druckenmiller with joe kernen a short time ago. josh brown, the fed needs to move rapidly towards a rate dangerously behind the curve, policy fraught with risk, excesses in the ipo and credit markets, among other places. your reaction to this famed investor sounding an alarm sort of and a big alarm? >> yeah. look, anytime somebody as circumspect and stanley druckenmiller makes statements like that you've got to pay attention, but i think at this conference, we have a lot of diversity of opinion, because just an hour and a half earlier, we heard from the woman who runs harvard's endowment fund say just the opposite. and we also heard ken griffin say the option. the fed should wait until an actual rerecovery seems to take hold before doing anything, because it's almost impossible to halt an interest rate hike cycle, or god forbid, roll it back, and actually ken griffin, i think made that case forcefully. so it's nice to hear different people having differ opinions, if you ask me which side i weigh out on, not that i think druckenmill

now, those are stan druckenmiller's sentiments. he's not just picking on ibm. he says that's what corporate america's doing right now, rather than reinvesting in their future right now. >> totally agreed. financial engineering. >> and a lot of that is done because there are other problems out there. look, we all know that we need corporate tax reform. >> problems? what problems! those are the problems that we have. the only problem that i see right now is a problem of growth, which can only be taken care of out of congress. that was what happened when voelker was the fed chair and you had the supply siders come in and inject the economy. >> but now we have all the liquidity and leverage. >> what we need is we need some real pro-growth policies. >> yeah, that's easy. [ everyone talking at once ] >> okay. >> you have overtaxation, overprotectionism, overregulation, these are all prosperity killers! >> big government equals small wallets. >> i agree with you, buddy! >> and thank god for the federal reserve because they saved us from a depression, rick, all right?

picks, the outperformers in next year's trading and of course we're minutes away from stanley druckenmillerege taking the stage at alpha. ang his to see how his best ideas are playing out. >> and not to mention, yellen and a bunch of other things. thanks. >>> intel shares jumping as q2 results beat estimates on the top and bottom line. upside from the companies positive reannouncement in june. the pc market, a surprising area of strength. still weakness in mobile devices. $1 billion operating loss in mobile chips and communications, although gross margin forecast, jon, look goods. a ten powered quarter. >> save. well, gross margin forecast look goods for the next quarter, but then after that, in q4, expecting them to come down ramping up factories. long-term benefit because it will give them a manufacturing advantage over competitors, but again the question is, are they going to be able to solve mobile faster than the forces of mobile, which kind of grew up under intel's nose, going to be able to solve productivity? we see apple teaming up with abm. apple does not use intel chips in its mob

. >>> meanwhile, i sat down with stan druckenmiller. he warned the audience that said policy should have us worried. >> to face fed policy since not only unnecessary, but fraught with unappreciated risk, when ben bernanke and his colleagues instituted qe1 in 20309, financial conditions and the real economy were in a dysfunctional meltdown. the policy was brilliantly perceived and a no-brainer from rafk/reward perspective. but the current policy make no sense from a risk/reward perspective. five years into an economic and balance sheet recovery, extraordinary money measures are likely running into sharply diminishing returns. >> now let's get to kate kelly with some of the other big highlights from delivering alpha. and the first thing stan said when he took the stage was how great the conference has become. >> i know. i was amazed at his stature. >> he made some similar comments before the financial crisis, a couple of years before. >> about the fed, not about cnbc. >> we have a clip, for sure. >> big time. there are clips everywhere. s

. >> stan druckenmiller will be on, chris christie. carl icahn will be on. and we have a mystery guest. >> right. >> toward the end of the day at 5:15. you're not that excited about this one. >> no, i'm not. >> do you know who mr. guest is? >> i do. >> he's not a mystery to you. >> it's not. >> it's a mystery to me. >>> and whiting company is buying kodiak to become the largest producer in north dakota's shell. and aecom company is acquiring urs for $56.31 a share in cash totaling $4 billion. a report on friday that urs had talked with rivals and buyout firms about a potential sale. the company is under pressure from activist jana partners to op enhance shareholders. it's a german company. anyway, another -- more tax dollars are headed there. and more tax dollars are headed to germany to build a soccer team. >> they don't need the money, apparently. >> who is the sub, by the way? >>> and shire is ready to recommend a new $53 billion takeover from abbvie. the two are in detailed talks. >>> and chocolate maker lindt is buying russell stover. the price is not d

i'd written a whole piece contradicting that -- >> contradicting warsh and druckenmiller.uts, steve. being an economist with an english degree. >> but my point was that they needed to show some data behind what they're saying. if they're positing a connection between quantitative easing and a decline in capital spending, they need to look at that. i looked at the data, joe, and i cannot find -- i really challenge them, i said you know what? i'm ready to believe what you're saying. show me some data on this. the data i looked at credited what the two of them said that there is a connection. in fact what the fed did and when the fed comes in with qe it comes in in response to declines in capital spending. what they're suggesting is that there's a connection between the two. it's just not in the data joe. i'm happy to show you my data. >> no. i don't want to see it. >> you don't want to see it? would you rather believe warsh and druckenmiller because they're both rich? is that what it is? >> the last data you sent me was about how you know these are actually really great jobs

the last time stan druckenmiller was on our air he was talking about the opportunity janet yellen had start tapering last fall. >> i don't see that happening for a long time for a couple of reasons. number one, if you look at where they were in their head with the economy, and last june, i think everybody's economic forecast are lower now than they were then. the other problem is, they've seen the trailer of the movie of what happens when you do start the tapering. so i think what happened in june, and the pullback, has made it much, much more difficult for chairman yellen to pull the trigger. >> well, it's almost ten months later, the tapering is well under way and the markets are rallying in spite of some expectations to the contrary. and gdp, while lousy in the first quarter, would seem to be on track for some improvement. so it will be interesting to see if druckenmiller, whose recent investments have run the gamut from a heavy presence in the pharmaceutical industry to his favorite stock, google, considers it to be nervous time. it would also be interesting to hear his take on th

stanley druckenmiller. known this man 25 years. he is a keen observer of rates.ted that anomaly at delivering el fachlt he is pointing out considering all the strong news of late, including the recent employment reports and industrial figures, it seems like the fed is well behind the curve by keeping rates down. either way, low rates force money into equities, perhaps even when it is unwarranted or when you think it's not going to go there that's part of the difficult nature of this market. some of the cross currents have to do with shareholder activism taking up some of the worst stocks. lately the worst stocks have a tendency to become the best stocks when activists step in and turn up the heat. as we note from microsoft today. after underperforming for years is a spectacular performer, in part because of a boardroom shake-up and activist added. in some of the newer, more obvious cross currents, they come from hostile takeovers. think of valiant for allergan. it's been ages since we've seen these hostile takeovers that move stocks more than we thought they woul

>> he does, on the friday morning, and he's of the view -- look, stan druckenmiller said it -- >> they do this, if they wanted to say here's where i stand relative to what the fed said, they don't have to do that by dissenting with the language. they still have that available. >> excellent point. i want to point out, though, that stan druckenmiller and jim would have a similar view, and it's as follows -- policy is very far from normal and the economy is less so. and at the very least, they're looking for the janet yellen fed to square that circle. how can we be so far from normal on policy and yet so much closer when it comes to, say, a 3% economy? and i know yellen's answers here, but those are the questions that the critics of the fed are asking. >> just one thing to add here. i think yellen is going to win all of these internal battles as far as the fed goes. she is going to enforce her will, but i don't know if she's going to win the economic war down the road. >> that remains to be seen, as we like to say in television news. >> can i just say to you guys that we'll have an answer

an hour ago, retire hedge fund manag manager druckenmiller said the mr. fed is putting the economy at risk. if you like someone other things, actaviss is up. citigroup that made news earlier this week with its settlement with justice department is down 4.5%. kate you led the questioning with one of the guys who has never been on television before, ken griffin of citadel. you hit him with the day's breaking news which andrew ross sorkin broke on the bid, the offer for time warner by fox. what did he think? >> that's right. he likes the deal. he thinks it's going to get done. let's listen to what he had to say. >> it's a great deal. time warner great assets. hbo, warner studios, content is king. both those assets have great content. deal makes a lot of sense for fox. makes a lot of sense for time warner shareholders. >> so there you have it. he likes the deal. i think he's the only person on one of our panels who owns shares of both stocks. he thinks we'll probably see more consolidation in that space. i talked to him about high frequency trading which has

john paulson, kernen's got trd k druckenmiller. >> most recently talking about pension reform and goingyounger generation concerned, as well they should be. >> kate, thanks. see you wednesday. carl icahn, one of many notable guests delivering alpha conference this wednesday. it includes a who's who of the investor community, offering their candid views, so be sure to check all of them out. really a great list of folks speaking, including chris christie, by the way. >>> coming up, sotheby's is going online. how will its new partnership with ebay impact the bottom line? >>> then earnings season is on, but buyer beware. we've got a look at the companies that often take a dip after reporting. that and much more straight ahe ahead. that and much more, straight ahead. in new york state, we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax.

stan druckenmiller echoed that, saying the shareholders of these corporations that are paying more inaxes in some way, shape or form as this all moves forward? >> what i see is that american companies are struggling to create jobs here in america. they're finding they can't compete around the world with this broken tax code. they're doing what they need to do to try to grow themselves as a company. i think the best tax relief is not only fixing this broken code but doing it in a way where companies who suck seceed can it here in the united states. they can't do it today. the root cause is what we ought to tackle. >> see if we get there. more news out of the eu levying sanctions potentially against russia. on technology, could include technology bus potentially exclude their oil sector. what are the further plans of the u.s. with regards to sanctions against russia? >> right now the president is making minor steps in the sanctions area. doesn't seem to be serious about taking the step and frankly europe hasn't been serious about taking the real steps that would cause a change in behavi

and i read some of what druckenmiller was saying and my personal view is that rates do need to go up.hat if you fast forward a couple years down the line, at some point, and i am optimistic -- really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. introducing at&t mobile share value plans... ...with our best-ever pricing for business. >>> welcome back to "squawk box." we do have an avalanche of earnings hitting the wires throu including 3m and caterpillar. >> general motors earning 58 cents a share in the second quarter. that is a penny shy of analyst estimates. revenue of $39.6 billion. also shy of estimates of revenue coming in at $40.58 billion. overall net income $200 million. here are the two pieces of news. general motors is taking two special charges in the second quarter, one of

. >>> huj fund stanley druckenmiller says ibm is the poster child for what's wrong with corporate behaviortoday. he says in this balance sheet recovery, you're seeing companies engage in financial engineering increasing their debt load to stock buybacks rather than investing in their own business. >> ibm is the poster child. they literally face the threat not too dissimilar to what kodak and xerox, in terms of a new technology staip staring them right in the face. and instead of increasing investment to combat the threat, they've actually borrowed a lot of money to buy back stocks. still to come on the show, vladimir putin says u.s. sanctions on his company are unprofessional and russia's p.m. calls them evil. where will a standoff lead inspect stay tuned, we'll discuss after the break. >>> welcome back to "worldwide exchange." you're looking at a live shot now of times square as new york wakes up this thursday morning. a look for you, too, at the u.s. futures as we head towards the open of the u.s. equity market session. right now indicating lower on the s&p 500 by around 8 points. the do

. >> that was stan druckenmiller making his presentation at delivering alpha. the full speech is online at deliveringalpha.com. today's fed meeting is part of today's economic show. the adp employment report for july will be released at 8:15 eastern time. that will be quickly followed by the first read on second quarter gdp at 8:30 a.m. joining us right now for a preview, mark vitner is senior economist at wells fargo. dickcoy is a chief economy. the number is probably the most important number we'll be reading for the economy today. dick, does it matter if we look at 2.9%? that's what people are expecting to come in. can we read anything into this or is this a rebound from lousy numbers in the first quarter? >> it doesn't matter a great deal. the monthly and weekly numbers are fresh and matter more. keep in mind, this is the average of the level of the economy in april, may and june compared to the average of the economy in january, february and march. >> when it was lousy. >> january was a long time ago. so these gdp numbers have so many components, they woul

but now we hear from stan druckenmiller who is short.ks this is a stock you should be going short. who do you think is right? >> well, we have a hold on the stock. and i think there's a lot of headwinds for the company going forward. if you think about their traditional i.t. hardware business, the services and the software business, those are really under pressure from the cloud at this point. but there's a lot of secular headwinds for ibm right now, revenue line is not growing for them. they've been declining for the past couple of years. so there's a number of headwinds. it's hard to get really excited about the name, even though it really is an inexpensive stock at this point training at about ten times forward earnings. >> who is a big problem when it comes to the cloud? is amazon with its aws? is it a huge threat because it's offering cloud services? >> it's not really any one company that's a threat, obviously amazon does come up as a name that people talk about. but generally, the move to the cloud means that you need less hardwar

where you are going to be interviewing -- >> stan druckenmiller. and nelson peltz, john paulson, governor christie. i'm actually going to be listening to -- i'm going to stay this year. going to stay. i'm staying. i'm not going to leave. see we do the show there at 6:00 in the morning until 9:00, and then -- >> last year you left? a little earlier than maybe you would otherwise this year? >> i guess i did. although it's a phenomenal conference, i had something to do. really. that's -- let's get back to europe and the sell-off. there it is! full day. it's awesome. it's going to be great. and don't -- i think there's going to be some programming. that day that we're going to be able to show viewers. but it would really be better -- >> if you were there in person and signed up. >> cue the crickets because it's the second day of janet yellen's testimony, i believe, in front of congress next week. >> it will be a good day to be talking about what happened on -- >> what do you do when rob -- do you just ignore him? >> watch this. >> the producer is yelli

same news for the president who i think is a centrist in this regard echoed stanley druckenmiller whenthe economy is closer to normal, policy is far, far, far from normal. and so his concept is we have a lot to catch up, and that we may be running quote/unquote behind the curve. >> he's been on a lot and he has said stuff like that over the years. he's been a little more hawkish but he's still sitting there when they're deciding all this stuff. >> remember he made a big turn to the dovish side when he decided we needed to peg it to unemployment and some other metrics. he's come back incrementally joe, he said one thing then he finally said in his last speech we're -- >> that's a little cya for the whole group. >> that's what i'm saying. and michelle pointed out, you go into this number -- >> now they can say at least one guy on the fed was saying this. so we weren't totally -- >> i'm not sure he's just one guy. and i'm going to go -- >> i guarantee you fisher -- >> possibly so that's where we focus on williams -- >> two fishers. >> cue up the star wars -- >> i was going to say, and the