Times square, 1970 if only it were like that. There are still those nudists around here. There are still painted people are they naked or painted . And elmo. There will be some falfafal action out there some finest how about new yorks finest showing up for us today to protect us here. Out in fum forll force not for us . We can think whatever we like. Its about 11 months in the making big thanks to everybody who put this together for us the bugs are all out. I can hear things in my ear. You . I can we can hear our own voices, which was a problem when we first moved up there its disconcerting. Im always hearing voices in my head. You had its complicated. Its the dnc usually, isnt it oh, where is the phone to call how long did it take . 6 01 59 new home for us but were still watching the markets as always things have been under pressure in a big way dow indicated down by 130 points s p futures down by 13 nasdaq off by 33 this comes after down day for the markets yesterday. We did see stocks ending at about the session highs yesterday. At one point the dow was down by 168 points, ended up closing down by 30 points. A lot of this is a reflection of what weve been seeing overseas. Airbus just securing a very big order at the dubai air show. The european aircraft maker signed a deal to sell a record 430 jets to Indigo Partners. Indigo run by the chairman of frontier airlines. The deal could be worth nearly 50 billion at list prices boeing announcing a deal today as well. It secured an order with fly dubai for 175 boeing 737 max jets with options for 50 more. The order expected to be worth 27 billion at list price. Then the consumer will be front and center today target set to post results today. Also well bring you those numbers as soon as they hit the tape dont miss an exclusive interview with target Ceo Brian Cornell on squawk on the street. What do you know about indigo based here, but they have investments around the world and lowcost carriers . Lowcost carriers in emerging markets and other places but based here . I think the headquarters is based here is it a u. S. Domicile that, i dont know. Boeing could have used that nice order i think its a u. S. Firm, isnt it technically a u. S. I dont know its okay maybe airbus gave th a great deal we have a great airplane maker here, dont we we do boein boeing look at you jawboning for america. Got a big order were all trying to Work Together ill get you details. They can do whatever they want but any way stocks to watch this morning foxconns Third Quarter profit fell 39 , missing forecasts. The company is one of apples major suppliers. The profit decline comes amid production issues that delayed the release of iphone xs sorkin based in india. Okay. So there. Yeah okay. Would have been nice all right. Fine that makes me feel better. I dont want to be an economic nationalist all the time if it had been but sometimes sometimes by the way, sorkin, i was trying to send an email the other day, i got this bizarre thing the eye with the question mark in the box you send it, it has the weird i had to do it upgrade your iphone yes theres a bug its been fixed once you upgrade it its like youre infected. I havent gotten it well talk about this we talk about these cybersecurity attacks, how reliant we are on computers, the cvs thing you mentioned at the top is a big issue with scott . Just from my own experiences, finding stuff out yesterday. Major outage over the last two days well talk about that. Cargurus Third Quarter earnings and revenues beat forecasts. The online auto marketplace is raising Fourth Quarter guidance that stock up more than 20 since the ipo. Astrazeneca getting fda approval for a drug to treat severe asthma. Clinical trials showed significant improvement in lung function and allowed many patients to reduce their use of steroids lets check the markets this morning. The markets here are under pressure thats happening because of what weve seen overseas. Look at whats happening in europe the markets that are open there at this point, the dax is off by 1. 3 italy down by 1. 5 other stocks across the board down as well cac is down 0. 6 so is the ftse. A lot of this because of what started in asia. Overnight the nikkei was down sharply. Down 1. 6 . This is the lowest level weve seen in many weeks for the nikkei it had been on a steady march higher stocks down by 1 . Crude oil prices yesterday down under down by almost 2 , the worst day in about five weeks. That morning thats continuing to drop another 1. 1 to 55. 05 for wti. If you want to look at whats happening with the markets with the tenyear, you can see the tenyear now is yielding 2. 335 . When it comes to foreign exchange, you will see that at least at this point it looks like the dollar is down across the board. Right now the dollar is trading at 1. 1844 for the euro yen at 112. 77. Gold prices, very quickly, lets look at that right now gold is up slightly. 1,285. 50. That was a quick snap back in the euro 1. 16 the tenyear down what did we say. Down again commodities weak wobbly. And just stocks pulling in junk, too junk, too. Junk bonds. Can we get some market experts in here . Oh, this is great. Joining us now, hans olson from the wealth and Investment Management business at stifle, and the chief global strategy from Deutsche Bank you have been bullish on the markets since President Trump was elected. That was in the teleprompter maybe i didnt know that, did you tell us to say that . Is it true it is true,but i would say before the well before the elections. That makes you a rare bird indeed i saw Something Else on a website this morning, it talked about some things setting up, some technical underpinnings that are shaky sure. Is this the beginning of a little bit more volatility, maybe 5 or so i think its still actually a little bit early for that. I would say the tremors this week are coming from, you know, some very slightly weaker than expected data in china thats creating a lot of sort of angst. So you see commodities in particular taking, you know, a hit. The technical issues, i would say, are in japan. Then theres no doubt theres a bit of mystery about what those technical issues are if you look at u. S. Equities, 1 from the top so were on track to become the longest rally since world war ii without a 3 pullback. You know do you think its time for a pullback it wouldnt surprise to you see a bigger one now so, 3 to 5 pullbacks happen on average every two to three months we are in the 12th month without one. We can talk about why. But all those same drivers for why we didnt get a pullback argue they will go longer. All the headlines say Indigo Partners is a u. S. Based private equity firm. Im on a need to know basis. Then i can go back to my rant. Is indigo a lowcast airline you looked up thats in india . Indigo registers Interglobe Aviation all the headlines say u. S. Private equity firm Indigo Partners im back to being mad. Go for it did you see im working on it hans, you im trying to remember im here in the United States i know. Im trying to remember with you, you i dont remember you being pound the table bullish. No. No now, reading your notes, you think this will continue because earnings were up 6 which is double what people thought i think if we open up the lens more, a correction of 5 to 10 , we talked about this. When will it happen. The conditions are ripe the longer we go the reality is that a lot is being priced in to the market now. A lot of things have to go right for us to go on with you mean Tax Reform Tax reform. No negative feedback loops for monetary normalization no policy mistakes things like that its a long list it would be unique for us to sort of transit the next six months let alone 12 months without some sort of trip up especially now as the comps started to get harder. We came out of the earnings recession last year at this time its just going to get harder to make the advances as we go from here that said, from an economic standpoint, i still think we are in the late stages of the cycle. Recession is not imminent. We have more you thought it would be tough sledding for the year. Why should we listen now, when you thought its a year later okay. You were just early. No one likes to be no one likes to be early, but the successful mon generalcy will early we stayed in the market. Started to rotate our exposures. We have taken down the high yield to zero sort of belt and suspendering this. But we participated for sure its not a question of being in or out of the market its about where youre getting paid and where the margin of safety is. You had a couple of ill use a couple of those things belt and suspendering and right out of the box, it was i dont know the language you used. Im going back to binke. I have a bit more for you is it a u. S. Based private equity frank is saying the planes are going to be assembled potentially in the United States how do you feel about that what . I dont know how i feel now should i feel half empty or half full airbus doesnt have factories here i dont understand this but nonetheless u. S. Based private equity do they get the advantage of carried interest and buying u. S. Jets President Trump came up in franks conversations with journalists, he said the american leader would be happy to know the a321 neos would undergo final assembly in mobile, alabama. In alabama, they have a 53acre facility how you are feeling now im half full, half empty now. Im glad theres some assembly here im back to getting becky involved private equity and this is carried interest buying airbus jets to get the benefit of those 23. 8 instead of the 39. 6 that everyone else pays. These guys are working it coming and going, enriching themselves coming and going buying french airliners with our tax rate. Look at you. You know, i used to make this carried interest point years ago. No, im not you thought i was the antichrist. Hes not on board with it im still not on board. The whole tax system is not fai fair youre right, if we try go about making it flatter and fairer, i dont think we should leave the highest paid individuals we pay 39. 6 or 50 or higher once you include local taxes. Thats what we include. Suddenly corporations will be paying 20 corporations is one thing i know, but why do we decide my point is why do we decide corporations should pay 20 when we pay 50. Because you you have been telling me it will lead to growth im saying for growth, you the people that think that private equity should get a break are people who think growth derives from it no, theyre not theyre lining their pockets by paying we have guests here we do have guests on the set buying and selling them later after they they had no idea they would have to weigh in on this if i had more money in my pocket, i could create more jobs, too. I look at the tax system not about fairness but for growth. If youre going to hurt the growth its not going hurt the growth of private equity maybe not final word from final word from our guests. Its nuanced. I think the u. S. Corporate tax system is crying out loud because its broken. We keep talking about lowering the Corporate Tax rate for the 35 . Im not arguing about im not arguing about lowering Corporate Taxes, but what youre doing to individual taxes. Why are we going to get rid of medical deductions that seniors rely on and the adoption thing because it will never be fair we are not getting rid of the carried interest part. Who spends more of their money . Individuals. You give them a tax break, theyll spend the money. Corporations, it needs to be reformed but who spends more money . The individuals, not the corporations im not arguing against luring Corporate Taxes you should be why should they get 20 . Its not fair if they get 20 and we get 55 they are not people. Were talking about job creating industries youre not talking about giving some of the highest, wealthiest paid individuals lower tax rates. Now youre doing the class stuff again. Im not i can understand why wait. Hold on. Make this argument to me if you take away carried interest, it does explain to me what it does to private equity at this point, if you are attracting the best and the brightest because of a financial incentive to get into the business, if they buy all these thats a separate question. I understand what youre saying. My question is why have we decided that hold on im not saying i believe this the private Equity Industry, the oil industry and the oil and gas industry is over every other industry we think it will cause growth they still pay the tax. I know they pay the tax were giving corporate individuals these are individuals i understand that we have different tax rates on whether its going to cause growth somewhere well never get fairness never have fairness. The progressive by the way, youre making an argument that none of the lawmakers who have come on the program have made the argument most dont know what it is we talked yesterday about our friend at carlisle, great individual, very charitibility he sees a reason to argue for car rid interest to stay it benefits him its not just for lining his pockets. Warren buffett has a great line oh would you ask the barber if you need a hair cut . Of course he will say you need a hair cut if you ask david should he keep the tax break, of course he should keep the tax break. If you ask Warren Buffett if he ever paid more than a penny than needed in taxes, he will say no. Apples and oranges. If were doing a massive overall of tax code, we should fill in as many loopholes as possible the whole progressive system we have here, people who make more money pay more. Were okay with that yes we should be okay with that. Theres a societal reason why we do this Hedge Fund Managers make a lot more but you want private equity to be strong but what were talking about is revising the tax code to make sure we dont pay for medical deductions and incentivize i cant understand the incentives youre talking about. Lets say that you you probably say its not possible lets say we do that and the private Equity Industry doesnt do as well for the next five years. We do it, they dont buy as many troubled companies, they dont fix as many companies. Any dont hire as ma any and they dont hire as many people. The salary they get is taxed at ordinary income. The improvements they make on the company the improvements are often slashing jobs, making sure youre cutting losing jobs along the way. Youre slashing jobs if you change the mortgage deductions hold on, do you appreciate this has nothing to do with investment money pension funds, all the money going into private equity, it is all unaffected by this i understand that the people there trying to improve, it may take five or ten years for them to be running these companies so they decided they may not do it . You may not have as many of the best and brightest going into the business. I agree with that if you cut the mortgage Interest Deduction you are also potentially hurting the housing industry which is more important to the overall economy we tried incentivizing housing, that doesnt work either but you do know that historically theres a debate about it employment from the private Equity Industry is debatable at best. Thats being charitable. You cant know what companies would have been gone completely. Thats why its debatable if youre trying to create growth im saying its nuanced anything in the tax code is nuanced. Were gooded a fixi ed at fi companies, some of the smartest guys go into that business its nuanced coming up how are you doing we might do this for three hours. We do every day, actually. Cvs consumers expressing outrage online after struggling to fill prescriptions. Becky will bring us some firsthand reporting after the break. Most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. Just, uh one second voice guy. [ bloop ] huh . Hey . I paused it. Bam, family time. So how is everyone . Find your awesome with xfinity xfi and change the way you wifi. Welcome back to squawk box. There are a number of reports surfacing from patients across the country that they couldnt get prescriptions filled at cvs stores i ran into this firsthand yesterday when i took my daughter to the doctors office. They said the entire network was down we reached out to the company. The company said they were experiencing system connect tefitef i connectivity interruptions, but that you could still fill prescriptions. However doing that is not easy you will find outrage from people out there one twitter user responded by saying its untrue its impossible to fill while systems are down its not just customers complaining about this, some pharmacists were saying stop blaming us customers are screaming at us. This is not our fault. We cannot refill your prescriptions when the system is down like this another user said let the cvs disaster be a lesson to everyone never wait until you have one pill left or before you fill out a refill for a medication. Amen. This is really kind of eye opening, because it gives you insight into whats happening with companies all over the place. I dont know if this is a cyberattack, but it sounds suspicious i picked something up at walgreens. I reached out to dave dortmon last night, the nonexecutive chairman i asked what was going on. He got a note back from management saying this was an internal Network Infrastructure issue, as of yet an unknown cause. They said they made some changes, the problem seemingly cleared. I think it raises questions about whats going on. I think this is typical of what happens in corporations at large if theres a problem with the systems, i think about our own email