Transcripts For CNBC Squawk Box 20170908 : vimarsana.com

CNBC Squawk Box September 8, 2017

Good morning its still moving to the westnorthwest it will continue that track through bahamas and cuba these are the spaghetti plots. The actual track has it looking like it will make a landfall in south florida going into early sunday morning between now and then you will start to see conditions deteriorate you have really the rest of the day today if youre in key west f youre in south florida to finish preparations and get evacuations underway alerts going on. A hurricane warning issued overnight for south florida in the purple also for the bahamas, the northern coast of cuba as well and still for the Dominican Republic this is a huge storm out there thats making its way close to the continental United States. If did downgrade to a category 4 storm, but i want to talk about that what its doing now is going through an eyewall replacement cycle. So its weakening because the thunderstorms right outside the eyewall are growing stronger than the thunderstorms around the eyewall, its kind of collapsing this will continue, but once that is done, we could see it intensify. Its also moving over some of the warmest water its seen as it moves in between cuba and the bahamas, and it is 155mileperhour winds now. Category 5, 157mileperhour and up so only a few in regards to wind speeds boost of thes both of these cause catastrophic damage. As can moves forward we expect it to be at least a category 4 storm before it makes landfall we will continue to trash this throughout the day today well have more later on thank you well continue along here. Evacuations and other lastminute storm preparations are underway in florida thats where we find Morgan Brennan good morning reporter good morning. These are some of the last planes that will be sitting on this tarmac for the next several days last flight out of this airport, 7 45 tonight so as Hurricane Irma comes closer to florida, this is the scenario playing out from key west up to orlando operation beginning to wind down if youre lucky enough to get to one of these airports on time, good luck finding a flight flights throughout the state have been largely sold out for the last couple of days. More are being canceled. Overnight 600 flights were canceled according to flight aware. That brings the total above 2,000 because of this storm, just for the state of florida. If you do have a flight, look at this its a little dark, but you can see it the parking garages are full thats the kacase in ft. Lauderdale and in miami. This is the reason why so many people are hitting the road. More and more evacuees are expected to hit the road as the day goes on. Tolls have beeen waived for several days now well hit the road and make that northward trip and reporting a bit later this morning on what the conditions are like and what everyone is going through. Guys all right, morgan you got plans, right will you exit the area eventually yes, we have plans. Well be sort of chronicling this process as everybody tries to make their way west and north out of this state. As i mentioned, a lot of folks are wrapping things up some folks have to work today, then theyre getting in the car. I think it will get busier as the day goes on. Folks here are rattled this is a scary storm. People are trying to get away. I heard 1 out of every 4 gas stations in the state is without gasoline at this point what have you seen just from your travels around the state. How difficult is it to get gasoline its tough to get gasoline. We were in miami beach yesterday. Two different gas stops that are a couple blocks away from each other, both with long, long lines. We were at one of them yesterday. The attendant said we have one hour before we are completely out of gas thats the scenario playing out. Its also hard to get rental cars a number of folks will be staying put because they cant get out. I think of south florida, i cant think of a more highly or densely populated area probably not true, but having been down there many times, it seems like one of the most highly densely Populated Areas around its been over a couple days at this point the airlines have been adding flights over the past couple of days, but the window is closed on that. Operations start to wind down. Morgan, thank you were following another story. A lot of things happening. This is an earthquake in mexico. One of the most powerful earthquakes in years 8. 1 earthquake striking off the countrys Southern Coast early this morning it triggered a tsunami warning along the entire Central Coast of central america. Earthquake hit 70 miles off the coast of chiapas, mexico multiple aftershocks have been reported. The top corporate story. Equifax says a data breach may have exposed the information of 143 million americans. Equifax discovered the breach july 29th. The data exposed includes names, birth dates, addresses, drivers licenses and Social Security numbers. This is one of the largest breaches weve ever seen still smaller than the yahoo breaches of last year, but 143 million americans. You can see if you were affected by going to equifax. Com, i have heard reports about that website being difficult to navigate if you can get into it. I did it last night its even unclear to me how it works. Whoever designed it did a terrible job im sorry to say i dont know if they did it in a rush or what the issue is. You put your name in, your six last Social Security digits, you click through to this page, then its supposed to tell you whether you are safe or not, in my case it didnt say, so im hoping that means im safe, then it tries to put you to enroll you in some kind of trusted i. D. Program, which thanks. Gowhich given what happened then they set up a date for you to come back to them they have so many people coming back to the website. In my case, its a week or whatever its complicated it sounds like a big number when you think of how many people are in the United States. 310 million, 143 million got their information ripped off how many people have credit, how many peep dont have Credit History. Sounds like people who have a Credit History equifax, not a fan of any of those agencies couldnt happen to a nicer bunch of guys. It didnt happen to them t happened to us you have no recourse against those places i dont understand what recourse you would have now that they lost your information and had someone steal it from them somebody bought something at saks, returned it, didnt register that it was returned, so you start getting, you know arc late fee, so they assign a late fee then the late fee starts earning interest on even if you do pay it, it never comes off you never get it off your credit the one thing that that security people do say that may be worth while is to consider spending some money, it will cost you, where you can freeze equifax, experian and transunion will only provide the Credit Reports doing businesses with you, so other business cant get access to it if you try to get a new line of credit, you are frozen out. You have to give them permission it creates another complication. But in terms of the security element, perhaps shares again under significant pressure for this. We should talk about this other piece. Three equifax Senior Executives were lucky enough to get out before they of this happened they may end up in jail when this is all over unbelievable. They sold stock on august 1st and 2nd after th breach was discovered but before the cyberattack was revealed the firm said the trio had not been informed of the incident and had no knowledge of the issue before selling shares worth almost 1. 8 million. One of them was the chief financial officer. They say they had no idea that was my question, too the chain of command its hard to imagine i said it in jest earlier, its hard to imagine there wont be a investigation both by the s. E. C. And i would imagine perhaps even further. They may have been plans set up in advance. Thats the problem. I was wondering the chain of command. Some of them probably wouldnt have known about this in advance. Maybe theres an explanation for the chief financial officer, maybe there was a pending house sale put forth before. Maybe there seasis an explanati for this but it looks terrible. When you look at the shares and the result of this information berevealed to the public, you can understand why there may be an investigation into these issues we will have a Big Conversation about cybersecurity, 2017s Cambridge Cyber summit will take place october 4th it brings together Top Technology leaders, ceos and government officials to explore the latest in cybersecurity. We wanted to get to washington, d. C. A lot going on there as well the house expected to pass a 15 15. 3disaster relief package. Eamon javersdowns us from washington with that good morning. Speaking of the debt ceiling, we heard from the president of the United States yesterday. Something were not expecting to hear the president openly speculating about the idea of getting rid of that debt ceiling altogether you know it bedevils members of Congress Every time it comes up. Always a tough vote. The president thinking maybe we ought to get rid of this debt cells thing entirely for many years people have been talking about getting rid of debt ceiling altogether theres a lot of good reasons to do that. Certainly thats something that will be discussed. We discussed it at the mie inii meeting we had yesterday it complicates things. Its not necessary, youre talking budget but its something we could discuss. As long as its there, it will never be violated. The president saying it wont be violated while its in place, but musing about the idea of getting rid of it altogether the president there responding to a question from a reporter. I had a chance to ask Kellyanne Conway about this yesterday. I said was the president musing out loud here, or is there something going on behind the scenes in terms of eliminating the debt ceiling she said the president does not muse as much as we think he does if he says something in public, theres a strategy behind it not only were there meetings on there the day before, but also a set of meetings on this the previous day two consecutive days of meetings at the house to discuss how to get rid of the debt ceiling. How that will play out on capitol hill is a different bet. You could see how they could get the votes to get rid of the debt ceiling. But a lot of concervatives and republicans like it because its a reminder that the debt iscons. For the rest of the day, the president is at the white house, hell take some briefings on hurricane preparations youve been hear being that impending disaster in florida. The president will be up to speed about that then going camp david for the weekend. I guess i can see both sides of it. Someone yesterday said it is like taking your batteries out of your smoke alarm, and leaving it there right interesting way to put it. But then again, the republicans and the conservatives and the deficit hawks will always extract something. Well get something. They never get anything. It always gets raised eventually under obama they got spending cuts yeah, but was it because of not clear theyll get spending cutses thspend ing cuts this time the constant specter of closing down the federal government, the dance we get, i can see why the president might say that i can also see the other side. I dont know how do you think it plays out . Any chance it goes away . I think there is a chance it goes away. Democrats it would like to get rid of it. They always provide the votes to get this done. Republicans vote for it more reluctantly. They are forced to walk the walk a lot of republicans would vote to get rid of it your hard core Freedom Caucus, deficit hawks, those guys wont do it the question is whether the president is in a mood to roll them he seems to be in a mood to roll them this week you saw the president hugging Chuck Schumer in the office. That was a dramatic change of tone from this white house theres a lot of votes for this on the democratic side if they want to go that way. The Freedom Caucus guys, i will help andrew out here, the Freedom Caucus guys are ready to throw caution to the wind with dynamic scoring on the tax cuts are worried about how was that both sides are like that democrats give them away to redistribute wealth, the deficit is go to a million both sides are i remember when a top level politician said deficits dont matter i know. He was a republican. I know. He was Vice President. Both sides are thick with hypocrisy. Congress loves the power of the purse. Congress gets some control here. Really what this is about is power. Power of the purse is about power of the direction of the country. Congress is reluctant to give that up. This is a lever of power would be asking them to pass up on it. Would you say he changed his tune and it is a moment of great bipartisanship he didnt say it was a moment of great bipartisanship. Paul ryan said he didnt like the idea of a shortterm debt ceiling deal the republicans were pushing for a yearlong, 18month deal the democrats were countering. Finally they offered a threemonth deal, the president reached across and shook Chuck Schumers hand and said we will take that deal thats something reasons didnt want to see. They said previously it was ridiculo ridiculous, all sorts of things. Later paul ryan was asked about the deal, he said the president was in with all the hurricanes, diasters, he was looking for a bipartisan moment. He didnt say it was a great deal but it was a bipartisan moment by definition it was well so he how it plays out. Joining us now is leah bennett and chris cordero. Chris, in the same vain, this debt agreement, this bipartisan moment is the most positive thing to come out of washington, d. C. You say since the election. You viewed trumtrumps electiona positive certainly the markets did no, just not many people did now conservatives would say this was a disaster for what happened you think its a positive that trump worked with nancy and chuck . I think it was classic trump the way he handles things. He has to be unexpected. Thats the way he gets things done completely unexpected at least theres a sense of working with the other side i think this keeps everybody on their toes in the long run this is better for the markets. Can you believe that, nancy you know nancy. Pelosi. Nancy nancy called the president and said would you please tweet out that the dreamers have nothing to worry about for the next six months you saw the tweet. You must have liked that but this is something that trump said in over the last six months, hes been saying things like this also. Is there a genuine intrigue to nancy and chuck or is it a a slap down to mcconnell and ryan i think its how he actually feels. I think he wants congress to do something on this. Most of america wants congress to do something on this. Is it a deal with i wont say the devil. Is it a deal with people that may come back and hurt you down the road that you shouldnt have demt with on the first place on tax reform sorry, you will do reconciliati reconciliation that works in business, theres lots of different possibilities of people that you can do deals with. Youre stuck with congress as congress is. It may come back to paint himself in a corner. That is a big risk here. At least it gets things moving looking at your comments, none of this stuff is that paramount for you, its earnings are growing nicely regardless of whats going on. Definitely. I think there was a lot of optimism coming into the year that we would move more from an economy driven by Monetary Policy to one driven by fiscal policy that has not materialized. I hear a lot from clients. When will we have the selloff . Were concerned about trump. If you look at the underlying economy, operating earnings are supposed to be up 18 . Which is a fantastic year. Then if you look at july, Consumer Spending was up 2. 7 , capex up 4. 4 . So people a overlooking the underlying strength in the economy. I think thats why this deal was important. What could hurt the market is this plaqblackout period until e get to the next earnings season. The absence of data and how things are going, thats where the risk in the market is. This deta this deal takes that risk off the market. Bull markets dont die of old age, you are not seeing a recession on the horizon any time soon, are you no. I wouldnt be surprised if we had a pullback its been a long time, weve gone an unusually long time without a correction dont see a catalyst for a bear market or recession at this point. 2018 we continue to go trend higher even with the election coming . Sure. The economy is stronger than it has been the last eight years. Well see volatility well see bumps. Longterm were in good financial shape. Maybe well end up like one of those european countries, seven parties, no one win as majority we have had this for a long time the far right gets together with the socialists. We had this for a long time the idea that were a twoparty system is not realistic. If you lock at republicyou lookr democrats, theyre made up of a whole group. Its fascinating. You are just an outsider watching this. Im fascinated by all of this youre a citizen. I am a citizen. You think its a good thing . Who are you rooting for these days who are you . I do shaking things up appeals to me a little bit. Right but is he working with the swamp or is this part of getting rid of the swamp this is the question. Thank you coming up, when we return, get ready. Cnbcs delivering alpha is four days away. Guests include steve mnuchin, ray dalio, many, many more up next, well get you ready with a look at some of the big issues on the table. Youre watching squawk box on cnbc for years, at t has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at t. We do business where you do business. Welcome back to squawk box. We are days away from the delivering alpha conference. Leslie picker is checking out the alpha politics good morning its hard to think of a time when the intersection

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