Transcripts For CNBC Squawk Box 20140905 : vimarsana.com

Economy likely added 225,000 jobs last month. That would mark the second straight month payrolls increased by 225,000. We havent seen a stretch that long since 1997. The Unemployment Rate expected to slip to 6. 11 . Futures ahead of those numbers and, of course, things can change dramatically in the morning. But right now, we have some red arrows with the dow, it opened down about 41. 5 points. The s p 500 would open off about 6. 5 points and the nasdaq would open off about 9. 5 points. Again, we will those numbers doing a lot. Almost like a discount before we get to 9 30. There you have it. You know, i see things that were looking forhe the brothel, its in usa today, this just in, brothel owner helped seal nevadas tesla deal. Lance gillman is the owner of the famous Mustang Ranch brothel. You thought that was a ford dealership, right . No . I was just asking if they had you know, yesterday you said nevada so well. Nevada. Did you check . I had to practice. For somebody because i like to say nevada. For some reason, new yorkers, when they say nevada, they said more just more nevada. And out there, its nevada. I have to say, i always its nevada. Dont be pretentious for once. I did a show out there from los angeles. I asked around. There were a couple people who said nevada. Of course. Does this work . Yeah. Really . We love him, but beautiful, pretty in blue. Pretty in pink, pretty in blue. In corporate news, apple is add accounting stricter security measures. Why . Does this fly counter to everything . No. All right. Its a goal of keeping hackers out of your account, comes in the wake of last weekends celebrity photo scandal. In an interview with the wall street journal, apples ceo tim cook says the company will alert users when someone tries to change a pats password or restore icloud data to a new budget. It seems to me if theres absolutely zero culpability for apple itself, then why are they worried about well, because there are always things you can do better. Okay. Shouldnt they have done these things before it happened, then . Perhaps. I dont even have a beef with apple or tim cook. Im just giving you grief because you defended them i did, i defended them. They went all crazy with the pr, that this wasnt us, now here is what were doing, but i give you credit for this. When did you oh, yeah. When you get into this . Wow. Im not in the stock. I want to see what the iwatch looks like. Now theres reports that its really going to show up. You do know this is the same company that raised higher taxes. I do. How does that escape your wrath . Im not happy about that. Positively in america. Thanks, allen. Apple isnt the only was it him . Was it allen . No. Andy silvris. Apple isnt the only company dealing with Cyber Security issues. The journal reported a hacker broke into the healthcare. Gov website in july. No reports that users personal data was stolen. Also, the government wants to declare metlife systemically important. The insurer is said to be exploring ways to try and fight the governments proposal. That label is used to ive Companies Whose failures could pose a potential threat to Financial Markets overall. Prudential financial and iag have already received that designation and its obviously one that any company is trying to avoid. Did you see this . And i didnt understand this. I understand why the company would be against this and i think its actually reasons why the company may be right. Gu guggenheim security saying despite the possibility of this happening, we think this is a longterm positive for metlife because we expect the government to the rules rather than subject metlife to banklike capital firms and customers would prefer to do government with abdomen an insurer that the government said is too big too fail. I wonder if that is the case. Would you decide that you want to do with that institution as opposed to one or the other . If there is a separation between them, i might. Id want to be sure, if there is a claim, if theres a lot of claims that come in at the same time, im going to get my money back. As andrew was mentioning, the futures are indicated lower, at least at this point this morning. Right now, the dow futures down by about 43 the points. Of course, yesterday we did see the s p and the dow both hit record highs interdate before they retreated. The down was down about 8 points. The s p off about 3 points. This is the first weekly decline in five weeks the major averages are on pace for at this point. If youve been taking a look at oil prices, at this point, oil up by about 49 cents. 94. 94. Wti is still below 95. Hard to believe with all the turmoil weve seen in the middle east. Lets take a look at whats been happening with the tenyear note. Treasuries, the yield pushed higher to just under 2. 45 . The dollar at least at this point looks like it is down against the euro, down against the yen, down against the pound. The euro is trading below 1. 30. 1. 2956 after the big move you heard from the ecb yesterday, taking on these additional measures. That immediately put additional pressure on the euro. You see thatten continuing at least still below 1. 30. Theyve tried, theyve tried to get the euro more competitive. Yellen and the fed here keeps making it impossible by staying easy for way too long. Maybe theyll were going to talk europe and i was surprised, it was my i thought i contended yesterday that europe would be scared by what they did and that we would like it because were easing and they have down in europe and and if you think about it, were done offer here. Were on the other side of all this stuff. So our markets know that. Over there, theyre on the front side of all this easing money. So if its just a simple usually its the opposite of what but if the following is but its the most important way of looking at it. Theyre entering into an easing money phase. Were coming out of it. We think were on the end of it. Theres worry that theres something really on the end of it. Well get more numbers today with the jobs number at 8 30. Take a look. Seema is still there. Still here. Shell do anything to get on squawk box. Thats not necessary. Anyway, no reason for you to do that. You could come off an angle. But anyway this is better b right . We have the global coverage. As you guys were mentioning, European Markets, the speculation of a ceasefire between ukraine and russia as well as that ecb rate cut decision. Feeling pressure over the last few days, but profit taking. Weve got to take a look at the markets, getting a lift on hopes of a resolution between pro russian separatistes and ukraine. Keep an eye on the russian markets. Guys, traders are talking about, as you were just pointing out, i was at a dinner with mayfair. No one was talking about mario draghi. The focus is the impact of the euro dollar trade. After the ecb rate cut decision, currently trading below 1. 30. Why do we care . A weaker euro is not good for Multi National businesses as it makes their products and Services Less competitive. Some of the big names that have high exposure to europe include mcdonalds, priceline and all trading lower. Lastly, we want to highlight a big mover on this side of the pond and that is bp after a u. S. Judge ruled they were to blame for the Largest Oil Spill in u. S. History. Today, coming back, trading at 4600. Thank you, seema. I have to look at a different camera. No one told me about this. We are you guys ahead to do this yet . Once in a while. Making her squawk debut, well start out calling this person karen paulstone. Can you stick with us for a while . All right. Our you know, put au orias. Sometimes the pronunciation is tougher than if they just wrote it down. This is res asset management. The ceo. Oh, man. Hooked on phonics, he need all of it. You start. It was easier when it was fidelity. Phid the upside down el. Whats your number today . I think anything over 200,000 is great. 220 is wonderful. What i think is most very important is that we start to see some wage growth as well as jobs growth because wages have been so staggering for the past couple of years. And retirees on fixed income and relying on Interest Rates, theyre purchasing power is going down. We live in a consumer economy. It would be great if we get we had a you know, a mouthpiece for the administration on yesterday actually talking about how there is wait a second. Who did you just call a mouthpiece . Its not me. Anyway, i like dean, but he is theres so much black. They want us with the spigots open forever, so theyre going to argue there is total flack in the workforce so were not going to get knit wage growth as long as theres slack. Well, there are pockets. I agree. I think that there are you cant even find people without paying them more, right . That would be good, though, right . Right. This means that the fed connects it, right . I think its good for everyone. You see what im saying . Is there slack or not . I think there is a lot less slack than the fed believes. Although i have to say, all of this discussion about how much slack there is, i mean, obviously, at jackson hole, we spent all this time talking about the longterm unemployed or involuntary parttime workers, lets face it, if we were i keep saying to people, if we were trying to debate if they should be 2 1 2 or 3 1 2 or 4 1 2, slightly accommodative, slightly restrictive, this kind of fine tune it exactly how much slack there is would be important. We are hundreds of basis points below the neutral level. At zero i mean, i dont know exactly how much slack there is, but i know that there isnt enough slack to be, in my opinion, justified still sitting at zero Interest Rates. And you mentioned flavors. What about why are all the states pension plans, why is everybody having trouble about meeting their targets. So, you know, thats the flip side of trying to get asset valued higher. You dont want to take any risks. If you were the guy managing the massive pension fund right now and should we be moving into that. Whether it is the other parts of this, of the credit markets that look very overheated. I would say, the concern about part of the problem with business, the one linger g lingering, i think, uncertainty is that what happens when the fed actually starts raising Interest Rates because the fed is going to keep telling us we have to be we need to provide support. So i think what we talked about, fiscal uncertainty has been reduced. I think theres greater composite about the economy. The one thing thats still out there is what happened when the fed starts raising Interest Rates. In a way, i think if we get off zee rob, get the process started and we all say how many board room conversations do you think right now there are boards sitting there saying, you know what . I think Interest Rates are going to jump. We should do something now or this is whag goes to happening. Do you think that is the thought process . We may be having that conversation. Im not sure if theyre having that conversation. I think there is some concern that things are doing well, but what happens when the fed starts raising Interest Rates . I guess all im saying is theres a lot of concern about this moving process and in a way just getting it going, while people are worried about that may ultimately the yields are worse. Right. And they actually do. So do you think this europe is easing or tightening and yellen will will the euro continue to fall because we make good on our promises . Well, i think inflation needs some help and growth sitting there is were starting to see growth in the u. S. Manufacturing is doing better. There is improvement. I think the same is probably true in europe. Were missing right now the situation where when the s p opens that 19 the 8 is exactly three times where it was since 2009. Its tripled during that pertd which has been an amazing thing. And it shows that there are buyers b there have been buyers of our market, there have been buyers of the European Market over the past year, starting to come back to reflect something thats improving. But its a slow process in part because, as you said, unemployment has become so structurally embedded. Michelle, is your office down here . No. Were up in stafford. So coming here is easier, harder . It may be easier because ill be heading out of the city. Ill mark you down. I dont know. Ive got a lot of people who get up an hour earlier. Who wouldnt be very happy. You havent been out there . I have once. Better . Better. Okay. Lets tell you about a truly sad moment in the entertainment world. Losing another legend, comedian joan rivers passing away at the age of 81 years old. She got her big break on the tonight show with johnny carson. She was a member of the comcast family. She was the host of fashion police. She recently suffered a heart attack during a medical procedure. She was on life support for a week. New York Health Officials are now investigating the center where rivers recently underwent surgery. It was called yorkville endoscopic something or other. I read it yet. Then she went to mt. Sinai. Her faim family praised the treatment she got at mt. Sinai. Whatever happens, i think there are you know, its a very simple procedure, really. It was an endoscopic procedure. She was on when i did that with the apprentice, the judge, she was one of the contestants. She was very sweet in person. I met her once out at we were both out and she was there. We were out and staying in a hotel. She was very nice in person. Anyway, we wish her family all the best. When we come back on squawk box this morning, elon musk setting up shop in the desert. Details of teslas giga factory coming after this. Stick around. Well be right back. Ing deeply ] [ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath. [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. Now we invite smokers to quit, too, with our comprehensive program. We just want to help everyone, everywhere, breathe a little easier. Introducing cvs health. Because health is everything. Tax inversion. This is made up of ceos that made over 1 million in capitalization. Over 70 of them said tax inversion are good for shareholders. Nearly 60 said Companies Using tactics like this are not acting in an unpatriotic way. 82 believe their firm is not being taxed fairley in the United States. For more on all of this on our global cfo council, go to cfocouncil. Cnbc. Com. Im surprised that it would be 40 who would think that it was. You talk to individuals, and i wont mention any names, we talk to individual ceos about their individual situations and theyre furious and livid and theyre very plain spoken and they say its a billion dollars more for me here. Now, when im compete, a company that says the same thing abroad, and they have a billion dollars extra to spend on research or whatever it is that theyre spending it on, how is it that the roads here are better than the roads in switzerland . How is it that the college tell me how, when the president you get to use all of stuff here, which by the way taxpayers paid for, the government didnt pay for that, theyre im not going to argue about however, listen, we can change the law oh, good, thats big of you to admit that. However, clearly, a drug company, for example, like novartis i am making this up. If they are going to sell to markets in this country, there are benefits. We do all sorts of things that other countries just dont do. Medicare and medicaid with no price control. It shouldnt be price controls. Thats my point is, there are benefits that the Foreign Companies are getting and frankly that but the Foreign Companies are and thats why we should change the laws. But my point is they can do just as well. But in those other countries, those guys are paying much higher personal taxes. Which is the way we will solve it here. And by the way, in some cases, not Corporate Taxes, but locally. Youll see sandy everyone goes to zero. So if youre crying to save 20 billion over ten years instead of bringing back 2 trillion right now and not having a capital outflow. And a bigger problem, i think, is that it makes American Companies more attractive to foreign personnel. And thats true. So it could come in and acquire that makes more capital. It doesnt cost anyone. But one thing we always forget in this conversation, and then we have to get to the next topic, one of the reasons the capital fight gets tougher is because they look around and go where is the real growth . Not necessarily here, in all fairness. There are other countries where theres going to be more growth. And i would anterior more. They also if he does anything else. Labor is cheaper. They build it over there and they dont like theres all kinds of solutions. We shouldnt be greasing the skids to make it happen and make it happen more quickly and make it part of the reason someone does that. We dont think private sector in the white house. They dont. They think redistribution. They think government is the answer. They dont think private sector. Thats the problem. To this day. We are going to move on to darchbt topic, your favorite topic that involves tesla, it might involve brothels, joe. And also nevada. Elon musk unveiling details of teslas gig da factory deal with nevada and phil lebeau joins us now from carson city. Good morning to you, phil. Good morning, andrew. Theres a debate today about how much nevada is paying to land the giga factory. Theres no doubt this is a huge factory. It is coming at a cost and a lot of people are saying is it too much . Here is the announcement that came late here in nevada. Tesla will be building its giga factory, its a 5 billion project. It will be located just outside of reason yo. What will they be getting . 6,500 jobs when the plant is up and running. The estimated economic benefit according to nevada, backside 40 billion directly. Indirectly, another 60 billion. Theyre saying 100 billion. In exchange, the nevada state is giving incentives, tax abatements, etcetera, at between 675 million and 1. 1 billion, adding a few other benefits and its probably coming out closer to 1. 25 billion. Tesla says that money is critical to getting things up and going to the giga factory. It will be 3,000 jobs immediately. We went out to the site yesterday. Theyre already moving ground out there, getting things prepared for the giga factory. They expect the plant to open by 2017, possibly by late 2016. Elon musk, last night, told me this is not the richest offer from the five states bidding on the giga factory, but it was the one that had the best opportunity for tesla to get up and running immediately. It was the biggest single factory with time participation. Because less the giga factory is ready when we need to produce the mass market Affordable Electric car, then the Vehicle Factory will be time execution is extremely important. Nevada was in the lead on thats the number one in terms of time execution. We also talk to elon musk about the companys latest specations, at least those that are coming from wall street. They havent changed their guidance, by the way. He says he sees stronger demand in the market and i talked to a few other people in tesla would say when you look at china, youre really seeing the Strong Demand there. But when you look at shares of tesla right now, we talked about this, there have been price targets moving higher and higher with this stock. And we asked elon musk, are smars of tesla overpriced right now . I think sometimes people get carried away with our stock, honestly. Because thats i think the price is kind of right now, to be totally honest. But look at it this way. If you care about the longterm of tesla, i think the stock is a good price. If you look at the shortterm, its mixed. He told me he believes tesla will exceed spec agexpectations longterm. The giga factory, theyre moving the ground outside of reno and they expect that plant to be up and running by late 2016 and early 2017. Guys, back to you. We know exactly where it is. Have you heard the name lance gillman, yes or no . Oh, yes. Ive been listening to you guys. Were going to talk about that in chairs. Hes a giant, a giant in the brothel industry and its his Industrial Park. Coming up, how investors should read todays jobs report. Plus, the shark tank comes to the squawk tang. This time hes bringing along a 12yearold success story. The boy wonder of bow ties. Do you hear that, andrew . I looked for a bow tie this morning. I was contemplating wearing one myself. More squawk. Good morning. Welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and andrew ross sorkin. We are coming to you live, as we did yesterday. I had a map i would say it is pretty close to the heart. I dont know if it was an actual organ of new york city, but if you look at sixth and a heart organ. I know. I dont think you do. Im not even going to think about how your mind well, i dont know how your mind works. But sixth and 50th, can you met how were close to your parents. It is. So would it be a heart or a liver or a spleen or it is the brain. Its the brain of the brain of the financials. It is. And theres a starbucks everywhere, just about every corner, is there not . And sellers got the message, were spending the day in the big apple. The coffee chain announcing two new types of stores today. Here in new york, its testing an express location that goal is offering speedier services, which is not seedy and starbucks is not really synonymous at this point. Depending on what you order. Depending on what you order. Skim iced latte. And i told them, i resent you for me saying thats not available as a quickie no. But i resent him for eeg putting that into my lexicon and make me feel like a yuppie. Anyway, well have a limited food and beverage menu. Digital ordering will speed up delivery. In seattle, starbucks is assessing a new type of store aimed at satisfying demand for upscale service upscale . The company is going to open a 15,000 square foot roastry. Come on. Youre thinking thats attractive. Thats the opposite of a speedy yeah. And its in a hipster seattle grungy probably neighborhood. You think im too yuppie for the grande it is leaning. Nirvana . Yeah. We are less than two hours away from the allimportant jobs report. So how big will this number be for the markets . Joining us right now is peter, chief market analyst for the lindsay group. Hes a cnbc contributor. Thanks for being here today. Thanks for having me. I feel the level of energy here. You do, dont you . I do. We are about two hours away from this number. Do you think the market is more prepared for an up side price or a downside mess . Up side surprise. I think well have to look at the internals, the wage growth and Unemployment Rate. Obviously, everything that happens today is going to tie back into the fed. Interestingly enough going into this number, the twoyear low is at a threeyear high. So the bond market continues to move towards the fed having to raise rates. And its not easy to confirm than the. If we are, in fact, seeing the fed to the point where theyre going to be forced to raise rates, and the ecb is starting its version almost of quantitative easing, that is what i think, too. These are extreme measures and they are getting into something that we are now hoping that were getting out of. The treasuries, what does it mean for our stock market . Well, i would say if you build it, will they leave . Counter to that, if the central bankers are now all in and trying to generation inflation . Interest rates may start to rise. And weve reached a point where rather than central bankers being happy with this decline in Interest Rates, they want to cause Interest Rates to go up by higher inflation. It doesnt make much sense to me for higher inflation if higher Interest Rates fall. Because what is the western world suffering from . Its too much debt. Were going the crash this own party. So if its very possible we saw the bottom in Interest Rates, not in the u. S. , but in europe, also. This is an epic bubble that we may have seen the end of. So i dont know who was on yesterday who made the point that draghi wants to be ben bernanke in many regards. So the question i have is right now ben bernanke looks like a very smart guy where we are. How is history going to look at bernanke i think in hollywood the same way as mario draghi. Greenspans book was not fully written. Greenspan, yellen, they all come from the same school, thinking the fed and ecb central bankser have that magic power to somehow make things better. But the medicine theyre throwing at things isnt right for what ails us. And theyre never learning their lesson. When you have too much debt, lowering the cost of money is not going to matter. Theres a debate about that. Theyre all good intentions. Well, do i think an average spaniard wants higher inflation . If you look at the inflation situation in europe, core inflation at 0. 9 in august, its been pretty flat for the last user. Its because energy and food prices have fallen, that has driven lower the rate of change in inflation. 10 . Yesterday he said the bond market is done. That was to my point that the central bankers are now all in and generating higher inflation. Interest rates with too much debt, and thats a bad combination. Peter, thanks so much. Coming up, bow ties, the boy wonder entering the shark tank and he lives to tell that tale. Thats next. Squawk box live from new york city. We return in just a moment. [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage, or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Its a powerful reflection of validayour drive to succeed. Nts. So, forget the gold watch; grab the brass ring. You dont need anyone to tell you that success is yours, because youre busy. Seizing it. Drafting it. Tuning it. Making it. The new 2015 cadillac ats. Welcome back to squawk box. The founder of mos bows, hes been featured everyone prosecute vogue to chicu magazine. His mentor is daymong john, founder and ceo of pleasant brands and costar of shark tank. Good morning to you guys. Good morning. Lets show off your ties. Youre 12 years owl old now . Yes, im 12 years old. And you got this business going and this guy has been helping you . Yes. Hes been a great help. And you, by the way, you turned down money inspect. I turned down money to get to day mond. Tell us what happened. Mr. Wonderful gave me an offer that i would pay him for three ties 3 a tie. 3 a tie . I was a normal, you know, royalty and perpetuity while he had his you know, his teeth in mos neck. So it was a normal offer. And so hold on, when somebody like that, a big name offers you money, you say no. How hard was that . It wasnt a hard decides because i know daymond is in the category that i am and i knew that he could help me. And in terms of growing this business, youre wearing one of his ties. Yeah. Where is this going . Tell us what happens. First of all, mo, knowing a little bit more about fashion than probably i do, he realized that accessories are the things that are still selling and he wanted to stay really focused in this one area. Mo, i think, is going to do about 200,000 from airing on the show, but weve already now talked to big fashion houses such as randall core 20,000 ties . 200,000 in ties. Hes just warming up. Youre 12 years old. When did you have time to do this . I had time to do this when i mean, as youre starting to see, i can do it when i feel like it and are there employees to this company . Yes, i have employees. How old r employees . Well, my grandmother is about, like, 80 and my mom works for me and i have three more. Do you need a resume . How did you come up with this idea when you were 9 years old, mo . I came up with this idea because i really love to dress nice and i couldnt find any other bow ties that i really like. So i asked my grandmother to teach me how to sew. After that, would have been on shark tank and many more publications. Daymond, how did you find mo . And was it an instant attraction . It was an instant attraction. It was really on shark tank. We dont know anybody going on the show. He was so adorable, but he had that star power. He was laser focused on what he wanted to do. After that, i just wanted to work with him. And i realized if he were to give away half his company for 30,000, today if that was my business, that would have been 100 million in somebodys pocket and his mother and him remind me of my mother and i. Mo, are you a businessman or are you do you pick out the designs and the fabric or do you have someone that does that for you and you handle the business end of it . Well, i pick up the designs because i like i like things that pop and i like things that are colorful. So you do that . Yes, i do that. Do you sew it actually yourself . I sew some. Like i told you, im the ceo so i get to play and ride my bike and watch phinneas and pherb. Clearly a process. Now, you sell ties . Yes. I do pocket squares. Are you going to expand beyond bow ties . Im going to do skinny neckties and blazers. I just really want to get into the fashion industry. To ramp up production, youre going to need to, like, listen to people about, you know youre not going to be able to sew every one. Youre going to have to subcontract. Are you going to help with that . Absolutely. I think if he really gets a strong hold in this area, and then well go and license other territories with the people who know how to do it best. Do you have anything to tell us about what youre doing up there . Fashion week, im launching helping launching the brand, the global brand an did i amo. Its a prestigious travel brand. It goes right against the of the world. Theyre now opening their own retail, but now the big retailers dont have any way to come and buy that hopeful travel products. Then im loss charity buzz raising money for the usco ufca, excuse me, in honest of the u. S. Open. Awesome. When does school start for you . School has already started. All right started . Are you mission it today . Yes, im missing. Is there homework . Do you need to send the teacher a note or something . Oh, i have a ton of homework. We were just talking about some home schooling. Hes becoming a Main Attraction and people love him. Hes a brand. Gentlemen, thank you. Congratulations with this. We are going to look forward to your grand success. And youre going to wear a bow tie . Do you know how to tie a tie . Im going to try it. Thats a great idea. If you put it around your like some woman was if you put it around your leg and you tie it almost like tying and then take it off and can you do it . I do it since im a Fashion Designer i tie it on my neck. Or i tie it in the air. Oh, my god, no, it wouldnt be quite the same if i did that. Watching you do it wouldnt be i wouldnt want to see that. Can we get this online or where does this retail . Online and my website is m mosbows. Catch shark tank here on cnbc tuesday nights at 9 00 p. M. Coming up, the Top Companies giving High School Grads the best opportunities. 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I was leaning forward so much in the light yesterday i looked like walking dead premiered early. It was like october 13. This is everywhere. Usa today even. Lance gillman up near reno is the major player in Economic Development in nevada which is still trying to crawl out of a recession, as you know. Hes the owner of the biggest Industrial Park in the world suppose aredly. The tahoe Reno Industrial center. He made some money in legal brothels including the Mustang Ranch who he bought from another dude who had to skip out of town to brazil because of tax evasion. So gillman was are there with the reopening of the Mustang Ranch. They had a video afrom the guy n brazil passing the baton to this guy who is a i wonder if jane wells interviewed him. She did a story. Hes like the big guy up there. Tesla must have been dealing with him. Harry reid, depending on who is buttering harrys bread, he loves casino owners. Republicans get along with him because its in his state. He said something negative about brothels that maybe it time to outlaw brothels. I cant believe everybody else would ban brothels as everybody legalizes pot. The Wild Horse Canyon ranch. Then he expanded with the Mustang Ranch. Excellent. This is the guy that bought the industrial complex. Little known thing. Gooder for him. Yeah. Tell me about this. You wear stretchy jeans, right . I dont know if i wear them. I bought a pair 90 cotton. There is a story that says jeans face an uncertain future amid yogawearing rage. Thats not true. Forget it. Yoga pants are up 7 . Apparently women especially and i asked becky. Are wearing yoga pants. They love them, but im not going to wear them out. People will wear them to the office, they say. Thats a little weird. You dont wear yoga pants. I meditate. I know there is a position you told me about called downward dog. I wasnt sure it was yoga. I want to talk about dinosaurs. I want to tell you about a new dinosaur. We thought we knew everything. There is a giant dinosaur they just found. Its called dreadnotus strani named after an old battleship combined with the guy doing the dig. Thats kind of small. As much as a dozen elephants in weight. As tall as two stories at the shoulder. Has a 37footlong neck. 29foot tail. When it died it was 85 feet long and still growing. Thats a big one. Are you skeeved out now that you know a lot of them had feathers. No. Its like birds. Freak thing. Yuck. When we come back, the nfl season is under way. New England Patriots bob kraft is here on football and the economy. Bringing along quarterback tom brady. The future halloffamer gets into the squawk game after this. Stick around. If you ware a denture, take the simple test. Press your tongue against it like this. It moves unlike natural teeth. Do you feel it . It can happen with every denture. Introducing new fixodent plus true feel. It helps keep dentures firmly in place. With a smooth formula, free of flavors and colorants. 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Kicking off the football season. New England Patriots ownerer bob kraft and his quarterback, future halloffamer tom brady get in the squawk huddle as the second hour of squawk box begins right now. Good morning. Welcome back to squawk box on cnbc. Once again we are live from the heart of new york city. Thats where business is waking up this morning. Check out zeus, the god of tailgating. Well talk about this. Raising the bar on the pregame party. How much would it take pull up to the game in this monster . Well talk about it later this hour. Wall street is focused on the big jobs report at 8 30 eastern which saw the adp report this week. A little bit below. Well see how august fares. We have been above 200,000. Its 220 for nonfarm jobs. Unemployment is edging lower to 6. 1 . Checking the futures after a disappoint session yesterday, some would say. Unable to hold onto gains inspired by mario draghi. The tenyear has been drifting a little bit higher. We are hearing from mumblings. You can see it on the far right. The yield has moved up in the last two weeks. Maybe its time. Maybe thats significant. But if it means the economy. You would think eventually youre not going to stay locked at zero. Right. As we continue the employment conversation, a special report on the jobs friday. The companies with the best opportunities for High School Grads, jane wells has the story. Jane . Hey, guys. We are just getting the information breaking now. College is expensivement fast food workers want better time. Tough for High School Grads but glass door, a site where employees rate their companies has listed the best companies for Career Opportunity ifs you only have the diploma. In fifth, nordstrom. One salesperson writes they hire from within the company for all positions with few exceptions. Nordstrom takes care of their own. A Sales Associate can make 25,000 a year plus commissions. In fourth, publix supermarkets, employee owned. If you wark hard you will move up fast. An employee went from bagger to cashier in four months. Cashiers make 8. 78 an hour. Chipotle. There is room for tremendous growth, said a team leader on glass door which says managers can make 48,000, 50,000. In second place, whole foods. A lot of opportunities, just work hard and be sociable wrote one employee who moved from cashier assistant to receiver where salaries average 31,000. Number one, costco. One tire installer in ft. Worth said, for people with no desire to get a degree or a trade, costco offers great salary and all the benefits you need for yourself and your family. A general manager at costco makes over six figures. Thank you for the report, jane. Appreciate it very much. That was fun. Our guest host this morning is a legend in Corporate America and the nfl. Hes arguably one of the most influential owners in the league. Bob kraft is on set with us. Hes chairman and ceo of the kraft group, owner of the new England Patriots. Always a pleasure to have you here. Great to be with all of you. I dont think you would say one of the the most. No arguing hes one of the. But probably the most. I have had people wonder. Okay, guys. Hopefully woodys not watching. Were in the big apple. This is cool, this this location. I vote for this location. All right. One more. He gets two more. Compared to economists. Bob, we want to talk about football, business, how things are going. Great to have football back. I stayed up to the end, your sister station did a great job. Al and chris do a great job. They do. Theyre pretty special. The best. The best. Footballs back. I hope were getting you good ads, almost rivalling squawk box ad prices. Some day as the sport grows in popularity. The atmosphere in seattle was great. Were here and football season has kicked off. You have a good idea about whats happening with the American Consumer and the economy overall. We talk to you all the time about the Cardboard Box cater tor. You have a good idea about whats happening with ticket sales. What would you say now . In the packaging business is First Quarter we were a little bit concerned. Our unit volume was down 1 . But year to date through august, we are up 11 . Things are fairly strong. The only weak areas we have seen are military. The biomedical area in our area, the Small Technology companies, i think with the new Health Care Act and the excise tax they put on roughly 2. 5 . It really has slowed that area down in the northeast. Thats a very vibrant area. Throughout the country, we are pretty strong. Internationally, you know, i think the geopolitical events, whats going on in the ukraine, the japan china situation, and of course the mideast. People are really weary. Our European Business has been really off. I think part of it is the currency, too. I think its going to get exacerbated. In south america and asia its very strong. Do you think the u. S. Economy gets pulled down or does it persevere . I think its fragile. I dont think most americans can relate to whats going on. Its so complicated, this situation in the ukraine. The whole mideast situation. And what we need more than anything is good strong leadership from washington. I think any of these things could be like a tinderbox in terms of affecting the economy. Great. Were going to talk throughout the show, bob, about this stuff. You know, youre a businessman first. Football is a business. Its good to get out there. Passion. Yeah. You want to do well enough in the world of business to buy the patriots i went to school there. I dont remember the patriots being the greatest team when i went to school in the 80s. They were not the greatest team. They were kind of a joke. Now we know the difference you have been able to orchestrate and a lot has to do with this guy, another well known face in the world of football joining the huddle this morning. Tom brady, im told, is quarterback of the team. The new England Patriots. Tom, i will throw you right into the fire. Bob wants the first question. I hope you answer this correctly. Well, i want to make him feel good. I was working out with harold down in the health and conditioning, strength and conditioning department. He said to me, you know, i was working out with tommy on the field. That man is not 37. The way he performs what hes doing. Explain to them the magic elixir that allows you to do it. I wish i had all the answers. You know, its a process for us Football Players getting prepared for every season. Its a long off season. There is a lot of work we put in. Otas and summer camps to get to this point. I worked hard. I talked about it over the last few months about Different Things i do that are different from what other players do that helped me. I like to keep secrets for myself. I dont want to give away too much information to my competitors. Im at a good place, excited for the year to start. You want to talk about tv 12 at all . Sure, yeah. We talked about it a little bit. Its something we started a year ago at a Sports Therapy Center in foxborough at patriot place. We are doing cool, innovative things, getting guys back on the field faster, quicker, healthier than they have been. Its about sustained peak performance. Thats the message i want to spread to kids, weekend warriors, certainly my teammates that there is a better way than what we currently know. Some of the Old School Techniques that have been out there for a long time that dont necessarily work as well as some of the things were doing. Its exciting. Im really excited to play football. Thats what my focus is on. Im excited for the year and kpielted to see what the team can accomplish. In that regard, maybe joe was asking me whether he thought we could beat the seahawks. I dont know. Hes a big pats fan, i guess. Joe is. You know, they looked good last night. They got a good team. You know, certainly playing in seattle is a tough challenge. We learned it a few years ago. They are a great team with a great quarterback, great coach. You know, they will be tough to beat. There is a lot that can happen between now and the end of the season. They got off to a good start. Hopefully we do the same in miami. The last two were great for the pats. There was one game where it ended in the playoffs. You had some injuries last year. I remember kidding you, someone wrote you need passes over the middle with gronk out and i sounded like i knew what i was talking about. Off season, you never throw anyone under the bus or blame anyone else. I have seen that. What did you need as tom brady the last two years that you didnt have to get past the team in the playoffs, whichever one ravens one year. What was it last year . We have gone with the championship game three straight years. Yeah. It was just the last game that did it. What do you need . Was it defense . Was it a wide receiver . On the offensive line . What was it . We needed to play better. It wasnt what we didnt have. It was things we had an opportunity to accomplish that we didnt do. We had a great opportunity to be in the games. When youre playing the most important games of the year, you have to be at your best. We dont do it. Unfortunately. But its a new season with new opportunity. Hopefully this team can go out and finish. Rko says its the last one out. Its important. We have to figure out how to close that door. You had the ravens beat. I might have been there. There were a couple of times you had it beaten and they won it all. The reason nbc enough to pay so much money is no one knows what will happen. You can program it and there will be ups and downs throughout the year. Were lucky to have this young man at the helm as our quarterback. He and coach belichick have been a wonderful unit. I think we have a special, balanced team. You just root that there be no injuries. We lost one of the top defensive starters each week. As long as you have 12 on the field youve got a chance. I wish that was the case. We have great players. Hopefully, we could stay healthy. We have a tough schedule. The nfl is always balanced. The league has done a great job making it competitive. Every team at this point of the year is hopeful. We are one of the teams that are hopeful, too. Its about finishing. Weve got to get out there and prove it. Every week in the nfl youve got to earn it. Thats what we plan to do. Hes got to get into the quarterback meetings, too. I think about you as much of an athlete as a businessman. You have sponsorships whether its uggs or underarmor. I wanted to understand more. You have taken royalties and equity in your deals rather than cash up front the way most other athletes do. Can you speak to that . I think i have a lot of great advice from people over the years. Its nice to invest and have partnerships with people you believe in. Especially at this point in my career its nice i can pick and choose certain things. The people i try to align myself, i feel strongly about what theyre doing. If they believe in me, i want to believe this them. I want to work hard to make the partnership great for both of us. Did you agent the underarmour deal with giselle that happened this week . Though. Shes a much better businesswoman than i am a businessman. Shes been able to handle those things for herself. Nobody does a better job than her. Its all in the family. Tell her to go back to dollars though from euros. They are collapsing. 1. 29 today on the dollar. Shes so smart. For a while she wanted to be paid in euros. Time to switch. They are the unbelievable team. The real deal. Very special people. Tom, i wanted to ask you about concussions in the nfl. I know the number of concussions went down last year. The nfl is getting arms around this. Enrollment in pop warner is down about 10 from 2010. Is it safe . Look, its a contact sport. Its out of your control. I think concussions in any contact sport there will be head injuries. Its one thing to get him. Its another thing how to treat. Our i think we have some of those things figured out. Like a lot of things, i think Contact Sports and certainly football, is good outweigh it is bad. There are lessons to be learned in football. Certainly my children, i want them to do whatever they want to do. If they want to put on a helmet and play football, i will encourage it. I encourage a lot of parents out there to do it. Obviously you need to be safe and take the advice of whatever medical professionals you have. We have great ones here at the team. Like most injuries its about rehabilitation, conditioning yourself to do whatever you want to do. If you want to play it, yeah, you have to learn how to adjust and play accordingly. Certainly prevention and reh rehabilitation are important to any injury you sustain. Which teams are still good and which teams do you think might surprise. Like kansas city. All of the sudden they were good and it came out of nowhere. Are there sleeper this is year . Who will be bad that was good last year . Can you tell anything at this point. My tarot card is in front of me. You dont fear anyone. Who are the games you have to get up for early in the season, do you think, thats coming up. Look, they are all tough. Every team is hopeful this time of year. They made player changes. They have done scheme changes. Part of the beauty of the nfl is every week you have no idea the margin of error is so slim that one bounce, one turnover could lead to the outcome of the game. There is not an easy game in the nfl. Its very hard to win games in the nfl. Weve got to figure out how to win this weekend in miami which is a tough place for us to win. Jets or the giants, whos better . Those two neither of those are my favorite teams to talk about. Theyre both crappy . No, no. We play the jets. He thinks the jets are tough this year. Really . Yeah. They looked good in preseason. Came back in. All right. Is that it . Yeah, hes got a meeting and hell be fined if hes not there in exactly two minutes. Got to help his cash flow. Does it bother you that gisele already made 6 million while you do this . I dont know. If my wife made he wants to help Ryan Robertson and steve burke do better. Im smarter than i look. Im not just a football player. He picked underarmour before anybody bob, do you want to help brian and steve do better . Im doing my best. Well talk. Im a shareholder. I know you are. Well sell the other stock. Jim cramer says there is a new ad for uggs this week featuring tom and his family, a rescue dog. Jim says its fantastic and pulls at the heartstrings. Thank you, tom brady. Bob will be with us and youre helping cnbc out today by being on with us. I dont know about that. You are. Ill tell you. Nice to be part of the family. You are. You absolutely are. We want you to be a bigger part. We love you, bob. We do. We should say also you have no problem with tailgating at the Gillette Stadium as long as they hit patriot place. Well check out the ultimate vehicle for the serious tailgater with bucks in their pocket. Robert frank takes us through the bells and whistles later this hour. Well be right back as we count down to the jobs report. Cute little guy, huh . This guy could take down your entire company. Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. That corporate trial by fire when every slacker gets his due. And yet, theres someone around the office who hasnt had a Performance Review in a while. Someone whose poor performance is slowing down the entire organization. Im looking at you phone company dsl. Go to comcastbusiness. Com checkyourspeed. If we cant offer faster speeds or save you money well give you 150. Comcast business built for business. Still to come this morning a high profile gop member defending the traditional recipe p for smores. Well tell you who wants to substitute chocolate for fruit. Stick around, squawk box will be back. Announcer time for todays aflac trivia question. Who did pete sampras defeat in the 2002 u. S. Open final for his final grand slam title of his career. The answer when cnbc squawk box continues. N. And. Exhale. Aflac and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. Eenie. Meenie. Miney. Go. 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Gov announcer now the answer to todays trivia question. Who did pete sampras defeat in the 2002 u. S. Open final for his final grand slam title of his career . The answer, andre agassi. A note from politicos Morning Money on defending our smores. Last friday the Forest Service published an article about how to roast marshmallows suggesting substituting fruit for chocolate and angel food cake for graham crackerers. Kevin mccarthy said this captures whats wrong with the dp government. Hard earned tax dollars supporting bureaucrats who cant pass up an opportunity to live our lives is. Amen. I hate to see smores politicized. I cant believe were having the conversation. Im with him. Go have a school lunch now. It has all the crispy kale. Im searching for a big gulp. Coming up, a jobs shortage in the shipping industry. Mary thompson joins us on the hiring opportunities at sea. Then zeus, the god of tailgating. How would you like to roll up to the game in this one. Find out how much you need to party in style. Check it out next on squawk box live from new york city. ] i wish. Please, please, please, please, please. [ male announcer ] the wish we wish above all. Is health. So we quit selling cigarettes in our cvs pharmacies. Expanded minuteclinic, for walkin medical care. And created programs that encourage people to take their medications regularly. Introducing cvs health. A new purpose. A new promise. To help all those wishes come true. Cvs health. Because health is everything. Cvs health. Oh, he fakes a handoff quaand hes making a run. For mattress discounters fall kickoff sale right now, save up to 300 on Sealy Posturepedic and serta mattress sets. Even get 24 months interestfree financing on every tempurpedic. Youre going to love their football fieldsize selection. This calls for a little touchdown dance. Dont miss the fall kickoff sale at mattress discounters. Mattress discounters welcome back to squawk box, everybody. Lets get to the other stories. Front and center one fed official says rates are too high. Narayana kocherlakota said rates need to be lower because of unemployment and inflation. Lego sizing the title of the biggest toy maker in the world. You have the success of lego the movie and related products with it. Check out this video. A florida teen hauling in a giant swordfish that weighed nearly 700 pounds and was more than 14 feet longment it took the teen four hours to complete the catch. The shipping Industry Needs more hands on deck. One company is looking to bring more workers on board. Mary thompson has a look at where the jobs are. Hey there, becky. We are in the wheel house of the tug boat scout which operates in the port of los angeles long beach. We are here because for the past nine jobs fridays we have been bringing stories about how various industries are filling the Skilled Labor gap. In the maritime industry its more of a gulf. The International Maritime Organization Says the industry faces a short shall of 26,000 to 47,000 ships officers in the next five years. Heres the ceo. Global trade is growing like we have never seen. It will take more people to build out the infrastructure needed to move goods around the world. Now the growth in trade is being fuelled in part by the energy boom which is increasing demand for services. Over the next five years it plans to hire 500 to 600 workers. Finding the workers, especially the skilled one, is a challenge. Why . Demand for talent is global. A lot of ships officers are nearing retirement age. New requirements want more time at sea for the workers, making them harder to replace. There is tremendous lead time to get people trained and into positions. Maritime Academy Takes four years plus an additional two years of sea time. If you plan to go a more traditional route where you work on a vessel at an entry level position it can take between five and six years to get up to speed. Now he works with the academy and the unions to ensure there are enough hands on deck. They are well paid hands. An ablebodied seaman which is the first step before officer can earn 40,000 to 50,000. As a captain of a vessel, you can earn this the six figures. Back to you. Mary, thank you very much. Lets go to bob kraft. He knows about whats happening in shipping. We just had a hundred of the International Managers come in and its not quite the market isnt quite as vibrant. It creates an opportunity for us we look at where the space and opportunities are. Especially to europe, south america, africa. And asia , of course. Because of they ship so much here. We see a softening in china, too. I am worried about a trade war there. We have seen it across the board that the shipping has been very soft going back. Do you think its because not softness necessarily with the economy, but because tensions between the two nations have risen. I think its a come thabinatf both. Wages, real estate, everything has moved up. I think there is a softening there. Then i think there is a tension between japan and china. We have lined up with japan. I think thats all having an impact. That goes back to my geopolitical analysis. I think there are a lot of sensitive things that could really be a downer on our system. Thats why we need the leadership in washington. Where does the business go instead . If were not doing as much trade with china, if they are not doing as much with us, where do they turn . Russia . Africa . Where they will turn. Im not smart enough to answer that question. Its a fabulous country. Our growth in business there has been great. We have seen a softening now. Okay. Bob kraft is our guest host. More from him in a moment. Its that way. Bugs bunny. Coming up, the jobs report pregame analysis and predictions. Ahead of the big 8 30 report. First we kick off the nfl season in style. Get ready for the ultimate tailgate complete with bells and whistles. Squawk box will be back live from the heart of manhattan. You do a lot of things great. But parallel parking isnt one of them. Youre either too far from the curb. Or too close to other cars. Its just a matter of time until you rip some guys bumper off. So, here are your choices take the bus. Or get Liberty Mutual insurance. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. See Car Insurance in a whole new light. Call Liberty Mutual insurance. [ maleeven on the go. Ur love for trading never stops. Tdd 1800345255050 open a schwab account d you could earn d 18003452550 300 commissionfreego. Ur love for trading never stops. Online trades. Tdd 18003452550 tdd 1800345255050. So if you get a trade idea, schwab can help you take it on. 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Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. Its time to tailgate in style. Robert frank has a special guest this morning. Robert. Good morning, andrew. Tailgating is thousand a 15 billion a year industry. We are here with top shelf tailgate charles malay. How is business . Doing pretty well. Were ready to get going. You served 2300 people last year. Are there Slots Available . Very few. Youre almost booked. We have zeus with flat screen tvs, kegs, a private bathroom. Its a man cave on wheels. Nice toy to have. Youve got cornhole, beer pong. You do food. What have you grilled . We have solved the manhattan grilling problem. We make our specialty sandwich, an italian filet mignon cheese steak with broccoli rab p e, onions, mozzarella and toasted ciabatta bread. This is expensive. You start at a hundred bucks a person. You have done parties for 15,000. Why would someone spend that money to sit in a parking lot. Everyones having a good time, wants to be together. No ones up uh set. Music playing, beautiful girls, great staff. Just the place to be before the game. Even with the corporate boxes people love this stuff. Joe, back the to you. You have to come try this cheesesteak. Thats a good breakfast. I just heard im going to preorder one of those. Almost like a car coming off our executive producer all right. Well set one aside. What can i put on it . Peppers is this what do . Have you seen . Yeah. Onions, broccoli r are abe no, no, no. Special sauce. Beer out here. Can you ask whats the minimum number of people i need to rent this thing for the day . Just the vehicle alone costs you 1,000. They start around 30 people. But you have done parties for 200 when they got tables and tents out here. 30 is the minimum for the ultimate tailgate. Moma has a new expressionist exhibit you will park it in front and bring friends. Is that what youre thinking . Do some tailgating . I was going to go near the ballet. Thats great. Nothing wrong with ballet. What are you saying . People in tights and all. Its fine. Thank you. Football players are are in tielgts, too. They are. All right. The Miami Dolphins kicking off the 2014 season. Sunday at home in sun life stadium. Oh, my word. Against stay apart ear. Against the new england pat reets. Joining us, steven ross from the Miami Dolphins. Chairman and founder of our company. Bob kraft is here from the patriots. You had glimmers last year. We came close. This could be the year everybody is looking forward to it. Thats the great thing about football. Thats why the fans are looking forward to it. Hope springs eternal. Whats the biggest thing you did since last year . We had to replace the offensive line. That was really the big thing we had to concentrate on. Also, hopefully help our offense. We are excited about this year. We think well surprise people. We start out early. Our biggest competitor is probably the new England Patriots. What did you say, bob . Were you saying you were scared . I think its what you indicated to me. What did you say . I think our people are very concerned about the dolphins. We think they have made great strides. They have improved a lot. They have a good defense. Their quarterback is top drawer. They have great receivers. Theyre a balanced team and it is warm down there. The team is going down early to adjust to it. Well keep an eye on it. Steve made a big commitment to the new stadium to attract super bowls there. I think a commitment over 400 million. I just wonderer why when you that stadium was about 20 years old. It was a dual purpose stadium. What were you are thinking when you converted it . What was your big challenge . When i bought the team the two responsibilities is to bring a winning team. To help the fans, bring them to the park, to the stadium is also important. Today we know how great it is on television and getting them to enhance the experience is probably one of the most important things you can do. It does a lot for the community. We have it totally sold out. 75,000 tickets. It shows you what it does for the community. Can you create a culture like what hes got or the other guys north used to have. When i was a youngster, how they were winning and with the Undefeated Team and everything. Not everybody wins. You have to put yourself in a position when the fans arent coming out there. Its something that i think miami will support a winner. We have to make sure they want to support the team all the time. In that regard we have done a lot of research with our fans. There are three things. I know you have done similar things. We just created a Cross Insurance providian where anyone can go and its like a massive sports bar for the day of game. We took out 20 rows of seats in the south end zone and we have a club where season Ticket Holders can go. They dont want to be tethered to seats. I think you have done similar things. Were wired for w with ifi, one of the first stadiums. Over half of our people are using it all the time and having an experience thats better than whats at home. Your caple tall improvements will do the same. You have to today. We are looking to do those things. Whats it doing to margins now that you have to invest this significantly . Unfortunately we havent raised ticket prices in five years. Its been hard to attract the fans. With the new stadium we have a roof or sun shade over it. Its really hot down there in september and october. Doing things to upgrade the stadium. I think it will help bring fans out there. To provide the things they want today. And as bob indicated what he did in his stadium, those are the things were doing. The canopy concept you have is clever. Im impressed. I want to get the benefit of it. We also have variable pricing. We have stabilized pricing and with our preseason games, we had a bigger attendance. We dropped prices in half and then raised the prices so its the same. Do you guys like the stubhubs of the world . Is that good . We dont need stubhub. When you look at that crickets. I just touched the third rail of did you . We dont allow season Ticket Holders. We have our own exchange that we charge nothing for. We are fortunate to have 60,000 people on a paid waiting list. People put tickets there and they are bought within the system. If someone goes to an outside Ticket Exchange we pull the tickets. We dont want people marking up our tickets. Yeah. Were not quite as fortunate. As a fan you want to see things. Its a reason for people to get on the list. There are certain benefits like im sure he gives special benefits to the soccer match people. We do that with our concerts. We have created a Membership Program for the fans. Really giving them something other than just going to the game and being a spectator, making it a reason to be part of the team. We have different classes. Those with families, business people. Everybody really goes to the game for a different reason. You want to attract all the people and give them something more than just going to the game. Our Membership Program has been successful so far. All right. Well have much more still to come. Go easy on us sunday. Okay. When we return, the pregame to jobs friday continuing at the top of the hour. Well bring in the jobs panel of experts for their assessment of the economy. You know them well. Mark zandi, Kevin Hassett and alan kreuger join us. Ueger join. In new york state, were changing the way we do business, with startup ny. Weve created tax free zones throughout the state. And startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. Thanks to startup ny, businesses can operate tax free for 10 years. No property tax. No business tax. And no sales tax. Which means more growth for your business, and more jobs. Its not just business as usual. See how new york can help your business grow, at startup. Ny. Gov welcome back. Our special guest bob kraft from the new England Patriots. They have grown substantially as a franchise in two decades. The nfl has grown as a franchise. I was going to say ad rates have grown. Can this this continue . I sure hope so. You know, i think we are the one Live Television product. I know your folks, steve can tell you well and i know les is very excited like having thursday night football has helped them on sundays. Selling thursday night. What happened, 97 of all is watch withing live tv games. Very little dvr. Its the really only Television Product that mass audiences want to see. Now youre the chairman. You run the tv business effectively. Im part of a committee working so my question, at t trying to buy directv. You are in the middle of it because you sit in the middle and the deal cannot happen or there is a way out for at t unless they get the deal with you. Were hopeful thats going to close shortly. I think both mike white and Randall Stevenson will be great partners and we look forward to the deal hopefully happening soon. They have presented our product beautifully. We are really happy to have them. It would be better with randall involved. That bolsters the chances it gets done. Any time there is 50 billion merger, i assume good things are happening. I dont want to speak for them and their business. Right. It looks like there is a lot of synergy there. It looks like the nfl will be the big winner of a deal like that. I think well do okay. They can raise probably the price of the deal as well. I assume randall will want to i mean, are people going to be watching the nfl on their at t device . Right now verizon has an exclusive with us in that area. But we are considering all the different ways we can give to our consumers. You know, we have nfl now which is a customized Digital Product for our consumers. Well be considering every alternative and ways to better serve customers. It was stunning that the 50 billion dollar deal was contingent upon being able to continue the rights with you. What did you think when you saw it . We appreciate how people like nbc present our game, cbs, fox, espn. They have all done a great job. And the public accepted it. I dont think we have done as good a job at messaging how safe the game is. And how we have improved it. There is something about football and life lessons. Tom brady said why he wants his kid to play. You learn about being dependent on the guy left and right next to you, having a sense of team. The spirit that we are trying to bring to washington so we can continue our competitive advantage as a country. I just wish more than played football so they would understand it. What team work is about. Throwing up interceptions every time they throw the ball. Very good. So in terms of ad rates, during the regular season, what is it per minute, per 30 seconds . 30 seconds. Whats the highest and whats the cheapest i can get something and where would that be . You never want to buy the cheapest. Whats the highest that you get . Where is that . I think the highest we get is for the super bowl. Regular season. Youre very good. I think it would be sunday night football. It started by the way, i heard your r ratings were up fo last nights game. Even though it wasnt as competitive. You have the presentation. Sunday night is the highest level. Higher than thursday night typically . Thursday night is just getting started. One of your competitors who attracts a lot of eyeballs, we are told, has more eyeballs than any of the other networks has been kind enough to promote thursday night football. You mean total viewers. Maybe not in the democrat graphically attractive advertising. Its probably something you understand. All right. What does it range for 30 seconds on sunday night . Huge numbers . Very big. Its going to keep going up . Part of the job youre going on sunday night you have a presentation. What fox and cbs are doing, and les moonves did an outstanding job running his network. And espn, the highest rated cable show. Espn with tennis. Monday night football. Have you been watching the open . I will try to get over there. The espn stuff is vastly superior to the cbs stuff, i think. Im kidding. I thought its great. The whole tournament did you see are you a competitive guy . Did you see last night . Two match points federer had against him. Five sets. I was watching the football game. Dont you have you dont have a little screen . Im getting one in the new office. You cant dance at two weddings at once. Either youre football or ten this. We have to run, bob. At least in my business. Thank you very much for being here. Great to be with you. Are you leaving . Yes. The jobs report is in the hour ahead. Stick ahead. Jobs report coming up for the month. And apple adding measures after the naked picture scandal last week. Aflac and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Over 20 million kids everyday in oulack access to healthy food. For the first time American Kids are slated to live a shorter life span than their parents. Its a problem that we can turn around and change. Revolution foods is a company we started to provide access to healthy, affordable, kidinspired, chefcrafted food. We looked at what are the aspects of food that will help set up kids for success . Making sure foods are made with high Quality Ingredients and prepared fresh everyday. Our collaboration with citi has helped us really accelerate the expansion of our business in terms of how many communities we can serve. Working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. We are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. Until every kid has built those lifelong eating habits, well keep working. Working for a living working for a living working for a living living and a working im taking what theyre give welcome back to squawk box on cnbc. Im joe kerr nanne with becky quick and andrew ross sorkin. We are in the heart of the business and financial and media and garment and you name it, were in the heart of it. We are back to the analogy. We are the heart, liver, spleen. The brain. I forgot the brain. Look at all the people going to work right here. Thats right. We are about 230 miles away. The jobs report will be released in the growth area of the United States, washington, d. C. Growing by leaps and bounds. You are looking at a live picture just outside of the labor department. The futures are indicated about 32 points. Well take a quick look at the european trading. They had a good session. Giving back a little bit today. We are joined by perhaps the finest economist, the most accurate forecaster of jobs. Wow. The leader of moodys. One of the finest. Now with his own shot. Mark zandi. Converted. How did i do that . Mark one zero are taxes did you see the oped . Go to zero. We won we did it. We did the hard work on the show and convinced them. Its guilt from the stimulus he designed. I was for it all along. Hes known for years. You never tease it out of me. Is it your evil twin . I read it. I was gratified. Its great to have you here. Great to have Kevin Hassett as well. Alan krueger is an economics professor at princeton, former chairman of president obamas council of economic advisers. Youre going to get in trouble with your friends at the white house. Alan already got in trouble. He did . He said theres no slack in the work place so we have to end quantitative easing. Once they leave they come around to free market economics. How does that happen . I dont know. Both of the guys have been the defenders of reason in that administration over the years. Economists more than politicians. You must have read the oped. Is that what it is . I had viewers shocked as well. They said, look at zandi. I didnt think you were thats my hometown, of course. Someone sent it to me. Oh, comcast. Things i need to know. My colleague andrew, we have to work on it together here. Alan and kevin can jump in as well. 20 billion in ten years when there is 2 trillion. Just in terms of if we fix this is like instead of giving someone Pain Medicine when youve got a disease, go to the root core of the disease and cure it. Then the patient feels better and gets better. Its the same. Dont you think everyone agreed we need Corporate Tax return . Why do we keep harping on the tourniquet. It seems we cant get there. Why not fail going to the big place and at least talk about it . Thats a worthy shot. Im all for it. If we cant get there we have to do something. Thank you. Thank you very much. So am i youre back with me now. How do you like that . The president should design something or just say no mergers with foreign entities here. How about that . I think the people who care a lot about the deals that might happen, that are already on the table and so on are concern ed about gossip that the president will shut down inversions. It will be over turned in the courts. Until the courts decided it may stop the deals. There are investors thinking about mergers that are very nervous about the potential for an overreach rule in the next few months. Hes had success stacking the nlrb when he wasnt allowed and all the things they effected have already happened and you cant take it back either. Thats part of the problem. Even when they do something they know is illegal and will be tossed out of the courts it will stop the deals. Exactly. Hell be in marthas vine yard permanently. Maybe a political window will will open up after the mid many terms. Why would it . I bet the president gets even more. Do you think so . Nastier and its hard to know how things shake out. Did you design the tourniquet, alan . What can the p president do just without congress to stop inversion . Well, first of all, the president would like to see Corporate Tax reform. Hes had it in the budgets for a couple of years. I think the options that treasury has on inversions will be limited. When you look back at the discussion, i think you will say they were timid. Whats the right answer then . We need Corporate Tax reform. No question. Our Corporate Tax code is an embarrassment. The world passed us by in part you would like to say, thank you, alan. I agree. You say no tourniquet . I thought you do. We are in a situation now where the politics will drive us to do major Corporate Tax reform and the system will be bleeding until we get there. No tourniquet, force the issue, go for the big game. Thats where i think the politics are driving us to. I admire the optimism that maybe after the election well do something. Its a ways off. Could i jump in with one thing, being the washington guy. The one thing im seeing thats a potential hope is i think the people in the white house think on corporate reform their own caucus is a part of the problem. That they, in fact, the president s budget and mr. Camps house bill look very similar. If they didnt have to worry about democratic opposition, i think they could move something through. I think there is a chance it might happen next year, if the senate goes republican. Depends on what happens. If there is more Corporate Tax inversions it may light a fire in terms of a change in the political environment. I dont want to sound too optimistic. Its hard to be optimistic on this subject. Its a possibility. The other thing i would worry about is special interests are more powerful now than they were in 1986. Corporate tax reform could end up riddled with a lot of loopholes. Yeah. What if we just at least change the thoegs that we are going to tax globally. I mean, wouldnt that help in terms of at least the money would eventually come back here . I know people say rich people dont spend money. Its not used for hiring. Isnt 2 trillion here better than there no matter what happens to it . The money is fundable first of all. Companies arent having difficulty raising money to invest in the u. S. But the problem is the income shifting. So i think if we get away from having at least some minimum tax on Global Income you will see more income shifting abroad. Look at how much profit American Companies book in bermuda. Something like eight times gdp. Why leave it out there if we were at zero . Like zandi is talking about. Go to zero, tax dividends, income higher with the individuals. Let our corporations compete globally. If there is a race to zero, so be it. Were already there. Then jobs are created here, factories, investment, capital. What has not worked there really . As long as we make up revenue in a progressive way, thats fine. Maybe middle ground. Thats a real fantasy. Why did you write about it then . I wanted to say its where we should be. Fantasize a lot . I do. On this stuff all the timement compare where we should be with where we are. Was it counter factual without the stimulus . That was your big fantasy. That was as close to reality as it gets. Talking about where we are. Lets get the numbers. Sure. What are you fantasizing about . 210,000. I add in 6k for government. 210. No change in unemployment. Thats where we have been. Kev en . The interesting thing is i have models to help me call the number. The one that puts more weight on oh adm is doing better which suggests that marks hard work is really improving the number. So the adp number that comes out of the model for me is only 202. If we throw out adp you are you get to 240. If its above that we get to make fun of mark. Well get alans number when we come back. In the meantime, apples hack fix. Well talk about it. Plus Nieman Marcus moving to new york city. The ceo joins us after the break. Car smell and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com but what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. You just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. Could mean less waiting for things like security backups and file downloads youd take that test, right . What are you waiting for . You could literally be done with the test by now. Now you could have done it twice. This is awkward. Go to comcastbusiness. Com checkyourspeed. If we cant offer faster speeds or save you money well give you 150. Comcast business built for business. Welcome back. We are about 12 minutes from are the august jobs report. The futures now, take a look. Things could change. Right now we have red arrows with the dow looking likely to open off 4. 5. S. Dow two points off. The s p down about six points. The world may be in a different place in a few minutes. Corporate thus, apple adding stricter security measures with the goal of keeping hackers out of accounts. That move coming after the wake of last weekends celebrity photo scandal. Apple ceo tim cooke told the wall street journal the company will alert users when someone tries to change a pass word or restore icloud data to a new device. I know you say it really wasnt their fault and they are doing too much now. I think they are doing the right thing. Im on apples side. I was saying you have been very outspoken. Uncharacteristically so. Im not blaming them. Now people are saying tourniquet implies hemorrhaging. We have to call it putting a band aid on something. Tax inversion. Okay. So im expendituring. No more tourniquet. Its not like the jugular vein was cut. 20 billion over ten years. I cant believe youre fretting so much about it. We are getting close to fashion week and Nieman Marcus is opening its first new york city store. The 250,000 square foot store will be anchoring a new Retail Complex at hudson yards on manhattans west side. Joining us is the ceo of Nieman Marcus group and steven ross, chairman and founder of the related companies, the developer of the hudson yards. We have talked about it here before. Karen, this is a big deal. Youre from headquarters in dallas. Whats luring you to new york city . We werent in pursuit of a location in manhattan. We are very, very luckyberg dor of goodman is part of our location. We have an amazing location at 58th and 5th. When steve and his colleague tim himmel came to talk about the vision we were intrigued. Initially i was skeptical. The more we discussed it and the more we understood what they were envisioning for the community that they are building at hudson yards and once we dug into the demographic shifts in manhattan and whats going on on the western and southwestern part of the city, we became very intrigued. Its the art part p of what hudson yard will have. Bringing it together made it almost the Perfect Place to build a store. Steve, we have been interested in watching some of the new tenants you have been luring. We know about others that will be going there. How did you set out who you wanted it to be as some of the tenants in the original opening . Well, we could see a shift. People do business differently. With the size of hudson yards we were able to create a city within the city. You look and see where the young people want to be. Where people are going at night. We were building rental buildings in the area. We were getting our highest rents in chelsea in the city of new york. Theres been a tremendous shift, say, from the Upper East Side where people want to go, where the highest prices are. To that area. It was the perfect storm. The city and state were spending tremendous amounts of money. If you follow the money, this is where are the growth occurs. Its the only place in manhattan that could grow and had the land to do it. Its growing five times at the pace of any other place within manhattan. Are you giving karen a deal now that shes an anchor tenant . It was a deal that worked for everybody. Put it that way. Do you worry about the distinctiveness of bergdorf which is almost the Nieman Marcus of new york with having Nieman Marcus in moracco . Bergdorf is higher even higher end. We are ready to go through a top to bottom renovation and well elevate it more. It allows room for Nieman Marcus to come in and serve the affluent consumer but a broader base. Our expectation of hudson yards is not only the neighborhood people, west siders but also a lot of International Tourists coming in which we somewhat serve at Bergdorf Goodman but i think it will be a bigger opportunity at hudson yard. What markets do consumers feel good in and where are they not so great. We are fortunate to have a lot of stores in texas, our home base. In florida they are doing well and business has been strong for a while now. I assume the costs of doing business in new york are higher than elsewhere. The foot traffic has to make up for it. Do you expect higher or lower margins to be in a city like this relative to other places . It should be consistent with how we do business in other cities. We turns complexity. We are walking into it. Eyes wide open. Is dallas is it a city . Dallas is a city. Oh, my gosh. Its my hometown. No, no, i made a comment i should not have made about denver, a city i like very much. It was indianapolis, kansas city. Dallas was maybe thrown into it. You have almost rendered me speechless. They are wonderful cities. Im a huge fan. They have downtowns. They are not really cities. Please come visit us in dallas. Our headquarters are in downtown dallas. Can you jump out of a commercial airliner and parachute . Well figure it out. They only have flights coast to coast. Those are flyovers. There are a lot of connections in dallas. Thats where americas hub is. Im joking. I love dallas. We had the 12yearold from mose bose. I cant wait to call. I got his number. Ill call him. This is his agent. He sounds like a smart young man. I will try to connect. How do you find uh new ideas . Is there a new trend . We are always on the look for the next up and coming designers. New york is a great place to find designers. Between ken downing, our Fashion Designer at Nieman Marcus and our fashion director at bergdorf they are keeping eyes and ears open. They are always doing Something Like this. Its the next call i will make when i walk outment thank you for the tip. Thanks for coming in. Welcome to manhattan. Were thrilled to see Nieman Marcus coming in. Steve, thank you for everything. Good luck. Thank you. Good luck on the game on sunday. Well bring more news on hudson yards as it develops. Excellent. I hope we we go to the awesome city that is dallas. Do you have a place to tie the horses . Coming up, jobs, jobs, jobs. Its the number of the month and later harold ford will join us. He says a forceful response is needed to df defeat isis. International threats, the economy and more. Squawk box live with the jobs numbers from new york city in a meemt. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. But parallel parking isnt one you do a lof them. Ings great. Youre either too far from the curb. Or too close to other cars. Its just a matter of time until you rip some guys bumper off. So, here are your choices take the bus. Or get Liberty Mutual insurance. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. See Car Insurance in a whole new light. Call Liberty Mutual insurance. Were changing the way we do business, with startup ny. Weve created tax free zones throughout the state. And startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. Thanks to startup ny, businesses can operate tax free for 10 years. No property tax. No business tax. And no sales tax. Which means more growth for your business, and more jobs. Its not just business as usual. See how new york can help your business grow, at startup. Ny. Gov welcome back. Its the twominute drill for market veterans. Lets get Steve Liesman who is right in studio. What are your numbers, sir . Its out of my hands. Its the motdle that i created when the government shut down to give you the number. I have 242 on the private sector. I added six for the government which is a random addition. I have 248. Do you want to give us a percentage . 6. 6 2 unchanged. Rick . 199,000. I think the streak over 200,000 will probably end. I have a model, too. I pick what i think is a rational number and upgrade it by 35 to 40 to reflect parttime versus fulltime. Do you want to throw out an Unemployment Rate . Do we care . 0 or 10 it doesnt matter. If its 0 yellen will find more idiot lights for the instrument panel. If its higher shell probably bring back qe. Im not going into central banking activity thats in the field of perverse central banking in my opinion. Most of you are grown up to make your own financial decisions. Thank you, rick. Well see what happens to the numbers in a minute. When we return, it is the number of the month. The august a jobs report. Look at u. S. Equity futures right this moment. The game about to start. Well see what happens to the numbers in a minute. Stay tuned on squawk box for the kickoff of the jobs numbers in a moment. Ing deeply ] [ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath. 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At this point we are on track to have the first down week in five weeks, if things continue today. A lot is riding on what we will be hearing seconds from the labor department. Look at the bond market. Tenyear note yielding 4. 68 . Thats those levels. If youre looking at just under 2. 5 . Higher than we have been in quite some time. Everything riding on whats happening now. Cnbcs Hampton Pearson is standing by at the labor department. He has the numbers for us. This is the moment we have been waiting for. Hat hampton . 142,000. August nonfarm payrolls increased by just 142,000 jobs. The Unemployment Rate, 6. 1 . Average Hourly Earnings increased 0. 2 . Again, the headline number of 142,000 august jobs. Below the consensus in the neighborhood of 220,000. Private sector job growth in the month of august, a gain of 134,000. Net revisions for june and july. Net of 28,000. Job growth, professional and business services, up 47,000. Health care plus 34,000. Construction, plus 20,000. Manufacturing basically flat 2,000 jobs. The Retail Sector lost 8,000 jobs. That was exacerbated in particular in the food and beverage sector losing 17,000 jobs due to a store strike in new england in the market basket. The u6, 12 even. Thats down. 2 from july. Labor force participation basically unchanged at 62. 8 . Longterm unemployed down 192,000 to 3 million or 31. 2 . Of the total unemployed. A flat number, disappointing headline number. Back to you. Real quick, hampton, what do you say about hours worked . Let me grab it real quick. 0. 3 . No, no. Earnings per hour is up 0. 2. Average weekly unchanged. Lets get back to the panel for a reaction to the data. Rick are santelli. Alan krueger. Rick, one thing we have said in recent days is finally the euro is going down because they are going to ease. We know now yellen will stay strong and turn into a hawk. If we get enough of these, do you see the day when we once again disappoint and get out of this early . I have my doubts that well see the type of tighten iing people seem to be surfing. Lets get down to the markets. Whats the knee jerk reaction . Now granted maybe it will reverse. But the knee jerk reaction by speculators and the equity area was to buy a rotten number. Dow futures are down 22. They were down 55. Thats a crucial level. Some of the low rates may be with over. We are back down to 240. The fixed income market, even with price controls on treasury prices. Still accurate. In terms of Hourly Earnings, 2. 1 isnt horrible. Im remiss to see anything janet or dr. Draghi will do will put more money in employee pockets. We read the journal. Wonderful story about how companies in europe cannot trim. They have excess capacity. Right. Of course prices fall. Fuels more wizardry from the central bank. The spiral goes on. Rick, with the roach motel where you check in and you cant get out. The way the exit could be messy, is if they lost control or they just cant get out because the economy doesnt cooperate are. Theyve got to think about new easing or something. That might be given whats happening in europe it might be the more i dont believe it. I dont believe the data. Its not consistent with anything. Its not consistent with ism, not consistent with adp. Not consistent with Unemployment Insurance claims. Heres the intrepid forecast. Are you saying they cut the numbers . No, no. They will be revised higher. There are technical things Jim Osullivan says august is the highest always. We revise higher and august is the most revised. Manufacturing. My gut, i dont know the answer. Hours were up. Manufacturing is the jobs down. It was inflated. It was inflated so the reality is somewhere in between. I dont believe it. Hassett and krueger can i just waiting. Thats my question for alan. Whether or not this changes the general sense of where jobs are now. As mark said this is anomalous. I thought the wild card is whats going on in the education center. Its difficult in august with schools bringing people back. Its positive news. Wage growth for production workers is up 2. 5 over the last year. Thats a positive development. This is a blip. Maybe things were stronger than they seemed before. The underlying trend is around 200,000 jobs a month. I agree. I think you can put it in the bank that if we talk about it next month there will be an upward revision in the 40 to 50 range. The number will be well above 200. The story of the year that well look back on is the job market got ahead of final sales a little bit. I think thats what well see. On the whole issue of skilled workers being hard to find, im seeing advertisements out there for Employment Service companies that seem to be out there Offering Solutions as if there is a problem now. Finding people. You learn anecdote isnt evidence. But there is a lot from the beige book and other places that there is a change going on in terms of hiring in this country. We can check it when we get back to our offices, too. One thing i will be looking for exactly because of what youre saying is are the places like north dakota that have been booming booming less now because they are running out of workers. We can look for it in the details. Most have been high. One of the encouraging things in the last few months is jobs openings have been growing dramatically. Now the number of open positions are back to where they were presession. You know, thats indicative of what you are observing anecdotally and a good leading indicator. Im opening a position at some point. Im going to hire somebody. Its consistent with what steve said. Eventually well have a tight labor market. It will be hard to fill those positions. Given that the longterm unemployed have been leaving the labor force, that will come sooner than people think. Rick being the skeptic should weigh in on this debate. I dont believe surveys. I think they track equity prices and when you look at the manufacturing attrition we have seen, the purchasing managers at left field a little bit bullet proof. They weigh in on the heavy side. When it comes to things like retail sales and gdp, thats a much more quantitative series or set of data points we are dismissing. Things like weather and teachers going back to school, gm, car shutdowns, they happen every year. The same government trying to manipulate Interest Rates cant do seasonal adjustments. I agree we shouldnt listen to any of the numbers. Ricks right that the hole in the bull case has been the consumer. How do you explain the economic numbers, retail sales . It would be almost bullet proof. How do you explain that the futures are now positive based on this awful number . They were worried. Theyre dismissing it. Oh. This is they are dismissing it. Have you been awake the last five years . Theyre not dismissing it. They find new data. God. The point here is that the job market and the economy more broadly is remarkably stable. Zandi, i agree. I dont think thats why futures are higher. I think knee jerk reaction from traderers, it would take them longer to get to the point where they are riding off the number. It started moving higher. Thats a reaction to it. Let the good times roll. They are doing what they think the fed will do. The risk going into this number was for a faster fed. Yeah. You heard people say the forecast is the summer of 2015. Our risk is the spring. True. A number like this very mechanically takes some of the risk off at least for a month. Very are mechanical. Since you are the inversion when a company inverts doesnt it pay the u. S. Tax rate on stuff it sell this is the United States still . Yeah. The money they are losing is what the u. S. Would have taxed other places that doesnt come back here anyway. Correct. Right. So how are you even losing money there . How do you calculate it . I dont understand how that happens. Because we had 30 seconds left and im asking you. How are you losing money when they invert since they still pay the tax rate here . Where are you losing revenue . On the revenue that would have come back to the United States government. That doesnt come back. Depends. For a lot of companies it does. Talk to the ceo about that. Its not about the revenue anyway. Do we have to go . They should hide all the money in secret safes in mcdonalds and walmart. Then nobody in d. C. Will find it. All right. Gentlemen, thank you all. Appreciate it. It was a lot of fun. The president needs to stop dauking and act. We have a guest after the break. Earlier we spoke to the ceo of top shelf tailgate. Well go outside to check out the ultimate tailgating machine ourselves as we head to break. Look at futures after the august jobs report. Squawk box coming back in a moment. Green arrows with the dow looking like it will open 24 points higher. The yellen futures or maybe the zandi futures. Back in a moment. In a world thats changing faster than ever, we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. Welcome back. The august jobs report just coming out. Disappointing, i think. Joining us with more reaction former u. S. Congressman harold ford, managing director at Morgan Stanley. Good morning. What do you make of the numbers . Are you disappointed or taking the zandi view . Looking at the numbers you have to be disappointed. Listening to the analysis on set august has been a time of year where the numbers come in low. Its hard to measure. We have seen revisions. We have to wait and see. On the face of it, i think there is disappointment. Whats your experience as mr. Morgan stanley . I have been on the show several times. I continue to worry about how everyday consumers are doing and everyday working people are doing and whether or not people can find raises and promotions. I dont think the numbers will give confidence. Naturally as you look at the world of finance there is a lot of activity. There is a lot of movement, activity with companies as they are buying, trying to grow and expand. One side of the ledger has a lot of good things happening. You look at everyday folks there is a concern. The number wont raise a lot of hopes. Hopefully its revised up. I want to get to the geopolitical issues. Where are you on inversion. I understand why companies do it. I think unfortunately some in washington tried to paint it the wrong way. If a company is going to buy a company there are reasons why both sides are doing it. There is not a lot of revenue lossment most people understand people are still paying taxes on the u. S. Generated revenue. Some in washington distorted it. They should come together democrats and republicans and get it done. Just solve it, foreign entities will still find our assets more attractive. If we dont reform. Well lose them. Solving it doesnt mean we have to do it piecemeal. It ought to be broader. A band aid. I have been here many times. We should lower the Corporate Tax rate to 25 . What about the way we double tax everyone is this they get taxed in that country and here. So youre talking about a territorial tax approach. I have no issue with that. If you lookt the big proposals from Simpson Bowles to the gang of six, all of them contemplate territorial tax system. If you take where they all agree, democrats and republicans, and put it forward as initial legislation you could get it passed and the president would sign it. A simple thing but both sides can get there. What do they all agree . Let that be the starting point. The other thing they shouldnt do is regulate the internet as a utility. I hope washington will stand firm long term on this common core issue which we have talked about as well. Youre a fan or not . I dont believe the internet should be regulated as a utility. Its an engine of innovation. 21st centurys greatest. Its quite open. I think the light touch should remain. What if i told you it will be more expensive for me to get access for something from google or netflix than somebody else . The market would likely correct it. There are rules and laws to address unlawfulness. Let me ask about foreign policy. We teased the subject. Right. Youre coming on and said you felt the president needed to be more forceful. A lot of people think the president needs to be more forceful. I think arming the ukrainians is something we should do. We are not probably going to be able to allow ukraine into nato without angering the russians more and prolonging this episode. I do think we should provide defensive weapons to the ukrainians to deal with it. The president already there. The other part is the world wants to be with us on this. The president has to be a leader. His administration, when they make points they make it in a clear, compelling way. Sometimes the president is clumsy and awkward in how he says these things. I like the deliberate approach with isis, trying to build a coalition. He has to make a compelling case and not seemingly be all around the map. On isis you think hes been forceful enough . No, i dont. Not at all. You cant come on television and say we dont have a strategy yet. Even if you dont have one. When you listen to his National Security adviser and others giving us a sense of whats happening behind the scenes im comforted. I like the sober, calculated, smart approach trying to build a coalition. Dont get out in front what would you do . I think if you believe this mornings headline that is coalitions are being built. You find outrage this the middle east including our allies. If thats the case they have a place to come to light. You identify the challenge. Put forces on the ground to deal with it. Forces meaning not necessarily deploying. Have an exit strategy. Thats what the president has to focus on. Dont speak if you dont have a strategy. Outrage from our enemies really. The outrage is not just our allies. Even our enemies are expressing outrage. Its a terrible way to come together. But, golly, were buddies with iran on this which is crazy. It shows you how david brooks said it well this morning in the times. At the end of the day a superior vision of islam has to emerge for us to win on this front. We have a shortterm challenge trying to prevent some of the atrocities taking place at the moment. Long term we have to figure out how to be a part of offering, even the if it means aligning not in a long term way but a way we are offering a vision. A way to offer a vision that everyone can embrace. We had four people saying these are fake numbers, dont worry about them, yet the market was turned from down 50 to up 206789 if the market was looking past the numbers and not believing them, why not stayed down 50 and not further . Why not gain 70 points . Why in the past, just stay down 50. Steve said the same thing. Anticipating a big number. Thats dangerous. Were all counting on her following through. And a better economy. Right, and following through on this. How does she not . Exactly. Im asking you. We had people in here say the first rate hike is not until late 16, and we laughed at them. Maybe more and more likely. Well, i dont know. Thank you for being here. Ed good egood to see you. Millions of dollars in the bank, earning half a percent Morgan Stanley money, earning half percent. Its in equities, baby, and janets helping. Resemble a quarter of what youre saying. All in sun corp. Family dollar rejecting a revised proposal from dollar general, cramers take in the latest twist of the deal saga. Thats next. Coming up on monday, squawk market master, the ecbs surprise move, plus arn Arne Sorenson on the pulse of the consumer. Back on the farm. Were leaving paris and going to the farm next week. I dont know how to do that. I like this place. I do too. I know, i do too. The ats is more than a validation of your achievements. Its a powerful reflection of your drive to succeed. So, forget the gold watch; grab the brass ring. You dont need anyone to tell you that success is yours, because youre busy. Seizing it. Drafting it. Tuning it. Making it. The new 2015 cadillac ats. With the top speedou compare of comcast the top speed of business dsl from the internet. Phone company well, theres really no comparison. Why pay more for less . Call today for a low price on speeds up to 150mbps. And find out more about our twoyear price guarantee. Comcast business. Built for business. Another twist in the dollar store saga, the board rejected a revised proposal from dollar general, hard to keep straight, citing antitrust issues. Jim cramer joining us now, three players there, i dont know, jim, im more interested in this discussion were having. So either the market shrugged off what they dont believe are bad jobs numbers, or the market thinks maybe it puts the fed further out on when it does the first increase. I would figure if the markets down 50 and says, oh, i dont believe the numbers, it stays down 50. To move 70 points upward, isnt that more of the same of just traders love the fed . Yeah, i think it is. Mr. Zandi is good, when he said, look, the number, i dont believe it, i cant fore say, you know, you dont know what youre doing. Hes tooed go egood. Thats why you have him on. We had the paychex ceo on, they are trying to figure out what is the right move. I think theres a bit of a pause, but i think the economy is strong in the country so hard to reconcile the numbers. Right. The fed didnt look and say, well, lets put off the first rate increase, put it off a couple months, did they . Well, i think the fed theres no reason for the fed to do anything other than the fact they should appease people who come on shows screaming they should do something. Deflations actually decreased. On a micro level, deflation peaked in june. Theres nothing until people are participating in the labor force. The hours worked were not that strong. Look, there are questions. Its just that when we have auto nation on and some of the great retailers of yesterday, its very confused. Affordable care act is difficult to figure out for businesses. Maybe theres a freeze. Okay, all right, jim. Youre right down the street. I know. Feel like were neighbors. See you later. Kicking off the nfls Opening Weekend tailgate style. Giving you a tour of the ultimate tailgating vehicle. I wish. Please, please, please, please, please. [ male announcer ] the wish we wish above all. Is health. So we quit selling cigarettes in our cvs pharmacies. Expanded minuteclinic, for walkin medical care. And created programs that encourage people to take their medications regularly. Introducing cvs health. A new purpose. A new promise. To help all those wishes come true. Cvs health. Because health is everything. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Dad hes our broker. He helps looks after all our money. Kid do you pay him . Dad of course. Kid how much . Dad i dont know exactly. Kid what if youre not happy . Does he have to pay you back . Dad nope. Kid why not . Dad it doesnt work that way. Kid why not . Vo are you asking enough questions about the way your wealth is managed . Wealth management at Charles Schwab ready . Go. You know, tailgating first try. Tailgatingss popular, but football season, its more popular, 15 billion a year in the industry. I got a fillet mignon sandwich. Have a good weekend. Have a good weekend, everybody, see you monday. Good friday morning, welcome to squawk on the street, im Carl Quintanilla with jim cramer and david faber. The smallest begin since december, futures mixed, well see if the s p avoids first fourday losing streak of the year. Our road map begins with a question, is the economy stuck . The jobs number revealing growth slowed to the lowest level