Transcripts For CNBC Squawk Box 20161004

Ground. Wti still above 48 trading at 48. 43. Other top stories were watching, currency markets. Sterling dropping to the weakest level against the dollar since june of 1985. Now the plunge in the currency after uk Prime Minister theresa may said shes going to trigger the start of brexit by the end of march. Also a little bit of corporate news. Shares of Deutsche Bank rising in german trading. Remember markets in germany were closed for a Public Holiday yesterday. Big question, of course, will a Justice Department settlement be favorable to the bank or not . Deutsche bank getting a strong vote confidence from a big name and competitor on wall street. Heres jpmorgans ceo and chairman jamie dimon that believes the german lender will be just fine. Theres no reason that Deutsche Bank shouldnt get over its problems. They have plenty of capital and play liquidity. We want these banks to get through. Its better for everybody that we move on and help do our jobs. More on Deutsche Bank coming up in just the next hour. On todays agenda heres what we got. Gentlemen have jeff lacker speaking this morning at 8 00 a. M. At 8 00 p. M. , Charles Evans will speak. Hes a voting fomc member. On the earnings front, darden restaurant, parent of our faurcht oligarch reporting before the bell. Got some pasta going and, come on you like it. Dont pretend you dont. Its not me pretending like you go to olive garden. Youre carmines where calamari costs 42. Come on sorkin. When was the last time you were at olive garden. A year ago. Whenever we go skiing in utah before you get down the service road at the bottom theres an olive garden on that main strip there. I have never been. Youve never been to an olive garden. Ive been to carmine. Somebody took me there. Stocks to watch today. The jumbo thing has entered in my life. This drug, do executers do it. Do you think Computers Come up with new drug names. This is still people. So there are a lot of combinations out of our sounds like brilliant. Out of our 26 letters you can do a lot. In this case its astrazeneca, a heart drug they decided to call it prilliant. It failed to show a benefit over an older blood thinner that was used to treat be patients with serious circulatory problems in their legs. The setback follows some disappointing results in march with the some drug in a Clinical Trial in this case for stroke patients. The stock is up. I dont know. Were saying it failed to show some movement and the stock super. A Company Called team health top Physician Services Company Buying florida emergency physicians. Terms havent been disclosed. Fep provides Emergency Medicine Staffing for 6,000 patients a year across florida. Cypress semiconductor is caught 500 jobs or 8 of its workforce google is holding an event in San Francisco today where its expected to introduce a new hardware. Going to be taking on amazon and apple. The most strategically important product is google home. Its a stock market speaker that challenges amazons echo. More detail later today. Other products include two new smartphones to compete with apple and samsung. They will run the latest high end android features and said to cost more than 600. Some other items we might expect is googles version of video streaming stick. Chrome cast. The new day dream Virtual Reality head set for gamers and routers to spread Wireless Connectivity through your home. San pedro. When was the last time you were there . Sometime in the past year. Ive been there before. Been to olive garden. Thats where youre trying to go. Thats where were going. I got it. Trail bend. Youre working on it. Its a problem. I havent bean while. I should go. Good idea. We digress. Youre used to this. You guys are all right. Okay. Well be with you in a second. A misstep for facebooks new marketplace feature. Already . I just heard about this, i think launched yesterday. The social network oh, there it is launched the app allowing 1. 7 billion users not 1. 701 billion because im still not users to buy and sell each other through its mobile app. Thats right. Similar to craigslist. Within hours users were selling stuff that violates at a minimum facebooks user agreement. Some listings spotted including all these great things, drugs, sex, weapons and even if you need a body part you can apparently get one yesterday. Facebook issuing an apology late last night saying a technical issue prevented it from identifying posts that violated its community standards. Filters were not working. I need an example of the body part that was up for sale. I dont think you can sell a liver. Maybe you can sell part of it. Its a blarkt. A person who is selling their liver. If i had to part with one thing i dont want to give my little toe. You have some fingernails. Like Howard Hughes things long curly ones. Lets get a check on the markets. Joining us to talk more about it is the president of Wells Fargo Investment Institute and chief Investment Officer of wells fargo wealth and Investment Management and david joy who is chief Market Strategist at ameriprise financial. Welcome. We feel were in this new quarter, the last of the year. We feel were in a new month that could have a lot of volatility. Do you worry about the same issues . What do you think . Yes. But the markets so far is moving in the other direction at least in terms of volatility. We had a spike in september and the vix is down 13 or so. While were worried about earnings growth, the election, what the fed might do, markets is taking this all in stride and somewhat surprising. Does that mean you think the market is at high levels, that you dont like the valuations here or does that mean this is just a powerful market and would you ride this . I think the market is saying we expect attorney generals start to turn positive maybe as early as the Third Quarter. Certainly by the fourth. So valuations are okay if we get that follow through. What do you think . I would agree with david and say, i was looking at this the other day. When you look at the broader long term cycle this recovery cycle has been half as last gdp growth as we know but half as volatile as any recovery postworld war ii. Because of the feds influence. Because of global central banks. Its across equity, Interest Rates, equity markets. Volatility has really been unprecedented at low levels and the uncertainty from investors is really high. Investors are not willing to commit to new capital. What does it mean for somebody looking at markets now. Historically thats a bullish indicator. Theres a chart i use showing Consumer Confidence that hit 104 last week. New cycle high. If you look at Investor Sentiment its below 08, 09 levels. Not surprising given all the shocks all the things they dont trust about the system. Its hard to look historically and say it will come back because this time is different. You can get investors coming back. Were starting to see in the latest fund flows, households coming back. Youre not getting positive equity flows from pentecosts, Foreign Investors or mutual funds. Does that surprise you . I dont know it surprises me. Lions share is coming from share buy backs. Youre getting from some individual investors and share buy backs. So fwheed to balance that out. Can we talk about whats happening in europe today . If you look at the weakness in the sterling sthrks weakest level thats been against the euro since the brexit vote came through. Helping to boost stocks. What do you think happens over the slightly longer term . We loaded the beneficial aspect of brexit with the weak currency but theresa may apparently said just yesterday that shes not going favor the Financial Services sector and all of a sudden thats whats given rise to this weakness. Part of her comments immigration is something they are more concerned about than nang the trade partnership. She wants a National Sovereignty is her big issue and its not whats best for the city. And so i think you are seeing some weakness there. This issue of Deutsche Bank is still lurking in the background. I think theres some nervousness about the health of the european banking system. They do have access to a lot of liquidity but certainly they are struggle frlg a profitability standpoint. You know they will have these problems for a while. Not talking about a meltdown but investors potentially not having a whole throat write home. Maybe a little bit of loss of confidence. Are you invested in uk companies now . The argument to be made the Sterling Company down will help certain companies. Sure. Were underweight uk from a high level point of view and have been for some time. A lot of that index which is the way i think about it is energy centric. And that has bean great place to be. Weve went under weighted the uk for a while. Theres a big slice of that market that does get a benefit from a weaker currency. One of the thing weve been talking about is this increased protectionism. Deutsche bank is one example of this where we wonder if regulators here are picking up because of the eu apple fines and eu going after 10 of googles revenues because of anticompetitive things. Maybe this is not tit for tat. You do see a rise of protectionism around the globe and do you see trade being a dirty word in our elections as well as elections that you see in other places. What does that mean . I think any time you start talk about imposing trade barriers thats not good economically and not good for global profits and the countries in general. I was looking the other day, tariffs have come down from all the goods coming into the United States, for example, have come down from having 20 tariffs if you go back to the Great Depression now to 1. 5 of goods coming into our country have import tariffs which are agricultural and pair weapparel. If you raise that that has questions how you get Global Capital goods and trade to become economic drivers. I read something that the cbo, Congressional Budget Office have scored trade packages over the last 20 years including nafta and come away with a sense that its been slightly better for our economy but workers who have struggled mightily. Is it worth the tradeoff . Yeah. I think it is worth the tradeoff. You end up still getting the global tide is raising all ships. You need to understand and let capital flow where it has to flow to find its most common value. It does, no different than when you had farmers moving into, you know, industrial and factory jobs, you had kind after displacement period of time where you create this air bubble and air pocket. It was a displacement within our own country not a displacement where our workers suffer for the benefit of workers in other countries. You have to let capital flow. We dont. We dont. Its not used effectively and we waste it an productivity goes down and gdp doesnt grow as much and fewer people come out of poverty and nothing works as well but theres nothing that says we have to because we certainly dont. You dont have to. Good idea. Good idea. Economically Corporate Tax rate for how long . Capital is fleeing this country. And politicians are well stop it. For tax reform, the only two countries in the world that have higher Corporate Tax rates than the u. S. Is chad and united arab emrates. Coming up Vice President ial candidates facing off in virginia tonight. Tim kaine is from virginia. John harwood is there and joins us next on what to expect. Both mikes will be working tonight. Who is nifg. Later in the show well talk to the managers of the trump and Clinton Campaign. I wish it was at the same time. But it will be good enough. Kellyanne conway and robby mook. Rhymes with hook. Guess what guys, i switched to sprint. Sprint . Im hearing good things about the network. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your Small Business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Hurricane matthew set to hammer haiti today and the risk to the southeastern United States is rising. Weather channels kelly cass joins us with more. Good morning. Its already hammering haiti at this hour. We have the outer rain bands reaching into haiti. Portions of the Dominican Republic and even the eastern end of jamaica. Weve had reports of flooding there as well. Got the storm surge and Tropical Storm conditions that extend outward about 200 miles from this clearly defined center. Look at the eye right there in the middle. Were talking a high end category 4 hurricane. Very dangerous in terms of storm surge. Heavy amounts of rainfall likely here. We take the path right over eastern cuba. After making landfall on the western tip of haiti we do expect to feel the worse of this storm in eastern cuba by wednesday morning with winds of 130 miles per hour. Not doing much weakening either. Over very warm water right through the bahama islands. Not going that quickly. Raining hard. Much of the southeast is now in that cone as we go out towards the weekend and still keeping those winds on the high end as well. So beach eremarks rip current as threat even if we dont get a direct hit from the southeast coast. Hurricane warnings are posted in the purple from the bahamas through the eastern half of cuba. All of haiti under a hurricane warning. Jamaica is a Tropical Storm warning as i mentioned those Tropical Storm conditions already battering the island of jamaica and well continue to see torrential downpours with this system. Were talking well over a footandahalf of rainfall but andrew some isolated amounts perhaps 30 to 40 inches of rain and in haiti where we have deforestation across the hillsides that could be devastating in terms of flash flooding and mudslides there. Back to you. Very selfish question. Were doing a squawk the vote down in jacksonville, florida on friday. If i were to want to fly there from new york on thursday what do you think the chances are this is going to happen . I mean friday into the weekend it makes its closest approach to the sunshine state. Governor has declared a state of emergency for all the counties in florida. As we take a look at the path once again the forecast track for matthew we do think it will get very close to the east coast of florida. Jacksonville certainly could get in on some of those heavier rain bands by the time we get to friday overnight into saturday as well. Yesterday we had terrible flooding in st. Augustine. Thank you. Maybe we should go to another swing state this friday. The frief to florida, youll see a lot of the country. We were going get a squawk the vote bumper sticker. That works. A winnebago. Talk to people in every state. Maybe well do that. Be good four too. Get out of the studio. It doesnt matter, youll be fine flying. Im worried whether ill get back to you on monday. You could go through the eye and be fine because you always come back. Lets continue this political news. Hillary clinton taking a shot at wall street on the campaign trail yesterday. It is outrageous that eight years after a cowboy culture on wall street wrecked our economy we are still seeing powerful bankers playing fast and loose with the law. Hillary clinton was referring to john stumpf at wells fargo but jpmorgan chairman Ceo Jamie Dimon took issue with what she was saying particularly lumping everyone into one fell swoop. He responded during an interview on power lunch yesterday. When people blanket a whole class of people by making statements i think thats just unfair to everybody. I can do the same thing about media, i can do the same thing about politicians or lawyers and it is just never accurate. This business is full of high quality, qualified, talented, ethical people, smart and ethical as youll find in stoorgss almost anywhere. I wish people would stop doing that and figure out pembroke the law should be punished. Lets take a deep breath. You all in the press dont have to fuel it all the time which is adding it, over simplifying it. But ill still be voting for. The countdown is tonight in the first and only Vice President ial debate. Mike pence and tim kaine face off at longwood university. Its got an interesting history. Where the civil war ended, just one end of its campus and civil rights pretty big civil rights movement. A serious event happened there too. John harwood joins us now. People kid around and say if the first one was Ollie Frazier this is like the meeting of a book club on a tuesday night or something. But i think it should be interesting. There may be some policy discussion that might break out, surprising everyone, right or not . Will they just trash the opposing head of the ticket, top of the ticket . Reporter well i think there will be a lot of that, actually, joe, especially in light of the tax story that donald trump has been dealing with for the last 48 hours. I can imagine a lot of the questioning will go to that subject and i think on mike pences part hell try to redirect as the republicans have to Hillary Clinton. So i think there will be some focus on policy and some focus on the individual qualifications of these two men who by all accounts are mainstream figures within their parties and the kind of choices that were used to seeing in past years. But this year, the top of the ticket gets such outsize attention i expect that will likely dominate. You work for the New York Times and theres another fine journalist that works there that writes a good column every tuesday, it is ago cross from. I hope youve seen it today. Save this tape. These nols, its just the way corporations use the tax code, im not saying that every corporation that their main unit are accountants going through the tax code, but they usually got a couple hundred, anyway, that are looking for ways to do things. Reporter yes. Whether its General Electric. General electric, Great American company, but things happen. 2008 they had huge net operating citigroup huge nols. Sometimes Companies Even buy other companies that have nols, get rid of the assets and save the nols to go forward. Apple hundreds of accountants looking at tax rates around the world. Finding ireland. Lets do this there. Andrews point is that trump is small time compared to a real American Company on how to take advantage reporter hold on a second. Donald trump in 1995 claimed 2 of all the net operating losses in the entire country. Thats not small time. 2 of the entire country. Legal or not . Reporter i assume its totally legal. There was some kind of settlement that took place later. Reporter heres the question. Were the losses that donald trump claimed that were a shield against 50 million worth of income every year, were those actually losses he incurred or losses that he was able to claim because of the real estate law but were incurred by other people . I understand. Reporter i think thats the question. For example, i read somewhere yesterday General Electric bought some enron assets and there were net operating losses associated with enron. I dont have this absolutely confirmed but after reading all these things thats not unheard of either, john. Reporter im not saying its unheard of. Its been examined by the irs. The point is theres a way of looking at all these things and if you come to the conclusion that a ways of looking at avoiding taxes does that allow a private company or a Public Company to keep more to do what its doing to expand plans, to hire more people, to do this . Do you look at it that way where it helps a company succeed and operate by keeping it to use for corporate purposes or do you say youre screwing the fireman and youre not paying for defense, youre not helping with the roads, so depending on whether you want to press someone or support someone on it its the two sides. Thats my point. Just to say all the reporter i take your point. All the middle class people have to pay for everything and youre not paying for anything but can you say that you can said about apple. Because youre talking about tens of billions of dollars that if it wasnt set up a way where it would be domiciled in ireland that tens of billions would be going firemen and hospitals and everything else. Is this Corporate Taxes or personal taxes. In real estate its all together. Reporter joe philosophically some people think you should maximize taxes, that thats a good use of capital. Other people think capital should be left in the privatesector. Reporter joe, i take your point. Its a good point. Dont you think the way to look at it is on a case by case basis and see what the circumstances of the individual case are and the minute i find reporter how real transparent losses and that sort of thing. In a perfect world. The minute i hear legal, okay you have a problem with the tax code. Right. Which begs the question will donald trump change the tax code. You have to decide im more interested in Overall Reporter joe, the House Republicans had a provision that would curb the use, in their tax plan that would curb the use of net operating losses. That is not in Donald Trumps tax plan. Okay. I dont know what final one i dont know what the final plans a lot of conjecture. I dont know. Well see, john. We will see. We will see. Reporter you watching tonight . You going to stay up until the end. Starting at 9 00. Set me back last week. Set me back for the rest of the week. I was up to 11 00 that night. Im old, john. Look at your hair. Youre gray. Youre worried. You can do it. Reporter really . To watch the veeps . Maybe ill record an episode of veep and just watch that. Anyway. Reporter be good. See you. Coming up, Gig Economy Company likes uber have changed the game. Are the tradeoffs of convenience putting American Workers at risk. Well have that discussion. As we head to the break take a look at yesterdays s p 500 winners and losers. Who are you . Im vern, the orange money retirement rabbit from voya. Vern from voya . Yep, vern from voya. Why are you orange . Thats a little weird. Really . Thats the weird part in this scenario . Look, orange money represents the money you put away for retirement. Save a little he and there, and over time, your money could multiply. See . Ah, ok. So, why are you orange . Funny. See how voya can help you get organized at voya. Com. Okay, so you launched your banks app. Now what . How will you keep up with the new demands of todays Digital Economy . The fact is some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial Services Companies Think digital, be untraditional, and reimagine what the bank of the future can be. Our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. Were creating new platforms across channels so customers can effortlessly invest, borrow, lend, transactwhereverwhenever they choose. And were digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. Digital works for banking and Financial Services. Lets talk about how digital works for your business. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back to squawk box, everybody. This is cnbc. Weve been watching the futures this morning and they have been slightly higher building on yesterdays gains. Dow futures are up but only 11 points. S p up by under a point. Nasdaq up by 11 and a half. Sterling dropping to the weakest level to the dollar since june ever 1985. Plunge in the currency coming after uk Prime Minister theresa may said she would trigger the start of the brexit by the end of march. She said this yesterday. Whats more concerning in her comments was the idea she said shes going to make sure immigration and a right to refuse anybody coming in to the country is front and center and more important than maintaining trade relationships with temp your honor. That resulted in this drop to the lowest level since the 80ss. Build a wall . I dont think she needs to. They have water on all sides. They are an island. Look, the real power behind the brexit vote was concern about that. Thats what i mean. So its not going good. Not just here. I mean, if you were in the uk and you were used to sovereignty and then all of a sudden you had some terrorist attacks on your soil. See what happens to their economy. 1. 26 on the british pound. At the moment. Youll see what will happen. Were counting down to jobs friday companies that make up the on demand economy like uber, lyft, said to be shake up the labor market. Are workers being cheated in the process . Thats a conversation well have now. Joining us to talk about this and the role of the gig companies, steven hill author of raw deal how the per company and runaway capitalism is screwing American Workers. Help us understand what you mean by this. What do you mean . Good morning. The problem is when you have Companies Like uber and task rabbit, some of these new online, on demand companies they specialize in, they themselves only have a small number of regular employees. But they use technology to hire an army of freelancers and contractors and those freelancers and contractors really dont have any kind of safety net, any health care. They dont even have injured worker compensation. If they get injured on the job, something happens to them they have to pay for it themselves. If they have to miss work because they are injured theyve pay for it out of their own savings. They dont have any paid sick leave. These are not great jobs. These are the types of jobs that have replaced many of the good jobs as they are called that we lost in the Great Recession of 20082009. This is where the growth in our economy in terms of Job Development is happening. I wont disagree with but ill ask you this. Theres an argument to be made at least for some this is a new economy that allows certain people who have jobs already to get a second income, people who want to have more flexibility. Do you look at any of this and say theres a benefit . Certainly i would say if youre working this way and its working for you then keep doing it. I interviewed a lot of uber drivers, for example, and typical tune you hear is, First Six Months they say oh, yeah this is working okay, im make being some extra money in my spare time. You check back in with them eight months, ten months into their experience and then you hear a different tune because at that point its really a very unilateral platform. Uber cuts the amount they give to drivers on a very unilateral basis. They can cut off the platform at any moment. Drivers have a sense they are not a partner as uber likes to call the drivers. They are just kind of, one driver said i feel like im on the bottom of ubers shoe. These are the type of jobs being created. I think we have to ask ourselves can we do better . Especially when these workers dont have access to health care. Its quite expensive to buy it on your own as an individual. You know, can we come up with a way to make it okay to work part time. Thats the real challenge. In the day and age of technology thats creating this sort of gig economy, freelance economy and i think arguably the sort of steady march of technology is going to move us more and more in this direction, what do you do about it . Well theres a few things i think we can do. One is we need to create what i call a portable safety net. The idea that, you know, regardless of who the worker is, whether they are regularly employed or freelancer or contractor, whatever the type of employer is that they can get from that business who hires them a certain amount of support in terms of a safety net. So used to be a lot of workers worked full time for a single employer. But now more and more workers working part time for multiple employers. So the safety net was never geared for this type of worker. What we can do have each business that hires this worker pay a little bit more above the wage into what i call an individual security account that would be prorated to the number of hours that worker works for that business. If you work ten hours they would pay about a inquiry of what would be a full time safety net for that worker. Then that worker would use that, those funds to purchase her or his safety net. I think if we do that that would do a lot to relieve some of the anxiety that we see in the labor force thats leading to workers feeling so unsettled they are looking at candidates like donald trump. Hes speaking to these issues in some ways. The economics, though, of the business, to the extent that we were to add on some of these additional fees and taxes to the companies, given that with the exception of uber and some others most are relatively unprofitable business. Does this whole world go away you mean the whole world the gig economy lives on a razor thin margin. Im trying to understand economically how much in terms of taxes safety net we can add to that and have that business still thrive to the competent you want it to thrive. Sure. And be able to take care of employees. Well, ive done some Economic Modeling on the proposal i just put forward using bureau of labor statistics. What it shows for Service Sector workers it would cost an extras 2. 50 per hour to pay for a comprehensive basic safety net for these workers. Its not that much. If all businesses are subject to this then no one is hurt compete swrifly more than any other business. They pass the cost on to consumers because thats ultimately the biggest pool of people that can pay for this type of insurance system. So i dont think its going to negatively hurt businesses. In fact the economy would adjust quite well. A lot of people said raises the minimum wage would hurt workers ultimately. Theres none of of that. The economy adjusts to these sorts of things. Its a matter of how do we more broadly share the prosperity and doing it in a way that doesnt negatively hurt these businesses and prevent them from innovating but does allow them to pass on some of the gain they are making to their workers as well. This is aldoable. The other thing we need do is data is emerging as a huge battleground in this new Digital Economy that these workers they need to know who each other because they are working anonymously. Its very hard for them to organize and, you know, Work Together to improve their conditions. So having the data that allows the home fine each other also becomes an extreme lui important issue as we look forward in how to make this new Digital Economy work. Steven, thank you for the conversation. Its an interesting one and a debate that will continue. Appreciate it very much. Coming up wikileaks founder Julian Assange speaking in the last few minutes and said theres some big disclosures coming that could shake up the election. As we head to break heres a big check in whats happening in the european markets right now. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Welcome back to squawk box, everybody. Again the u. S. Equity futures a little bit higher but coming off the highs of the morning. S p futures have turned around. Down by less than a points. Dow futures up by five points. Nasdaq up by nine. This does come after a day of gains yesterday. Right now time for the executive edge. New report shows political risks like brexit and the u. S. Election are scaring companies from making deals this year. Global m and a volume has slipped 22 through september to 2. 5 trillion. This would end a three year winning streak. Technology is the most active sector for deals with 745 billion worth of tie ups. Volumes last years sector, health care down 8. 5 . Election takes part of this. Theres a whole lot of other issues like market valuations. News out justin last few minutes, wikileaks Julian Assange promising ten weeks of disclosures. Subjects include u. S. Election, oil and war. He was speaking in commemoration of 10 Year Anniversary of wikileaks. Worth noting there were some cables that Hillary Clinton wanted to take him out with a drone that might be his inspiration. Hes mad. Hes been mad for a while. The battle for the white house is extending to internet to name names. Wired is reporting Trump Campaign now owns the site clintonkaine. Com. The page is a host to a collection of negative headlines about Hillary Clinton and running mate tim kaine with a small tag at the bottom indicating who owns the site. The former owner bought the demand in 2011. Thats thinking ahead. Usa today reports he sold it for 15,000 after the Clinton Campaign offered 2,000 and then during the republican primaries the Trump Campaign bought jeb bush. Com which would be directing people to its very low Energy Official website. Thats really good. Speculating. I got it. Low energy . What should we pick foupt speculate right now for next time. Four years. Paul ryan something something. A lot of money trying to figure out who it will be four years. They are all ten bucks. You can spend 1,000 and still be wrong. I like your thinking. Paul ryan in four years. Trump wont be running for reelection, of course. That was not my thinking. Of the many options might be out there. When we come back, everybody, who will run against hillary in four years. Red flags in new York Real Estate market, rocket frank has got a very special report on the signs of a slow down. Were back in a not. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Welcome back to squawk box this morning. The high end new York Real Estate market showing some signs. It was the worst Third Quarter in more than five years. Real estate sales in manhattan falling 20 in the Third Quarter compared with a year ago. As wealthy buyers are basically pulling back spending on new luxury condos and a lot of those New Buildings are piling up unsold. Lets take a look at those numbers there. There were 3,000 sales in manhattan down from 3600 last year. Thats according to a report from miller samuel. The number of properties for sale also rose. The time it took to sell a property went up. Theres now a six month supply of inventory. Thats still fairly low on a nationwide basis. For new york its much higher. Now, bidding wars are fading and discounts are getting more common though discount is a relative term in a city where the average price is 2,032,000. Especially the trophy apartments in condo towers. New development jumping 27 in the quarter. Thats growing two and a half times faster than the inventory of retail apartments. And its likely to get worse. Artificially inflated by apartments that went to contract in 2013, 2014. Theyre only closed now because the buildings are finally being completed. An 88 million penthouse at 432 park avenue. Its also the highest residence ever sold in manhattan. And went to contract in 2013. The buyer at that time reported to be a saudi retail magnate. Not many right now where oil prices are where they are out buying 88 million apartments. It was high. Thats what you were saying. Right . That was my question. 1400 feet high. I think that building is 85 stories. Wow. That was my question. You know, if you could pick one in new york city, do you get the five floor townhouse on the Upper East Side or one of the top floors with Charlie Sheen buddy fox floor to ceiling i get nervous being that high up. I do too. No fire escape. The services. Would you go for the high . You open the win done and youre blown you cant open the window. So you want the five floor townhouse. With the butler. And the private garage. Otherwise then you have to go high. You like high floor to ceiling glass. For the services. Like doorman . Oh, these buildings have way more services than a doorman. They have spas, play areas for your kids, pools, gyms, dry cleaners. They have all this stuff. You never have to live. Its like living in a hotel. Living in a city so you dont have to leave. Cruise ship. That sounds like a cruise ship. 88 million is just like thats stupid money. I mean, that is like even having that much its oil money. Yeah. Would probably sell for 100. Not right now. So you like the services . So you might go for one of those . No. I think stick with the yeah. Stick with real life . Yeah. The townhouse. Down to earth. The multimilliondollar townhouse. For me its the secured, gated community. Where no one gets in. No, im kidding. Thank you, robert. Theres a pitch to save new yorks famous Carnegie Deli from closing. Yesterday a former dishwasher of the business announced a 5 million offer to buy the deli known for pile high pastrami and corn beef sandwiches. Ive been there. Its great. No word on the i didnt understand why it was going to close. It seems like a viable business with a great brand name. Real estate is pricey. So its hard to pay the rent. The pastrami sandwich already is about 18 bucks. Seriously . Maybe more actually. When we come back, tonights Vice President ial debate in focus. Were going to speak to the Campaign Managers. Kellyanne conway and then robby mook. Squawk box will be right back. This is me, using a wrench to build a jet engine. Well we thought ge programmed machines to talk. Ge is an Industrial Company that actually builds worldchanging machines. Machines that can talk to each other digitally. Hello . They dont talk to each other like that, ricky. Shhhh, youll anger it. He looks a little ticked off now. The pound pounded. Brexit fears are back and no settlement for the doj. Well hear from bob dahl on the issues that matter most to your money. Your money your vote. Trump Campaign Manager kelly an conway joins us to preview tonights Vice President ial debate. And matthew on the move. The category 4 hurricane hitting haiti. Will it threaten the east coast of the u. S. . That latest track is straight ahead. The second hour of quarterback begins right now. Live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and andrew ross sorkin. The futures at this hour are flat sort of begin but up. The nasdaq looks good up ten points or so. And the dow up ten. Couple stories this hour. The pound slipping to a 30year low. Yesterday uk Prime Minister theresa may set a march date to start exiting the european union. And the ftse rising on a weaker pound. Also Deutsche Bank getting a boost overseas this morning. Remember the market was closed in germany yesterday. You didnt get to see the true action there. The banks still trying to hammer out a deal with the Justice Department and so well see whether a deal gets made and at what price. Finally we will be talking about the implication for u. S. Banks with robert albertson. Shares of astrazeneca under pressure as well. The heart drug brilinta failed. Google expected to unveil new smartphone they invented today. To be released under the pixel brand. Along with the new phones google expected to showcase some new hardware including a voice controlled speaker system to challenge amazons echo device and a Virtual Reality headset. Im looking forward to checking that out. Yeah. You like the Virtual Reality headsets. But also this google home is. We have the echo house. Its named alexa. We actually had a woman named alexa which was confused. So your house is bugged. Only in one room. Dont talk about me in front of i dont want to have that come out or something. Okay . We turn the sync on. Had another awful day we whisper. We are watching shares of netflix this morning as well. That stock closing higher by more than 4 yesterday. On wall street chatter disney could be looking into purchasing the streaming company. Disneys been looking for ways to beef up its streaming interest. In august the Company Invested a billion dollars in bamtech. And last year they launched disney life. Its a netflix Style Service for its movies and tv shows. Itll be interest to see if that pans out. I remember doing an interview with them last year and said this is weird. Why does this make sense them sitting together sfp this was a vanity fair thing. Its a small world after all. That was clever. Thank you. Risks such as brexit and the u. S. Election are scaring companies from making deals this year. According to a dealogic shrimped 22 in september to 2. 55 trillion. The most active sector for deals in tech. Volume among last years top sector, health care is down 48 . Why would anyone want to get a brand new, like, phone that is like totally different from what one that you have . You know . This is from a man who doesnt like change. But the google thing. Im just thinking about what it would take to learn it. And to transform the rest of your life over from it. About all the downloading from my iphone. Now all my emails like if they come from one person, theyre on top of each other. What happened . I cant and thats just a new operating system. People used to complain about that. Stuff would get lost. These phones are not going to be that different. Theyre going to have a different brand. Theyre going from google nexus to google pixel. All right. Nexus going see, this is why apple has you because you live in their universe. Your live in their sphere. And with your music and everything else, your photos there, the idea of transferring is daunting. Apple music changed a bit with this operating system. I couldnt figure out how to get off of shuffle for like a week. So i wanted to just listen so something one song after the next like im used to and i think im the one whos technically challenged. I finally found it now. Tweets. You know when you send a tweet to someone, you know, you used to hit something at the bottom. Those three little dots. You could forward a tweet. I didnt think they were letting us forward tweets anymore. Now its on the side. You press that to find. But it took me a week to find that. So even the operating system thats why i havent downloaded the new operating system. You should host a separate show in addition to the current show maybe in the evenings called Technical Assistance with joe kernen. Then you could go through all of the different new functionalties of Technology Every day that you learn about and tell the public about them. The comedy channel has some openings in certain hours. Theyre probably going to have more. As the Fourth Quarter gets under way and factors that could sustain a rally. Were joined by bob dahl. Chief equity strategy and senior Portfolio Manager at nuveen. Earlier, bob, you know, were a Business Network but its this debate tonight. Okay . And we cant help but be sort of in a i dont know. There are things that arent usually associated with normal Business News that are happening. Only every four years but its a real thing, isnt it, bob . Maybe earnings. Once we get to earnings season well be there again. Maybe its back to business as usual. But were kind of held hostage by politics. We are. But i think we way overdo the importance for the markets of who sits in the white house. 90 of what Hillary Clinton is saying, 90 of what donald trump is saying they wont be able to do. The House Republicans wont let them. So its silly season and its a good reason to sit on my hands and not do anything. But i think the day after the election the markets going to wake up and say okay thats who won now hows the economy and earnings doing . Thats what matters. Do you think lets go to whats been paramount in the last five years or so. Thats the fed and Interest Rates. Are we headed finally above 1. 7 or the other way to test the lows in yields as growth isnt up to par . My guess, joe, is that 1. 37 recently on the 10year treasury was the low and we are in a multiyear bottoming process for rates. I dont see rates jumping much. But i think the path of least resistance will be higher. Inflationary numbers are picking up a little bit. Real gdp is ho hum at two. I dont think the 10year treasury should stay at 1. 70. I think theyll drift higher. So the Second Derivative at the ecb and japan, have they passed it to where theyre no longer becoming actually easier . Or are they still in the process of actually getting easier or have they started at some i dont think they are. And not that were held hostage globally, but, you know, can we go the other way with them still, you know, full bore headed towards easing . They are full bore. Still an issue in japan and parts of europe. Which is among the reasons why the fed has been so slow to raise rates as you know. Many of us would have argued the fed should have gone sooner. They are fearful if they raise rates theyre going to trigger a dollar rally and well be back in the soup. I think they will still gingerly move forward and keep their eye on all those variables. Youre right. Were held hostage but only to a slight degree. Theyve got to watch the nominal gdp number. Its still slow. But real is running two and inflation is heading towards two. That means nominal is heading towards four. I dont think thats consistent. We can really diverge then, huh . It would be nice. I hate having both the economy and the Interest Rate environment of the rest of the world. Because weve always you know, we usually do better. And to be stuck with and thats the excuse the fed keeps thats an excuse policy makers keep using. We cant do any better. Were the best house in a bad neighborhood. It would be nice to diverge some day. I would agree with that. And, you know, global trade keeps heading the way its going, that is becoming less important for global economies. We will detach. I hope we dont go there because global trade is important for growth. Hey, bob, recently at this network, it was pointed out that theres been at least a nascent shift into more offensive sectors of the market away from defensive. I dont know whether that means its time to, you know, to buy the defensive issues that have gone down or to buy the offensive issues that have already moved a little. Do you think its a sustainable trend to go into cyclicals . I do, joe. I think you point out something not a lot of people are paying attention to. There was a big shift around the middle of the year from what was to what is. And the sectors first half of the year, utilities and telecom. The worst sector since then, utilities and telecom. Whats come on the other side . Selective financials and technology. You know the story. So look. If growth slows, we cant do that. Were going to get a gdp print for the quarter here soon. Were probably going to be close to 3 . I guess that goes with the Second Quarter which you average and get two. But i think the valuation rubber band has been stretched significantly in the direction of i want to own the cheaper more cyclicly oriented and i want to make sure how much of the low vol things that i own. Okay. All right. Thanks, bob. All the best. I can go to settings and do turn on everybodys telling me this. People here, people on twitter. Turn on most recent on top. So if i have that show, im going to have stuff here so that i can get information as the shows going on to then give to to help. Yeah. You need a callin line. Thats true. Not everybody is as considerable with id just get rid of that gordon gecko thing he had. The brick phone . Yeah. I think this show could be very popular. Could be. On comedy no. I think theres a huge audience for this. This show. I would call in. I need help all the time. Coming up, Iran Oil Exports adding to the Global Supply gut. Were going to get an outlook for prices and talk Americas Energy policy with the ceo of the American Petroleum institute. Then later Kellyanne Conway is going to join us to preview tonights Vice President ial debate. Were back in a moment. 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. In 1995. As a businessman and real estate developer, i have legally used the tax laws to my benefit. And to the benefit of my company, my investors, and my employees. I mean, honestly, i have brilliantly i have brilliantly used those laws. Trump fired up supporters by vowing to fix the broken tax code. Meantime Hillary Clinton continued to attack trumps tax comments. In the debate he said it was smart to avoid paying taxes. Yesterday his campaign was bragging it makes him a genius. Heres my question. What kind of genius loses a billion dollars in a single year . This president ial campaign has focused on jobs and taxes. But unlike in other election years when things like high gas prices took center stage, energy has shifted a bit to the background. With just a month left to go in the race, our next guest believes energy has a more dominant role to play. Wed like to welcome jack girardi. Thanks for being here today. Thank you becky. Always. We have not heard a lot of the Energy Issues come up like in years passed. Its likely because people arent mad about energy right now. Theyre paying what they think is pretty decent price for filling up their tank. Whats happened as a result . What we see today is its brought benefit to the consumer. Every consumer now saves hundreds of dollars a year on gasoline. When the prices go down or are stable in the low 2 for a gallon of gas, the public tends not to think about it that much. Yeah. The view being if it aint broke dont fix it. What do you thinks broken . Well, i think right now the focus we need to place is more on the infrastructure question. And you see that out in the heartland of the United States. To continue to be competitive and to move this vast product that we have, oil and natural gas, were going to need more modern technologies and infrastructure build. Those seem to be some of the issues that are more front and center now. Both candidates have endorsed infrastructure. They havent been clear where they want to see that spent. Both candidates are talking about spending more on infrastructure in general. And i think thats an important focus. But i think it needs a broader focus on energy specifically. The reason i say that is we did an analysis about three years ago that shows theres 1. 1 trillion. Thats a t trillion dollars in potential investment in the next decade in the u. S. From we believe there should be more focus. How do we expedite the permits and get product across the country in a way to benefit the american consumer. When you say energy infrastructure, what are you specifically talking about . Do you mean pipelines, roads . What are we talking about . Were talking about all of the above but pipelines are a big focus right now. Some of the critics of fossil fuels have now identified Infrastructure Projects as their main focus to stop our American Energy renaissance. We think the public ought to come together with our politicians on how to expedite the permits. How do we move the product safely as we demonstrated we can. But how do we get it to the market most efficiently not only for domestic consumers but our potential now to export to benefit people worldwide, to continue to put downward pressure on the price of energy. Youre right. These are issues that take on a lot more focus when consumers are mad, when they think theyre not getting a fair shake. I think its going to be a much tougher issue to get politicians to Pay Attention to Something Like this. When prices are low, consumers arent angry and you have things lets just talk about fracking and what weve seen in oklahoma with the number of hundreds of earthquakes. They think its because of the dirty water being put back in and that it has destabilized things on some of these plates. That is a difficult issue to get a politician to say anything other than we should be looking into this and be figuring it out before we go forward. What do you say to that . Theres clearly a focus in places like oklahoma, colorado, and elsewhere about the new technologies. We shouldnt forget, though, that service horizontal drilling that brought us our renaissance. Plus there was a study that shows theres no impact as a result of hydraulic fracturing. If you look at the numbers there and i did recently and gone because because i had a lot of people come back and tell me its not a problem. If you talk to geologists on the ground there, youre now talking about roughly an earthquake a day taking place in a region that never had earthquakes before. You think its not related at all to fracking . The issue in oklahoma now is being driven bethe state geologists. We encourage the state regulators to come and work with us as an industry. Were doing further seismic tests, better understanding of whats taking place in that state. It has a history of some movement, but the not like this. But the reinjection, if you will, is what theyre looking at and the causation thats there. We believe it needs additional study but we also need to recognize the ability to harmonize the need for energy with the other considerations that come along with that energy development. Lets get back to your point on permits and make sure they move through. Wheres the biggest hold up . Right now we see weve got great concern over this dakota pipeline that took place out in north dakota. It was improved by the corps of engineers. It was challenged in court. The judge looked at the process and said not only have all the requirements been met, but everybody has been consulted in the process. The process should move forward. Within one hour of that judges decision, the administration stepped forward and said, yeah, but we want to put this project on hold. Its that arbitrary uncertainty that sends a Chilling Effect clear across our economy not just in the energy sector. But for other infrastructure as well. We have to honor the rule of law. Thats one of the things that sets the United States apart, that makes us a great place to invest, to build, to develop this infrastructure. And when we have politicians, if you will, entering into that conversation making arbitrary decisions. It hurts our ability to do whats essential for our economy and for the energy infrastructure. I guess that would explain some of the low Capital Spending that weve seen. Well, it does. Of course the Market Conditions out there were trying to find the new normal, if you will. But longterm the resiliency of the u. S. Producers is really quite a remarkable story. And we look at its global implications. But also its domestic implications in what we could do right here at home creating great jobs, bringing low cost energy all for the benefit of americans. Thanks for joining us today. Thank you, becky. Always good to visit with you. Coming up when we return, donald Trump Campaign manager Kellyanne Conway is going to join us to preview the veep showdown. And later in the democrats turn. Hillary clintons Campaign Manager robby mook is going to join us. Quarterba squawk box returns in just a moment. Guess what guys, i switched to sprint. Sprint . Im hearing good things about the network. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your Small Business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Still to come, Hurricane Matthew on the move. The east coast preparing for a wet weekend. Get the details straight ahead. Plus a preview of tonights Vice President ial showdown with Donald Trumps Campaign Manager. Right now, though, as we head to a break, take a look at todays u. S. Equity futures. Little bit higher. Dow futures up by 14. Squawk box will be right back. We got a tempurflex. Of a traditional mattress. G and bounce you sink into it, but you can still move around. And now that i have a tempurflex, i can finally get a good nights sleep. Buy the most highly recommended bed in america for as low as 25 per month and a 90 night free trial. Welcome back to squawk box. Among todays top stories, were watching the currency market. The plunge in the currency coming after uk Prime Minister theresa may said she triggered the start of a brexit by the end of march. Jeff flacker is going to be speaking at 8 30 eastern time. Then tonight Charles Evans is going to be speaking. Google is holding an event in San Francisco today where its expected to introduce a lot of new hardware taking on amazon and apple. Most important product is google home. Its the voice activated Smart Speaker that would directly challenge echo. Expect more details on the systems price and availability a little bit later today. In monday night football, the Minnesota Vikings playing host to the new york giants in their new home u. S. Bank stadium in minneapolis. And things went the vikings way. Minnesota is now 40 for the First Time Since 2009. I had some people telling me that theyre a team to watch. My question was, okay, i thought the cardinals were good. What happened to arizona . Someone had said it to me before and what else did i think. Some of the teams that had been good are suddenly like dallas. They finally have a quarterback. You know what . Or new england. Even sans brady. Right. Were not talking business angles but we are waiting for someone to get here. So youre damned if you do and damned if you dont. We cant just talk football. But im going to. Are the giants good on defense . Youre asking me . Yes. Stocks to watch today. Astrazeneca says that its heart drug brilinta failed in treating patients with serious circulatory problems in their legs. Following disappointing results with a similar drug. And team health is buying florida emergency physicians. Terms havent been disclosed. Fep provides emergency medical staffing for about 600,000 patients a year across florida. Cypress semi taking a cut related to severance payments in the third and Fourth Quarter. Were also watching shares of netflix this morning. That stock closed higher by more than 4 yesterday on wall street chatter that disney could be looking into buying the streaming company. Thats been out there over the weekend. Well see what happens. And Darden Restaurants posting higher than the 82 cents expected revenue. Same store sales rose 1. 3 of the quarter. Darden raised its full year outlook and the board authorized a new 500 million share buyback. I think we should all go to olive garden to celebrate. You know, i like that alfredo sauce, but its too fattening. All you can eat. Its too fattening. Yeah. Andrew can do it. Hes got a hollow leg and hes young and youthful. He had five doughnuts. Literally watched him do it. We had another voice. Go head to head in the first only Vice President ial debate. According to reports, mike pence has spent the last several days in mock debates as he gets ready to face off with Virginia Governor tim kaine. Joining us now with more on who exactly Vice President ial candidate pence is thats one way of introducing it, you can tell us about that. Donald trumps Campaign Manager Kellyanne Conway. Before we get to the overall state of the campaign, who is mike pence . Pence has spent 12 years in congress. I would like to say he was in washington but never became of washington. Ten years on the Foreign Affairs committee. Great tax cutting rb regulatory cutting record of course. Free market guy. As governor of indiana, i mean, his record is really remarkable over the last almost four years. He has cut taxes 5 across the board for individuals and employers. The Unemployment Rate has been slashed in half. You compare that to governor kaine, not to be confused with mayor or senator kaine. When he was governor of virginia, the Unemployment Rate soared and he called for 4 billion in tax increases. Youre talking about a tale of two governorships. I know tonight they will be tasked mainly with going on offense against the top of the ticket for the other side. But i do hope that we get a chance to examine their gubernatorial records because they could not be more different. Robby mook is going to be on later. That was going to be my question for him. From the data, both unpopular candidates. So both of them think that the way to do this is to capitalize on the unpopularity. You know, i dont know whether thats good. Its also their job. Even with Vice President ial quayle who i know you have as a frequent quest. In that debate in 1988, he had done his job before benson pulled the job he pulled. Quayle spent much of that debate going after Michael Dukakis and why he would be unfit for the presidency. That is their job tonight. I know that mike pence is ready to go on offense. Hes a mild mannered guy. Hes got a lot of great lines. He used to have a radio show before his political career. He called himself Rush Limbaugh on decaf. For pence, they will i think focus on his social issues record. And theyll use that as a negative, i think. In terms of i dont know whether its lbgt or something or womens issues or hes known as a pretty strident social conservati conservative. I think that may be the weakness they go after. Well, they can try. I think all issues are womens issues, by the way. Ive been doing this for 28 years. Ive never once heard the phrase mens issues. Its believed men can handle all the issues. I believe the same with women. I really hope the moderator goes after to ask tim kaine why the same week he was selected to be the Vice President ial running mate, he praised tpp and then it was oops, i didnt mean that. Ill be a flipflopper just to become your running mate. Hes disagreed with her on a number of things. I hope thats raised as well. Lets go to the past ten days or whatever. I have a and i dont know what you think of 538. But junkies look at everything thats out there including real clear politics. On september 26th, the now today vote if it happened today Hillary Clinton was at 45. 1 and donald trump was at 54. 9 . Within nine days as of yesterday, Hillary Clinton has risen to 78 for now vote and donald trump at 22 . Yeah. Thats all over the map. Donald trump started at whether its Miss Universe. My only point is, i know you. I wish i had seen you behind the scenes as this 3 00 a. M. Tweets were going out. I was sleeping. What do you do in the morning . When you saw him the next day and just watching it, you saw him get set up by hillary. Their research, the dnc Research Found this woman. She brings it up at the debate. Its out of left field and has nothing to do with issues. Brings it up and it goes on and has legs for a week because mr. Trump cant seem to leave it alone. It has legs for a week because you mentioned the most important point here is that Hillary Clinton refuses to talk about issues. Tim kaine on the stump never talks about issues. They talk about donald trump. Do we want this election to be he helps them stay on this message. Maybe he needed to say, look, it was a beauty pageant. Butte he said he saved her job. He said that many times. He gets lost in himself. Hillary clinton wants you to talk about that because she never created a job. How do they make their money . Through speeches. She didnt have a company. These people have made their gazillions of dollars by giving speeches, by trading favors from the state department to foreign nations. Why isnt anybody disturbed about that . What can possibly be the but . The possible but and im just curious because i think we all have a lot of respect for you. Thank you. But the question is when you see those tweets go out at 3 00 a. M. , when you see him mock Hillary Clintons health issue if she has a health issue i dont want to go too far with that. When you see him call people losers, what do you think of that just from a civility, being a respectful person . In america. Well, first of all donald trump massachusethas a right to himself. Youve never seen such a coordinated attack on somebody. But secondly i think donald trump is at his best when he sticks to the issues, when he talks about the failures of obamacare. He should channel bill clinton who yesterday on the stump trying but the issue of the temperament. I didnt say that. I think shes got a terrible temperament. Why arent i 50 points ahead . Thats just bizarre and we should be playing that. I can tell you why. Shes not even at 50 . Because people dont trust her and dont much want her to be president or commander in chief. I think telling the truth is a president ial quality. Not just temperament. Everybody throwing these qualities in their polls now that they think hurt donald trump. What about voracity, truthfulness, judgment . Hers has been terrible. Whats her Senate Record here . Yes, everybody voted for 9 11 health benefits, of course. But she you know, what really has her and thats very virtuous. What had her name on it . She like renamed a highway and a post office. These were her big accomplishments. But i dont think its going to win a popularity contest. Thats why gary johnson has 10 in the polls. This is a show i watch your show every morning thats about issues. And its about financial issues. Its about jobs and regulation. Can i tell you something . This may to your credit or Donald Trumps credit. I was in des moines last week. You could talk to them about issues all day, not interested. Not interested. Whatever theyre voting on is the personality, the temperament. They either like Hillary Clinton or they like donald trump. Or they hate Hillary Clinton or they hate donald trump. Sadly i wish it was about issues. Didnt you find it wasnt just personality. Theres also the strong leader a enthe change. Its always been about past versus future, disrupter outsider versus insider. We just had a market guest who said the market is all atwitter right now because theyre worried about what its going to mean. In the end its not going to mean a whole lot. Neither one are going to make significant change. The republicans in congress or the democrats on the other side are not going to make massive changes. Do you agree with that . No, i dont. I think donald trump is well positioned to enact things that all these president ial candidates and indeed president s from both sides of the aisle promised and never delivered. I think people are willing to roll the dice here. Can we talk about taxes for a minute . And im not even going to go into the place you would think i would. Speaking of the tax report from 1995. What i want to understand is he says he knows more about the tax code than anybody else. I want to know what hes going to do about it. Would he change the tax code so what took place in 1995 couldnt happen again . Well, you do know what he thinks about the tax code. About six weeks ago he came out publicly with his tax reform plan. And it gives it goes from seven brackets to three brackets. A middle class tax relief. Could you pull the effective losses forward for 18 years for real estate . Been around since 1918. Its 100 years in the books. If this was such a issue for obama, why is it still there . Because the reason president obama has never uprooted it, the reason when he had a Democratic House and senate for his first two years, they never took this up for a reason. There are some companies that are around today because of that. It was beneficial. The New York Times report this morning, in the year 1995, half a million individuals in this country leveraged that same provision. Its not a loophole. Its a provision in the tax code. Its been around for 100 years. Is that a provision that would be stricken . We talk about complete overhaul of corporate and personal taxes. Thats something people on both sides of the aisle would like to see. A simpler tax code. Theres still all these weird things that nobody knew about. These arcane issues in the tax code. All that gets stripped out too . There are plenty of arcane issues. He promised to make it simpler. Its meant to confuse and vex. And frankly he wants to reduce he said the only people who will be upset with his tax reform plan are the tax accountant preparers because theyll have so the next debate to look forward to after the veep debate, that is on sunday, right . Sunday. So is there a different approach being talking about . For example, in this tax situation here, the next debate just, for example, i could see saying Something Like they ask about his taxes then he says look, is paying the normal operating rate on 16 million from Laureate University to accrue hundreds of millions of dollars its not clear that was the case. Okay. But we know theres hundreds of millions. Its not clear. Its not unclear either. You dont go into politics unless unless youre the clintons, i think. At least it was in the private sector. Thats right. And creating jobs, by the way. Creating jobs. So hold down for ten minutes about why he did this. Like the last debate. Its a great point. If that were not on the minds of many americans, she would be ahead by 50 points the way she says. I mean, the fix is in for her. Shes got all the advantages. She has all the kings horses, all the kings men, all the media coverage. But somethings nagging at me. She only has 53 of women. Theres Something Holding people back. And to your point, if you havent brought a company public, if you havent hit the power ball, if you havent inherited the money, people should know how you made that money. My point was not about that. It was about the way he last time focused on his own he seemed defensive. Focus on her. Youre right. By the way, to everybodys question about what would she do about this 100yearold provision . Maybe wed know how she feels about it if we got the transcripts to the speeches she made to wall street. I have a feeling shes fond of this provision. You think she talks about nols . No, i think theyre even more boring than that. Heres the question. If we can get you the transcripts of those spich speeches, would donald trump release his tax records . You get that ill raise you the 33,000 emails. Might as well. Were using all the transparency of her tax records but we have no idea what his are. Nobody confuses her with being transparent. She set up an illegal email server to cover up. And it compromised your security. Where she said i think hes hiding something. And the irony didnt occur to your state saying i would have stopped the debate right then and say youre asking me whether im in the business of hiding things . Wouldnt that have been your response instead of honoring that request and going back and talking about yourself and what youve done. You need you see what im saying . Yeah. And he does a great job of that in our debate prep. The fact is that he was way too gracious to her. And i think youre making the same point. He got no credit whatsoever for being incredibly gracious to her at the beginning. What should i call you and then at the end is the next one going to get tougher . I think the next one is a great format for him. He loves being out there with people. Hes had excluding yesterday hes had 350,000 people at his rallies just since the conventions. Shes had like 13,500 according to a statistic this weekend. That makes sense. I mean, he shows up somewhere and we have 10,000 people in the venue and 5,000 people outside getting in. She has 300 or 500. Looks like a professor having a lecture. And these crowds matter. Because hes used to engaging with people which is the town hall format. Thanks. We have robby your counterpart. Lovely. I love being his warmup band. Hes not in studio. Hes not. Good to see you. Thanks for coming in. Thanks for having me. Coming up, we are watching Deutsche Bank shares. It could have implications for u. S. Banks. Squawk box will be right back. I do the sales, the marketing. I have to do that from my phone. We use tons of data. I really dont have to worry about it cause everything is unlimited. I need data and i need it now. O jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov. Welcome back to squawk box. Were going to talk about banks for a moment. They are in focus as a potential settlement between doish bank and department of justice. Jamie dimon speaking to power lunch yesterday about the german bank and the banking sector. There is no reason that Deutsche Bank shouldnt get over its problems. They have plenty of capital, plenty of liquidity. We want all these banks to get through. Joining us right now is robert albertson. Hes a partners principal and chief strategist. Deutsche bank, do you agree theyll be all right or not . I do. I cant talk about specific companies, but it seems logical that eight years later with all the capital thats been jammed into banks especially european banks, the system is safe. There should be no issue. And the europeans probably need their banks four times more than we do because its entirely bank credit thats credit there. Deutsche bank is germany. Germany will save them no matter what . No, no. Youre saying they dont need the saving. Im saying look at the regulatory trend now. Trying to back down. Not remove them. But just saying its enough already. Weve gone too far. Used to be the other way around. And thats because you do need banks and you do need large banks as well as small banks to have momentum in the economy to support credit. What are the implications of this whole wells fargo scandal dare i call it that. You have to assume theyre going to go after whatever they can. I cant go beyond that. But i think about an industry where 1 over five years of people are fired. Thats 0. 2 a year. The attrition rate in banking is multiples of that. Do you want to own banks in this environment . I do. The fundamental als are still there. You still have loan growth and uptick in provision. Youve got 8 plus growth. And youve got yield. But the Interest Rate environment itself, you think its going to turn at some point or you just dont care . I do care, but i think for broader issues. I mean, if the fed is sitting there waiting for a 2 inflation number and a 2 gdp growth economy, come on. Its not going to happen. Meanwhile youve got bubbles everywhere. And by the way, housing prices. If you look at those closely, theyre back up halfway to the last bubble. Robert, we appreciate seeing you. Pleasure. Thank you for coming in. We just heard from Kellyanne Conway. When we come back, well hear from Hillary Clintons Campaign Manager robby mook. Well be right back. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your Small Business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley your money your vote. Weve heard from Donald Trumps Campaign Manager. Hillary clinton refuses to talk about issues. Tim kaine on the stump never talks about issues. They talk about donald trump. Up next, Hillary Clintons campaign chief robby mook. Are the clouds clearing over the tech ipo market . We will tell you which private players could go public next. All that plus batter up. The Boston Red Sox president will weigh in on the big business of baseball and all the business angles. The final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and andrew ross sorkin. The futures right now have been meh. Up 18. Ive got to use that. Well done. 12 on the nasdaq and 0. 65 on the s p. The pound is trading at new lows. Its at 1. 27 today. But its been pointed out that the ftse is up 10 from prebrexit levels. Thats why people its up almost 2 today. And theres the european markets. You can see the ftse again now over 7,000. Lets get you caught up on todays top stories. Jeff laker speaking at this hour. Well bring you the headlines as they happen. About 12 hours from now well hear from voting fomc member Charles Evans. Tonights Vice President ial candidates scoring off in a debate. A survey finding Hillary Clinton is holding a 46 lead over Donald Trumps 40 . Shares of Deutsche Bank swinging in volatile trading in europe today. This as investors wait to see if the lender can reach a settlement with the u. S. Justice department. Shares of darden getting a big boost. Earnings topping expectations. Also raising null full year guidance. Thats good for a pop of better than 5 for the shares today. Gold prices dropping to more than a twoweek low and that is putting pressure on the names in the sector. And shares of netflix adding to their gains as the stocks grew higher. That disney could be looking into buying the streaming company. This morning stocks up another 1 . Now back to politics this morning. We are a little more than a month away from the election and the war on terror remains a top issue for people. Joining us right now with his views on National Security, former nato allied commander admiral jam admiral. You are now advising the Clinton Campaign on National Security matters. So your role with nbc has been put on hold. Good morning to you. Hi, andrew. How are you . I want to talk about about syria in just a second. I do want to just mention this. Which is we had that bombing just down here on 23rd street a couple years back. And the reaction to that from both candidates seemed to be a real divide. You could sort of see the distinction in how they approach this issue. Trump talked a lot about immigration. Hillary clinton talked about sort of intelligence that needs to change. When you look at sort of how both those candidates approach this and i know youre advising Hillary Clinton, just speak to that division and what it means. I think you put your finger on it very well. Another way to phrase it, andrew, is a Trump Administration as you look at their approach to Foreign Policy is more about building walls, about creates distance, about heightening security. And i dont want to use the word isolationalism and coming home. Its about connections. Its about but i would say broadly speaking we need more building of bridges than walls. Isnt it a fair argument to say this was an intelligence failure but not an immigration failure per se, but a missing link in terms of whats going on outside of this country, people going in and out of this country and what that ultimately means . It is. I think the way to think about that is part of the problem. Thats more cyber security, more analysis of social networks. I think we can reduce the risks. The question is which approach gives you the better longterm uplift. And again, i would argue building cooperation will help you, but you do need some of the technology and guarding the wall piece of it as well. When we framed up this discussion at the top, we said that you talk about getting aggressive with isis by going to syria. What does that mean . How does it work . It actually starts in iraq. And that means cleaning out mosul. Thats going to be a challenge. Big city in northern iraq. And the reason for that is that isis is drawing a lot of resources out of that ownership, if you will, of mosul. Step one is that. Step two is amp up the Bombing Campaign at raqqah. But step four to the ts is special forces and gradually surrounding the new raqqah. Well need indigenous troops to do so but were going to need leadership. What kind of u. S. Boots on the ground does that require . Id say about 6,000 to 10,000. So not an insignificant number. Were verging 5,000 now. Probably 7,000 of them in iraq. 2,000 to 3,000 in a mentoring advising special forces reconnaissance kind of role actually rolling into syria. I wanted to get your comments and figure where you stand. You saw the comments by trump and veterans with ptsd. What did you think . Some people said it was over the top. Some people said it was taken out of context. I think as a veteran, i wasnt overly offended by it. Its loose language that kind of makes veterans feel like were lumped together as kind of weak. But people need help. Its another example of the vocabulary. But i didnt take it as a shot at the veteran community, no. Fair enough. We appreciate your time this morning. Thank you. Thaurng. Great to be with you guys. Relationship monday fed president jeff lacquer saying there is a strong case below their 2 project. But lacker has largely played out. Maybe indicating that he thinks inflation could creep in. If you want to look at the futures this morning, weve been back and forth through the flat line much of this morning. We were up akros the board. This could be not much of an impact. Now theyre up by about eight points. And the nasdaq is still up to close to ten points. Coming up, optimism in the world of tech. Ipos showing that Silicon Valley is still alive and well. Well break down the numbers after the break. [alarm clock beeping] look out honey. The highly advanced audi a4. Aint got time to make no apologies. Welcome back to squawk this morning. Political risks such as brexit and the political election scaring companies from making deals this year. The dealogics survey said this would end a three will have year winning streak. Tech is the most active sector with more than 375 billion worth of tieups so far. Last years Top Health Care is down. The ipo market is on a slow pace this year. There only have been 75 new issues compared to 158 compared to a year ago at this time. Those are out performing the market by about 21 . And 83 are trading above their ipo price. Joining us now with more on e the ipo market, kathleen smith. Shes from ipo focused etfs. Lets start with this idea the numbers are down pretty significantly. When you look at health care, what happened . What caused this chill over the market . Well, in august last year the entire the overall market did poorly and ipos in particular because there were many extended valuations and a pretty active level of issuance. They came out with prices that were too high. Exactly. These companies corrected even more and it put a chill on issuance and made the ipo investors very careful about what companies they were going to invest in. And most importantly then there was a shutdown of about four months where no activity happened whatsoever. Where everyone said im going to see what happens to the market before i dip my toe back in. Exactly. And these kind of shutdowns, they dont happen too much. Four months is a pretty extended shutdown of no deals. When the window opened and our studies show when it opens it we call them ice breakers. Weve been in this period of a very good period for ipo investors and positive returns. Only Better Companies with strong returns are getting done. Thats the Silver Lining youve been watching in technology in particular is that issues are coming to market. Theyre at better prices than theyve been looking for before. And as a result of winning as well. Actually bb in our mind mind can we go back to the perennial debate about pricing. Youre saying these are good prices. Theyre good prices before the investor is winning . I think in an apartment they have to offer something attractive enough. Investors are selective. And we just priced above the range. And soared in its initial offering. When it first set its price, it was well below its peers. Truly there was a lot of money they left on the table. But nornt to get the investor attracted, its only reached sustainable level. Should we expect to see some of these unicorns coming to market too . That was kind of the expectation was okay these valuations are out there. If they come to market, theyre not going to get that kind of evaluation. Or do you think that has changed . The companies rf seen so far you could say nutanix was a unicorn. It was slightly below the last private round done in swrt. So ep theres a lot of capital market. Theyve been locked into the private market getting them out into the Public Market where theres more valuation sensitivity. Very quickly will we see suber come to market next year . We think that the ubers and the air bnbs very large markets make their view. If these companies can do a better job of making money as they have raising money, theyll fill into these high evaluations and maybe youll value the economies with maybe lower multiples if they had. Id like to see a prespecktous. Kathleen, thank you for joining us. Google is holding an event in San Francisco today where its expected to introduce a lot of new hardware taking on amazon and apple. The most strategically important product slated today is google home. Its like alexa. Smart speaker that would directly exam amazons echo. Youre going to get more stuff that theyre trying to sell you. Right . Would you do that . Google already nose everything about me. And theyre going to know more. Whoever knows more is going to win the game. Youre constantly sneaking off to say bad things in other rooms. Only when were talking about you. Which i hope is a lot. Anyway, another products birming the had said to cost more than 600. And other items you might expect. A version of googles video streaming stick chrome cast. It will Virtual Reality headset for routers to better spread Internet Connectivity throughout your home. We dont have any decisions on color for the router. Very limited colors. Black. Probably. Hopefully in your clodder. Wikileaks founder Julian Assange is promising more releases about the election. Squawk box will return. Today, i am helping people work better. And also feel better. I am helping hospitals personalize treatments using billions of data points. And working with medtronic to predict the highs and lows of diabetes, hours in advance. And i am working with orreco to use Biomarker Data to boost the performance of athletes. Hello, my name is watson. Working together, we can outthink anything. Hello, my name is watson. Now that fedex has helped us we could focus on bigger issues, like our passive aggressive environment. Were not passive aggressive. Hey, hey, hey, there are no bad suggestions here. No matter how lame they are. Well said, ann. Ive always admired how you just say whats in your head, without thinking. Very brave. Good point ted. Youre living proof that looks arent everything. Thank you. Welcome. So, fedex helped simplify our ecommerce business and this is not a passive aggressive environment. I just wanted to say, you guys are doing a great job. Whats that supposed to mean . Fedex. Helping Small Business simplify ecommerce. Welcome back to squawk box, everybody. The futures this morning have been bouncing back and forth across the flat line. You see that the dow futures are up by about nine points. S p futures are down fractionally. Nast dak up by about ten points. And weve been watching oil prices as well. Big gain in oil prices sthorng. A litt wikileaks founder Julian Assange is promising ten weeks of disclosures with subjects includesing the u. S. Election, google, oil, and war. So far not giving details. He was speaking earlier this morning in commemoration. Posting and sharing videos online is many things. Talking about giving away everything for nothing. According to the experts you dont need to be experienced to find it. Reporter some simple photos posted online. But they may have a secret you dont want revealed. Ipg b people dont know is how dangerous it is. Reporter its called geotagging where your location data is automatic being dr th info leak potentially exposing your business dealings and your personal life too. Takes the coordinates from his video and puts them into google maps. Seconds later finding the city, neighborhood where this was taken. It could be a huge dangerous. And he says geoloxs are being used in every way. Its just a game wu give you you this. We should tell you cnbc is partnering with m. I. T. For the cam bridge. Trying to discuss how to tackle the american threats. I will be off to cambridge tonight actually. Yeah. Flying to logan, i guess. Thats my plan. Thats my plan. Thinking about the train. A misstep for facebooks new platform to buy and sell to each other through its mobile apps. Similar to craigslist. Within houring you use it. Listed as including drugs, sex, rock and weapons and even body parts. If youre in the market for a body part. You go here. Facebook issuing an apology late last night. Saying a technical issue may stop him from. And an update on Kim Kardashians rob we. Shes back in new york after reportedly being held at gun point in paris. Among the items stolen, jewelry. When we return, Hillary Clinton calling out wall street on the campaign trail. We will tell you how jpmorgan ceo responded. Plus Hillary Clintons Campaign Manager robby mook will join us. That is next. Stick around. Squawk box will be right back. Guess what guys, i switched to sprint. Sprint . Im hearing good things about the network. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your Small Business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Welcome back to squawk box. Heres whats making headlines this morning. Richmond fed president jeff lacker says theres a strong case for raising fed funds. He argues that preemptive increases will be critical for keeping inflation stability. From Falling Oil Prices and an appreciating dollar is largely played out. Meanwhile sterling has dropped to the weakest level to the dollar since june of 1985. The plunge in the currency coming after uk Prime Minister theresa may said she would trigger the start of a brexit. Earnings were above expectations for darden. The dining chain is also raising its full year guidance and announcing a stock buyback. Lets get a check on the markets this morning. Weve been watching the u. S. Equity futures and theyve been bouncing back and forth. Youre going to see right now theyre still there near the flat line. S p futures are down but just marginally. Dow futures up by about six points. The nasdaq by nine. Mainland china is closed for golden week celebrations. We continue to see that today. The nikkei was higher. Looks like our boards are frozen right now, but the nikkei was higher. Hang seng higher as well. European markets have actually been doing fairly well this morning. Weve been leading the way because of the ftse. We talked about the ftse up by 1. 6 . Again, this is because of the sterling move that joe was just talking about. As a result we have seen stock market there up substantially. Stocks to watch today. Shares of Deutsche Bank rising in german trading right now. They were closed for a Public Holiday yesterday. The question on the table will a Justice Department settlement be favorable or hurt the bank . We will see where their number lands. Deutsche bank getting a strong vote of confidence from a big name and competitor yesterday. Jpmorgans Ceo Jamie Dimon. He said yesterday theyll be fine. There is no reason that Deutsche Bank should get over their problems. We want all our all these banks to get through because its better for everybody that we kind of move on and just help do our jobs. Dimon also weighed in on the scandal at wells fargo and john stumpf. John stumpf is a quality human being and a friend of mine. I want wells to get to the bottom too. Obviously when these problems happen, every bank is going to cooperate which sha should and do course if theyre disclosing solss on procedure. Stocks to watch. Sales force. Com is buying krux. The Company Provides other companies will information to hone their marketing. It already has a partnership with sales force. In german luggage maker db you know this one . Romoa . I do not. For 719 million. The Company Founded in 1898 is known for its high end durable aluminum suitcases. Popular among it says here popular among chinese buyers who use them to transport luxury goods bought overseas. Very specific information i just gave you. Eriksson is cutting 300 jobs in sweden. When we come back, Clinton Campaign manager, robby mook will join us. And then quarterback sports. The bst ready to hit the mlp post season. Theyre staying goodbye to david ortiz. Boston red sox president sam kennedy will join us after the break. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Welcome back to squawk box, everyone. Hillary clinton calling out wall street on the campaign trail yesterday. Heres what she had to say. It is outrageous that eight years after a cowboy culture on wall street we are still seeing powerful bankers playing fast and loose with the law. She was referring to john stumpf and the fallout from wells fargo scandal. But jamie dimon took issue with the attack. He responded to the comments on power lunch right here yesterday. When people blanket a whole class of people by making statements, i think thats just unfair to everybody. I could do the same thing about media. I could do the same thing about politicians or lawyers. Theyre just never accurate. You know . This business is full of high quality, qualified, talented, ethical people. Smart and ethical as youll find at institutions anywhere. I wish people would stop doing that and figure out people broke the law and should be punished. Lets take a deep breath. And you all on the press dont have to fuel it all the time which is adding to it and oversimplifying it. All of this comes ahead of tonights Vice President ial debate where kaine and pence will have to defend their candidates policy stances. Joining us is Hillary Clinton Campaign Manager arobby mook. Thanks for having me. This has been talked about in the Business World and on wall street in particular. A lot of people think they are being persecuted for other peoples wrongs being lumped in with the wrong types. And it has certainly led to some populi populist animous. You mentioned what happened at wells fargo bank. Some of the practices that weve seen are simply unacceptable. And i think secretary clinton was simply trying to be clear that she will get tough if there are abuses in the system. I think what people find particularly outrageous, however, is that donald trump said he was smart after he lost almost a billion dollars and didnt have to pay taxes for nearly 20 years. I think thats whats particularly outrageous and, you know, i was frankly stunned that he said that. Quick pivot, but that wasnt the question i was asking. Im not quite done with this line of questioning yet. Lets go back to what Hillary Clinton said. Because again, i think youre right. Nobodys defending wells fargo. It looks like there were some Serious Problems that happened there. But the idea of pitting all of business or all of wall street versus the rest of america, that is something thats gotten a lot of traction in recent years. How do we break that down, how do we stop it . I know it plays when on the campaign trail, but what do you think this is all about . Were going to have to Work Together to solve all the problems were facing. Thats why the slogan is stronger together. A lot of americans are still very frustrated. This economy isnt working for everybody. And weve got to get more jobs created. You know, weve got to get our tax code figured out from the standpoint of fairness but also because we want a tax code that promotes more businesses here at home. Look. The reason i touch on what donald trump said and the reason it is absolutely relevant to this conversation is hes a divisive figure whos going to be an impediment to solving some of these problems were talking about. It makes no sense for the next leader of our country to be running around saying hes smart because he didnt pay taxes. What does that say about the rest of us who work really hard and pay our taxes or, you know, Small Businesses that pay theirs . So i think, you know, itll be interesting to see what mike pence has to say about this at the Vice President ial debate tonight. Isnt the issue ultimately assuming that what took place was legal and we have no information to suggest around tax policy that losses shouldnt be carried forward. Whatever we all think about the tax code, shouldnt that with the focus of whats happening here . Well, im really glad you asked that question. I completely agree with that. First of all, i dont think anybody contests the fact that secretary clinton and senator cain hes going to be in the debate today have detailed plans. How we get this economy working. How we provide Small Business the relief they need. Trump has put out no specific plans. Well, what i will say is when i look at the tax plans from each candidate, i have a hard time finding specifics on a lot of these issues. I mean, whats the Corporate Tax rate that Hillary Clinton thinks is the best rate . We continue at 35 or do we cut it . I mean even obama has looked at 28 . Im sorry . Even president obama has said 28 . Bill clinton told me himself that he thinks it should be lower than where it is right now. Where does Hillary Clinton think it should be . Well, i think theres broad consensus that a lot of people would like to lower it. But the fact of the matter is there are a lot of loopholes in the way of doing that right now. And the system is very uneven depending on a variety of different factors. Thats the result of different people lobbying to get different loopholes in. But to the previous question, the real issue here with donald trump is its not okay to say in a cavalier way its smart not to pay our taxes for the president of the United States to be saying that but robby it completely contaminates the conversation. Robby, you look at when youre in the private sector and youre risking capital to try to make a return and create jobs, things happen as we know in the financial crisis Great Companies almost went under. They had carryovers they used to recover more quickly. Apple has done certain things within the tax law that minimizes the tax liability. Someone else would say the clintons have done very well and never risked a dime. Whether its hundreds of millions or tens of millions. Theyve accrued that without risking a penny. So to say youre smart but not paying taxes is not a pejorative. Its something i utilized for my business everything i can do under current law to make sure i have money in the operation of my business. If youre stupid or not to lose a billion dollars, youre in the game. Youre betti inting big and you risking capital which is what we do in this country. So i dont think its so obvious that to say that its smart you can just condemn the candidate for that. Well, i guess what i where i would slightly disagree with that is donald trump has a lot of rhetoric about how hes going to bring all these jobs back to this country. Hes fighting a rigged system. Those are his terms. Then for him to come around and pay taxes, that thats smart, i think thats completely out of touch with what working people are feeling nowadays. Those who got let go because of his business failures, they had to pay on their unemployment insurance. Hes talking about taking that to create a sham family leave plan. So im trying to hold him accountable for characterizing himself as a champion of working people. We havent brought up the fact that hes con stintly where to manufacture his products with b he shipped them overseas. He outsourced. So were trying to hold him accountable for his own rhetoric. Robby, the banks do perform a pretty good function in society. I understand the wells fargo situation, its not even a one off. I understand that. But banks to provide the capital base for the entire country to function. You know, a lot of fines went out. It erodes the base. Sometimes it seems counterproductive. I think we saw a lot of private sector. At some point it seems like a candidate can cut his a politician cuts their nose off despite their face. Were left in a worst position we roding capital bases. Well, first of all, i think the heart of this matter is real anger over what was done. And i think theres a frustration sometimes that executives are not held accountable for actions like this. As you said, i dont think anybody disagrees what happened here is wrong. This isnt about a conflict with the private sector. Restoring our infrastructure, investing in clean energy, and a number of other things. So i think this is about us all working together to get this economy working for more people. I think everybody is on board with that. Whats frustrating is that donald trump applies one set of rules and makes one set of statements. Then when it comes to his own actions. We had Kellyanne Conway on earlier. We talked to her about the debate tonight and the president ial depabate coming upn sunday. She said donald trump was too nice to Hillary Clinton and didnt get credit for it. Which foreshadows how the debate is going to go. What tactics do you expect to see . This is unfortunate. I think everybody wants these debates to be job creation. Unfortunately it sounds like donald trump has decided he wants to make this into a bunch of personal attacks. Thats his choice. Secretary clnt clinton is going to stay focused on the issues and talk about her families afford child care and health care. Well keep pushing through. ve of the campaigns has taken we did ask conway this question too. But it did seem like both of the campaigns reverts to the idea of attacking and trying to make it about the other candidate. It has served each well in the polls when theyve been to that. I didnt even know Miss Universe was an issue. I had no idea until the end of the last debate. That doesnt serve the american mr. Ic, robby. You know, look. Donald trump is a special candidate. That was nice of you to say. And the media and certainly we are a little bit baffled every single day about how to push forward. I think hes broken a lot of the bounds and norms of i would argue decency but also how to conduct a campaign and what to do. We are doing everything we can to talk about the issues. As i said. But there are times where his behavior has been so offensive that it deserves to be called out. The president of the United States is niche to being a role model for our children. I dont think any young woman or young man for that matter in this country should hear their president saying the kinds of demeaning things that donald trump has said about women and about his political opponents. Robby, want to thank you for being here. Well be watching the Vice President ial debate tonight and the debate next sunday too. Thank you so much. Thanks. Time now for some squawk sports. Baseballs post season kicks off today. One player approaching his last october before retiring is red sox david ortiz. He celebrated the end of his 14 seasons in boston over the weekend. Joining us now is sam kennedy president of the Boston Red Sox and fenway sports mag. Thanks for joining us today. Looking forward to it. But the state of baseball right now, sam, is the real money being made locally . Thats kind of shifted. Not quite the same as nfl maybe. Theres a lot of money to be made at local versus maybe nationwide. Yeah. Well, the health of the game is great. Weve got over 74 Million People coming through our gates at the Major League Baseball level. And most clubs are operating really to try and break even each year. Our revenues do to player payroll. O trying to put a great quality on the field and a team that will play in october which is our goal each and every year. So business is bad . Did you say breaking even is what you try to do after everything is said and done . Yeah, well, different clubs have different operating models. But youd like to turn a profit each and every year. But these investments typically get made for the long hall. Youve seen great valuation in sports team around the country. So there are different models in various markets. But business is good. Major League Baseball is healthy as an industry. Rob manfred has done a great job since taking over as commissioner. Weve had a lot of success here under john henry and tom warners leadership. So is it an incomes problem or is it an expense problem. Thats not making it as easy to operate profitable every year. What can you do . Players need to be paid. Theres going to be expenses. I dont know. You need to make the games faster or something . More refreshments . You know, whats the answer . Ya e, you know like any business we need to grow that top line every year. And were always going to have increase in expenses. Youve seen that traditionally with player payroll moving north each year. Baseball is a Healthy Business at the National Level and at the local level. Do you think youre finally beyond some of the negatives for baseball at this point in terms of, i dont know, steroids, any of the things that have plagued walkouts, any of the things that have plagued the sport in the last decade or so . I do. I think baseball is really moving in the right direction. Again, i mentioned commissioner f manford and some of the initiatives he has at connecting the game to kids. We have the most robust testing system in all of professional sports, testing blood and urine. The game has been cleaned up dramatically over the past decade. So baseball is in a really good place, provides incredible content seven months out of the year. Were entering the most exciting part of the Major League Baseball season, which is postseason play. The red sox are very pleased to be a part of that. Its our seventh time doing that under the John Henry Tom warner era here in boston. Were excited about david ortiz final season as well. I know. I like him. I dont like the designated hitter, sam. I just can we revisit that, please . Remember all the strategy that managers had to use, you know, when to pinch hit, when to pinch run, whos going to come up next inning, what do i do with is it better i guess big papi is a pretty good reason for dh because theres offense and you create a hero and everything else. Maybe im wrong. Am i wrong . I think you are wrong. I think that the designated hitter is extremely important in the American League. I have the perspective of working in the National League where we didnt have the designated hitter. Now theres a league. When we arrived in boston in 2002 to think about our history here without david ortiz, arguably the greatest designated hitter in the history of the sport, in my mind a first ballot hall of famer and incredible champion in the community, baseball and the American League would not be the same without the designated hitter. Maybe orange baseballs, sam. Hows that kennedy name work in boston, pretty good i bet . You get tables at restaurants. Unfortunately im from the wrong part of ireland so it doesnt work so well. There is no wrong part of ireland i dont think. Anyway, thank you and good luck. Appreciate it. Say hi to mr. Ortiz. Great to be with you. Coming up when we return, west coast cramer. Well get his take on stories in just a moment. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Lets head west to one market, jim cramer joins us live from San Francisco. Jim, i dont know what you want to talk about. Yesterday i actually started thinking about it, is it like to get cyclical and offensive because the move in defensive stocks is over and yield stocks, is that really over or did it already start . Were in the same boat once again where we just feel like that the fed has to move. What i would caution is, is that every time we get like this but were way too far from the fed, we get a lot of data which doesnt make sense. So not that im a buyer necessarily of utilities, but when you want to get more aggressive and buy cyclicals, you better have china, you better have europe, you better have latin america, you better have the autos, you better have construction. You better have the banks doing better. None of that is happening. But ahead of earnings, thats where people want to go. And i also had all the same questions you just mentioned. Can we diverge here when everybody is still headed even deeper into it. We say we understand why the tenyear is where it is because where everybody else is. If everybody else is going to stay there, why are we suddenly going to diverge. Our economy goes up, the tenyear yields go up. Why is that going to happen when it hasnt happened yet . Its been the sucker play. Every time we get to this point, people say, its time to rotate in and then we see the earnings and say, wait a second, why did we deviate. Look at dardem. Thats a yield stock and holds up. I think the whole notion of the cyclical switch other than technology always lets us down, joe, always. All right, jimbo, well see you in a few. Well be right back. Stay with us. To win, every millisecond matters. Both on the track and thousands of miles away. 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Gov make sure you join us tomorrow. Squawk on the street begins right now. Good Tuesday Morning and welcome to squawk on the street. Cramer is live at one market in San Francisco. A lot to get to with jim today. A lot to work with, whether thats fed speak, a vp debate tonight, the ftse at an alltime high as the pound hits a 31year low. First up, the imf lowering its Global Growth forecast once again to 3. 1 this year