Transcripts For CNBC Squawk Box 20141121

Ecb president. He suggests the eurozone economy is likely to remain stagnant and the central bank stands ready to act. T speaking of Central Banks, here at home, the fed is launching a review of how it oversees the major banks. The review comes after a series of critical reports. The fed is asking its Inspector General to help with the probe. Andrew. Weve got stocks to watch this morning. A lot of stuff moving. Gamestop earnings and revenue falling well short of estimates. The company blaming the late relief to be assassins creed unity game and slowing Video Game Software sales. Joseph kernens family always usually havent been big on that. But i read through the Analyst Report trying to figure out what happened. And there was worry that it was in digital, but its older software. Also, believe it or not, the west coast port situation is part of the forecast. The kernen family has no, no. Its strange that the west coast Court Situation would affect things. And they also use games. Also, resorts, now saying it is not aware of any investigation into Money Laundering. A wall street journal reported the casino operator is being probed by federal authorities for possible violation of laws. Let me make two notes on this. One is in their statements, they do acknowledge or at least seem to sort of highlight this idea that they might have been asked for documents by the government, but they say that that doesnt indicate that the government is necessarily telling them there is anything wrong going on. What . The other thing is, steve chu sued jim chenos for comments that he made out avenue berkeley. He was quick to sue chanos for even saying that. Maybe that tipped off regulators . I dont know. Thats what were talking about. Were not talking about Money Laundering in vegas . Theres the macau stuff and then theres this stuff. Thoold be like cass blaablan me. Wouldnt you say i assume a certain percentage was not declared money . I dont know. Im naive, but isnt there a lot of money that is in the i think there is. Right, that there is in this other economy. But if you did it systemically, snet of i dont know. We dont know. Theyve denied it so we should not cast aspersions until we know more about the case. Even if there is a case. Also, valean is cutting its stake in allergan to nearly 10 coming days after it beat its cost for the company. I think december 15th they have to get that money. Sothebyss ceo is stepping down. Its been about a year since activist investors including dan loeb began naming investor at the auction house. John tagg, the activist investor had been pushing towards a different county. But tagg had the backing of carl icahn. And autodesk switched to a cloudbased subscription model. And gap falls short of expected earnings. Banana republic may do well at any point, navy may do well, gap may do well, but they never seem to do well at the same time. Have you been to gap in a while . Im going to go to the mall today because every bone in my body hurts from running. My head hurt, my right heel hurts. I have to run today because im just so let me show you, this much stretch. Thanksgiving is coming. Christmas is coming. We just had halloween. Lets check on the markets this morning. I was kidding about as the sun comes up every central bank sort of eases and stuff. With draghi today, hes not a drag on the markets. Hes helping. And now Caruso Cabrera is here to tell us about china. It doesnt matter what our economies do, look what the dow does. Santa claus rally, up 116 after yesterday, that 80point weakness did not pan out. Up 117 today. That is well into new high territory. And Jeremy Siegel is getting closer and closer to that 18,000, right . I think weve had our 27th and our 44th highs for the year for the s p and for the dow. I remember you said 26 the other day. So it sounds like you just are like a genius of something. Month, no, i actually you remember 26 and 43. Anyway, well take that on a friday. Were hoping for santa claus to arrive at some point. Oil, once in a while with it goes up, that is bullish. China, all of a sudden, its 77 bucks. 1. 24. Okay. Thats good. Keep going. Keep going. 119 coming up. Gold, which is back below 1200, but up a little bit today. China cutting rates and the ecb president mario draghi says the central bank is ready to react in europe. Lets start with china. The other significant i think its significant thing out of china is the central bank is now going to allow banks to raise how much they charge, pay for deposits from 1. 2 times from 1. 1 times the rate, the deposit rate, to 1. 2 times. Okay. So its notice a huge move. But one of the things economists say the central bank absolutely needs to do is liberalize that set by banks. Its believed their set too low, you push people into investing in many other things that perhaps are questionable and leads to a lot of distortions in the economy. Havent we done the same thing here . Right, right, exactly. Lets move on to mario draghi who made a speech this morning in frankfurt. Thats whats pushing the euro lower. And lets play the sound bite youre going to its going to sound like youve heard it before. We continue to meet our responsibility. We will do what we must with Inflation Expectations. As fast as possible as our price stability mandate require us. Were going to do what we must to raise Inflation Expectations. He he then goes on to say if what theyre doing now doesnt work, theyll increase the size of what they buy, the pace at which they buy and the composition which is a hint. He said it explicitly last week, that they would be willing to buy government bonds if necessary, but once again, thats pushed the italian yield on the tenyear down to a record low. As you saw the euro moving lower, as well. And that is helping the stock markets across europe. Does he have the authored to do all this . Thats is same conversation we can have over and over again. He can say yeah, we bought bonds before. When they bought those bonds, they didnt allow the Balance Sheet to expand, which is by definition quantitative easing and that is what and remember, during the last two times that they did those things, the germans protested those moves and they werent nearly as big or significant as what is being compensated at this point. So we dont know. And the other thing, the European Central bank would say if on our current trajectory, our policy is not affecting, it hasnt been. This should have been done a long, long time ago. What hes talking about what hes going to do should have been done a long time ago. You see those market moves . 1. 75 . Pretty significant moves in the market. He signaled continuously about them doing what it takes, essentially, to try to move the inflation needle. Joe, this story is for you. Nigel felagess Independence Party in the uk picked up a second seat in the parliament. The euro skeptics are gaining seats everywhere. Yep. Why wouldnt they . Does it seem like this is working that well . Every couple of years, it seems like theres more trouble. How do you get 28 speed economies, they all have the same Interest Rates, they dont all have the same currencies. Right. And the uk uses the pound. Believe me, i know now. I wasnt going to mention it. There are 12 different currency nets eu and in the eurozone theyre all easier. But why some places would have adopted the euro is beyond me. Even though trading partners at some places are mostly in sterling or in dollars. Yet they somehow got hoodwinked into adopting the euro. Sometimes its political. And you end up with the same Interest Rates as germany, so you have this huge property move and the unelected technocrats tell you to accept the bailout. Mario monti tells the story about meeting with Margaret Thatcher and she says to him, tell me, mr. Monte, why are you fascinated with the euro . He says if we dont have the euro, our politicians arent going to do a, b, c, d and e. We need something to force them to do the right thing. And Margaret Thatcher says, oh, i understand. Now i understand why the people dont need the euro. They have me. Telling you a thousand miles away that you need to you know, look at what happened with greece. Those Interest Rates that greece had. How did that work out when you allow a country not is in the greatest the Balance Sheet knot the same as germany and theyre borrowing and regulations. Youve got all these different its like herding cats. Supporters of the Currency Union would say greece on its own would be it would be they would do nothing but rely on devaluing the he was a comedian, right . In italy. I think last week he said its just a matter of time. Were getting the hell out of here for italy. Is that possible . Oh, if David Cameron wins again, thats whats promised. Theyre going to vote on whether theyre going to be a member of the european union. Although they dont have to go to the euro, right . Lets see what happens with this china Interest Rate having a ripple affect across markets today. Especially in the commodity markets, if they are making moves and theyre signaling making moves to improve the economy. When they were talking about it in the 90s and doing it, a euro skeptic. And then i always thought it was how is this going to work . So i dont know. I shouldnt be cnbc has no opinion on being a euro skeptic. This is just me talking. Do you feel like you might we have no, no, we have operations. We have cnbc europe and everything. Im not speaking for the firm. I always assume youre speaking for yourself. The stage where the durability of the euro is still very much on the table. Right. Not for the last two years. Did you read what nigel frost says . He doesnt pull in it any punches. It could be greece again. Marine lepenn, she said the first thing shes going to do, shes going to go back to the franc. That stupid symbol, too, and that ugly thing in frankfurt. That stars were missing for it. We used to talk about how its an allegory for the euro itself. Yet its still hanging in at 1. 24 this morning. You know what . A lot of what i just said was sort of just so Everybody Knows with sarcasm in europe, its not well understood at times. Im just making a point. I didnt understand it. All right. Because ive got to go really slow. With me, you have to go slow. Sometimes i dont. And then anyway. And then you look befuddled to me. The other big story this morning, president obama announcing hiS Immigration plan and the gop is not happy about it. I dont know you know what . I dont have strong feelings. I dont know what is right here. Normally i know exactly how i feel about things. No, michelle and i were talking about this. In europe im surprised. I thought you would have had a very strong view. I actually theres a right wing nut where are you . I would have open borders. As long as you can prove who you are and you can come into the country. If you believe in you believe in the Free Movement of labor, capital and goods, capital and goods, weve got that down. Nobody seems to differ. Labor, everybody goes bananas. And if you go back far enough, you know, there wouldnt be a whole lot of people here. Theres the tactical argument, theres the political argument. Its not an argument. 800 years, it was all true. There would be no quotas of anything. I dont know where i come out. I have valley. If you want to let everyone in, immediately levy a wealth tax and give everyone obamacare. People were 30 billion whose swiss names begin with w. Because they focus so much on just the ages, the high tech users, and i tell should be for every strata of i agree with you. With max a degree needed. And we need uneducated workers, we need educated workers. This is what makes republicans sound very cruel is it helps bring down labor costs, right . And thats a very helpful thing if you want to start a business thats based on services, etcetera. And the job creator, right . Because you build the restaurant, you hire the distributor, you sell the food. Lets bring in john harwood and he can explain it. Is it you look at the opposition, john. Is it visceral . Is it its not monolithic across the gop. Is it . Its not. Jeb bush. Where is it primarily and what how do you explain it . And this is what now i can actually sort of feel like were we can talk reasonably together on this. Joe, before i do that, i do want to clarify one thing that from the intro to this topic earlier in the show. This is not giving legal status to everybody who has been here for five years. This is people who have been here for five years who have a child who is a citizen or a greencard holder, okay . So its a much Smaller Group than everybody who has been here five years. There are two basic actions in what obama did. One is extending the right to apply for that legal status, which gives you a work permit if you are a parent of a kid who is a citizen or a greencard holder. Thats about 4 Million People out of the 11 million who are now here undocumented. And then 270,000 were is the expansion of the dream program, the program which removed age restrictions on people who came here as children. So i just wanted to make that clarification. In terms of the spread of the Republican Opposition, you know, a lot of this, there is substantive opposition from people who dont like the idea of amnesty and as a principal, as a criminal justice principal. And theres also a lot of anger over the idea that the president is acting on his own. And those who things are driving the republican reaction. Its not monolithic, as you said. Jeb bush put out a statement saying republicans now have to demonstrate that theyre the party that can tackle this challenge. But there hasnt been much sign, in the house, at least, that theyre willing to do this. But i want to play this thought from the president which takes this debate and puts it sort of in a nutshell, given the criticism and the pushback from the white house. Here is the president last night. The actions im taking are not only lawful, theyre the kinds of actions taken by every single republican president and every single democratic president for the past half century. And though those members of congress who question my authority to make our immigration system work better or the question of me acting where congress has failed, i have one answer. Pass a bill. So hes framing it as a direct challenge to a congress that has not been able to get this through. Thats not going to calm down the Republican Opposition and the question now is whether Republican Leaders can manage the anger of a lot of their base that think the president is out of control and try to figure out how to channel that into political victories, either doing something on immigration or finding some way to advance their agenda otherwise. I did ive seen it parsed so many ways. I saw what president reagan and the first president bush did. Both of them sort of adjusted legislation to include a couple more people that they sort of forgot. Remember . Well, yes, more than a couple, but yeah, they did. I know, but there was legislation it wasnt just lick its own 5 million person edict. It was like something that had already helped two or three Million People stay and then it added their kids or their spouses or Something Like that. It was sort of like an oversight to use executive action. It didnt break as much ground. I see what both sides are saying. Pelosi, someone said something and she said youre a history row, ronald reagan. And its the most disparaging condescending way of saying, you remember that idiot you like . He didnt theres so much nastiness and acrimony on both sides. It is definitely a bad situation in washington and i think were in for a rough ride over the rest of the year and early next year. And as i said john, when you say rough ride, what does that mean . Well, i think a smooth ride would be keep the government open and not do very much. I think the question is going to be now is there a shutdown . Is there brinksmanship, are there games played with the debt limit . Is there some sort of by some small group an impeachment drive that Republican Leaders will have to swell muquelch . And when you look at where we were at in the lame duck, you would have hoped that all congress would do was fund the government, get out of town, have the holidays and start afresh in january. That prospect got more difficult. I am on a little bit of a mission to get to brinkmanship. I dont think theres two ss in no web looked it up. You can do either because people have mistakenly said because if you take someone to the brink, youre fought taking them to the brinks. Yeah. You probably say nuclear. No, i know its nuclear. I might say ebunclear. They go up to a different brink. If you look at washington, theres been more than one brink. Becky, thats very good. I like that. No, youre doing more brinks. Brinkmanship. You look up the definition. Joe, i do want to thats the alternative. Where would i say nuclear . Thats a slam against w. Are you still trying to not just you and all your friends blaming everything on him . No, no, there are a lot of people who say nuclear. But ill tell you one person who doesnt say it is jeb bush. Look at jeb bushs response last night. That was a model. He criticized the president , said it was ill advised, that it was political, said its divisive, but he sketched a constructive path. Thats why hes a grownup in this. Is it divisive or devicive . I like that. Is it a primarier or a primer . That sounds british. This is good, joe. I like the supplements youre showing here. I think its a primer, by the way. Im uncomfortable when you say you like it when its supple. Not that theres anything wrong with that, but, john, i am supple. Watch, i can do a lot of oh, not really. Im not supple, in fact. I cant get anywhere near my toes. Brinksmanship . Its brinkmanship. Go with me on this. With an s. No, you sound like were going to have brink he ismanship with the producers in a second. Coming up, more on the breaking story of the morning, china cutting Interest Rates to lift a sagging economy. Plus, shares of gamestop getting clobbered this morning. Well be asking if the worlds biggest Game Retailer can turn things around in time for the holidays. Well talk about all that and a lot more when squawk box returns. Announcer here is your travel travelers check. According tot latest performance reports by flight staffs, American Airlines is north americ americans Worst Airline for ontime arrivals. So which one is the best . Find out, next. 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. Which airlines is best for ontime arrivals . Alaska airlines. Amazon is redefining the meaning of limited time offer. The ecommerce giant announcing it will start posting codes to snapchat for disappearing message apps. Kind of a cool idea. Those discounts can be redeemed on during checkout on amazon. Com. Gamestops Quarterly Results and guidance disappointing wall street. Shares at this hour plunging. Now with more on whats happening with the stock, also the gaming outlook for the Holiday Season. Senior analyst at byu would buy the stock on its weakness. Thats the first point to make, right . Absolutely. And the weakness is temporary. The industry will rebound. What not being an expert, although i know a lot of gains. What do you mean that there was concern that this was digital . You think its mostly old software . Explain that. Sure. The bear case for gamestop is all the copies have been moved to digital copy. Frankly, thats not happening. Digital marketplace is still small. What does exist, gamestop is dominating. They have much higher growth than the publishers are seeing. They were up over 50 in the quarter. But the primary problem for the company is that the software tied to older platforms, the playstation 3, has fallen rapidly, down 358 yeartodate. Thats whats a impacting the bottom line. We dont have a smooth transition. So when you say old software, you mean for the old consoles . The old consoles. You know, those that have not been that didnt launch last year, but instead, launched eight, nine, ten years ago. And why would the post situation make a difference . The hardware has to be shipped across all the different gamestops, i guess. Thats right. I mean, when it comes to software, you can load up a plane. Yes, your cost of goods will be higher, but you can still get a lot of product in. When it comes to the bulkier hardware, you need to have the ports open to have enough supply to fill your holiday needs. Okay. So that could be an issue. Does that make sense . Yeah, that makes sense. You know, just and thats the high we heard from best buy yesterday morning. Right. Just in a purely simplest question is why is gamestop in the future, why does it have a different fate than blockbuster . The primary reason that video games have not moved to digital as quickly or, you know, probably as much as other forms of media is the value proposition. You know, the gamers see a 20 residual value in a physical copy. They know they can trade it in, get credit towards the new game. You dont have that with other forms. You also have a media format that is active, not massive. You cant stream it. The file sizes are significantly larger. It changes the dynamic for the user who wants to take a gape to their friends house, who wants to trade it in, who might get a new console and doesnt want to have to worry about reactivating and finding new codes. But ultimately, its the val proposition that changes this format versus what i get thatted the in terms of how long it takes to download a game like this and the idea that you cant really stream something at this very moment. But in this great tech logical mar march that we are all on, it would seem to me in several years you should be able to do all of this things. How do you not account for that . That is why i say its not the technical capabilities. Can we get the pipes big enough or the storage large enough . Absolutely. But the gamers dont want it. Theyre not willing to pay full prize for a digital copy. If theyre not willing to pay full price, its a losing proposition for the publishers. Scott, thanks. Appreciate it. We know youre still have you played the new i havent been able to talk my son into getting it, the new alien game, do you know about it . Have you played that . I have not. My 99yearold is a little young for that. Oh, apparently its just like seeing the movie for the first time and your heart is racing because youre going through the ship and you dont know where the alien is or anything. I want to get it. You know, you actually bring up if i can, you bring up one other very good point is core console gaming is very immersive. One of the knocks with gamestop has been everything ask going to move mobile. But the experience of ultra high def tv is very different from what i get on an ipad or an ipho iphone. I still think theres i want all those guys to succeed, but i have to think that someone is going to come in and just the model, the pricing, the everything. You have to imagine it. If not for gamestop, for the publishers, too. I want to be in this Walking Around in the scary places and not knowing. And again, the part where thats the name of the ship that theyre on, the part where his he fights john hertz and he made no one in the cast knows whag goes to happen. You said that to me and why have you not developed a squawk game yet where they come and sit at the table and they and then somebody annihilates them . Yeah. You have to sell a lot of things to pay for the development costs. Do you think people are going to buy that . They can watch us. To you just waking up this morning, the u. S. Futures get ago shot in the arm up sharply right now. Wow, look at that. Dow futures up 122 points above fair value. S p up 15. After both of those indexes hit new highs yesterday. This is coming after mario draghi tells the markets that the ecb is ready to act again. Just in the last hour, china cutting Interest Rates. Actually, in the last 35 minutes or so. Both those stories triggering a market rally in stocks. Oil and gold, we will talk about those stories and the market response after this. Right now, take a look at yesterdays s p 500 winners losers. You know how fast you were going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Good morning, everybody. U. S. Investors are wake up to a global rally. First of all, ecb president mario draghi giving a speech. He suggests the eurozone economy is likely to remain stagnant. Thats the bad news. The good news that the markets are picking up he says the Central Banks are ready to act again. A few hours later, Chinas Central Bank announcing a cut in Interest Rates. The goal of course is to lift the sagging economy there. Lets check on the market reaction. Youll see big moves when it comes to the futures. Right now, dow futures up 126 points above fair value. Both of these indexes closed at a record high yesterday. The nasdaq higher by 3375 points. If you check out whats happening in europe, those are some of the biggest moves. The dax up by 1. 8 . The cac up by 1. 7 . The ftse up by 0. 75 . This comes yesterday after huge concerns about what was happening in the eurozone because of the lower than anticipated pmi numbers. Take a look at whats been happening in asia, what happened overnight this was before chinas move. Before you saw green arrows up at shanghai, the nikkei and the hang seng both up by 0. 3 . Oil price these morning moving. They pointed out this is probably because of what china said, the idea that they might be doing things to help spur the economy. Wti up by 1. 7 . 77. 17. Brent crude up significantly, by 2 . 80. 93. The tenyear note here in the United States at this point looks like it is yielding 2. 349 . The dollar picking up some steam. It is up against the euro in particular because of Mario Draghis comments right now. The euro trading at 1. 242. Gold prices right now look like they are up slightly, by about 4. 30. 1,195. 2. For the day . Weve done it before. I thought Jeremy Siegel was crazy the first time he came on our air and said 18,000 by the end of the year. Probably wont happen, but probably not. We could get within spitting distance. Probably not with china and draghi. Fueling and fanning the flames. Almost there, you could get there. Come on, santa claus. I believe in you. Before thanksgiving. I believe in you. Yes, virginia, there is a santa claus. Joining us now is john wilson, principal and not of revly letter, chief Technical Strategist at morgan keegan. And Michelle Meyer from bank of America Michelle lynch. Michelle, lets start with you. Its the economy, allows the economy in both china and europe that is spurring these anxiouses. Are they warranted . Seems to be, particularly in europe. I think theres a real concern of the eurozone falling back, falling into deflation or falling back into a deeper recession. I think the concern is that the ecb wont be able to do enough. So right now, theyre talking dovishly and thats encouraging. But they have yet to take that bold action of putting in place a large scale qe program. Whereas in china, i think theres more uncertainty. Theres lingering concern about a hard landing in china. Theres been an extraordinary amount of accommodation already. Really, what the focus is much more in terms of what happens in the eurozone. Thats where i think is the bigger risk factor. Lets talk about whats happening with Central Banks. We also heard from japan, not that story of the central bank there, but the idea that they would be pushing off these consumer tax rate hikes that were expected. That is a lot of activity. We thought it was all about the u. S. Fed and when the fed decided that it might be getting closer to raising rates, that it was game off for stocks. Is that knot the case. Whats going on . Nath, ive been thinking that we somewhere between now and the end of the year could be poised for a nice meltdown. There are so late things at play that i think are favorable for stocks. And i dont see that first Interest Rate hike really i think the market has anticipated that. So that doesnt lure me out there to me as a huge negative for stocks. If i looked at how the market has tracked since 2009, its kind of at the high end of what my expectations have been. Theyre still tracking fairley well. Again, ive been wondering here, this tight range weve had lately, you know, what would be the catalyst for the next move, including as i say theres a potential met up out there with a lot of money on the sideline. Weve had active managers who struggle this year, hedge funds have had a tough time. Theres a lot of people worried about bonuses at the end of the year. So meanwhile, youve got, you know, foreign economies and economists doing things kind of like weve done, so taf off recession or to help struggling economies. And when all that is said and done, its favorable for u. S. Stocks. Thats a really good explanation for whats happening right now. Its a good explanation for what might happen for the rest of this year. Does that change significantly come january 1 when the clock is reset for those managers when they have to sit around and take another look at whats been happening . Yeah. Its a world for a baby duck, its a new world every day. I have felt like somewhere, you know, up flat 6 to 8 would be a pretty good year this year. It looks like thats what were going to do. Maybe, you know, Jeremy Siegel is calling for 18,000, as joe said. What happens next year is difficult to say. Were bound to have another correction like we had in october. I think a lot of people thought that could go further. But im pretty sure on the 15th and 16th of october. And whats been interesting to me is looking at some of the large cap blue chip dividend paying stock. Some of these things are starting to come on a pretty nice basis. Its not just confined to one sector. Im seeing some nice activity. But also even retailers like walmart, for example. Here is the question. If hes right, and nobody wants to play the timing game, but i think theres a lot of people who think the train has left the station and theyre worried and they didnt get on the train. Now they have to get on the train now. The question is, do you just wait or is the train really gone . I mean, i thats impossible question to answer in terms of when to time the market. I think when you think about the economic fundamentals, next year we do think well look stronger. The rally weve seen in the stock market so far has been without a robust economy. If we get 3 growth this year into 2016 and maybe you start to see or is the market expecting that and then were treading water . Yeah. Yeah. Good risk. Michelle, john, thank you both. And let me steal somebodys quote, by the way. Stock about ten years, second best time is now. Were going to continue this conversation and everything thats developing in the markets. Steven roach is going to join us just ahead. Were back in just a moment. Uh. 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Built for business. Coming up, cancer is the second leading cause of death among children. Why are Pharma Companies not making the drugs . That story when squawk box comes right back. No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Mheres our new trainer ensure active heart health. Heart im going to focus on the heart. I minimize my sodium and fat. Gotta keep it lean and mean. Pear uhoh. Heart i maximize good stuff like my potassium. And phytosterols, which may help lower cholesterol. Major im feeling energized already. Avo new delicious ensure active heart Health Supports your heart and body, so you stay active and strong. Ensure. Take life in. How in argentina,rass change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. 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He was diagnosed on a sunday afternoon. And monday we went to see the neurologist. Tuesday morning he had emergency brain surgery. Jacob had a rare brain cancer. After his surgery the doctors prescribed chemotherapy drugs even though they feared it wouldnt work. He was one of about 15,000 kids in the u. S. Diagnosed with cancer annually. Yet the number of kids with canc cancel pales in comparison to adults. Nancy came to realize Drug Companies dont focus on cancers for kids. Were always learning about wonderful advances in science and treatments for cancer. I was shocked to learn they dont apply to kids. Kids dont get access to these drugs. Jacob didnt benefit from the drugs they prescribed. He died five years ago at age 10. Nancy has since devoted her life to solving the problem that took her sons. She helped pass a law advising drug makers to focus on Rare Diseases affecting kids. Her efforts continue as lawmakers, doctors, and drug makers met to discuss solutions. How could i be here on the earth and jacob isnt . You know, i just if the worlds set up the way it is and cant accept jacob, i need to change the world. Joining us is nancy. Thank you so much for joining us. Thank you, meg. Tell us. I think a lot of people might be surprised that while there arent a lot of kids that get diagnosed with cancer, it is a common cause of death. How do you think this became such a broken system . Well, the problem is that the market size is so small, companies cant get in and develop drugs for kids with cancer and achieve a reasonable rate of return. Thats what we sought to address when we put together our first legislative effort. Tell us about that effort because its coming to fruition now to get drug makers to focus on kids. Weve had a real win. After jacob died, he died on a sunday. Monday morning i put my laptop on the dining room table and started working. There was already a program that had just been enacted. It hadnt had an effect yet. It created vouchers for a disease development. We took that program, we improved it so that it would work for effectively and extended it to kids with cancer and other Rare Diseases. And this week the second voucher sold for 125 million. So we now have what we think is a opportunity for companies to get in and achieve a good opportunity. They have people in house seeing if they can be applied to kids cancers. Are you encouraged thats happening and encouraged also by the incentive system set up . What more needs to be done . We are very encouraged. Were thrilling theyre looking at pediatric cancer. And so i think we need to also look at additional insentives to encourage companies to start early on drugs that would have both adult and pediatric cancer implications. Nancy goodman, thank you so much for joining us. Meg, thank you for bringing that story to us. And nancy, thank you for joining us this morning too. When we come back today, well talk more about the Global Markets in rally mode. Those stories right after this. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Which means its time for the volkswagen signthendrive event. For practically just your signature, you could drive home for the holidays in a germanengineered volkswagen. Like the sporty, advanced new jetta. And the 2015 motor trend car of the year allnew golf. If youre wishing for a new volkswagen this season. Just about all you need is a finely tuned. Pen. Hurry in and get zero due at signing, zero down, zero deposit, and zero first months payment on select new volkswagen models. Im just looking over the company bills. Up . Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Markets on the move. Futures of european markets rallying after mario draghi says he is ready to act again. And china decides to cut Interest Rates. Billionaire investor shows us where to start looking for the next big buying opportunity. Ill make it easier and faster for high skilled immigrants, graduates, and entrepreneurs to stay and contribute to our economy. How will the republicans respond to the executive order . Well launch into that debate next. The second hour of squawk box begins right now. Welcome back to squawk box here on cnbc, first in business worldwide. Im becky quick along with joe kernen and andrew ross sorkin. There is a stock market rally. If you havent seen this this morning, wake up and check this out. Its been fueled by mario draghi and chinese rates. Draghi suggesting the eurozone is likely to remain stagnant and the central bank stands ready to act. S p futures up by about 14. 5 points. Nasdaq is higher by 31 points. Also if you look at what happened in europe whats happening in europe right now, there are bigger gains there. The dax is up by 1. 8 . The cac in france up by 1. 89 . And the ftse on a 1 gain. Wilbur rosss reaction will come at the 7 30 a. M. Hour. Higher on draghi after China Central bank announced a rate cut. Joining us on the line, steven roche. Senior fellow at yale university. Whenever anything like this happens, stephen, you wonder whether we misjudged just how dire or how whether the weakness is more than we anticipated. Is that your reaction to this . Well, you know, the policy actions like this are revealed and theyre doing something no other has done right now. Theyre addressing cyclical issues in the contract of these big changes in terms of rebalancing or reforming their economy. The latter also puts a near term drag on the economy. So to do the structural initiatives and the contacts puts more Downside Pressure on the economy than they envisioned. The good news is theyve got present of scope unlike Central Banks in the developed world. Weve got plenty of basis points for a future maneuver should they need to do it. Did you see this report . I guess its created quite a fire storm in china from s p that at least half of all Government Debt in the country may deserve a junk rating. All these things seem to, you know, youve always been sort of to critics of china say calm down. Its all going to work out in the end. But theres always something to give the people with the opposing viewpoint ammunition. This is something again that does that. Plus with the moves today. Theres always all this sort of innuendo and hyperbole about china being never taking a debt bump stacked with nonperforming loans. I think those claims are based more on the motion rather than hard empirical data. There are not saying there arent risks in china. There are risks in any economy. I stress theyre doing something on fixing their structural economy that no other major economy is doing in the world. There are head winds associated with that when you try to shift the mix of Economic Growth from your hypergrowth sectors of investment, debt intensive investments, and exports to services. Theyre associating that with that. And when that occurs in the external environment which is obviously the case because of whats going on in the world, chinas got a Downside Pressure to contend with. Theyre putting a floor on the economy. Theyre trying to put a floor on the economy somewhere around 7 in gdp growth stephen . Its michelle here. Good to have you on. They have also announced that they are going to do a slight liberalization of deposit rates. What you get paid when you put your money in a bank in china. They now said banks can pay 1. 2 times the benchmark deposit rate compared to 1. 1 time the benchmark deposit rate. Where economists around the world have said they must liberalize the rate, is this move fast enough . Its a small move, michelle. People think china did commit, i would say, about a year ago to fully liberalize deposit Interest Rates. Now this is the last shoe to fall on Interest Rate liberalization. Theyve committed to do it within one to two years. Thats consistent with that commitment. This is a tiny step in that direction. Consumers need more income if theyre going to be active, a more active participant in the economy and liberalize rates for chinese consumers. Do you think they can manage the 7 in terms of the gdp target theyre going for . You know, its always a delicate balancing act. Again, theyve got structural pressures to contend with. Theyre telling you you can expect further moves if they do fear that the growth rate is going to go appreciably below 7 . The best way to take this is they are revealing their stop point in terms of the floor of the economy at around 7 . And to borrow the phrases of mario draghi, theyll do whatever it takes to hold it there. What happens . I mean, eventually this is the law of big numbers, stephen. At what point is below 7 acceptable . Well, its acceptable if they generate enough jobs. The key for china is not printing a topline gdp number but continue to absorb surplus labor. And actually theyre doing a much better job on that front than most people realize. Last year the economy slowed to 7. 7 gdp. This year the economy is slowing more than that. And theyre generating more jobs than they did last year. So theyre doing labor absorption because theyre shifting to more labor intensive services. Thats good news. The central bank came out and said very specifically that when it comes to they didnt use the term fiscal policy, but thats what they were suggesting. That they didnt think fiscal policy was necessarily a good measure at this point. Very focused on monetary policy. In the wake of an economist in china coming out and saying that china had wasted 7 trillion since 2009 on investments. Whether it stays on investments, overseas investments, et cetera. Are we seeing them pull back from that kind of stimulus we have seen in the past . Thats a good question. Look, i think they move very aggressively on fiscal stimulus in the crisis of 08 and 09. It got their economy stabilized on a near term basis, but it clearly created subsequent problems in terms of debt, exposure to offBalance Sheet, and a property overhang. And they feel pretty strongly. They dont want to go back to the well and do that again. So given the leeway they have on monetary policy, you know, with lending rates still at around 5. 5 and consumers the focus of their policy initiatives right now, i think theyd much prefer to do it with monetary policy. Stephen, being a genius and an expert, when you saw that climate deal, i mean, did you think that theyre just laughing at us . I dont want to put words in your mouth, but it seems like they got a pretty good deal. They dont have to do anything until 2030, do they . And they werent going to do anything until then anyway. Well, were doing some things. Do you have an opinion on that, stephen . Do you know the details . Well, look. I think the thing theyre doing thats most important here is thats a huge step for them. In total of emissions, this deal is on track with what they had committed to. Their filthy particulate pollution, to equate it with carbon is ludicrous. But its a filthy place in terms of particulate pollution and sulfur dioxide and everything else. I wish we could get them to work on that rather than working on do you see what im saying or not . I get it, joe. The tradeoff has been between growth and environmental. I wish the alarmists would spend half their time talking to matt damon about water and just put it into clean water for people. You know, it might actually help. Well, you know, i dont want to minimize the environmental problems. I go there all the time. The air and the water are horrific. Im talking about around the world with the water. You know the statistics. Its incredible. And to be doing this incredible dance with co2. Thank you, stephen roach. We appreciate it. Can i tell you one other headline out of china this morning . They created certificates of deposit. I bring that up only because it shows you just how far china has to go. Apparently. So when we you couldnt buy a cd at a bank . Theyre going to create cds. Probably higher than here for sure. Could seniors sit up and take notice . Heres whats going to happen in the next half hour. Weve got a rundown of whats coming up on squawk box. Next were going to be tackling the immigration debate that is raging across the nation. Then at 7 30, wilbur ross striking another deal in europe. His reaction also to draghis comments and chinas Interest Rate move. And if you need the perfect gift this Holiday Season, it could be is the next generation of hd televisions so you can look at everybody here and all of our wrinkles. Were going to do a little show and tell at 7 40 eastern time. Check out the futures. Markets looking up. Dow looks like it would open up 123 points higher. S p up 15 points. Squawk box will return in just a moment. Hey matt, whats up . Im just looking over the company bills. Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Welcome back to squawk box, everybody. The futures now are looking a little sunny themselves. The right now the dow futures are indicated 123 points above fair value. S p up 15. Both closed at record highs again yesterday. Nasdaq looks like it would open up by about 32 points. And we should tell you foot locker posting better than expected earnings and revenue. Same store sales rising 7 in the quarter. That stock up close to 2 . Lets move our focus back to washington. President obama announcing his problem to announce the immigration system. Hes doing it without congress. The setup would allow some immigrants who have been here for more than five years and have children here legally to be able to apply to stay in the United States temporarily without fear of deportation. As long as they pass a background check and pay taxes. Tracking down, rounding up, and deporting millions of people isnt realistic. Anyone who suggests otherwise isnt being straight with you. Its also not who we are as americans. Joining us now to dig deeper into the president s plan to take executive action, Jared Bernstein senior fellow at the center on budget and policy priorities and sarah fagen former white house political director. Both are cnbc contributors. Good morning, guys. Good morning. Im going to start with sarah. Tell us what you think the Republican Party is going to do as a result of this announcement last night. Well, i think that that is an important debate thats happening within the caucus right now. Speaker boehner and majority leader mcconnell have been strong in their statements about no government shutdown, no debt ceiling as a tool. But i think many members are going to push very hard to counteract what the president did last night. And there are a number of things that can be done and should be done. Walk us through the permutations so we understand whats at stake. Well, i think what were liking to see for sure are riders in the appropriations process that work to sort of defund the president s ability to implement this. Therell be a lot of back and forth on that. It will take very skilled legitimative maneuvering for republicans to pull that off. But it is possible to do that without shutting down the government. I think the other tactic that surely will take place is some sort of a legal strategy. You know, perhaps a member of congress sues the president , it gets standing in court saying the president took away congress authority, separation of powers debate. That could happen. I think estates states could sue the president. The states that will be required to pay for education and Health Services for these immigrants. So i think this is a debate thats going to rage on and on. The smart thing for republicans to do in response to this, though, is to do as governor bush suggested in his statement, jeb bush, making sure that we do something proactive on this issue in the next congress. But thats the question. And ill pose it to jared. Is there a way given what jeb bush just said, to find a bipartisan solution. Is there an opening that now exists or has it now been closed off . I dont see a very realistic opening. Kind of ask yourself if the house of representatives wasnt able to do this kind of compromise before after the senate voted for a comprehensive bill, why would they be able to do it now with more members who have a pretty, i think, loud antiimmigrant stance . So i dont see the possibility for that kind of compromise in the house. I mean, you could always be surprised. But i think the president was operating from the following i would call them facts. One, the immigration system is broken. That is a fact we can all agree on. And two, congress isnt going to fix it. And so i think that was what his actions were born of. I think thats such a deeply cynical way to look at it. First of all, the president had to do this yesterday and today. He has to announce it today. Why not do it before the election if it was that critical . Why didnt he get this done in the first two years . We know why. He told us why. He said he wasnt going to do it before the election because he thought it was going to hurt certain candidates. But i wouldnt call it cynical. Id call it hopeful. I felt good about what he did last night. Hes trying to fix a broken system. What he did by doing this before the new congress was seated and giving them an opportunity to work when you have Republican Leadership in both chambers of the congress is to make it likely that nothing permanent gets done on immigration and to make it likely that nothing gets done on anything including Corporate Tax reform. It was a terrible political strategy. I can argue on behalf of sara which is this. It makes it so much more difficult for him to compromise if the Republican Party can get their act together because hes anchored himself in a position that makes it almost impossible to go backwards. I dont agree at all. And ill tell you why. Its not like the president went anywhere near as far as the senate bill on comprehensive immigration reform. He took a few steps in that direction as he, i think very clearly and correctly said last night, if the house was to sign onto a bill like many republicans agreed to, his actions would be irrelevant. Because that goes further. This is no amnesty. Theres no path to citizenship in this bill. All it does is provide legal status for a bunch of folks who are going to be here anyway. I see that as very much of a positive development. This is a temporary fix. He cant it is by the way, this makes it much more difficult to get a legislative solution passed. You all say that but i dont see the logic. But i agree it doesnt go that far. And thats because its an executive action to go as far as you need to go you need compromise and legislation. Sara, last word. Are the republicans going to shut down the government over this . I dont think republicans will shut down the government. Some members will try to, but leadership wont allow that to happen and they shouldnt allow that to happen. That wouldnt be politically wise. We are going to leave the conversation there though i know we will continue the debate. Thank you. The weather in buffalo messing with football. The stadium will not be cleared out in time if you look at the community and the troubles its dealing with right now. The whole region at a standstill with more snow on the way. Where will the jets and bills play this weekend . Find out after this. Take a de. And. Exhale. Aflac and a gentle wavelike motion. Ahhhahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. See why speed matters, at aflac. Com. Here we go. The buffalo area expected to get another one to three feet of snow. And the conditions have forced the nfl to move this sundays bills jets matchup. If detroit hasnt suffered enough, now they got to watch the jets play. The jets and the bills will be headed to the motor city to play that is so mean. To play at ford field since Ralph Wilson Stadium is still covered with snow. The last time a game was moved to detroit was back in 2010 when the metrodome roof in minneapolis collapsed from too much snow. The lions happened to be playing away, fortunately, this week in new england. Most of the snow center, right, like buffalo was the target. Lakeeffect. Yeah, it is. It picks up all the water off the lake and dumps it on buffalo. Cleveland sometimes. It used to happen in indiana all the time too. Lots and lots of snow. Not this much. Ive never seen this much. Well, weve got to be prepared for lots more snow with all the climate change. Just be prepared. Because there will be right, andrew . Thats the new term, isnt it . Less more snow . It is causing less more snow. Up next, draghi ready for action and the chinese cut rates. Wilbur ross tell us where investors should be looking now. And well get his take on draghi this morning. Before the break look at u. S. Equity futures. You can see right now dow up 125 points. S p up 15. Nasdaq up 32. 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Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. Welcome bag b to squawk box this morning. Here are stories front and center. Chinas central bank cutting rates in a surprise move. Policy makers there trying to prop up the struggling economy. This is chinas first such move in two years. Mario draghi opened the door to qe. He said, quote, inflation must be raised quickly by whatever means necessary. And global stocks rallying on both of those stories. Heres a snapshot of the main see how the market is viewing all of this on this side of the pond. Looking like it would show up higher. Our news maker at this hour searches for opportunities all around the globe. The question is how will moves impact his next decision. Joining us is wilbur ross. I know you said recently you said the chinese stock market deserves another look. Today with china moving to cut Interest Rates, how does that really affect your opinion on this . Well, i think its a very positive development because its the early stages of quantitative easing. I think theyve needed that because when they would try to tighten up against the real estate excesses, they put in draconian measures in the money market. So i think its a very good move and a useful one. A good move and useful one. You think this is something that will actually help the chinese economy and therefore spur more demand for things like oil . Well, i think there are a couple of other news items that helped oil too. The chinese revealed yesterday for the first time their Strategic Oil reserves at about 91 million barrels. Thats only about tenday supply. And as far as one can tell, the government had been targeting to get permanent reserves up as high as 30 days. So that is well for near term buying of oil as well. We also heard news today from mario draghi saying that, look, his bank is prepared to act. The central bank in europe is prepared to act. Weve heard that before. Today it is certainly moving markets in europe and here. Does this one have more meaning behind it . Have more heft behind it . I hope it does. Because so far Mario Draghis done a better job of jawboning than actually of putting money to work. Last time i looked, the European Central banks Balance Sheet was still quite a bit below where it had peaked out in 2012. So thats not really a very stimilatory thing. They need to make their labor laws more lenient. They need to get out some of the bureaucratic mechanism. Theyve got to do a lot of societal reform as well. Have you lost enough faith . Is that why you sold your stake in the bank of ireland after three years . No, we sold the bank of ireland for several reasons. First of all, the banks doing fine so it was certainly not an editorial comment on that. It had become fairly large for us. It was fairly large when we took it on. And now after tripling became very large. So that was one portfolio reason for selling. The other is its in a fund that had been around for some years and at a point in time our investors like us to realize gains and repay trade profits to them. So the bank of cyprus today, you became the vice chairman there. What happened . Why . And what do you think the future looks like for cyprus . Well, the bank of cyprus had its annual meeting yesterday at which we elected a whole by the investors including the self who had bought the billion euros of new equity a few months ago. The most important change was we brought in joseph ackerman. The former ceo of Deutsche Bank as our chairman. And myself and a russian are the two vice chairs. I think cyprus has a very potential for a turnaround if for no other reason than that it has tremendous natural gas reserves. A sort of adjoining field to the big one over in israel. And given that cyprus only has fewer than a Million People in population, those could be a very, very dramatic impact on that economy. Its not without conflict, though. Its not without confrontation. Junior bondholders staged protest at the bank. They saw 1. 2 billion euros of their cash wiped out. They were there protesting headquarters and at times beating on the walls. I was there. It got a little bit scary. They threw something against a glass window, it almost sounded like a gunshot. But i feel very sorry who were bailed in. Its an unprecedented thing that the government forced depositors to take 45 of all their deposits over 100,000 euros and convert them to equities. Im very sympathetic to those people. But to the degree they have complained, it should be up to the government and the eu. None of us were around when it happened. Were not beneficiaries of it. All we can try to do since they are now shareholders is try to help get the value of the stock up. And thatll help them recoup some or all of their losses. Do you think its possible that theyd recoup all of their losses . Well, that would take roughly a quadrupling from here. I surely dont want to make that forecast for a stock. But well do our best. What do you think about u. S. Stocks at this point . Every government that has acted to lower Interest Rates or do things along these lines, its reflected most often in u. S. Stocks that continue to hit new highs. Well, i think its almost mostly due to a lack of alternatives. Think about it. Everybodys frightened about buying longterm bonds because they know the next swing in rates will be up. Shortterm paper doesnt give very much of a yield until very recently most commodities werent doing anything. So its almost a lack of alternatives that forces people into equities. Meanwhile Earnings Growth are around 7 . And theres certainly nothing wrong with that. Particularly when you compare it with europe. Okay. And ultimately what would you be telling people to do right now, people who sit at home who dont have the same sophistication and dont have the same deals you can get into . I think its the time to be a little bit cautious. Think about it. Weve had alltime highs repeatedly during this year. The obvious corollary of that is there are fewer and fewer really inexpensive things. Our own behavior perhaps proves that weve moved into greece and to euro bank and now into bank of cyprus. Thats going fairly far out into the me rirry because were finding it very difficult to find extreme value in the mainstream markets. All right. Wilbur, i want to thank you very much for your time today. Its been great talking to you. Thanks. Good to be on again. Coming up, if you are watching squawk box on hdtv, im sorry. Imagine my face four times as sharp as youre seeing it right now. Wow. Thats the kind of resolution youre going to get when you buy a 4k tv. Were all in trouble at that point. Were in trouble with hdtv already. You see every flyaway. I use the word rugged. Men can get away with that. Will it be a hot item this Holiday Season . And is it worth the price tag . Were going to talk to an expert from cnet. They know what theyre talking about. Well have that next. Cute little guy, huh . This guy could take down your entire company. Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Welcome back to squawk box this morning. Futures are up in a very big way. Market looks like it would open higher. Dow jones up 130 points. S p 500 over 16 points. And nasdaq over 34 points higher. In headlines this morning, tv streaming aereo filing for bankruptcy. Coming five months after the Business Model violated co copyright laws. They continue to have a roughly 23 stake in aereo. Growing buzz about super High Definition 4k tvs. Theyre the next step forward in high def television. But how high def is too high def . Thats not a good question. Do you need to see everything . Yes. When you see drops of sweat coming off football players. I can see if a guy missed one hair shaving thats like a linebacker. Thats what you see in 1080 dp. I think i have this. Sony has ultrahigh def. And samsung has an equivalent. I have one of those. Do i have a 4k tv . But youre not watching 4k content on it. Nobody is streaming 4k content. But im ready. Youre retd i did in a couple years when they finally get to that point if the brad band band width allows people to stream the content which is not going to be easy to do. Isnt this the answer to the age old question about whether well eventually not be gathered around the tv set as a family. That we will always be there because its going to be a 90 inch screen . Its just going to be the whole side of the house. Whatever. Well still be together and not be hopefully separate watching little iphones. Yeah. Theres something to be said about the shared experience. We are calling sitting around watching the boob tube a social activity. Its where were sitting around with family watching walking dead or youre watching oxygen or whatever. Very little. And you talk about it the next day. How long is it going to take me to are we ever going to how far away are we from truly getting 4k . By the way, because every camera here is going to have to be replaced. Are we shooting in 4k right now and that answers your question. Netflix has a couple shows you could stream. Amazon are adding the same thing. Are we a decade out . Id say maybe five. We never got the content for 3d. Here you dont really need it. If youre sitting four feet away from your tv and i show you 4k and regular hd, youre not going to tell the difference. I think were at the point you cant get more resolution out of the picture youre seeing. The human eye cant detect it. I think really we should encourage people to just make better shows and not worry about the definition so much. If thats the case, are the tv Companies Making the wrong bet sfl. Over the last ten years, everyone has replaced the tube tvs with the flat screens. They generally last a long time. How do you get people to replace those. Its not like a laptop where every two years you need new. They want to get you to upgrade. 3d was the first thing they tried. Now theyre trying 4k and theyre getting out in front of it because theres very little 4k content. Theres one thing i found its really good for. If you take a really powerful new computer and hook it up to your 4k tv, its an awesome monitor and Computer Games look amazing in 4k. Consoles cant do that. To the extent it does take off, what do you think would be the Tipping Point . Is it a direct their decides hes spielberg decides hes going to do a 4k movie. I think its pricing. And it costs the same as regular 1080 dp movies. Within a couple years theyll be 4k by default whether you have the content or not. And thatll just be the basic feature built into tvs like every tv right now has 3d built in. You dont notice it or use it. What do you think about the rounded tvs . The curved tvs. Its interesting. We have a derogatory term for them because they only loom great for the one great for one guy in front of you. Everyone to the side its worse on the side . If youre in the middle, it curves around you. Its your personal tv. Everyone else, its not quite as good. But i enjoy watching them. We have one set up in the awesome. I think its fun. What about plasma . Is that over . People say it has the best image quality. Panasonic, the guys who are the plasma leaders got out of the business. I have plasma because of you guys. And you probably love it. Its too dark. The blacks are so black. Lcd reflects the windows. But some shows like like a soap opera on l. E. D. Most people dont realize this, if you buy a new tv, everything looks like a soap opera because its refreshing the its creating fake frames to make it look smoother. Can dan please tell me this . I dont want to listen to you. I know you. Im with you all the time. Can i ask one more thing. The curve if you sit right in front of it its amazing. Its pretty cool. Everyone else its not so much. But i think its hoeky. But its never going to fit on my but how do i put it on my above my mantle. Theyre not really mountable. Theyre more set on a pedestal tvs. My house is not designed around that. Design the house around the curved tv. They dont look good when theyre not turned on. Theres something sleek about the new flat screen on a wall. People kind of build them into the wall. Very subtle. So im ready. Dejutter. But i dont have the right input. Youre not seeing 4k stuff, but the regular hd stuff looks fine because regular hd is good enough for anybody. Everything is better. Hockey, everything. Porn. Im kidding. You knew i was going to get there. That is usually what does advance tech snolg. Its a technology driver. Virtual reality goggles. Thats scary. I dont know whats coming down the pipe. I dont think i want to go there. I knew that was coming. I knew that was coming. You did. You didnt think id say that though . I did think you would. Coming up when we return, should government regulators be allowed to buy and sell stocks in their personal portfolios . Youve got to hear this story just ahead. Plus some of todays top stocks to watch. Were back in just a moment. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. Its in this spirit that ingu u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. Why is it called a dejutter . You go to menu, settings, picture. This is if you have a new one and everything looks everything in a new one looks like a soap opera. What do you mean . They look very videoish. It doesnt look like a gritty film. Oh. You have to turn off all the lighting and everything. This is a soap opera. Lets take a look at some stocks to watch this morning. Sothebys. Its been about a year since the activist investor the began demanding big changes. Seeing what these guys sell for 80 million, i wouldnt change anything. You should just be happy that, i mean, worth 80 million the squiggly lines with the unmade bed with the condoms is worth 15 million. Yeah. Gross. Someone spent 15 million. She was in a bad place when she made that bed. And game stop earnings and revenue fell well short of estimations. Release of assassins creed unity. Also slowing slowing Software Sales from the older softwares that goes on the old eer consol. And splunk beat the street on the line. Also raising its full year revenue forecast. Splunk is up 5 today. You know it . I dont know it. I like saying splunk. I do too. I want to know everybodys view on this one. Stirring a bit of a debate whether to be regulators should be able to be active stock investors . Runs the s. E. C. Office that runs Public Companies books. He reported Stock Holdings worth between 2 million and 6 million in 2013 and the sale of stocks throughout the year. Since the beginning of 2014, higgins has reported sales of stocks of dollar tree and apple. Stock holdings are permitted by ethics rules and the law protects against conflicts by prohibiting officials from working on matters that could benefit them financially. This goes to the issue of should congress own stocks, you have inside information. Do you want folks at the s. E. C. To be allowed to own individual stocks . Do i . Yeah, do you . We cant own any. So should they . No. If we cant, i dont think they should. Do you . Too tempting for them at the s. E. C. Too tempting . Yeah. Blind trust. Do you think that you would suffer in terms of the quality of people that you could attract to the s. E. C. . Could they get any worse . Im kidding. I love the s. E. C. I knew you would say that. I got enough problems with the irs. I love the s. E. C. Those are the best government types around. All of those guys. Coming up, well go to a break. I bet you wont say anything. I wont. Throwing away the key. Theres nothing like a friday rally and weve got one. China moving on Interest Rates. Draghi vowing to take action in europe. How all this Big International news is going to impact investors at home. And then congressmen from two sides of the aisle getting ready to face off over president obamaS Immigration action. Swrooel that debate in a moment here on squawk box. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Many americans who have prescriptions fail to stay on them. Thats why we created programs which encourage people to take their medications regularly. So join us as we raise a glass to everyone who remembered today. Bottoms up, america. See you tomorrow. Same time. Another innovation from cvs health. Because health is everything. For that moment, where right place meets right time. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. A Global Market rally. China cutting Interest Rates to lift its sagging economy. Plus mario draghi saying they must act now to tackle inflation. We bring down the big market movers. Immigration front and center for washington. Do those members of congress who question my authority, i have one answer, pass a bill. Congress reacts to the president S Immigration plan. Were going to speak to both sides of the aisle. And the fast growing part of ecommerce is mobile pay. The ceo of brain tree talks the future of mobile and how he is setting up the company to take on apple pay. Welcome back to squawk box, everyone here on cnbc first in business worldwide. Im becky quick along with joe kernen and andrew ross sorkin. We are less than 90 minutes away from the opening bell on wall street. The futures up sharply this morning on two key pieces of news. China cutting its benchmark Interest Rate for the first time in more than two years. That move will Lower Borrowing costs and lift a sagging chinese economy thats on track for its slowest growth in 24 years. And europe not only taking in chinas news but the remarking from draghi who said the ecb stands ready to act on inflation. Markets continue to pick up speed with the dax up by 2. 1 right now. The cac in france up by 2. 25 . Michelle carusocabrera is here with more. Lets go through the headlines from china. They cut Interest Rates, the central bank did. Lower by 40 basis points. Slightly lower than bank deposit rates. Pretty much fixed theyve been pushing for a long time to make that more market driven. So some economists made sure of that. I highlight the following only to show you how far the chinese economy has to go. They announced the creation of certificates of deposits for firms and individuals. Apparently they didnt have those before. And they also emphasize no more fiscal stimulus, they think. Theres a lot of suggestions that the Chinese Government thinks a lot of the fiscal stimulus has been wasted. Lets show you what happened in the markets as a result of that. Brent moved higher above 80. Pret pretty sharp move today. And look at copper. Youre going to see a very sharp move higher on the righthand side. Now lets move to the Second Central Bank making news this morning. They didnt do anything, the European Central bank. But mario draghi made a speech and was more emphatic that theyre going to do something. We will continue to meet our responsibility. We will do what we must to raise inflation and Inflation Expectations as fast as possible as our price ability mandate require us. He went on to say that if necessary, they would increase the quantity of what they buy, the pace at which they buy it, and the composition, the type of stuff they would buy to increase the Balance Sheet. Take a look at the euro. Becky showed you what happened with the European Equity markets. The euro moved sharply lower prp and then also italian 10year yield, look at that chart there. Holy smokes. 10year yield than we do right now. Yeah. Okay. And remember, thats important. Because if your Inflation Expectations are very low or even negative, 2 looks good. Right . Yeah. Wow. That is telling you something. Those are the headlines. Thank you. Lets get to some other stories making headlines this morning. With more snow on the way in upstate new york, sundays scheduled game has been moved to monday. And its going to be in detroit. And also dish Network Customers will continue to receive cbs stations for now with both sides extending a new agreement. Also walmart will install solar Power Equipment nationwide. It has chosen edison as its partner in the project. Shares of solarcity and sunedison rallying on that news. You can see solarcity up about 3. 5 on that. I guess its an uproar, but its been a long time coming. President obama and Congress Sort of are going to have some talking together to do after last nights big speech. The actions im talking are not only lawful, theyre the kind of actions taken by every single republican president and every single democratic president for the past half century. And to those members of congress who question my authority to make our immigration system work better, or question the wisdom of me action where congress has failed, i have one answer. Pass a bill. And joining us now with their thoughts on the president s move to reform immigration policy, South Carolina republican congressman Mick Mulvaney and new jersey democratic congressman bill pascrell. Im glad we have both gentlemen with us today. Congressman mulvaney, explain to me the cons here of the entire situation. Because normally i understand sort of the gop thinking on many things. And theyre here. Their families. I dont know how else to deal with this. Its almost like just recognizing sort of the fact of the matter as it currently stands. I dont know whether its going to play to the American Public to make this the key issue. Well, the biggest problem is not the substance of what the president did last night. Although it is going to cause difficulties. The problem is the process. You cant do what he did. You cannot make law last night. That was not an executive order. This was new law. And you cant do that in this country on a unilateral basis. We saw with health care, we had no republican buy in. Now we have no legislative buy in. You cannot change the big problems, you cannot address the big issues on the unilateral basis. The American Public will not accept it. Im interesting in reform. Im not interested in the president doing it by himself. Congressman, we go back to president reagan and president bush. And i made the point earlier, they had attached additional things through legislation. Again, it almost it was pretty similar. Some of the executive orders that those two president republican president s not the same thing . I dont think they were. What did the president do last night . An executive order properly done, and theyre proper. A lot of folks will give this president a hard time for the number of executive orders. Thats not the key. The key is is an executive order properly done . And it prioritizes your efforts. It focuses the efforts of the executive branch. That is legitimate use of the executive authority. Last night what did the president do . He made law. He said right now the law is you cannot be here and we have to deport you. Now the law is if you do a, b, c, and d, then you can stay and you can work nap is not an executive order. Its flatout law and its what hes not supposed to do. What do you think, congressman . Mick is a good friend. Even though hes on the other side. Hey, bill, good morning. He not only does not history, i think he does know history. Selective memory right now. Ronald reagan had an executive order after legislation. You guys and gals have not sent us any legislation. Over 500 days after the senate in a bipartisan vote 68 senators voted for comprehensive care and reform in the immigration system. This is a compassion issue. This is an issue dealing with work. Even the chambers of commerce support that we need to do something. The system is broken. And the president simply said for 550 days send us a bill, send me a bill. Well look at it. Lets sit down and get a bill as the senate did. This was not done in the house of representatives. And the president did last night what many other president s have done in the past. And hes even saying now before this is even implemented, its time to get us a bill. I think if we sat down, mick, we could come up with a comprehensive bill. And we would have to compromise. Thats part of the american process. Thats part of the process. And we should have it. This is a Homeland Security issue. The government has a right to know whos in their country. And every day we waste, we move away from realizing that fact that the government has that right under the constitution of the United States. Youve tied the president s hands. You did a great job in doing it. And now the time has come for you to put up or go home. You had supermajorities for two years, congressman. So the president s hands were as untied as any president s been in the last 40 years. Tried to build a consensus. But you could have passed it back then. And he did it in the senate. He wasnt the only one responsible for that. But he did it. What im worried about, congressman mulvaney, is we saw your party had a great night. And youre in a position that democrats wish they were in. And i just worry that you take this issue and it almost plays into president obamas hands to some extent. I saw durbin yesterday. And, you know, he says these arent criminals. These are children. These arent gangs, these are families. And i just dont know how the u. S. You know, its going to be easy to snatch defeat from the jaws of victory in 2016 again. Republicans seem to know how to do this and suddenly the president looks good again. How can he look good again with whats happening with obamacare and all this stuff and youre going to make him look good again. Isnt that exactly what this is about . I think it is. In a cynical way, i think it is. This is not policy. That doesnt mean its not going to work though. Theyve done it before and it worked. This administration. I think folks at some point see through the politics. Why did we do this last night . Wasnt this an emergency two, three weeks ago . Wasnt it an emergency 2007 . Last night was the latin grammys. Dont talk about politics, will you please . You want to talk about politics, thats good. Well talk about politics. Youve had several years to do something to put your own ideas out. Just like you do with the aca. Now, bill wheres the alternative . Come up with a plan. You and i can talk, mick. All the time. Heres the weakness in what bills talking about. He knows this. Im actually one of the republicans who was interested in doing immigration reform. Yes, you were. Had been talking to democrats about a guideline, a way to get to immigration reform. Then what happened . The president opened up the southwestern border in the springtime and all those discussions broke down. It just simply couldnt happen after the president did that. Joe, let me finish something. Tell me. Weve had a ruse for five years. Border security. Thats baloney. I want to inform theres more than one border on the United States of america. And theyre not just mexican hordes coming over. Were talking about many borders the United States has. Were talking about polish, italian immigrants. Were talking about immigrants from africa. Were talking about immigrants from asia. This is what were talking about. Not just mexicans. In fact, the last two years weve had a slack of those coming to the United States of america. Was congressman mulvaney one of the people who would be willing to talk about this . Yes. And now that he says was, im assuming its past tense. What are you going to do at this point . What the president did last night is temporary. And the president said that last night. Correct. So what do you do to work with people like congressman mulvaney . Get a bill on the president s desk in the new congress in january. What the president did last night was to make those talks break down. No, its not. What your party did was. Dealing with fears. Are the people who carry the American Flag with those kids coming across the border, are they any more american than you or myself . I dont think so. See. And thats both sides are incendiary. Both sides are at fault for a lot of things in the past five years. What part of jersey are you from . North jersey. This is my district. Youre in my district. You scare me a little. I like youve got that jersey i like it. I thought i got a little southern accent in there. I thought it was south jersey. You got that southern thing. Hospitality. This guy, hes on the set with me. So im kind of deferring to him a little bit, congressman mulvaney. Im not chris christie. You can talk. Im not going to tell you to shut up. Another guy i like. Thats the jersey im talking about. Youre pretty darn close. Youre not some shrinking violet. Im civil. We should discuss this in a civil way. We should. But, you know, we dont have time to discuss obamacare in a civil way, do we, congressman . I will. Are you proud of the way that was carried on . Much better than it was last year. That wasnt incendiary . That wasnt one side taking exactly what it wanted to do and forcing it . 37 approval at this point. Because of the stupidity of the american people. Joe, you always talk about dont worry about the polls. I dont worry about those. A lot of goods coming out of it. Bill rb happy thanksgiving if i dont see you. You too. God bless. Thank you for the conversation. That was something. Coming up next, a Global Market rally this morning. Were going to talk more about that move from Chinas Central Bank and the comments from mario draghi. And the future of online pay coming up. And theres one group of people who love freezing temperatures. Florida realtors. Robert frank is going to look at the snow bird market. And we stick with the winter theme and get a ski season outlook. Squawk box returns in just a moment. 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. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. Im just looking over the company bills. Up . Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Kwelcome back, aemp. Both big stories this morning giving boosts to Global Markets. At this point the dow futures are up 150 points above fair value. The dax in germany up by 2. 2 . The ftse up by 1. 2 . Joining us now to tell us how much further this bull market has to run is richard bernstein. Great to see you today. Thanks. So what gives . Every time we think were down others are saying were here to catch you. Its odd theyve reacted to positively to Mario Draghis statements. I would argue he has no credibility. You know, two years ago or two and a half years ago he said the ecb would do anything. And credit in your region is contracting. You dont shrink your Balance Sheet. Now hes saying theyre going to expand their Balance Sheet. Thats probably good theyve contracted it a little bit more. Im a little bit confused. I dont think he has any correct and why anybody would believe him is beyond me. Thats true. Maybe this time he means pit. If he does, im happy to reposition our portfolios if he does. I have no ax to grind. I dont care one way or the other. You said if you do believe him that he would reposition your portfolio. How would you do so . Right now we are underweight europe and defensively positioned. We have very defensive companies, things like staples and health care and utilities in what little european exposure we have. If it changes and if they actually did something meaningful. Again, i want to point out theres no evidence that they are doing that. But if they did do something meaningful, youd want to switch to Cyclical Companies and smaller caps and things like that. But i would kind of wait until i see the whites of their eyeballs, so to speak. What do you think about where the markets are headed . We had siegel who said hes looking at dow at 18,000 by the end of the year. Hes not far off at this point. And then we have other guests who say it all starts over start january 1st when you reset the calendar. And underperforming hedge funds are no longer performing. Right. Honestly, i wish i was smart enough to tell you what was going to happen in the next six weeks. Im not that good. But i will say our story has been our if i remember for the last five years were in one of the biggest bull markets of our careers. We still think thats the case. I dont know whats going to happen in the next month. Im not even sure i can tell you whats going to happen in the next quarter. But i can tell you the gradual improvement in the economy is fantastic for investing. Thats the environment you want. And its kind of interesting that you were mentioning before i was listening before to the immigration. 1986 and all that. There are many similarities between now and 1986. In 1986 this was called a goldilocks economy. Today its horrible. Richard, heres the question. The question is whether thats already sort of baked into the cake. Weve seen the market melt up, if you will, all year in anticipation i would argue to some degree of what people think is going to be this better 2015. So if 2015 effectively as an economy doesnt outperform, how much more room do stocks really have to go . I would argue the markets roughly fairly valued which is where it should be in a midcycle environment. The interesting thing is theres no Investor Group that is bulled up on equities. Pensions are underweight equities. Wall street strategists are suggesting underweight. And most importantly from u. S. Equity mutual funds including etfs, weve had outflows in 24 of the last 28 weeks. Its almost six months of straight outflows from u. S. Equities. Thats not true about european equities, global equities, not any fixed income asset class. But u. S. Equities outflows for 24 of the last 28 weeks. All right. Richard effin bernstein. I was wondering where you were, joe. You were quiet in this whole discussion. I was disappointed. Have a happy effin thanksgiving. Same to you. Really same to me . Vuk a fairly good i dont want to know what that f is for. Its not an f. Its spelled effin. Whats your middle name . I dont have a middle name. It is richard. My middle name is richard. Like bernstein. Have a richard thanksgiving. Few stocks on the move this morning. Ross stores recording a quarterly profit of six cents a share. Better than expected sales and improving operating margins. Foot locker shares are higher a the company Beat Estimates on the top and bottom line. And comp stores also exceeded for its fourth quarter. Is that where im going today . Theres one in the mall. In the mall. Youre going buy the shoes online. Not the hooker shoes. Hooka. It sounds like a new jersey person saying hooker. Okay. Its your knees, my friend. A perspective of london you have to see after the break. And later, emarketers expect ecommerce sales to jump to 42 billion this year and to well over 100 billion by 2017. Weve got the ceo of paypalowned brain tree talking about how the company is setting itself up for success in mobile pay. Squawk box returns in just a moment. So open an account with schwab. And when a market move affects, say, a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. 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If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. You got to check out this extraordinary video. The freedom project is taking an eagle equipped with a video camera to various cities in honor of its 50th anniversary. The group hoping to use the eagle to draw attention to a species that are threatened with extinction. Theyll be doing similar flights in many other cities through the next coupling weeks. I dont know how they do it. You would think that would weigh the bird down. Pretty cool. Would you be afraid to do this . Had. Be a bird . Yeah. No. You never thought of being an eagle . They dont have much less than we have. Im sure theyre just as happy as we are. You could have one superpower, would it be flying . Yes. Probably. How about you . Although im afraid of asking. Maybe be invisible. I was going to go with that. Then id hear what other people are saying because they wouldnt know id be there. That wouldnt make you happy. No. So you could be the ultimate pervert that you are. Coming up, more on this mornings big market moves. Stay with us. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back to squawk box. Heres whats making headlines this morning. Television streaming service aereo has filed for bankruptcy protection. That comes after the ruling it was violating copyright laws. At t will pay 53 million for dumping illegal hazardous waste. And ann earned four cents above estimates. Revenue and sales fell short of expectations. And the meantime through the commercial break weve been continuing our discussion about what superhero power you would most like. Im taking back my invisible you dont want to. Tell me hes not a pervert. You want x ray vision dont you . No i want to teleport. Like that. I cant believe you took us there. I take mind control. In the control room they said we would wrap and not talk about this. We do need to. Moving on. See. Thats pretty good. That was pretty good. You still havent said what prompted you to pick invisibility. Because i thought invisibility meant i could transport myself and pop up where i want. Into locker rooms and stuff . No. Meaning i could get from here to california or london. Thats not invisibility. Thats transport. Lets go. See. The powers that be. Get to the markets. It is a big market day. And we probably wont hit 18,000, but where theres life, theres hope or whatever it is. Futures experience a big boost this morning because of two things. First, Chinas Central Bank cutting Interest Rates. Also ecb president draghi opening the door to qe. Joining us now is boris managing director at bks. His one wish for a power would be that he would be right. Being invisible gives you access to all the worlds financial secrets. That was my first thought. Its much better than seeing people naked. You get more power that way. He could make money on it. One of our twitter followers just tweeted in if you fly you could unvoid the masses in zone one. Anyway, boris. Speaking of inappropriate images, all morning long ive been thinking i had this image of all the worlds central bankers diving into a pool of liquidity while janet yellen sits on the sideline mine was as the sun comes up and moves across the world, each time it illuminates another part of the world they do another qe. And our markets go up on it. Which is classic. Exactly. Its kind of whats been happening. Its almost like a little game of central bank game of thrones right now. Because it moved the landscape at this point. You see the peoples bank of china, lower rates today. I think in part in response to that trying to make sure that everybody stays competitive. As a result of this, we have definitely this whole pool of liquidity where everyone is going one way and were going the other. Which is one reason the king dollar stays in play today. And youre not an equities guy, but i still think theres more to it than just the easy money. It seems there is a sweet spot here to some extent. Because corporations are doing pretty good. Oils down. Interest rates arent going up necessarily any time soon. Exactly. I was just talking to rich bernstein. Remember in the 80s because he and i were old in you have to remember it, you had a strong dollar, strong u. S. Equity. You could be in that cycle now. Thats right. Whats the opposite of stagflation . Where you get growth with low inflation. Thats like stagflation is the worst thing. Whats the other thing called . Goldilocks goldilocks. Exactly. Thats what he was saying. We may be hopefully in that scenario at least for the next 12 months which would be beneficial for all dollardenominated assets. I think that would be good. The other thing, by the way, you talk about lower oil prices. Everybody is bearish japan. But i think economically japan may bounce back because they had two very virtuous things happen to them. Both things should create a revival in japan which could be bullish. See, i think if you were invisible and made a bunch of money because you found out what everyone was doing, you would use it to fly. You would use the money that you made, why not just cut out all of it. You wouldnt want to do anything else. You could go over the grand canyon. I agree with you. I want to be my own drone. You wouldnt want to do anything else. And not to be but almost like teleporting because i could go fast. Youre interested in impressing the opposite sex. If you can fly, youre not going to have to worry about sneaking into the locker room, right . Im a happy married man. So i am. Answering everything with the same impossible answer. Theres nothing that can be good to say here. Except to tell you about the morning news this morning. Which is what im going to do now. The fed launching a review of how its doing overseas. The major banks, the regulators move after a series of critical reports. Asking the general to help with that probe. And lawmakers are looking into the Banks Holding commodities. The concern there, market manipulation and other risks from those holdings. Kit k kate kelly joins us now. It was a tough day yesterday for some of the biggest banks here at capitol hill. During an all day hearing, senior senators grilled them over their actions in the aluminum market. Demonstrating how in their view, goldman pushed up prices on consumers of cans and cars and other products by lengthening the weight through complex deals with clients. Pushing surcharges to an alltime high. Whats more, senator carl levin explained about that business was circulated to 50 goldman employees. And he expects they traded on that investigation. Levin who retires in a couple of months have made these probes into a Cottage Industry on investigations. And he described the bank behavior he uncovered here even after many of these as a particular doozy. If you like what wall street did for the Housing Market, you love what wall streets doing for commodities. Some of the same people who brought us the synthetic mortgagebacked security and with it the term toxic asset and the recent financial crisis. Now dominate the commodities future market. And probably notable, guys, at this time of such partisan r rancor agreed gave them just as tough a grilling as levin did. It was a day of fireworks reminiscent of the housing short hearing that they held a number of years ago. But this will be the final one for carl levin. Is there an expectation something will emerge as a result of this . Meaning is there an outcome . Today well hear from dan turullo whos been a key player in the ongoing. Commodity with the banks. And its within the feds power to tweak, amend the rules regarding banks owning physical commodities. Levin is trying to pressure them to take a hard line. So well see. He may make news today. Then of course well be following the new york fed hearing as well. And thats another part of the central bank, of course, that has some oversight on this. Kate kelly in washington, we will watch for all of those developments later today. Also the market place for online and mobile payments getting crowded from paypal to newcomers like snap cash. And then theres paypal snapped up by brain tree. Brain tree ceo bill ready joins us now with more on how the Company Plans to compete. First of all, thank you for joining us. Good morning. Help us understand this. Apple pay out four weeks. What type of growth have we seen from that shift . I think one of the interesting things thats happening in the industry broadly is people are shifting from their computing devices. Time spent on mobile is outpacing time spent on computers. Total transactions, mobile payments are still less than 1 oar so of total transactions around the world. And so i think its great to see e paypal has been in this place for a long time. But its great to see apple pay come in to help to push, you know swob we should wake up several years down the road and see that if people are using mobile as a primary computing device, most commerce should happen there as well. Theres a huge rising tide of how does that less than 1 of transactions occurring on mobile today get to 50 , 60 , 70 of transactions. So we partner with apple pay. Were one of the biggest partners of apple pay at the launch. Approximately half the apps were running on the brain tree platform. So weve seen a tremendous amount of demand from merchants for that. We think its exciting as another player joins the space, should help us get to that future where you have far more than the 1 . Explain this part to me. Tell me if im wrong. Rather than working at the register, thats a whole other bit. Really just the transfer of payments and cutting out the credit card. Is that right . Well, we dont cut out credit cards. Were the pay platform behind the successful apps in the app store. We operate one of the most successful apps that does nearly 3 billion in annual mobile volume. And we help to empower any way a consumer would want to pay in those apps. Whether its a credit card, paypal, apple bay, soon to be bitcoin. Any way thats going to be a great buying experience in the mobile apps. But were a mobile payment platform for anyone. Would you be long or short credit cards . I mean, ten years from now, will the Credit Card Companies still have i dont know if you would call it a monopoly, but will they control most of this market . Or do you think we would have found other ways to pay . I think the most interesting thing happening is that there is a totally different buying experience that consumers are going to come to expect. These sort of frictionless onetouch payments. Were doing that inside of paypal, apple pay. Much of that will likely ride on much of the existing financial rails. I think theres new financial rails being built. We build some of those at paypal. Bitcoin is an interesting one of those. So i dont think any of those are going to overtake the current financial system. I think a lot is going to be built on top of that. But interesting new alternatives coming in that are likely more prevalent over the coming years. What do you make of snap cash . Thats this new snap chat sort of disappearing transfer system. You know, we have our product is person to person payments. Weve been doing this for many years of blending mobile payments and socially 3 billion of that on an annualized basis. Its something weve been doing for a long time. Its exciting to see others coming into the space to familiarize consumers with more ways they can use their mobile device to pay. The more we have Major Players coming in, the more it helps to shift us from that, you know, less than 1 of payments on mobile to something far greater than that where we all expect we should wake up in a world five or ten years from now of course we use the mobile device to make our payments. The more we get legitimate players coming in, the more it helps to shift the Consumer Behavior to that so i think its fantastic. Bill, thank you so much. We didnt get to talk about security, but hopefully well have you on again and continue. Up next, rich snow birds eating up the Housing Market in florida. How the super rich are propping up the highend mark in the sunshine state. When squawk box returns. The Holiday Season is here, which means its time for the volkswagen signthendrive event. For practically just your signature, you could drive home for the holidays in a germanengineered volkswagen. Like the sporty, advanced new jetta. And the 2015 motor trend car of the year allnew golf. If youre wishing for a new volkswagen this season. Just about all you need is a finely tuned. Pen. Hurry in and get zero due at signing, zero down, zero deposit, and zero first months payment on select new volkswagen models. Its time to get to work are finally over, fixing our longterm National Debt to help build a stronger economy. With a solid fiscal foundation, we can create more jobs, invest more in innovation and infrastructure, and make america more competitive, giving our kids a better future. A bipartisan solution to our longterm debt means more growth today, more opportunity tomorrow. And the time to start is now. E financial noise financial noise financial noise financial noise when jack frost arrives in the north, the super rich escape down south. Robert frank joins us with more on some of the mansions in miami. Robert . Yeah, you know, there is one group that likes all this snow and freezing temperatures. Thats Florida Real Estate brokers. Brokers say the cold weather leads the wealthy to visit florida more often. They stay for more time. And that leads to more real estate viewing which leads to more sales. This year sales are up 6 . Much of that in the first half. Prices are up 19 . Brokers say this winter is already shaping up to be Even Stronger given the calls, the emails, and the showings that theyre already booking. The more time the snow birds and the snow flakes spend in florida, the more they buy. Its simple. They realize, you know what . We want a bit of a better lifestyle. We want a bigger home. We want to go from a dry lot to beautiful waterfront property. And they end up buying. Of course these are brokers so theyre always promoting, but florida saw a record year for tourism last year with just under 95 million visitors. And Real Estate Experts say there was a 40 to 60 increase in new york buyers last winter. Much of that along the coast of miami and dade counties. And aside from Better Weather and lower taxes, they are a bargain in miami beach. 572 per square foot compared to manhattan now 240,000. But if youre in the market for something better, heres something for you. A penthouse in the four seasons hotel, 9,000 square feet. Yours for just under 22 million. Maid service . Yeah. You get everything the four seasons has. Robert, thank you. We do have some breaking news out of europe. Michelle michelle standing by. The ecb announced theyre purchasing asset backed securities. They say a following the publication, the legal action of the abs they have started the purchases on november 31st. This is quantitative easing. Theyre going to start buying not necessarily government bonds. They said assetbacked securities. These with backs by car loans, home loans, et cetera. What we dont know is how much did they buy, what types of securities did they buy. But we know that mario draghi shaz said they want to buy a lot of this stuff to try to increase the Balance Sheet of the ecb by a trillion euros. Back to you. All right, michelle. Thank you. Wie can look at the markets. A take a look right now at our futures. Dow futures sitting at the highs of the morning right now up 158 points. Itll be interesting to see what happens in the european markets. Some were already up better than 2 . The gains have continued with the cac up. It was better when he was getting red did to do it all the time. The ftse up by 1. 3 . Maybe thats the point this time i mean it. Yeah. Up next, let the ski season begin. Morgan brennan is at Hunter Mountain this morning checking out how the first day is going. And maher gorgan, lucky you. Lucky me. Its 20 degrees here. And that cold weather is the reason were seeing ski season start for many places like this across the country. Were going to have the outlook for the season for all you snow bunnies out there when squawk box returns. Next week, its the countdown to turkey day. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. In a 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. We have breaking news for you. Dow chemical and third point reaching an agreement. Dow will add four independent directors to its board as a result of this agreement. Dan low had been threatening a proxy. Those four directors are those suggested by lobe. There will be a standstill agreement for one year such as third point will vote for these directors and wont pursue some form of proxy contest. Ski resorts couldnt have asked for a better start to the ski season. Morgan brennan is hitting the slopes to see how things are shaping up. Hi, morgan. Hey, well we are here at Hunter Mountain in new york where in just about ten minutes these slopes officially open for business. This is the first time in five years that this property has opened before thanksgiving. Its all because of that cold snap which has resorts all over the country feeling hopeful about this season. Weather is the single biggest factor for ski resorts and one reason weve seen profits shrinking for some companies despite higher ticket prices. Last season we saw a decline in the number of people hitting the slopes. It was 56. 5 million or just under the tenyear average according to the National Ski Areas association. That drought in california was something that could further that trend this year. Folks who are hitting the slopes are spending more. According to the sia, a record 3. 6 billion was spent on equipment, accessories, clothing for skiing last year. Its expected we are going to see americans spending another 3. 5 billion this year. Im going to hit these slopes. Its really cold, but eight feet of snow, looking good. Morgan, it does look good. Nice day, too. On the dow stuff, the release itself doesnt say whether third point will be allowed to pay those independent directors more if the stock hits certain price levels. I think that was the argument going back and forth. Talks fell apart after one of these golden leash arrangements. Third point wanted to pay its directors more money if the stock reached certain prices. Its important. Okay. I dont know. I want to talk to jim and get his opinion. Okay. We dont have time to talk to everything we need to talk to him about. Its a day we dont have enough time unfortunately, with his dad and everything else. Lets get to jim cramer at the new york stock exchange. You doing okay, jimmy . You bet you, partner. We are pros and everything. I loved your dad. I did my blubbering last night, hopefully you did too when your show started. You always put your arm around him. Thats what got me. You bet. He loved you. Thats at ginos. Ginos always let us have, for pops birthday, they let us have the secreter in sanctum. We always celebrated our birthday there. I know. I think youre doing better than me. We are blubbering fools. I spoke at both funerals of my parents and its very difficult, but you celebrate the life. 92. He loved you. He met you. We had dinner in philly. He broke my hand when he was 0 with the handshake. He was working out till how long ago . Till three years ago. Amazing. What struck me last night, you were a cute kid. What the hell did you see . You were a cute kid. What the hell . No, youre still cute. Ive got a goodlooking mom. Thats the secret. She was pretty. Im sorry. Its all right. Good to see you. Now, jimmy, my question with draghi do we get an acceleration on this . We need germany to say we are onboard. Lets do a trillion dollar infrastructure. Without germany, this is one guy fighting against a whole country that really matters. I like china much more. China looks like housing cooled enough they are able to start taking rates down. Chinas the driver. Im thrilled. Jim, can i ask you about the dow chemical stuff . The back and forth was the golden leash. What do you think of actavis . I did something for ray when he retired from foster wheeler. Miller, we had him on tv a lot. They want to break the company up. I think this is andrew, whom we all know, has tried to work with lobe. This is another example trying to work with lobe. I think hell be helpful. Well see what happens. Hang in there. Thank you to everyone who has sent good ill try to get to everybody. All right, jim. It is now time for the squawk sound check. This is a look back at the week that was on squawk box. Did we stay on the current path . It would make sense to raise rates some time during 2015. You cannot help yourself. This new yorkcentric i think we better switch topics. Thank you. We could be at 20,000 at the end of 2015. We brought up an issue. We had a very heartfelt debate. At the end of the day, we fell short. The bottom line is we know this is going to pass next year. Thats it for squawk box today. Look at the futures one more time. Its going to be whether you attribute it to china or the idea he might do something, then he did it, draghi with buying some assetbacked securities. Join us monday. Squawk on the street is next. Good morning and welcome to squawk on the street. Im david faber with jim cramer. We are live from the new york stock exchange. Lets give you a look at futures this morning. We are set for a broad rally right now as a result of things you just heard about on squawk box. Well talk about, as well. How about that tenyear note yield . Im curious to see where it is myself. Okay. There we are. Crude oil is up. I know that. For the first time. We are not yet anywhereea