Transcripts For CNBC Squawk Box 20130925

Virginia democrat mark warner. Aym an jabbers reported last week milliseconds ahead of other trades based on the feds surprise announcement that it was not tapering. 800 million worth of futures contracts traded in the first seven milliseconds after 2 00 p. M. Eastern time. You saw some massive moves there because this was something the market had not anticipated. Ayman will join us with more later this morning. And the s. E. C. Are in early state settlement talks. Kate kelly is reporting lawyers for the two sides met last week. The group met at the prosecutors suggestion, signaling that embattled sac could resolve the dojs investigation and continue operating as an independent hedge fund. Andrew, ill send it over to you. Thank you, becky. I want to talk more about that story in a little bit, if we can. In corporate news, jp morgan is trying to stop a wave of litigation from the government. Those include their own securities as well as those that they purchased as part of the acquisitions of bear stearns and washington music. The New York Times saying that settlement proposal talk that came this week could have the bank pay anywhere between 3 billion to 7 billion. Its a lot of money and, again, something we should be talking about. Also, alibaba reportedly decided to pursue an ipo in new york after talks in hong kong broke down. Alibabas market valuation would add billions of dollars to the two companies assets. And jpmorgan plannin to hire temporary workers. They did away with coupons. Check on the markets this morning. Again yesterday, you know, we had that one good day when they didnt taper and now i dont know what you know, what is ailing the market. I dont know. Maybe bad news is bad news. Or its, you know, whats going on in the you see, i just saw tony fratto hammering the republicans. And i think greg is not going to say and corker has been mixed. In some points he said he would mix this, hes been tweeting, slamming what ted cruz is doing. Remember the plan that i said yesterday that they were doing was the oneyear delay. That showed up as what they are trying to, i dont know, keep it front and center. So theyre cruz is doing green eggs and ham and stuff and now hes doing the full on. Green eggs and ham . They just have a pile of books . Horton hears a who . Do they have a pile of books they read from . I wouldnt do dr. Seuss. I would do tolstoy, i think. We have the mayo clinic coming on, as well. Mayo and cleveland are both theyre already Accountable Care organizations. So they want to and i want to talk to him about this. Cleveland clinic, they just fired and now theyre going to cut their budget by a lot because of obama care because they said its not this is going to let everybody. I thought it was noteworthy when you had the unions start to shift a little. Other people on the left and then your paper wrote that front page the other day. The front page today in the wall street journal points out some of the prices are set for the new Health Care Exchanges and people who are older and sicker, those consumers should get a break. Its the younger people who will pay more. In nashville, tennessee, a 27yearold male, nonsmoker, could pay as little at 41 a month right now. So thats the question, can you lure enough of the younger, healthier people to offset the cost for the new people. And i cant figure out what happened at the u. N. The post has a thats the only place that has this take on this. The hit with triple snub . I was reading some Market Reports yesterday. They said i think the president in his remarks, president obama in his remarks offered the option of said that he had told secretary kerry to go ahead and move forward with talks, diplomatic talks. And i think the iranians came back and said they werent interested in the. Were going to have gartman on in a second. Hes here. Hes not a suit guy, but he wears the flacks and jacket really well. Lets get to the we were going to look at the oil board. Well talk about all these things, commodities and gold with dennis when he gets up here. But lets get the glok Global Markets report from ross westgate. Seeing mostly red, ross. Jae. Weve been swinging around this morning. Only slim losses. We were down about 0. 5 earlier from european equities about an hour into the trading session. We were up about 0. 25 around an hour or so ago. Now, absolutely flat, really. Were not really making any ground in either direction over the last few sessions. The ftse mib is up higher, up about 0. 3 . Breaking it down into sectors today, we saw basic resources lower again yesterday. Basic resources up a third. Telecom is up about 0. 7 , as well. Food and beverage, retail slightly weaker. Carnival is one stock that has been in focus. Coming out yesterday with a 30 fall in Third Quarter profit. A lot of companies coming out and putting this down. This is the worlds biggest cruise line. Stock down another 7 here in london today. Theyre talking about possibly putting on an adjusted loss for the quarter. They have a number of problems, a lot of different ships over the last year. So that has affected their operating profits and people are upset with the outlook. Theyre trying to put some spending cuts in instead of raising taxes. So were keeping our eyes on that. Yields have been coming lower again today. We had an italian auction today which is essentially for yields for the lowest since may. And they have been going up recently so is theyre coming down. And treasury yields, were keeping our eye owes that as global investors. So there is a supportive tone to the bond markets, as well. Thats why we stand right annoy ahead oovt u. S. Open. Back to you. Ross, thank you very much again, ross westgate. Amazon is unveiling some new kindles. Jon, this is a very different strategy, but an interesting one. Yeah. Not so different in a few ways. Amazons new line of kindles now available for preorder. The hd tablet just hit a new low. 139. Not surprising that bezos is pushing the price down on something pep walked me through the lineup, including the new kindle hdx tablets, even higher resolution screens. Those start at 229 and 379. Listen. Success is for customers to say, wow. I want customers to say, wow, ive never seen an 8. 9 inch tablet this light. I want customers to say, wow, the mayday feature is helpful to me. I want people to say this display is the most people display ive ever seen. Its really about can you get customers to say wow. I bet you want them to say wow. We even have a different approach to that, which is we have been very clear. We sell these devices at break even. We dont make money when people buy these devices. We want to make money when people use our devices by buying ebooks, tv shows, movies and so on. And they do want to make money, of course. That mayday feature is a little button. You can type in and a live support person shows up on the screen and can walk you through things. At the high end, amazons 8. 9 inches hdx is close to 400. It will be interesting to see if bezos can steal away some of those customers. The mayday one is really appealing to me. Not that youre in a chat with something and you sit around, the idea of pooem being able to talk to someone facetoface, that is really appealing. Yeah. And theyre planning to try to get someone to answer that mayday call within 15 seconds. At this point, theyre staffing it entirely in the u. S. You can see the person, the person cant see you. How are they going to have enough people that i can see how this works if you have not so much people who have the device. But if the device is popular, its like everything in life, all of a sudden, youre going to be on hold waiting. Right. I imagine that could be a challenge, but they say they have a number of people lined up. You are probably still mayday support for your mom. You call every week, right . Much more than every week. Lets get to dennis gartman. We want to talk gold at some point. That got really interested last week, dennis, on the nontaper. That day, it looked like it might be going below 1300 and then it went up 80. What was really interesting is everybody was talking about those miliseconds. What was fascinating was that gold rallied lmy eied 25. Before that, it moved up. All of a sudden, gold started to move and Everything Else moved after the announcement. Somebody knew something long in advance of that. It hasnt held up and we know that theyre going to taper some day, but then again, they may skip no, we dont. Maybe we dont. Because thats the other thing i was going to reference was yesterday i saw someone and i dont remember who it was, but 2. 1 on the tenyear at some point next year. Which is thats counter to what is consensus. But that would forecast a really bad economy, right . I dont want to think about what happens at 2. 1, what will require economically to get it to 2. 1. A 50 retracement. Bonds broke out this past week. Everybody you know was short the bond market, and it was interesting except pimco got back in and a fooe few other people started to buy. I think thats caught a lot of on people off guard. And do you ascribe anything to the nontaper to its yellen now, why should we if we know shes going to be big time i think its put off until the springtime at this point. But if its honestly if its honestly the economy and its not just whats happening in washington right now, i dont know how they can come up with theres an october meeting and then a december meeting. Thats the only two that you can do it at. Youre not going to do it at october. Theyre probably not going to do that. That would be very panicky. Maybe they can change. Look, they keep changing what theyre doing. They said theyre going to start this year and they said theyre going to end by the end of 2014. I think bernanke has said but bernanke would argue that they have not said that. Because thats why everybody thought it was going to happen in september. He said something about having it done by next year, but hes reiterated data dependent. I heard that, too, and i thought that. He said that explicitly. It was a very xlisit statement that he expected to be done by mid year next year. How many times has he said data dependance . 15, 20 times tops. And it made sense that he was going to get it started. If summers was going to continue the tapering, but why would you start it if you dont want to create that much confusion. And he knows what she thinks about he has a year of everyone has his ear and she might all along have been saying yeah, with him totally. Dont you think that he, from a legacy perspective would want to leave having at least begun something . Not if we go back to 2. 1. I think its better to leave it to the next group. Go ahead, pass it to the next group. Youve got it. Im not a great yellen fan, but shes going to be the next one there. She has the confidence of the other people on the committee do you think shes too dovish or do you think theres Something Else going on . No. Shes too dovish. There seems to be a mixed view of her. She as plenty of background. Her husband is a Nobel Laureate around finances. Im comfortable with janet yellen in that position, not a problem. When the tenyear started getting out to 2. 8 , thats when the fete started to worry. How low would it go before the fed is concerned about it falling . 2. 25 . At that point, the debates within the fed itself before the Committee Meetings get to be pressured. 2. 25. What are we afraid of now . Are we afraid of the tenyear going to 2. 25 or i think theyre afraid of it going to 2725. More than 3. 25 . Yeah. Which i dont understand. Honestly, i made a speech yesterday talking about the economy. When you look around, try to get an airplane flight nowadays. So crowded, its unbelievable. Businesses, even where he live in southern virginia, which has been probably more impacted than ee quest ragz than any other area, business there is really doing quite well, thank you very much. You need a hotel room. While hes here. Actually, that is where you might mention it, if youre having that much its the best hotel in the world, as far as im concerned. How is that . Was that good . I dont know if we have the audio on. How about the free wifi . It is absurd that we pay that amount of money for a hotel room and i still have to pay for wifi. Ridiculous. Its ridiculous. But the economy is doing i think better than people anticipated. Its stronger out there than it looks. So i just wonder what it all youre not an s p guy . I trade ohm for any own account and only for s p futures. I think if i wroe it on the ticket, i would have a better chance of being right. Sometimes it feels that way. This morning, it looked like gold was breaking out to the up side. Next thing i know, im out three dollars and im gone. Do you think the market at this point its the day of the nontaper it hits alltime highs. So anything down is were counting a new correction and 10 is a long way off. Im not sure youre going to see it at 10 . Im bullish of stocks. The market tells me im doing the right thing. But it is astonishing, the number of 1 and 1. 5 moves we get nowadays. For somebody who is doing this, im not used to seeing those stock prices on a daily basis. Is ann wrapping . No, no. So do you want to keep any other markets interesting . What would you do with grains and the rest of the meat complex . As far as the grain market is concerned, the only thing i have interest in is next year you look at the price of soybeans for 2014 compared to the price of corn, somebody is going to plant a lot of soybeans. Were going to plant a lot less corn next year. If youre a corn producer, youre going to have to take a look at that. Aisle id rather be bullish for corn and bearish for beans. Everything is dollar and taper dependent, anyway. Isnt it amazing that in the grain pits in chicago, theyre talking about Federal Reserve policy. Its amazing. It really is fascinating. Because the fed is where it has never been before. Correct. 3dz trillion. Thats why the fed process has become so politicized. Everyone knows what is counting on it. Very few of us knew who the voters were on a monthly basis. Now everyone knows who the voters are. Its astonishing. Thank you. Thank you. Its good to be here, as always. Coming up, were going to talk about why larry elison skipped his biggest conference of the year. Some of you may guess what that was about. But first, here is look at the scary story for retailers. Americans are expected to spend less on halloween. The National Retail federation says about 150 Million People plan to participate this year, down from a high of 170 million year a year ago. Those celebrating expect to spend an average of 75. 03. On items such as costumes, candy, decorations. Who knows. I think about i dont know. I dont want to think about it. As we head to a break ted cruz would be good. I dont think enough people would recognize. Why dont we sell jk jk, bicycle bicycle and Andrew Ross Sorkin . No, theyre not going to as we head to a break, take a look at the National Weather forecast, the weather channels alex wallace has that for us this morning. What are you going to be . You know what . Maybe toupac. Yes. There you go. Pretty cool. Good morning to you, guys. Were going to be working our way through the florida time period here and dealing with more rain again this morning. Thats slamming itself into the west coast. More here coming from the gulf to make a morning commute, that will be a rough ride in and around tampa. How much rain are we talking . An additional one to two inches is in these areas. A lot of moisture flowing in. Thats going to keep things rather wet here for at least today. We start to see some drying as we head on into tomorrow. So looking forward to that. Meanwhile, in the northwest, chilly conditions setting up here for us. With that cold air in place, b thats going to help fuel wintry weather. We have Winter Weather advisories. Not early for snow. Its right on time. It will be piling up in the mountains. More squawk box coming back in a minute. Welcome back, everybody. Dan on mad money last night. I know you have up to the minute analysis. How is the demand for this phone . Well, very strong. From our perspective, a little too strong. Were begin to go run out of inventory. So thats interesting, guys. The question is, is this demand for apple or demand for sprint because sprint has been offering some cheaper price points than some of its rival peps. I think it has a be a combo. I walked into an at t store, i walked into a verizon store. I get a fingerprint saying which we couldnt do with the one that is here, and i think its going to sell. Ive been skeptical, but im start onning to change my tune. With what he said, wasnt there some channel stuffing . So yesterday, there was an analyst out claiming that there was channel stuffing going on. Who had been negative. But he had been negative before. This counteracts. Did sprint ever get as many as they dont get as many as others, but there are a number of stories that are out. If you go online, you have to wait now. Yeah. A friend of mine just ordered one and cant get it until november. A friend of yourself just yeah. My friend, not me. I thought if you finally do do it, you wont when she finally does it look, im close. Its going to be a special show. Were going to have tim cook on the program. It will be an event. Your blackberry turn it off. I know. I am close. I am finally realizing i probably need to make the shift. But its like giving up your security blanket. I have a couple of ipads, so im very familiar with it all. I was just hoping to get that bigger screen. That would make an easier transition for me. If you leave it like this i dont know if ive ever hit the right beck, if you can hold out if i hold out longer, i figure theres a bigger screen. The internet and video, Everything Else is so much better. I know, i know. Im very familiar with the environment. I use it in other forms. Its just im a keyboard addict. You dont have to get defensive about it. But you have a friend getting it. My friend, sue. Im not making this up. Hi, sue. Hi, sue. Larry ellison yesterday, he wanted to be on San Francisco bay as his Oracle Team Usa made a come back in the americas cup. Elliss key note presentation is normally the high point of the open world. Hundreds of attendees left the Conference Center after it was announced ellison was on a boat and would not be attending. Ellison missed the conference so he could be close to the racing team. The next race is scheduled for today and the winner takes all. But, guys, obviously, theyre questioning what his primary focus is, the americas cup or the well, it looks like hes the absentee ceo, right . Thats whats happening here. And maybe theres a company that operates on its that you cant even need. He can definitely do what it wants. It doesnt matter . No. And you think the customers dont care . No. You see, i think the business is a very competitive business. I think he actually wanted to make the salespeople or rather the customers think that youre but people love to sell him short over the years. Oh, i would never sell him short, i just after all the acquisitiones and this, theres always the reason not to like oracle. Hes good. When we come back, advertising the real story on the global economy. Wpps ceo sir Martin Sorrell will be joining out right here in studio right after this. [ male announcer ] staying warm and dry has never been our priority. Our priority is, was and always will be serving you, the american people. So we improved Priority Mail flat rate to give you a more reliable way to ship. Now with tracking up to eleven scans, specified delivery dates, and free insurance up to 50 all for the same low rate. [ woman ] we are the United States postal service. [ man ] we are the United States postal service. [ male announcer ] and our priority is you. Go to usps. Com® and try it today. Hey lady noooo no [ tires screech ] nooo nooo nooo hey lady, thats diesel i know. With my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. Im on expert on softball. And tea parties. Ill have more awkward conversations than im equipped for, because im raising two girls on my own. Ill worry about the economy more than a few times before theyre grown. But its for them, so ive found a way. Who matters most to you says the most about you. At massmutual were owned by our policyowners, and they matter most to us. Ready to plan for your future . Well help you get there. Jpmorgan is trying to negotiate a deal over on securities in the run up to the financial crisis. The New York Times saying the proposal for settle many talks this week could have the bank paying anywhere between 3 billion and 7 billion. Kate kelly reporting lawyers for the two sides met last week. This was their first sitdown meeting since before sac was indicted on Insider Trading charges. The group met, signaling that the embattled sac could resolve the dojs investigation and continue operating as an independent hedge fund. Some reports suggesting that could be a 2 billion settlement or more. I have one comment i want to make. To me, this just seems like the government at some level is holding these companies hans yom and theyre sort of prescribery going on on the other side. And asking for ransom. And asking for ransom. And it just seems, first of all, to he, if the prosecution is going sac and saying settle, that suggests to me that is in the the same case. I would argue either bring the case if you think that steve cohen is a criminal, bring the case. If you think jpmorgan has done something horrible, bring the case. Things like bp before the election. Martin sorrell was there. Havent you seen this movie before, spitzer . Do you remember all that. Not a single one went to trial, did it . And guess who pays . In the case of jpmorgan, the shareholders pay. Bear and Washington Mutual gets me crazy. Why are you so surprised . Its good politics, isnt it . Because in that case, hank paulson, if you remember, strong armed them into buying these companies and now theyre going to pay through the nose on the other end. Politics of the administration. They think it has contraction electorally. I think theres something called prosecutional discretion. You bring the case if you have a case or you dont. Thats the way the wind is blowing. And on steve cohen, theyre talking about a 2 billion settlement for the firm. Does that include him . He is the vast part of the firm. Are they suggesting no criminal charges . They havent indicted him, but thats been lingering out there. And then, by the way, it looks like hes bribing them to go he already thought he paid them to go away. paid 616 million. Look what he got for that. The prosecutors have to look good doing it, as well. Yeah. I have to say, i dont know enough of the internal details. Ive heard some things about what they found, particularly in the sac case and not being able to go after it. I just dont know enough of it. I understand the point and i agree. I think the sac theres a lot of potential things that went on in potential Insider Trading. Than where the government was begging jpmorgan to take over. Right. But my thought is, if youre the prosecutor and you say, give me 2 billion, first of all, where are you coming up with which number . And if youre saying 2 billion, 3 billion, would that be enough . Either you think theres Insider Trading going on or you dont. I came on this morning to talk about hedge funds and banks. Werent you coming on to talk about advertising . I claim about claiming my lunch from joe, two lunches. So were going to have our next bet, joe, on the election in 2016. Im willing to bet a lunch that Hillary Clinton wins the election in 2016. You want to do that now . You dont even know if shes running. Well, i think she is running. Im sure she is. What if the economy stays hes okay on either way . First female president , yes, after the first avenuefricanamn president. As we go into 15, 16, i think it will get not a lot, but after churchill, the first british prime minister. After thatcher, yes. Communication. The advertising week, the Clinton Initiative all crammed into one week, its crazy. Sir martin, we have not gotten to talk to you since onmicon we call it pog. We have not talked to you since this merger. Is it bad news because it creates a bigger competitor or is it good news because well, our stock price is up about 12 since the announcement. Their prices are flat despite the fact they talked about that over five years. I understand theyre pulling back a little bit on that. Clients have apparently started to say the savings well have a piece of that, too. Its strategically flawed. I think its a reversal of their strategies. Its structurally clunky, coceos, rotating chairman, dead lockboards dont work. Weve seen that in Companies Like Alcatel Lucent which didnt work out which is the nearest comparison when an american and french get together. The regulators will have the say not on just with the ftc in washington, but also in brussels and beijing. So the regulatory issues. 43 jurisdictions they have to go through. And there has been no articulation of the case of benefit coming to the heart of your question among the clients or people. And i think were starting to see already some discorruption there. Many people inside the company are saying, why did it happen . Two ceos apparently sat for six months together discussing the and without extensive banking advice and it shows in the structure that came out, no selfrespecting investment banker i think would recommend that structure. From our point of view, thats the destructive part of it. From the constructive point of view, it means it gives us an opportunity to escalate our strategy. So weve moved up our targets to new markets and new media from 35 to 40 to 45 over the years. Is that because of this merger . No. Its the challenger brand. If youre the challenger brand, you have to try harder. You remember that line . I think what its done is given us a window. If it is the greatest thing since sliced bread, which i dont think it is, its going to take three or four years to figure it out. Strategically, as you know, when you put some companies together, ignoring the Strategic Issues they face, you have to find your way to the bathroom. The second year you have to put in the strategy and the third year you have to hone it. Have you stolen in the clients as a result . There has been some activity already. If you look at the decisions that have been taken on media by ge or gsk, one or two things going on in the pharmaceutical industry, there are some things. Clients will not come out full frontal and say theyre moving stuff. But if you read the rooms, if you look at some of the changes even in the last four or five weeks, its very interesting. And the other thing that is very interesting is a duopoly sort of on emerges out of this. We have one client, i wont say which industry or who it was, they have three holding companies. After the merger, we went to them and said, youre now reduced to two. You want 50 , right . We said do you want to go to three . They said, no, two is sufficient. So in that case, one plus one equals one spop there is a duopolistic thing going on there, which we never thought about. And procurement departments require two. There is some concentration taking place in the industry. Basically, if you look at the market, our stocks up 12 there flat. Transfer of value is about 2. 5 billion to 3 billion. The market cap now is about 26 billion. So its moved up significantly post the market saying the deal will go through and its an advantage to us. Very interestingly, the smaller players have not gone up as significantly. But the biggest gainer, actually, was denser on the back of tokyo 2020 and their win for the next olympics. Weve got on music playing, but twosecond answer, would you buy twitter . I dont do two seconds. I know, but i would buy twitter, but i remain a bull on google and amazon. You see alibaba has not been able to gain agreement with the long on Congress Stock exchange and is coming to new york. Thats probably three very big internet and this is a big model. Along with the internet delivered phone, which is a competitor to apple and samsung, yes, very interesting stuff coming out of china, which im sure will cheer joe. You know it will. That was so not two seconds. Anyway we dont do quick, thank you. Coming up, Health Care Exchanges launched next week. Were wog to talk to the ceo at the myoclinic about what Health Care Providers should expect when squawk box comes back. Welcome back, everyone. At 8 30 eastern, we have august durables out. Orders are expected to drop slightly by 0. 6 . A weak july sparks concerns about Third Quarter growth. Then coming up at 10 00, we have august new home sales. The previous months report was weak in part because of higher Mortgage Rates. Forecasters say august sales likely rose by 6. 6 . And samsung is releasing its galaxy gear smart watch today. It will be linked to other galaxy Android Devices allowing users to do things like make calls and View Pictures without taking out a phone. Andrew, over to you. Thank you, becky. Thats new for us at squawk box. Yeah, new music. And new graphics. Were going to Talk Health Care this morning. Health kay providers are preparing for the rollout of obama care. I always know if im really sick im supposed to come and visit with you. Ted cruz is staying up all night, as you know, to kill this thing or at least defund some of it. What is the impact to the mayo clinic . Im often asked about that. Its in the context of a slow economy, an aging demographic and the Affordable Care act. They all come together to try to give us a more Sustainable Health care system. What it boils down to is theres not enough money in the system. Its an unsustainable Financial System and doctors will be paid less for the care that they deliver. The cleveland clinic, which i assume that you feel like you compete against the cleveland clinic, i assume . Were colleagues, but we compete. We have strong brands. Theyre cutting 330 million from their budget. Theyre cutting at least 5 of their staff if not more. What are you guys doing . Were focusing more on improving our quality and reducing our costs, but were not going to do any cutting. In fact, were hiring strategically to areas of priority. So when they say theyre fought going to bring in as much revenue, how do you deal with that . I assume youre not going to bring in as much revenue, either. Am i wrong . Were growing our revenues. But were focusing very much on reducing our costs to deliver more integrated, Higher Quality care. Have you considered consolidation . Theres been a lot of consolidation going on in your business. Weve taken a different path, actually. Were using information and Knowledge Management to share what we know with other groups so they can provide better care locally. Were building a network around the country called the Mayo Clinic Care Network where we they subscribe to mayo, we share with them how we work to help them provide better care locally, and then were there as a backup to do electronic consults or help them with their care. And if the patients need to come to mayo clinic, they do, but weve created this large netw k network. Rather than because that focuses on integrated care for the patients. Whats your take on the exchanges . Is this ultimately going to be good for the patient or bad for the patient . I think well find that Health Care Costs the premiums will go down, but there will be a lot of high deductible plans. So kuhn assumers have to be careful what they buy. It may be tremendous out of pocket. If they get sick, they may be forced to have a very limited array of positions that can help them. Theres two sides to this. What kind of health care do you provide for your own employees . Mayo clinic provides its all mayo clinic . Its all mayo clinic. And you dont have to have an schaj because you are the exchange . We are. When you look at what is happening to obama care and the potential for when it gets rolled out or not, does that have a real impact on what youre doing today . It will. We will be paid less for the work we do for each unit of work. Theres to doubt about that. Everything we do will be reim bursed less. How much less . Were trying to estimate that, but it could be in the 10 to 20 range, possibly more. But i thought you guys were supposed to be the role models. Everywhere ive gone, ive heard people say, look, this is the example of where we should be heading. I think an integrated system like we have where everyone works together to serve that patient, what is the patients need, allows us to develop Higher Quality, more ee patient care. So youre going to get paid less for it. Were going to get paid less for it. The Affordable Care act doesnt recognize a spectrum of quality or complexity. Thats why were working with the government to try to get that changed. Wouldnt you say if you can afford it, thats medical care in the world at the mayo clinic . Well, we think you can afford it. Because youre saying on break that we dont have Great Health Care in this country. Thats looking at the whole the whole country, health care is very fragmented. Here sr the best treatments in the world, right . To america right . Individual services this country leads. Absolutely there are tremendous places for that care. If you want to have coordinated care over a lifetime, we need to nip that together with team work. Thank you for coming in this morning. Thank you very much. If im really sick, im coming to you. Take it back. Coming up t mens warehouse and future. S have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial does. Thats what they can do with you. Ameriprise financial. More within reach. Thats not much, you think. Except its 2 every year. Go to etrade and find out how much our advice and guidance costs. Spoiler alert its low. Its guidance on your terms, not ours. Etrade. Less for us. More for you. Courtney reagan joins us with the exclusive. Good morning. Good morning to you becky. Doug has been the ceo of mens warehouse since 2011 and with them since 2005. The i guarantee it guy. The board issued the press relesion discussing the determination. This is the first time addressed in an interview. What happened . Im going to refer you to the statement the board put out soon after it happened. The only option was to terminate mr. Zimmer because he was disruptive . The board tried to find another resolution but was found in this solution. Is there no contact with mr. Zimmer, he is still the largest shareholder . No, we havent had contact. He says the retailer hasnt seen the evidence of a business falloff related to the fact zimmer is no longer the spokesperson. A drop in profit and guidance he believes a result of economic pressures and says average sales are strong. Theyre focussing on the business strengths. Theres a lot of talk right now about the macro conditions and impact its having on Apparel Retail now. I point to the fact we think were doing better than most of our competitors. We have strong brands, number one market share positions. Were confident were going to work through these head winds. When it comes to growth, he says there are opportunities to add more full line stores, exclusive brands to expand margins and is testing outlets. Becky courtney, thank you very much. When we come back, we have this mornings top stories and turn around specialist harry wilson. Story time in congress. Do you like green eggs and ham . A vote on obamacare. I do not like green eggs and ham. And the looming debt ceiling. Would you like them here or there . Harry wilson is here to tell us how to put america back on the right path. Two former governors with different opinions. Judd greg and men dell talk about the issues affecting your men. Its leading up you with our interview of ritz carlton. Going to talk luxury lodging and why they dont serve green eggs and ham. I do not like them, sam i am. Lets stop this fill buster and put your money to work as the second hour of squawk box begins now. I do not like green eggs and ham. I do not like them here or there. I do not like them anywhere. Good morning and welcome to squawk box. Take a look at future and see how you the market is setting up for the day. We have a green hour there look like dow is open 8 points higher. S p 500 there. Prosecutors on their way to settling the trader case. Two sides met last week. Kate says any deal would be week or months away. That is the settlement that might be as large as a billion to satisfy the government. New york sometimes suggesting it might be closer to 2 billion. Jp morgan chase looking for a settlement. The figure could be as high as 7 billion, between 3 billion and 7 billion. We have a better idea you now of how much health plans may cost under the new Health Care Reform law. The Administration Says the plan will average 328 per month for an individual plan. Thats before tax credits are applied. Health Insurance Markets open october 1st for those that dont have employer provided coverage. The debate in washington over a possible government shut down continues to worry the markets. Dow and s p 500 both finishing down. Dow jones and s p in new york, i was waiting for stocks to go up. We havent had an upupday yet have we . Not yet. We got a kick after the fed didnt do what they were inte intended to. We didnt add it to go up. When it measures, it isnt encouraging with washington. I then saw an article that entails cisco and General Electric are relevant because prices are too low. Well see. Not quite. There are people, rick is one who said last time this happened when we got the downgrade, its basically meaningless. Everyone in the world knows what the greatest safety and security is in terms of paper. It doesnt matter whether its aaa or not. French paper is not the same as u. S. Paper. Thats true. I think youve got to realize the impact on most of the people in the United States. When everybody suddenly realizes our government cant talk to each other, were left reading bedtime stories when we should be asleep and figuring out what the hell to do. Thats the way it looks. If we go into default even for a day or two, there will be an echo in the markets. This is going to ruin Consumer Confidence and make Fourth Quarter numbers look bad. The shut down is different than a default though. The shut down is different. The shut down, half the government sit there is frozen two or three days until congress does what it should have done a few days before. A default means that somebody out there is holding the Treasury Bill he expected to have repaid on a particular date and not getting his money. Hes wondering what happens. It would you take do you think there would be an actual default even if we hit the debt ceiling. Theres things they can do. There are people that want to scare the markets into thinking that would actually happen. Its hard to believe that would ever happen. Do you think it could . My hope is that between magic on the part of the Treasury Department and little bit of sanity on the part of the u. S. Congress, which seems to be a fading item these days, wed avoid and get through it. Look over the cliff and say oh lets not do that. The problem is that youve got everybody with their own agenda. The agenda goes different directions. They dont have hope of coming together. For the republicans who want to go over the cliff, theres really no down side for them. Theyre confident theyll get relelktr reelected no matter what happens. Its a strange situation where the forces to pull people together are not there. That makes you wonder. Ive heard the point made their seats arent at risk in a lot of districts, these house guys. The problem is theyre either solid republican seat or solid democratic seats. Neither group is at risk of getting tossed by the other party. Then the republicans are almost two parties. Theres the Tea Party Group and the other group. Their seats are pretty well insulated. Youve got two and a half parties. Theres no pressure to get them to come together. The only person in a tough position is boehner who could lose leadership position if he doesnt listen to a wing of his party. Yeah. Boehner is really the odd guy out. Hes got two halves pushing. Neither is enough to bring it together. He seems to be smiling at tea party. They wont let him talk to democrats and certainly not the president. Not that theyre ready to talk to him either. Thank god we didnt taper. Thats why i guess because of all of this. I think thats a big reason. I think the fed looked at this and said worse comes to worse, the economy will slow down. This is the last moment to squeeze a little money out of it. Dave, thank you. Have a good morning. You too. In the debate to defund obamacare, senator cruz of texas took his time reading a bedtime story. The classic. I like go dog go. I used to read that one. Theres big blue eyes. I dont remember that one. There is. And wink eye. He was reading i would get something that would take longer. He was reading believe it or not, green eggs and ham. Look at this. An opportunity i dont usually have when im in d. C. To read them a couple of bedtime stories. Do you like green eggs and ham . I do not like them, sam i i am. I do not like green eggs and ham. Would you like them here or there . I would not like them here or there. I would not like them anywhere. I do not like green eggs and ham. I do not like them, sam i am. Senator cruz says hes going to talk until he can stand no longer. It is not technically a filibuster. Its more of a pseudobuster. Harry reed is scheduled to vote today at noon. Whats the difference . They can still do the the vote. This doesnt preclude them from doing the vote. Do you know about bathroom breaks . He gets bathroom breaks. Is there a nap in the middle of this . I dont think so. Is there someone that brings coffee or red bull . You probably dont want to drink a lot of coffee. This is a live picture. Senator rubio is speaking now too. I like the mulberry street story. You could get a lot of mileage out of. That. Is this a kids book . Yeah. Dr. Seuss. Great story. This is our guest host the next two hours. He served on president barack obama s task force. We want to talk about the autos. Whats happening with this filibuster, where we stand. Is there a solution to get us to something other than a government shut down . Theres not a great one. We only have a few days left before the budget deadline and not much longer before were out of cash. The only thing left to do is pass the continuing resolution to buy thiechlt i think he needs time where both sides will negotiate. The president says hes not going to negotiate over the debt ceiling. That shows feelings as a executive. Thats the wrong thing to do. Thats probably what wants you to the stand off. Both side said theyre not going to negotiate. The president said hes not going to negotiate period. Republicans say theyre not going to tax increases. Both sides this is the ground this is off limits and not going there. I dont understand what gets you to the point where you say this is not going to be my way or the highway either side. Thats right. At the end of the day, you need no allow that negotiation process to take place. As a result, i think the only real path is buy a couple of months and get away from the tv camera, get away from the senate floor and focus on negotiating to get this passed. Lets talk about autos. Weve heard about gm upgraded to moody Investment Grade since First Time Since 2005. And then the chrysler one. What does that mean to you . Its a validation of continuing surge in the autoindustry. It continues to underestimate how difference the companies are. Cost structure, product lines, management team, radically different from five years ago. In a world where gm used to lose operating basis on every car they produced, now they make 2,000 more. Ford did it on its own. As did gm. Gm wasnt smart enough in 2006 and borrowed 26 million at the market. We went through the rescue process we did. Tax paysers didnt make money back . Shouldnt the deal have been structured differently so we ultimately could have made money . The deal at this time there was no other source of financing for these companies. It was up to u. S. Treasury. We had to negotiate with the uaw that provided employees to make cars and bond holders that had the cars insurance to hold up the bankruptcy process. We negotiated to give them as little as we could in the context the deal is provided. There was the piece about the Union Pensions all made whole. The non union gm employees were left out in the cold. I think youre talking about delphi not gm. Gm pensions werent touched. Yeah, you saw the article two weeks ago. Theres a lot of misnomers around that. Two or three unions had agreements that citizen gm would top pensions if delphi fell short. The other unions did not have the agreements and they were not topped out. This is not the people that wrote the piece were implying it was from the administration. Thats not true. It was who had the top on gm and who did not. Here were watching the Great Success of general motors. We can applaud what youve done for the economy. One of the things everyone says about tarp, this, should the government given the negotiating leverage you discussed you had with nobody else at the table to do this, why the government and taxpayers are not ultimately beneficiaries . Tarp made money with the bank. There could have been two ways. The entire structure as a loan. Gm would have been under 50 billion of debt and had the same problems before the restructuring. Not a good idea. Second thing, the government could have had more equity. Exact opposite of what most want. More importantly we couldnt have structured a deal with bond holders or uaw that would have succeeded. Everybody agreed. Theres no contrary evidence then or now that a prolonged bankruptcy would have meant the end of general motors. We were in the position of having a short period of time to negotiate a complicated deal. Folks with offsetting leverage we had to negotiate with. When you look forward its funny. If we sat around in 2009 and talked about whether well debate getting 40 billion back or 15 billion back, nobody would have been having that debate. No way this company will succeed no way this company is different. All wrong. The company is more profitable. As a result you have a market that underappreciates that. The other point about chrysler. Thats a negotiation. Here youve got in the case of sergio, a guy that desperately needs to own all chrysler. Fiat is struggling. 70 to 80 comes from chrysler. He cannot walk away from that. Then you have you the trust running out of cash to pay health care benefits. They need this. They have a stronger hand. Their ask is below the implied market value of stake. If you look at gm and ford. They have the upper hand. Sergio will play out as long as he can but will ultimately move to the evaluation. Well have more with harry throughout the show. Coming up next, john fore catching up with the man running amazon. Well talk tech, Washington Post and more. Later, were putting on the ritz, ritz carlton ceo here to talk about luxury lodging and the start of his business. Squawk box coming back with more. And had them show us. We learned a lot of us have known someone whos lived well into their 90s. And thats a great thing. But even though were living longer, one thing that hasnt changed much is the official retirement age. The question is how do you make sure you have the money you need to enjoy all of these years. Third generation of kindle tablets, john sat down with ceo to talk kindle success and more. John, good morning. This new line of kindle fire tablet starts at 139. Interesting enough, the lab where this stuff gets created is called lab 126. Its one mile away from happenle headquarters. He spent a lot of time there this summer. I asked what he did there. His answer gave insight into what kind of manager he is. Listen. What i did this summer, we had three book clubs. Senior Leadership Team met. We had all day book clubs. That was one of the things we e did. Read Business Books together and talk about the strategy and vision and context. Those books just become frame works. Theyre skeletons we can use to talk about the business. Those were great conversations. It gives us a chance to get to know each other better. Of course we have lots of brainstorming sessions. Talking mostly about the future, whats going to happen in 2014, 2015 . Thats the future road map. Decisions were making announcing today, those were things we were talking about a year and two years ago. Of course i had to follow up and ask which three books. He sent me the list. The executive by peter druker, the goal. The reason for making these kindles really is people that buy them become consumers of amazons media buying movies, books, shows. He talked about his own interest in media and how technology is opening ways to produce more appealing content. This is an area hes personally making a lot of long term bets. Back to you. John, thank you very much. Lets get a check on markets now. Weve been watching futures. After four days of decline, you see this morning, dow futures are slightly positive gain of 13. S p future slightly negative. Oil prices at this hour indicated up 57 cents. There has been a significant slide. 10370 last trade. Yield 6. 25 . The dollar is down against the euro at 135. 15. Well have much more on the markets throughout the show. Squawk box will be right back. The secret lives of the super rich is just ahead. [ female announcer ] youre the boss of your life. In charge of long weekends and longer retirements. Ask your financial professional how lincoln financial can help you take charge of your future. Welcome back to squawk box. Penny higher about 25,000 temporary workers for the holiday season. Thats roughly the same level 2011 before it i think which aed the Pricing Strategy and did away with coupons given there were not as many people coming through you the store. Thats good news. Maybe theyre expecting a big turn. If you have questions or comment, email us at squawk cnbc. Com. Squawk box will be right back. Building animatronics is all about getting things to work together. The timing, the actions, the reactions. Everything has to synch up. My expenses are no different. Receiptmatch on the business gold rewards card synchronizes your business expenses. Just shoot your Business Card receipts and theyre automatically matched up with the charges on your online statement. Im john kaplan, and im a member of a synchronized world. This is what membership is. This is what membership does. Welcome back to squawk box everyone. In the headlines, several key economic reports ahead. At 8 30 eastern time well get august durable good orders expected to climb by half a percent. Coming up at 10 00 eastern time, congress expecting a increase in home sales. Mortgage applications rose as Mortgage Rates dipped. The average 30 year was down 13 basis points to 4. 62 . Refinancing act hit rebounded after falling to more than a four year low last week. Chinese e Commerce Company is planning to list shares on the new york Stock Exchange. Talks with hong kong are said to have broke opinion down. Analysts think that alibaba planning to list on nyse. Does it matter on what theyre on in terms to yahoo . Its a fantastic business. It doesnt matter what shares are on. Clearly the stock price of yahoo has gone up remarkably last year. Ranked 40 under 40 persons because of the increase in stock value. Some people say its a function of operations of the company and fact theyre bringing talent in. Other people say its a pure issue of the value of alibaba value thats gone up remarkably in the past year. You were on the board. Whats the answer . So politically correct you are. Just pick one. Its not that simple. Alibaba is appreciated. This is a brand new management team, tons of products. Theres excitement about the product for the first time in years. From the evaluation standpoint, when we first got involved and on board, stock was 15. Its 31 now. How much does aliababa and japan versus the vast majority was asia. The core business is smaller relative to the value of those two stakes. I think in terms of share of the value appreciation its mostly asia. That being said, core business is important. The real question Going Forward is how does she continue to develop thene business . Well talk more about that as the show progresses. These two gentleman, one was a governor and senator. Ed knows everything any way. Hes a former governor of pennsylvania. You philly, pittsburgh or it doesnt matter . Youre happy about the pirates right . Absolutely. I was the mayor of philadelphia too. Thats right. Okay. I know how you work in a state. All your children are your favorites. Greg is a ceo and former United States senator. Weve had the conversation a lot. Youre like moderate red sox fan. For the American League any way. Youre moderate and reasonable which makes me think you guys are probably going to agree on everything. You think the republicans arent doing themselves favors right now. Is that in a nutshell too . Im conservative and reasonable. Theres a difference. What we have today is a lot of folks shouting from the sidelines that dont appear to want to govern who are accomplishing little and marginizing the party as a result. If you want to do something construct skpif reduce the size of government, offer options that can be passed. You dont control the presidency or senate. To claim youre going to possibly default on the federal debt if you dont get your way, thats not governing. Thats just unfortunately massive political postering that causes the party to lose credibility. The regrettable thing is the National Press loves folks like this, people basically taking positions on their face dont make any sense and margelize the party. They get folks that are reasonable, could be constructive, reduce the debt and spending and defund obamacare in an aggressive way and impact it. Those voices arent being listened to because the National Press wont give attention. Youve got a guy on the floor of the Senate Reading childrens stories claiming hes getting something done. Nothing is being done by that individual because he cant even filibuster correctly which is ironic. So, weve heard the method of the madness is theyd like a one year delay on the individual mandate and that would be hard for the Obama Administration to handle. It might be good in the long run because it might prevent bad things from happening. Do you think its going to go smoothly . Do you think that could be delayed for a year until everyone gets ducks in a row . I dont think so. If you had private insurance Health Care Providers today, theyd say we cant do all insurance reforms like taking people on with preexisting without the mandate. We need healthy young people in the pool to smooth out the cost of taking people in who are seriously ill. Theyre correct. So it only works with the mandate. Look, judd is right its irresponsible to tie these together. To me the biggest crime is we have the opportunity to do Something Real about the debt. The debt is not going away. The deficit may go down. The president always talks about that. The debt even with sequester is going to grow in eight years. Were headed towards a train wreck. When are we going to get serious and do Debt Reduction . Would it be possible for republicans to approach it in a different way to get the white house talk about doing something about the debt, governor . Of course. If they didnt tie it to obamacare and said by the way mr. President , wed like you to work with us on obamacare but really interested in doing something that will deal with the debt problem. Remember, the president and Speaker Boehner came fairly close to getting this done a year and a half ago. It broke down. Close enough its worth another try. Were going to have a lot of shouting and kick the can down the road again. You do agree on everything . You disagree with anything governor rendell said . I agree 100 with everything he said. The fact is things that could be done. The president put calculating the cost of living making it more accurate. That was responsible. The house should have grabbed it, should grab it today and pass it. Judd, is that offer still on the table . Well, i dont know if it is. Once you put something on the table, if the other side accept, its hard to go back and reject it. The second and third decade, this is huge. Trillions of in savings. By the way its reasonable, right, correct thing to do. Becky, the biggest problem the president would have is his own party. Hes going to have to lead in his party to get that through you. Its worth trying. Its important and in return for cpi, the president has the right to say i want significant tax reform and want some of that money to go to deficit reduction . We should point out ed and judd are cochairs of the fix the Debt Campaign. Weve spoken about the fix the Debt Campaign with you all and others from the campaign over the years. Do you feel its picking up steam or getting more difficult because of things in washington . All the simple things are done. All easy things have been done. They shall fairly large, 2. 5 trillion. The big things like tax the reform havent been done. Theyre complicated. They take willingness of two parties to come together on political and complex issues. How you force that to happen is the question. We have a debt ceiling coming up you and cr coming up. Those are difficult to get something done. Executes, youve got bad problems. They should be able to replace the sequester which is dysfunctioning. And replace it with retitlement reform and tax reform on top of that. A lot of people understand that and are willing to do that. If we could get everybody in the room, get the president ial leadership, we should be able to get it done. I dont know. Whats stopping us, judd . You were a senator when saying this. Youve been retired how long already . Whats stopg stopping us is basic theme of politics. Why should we be optimistic . Im not at all. I think it changes because at some point the markets tell us they cant tolerate anymore debt. Thats been pushed off. Its a matter thats going to occur when this country will face a massive crisis driven by the fact people lose confidence in the dollar. You were going to say because the fed is not going to taper, we can keep doing this for a while. If theyd stop tapering, youd have this longer. Theyre allowing this to drag out . No question. Thats not their job. Theyre trying to keep the economy going when congress and president are disfunctional on the issue. You guys seem to get more reasonable when looking back at your career and government. It works that way. You two guys could be coceo of a company. This is sweet to watch. Go ahead. I think what he said is correct. Its more than that. He said we did easy things and now time to do tough things. It is time to do tough things. It will take political courage. Weve got to do it because its not going to change or get better the longer we delay it. The opposing people say deficit is not as bad, more money coming in, spending less. The problem doesnt look pressing. How you do you push back against people that say they . Thats correct. The deficit is going down. People are confused between deficit and debt. Even with sequester, debt goes from 73 of gnp to 79 . As judd said, in 20 years well be close to where greece is. We have the opportunity to do something about it. We shouldnt be facing this problem down the road. If we keep kicking the can down the road, its just governmental responsibility. Thank you you governor rendell and governor, senator, almost commerce secretary judd. You sound like you may still get it now after this interview or at least some job. Thank you. Id like a job. I could always use a job. Thank you. Maybe maple syrup. We used to get that all the time. New hampshire is the best. Or vermont occasionally. He always brings it. Coming up, ceo of one of the worlds most luxury lodging brands, ritz carlton. Well have that next. What will the super rich do during the apocalypse . Climb into their bunker of course, food for seven months and amen at thises needed to survive. Well talk about that when we return. The action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . One of the Worlds Largest hotel Luxury Brands has announced Global Development to bring numbers to 100 by 2016. Joining us now is herve humler. Good morning. President and chief operating officer of ritz carlton hotel. Weve been talking so long we go back to the days that andrew wrote about when luxury was questionable whether it would ever be something. We remember aig and this stuff you decided to continue to expand. That paid off. Its still something ritz carlton is back. People go to a luxury hotel. That was the right move to expand when things were scary. Absolutely. In fact going to a goal in the next five weeks, well be opening six new hotels. New countries, new cities. Going to two new places in china on the market. 15 Million People where luxury is moving in. Finally well open the hotel in india, first hotel in that county. November 22 in aruba. The goal ritz carlton always keeping the customer, aacquiring you new customer and market share. How much is acquiring new customers in the emerging market . Thats very important. When we look at china its not only acquiring customer in that market. 30 million Chinese People outside of china travel outside china before the end of the year. Its important that we are in that market, have the relationship to insure our hotel visit. When you model out for example the revenues and profits of the hotel in a emerging market, how much do you count the the business of 30,000 people going to your hotel . Thats something when we look at technology we have partner with one of the best luxury websites in china. Not only are we putting the hotel in china but we communicate to a quarter million customer in china about what to do when you come to new york. Not only mention our hotel but what to do in the destination. Jd power four straight years. We were talking offer camera your competitor people say in the same breath, four seasons. People check in the location theyre looking at, maybe the possibility of staying four seasons or ritz carlton. Do you know the difference here in jd power view why ritz carlton is thought of as better . Youre making the point it depends on the to me e its property by property. Some i love they have. If i was on a relative basis in other places, i might want to go to this. He knows. Hes been to both in all these different places. Let me answer that question. When you look at jd power, its 10 thousand sample luxury customer who traveled to many luxury places. When you look at companies evaluating the guest room, amenities, check in process, reservation process. Ritz carlton leads the continent five years or four years in a row. Im very grateful to ladies of this company that make things happen. So its all politics local to win this every year. It has to be the people that are right shaking hands with you when you get there. Absolutely. Thats hard to manage. It is not hard to manage. Make sure you have the right people and train them. Its not only about service but engagement. Dedicated to our customer to last a lifetime. Weve got to go. I have a serious question to ask. Why do you charge a premium for wifi . At the Cheapest Hotels they give it for free. Thats a good question. You talk about cheap hotel. What cheap hotel giving you. Theyre going to give you maybe a restaurant, maybe not. At the end of the day, i still have to charge for something. We are looking at it and certainly thats a question that our customer have. I think its interesting thats not a factor for our customer. Now they charge a premium for faster service. Were going to leave it at that why youre wifi obsessed. Did you bring these in . Im sure you need something to keep energy going. Is anything made of cale there . Do you have juice stuff . Can you eat any of this . Excellent. Thank you. Thank you. When we come back, where will you be when the world ends . Youre super rich, you expect millions to hunker down and stock pile. All the amenities you need to survive. Robert frank looks at bunker that will blow your mind right after this. Welcome back to squawk box. Rich have homes for skiing and sun bathing but some have created homes for the end of the world. We have this fascinating story. Theyre called luxury survival condos, an underground tower built 174 feet underground. We cant tell you where this is but only in central kansas. For a few million, you get a pool, pet park and nice place to ride out the apocalypse. This is the space previously occupied by the missile protection. We take security seriously here. Its not only the nature of the security because its survival amenity but clients here are use to high level of security. Bankers arent lending on conventional homes let alone these. You have to have cash to buy one. The price is 3 million for one floor. Half a floor is 1. 5 million. The first silo is sold out. The guy larry is now building a second. How many floors . I think ten but some are for growing food, raising fish, theres a gym, school, pharmacy. You can fit up to 70 people. If theres an apocalypse, you have to get there. You have to get out of wherever you are. A lot of guys have private planes or they have a plan to get there quickly. Whats interesting is the buyers wouldnt come on camera not because they were embarrassed but so many friends and family would love they have a bunker and all try to pile in if something went wrong. You probably know who the people are. Are they big name people we would know . A couple are. Lets call them athlete celebrity e category. Many are well known entrepreneurs as well. Whats interesting is theyre already sold out. Its the wealthy have gotten concerned about personal risks of all kinds. Could be a dirty bomb, disaster, break down in the government Financial System, social unrest. The whole unoccupied wall street lingers in the mind of the wealthy. Wealthy are thinking of personal and financial risk. The mayor of new york. See more tonight in the premee pr premiere of secret lives of the super rich. When we come back, bob corker will join us to talk about the shut down. We have much more just ahead. Is now the time to buy the stock in awol street analyst will join us after the interview. Stay tuned. Squawk box will be right back. The debt battle in the senate takes a turn. I do not like them green eggs and ham. Literature will dig into the substance of the debate. Amazon adding a may day to the new line of kindle fires. Thats the russian new year. Well serve hot more of the the interview with amazon ceo jeff bezos. Learning about the feds no taper decision a fraction of the second early made millions of the difference for some traders. This hour of squawk box continues right now. Welcome back to squawk box here on cnbc. Im joe along with becky. Harry wilson, ceo of group and former yahoo board member. More from harry ahead. It is now just after 8 00 a. M. On the east coast. Texas senator ted cruz and a few colleagues are talking and standing. They took the floor yesterday afternoon vowing to speak opposition for obamacare. The overnight talk aon this created talks by lee, other gop conservatives. Republican leaders opposed the time effort that the house wont have time to respond to the action. The spending bill is required to keep the government fully open after the october 1st. The senate test vote is scheduled for this afternoon. Were going to get bobs take on all of this in a couple of minutes. In the meantime, the government is in early stage settlement talks. Lawyers for the two sides met last week, first sit down meeting before he was indicted on trader charges. The group met. This could resolve the investigation and continuing operating as an independent. Maybe it signals they dont have a strong case. Bring the case or dont. This feels like a weird situation. This other situation feels weird as well. J. P. Morgan trying to stop a wave of litigation from the government. The bank has a multibillion settlement over the sale of troubled mortgage securities. The new york sometimes says the settlement came from talks that the bank would pay between 37 million. A lot of mortgages were things they were forced to buy. Youre a former does this make sense to you as a former government and wall street guy . Whats the problem theyre trying to solve . If its behavior for people that worked at firms that worked there years. Dont go after the firm years after the fact for predecessor actions. If thats where actions are, go after the individuals not the firm. You cant get money from the individual. Thats abuse of power. Hinge the individuals will always i think the individuals will always fight. Theyre not going to settle. If you want a big number, you can get a big number. Theyre making credit hard to get. What happened to club ex proposals . Not for these folks. This is precrisis. Today there would be for sure. Look at j. P. Morgan. Most people got fired and money was clogged up. We as a society i dont want to say we. For some reason thats not enough. Thats clearly why the government continues obviously theres more headlines when j. P. Morgan pays x million. People committed the crime or did the bad behavior. Lets check the markets. After four days of declines, you can see futures are indicated slightly higher. Dow up 22 points above fair value. S p are flat lining as are nasdaq. If you watched overseas, japan lost three yart quarters of a percentage point. Shanghai was down four tenths of a percent. In europe you can see red arrows. These are modest declines about a third of a percent passenger point. Thats the biggest decline in london. As we mentioned, senate is expected to have a proceed rural vote. Senator cruz wants to defund obama care. The tweet last week said i didnt go to harvard or princeton, but i can count. This is a tactic that will fail and weaken our position. Joining us now is senator bob corker. Youre in favor of defunding but dont approve of this tactic. Is that correct . All of us are concerned about policies put forth. We may get a delay in individual mandate, have the employer mandate delay already. Possibly i think you know subsidies going to individuals, you cannot verify income yet. To me thats a problem. Again, i think theres been a difference in view as to you how to go about this. I think everyone truly is very concerned about how this is going to affect individuals and the economy and companies. Weve seen that with more part time workers, with companies worried about going over 49 employees and being called up in this. Weve had discussions about tactics. You expect that i think. We are where we are. Hopefully something good can come out of this. Senator, let me ask you. The idea of more part time worker, uncertainty thats been out there, thats been the cause for why youve seen problems and people pointing the finger at washington saying theres the issue. If you have a delay for the year of the mandate, the uncertainty continues. As ed pointed out earlier, its a problem for Insurance Companies forced to pick up a lot of things without having individuals having to come in. It doesnt make sense to be able to offer a lot of parts theyre already forced to offer like allowing people to stay on parents coverage until theyre 26 unless they have younger healthier people in there. Youre not going to get that with individual mandate. Youll find it difficult getting younger workers. Becky, i covered this closely. Theres a three to one ratio where seniors cannot be charged more than three times the amount of a young, healthy person. What youre seeing around the country is young bullet proof people that think theyre healthy and dont have to worry about things are very unlikely that many will sign up you any way because of the cost. When you have these as you mentioned when you prequalify regardless and can get on any time, some decide since rates are jacked up, theyre going to wait until theres an illness or some reason for themselves to have insurance. I think there are a lot of issues here. There are real concerns about this policy. Yes, weve had discussions about how to deal with this, but i want to say this is like groundhog day for yall. For me, it seems like were always on the verge of a shut down. On the other hand what youve seen come out of this is permanent tax policy for individuals. Youve also seen for the first time two years in a row weve had reduced spending. What i hope well be able to do is substitute mandatory reforms for some of the discretionary cuts, having the same amount of reductions over the next eight years as we would have under sequester. Doing Something Better for our country. This is ugly to watch. Sometimes this is painful to participate in. Were clunking along and hopefully over time doing those things that would make our country much stronger. How do you get there . Plenty of insiders say they think this is set up for an actual shut down of the government. There doesnt seem to be a clear path to any sort of compromise. What path are you seeing through . I think theres kick the can down the road situations. I will say and i dont want to scare your viewing audience since im Glass Half Full thought person. I dont feel quite coming together at presence ive seen in the past. The white house is totally uninvolved. Youve got 535 folks here. There is no strategy i see. Again, some how or another, we seem at the end in the final analysis and final hour to always figure out a way to solve these. Theres not a gelling now. I will tell you that. Weve got to figure a way to make that happen before debt issue gets on full board. Senator, its harry wilson. On obama care, is the goal to stop it as much as possible or what is achievable . As i mentioned, i think the house has already figured out that a total defunding is probably not in the cards. Civics lessons, house controlled by republicans. Democrats have the senate and certainly the white house. I think theyre beginning to think about things like the individual mandate, things like the subsidies that are going into place even though you cannot verify income. Those kinds of things. Harry, seriously, youre in business now. I know you used to be here. I enjoyed working with you and folks around you during the a o autocrisis. I think any serious person would say there are issues. You know, trying to fix some of those before it actually kicks in full gear, i think would be something good for our country, so well see what happens in the process. What i hope we wont lose sight of though is a cr, funding of government, a debt ceiling obviously again around the funding of government, hopefully we wont lose sight of the fact our goal is to make our country fiscally stronger. I hope we dont go down political rabbit trails that take away from the seriousness of trying to solve the countrys fiscal problems at large. Bob, do you think we will or wont be in a situation to shut down the government . You know becky, you know, every time ive come on by luck maybe and having insights ive predicted exactly what was going to happen. In this particular case, i dont have the clear vision that ive had in the past. Again, i dont see the kinds of serious conversations taking place. I dont think well have a shut down over the cr. I dont. The debt ceiling if it occurs, lets face it its a painful deal. It will be brief if it i happens. I hope it doesnt at all. I dont think thats good for our country in many ways. On the debt ceiling, im not seeing the seriousness of conversation about what the real issues are. Im beginning to see candy being passed around, if you will, to see what it might take to get people to vote for debt ceiling increase. That demeans all of this to me. Again, im not saying the white house plays any role in this whatsoever which is not a typical thing when youve got serious issues. Becky, i hate to say this. Again, ive been batting a thought on your program saying whats going to happen. I dont know what will happen with the debt ceiling. I dont. Thats concerning. Senator, thank you for being with us. We hope to talk to you again as this process continues. Thank you. Later this hour we want to mention this quickly. You go ahead. Later this hour were going to continue our discussion with mark warner. Are you excited about this striker . Strikeer, the orthopedic surgical company, buying maco surgical. Its a 16 stock. Thats halted. Theyre paying 30. Wow. 1. 65 billion. Stryker makes theres a time im wondering. Knees or hips. Mako makes a robotic arm used in orthopedic surgeries. It makes sense. Did these guys get the medical device makers . They never got the exemption. I dont know if this has anything to do with the merger. They make an electronic arm, not for surgeries themselves . Yeah for the doctors. To put it its not a robotic arm. Now theyre doing interesting things. Amazons new line of kindles going to include the may day button to connect users with free video any time of the day. I always say budding with a d but i said button with a t. Were going to talk to a top analyst on what the new offering mean for amazons bottom line. Were coming right back [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Welcome back to squawk box. Amazon ceo unveiling the new line of kindle fire tablets. He spoke with our john fort. Its interesting. Apple mobile devices is primary devices for third party apps. It became clear after talking to jefr that he sees the kindle fire as a vehicle for consuming amazons content. Content has been dear to jeffs heart. Amazon began as a bookstore. He recently brought the Washington Post. I asked what the guiding principle is when it comes to content. In content, you have to be interesting. Thats where you have to be rivetting. Thats a key feature of content. We have amazon publishing, books, studios, developing original tv for instant video. The number one rule in that business is be interesting. You said people ask him all the time whats going to change in ten years. He likes to plan business based on whats not going to change. These kindle fire tablets are going to make it harder for microsoft to get traction too. The kindle will run 379. Its got a great camera, screen resolution. It isnt going to derail apple, but it will be to see if he can turn this into a three horse market race. Well get reaction to that interview and more from the kindle design. We have the internet analyst. Good morning to you. Good morning to you andrew. Is this going to make a dent in the world of tablets at all . I think it has. It has 10 market shares. That with basic ereaders, these have helped accelerator. They dont disclose it, but its almost certain theyre seeing one to two times increase in video and music sales off the tabl tablet devices. This is the razers and blade strategy. I think theyre trying to do is sell products at cost and then make small incremental margins, call it high single digit margins. The advantage is it comes to the market with two to three percent increase. A lot has been made of the may day service which im hoping to get my mother on. It requires a lot of human beings to be on the line. Youre able to press a button. I cant say the word properly. On the other end theres an amazon employee going to be tech support right there. If they actually get enough you uptake on this product, i assume youll be on hold. Yeah, that could be a problem. That sounds like a call center. We assume theyll outsource a lot of that. Key thing to keep in mind, theyre bringing down entry points on devices. You can get the inexpensive tablet 159, 139. You can get an ereader less than 50. This is messier for the market. That generates low price, low cost Companies Like amazon. Different customer than the ipad for example or even the Microsoft Surface you were talking about . Hard to know about the surface. Ipad probably. Thats the wrong expression dumb down. Try to make them as accessible to the market as possible and integrate services they normally like. There was one comment besos made in the interview about being depend ent on the upgrade cycle. Theyll make just as many profits off those prior versions of the kindle because its about the follow on sale, book sale, video sale. Amazons advantage going into the market it can cross sale. Let me flip that around quick. Everyone wants the latest, greatest newest thing. If theyre not making money on device perhaps losing money and everybody wants to participate in upgrade cycle, i understand he says it doesnt matter. I assume it matters a lot to them. Yeah. Ill make two points. One, i think theyre bringing products out at break even price. I think the strategy is not to lose money on devices. I challenge you on the assumption everybody wants to upgrade. Theres a large market of people that want a good device that they dont need to upgrade and keep spending more money every year. Me, me, me. I dont want to change things. I dont want things to change. Set it up, make it work, and leave me alone. There you go. Jeffs new customer here. Mark, thank you. Thank you. Coming up, the governments report on durable goods and forecasters expecting a decrease six tenths of a percent after last months decline 7. 3 . Next, your squawk box update. Well talk Christmas Spending and hiring. Thats next. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Welcome back to squawk box everyone. Americans expect to spend less on halloween. The National Retail company says this is down from a high of 170 Million People a year ago. Those celebrating expect to spend 75. 03 on costumes, candy and decorations. Thats a little scary. Walking dead coming back next month. Jcny plans to hire workers for the holiday season, roughly same level 2011 before it changed Pricing Strategy and did away with coupons and sales events. I guess were going back to hiring levels this year. Were a few minutes away from durable goods for august. Take a look at u. S. Equity futures. Indicated higher this morning after four days of declines. [ male announcer ] staying warm and dry has never been our priority. Our priority is, was and always will be serving you, the american people. So we improved Priority Mail flat rate to give you a more reliable way to ship. Now with tracking up to eleven scans, specified delivery dates, and free insurance up to 50 all for the same low rate. [ woman ] we are the United States postal service. [ man ] we are the United States postal service. [ male announcer ] and our priority is you. Go to usps. Com® and try it today. Welcome back to squawk box everyone. Were less than a minute from the durable good number frs august. U. S. Equity numbers are higher. Dow futures up 25 points. S p barely higher, fluctuating around the flat line all morning long. Rick santelli is standing by. Steve is here with us in studio. Rick, ill send to you for the numbers. Survey says august durable goods drum roll, up one tenth, much better than expectations. However, lets look in the rearview mirror. Last look wasnt good at minus 7. 3. Thats been downgraded to 8. 1. Lets take out transportation. Its up 1. 5. Lets take out you know, its interesting. We were looking 2 on transportation. Definitely solid but not solid. Last month 3. 3 unrevised. Lets look at business spending in the form of capital good orders. Non defense ex aircraft up 1. 5. Its a positive number, also light. Non defense ex aircraft on the shipment side, this turned positive. This has been a highly debated area on the shipments. Last look minus 1. 4, up 1. 3. You know what, it isnt a horrible number. It could be better. Ill let steve debate it. We are looking at the preopening equities that becky referenced, lower on the dow futures and s p future. Dollar a little under. Interest rate basis point lower than yesterday. Roughly six week three day low. Back to you. Rick, stay there. Lets bring steve. This number made people wonder about growth for the quarter. It was a big shock that the number was downgraded. Its a volatile number and very key to what boeing is doing. Boeing i dont have the prior months numbers here. The first print on them. In july, non defense aircraft parts, a long way of saying boeing, declined 58. 9 . Now you its down by 1. 2 . Is there a reason . I dont know. I think boeing is still kicking it out of the park as far as i know. It may be a timing thing. I dont know that aircraft orders have declined. Its something to watch. Youve had this up and down pattern with Business Investment. Thats the thing to watch from this report. June up 1. 1. July down strong 3. 3. This month august up 1. 5 . Little less than expectations i saw looking for positive 2 . Im guessing it still means Business Investment detracts growth in the Third Quarter. Perhaps slight growth. Addition in the second quarter. Thats the thing to watch. Rick talked about shipments. This feeds into it. Shipments were non defense aircraft ex were up a little. Thats going to help out a little bit. Thats the more meaningful number. The cross currents that are making me hesitate in how i talk here is osm good, regional good. The question is does government pick it up on first, second, third print basis. Thats what were watching . Next week were getting ism manufacture. I know its another show. If you dont mind, housing data coming out at 10 00 in the post world is an important number. We want to know how much higher rates are affecting housing. Now that rates have ticked down, fed seems to have bought 20 basis points at cost of according to hawks on the fed board, credibility and trust. And the cost of simply delaying. Bought 20 basis points that seem to be going through to the mortgage world. 2. 65 for the ten year. We were talking earlier this morning. I had seen an analyst saying the next level it will fall to is 2. 465 or something. Joe saw somebody predicting 2. 1 next year. What do you think is happening here . I thought i had a good handle. I thought the market was predictable prior to last wednesday. Once again, theres the game show fed is buying more on the manage Interest Rate side. Since its a manage market, its difficult to tell, becky, when the market perceived normalization. How yields go . The market has a baby sitter again. Im not going to venture a guess. Ill tell you this. I think the down side of Interest Rates or the upside of price is limited. Whether you normalize next meeting, meeting after that or market takes full control, its still much more digital than were seeing at the current time. If people can go back and look at transcript online for the deadly interview published yesterday, i wish i could point to a clear paragraph. There isnt one. I asked point blank are you targeting Interest Rates . He said no, were not doing that. We want an Interest Rate commensurate with our outlook for growth. This requires you i know rick scoffed there. It requires you top get inside the feds head in a way thats difficult. What do they believe to be the right Interest Rate for the growth forecast . At 2. 65 im sure theyre more comfortable. Theyre going to move again. Then it becomes a question how much can you rely on feds policy at this moment to maintain current pace of purchases so if youre in the market you end uptaking position. Thats where were at. When rick says its a confusing time, i join him right there. Its hard to get inside the feds head and understand what theyre looking for. Gentleman, thank you. Its like having a king or monarch who can unilaterally do what epts. All charge accounts associated pretend they have a say so. Trying to get in the heads of feds is trying to get inside peewee hermans head. Looking at fed and history seeing where the market is going, were in an upside down world. I cant believe more of you arent out there trading that wouldnt tolerate management in your marketplace. Speak up people. Is the money youre making too hard to pass up . I dont want to think of whats in pee wee hermans head. Wow. Man. You can always count on him to elevate the conversation. Thats not what i thought of immediately. The shut down show down is front and center on capitol hill. Bob corker spoke to us earlier this hour about the debate. Hopefully we wont lose sight on the goal to make our country fiscally stronger. I hope we wont go down political rabbit trails that take away from the seriousness of solving our countrys fiscal problems at large. Mark warner member of the budget committee. We would have gotten someone to argue with you, but weve had a love fest on both sides of the aisle. You serve had the earlier comment about pee wee hermans head. Say the same about whats in some folks heads in washington. Were days from shutting down the government in washington. Id like to take some of these senators down to the road. Come next week, 66,000 soldier go to work without a pay check. Shipyard workers are told to stay home. This is crazy. You are one that acknowledges, there are things we need to figure out . Absolutely. This is not about obamacare. Want rational argument or discussion about whats good or bad in it . Thats a legitimate discussion. This is kind of political theater at its worst at the core when we ought to be talking about how to get the nations Balance Sheet back. Both Political Parties are going to have to give. Republicans have to give on revenu revenues. Democrats give on entitlements. Were going to go through this every few months. This week is a warm up of whats were doing in a couple of weeks. Folks up here saying even if america default, it will make a difference. Youre a huge private sector guy. You had a great line. You were the first person in your family to make 200 million. Cell phones were good to me. I hate to see the notion the next generation of folks wont get the same opportunities i got because were going to be saddling on what now 17 trillion debt and counting. How about we assume theres leverage on either side in whats coming up and try to do something leverage one or the other side to do something in long term best interest of the country. Is that possible . There are a group of us, bob corker and i, our gang of six. There are an awful lot of senators on both parties frankly up you to here with the kind of antics back and forth. What weve got playing out right now is the delay tactic that i think chances are you could see a government shut down. I want some of these senators to travel with me down to some of these families who arent going to get a pay check in the level of uncertainty. Do you think entitlements or tax reform you want to do sequest sequestering . This is stupidity on steroids. Theres a way to cut government thats smarter. We have the house plan that in a dozen years would take total federal Government Spending on education, infrastructure and r andd down to less than 5 . No business would invest in that business plan. I think we need to generate revenues in tax reform, look at how we bring down the cost of sequestering. Ive looked at age and consumer, list of ten things. Both parties have to get serious about this. The president says he wont negotiate on this point. Are those things like jooirkscpi still on the table . The president laid this out in the budget. It took the senate a long time to pass the budget. We cant get to a Conference Committee to have a debate about this. The one thing i agree with the president and support the president , not governor romney but i hope he would have said the same thing if elected, you cant have the full faith and credit in the United States of america regularly used as a debating point. No National Power has ever defaulted and maintained itself as a world power. Senator, i dont know how many jobs do you think youre responsible for creating . Listen, it was in the enttenf thousands. Have you ever weve talked a lot of times. Have you ever raised your hand with the white house and said the private sector is really effective at creating jobs and raising tax revenue and doing a lot of things that quite frankly the government is not effective at doing . Ive raised my hands with both folks in the administration and raised my hand with folks i work with here. Im not saying some of the antics are going on now arent reflective of the republican party. We have a group of folks im not sure what their goal is. How about your side . Its easy to bash them. You can get too far on the government wagon. Arent we reaping what weve sewn . Percentage of spending on domestic programs now you is smaller on discretionary programs smaller than during eisenhower. A lot of solutions seem to be when you talk to democrat, Government Solutions not private sector. If were going to have economic growth, weve got to have the educated work force, infrastructure. As weve seen the private sector lay authorship more and more of r and d onto the Public Sector side, weve got to have that investment as well. Can we do it in a more rational way . Absolutely. We never got a vote on the simpson plan. You cant blame just republicans for that either. Theres blame to go around on both sides. Occasionally it ought to be not red shirt blue shirt but how we keep america competitive in this challenging global economy. Send me a list of guys youre talking about with the pee wee herman. Id like to know which guys youre referring to. Ill let youre mind wander on that. We always enjoy having you on. You talk to corker, reach across the aisle. One of these days this is going to bear fruit, hopefully in our lifetime. Youve got to stay positive or im in the wrong line of business. Thats not easy down there. Thank you senator. Coming up, as much as 600 million changed hands in chicago in mill seconds after the fed announced the no taper decision. Before chicago traders should have had access to the information is when hit happened. Thats not how its supposed to work. We have a full report on crucial information on the markets, next. Walking the grounds. In tuscany. [ man ] her parents didnt expect her dreams to be so ambitious. Italy . Oh, thats not good. [ man ] by exploring their options, they learned that instead of going to italy, they could use a Home Equity Loan to renovate their yard and have a beautiful wedding right here while possibly increasing the value of their home. You and roger could get married in our backyard. Its robert, dad. [ female announcer ] come in to find the right credit options for your needs. Because when people talk, great things happen. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready for real business. Which is. Pretty much what weve always stood for. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Welcome back. Fed says its following up with News Organization about embargoes. This comes after the reported unusual trading situation around the release of fmoc Statement Last week. We have more on the story this morning. Good morning to you. The embargo rules were in place inside the feds lock up room. They give the reporters access to the fed decisions a few minutes in advance of 2 p. M. In light of wednesdays no taper release. Some how information from ion side the room appears to have traveled to chicago earlile. According to the firm, it takes about seven milliseconds for data to travel from d. C. To washington. Thats the time you expect to see markets start to react. Last week, chicago markets reacted two to three milliseconds, much you faster than gold and other things than is theoretically even possible. The fed will not take the News Organization theyre speaking to. Weve contacted all News Organizations we call high speed feesd out of that room. Weve gotten responses from a couple. Dow jones would not answer our questions about whether or not he transmitted information out before 2 00. They said well work with the fed in full accordance to their desires. They gave us this statement. We distributed the news per the feds embargo process. We did not release prior to the 2 00 p. M. Embargo. Ive asked the fed again today, what were the rules inside the lock up room that we participated in last week . Were reporters allowed to transport anything out of that room before 2 00 p. M. Even if just to their own computer servers and moving that information to chicago before the release inside their own servers so it could be released in chicago at exactly 2 00 getting a jump on the translation time . The fed will not answer that question. They e will not say what the rules are. Trying to get some m clarity from them today. I dont get it. The fed wont even say what the rules are . Thats whats extremely weird about this. Eamon, when youre in the room, you have your computer there . How does it work . Theres a couple of different ways it works. Our Steve Liesman are matt cuddy were the people for cnbc in that room. They lock the door about a quarter to the hour and about ten minutes to they hand out the fed decision so reporters can pore over it. Im told reporters had access to Electronic Devices in that room at that time. And the question here is for the print reporters or the people filing on the wires and low latency feed agency, the question was what access and what did they have access to hook up with. If were allowed to walk in with a blackberry and they open the door and everybody runs. Is that a better solution. They open the door now at 1 58 and escort Steve Liesman up to the balcony and make sure he didnt transmit any information at all. Touch your right ear, your left here. You could come up with a code if youre a nefarious person. Thats bad news. Jim cramer will join us from the new york Stock Exchange right after this. Lets get down to the new york Stock Exchange with jim cramer. Big news this morning with strikers buying macos. Interesting, this has always been the son of isrg. It looks like they bailed it out for shareholder. This has been a disappointing stock for people. They have to be happy today. The durable numbers, theyre doing better but thats not saying a lot. The baltic is well over 2,000, it was 800 two months ago. Steve has tacked about aircraft sales. I still think internationals and cyclicals are the place to be and the durable numbers are not showing you thats not really the case. Well see enough a couple of minutes. Coming up, our guest host has been harry wilson. Were going to give him the last word when squawk box returns. Nascar is ab. Out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . With my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. These guys, the way they were elected, theyll still get reelected. The theres no strategy. Too me it says its too complacent where the vix is. Its too complacent. The most likely outcome is bide some too many, kick the can down the road. Answer your phone in case they need you again to restructure something. That does it for us today. Make sure you join us tomorrow. Right now its time for squawk on the street. Good wednesday morning. Welcome to squawk on the street. The s p is threatening to fall for five days in a row today, something it has not done all year long, as the market watches the republican budget filibuster now under way. 10year note could see action as mortgage notes come in okay but durables disappoint. Europe did see decent Consumer Confidence numbers out of germany and italy, mixed numbers over there