Case got it wrong. Nobody expected things to turn this thing this fast. The trump rally trademark is still available. Nobody patented that, copyrighted that, its still available. Arent you proud of the fact this show two days before the election, the day before the election, asked the questions over and over, if he wins, they control all houses of government, you at minimum get tax reform and less regulation, why would that be bad for the stock market . That question was asked over and over again on this show. I had to be called a jackass on twitter by a supposed colleague because i disagreed that the market would go down 1,000 points. By definition when this Insane Person with his finger on the button of the nuclear code, when he was going to be elected. We put up with a lot. We pit up with a lot to. There have been a lot of speculation about where this would all go. Lets juxtapose the wisdom of the American Public versus the elitist intellectual ruling class that permeates this entire island. Think about that. Think about the difference. The Republican Party at this point is supposed to be fractured and never able to come back. The down ballot on the Republican Party was supposed to be decimated. Im not disagreeing. Look what happened. The only people that lost, kelly ayotte, the only people that lost were people not backing him. Far fewer losses in the house. The senate is still firmly in hand. The Supreme Court now it sounds like i was calm the first couple days. Just thinking back on you should be happy. I am happy. But no one will hold theyre still at it. Theyre still a it. Rachel mad do ydow, theyre sti it. Its hard to suggest that the country is still frankly divided. It is. Okay. The thats a different point. Which party which party is in is in smoking, steaming rubber . No question. And who are committing violence in the streets in the wake of the election. Nobody predicted any of this. Still writing editorials for your newspaper. Still writing op seds every da for your newspaper. We agree. We agree. There is still a dividedbezo i dont need to say it. Mike wolf started writing it. The smug breathe. Here are the other big stories were watching today. Disney earnings and revenues falling short of estimates. Among the reasons, lower adverb t advertising losses. The stock initially fell on the news, but then rebounded after igers upbeat comments. Well have a report coming up. Couple of retail reports to tell you about. Nordstrom sales topping estimates helped by its anniversary sale. Gross margins rising more than expected. Michael kors offering downbeat holiday guidance citing a decline in mall traffic. In its most recent quarter, kors beat on the bottom line, revenue came in line with estimates. That stock is off by 4 in extended hours trading. Later on well get Third Quarter results from jcpenney. That expected at 7 30 a. M. Eastern time. On todays economic calendar, Federal Reserve vice chair Stanley Fischer will speak on the economy at 8 30 a. M. Eastern time. The first read on november Consumer Sentiment at 10 00. George soros and moveon. Org inspired demonstrations and financed demonstrations do not make for a completely divided country, andrew, just because of what you see check out the headline no. No im not going to debate this issue, because youre right. The republicans clearly own and control now all of washington, d. C. Thats not my point. Im just saying if you look at the popular vote, im saying there is a theres still a divided country. What about the popular vote . It was higher cnn is projecting trump will win the popular vote now. When they finish counting . Yes. Holy smokes. You were aware of that tidbit . Im suggesting to you even if whether you think that he won the popular vote or she won the popular vote, it is that piece in this country that was so close there is still a divided country. So like all elections, some people wanted clinton, some people wanted trump. Its always like that. Was a guy who got elected who lost the popular vote. Thats not unusual. In terms of the Electoral College it wasnt that close, compared to 380 to 100 from the same intelligence. Were not on the other side of the point. Lets look at what was widely predicted with copper by all the experts. The dow, which hit an alltime high yesterday, look at the copper chart. First, heres what Stanley Druckenmiller said on squawk box yesterday. Dr. Copper, have you seen him lately . Its been rising i havent looked in the last couple of days. Hes up 4 today. Whoa. Interest rates have been at stupid levels. Theyve been manipulated by Central Banks. Theyve been held down. Like a beach ball held underwater. I think Interest Rate also go up. I think theyll go up a lot. I think theyll go up a lot because, a, theyre just at insane levels. B, im optimistic about Economic Growth. Lets look at copper, there we go. Again, it was up almost 6 at one point. Up 5. 5 . I think its six straight days. You look where we are, 215 on the tenyear. Yesterday you made the point, michelle, the very important point, its happening as the bond market is absolutely selling. As Interest Rates are surging, the market is hitting new highs. In the final decoupling of stocks and bonds, which you needed to signal that maybe the economic malaise might be easing or maybe the dawn is breaking to some extent. Well see. More on copper still to come. Well talk to the global head of commodities from the S P Dow Jones at the bottom of the hour. I think im most excited, mish she michelle, that my kids, millennials, where the government can work in concert with the private sector. They might see what i saw in the 80s when you get regulation out of the way, lower taxes. Dent make me cry, joe. Its not eight years of redistribution, but its actually trying to grease the skids for the private sector. We may see that happen. Its amazing how quickly the market starts moving on that. Well see whether it continues. There will be a lot of impediments to it. You see on twitter the number of assassination tweets . Hundreds. About donald trump . Yeah. Exactly. Thats what i mean about the you will never win with the left. Ever. I thought it was his supporters that were going to cause violence. Thats the thrust of the lead story. For more on the markets and the trump rally, lets bring in David Leibovitz and joseph lavorgne. Joe, the stock market, the bond market, the copper market, all acting like the Economic Future is much brighter now in the wake of this election. Do you agree . Absolutely. Youre looking at did you say absolutely . Absolutely. As joe was saying, youre possibly unshackling a lot of businesses where sentiment has been poor, if you look at Business Confidence in this cycle. Where you could really harness sort of the innovation creativity and dine ovism and te steepening of the yield curve and how thats a good predictor of growth. Ive been a good predictor on growth, ive been proven right, but however my forecasts are in the midst of changing. We have been growing at 1. 5 , we could be growing at 3 , 4 . We could get faster growth. David, do you agree . I do. Weve been talking about passing the baton from monetary potcy and stimulus which has not worked, to fiscal stimulus. The risk is to the upside. You will have lower taxes, an increase in infrastructure spending, how we pay for it is another issue, but this is very pro growth. Tell me how as a stock investor you deal with Interest Rates rising. Right now stock market rates are rising even though Interest Rates are rising. Can that go on . My good friend larry kudlow said a year ago the only way the fed can get out and not destabilize markets is if real rates rise and the fed follows the forwards. Thats what were seeing. When the market does it for them. Yeah. The markets are reacting on growth. If breakeven inflation rates rise, the fed follows higher real rates in anticipation of growth. You are not looking at it disintegrate with higher yields. Weve seen the correlation in changes between rates has been positive. Thats the point joe is making, why are rates rising . The Growth Outlook looks better. Which joe . This joe. This joe. I wore the glasses for you today. You didnt say anything. But i think the risk, you hear so many people talking about the equity risk premium, what happens if that premium gets compressed, right now its around 4 . It still looks attractive and it looks like theres opportunities. I drill down at the individual level. For years i said why on earth would you buy a tenyear yielding a little more than 1 when you can buy a stock yielding maybe double or triple that and perhaps you get underlying asset appreciation as well. Now that has just shifted, right . The tenyear yield is higher than the s p 500 at this point. Now the calculus on individual stocks starts to change. To me, i get worried about stocks that were bubblicioububb. Thats what youve seen the last couple of days a rotation out of the stocks that people thought could grow in a soft environment, f. A. N. G. , if you will, the market brought that out in anticipation of more growth. Financials are a high beta on the economy. If you think the economy is going tobetter, financials should do better as well. We should remind everybody, f. A. N. G. Is facebook, apple, netflix and google. Everybody wanted low volatility, defensive, high dividend yield. That investment thesis is coming under pressure. For us, valuations are our guide. Cyclicals still look cheap relative to defensive. I dont know why you wouldnt follow what we see playing out in the markets. The analysts in those sectors . How long have they been analysts . Have they been analysts in a risi rising Interest Rate environment . Their whole world is potentially i havent been an anchor at cnbc at a time when Interest Rates were going up. We could be going into a whole new world for a lot of people. It also depends on what this fed does. Be careful what you wish for and the fed stan is right, rates are been stupidly low for a long type. We had a bond bubble, half of sovereign bond markets were trading at negative yields. Which is insane. How does the fed respond . Do they still go slowly. Yellen said she wants to run the economy out. Lets see if she does that and not short circuit the move. Guys, thank you very much. Thank you. Highlights from yesterday we want to show you. Pershing square ceo bill ackman making comments yesterday. His investment in valiant has been a huge drag in pershings performance. Valiants been down 80 this year. We have had one problem. What is that problem . The problem is valiant pharmaceuticals, the mistake is for the first time we bought a company that had an incredibly successful track record, an activist on the board of directors, a ceo we thought had done an excellent job and we got our head ripped off. Ackman said Michael Pearson went crazy and that changing the companys name may boost the earnings. He also reacted to trumps win. I woke up extremely bullish on trump, believe it or not. My thinking is as follows, United States is the greatest business in the world. Its been undermanaged for a long period of time. We now have a businessman in the president s as the president , and he has power. Because republicans control congress, republicans control the senate, hes going to launch a major infrastructure program. He will take Corporate Taxes down to a sensible level and get rid of loopholes. Hes going to get a lot done. Also spoke to Lloyd Blankfein about president elect donald trump and the rally in stocks. His policies are market supported. Now, im not saying its good or bad. You would have to draw a different set of conclusions depending on your attitude about everything else. Just as far as asset prices in the market is concerned, in the nearterm, how can they not be supportive. More highlights this morning from the conference still to come. In the next half hour, well show you Shari Redstone talking for the first time about viacom and cbs. Well show you the first Public Comments ever made about that tieup. Poor lloyd, still so shellshocked from the levin interrogation from a few years back. Hes even afraid to say the private sector you remember that . Lloyd, would like to. If he does, someone will say, my god, youre pro wall street. Oh, no maybe i am. But im not. But i am. But if Elizabeth Warren is watching, im not. One thing we did talk about was donald trump ran images of lloyd in a very negative ad that was about him and his connection to Hillary Clinton. Well see you werent here yesterday. He has own reasons. You werent here yesterday. Theres the candidate, and the person that actually has already won. Well see what happens. The first day i landed in greece back in 2010 on the day of the crisis, huge poster, theres Lloyd Blankfein. Ceo jack rivkin died. He was a ceo at altegris. He had been at a lot of Great Companies on the street, including lehman brothers. He was on a lot. During his long career, i think well go over some of these. He was in the investment industry. And canadian singer and songwriter Leonard Cohen has died. He was known for his poetic and lyrical music including hallelujah. He was inducted into the rock n roll hall of fame in 2008. He was 82. I was trying to figure out how old jack was. People are always older than i think they are. Well miss having him on. Time is always moving so quickly. When we return, reaction to disneys earning miss. Well show you what will happen with the stock after some comments that were fascinating from ceo bob iger who also talked about the health of espn. Squak returns with that in a moment. President obama will honor our nations veterans today. He will pay tribute by laying a floral wreath at the tomb of the unknowns. Its an annual observance at Arlington National cemetery. He will make some formal remarks thanking veterans as well. We thank them all as well. Disney reporting earnings and revenue that missed wall street expectations hit by lower Advertising Sales and subscriber losses at espn. Ceo bob iger spoke to julia about it. Our outlook on espn is positive. You are looking at a category Live Television sports that is generally very healthy. It adapts very well to mobile platforms. Thats where were moving espn. We feel good about espn. Were dealing with nearterm issues on the sub side, eyes wide open on that. Not trying to hide anything. We think longterm prospects for espn are fine. The stock fell initially on those earnings reports, but turned around after igers comments. Joining us to break it down is steven nicholas. Help us walk through your head line, if you will. Our view is that this is a tale of two companies. You have the theme parks, the Consumer Products businesses, which have been running as well as anyone can imagine. The studio is number one by a far margin, that drives cp, theme parks, concerns about zika in florida are not showing up. And on the other side you have the cable iside of the business. You have challenges around espn in particular. Espn is the highest sub channel they have, theyre running that and its a challenge. Whats your price target on the company . I think around 100. So 96 not bad, but still a buy for you. Hold rated stock right now. Has been since june or july. The comments that bob made which did seem to lift the stock a bit, theyre not lifting in your mind . You know, i think what the whole company did yesterday was very good. They reset expectations for 2017. This is not a company that gives a tremendous amount of guidance. They gave more granual directional guidance. That being said, the challenge around subscribers are not going to erode. The larger debate is all of these vmps being launched, will they get new subs or people trading down from an existing service to one of these. Whats the next thing youre looking for . From our perspective, probably some level of the subs of espn not going positive, the other thing is is there a larger path to direct to consumer. The hard thing with these fully would you like to see them fully acquire bamtech . Yeah. Bamtech is the business behind major league baseball, this is the overthetop technology. Yeah. Also works wi s wits with hb. Not necessary. Could they ever take that bamtech business and turn themselves into a netflix . Theying a great tremendous more rights than they have the broadcast capacity to put out there. So theyve done a lot of using that channel to have all the rights that they are not currently airing to put on that channel. That being said, theres a limited number of people. Over time what espn will be is a much higher priced product. Since we asked the question of just about everybody, is there any trump implication, if you will, for disney in your mind . Besides broad, just general economic not really. In my space, the time warner at t one is in the cross hairs. You didnt see iger the one thing he wants from a Trump Administration that was all over the wires yesterday . That was all over, about the lower Corporate Taxes. And at t, we talked about that yesterday in reference to the candidate versus the way the guy actually governs. Im sure hell look at the rulings of the s. E. C. , people will talk to him about vertical integration, how it benefits and doesnt benefit certain people, and im sure the rhetoric he used when campaigning will change. Coming up, well talk to the global head of commodities of S P Dow Jones. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. The Global Investment management businesses of prudential today, were seeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Great music, love it today. Welcome back to squawk box. U. S. Equity futures suggest a weaker open. Its been a strong week for the major averages. Dow would open lower by 26 points, s p by 8, and the nasdaq by 47. The mexican peso has broken through 21 pesos per dollar. So, it continues to suffer on fears about what will happen with trade with mexico. Then, i brought this up earlier about when was the last time we were in a rying Interest Rate environment. With stocks going up. Just basically 20year chart of the tenyear yield. There was a time from 2004 to 2006, thank you very much to peter shackner for this information, 15 straight fed Interest Rate increases. We got slightly rising Interest Rates. The longterm trend for the tenyear yield has been down for a long time. There are many, many analysts on wall street who are young and never lived through a time where they had to contend with just the opposite. Not just wall street, obviously. But that chart right there, to a guy like mark grant doesnt necessarily mean its not ready to turn back down. Were not out of the woods yet. This could be a false start. We need a breakout above there, which im so hopeful for. The inflation, get out of the deflation that has wracked japan for 20 years. And the animal spirits that have been conjured up so far. Did you see the volume at discount broker houses . I havent. This is a feeling you havent felt on wall street for at least eight years, maybe longer. Well see. Maybe its a false start. Maybe the market doesnt always anticipate things correctly. This is another one. A lot of things are moving in sync. Think about copper. One big mover since trumps victory, not just one but several. Its copper. Its up nearly 30 in the past three weeks. When we asked Stan Druckenmiller yesterday why Interest Rates were rising, he went to the key industrial metal. He calls it dr. Copperment he says the rise of which could be a bullish sign for growth. Dr. Copper, have you seen him lately . Its been rising i havent looked in the last couple of days. Hes up 4 today. Whoa. Interest rates have been at stupid levels. Theyve been manipulated by Central Banks. Theyve been held down. Like a beach ball held under water. I think Interest Rates will go up. I think theyll go up a lot. I think theyll go up a lot because, a, theyre just at insane levels. B, im optimistic about Economic Growth. Joining us now with a look at the commodities pictures under a President Trump is jodie gu gunsburg. Good morning. You know, there are false starts in all markets that may not be bor borne out by what the future holds. Is this real . For copper, i disagree with the dr. Copper comment. I dont think dr. Copper is so smart. We looked at the relationship between copper and gdp growth in different r. Different areas of the world, we find relatively low correlations between growth and the price of copper. Where we do see a relationship is with inflation. Copper is one of the best inflation hedges of any metal. It is a much better inflation hedge than gold. That combined with the president elect trump and a republican presidency could mean high growth for copper because we may be expecting more inflation and the best performance for copper has happened under republican presidency. Sounds like youre splitting hairs, because the inflation comes from the Commission Growth improving. When do we get how does so we can have inflation but stagflation . Maybe a matter of order. Copper is used in order for the construction, the building. So you have that Natural Resource there. Then were does the inflation hitters haves the typing of the gdp growth . So i think that it may not be a separate story, but a matter of where are we in the cycle. Have you done analysis as you watch the rise of copper what happens to the the pace of the rise of inflation . I ask that because to the splitting hairs issue, if you think copper is signaling inflation, that means Interest Rates are going up. You agree with druckenmiller to that extent. Yes. In that line of logic. On the broader picture, the dollar is also really impactful on commodities. You cant look at inflation alone. But copper, along with nickel and lead and silver, some of the metals that are heavily used in industry are the most sensitive to a drop in the dollar. For every 1 drop in the dollar, weve seen as much as a 6 or 7 rise in some of these metals. The other thing that was kind of interesting, druckenmiller yesterday, andrew, said i just hope President Trump gives all the economic oversight to mike pence and paul ryan, because druckenmiller thinks paul ryan knows exactly what to do in terms of the economy. Dope know if you saw paul ryan yesterday i saw him with donald trump. It happened duriaughteuring po lunch. The Affordable Care act was written by the house, written by im not necessarily sure that trump is going to see what paul ryan comes up with and says, no, i dont like that. I need a populous tone to everything. I think paul ryan will be a major part of what happens in the future. You are bullish on the economy under a Trump Presidency . Sounds like youre almost your analysis of whats happening with copper is almost to dispel the idea that it will be a positive for Economic Growth. There are some sectors where it will be positive and some not as positive. For energy and industrials it could be mixed. I would say negative except for where we are in the cycle of commodities. What would be negative . Explain what you mean. Something would be negative for commodities . Generally on average, the Energy Sector and the Industrial Metals have outperformed in democratic presidencies. So if we go back and look at the policy, times the policies that republicans put in place actually dont kick in until the democratic presidency takes over. Commodity cycle is longer. Weve seen that again and again when you have someone tell you when the stock market does better under a democrat, thats because the policies put in dont happen until ive seen that happen again and again. Cant tell people that either. I think where theres opportunity is in agriculture, agriculture tends to do well under a republican presidency. All the grains. So 7 out of 24 commodities perform better in republican presidencies, but all four of t them sit in that seven. The other important commodity that does well with republicans is gas. Between grains and gas, potentially doing well, you have a real story for inflation there. Those are two major inputs into the cpi. As far as where do you play for the inflation protection, i think its the grains and gas. Then industrials, with the infrastructure comments, do have potential support there. And copper has done best under a republican president , even though on average again its the democratic rule that drives copper more. Okay. Got it. Jodi, thank you very much. Coming up, alibaba looking to set a sales record on singles day as consumers in xhchina spe billions on the worlds biggest sales holiday. As we head to break a quick check on whats happening to european markets now. German dax higher, ftse lower by a quarter percent. Cac lower by three quarters of a percent roughly. Singles day is the worlds biggest shopping event. Its for Chinese People who are single, theyre encouraged by eretailers to shop online. Alibaba saw 1 billion in sales in the first five minutes of singles day and are expected to break another sales record this year. Chery kang is live in shenzhen with more. Thank you very much, we just broke through that 15 billion u. S. Dollar threshold and we still have four hours to go well see what kind of record theyll be making tonight. Yes, we also broke last years record sales of 14. 3 billion. Some were estimating maybe well hit the 20 billion threshold that would mean a 40 jump from last year. But whether we hit 20 billion or not, it is still a record. And given what we started off with in 2009, working with 27 merchants, alibaba owns this day, singles day, where singles feel sorry for themselves and go out and buy themselves a gift. So now theyre working with 100,000 merchants around the world with names like apple, maserati, target joining the singles day discount for the first time this year as well. Yes, there are some questions about how sustainable the sales growth will be when it comes to singles day sales. There are some questions about whether this actually shows the real chinese consumption power given up we are hearing a lot of chinese consumers waits for days, weeks and months in some cases to make their purchase at steep discounts on singles day. Of course theres the returns figure that u. S. S. E. C. Is very much interested in looking into at this point. Certainly this is a day that alibaba shows off its prowess as the ecommerce giant in china and ecosystem it tries to build, starting off with a fashion show in october in shanghai, trying to make good with luxury brands. Sort of shaking off its linkage with fake goods on his platforms. The gala last night with global celebrities like kobe bryant, one republic and the beckhams wa rallying support for the preesales hype. Well key what record it makes tonight. Thank you, chery. Chery kang. Alibabas president will join squawk on the street for a talk on sales at 9 30 a. M. Eastern time. Thursday night football, the Baltimore Ravens beating the winless Cleveland Browns 287 last night. The ravens hold sole possession of first place in the afc north. The browns have now lost their last 13 games dating back to last season. Coming up, viacom and cbs chairman Shari Redstone making her first comments about co combining the two companies. And coming up, more on the dow hitting an alltime high. We return with a lot more in a moment. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at t, and security that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. What are you doing . Getting your quarter back. Fountains dont earn interest, david. You know i work at ally. I was being romantic. You know what i find romantic . A robust annual percentage yield thats what i find romantic. This is literally throwing your money away. I think its over there. That way . Yeah, a little further up. What year was that quarter . What year is that one . 98 thats the one. You got it nothing stops us from doing right by our customers. Ally. Do it right. Lets get out of that water. Welcome back to squawk box. Dan loebs hedge fund taking new stakes in dell and increasing holdings in facebook and alphabet. Shari redstone speaking publicly for the first time vict Shari Redstone talking about reuniting cbs and viacom. She never wanted cbs and viacom to separate ten years ago. They hold both companies. Sumner decided to split cbs and viacom a decade ago, but early this fall, redstone urged the companies to explore a merger. I think it makes sense at this point in time to explore, whether its in the interest of both companies to merge again. When you look at all the changes taking place in the industry, youve talked about some of them today, scale is going to matter. Its going to matter to the consumer, whos looking to choose a broad array of content, what do they want . The more content you can offer, the more choices you can give them, the happier theyre going to be. Redstone added while she supports the merge terrify, both companies with stand on their own and be great. She also talks about the future of the media landscape. I think that theres going to continue to be mergers, theres going to continue to be acquisitions, theres going to continue to be consolidation, whether its within our verticals of content, whether its outside our verticals of content, i think its going to continue to evolve. I knew she was from massachusetts, but shes really from massachusetts. Im so glad that she did this. Because we never really get to see her i cant remember the last time i heard her talk. Ive known her for a very long time and shes very impressive and really understands the business. I almost wanted to have that conversation, just so people could know her and understand who she is and the way she thinks about this stuff. Her father, obviously, very impressive over the years. But she gets this business. And its going to be very interesting to see what happens, ultimately, to both these companies. You know, she says she wants them to explore a deal. She wants more than just tan exploration. But given, as she said, the legality, she cant really say much more than that. In the meantime, we told you earlier what mr. Blankfein had to say, Lloyd Blankfein at Goldman Sachs about the president ial election. Heres what he said when we raised the issue of jpmorgans Ceo Jamie Dimon as a potential treasury secretary. Look, i mean, theres certainly attractive aspects of that. I can think of a couple hed be a great, hed be a great treasury secretary. And hes been a terrific competitor, and i think in that one move, you can kill two birds with one stone. You know, that guy, that guy is always making us not only saying smart stuff, but making us laugh, too. So the word is that jamie dimon isnt interested. Hes not but hold on one second. Wouldnt you want to hold the job that was held by Alexander Hamilton . I mean, come on i dont know if we have tape of it. I said to Lloyd Blankfein, if jamie doesnt take it, would you take it . And hep didnt turn it out so quickly. And what irony would that be, the Goldman Sachs ceo becoming the treasury secretary. You saw the play and love the play i read the book, long before i saw the play. I think the good news about hearing a name about jamie dimon floated out there, even if its unrealistic, is the fact that it demonstrates to some degree how radically different it would have been under Hillary Clinton. Think how radically different it would have been. Elizabeth warren wouldnt want i was going to Say Something different. Just how seriously donald trump is taking this. And to the degree that people in the markets would say, okay, hes serious about this. Now, i dont think hes ultimately going to get jamie dimo dimon. I think the greater likelihood would be steven manucci, but to a degree, it shows a semblance and vigor about what this is all about. And had Hillary Clinton won, you wouldnt have somebody from industry. Weve talked about that a lot. Coming up in the next hour, we have more highlights the from the conference. Roger goodell weighs in on the Trump Presidency and what it means for nfl. Weve been talking about disney. The companys estimates falling short, but the stock rallied after hours. This morning, barclays is upgrading disney to equal weight from underweight. The analysts suggest disney is still relatively expensive media name on an absolute basis, but adds that downside should be limited, because time warner is in the middle of a major deal. Cbs and viacom are doing their own m a dance and theres potential rotation out of technology stocks. And for the second day in a row, thousands of protesters took to the streets in several major cities following the election of donald trump. Rallies heated up in portland, oregon, where Police Publicly declared a riot because of criminal and dangerous behaviors. Sever thousand demonstrators gathered in the center of the city. Some smashed shop windows and threw firecrackers and late last night, trump sent out a tweet response to the demonstration saying, in his words, just had a very open and successful president ial election. Now professional protesters incited by the media are protesting. Very unfair. Do you think he wrote that, or did somebody else no, he wrote that. That was him. They let him near the phone. The funniest thing was about a year ago before any of this got nearly this serious, people did a parody of him tweeting, and it was the funniest thing like, he would tweet about a foreign person and go, chews with his mouth open, wife is awful, it was a parody, but there are certain phrases that do sound like him. He skipped the other one. Then this morning he woke up and got very president ial this morning. He seemed to change his typune. And he said, i love the fact that the small group of protesters last night have passion for our great country. We will all come together and be proud. Is that more president ial . Not sure who wrote that one. Oh, because it was president ial. Thats a good one, andrew. Is that more president ial than what he said last night, what he said this morning . I would say, by the way, the email last night raised a lot of the did you hear that . Who wrote the one today, it was president ial. Since hes not president ial. Yes, yes the comment he made last night, when you talk about the unattractive look of punching down after winning. That was your innuendo, it could not have been him. You cant help yourself. Coming up, full analysis of the trump rally, straight ahead. Well talk to richard kernel, black rocks chief investment strategist. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound i wont. 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 a trump rally. The dow climbing to an alltime high. Investors the betting a Trump Presidency will ignite an economic spark. The latest on where this market is headed and what areas of the economy could benefit. Well hear from the chief investment strategist from one of the Worlds LargestMoney Management firms, black rock, our special guest. Potential trump cabinet picks. Who will be assigned to the white house staff and what will it mean for your money and your business. Edward connard joins us. Plus, nfl commissioner Roger Goodell sounding off on the Election Results and what a Trump Presidency means for the future of the league. His comments, straight ahead, as the second hour of squawk box begins right now. Announcer live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box right here on cnbc. Im Andrew Ross Sorkin along with joe kernan and michelle carusocabrera. The futures this hour look like theyre going to open up after what has been a remarkable two days in the market after Donald Trumps election. Dow looks like it would open off about 19 points, nasdaq to open down about 33 points and the s p opening down about 7 points. Heres whats making headlines. Were going to get another retail snapshot this morning. Jcpenney releases its quarterly numbers in just about half an hour. Analysts think the company will report a loss of 21 Cents Per Share on revenue under 3 billion. Shares of dow component walt disney are higher in trading. But investors were cheered by ceo bob igers more optimistic comments on the Investor Conference call. You can see its higher by a little more than 1 . And some ceo changes to tell you about. Waste management has named cfo james fish as ceo, seceding the retiring david steiner, whos been ceo since 2004. And Exchange Operator cme group says executive chairman terry duffy will add the ceo duties. In national news, president obama will honor our nations veterans today. The president will pay tribute by laying a floral wreath at the tomb of the unknowns, an annual observance at Arlington National cemetery. President obama will also make some formal remarks, thanking veterans, as well. All right, the dow closing at new record highs, as investors ride the trump rally into financials and industrial stocks. Investors seem to be betting that the election will provide an economic spark. Joining us now is Peter Bookvar of the lindsay group, a cnbc contributor. So youre with larry a lot, lindsay, you know he was brockenmillers roommate. Yeah. College buddies. Where was that . At boden . Yeah. Amazing, because later, brockenmiller was talking about larrys book, which was a stepbystep chronology of the emergence of the ruling class over the last eight to ten years, would you say . Even further back. And what that does to the country as a whole and to prosperity and everything else. And dan pointing out that may have been an answer to what happened on tuesday, an answer. Yeah, tuesday was almost a timeout on the growing encroachment of government and to the economy. Progressivism. Great piece in the journal today. And the fed, too. The fed, to me is a Fourth Branch of the government. I got halfway through it. The progressive government cant be imposed from the top. Look what happens. Whats going to be left of the Obama Presidency after all was said and done, do you think . Thats a great question. I think the republicans try to make it as little as possible. And you think thats against the will of the people, or that is the will of the people . Well, lets take health care. Ask any middle class family that is tired of paying huge deductibles for their medical bills. They want some help. They want some relief. Dodd frank is vulnerable, is it not, andrew . Do you think thats possible to unwind . Its interesting, maybe well show some clips of it. Lloyd and i talked about that yesterday. He thinks theres a possibility of certain things to be rolled back, but not not dodd frank . No, no, certain parts of dodd frank, but not its entirety. And im not going to disagree you at all about the failures of obamacare, but we talked to silvio berwell, the secretary of health and human services, which is the obamacare czar, and we talked about what it looks like in a trump world. And even though he talks about it in the context of being repealed and replaced it, the replacement version is not going to be wholly i mean, its going to be different, but its not a complete it will have a different name, therell be lots of different and this is something we agree on. Were back to the candidate versus the guy actually in power. And there are 21 million youre not going to take things necessarily away from people. And i think one of the worries of the of people that help trump get elected is that he might waver on some of these things. And yesterday, when he said, im going to come to president obama for counsel and everything else, i think people like limbaugh and others were like, whoa, you dont need to suddenly start ingratiating yourself with the people but the one thing is, though, the deficit hawks in the world, in an odd way, one of the other conversations of the camp yesterday was what happens, that the debate is not going to be between republicans and democrats. Its going to be between republicans and republicans, the deficit hawk crowd thats going to say, if youre going to keep obamacare or elements of obamacare this election was how its all going to play. Do you think he ends up a doing a lot of what paul ryan wants to do . Do you think he does a lot of the stuff like building walls and deporting people . What do you think . I think trump is going to put his tuxedo on and him and melania will have a lot of dinner parties and travel around and leave policy to the policy makers. And sign the bills when they come to his desk. Exactly. And paul ryan will be a driver of those policies. And pence. So what does that all mean . We want to talk about youve been negative for so long, are you capable of being positive . You capable of being positive on the market. The central bank influence on the markets. Im optimistic that the Regulatory News around the economy is going to loosen up. It will be bullish with lower taxes. The problem trump faces is we have an unwinding of a tremendous bond bubble. This is the biggest bubble weve ever had that is now leaking. You want to go straight up. Dont you think we should tread lightly . Yes. Thats the thing, is that Interest Rates now, the rapidity of this move is whats dangerous, not the level of Interest Rates. Theyre historically low. Its this the rapidity of this move is whats dangerous. Peter, you were on here several months ago, talking about a canary in the coal mine, which is the yen. Coal mine. Whatd i say . Cold. It is cold down there. The japanese jgb market, where those Interest Rates started to rise. Coal mines are coming back, by the way. So ive heard. So, weve been talking for some time, if we were at a Pivotal Moment and a change in the way that Monetary Policy was going to be done in the world and a change in the Interest Rate picture, the last couple of days seem to confirm that belief, that you raised. How far does the tenyear yield go . What does what drives it or not . Right. Well, it can easily go to 2 1 4 in the shortterm, thats where it was at the beginning of the year. But this bubble was at epic proportions. Fit starts to impact the economy through a reduction in housing activity or auto sales, maybe we drop a little bit. But rates are going higher over the next couple of years. The july lows in global Interest Rates, we may never see again in our lifetime. How high . I mean, if you go so if nominal gdp is around 3 , the tenyear yield can go to 3 . The fed funds rate, which is 37. 5 basis points, in a more normalized world should be 1. 5 to 2 . And this could be this could get good if the yield curve steepens and the market moves for the fed and all the fed is catching up and no one is going to care that theyre raising. This will be eventually good. Theres free lunch here for what the Central Banks have done. We have to deal with the consequence of that shift higher in Interest Rates. Because the fed and other Central Banks have created an economic construct and an asset price construct based on very low Interest Rates. There has to be an adjustment. And its going to be hard to service our the debt as rates go up, unless were growing much faster. Ill be glad to do it. Maybe we might grow, but if those guys havent reformed, havent had any dramatic changes in their leadership to make their economies grow, it could be crazy that we go back to the italian debt crisis as they try to for debt per gdp, theyre one of the large test in the world. The italian Banking System owns a lot of italian bonds. If you get a vote no on december 4, that would be a big setback. So you have this sluggish Global Growth and a rise in the cost of capital. So with trump, im bullish on what hes doing, and this normalization of Interest Rates, but i dont think were going to feel the benefits of it until maybe year two, three, four of his presidency. The next year could be bumpy as we transition out of this low Interest Rate environment. Not only is he not president , hes only been president elect for two days. Right, reagan was elected in november, 1980. He took office january 81. The stock market didnt bottom until august 1982. The hostages came off that day. This bond bubble, again, is epic. We have to get through it, no matter whos the next president. Im thinking of all the people with bond portfolios and where they are in terms of duration and some of these people could really suffer, if this keeps going imagine the retirees that have been forced into anything with yield, just to pay for their retirement. The pain that theyre going to feel did they really go anywhere . You know, theyve been but 3 is, was a godsend, compared to their cds. People try to talk me into munis at 2 . Im not going in 20year munis at 2 . The 3 to 4 yield they got can be lost in a kocouple of da. But somebody bought them, because thats how those yields got so low. So you saw that tenyear chart, its still in a downtrend. It is. Are they bringing back the 20year or the 10year. When will we know . Ill repeat again to the bond bull market is over and the yields in july well never see again. When you say repeat, does that include the last five years . No, no, no. I wrote a piece for cnbc. Com in august im sorry, in september, calling the end of the bond bull market. That was the first piece on that . Yes. I said to michelle, the canary in the coal mine was the jgb market. Coal mines are coming back. And theyre very cold. Thanks, peter. Coming up, who will be part of the president elects administration . Starting in january, the jockeying of positions has begun and well discuss it after the break. Later, the ceo of kbw on the possibility of rolling back dodd t dodd frank and other regulations. That conversation, straight ahead on squawk when we return. Welcome back to squawk box. President elect donald trump visiting washington yesterday, meeting with president obama and other key political leaders. For more on whats next for trump, lets bring in edward connard, author of upside of inequality. Ed, thank you for being here. Thank you. What do you thinks going to happen here . We keep talking about, weve heard a lot of. Different names bandied about. Even heard jamie dimons name bandied about as a potential press secretary. I dont think they can put somebody from wall street on given the public sentiment about wall street. Do you think thats true . Ive always thought steve ma nuchion might be that person. He worked on Goldman Sachs. Hes worked on wall street before, a big troll in hollywood these days. I wrote a book that was very supportive of wall street and very concerned about Financial Regulation that would kill credit for the middle class. So i dont think it would necessarily be a bad pick. I think it would be quite a good and thoughtful pick. But i think the publics not a big part of the public. You remember when we debated barney frank, he said, youll never overthrow dodd frank, because none of the democrats want it and half i mean, all the democrats want it and half the republicans but if you believe the republicans control the white house, the house, the senate now, dont you think you could take snb from wall street and put them in a role like that . I think it would be better to not do that, but to make reforms to dodd frank that would make al greenspan was on yesterday and said, the whole thing should be scrapped from top to bottom. Get rid of it, it was a disaster. It shows they didnt reduce the risk in banking at all. All theyve done is squeeze out credit in the middle class. But to just scrap that many pages and start from scratch, pretty tough, too. On the other side, interestingly, donald trump during the campaign, at least, and what he said during the campaign and what hes going to now do in the position may be Different Things. But he did talk about bringing glass steagall back, getting rid of dodd frank and bringing back do you think thats possible . I think its possible, but i think its a really bad idea, to tell you the truth. Can i go back to your idea that you dont think hell appoint anybody from wall street. Dont take this the wrong way. Youre establishment, by the way, so am i. I dont think we know anything about what the american people, you and me, what they really want. Well, ill tell you i think donald trump right now has tremendous political power. He amplified these people, he gave voice to them, they came out for him, there were new voters. People in their 40s and 50s. I think voting for the first time, i think he can appoint whoever the heck he wants at this point. He might put sarah palin in as head of the epa. Someone said that. Think about that. I want to argue this, which is, yes, im a member of the establishment, yes, im out of touch with the world, but i did grow up in detroit, in the suburbs of detroit. My dad worked at ford, my sister worked at ford, all my friends worked on the auto industry, i worked on the Assembly Line as an automotive engineer and i think im very much in touch in the way the midwest worker thinks about trade and immigration. I would caution you on the following thing. You cant do that. Everybody said, oh, donald trump cant do that and win, donald trump cant do that and you cant do that thats a fair point. Youre a establishment, what, a establishment republican . Oh, yeah. But you live on what street . You live smack dab in the middle of this place. Im sympathetic to wall street and im sympathetic to reforming the banks properly. Do you think, ultimately you think hes not going to put a wall street person. Look, the cynical view yesterday if you were reading it is that the jamie dimon name was floated and im sure he would have taken him if he could get him, but floated knowing that he probably wouldnt take him, but it sends a message to wall street to say, heres a serious guy whos thinking about this stuff. Even if hes not even if its not in the cards. I just think he has a very populist streak and im not sure how deep his understanding of banking. Its a very, very complicated area. And the populist streak, you know, we know what that was about now. That certainly served him very well. And i wasnt disparaging sarah palin, necessarily, either, when i said it. I know im going to hear from people who say, whats wrong with sarah palin. But the notion that he would have her for something to do with the environment or the department of interior or something. My view is that he lacks experience and what would serve him well is bringing in a lot of credible people with a lot of experience. Government experience . Macro economic experience . What about as a businessman . You dont learn how to delegate to people who know what theyre doing and make bigpicture decisions. Do you think a community ki activist chance as far as experience goes, because of one term in the senate. My own experience is this, 30 years in business, i think i know a lot about business, and ive spent 8 years trying to understand macro economics since then, and theyre different. Not to say there isnt overlap and valuable lessons to be learned in business. Get the best people you can find and delegate and make overall decisions. Im talking about more marketing what about bringing in, you know, hes going to listen to pence and paul ryan. Were you surprised yesterday at how those two guys looked like they were going able to Work Together . I think theyll have to Work Together, and i think you have to fuse the Establishment Republicans with this new trump blue collar democrat who is antitrade and immigration. We wont know how to act when we see, who writes the bills. Is it congress . We dont know how to act when the senate does something, the house passes it, and the president then signs it. We may all faint when we actually see that happen coming out of washington, d. C. It could happen with tax reform. I think were going to see Corporate Tax reform. The law might actually change instead of through executive order. I think it will be extraordinary. I think theres a real opportunity to fix some of the damaging things that were done in the two years when the democrats controlled we might actually see laws being passed and signed into law by the president. I dont know how much of a market prognosticator you are. Where do you think the market ends up, not in the next week or two, but in the next year or two . Yeah, i think that if hes thoughtful, he can accelerate growth in the economy. I think one of the biggest opportunities is to shift immigration from lowscale immigration to highscale immigration, ultrahighscale immigration, and that could have a big effect on growth, over the long run. I always think that markets are pretty much properly priced. And i think that growth comes slowly, because you have to build institutional capabilities like Silicon Valley in order to grow. So the idea that were immediately going to grow quickly in the short run, i think but i think the market can look forward and anticipate say, is this high quality or low quality. One of the conversations we had yesterday was eric schmidt from google or alphabet. And with the exception of alex thiel, Silicon Valley is not happy. Theyre worried about the comments hes made about amazon, the comments hes made about apple, the comments hes made about immigration, they have a very different view when it comes to carbon and issues like that. How do you think this all plays, from Silicon Valley and sort of that engine of innovation, entrepreneurship that we talk about. I think theyll put their heads down, go back to work, and try to make millions of dollars. And stop telling people what to think. And have very little effect at all. That will be my take. Ed, great to see you this morning. Coming up, what have the clintons been up to since the election . Details after the break. Plus, nerds and gaming geeks are celebrating the addiction of the addition of a classic game into the toy hall of fame. That story, straight ahead. And as we head to break, check out todays aftlac trivia question. Who was the only u. S. President to serve more than two terms. Come on, really . D aflac pays ca. Aflac isnt Major Medical enough . No whos gonna help cover the holes in their plans . Aflac like rising copays and deductibles. Aflac or help pay the mortgage . Or child care . Aflaaac and everyday expenses . Aflac learn about one day pay at aflac. Com boat blurlbrlblrlbr 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. Before we went to break, we asked you, who was the only u. S. President to serve more than two terms. We hope the majority of you knew this right off the bat. Franklin d. Roosevelt. Okay. So the question might be, what have the clintons been up to since the election . Well, it seems they have been hiking. A womans walk in the woods put her face to face with the former president ial candidate. Hiking in chappaqua, new york. Secretary clinton and the woman hugged and posed for this photo. The photographer, well, we think former president bill clinton. What a coinkydink. Thats amazing, isnt it. If i saw 14 secret Service People scouring the woods, thats probably does she still get secret service . He does, if he was there. How many people does he get . It would be a big crowd with them out there. Have you seen people who have you heard whats happened here. Holy smokes. This is a traffic problem. I know. Its an issue. And im told, by the way, that he has told friends that he plans to come here on weekends. So the traffic is going to be something for the next 40 years. Trading the trump rally. Well talk with black rock. T. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Welcome back to squawk box. Among the stories the front and center at this hour, investors could be getting some additional clues as to what could happen at the december fed meeting. Stanley fisher is going to be giving a speech in just about 09 minutes on Monetary Policy and the global economy. Hes going to be speaking at an event in santiago, chile, this morning and well be monitoring that. Separately, a judge has ordered amazon so set up a reimbursement process for parents whose children made inapp purchases without their permission. However, the judge rejected the ftcs request for a 26. 5 million lump sum payout. I have to tell you, my greatest worry about alexa, we have alexa, the echo in our house. My boys talk to alexa all the time, they ask it the weather, the this, the that. They havent figured out they can order stuff on it, but when they do, we are going to have problems. You dont like all those microphones in the house. I have two words for you. Youve already called me nuts. No, billy bush yeah, hot mike i have a hot mike in our house all day long. I appreciate that point. Alibaba, we should tell you, racking up billions in sales today. Thats with the ap, and its annual singes day event, it passed last years total of 13. 4 billion, with nearly nine hours left in the day. But year over year growth, a little bit slower than last years 60 jump. In the meantime, we want to tell you a little bit about yesterdays conference, because nfl commissioner Roger Goodell joined us and pointed to the downturn in ratings or we pointed, rather, to the downturn in ratings, of the league this season. Largely the result of changes in media technology. Goodell pointed out that the league is adjusting to the changes, including more options for viewers, like their deal with twitter, which streams several games live. Goodell also talked about the election, and the impact it could have on the league. A stronger position about regulation and unnecessary regulation and freeing up that. I dont know whether that will have an impact. A lot of what impacts us, andrew, is the media world, how thats transitioning. Technologies transitioning, how we reach our fans. So thats something that were particularly interested in, with obviously, is making sure that we have the flexibility to use that technology to reach our fans. We will have some more highlights from yesterdays conference in just a little bit. We going to do jcpenney right here . Lets do that right now. Jcpenney reporting earnings, worse than expected loss. Samestore sales fell short, slight miss in revenues. Stock is off by 8 in the premarket trading. Yesterday it declined by 5 as part of the overall rally. Well dig into this a little bit later on, but were running the numbers there below, but a miss on revenues, slight, samestore sales were down, versus an expectation that they would rise by more than 2 , and then, worsethanexpected loss, as well. A loss of 22 cents rather than a loss of 21 cents. The dow, surging to record highs at more than 5 this week, as investors bet that a Trump Presidency could spark Economic Growth. Joining us now, richard turnal, chief Investment Strategy at black rock. Good to have you here. Thank you. You agree with that bottom line, the markets are rallying . I think is it correct to believe that the economy will get better as a result of the election, richard. Weve seen a significant Inflection Point in markets, really taking place since this summer. Thats about increasing what we describe as reflationary trend. And thats driven by signs that wages are picking up, particularly in the u. S. , Central Banks, globally, which are prepared to let inflation run hot, and most recently, shifted emphasis away from monetary towards fiscal policy. So the result of the u. S. Election, i think, amplifies that trend. It increases the prospect we get further fiscal stimulus. Were likely to get tax cuts for the consumer and the corporate sector coming through. Were likely to get a hotter economy, somewhat hotter economy than we otherwise would have had. And i think whats that driving is many of these reflationary themes within the market. I mean, steeper yield curves, cyclical assets like value stocks doing very well. Okay. What do you do as a result of that . Do you just buy the financials, because the yield curve is going to be steeper . And how much steeper do you think its going to get . First of all, yes, i think the yield curve does get steeper from here. I think thats going to be a gradual process, though. Youve got to remember theres huge demand for highyield products in the market. Theres a lot of buyers out there as yields rise. We would expect to see those buyers come in. But we do see the yield curve getting steeper from here. So the beneficiaries of steeper yield curves, they include financials, particularly in the u. S. , they include value as a style. Values typically do very well in a steeper yield curve environment. And they include some of the commodity stocks, as well, which i think will also do well in a steeper yield curve environment. And on the flip side of that, the losers are likely to be well, not any government bonds themselves, were seeing, you know, significant negative returns now coming through, particularly for longduration bonds. But many of the bond proxies, within equity markets, are stocks like utilities, some of the lowvolatility stocks, which have done very well, up until recently. They look very vulnerable, as we see the yield curve steepen. Youre over in london there, richard. If the control room could bring up the chart, and i bring that up only to emphasize over the longterm, we have been living in a declining yield environment for 20 years, ditto for europe. We see Interest Rates not just rising here, but theyve been rising in europe, as well. Are the europeans ready for rising Interest Rates, considering their debt profiles. Many of them are still very, very bad . So, first of all, that we see this as a major shift in what has been a trend, for actually more than 20 years. Really going back to paul volcker, declining bond yields, globally. Good point. We now essentially see yields have bottomed out now. It is worth highlighting the move upwards were seeing is much more evident in the u. S. Than it is in the rest of the world. Yields in europe held down still by an ecb, which is easing. And of course in japan, where they have a zero yield target. But nonetheless, you get upward pressure on yields. I think this does create, though, a significant challenge for the european economy and for the european financial markets. I think the european economy remains weak. Pace of growth still fragile. Inflation in europe still far below not only the levels we see in the u. S. , but far below the levels of the ecb targets weve got another vote coming up. December 4th in italy. That going to be the next one . Is everybody going to be surprised next time . So, weve had two data points, i think people are i think what weve learned is first of all, that traditional polls are not accurate at predicting the outcome. And you have to price in a higher level of uncertainty than before. I look at the challenges going forward, not only are there potentially higher Interest Rates than they would have had, but the risk premium in europe just stays high. Uncertainty not just about the italian referendum, but to next year, we have general elections in france and germany. And i think the markets are now just going to price in a higher level of uncertainty, a higher risk premium around all those elections than they otherwise would have. You use very nice economist words, but what i hear is the potential unraveling of the eu and the eurozone. Thats a conversation for another day, richard, as we talk more and more about those coming elections. Thanks so much for joining us. We appreciate it. My pleasure. Im reading your paper, andrew. Yeah . And cheryl gaez stolberg, she wrote a pretty evenkeeled pieces. Its amazing, women who helped trump to victory. She talks about a Small Business owner married to a doctor and points out when it was all said and done, 53 of white women voted for donald trump. Thats another thing that was im just i dont know. But maybe ill you know what, as part of our detente, ill start looking at this again. Did you say, part of your detente . Yeah. Whens that going to start . If this is detente, i dont want to see more. You sent that message tuesday night when it became clear what was happening. Yeah. And that was nice, but really, it was kind of preem preemptively asking for mercy. Kind of like, i realize what im in for. Is this what a detente feels like . That was my question you were out yesterday you forgot. And you were with eric schmidt and you know, all these yes and you came right back and you and poor howard schultz. It looked like they had run over his puppy. Thats not nice hes an amazing ceo. Coming up, well talk about howard schultz. President elect Donald Trumps plan to fast track deregulation. Well talk about it. Bank stocks soaring on speculation of the industry can see a roll back on rules. Ceo of kbw will join us after the break. Take a look at some bank stocks right now that are on the move. They had some big moves yesterday. Squawk returns in just a moment. Ift in Human History is happening before our eyes. Sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Is it a force of nature . Or a sales event . The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. bing nchtsz the winds of deregulation have started to pick up on capitol hill. Eamon javers takes a look at what plekt trump could target first. Theyre going to target everything in terms to have regulations in washington, particularly all the new regulations that came in under the Obama Presidency. Obamacare. Some way to repeal and replace obamacare needs to be figured out. Thats going to involve a thicket of regulations being hacked back, also in the oil and gas industries. But take a look at finance for a minute, and just focus on those things within the dodd frank reforms that came under president obama, that the industry would like to replace. Weve got a list here of just a couple of them for you, to give you a sense of how industry is thinking about that. The first thing they would like to do is change the way the fiduciary rule is enforced. They would also like to change the Financial Services oversight process for designating what they call systemically important financial institutions. They would like to bring more transparency to that process, give those banks and institutions an opportunity to respond and participate in that. They would also like to restructure the Consumer Financial protection board, to not have one single leader. They would like a bipartisan board, more like a commission, like we see in other regulatory bodies around washington, d. C. So thats just the tip of the iceberg here. The question is, what does donald trump want to do . And i dont think thats entirely clear, just now. And guys, let me ask you this question pb and see how you think about this. It seems to me one of the dangers of this moment right now for donald trump is that he doesnt come to washington like other president elects have come to washington, with an enormous legion of followers and an administration in waiting, sort of a Kitchen Cabinet ready to be plugged in and people in think tanks ready to take positions. He ran a very lean, mean machine during his president ial campaign. There are not a lot of loyal trump republicans spread throughout washington. So hes going to need to staff this administration in many ways a lot of the same people have been in washington for a while. If youre going to run as an outsider, you need to governor as an outsider. The challenge is for him to do that, while bringing in a lot of the same inside people who have been doing it for years. Were going to have to watch how this shakes out, particularly how trump decides to staff this administration. If Hillary Clinton had won, you knew there was in a room somewhere, a huge schematic of all her the think tank people. Just laid right on top of every single building in washington, d. C. He doesnt have that. The one thing that he would say, and we were sitting on the set election night, when we were all shocked to see the numbers coming in. And i asked everyone, i said, why are we still surprised when he surprises us . Because hes done it every step of the way. Lets see how he handles this very hurdle that youre talking about. And look at the tone shift weve seen from president elect trump since election day. Its a dramatically different donald trump, except for one of the tweets this morning about the protesters. But for the most part, its been a totally different trump in power than it was out of power. And the question is, will that continue in terms of the staffing of the administration . Will we see the treasury secretary come from capitol hill . Will we see industry people put into positions of power eamonn, its not just trump thats different. Paul ryans different, all the people that i would say ron johnson was always a trump guy, and pat toomeys probably pretty happy since he was down eight points. He doesnt have a lot of loyal republicans. Do you see how quickly these republicans will learn loyalty. Theyre going to line up . And if some of them arent there, if some of the lifelong bureaucrats arent there to be with him, so be it. You cant drain the swamp with the same lifelong democrats. Thats my point. Donald trump is changeable terms. Democrats and bureau accurates. Donald trump campaigned on draining the swamp, so will we use the same swamp dwellers to staff his administration. We know youve got to get 4,000 people. Obama found 4,000 people that he had no private sector experience pip already said that. So you can do anything if you work hard enough. Anyway, thank you. Wii going to move on. Banking stocks surging this week, following the election of donald trump, especially midsize and smaller banks, poised to benefit from the possibility of lighter regulations. I cant wait to talk to tom here. Tom michaud is is that good . Michaud, the d is silent. I dont seem like i know a lot about france, but im very french. Hes the ceo of kbw. So heres how i want to i want to talk about big banks and i want to talk about small banks. And who could benefit if some of these regulations were rolled back. Because theres so people that say that the big banks have done very well, because theyve got the lawyers and accounting staffs to deal with all these things. But when we had dick bovet on after we saw some good earnings, they were good relevant to recent years and quarters, but on an historic basis, theyre horrible, working in the current environment. Thats true if roe for the industry is down probably at least by a third, if not 40 . And its because, just lower Interest Rates and the cost of regulation. Lower Interest Rates. And for the big banks, the fact that their Business Model has been they could do much better . I think whats going to happen with trump is theyll do better, but i think the mid and small cap banks will do even better than the big banks. Thats what i was going to go to next. The ones that are really hurting are the ones that are mired in regulation all across the country, thats why you dont see a lot of loans going where they need to go. They could really do better with less paperwork and less regulation. Absolutely. And theres been a lot of talk about, whether dodd frank be repealed . You dont have to repeal it to make a big deal. Just amend it. Like, what what should stay and what was helpful and how much of it . What percentage was good and what percentage was bad even if a third of it was bad, thats still a big number. The first thing i would do, i would change these artificial barriers from where banks get more highly regulated. 10 billion is the first and 50 billion, a whole another tranche of regulation comes on. The 50 billion banks werent the once that struggled during the Global Financial crisis or caused it. So that is an artificial barrier. And what theyre doing is with that barrier, theyve caused regional banks to not grow, not want to grow. They dont want to be 50 billion. They go through 50 billion slow. The economy needs banks twha s want to grow and make loans. So if you go to greatagain. Gov, this is where they rolled out all of the policy positions of a future Trump Administration, they say, dismantle the dodd frank act and replace it with new policies to encourage Economic Growth and job creation. Dismantle . I think thats a technicality. Whether you change or dismantle the dodd frank, the big issues that need to be addressed are these thresholds where you get more regulation. The cfpb having very little governance and they dont have Congress Pass their budgets. Those are some issues and you make those changes, that would have a big impact on the industry. What about the volcker rule . Ill tell you, of all of the reform agendas ive seen, i dont think that ive seen many that have gone right at that first, as the first topic. I dont think first, but possible . You know what . I think, possible, but more importantly, its the implementation. Remember, people are policy, i do believe that. And when President Trump gets a chance to pick all the individuals who are going to be in these seats, just moving back to neutral from a highly focused regulatory bent is going to be a positive for the industry. What about glass steagall . Any chance . I dont think it happens. When you look around the world, there are 30 global stiffies. Eight are american banks. American finance is the leading industry in the world, and you still want these universal banks. The problem is they were too big and they were taking on too much risk. I think dodd frank did address a lot of that. I think they have to be amended, because they dont have the capacity to be as profitable. But i wouldnt break apart securities and banking. So will regulation be rolled back enough for the sequel, for tp what is it . Too big to fail. Tbtf. But will the sequel be able to be written andrews book . Will we make Fertile Ground for the sequel to be written . I would be shocked i dont think anybody whats interesting is the republican platform at the convention aid, lets bring back glass steagall. Now, whether or not that actually happens, i dont know. President elect trump hasnt said so. I would i think that youre still going to have heavier regulation on the biggest banks, which is appropriate. The question is, i think the whole attitude has to shift from one of, lets just keep stepping on the banks to now lets worry more about growth for the economy. So no sequel . Sequel george bush gave me a book. Now, you know what what . See, youre still doing it. Youre still doing it. George bush gave bond. George bush caused the financial thats what he said. I was just trying to make up with you by mentioning your stupid book a couple of times. Wont you get a check for that, what i just said. We youd to do a addict ding coming up . Thank you, tom. How is that deal book ill get ill plug all of your ventures. Thank you. Coming up, retailers jcpenney reporting earlier in the hour. A look at that stock and some other names to watch ahead of the opening bell. Squawk returns in just a moment. Remember here at ally, nothing stops us from doing right by our customers. Whos with me . Im in. Im in. Im in. Im in. One, two, wait, wait. Wait wheres tina . Doing the hand thing . Yep we are all in for our customers. Ally. Do it right. We are all in for our customers. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive go ahead. We havent had the animal orchestra in a while. You know what this is better. Shes great. We always put Different Things with the animal orchestra. But now that the, you know, that the election is over, we can get back to a semblance of, you know, of normalcy. It doesnt have to be all about, you know, two sides of the country at each others throats all the time. Lets take a look at some stocks to watch this morning. Look at how those animals get along. All different species, all different sometimes they eat each other. Thats true, too. Thats true. Shares of retailer nordstrom are rising in premarket training. Report a quarterly profit of the 84 cents a share, well above estimates of 52 cents. Thats pretty amazing. And we mentioned michael kors earlier did Beat Estimates by 7 cents, with earnings at 95 cents a share. The luxury goods maker also issued a weaker than expected holiday season. Forecasts, as a result, that is shaving about 6 off of shares. Coming up, riding the trump rally. How is money manager Mario Gabelli playing this market . And it is veterans day. Central commander in iraq David Petraeus will join us. Squawk box will be right back. . 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 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. Keeping the rally alive. The trumpfueled rally surge continues with the dow climbing to an alltime high. Mario gabelli weighs in on the markets and the election. Plus, digging into gabellis media investments. Well get his reaction to Shari Redstones plan for viacom and cbs. So i think it makes sense to explore whether or not these companies can come up with a way to get together. And happy veterans day. Retired fourstar general David Petraeus is here to discuss how military talent helps the businesses around the world, as the final hour of squawk box begins right now. Announcer live from the most powerful city in the work, new york, this is squawk box. Welcome back to squawk box here on cnbc, im joe kernan. The futures this morning, they are geez. I thought they were down. Theyre not. The nasdaq had a tough session yesterday, tough session today. I wonder if you talk about that. It is a cyclical. But dont you think thats where some of those multiples were so huge, in a rising Interest Rate environment. You would think that the big thing, all of the money would come back. Agreed. I thought about that too. You would also think that the and well talk to pario in a second. You would also think that the underpinnings of this market, which were so based on easy money and the fed and the wealth effect, if it actually starts growing a foundation, where its actually the price is actually warranted, that should help all stocks. If Interest Rates keep rising, even if they go to 4 , let me tell you, were going to start seeing air coming out of everywhere. Were not going to know where its coming from. Its going to be the wealthy that suffer the most. Speaking of the wealthy, lets get to mario, quickly. He never laughs at things like that. Hes pretty serious. Youve got to flaunt it. 40 years ago, joe, i made 5,000, you know, so. Youve got to go back to that to make us feel like youre a normal guy . I still buy less than wholesale. 40 years ago, i didnt have 3 billion. I was just like you. I had nothing. Oil prices, take a quick look and then well get to todays top stories. There we are, down 60 cents at 44. Top stories, jcpenneys revenues and samestore sales falling short of estimates. Take a look at are we going to show the shares . Yes, we are. They are getting hit this morning in the premarket trading by even worse, lower by more than 9 . Walt disney also missing wall streets mark on the top and bottom lines. Results were impacted by declining subscriber numbers at espn. The stock dropped initially. However, then rebounded, following more optimistic comments by ceo bob iger. Disney is higher by 1. 5 this hour. In political news, president elect donald trump is planning his transition, that includes filling his cabinet. I sat down with Goldman Sachs ceo Lloyd Blankfein yesterday and asked him what he thought about the speculation and rumors that trump is considering jpmorgan ceo, jamie dimon, as treasury secretary. Look, theres certainly attract eive aspects to that. He would be a great treasury secretary. And hes been a terrific competitor and i would say in that one move, we can kill two birds with one stone. Let me turn it around so the possibilities are terrific. If you got the call asking me whether jamie should be treasury secretary . If you got the call to be treasury secretary, there have been others from gq gx who have gone into government before. Dozens. Would you take the job . No. I dont know, i wouldnt i think people, again, look what i said a few minutes ago about your place in history, thats a tough, you know, you would have to weigh that. I mean, whatever else people have pronounced and said or thought, when you have an opportunity to make that kind of an impact, you would have to think quite seriously about it. You would have to know what your role would be and your relationship with your boss and those things are important. And what kind of license and latitude and what priorities your boss had. Gosh. But people who say look, im familiar with the number of people who have accepted that job. I know what they said before and i know what they said during the process and i know what they said when they were sworn in. So i think that knowing that, as i do, i think a lot of people, you know, would take that job. And of course, people would consider it. We will see whether Lloyd Blankfein is standing by the phone this morning. Please Tecumseh Sherman said in 1884, if nominated, i will not run, if elected, i will not serve. Goldman sachs stock is 200. I love what he just said, especially on veterans day. Hes the smartest guy he would be an unbelievable treasury secretary in terms of Risk Management and everything else. And it would also be, for trump to pick the head of Goldman Sachs, it would be like the Elizabeth Warren just i mean, that is. I would love to see her face in that moment. Please make it happen i want to message him. I am. I didnt say who. Later on on squawk box, somebody else rumored to be in the running and jamie dimon. For secretary. It would be equally offensive to certain and either one would be amazing as risk managers and as guys that know about would you have a problem with it . You know i have affection for him, so absolutely not. I dont mean that, but your view of the close relationship between government and wall street, would that be hes waving the flag. Have you not read anything ive written about this . But, things are different. Its a long way from the first too big to fail do we have the Cash Register sound. Chaching. I dont know how you feel. You would be too big to fail. I am completely open to people on wall street. The head of Goldman Sachs being the treasury secretary . I would have no problem with that. I would have no problem with that. In one fell swoop, occupy wall street will be reborn. Wouldnt it. And theyd be out protesting again. Who will read the teleprompter . You know what, youre going to introduce legendary investor, Mario Gabelli. Sure. And later on, Jeb Hensarling, who may be the treasury secretary. Maybe lloyd, who knows . 8 40 a. M. Anyway, legendary investor Mario Gabelli is here. He predicted a Trump Victory right here on squawk box earlier this year. And joining us now on how to play the markets, the media, a dealmaking landscape, and his top stocks, Mario Gabelli, chairman and ceo of. When was it, you specifically said trump will win . What happened in the barons panel in, they went around in alphabetical sequence, and i said, politicians are the lowest run in dantes inferno and above them were wall streeters. Wheres the media . As a result of that, they went around and say, who would you think would make it . And gundlach and myself said trump. And everybody else said hillary . I dont remember. Literally. Probably, not just that the barons, in the entire country. At that point. Now that its happened, when you said it, was in a way of sort of a warning to people or no, i was basically reading the tea leaves of the disgruntled part of america that hated politicians. So now that its happened, how is the country going to be and how are your investments going to be . Its fairly simple. Both of them would have preached for infrastructure spending. We need to clean up our waterways, we need inland waterways, rails. Everyones talked about. So how do you play that . On wednesday morning, the infrastructure stocks jumped sharply. And in addition to that, we know you have someone on at 8 30, we trace, and the need to refurbish the military. You also have to do no student left behind, no adult left behind and the world is changing. Innovation is terrific, tax structure, tax reform, so how do you play it . You buy infrastructure stocks. Theres a bunch of them that have done well. You look at the notion of what michelle said before. What happens if the tenyear goes up to 4 . Unless you have Pricing Power, so nominal growth will increase, in terms of both real gdp and nominal growth. So what companies have Pricing Power in that environment so they can maintain their multiple . Thats what were doing every day. And clearly, the bank stocks, particularly the tv trust banks where they have less regulation, they become global powerhouses. They have great balance sheets, because of what happened. They will benefit from rising Interest Rates. Those are stocks that did well and will continue to do well. In addition to that, ignore the money managers. Those will do well. And on the infrastructure, joe, i brought you something. I didnt bring a bengals hat. I couldnt find a giants that the from monday night. I knew you needed a peace solution. The giants are favored by one. But this is an example of what has made hardworking American Farmers and those that provide them with infrastructure. Those will do quite well. I think the giants are they seem to be getting a little better each week. I would never bet on the bengals. They may win, but ive learned joe, whats happening today on tvs and on the streets is monday morning quarterbacking. I get it. I get it. Let me ask you this. Since you know know what happened after tuesday night, the way that worked, where, you know, as the returns were coming in, the market sold off and yeah, at 2 30 in the morning, the market was down 800. Right, so what but that happened also the day after brexit. Then it recovered and then it went up the next day, the next day, and the next day. Why . What happened . The markets up 4 . The first thing that happened is that europeans and the nonamericans who were trading at that time probably were uncomfortable with the president elect. And so they were selling and then what happened is the financials supported the sectors like infrastructure stocks went up, and markets are adjusting. So we look at, ways the market . Up to new highs the next two days. Joe, this is simple. Earnings. Financials will be up sharply in 2017. Thats 25 plus or minus of earnings. The dollars was a little stronger, but still relative to the lets say, the earnings, youre not going to have as bad as translation. This trend was in place, then . I think if part of it was reinforced. So now its trump . Well, ryan is going to do a great job of figuring this out. Hes got his hands on the pulse. Corporate tax rates on a global basis versus territorial have to change. And that in part would be a very big plus for corporate profits, after tax, and as a result of that, cash flows will improve. And if Interest Rates goes up with, the present value of your liabilities on Pension Plans will result in less cash going into there was an element of uncertainty, both on the consumer and on Corporate America in terms of making investments. That is now behind us. Now we can start planning and look at, where can we put our money. Innovation comes back and risk taking comes back. Take a rule, sarbanesoxley. It cost me close to 22 million. A little company. Out of pocket. They should do that, too, for dodd frank and sarbanesoxley. There are rules that preclude the linkage is simple. If i am in a venture capital, i want to put money to work and earn returns so i can invest in startups and make a lot of money and create jobs and innovation. Creative innovation should be a driver. Maybe you can get rid of anything with a politicians name on it. Dodd and frank were those guys were great, though. Stop, stop, stop. Obamacare. Smooth pauley. You can keep that one. Well, ricardo and, you know, adam smith should come back. They werent politicians. They came back in a big way on, at least to some extent, in turning the tide on tuesday night, dont you think . On the other side of the coin, the notion of fair trade, not free trade. U. S. Steel benefits, you talked about copper with someone on the tv show yesterday. Copper is up to you mentioned brand x . Yes. Hes retired thats even better oh, wow hes a great guy. You never change. Look at copper. You cant say no you cant say his name out loud . Its like macbeth. Did you ever give 8 million away . Not that much. If i made it, i would. Look at the guy that takes a big Tax Deduction for giving money away. Who are you referring to . The guy in omaha. And he made so much money from this election, from wells fargo,. Who arent you going to sort out, stick it to. I forget the guys name. This is fun. Wow the only guy i remember, joe, is you and this andrew. Its not quite icahn icahn is iep, the stock is 50, even though i have some creative tension with carl over something. What . On monday, we have to figure out whether we tend to federal mogul into his bid or not. Well talk more with the man who will maybe name names. We love you, stop when we come back, Shari Redstone speaking out for the first time. I sat down with the vice chair of cbs and viacom. Well get some reaction from Mario Gabelli when squawk returns in just a moment. Mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Sing girl, come on. [ singing ] sorry, ariana you gotta go. Seriously . Verizon limits me and i gotta get home. Youre gonna choose navigation over me . Maps get up here. Umm. That way. Girl you better get on tmobile why pay more for data limits . Introducing tmobile one, unlimited data for everyone. Get four lines just 35 a month. Disney reporting lower than expected earnings and revenue after the bell. Julia boorstin had a chance to speak to disney chief, bob iger, and joins us with the highlights of that interview. With espns declining subscriber numbers, bob iger says he is bullish on espn, especially as it reaches consumers in digital bundles. In a world that is obviously impacted by the use of the dvr and all kinds of shifts from networks to program viewing and new platforms emerging, live sports still really popular. The nfl, i know, a lot of talk about nfl ratings being down. Youre still looking at the most popular sport that exists. So espn has the strongest menu of sports programming that exists. In the wake of at ts acquisition of time warner, iger says he continues to look carefully at m a, and he is interested in companies that will help disney bring content directly to consumers. Not only do we choose the right assets to buy, pixar marvel lucas, but integrate them well into the company. The result of those three acquisitions very, very obvious on numbers we just released and we talked about it in the future and well continue to look at that and buy where theres an opportunity to create more value. While iger was a big supporter of Hillary Clinton, he says hes optimistic about president elect trump having a smooth transition. One thing that i think seems clear is that theres going to be far more Energy Around attacking the tax code, changing the tax code, closing loopholes on Corporate Taxes, and lowering the base. Were not as competitive as we need to be, as a country. I think that is going to be addressed on a timely, meaning, a fast basis. You can find more from my interview with iger, including his outlook on disneys growth over the next couple of years. Why they gave a bullish forecast there. Also, more thoughts on the election and espn. Andrew, back over to you. Thank you for that and thanks for that interview. Staying on the media theme yesterday, i had the chance to talk to Shari Redstone. Heres what she said to say about merging cbs with viacom again. I think it makes sense at this point in time to explore, whether its in the interest of both companies to merge again. I think when you look at all the changes taking place in the industry, youve talked about some of them today, scale is going to matter. Its going to matter to the consumer, whos looking to choose among a broad array of content, what do they want. The more content you can offer, the more choices you can give them, the happier theyre going to be. Lets get back tour guest host for the morning, Mario Gabelli is here. What do you think . Is this deal going to happen . A lot of consolidation and content and connectivity. You have a new fcc chairman coming. Hes going to be much more interested in allowing the free market to function and cbs, viacom, i would have viacom buy cbs so les gets a change of control premium and also gets a new contract. But also, he has to be in control. And i would like that to occur much the way Warren Buffett allowed murphy and burt to run cap cities and gave them the vote when they merged into abc. But for that to happen, the rest of them would effectively have to give them control of the company. For five years. Hes a young guy at 56 or 7. Hes very energetic. And hes the built a great business. I would think that shari is a very practical person. She did the right thing. She got started at the trust, amusements, and down at the company. What are the chances they dont . What happens to viacom if its an independent company . Can it be reimagined and remanaged . The first ceo went out and bought something in argentina for 14 million. Hes got a good footprint there. Hes got some other interesting dynamics. The whole notion of content. You know, clearly, at 40 a share with 400 million shares, 16 billion market cap with 12 billion of debt, paramounts got to turn around at some point. Do you have a view on the at t time warner deal . I think the probability with wheeler gone, the fcc doesnt look into this one or theyll spin off the tv stations and some ground stations. I think ive gone from 40 probability to 70 telephone stock is down because Interest Rates went up and the markets rotates. And as a result of that, i get 1. 4 shares of its an r play for you at this point . No, i own 4 million shares and its more than that. I think it makes a lot of sense for what stevensons is. And the free market system should allow ceos to go and make their bets. They bought direct tv. Theyre going after this one. So strategically, you like the idea of vertical integration. Does that make sense to you. The idea that theyre going to create more value by having these assets together . I think the ceo should be willing to make the bet. His board is supporting him. His shareholders will have to look at it. And if they lose, thats fine. If they win, thats fine. From my point of view, andrew, i have no problem in making that bet. In addition to that, you know, disney has got 1. 6 billion shares, sells at 100, so 160 billion market cap. Will they buy netflix . If that happens and all of a sudden were talking about the direct to the consumer issue. Comcast, our Parent Company with nbc has a connection to the consumer. At t and time warner would have a True Connection to the consumer. Disney doesnt have that connection to the consumer yesterday. Cbs viacom they can buy netflix, and apple can come in and buy both of them. Theres a lot that will go on in the next six months that are going consolidation is going to occur. But dont look at the u. S. Consumer. Were only only 3308 millio mil. Who is in the Global Market place that will be part of this process . Viacom has a global footprint that cbs doesnt have. So it will bring it together. I think the next step would be to own content and distribution globally and connectivity. Dont ignore the fact that the Wireless Companies you know, we are starting a new fund that is yes, the gabelli media mogul fund. Its an actively managed etf that we took a license thats in the process. And john malone has his fingerprints everywhere. So the notion of deal making, the notion of corporate nations merging and consolidating and getting efficiency and getting content where do you think Rupert Murdoch is within this chess board. It may be that he is no longer in that same type of position. You have less than 2 billion shares. Shrunk his cap. Hes part of a hes part of the family now of malone. And as a result of that, you know, theres a lot of things going on. Are you suggesting there could be A Malone Murdoch tile m. No. Rupert is very creative, very good, and a risktaker. Lets see if tim cook at apple can do some of that risk taking by making a big bet on something. And in addition to that, foxs stock is cheap. And when the blue people come out, thats going to do quite well. And youve got three of those coming out over the next three or four years. Live entertainment, Live Entertainment people being i was very confused there for a second. Avatar. I thought you were talk about politics. The blue man group. There you go. But think about Live Entertainment. Think about sports. The atlanta braves, the Madison Square garden with the knicks and rangers. Think about live nation, touring. The millennials love concerts. The coachella was private, or you would be talking about that. Youre talking about entertainment and Companies Like ryman that own the ryman theater. Youre talking about football. The chinese love it. Theyre buying up soccer companies. And we wrote a report in chinese on man u. We have a book that we wrote up in japanese, were doing it in chinese and italian. Italian. Sticking around. He should know, gabelli. Coming up, rumors swirling about Donald Trumps cabinet in waiting. President elect reportedly considering representative Jeb Hensarling for treasury secretary. That congressman will join us at 8 40 eastern. Well be right back. Siness be ry when growth presents itself . American express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. Find out how American Express cards and services can help prepare you for growth at open. Com. Find out how American Express cards and Services Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Welcome back to squawk this morning. Here is whats making headlines at this the hour. Valeant pharmaceuticals may soon get a new name. Thats what persian squares bill ackman told me yesterday, saying a name change could help boost the troubled drug makes reputation. A little naming history. Drugmaker biovail bought valeant back in 2010 and took on the valeant name for the combined company. Fed vice chairman Stanley Fisher giving a speech in chile this morning. Steve liesman joins us now with the details. Steve. Thanks very much. Stan fisher speaking to a central bank company. Saying the case for removing accommodation is, quote, quite strong. He said the fed is close to achieving its inflation and employment mandates, but he said u. S. Rates will rise only gradually, and then plateau at a level that is lower than normal. He is optimistic, among reasons why the fed can hike. He says hes optimistic the economic drag from the u. S. Dollar, a stronger u. S. Dollar, has passed. You know, its the gap between u. S. And foreign rates is likely to widen. Think about this, a fisher kind of preparing foreign Central Banks for whats going to happen in the United States. He is optimistic, though, that the effects of the, of these u. S. Rate hikes will be, quote, manageable abroad. Heres what he talks about. The foreign fed effects. Foreign economies, he says, are on better footing to handle higher u. S. Rates. And the stronger u. S. Economy, which would be the reason why the fed would ik, should help those foreign governments. Finally, he says foreign Central Banks can offset the effects of higher u. S. Rates. Speaking of a hike, jeff lacker has given reasons, bullard has said go ahead and hike, and John Williams says a gradual rate rise still makes sense. Thats four fed officials after the, election now suggesting a rate hike is still on the table. The probability of a rate hike was around 67 , for december. It had gone pretty much back. And who knows, guys. The fed is very, very concerned, not to get, you know, repeat some of the market volatility thats happened around these rate hikes. But now that rates are already higher, especially on the shorter end, for example, north of 90 basis points on the twoyear, maybe the market is already ready for this, but you have to watch those gaps with the foreign Interest Rates. Michelle . Thats an especially important point, steve. Thank you so much. And im sure theyve taken solace in the reaction of the market since election day. Coming up, its veterans days. David petraeus is here with plans about putting vets to work. Thats next. On this veterans day morning, our next guest joins us to suggest why its Smart Business for companies to hire vets. Lets bring in retired fourstar army general, David Petraeus, his historic career includes leading u. S. Coalition forces in iraq, and commanding u. S. And nato forces in afghanistan. He also served as cia director, under president obama. General we trapetraeus chairs tr veterans at work program. Also joining us, paul rykoff, hes the founder and ceo of the iraq and veterans of afghanistan and america war. Hes an iraq war veteran. Gentleman, thank you. Great to have you both on. For anyone that needs convincing that the skills that these guys across the board, i mean, i think about, i dont know how im any good i mean, they have faced things that i have no concept of. And most of the time, excelled. Why do you still have to convince people theyre the right people to hire . I think thats not a very hard sell, increasingly. Businesses are experiencing exactly what youve said. Its not just the right thing to do to hire a veteran, its the smart thing to do. But beyond that, we want to get our veterans careers, not just jobs. And that means that the firms need to invest in them. They need to educate, train, and mentor them along the way. Thats whats really important. In fact, next week, kkr, and a number of the other large private equity firms are going to be hosting over 400 companies here in new york to discuss Lessons Learned of the various firms. Kkr, for example, has hired nearly 42,000 veterans now with its Portfolio Companies in america alone. I mean, i would think that when youre in the armed forces, theres i mean, theres privates and theres generals, but everybodys leading, arent they . Even a private has peers and he wants to lead for them. And i just think it instills those type of values that are absolutely transferable to the business world, right . Thats right. They stepped forward to serve this country. And they want to continue to serve in different ways. Theyre also incredibly entrepreneurial. When things are rough, you need people who can handle it. And the men and women who have served in iraq and afghanistan have been doing that for over a decade. Were not a charity, were an investment. You guys talk every day about investment opportunities. This is a generation of people who are an Investment Opportunity for our country, across every industry, across every business. And i think that message is getting out there, but on veterans day, its a perfect time to ram it home. And this is americas new greatest generation. In fact, tom brokaw is the one that announced that. Back when he was with us, when i was privileged to command the 101st Airborne Division in Northern Iraq and mosul, he spent a day with us, and as he was leaving he said, surely he is is new greatest generation. And hes right. You happy about the election . Well, im actually nonpartisan, apolitical, so didnt get the system worked. So let me ask you this. You made some comments earlier during the kpaun, not directly you never used the word drmp, but you were worried a little bit about some of the language that was being used, i think at time around the muslims and isis and things like that. Do you have any anxiety there . And people who worked with you, mike morrell and others were much more direct in their view about trump. Ive always been upfront. Ive worked for democrats and republicans in the white house. Ive advised candidates of either party. I continue to do that. And at the end of the day, what has to happen now, in fact, i just finished a piece for the New York Times that will go in this sunday. And my advice is, youve got to rebuild the center. Rebuild the center on domestic issues and rebuild the center on National Security and Foreign Policy issues. And by the way, this is a political outsider, who a dealmaker who can, indeed, forge a new coalition. And thats what has to happen. People have to give a little to get a lot. Theres an opportunity here, too, though. You can rebuild around veterans. Our country is extremely divided. Supporting veterans might be the one thing we can all agree on, bring partisan folks together. And weve launched a campaign this week called operations unite america. Veterans day is a couple of days after the election. Lets use this as a time to bring folks together of all political backgrounds and have them bring us forward. General . This is the other 1 . You all have a lot of 1 percenters at this table. Today were talking about the 1 of individuals, men and women who raised their right hand and took an oath at a time of war. This is the iraq and afghanistan veterans of america, who he leads. And theyre extraordinary individuals. They knew that they were going to war when they raised their right hand. Now theyre back, nearly 3 million of them have served since 9 11 and entered the civilian workforce. And its about ensuring that we capitalize on the extraordinary attributes and qualities that they bring to the civilian work. God help us if we never i mean, we need people like that, obviously, to protect us and to protect our values. But if we ever dont have guys with that experience in society, i think we talked about blankfein earlier, i think he was the guy on the way into the new york fed during the financial crisis and the person with him said, i think im going to throw up. He said, youre not in a freaking u boat storming normandy. Youre going into the new york fed. He referred to omaha. Omaha beach. You guys have a totally different set of skills and Life Experience that i actually i dont know if im envious, because i dont know what would happen to me, but you guys are different breed. You really are. Theyre a generation of men and women who can handle adversity. And we saw the world war ii generation come home and build the middle class and really drive our economy, because they could get stuff done in really trying times. Theyre the people you can depend on. We see it in every sector, in finance, in tech, in energy, especially in areas of operation, execution, theyre people you can count on in a chaotic environment to get things done. And also, theyre not just privates. Theyre also generals and colonels and strategic leaders who can really help us the in complicated times. Let me ask you different question. That is, whats the right action for the United States from here. Policemen of the world or pull back and let things let the chips fall where they may . This is one of the areas where i think president elect when he takes office is going to have to navigate. We have seen what happens if america is overactive, hyperactive, if you will. Weve also seen what happens if america draws back. And there is a fibro, narrow line that we have to walk, where we do need to provide leadership for the world in a variety of different endeavors, without question. America is the number one economy, the greatest military, still a voice that is the loudest, if you will, in any given situation. Do we enforce a no fly zone in syria . Do we work with the russians to defeat isis . How do we approach it . Well, with again, this is going to be a time to have some Strategic Dialogue with countries where we have not had that. Where relationships have frayed. You find that with iran, didnt work out very well, did it, general . There are converging interests here and very significant diversion interests. And we have to go into these with our eyes wide open. What would you do with the iran deal . With iran . First of all, what i would do with iran is the president ought to work with congress. And of course, they own it now. This is all republicans. And the first thing they ought to do is announce a statement of National Policy that is that iran will never be allowed to enrich uranium to weapons grade, period. Of course, the iranians have said, they dont want a nuclear weapon, so they shouldnt be concerned about this. Then maintain the capability to ensure thats the case. And then, also, work with our partners in the region and our allies to counter the maligned iran influence that is causing such significant challenges. The president thought it was a good idea to bring our enemies, maybe, closer, im talking about iran, even though they still say things about great satan and destroying israel and everything else. Does that not apply to putin . Is it possible for him to be a frenemy . When youre talking to a guy who promoted reconciliation at a critical moment in iraq during the surge. By the way, the surge that motored most the is change in forces. One of the biggest of the big ideas was the fact that you cant kill or capture your way out of an industrial strength insurgency. And then you go, even more. I just think all that means is that you should not hesitate to engage in countries that are adversaries, in many respects, but certainly may have some common interests in other respects. By the way, were going to have to do the same thing with china. This is our number one trading partner now. And the two biggest economies in the world, but there clearly is a divergence of interest when it comes to the south china sea, the east china sea, a variety of other issues. And well have to figure out how to deal with these so china, for examp example, is the key to issues with north korea. If there are going to be sanctions on north korea, china will have to support them or they wont work. One of the controversies during the election is when donald trump started talking about whether or not our nato allies were spending enough of their gdp on their selfdefense, which is part of the requirement of being 2 of gdp. And the vast majority do not. Is that going to change at any moment . I hope so. Secretary gates, his valedictory address at the north atlantic council, i was there as a the commander from afghanistan was to say, youre not doing enough. And it went down farther after that. Actually, to be fair, it has come back a bit. In part because of vladimir putin. Nates new reason for living is because of their aggressive action. And they finally woke up it would be their continent they would roll across instead of ours. Theres still more to be done. So i think it is not unhelpful to have a president of the United States actually push these allies and remind them that were doing the lions share here, but we need to make this a coalition in which all are contributing to the best of their ability. General we trace, thank you. Thank. And paul rykoff, thank you. Great to be with you. Thanks for every day. Thanks on this veterans day. And i dont know, as you get older, if i see like reagan with the boys of, you know normandy. Every time i see it wing about it. Well, theyll be out in communities nationwide today. We want to join us for everyone here in new york. No veteran should be homeless. Make every day veterans day. Go to iava. Org if you want to find ways to be involved and help and particularly focus on the employment issues, which needs that continued focus. Thank you. Great to be with you. The trump transition is underway. Speculation flying about who president elect trump will pick as his treasury secretaries. Among the names mentioned, jamie dimon, stephen ma nuchian, tom barrett, and our next guest. Joining us, tom hensarling. Good to have you here. Thanks for having me. I hate this little ritual were going to do. Im going to ask you, do you want the job, and youll give me some mealymouthed answer, but lets do it. Congressman, if you were given the job of secretary of the treasury, would you take it . Before we go to the ritual, if we could, i was listening to your program, thank you for your attention to veterans day, and as an elected official and father of two teenagers, any veteran within earshot of the program, thank you, thank you, thank you, thank you for making us safe, secure and free. Thats a far more important statement. So, listen, i saw my name in the newspaper, they spelled it right. They havent called me, i havent sought the job. I have a great job, and frankly, im a lot more excited about it today than your last name or your first name . Isnt your first name spelled jim. Youll never forget that. I love when the president calls one of the ranking members ofongress jim on purpose. President elect trump once hes president will need somebody on kplcapitol hill to transh translate his vision into legislative language. And im uniquely positioned to do that. Of course, lets go through the ritu ritual. If the call came, i wouldnt with block the call, wed have the conversation. But im not anticipating the call. Its not sympathetomething ive thought about. Do you think his supporters, the name jamie dimon has been floated, banker, do you think his supporters would be upset, would care, if he named a banker, somebody from Goldman Sachs to be the head of the treasury . I think that president elect trumps supporters are very loyal to President Trump. And i think what they would do is, obviously, defer to his decision. I mean, hed make his case to his supporters, make his case to the american people. And i dont think anybody would doubt that the buck would stop with a President Trump. He would be the boss, he would call the shots. But he has to have people who hes confident in, to serve with him. But you know, im not ignorant of the fact that the whole wall street bailout in many respects gave birth to both the occupy wall Street Movement and the tea party movement. And not to mention andrews book, as well. Too big to fail. So believe it or not, even though i live in new york city, i know a lot of republicans. And you can imagine the euphoria that happened when they saw all houses of government now going to be controlled by the republicans. And the laundry list of dreams that has been to it is a field of dreams, isnt it . Theyre going to repeal obamacare, do this, defund all the Climate Change stuff. No more subsidies for the list goes on and on and on. What is reality . Well, a fair amount of it is to go it alone and to rule with his pen and his telephone. In other words, there were lots of executive orders, many dubious constitutional validity, but what it means is when donald trump takes his hand off the bible with his pen and his telephone, he can undo a lot of it. Now, obamacare is tricky because roughly 95 of that happens to be entitlement spending. But much of dodd frank, for example, has been carried out through rule making and Enforcement Actions within the larger unaccountable unelected bureaucracy. By putting the right people in place, by rescinding that, a lot of the damage that is done to our economy through dodd frank can be done through the right appointment of any executive order. Alan greenspan yesterday said rip up the whole thing, get rid of it. Is that what youre talking about . Or is it tweaking it, changing it . Theres no tweaking to dodd frank. Id love to rip it out. We have a bill called the financial choice act that has come out of my committee, which essentially will end all bank bailouts, create Economic Opportunity for all, we have a title for wall street accountability, washington accountability, capital formation. We have a title for Community Financial institution relief. We end too big to fail. Its a wonderful piece of legislation. Ive talked to president elect trump about it a number of months ago. He seemed to be very, very receptive to it. So, yes, we have both pledged to repeal and replace dodd frank. Its made us less free, less prosperous, less stable. All right, congressman, im glad you were able to deliver texas. I was told how touch and go that was going to be repeatedly. Turning blue. The last couple of weeks by so many of the pundits. Good work. Bad rumor. Good work keeping that state. Go texas. Nip and tuck there for awhile. Thank you, sir. Thank you. When we return, jim cramer from the new york stock exchange. We get his take on the days top stories. Sing girl, come on. [ singing ] sorry, ariana you gotta go. Seriously . Verizon limits me and i gotta get home. Youre gonna choose navigation over me . Maps get up here. Umm. That way. Girl you better get on tmobile why pay more for data limits . Introducing tmobile one, unlimited data for everyone. Get four lines just 35 a month. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Welcome back to squawk. Lets get down to the new york stock exchange. Jim cramer joins us now. Jim. First, andrew, congratulations. Just unbelievable journalism. Unbelievable session. You dont get congratulated enough. Im giving it to you flat out. Appreciate it. Thank you for that. Help us understand what should we think about disney this morning . There was a q and a, weve taken a more bullish position in espn sub. It was 91 when said, it was 96 when he finished that paragraph. Now those up against what hes regarded as the interactive mode of espn and people should start counting subscribers. I think there may be other fires to put out but espn was extinguished last night in q and a. Why have the Tech Companies not had a good bounce . They were going to do well without the economy, so therefore we knew what their numbers were going to be. We can take up numbers for freeport, we cant for adobe. Adobe has high numbers. Look at Something Like nvidia and hope that ignites a tech rally, but that was one of the greatest quarters ive ever seen. That stock will be up 12 and will be because that was the best quarter of the year. For the viewer who plays the indexes at this point smart. Do you think theres room to run . Is there more room to run in the immediate term . Theres too many people who bought on wednesday who are up. People bought tuesday they covered their short. The people who bought wednesday, let them sell off today and a new day on monday. Okay. Jim cramer, see you in a couple minutes. Thank you. And a quick programming note, you dont want to miss Doubleline CapitalJeffrey Gundlach coming at noon eastern time today. Squawk returns in a moment. Enjoy your phone you too. inner monologue all right, be cool. You got the amazing new iphone 7 on the house by switching to at t. What . . Aand you got unlimited data because you ve directv . . Okay, just a few more steps. Door its cool get the iphone 7 on us and unlimited data when you switch to at t and have directv. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive they are the natural borns enemy of the way things are. Yes, ideas are scary, and messy and fragile. But under the proper care, they become something beautiful. 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. A final check on the markets before we go. The futures right now are now consolidating gains. Nasdaq continues to be weak. It was weak yesterday and actually the s p is pulling back a little also, or indicated to do so. Only the dow is indicated higher, which closed at an alltime high. Theres a currency check on the euro 1. 09, yen, 1. 06. The pound has actually strengthened recently. Theres the energy markets, oil weak, which is sort of the opposite of what you might think at this point. I think everythings being undone from the last couple days. Cyclical rebound also headed. What a week it has been. Only in america, everybody. Michelle, thank you. Have a great weekend, everybody. Make sure you join us on monday. Squawk begins right now. Good friday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer, david faber at the new york stock exchange. It is veterans day when we honor those who have served in the u. S. Armed forces. Bond market is closed. Stocks are not changing much after of course the best week for the dow in at least five years. It is day three of the president ial transition. A lot to get to. Europe is mixed. Sterling at about a