Transcripts For CNBC Squawk Box 20131211

In a statement, the president called the deal balanced saying it increased target fee increases and spending cuts designed in a way that doesnt hurt our economy or break the ironclad promises weve made to our seniors. Its the first budget that leaders of both parties have agreed to in a few years. The American People should not have to endure the pain of another Government Shutdown for years. House Speaker Boehner said while mottest in scale, this agreement represents a positive step forward by replacing permanent reforms to mandatory spending programs that will produce real lasting savings. John harwood has the latest data from the nbc wall street journal poll. Right now, lets check on the markets. After all of this, we can see the markets are barely budge. Waiting to take their cues, see what they think, see whether this passes, nasdaq and s p down slightly and dow jones up 1. 87 points. Tenyear note down to 2. 808 . Andrew, good morning. Becky, thank you. Mastercard has now announced a ten for one stock split and 83 Dividend Increase and a 3. 5 billion stock buyback program. The company says the move reflects mastercards commitment to delivering shareholder value. That stock, take a look at this, jumping more than 60 this year. Wish you had known about this a year ago. Also, General Motors will stop making cars in australia by the end of 2017. It cites high costs and extremely strong currency. The move has sparked fears that toyota might be following suit. And a gm official says there is no viable way to manufacture car necessary that country over the longterm. I wonder what the folks locally have to say about that. Hilton hotels expected to price an initial Public Offering later today. It would be the largest ever hotel ipo. Hilton was acquired by blackstone back at the height of the market and perhaps even the bubble in 2007. A lot of people thought that they were going to lose their shirts and they may not in this case any more. Joe, over to you. All right, andrew. Speaking of shirts, another new one, i see. How do you like it . Its a better collar. Its one of the new ones. Nope. It isnt . Nope. It looks great. Discovery communications reportedly has its eyes on Scripts Network intersieve. Discovery is considering a bid for scripps. Discovery is the operator, obviously, of all those networks, discovery, animal planet, tlc among others and run by David Zasloff as you know well here. Discovery had approached i know the guy from scripps, pretty well, too. Lowe, ken lowe is his name. They know each other pretty well. But scripps was not interested in selling at the time. I think its a cincinnatibased company. You probably met the guy. Hes around. For being based in cincinnati, hes up here a lot. And i know they know each other pet well. That might make sense. Hes not that old of a guy, really, but an acquaintance of our friend. Of our friend. Of our friend, david, yes. Lets talk more about the budget deal. Joining us on the set now, ben white. Im going to call him politicos chief economic correspondent. Joe can come in ive got beltway ben, bleeding heart ben, hes here. All of which are equally inaccurate. I wont go to our last conversation. It might be a little more accurate. You gave me a great complex. No, i did not. I said youre big boned. From d. C. , john harwood, cnbcs chief washington correspondent and john is joining us now, as well. Who wrote that the blue devils that Florida State needed to be afraid of the blue devils. And i didnt answer you that day, john. I laughed when chuck todd said miami had a chance against Florida State, but i laughed a lot harder at your comment. Wasnt it 380 for a while . Which game are you talking about . Football. Which one . Duke . All right, never mind. Never mind. Yeah, we got hammered. But you tweeted beforehand that Florida State was going to get it come upance with the devils. That was kind of a joke, joe. You cant tell. Thats the thing with twitter. You cant tell. It is hard to read. John, duke was ranked at that point. Werent they number 20 or something . Theyre still ranked and were going to play texas a m in the chick filet bowl. Im a little worried about that one. Becky has been bragging about the pinstripe bowl. Notre dame is not even admitting that theyre going to that bowl. Notre dame in the pinstripe bowl on december 28th. Right here in new york city. That will be fun. Joe . Yeah, buddy . I want your pick on fsu auburn. You know what . I thought Florida State gag was going to hammer them, but bossty was in saying the Florida State schedule was so much easier than auburn. I dont know. Florida state, i have not seen any weakness. I like Florida State. I lived in tallahassee for a while. But im thinking that the s. E. C. Is a forge that makes a team i think so, too. I think thats a good way of putting it. And auburn might pull something out of its hat huh . Huh . Might pull something out of its hat again like the last two games. But they looked unstoppable in the last three games. We introduced this segment as a budget segment. Andrew is so bored with this. Its the oblong one, not the round one. No, no, it has like pigskin, first down. As long as were not talking about the redskins, im happy. In nine innings in that game . Is there anything other than to say that the budget, they did do it, right . Well, they havent passed it, but they will. And steny hoyer was saying theres guys in the tea party that wont to it and theres guys on his side that wont do it. Isnt it done . I think its going to pass. There will be people who oppose it on both sides. Marco rubio came out last night and said hes against it because it continues washingtons big spending ways, etcetera, etcetera. So if youve got an ambition for running in 2016 and youre a republican, youre likely to go against it. But i do think that the leadership of the republican side is for it. I think most members are a little toird of beating their head against the wall on some of the standoffs that theyve had with democrats. I think democrats can say, do we get what we want . No. But is it better than nothing . Is it better than shutdown . Is it better than another debt crisis . And i think everybody is going to say, lets do it and the well fight another day. Theres one piece to that that the democrats are not happy about this morning, which is the unemployment benefits. But theres a view inside washington that theyre going to come back at this issue again anyway. Come back at the Unemployment Insurance . At the unemployment. I think they are. You dont . They can discuss it. I dont think it will get passed. Not in this, but they may come with a separate bill. Andrew, im hearing resignation in both houses that that is done and that democrats put up a nominal fight for it and said, oh, put it in, but there was no real umph behind it. There was no bottom line demand behind it. So i think thats done. And its another marker, i think, of the way that people are shifting from crisis mode on the economy to a different way of thinking about where we are. And let me also say its harder to offer the case for extending jobs benefits when you see the nebs we had. The problem is with that that the improvement in the unemployment point and the jobs being created are for shortterm unemployment. This will extend benefits for them. That is a difficult argument to make. There might be more discussion of it, but theyre not going to get it in a separate bill. Very unlikely. Right after that, we had Grover Cleveland. That would be incredible. Whoa, you heard Grover Cleveland . I meant grover norquist. Was he any good . I dont know if he was a good president or not. Do you know, john . Well, he you remember he was targeted for some of his extra marital activities. Oh, my god, thats unheard of. We know super grover from sesame street. The thing that struck me, grover norquist, was that he would be willing to take these higher fees with his revenue, taxes, in the past, taxes are taxes and revenue he wouldnt go along with. When he said that yesterday, i thought, this is something. Its not technically taxes. Its airline fees, its asking pensioners to pay more. Do the airlines have the largest lobbyists in the world . They have a lousy lobby and everybody hates them. But consumers will cover that, anyway. Its going to get passed through the price of airline tickets. Our own larry kudlow on Television Last night said Ronald Reagan believed in user fees. He did. And theyre not taxes. Youll see folks like heritage action, the real hard right on fiscal issues say that this is a tax in another form, but grover is not going to say that. Most republicans in the middle arent going to say that. Its not a tax increase that would kill a bill in the house. Its not enough. To the end of february, and into march, is there any chance that we have to deal with the debt ceiling now . Were going to have to deal with it next year. But its not part of this agreement. We have to deal with it next year. I dont think its going to be a huge fight next year. The question is, republicans are still going to have to vote to raise the debt ceiling, which is something they hate to do. Theyre going to have to figure out a way to get my point on that is if treasury can push it out to may or june with extraordinary measures, you get passed a lot of hard core republican primaries, so members who are worried about getting challenged have less to worry about if its later in the year. Which treasury can probably push through, particularly with a better economy, more revenue coming in. Debt ceiling will get raised as smoothly as a Washington Redskins long snap to the punter. Which is not smooth at all, right . If you remember, the redskins dribbled one on the ground. I do remember. No, i think ben is right. Again, if you decide that youre not going to have brinksmanship on shutdown, which is what this budget represents, youre kind of saying im past the debt ceiling fight. I think primaries are an issue, but i think were going to get by that. I think we probably will, too. The republicans want a fight of obama care. They see the president wounded on all this stuff thats not related to the budget necessarily or the debt limit. So why set themselves up for potentially being blamed for another crisis when they have a laundry list of other stuff they would fight on in the longterm. And by the way, guys, the poll that weve got out this morning which shows obama under water, 43 approval, 54 record high disapproval shows that 51 of the American People think this is one of the worst congresses in history. All of those members, republican and democrat, are up for election next november. So they do care about that to some degree. And i think were avoiding the debt crisis. I saw a 38 number somewhere. 43, you picked a good one. I saw a 38 number somewhere. 43 is his overall job rating. His job on the economy is 39 in our poll. Dont you trust the New York Times more to have better numbers for obama . Please, please. They do corrections for the most minor they do. They dont do it for any of their editorial slant, which is consistently wrong, but they do do it for thank you. Youre welcome. The question i have, though, is if this is such a big deal, why does the market not seem to care at all . You think the markets overnight would be i think its mainly because i wrote a lot about it on cnbcs website and it was prominent that this was going to happen this week, so its now been priced in by the market. So i take full credit for the markets reaction to that. But i think there is a general expectation earlier this week that this was going to happen. And even before that, once the last one got done and the last time they did it, it took ten years before they tried to do it again because of the political dampness and there was no way it was happening again. Given the underwomening drum roll for this deal, isnt the only way it would have a big Market Impact is if it goes down . I think thats probably right. And we should talk about the fact that this sets up nicely for 2014. If youre looking at the economy and risks to the economy in 2014, youve got one big one coming off the table here, which is a shutdown. If you thought that was the case and when the markets reaction. You had a number of economists saying this was going to push gdp potentially in a meaningful way. If true, you think the market would actually rally. Lets give it time. Investors will read morning money, theyll catch up and start buying. Stocks dont move on the day that comes out on. They usually get there beforehand. I do think theres some level buy on the rumor, sell on the news is the most common expression it would be the fact that they have not digested the watershed moment. You look at this, oh, its a small deal, its no big deal, there are all these problems. But there are not all these problems. I think longterm its bullish for markets. Lets leave it there. Joe, did the tenyear come to a high when you saw yesterday paul ryan standing tall, paul ryan standing next to patty murray and they were praising each other for hard work and no. Ill tell you what i said. You dont know that tall is tall unless youre around him. Shes obviously dimunitive. You got it. But he is a lanky fellow. Hes only a 170 pounder. We like him and no one you know, we talk about christine, we talk about jeb and we talk about people like that. We dont talk about ryan. Maybe hes too young, but hes a kennediesque hes irish with the square jaw. Hes young, but dont count him out. Wall street likes him, too. Hes a dealmaker. Yeah, but rubio said last night, its on with ryan. Excessive washington spending, hes slamming it. But i think rubio is getting the tea Party Nomination is not worth that much. And i know paul is doing better now because we havent seen him on squawk box for a while. When he needs us, he comes on. The reasonable this did wall is because both paul ryan and patty murray kept this close to the vest. And they built up trust between the two of them, which i thought was a really good thing. Becky, when you guys were introducing me, was my white balance on tv . No. Clever work in the control room. That is a Christmas Gift to all of us. But your hair is flat and wet again, john. The rest of the day, it looks normal. Im going to buy you a blow dryer for christmas. Joe, im going to have paul ryan help me with my weight. That is good. Im going on p90x with paul ryan. You look good. You do. I appreciate that. But still, i could do some p90x were you an end . I played football, but i was more a basketball guy. Were you an offensive lineman or something . Yeah, i was sort of an offensive lineman. So why are you running from your past . I dont he ran a 4. 3. Say it loud and say it proud. Rg3 kind of speeds. It was ten yards, but i am very tired, folks. Thank you. When we come back, meg whitman speaks exclusively to cnbc about the computer giants business. We have that and much more coming up in todays executive edge. And later, the wisdom of dilbert. The author has a new book, how to fail at almost everything and still win big. This isnt a joke. This is something to guide you on your way if you are trying to find a way to straighten things out. He tells us why passion is well, he calls it b. S. First, lets find out if theres any more snow headed minority northeast. Alex wallace has the forecast. I wish i was bringing better news, but yes, there is more snow headed for the northeast. Right now, though, its around the great lakes where were finding snow, mainly lakeeffect snow and thats going to be piling up out there. Here are some of the totals well find through friday morning. The u. P. Of michigan picking up the heaviest snow. But the eastern lake ramping up here. A foot plus for us east of erie and even more. Were getting up to two feet east of ontario. Then well turn to the next storm system. Midwest, icy concerns here for oi our friday. Then as we head into saturday, snow for the great lakes and now the northeast, including new york city. And by the time we get to sunday, its new england. More squawk box is coming up next. Time now for the executive edge. This is a daily segment focused on giving Business Leaders a leg up. Earlier on cnbc, meg whitman spoke exclusively with our karen tso in barcelona. Karen asked whitman about the future of the bicycle division. So this was the very first decision i had to make when i came to hp. So i took 100 days and basically said, this is very much a core part of hp and here is why. We are the biggest compute company in the world. This is what we know. Everything from, you know, as i said, bdi to workstations to laptops all the way to huge High Performance compute machines. So it fits into our overall strategy, gives us supply chain leverage. So were committed to the pc business and what we call the personal device business. Guys, he has said this in the past, but its worth checking in with her routinely on this because the street has a lot of questions. I think its the consumer business which is the hard part. Is personal business a core part of the future of what consumers do . Probably not, but they might be. Were buying a laptop. Were getting a new laptop. I was going to say, i need a new laptop at home right now, too. I need a new one because when im writing stuff and typing things, i need one that can sit on the counter top and i can use. Its like the newspaper business, its not gone. Its definitely going, but its not gone yet. And that is the way things and you figure this is longterm no, i always like newspapers. I do. Whether they can translate the technology into a pc. Dont you think longterm that the pc business is its like the landline phone business, right . There are still people who use it, but do you have a home phone . Yes. I have a home phone. But i never use it and i dont check the message machine, either. I think we have a home phone. Im old. I dont know. If you leave a message on our machine, dont count on any of us ever picking it up. Give out your number while youre at it. No. Once you get rid of your phone, youre talking about cord cutting from your cable and just having internet. And thats herecy. To me, i want it just in case of an emergency. And cant the towers its in a bad situation. If youre on a triple play situation no, im fine. You dont have triple play . Im old school. Really old school. Michael bell will be joining us tomorrow from dell world coming up at 8 00 a. M. Eastern time. Our next story this morning, urguays congress has given the green light to set up the worlds First National marketplace for legal marijuana. It will legalize the growing, sale and smoking of marijuana. A governmentsponsored bill approved by 16 to 13 in the senate provides the regulation and distribution for the consumption of marijuana and is aimed at rescuing the business from criminals in the small south american nation. Ive been utah of the loop for a while. Is nick rag one as good as columbian . Hawaiian became really good. And in northern california, im told they learned how to make really good marijuana. O, your expertise in this area exceeds our mine is all i dont know any more. Not that i ever did. I never exhaled inhaled i never did one or the other. Up next, the fed thinking about tapering and the government out of gm. And were going to introduce us to the man in charge of getting the world to invest in russia. If yand youre talking toevere rheuyour rheumatologistike me, about trying or adding a biologic. This is humira, adalimumab. This is humira working to help relieve my pain. This is humira helping me through the twists and turns. This is humira helping to protect my joints from further damage. Doctors have been prescribing humira for over ten years. Humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. For many adults, humira is proven to help relieve pain and stop further joint damage. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira , your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your doctor if humira can work for you. This is humira at work. A confident retirement. Those dreams, theres just no way were going to let them die. Like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial does. Thats what they can do with you. Thats how ameriprise puts more within reach. Youd do that for me . Really . Yeah, id like that. Who are you talking to . Uh, its jake from state farm. Sounds like a really good deal. Jake from state farm at three in the morning. Who is this . Its jake from state farm. What are you wearing, jake from state farm . [ jake ] uh. Khakis. She sounds hideous. Well shes a guy, so. [ male announcer ] another reason more people stay with state farm. Get to a better state. Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Did he personally interview all the managers weve had here over the do you know whether the does he know he speaks the truth of all the corporate world. But whenever you show something i cut out his cartoons for years. You always point out former managers we had at cnbc on dilbert. How was that . Good. Good. Good morning and welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and andrew ross sorkin. The white House Republican leader are praising im not familiar with this word bipartisan. And that means what . Have you heard of that . It says it right here. Bipartisan. Not familiar with the concept. Praising a bipartisan deal announced yesterday. It was avoid another Government Shutdown in january and cut the deficit by up to 23 billion in ten years. The deal is expected to pass both the house and the senate. And then they can all go home. Earlier, it thought it was funny when you said we wont have to worry about the fear of or the pain caused by another Government Shutdown, but well still have to worry about the pain caused by the government staying on open, unfortunately, with obama care. Were going to watch shares of costco this morning. The whar house retailer reported a quarterly profit of 96 cents a share. Results here impacted by lower gasoline prices. By the way, i wasnt the one who said that. I was quoting, i believe it was the president who said that. Yes, it was. And i was saying back to him, that we will have to weve got another three years. And the National Transportation safety board will open a hearing on the july crash of an Asiana Airline flight that you might recall crashed in san francisco. Like the tail. Just the tail. Two people were killed. The crash killed three on the tarmac. By a fire i know. It wag awful. You land, you actually make it and then right. And more than 150 people were injured. Investigators are looking into whether the crew was overly reliant on automatic pilot, on the jets electronic system. And stocks coming off a losing session as investors await next weeks fed meeting. Weve been you know, were right around 16,000 on the dow. Joining us, drew mattes, deputy chief economist at ubs and jeffrey stout, chief investment strategist at Raymond James in florida. I want to start just because im interested, jeff, in where stocks go from here and what youre thinking about 2014. Because weve been saying, you know, you have a huge year. Some people think, wow, i cant do that until next year. But weve made the point that sometimes the positive factors that cause a big gain one year, thats something that has a chance of continuing. Is that what you think . Yeah, thats what i think, joe. I think a lot of people that are involved in equity markets right now have never seen a secular bull market. The 82 to 1999 or 2000 affair. They think you buy stocks to trade them in a month, two months, three months rather than hold a good group of assets over the long cycle. I think the odds are high that were in a new secular bull market and i think it continues into next year. If we trade at just 16. 4 times, which is what were trading at now on this years bottom up operating earnings, if we trade at that multiple with no expansion in the pe multiple next year, which i doubt youre going to get because of the tapering, youre still talking about over 2000 on the s p 500 next year, which is a pretty good total return. The only thing that scares me is that it almost looks like e the what the fed was intending to provide that temporary bridge to the economy caught up and pass the baton in the underlying economy. And i mean, i hate to say that they might have been successful. So assume that we go up next year based on a stronger economy means that everything worked out. Does that ever really happen . It did between 1982 and 2000 except for the hiccup we had in 1987, which was a four or five standard deviation event and the equity markets took a hit, but the economy never really did. It came back on. And i think the sweet spot for the equity markets are going to be 2. 5 to 3 gdp growth next year because its simple and its sustainable. I think thats the case we get. You know the case you could make, money your thoughts in the past is that yeah, it could work out, but theyre delusional if they think they did everything. You read my mind. One of the things that worries us greatly at ubs is this idea that the exit strategy is going to go very smoothly. And, you know, secondarily, one of the things that may actually help the economy next year is the fed is exiting. People dont act normally in an abnormal environment. So when the fed begins to normalize things, other people begin to feel more comfortable that they know how the world is supposed to work. So that will be a net positive for next year. But then one you get beyond that, then you have to ask yourself, how does the fete begin to raise rates when their Balance Sheet is 4 billion and should be 1 trillion. With extra dollars running around the system, how much control do you have in the price of money . You havent been that positive on the markets, or the economy overall, whether the fed was really effective in trying to do what it was trying to do. Well, weve been positive on the economy and were not arguing that weve been arguing that the fed has actually been influence on growth rather than a helpful influence on growth. That wasnt always the case. Qe1 was probably the correct call. Its once we got into this qe forever, you know, 85 billion a moo, no end in sight and they overlooked the opportunity to begin to taper in september, thats when we began to become more concerned about their eventual exit plan. So, jeff, what would shock you about next year . We hate consensus and the market doesnt like to do consensus. It would either be a down year or a year up much more than the 7 or 8 or 10 people are predicting. Which way would it surprise the majority of people . I think it would surprise the majority of people to be up double digits. And i think theres a decent chance of that. People dont understand that the markets dont care about the absolutes of good or bad. All the markets care about is our are things Getting Better or are things getting worse, joe . And things are Getting Better. So you wouldnt be surprised. No. I think theres a lot of upside to next year. I think theres upside to the fourth quarter. What about the ten year . Youre still going to have even if the fed tapers, youre still going to be buying about 100 plus of net supply in the treasury market. So it has nowhere to go. Yields are going to stay low because the fed will be stepping on them heavily even with the taper. Okay. All right. Thank you and jeff, thank you, as well. It still looks like you have a moustache to me. But you dont. I had it for 40 years. I still see it. But you dont. Anyway that was my image. Yeah. Need to get you a moustache. Coming um next, an interview with the man in charge of convincing the world to invest in russia. And if you work in an office, you must know dilbert. Scott adams will join us. Squawk box coming back right after this. Welcome back to squawk box this morning. With the upcoming Winter Olympics in sochi and the protest in ukraine, russia is the interfacial spotlight for good and for bad. In a cnbc exclusive, the ceo of the Russian Sovereign Wealth Fund sat down to discuss those i shall with Michelle Caruso cabrera. Good morning. 38yearold old, he studied at harvard and stanford. His job is to try to convince the world russia is a place to invest. The Russian Sovereign Wealth Funds invest in its home ones. Most sovereign wealth funds are trying to diversify. His job is to coinvest with other sovereign wealth funds and gets them to invest in the country. Why on earth is that so difficult . A lot of people have a lot of concerns about russia. And i asked him this question. He wasnt happy about it. People are concerned theyre going to end up dead. People are concerned the rule of law isnt good enough there. We had a long intense discussion about those issues. We started talking about the sochi olympics, which is said to be a festival of corruption which it comes to the 50 billion spent on infrastructure. They do a lot of spending on infrastructure. I said tell me, have you done any investing in sochi . Here is what he said. Why no investments in sochi . It seems like a natural thing. Secondly, again, we are going tore more basic things, such as, for example, toll roads where we understand that, you know, so much toll road demand is in russia. And risk to return profile is quite attractive there. We understand the criticism of some of the construction of sochi and the negative articles about it. I think the olympics will be sort of analysis by russian authorities into what happened there. But that should not be sort of example of some other Infrastructure Projects that we are pursuing and the belief are attractive. Why not . When they see what happened with sochi, what has been called a festival of corruption, of back payments to friends, why shouldnt they look at sochi and say, investing in infrastructure in russia can be problematic, to put it kindly . Well, again, if you look at all of the olympics and lots of major project, i went to business school, lasted much longer, coveted much more than was expected. That doesnt mean there was major corruption in big in post. Does it mean no Infrastructure Project in the u. S. Can be pursued. So its very dangerous to generalize. So all we can say is for investors believe in what we are doing and is putting their money into specific opportunities that we are pursuing. In one toll road project, the structure is 50 from fund of russia, 25 from us and 25 of wul of the top australian investors. So we just proved by example that attractive Investment Opportunities exist in russia. So he wouldnt acknowledge this. Clearly, the way theyve tried to align investors money with the russian governments money is i perceive to be a way to ease concerns about issues with the appropriations, etcetera. He said you invest in china, you want a local partner. Bringing it back to problems that weve experienced here doesnt seem like a way to al e alleviate concerns about problems you have there. Yeah. I brought that up, as well. We went back and forth on this issue and over and over again he said no, no, rule of law is coming and, remember, its a new market economy, right . Weve only been at this for 20 years. Thanks, boston. They gave him for screwing up that big dig. Thats what hes got. He said big dig like six times. Thats his way of nailing later on this morning, what he says about ukraine. What about the ukraine . They dont like that any more. Okay. Thank you, michelle. See you later. When we come back, were going to find out if the budget deal is really an improvement from the status quo. But first, the author of office satire. Scott adams is here making his way to the set through a cubicle. Were going to find out what it takes from him to be successful. Every day were working to be an Even Better Company and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back everybody. He makes light of everyday situations and has become a staple around here. We clip the strip often, trade back and forth. Everybody knows this is truth of what happens in the work place. Scott adams is the master mind behind the strip. He talks about hiss new book. Kind of the story of my life. Welcome. Its such a pleasure to have you here. Thanks. Im sawestruck. We clip through it everyday. You speak to what happens in real offices. Its kind of kind but sometimes it seems mean depending on who im making fun of. The employees are never really they dont get the sharpest part. Well i show them lazy. Its the first cartoon in the employee based perspective. You got there honestly because of what youve done over the years. You worked at bank for a while and gathered material over the years. My failing became the fathering of dilbert. A lot of people send me information. A lot is this, business things happening. Ive had several businesses, restaurant, food company for a while. Im always immersed in business. Most havent worked which makes the cartoon better. Would it be possible for you to do dmv or amtrak . Can you go into is that too much material if you went to the Public Sector for material . Its too sad. Yeah, might be a little sad. I try to write about what i know. If this is that bad theres actually accountability in the corporate world. If theres no accountability . Probably the thing i hear most, you think this is bad, try writing about the government. Every once in a while ill hear from somebody that works for boeing or a big airline or manufacture with government control. Theyre the worse. Its a little government and a little corporate stuff. When i first picked up the book i thought it was going to be a funny only book. While the book is funny, it has serious lessons for what people need to do and what they can do to pull them along. I was amazed. Theres great lessons on things to help you. I came out of a small town with 40 people in my graduating class of high school. I had the same teachers my parents had in many cases. By the time i got to college, i never owned a suit, never got on an airplane, never event at a restaurant. I had no mentors. I thought let me write the book about how you approach success and give them a template. Its not advice. Its heres what i did, heres what happened. Every situation is different. Make your own solution. This is a starting point. One of my favorite things is you point out the class you took. One of the banks or companies you worked at helped pay for it. You had high praise. It reminded me of the certificate. Probably 20 people in my class came in absolute basket cases talking to groups. All 20 of them became experts. They never told them what they did wrong. They said you did that well. You did this well. Everybody became confident over time. Thats all it took, confidence they needed. You stretched that into a philosophy on life. You say this is something people should do handing out praise freely to people. Its free. The cheapest thing you can give away is a compliment. If you dont, youre selfish really. One of the things we hear often is you have to love what youre doing. Passion is very important. We hear that from people that are success. Theres a reason you hear it from billionaires. If you ask how you did you become a billionaire . What else are they going to say . Im smarter than all the poor people . I inherited it . I did Insider Trading and that got me going. Theres no answer that sounds good. You want that as part of your reputation. You say passion. Look at american idol. Winners have passion. You say that must have been important. Then you see the shot of stadium full of people that didnt make it past the first round. Theyve got passion too. Didnt help them. Passion is the least predictive part of success. What is the most important part . Combination of luck is one thing. Youve got to be prepared with some amount of talent and picking the right field, staying in the game long enough luck will find you. Thats mostly what i write about. How to prepare so youre ready when luck finds you. You took the time to do drawings of the three of us. We appreciate them. Can we show them too . My hair has never been so neat. You look handsome, joe. Becky. I like it because you look 12. Im wearing braces. We love it. Thank you for the eyebrows. You said his mouth was difficult. I think i nailed it. I think you did too. One lesson you tell people a side from being prepared constantly, is part of that practice. I would say the one thing you want to do is layer on skills. Im the perfect example of someone whos a meet oaker artist. Im not the funniest guy this the room usually. Im one of the few people that has all four things. That makes dilbert possible. You look at your own careers and have combinations of someone that looks better on camera. Well i dont know, becky that would be difficult. Please. Its the combination that makes things worse. We want to thank you for coming in. The book is how to fail at almost everything and still win big. Scott adams, we appreciate you. I love this. Really . I know that. Okay. Coming up, weve got a budget deal to talk about avoiding at shutdown. Its time to debate. The partners tell us if the compromise goes far enough you to fix the nations finances. More squawk box in just a moment. Hi honey, did you get the toaster cozy . Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. See, i knew testosterone could affect sex drive, but not energy or even my mood. Thats when i talked with my doctor. He gave me some blood tests. Showed it was low t. Thats it. It was a number. [ male announcer ] today, men with low t have androgel 1. 62 testosterone gel. The 1 prescribed topical testosterone replacement therapy increases testosterone when used daily. Women and children should avoid contact with application sites. Discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. Men with Breast Cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breastfeeding, should not use androgel. Serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. Tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. In a clinical study, over 80 of treated men had their t levels restored to normal. Talk to your doctor about all your symptoms. Get the blood tests. Change your number. Turn it up. Androgel 1. 62 . We have a budget deal. Let the debate begin. Former omb director nussle and robert atman tell us what they like and dont like about the compromise. Is it time to declare victory over the financial crisis . Bbt ceo kelly king and from the front lines of training Dennis Gartman will tell us if the battle has been won. What does a million get you on main street . Our million home series starts you off. Squawk box begins right now. Good morning. Welcome to squawk box welcome back. Futures should be doing better. Im with you on that a little bit. I was thinking wow theyre really going to surge this morning. I thought it was not going to be red arrows like this. Because of qe theres a lot of good news in the market. Heres your morning headlines. The heads of the house and Senate Budget committees announcing a bipartisan budget deal. Theres the word again. Im not familiar with that. The first in three years. Senator patty murray and congressman paul ryan saying neither side got everything it wanted. Called it clear improvement over the congressional conduct. Complete absence may have had something to do with it. Hilton hotels and expected to price the initial there. It would be the largest ever hotel ipo. It will begin trading tomorrow. That is the same symbol as i said. Amr is not. It was still so they had to change it. Its aar. Hilton was bought by black stone in 2007. It was scary. Now theyre going to do okay. Not a huge home run but you know. I was worried about paris. She has a sister doesnt she . Nicki. I dont think they have stake in this. Thats just a way of bringing something about the hiltons. He got clocked down in miami. Who . Their brother. Thank you. Thats hot. Thank you. The story, the ipo could be. Thats hot. Thats paris. She said that about the squawk box once. I think we should have her on tomorrow morning. You are the guy you had chris on yesterday. Get the drawing of everybody. Charlie sheen is guest host. Business man. What are you talking about . We can all drink tiger blood. Why not . Paris hilton by the way in her own way is a business woman. I definitely agree. We thought about booking her in the past. Well have her own. Google opened the first two asian data centers. Taiwan and singapore. Google is trying to cater to Fastest Growing markets and consumer technology. The company does not plan to open in china because of censorship. Mastercard up 60 this year. The Company Announced the 83 dividend hike and 3. 5 billion buy back program. On todays watch list. H and r block reported loss of 38 cents per share, one cent wider than expected. Revenue came up short of estimates due to a drop in International Tax preparation fees. Striking a deal to avoid another Government Shutdown, joining us now the former omb director and cochair. Also roger atman. You think theres good here because theres a bipartisan deal . Yes. It restores a normal process of budget making and governing. It puts an end to foreseeable future to shutdowns and default crisis crisises. It Shows Government can do something at a time most thought government couldnt. Its small as you say becky in budget terms and certainly debts of reduction. Doesnt solve the long term problem overhanging the country. Its important symbolically. Hopefully it will pass the house and senate. I think so. We have to wait and see. I hear you chuckling jim. Evidently a thirsty man will drink about anything. I appreciate rogers optimism, but think about this for a second. Three years with no agreement. Theres no sole security reform, no entitlement, no medicalle reform, no tax reform. Debt goes up. This is what they agreed to after three years of nothing. They agreed to spend 63 billion more and pay for it later. Wow. No wonder its bipartisan, no wonder theres so much support coming out of this. Come on. This is the best they can do after three years . You have to hand this to them, at least this is no Government Shutdown. Thats why i say a thirsty man will drink about anything. If thats optimism, good budget process i mean come on. I understand. The good news is yes the last month they sat down together and talked. Lets give them credit for that. They came out of the room after a month and after three years of nothing and decided to spend more money and pay for it later. This isnt really news from washington d. C. These days. Actually its the right economic policy. Were still in a weak economic environment. We see that with the real underlying 2 to 2. 5 growth in gdp. Spending more now, paying for it very specifically, and this is net deficit reduction. This is additional spending on front end over two years and 85 billion cuts and fees to pay for it over ten years. Its the right approach. It provides a little, not a big, push to the economy now. When we need it. Well pay for it at a time we dont need that hopefully when were further her recovered. I agree with jim in the sense its small stuff. I think its symbolically important in moving us past the period of shutdowns and default crisises. I think we are past it. That alone is a good thing. I know this pushes everything a few years down the road. Both are in favor of bigger idea, things to go after entitlements, things to make sure were looking at these issues. This pushes it past the next election. With the deep divides in terms of how to fix things, will the next election solve anything or resolve anything i should say . Roger i should ask you first. We dont know that. The next election is 11 months away. Thats a millennium in modern terms. You have to tip your hat to paul ryan and patty murray. Four weeks or eight weeks ago nobody would have thought they would have agreed on anything. Its small, but at least its an agreement to restore budget order which we havent seen in a while. A normal schedule doing budgets. If you start down a long road, you have to start with one step. I dont know if it will lead to broader bipartisan agreement not just on bundgets but more broadly. I cant say. Its a decent step. Under circumstances where nothing was working its i think to be applauded. To the extent youre frustrated jim, what does it mean for paul ryan within the the Republican Party . Thats a great question. I dont know. This is going to play out in the next number actually in the next number of hours as he unveils this to the house of republicans at 10 0. The 10 00. There will be a vote possibly friday. The short term is important how does this go over. Ive got to say paul and patty have done as roger said its as tough an atmosphere as anyone has ever had. I guess maybe i woke up on the wrong side of the bed. All right, fine. Its good. Ill applaud it. Its a good first step. My goodness. I dont want anyone to leave this conversation thinking that anything has been resolved here. You only have one side that you ever get on. Last time you wanted these guys to get together so badly and were yelling so much they couldnt do anything together. Now theyre together and you are just as mad as last time. Thats why you need paris hilton and Charlie Sheen instead of altman. Look, im happy they got together. You and i both know this is nothing. To come together and decide in washington to spend more money. Yes, i guess maybe pay for hit by the end of ten years sounds good to most normal people because thats how normal people act a. Washington has never acted normal when it comes to spending. I understand your point we want to make sure we dont take the focus off the bigger picture. Roger, is there a danger by reaching small settlement for tax reforms and larger ways to meet our obligations and find ways to deal with entitlements, does that take pressure for this off you the table . Becky, good question. I think we should be honest here. A month ago the chances for a bipartisan long term deficit reduction deal wasnt very good. This morning they may be 1 better but still not very good. Two central issues entitlement reform on the one hand and tax reform or additional revenue on the other hand were not addressed in this. Theyre too difficult to address. Patty murray and paul ryan said they were too difficult to address. It doesnt provide i dont think encouragement theres going to be a long term grand bargain. I think were probably out of that business the time being. Were out of the default and shutdown business too. Lets hope that wins. Like driving down a dead end street. Thats taylor street. Thats a bad impression by the way. Thank you. Thank you becky. Stop singing. Youre ruining it. Coming up, not one but you two guest hosts today. Kelly king and Dennis Gartman. Were going to find out if theyre declaring victory over the financial crisis. How much can a million get you on main street u. S. A . Youll find out next on the second hour of squawk box [ male announcer ] they are a glowing example of what it means to be the best. And at this special time of year, they shine even brighter. Come to the winter event and get the mercedesbenz youve always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho [ male announcer ] lease the 2014 e350 for 579 a month at your local mercedesbenz dealer. [ male announcer ] lease the 2014 e350 for 579 a month every day were working to and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. Welcome back to squawk box take a look at futures to see how things are setting up a day after the mini budget deal was reached in theory. Dow though not reacting as positive as some expected. S p 500 might open off marginally. Nasdaq down as well 2. 5 points down. Recent taper talk from fed eds like dennis and leaseman. Is it time to embrace . Its time to get to our guests. Gartman is a cnbc contributor. I need to see their book to see where they come down on all this stuff. Theyre always thinking shareholders and whats good for the bank . Can you at least acknowledge. Weve got to get back to normal some day. This country hasnt always run on fed has it . Well no. I personally think the fed did pay good job early on with q 1. We need had the stimulus because it was a lack of confidence in the system. I came out kind of neutral on q 2. It was a really close call. Q 3 was not needed, didnt do anything at all. My judgment its not doing anything today. Unfortunately its gotten to be a height symbolic idea that its taken on a life of its own now. They have to be careful how they start to withdraw. The real issue is not tapering. Its when do they start raising Interest Rates. Just listening to you, you would benefit more from a steeper yield curve and dont have as much mortgage. A banker that has the Mortgage Operations says we need to try lightly in terms of moving stimulation. The curve would help. It would definitely help. We need to remove that artificial factor. This is like government gone wild. I tend to agree the first round in october of 08, bernanke did what he needed to do. Things were come ago part. He came in and said im the adult in the room and forced federal reserves. Its far too long. Time to take the money out. Were going to do that. You think its a good idea, but do you think its going to happen . Sure its going to happen. In a week . No. Not next week, february meeting. Do you think the feds are sitting in the room talking about the economy all the time, do you think they lost perspective and got the inflated view of their role in the whole Global Economy . I think they lost perspective. They did it once, got away with it. They did it again. This almost became qe infinity. Living in washington is living in a fish bowl. Theyre human arent they . You hope so. They come to these i think they thought every job in the u. S. Was on their shoulders. Im on the federal advisory council. I meet with the fed quarterly. I dont have inside information. I have the opportunity to meet with them on a regular basis. I would say theyre human, theyre smart. Theyre more practical than a lot of people give them credit for. They got into this reluctantly. Theyre honestly trying to get out. No inflation, so why not i figure they say. They feel strongly with their mandate. After all its a law. If i thought i could do something about that side of the mandate. I guess they take credit for 7 , close to that. Theyre taking credit for that. It will get to under 7 in the the future. Yes, theyll probably take credit. They shouldnt be responsible for it. Is it due to any marginal impact . Sure. On the Unemployment Rate . Of course there has. To think theres not one or two tenths of a percent would be illogical. H what i think will happen now is as they start to withdraw, theyll have a positive impact. In a weird way it will instill confidence in the business community. Now the fed feels confident to withdraw. That will instill confidence in the business community. Lets not forget theyre not withdrawing for a long period of time. Instead of going down the road at 85 miles per hour, theyre going down at 80, then 75 miles per hour, then 65 miles per hour. Its a long while before they reserve from the system and their Balance Sheet gets smaller. Its a long time. Two years away. When you say youre more confident, what will change . What have you been waiting to do that you havent done thus far . At the bank and more broadly. When ceos are trying to think about future investments, they really i know its overworked. This word of uncertainty is the important word. Theyre trying to judge the the variables going forward. How can the investment be a decent return . The more vague it is, the lack of confidence i have. The feds say were not quite confident yet. Therefore i shouldnt feel confident. When feds remove papering, that will instill confidence. This budget deal is a big deal to me. When i see ben say enough, im going to well, were going to be absolutely more aggressive in the marketplace. Thank you for coming up this morning. Sure. Hes here two hours. We have to go to commercial. Squawk box returns right after this. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. You can fill that box and pay one flat rate. I didnt know the coal thing was real. Its very real. David rivera. Rivera, david. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] fedex one rate. Your grass waters itself. Your dishes wash themselves. So why dont your floors. Clean themselves . The Irobot Braava floor mopping robot. Irobot. Do you . Cable channel operator Discovery Communications has its eye on script net work interactive. Scripps owns the food channel and discovery channel. Among other net works too. Discovery has approached scripps several years ago about the possible deal. They were not interested in selling at that point. Were going to check out the price of crude as well. Our million home series returns. Theres another twist this time around. All of these homes are located on main street in various town around the country. Well kick off you the next half hour of squawk box well be right back. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back to squawk box this morning. Mortgage applications rose by 1 this week. Applications for new home purchases and home refinancing increased despite the 10 basis point increase in the average Mortgage Rate now 4. 61 . Now one government report on todays agenda at 2 00 p. M. Eastern time. The treasury reports the november budget deficit. Looking for 142 billion for the month. Home depot holding the analyst and Investor Conference today telling investors it will be reaching the long term operating margin and return on invested capital targets by end of fiscal 2015, a year earlier than it originally planned. Also sticking to prior sells and earning forecast. What more could you the market want . Lets get to our trading brock and find out. We are joined with our guest host Dennis Gartman. Andrew came in and asked the question why arent the markets doing better . You think with the promise of the government not shutting down would boost numbers . I would not. As soon as i saw the agreement on what numbers were, i thought are you kidding me . Ten years of paying out . No. I dont think the stock market will take that well at all. Its not. Its ho humming it. Thats probably the right attitude. How much is because weve been anticipating this mini deal for weeks here . The market would have been surprised if nothing had come and out sold off dramatically. If there had been no agreement, things had gone into the dinger. The fact you came out with an agreement. They came to agreement and reached something that has to be passed by the house and senate. They were able to come up with a deal before we get to the deadline time. From crisis to crisis. When i read last night i thought isnt that nice . Whats the term . Bipartisan . Yeah. It was a bipartisan agreement. Thats the second official way to pronounce it. What do you think are driving this point . We see job creation pick up the last couple of months. That brought oil back to where it should be around 100. Right now thats where were at. Hard to see it much higher. Were waiting for the next big move in the economy to make prices jump once more. The next big move, what else do you need to see in numbers to think oil will go up . A third jump over the expectations, that would certainly push oil over 100. If we saw in libya or iran or egypt thats going to push over. Today we saw the report saying they expect the demand to be better than they thought a few months ago. Everybody is teaching. Demand is driving the focus not the excess supply that we discovered here in the United States. This is back to demand at this point . It is. Its not just United States demand. Its international demand. U. S. Is the exporter now. Any excess we have, were refining and sending out. Its about demand now. Lets make sure for the public they understand were not exporting crude. Were exporting products. Its a bizarre rule. We are exporting products. Were going to continue more and more. If the economy continues to improve like this, if thats the thing driving oil prices you think it would drive prices too. The stock market all things being equal, stock market has been moving up and likely to continue to do that. Not an aggressive pace, not the pace weve seen the past year. Probably two 2 to 3 over the last year. There was a call yesterday. I forget which house did it. You could see gains in the first part of the year because things have been cleared off the table. Lets hope. I have my doubts. Im lone stocks. I like to think theyll continue to go up. When you get 2 to 3 , does that include major correction . There will be 5 or 10 correction along the way. Probably not much more than that. I wouldnt be surprised its relatively light volume. Bears will be out in great crowds. Market moves to new highs. The other thing ive been watch as good heating oil. Theres been so much snow around the country. Thats a natural expected thing. What other things are you working in the markets . Heated oil is a substitute for diesel fuel. Thats an export sending diesel to europe and latin america dealing with the world cup this coming year and olympics in 2016. You have a lot going on for heated oil. Its going to keep prices high and maybe even higher next year. Thank you for joining us today. Well have more from dennis throughout the show. Thank you. Putting down my picks. Coming up, hold on a second. I get all choked up. Whats the can let her sing this. Probably not going to be her. House and Senate Negotiators unveiling the agreement to defund federal agencies in 2013. Well get reaction from ceo and former oklahoma governor frank kaeting. Id give to john mayor before i give to her. You would. You think hes sexy or something . John mayor . He used to go out with her. Oh. Thats why i give it to her. I thought you wanted to run in the high school screaming down the halls. You know who it might be . Miley. Its not going to be miley. Its going to be snowden. I think the pope. Its not john mayor, you or me. Dennis gartman maybe. Well get one of the associated editors and find out. It isnt any of us and is not taylor swift. Squawk box will be right back. Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. But with less energy, moodiness, and a low sex drive,y first. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron. The only underarm low t treatment that can restore t levels to normal in about 2 weeks in most men. 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It gets an impressive 34 highway mpg and comes with no charge scheduled maintenance. And right now you can drive one home for practically just your signature. Sign. Then drive. Get zero due at signing, zero down, zero deposit, and zero first months payment on any new 2014 volkswagen. Hurry, this offer ends january 2nd. Visit vwdealer. Com today welcome back to squawk box the Bipartisan Budget Commission striking a deal to avoid another Government Shutdown. Joining us to talk about that and more, president , ceo of the american banker association, former governor of oklahoma. Good morning to you. Help us here understand one thing. I came in this morning before the show thinking markets were off to the races today given we got a budget deal even though its a mini deal at least by the indications of futures. I was clearly wrong. Why . Andrew, i think everyone thinking whatever comes out of washington is probably a myth and theres no reality and substance to what is done here which is regrettable. I was on the bipartisan panel. In the year 2025, every of federal tax revenue will go. This is frightening. To have the two party, democrats and republicans who brought us here to this 17 trillion debt, to have them sit down, share each others phrase books if you will, and talk about going forward. At least for foreseeable near term, were not going to default on debt or shut down the government. Thats a positive the fact they have a process. Thats a positive. I think probably the big picture a lot of people think theyre playing games again. The fundamentals are not addressed. Were now day two post the vocal rule. As the head of the American Bankers Association have pushed back on that rule. Give us perspective. You read the rule and studied it the past 24 hours. Whats your verdict . The Community Banks and 90 of our members are a billion or less in assets. The Community Banks are facing 11,000 pages proposed and final dot frank rules. Now its 12,000 pages of proposed and final rules. For those Community Banks with 35 employee, can they continue to hedge agriculture for example and energy banks . I think so. Thats certainly good news. For the larger institution, can they market make . I think the answer is yes as well. Again, its a whole new very substantial regulatory regimen on the backs of the final institutions of the United States that have to have the bottom line to compete a broad and in the United States. Thats worrisome. Its worked through. We have two years. I think good things will happen hopefully. Obviously theres a lot of warning flags in the sky this morning. Can you say cat goegory wise youre going to try and block this . I dont know about that. Both parties work hit through and get both parties together to see if this can work. Its moses leading us to the promised land. Every option is on the line to make it work. Whats your take on this . Kelly king. Hope youre having a good morning. Dont you think this is actually overall a positive outcome . It certainly could have been a lot worse. As i understand it, while still have you new, banks can make a market for trading for clients, still hedge appropriately, not gamble but hedge portfolios appropriately. There are a lot of details to be worked out. It seems this is a workable solution. Ronald reagan i worked for trust but verify. Thats the attitude of a lot this morning. Hopefully certainly that the issues you talk about, hedging for the purpose of satisfying client needs, Market Making can be done. This is another large regimen. The question i ask is how come the regulators arent doing this as poed to having a new significant body of law . Now this is a Basketball Team five regulators putting together this. Each can interpret in its own way. Im cautiously optimistic now this is part of the law, the Banking Community will get around it and behind it and make it work. Well see. The folks making the biggest stink for the past several years are the big banks. You have sort of a tough job. You represent the big banks and smaller banks. How much bidding did you feel you had to do on behalf of big banks perhaps at the expense of bigger banks . Theres one Bank Industry in america. They can obviously compete a broad and make us rich. Its hugely important to the United States. Smaller, middle size banks obviously serve here. Theres a balancing act. What we want to do is make sure banks are healthy. Recklessness and outrageous behavior especially when you have insured deposits by the u. S. Government. That needs to be carefully watched. Im hoping this will work out. Well trust but verify. We have two years to see if it needs to be massaged. If there are changes to be made, hopefully they will be. Pope francis is Time Magazine person of the year. Weve been speculating. I was wrong. I thought Edward Snowden. What do you think about the changes . I think its a pretty good name. Francis is my formal name. I think hes wonderful. He really is a man of great humility, great humanity, great spirituality. For those of us, the World Community no matter what our faith were excited about him. I think hes saying and doing the right things. Obviously walking in christ. Some people said he attacked capitalism. Theres been a big debate in the past week. Do you have a take on that . In fairness to him, his message has been the christian and catholic message for years. Lets focus on success and taking care of the less fortunate. Lets dont think that material things are the only things out there that should be acquired. Right. It depends on how you take it, half empty or half full way. If you sat down with the pope, i guarantee he would say more people have been lifted out of poverty and lives have been improved in all ways in terms of living longer and living well when youre a live from capitalism. Catholic church is about the poor sense jesus founded it. I think we need to be fair about this. Some people want to draw the distinction theres faith and capitalism and theyre opposite of each other. Theres no distinction. You can argue capitalism is moral by far. Were creating jobs. That makes it better for poor. Maybe the pope needs a broader understanding of how that works together. Mark has come in. He used to have nuns who were part of the people who were being shareholders. They understood well. They said no money no mission. They get it. You need profits to come back through. We had a conversation about them last week. You went to a Catholic High School . Yes. I told you that 12 times. I went there the last year and a half. Did you lapse . No. I lapsed. Not back to catholic. Before that, yeah. Governor, thank you for joining us. Time magazine person of the year. Were looking forward to talking to you again. Im going to leave this to becky while you do this. Ill do this. Still to come, black rocks, chief Investment Officer going to join us with his outlook for 2014 what the markets are facing in the the coming weeks. Up next, the battle for main street supremacy. Our matchup of million homes is next. Only one move as head. Were back in just a moment. Becky explains her religious faith to joe. Were back in a moment. Around here you dont make excuses. You make commitments. And when you cant live up to them, you own up, and make it right. Some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where its needed most. But i know youll still find it when you know where to look. Is caused by people looking fore traffic parking. Y thats remarkable that so much energy is, is wasted. Streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then theres a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. The collaboration with citi was important for providing us the necessary financing; allow this small startup to go provide a service to municipalities. Citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. So the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge. Welcome back everybody. Cnbc popular home competition is back. Were showing you what a million bucks can buy you on main street. We sent investors to check out million homes. Two 1 million homes go head to head. One moves forward. In the first round we have the cozy cottage aginst the mammoth manor. Lets take a look. Living on main street. This gated 2. 5 acre proper 2. 5 features the million water views from the highest point of this countrys coastline from maine to mexico. This is a history buffs dream built around 1850, how has two centuries of stories. Sitting on 2. 3 acres facing main street. You get five outbuildings. Once home to a renowned writer, this offers four work fireplace, kitchen features Granite Counter tops and storage. Of the 7,000 square feet in this home, i wont lie the kitchen is your renovation. Its a chance to blend old with new using this original bread oven as your centerpiece. This cottage has three bed rooms and two baths. The downstairs bedroom has a sitting hear, bathroom. Up the cherry stair way, youll find two more spacious bedrooms. Upstairs 11 potential bedrooms perfect for a large family or b and b. This is where your stories start. Up in the attic they used to hide slaves traveling north on the underground railroad. Its about the magnificent water views. Take 74 steps to your own private platform to enjoy the sunset. This can be yours for 995,000. The real selling point is the grand level with 13 foot ceilings and stencils that match the stained glass should you get lost, ring for the servants. 965,000. Im left speechless. I think the better deal is the mammoth manor ultimately. Thats where the value is. The other place is what i would buy myself. I like the cottage. Why any of this is i have no idea. Joining us to reveal the winner, dolly. Thank you for having me. I wouldnt have guessed either. The cozy cottage is in alabama. Ive never heard of montrose, alabama. I did research. Its a beautiful place near the gulf of mexico, beautiful beaches. Almost a hamptons type of place. The problem with that property it has a fatal flaw. Even though its almost three acre property, the house a buts the house next door. You can look right in. Everyone coming to this house is saying im tearing it down. Then the value suddenly its land value versus house value play. It would have been great. Diane n dianes property in camden is an amazing house. Has potential uses as a bed and breakfast, wonderful compound. I see a chinese buyer in the future. The alabama thing killed it for you. That killed it for you didnt it . Youre back to the mansion. Who we giving it to . Were definitely giving to your winner which is the mamm h mammoth. This is the value plan. The price is right. This is all about money right . There you have it. The million mammoth manor wins round one. Let us know if you agree. Tweet using milliondollarhome. Later shes crowning the top main street home during closing bell. The next round is mammoth manor and a new contender. Weve got russ joining us at top of the hour. Time person of the year revealed, the pope. Find out what went into this years pick. Squawk box comes back right after this. Every day were working to be an Even Better Company and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. You can fill that box and pay one flat rate. How naughty was he . Oh boy. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Its lots of things. All waking up. Connecting to the global phenomenon we call the internet of everything. Its going to be amazing. And exciting. And maybe, most remarkably, not that far away. Were going to wake the world up. And watch, with eyes wide, as it gets to work. Cisco. Tomorrow starts here. I wanna spread a little love this year i wanna spread a little love and cheer [ male announcer ] this december, remember provocative design and exacting precision come together in one powerful package at the lexus december to remember sales event, with some of the best offers of the year on our most thrilling models. This is the pursuit of perfection. An end to crisis mode in d. C. This agreement makes sure we dont have the Government Shutdown scenario in january. Because of this deal the budget process can lurching from crisis to crisis. Tom cole joins us to discuss the mini grand bargain. Are you ready for a santa claus rally . A brighter jobs picture and clearer picture of when the feds could taper, black hawk ceo tells us where to put money to work now. Times person of the year revealed. We get an inside look at the manage editor as the third hour of squawk box begins right now. Welcome back to squawk box here on cnbc. This is like that movie with kevin kline. My Little Finger is moving. I dont dance, but i really want to. Im joe kernen along with becky quick, andrew and taylor swift and Dennis Gartman. Shes not here. Shes here in spirit. Dennis is moving. And kelly king. Nobody gets down like a banker. Ceo of bbt corporate. When the music is playing, youve got to keep going. Futueutures this hour are indicated up. This guy was a horrible boyfriend it wasnt john mayor. She bought a house near the kennedys, remember . To date one of them. She was 19. She was not person of the year neither was miley cyrus. Lets look at stocks to watch this morning as miley plays us you out for a little bit here. Warehouse retailer costco missed estimates 96 cents per share. Groupon upgraded to outperform market perform. Wells says groupon is grabbing the local market. Joy global 1 below estimates. The Mining Equipment gave a below analyst forecast as the Company Struggles to cust cost and deals with oversupply of commodities. Watching that stock off 5 . Well sigh where that starts the day. The bipartisan. Now they put a dash in it now so i can get it right. Led by paul ryan and patty murr murray. Joining us republican from oklahoma. Congressman, when we had hoyer on yesterday, im not sure maybe we shouldnt have taken him so seriously. He thought there might be opposition on both sides. People on his side of the party and more conservative members of congress were assuming this is a done deal. Theres opposition on both sides of the political spectrum. Theres a lot to be happy with. The secures of sequester cuts, redistribution of that money. All those are good things. They came at costs. Both sides have things to be disappointed about. Safe vote in politics is always no vote. Youll see people take that posture. Other people frankly just want something bigger. I think in this environment that probably wasnt obtainable. I understand their disappointment. I used to say about the guy hitting his head against the wall, it fits circumstances because it feels so good when you stop trying. It does. Its so much better. I was shocked. Thats the kind of position weve all been put in now after the last couple of years or so. I almost rejoice at this that at least we wont have to at least it will be running. We can focus on arguing about other things rather than keeping the government up and running and debt ceiling. Weve learned that weve got to accept what we can take with what it will give us right . I think so. The alternative to this is another Government Shutdown january are 15th. We all know thats just not ever going to result in something good for the country or something politically good frankly for folks that provoke it. I applaud paul ryan and patty murray getting something modest, achievable and obtainable and generally bipartisan. Maybe we can get to the big drivers of our debt which at the end of the day are medicare, Social Security and medicaid. And obama care now. Exactly. If we can repeal it, do it in a heartbeat. Lets say we dont and it becomes entitlement that its probably going to be. I saw someone with the deductibles are going to be on the low remembpremium plans. A lot of 5,000, 6,000 and 12,000 a year deductibles are subsidized. I dont know how we ever addressed long term entitleme s entitlements. Were split as a country. People that want them get them. Theres ways to do it. You have to come together. We addressed associate in 1983. Theres time to do it again. Politically its not that easy. Its easy in terms of math. Its something literally people of good will with risks sit down and figure out what needs to be done. Medicare and medicaid much tougher. Dont you think the big news is we made a step forward. We have gone so far from trust and communication working together. I am frankly excited about this. Not because the particulars of the deal are not much. Its a huge deal that people are coming together beginning to think about working together. We have to learn to compromise. I see this as a baby step towards a giant step down the road in terms of dealing with the tough issues. How do you feel . I feel very much the same way. Look, any time youve been moving in the wrong direction and i think we have for a long time when you finally stop and turn around and take a step back, youd like to go furtherer and recover loss ground. Couldnt happen without paul ryan, patty murray and people willing to accept less than they would like. Understand theres a limit. If youre a republican, we dont control the senate. If youre a democrat, youre not going to get something through the house we disagree with. That narrows the scope of whats possible. I think ryan and murray understood that and operated accordingly and produced something. The rest of us would follow their example i think we could make more steps in the right direction. Congressman, were going to take your word on this. Were going to consider it passed in law. Hopefully well have it chl. We appreciate your time this morning. You live there too right . That was my senator. He was my u. S. Attorney. Then he came back to congress. How many schools did you go to . I went to Public School until my last year and a half. Lived in oklahoma . Yep. Broken arrow. Indiana. Colorado, california, new jersey. I never lived in california. That was you. Youre mixing mine with yours. Its hard. Things start molding together. Those are the five places ive lived. Thats it. When we come back, Time Magazine revealing the person of the year. The magazine managing editor will join us to talk about the choice, pope francis. And the deal lifting the burden off the markets. Where should you put your money to work . We have the Investment Officer to give us his thoughts. Well be right back. [ 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. Relatives, heads of states and members of the public paying respects to nelson mandela, a casket carrying mandelas body arrived with the military honor guard at the Union Buildings in pretoria, placed in the theater where the antiapartheid was sworn in as south africas first black president. He could have served until now if he wanted. He didnt want to. Pretty amazing story all in all. Mandelas body will lie in state three days before a burial on sunday. Okay now we are about to talk about the pope. Time magazine unveiling the person of the year this morning. It was the pope. Joining us now to talk from new york, nancy gibbs,s the Time Magazine editor. Good morning. Good morning. I thought it was Edward Snowden. How did you get there . It was a close call between the two. People are fascinated by the conversations the very different men have brought center stage n. Snow dens case its the ongoing argument between privacy and security and how much the government should know were doing at all times. In the case of the pope, its a fundment question about inequality, mercy what we owe to the least among us as he would put us. We felt that conversation is so crucial in so many part of the world that pope francis ended up being our pick. We listed the final five. Was it true the final two were Edward Snowden and the pope . Yes, thats correct. Ted cruz was number five as a symbol of our divided politics now. And the president said the leader had to go but hes still there. Thats staying power. The president last years example of divide politics nancy . Certainly is. Interestingly all figures to some extent are in different ways representative of both division and disruption. Im struck of five, four of them most had never heard of a year ago. That tells you how quick power can be turned on and off now. Could we all have given it to we could have all twerked. You didnt think of miley did you . I think maybe you did. We did because she among other things came in third among millions of people polled in our online poll. She speaks to the fact yes, i do not see her person of the year. She speaks to the fact power is not always political or economic. It can be cultural. How contentious is it in the room when you are trying to figure out the final decision . Its an interesting conversation who moved the needle, who is changing our events and lives. Do you have the final verdict . Is it a vote . What happens . Ultimately its my decision but an awful lot of input goes in it. When you say Edward Snowden was number two. If you had voted in the room, would the pope been number one . We interviewed Edward Snowden by e mail and got to hear why e did what he did. Theres no question snowden is an important figure. The difference between one man that sits on the thrown of st. Peters running the oldest constitution, its fascinating thats where we end up this year. Its Interesting Times person of the year is not necessarily somebody youre endorsing or thats a force for good or force for change. When i saw the list of five finalists, i was hoping it was not going to be assad or snowden. There have been years. There was times there was no way not to name hitler. Theres years the bad guy is sometimes the obvious choice. Sometimes the person we name, people think is a good or bad guy. Did you name bin laden that year . We did not. We argued about whether we could. If it just comes to how torn people are and im not endorsing snowden. The reason it was interesting to me was given the conversation created here in the u. S. And globally the pope a year from here will be in that job a while. I made a speech in new orleans not long ago. They had a poll. How much people in the room think snowden is a hero . 98 of the people in the room said he was. Me and krauthammer said youve got to be kidding me . This magazine typically sells. Does it matter whos on the cover to sell . Will the pope sell a lot more issue that happens snowden . I think so. Snowden has a passionate following of people that think hes a hero and people also think hes a trader. I think the pope has captured peoples imagination in ways that are surprising that we have not seen as a newcomer like he is. We talked to you about the popes comments last week relating to capitalism, given were a business net work. Perhaps a disconnect or a relationship or no relationship between his views and this became a debate. Rush limbaugh came out talking about this as well. One thing hes been careful about is hes not saying anything about the duty to the poor. This is coming directly from the gospel. People uncomfortable with his message towards the duty of the poor, theres an awful lot of history behind weather. Are you catholic . That sounded like someone that thats exactly what i was thinking. Ive been hearing that. I went to mass everyday in first grade. It was latin. They werent facing me when they were doing all the were you prevatican too . Any time people use the word inequality. People believe in capitalism and believe you cant start thinking like that. Thats become what this is about. Its where we are todare tods of raising the quality of life. Inequality is less than what was. People are living greater lives than ever before. To think now inequality is at a greater point than the last 300 years is stupid. Capitalists believe in equal opportunity. The poor have always been look its definitely gotten better around the world. Look at china. Look at lives raised. As the tide has lifted it hasnt ultimately. It hasnt but shall. Look at mandelas life. Weve been talking a lot about him. He became a capitalist but at the same time, arguably between the time he became president and now, while definitely listed all votes theres greater inequality in south africa today than back then. Of course there is. At the same time hes created 10,000 jobs in south africa. Lets give him credit for that. Theres greater inequality but everybodys boat has been lifted. You can do numbers about the average per capita gdp. For 10,000 years it was at like 100 a year in this country it a grew to 50,000. In china it was like nancy we lost you. The other issue he raises is one of transparency. Hes the first pope to release financial records from the vatican. U. S. Treasury Officials Say vatican bank has been corrupted. Part is about his message, mercy and gospels. Some is Practical Institution reform around vatican finances. A lot of catholics look at what we think about the last 50 years. There are big mess ups. There were. That needs to be addressed. It was inexcusable it happened. They need to bring a lot of people back. I think hes trying to do that. Nancy, thank you. Congratulations on the issue. Well look for it. Its openness of the church. Catholics like the pope better than they like the Catholic Church at this point. That tells you something. I thought the point she made, five names were unknown to almost everybody a year ago. That was fascinating. That is true. When we come back,ingi earl morning and why she says desk tops are not dead. Well be back on squawk box some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where its needed most. But i know youll still find it when you know where to look. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. But with less energy, moodiness, and a low sex drive,y first. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron. The only underarm low t treatment that can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or Breast Cancer. Women especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. Ask your doctor about axiron. Welcome back to squawk box this morning. Meg whitman speaking exclusive willy at the conference in barcelona. Whitman says the company is moving around the strategy. Were make a lot of progress as we go forward. We are as you said two years into a five year turn around. Obviously we have to accelerate Revenue Growth and continue to innovate. You can see at discover the invasion engine is now a live and well at hp. Were making real progress. Turn around is on track. A lot of heavy lifting ahead. Company shares up nearly 90 this year. Put in place by whitman when she took over two years ago. Coming up, more on the budget deal reached in washington. From the board room to classroom. The president of High Point University and chairman of the Great Harvest Bread company will join us in a little bit. Tradition returns to downtown providence, rhode island. The details after this. Getting down on hump day. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Welcome back to squawk box everybody. Lets look at stocks well be watching in todays trading. Home depot says it will reach targets a year earlier than they planned. Its now raised targets for 2015. Home depot gives more details at the Investment Conference later today. Gun maker smith and wes son reported 28 cents a share. It saw increased revenue and higher Profit Margins compared to a year earlier. Medical lab operator cut 2013 guidance giving outlook for next year falling below what the street was expecting. Down over 7 1 2 . Slower demand as well as the Uncertain Health care environment. That could have been obviously to anybody. Will a fed taper derail the market . Lets hear from one of our own, the global chief investment strategist. Great to have you this morning. Were trying to wrap up 2013 and look ahead to 2014. Youre in charge of trying to fig youre out why people should be outing their money. Is the stock marketplace to go for 2014 or would you look at other areas . I think it is the stock market. Obviously not the only place. There are other areas were emphasizes. When you look at equitieequitiet year in 2014. Stocks are no long eer cheap. They look to offer returns over the long term. People had a great run in the u. S. U. S. Stocks can go higher. For 2014 this is probably a good time to take advantage of better evaluations outside the United States where people are still underweight. Where many are still underweight, if somebody invested largely in the u. S. In the stock market here, would you tell them to sell those and put them in overseas stock market or tell them to allocate new money . Little bit of both. We get the view some are overweight in the u. S. Look at europe, emerging markets. The reality is the u. S. Market still looks reasonably price. There are still opportunities. On a relative evaluation basis, if i look at u. S. , its tradie 40 premium. There are bigger bargains out of the u. S. If you were talking about the fed potentially tapering. More likely First Quarter of next year. If the fed taper, the u. S. Market might be okay at this point. It might be baked in. If you look at emerging markets, im not sure thats the case. Thats fair. Your point is definitely longer term one. We saw you the taper in the spring. Its likely to have similar effect. There are a couple of things to think about. All emerging markets are not equal. Many in northern in asia, long term reserves. Thinking about europe, one of the advantages is that a tape as good a tapering is likely to lead to monetary conditions. Weakening euro will help. I was surprised mcdonald, only place they underperformed is europe. Is that tells me people in europe really need a bargain . Thats a fair question. It suggests europe is recovering. Its going to be an inspiring recovery. Not going back to fast growth soon. Europe is Getting Better. Were seeing improvements even in places like spain. Deficit to current account. Surplus, seeing some improvement there. We think 2014 will be better. This is kelly king. It seems to me one of the questions investors raise weve had a good market this year f. Does that necessarily mean its going to drop way off. It seems to me with renewals, we could catch up. That doesnt conclude the solid in 2014. What do you think about that . I dont think there is any major impetment other than potentially more dramatic rate in markets expecting to prevent the u. S. From posting gains in 2014. What im trying to emphasize is not that theres not an absolute opportunity in the u. S. But the relative opportunities may be better outside the u. S. The advantage in the u. S. Is that while evaluations are probably a bit stretched, the fundamentals are going to look better next year. We expect growth to expand and rates to stay low. Its not a great environment for gold though. Its not a great environment for gold. Gold has two head winds. First of which we think inflation remains low. In europe and japan flirting with disinflation. In an environment when inflation is low, people are less interested in hedges like gold or tips. The second is that the backup in rates so far has been on the real rate side. We expect that to continue in 2014. Rising real rates are a head wind for gold. Theres an opportunity cost to holding the asset to produce no income. What about the bond market, russ . Bonds i think were going to still see modest back up in rates in 2014. Not a melt up in rates. You know as well as i, the truth issue there are few bargains in the bond market now. Weve had years of purchases. What youre looking at is relative value on the credit side. Investors need to adopt more flexible mandates that have the ability to raise and lower duration as conditions change. This is a different world. For 30 years falling rates were a tail wind. Were not going to enjoy that over the next few years. A simple question that gets asked all the time. Where is the ten year as far as yield is concerned. Our best guess is 50 basis points higher than today. We expect yields to back up as the fed begins to taper. Some things keep yield down. The short end of the curve is anchored a long period of time. Finally demographics play a role. All else equal in the environment where the population is aging. That suggests real Interest Rates are a bit lower than they were in the previous decades. Its great talking to you. Appreciate your time. Thanks again. Happy holidays. We do too. We know in guy in rhode island. Famous dancing cop is back on the job for the holiday season. Officer tony la pore, a holiday tradition 30 years in downtown providence. He started doing these dance moves when he was still on the force directing traffic back in 1984. People like it. It is a mugmusing to drivers. He retired, 66 years old now. He returns to the intersection just for the holiday to direct traffic. It says here its a leg shimmy and spin. When you do the headlines over there in the morning with your jacket on, what would it take for you to do headlines while doing this . Ill pay for that. Ill jump in. Come on. You could do it. Well have a discussion about that. Thanks to the robot. Sprinkler, the shopping cart. We could do it together. How much would the viewers pay for that not to happen. If we decide to do this, one of us needs to twerk. You stand there. I would not pay for. That. I cannot do that. How does she get out of this . Shes nice. It would be better for viewers if it was you. Maybe not. I dont think anybody needs to see that. Any way. Were going inside the board room and talk leadership with the president of High Point University and much more from Dennis Gartman and kelly king. Which of you would twerk and which wouldnt . Im off. Squawk box will be right back. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. They always 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. Where does the United States get most of its energy . Is it africa . The middle east . Canada . Or the u. S. . The answer is. The u. S. Most of Americas Energy comes from right here at home. Take the energy quiz. Energy lives here. Welcome back to squawk box this morning. 24 hours after the budget deal is sort of reached, dow opens up higher. S p 500 a point and say half and nasdaq two points. Its Getting Better from where we started the day. Let us get more reaction to the budget deal. President of High Point University joins us now. Hes also the chairman of the Great Harvest Bread company he started with just 50 in his pocket. Serves on the board of well known Companies Like bbt and lazy boy corporation. Love a lady boy and dots. Id like a lazy boy with a bunch of dots in the armchair. Good morning to you. I was thinking again that we called it a mini deal. Its called a mini grand bargain. This is a deal. I think we need to at this point count our blessings and get it done. And then try to do something with immigration instead of just trying to keep the government rung. Listen, the American Dream is a live and well. Weve got to work together, collaborate together. Most importantly weve got to get certainly back into the economy so small and Large Business knows which direction theyre going. Weve got to follow the vision and strategy. Im all for good things when they come in small packages. The people that dont think the American Dream is a live i understand. I site some of the things. It used to be somebody would get out of college, they could look forward to a Company Hiring them. They could look forward to a long career trying to raise a family, climb the ladder, benefit, retirement. For some reason were questioning whether that is still a waiting College Grads if they can pay back loans. There are people that argue that the American Dream is a live. An argument is a good thing. That makes america so great. Let me put this to you my friend, joe. I believe in those that work hard and smart enough. For college graduates, they must receive a ho listic education. You can download more information by noontime than you can use in a lifetime. The gathering process is grounded on wisdom and education at its best. That means preparing yourself not for the world as know it today but the world as its going to be. I call it paint by numbers American Dream. Go to college, check the box. Get a job, check the box. Get a house in the suburbs, check the box. It all sort of works out. That is not a live the way it used to be. It is a live. Its very much a live for those people that chart the right courses. Listen, i seeteach 700 freshman a time in two sections. I tell them, if i can make it, you can make it heres the deal. When you go through college, have the learning. If you dont get internship and dont prepare yourself in the magical way and say i know what the world expects and bring something of value right, youre going to try. You can find millions of exactly what you described, millions in oklahoma, indiana its much harder than it used to be. He mentioned internships. I am in this job because i started internship at 18 years old. Its hard to get them these days. Thats the new york central views of things. Good morning. This is kelly. Youre a respectful international speaker. You went to be president of the you High Point University. A sleepy struggling Small College and now one of the most exciting universities in the country. Tell them how you did that. We believed you must provide value. The trouble is you cant just give value. Youve got to interpret value. We asked ourselves a simple question. What do young people need when they go to college . What do parents expect when they send children to college . They want to grow in maturity, start a business, believe in something and make this world a better place. We ask the next question, how do you create the College Environment with learning, value based living that says if you do these things on your own way with your own personality, you can prepare yourself to be in the situation people want you on their team. Yes the economy is more demanding than ever. In the last seven or eight years, High Point University has tripled the size and self funded 86 of that. How can we do that . Are we special or some how have a magic pill . I dont think so. At the end of the day its what you believe and have the outcomes of what you expect. Thats what we do and tell students on our campus. It may be more difficult and competitive, but it doesnt mean its not positive. How important is vision at the individual and corporate level . I know you had a broad vision for the university. How important is it for individuals and leaders to have a clear vision of the future . Well, clarity of vision is where all things started. You cant have a solid strategy about life if you dont have the vision. The vision has to be win win vision. What i can do to my life but bring to my environment and find myself. Our people at high point when they graduate they tend to get jobs. 86 of them find a job within months or go to graduate school and pursue the careers they want. Its important to have hero, models and mentors that can help them grow and coach them in directions that say the word impossible doesnt exist. Add a poafter the letter i. I think its a shining city on the hill the next morning. Thanks. I think its new york andrew. I do. I think its manhattan. Its the income in equality and what you see everyday. Youve got the social xrays and the rich people. The rest of the country is its different there. You need to get out. Coming up, the mini grand bargain in washington. Is it really good news for the economy and market . Jim cramer gives us his take on the budget deal. [ 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. I wanna spread a little love this year i wanna spread a little love and cheer [ male announcer ] this december, remember you can unwrap craftsmanship, inspiring capability, and some of the best offers of the year on our most versatile luxury utility vehicles at the lexus december to remember sales event. This is the pursuit of perfection. [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutionizing power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Two years without arguments. You like this . I think sometimes we see things done out of washington and then they unravel. Im skeptical. If i were senator cruz, i would fight things tooth and nail. If i was a member of the house, i would think this was an abomination. How could they let this happen . Its the opposite of what they like. Steny yesterday said people on his side of the aisle didnt like it either. Oconnell is up for election. How can boehner get it through . I have come to believe when you hear theres a deal, a grand bargain, anything good in washington, thats the beginning of what turns out to be a very rancorous process and you wish you had never listened to the original story. You can siphon off enough of the middle of both parties to get it done. When we had the problems earlier, they werent even going to bring it up to a vote where the democrats could go along with the 40, 50 80 republicans. I think theres enough this time if you get enough maybe but it doesnt cover the unemployment agreement. I just think this is an Election Year and i think its great that congressman ryan advanced this but i still just feel like something must be up with this. If we really had washington off the front pages as these stories would indicate to you, the future would be through the roof. What if they do sign and it doesnt go up . Then you would think it was already in the markets, right . I guess so, or this has really just changed the sequester. I dont know. I just find that the idea that everything is fine here makes me makes me feel like a lot of the other times that ive been lulled into thinking washingtons done. Its not been the way of washington. Who did you were you happy with did you have your own time person of the year . I guess charlie sheehan, its never going to happen for him. No. Look, i think this popes a great man. Candidly, i just dont think that time impact is like it used to. I just dont. For us it should be volcker, i guess, as man of the year. All right. Or bernanke. Thanks, jim. And for real power, person of the year, janet yellen maybe. She could get it next year. I wouldnt be surprised if shes in the top five list next year. Coming up, the stock of the day. Plus what you need to be watching when the market opens on wall street. Dennis will give us his trade of the day. Every day were working to be an Even Better Company and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Hi honey, did you get the toaster cozy . Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Stock of the day, mastercard, it did raise dividends and nous aannounce a billion stock buyback program. Lets go to our guest host. Trade of the day . Sell yen, buy gold, sell yen buy the nikkei if were recovering, why not short the euro . Because the euros been going up. 138 . Should go to par. Should go to under par. I think it egregiously overpriced but you cant sell it yet because it going up. What would change your mind about japan . Nothing. Im sorry, its doomed. It has no choice but to continue to expand reserves far more aggressively than we would ever think of doing and theyre already doing it. Kelly, looking at the state of the banks at this point, do you think it fair to say we are past all of these recession situations, we gotten through it or do you think there are things that are going to come back. I think its time to declare the crisis is over. There are a few rules to be developed yet, some explanations to be put out but its substantially done. I think its time to move on. The times at life corporately and in life to pivot, this is a time to pivot. Theres so much positive going on today, i think we need to get back to the basics and folks on the facts that in this country we still have freedom, we have equal opportunity. If we get back to a good fundamental faith and god im sorry . Never mind. People think you ought to join the fed. Im happy being a banker. Thank you, guys. Great show. Join us tomorrow. Squawk on the street begins right now. Good wednesday morning, welcome to squawk on the street. Im call quintanilla with jim cramer and david faber at the new york stock exchange. Costco earnings, home depot investors day, a hilton ipo pricing tonight. 10year yield is just a touch about 2. 8 and europe is mostly positive. We did have germanys cpi mostly in