Jobless claims, lowest since april. The president agreeing to a twoweek delay on the tariff pause. Plus, the ecb is launching a new bondbuying program. Could it impact fed Decision Making until the next week and as the democrats get set to debate tonight, Elizabeth Warren propose ago sweeping increase in Social Security benefits financed by taxes on wealth the president delaying the imposition of good will tariffs. All of this coming ahead of planned meetings between the u. S. And china in early october. Earlier on squawk, the treasury secretary described the state of trade between those two countries. Weve had a series of principal level conversations. We have a deputies meeting planned in the next two weeks where the chinese will be coming here and working on material the vice premier coming here at the beginning of october to meet with ambassador lighthouser and myself we look forward to making progress over the next few weeks. Set tariffs could go up, they could go down. Hes looking at the 50year bond potentially next year. Right look, the president is banking on not just a very big ag purchase, but more than that the chinese telling the wall street journal they want to limit this to just trade good luck. The chinese are so misjudging the president. The president is a much harder line than they realize hes not going to cave because they order a lot of soy or pork because they havent been able to get the swine flu under control. Although he does seem to be focused on it. Talk about the farmers, its coming and when he didnt, he seemed to get very upset about it, as well he said if you dont come through, we are going up there and remember, this last round of tariffs, that was that fabled friday he was angry in part because the chinese put tariffs on the imports from the u. S. And they did not follow through with it all. Im thinking that secretary mnuchin represents one side of the white house. The other side of the white house wants to know, look, when are you going to stop secrets . When are you going to stop with what way the hawk eats the dove in the end. Mnuchin said hong kong would be the be part of the discussion, but your point is huawei needs to be yeah. Just because bolton is gone doesnt mean there arent hard lines. The hard liners are saying very specifically you cant delink foreign policy, military issues from trade you just cant thats a pipe dream of the chinese. The chinese are always regarded at face value and our president is regarded as material. I think the chinese are trying to get away with as much as they can. The president is more consistent than people realize. I think the bar is high again. If the chinese do not come through by october 1, i think youre going to see hes going to put those tariffs on and he may do it during that grace period were not the ohm game in town no. But this swine flu is underestimated and i say that because i know the guys at sowetas. Theyre trying so hard to solve it and they cant. This is a crisis of huge proportions of china huge eaters of pork. So they need our pork they need our pork. So if they dont start ordering our pork, we know they are you dont seem particularly positive on prospects for the next round of talks. No, im not look, this is not even accept and verify its literally, you know, you guys have just dropped the ball, the chinese, and i dont think theres anything going on. I say this by the fact that this reprieve, the future jumped really big and then they pulled back entirely. So, no, i just think the chinese better do something and do something fast and not just pork. You saw the journal story about them want to go separate from other issues, huawei or hong kong or National Security they cant. Peter navarro will come on to our network and say the seven sins of what they do i heard him talking about them on squawk thats the president s view thats the president s view, navarros view the president s view is not mnuchins view the treasury secretary is his own man. But i really feel the president thinks these issues are one and the same and i think the chinese think were idiots, bone heads, even senator warrens comments are not i dont hear her trying to save the family farmer. Shes trying to tax people who i think have room to be taxed. Oh, i said it. Youre saying the farmers are a subset of the wealthy . No. Farmers are voting for trump no matter what. The president is not sitting there thinking, well, i need them to put a soy order through to win iowa. The president is going to win iowa his base the base trouble versus base. Can there she is, Elizabeth Warren, talking about her new plan to increase Social Security benefits by i think 200 shes using the realistic wealth for people in the country except if you live in new york city right with a 14. 8 levee on incomes above 250,000 or 400,000 for a couple in Investment Income and another, she would increase the cap. So right now your Social Security tax, your pay is capped at 250,000 which youre paying into Social Security that would go up, come in at 14. 2 . If youre living in a high tax state or city where you are no longer able to deduct your state and local income taxes and this tax burden would be added, im not sure what your actual take home would be, but it would be a lot less youre going to have to move to tennessee is my suggestion or florida. For me, im going to be soon at the 60 tax level which means i start making money for myself. But i do well so i dont care. The way that we are busting the budget, it is pretty funny that the democrats are far more conscious of the budget than the republicans. Well, you survived the salt limits, people moving to florida out of high tax states already so maybe you can survey jive more yeah. I can survive. When you say on this network that you think its okay to pay more tax, there are people who are angry at you. But i am very lucky. Ive done well ill pay more tax. We know where marginal rates have been historically there were so many loopholes back then. Do you know when you say johnny, do you know who that is . Johnny unitis Johnny Carson his pop culture knowledge is weaker than my friend erin burnetts. Look, i think warren versus trump is just the dialogue now and there is a debate. Shes behind biden in the polls. Biden is still well ahead of her in the polls is he yes not kidding warren is i dont know warren is front and center on all the issues that we talk about. She retweeted us for a second straight day i think the lead at drudge was wall street she must be stopped. Thats what they say to me over and over again. There are people who say, how can you put her on how can you put her on sheegs a senator of the United States of america. Shes a serious, rigorous person you bet she is. Smart as a whip. Strong characteristic for people who achieve things. And you will say she is rigorous she tweets and sends you position papers. Shes not calling anyone a bone head, by the way despite the fact that you brought this line to the conversation that were looking at right here, you have a spot spot for her, it seems yes because because i think she has thought about the people who are doing not well in the country and that that is great. Can you say yet, would you vote for her i dont talk about who i vote for. Ive been pretty split who i vote over time if you want to look at my record. Actually, right down the middle. Sorry. Its become a big part of the conversation now and it will more so again if, in fact, she becomes frontrunner or she is to pick momentum up. Becomes but it will play into this larger conversation were going to have that is ongoing about the changing face of capitalism. Yes it goes back to the business round table and the rise of efg as a real focus for investors. And its real, i think what is the role of society and what does it this letter from ceos she is at the forefront of asking those kinds of questions. The letter from ceos on gun control. Wealthel tax on people who make 50 million do you think people who make 50 million will be hurt by that its 2 above 50 million. Those people do great i dont when i get there they can afford it is what im saying they dont feel like they can afford it. She came on mad money and she revealed a series of things and she said what do you think of them . I said i dont know, they seem reasonable she said its exactly what reagan wanted. 14. 8 on Investment Income if you earn more than 400,000 . Why not are restaurants and hotels exempt i dont give a darn why is Investment Income tax lower than the hard working ordinary people. Some say that is why there has been a divergence in income inequality alternatively, we have a president who is not talking about indexing them to Capital Gains to inflation although not any more yesterday he came back out so im confused nancy pelosi is right down the middle i remember when she was a bomb thrower. Shes now the most consensual tip oneill like person in the house, in the country. In the country no single payer for her. Cvs stock up today why . No single payer. Larry moistuerlot. Yes when i speak to ceos after the camera is done, they say, listen, what are you hearing about warren weve said the same thing its true they dont say what are you hearing about biden. Nope. That matters. Shes part of the discussion by the way, this conversation right here is now a podcast. You can listen to us in the opening bell hour squawk on the street. Were going to get stopped trade, jim in a moment dont go away. Were going to do the mad dash now. Jim, are you ready can we do this now of course i can do it now are you kidding me well do it after the break theres a look at futures. Oracle. I was going to do oracle back in a minute. Tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. Were got 13 minutes before we start trading here. Oracle reported earnings, also some news ceo mark hurd. What is your take . The Analyst Community is always bias against a company that is nongap13 , 14 , buys back a lot of stock. I think the quarter was fine that is the problem with this company. The quarter is fine. They always find something to pick on. By the way, ellison was back on the call talking about a big win versus work day on mcdonalds. That was the major take away that was one of the headlines. Huge problem. Mark hurd is the aggressive, not just front man, but the guy who drives sales were not sure about what is the matter with mark we wish him well, obviously. Taking a leave of absence shes brilliant has been there for quite some time the chairman he is brilliant yeah. Geez. But theyve had an unusual organization with these coceos and i just think hurd is the public face of the company i dont know i think hes one of the reasons why they have a lot of big wins. Larry elson is an amazing person and any tells in terms of spending no, no. You cant get a read ibm, theres these companies that people just dont talk about. Intel went from 48 to 53 poem don people dont talk about these companies. They care about zendesk and zscale, its an octo market its incredible what people care about now. They care about cloud, cloud, cloud. Ellison has always tried to inject himself and say weve got a great Cloud Business but i demand respect for ellison. When you go out to silicon valley, there isnt a person that doesnt think ellison is a genius hes back in his mid 70s but hes in his 40s, as far as im concerned. We wish you well if you ever Say Something bad about oracle, hurd hears it and hes in your face. Lets get in a break here as we count down to the opening bell, we are going to keep a close eye on smile direct. Selfie generation that is not necessarily meaning its going to be up sharply, but its going to be positioned to go above where its priced. Everything comeins a box a lot move squawk on the street live for you no two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. Return home. Here i go again on my own goin down the only road ive ever known like a drifter i was born to walk alone . Barb you left me hangin on the high harmony there. If you ride, you get it. Geico motorcycle. 15 minutes could save you 15 or more. Smile direct is getting ready rtoing the bell this morning. Keep it here indistinguishable muttering that was awful. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. Youre watching krncnbcs squawk on the street. Theres a lot to cover today theres the chinau. S. Moves, these good will gestures we talked about, the president s reaction to that, arguing that the fed didnt say bone head today, i dont think, but he did say the fed needs to cut i think europeans need to be careful. The president is no fan of murkel they could be next if they continue to make it so that the euro is being faced, they ought to be very careful. I think the president is itching for something against them he does not feel the old youve been saying that for a while. Oh, no, hes very upset with the germans. So i think that theyre playing with fire if they continue to go down this path i dont think youll call draghi a bone head. He wants our fed chief to do exactly what draghi is doing, just say in step the problem is they have no growth whatsoever. So they have to do something we have some growth. So i think that when we hear all these discussions about where our rates are going down to, remember that when Draghi Draghi is trying to debase the euro hopefully the business gets better i dont know that business is so weak to china. Europe is so linked to china thats one of the reasons why you never hear them doing anything i think the big test case, by the way, is more london. London Stock Exchange by Hong Kong LondonStock Exchange rejected it but would the london Stock Exchange be built by communist chinese. The london Stock Exchange wants to become more of a data provider, but its interesting and its the last chance to buy the lse and break the definitive deal and consolidate exchanges you see their strategy of farm lets say foreign aid, you see theres signs everywhere belton road in english, right in our faces. But i think you have to recognize that they the chinese are so close to europe versus us, we are not part of the equation when it comes to europe because we are not pro europe the reaction to draghi at least was brief. I think the entire german curve is back into negative territory. Lets get to steve and talk more about what he said he said negative rates are a he necessity and he went more into the necessity range there they cut their benchmark rate by another 10 basis points to negative 0. 5 they add 20 billion euros of quantitative easing on top of that he said the easing is in response to a lower inflation, weaker economy he said we see persistence of Downside Risks and muted inflationary pressures, as well. They downgraded the growth outlook. He was asked about the president s tweet, which you guys were just talking about let me play for you what he said the answer is very simple we have a mandate. We pursue price stability and we dont target exchange rates. Period carl, i dont want to make jimmy angry over there, but there are some people who say if draghi is not targeting the exchange rate, then what does he plan to have happen as a result of more negative Interest Rates other than the currency weaken carl so what happens now we declare them a manipulator, jim . It has to do with tariffs look, part of the conversation, youre talking about china with the white house. What have they said . Hey, dont forget the germans. Dont forget bmw just be aware, draghi, thin ice. Thin ice draghi. Well, hes done, anyway that is true. Legardes problem now steve, thanks. Talk to you in a little while. Steve liesman, lets get to the opening bell, s p 500500, on the big board, celebrating the network at the nasdaq. As we said earlier, the smile direct club, consumer medical Technology Company celebrating its ipo today. Original range projected in at 23 this is incredible because this is a company that is valued gigantically its goes up against invisiline. This is a do it part of a subscription economy basically and everybody who has had kids that have been using invisiline, the kids are happy they tend to be instagramaholics. But this is distranscriptive to the industry there are orth dontsicodontistsg me right now saying this shouldnt be allowed it is kind of do it yourself. Yeah. They take pictures. Then they make the molds and then you have a box that spits out every week or whatever it is a new one to address the gaps in your teeth or whatever it might be what worries me is why is the market going nuts for this one is it a revulsion . Is it a stretch to put it in your ulta estee lauder portfolio . No, its not a stretch. I think millennials love straight teeth genx, straightener. By the way, you go to europe, they could use this. United kingdom, holy cow they need they come on its no longer austin powers smile direct uk would be a killer by the way, moving on to ipos that are to come, this will set a tone and if its a positive one, it can only help even the weak company oh, david, youre taking that leap of faith . Im just saying great top of market. Im telling you top of the world, ma. Not necessarily i can see you betting warmer to it at 15, 16 billion where would that be for uber . And when adam gets ahold of you and does the mind melt on you, it would be like where is that company yeah, i guess so. Well see its going on be interesting two weeks from today, maybe. The last time i was with newman, i was with david blain youve taekd about that two magicians, right . One guy is able to get 4