Transcripts For CNBC Squawk Box 20180108 : vimarsana.com

CNBC Squawk Box January 8, 2018

And ive always said this. Its nice to have kids because you need to live to watch them grow up, right i guess time is passing, they cant grow up. Did you have a nice day we did. I i dont know, i thought i had a free rain ein to imbibe. You cant tell what youre doing until its too late. So i have a picture we had a cake when we got home. I was laying on the couch and they took a picture of me because i wouldnt sit up to eat the cake you need those glasses that we had stounounds like a good birth we went in the big city it was fun. Happy belated birthday. Thank you. Folks, lets check out the u. S. Equity futures. The second trading week of the year green arrows dow was up by 577 points gain of 2. 3 nasdaq up by even more 3. 4 just in the first four trading days looks like there are green arrows across the board. Dow futures up comes after big gains up tonight in asia. Nikkei up by. 9. Hang seng up by a quarter of a percent. Shanghai up. Early trading in europe this morning you will see that the markets are up the only laggard is the ftse finally, take a look at crude oil prices which were up by a dollar over the course of the week last week this morning crude oil up again pushing towards 62 a barrel at 61. 79. In Corporate News Jana Partners and calstrs im seeing the picture of the cake. We cant really show that but anyway, take action to curb the growing smart phones. This is something im not kidding, i worry about. I do, too. I still think well be okay i use my iphone a lot. Childrens brains are wired differently than ours and they are much more quick to build into patterns and find addiction. I wonder. Jana urging apple to take action to curb what does that mean, to curb the growing addiction. How is apple supposed to do that they want them to put in Parental Controls that you can take more control more easily about how much time your kids can be spending on these even if they have a phone. They get phones because they want to know where they are. Dont want them to have the phone all night in bed with them contacting who knows what and when they want more Parental Controls. When you were growing up in cincinnati, ohio, is that correct . Yeah, Everybody Knows that. Thats why i bring it up. Did your parents know where you were every waking hour you somehow made it here just had a birthday over the weekend, went to the city. Im successful because im alive is what youre saying . No, thats not what im saying you made it without your parents knowing where you were. Short of putting a chip in their arm, it is it is thats the way you track them you can see on gps. You could get by. Its not just that theyre stalking children, but its just the constant stimulation through cyber the need to have the phone with you childrens brains are different. Theyre not developed yet. The two investors collectively own 2 billion worth of apple shares. They sent a letter calling for the company to develop, as becky said, new tools to help parents control and limit the use. They also studied, which we havent done, the impact of overuse on Mental Health and first it was facebook. Who knows by the way, these are investors who own a stake in it who are saying if we dont do this its going to impact the stocks value over time. They want to make sure that they are heading off anything that could turn around and bite the company down the road. Combination of iphone, instagram, facebook and all of that stuff i think the pressure that puts on teens. Do you remember wall street do i remember remember that phone that was like a cool phone it actually worked didnt have a wire. Worked at the beach. That was all we knew. Then it came the flip phone. Ill make a prediction. Theyre hip. How cool would it be if you were walking in that restaurant saturday night and pulled out your flip phone the table was pretty good celgene has agreed to buy impact biomedicine for up to 7 billion. The deal is structured in three parts. 1. 1 billion up front and additional payments will be based on whether the companys impact, cancer drug gets fda approval and novo nordisk said ablynx has rejected its offer they say this bid is 14 higher. A frozen pipe caused a problem at jfk then yesterday a water main burst spilling three inches of water into the arrival area of terminal four. That Services Delta and international airline. A frozen pipe wasnt protected from the cold. Passengers were stranded and luggage piled up i dont know if you saw any of it, it was where people were bumping into for like seven, eight hours waiting to get off the plane. Yeah. It was quite a scene. I was very glad i wasnt traveling. Was this all from the Global Warming bomb or whatever it was . Was it all from that i think so. Yeah. Nkts it wasnt called that it was caused by that but it was not really called what was it, a polar bomb bomb mo bomogenesis. Quale knows. Bomogenesis like a Global Warming bomb. You were impressed that it was an actual meteorological term i was when the pressure drops 24 millibars in 24 hours or something. Cold weather affects it. Pretty hideous, went from a lot of snow to where you get it so you can drive, which means it melts a little, then it goes to zero degrees the numbers were frightening i have dogs and stuff. So im out early in the morning out in our yard. It was like, i dont like this. Exposed skin is a problem. Right right. There was 100 Million People in the United States affected by this President Trump travels to nashville to speak to the American Farm Bureau Federation. This is after spending the weekend at camp david. Kayla tausche joins us with more good morning, kayla. Reporter good morning. Camp david talks were called productive aids say gary cohen talked infrastructure, speaker ryan talked entitlement reform. Those programs will likely be less ambitious than previously discuss discussed. Outside camp david, steve bannon tweeted yesterday apologized for not commenting sooner. Don jr. Is a patriot and a goodman and that he stands by the president and his work to make America Great again wolff on the defensive for the various factual errors for his reporting of what we know to be some true events heres wolff on meet the press. I think we mixed up mike berman and mark erman. For that i apologize but the book speaks for itself read the book. See if you if you dont feel like you are with me on the couch in the white house and see if you dont feel alarmed, as you say. Reporter today the president will attend the College Football National Championships in atlanta after a stop in nashville to address the farm bureau thats his first major speech since tax reform passed. Grace darling says he will taut tax reform hell taut deregulation, efforts to combat the opioid regulation and a policy report commissioned in an april executive order. Thats expected to be released today. Asked whether he will stay in nafta, a white house official tells me trump is committed to a fair deal regardless of what strategy he employs to get there. Well see what details we get around 4 00 p. M. Eastern time today. Joe. I forgot that it is tonight, alabama georgia its kind of late for us, kayla, isnt it are we not psyched about georgia . Reporter im psyched about georgia. Im a huge georgia bull dogs fan. I went to unc. You can take a nap in the afternoon, joe, and stay up for it if its anything like last weeks game where georgia won in doubling overtime, youre going to want to stay up for it. Who told you about my afternoons. Reporter i think you told me about your afternoons. They said he had been out late just take a nap. She said, i dont sleep during the day. I was like slacker. I do at times i do i can do it kayla, i can do it reporter its a skill. Sometimes i dont even know whether i dont even remember whether im napping or awake were off at 9, right . I cant throw stones. Ive done the same thing. During the day . Yeah. The 3 00 a. M. Thing every morning. If youve got to be out at night. Yeah. Look. Kayla, when are those awards coming out wednesday . They got pushed back, right . Golden theyre not Golden Globes theyre something the dishonest and corrupt media awards as the president is calling them supposed to be today at 5 00 but because of the president s now busy schedule with his speech and attending the National Championship game which came up fairly last minute, hes now moved those to wednesday he announced in a tweet the idea was that it was spoetsed to coincide with the release of fire and fury. Okay. Got it well have that to look forward to and Bank Earnings, kayla so thats coming up later this week, too. Big week just in terms of excitement thank you. Sure. Lets get to our monday morning strategy session joining us is steve wood he is Russell Investments chief Market Strategist from north america. Scott brown is Raymond James chief economist. Also our guest host for the hour, guy adami. Welcome to everybody guy, lets start with you. You havent weighed in on what you think about the markets so far. It has been a pretty meteoric rise like the market, like the president. Dont like the market, dont like the president , you cant fight whats going on here look whats going on in asia the market has been unbelievable you stay with whats working the industrial names are out then you look at Aerospace Defense and the banks on top of it, like it or not, were in an environment where stocks will grow higher. 80 of the week last week were up 2. 5, 3 despite your political wranglings and whereby your view is this week. Well talk earnings they think they will be very strong and changes to the tax law could be ratcheted up, too. We would agree. I think the composition of the earnings is becoming more interesting. Ill jump off of what you said the nonu. S. Global growth story is kicking in. This is an opportunity that weve talked about for a u. S. Dollar investors to diversify globally a lot of strength will broaden up its a rebalance away from whats been doing well earnings should do well. We think that the tax plan will contribute to that the question on the table for us is does the fed take that away so what the tax plan might give us and i think the fed will look at that. I think its a mixed picture but a Good Opportunity to rebalance, do your blocking and tackling. Do your homework and look at a global valuation story which might be a little bit more attractive than the u. S. Valuation story. Scott, why dont you weigh in on the fed we have kevin has set on later this morning hes made some comments that he doesnt think the fed necessarily will have to raise rates more rapidly than the market is already expecting, two to three times for the coming year what are your expectations in terms of growth expectations what do you think the if he had will do . This is a smoothe transition at the helm. Fed. A lot more clouded outlook as you look at the last season, they have rotated off the committee. Were looking at a little bit more hawkish fed in 2018 and really a lot more uncertainty, i think, in fed policy just as the risks of a Monetary Policy error are starting to increase in terms of gdp growth, you know, you look at the late additions to the tax bill, there were things that werent in either the house or senate bill that are going to boost the economy a little bit in the near term. Such as what . I dont think the bill does much over the next ten years well, the cuts in the top income tax rates, for example right. That will add a little bit to spending in the near term, but not a whole lot. The bigger constrained, the major story in the economy is were looking at demographic constraints. Were looking at a much lower labor growth than we grew up with women were coming into the work force in greater percentages growing around 2 a year its slowing down to. 5,. 6 and then immigration there may be more slack in the economy and i think thats the big question for the fed, but ultimately were going to see job growth slowing down, not because the economy is weak, simply because there arent enough people. Were already talking about unemployment at 4 . Yeah. Were talking about it falling even further in the near term. It cant fall forever. The new bogey is 2 rather than 3, 3. 5 that we remember thats not necessarily bad news for the stock market you can still grow earnings in that kind of environment we expect rage pressures to create more incentive for productivity enhancing changes in the economy a lot of structural things going on. Everybodys pessimistic but you missed two of them already at 3 the journal has a big piece. Were going to talk to hassett about it longterm flowing theme despite spurt. Even robert gordon, whos so negative, the northern guy says i do know if i can say a name i need to buy a vowel. He says its too pessimistic about growth not because of whats happening in washington but because youre underestimating whats happening. Ai, all of this stuff, we dont know what youre talking about here technology is going to boost it and were going to stay at 3 or above. All of you guys, this 2 , thats all we can do forever, thats very depressing. It wasnt the way its been for the past 60 years. We werent constantly having kids every minute in the last 60 years. Constantly it was a lot stronger. Youre right. Technology could save us here technology for the first next five years wow, heres what i well, look. Over the last year job growth was the same in 2017 as 2016 that was associated with a further drop in the Unemployment Rate clearly you cant keep the Unemployment Rate dropping forever. Starts going up unless people start working more than parttime jobs, unless they get better jobs. Parttime jobs are down parttime jobs are down. People are working two or three parttime jobs. What does it mean for the market. Doesnt make sense. I think in the near term we will getter to 3 than 2 . As you go from 2018 to 2019 i think the odds of recession increase by the back end of 2019 just if you look at the yield curve, there is rich information there. Were dancing around 6 0 bips, two to ten that means youre less than half a percentage point for ten years. How can our yield curve do anything as long as were tethered to that exactly right the belly of the curve unstable. I dont know if its good if you would say a recession is coming, i dont know if that would make sense. Equity market versus bond market im going with a bond market. Coming up, on uber. Have you seen the news ad. I think its for an airline. Guy gets in an uber car and he starts talking its actually a get away car bank robbers get in. Then they bring bags of cash you havent seen that . Yeah. Hes in an uber car why uber can get your phones location but 911 emergency dispatchers cant. Figures, right that story is next nobodys putting their money into equities. Theyre not investing in commodities or fixed income. What people are really putting their money into is what they hope to get out of life. But helping them get there requires a real refusal to settle for average. Because when you approach investing with a tireless desire to beat the status quo, Something Wonderful can happen. Those people might just get what they wanted out of life. Or maybe even more. They always refer to me as master sergeant. They really appreciate the military family, and it really shows. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. Welcome back did you know that uber could track your phone but 911 cant that details the lagging technology between Technology Giants and emergency systems out there. Theyre still kind of try angulating where you are between cell phone towers. When youre inside a signal cant track as easily. There are Software Platforms that allow uber and others to do these things its been a huge source of a problem for 911. 80 of emergency calls come in from cell phones and they dont know exactly where you are. We just talked about pipes freezing this system doesnt work the technology we have, you didnt think these things would exist in 2018. Crazy. Theres something you need to alert the nearby cell towers yeah. I didnt entirely understand. It will be fixed. It should be. Its possible theres money involved. You by a good point infrastructure spending. I dont know. The companies. It will force the companies yeah. But you read the actual situation, like the one i read was just horrific. The babysitter, infant that fell out of the window and she didnt know where she wasnt sure of her address so the 911 operator is like, where are you . Shes crying looking for mail or looking out in the front to find the address on the house. Slowing things down. The person is injured and its taking time you can imagine if theres someone in your house. They say even in a minutes time with an additional minute of extra notice or less time taken up they can save lots and lots of lives. Right maybe joe and i should invest in this technology. I think it will happen whether we do or not. Because of the article . Yeah. Pay attention to it. Guy should be reading this. I think you did this, didnt you . What . This weekends deep freeze in new york city didnt stop commuters from participating in the 17th annual no pants subway ride in fact, the article i saw started with shrinkage they went immediately to shrinkage. According to improv, the group that stages the event, riders met at several stops across the city all of the riders eventually met up at union square those that chose to take the subway in their scivvies were freezing temperatures in new york city dropping into the teens and the only two requirements, guy, as you probably know right. For participating, youre willing to take your pants off on the subway. Youre not allowed to laugh. You do it and take the ride. Im glad your old buddy normal day for me. Im glad your old buddy dylan participated commando. You have to have you have to have pants underneath. Underwear. That shou

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