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tv   Squawk Box  CNBC  August 22, 2016 6:00am-9:01am EDT

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>> good monrning everybody. welcome to "squawk box." andrew is off today. wrapped up the olympics yesterday and we'll see him tomorrow. and right now it looks like the dow futures are up about 2 points and people are already talking about janet yellen's speech on friday. in jackson hole. let's check out what happened overnight in asia. you're going to see the asian markets, the nikkei was up by a 1/3 of a percent and in europe, in the early traiding you'll see at least at this hour, the dax is slightly higher and the cac in france. the ftse is down. check out crude oil prices, which over the last week or so
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have built up pretty steadily. there was a gain for wti. it's down a dollar. >> and here's what's on the agenda economically. tomorrow, look for july new home sales, followed by existing home sales and thursday, that's why it's called weekly jobless cams and on friday, it's the second estimate on the second quarter gdp. >> two for two. >> second estimate on the second. first on the first. third on the third. symposium in kansas city. oh, no, it's jackson hole.
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and i guess luhoyia was taken. hp, tole brothers. >> and now to the latest on the battle over control of viacom. it looks like this battle is over. and i believe dauman will be sticking around unsill september 16th. and redstone removed dauman from his trust and planned to sell paramount pictures. his daughter largely behind much of this. he's going to receive about $72 million under the settlement agreement. this was probably the way you had to imagine it went with the
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redstones owning 80% of the vote. check out shares of viacom. they're up. and finally. a fairly big acquisition. it's a cancer drug company called medivation. $14 billion. i think they're talking about cash. >> they are talking about cash and we're hearing this was a pretty competitive process. a months' long battle and over the summer raising its bid and it looks like pfizer has walked away as the winner. and buying medivation. and after this long battle with
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multiple parties involved has run up quite a bit from earlier this summer. he would gain a prostate cancer drug bringing in a pipeline asset in another form of cancer that has gained a lot of interts sins since we saw a compeltative on the same clas. so, after pfizer was trying to do the big deals and this beeves up their cancer business, which they're really focussed on and we're expecting the announcement of that deal as early as today, guys. >> some day i may have to worry about prostate type issues. but it's an inscrutable disease to think about. used to be people would rush to surgery and that caused all kinds of problems.
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and then they said a horrific number of men get it, depending on how old you've got to. and for a while just watch it and then there's the laet laser stuff. what does this drug do? >> this is specifically approved for catastrophic casteration resistant. >> casteration resistant? >> if you thought i was going to lead you to say casteration, i'm not that interested. what time is it? i have a 6-month old german shepherd and i'm not sure how to break it to him. i'm sorry. >> wow. joe's never apologized before.
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normally you treat it with hormone therapy and this means it's tried to progresses after you've tried to treat it that way. >> so, it's a gentler form? >> not necessarily but once your cancer has kept spreading -- >> gentler in terms of side effects? >> i'm not sure necessarily that it is. but it's another way of trying to stop the cancer. >> to treat in a hormonal cancer, is casteration part of the process? does it end up happening? >> well, yeah. they call it that and there can be surgeries involved but it's the hormone treatment. >> it's medical stuff. >> there will be a doctor on later today. >> and the other stuff is immune
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obe -- immuno-based. and. >> getting in the way of the cell's ability for dna issues. it brings in a little over a billion in u.s. sales. and some analysts are saying they cover medivation saying i don't know how you reached this amount. it grewa almost 70% in the u.s. >> i thought people were using the laser thing. >> yeah. but in terms of drugs, this is growing fast. backed by smaller company in the u.s. and astelis is the partner. >> meg, thank you.
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>> hopefully these guys are squirming over there. you all right? we don't need to worry. this is way off in the future for guys like us. a company has hired paul herendeen as the new ceo. >> so, they named a new cfo yesterday. when it comes to the broader markets, stanley fisher says the central bank is close to hitting its full target and offering a pretty upbeat outlook on the economy yesterday. he said the job mark lt is still impruchbing and did not address when the fed should next raise interest rates and that has been the question on the markets' minds. janet yellen will be speaking in jackson hole on friday.
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joining us to talk about all of this is portfolio strategist at advisors and we have drew mats. deputy chief u.s. economist. joe, is it fair to say your view of the market depends entirely on whether interest rates rise or not? >> it does. it's definitely one of the top two biggest factors we're looking at right now. the first earnings and the second interest rates. we think the u.s. equities, could end the year pretty strong and those two variables, the way they're lining up is number one, earnings are recovering and even though we're talking about the possessional for a hike, it's still far from where we were at the end of last year.
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>> which is why stocks had such trouble in january. >> higher rates are always going to be a negative and in a week's profits's environment and maybe one hike. so, that sets up pretty good for equities. >> do you think we can maintain this goldy luck scenario? they were dovish and now dovish has sounded more hawks. >> i think it winds up with inflation getting to the point where the fed's uncomfortable and maybe have to go faster than the marketsal think they can and i think if you talk to knee of the quote on quote experts, we'd say this is way too low. the market is not listening to what the fed is saying and part of the kaumptary from the fed,
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the market isn't listening to us and part of the problem is every time we did, we've gotten burned. >> and i was shocked at how dovish those were. if you really want a job on the markets, that is not the way to do it. you can have everyone who's talked say things are looking more likely for an interest rate hike. when you read through the minutes, it doesn't sound like that's the way they're talking about things in the room. >> they're like, well, i know where that guy is and there's another person on the other side offsetting that person. sfwll and they've cried wolf so many -- oh, we're ready. how many times have they said it was a live meeting and it was dead every single time. and they knew it.
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the numbers are going to get better economically because we're going to november. everything's going to look better, which should give the net it leeway to raise rates except you don't raise rates either in an election year. >> so, taking joe's view of the world, the way you thread that needle is to talk in september that you haare going in decembe. >> you are -- black is good. is that it? >> yes, black is good. >> so, you're wearing black every day? >> i am wearing black every day. i'm 32 weeks pregnant. they bought me red and i look like a big tomattomato. >> think of white with horizontal stripes. >> i actually have one and int warn it.
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>>ality n alitt this point, you just go with the white with horizontal. >> i'll wear it tomorrow. you look out. i have black or navy on almost every day. >> but we digress. i don't know how this plays into fed -- >> what's the future hold? i'll just take over. >> honestly though if we're right about this conversation and droew's right and they rais rates faster than expected. and december kicks things off, do we repeat what happened in the stock market last year? >> it would clearly be the big risk if the fed has to hike more aggressively than people think and as we stand right now about 95% of the s&p 500, maybe negative 8.4%. so at least a couple quarters
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off. >> if we see one rate hike and the dll strengthens, does that immediately put the pressure back on where our exporters and multinationals can't get the sales they've been thinking p. >> if we don't repeat the first half of last year, then earnings growth snap back but if oil doesn't hold, then, yeah, i think you'd be ratcheting down your earnings expectations. >> we're bullish. >> guys, thank you. coming up, donald trump stepping up his fund raising totals and still short of hillary clinton. spending a lot less. and we'll be joined by our friend from the past when she was just a normal person.
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and now kellyanne conway is the campaign manager for mr. trump. for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. ♪
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welcome back everybody.
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guess what? it is only 77 days left until the presidential election. donald trump and hillary clinton are both back out on the campaign trail this week. and here with more on what has been an incredibly eventful campaign. john, what have you seen so far this weekend? >> reporter: well, mostly what everyone was watching this weekend was kellyanne conway in her debut as the trump campaign manager and you can see she's had an immediate effect in the tone donald trump has said publicly. he issued a statement saying he regretted some of things he had said. take a look. >> he wants to regret anytime he's caused somebody personal pain who he didn't want to cause personal pain. >> so, he's called the khan
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family and called john mccain and apologized? >> no, he's said if i have caused you personal pain, that he regrets that. and that's the donald trump that i know. that's regretting that he said if i have choseen the wrong words or said something in a way that i didn't intend, then i regret that. >> reporter: so this is the latest reset for donald trump. and we'll see how long it lasts and how it plays out over the next week, guys. >> yeah, yeah. all right, john. i love when steph goes after the republicans, man. he's tough. thanks, john. let's bring in -- he just really hammers anybody associated with the clintons. and senior advisor to the trump campaign. where to start?
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it was an interesting week and depending on which side of the isle. some said it could have been a great week for trump except that there was the -- i don't know how they phrased it. it would have been a terrible week for hillary, they said if trump hadn't stolen it. but it seemed like a pretty good week for trump. >> it was the best week that trump and the campaign has had in a while. national security speech, defeating isis. tuesday's speech on inner cities, law and order and on thursday using the teleprompter. >> john can't believe what you're saying. because she doesn't have to do the deposition in public, she just has to fill out things. so she can come up with all the answers, that was a good week for hillary? >> no, more that it was a
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negative week for trump because trump is still trump and that is automatically a negative. the idea that somehow kellyanne conway can go on a green room apology tour for trump and there's a reset is preposterous. >> so, did hillary not been hillary? >> she's hillary and that's why she's leading. >> that's why she continues to lie on emails. continues to lie on the clinton foundation. they admitted it's one ses pool. >> if you want to talk about a ses pool, look at donald trump's business which is in debt when he's supposed to be a financial
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geni genius. >> and both of these issues are not popular with voters. >> and both candidates have very high negatives. >> but only one is clearly winning. >> incorrect. if you look at the polls. >> i've looked at every poll. >> what if it narrows and becomes more competitive? >> if we're talking complete hypotheticals, every presidential race has been tight in the run up, things tend to tighten after labor day. >> up 17 points after the republican -- >> i think both sides say the polls matter when they're winning and when they're not -- so can we agree that they matter? >> they're a snap shot but there's a wide array of those
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polls and you can look at ones and say it's tight. but what matters is delivering the message. >> a terrible message that people hate. >> hillary clinton has no message. she's hiding for umtrom the ame people. she tried to blame it on colon powell and say he told me to do it. >> the email thing still isn't sticking. >> you have no answer. >> it's not interesting to american voters. you have no answer on the fact that your candidate is tanking. >> 70% of americans believe she's not truthful. >> aside from all of these scandalous things people focus on, let's look at policy. donald trump has talked about lowering tax rates and hillary clinton has talked about the
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higher paying their fair share. >> the democrats have tried to high taxes thing for long time. more now than when obama came to office. the economy is barely recovering. the obama-hillary proposals have obviously failed. donald trump is bringing in new ideas. the corporate tax bracket will revitalize this country and inner cities. >> what i think is hilarious is when republicans say they care about the poor and inner city folks when donald trump's message to black voters is you can't do anyway worse. hillary clinton's tax plan by every economist who is not writing for breitbart who's now running the trump campaign -- >> what do you like about her tax plan? >> the idea of the wealthy
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finally paying their fair share . >> they pay 50%? 60%? what do you want? 90% like under carter? >> 78 days to go and donald trump is flat lining and you can't put lipstick on it. >> they believe she's not truthful. >> does it come down to who you trust? who you hate the least? >> stability. stability versus instability. >> who's bringing the real ideas and whose rar life long liar in hillary clinton. >> donald trump is a life long bad businessman and race baiter and i think america votes for a bad businessman or a bait baiter. >> a better businessman involved in the democratic race.
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he's created jobs. >> created jobs with -- >> the private sector experience. >> i can see breitbart has already taken over the campaign if we're repeating the old chestnuts. >> and they don't want to put rat parts in food. >> they went from broke to $200 million. so, they know how to work something, whether it's a private sector or the government. they know how to work something. what? that's not true? >> i think it's very true breitbart has taken over the campaign. >> how they have gotten rich on the backs of the american people. >> republicans don't like getting rich off the backs of
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america americ americans? that's new. sorry guys. not true. >> thank you, gentleman. >> when we come back, gas prices ticking up for the first time in nine weeks. we'll take a close look at the market. and we're sad to announce that the chairman of traveller's, died. and a position in the dow 30 component. last august fishman announced he had had been diing a esaing agn and resigned. jay fishman was 63. could do to our economy.iont
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if we don't solve our debt problem 19 trillion and growing money for programs like education will shrink. in just 8 years, interest on the debt will be our third largest federal program. bad news for small businesses. the good news? there's still time for a solution. ask the candidates for a plan to secure our future. whmade plastics that tmake them lighter?rs the lubricants that improved fuel economy. even technology to make engines more efficient. what company does all this? exxonmobil, that's who. we're working on all these things to make cars better and use less fuel. helping you save money and reduce emissions. and you thought we just made the gas. energy lives here.
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tim cook after five years. how is he doing? ♪ welcome back to "squawk box" right here on cnbc first in business world wide. let's check out the u.s. equity futures. a little bit of weakness. the dow futures are down by about 18 1/2 points. nasdaq down by close to five. and take a look at the price of crude oil. that's been under pressure too. that pressure has stepped up on wti as we've seen the futures weaken.
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it looks like it's down by 2.6%. and still well above that $40 level it was flirting with two weeks ago that concerned the markets so much. we'll continue to keep our eye on this but in the meantime it's time for the executive edge. the national park's service is celebrating its 100th anniversary. the first was yellowstone and since then more and more have been added. this is a video i took earlier this year. this is an olympic national park. those are the hummingbirds we're feeding right on the lake. these are deer and also got time, joe to go to the cuyahogo valley national park in ohio. and that's one of the water falls up there, just south of cleveland. just this gorgeous area they've
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preserved. very narrow but it is gorgeous. we want to see national park pictures you've taken this year. bill nye is hosting a centennial event and will join us at 7:30 to talk about our national parks and what it means as a part of america. >> i didn't realize we're showing pictures from lobose? >> that's right below pebble beach. >> i didn't know it was. >> there's another park. it's gorgeous. >> it's not ga ot the pebble beach. >> been there lots of times. anyway, send us your pictures. we want to know where youv arer
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been. >> a lot of walking. >> that's the point of it. >> i guess so. maybe a moped or something. i need one of those three-wheel atv, out of my way. gas prices rising for the first time in nine weeks. but raising by half a penny. and the suicide squad taking the top at the box office. that's three straight weeks p. the supervillain movie brought in $17 million. and "sausage party" brought in $15.3 million. it was written by seth rogen also voices the main character. but the remake of the classic film "ben hur" bringing in $11.4
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million. there was quite a bit of scuttle about how poorly it had done and i think it was mgm with paramounlt,par paramount i think. i don't think they really made a bad movie in 30 or 40 years. >> there were a lot of people who said how do you remake "ben hur?" >> tough to replace charlton hest hest heston? >> i get it but i love morgan freeman. >> and that's why he gets hired so much. this guy is the voice of god. you should hire him. the olympics -- you know what
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was weird? it was great watching. i'm telling you the media. but talking about -- i thought it was like the worst for ratings the way the media portrayed it. it was second only to london. it was like a silver medal in olympics coverage. >> it was programmed for us every night. you had something to come home and watch every night which i never have and i'm going to miss it. and you feel good and the kids get into it. even kyle was saying yes, u.s.a. >> well, i talked about that earlier. we got to split these medals up more evenly with the rest of the world. erick. >> where did he go? >> he's right there. >> hi.
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eric trump is right there. >> no, here. oh, you're going to get a shot of him. >> have his people call our people of course we are our people. >> people always say, okay do you have an assistant? yes, her name is penelope scott. my wife, her maiden name and hello, mr. kern. >> anyway, the olympics, the olif oly olympic flame was d extinguished after the final day of competition. >> reporter: team u.s.a. scored its last medal on the court. and it was gold for carmelo anthony, the emotional end of a 12 year journey. >> yrv seen the worst and i've seen the best and i stuck with
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it, we stuck with it. >> reporter: in tonight's closing ceremonies, intermittent rain and wind add drama and atmosphere to a dazzling display of sound and rhythm, all of it celebrating the greatest athletes. and a chance to wind down, join together and experience an experience that is theirs for a lifetime. medal or no. and who better to lead them than simone biles. a great hope for games to come. >> again, we're so sorry it's gone. but we have a last moment from last night that went viral. japanese prime minister shinzo abe making quite the entrance as per tradition, japan showed a p preview of the 2020 olympic games set to be in tokyo. in the video he said he wouldn't
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make it to rio in time and it was then he changed into the video game plumber, mario. and the iconic mario music played. so, that was the break with tradition. >> remember before there's always going to be great iconic people we remember. >> and stories of overcoming things you don't even realize. >> and it all turned out to be true and it's nice a lot of them were americans and jamaicans and mo farah and it's great stuff. >> it really was. did you see u.s.a. today? there are now questions about the brazilian police's story and that it's going to be difficult to prosecute one way or another.
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not to cover up what he did with the vandalism. >> and i've heard people make the case that there's no way that guns are going to be pulled on anyone -- i guess you can't say for sure with all what we've seen. but normally we would be a little less -- i don't know if you'd have to sit at gunpoint -- >> and hand over money. >> exactly. crude prices falling from a seven-week high on friday. and as we head to break, a quick check on what's happening in the european markets right now. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere.
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brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. announcer: they'll test you. try to break your will. but however loud the loudness gets. however many cheese puffs may fly. you're the driver. the one in control. stand firm. just wait. [click] and move only when you hear the click that says they're buckled in for the drive. never give up till they buckle up. we've been hearing so much about how you're a digital company, so you can see our confusion. ge is an industrial company that actually builds world-changing machines. machines that can also communicate digitally. like robots. did you build that robot?
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that's not a robot, that's my coworker earl. he builds jet engines with his human hands. what about that robot? that is a vending machine, ricky. john, give him a dollar.
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crude prices soaring in the last couple of weeks. but giving some of those gains back this morning. joining us now is clear view energy partner's manager. i think you'd say strong dollar, weak dollar, it has more to do with global inventories and whether they're rising or falling. is that dictating prices?
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>> yes, on a big picture level. near term, what we saw last week is the market got excited on a potential opec cut. and will country'sed ed ad heret a and if they do, will it matter? and historically, saudi arabia is the only country that goes to those quotas p. quotas. >> i thought we even had decided because of what you were just talking about that they're not really the swing producerer anymore. that we have to look elsewhere to see where prices are headed. that's not an absolute statement, i guess. >> they pulled oil off the market when it could support the
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price but now there'd so much otheroy oil that if they pull some aurvsh no one else puts it back on. >> did any of the gains in the last month result from the weak dollar. >> sure, i think in the near term it does, but longer term, you need to get back to the supply and demand. and to the inventories, that's what we're watching now. because we need to get to a point where demand is ahead of supply. they would really need to take about a half a million barrels off the market and that would not really impact anything until we get to the sekt half of next year. >> i think we're in this game of back and forth until we can see something significant happen.
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>> in this country, what price causes everybody to restart production? because it looked like 40 or 45 bucks. i thought it wasn't until the clothes and -- it got opened. >> we did see the in 40-50 dollar range. you know, these companies are looking for sustainability. you need a price north of 50 for a while before they really put a lot of money to work. and otherwise, it's a few rigs here and a few there. >> it's like on a scale of 1 to 10, it's like a 5. >> on the demand side, yeah, exactly. the latest numbers are demand growth of 1.4 million barrels.
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and we saw the push of impasse lean over the last couple years and that couldn't keep runningality the same pace as it was. so, i think it's about the average side and of course that could definitely happen. >> is it once a week? every day? how often do people say what's going on in the oceans? how often do you hear that about jacq jacques rousseau. >> i think a lot of the younger people don't know who he is. >> oh, back to the stupid millennials. it's hard for me to dislike an
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entire group from 20 to 40. >> probably not. what you want to do is teach them. >> oh, they need to be -- no, they know everything. this farma deal, i think is done. here with more. >> that's right and about a $14 billion deal. pfizer will pay for medivation in class. with that, pfizer gets access to the drug as well as the pipeline and it had ben questioned, they were talking about a contingent player. and just $81.50 per share in cash. >> so, you're seeing the stock rising.
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pfizer down and they're not changing their 2016 guidance. >> okay. thank you. >> when we return this morning, women makeup more than 51% of the work force but lisz less than 7% of the ess than 7% of the
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welcome back, everybody. the number of female investment managers in $15 trillion mutual fund marketplace has fallen every year for the last six years. it went from 10% in 2009 to less than 7% today. our next guest is trying to change that with the goal of getting 30% of the world's investable capital managed by the year 20 on30. joining us, the founder and chair of the new nonprofit, girls who invest. she's also former chief investment officer for new york city retirement system with assets of $160 billion. thanks for joining us. >> thanks for having me. >> not surprising to see women make up small portion of investment advisers in the industry, what's surprising is that it's been dropping over the last six years. what's happened? >> i agree with you. i think there are a number of things. i think we have a pipeline issue where younger women in college
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don't really view our industry as a place to be and have a long-term career that's a noble one. when i often talk to young women on college campuses, the first thing i say to them is how many believe a job in our profession is a noble one. nobody raises their hand. i say, okay, i think we have a little work to do here. i think there are three big reasons for that one, they are not aware our industry and being an investor is impactful, that's the biggest one, rewarding, interesting, stimulating industry. but impactful, i say that in particular, what i found a lot of these younger women not only want to make money but make an impact on the world. >> meaning they want to go out in the world and do good and don't see this as an area they can do that. >> i say to them, think about how facebook and amazon got where they got without investors like us helping them grow and expand businesses, think about innovation you can be part of, and you want to help developing
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world? fantastic. a lot of people have clean water because investors like us have water treatment facilities. you want an impact? fabulous. i was chief investment officer for city of new york. i was responsible for 700,000 police officers and firefighters for retirement security. think about that responsibility. you could have that job. suddenly they come running up to the front and say, seema, where do we sign up? >> think about all these people demographically really have to figure out how to live without watching every penny into their 80s and 90s. think if they all had really fully funded retirement plan. what's more noble than helping people live lives without worrying about security. >> absolutely. i agree. we managed to find 30 amazingly talented freshmans and sophomores in college across the country. >> millennials again.
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>> also as seema was saying advertising it the right way. >> the financial crisis and also the political environment with just demagoguing of anything that has to do with capital formation or financeing. we're in a very weird place. >> the other thing is 2008 financial crisis. eight years later we have a cloud over our industry. so i say, let me tell you about the firms doing all the things i told you about, then i start listing these firms. finally, as you know well, they don't see that many senior women in positions. they think to themselves, how am i supposed to compete in an industry so male dominated. >> again, the group is called girls who invest. thanks for explaining it, seema. coming up new trump campaign manager kellyanne conway will join us. ask her about changing the candidate's style, the same,
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substance, an old friend of the show. with a big new job. tracks.
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campaign manager kellyanne conway joins us. we'll discuss tax plans, immigration and strategy for the white house. that interview minutes away. national parks service celebrating its 100th anniversary. >> every summer thousands of pleasure seeking tourists head for the great outdoor playgrounds of america. >> commemorate centennial bill nigh science guy joins us. he's hosting several events in new york city. before he kicks off a party in kbro brooklyn he'll join us on the "squawk" set. plus we get you ready for
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the market week ahead and janet yellen's big speech from jackson hole. rebecca patterson is here as second hour of "squawk box" begins right now. >> announcer: live from beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" on cnn first in business worldwide. i'm joe kernen with becky quick. jo he has the day off. rebecca patterson, manager editor at bessemer trust and we might mention the fed with russia at some point. >> i don't think we have a choice. >> tell us when you've done it. we're not saying another word. >> like a volcker strategy, just do it overnight. >> good morning. we raised rates. >> have we wasted number one
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quarter point in nine years. have we talked about it enough? futures turned negative. it was kind of ugly negative. we were up ten earlier. >> check out oil prices. down 2%, down 2.6%. one more look at wti this morning you're going to see now down. >> i don't think so. >> the weaker oil gets, more concern. as we talked before, if oil prices can maintain, then earnings are going to be better on a comparable basis. that will be the other reason besides interest rates. >> i think -- that's what i mean. we started having more trouble going up when we heard these guys get hawkish all of a sudden. i don't believe them. every since john williams, instead of composing something, he said it's a live meeting in september. we've had trouble making headway
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since then. then you have yellen, who supposedly -- doesn't mean she's going to do it, saying that's what they have been doing all along. >> williams, dudley, bill dudley from new york fed, fischer, vice chair. >> people you would expect to be more dovish. >> that and lower oil is not a good combo. >> that said, the mark, these still what it's about at this point. >> also the middle of august. we don't have a lot of liquidity. little moves. >> we've been fooled by believing that when rates do go up, it was because of the strong economy. the economy never seems strong enough to take the baton. head fakes, this is the time. things slow down again. >> the payroll report, suddenly super hawkish then declined, that was difficult. >> catch you up on other stories. pfizer announcing deal to buy
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medivation. that comes out to $81.50. this deal is all cash transaction and does add medivation cancer drug to the portfolio. that generates $2 billion a year. check out medivation up 20% to get up to this premium level. trading lasts at $80.30. also thomas dooley taking the helm at viacom. company announcing resignation of dauman. sumner red stone national amusements which controls 80% of the voting shares of viacom. dooley, who has been chief operating officer, will be interim ceo until september 30th. that's when a decision on permanent ceo will be made. you can see the stock is up by 14 cents. a little relief. something that won't drag out in the courts for months and months. probably inevitable conclusion
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when redstone controls 80% of the vote. also gasoline prices moving higher. up half a cent to $2.15, $0.50 below where they stood a year ago. big bet on troubled energy debt. "wall street journal" says ross's firm bought the debt in an telt to try to take control of distressed oil and gas companies if they have to turn over ownership to creditors. sources say ross is angling swap debt ownership filed for chapter 11 in may, buying debt of permion resources found by wildcatter auburn mcclendon that might ultimately hand partnership to creditors in a restructuring. oil prices in the last month, we showed you this morning down sharply, down 2. %. just over the last month they have climbed steadily over the last two or three weeks. we're sitting right at $40.
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that was the panic point for wall street when you worry about earnings for s&p 500 countries that are energy related. >> some nice shots of wilbur there. see that? if you don't know what he looks like -- we had reaction shots. yeah, a good idea. i'm glad we weren't like fading in and out or something. what's wrong with wilbur? is he okay? anyway, yeah, he's fine. there he is. that's a great shot. a little bit happier there. i don't know why he isn't happy, he has $6 billion. rebecca patterson, ceo and managing director -- money doesn't buy happiness, does it --? of bessemer trust. >> money tends to accentuate what you already are. >> money makes you more of what you are. >> if you're miserable, you get more miserable. >> money isn't going to turn it around. >> you are also cnbc contributor, talking about money, anyway. here is my latest conspiracy
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theory. >> uh-oh. >> are you ready? >> i'm ready. >> you can't raise rates in an election year. but also going to make sure all good economic numbers between now and november to try and get obama's legacy extended with hillary clinton. so the numbers are going to be good, which should allow them to raise rates. how do they explain not raising rates. >> i think that's a great conspiracy theory, perfect words to describe it, joe. no one making up the date. >> you don't think the date will be good? i wondered when we get these job numbers. what was the job number. >> if they improved because of oil. >> what was the number? >> better than expected. >> 300. >> it was like 250, 300. >> what was the one before that. >> a little lower. >> like 30. >> a lot of volatility. >> that was two ago. >> you can't back end load it? >> no. >> can't leave some in the
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drawer? always good reason. >> the economy is much bigger than the presidency. >> i said -- yeah, right. they would never -- the irs would never target conservative groups. they would never, ever do that. that could never happen. look, it's murphy's law. maybe it's not done but it seems to happen. >> op-ed this morning? is that what's happening? >> not different than any other morning. >> okay. >> how do they do it, great numbers come out. >> i hope we do have great numbers. >> we will. >> i hope the numbers are so good the fed feels absolutely comfortable rising. >> will they? >> a string of good numbers and the fed is able to get it discounted a little more in the markets then you could get a september. >> particularly if inflation picks up, a point they feel uncomfortable with rising in flation and have to get ahead of it. >> commodity prices are big component of inflation.
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if oil were to keep creeping higher as it did last month, that would certainly be part of it. right now the market is less than 25% that we get a september hike and a little over 50. >> they love the talk. >> daring them. >> i am daring them. >> we might. don't think we won't. we could. we might. >> i think by december -- >> they don't. they don't have the -- they are suffering from the same complex that may had. >> not doing to talk about that. rebecca, thank you. >> my pleasure. >> she will be with us the rest of the hour. we should mention coming up we have donald trump's newly appointed campaign manager kellyanne conway, frequent guest of the show. but newly appointed campaign manager joining us after the break. job in i.t. not what it used to be. more layoffs in tech industry? why some of the biggest names in the valley are cutting jobs. "squawk box" will be right back.
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she's running donald trump's presidential campaign. joining us to talk about the latest changes to team trump kellyanne conway, donald trump's newly minted campaign manager. we don't want to talk about the past. you were four years ago. that's one thing i noticed about
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you. when you're on someone's team, you're pretty tough to argue w i was arguing with you back then about newt didn't seem like he was going to be the guy. i kind of wish -- i don't know. maybe it would have been better at this point. i figure it's going to be the same way now. you probably think you're going to tell me donald trump actually has a chance. i took two pictures, "newsweek" and "time," one was meltdown from "newsweek," the other was, i don't know, the week from hell. mainstream media, i love them. for two weeks you look at everything trump said and hammer on it and drive poll numbers down. for the next two weeks you talk about how the poll numbers are down. >> that's right. next two weeks talk about polls tightening, i predict to you. people feel energized, great momentum. i think we'll look back at these last two weeks and people will say terrible two weeks of trump campaign. that's true. we had a rough two weeks. it helps us to be down a little, lights a fire under us. i think we'll look back and say
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why in the world didn't hillary clinton's campaign totally pus out away in two weeks. they put her into hiding. made a grievous error not having her meet troops or give policy speeches on obama care. scarcity benefits her, if you don't see her you think she's running too and entire referendum on donald trump. >> what about -- >> why is press okay with that? >> why is press okay with obama not going to louisiana and accepting the excuse it was a distraction. did bush try that with katrina, a distraction? that would not have flown. >> when people are in need, fellow americans are suffering and need us to help them as was the situation in louisiana, as is the situation in louisiana, you don't ask your self, is it a swing state, how will it look, how will it feel. governor pence and mr. trump got right down there.
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when people say he needs to act more presidential, what is more presidential of people in need. i was a critic of mitt romney when he stood in the cabinet doing debate prep instead of coming out to new jersey and new york during hurricane sandy. you go where people need you and that's how you show leadership. leadership is showing up and listening. >> so he gets rid of a couple of people because they were telling him to be less trump-like. so he brings you in and bannon is there now. much less trump-like, then he apologizes. who got him to do that? >> that's all him. that's all him. >> if he was going to be more trump and that's what the whole shuffle was about how did he end up with a speech that was totally different? it was on prompter, regret lines. it was about policy. i don't think he said crooked hillary. it was totally different. whose idea -- was that you? >> it's a team effort. ultimately it comes from donald trump.
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you're not doing to relearn things overpass. this man has done pretty well for himself long before i walked into that building. he's donald trump. you have to have a messenger that matches the message. he's so comfort ablg at that podium with or without the teleprompter. donald trump is a natural communicator and connector. >> we had him on a couple weeks ago. he said at that point he wasn't going to go pc. he was who he was. this is where, i have to say that speech last week was a very different turn. i know that's something some of the people in the audience were looking for. who is the real donald trump? where does he come out and where will we see him next couple of days. >> i'm glad america is saying donald trump people who know him see consistently, a guy who is compassionate, humble, accessible to people, who enjoys himself on the trail because he's connecting with thousands and thousands of people all at one time. he gets oxygen from being at
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these rallies and giving these speeches. again, it's not just a referendum on him. he's running against hillary clinton who respectfully looks like she's not happy out there. >> she's admitted she's not a good campaigning. >> fine. give us a policy speech. we're talking so much about immigration this weekend, i can think of no issue where these two are more radically different perhaps than on immigration. >> let's talk about what happened there. we talked off camera. the left, the idea of deporting people, that's very near and dear to them. to say he wants to throw 12 million people out. if he waffles, they are going to be disappointed. they would love for him to soften, if he did become president, they don't want him to do that. when he starts softening, i don't know whether he is or not. let's get to that. is he softening? >> i was in that meeting with him hispanic roundtable, he
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didn't say anything different there than in his campaign speech or for months. sam sessions, one of the first to support him, he doesn't deport 11 million people in his plan. what donald trump says is we need a fair and effective way to deal with the 11 million here who live among us. at the same time protecting american jobs and american workers and also securing our borders obviously. but what he's saying is immigration is a very complex issue with a very complex solution. it's not just about border security, just about american jobs, but it's also -- we need to be fair but we need to be fair to all those concerned. not just fair to 11 million illegal immigrants here but fair to americans who feel like they can't find a job because there's that kind of competition. >> articles have been written about the mainstream media and donald -- mr. trump goes after mainstream media a lot. they are saying, you know, you
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almost sound like you're going to use that as an excuse. it is true it's the same mainstream media ronald reagan had, every republican ever has to be. you think he'll get to the point where he doesn't give them opportunities to make it even -- to do what they do even better with miss steps? do you think we'll get to that point? a lot of the miss steps that have been so well highlighted as they are occurring i understood part -- i can understand where they came from and how it happened but it's still -- the media is not going to give you a pass. >> not at all. >> so you've got to make sure you don't do it, even if you're well intentioned with what you said in the first place. >> no doubt margin for error is lower than hillary clinton who so disrespects the press she won't face him in a press conference. 260 days, you could have had a baby by then and the press should be having a canary this woman just won't face them.
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we know the margin of error is lower. what i would say to the press is what i would say to awful us. you can disagree with donald trump's prescriptions for law enforcement, communities of color, defeating radical isis, rebooting our economy, unleashing energy independence, you can disagree with all of that, at least you have an opportunity to read it. he's now putting out speeches where you see the four or five things he would do to help in this area or to change that area. so people too much focused on the style of donald trump when it's about substance, issues. >> i'd love to ask about that. as an investor one thing we want to do is understand details of possible policy shift to adjust portfolios. one of the challenges with donald trump's campaign so far, you get the broad message but not how do we get there. in the coming 77 days, are we going to see more detail behind some of these overarching
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messages, some more detail that will tell us what he'll do if he gets elected in november. >> you'll see more detail than hillary clinton and more detail, rebecca, to transport you to what would life look like, economy feel like under president donald trump. he gave a speech that basically was reaganomics in many ways. i know the left wants to tackle it as trickle down. we had great prosperity then. i'm with the majority of americans who feel they are not more prosperous and not more safe than they were just several years ago. >> if donald trump wants to pass anything, he's going to have to work with congress, including his own leadership. he hasn't had great relations with them. how is he progressing on that front in order to be able to work with the people who are going to have to pass legislation. >> actually doing very well. in fact, becky, a timely question. i received half a dozen calls from congress this weekend saying how can i help. i'm going to vote for him, an
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endorsement, work in the communities we'll put them to work, that's wonderful. let me say we welcome any member of congress in the house or senate to help us. so he is working with them well. we have i think governor pence on the ticket is a big boone for that. served there 12 years, foreign affairs committee, great relationships in the house and senate. i think they are starting to see that you can win, actually, you can actually do this, let's start thinking about what the congress and what the presidency looks like under president trump. i know people say, oh, you know, americans like checks and balances. they actually want a different party. you know what, americans are so tired of nothing getting done. why has congress earned 11% approval rating. in part people feel like they can't get anything done. we feel very well with speaker ryan. >> how is speaker ryan? >> it's great. he endorsed him.
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>> kelly, a lot of the polls touted as evidence it's going to be a landslide, hillary at 41, 42. >> that's the key, joe. >> i think there's probably 10% -- >> more than that. two other candidates. >> that are saying i'm not -- god, i'm not really -- i don't want to vote for hillary. she has very high negatives. >> between gary johnson -- >> even if you didn't -- again, today i saw a tweet. okay. so he's still tweeting. it was about some "morning joe" thing, some guy on "morning joe," donny deutsch said something. donned is mad. you know, you had a terrible career on tv, a failure. he's still taking shots, punching down. why does he have to punch down. that you're not going to change, are you? >> two different things. quickly, i feel that people expect donald trump to be the one who takes on the chin all these criticisms and he's never
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able to respond in kind. he rarely draws first blood. i've never said about him. counter-puncher. >> when you're the leader of republican party. >> let hillary be hillary. >> my own view of the race, joe and beck y, this is a tennis match. you keep lobbing, lobbing, lobbing, aces her way, don't pick a fight with the ref, don't boo the crowd. so obvious to the opponent, to your point, true point, so many americans don't want to vote for her. that's clear. she's got 110 name id and 45% -- >> negatives are high, becky, but for different reasons. people say i don't like what he said or how he said it. or i don't know if he can execute because these politicians all make promises. if he can't execute and deliver, that's why he's executing and delivering in these speeches. we know he can do it because he has his whole life. for hillary, it's very different. people think she lies for a
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living. she's part of this rigged, corrupt system. over the weekend all these new revelations, pay to play, clinton foundation, them implicitly admitting it's not a good idea to take foreign donations. we're not going to do it anymore if she's president. i have a great idea, donate $100 million and shut the thing down. i agree with "huffington post" headline. shut it down. >> a huge conflict. the idea they are not going to be taking money from foreign countries or corporations is one thing but if you're still opening the door for anybody to give money it gives the appearance people can be buying something, administration access along the way. bill clinton has said he's not doing to be a part of it but what about chelsea. if you have access to the president's daughter -- >> too late. she was secretary of state. secretary of state not as much influence as the president but certainly unbelievable amount of influence at the state department. it's already too late. >> there's so much to unpack
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there. we plano on it. why? hillary people and supporters want it to be about tone and temperament only. we want it to be about facts and figures. we're going to be the truth tellers of everything that happened. do right clinton cash, go see the movie. it's unbelievable how he never got his money. to the polls, i want to make a comment because you raised the polls. people too often look at the polls, margins, you're losing by five, six, it's over. take a look at hillary clinton's numbers, they have barely moved. her floor and ceiling are so dangerously close together for somebody well-known. i'd rather be us because we've got momentum. >> how is money? have you got enough money? how about the staff? you've got 10% of the staff. >> she's used to big beaurocracy. she was secretary of state, first lady. they are used to five people doing the one job. >> helps to get them in terms of infrastructure and swing states. >> that's right. just this morning sean spicer arrived from rnc.
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he's going to be spending more time with us, which i think is terrific, chief director of rnc. we are staffing up particularly in the states. that's really where this is. in our swing states we want to make sure we have a team on the ground. great deal of talent in the republican party. >> which states? >> florida, ohio, pennsylvania, iowa, virginia, and then new hampshire and nevada. then there's another state, she didn't say michigan, colorado, are they ulg pulling out? she didn't say that either. i'm saying i'll a focused person. i want to be like obama 2012. what did the president do? he was going to win again. it was clear from the data. that's what we saw publicly. he was never focused. he never went back to indiana which he won four years earlier. never went back to arizona even though polls were tight and there was a tough senate. never went back to north carolina. have you to focus. you have to go where it is.
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>> where are we going to see bannon's fingerprints? do you see him every day? talk. >> we insist on sharing an office. >> how is that? >> he drinks blood smoothies. >> where are we going to see -- >> you're already seeing it, joe. he's less public. you just want people who can execute and manage. that's what we both do. i managed my company for 21 years, manage a household of four kids, good practice for being a campaign. steve, people look at him as provocativor. walking around trump tower there are people at the campaign not household names who are doing such a fabulous job. i'm truly moved by their talent and loyalty to this campaign. we have a lot of great people over there. we'll build it out. we don't need what brooklyn have. 800 some people, all the kings
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horses, all the kings men. they don't have a candidate who looks like she's having fun on the trail, likes people, a great communicator. can't buy it. >> 77 days is a short period of time. what's your pecking order list -- >> doesn't start until labor day. keep your distance from me. stay over there. >> you look great. >> thank you. what's your pecking order of what you have to accomplish in that period of time. >> the pecking order, becky, is to make sure everybody who is helping us in the states and at hq has what they need. what i mean by that, do you have the resources? do you have the attention? did you get answers to your questions. secondly it's really tapping into the enormous number of people who say i like to help. everybody from folks i know expert economists i worked with for years to folks out of college saying i'm willing to take off my first semester. i want to make sure everybody responded to and heard and
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becomes part of the campaign. third, in no particular order, by the way, you can switch up the order, just to allow the candidate to run the campaign the way he wants to. he loves connecting with people, campaign rallies. >> he loves speeches that doesn't involve teleprompters. as pavlov's dog he must have seen how well it goes after staying on message with teleprompter. is he getting to the point where he's doing to stay on -- he even like veers off sometimes with the teleprompter. >> that's okay. >> that's fine unless you get to something that could, again, be an issue. the teleprompter works really well staying on message. will he stay with that? >> yes. success begets success. you see how well it goes. the other thing i discussed with him, he doesn't even look like he's using a teleprompter. >> i know. >> it is a skill. people in the business know it's a skill. he makes it look easy. you see people that look like they are watching tennis on tv.
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he's a tv guy. he gets it. he gets people. i think people will look back and understand trump understood the cultural zeitgeist, to understand them politically is first understand them consult really. they have looked at consumers and consumers of products of goods through a nonpolitical lens. they don't look at people as voters but consumers, americans. now they are able to convert that type of very unique lens. usually a politician is stuck saying who are you as a voter, how do i get you to vote for me? i know, he's somebody that steps back, what motivates them, how do they make their decisions. what keeps them up at night. that's very different questions than typical politician asks. >> had you on a lot. >> thanks for the platform always. we appreciate it. >> don't need to do any other tv i don't think. >> i do need to go to work.
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i did need to manage the campaign. thanks for starting the day and week off, appreciate it. >> folks, get you caught up to date on stories front and center this morning. pfizer buying medivation for $50.80, worth 81.50 in cash, pfizer will add $0.05 to shares, accretive. pfizer down $0.08. medivation up by 20% getting it up to just above that valuation at $80.57. in other pharmaceutical news valeant named new officer. jpmorgan chase settled litigation with deutsche bank stemming from financial crisis. jpmorgan will collect $645 million from the washington mutual estate and drop more than $1 billion in claims related to that deal. >> that historic flooding in louisiana, now the worst natural
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disaster since hurricane sandy. 60,000 homes have sustained damage, costs in the hundreds of millions of dollars and morgan brennan joins us with more. hey, morgan, good morning. >> hey, good morning. it's now called the great flood of 2016 after many neighborhoods in the baton rouge and lafayette areas were submerged and at least 13 people perished over the last week. huge, devastating losses for those affected in louisiana. we're still weeks worth of damage in need of being assessed. as cleanup does get under way this is becoming clear financial toll is steep here. red cross labeled this worst natural disaster since 2012 superstorm sandy relief topping $20 million. report from top processor of flood insurance claims suggesting this could easily exceed $1.5 billion. at least 60,000 homes damaged. 100 to 2,000 people filed for
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fema assistance as of sunday. in terms of flood insurance itself federal government has 95% market share only 20,000 claims thus far been filed. that's because minnal percentage had flood insurance. according to most recent fema statistics. a lot of questions about fate of flood plane maps, future insurance costs as they get drawn. most pressingly how the folks who did not have flood insurance are going to recover from this. you could see a lot of people walk away from their homes. >> i've heard stories, thousands of people this much later still in shelters and no hope in sight. morgan, thank you very much. when we come back, congress returning from a week's long break. it's going to have to deal not only with what we've seen with flooding in louisiana but also with the zika virus. we will talk funding and prevention with dr. scott
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gotley. later bill nye science guy celebrating 100 years of national park service this week. send us pictures on twitter. stick around. "squawk box" will be right back.
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welcome back. ballots for zika funding rages on, congress to supply funds, asking for volunteers to willingly become infected with virus to search for vaccine. joining us dr. scott gottlieb. let's start with ideas where we're looking at multiple areas in miami where you're being advised not to travel. message from governor and cdc starting to diverge a bit. still safe, come on down. cdc saying if you're pregnant you probably want to avoid miami and other areas that are probably having outbreaks you don't know about. >> cdc saying check with your position, advice to be prudent. with you knew we would see isolated outbreaks in miami. we talked about it before the season began, also in florida. these should be imminently attainable. florida has done a good job
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mosquito control. they killed about 90% ariel spraying. all the travelers from south america, they don't, they have gone in and killed mosquitoes. disney has done a good job. >> eradicated the possibility they will pick this up. just talked about louisiana flooding, idea of standing water, has to be a concern. >> any part of gulf region, dengue fever in the united states, probably zika, same mosquito. we always see dengue in the gulf region. those areas are susceptible. with flooding you're likely to see outbreaks. two conditions, mosquitoes and travelers from south america coming with the infection. >> two lead stories. first of all spreading in miami and second of all pregnant women afraid to leave the house. should we be more concerned or you seem more sanguine. >> if you're pregnant or planning to get pregnant, be
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prudent. they are talking about staying indoors, using bug spray. i'd be concerned in this region to take steps to prevent mosquito bites but you can do that in the united states. i think it's wise to be cautious but for the vast majority of people the risk is exceedingly low. >> what if you're going to be pregnant in five years. >> you clear the infection in two weeks. typically wouldn't worry about it. >> telling men if they are in effected not to have unprotected sex. >> sequestered in semen longer. one of the things doing with this study is looking how long -- >> are people crazy to do this? >> i think so. >> studies said it could be linked to some alzheimer's. >> could be disseminated, encepha encephalo. it's unusual to see a challenge
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study sequela for normal results. there's a study where they lock students up and give them flu vaccines and tour europe after they clear flu. in something like this where zika could have consequences even if you're a nonpregnant female it's unusual to see a challenge study, which is what this is. >> would people want to go to miami for the holidays? should they still book that trip? >> i don't see any reason not to go to miami. outbreak by winter a lot of mosquitoes will be cleared, coming up on winter months. they are doing a good job detecting virus, seeing small outbreaks. you what need is one person with active infection and a pool of mosquitoes to bite that person and literally bite everyone else around them and that's an outbreak. >> what about puerto rico? >> puerto rico has a bigger problem. they aren't taking the steps they should, aerial spray, which
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is wiping out mosquito in florida. >> thank you. appreciate it. when we come back, bill nye science guy will join us. helping celebrate milestone, 100 years of taking care of national parks and monuments. this year is the anniversary. bill nye will join us after the break. some of the pictures of the park you're sending to us as well. thank you for those. that was a good one. they can out futures this hour, dow futures down 38, s&p 4.5, nasdaq down by 7. stick around "squawk box" will be right back. . get great offers at the lexus golden opportunity sales event. get up to $5,000 customer cash on select 2016 models. ends september 5th. see your lexus dealer.
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welcome back, everybody. happy birthday to national park service. 100 years since president wilson signed an act creating national park service. the foundation along with brooklyn bridge park and one world trade hosting a party to commemorate the milestone. our next guest on hand to help in the festivities. bill nye environmental activist and author of "unstoppable, science to change the world" you know the science guy. bill, thanks for being here. >> i must thank you. happy anniversary national parks. >> i'm so excited about this because national parks are something we never celebrate
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enough. i love them. can't wait to see more of them. i was asking you off camera what's your favorite and you wouldn't answer. >> no, because then you think i don't like the other ones. >> is there a park that should be high on people's list that they don't know of? >> grant's tomb? which is a national park. stone wall national monument here in new york city. this summer i was at glassier national park. >> that's the one i haven't gotten to. >> it's spectacular. hurry up, pretty soon sandy steep slope national park. all due. glaciers will not be there certainly not by 2030, not by 2025, snow fields but no glaciers. that aside, yosemite is spectacular. yellowstone is spectacular. so is the park at the end of the brooklyn bridge to me. >> i went to cuyahoga national park, cuyahoga falls national park this summer. >> it's fabulous.
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>> it's gorgeous. >> over 400. >> a strip under cleveland, the newest park. >> i just encourage everybody to know your parts. this the slogan this year. i think when you visit a national park, you get a sense of our ancestors set these things aside for the betterment of all of us. we want those parks to be there 100 years from now. >> how many -- what percentage of the american population actually visits national park every year. >> i don't know. you're the hard hitting investigative reporters. >> it's small. >> 2014, it was 284 billion people visited the park. >> not all at the same time. >> not all at the same time. they spent -- this was 2014 data. 284 billion people visited parks in 2014, all the parks together. >> our national parks. >> yeah, but that's over the course of a year from all over the world going to our parks. >> wow, that shocks me. >> if you go to more than one
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park. >> $15 billion. $15 billion where you believe in climate change or not. >> you can't not believe in climate change, everybody. >> this is good for the economy. this is good for our perception. >> it's all good. everybody very proud of them. everybody proud of national parks. >> my brother works at one. >> coincidence perhaps. >> perhaps. >> he's a marine biologist. >> yes. >> three-quarters of the world, almost 70% covered with ocean. marine biology is certainly a fundamental thing. half the air you breathe, oxygen you breathe comes from the ocean. >> he's down in miami. if miami and florida want tourist they don't have to worry about zika they have to worry about water you want to swim in. >> the big problem in florida, the water is coming up through the limestone as well as the sea. as the ocean gets warmer, bigger, a lot of florida people are going to have to move. that aside, it's a spectacular place.
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recently last year we as a society decided to reinvigorate the everglades. surface water in florida depends on north to south flow. punched holes in old dikes, by old i mean centuries old dikes. that's one example. here in new york city you should go see national park because there's several of them right here. >> statue of liberty, isn't that one? >> yeah, it's spectacular. my ancestors came through there. so it really gives you something to think about because our ancestors reserve these places for us. >> in an election year where there's a lot of emotion running high, you go to a national park, it's not political. this is something every american should be -- >> something we really have going for us. >> so these things require support from voters. so if you're out there and you're reminded that this is the
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100th anniversary, please support the national parks. >> yeah. i second that notion. i still want to know your favorite park. >> i love glacier. i had some spectacular times as a young athletic guy in olympic national park climbing mountains. >> i was there in may. pretty amazing. >> i went across glassier. >> these are some of the tweets people sent in. there's glassier bay. we've loved the pictures you all have been sending in, grand teton. >> right by yellowstone, in the other direction. spectacular. those are the western parks, all over the place. >> right here on the east coast. >> in louisiana where the flooding is there's poverty point national park. there's a jazz national park. they are in every state. over 400 of them. celebrate. >> thank you for being here with us. we'll be watching tonight with the celebration. >> yes. turn it up loud. >> we appreciate your time. >> thank you, guys. >> bill nye the science guy.
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>> coming up right nowhere grand tetons jackson hole front and center for the markets, find out what investors should expect. "squawk box" will be right back. to buy that truck.
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welcome back, everybody. one of the last remaining cin cases during dot-com era may be heading to resolution. scott joins us with exclusive details. scott. >> cnbc learned kobe alexander former ceo of converse
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technology who was indicted in 2006 and fled to nim ibia. charged in 2006 at the height of the rubble from the dot-com publ, charged with 35 criminal counts and wide ranging background scheme. he went to nimibia, tracked him in 2007, found him in a gated community in luxury town home and investing all kinds of money into the nimibian economy. his critics said he was trying to buy off the government and stay there. but alexander said, through his attorneys anyway, said he was doing good works there and, indeed, operating soup kitchens in the country feeding hundreds of children a day. now he will return to the u.s. he will plead guilty. expected in court on wednesday. he had cleared up everything on the civil side, including paying
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$53 million for the securities & exchange commission, what the agency said at the time was one of the largest settlements ever for options back dating. now he's coming back and puts this long case to rest once and for all. guys. >> ten years. forgot all about that. back dating options. wow, what a great way to make your options worth a lot. you know what i mean? steve jobs never got in trouble for that this guy had to move and it's been 10 years and finally coming back to face the music. i forgot his name. i thought kobe bryant for a second. >> kobi kpapd. he's going to come back and wrap this up once and for all. >> had to drag your butt out of retirement to do the story he's been gone so long.
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>> i am. >> you're there when we need you. we know that. what better compliment. thanks, scott. we want to thank rebecca patter saab for spending the hour with us and trying to be nice about the fed even though you may be disillusioned about that. >> they are trying their best. >> do you think this is self-inflicted. >> may and june unfortunate with payroll number. >> what about two years ago. >> a couple of false starts. they don't want to undermine economy. what fed official wants to cause recession. >> doesn't need anything undermining it, it's already been undermined for eight years. thank you. coming up top stories plus a preview of what to expect from jackson hole this week. she might do it. i'm serious. she really might. as we head to break, here are futures.
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they told me a bottle couldn't dream.
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that i would never become a superhero. [singing indistinctly] but i learned how to fly. just to come back in a new disguise, and be the hero i've always wanted to be. breaking news. pfizer buying medivation in $14 million deal. reaction from the street straight ahead. >> raising the roof, a new read
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on the housing market. home owners spending record amount on remodeling and repairs. tim cook hitting a milestone at app. take a look how the tech giant has fared five years after he took the helm. final hour of "squawk box" begins right now. ♪ ♪ >> love the song. welcome back first in cnbc business worldwide. i'm becky quick with joe kernen. watching equity futures, they have been under pressure. dow down 40 points, s&p 500 futures down 4 1/2, nasdaq down 8 1/2. when we came in up 10 points fair value. as we've been watching oil prices through the morning, as those oil prices weakened, we've seen weakness in equity futures. wti down by 2.6%, 47.26.
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joe. >> pfizer buying biotech firm medivation for $81.50 a share in cash. that equals about $14 billion. the shares of medivation had been running up after i guess it was in play. pfizer the winner after all was said and done. as you can see up almost 20% medivation pfizer shares at this point. viacom is announcing that ceo felipe dauman is resigning in a fight that ends the founder and board his company called national amusements talking about sumner redstone. viacom coo thomas dooley take the role of ceo through september. central banks close to hitting the target for full employment.
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also 2% inflation upbeat outlook yesterday. comes ahead of janet yellen's big speech friday at kansas symposium in jackson hole. traders looking ahead to that speech from miss yellen on friday. it will be in jackson hole. joining us now sri from global strategies and bruno ceo of global x funds. you know, sri, if we just forget about that one hike, you really, really, really have had the right overall call on this, haven't you? >> thank you very much, joe. i enjoyed the discussion with you late last year and i think i lichd to you a couple hours ago. seeing that again, i agree with you completely. the fed is stuck. it is not going to raise interest rates ahead of the november elections. then it is time for janet yellen to consider whether she's going
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it be nominated or not. we're in for a long pass. not just the theory you talked about the previous hour but the political reality given change in press daerns, given how long stuck in low interest rate, there is no way out for this fed. the only thing to do is to raise rates significantly, accept a sharp correction in equity market, accept a u.s. recession and then remove some of the speculative furor over the last few years and go on with the economy but the fed is not willing to do that. >> sri, when we're lulled into this complacency, we've only raised once, your wacky call two years ago, you said they
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basically won't raise in 2015 or 2016. liesman had figure chart showing five or six raises and we said you were nuts. we got one lousy raise. maybe you didn't think there would be one but you were essentially right there. what was your call and what did you say? >> i remember that very well. i think it started in 2014 when i said there's not going to be any increase coming in 2015 and 2016. as you said, one at the end of 2016. >> in all 2014, '15 and '16 may end up with one. >> that's exactly right. joe, the thing i didn't count on is that the fed would be irrational. it would do a rate increase and expect no impact. we had a market calamity worldwide in january that is what made the fed more cautious. so i can't stop the fed from
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increasing any time, but if they do i'm looking for significant cuts in qe 4 to follow that. >> what does this mean? >> investors are petrified. we talk to our clients. they don't know what to do. they hate where rates are and expectations, equities, valuations. in essence what they are doing is looking for yield anywhere they can. reits, preferred, emerging market, fixed income, really anywhere they k the reality in some ways also seeing massive flows into passive equities. everybody hates active managers these days but at the same time have you to be very selective with asset classes. you just cannot have broad approach to where you're playing. you have to be selective inequities. >> things that should occur to someone if you read a story central banks run out of bonds to buy, they are creating new
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bonds just flooding corporations with money. do something, float something we can have something to buy. >> natural act. >> might be something wrong with that picture. >> it's interesting. you were talking today about a lot of the deals taking place. interestingly the cost of that very low, makes financing very expensive. corporations are finding value. you still see selectively corporate opportunities, equity values in some segment of the market that are attractive but you're right. clearly with the massive liquidity asset prices are inflated. >> what's the opportunity for the individual investor. >> for individual investor we do some opportunities, you have to be selective, asset classes we do like are on the -- everybody looking for yield. we do think as our co-host was saying that interest rates are
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here very low for much longer. we do like yield but we have to select where you look for yield mlp for example an asset class that is underpriced, particularly infrastructure play. we like a lot of markets in frontier and emerging markets. we like india, crazy places like pakistan. there are certain segments of global capital markets attractive but again you have to be selective. >> ssri, could the fed have don anything differently? is it self-inflicted, their fault or did they respond to a global sort of savings glut or whatever people refer to it as? the rest of the world still dealing with the same thing. every time they tried to raise the dollar would have gotten stronger, derailed. they have a lot of ways to cover our actions saying they had no choice or is some
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self-inflicted? we should be at 2% right now and then cut if they had to. >> absolutely. i have been a long advocate, joe, in terms of saying it has been a series of misunderstanding how the economy works and a serious of missteps starting with the fact qe2 and qe3 reducing income for savers is somehow going to stimulate global economy is simply out of place. once they found out that qe1, 2, and 3 did not work in getting us to a high growth rate, they should have reversed it. instead they went more into it to stick on with zero interest rates. it is like saying you have done a lot of medication, it hasn't worked, so you're going to try even more of that same drug which hasn't worked for seven years. so that's part of the problem. as you said, i believe that they should have increased some rates three years ago. if they did that, the rate would
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be much higher. and then when you have anything like a new recession, you can cut rates. now what are they going to do? the only difference between the united states on the one hand and japan and europe on the other is that we do actually have a big financial market. we have lots of bonds that are still available for the fed to buy. but still the amount of distortion that has been cost in the market by fed's intervention and presence in it is just mind boggling how people try to find ways to benefit from negative interest rates including large asset management houses. that distortion is something we are going to live with and face the consequences of during coming years. >> all right, sri. thank you. bruno. >> all right. appreciate it. >> when we come back this morning, gold prices up over 25% so far this year. we'll be talking to the ceo of
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cisco gold royalties, an interesting way to play gold. we'll explain it to you. stick around "squawk box" on cnbc, first in business worldwide. we call it dark data. 80% is invisible to most businesses. the ibm cloud has tools that can help see dark data and put it to work. hello, my name is watson. working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for.
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. welcome back. gold at a two-week low after comments from fed officials increasing bets on potential for u.s. rate hike sometime this year. joining us right now from toronto is ceo of cisco gold royalties. shawn, want to thank you for being with us today. first of all, maybe you could explain how a gold royalties company works. that's a little different than probably most of our viewers understanded if they are investing in gold. >> gold royalties, top line 5% royalty from main. receiving gold bouillon and zero cost it is a royalty, not exposed to capital structure. safer way for investors to look at the gold space as opposed to the operators. >> it seems like a great idea. you can get the upside but not exposed to cost increases as
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they come through. why did the mine sell royalties to begin with? seems like they are selling some of the best part of what they have. >> in some cases the royalties are pre-exist k, early days predevelopment projects. we're perhaps a prospector if somebody kept a royalty on a property. in other cases more in the streaming world, some payment for commodity, 4 or $500 an ounce fixed over the life of a project. provides capital to companies to convert debt. good thing about royalty stream once they receive the money they don't have to pay it back. really on success the royalty companies do get their payment back. so that is the reason that the commodity company and operating companies do use it. it's become quite popular. we've seen more than a billion dollars of streams written this year and the anticipation is with larger base medal companies looking to reduce debt on their balance sheet they will be
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converting between $3 and $5 billion of debt into streams. so it's pretty active market right now. >> in terms of your forecast for gold right now, we're at 1340 an ounce, near the high end of your range over the next 12 months, is it? >> yes, it is. we're working off of $1300 to 1350 deck for most deals were pricing now. longer term we see a little more, 1350, 1400. we have to stay pretty close to spot for our business. >> we know that things like brexit have helped spike gold prices. also the fed not raising rates for so long. but what would happen if the federal reserve actually did raise interest rates. what impact do you think that would have on gold prices? >> i think in the near term it's going to have -- going to lower both silver and gold prices as it is -- basically a refuge investment. there's a separate market between the physical and each tf markets and physical market doesn't get affected as much by
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those rate hikes as etf markets do. we see long-term on the supply side, fundamentals. we see peak gold around 2018 or '19. this will be a supply side story coming into the commodity later on. >> sean, i want to thank you for your time. >> all right. thank you very much. you know, from where we sit, looks like we've got a pretty good gold equity market as well with stocks having gone up as much as 100% year-to-date. that space is moving as well. >> thank you, sean. we appreciate it. all right. coming up here money or vote, libertarian party candidate gary johnson fighting for a spot on the debate stage. highlight from speak easy coming up next. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job?
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poll in polls libertarian candidate gary johnson fighting to debate. >> we spend so much time talking about hillary clinton and donald trump, we forget there's another candidate on the ballot gary johnson, former governor of new mexico now running as libertarian. he wants to push a free market view of both social policy and
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economic policy and says the entire key to giving him a chance to win the race is to move from the 10% that he's getting now in the nbc "wall street journal" poll to 15%. that would get him on the debate stage and give him a shot. >> i do think there's a better than 50% chance we'll be in the presidential debates. if we're not in the presidential debates, hey, no chance of winning. no chance. >> do you expect the 15% threshold is going to hold? >> i don't have an issue with 15%. but shouldn't the polls include my name on the top line? shouldn't it be reported top line? that's my only issue. 15%, not an issue. >> let's say you get to 15% and you're in the debates. >> we could win. >> of course gary johnson's complaint is the focus is all on the two candidates at the top of the ticket and he's an
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afterthought in the polling. if he wasn't, he'd right higher. now, gary johnson does have a plan in the event he is not elected. remember, no libertarian nominee has ever gotten more than 1% of the vote. his plan next year if he's not elected president, says he's going to ski 120 days and ride a 3,000 mile bike race called ride the divide across continental divide. >> what's the threshold for polls, poll of polls, any poll he scores 15%. >> five major network polls that the commission on presidential debates has set. that's fox, abc, nbc, cbs and cnn. >> do all five of those polls actually ask if gary johnson is a candidate you'd vote for or do some leave them off? >> they all ask. johnson's complaint, becky, we tend to ask two questions. one, who are you for, clinton or
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trump? then there's a second question, clinton, trump, jill stein, green party or gary johnson libertarian, then who are you for, the attention got to the clinton trump question not jobz-stein. if everyone focused on that question, he would achieve more momentum. he thinks he's got some anyway but that's the argument. >> we talk about it a lot at home in my family. i try to explain that nguyen would happen. what if gary johnson were to say, forget it, i'm going to endorse trump, then you can add the 10 on trump. that's not what's happening. a lot of gary johnson people are never trumpers who can't bring themselves to vote for hillary clinton. if gary johnson dropped out, i think she would get most of the gary johnson votes. in some kind of warped way i think gary johnson hurts hillary
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clinton worse than donald trump. it's a bizarre -- >> i'm not -- the evidence if you look at the -- what happens to her margin when you go from a question without johnson to one with johnson is that it doesn't make any difference. the reason when you talk to polsters, on the free market side low tax small government side he's getting republicans who don't like trump. but he's also emphasizing choice in the social realm including legalization of marijuana, which is something that gets more people on the left. >> when is the next -- polls come out constantly. i know you don't put much stock into "l. a. times" poll but that may be a harbinger that the other polls that have never shown trump in the lead that they show it narrowing because you can see "l. a. times" has now got trump up, too. when is the next big one? you don't know. you just know when nbc wsj polls. >> they are all on a rolling
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schedule. there's a fox poll that will come out next week. we have our -- >> this week you mean. >> no, this week. >> nothing coming out this week? no new poll numbers? >> nbc survey monkey poll, which is a weekly tracking poll. that will come out tomorrow morning. polls coming out all the time. i don't know the network's polling schedule but they come out all the time. >> survey monkey, nbc survey monkey. >> that's an online tracking poll. >> sounds funny. i still think it sounds funny. because monkeys are funny. they do funny things. they do things we'd like to do but would get fired. >> speaking of funny things, joe, you guys had your conversation with kellyanne conway a few minutes ago about getting trump back on message. >> yes. yes. >> a more studious demonstration. have you checked out his twitter feed over the last hour and a half. >> yes. i've been watching it closely.
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>> it's not on message to say the least. >> no. this is the challenge for somebody like kellyanne as it was for paul manafort before that. you have an approach that you want your candidate to take. yesterday she was on stephanopoulos and said donald trump doesn't hurl personal insults on people. he's on twitter hurling personal insults on our colleague at msnbc. this is not somebody susceptible to control by any campaign manager. >> we did. her point was -- yeah, her point was that -- reminded me of rambo, because she said, draw first blood. remember how sly stallone used to say that, didn't do anything. >> trump always said that. didn't start it. it was that other guy who started it. >> brian dennehy. he did start it, brian dennehy. he should never had had a badge,
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that guy in that. >> jeb started it, cruz started it, rubio started it. >> he does punch back. i don't think he should punch down. that's the om thing. >> bingo. you just put your finger on the problem. >> i've learned to try not to do that. you know what i mean? it's like why bother. anyway, i've got to go pretty low to find someone blow me. that's the only problem. thanks. lindsay lohan wants to meet -- wait. see if i got this right. lindsay lohan wants to meet vladimir putin exchange for doing a russian tv interview. the actress reportedly has a list of demands for giving an interview about her tumultuous relationship with this russian business guy, egor. on the list post bid tmz, lohan wants a private jet with makeup and hair stylist on board, a
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personal security team, and 500,000 british pounds. >> she wants to get paid in pounds? >> she wants to get paid in pound. that's funny. >> she wants to stay in a ritz-carlton penthouse suite and year long visa. no word whether putin agreed to her meeting request. kind of like poland to come back. >> giving her a few chances. >> right. >> when we come back talk about remodeling new data out. stick around. be right back.
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welcome back. intersil bought by japans company. it has been cleared by u.s. national security panel. that is considered a key event
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with chemchina's $43 billion purchase. still see the deal finalized by the end of the year. l brands upgraded to buy at goldman sachs. a slump in profit margins at the victoria secret parent has probably bottomed out. >> and the m & a story pfizer announcing $14 million deal to acquire biotech medivation. joining us with more. >> pfizer paying $81.50 for medivation, a premium where it closed friday. the stock has rich a lot over the last few months as sanofi kicked off this battle that turned into a competitive process. over the weekend we learned pfizer winning this morning paying $14 billion in cash, winning prostrate drugs as well as two cancer drugs in the pipeline, one more other cancers more advanced. as joe pointed out amino oncology ahead of that in the
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pipeline. pfizer trying to increase its presence in cancer. it already has big breast cancer and big play in amino therapy harnessing immune system to fight cancer. one of the biggest ways to fight cancer that drugmakers are currently pursuing. they are saying $0.05 accretive in the first full year. some people are questioning the price this morning on medivation from the biotech side. wondering will this buoy biotech across the board big drugmakers me tiff process, many drugmakers in the deal paying quite a premium for this asset. >> by the way. we were talking earlier with a guest, still cheap to find financing, boosting m and a deals. >> this year coming back a little bit and people wondering is this sort of drive interest back into the biotech space in general. >> meta static prostate cancer
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when it spreads. it's a billion dollar revenue drug. do you know how it works, what it does? immune. >> receptor inhibitor. that's right, hormone-based therapy. it's approved in more advanced prostate cancer but testing it to move it up in line where you start using it. >> meta static, psa level that indicates something there, then you take this before it's gotten worse. >> well, they are testing it in different areas to see how well it works. potentially. they use chemotherapy and that's how they tested this further down the line and also in other kinds of cancers. >> thank you. >> thanks, guys. home owners in the u.s. expected to spend a record amount of money fixing up kitchens and bathrooms. new forecast projected residential modeling and repairs will surpass records set during
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housing boom and that's because of the low inventories of homes that are for sale right now so many home owners are choosing to stay put and improve the home they already v according to estimates from one new joint study remodeling is expected to surpass $300 billion this year ahead of the previous high of $285 billion in 2007, spending on repairs is expected to grow faster than new residential construction through 2019. >> we do have key housing data that's expected this week as home sales linger at eight-year highs. question is will this trend continue a real estate attorney and director of carnegie group think tank, she joins us from ft. lauderdale. sharon, we have seen these record levels. a huge question has been affordability and availability. how can we dig down on what we've seen on trends today. >> sure. you need to look behind sales and basically like you said
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before at the inventory. we have almost 6% drop last year, four months of inventory, which is not able to meet our needs. one of the primary reasons for that you just referenced is new home construction. we drop to about half a million new homes when the real estate bubble burst. we've exceeded about a million more for the last several years but normal a million and a half. a lot of reasons new construction slowed down. new homes that are being built tend to be more multifamily units. of the single family units they tend to be more single family rentals than ever before and a skew towards luxury market. as a result just no starter homes available and affordability inventory is really driving what we're seeing now. >> affordability is driving what we're seeing. do you think trends will continue to see prices rise and is that going to be reasons for
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other than availability? >> that's actually a great question because we are seven years into the recovery. at some point we're going to have to say this is the new normal. we need to stop waiting to see what we saw before. that goes to affordability. we know that the need for affordable units, rental and to own is about four times what the supply has been, which is a big issue. we know that construction cost, it cost 40% more to build a new home now than existing home, all-time high. 25% goes to regulatory-type costs like impact fees and things like that, which are somewhat controllable by policy. those things we need to just accept as a reality, i think, at this point seven years into the recovery. we also know that rentership has been increasing for the last 10 years, which is a trend we expect to continue through 2030. at some point we've got to say, look, if americans aren't going to own homes how will they accumulate wealth, 07% of
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americans used to rely on their homes for. >> why is rentership increasing? is it because people can't get it together, afraid of buying a house because of what happened with housing bust or can't get a loan? >> there's a lot of reasons for that and really depends on the specific demographics but you hit on two. saving a down payment is a major obstacle. the government has baseball trying to address that by lowering down payment requirements through fannie mae and freddie mac. >> got us in trouble the first place with no down payment loans that were issued. >> down payment, credit, it's a combination of affordability, which hopefully the dodd/frank rules are addressing. you know, it's a combination of that. like we've been saying availability is a major, major issue. we know policy particularly after presidential election is going to have a big impact on what happens in housing. particularly policy impacting mature home owners who have -- they are about a quarter of the
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population but own two-thirds of the housing wealth and they are going to continue to. tax policy impacting social security and capital gains exclusions and things like that, policy impacting millennials 80% of whom would like to buy, student debt policy, for example. the other big group is foreigners, a third of new household formations and 200,000 home purchases a year. we know candidates have different ideas on immigration and how to deal particularly with china and mexico, which is two of the largest groups of foreign buyers in our country. >> everybody is going to redo their bath and kitchen. is has home depot? will they have professionals do it? i may do it myself the kitchen -- i keep trying to change the toilet paper roll. >> it's a little complicated. >> that gets stuck. i'm probably not going to retile my bathroom. can we assume home depot and
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lowe's will be beneficiary of this trend with low inventory and remodeling. >> home depot and lowe's as will local handy men and construction people who really suffered when real estate bubble burst. lennars did well and navigated but local guys stug he would. home owners struggled, too. you're going to pay market or above market to get guys, significant shortage of labor in those particular fields. >> that's why it helps to do it your self, i find. >> it depends on how you do it. i tried that. >> no. there won't be any of that. there will not. no. i wish. >> i don't know why i'm laughing. >> women find that -- there's going to be nothing for me if it's dependent on being handy in the home, i'm up a crick without a paddle. >> you have many or attributes.
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>> remember some of the guys you have in here, then you combine that, those are the stars of some of those home improvements. >> the brothers. >> the guy that looked like he was on a soap opera, plus remodel -- is there a school for them? could i get better? >> you don't have to be good, you just have to look the part. >> wow, okay. i know exactly what you mean. shari, thank you. coming up tim cook marking a milestone at apple this week. five years since he took over at the tech company. talk about his biggest hits and misses next. take a look at a five-year chart of apple. as we head to break, we are celebrating 100 years of u.s. national parks service. we were just told by bill nye the science guy there will not be another 100 years.
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anyway, send us your national park pictures. keep them coming.
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welcome back to "squawk box." this week marks tim cook's five-year anniversary of apple's ceo. >> josh joins us with a look at his track record. good morning, josh. >> good morning, becky. there are different ways to gauge performance under tim cook. one simple would be stock. over the past five years apple
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stock has doubled. it's now up some 103%. piper's gene munster said he's done a good job sticking to the road map steve jobs put in place. >> the biggest thing steve cook has gotten right is operational excellence. he's proven he's one of if not the best operator in the world evidenced by massive growth in apple and during his tenure. >> ultimately cook has said his company's mission does remain the same. make great products that enrich people's lives. how do we judge those products? we know there have been blockbusters like iphone 6 which drove big jumps in revenue growth from 7% in fiscal 2014 to 28% in 2015. as for the watch, analysts don't consider that a home run, at least not yet, though it could be if decoupled from the phone. rbc estimates apple has sold 14
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million watches generating 5 billion in sales. then ipad pro which does boast attractive features and functions. the ipad as a product accounts for 12% of total revenues. beyond hardware cook expanded the company's service business so the app store, mobile payment and music, in the past jumped to $23 billion. next year cook says that business will be the size of fortune 500 company. what's next, horace of simco convinced an apple car coming. a trillion dollars market he says apple has the design and chops to revolutionize. >> josh, operational excellence. i guess i'd have to agree with that. joining taos talk more about apple ed lee managing editor of rico. that is enough, ed?
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>> sure. operational excellence he was doing that when steve jobs was running the company. he was all over the places last minute changes all kinds of things. when they were property typing iphone first had a plastic screen, which is better, wouldn't crack, break as easily. he didn't like it, didn't like scratches, tiny little ones, had to be glass. retooled everything, changed everything to make that happen. so tim cook cain and sorted it out. what they are lacking now is they don't really have a vision guide. they don't have a vision -- a. >> a guy who messes everything up at the last minute. >> cook is really great operator, executive. we haven't seen evidence of next game changing product. >> i don't know what it is. >> that's exactly the point. apple we've always relied on to sort of come out with that crazy
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new thing you didn't know you needed until you needed it, then you have smart phones now. >> might not be apple. >> may not be apple. that's american innovation. that's the whole point of american innovation. >> microsoft and google. google and facebook. they all -- why didn't google figure out social media first. >> because they figured out search. that's the thing. they figured out the other thing then facebook came along. >> innovators. >> it's not one versus the other. you need -- facebook is essentially a mobile company. doesn't work without iphones, smart phones in the first place. >> a car or tv? >> so my thoughts on the car is there's -- if and when a car does come to mark it can't be a better car. it has to be something completely much better. that's what i think -- the idea of apple car revolutionary, hardware -- >> fly ed. >> if it flies i'm sure that's game changing. >> i'm afraid fly around in a
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car. i have enough problems, right? i'm going fast enough. >> yeah, but if you're flying you don't have traffic. >> if you fly you don't have to hit anything. give me the greatest tv. that might not be apple either. >> if anything tv is a software business, cob tent. >> phone. what is phone with small screen. how is it ever going to get that much better than what it is now. >> phone has become your companion for all things, how it unlocks value. >> we're slowing down how frequently we swap out new models. >> how we swap out to your mother given they are good. i don't need to upgrade every year and a half. >> need to put some more bugs in it? >> no. i think what cook was talking about in terms of services revenue, media revenue, that is the recurring business it needs to really focus on. the problem with apple, the media business run by adq, smart guy. at the same time he does not buy into the tv business model,
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right, in terms of how content is paid for. it's expensive, right? apple not willing to pay high rates tv companies charge because they don't see the value. >> more we talk, always comes back to content, how many pipes you have. just the delivery of something everybody wants and the person that figures out what everybody wants. >> so netflix is a great example of content they want. you didn't know they had it before, now they want it. netflix still cash flow negative borrowing money to pay for content. content is expensive, delivering it is at expensive, not as disruptive as you think it was, close to cable tv model. we're seeing just over to digital, netflix or apple or who knows what next. >> the world is crazy. last week we just read a headline that this is like every day now. john krasinski will play jack
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ryan in a new tv show on amazon. on what? >> on amazon. what if somebody told thank you five years ago. amazon read a headline they are going to have that guy. it's going to be a new guy and it's going to be a series and on amazon. >> i think that gravy train is going to stop at some point soon. >> really? >> for the content? >> for the content portion, whether it's amazon or netflix or hulu or xep x with ways to get in more original content, they're going to start putting business models against it in terms of are we paying all this money and getting enough in return. amazon is a big company with reserves to do that for a while. at some point they will be like is this a real business or not. right now it's a marketing cost. they want to see the membership, they want to get people into it and buying into it, but at some point they will be like this is working. >> i can remember thinking in the days where who was it, like the fourth or fifth network, they are not going to be able to create content i want to watch.
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you have to be nbc, abc, or cbs to create content i want to watch and amc came along, hbo, with sopranos and amc with "breaking bad" and now netflix. >> everyone has some kind of watch. >> you're saying it's going to dial back. >> it's going to have to dial back. >> right. >> and then, you know, hollywood all the producers will have to figure out which ones do we pick. i tune in to my netflix now and there's tons of new shows that i haven't heard of before. that's great. >> it is good. >> i'm not watching all of it, that's for sure. nowhere near as much as when hbo was starting to do originals it came out in drips and drabs and you waited to see if you wanted to watch it. with netflix it's too much. >> thank you. >> when we come back, jim cramer is back. he will join us next live from the new york stock exchange. and as we head to a break, we're celebrating 100 years of the u.s. national park service this week. we asked you to send us your national park pictures. keep them coming. we love them.
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let's get down to the new york stock exchange. jim cramer joins us now. i don't know if you looked at what they're paying, jim, pfizer
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and medivation, what percentage of sales it is but people need growth and they have cheap money with us at zero, right? >> this company has one drug that's $2 billion, pfizer needs an anti-cancer franchise to extend what is pretty good book of business. had a decent quarter. i think this is about the old days, joe, when you saw these companies that really developed drugs and once they got to the point where the drugs were working, companies come in and buy them. and this is a reversion of the way it was. i think it's healthy for the group which has been as we know a tough group to own. >> yeah. oil, you know, is it still correlated. >> yeah i think so. oil was -- very, very early in the morning, oil was just down a little bit and our markets were okay and then oil came off bad. you know, oil had a big run off absolutely nothing i could find. >> are we ready to take a -- i don't know if it happens, they've told me so many times,
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jawboned they're going to do it, i don't think they will do it in september but are we ready to say the economy -- it would be a good sign they raised, they must know things are good? are we ready to take it positively. >> i think we'll still have the negative initial reaction. do i think we can do it? i don't want to see the dollar soar. a lot of our companies have good relations dollar year over year. it would hurt the internationals and i don't think our economy is all that strong. if you fight it what happens is you're basically saying we're never going to get any good. >> where did you go, jim? >> i was just gardening at the beach, gardening and doing boating. but it was all about i canned toma tomatoes, about 80 jars. >> instead of replacing my kitchen maybe i'll garden. another thing i can't do. thanks, jim. >> thank you. >> coming up, the markets, big morning movers when we return.
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it could cost you around $10,000. you'll face major legal fees, major fines, and steep insurance nalties. you could lose everythin buzzed, busted, and broke. becausbuzz drg is drunk driving. that's why a cutting gel world. university counts on centurylink to keep thr global campus connected. and why a pro football team chose us to deliver fibeenled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep their dealer network streamlined and nimble. businesses count on communication, and communication counts on centurylink. (speaking japanese) oh watson, your japanese is very good.
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thk you. (speaking japanese) exactly. i can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. (speaking japanese) all right. everybody of course let's get a final check of the markets. we've been watching the futures and they have been under a little pressure. dow futures down by about where we've seen most of this morning, down by about 40 points. s&p 500 futures off by about 3.5, the nasdaq down by 5.5 and
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oil prices have been weaker this morning as well. right now, wti is down by 2.6%. that's a decline of 1.28. to 47.24. >> that will do it. you will be here tomorrow. andrew is back i think. >> that's right. >> first time the three of us together in like six weeks. >> we have that going for us which is nice. join us tomorrow, "squawk on the street" is next. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer in the new york stock exchange. welcome home, jim. david faber is off. soft start to what may be an eventful week. yellen in jackson hole on friday. m&a, assorted fed speak to get us started we'll watch europe on the stronger dollar. that plus some production news out of iraq pushing oil down this morning. our road map begins with pfizer agreeing to buy medivation


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