Squawk alley. Thanks so much, jackie. 10 00 a. M. At sprint headquarters in oberlin park, kansas, 11 00 a. M. On wall street and squawk alley is live. Good morning. Thanks for join us on squawk alley. With me at post 9, mike santoli and kelly evans. Karla and jon have the morning off. We start with the markets on this thursday. The trump rally taking a bit of a step back as we continue to hover more than 100 points below dow 20,000. The blue chip index coming off its second tripledigit loss since the election. Major averages are fractionally in the red, mike. The s p down less than one point, ritch etting stuff here. Yeah. Struggling to tread some water. Weve been doing that for about two weeks. It reminds me of in august and september we had that really strong rally on the post brexit reaction and the market sort of flattened out near its highs. We ended up kind of going down about 3 i think high to low. Wasnt a big, dramatic move but after a while when you lose those thrusters pushing you up, the market starts to rethink the levels and maybe were in one of those phases. Who knows . We have year end and obviously the anticipation of an inauguration, a new wrinkle. Is this profittaking or window dressing . What what activity is happening . Profittaking and lack of new money coming in to buy the alltime highs two days before the end of the year. You dont need a lot of reasons why were not shooting higher. We have the calm, gentle activity you would expect right now. Obviously, you know, you might have had some magnetism of dow 20,000 but wasnt strong enough. Keeping an eye on the dollar, which yesterday was over 103. If you were looking for a nooufr this environment, that is certainly one. Now were down a little more than half a point on that today. Not buying a lot of breathing room, though, arguing thats a reason its been a tougher slog for equities. You also are seeing the treasury yields are backing off a lit lt bit so theyre at about a twoweek low. Bank stocks are softening today. Not dramatically but actually underperforming today. The new year could change all that, but in the meantime we have news out of president elect donald trump announcing two seminew deals bringing some 8,000 jobs back to the United States. I was just called by the head people at sprint, and theyre going to be bringing 5,000 jobs back to the United States. Theyre taking them from other countries. Theyre bringing them back to the United States. And mossa and some other people were very much involved in that so i want to thank them. And also one web, a new company, is going to be hiring 3,000 people so thats very exciting. The president elect yesterday outside his resort in palm beach. For more on Donald Trumps economic agenda and his oneonone deal making strategy, were joined by club for growth president and former indiana congressman david mcintosh. David, we now have pledges from ford, carrier, ibm, sprint, one web. Can we call this a trend . Look, it was very good news, the 8,000 new jobs. I think the key to becoming a trend is going to be what happens in the first 100 days of the Trump Administration. A lot of this, and i think the market excite as well is theres a sense things will change in washington. Theyll cut taxes. Theyll reduce the regulatory burden. Theres a lot to do, for example, with the federal Communications Commission to pull regulations back sol that Companies Like sprint and one web can be competitive here in the United States. But the president s going to have to deliver on that and put people in place who will make sure they dont lose the momentum. Well, speaking of momentum, in the grand scheme of things, the u. S. Labor force is north of 100 million people. So it would seem that just a few thousand jobs wouldnt necessarily make a dent, but what would this do to change the psychology of the discouraged worker or the person who has given up looking for a job if they now see that companies are beginning to hire again . Would that change the psychology of the American Workforce . I think it will. Youve seen a lot of people in the last eight years just leave the workforce. They had good paying jobs. They went away in the crash of 08 and 09 and they couldnt find anything comparable so they just retired or went back to school or became grandparents. A lot of different stories. And this is a message that, hey, the economy is going to start growing again. And theyll be good highpaying jobs, but to get there people are going to have to see action. Theyll have to actually see the tax reduce sod that were competitive around the world. Thats what the companies are telling president elect trump. Were coming back because youve promised to make the environment better, to lower Corporate Taxes, to reduce regulations. If those dont happen, then the trend could easily be reversed and well have to be explaining to people why there arent jobs or were losing them again. Theres a lot of work to be done. Well touch right on the issue, that big if hanging over a lot of these policy changes that may be coming. How are you going to gauge the progress there in terms of do we need to hear an announcement in the first couple days . Is Congress Going to be able to come together and kind of push through some of these tax reform measures and in what worder should they come in . How do we start to follow the progress of this actually happening . Id look at two or three key things. One looks like its teed up. The repeal of obamacare. That has a tax cut embedded in it because of the tax increases that came along with it. But second will be what president elect trump does on his first day of office. Does he signal and order the regulatory agencies to pull back on the Energy Regulations . Does he signal with nominations that the fcc that hes going to put free market people there . Those are going to be a second wave of signals. And then finally i think youre going to have to see the actual tax reform bill be introduced in congress and gain support. Right now its just on the drawing table. Youve got different plans from the house and the president elect trump. Theyve got to come together with a plan and start selling it to members of congress and the american people. But, david, i mean, lets say you get tax reform. Say you get deregulation, which is some of the lowerhanging fruit. There is still this lingering question over whether a stronger dollar and this talk of trade and tariffs and more hawkish trade policy makes all of this come out in the wash. Very good point. One of the big fumbles that the new administration could do would be to call for tariffs. That would send a signal that theyre actually going to be raising taxes and what weve seen is you then get retaliatory tariffs from other trading partners. And the history on that is very bleak. You see a worldwide recession if people truly go to that type of protectionist stance. So i think the new president will have to be very careful. The best thing they could do in that area would be show that hes serious about wanting better trade deals. Britain needs one after the brexit vote. Theyre dying for a trade agreement with the United States. We should negotiate one. Put that on the books and show that President Trump can negotiate good deals. I think if they focus on that area and stay away from the tariffs then theyll avoid a big pitfa pitfall. Thats certainly something republicans have been pushing for. Well see if they get that for now. David mcintosh, appreciate your views on this. Thanks so much. Great to be here. We want more detail on that web one announcement. 3,000 new jobs being created in this country. Josh lipton will break it down. One web wants to build a network of 900 satellites that will deliver High Speed Internet Service in rural and emerging markets. Greg wileer, the founder of one web, was on squawk box this morning. Were building an incredibly new and ambitious system that will be providing Internet Access initially to almost 10 million residential households, well be doing enterprise, providing Internet Access to erick and to ships all around the world. Its a fairly complex system, but weve found a great Knowledge Base in the u. S. And we do a lot of work also in other countries, but the u. S. Has been fantastic. With this hiring spree, wyler says hell roughly triple his workforce. Theyve raised . 7 billion from investors, including 1 billion from softbank alone. Its board of directors includes paula jay sobs, richard branson, and airbus ceo tom enders. Onewebs dream of connect canning the world has been tried before by many other companies with smart founders and tons of money. 20 years ago, for example, bill gates and craig mcgraw backed a 9 billion plan to connect the world with satellites. That company was called teledesic and its goal was grand, 840 satellites circling the earth, but ultimately as nbc news notes, only one satellite was ever actually launched and the venture failed. Wyler says this time is different, the need is real and the technology is now both powerful and affordable enough to make this dream into reality. He tells me he plans to have that constellation of satellites up and running by 2019. Guys, back to you. That is not very long from now. Well see how they do. Josh, thank you. When we come back, why bringing thousands of highskilled, hightech jobs back to the u. S. May be easier said than done for the Incoming Administration. And then new developments in apples plan to expand in india. The details up next. Plus an inside look at the snapchat ipo road show. The message where the next facebook, not the next twitter. For squawk alley in a moment. As part of the president elects plan to bring jobs back to the United States, oneweb says its jobs will be hightech positions sourced from all around the country. These will be very hightech, highly skilled manufacturing and engineering jobs so really right at the cusp of highly skilled manufacturing and engineering. And where will they be based . Really all across america. We have a very broad Supplier Base so in florida a lot of jobs in florida, a lot of jobs in arizona. Maryland, virginia, and of course california and many of the different states around in smaller numbers. The narrative by Many Companies since the Great Recession including those in Silicon Valley, we have jobs to fill but no one qualified enough to fill them. Did trump and oneweb find a solution to that problem . Lawmaker good, Senior Editor at the verge and kate mitchell, skill venture cofounder and partner. Lauren, whats interesting about what onewebs mission is, its also something being tackled by facebook and google and i wonder whether theyll be poaching from other companies versus just bring nug peoping new people in workforce. Its hard to say at this point. We know during the election and the Campaign Season president elect trump did, you know, express pretty strong views around immigration, but that was specific to illegal immigration, and its unclear at this point what exactly this will all mean for highskilled workers, highskilled immigrant who is come in with proper work visas. We know for Silicon Valley, immigration is a huge issue, an important issue in the sense that according to some reports, you know, 43 of Silicon Valley companies founded in the past seven years have been founded or cofound by an immigrant, so its vital for these companies to sort of retain the same kind of workforce that has powered Silicon Valley in recent years. We just heard the chief of oneweb talking about these jobs which will be anywhere from arizona to florida to maryland. A couple weeks ago 6 60 minute profiled a county in mississippi trying to retrain worker who is had previously worked at a pork Processing Plant who were going to be managing robots. This is a hyperlocal problem. How do you get at the local level that training for workers . Yeah. Youve hit on the key point and i think youve talked about it that we have so many skilled jobs that are going wanting. The most unfilled job in the United States today one would think as a Computer Program issed a manced manufacturing as people just as youre referring to in mississippi that actually can run the manufacturing jobs that are begging in the middle of the country. And i think what i didnt hear enough of and i hope to hear more of in the next months is not just bringing back old jobs, new jobs are here, but new jobs for people who understand them. Advanced manufacturing. Where is the retraining. That needs to be at community colleges, local colleges, states, cities, counties need to support them. There can be National Programs that provide funds for retraining because there are so many unfilled jobs not just in Silicon Valley but as you say in places like mississippi and michigan and indiana, that call for skills. Interesting is skills where you also need expertise in Something Like manufacturing. I hope theres more attention spent to that because theres opportunity and theyre highwage jobs. Lauren, whether or not there is still this gap between the supply of hightech jobs and the available workers to fill them, it seems as if perhaps well have this new corporate tone out there where it seems like the thing to do to claim youre going to be creating some jobs in this country and maybe Silicon Valley, which has already had all these job openings can kind of rush to say hey, were on the team, well try to do this. Is this a place where Tech Companies do you think might want to sort of remain in tune or seem in tune with the Incoming Administration . Absolutely. And i think the key is completely right that it comes down, a lot of it comes down to education. You cant just say, oh, we have these job openings, or, oh, were looking for highskilled workers in this particular area. There has to be some type of education sort of at the base level to train people in these hightech jobs as robotics take over more and more jobs, whether its in warehouses or in vehicles. I think people need to have the proper education level in order to, you know, stay relevant and i think Silicon Valley, it would be wise to participate in some level on, you know, on that education. It will have to be a multiyear solution and well see how it pans out. Were also watching shares of apple this morning. Indian officials are reportedly planning to meet early next week to discuss apples request to manufacture products in the country. This is according to the wall street journal. As part of the request, apple is seeking several financial incentives as part of the countrys make an india campaign. Kate, if youre apple, how do you balance the current economic narrative happening in the u. S. With the desire and the need to expand where youre trying to gain market share and where you hope your new customer is . Well, i think, you know, were talking about the jobs that we just talked about with oneweb coming to the u. S. Or apple contemplating where it goes, remember all these companies are created in the service of the shareholders, number one. Their job is to, you know, provide returns for their owners, their shareholders. In the case of apple, then, what theyve got to balance out is their slow growth and a lot of their growth is coming from emerging markets, not new products at the moment. One pod is interest, and lauren, you probably cover that actively. But they need that growth that comes out of india. India has all kinds of impediments to doing business there. Apple is in the process of negotiating, being able to change the labeling, being able to do some manufacturing, getting incentives to both build manufacturing and stores in india, which will be a huge Growth Engine and i think really important. If youre tim cook, you have to be open and communicating with this administration, but you also have to do the best thing for your shareholders, which is to drive growth. Its funny because the front page of the new york times, you were pointing out, talking about the reality of how this is all going down in china, let alone in india. This big feature in the times spotlights the fact that literally billions of dollars in incentives and manufacturing, the creation really of whole towns in china, iphone city is behind apples involvement in china and all the manufacturing that will foxconn does there as a partner. It seems globally theres clearly an arms race. Its not just about the head of state saying wed love for you to make more of those products in this country. This article talks about the government is literally working on these phones. Is indias approach vastly different . Because it seems to be were not going to hem you at all unless you help us first or does it ultimately in india it seems like its more checking off the boxes. This is what we require for anybody who wants to sell products domestically in india. You have to make certain things here, label your products a certain way. Not clear its an allout investment by india. How different is what india or china is doing to work alongside these companies to try and create an economic boon there to, you know, what tesla was doing when it was drumming up rival bids for the giga factory several years ago . Lets talk specifically about what this means for apple and india. You talk about this article that came out in the times today about how theres an entire city called iphone city devoted to making 500,000 iphones a day and thats just one of them. The manufacturing infrastructure is already in place in china. In india, the big question will be whether or not vendors can actually make or sell the premium parts apple needs in ord