lot of basketball today a lot of little tournaments and stuff. >> have a fabulous weekend, everybody. >> college. >> we'll see you on monday join us then "squawk on the stree "squawk on the street" begins right now. ♪ keep walking on good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber at the new york stock exchange cramer at one market in san francisco. dream force gets ready to wrap up today futures getting some balance out of the comments from the president on fox a few moments ago that a china trade deal is, quote, potentially very close. plenty to watch, whether it is the flash pmis, la guard's first major speech, the tesla cybertruck europe is up ten year 176, michigan sentiment in an hour.

road map begins with tesla's truck rollout, unveiling first all electric pickup. the cybertruck and it is nothing like you've ever seen before. >> wall street looking to snap a three-day losing streak. stocks seem to be set for a positive open as chinese president xi jinping says beijing wants to work for a trade deal >> and a roller coaster week for retail today it is gap, nordstrom, williams and sonoma and foot locker we're going to start with tesla, unveiling first ever pickup truck last night elon musk says it will have a starting price of just under 40k. production set it begin in late 2021 musk touts the futuristic design, the armored glass. as you might know by now, a demonstration to show how bulletproof the glass was did not go according to plan >> try to break the glass, please yeah

>> sure? >> yeah. >> well, maybe that was a little too hard >> man, this is getting talked about a lot this morning stock's down, bernstein says it looks weird. like really weird. what do we think >> well, i mean, since they announced this, since musk announced it, the stock is up 37 points from 317. the cybertruck to me seems like still born when you look at it look, there is no accounting for taste, maybe some people like the look of it i think what is important and phil lebeau went over this, it is not going to dent the ford, gm, chrysler, dodge lock on the best part of the entire market i think it is going to be a bit of a bust. i'm calling it the edsel, that's my name for it. >> you don't mean that in a good way. >> no, the edsel was a bummer.

i look at this thing and i do think that it -- there is a delorean aspect to it, that was a niche product. i think the trick to trucks is that they all look like each other. that's what people want. and this does not look like anything i don't know what it looks like. >> bernstein's point, guys, is that it will be niche in their view they're talking less than 50k units. >> yeah. >> right >> that's not going to move the -- move the needle so to speak in terms of sales. it is going to continue to be the focus on what we're focused on now, right? >> i assume so they say on paper, jim, the specs look good. price is decent. six passengers, four door and claims at least that the stainless steel alloy is -- i don't know, did musk say bulletproof? >> well, the window demonstration, i'm going to say that was a suboptimal launch that rocked the glass

splintering. i don't know you expect a lot when they do these things you do a rollout, a tim cook rollout or like elon musk rollout, you tend not to see the -- it is not a reason to buy the truck, how about that? the windows splinter i don't know don't we want like pickup and, you know, don't we want semitruck? david, come on you know when you go to buy a pickup, which i'm sure you've done many, what you want is a tailgate that is good and you want torque and power and all those things >> i need a lot of torque. i focus on torque. i don't know where the torque is but, yeah, you don't want people throwing rocks at you when they're in the back seat >> i want pickup trucks that i can use that are, like, you know, that are strong and powerful and have big ads during the nfl commercials. >> yeah, built ford tough. it does remind us yesterday,

mary barra said their first electric pickup will go on sale in the fall of 2021. so we're going to get a showdown, assuming both of these hit the floor at the same time >> we like trucks that use a lot of gasoline, that smell like diesel, and are powerful and i think this idea of etruck runs against the ethos of pickups, just raw torque >> you guys are talking very deep voices, tell you -- >> that's what i want. >> yeah. >> chevy truck chevy e truck. e truck? come on. that's not what we want. >> no. >> electricity, that's not for us we like gasoline. >> coal-powered truck. >> yeah. >> thank you, david. >> carry the coal in the back. >> that's good, david. >> it's friday >> let's go on can we go on to stocks now >> let's talk a little stocks as

david says president xi says china wants to work out a phase one ingredient on the basis of mutual respect and quality, goes on to say we don't want to start the trade war but we're not afraid when necessary we'll fight back. we have been working actively not to have a trade war. here is the president on fox a few moments ago. >> you have a deal potentially very close, he wants to make it much more than i want to make it i'm not anxious to make it we're taking in hundreds of billions of dollars in tariffs we never took in ten cents we are not paying, like they fed the line, the media fed the line about us paying. >> jim said he told xi that this cannot be an even deal and said he didn't say whether he would sign this hong kong resolution that just got through congress said we are standing with hong

kong, but wasn't to sti also wa with president xi. >> i don't think you can do that i think the president is uniquely doing some sort of -- what gary friedman from rh talked about, art of the deal, it is playing out. look, the president actually follows a lot of companies that report earnings. almost all the calls there is just -- particularly in retail, people are moving away from china, here is this -- he wants to string it out he keeps thinking that the longer this goes on, the more the company's move from china. which increases his leverage he's got the leverage. president xi, i think the mainstream media really loves a solid communist dictator i think that the -- the idea, he doesn't want even. he doesn't respect china he also disrespects all the presidents who played with china in a way that people -- that the chinese like but i don't know, really a deal if he hates them what is the -- no. >> so what happens once we get

closer to december 15? are you expecting no signing, and then a delay of those tariffs? or do they go into effect -- >> i think the market is fine. you got to keep stringing out the market, the higher the -- we had three days that we didn't go up because we lacked the statement like we got this morning on fox & friends, which is obviously the venue of choice now. >> what do we get? there is no -- >> we got -- listen, there is going to be a deal, it is going to be fabulous, but there is no deal and it is not good. i don't know who else gets away with saying that can you imagine? nordstrom was fabulous the numbers were terrific. but the problem was the numbers were awful and it was bad can i get away with that or will someone send me an email saying that's not -- that's not right >> not a lot of direction. not a lot of direction at this point in terms of trying to

understand where -- >> i know there is not a lot of respect between navarro and china. mnuchin, tremendous respect. remember, i keep telling you, this is the apprentice these are the -- this is the final episode. and one of these guys is going to go down the elevator and get in a yellow cab. and i think it is not going to be the navarro camp. i think it is the other camp they're headed down the elevator unless we use that memetaphor, people don't understand the president. >> are you specifically calling for either mnuchin or predicting mnuchin or lighthizer's resignation? >> no, i think mnuchin likes his job too much he can be sent down the elevator and not get a china deal navarro is adamant, you got to solve the seven deadly sins which include stopping fentanyl and stopping dumping the president is deeply committed to the navarro agenda. he's not committed to doing more trade. there is a wing in the white house i call the sportsman wing, the wing at the thornton wing,

the hank paulson wing. henry kissinger, they want trade with china no matter what. there is navarro, we want wholesale reform and i think the president's more committed to wholesale reform than they are -- than he is to getting a lot of spoilers. >> microsoft is now selling mass market software to huawei as they said yesterday. something that even chuck schumer now says is wrong and should not be happening. >> i don't think -- chuck schumer, yeah. that's not -- that's not national security. it is just software. to make your computers work better that's a good thing for the trade imbalance. i don't think anyone is really in the republican side against it >> sorry >> you can't take any direction whatsoever from what was said there. jim technically had a more, i'd say, pretty decent record so far in terms of relying on his sources to try to figure out what is going on

meanwhile, jim, you seem to think the market is okay with where we stand even the -- with the prospect of tariffs going on the 15th. >> i want to isolate macy's and kohl's we had a great number from nordstrom and the rack is doing well ross stores once again, value doing very well. foot locker is fine. we are not being able to prove that kohl's and macy's represent america. almost everyone else does and america is very strong those companies are great. their conference calls are uniquely all positive. the nordstrom conference call was, like, joyous. it has been so long. i felt like shopping >> we're going to get through williams & sonoma, ross stores, gap, foot locker cramer's mad dash, countdown to the opening bell upgrade for uber today this news on bridgewater's put option on the markets. look at the premarket here

"squawk on the street" continues from a minute. it was sophie's big day. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius.

because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.

jim's wrapping up his week

out west what a week it's been. it is our last cross country mad dash, for now, on this friday. retail has been a big feature this week, jim, of course, you just mentioned sort of the outliers, kohl's and macy's. tell me about william-sonoma. >> it is interesting because the call, i felt was actually pretty good but spent a lot of time talking about tariffs and how the tariffs hurt the beginning of next year. and i think that was the only takeaway negative, but the only one that mattered. i think that's a mistake i think the stock could turn up. anything that indicates there is real problems with tariffs has led to sell-offs this company has done a lot to be able to make these issues mitigated. but all the analysts, almost every single one, focused on what the tariffs are doing i felt they wore down the story and made people feel like you got to sell it i'm not buying it. i think you wait three days and you buy the stock of

williams-sonoma. >> do we know how much of their product is sourced from china, jim? do they give us a sense? >> they're talking about half. and then they're saying that that will be in half next year it is really interesting that some of these companies were so heavily china. rh the same. this is where the tariffs should have hurt them, but williams sonoma's gross margins went up that's why i'm reluctant to join the crowd of furious selling because i think those people ought to rethink their view given the fact that elm, west elm had 14% comps on top of 7. that's remarkable. the sellers refuse to think about anything other than tariffs. their head is in the sand. the tariffs haven't hurt them. it is not wayfair. i think they did a good job and the sellers are trying to -- just fearful of more tariffs >> by the way, jim, it is worth correcting, president trump saying hundreds of billions in tariffs, i believe he said on that "fox & friends" clip.

i think it is about 7 billion a month, significant amount of money, but it is not hundreds of billions yet >> this is the facebook problem, isn't it if that appeared on facebook, would mark zuckerberg have to reach in and say that's affecting a small group of people, cambridge analytica. no one knows what to do. he's prone to exaggeration that's fair to say >> yes yes. i think it is. stay right there >> got to divide by, like, eight. >> divide -- that's good policy, divide by eight. whatever number. >> divide by eight that's our new rule. >> i'll remember that. stay right there we got a lot more "squawk on the street." i mean you, jim, and you, viewer, and everybody else happy friday we're back after this. driverless cars,

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putting to bed this week a session, full of roller coaster surprises on retail and trade. michigan sentiment and flash pmis for the month of november coming up. opening bell in ten minutes.

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shop small and watch it add up. small business saturday by american express is november 30th. you're watching "squawk on the street." the opening bell in seven minutes. as we start this friday, last session of the week. jim, these eurozone pmis had something for everybody. three-month high on manufacturing. but ten-month low on services. what is the take away from some of these >> i think the -- some of the german companies are doing very well in china. volkswagen just announced a gigantic deal with china i think there is a turn, larry kudlow would say green chutes in europe it is odd because china is not doing that well. but you take a company like lamborghini, wow, they're represented here in dream force, they're selling so many cars to china. that's a classic play.

remember those cars cost $400,000 and i've driven one with my wife they easily go 170, 180. they're just doing so well in china. you got to think, wow, they're just -- china must turn. i don't think they have. you add up the idea that tesla is there, people are feeling more robust about the auto market in china, that's new. and it is certainly not ford -- maybe not what mary barra is seeing >> we're going to keep our eye on that, see what the figure comes in for the u.s trying to get some impact of these rate cuts. la guard, jim, gives this speech, first major speech after three weeks on the job and she really talks about a policy mix and some arguing maybe it is an admission that negative rates didn't work that well or out of gas. >> negative rates just are -- i think to me much more of a ploy of stealing our share. and that's why i think the president is really -- not that

articulate about, that's what this is about. negative rates are just a way to be able to capture sales they don't work any other way. i think rates show a lack of confidence, makes us feel like the banking system over there. the largest bank is -- i don't want to imitate how -- banco santander. and that's an odd thing given the fact that the german banks and french banks used to be very big. they need to fix their banking system it is hard to get alone and try to get it down you can't. keep the euro down and try to fix the banking system and you get more robust europe, but there were good car registration numbers this week. >> negative rates continue to befuddle many people you can talk to -- people can come up with reasons, but they still really do scratch their heads as to how they got there and how they get out of it >> i -- look, they got to have -- they have to break down some of the regulations.

they absolutely have to make it so that they settle brexit remember brexit? >> i do. >> an election >> they got to solve brexit. too many people think that brexit in europe will lead to four or five days of chaos i agree. nobody knows what the duties are. >> that brings to mind this production out of bridgewater that the journal is reporting on billion dollar bet that the s&p or euro stocks goes down by march. bridge water does say any one position cannot be used to deduce the motivation behind that position. but we heard dalio talk pessimistically about social order, markets, currencies. >> yeah. his last interview on our air was a little disjointed, i thought, in terms of him trying to articulate his overall views. it wasn't about the market as much as about the future of

capitalism bridgewater as leslie picker who followed it pointed out didn't have the greatest year hasn't had the greatest year this year. i don't know, jim. what is interesting is at least they're doing it with wall street banks some people wonder, they don't leave any footprint in the marketplace whatsoever people mentioned that to me. where are they if they're so big? in this case, the journal reporting they're doing it with names we know like goldman sachs. >> it is refreshing to have a hedge fund manager say negative things and put a bet out rather than just kind of trying to say that he's worried about world capitalism you're right, david. he has a very ethereal view. he's talking about the collapse of civilization. and he's buying puts on civilization to me, it has been a sucker's bet. i would rather by the calls on civilization that warren buffett always does. call, not necessarily options like the najarians, not that kind of unusual option activity, so to speak. but i think that buffett's side of progress is better than

dalio's side of lack of civilization >> jim, as we sort of wrap up retail, you got two camps this week, you had walmart, lowe's, target, good, and macy's, depot, kohl's bad, and then the final ones in today. what is the -- what would you say the takeaway is from all of that >> i think some -- i think there is weakness in apparel particularly in women's apparel. that's been called out by many i think there is mall weakness, the gap was terrible last night and splitting the gap into old navy and gap, i think it is just a deck chair, titanic deck chair. but i do believe that if you got an off price strategy, like, by the way, nordstrom had, you're doing okay it is have, have not if you're using a lot of tennell lo technology, you're doing incredibly well. split it between louis vuitton, uses a tremendous amount of technology and tiffany which uses very little technology and is mall based and you get a situation where anything that is in the mall that is either

destroyed or taken over. that macy's quarter was terrible >> anything you liked about it >> um, um, um -- >> okay. >> if you give me until, like, when i come back, i might have something. i mean, like on monday maybe i'll go to macy's, see something i like maybe a sale they have constant sales you have to do everything low price. you have to do online. target, target, walmart, costco, and, by the way, can i say for the record home depot wasn't that bad everyone's trashing the depot. people still had better same store sales than lowe's. it was a bad conference call and a good quarter the conference call itself was very much a disappointing versus the usual conference call.

>> their sales outlook is the lowest it has been in several years for the full year. but you're right comps 3-6 is pretty good, given the overall state of retail. >> s&p 500 at the cnbc real time exchange and the big board shares highlighting china. david, jim mentions lvmh that puts into focus a week of m&a. tiffany. pay pal. >> yes. >> xerox, which i know he'll get to and we're still waiting on schwab. >> we are. the schwab ameritrade talks, i wish i had something offered i find it odd that i have not been able to sort of unearth anything that isn't out there.

we had reporting from becky quick yesterday about a deal being very close the wall street journal following up yesterday, later in the day, with its own reporting of what it reported as on again/off again talks. that could lead to a deal very soon stocks are backing off a bit obviously we all know td ameritrade was just crushed on that infamous -- that day when they all cut commissions, schwab leading the way and ameritrade following. they said 26 billion in the journal will see you expect -- they got a good market check yesterday, jim. they wanted to see how things would trade. didn't look too bad. schwab shares were up nicely yesterday. but you would expect they would want to get something out there if it was as close as it was thought to be. i'm still waiting -- people know how to reach me. no that's not it either i don't know i got nothing.

>> i'm going to text you now see if i can't get you to say something. there is, david, this is astonishing that they announced this they say it is going to be news after 6:00 and then they say it will be coming -- i'm detecting a bit of amateur i amateurism. >> leaks happen. stories get out there. it can be a bit earlier than had been anticipated i would love to get a sense, again, others reporting he's been on again, off again, there is some antitrust that always can throw -- a board has to think about those kinds of things carefully the additional time, and effort that a deal may need in order to go through a tough regulatory process. so there are any number of areas you can imagine would be sort of key points, not to mention price, which always is one or even social issues, but it is

not as though the strategic rational for a deal is lost on people, jim. >> oh, no, look, i think that the reason i say that there is a lacking -- just not clear about -- this is a great deal. why don't you announce it? unless one of the parties balk this is fantastic for the industry taking out a big competitor, saving huge amount of money, making a colossus out of charles schwab and doing what is necessary in an era of robin hood and great technology bein against them robin hood, 500 million in three freeh mon free money, almost softbankish in terms of throwing money at something. they need to do this because of robin hood i would love to see a deal monday morning how about that >> okay. that sounds fine to me i'm hoping i can get in there and get some reporting done. >> is it still about this -- >> if there is anything to update, yeah, i know i'm getting, just not the right texts. >> okay. >> how about this piece, bloomberg did an opinion piece

that essentially schwab broke ameritrade to buy it knowing that zero commissions would hurt them more than it hurts themselves >> not nearly as important part of the business as schwab. >> a lot of talk about robin hood, equal to e-trade. >> yeah. >> how much money is robin hood taking in, jim do you know? in terms of what they actually -- what their funding is >> no, but you no he, david, that's that same model of revenue growth, no earnings, that the venture capitalists love out here. they love to talk about losing money. it is, like, wow, i lost even more money i lost big money in door dash. that's why we're going to kill grubhub. david, it is this whole rush to lose money which of softbank pioneered. >> yeah, well, if they didn't pioneer it, they certainly brought it to a new level, didn't they? >> yes >> still, though, even after wework, and others that's still

the discussion -- i know you're being somewhat sarcastic are people really talking about that or do they look for you return on investment of capital and a growth trajectory that gets you to profitability sooner now? >> yeah, it is about revenue growth and if you get revenue growth, people feel profitability follows. look, schwab developed a model of taking revenue growth by t e taking in assets it worked. robin hood is kind of, listen, if i get millennial accounts, it will work. so phi, same thing millennials are not going to the traditional. the millennials are going to what is free that's the pay pal deal. we didn't talk nearly enough about it that's honey when you hear about it, millennials only use it. i talked to people -- millennial kids lisa ellis, i heard 13-year-old liz, she talked about her 13-year-old loving honey younger people are in a different world.

younger people use -- we think of robin hood as someone who robbed from the rich robin hood is someone who robbed from schwab, e-trade and ameritrade that's robin hood. robin hood in tights >> right a lot of robin hood movies, hard to keep up. >> you know what was great yesterday? i read through the whole malone interview, i watched it, i did it again he trashed viacom. that interview, the whole interview, made me think so differently about so many -- so many entertainment -- why is that guy not afraid? was he saying go to ireland if elizabeth warren wins? >> no, he didn't say -- he didn't rule out moving to ireland. he obviously did say support bloomberg if that was a possibility and made it clear he's not a supporter of president trump to john malone you're not alone i heard from a lot of people who watched the entire hour and

eight minute interview, annual interview with john malone, of course so many things we don't show you on air that if you are really interested in the changing landscape in terms of how content is distributed here and around the world and who the winners and losers will be and how things change, i certainly recommend listening to it. and in fact, you know what, i did want to come to a couple of things i thought we would highlight again because, you know, charter has been a great stock this year. over $100 billion market cap company. i had the opportunity to talk to malone about it. as they're a very large shareholder at liberty and tom rutledge, the company's ceo. this idea being, and we talked about it, jim, that if you shut down the video business, you actually make more money here's what malone had to say in terms of explaining why that might be the case, and then you listen to rutledge respond >> it has been sort of discovered that actually margins improve as you lose video

customers and you become less capital intensive. and so if you shrink the video base, and don't try and innovate the video platform, right, your margins go up, your capex goes down, your leverage free cash flow goes up and your stock takes off. >> yeah, well, that is the narrative. and it is true, but i actually still think that there is margin in the video business. and it is not as great as it is in the broadband business and, yes, it is a little more capital intensive, but becoming less so. so i think that having a lower margin video business attached to a higher margin broadband business makes a lot of sense, as long as there is margin in the business >> i thought an interesting back and forth there. we pieced them together, jim but sort of giving you a sense charter, a great performer this year far above those prices that at least verizon was considering

when it was talking to them about a potential purchase sometime back or softbank, of course, as well. >> i thought it was fabulous the interview talked about how you want to be in distribution david, the apple -- the love for apple, it took me by surprise. how about you? >> yeah. me too i thought he introduced the new concept, not, well, a way to think about apple that i hadn't necessarily been thinking about it, which is they have all the connections, we know that. they can sort of get a sense in terms of how this thing is penetrating and what people think of it, that is apple, the apple product. streaming product. and then make their decisions about how much they want to spend on content as a result of what they're seeing. it is going to be some time. and then turn it on or off it a certain extent based on that, jim. i thought that was interesting he was positive certainly about their ability to at least gather subscribers, given they're

offering so much fro and so many devices, connected devices out there already. >> i thought he hit it viacom went ballistic. viacom talked about how they really had a great international business, that malone didn't know what he was talking about, they were very defensive and really felt he trashed them unfairly it was a bit of a backhanded, sherry didn't know what she was doing, redstone, splitting the company, being stupid. the company knows that it -- well, viacom knows it was not a great idea to split. david, the vitriol toward malone it was stark >> he tells you what he thinks, he's always been a good interview in that way for all the many years ask him a question, get an answer it is his opinion. he did say sort of -- he means at scale internationally it is an important business for viacom i think he was talking that they still don't have the scale globally that he feels you need. comes back to that time and

again as you well know, jim, as being a key, certainly business models and current age where it is not just about domestic subscribers if you're going to go direct to consumer or even if you're not and at&t also pushing back, i should add, as well, against the comments about hbo saying this is not a replacement for hbo, service hbo max, this is about getting new subscribers with an incredibly deep library. and a price point they feel is going to be viewed positively and so, again, as you might imagine there, also significant pushback that i received during the course of the day as you might imagine, given his strong views that hbo max is not necessarily going to be a product that succeeds. one other area we did talk to malone about was what is going to happen in terms of broadband? you heard rutledge talking about broadband, the higher margin product. he introduced this idea as well that you're going to start to see the potential for bundling on the broadband side. i thought it was an important point, we didn't air it yesterday. take a listen.

>> i would also encourage them to continue to do it as a value added service for those people who are still in the big bundle. and only make it a direct consumer product for those that have already made the decision to cut the cord on distributor and i would encourage them to look to their existing distributors to be partners in that those existing distributors to the degree they want to stay in the video delivery business will start to offer bundles of direct consumer products. a world in which discovery and hbo, for instance, are brought by people who already cut the cord but they'll buy it through charter. >> you get that. it is an interesting world that is still coming. on the broadband side, you can create small bundles of these direct to consumer products if they're available, put them together at some sort of discount, potentially, split a

revenue to some extent and obviously gain more subscribers. some interesting thoughts and i encourage people to watch the entire interview if they're interested john did go a lot of places. >> tremendous subtext i felt he says he wants international, that's where the growth is wants companies to have tremendous distribution, be able to capture the names, what they can do isn't that the description of the sky comcast combination, parent company of this network. >> to some extent it is, it is sky added an important international distribution component for comcast, no doubt about it, with content as well and obviously we're going a different route at comcast in terms of direct to consume we are peacock, the ad supported, that will be ramped up much more slowly, the spend going to be more modest than what you're seeing among the bigger guys. >> great interview >> thank you >> markets relatively aimless

here semi having a little trouble getting out of the gate. to bob pisani. >> flattish week overall really mixed results, retailers up and down. take a look today. somewhat inconclusive on the trading directions here. there is the semis up fractionally, retail doing a little bit better. banks better materials, industrials here. overall modest upsides i think the important thing on retailers, a lot of them were, well, expectations were pretty low. nice to egap mosee gap on the u. gap, put up the retailers here, essentially affirming the full year this is a sign of low expectations there and if you see we're -- rust tru trust me, they're trading on the upside f you look at the retail winners, it is a small group one company, target and then the discounters. costco, ross, tjx and walmart. these are your winners this year when you compare them to the group of losers that are out there, it is pretty stark.

the important thing is the apparelmakers and department stores have market caps now that are essentially midcap, i'm being generous, you can argue the market retail caps out there, gap is a $6 billion market cap why does that matter target, $64 million market cap for target gap, a tenth of the size haines brands $5 billion there nordstrom 5. macy's 4 you see what's going on here these are becoming very, very modest impact on the overall markets because they have been down relentlessly, 30, 40% some of the stocks throughout the year very, very difficult for them. finally, want to comment on the wall street journal article on bridgewater, taking out what looks like very large put positions. a little less here than meets the eye, i think it is very cheap right now to buy protection here is your vix at 12 here is some of the futures

contracts, december, january, february, march, and you see while they go up, they only go up modestly, 15, 16, 17. this is hardly apocalyptic going out into march what does this mean? if you buy 1% of your firm's assets to buy protection this cheap, that doesn't seem luke a crazy idea that seems luke a rational thing. it is cheap to buy protection right now. puts are about as -- higher and the vix is as low as it is going to get right now you don't have to go into the money to be profitable this is tied to volatility volatility goes up, the value of the puts goes up as well i don't think this is apocalyptic but mathematical calculation probably makes some sense. back to you. >> certainly bridgewater's reflects their statement today thanks sacha baron cohen accepting the international leadership award from the anti-defamation league last night he used his keynote speech to tear into social media giants

like facebook and mark zuck zuckerberg in particular. >> all this hate and violence is being facilitated by a handful of internet companies that amount to the greatest propaganda machine in history. the greatest propaganda machine in history let's think about it facebook, youtube, google, twitter and others, they reach billions of people the algorithms these platforms depend on deliberately amplify the type of content that keeps users engaged. stories that appeal to our base instincts and trigger outrage and fear >> cohen's point is that without universal truths, its comedy jokes don't land it is not as funny if you don't get the original reference, but it goes to impeachment this week people cannot agree on basically the facts we heard. >> the facts we hear, for example, yukraine was not

involved in any way in terms of the 2016 election. you're right he points to the fact that they benefit from stories that are specific to whipping up the emotions of those who are reading them, even more so, because then it will result in more and more and more and that seems to be part of the case and then we have such a different response from the various platforms in terms of what they will and won't police. >> right and, jim, of course, yesterday, dow jones saying, according to sources, facebook is sort of adjusting their stance on political ads. >> yeah, look, this is really important. sacha baron cohen, much more serious guy than i thought the guy is a total heavyweight he's echoing, believe it or not, marc benioff's line. this is what benioff has been preaching. i'm out here because of dream force. he's talking about the idea that, well, if facebook's pernicious and i think sacha

baron is taking his cue from -- directly from benioff and they're great friends. >> they are? that's interesting >> yes, great friends. very close >> interesting crazy times. we're going to learn a lot more in the months to come as we get closer to the election season. by the way, check out our podcast if you can, you can listen to the opening bell hour of "squawk on the street" wherever you listen to podcasts. dow up 57, s&p at 3110 don't go away. one... two... and three is how many times carson has beat cancer. yup!

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with splunk. doug her rimerritt with a fantac quarter. they're all moving up quickly on the backs of salesforce. you're seeing fantastic price gains and i think they're justified. splunk was terrific. >> highlight for the week for you out there? >> things are really good in the economy, and especially good in the tech world the naysayers they have their head in the sand that is bullish week, the most bullish i have seen probably in the last, i don't know, three or four dream forces. >> yeah. all of those cios surveys that talked about depressed capital spending expectations are just surveys and what counts is the bookings. >> you have got the data centers on fire, the pcs doing well. you have got all the companies that are aiding businesses trying to digitize, go in the cloud.

you have maybe 15% cloud penetration. what a remarkable week, some companies are doing so well. i'll come back younger, more excited than ever. >> jim, what's on "mad" tonight? >> well, it is time to talk to chlorox. they're based out here call center stock people don't know and then anthony noto is representing the future. is sofi the robin hood of cash men in tights. >> that was the mel brooks one. gh v ince of thieves, men in tits. tights have you a great weekend y. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity. like 5g. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation...

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no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades. good friday morning. welcome back to "squawk on the street." markets having a decent day on some relatively constructive trade head loons and more to come. >> our road map today starts with tesla's smashing unveil, a newest cyber truck will the car be a hit success?

>> we'll dig through the numbers. >> a wealth tax warning, why it's not just billionaires who could take a hit. moan time, elon musk with tesla's new cyber truck last night but in typical elon musk fashion things didn't quite as planned. phil lebeau joins us with more. >> we'll show that in a bit. this is the tesla cyber truck. call it a rolling metallic trapezoid. it is not your typical pickup truck. they're offering three versions of it going on sale or delivery starting late 2021 or 2022 range 250 to 500 miles what do the analysts think mixed. those with serious doubts said the cybertruck looks weird, like really weird it's unclear who the core buyer

will be and there's positive comments one said the unique and futuristic design will resonate with consumers leading to solid demand over time we expect impressive features will win over a larger audience maybe over time we won't remember what happened with the demonstration on how durable the windows are. did you see that they threw a heavy ball at the windows to show that they were shatter proof. well, they spider webbed not just once but it happened a second time. as they were trying to demonstrate how durable and tough and different the subertruck is but that certainly was not the case last night and that's getting attention today looking at shares of tesla showing you the stock over a period of time here. where it's really run up it's had a nice move and today that's not the case. down more than 6%. i would not attribute the drop to the event last night with one exception. this is a sell the news evens we

heard people suggest yesterday because the stock moved so far so fast over the last couple of months and will not do much for the bottom line any time soon. >> so you could almost say that that stock is equivalent to the shatter proof glass there. phil, obviously the analysts commenting on whether there's enough of a demographic to actually purchase these trucks what do you make of the design how important is design in trucking and consumer demand for tesla's products >> reporter: design is huge for tael tesla and it's incredibly important for tesla. the issue for some people is they thought it would be a true concerted effort to cut into the business of the big tree coming to pickup trucks that's not what the cybertruck is all about it will appeal to urban buyers, people to make a statement who aren't really using the truck for most trucks are used for and in terms of making a style

statement, sure, tesla made one last night but in terms of taking away market share from the big three who dominate the pickup business that's not going to happen with this truck. >> all right we'll have to wait to see what gm comes with on the electronic front, too phil, thanks we'll talk to you in a little bit. we are getting university of michigan sentiment we'll go to steve liesman today. >> good morning. yourpt of michigan final coming in at 96.8, better than the preliminary number and better than last month. this is the consumer sentiment that consumers will go to the malls with before black friday one, decent number expectations and readings on the current conditions both pretty good i don't know if you remember but we had fed governor talking about the economy, the risks but that she kind of lights up talking about the consumer basically holding up the u.s. economy and very quigley, guys, with the end of the week here, show you where gdp stands.

1.5% that's up against the actual 1.9% held up well throughout the quarter and very quickly a wide range here with the atlanta fed at the bottom at 0.4%. so a bit of a slowdown from the fourth quarter is in the cards right now, carl. but we'll see with the black friday day coming and the rest of the christmas holiday season if the consumer can maybe get the number up higher. >> yeah. perfect segue. thank you for that steve mentions retail. it's a busy week of earnings black friday is a week from today. courtney reagan has a look at the names that have reported in the past few hours. >> a week from today i know i know okay so it's been like choose your own adventure in retail and things change in the middle. foot locker were up 5.7% and sent shares higher premarket but

then the retailer issued disappointing quarter sales and now shares are lower nordstrom bucking the trend after hours. at least with that stock reaction shares up about 8% after beating earnings by a wide margin and increased the full-year guidance but just by a bit despite the current quarter wide margin beat the department store sales were actually down more than 4% the off price, so the nordstrom rack business, sales growth of 1.2% fewer markdowns in the quarter on the call executives said there's a strong response to the new york city flagship we're a month in a stronger sales lift for the men's store across the street and he said opening the flagship is perhaps most important milestone in the company's lon history which was first imagined 20 years ago and then gap shares, lower now but those, too, were higher in

initial reaction the adjusted earnings slightly better from two weeks ago. comps in unchanged and down 4% and that lowered full-year earnings guidance reaffirmed and the permanent ceo search is on going and the old navy spinout is moving forward and the board believes in serving the two focused consumer section >> i was in a gap yesterday which -- >> what did you think? >> i don't do -- >> ever. >> ever. >> right. >> holiday shopping? >> lost? >> jeans for 30 bucks. $30. i don't know how much discounting there's going to be going into the hall say seasoli. >> and at gap stores, discounting for sometime 40% is fairly normal which is a bit of a problem for them and hard to wean customers off that when you trained them to

basically wait for 40% more than half the time it seems at least. >> nordstrom was down sharply on the calls numbers earlier this week seems to be making up what it lost today. >> yeah. exactly. i think the nordstrom shares are an interesting story overall for the year for the year down 25% and last 3 months come up and had a nice little run an then they got pulled down from what we heard from the department stores this week and then reported, whew, okay, not so bad and then made up some ground. >> you are not done making tv today. what is coming up? >> coming back later in the show at the end of the hour organized retail crime has become a bigger problem for retail so much so that it's starting to show up in the retailers' profit margins. several earnings calls we have a look behind the scenes with home depot and take you inside and show you what happened we had a search warrant issued

and they should care about. >> working on this - >> for a long time since about may. >> i can't wait to see it. >> can't wait to show you. >> courtney, thank you. >> thanks so much. wework with an all hands on deck meeting and presenting a five-year strategic plan to employees. the news of the presentation reportedly in a memo sent to employees a couple weeks ago coming after announcing to lay off 2,400 employees. i mean, these all-hands on deck meetings seem to be every couple weeks now as this company restructures and tries to keep up some kind of morale for the employee who is are still left at this company. >> yeah. i was talking to somebody last night about this, close to it. elevator coming up and down. people saying are you out, are you in as you might imagine but there seems to be some confidence at least on the softbank side that they'll get things together in terms of at least presenting a plan that

makes sense for streamlining and continuing growth. >> i think what's difficult for the employee base here is this idea that, you know, you have a plan and then kind of backtrack a little bit even looking at what's going on with the softbank investment and reports that $3 billion bailout package to be restructured and executives not happy with it after all and people not happy with adam newman's pay package other people are laid off. that could be restructured it is hard i think people for people on the inside to keep moving forward when plans are out there and there's so much leaking in the immediate why and then things get tossed and and changes all the time it is really difficult to move on from this it seems like an extra big hurdle compared to other companies. >> it's easy to lose sight they almost went public for a darling of the street and now talking about massive infusions of

support, thousands of people losing their jobs. in the course of a few weeks. >> all the acquisitions that now seem to be looking like they could be unwound and lead to additional job losses. they were a pretty decent sized acquirer, especially amongst start-ups and they don't know if they're losing their jobs due to unwinding the recent acquisitions. >> we'll see and look for details today. when we come back, retail caught in the cross hairs and ceo of ace hardware going boo the holiday season and a wealth tax warning, why it's not just billionaires who could take a hit depending on the policies eventually take place. we'll lloufi y in. dow's up 84. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium.

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risks to global supply chains are rising as the uncertainty of a phase one trade deal grows we have the ceo of ace hardware. john, when you were on "squawk on the street" back in may you said about 15% of your business was being impacted by the trade war. how has that breakdown changed and how are you thinking about things now that it looks like the deal is kind of on again, off again? what does that mean for planning your business? >> you know, these tariffs i can't speak to them. i'm probably unqualified to speak to the macro view but from

our lens they're pesky, frustrating and manageable i think the numbers are similar to last time we talked the primary aim is the same which is to insulate our customers from these tariffs the new lists we have told our suppliers we are not accepting price changes and you have to work further up the supply chain to deal with the outcome of those. >> the suppliers are taking the hit than from the impact of the trade war. have you seen any kind of trickle down affect or do you believe that ace hardware is big enough to maintain the pricing power? >> if you look at the third quarter, for example, our revenue is up 7.2% and about 100 to 125 basis points is inflation relatted an ena chunk is tariff but it's manageable. >> john, assuming december 15 goes into effect, does that share of margin compression change >> again, our primary aim remains to insulate our

customers from these and if they come down that's the number one strategy the second is absorbing some of those internally corporately and the truth at the end sliding through they end up to the consumer with a higher price but that is the last of the options. >> have the tariffs impacted your inventory management strategy at all? have you had to kind of pull forward some of your reserves to account for what's going on with the trade war? >> no. our inventory management practices haven't changed at all as a result of this. of 4,600 u.s. stores, they're locally owned and operated so that does not change at all these guys are going to be in stock particularly entering the holiday season that's their first choice. >> we talk about tariffs for obvious reasons but it was a good quarter u.s. same store sales up 3.4%.

what in particular seems to be driving things is there anything that you can cite in terms of that number >> yeah. we had a nice quarter and i'd say it's primarily driven by three things first is digital business continues to okay set rate second we opened 48 new stores, 39 of those were in the u.s. and helps fuel the growth and lastly the comps up 3.4% and the credit for that squarely falls on the shoulders of the local owners that impress me with the ability to adapt and capitalize on the landscape in which we operate and i give them a lot of credit and plow forward despite the news is of the day. >> what does that mean, capitalize on this new retail landscape? what are they doing? >> well, you hear a lot in the media about a retail revolution or the retail apocalypse and i think there's two things going on there's a logistics and a labor revolution going on and we see that's forcing a real bifurcated

retail market. one end is low service, low price discount prices and you see many of them reporting an doing very well and then the high touch, high service ultra convenient speblcialty and focus on high service, high touch, you know, convenience because they're right in the market. three quarters of the u.s. within 15 minutes of an ace store and then of course differentiated high quality product. >> i want to ask you about pricing in a couple different categories lumber is mentioned in the earnings calls of the publicly traded companies and then great runs in names like sherwin williams i wonder whether or not paint you think has that momentum behind it fundamentally. >> it does we are not quite as impacted by lumber we have stores that have it but generally not impacting us there's 268 categories in a

hardware store and we want to be famous for 4 one is paint we struck a deal with benjamin moore paint. we have what we believe is the premium brand of paint in the u.s. and then power equipment, barbecue which is really big this time of year and home preservation those four remain our growth strategy and fueling quite frankly most of the comp growth. >> john, our jim cramer talked about the e-commerce strategies among your peers, home depot, lowe's and looking at the differentials over the last week you guys up 81%. what do you think is the buying behavior for hardware stores in a online capacity that made the sales so much more successful in the quarter? >> i think speaks again to how i talk about the local stores adapting and capitalizing on where the retail landscape is changing 92% of the dotcom business was

either in-store pickup, bopus as the industry calls it. we are trying to differentyate the delivery using our assets, our stores, our trucks and our people to do that last mile delivery to the local customers and because our stores are so ubiquitous it does help us leverage where the consumers moving to the ultrahigh convenient experience. we tend to say we're going to be faster than amazon on stuff we stock because we are already in the neighborhood. >> already in the neighborhood john, thank you so much for joining us. >> you bet, thank you. when we come back, a new media triple play. when the executive tom rogers join us. his company has got a media merger going on and tells us about it when "squawk onhe re" tus. t ♪

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numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. welcome back small but interesting deal this morning. announcing a three-way combination for the first platform dedicated to live new, sports and esports

executive chairman, contributor, joins us here. what do you have torque sports, frankly and winview and calling it engine and saying it will have the elements of live event media to require new sources of revenue and distribution as a subscribe fees fall off and cord cutting and that you are going to be dedicated to axel rating new live immersive experiences for consumers. what does that mean? >> great question. i haven't put three companies together under one roof as a public company before and that kind of underscores just how unique combination this is engine, each contribute something meaningful here. what we have here is some real depth in each of those areas when it comes to esports, torque is the leading content provider

of auto racing, mobile games you interviewed greg yesterday, liberty. they own formula 1. >> yes. >> torque developed the formula 1 mobile racing game which is the biggest free mobile racing game out there torque goes all the way up to the highest end of esports with simulators that ferrari uses for the kind of live esports competition that is a rage now they also have a measurement company that actually measures the analytics of the esports sports contests out there that you see on twitch with millions of people participating. you need data like you do for tv when's engaged, how, give it to the brands they have a competition platform that will be part of engine media. which actually has esports tournaments and those esports tournaments have prizes. what a great synergy opportunity for winview. it allows people to play along

while they watch sports on tv predicting what will happen next and win prizes we have always thought, hey, why not apply winview to esports you have the gamers watching all kinds of gaming competitions and esports and gamers, give them a game to play, engage them and torque wanted to bring that element to what they were doing. they were on their road map to eventually get there we bring that right away of course, frankly, which i'm also chairman of, is a news content monetization company, allows content to be managed and provide ad sales for leading franchises 1,200 broadcast stations and those stations can provide a very interesting promotional platform in terms of their looking for additional ways to monetize their inventory and

bringing that into the fold gives a way to promote this in a way that's an important ingredient so a lot under one roof. >> a lot going on there. how are you -- so the way you're reaching the consumer specifically in the new company is what? >> well, we're going to have direct consumer experiences. winview directly reaches the consumer by allowing people to watch live sports on television. play through an app that allows you to, say, play a quarter of basketball game or a quarter of a football game, compete to win prizes torque as i said as a competition platform where people get to participate directly torque is actually building a live esports arena in miami to also serve as a production facility interestingly, they also own a franchise that's a form of a television show that is on cnbc world's fastest gamer which is all about auto racing so very deep in that particular esports

vertical but developing others it goes to a key issue you discussed with john malone yesterday. that was an excellent, excellent interview. >> thanks. >> it was all about what's going to happen as the bundle breaks down and entertainment programming goes to streaming. and we all know that entertainment programming is going on demand. and as the cable and satellite bundle break down, what's left of live television is news and sports but as the bundle breaks down the subscriber fees that have supported news and sports aren't there either, something john made a special point of coming to cbs viacom and so you have to think of developing for the industry, not just these direct consumer experiences we have but a platform for the industry to develop new sources of revenue be it news or sports or increasingly esports as live media. so that there is a way to support what the rest of the entertainment world and the bundle going elsewhere to netflix and the streaming services we have created the

first vehicle under one roof for the industry to be able to have those kind of services to support it so it's a b2b play. >> i haven't heard you mentioning games of firing guns at somebody. is that intentional? >> winview is about live ports on television. most of what torque does in the content space is auto racing but it's competition platform company called umg in the process of finalizing the acquisition. does have tournaments that include fortnight and call of duty epa same time nba 2000. >> i wonder if you saw liability long term on those kinds of games depending on the resolution of gun discussion in this country. >> that's an issue to continue to get a lot of discussion and the tournaments and what we can bring to it we think brings a healthy way for people to engage in that kind of esport. >> are we in the earliest days of esports >> think we are in the early

stages i think there are different ways that people looked to participate, team ownership, league ownership we think we have a really interesting way of allowing people to compete for prizes but broadening the platform so the millions of viewers of the competitions can equally participate and that combination of content distribution and measuring the analytics being the nielsen of esports which is a key role of this combined company we think gives us a data play that frankly also has by way of between the two companies over 100 million touch points a mob which is really very substantial reach already to build on. >> always amazes me. stadiums or arenas filled up with people watching people play video games. we have to leave it there for you. >> really appreciate you having me getting a news alet this morning on airbnb. hi, deirdre.

>> good morning, carl. airbnb losing a key executive ahead of the expected 200 listing. belinda johnson stepping down as chief operating officer in an e-mail to staff viewed by cnbc she says the decision is family one and will join the board of directors as the ninth member and third woman. the timing for airbnb is rough she is at the company since 2011 she's become the number two of brian chesky and called the cheryl sandberg of airbnb. she was chief business aofficer and steered the company in large part due to her airbnb has taken a different approach with regulators than other gig economy start-ups like uber. airbnb is a friendlier disrupter and worked with regulators on policy, still though, the company approaching a 2020 listing is facing a slew of

regulatory disputes over taxes and renter rules with a number of city governments including new york and new jersey where residents voted overwhelmingly to impose greater regulation on short-term rentals in a statement, co-founder and ceo brian chesky says, quote, belinda was the first executive i ever hired when i hired her, airbnb was making noise with governments around the world and a lot of people that didn't like us she taught me better she told me that we should meet the people that don't like us. guys, this is a big loss for airbnb back over to you. >> thinking, deirdre, how active they have been in terms of news making, policing content, more aggressively you mentioned the municipal laws this olympics sponsorship deal they've been active. i wonder if it's a path of coming to market. >> right i think that this is more scrutiny as they head to

publicly that listing so the scrutiny is on them. they need someone like belinda johnson, certainly so it's a big loss for the company. now, you know, the reason is to spend more time with family. what i have heard is there's not any other reason to think that's true and the timing is very tough. she is a very trusted executive to brian chesky and as i mentioned she's been there since 2011, the first executive he hired and seen as very, very strong on the regulatory front but remember, she does stay involved as a board member so they have that benefit. >> she hadn't actually been there that long in that specific role i remember there was some kind of internal battle between her and lawrence tossi, the cfo and led to his departure from the company and interesting to see whether her departure slows things down for the ultimate listing if that's the route they choose to go down. >> she is staying until march

1st. i'm told by the company they'll be looking for someone externally and not replace that coo role instead, they get a vice president of operations so perhaps that tells you something about how the executive team is going to operate remember that it's three founders are all still there with brian chesky as ceo. >> all right great reporting, deirdre thank you so much for bringing that us. now let's send it over to sue herrera. sue? >> good morning, everyone. here's what's happening at this hour president trump says he does not expect to belie impeached and claiming the democrats had nothing inkricriminating on him he also said that he will stick with vice president pence as his running matd he made those comments on fox this morning three iraqi protesters were killed, 25 wounded with clashes of security forces near a strategic bridge in baghdad. the clashes come hours after

some of the most intense street altercations in recent days. firefighters battling a massive blaze that all but destroyed a beachfront hotel in the english town of east born. no one was injured and the guests and employees have been accounted for but it is unclear what started that blaze. a large crowd welcomed pope transis at bangkok's cathedral arriving for a mass dedicated to young people those outside the church followed the ceremony through a large scene tv and the pope will be leaving for japan on saturday for the second and final leg of his trip to asia. you're up to date. carl, i'll send it back downtown to you. >> all right sue, thanks so much. as we go to break, take a look at the best performing names on the dow so far for the week for the time being, a uwerep 65 back in a moment whether your beauty routine is 3 steps...

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elizabeth warren and bernie sanders taking aim at the super rich but how could they proposed taxes affect the not ultra rich? robert frank with economics correspondent neil irwin the article "how democrats would tax high-income professionals" appeared recently in "the times. good morning. >> good morning. >> neil, talk about who potentially could be at risk for paying more. >> right so put the wealth tax aside, put some of the taxes on capital aside that senator warren and other democrats are talking about. out there in plain sight is this idea of changing how seattle seahawks is taxed, how payroll taxes. right now seattle seahawocial ss are capped you don't owe a dime in social security payroll taxes senator warren wants a tax there's a democratic proposal on

the hill, $400,000 either way that results in high income professionals, people in the mid-six figure range with a higher marginal tax rates than now. >> those numbers make sense to you? >> yeah. it is not just two cents and not just billionaires. if you make more than $250,000 your federal tax rate under all the plans about 55%. now, if you live in california and new york, your federal tax rate is -- and state, is going to be about 70%. so it's upper middle class, 70% and that's the part that voters aren't hearing about. >> can't deduct the taxes. like the one we're in. so we're at 14% in new york. add that -- and new york city. i mean, oh my. >> i think the polling showing broad support of the tax plan of liz warren is about the wealth tax applying to 50 million or more and i think different result and, neil, correct me if i'm wrong, told people what would you -- would you support

it $250,000 or more 55% tax rate and see a different polling result. >> yeah. what i do agree is the proposals exist in isolation and you have to look at them holistically to understand how senator warren to overhaul the entire tax system and not just the wealth tax and capital gains taxes, not just social security. it could add up to big numbers for a lot of people. >> we hear a couple of things, one is that you have to go through several hoops to get into law the others given the debate this week the party has a natural pull toward the center and that listening to obama's comments over the past couple of days that there is not something that the market at least should worry about. do you a gree? >> the odds of both a senator warren, senator sanders wins the nomination, they win the presidency, democrats win the senate, that's a lot of ducks in a row that are lining up and if you look at the probabilities together it is not enormous.

that said, i think we see overall the thrust in which the democratic party is going. whenever the democrats come to power again, it is a different approach to what obama took. you look at taxes for obama during the obama administration for top earners. 4.6 percentage points on the top rate another .9% on the obama care tax. we are talking two to three times just on the social security piece and a different impulse from the democratic party than even five years ago. >> neil, what point do you think democrats have the propensity to switch parties with higher taxes or the likelihood of higher taxes? you know, given that obviously as you mentioned other issues have come to focus ever since the obama president in that party. do you think that, you know, in knowing this that people will actually switch parties to the republican side? >> so i don't know about that but i do think we see evidence that high income democrats, affluent democrats and rich suburbs, westchester county, the bay area, they have issues,

taking issue with higher taxes, we see that with the salt deduction debate right now the things on climate taxes, carbon taxes nobody wants to pay more money in taxes how much are these kind of progressive goals that affluent liberaling believe in, how much are they willing to pay for that i don't know we'll know until it's a subject of a real debate and not just swirling in the atmosphere type of debate. >> we here in new york at 52% something percent. right? that's not dissimilar from what europeans say. >> right. >> they get free health care and usually free education. >> right. >> what do we get? >> we get a big tax bill if you add it together, it is an important point is you can't just look at the wealth tax but all these things combined. we would be the highest taxed country in the world exceeding denmark and by the way we don't have all the services that denmark has in the u.s. so that's a really good point and i think voters just have to know

truly what the choice is when they're talking about warren's tax plan and what the plans add up to for the tax bill and the bottom line opposed to 2% on billionaires. >> i wonder how much currency you're putting into things floated on the republican side namely that kudlow's at least looking at ways to cut middle class taxes even further. >> i mean, it's hard to say given that the republicans had full control for two years and didn't really put forward any plan, anything specific. you know, it's hard to -- it's like water, trying to get your arms around what's on the table. we have large deficits and with the middle class is further and i have a wait until you see it type of attitude on that. >> robert, real quick, 2% on billionaires but 2% anything over 50 million? >> that's correct. 6% on billionaires. >> 6% on billionaires. >> and what the most voters and

at her campaign appearances hear is 2% on billionaires and it has doubled since she even started from 3% to 6%. >> to pay for -- >> health care, yep. >> keep it on honest on the two-crept thing. >> thank you. >> thank you, guys. still to come, grab and go cnbc investigates retail crime losses hitting an all-time high. we'll take a closer look when "squk t see rurawonhetrt"etns d. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. with a nation-leading $150 billion commitment

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one semi stock up triple digit this is year could have more room to run. find oorut me on line. more "squawk on the street" is coming up. sometimes, the pressures of today's world can make it tough

to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. now time for our etf spotlight taking a look at the semis. on track to snap a four-week win streak and post its worst weekly performance in two months. chips dragged down by kla, amat,

lam research all slapped by a sell rating earlier in the week but the smh overall outperformance with a 50% gain. all right. time to send it over to jon fortt for a look at "squawk alley. >> watching intuit after earnings a beat but they didn't raise because they're ready for tax season, getting into that with the ceo of intuit coming up imagine a disease is caused by too much of a bad protein,

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imagine loading up a car with merchandise and leaving the store with it. retail alsos are at an all-time high shrink they said hurts profits they gave cnbc access to how they fight a never ending battle against stealing courtney reagan has the investigation. >> reporter: you're watching brazen retail theft. the suspects so sure they won't

get caught, some get aggressive when stopped as this surveillance video from home depot shows. most likely they aren't shoplifters, people that steal items for their own use. instead it is a bigger problem known as organized retail crime, with criminals working together to steal for profit. home depot's jamie born investigates it starts with boosters. >> a booster is somebody that's a professional shoplifter, doing it for profit, not just for personal use. >> are they guessing what items are in demand, know it from history? i know i can sell a lot of drills >> there are many locations out there that are giving a list to the boosters. >> if they're giving lists, they're part of the crime too, are they not >> absolutely. >> one of the location was a pawn shop. the manager was charged with selling stolen property. the case is ongoing. the next stop, this raid

bourne and his team helped law enforcement serve a search warrant on this home. >> when we do search warrants with law enforcement, we can provide the value of the merchandise. >> reporter: the suspect allegedly stole power tools on facebook they seized a pallet of items from the home, brought to this warehouse. it may look like home depot, but this is an evidence room inside is over $1 million of stolen product, seized from a raid of seven pawn shops. >> you see on the inside of a pawn shop, they say lowe's and home depot price, 129.99 our price, 79.99 >> chris is a special agent with utah attorney general office. >> how is it secondhand merchants sell it for less than a big box retailer than home depot or lowe's can buy it for

>> they found the answer in these sting operations >> sell them, pawn them? >> sell them. >> this is undercover video of law enforcement selling items that seem stolen to those pawn shops. the case led to a new utah law that makes it harder for pawn shops to buy unopened product. >> since we passed a new law, seems like it is getting better. what we have seen is a shift to e-commerce. >> like the power tools we saw confiscated during the raid. here they were for sale on facebook organized retail crime is growing, cost the industry nearly $800,000 for every billion in sales home depot said its profit took a hit the last three quarters because of higher shrink or loss of goods, which includes organized retail crime >> while we don't comment on particular numbers, we're seeing shrinkage rates rise across the country. >> reporter: scott blend is in charge of asset protection for

home depot. >> organized retail crime drives other crimes, it drives drugs, it drives guns, it drives human trafficking. i think the openioid is a piecef it. >> reporter: why should consumers care isn't home depot able to absorb this. >> we have been good if we cannot continue to do business this way, we will have to pass it along >> it is not just home depot dealing with the problem lowe's reported earnings wednesday. when we asked the ceo about this issue, he said yes, this issue also hurt margins in the recent quarter. >> incredible. for history, typical shrink rates are what, 1% >> yeah. and they've gotten higher and higher it sounds like a billion dollars in sales, 800,000, it is not that much. but it is coming up on earnings calls. home depot called it out in each of the last three earnings calls. it is a problem. it is hurting profits. as scott glen said, if it gets

bad enough, it is possible prices have to be raised at some level to make up for it. >> anything they can do on the technological side, amazon grab and go, seems like it would prevent this shrinkage at stores is there anything some of the more traditional retailers are doing? >> home depot, some items that are higher theft, they have video cameras right there, at eye level to be theft deterrent. here it is we are videotaping you now as you grab this off the shelf, even if you do so as a regular customer you don't want to make it uncomfortable for honest shoppers to grab that power drill off the shelf. they have spider wraps around things, has to be removed before an honest shopper can take it home, can be annoying. in pawn shops, they'll selling them with spider wrap still on it that's a crlue an honest shoppe

didn't walk out with that. >> no longer just apparel. you can tell from the production you did a lot of work on this. thanks, court. software firm intuit moving lower, despite eniarngs beat an exclusive with the ceo when it starts in a few minutes and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.

i'm a regular in my neighborhood. i'm a regular at my local coffee shop and my local barber shop. when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly.

because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up.

good morning it is 8:00 a.m. at tesla headquarters in palo alto, 11:00 a.m. on wall street. "squawk alley" is live >> oh, my god. well, maybe that was a little too hard ♪ ♪