lee cooperman and mario gabelli. starts right now. ♪ >>> live from the most powerful city in the world, new york, this is "squawk box." >> welcome back, everybody, to this special edition of "squawk box." i'm becky quick with joe kernen and andrew ross sorkin. we have do legends with decades of wall street wisdom waiting in the wings is rick rieder. a lot of people on the street are now calling him the new bond king. he will join us in a bit. we'll be kicking off that conversation in just a bit. but let's check the headlines. >> good morning, everybody. here's what's happening at this hour. let's tell you what's going on. eu antitrust regulators expected to give the green light to ge's bid for alstom's power business today the clearance seen coming with conditions. that deal announced over a year ago. verizon announcing a mobile streaming service this week it's called go 90 which refers to people flipping their phones 90 degrees to watch in landscape mode. and look at equity futures right now. they're at a positive s

if lee cooperman is right and it's a symptom of the trading algorithms, does that make it more likelynd safer to raise rates? >> i think that's probably a yes answer. look, those technical and forced selling and mechanical programsing a gaited the decline, but i think china and widening credit spreads and weakish economic earnings and weak technicals all began the decline. it's the programs that accelerated the decline. >> what is your advice to investors, bob? >> my view is that we've done some technical damage to the market. the most of the decline is in the rear-view mirror but we're not going to v bottom and go back up. we need to heal. on weakness, i would be adding. i don't believe the bull market is over. the case of improvement in the equity market is dependent upon earnings, and earnings are dependent upon the consumer spending money. >> would you agree with that on a broad statement, scott? >> i would say so. you're still looking at an economy here that's relatively strong. i think the domestic economy is going to do quite well. in fact, even benefit from the softness in eme

lee cooperman this morning and another pointing out that one of the huge unknowns and the real wild card for the fed has to be the stronger dollar. look at the economy maybe it would be worth raising but with the stronger dollar it definitely puts the united states at a different advantage in terms of its exports you. >> know, beck, a couple things, awesome stuff as always, but i'm really glad that you brought up the ibm stuff because i was filling in on "squawk box" that day and when you asked them about ibm, i love it, i love it. he's buying and then that 13 f came out and he's not buying and we were both shaking our heads about that and maybe i'm not losing my touch. a lot better to know that he just got confused. >> thanks. awesome stuff as always. >> let's get more insight on warren buffett from somebody who follows him closely. rob miles is a berkshire hathaway shareholder and is also of the warren buffett ceo. there's your cover, and welcome into "power lunch." robert, thank you very much. and this is the weird thing you teach, this is the weird thing i have trouble getting my hea

lee cooperman was on "squawk box" this morning, here's what he said about where he sees opportunity andll come back the other side and react. >> we see europe as being a bit more interesting than the united states. we see japan with qe infinity being interesting. sk so that's a relative weighting. would we expect japan to outperform the u.s.? probably. >> he had said prior, josh, he and his partner over at omega. they expect a little run between now and the end of the year. >> i agree with his comments on europe. think it's where we were in 2012. continental europe. i think there is a high probability for not just three months, but a few years of outperformance, european stocks relative to the u.s. which doesn't mean the u.s. stocks have to be bad. you look at the bounce, it's an oversold bounce. there's only four of 30 dow stocks, only four of them, visa in that group, have charts that you would consider constructive. the rest are under serious what's called distribution. every up date is met with a failed move at the end of the day or the following day. >> you still think we're in a d

i know lee cooperman and mario were on saying 7% going forward for the next ten years. >> they like japan and europe. >> for 5% for u.s., plus 2 is 7. we see 7 nominal, 5 real. 7 real, in efa, including japan and about 11 in emerging markets. now emerging markets is a small percentage of the world capitalization. so when i overweight it that means i might go to 15%. but it's still just in a world that's got low return. that high level is very appealing to me. >> so john, historically a rising dollar, rising rates have prejudiced the emerging markets most and you say things have changed. i read a report from the imf today, a white paper, staying just that. and that paper came out in july. why will that be different this time than it has in the past? >> i think it's a matter of degrees. in other words so where we're talking about we really like to draw a bright line between investing, speculating and trading. and those are all three important things to be doing if you're going to be a successful investor. but we're thinking about investing. that rank order, you can argue about the level, so

. >> there is amid all of this gloomy and negative sentiment still people out there like lee cooperman'll have a great run to the end of the year. have a great holiday weekend. "power lunch" begins right now. >>> stocks are near session lows. thedown right now is down 297 points. the nasdaq and s&p also down more than 1%. keep in mind, folks, this part of the day has been the most volatile part of trading during this rough patch for the markets. hi, everybody. i'm brian sullivan in for tyler mathisen today. >> mandy drury, live on the floor of the new york stock exchange. hello there. i'll get back to the markets in just a minute's time but first we want to get to the jobs report from this morning and the impact that could have on the fed decision which is due out in just 13 days. >> senior economics reporter steve leisman is here now with

lee cooperman.e is what they had to say about what's going on. >> important thing is where they are going to be in five or ten years. i'm confident they'll be considerably higher in ten years. i really have no idea where they'll be in ten days or ten months. >> i think the u.s. market is reasonably fairly valued. i think the markets in europe are several years behind the united states. we've seen europe being more interesting than the united states. we expect europe to outperform the u.s. and japan to outperform the u.s. probably. i don't think the u.s. is poised for decline. >> down days i like because we buy them cheaper. we don't try to figure out what's going on in markets. i've never been good at it. >> two smart guys with high net worth. >> i love that. >> let's get to our "closing bell" exchange. kevin kelly is with us here. >> what does it say about the market where we are right back where we started middle of august? >> it has more to say we are rangebound right now. we see asset classes wi

. >> there is amid all of this gloomy and negative sentiment still people out there like lee cooperman who think you'll have a great run to the end of the year. have a great holiday weekend. "power lunch" begins right now. >>> stocks are near session lows. thedown right now is down 297 points. the nasdaq and s&p also down more than 1%. keep in mind, folks, this part of the day has been the most volatile part of trading during this rough patch for the markets. hi, everybody. i'm brian sullivan in for tyler mathisen today. >> mandy drury, live on the floor of the new york stock exchange. hello there. i'll get back to the markets in just a minute's time but first we want to get to the jobs report from this morning and the impact that could have on the fed decision which is due out in just 13 days. >> senior economics reporter steve leisman is here now with more on that jobs number. how this all plays into the federal reserve. i like jim's point there in halftime report which is if they don't move in september, we're goi -- in december, we're going to drive ourselves in sane. >> this is ri

buffett, lee cooperman, tepper and now ackman. >> everyone saying the economy, those valuations are allf a sudden becoming a big concern. interestingly enough, we are looking at an up week, and if we stay flat or positive, this week could be one of the best in several weeks for u.s. stocks even though it's holiday shortened. >> if the dow closes the week higher, it's ten consecutive weeks for the up down, up down. >> volatility. we are going into a big week on the fed, and how to play the markets ahead of that. joining us now, president of wells fargo, and department head of u.s. economy at bank of america merrill lynch. daryl, how do you take positions ahead of the federal reserve meeting next week? every fed meeting is anticipated, this one even more so. >> well, certainly we are only five days away, and the fed and the markets don't know where it's going. if you look at the u.s. economy, you now have more people employed, making more money, producing more goods and services, and spending more money than ever before in absolute dollar terms. if that's not a recipe to start bringing th

our conversations start tuesday with investing legends with lee cooperman and mario gabelli.joining us. jeb bush will be here to talk jobs and taxes, and we wrap up with bill ackman. this is the tip of the iceberg for what is a 20th anniversary to remember. i can't wait to get things started next week. >> have you seen some of tthe -- some of the pro moes? >> i've seen them. >> i got a little misty. they're talking act our show. >> it's fun. we get lucky. we get to talk to incredibly intelligent people. >> competitors. a lot of people watch and it's grat f gratifying in. >> you've been here. >> dog years. 20 is the new 10. did you see how i walked up the steps? 20 is the new 20. i think it's just from doing, i walked a lot the last few days. what was that guy on the left? is he the retiring chancellor of some -- when did i turn into blake kerrington? >> you're distinguished. no. >> i've got to get a haircut otherwise i could be a running mate for a certain presidential candidate because we have the same hair. >> well, no. no, not if you're thinking who i'm thinking. you'll fi

the big article everybody is talking about is the article on the fd where lee on cooperman's omega fund noted it was down. he felt risk parody funds were partly responsible. i would be careful about jumping on this bandwagon that some other person's investment style is responsible for the volatility. so what risk parody attempts to do is have a portfolio aimed at a certain level of vol hit. if it is more volatile, you reduce parts of the portfolio. this is just an investment style. the other point i would make is that risk parody funds where all of the sudden they are getting attention, not a huge part of the markets. >> i am aware that there is leverage involved in here as well. my point is, every time you get some kind of move, somebody else blames somebody. i am not saying it is trivial or irrelevant. work on china and the federal reserve. oil would help a little bit. right now, near the highs for the day. dow is up 102 points. guys, back to you. >> bob pisani. let's check in with rick santelli at the cme. hey, rick. >> hey, carl. today is a great day if you are a student of the mark