Stocks soaring yesterday on all of this news about a potential deal out of washington. Yesterday, the market was up by better than 2 . A gain of 323 points for the dow. Thats one of the best market days all year. The futures this morning after that big rally are actually, believe it or not, indicated slightly higher. Barely up there, but you did see a downturn earlier in the futures that turned around after it looked like a deal was at least a very good possibility. As for the publics opinion on the whole situation, americans are saying fire them all. Theres a new nbc news wall street journal poll that finds the majority wants to toss out the entire congress. Just 14 say the nation is headed in the right direction. Thats about 0. 5 of who felt that way just a month ago. 78 call the country on the wrong track. That tells you a little bit about how bad things got in the last couple of weeks and that might tell you why the two sides sound more willing to negotiate. John harwood is going to join us with more in just a few minutes. But now, andrew, over to you. Thank you, becky. For all the people that want to throw everybody out, i imagine in a couple of years they wont throw everybody out. Jpmorgan and wells fargo, jpms numbers expected to hit the tape about 7 00 a. M. Eastern time. Well bring them to you here on squawk. Analysts are looking for a share of revenues at 1. 79 aboutel. And were going to have a preview from a banking analyst at 6 15 eastern time. Conference calls on both of these earnings are going to be what everybody is going to Pay Attention to, including whatever settlement on the jpm side we get or get close to. Joe. This poll will have harwood on. I saw brian talk about it last night and then release the numbers. Also saw costellos report. Did you see that . I saw that. On the first week of trying to sign up. There are literally places where they went over it and thousands and like one person. I was listening to an npr report. It was a pretty scathing report on how things i dont know whether theyre trying to help, you know, light a fire under the administrations butt or whatever it was, but it was very negative. Because the clock was ticking. People who are expecting to bfr covered by january 1st, this clock is ticking. The numbers do show republicans getting more of the blame, but the numbers are bad for everyone involved. This is the one i got that the headline was ask about the current budget battle and they emphasized 70 said republicans in congress are putting their political agenda ahead of whats good for the country. Right. How about the president . What percent . I dont know. 51 . A majority of people asked think that the president is putting his political agenda ahead of whats good for the country. 51 is not a good number, is it . You can win an election. A lot of numbers are still kind of representation of that same election, the numbers that were there. 51 is the number that or 52 is the number that you win. I wonder how quickly Public Opinions change if it looks like the government is reopened, if they sit down and talk. Obviously, the markets have huge sold will i i think theyll be just as unhappy. But no one has switched Party Affiliations based on the latest correct. And its still 52 48. If youre a republican and sits around and goes, you know what . I hate these guys so much, all of a sudden i love the democrats. And if youre a democrat, even if youre frustrated with how you think theyre approaching it, you dont say, well, actually, i have to tell you i love ted krooudz now because you just dont. You would think but they dont even well, independents might be swayed by it. But if youre an independent and 31 of them blame obama and 54 bers blame congress, if the independents come down, maybe a few more right. But then there are still going to be people everybody is holding their nose on this. But there will be still people who look, some are more fiscally conservative and they can see some merit they just dont lie how this was done . You tell me, i think most of the establishment in terms of the republicans, whether its the same betters or others are upset. Most of the what . Most of the establishment of the Republican Party but another one norbert said he was mad at ted cruz. Theres solidarity on the left and on the right. The republicans want something and the democrats want something. Ross westgate probably will talk about the rutgers outcome. Was that big in london, the rutgers louisville game, ross . That was huge, as you know, ross. Royal blue. And the giants, 06 of. Yes. I dont know, was it detroit or oakland . I dont even know. Those are the only two games i know. Detroit won. Theres a third. Theyre going to host a third game now, a third regular season game in london next year. Youre going to get a team. Ive seen them Start Talking about theres so much of it is on tv, anyway, and since you people are coming around to what the real football what football actually is. Would you rather watch a nothing to nothing soccer game or a 5148 Football Game . We have action in our sports, ross. Yeah, but it takes so long to play. How long do you have to be in a stadium to watch an nfl game . Youre drinking beer and having hot dogs. What, do you want to get in and out . Do you want a 15minute game . 60 minutes of action spread out over hours. Ross, these games start on over here, we start in the parking lot at 6 00 a. M. With beer. And brats. Well, theres nothing wrong with that we job pe. I knew id get you on that. Its more akin to rugby. Lets mott worry about the sport. Lets just stay in the parking lot. Here we are, were three hours into the trading day, joe. 63, advancers jourt pacing declineser. 92 points higher. Not quite as big of a move as we saw stateside. And today, weve had some gains. Not fwig moves, around 0. 7 today. Xetra dax up 0. 7 . Kwet ra dax up 0. 3 . Cac 40 up 0. 1 . Ftse mi byup 0. 18 bers. Banks up around 0. 6 . Financial services are stronger. Youve got health care up along with basic resources. A little weaker in telecoms and utilities. Well see what happens with the dollar and the commodity prices, as well. One company that is in big focus today is royal mail. Yes, the British Government told a 52 stake in the royal mail, which is its main delivery post in this country. And the issue price was 330, up 35 on the open. Currently trading at 4 pounds 39. Investors couldnt get enough of this. 800. 20 times. Its the conditional trading at the moment. But big, big interests in getting a slice of that. And the government is taking about 1. 7 been pounds out of that po pay down their debt. Would did have an auction out of italy. Italian yields, 4. 29 . We saw the lowest yields there since may and on the 15year, the lowest level since february, as well. Its a pretty good demand for per r per r perrefereeal debt out of europe. John, the latest poll numbers show why the two sides may be willing to talk to each other. Well, no, they showed why republicans are giving in on their position. This is a poll that shows its bad for everybody, bad for the economy, bad for the public mood, but its worse for republicans and a lot worse. I saw this was the lowest marks in the history of journal polling. If you look at what happens, like big picture, president obamas Approval Rating actually went up since the crisis began. Support for funding obama care went up. Republicans have the lowest Approval Rating in the history of the wall street journal poll. Republicans are under water by 20 points in terms of evaluations of their performance. And excuse me, guys, i have a cold. When you ask about whos to blame, by 53 to 31, the American Public says that republicans in Congress Rather than president obama are to blame. During the Clinton Gingrich standoff in 1995, the proportion of americans who blame republicans never got to 50 . Youre kidding me. Its over 50 . Didnt gingrich lose his speakers . Didnt he have to step down from the speakership after that . It was a couple years later. Yes, he did. On every measure, it shows impact for everybody, but its a lot worse for republicans. You know, john, the way that theyre going about trying to achieve their end is probably what youre talking about there. But i bet you ask it in a way that this looks at what the underlying arguments are about. And ill bet you theyre not nearly as polar. But it didnt help their cause. But theres a lot of people that we want to get started on dealing with these unfunded you happen, these unfunded promises that we made. Sure. But all im saying is the country is still split on whether we should be pieg more money from china to spend on infrastructure or whether we should start looking at handling entitlements and everything else. Bill mcenturf, the republican pollster said basically the result of this episode has been a political boomerang for republicans. That is the proportion who want to defund obama care has gone down. The ones who want to fund it has gone up. And in a question that we ask consistently a question. Is government doing too much or should government do more . The proportion of people who say government should do more has gone up since this happened. Its now 52 say government should do more. 44 say it just means stay open. Its 47 says stay shut, 53 says stay open. And one of the reasons that this is worse for the republicans in congress than it was for gingrich in 1995 is that in 1995, gingrich and clinton passed a bunch of spending bills, so the shutdown was partial. This is a circumstance where even though some exceptions have been made, no spending bill has been passed. It is a broader shutdown with more impact. So when you ask people, have you and your family been affected by the federal shutdown . In 1995, the note that we got over a couple of months was 18 . The number in this poll, 31 . John, people are feeling it and they dont like it. What i dont understand and maybe i dont get it, what is possibly going to happen over the next month or two months . What are the three things again . Poly anna, ignorant, naive, whatever, im all of those things. When you say well negotiate over these things, they wanted to negotiate over these things the whole time. Im not sure what the big deal is here. The democrats have been willing to negotiate, republicans have not wanted to. Im not sure thats true. I think republicans wanted to negotiate over tax reforms, too. No. No. Both sides have wanted to do this. Nobody has ever got it to the table. No, no, andrew, youre not paying attention. The republicans made a demand. They said were not going to pay you, senate, unless you pass the budget. The Senate Passed a budget. They asked to go to conference with the house and have a negotiation. The house was unwilling to go to the conference. And the reason that theyve been unwilling to go to the conference all year is that under the rules of conferences, republicans were worried that the outcome of the conference was not going to be what they wanted. So they resisted. Yeah. They didnt feel like they have enough leverage in conference, right . Yeah. If you go to conference and the conference doesnt wrap up in a certain period of time you go with the senate, right . You lose the ability on the house floor to control what goes to the floor. So they have been resisting having a conference. And the reason, why have they been resisting having a conference . Because they thought they were going to lose. Well, yes, but theres a more specific reason than that. Their strategy has been to squeeze very much the domestic the discretionary parts of the budget, which are not the longterm budget problems. Theyve gotten to the end of the road on that strategy. In fact, they cut those so much that when they put their own Appropriations Bills on the house floor to try to pass them, they couldnt pass them because not enough republicans thought there was enough spending in those bills. So if you then go to entitlements, which is where the real problem is, guess what . Thats not very popular. Thats medicare and Social Security. That is so theyre not pushing that discussion. That has been paul ryans point for a long time and thats what he anged earlier this week in an oped. That kind of gets you back to that position. But both sides are looking for the way that they can get the most out of it. On andrews underlying question, becky, ive also been a polyanna. I totally have been someone who looks at the potential grand bargain and says thats obviously in the interest of the country, they need to do it. But it is difficult because if you go big, if you go after medicare and Social Security in a serious way, democrats are going to insist on tax revenues. Well, if the republicans say no to tax revenues, you cant have a grand bargain. So what paul ryan has been talking about is a down payment bargain, something smaller. Now, thats not going to be the easiest they can get it, which they should be able to get it, a rational negotiating strategy should be able to produce that. It will be lesser entitlement reduction and no tax revenue or maybe some user fees or things that, you know, are kind of quasi revenue. That is what could happen in a deal. But thats where were different, john. And i think thats how we see the world differently is if you add in the obama care taxes and the tax hike that the democrats got last year, you add all that in, to a lot of people with how much government has grown just in general in the last 10 or 20 years in terms of, you know, how much it actually is doing, it seems much more reasonable to some people that we should just handle our entitlements and not even be talking about more revenue at all because youve got your revenue. Yes, thats the philosophic difference. Ive heard a lot of people say democrats are the ones who are unreasonable by not be willing to take on entitle manies without troog to go back to the revenue well where you and probably others would say, its not an unreasonable demand. They keep calling it a balanced plan. And that means theyre going to raise more revenue and were going to be at 60 or 65 marginal rates with state taxes and everything else. Joe, you are right there the. You just put your finger on the nub of it. But then it requires you to make a choice. I know that. If youre concerned about the size of government, the safety net or the size of the debt. The safety net is for the people that truly need it, it should be really big. And then for other people that maybe, you know, i dont know, it seems like we dont you know, europe has a different system. Theres a safety net for people all the way up to probably the 90 of the people. And that takes away, you know, the ability to earn your own success. Extreme positives. What youve just outlined, joe, is the precisely the nub of the problem. And its the reason why we havent been able to get a deal. Its because the people on the right and the people on the left, they both have a lot of clout sxp the people on the right, their concern is not really the deficit and longterm debt. It is the size of government. And the problem is, the people who believe in the size of government that we have is large enough to prevent them from reducing the size. If they decided to focus on the debt and deficit, they could come to even republicans, recipients of medicare love their medicare. I understand all the ironies and the incongrewties of i dont know what were going to do. I plan on living forever. I dont know, its going to get more and more expensive. How about for you guys on the panel . Whats more important, debt and deficits or size of government . I think they go hand in hand. No, but theyre different issues because if the issue is debt and deficit, then you say, okay, revenues and options and i can make a deal with democrats. If you say its the size of government, then you say forget about it. No more revenue. Thats in the way of fund. If the government can work like i dont think it can. If the government can work with the private sector with accountability and people having to report to someone to keep i mean, look at the way this thing has rolled out. We are giving our producers heart attacks. Yeah, we are. Thank you, john. We are going to move on and have a quick conversation about jpmorgan and wells fargo, which are kicking off their earnings for the Financial Sector later on this morning. Here to talk about winners and losers and what he sees ahead, eric wastrom from sun trust. How are you . Good morning. How are you . Help us with this. Were going to get jpmorgan at 7 00 and wells fargo right after that. We know i think everyone has a sense of what the numbers are going to look like, but maybe you could shed light on that. But everyone i think is waiting for the Conference Call and what ultimately we hear about this settlement. Is that going to be the big news today . Well, i think youre right in that its certainly what the market is hoping for. Although i dont know if jpmorgans management is really prepared to speak about it. Obviously, its a particularly sensitive topic. I mean, it looks like from the media reports we were headed for. Kind of resolution, but it seems like those conversations have been suspended with the Government Shutdown and the doj currently current staff obviously not functioning. Let me read you something that dick bove just row. He said the predominant view of jpmorgan is once the bank makes a large settlement, all activity returns to normal and the bank returns to 20 billion net. He says while ive not adjusted my earnings estimate yet, i do not share this view. I believe the shortterm earns of the have been can be affected by the changes being forced on the company. Is that the rye or whong . Im not sure if i agree or not here. What weve seen with the volcker road rule and some of the other models, the Business Model has change. So i think i end up agree, dick that the outlook for jm morgan and its peers is that the future is not particularly like the recent past. And when we look at this quarter, total revenue is expected around 23. 4 billion. Whats your number . My number is ahead of that. On the whole nod of a fikly strong quarter, but i vary from the consensus on a few different items. And when you look at out after this quarter, is this a flip or do you think it gets better or worse from here . Well, you know, i think the conversation that you just had poses one of the major questions, which is what is the macro back drop heading into the Fourth Quarter into early next year . I think our view was that, you know, the 2014 was not going to be a fan ft take year for the macro economy, but it should be stable. Obviously to the extent that these