Stories. Im looking forward to seeing that interview. We have new news on apple. A judge ruling that samsung infringing on four apple pat te ents. And best buy is shaking up its management ranks. Saying head of its u. S. Business will be leaving in february and its chief Administrative Officer at the end of the month. Best buy warning its Third Quarter results will fall women well short of forecasts. Shares coming under pressure in after hours trading. And former Goldman Sachs director gupta has been sentenced for two years for insider trading. Gupta has been hit with a 5 million fine. Of course he plans to appeal. Rajaratnam begins his appeal today. Where is scott cohn when you need him. Thats one heck of a story that a lot of people on wall street were looking at. Mr. Kernen. Whats weird is a guy that can be so sort of respected and distinguished and its just weird that you can actually be surrounded by other prisoners for two years. And as weve seen it so many times happen again and again. I was struck by bernie kerrik. Hes been in the sbhir tientire. Hopefully were in a position where we do our best. The only thing that scares me if you have a couple of cocktails and someone gets hurt or then youre headed to thats why no way. Stay home. Right. Need a designated driver. Yeah, stay home. I dont want to see anyone anyway. I like drinking alone. Thats one of the questions i will answer on my are you going to promote that . No, im not hes doing office hours on facebook. Whats the question. Do you like to drink alone. There it is. Are you fast. Is that the shirt that and he on . It sounds like if i drink alone yorks want to be around anybody else. When i drink alone, i prefer to be by myself. P go right. Me, too. One bourbon, one scotch and one beer. Jack can yelldanielss john, youre the fastest guy. I wasnt even planning this. I wanted to get off this chest. What else . I want to talk about you and your maria. Oh, wow. Anyway thats in the post. Youre famous. It didnt say erin sorkin. Its wrong anyway. I know. They just write about the endorsement. C ceos from more than 80 top u. S. Companies are urging congress it doesnt say tax increase. It says tax revenue increases and spending cuts to reduce the nations deficit. Because it would lower overall rates. This we keep mixing up the two things to make it almost sound like the ceos are in favor of raising on the top 2 . Theyre not. The Simpson Bowles lowers overall rates and raises tax revenue, it doesnt raise tax. It raises tax revenue by getting rid of the deductions. Without knowing whatever loopholes youre going to close, its hard it say who will wind up paying more. There will be more tax. Referee revenues but lowering all rates. Its whats in simpsonbowles. Youre missing the point. It ultimately raises effective tax rates. Thats what it does. For some people, but not for all. If youre paying 35 now and you dont have those, all wind up paying less. If you were paying across the board if you want to bring in more revenue, ultimately the average effective tax rate goes up. If you want to talk effective. Do the math. But it doesnt do it necessarily on the journ sal smaal is smart to say that it will reduce it with tax revenue increases. Goes to say if the average effective tax rate is going up, why wouldnt you just say that tax rates are effectively going up . Because youre con fwlating it with obamas plan to let the bush tax cuts expire on people in the top 2 . There are people that want to go back to i dont think theyre suggesting that there t. Tis about personal income. This is simpsonbowles. The ceos say they can succeed both financially you have to include comprehensive and progrowth tax reform which broadens the base. The entire base of people. Lowers tax rates, raises revenues and reduces the deficit. Because the left is jonesing for the clinton top marginal just so we can get back to that they walk a fine line and the campaigns obamas campaign has not agreed to cut entitlements. Romney campaign has not talked about higher taxes on obamas entire this walks you throughout middle of both. The 20 page thing that he wasnt going to release, that talks about nothing with entitlements. All talks about is raising taxes on the top 2 . We had bob shrum the other day once again with the talking points about back in the 90s im not trying to conflate it with clinton. All im suggesting is the average effective tax rate goes up, so i find it odd when everybody walks up and says we want to lower tax rate, raise revenue. And get rid 6 all tof all the because they dont get in trouble with grove ar norquist one other element whether theyre thinking about this as a supply side thing. When you dont get in to the details, you avoid all the arguments. But they are trying to find Common Ground in the middle and they dough do go with simpson plan. Its lowering marginal rates. I cant say it more clearly. Marginal rates. If you want to factor in all the deductions ultimately this is all going to be a fight over deductions. Thats the real battle. But all the plans include lowering marginal rates, not raising them back to your 39. 6. And i was not advocating that. You dont want to raise back to 39. 6 . I have said i would not be against that. I know you. Youre totally fooled as if everyone who comes on here and talks about the 90s without mentioning the internet bubble or the republican congress. We have a few stocks that well watch this morning. Zynga reported a Third Quarter loss that was expected. Struggling online game maker announced a 200 million stock buy back. The company also assigned its first real money gaming deal in the United Kingdom with bwinparty. Zynga will provide some poerk and casino titles with the games set to debut next year. The shares rose more than 13 after wednesday. And were watching the shares of visa booi iboosting its quarter dividend. Most corporations do not think theyll be paying more under reform. For jeff immelt to what it you pay last year in the u. S. . I dont know. You know what the wrap is on ge. So for jeff toed a met he might pay more ill get you the number. I think it was up to about 11 . So the point is it will be but his point was if you mad a territorial system there were big bills in other countries. But no one else has this territorial system. They want to get rid of the territorial system, as well. I think you look at a lot of companies and these are ceos who say even if we end up paying more, even if loopholes that we use are taken away, were okay with that because we need a more understandable tax system. This one wants to go back to the 50 and 60 percent marginal rates with all the deductions. It opens it up for the lobbyists to come looking for special interests. They find ways to get around it. You talk about back in the eisenhower years, the rich people werent paying anything. The only reason i even make the comment is because certain politicians will say, look, im going to lower tax rates, im going to get rid of the deductions and im doing that by the way because i believe it will spur growth in the country. Because it will release cash into the system. If you ultimately tell me that my effective tax rate goes up, it sdw doesnt necessarily mean there is more cash in the system. So there are two sides who say how well get higher revenue. And thats sort of the supply side side. And it depends on who is effected by it and whether people that are involved in creating wealth are the people that have more to invest in the private one thing is for sure. Its treated better in the private sector. Yesterday when rand paul was saying its a simple. A lot falls through the crack. Money is better left in our system here. In other systems around the world, they may do it differently, but in our system, its better left in the private sector where theres economy tigs and where you have to mind your ps and qs. Unlike the post office where it all falls through the tracks and nobody is accountable for anything. Sorry. There is a debate about that in certain parts of our government. Theres people who with a argue that in the medicare world it isnt not as far as fraud. Do you think medicare is something that we want to institutionalize for our entire Health Care System . Im not going to make the argument this morning. Im just suggesting that there are two views on this. P. If you want to get rid of all administrative costs in all businesses because it works better, lets just make everythingnationalized. Because everything has administrative costs. So theres no benefit to having competition from different im not arguing the point with you this morning. The only thing im suggesting there are two sides to this argument. If doing health care and getting rid of administrative costs is the way it to do it, why would any private sector business be better if you could get rid of administrative costs in all businesses . But he doesnt want to make the argument. Why make it for one and not the other . You make the argument for one side and doctor would you say health care is better if the go. Runs it you want to do the argument . We have to check the markets this morning. There is no argument. Dow futures up by about 60. S p 500 up by about 8. Green arrows across the board. Europe, youll see green arrows there, as well. A little more muted. Ftse up by about a quarter percent. The cac up by a half percent. Dax overnight, we saw mixed markets. Hang seng up by 346. The nikkei up by better than 1 . But the kospi and korea was down. You do see, wow, what happened to oil prices yesterday . I clearly wasnt paying enough attention. Oil prices are up 52 cents, but 86. 25 is where wti crude is. Ten year note, yields 1. 833 right now. And the dollar at this point is down against the euro and the swiss franc. Euro at 1. 30 almost on the nose. Dollar is up against the yen 80. 13. And gold prices up about 13 this morning. Time for the Global Markets report. Ross, good morning. Good to see you. Good morning to you. You said slim gains for european stocks. Advancers are outpacing decliners here by around 7 3. And you can see were near the best levels of the day. We have a spike where we have Third Quarter gdp came in stronger than expected. Another big earnings day here. Some of the key report, unilever up nearly 3 today. 5. 9 rise in underlying sales in the Third Quarter. That beat analyst forecasts. Strong demand for its goods in emerging markets. Wpp down 2. 6 today. Cutting its full year outlook for the second time in two months. Slow duone in in trading. Credit suisse up nearly 3 . Third quarter profit shrinking by more than a half. Daimler saying earnings will miss forecasts. Gilts are weak. Sterling is stronger. Ten year gilt rising in value. Consensus forecast was to be up 0. 6 . And the year was flat. Its the strongest quarterly growth in over five years for the uk. Helping it, all the ticket sales for the olympics. There was a bounce back as well from the jubilee. Plus services and production doing fairly well. But we are still over 3 break the total output in 2007. So we havent regained that. But a good number today for britain. Back to you. Thank you for that good number. Thank you, mr. Westgate. Coming up, will sandy be trick or treating up the east coast . Thats the question. And is halloween in jeopardy. The Weather Channel will track the storm next. Plus is it time to be bullish on china . Well check out some multinational names. And its an event many thought would never happen on squawk. And it is coming today. Squawk Box Office Hours with joe kernen. Mr. Kernen will be chatting right after the show, 9 00 a. M. Eastern, get on facebook asap. Squawk box coming back. Hurricane sandy picking up a little more steam overnight and the path could lead to the east coast by early next week. Just in time for halloween. Lets get the forecast from the Weather Channels al leex walla. What are the odds that it moves up the coast like this . Its not unlikely. Certainly something that were watching very, very closely. We dont know exactly where its going to hit, but the potential is certainly there anywhere from the midatlantic coast all the way up into the new england coast, as well. Sandy is impacting cuba right now. Sustained winds at 105 miles an hour. So its a category 2 hurricane moving to the north at 18 miles an hour. It made its landfall here second landfall actually in cuba late into the overnight showers. And you can see it has weakened a bit. Those deeper purples is indicating where we have some of the stronger winds as well as the intense rain. Those have disappeared a bit. So there was a slight weakening, but as it emerges back over the open waters, we could be talking about a strengthening here. Its a rather large system. Look at the clouds stretching all the way now even into south florida. So well watch these areas pick up in the rain and wind department. For today through the early weekend, effects will be felt here along the coast of florida with gusty winds and rain, waves will be penning up, and certainly the rip current risk will be high heading into the waters will not be recommended. So the projected path of sandy has we head through time, maintaining that category 2 status and then maybe weakening over the bahamas. Curving to the northeast, but then early week, heres the potential here from the midatlantic into the northeast. Watching it closely. Dont like to see that. Go away. And youre right, this is a repeat of last year. Every time i hear sandy, i think about the little in the spacesuit with the flower on her head from sponge bob. I think of grease. Sandy and danny. No, i dont at all. I have the grease album. I think of the little squirrel with the two teeth. Whats after sandy. Iits different every yea. Tony . Do you pick that next . Hey, tony. Next ones tone any. Okay. Global markets now theyre naming winter storms. With the crazy names. A thethenaathena, yeah. Al gore said every year would be like this after 2005, we went all the way through the regular alphabet. Went through 26 or whatever. Anyway, Global Markets are moving higher this morning. U. S. Futures are indicating a stronger opening following four days of losses out of the past five. And remember yesterday we had some more positive numbers. Looked lining we would rebound from that horrific monday. And by the time it was all said and done, we were down yesterday. Lets get the prospects for multinational he companies in this environment. Joining us is managing director of equity investments. Do you like big cap stocks to start with because of their stability and safety in. We do. We think big caps are going to be Great Companies to own and well didity verse filed high quality portfolios. One area that were focused on is china. We think thats going to become an increasingly hot topic over the next year. In a positive way. In a positive way. As we move through the transition of power in china, its going to be crucial for the new government to put the right reforms in place in order to accelerate growth. And if theyre successful in this, then china could be the final piece in a revival of Global Equities as u. S. Macro data remains strong, europe stabilizes, and we get through the fiscal cliff. And if tiaa, were what were trying to do is use any periods of volatility created bay these events in order to find the right names to own for the long term. So china as it transforms to a more domestic Consumption Society or as it gets its export back on track or both . Good its bo go its both. Export data came in better than expected and import was positive. So both happening in china and there are great names that you can own right now that are exposed to china for the long run in order to make like who . We like yum brands. Theyre based in the u. S. , but 45 of their profits come from china. And theyre experiencing really strong pricing in china in a period of low inflation which is allowing them to grow profits by over 15 . Theyre growing unit growth by 15 . So theyre well positioned to do well in china. Basically what water loere loor is companies with strong cash flow and profitability. Yum brands has a billion and a half in free cash which is a 5 free cash and 2 dividend yield. Any presence for taco bell over there . I think there is an opportunity for all of their brands. If you can get 2 billion people tasting a tack company, 80 of their profit would be from over there. Ok company, 80 of their profit would be from over there. You do have the currency problems, but basically you focus in on on companies that have their own edge so they can come well over time. So another company we like is lenovo. They have the number one market share in the pc business and number two market share in the smartphone industry. In pcs, theyre actually growing units at 10 and this is going to allow them to leverage mar n margins. And in the smartphone industry, that is growing over 50 for them. Do you have one more quickly . We also like samson nigite. People are just buying new all the time to get lighter and lighter suitcases . Increased Global Travel and theyre capitalcapitalizing. They have a strong Balance Sheet and making acquisitions to continue to leverage their presence overseas. Ive been shocked with some of their numbers. Saira, thank you. When we come back, would apple could be telling investors after the bell today. Well get a preview of the big report and how the new products that theyve been shipping out will be impacting the Fourth Quarter. And sammy hagar has found success on and off the stage. I had a chance to catch kaccatc ohio to talk business. Hes made more money in his Business Ventures than he has with all of his bands combined. That interview coming up. And take a look at yesterdays winner and losers. If we want to improve our schools. What should we invest in . Maybe New Buildings . What about updated equipment . They can help, but recent research shows. Nothing transforms schools like investing in advanced teacher education. Lets build a strong foundation. Lets invest in our teachers so they can inspire our students. Lets solve this. Oh, hey alex. Just picking up some, brochures, posters copies of my acceptance speech. Great its always good to have a backup plan, in case i get hit by a meteor. Wow, your hair looks great. Didnt realize they did photoshop here. Hey, good call on those mugs. Cant let em see what youre drinking. You know, im glad were both running a nice, clean race. No need to get nasty. Heres your honk if you had an affair with taylor yard sign. Looks good. [ male announcer ] fedex office. Now sa