The dow up 75 points. The nasdaq up by 28. Weve got a couple big stories that were watching this morning. San francisco fed president John Williams said last weeks fed decision to hold rates steady was in his words, a close call. Increased concern about the Global Economy in the Financial System led policy makers to wait on a hike. We will see how long that wait lasts. Jim bullard awaits and says its too influenced. President bullard will be joining us right here in studio for two hours this morning starting at 7 00 eastern. Weve got a lot of questions for him. We should tell you this news and does. There was one dissenting vote but bullard was not a voting membership. Anybody who says this is a fed that is unanimous or united in this is going to hear a little bit of a different story today. I kind of wish he you know, i kind of wish it wasnt preaching to the choir. I feel like arguing with someone. Talking to him, you know, well probably get some agreement. It will be like, dont, you know, dont yell at me. Yellen at me. Yellen at somebody else . I mean, if he was on the other side my first question im still going to ask him my first kwu. You have a dual mandate at the fed. Could you list the top ten reasons that you didnt . Because thats what theyre doing. The secondary mandate, inflation. I dont need to pin him down. But theyre nowhere near their inflation target. The dual mandate thats not what they talk about. Not only have they got inflation. Theres ten reasons. I can list ten that ive heard. China. Theyre worried about exporters not being able to her worried about dont think that that market turbulence, the vix didnt have something to do with it, weakness in the chinese economy, emerging market weakness if we raise. There are ten things that they theyre so bogged down in the minutia of what they think theyre doing now. They feel responsible for the Global Economy at this point, too. Well, thats ludicrous. Youre going to be stuck forever. It makes me scared that we have these people that have been appointed and that, you know, suddenly have taken on, you know, so much responsibility in their own legends in their own mind when thats why there should be a rulesbased system. Thats why john taylor is probably right. Its so subjective. You get some whacky person in theoretically. I dont know, dan. Well see how history judges her. What if you got a total screwup in there able to do whatever he or she wants to do. Its a big job. There should be some type of oversight or rules going into it. Nice Market Reaction. Yes. The fed selloff here in the United States friday spread overseas as well. Yeah. Then the enablers say, would have been down 1,000. Would have been down 1,000. You want to talk about just tell me when youre finished. Well talk about something youre interested in. Go ahead. You can do it. Why dont you do it. No. No. Please, i beg you. We were on a plan. You have an editorial on this . No. Go ahead. Okay. In deal news, zurich has a maybe you want to talk about carly again. We can do carly. We have time today. Got to watch carly. Dialog semiconductor buying atmel, 10. 42 share in caps and stocks for 4. 6 billion. Thattest a 46 premium over atmels close. In other news. Barry sternwick is in talks to merge with privately held colony homes. The wall street journal says a deal can be announced as early as today and would value colony at 1. 5 billion. Apples ios hit with a number of chinese apps. The company is saying its cleaning up and removing ma lisch shugsz plans. A tool that developers use was modified by hackers to put bad code into the apps. In overseas training this morning, volkswagen shares dropping the most in almost six years. This comes after u. S. Authorities accused europes largest automaker of falsifying emissions data. Willford frost joins us. This is a shocking story. Usually its hard to pinpoint. In this case it seems a little hard to get your head around exactly what they did if it wasnt for cheating on these tests . Absolutely right, becky. Big news over this side of the atlantic. The crucial thing being intend not that management made an attempt. Volkswagen is down 21. 3 . Opened down 9 and has weakened on trade. Porsche down sharply. Bmw, diamond down 3, 4 and the french autos also down sharply. Why is this moving happening . The u. S. Environmental Protection Agency has accused volkswagen of fitting half a million cars with special desiess to cheat. The german car maker could face a fine up to 18 billion. Now the ceo, martin vintercorn saying hes looking at it. Bernsteins Equity Research team published a note this morning stating that this is not a usual recall issue. Because of that issue of intent that ive already mentioned and could impact earnings to the tune of 35 euros per share. Hence, shares off some 21 . Back to you. All right. Will fred, thank you so much. I dont know if you saw the news on this. The software was written so that it could detect when you were actually undergoing eye missions tests. It would change the performance. I like it. The only reason to see for the software written is to cheat the test. I have never seen anything like this as a recall. Reading through, youre kidding me, right . What were the emissions . Emissions standards . Sulfur and because theyre diesel cars. Diesel fueled engines. Its bad stuff that leads to asthma, leads directly to smog. It is bad stuff that theyre trying to keep out. If you strip it to beat the emissions. Youve got to hand it to them for thinking of it, you know . To be able to tell such a bald face cheating and lying. Youve got to be kidding me. Doesnt happen in real companies. A Little Washington news this morning. The clock is ticking. The next fiscal year begins at midnight september 30th. Congress needs to pass a short term continuing resolution for that funding deadline or face another shutdown heres what jpmorgans Ceo Jamie Dimon said sunday morning. You guys are compromising your families, your friends, democracy is a compromise, its not a dictatorship. Anybody who says my way or the highway on one issue isnt necessarily thinking of the United States of issue. A Government Shutdown is just bad management. Diamond suggests the u. S. Ee corn my would have grown faster without the washington deadlock, Government Shutdowns and immigration. Lets get a check on the markets this morning. We showed you those futures. They were performing better than on friday. Right now theyve given up a little bit already. Dow futures up by 57 . S p futures up by 4 point be point 5. Nasdaq up by 21 points. Last week the markets were relatively flat. Dow down by 3. 5 . Why dont we check out whats been happening in europe and some of the early trading there this morning. This hour the dax is down by 3 4 of a percent. The cac is up by that much. The ftse up by. 4 of a percent and in asia you saw continuation in the selloff weve seen here in when came to the nikkei. Hang seng was off by 3 4 of a percent. The shanghai which seems to beat to its own drum was up. Wti oil prices looks like theyre up by 1. 6 , 45. 41. Checking on the bond market youll see that the ten year is yielding, yeah, 2. 518 . Yield under pressure. Foreign exchange up. The dollar yen at 120. 25. Finally, gold prices this morning, they barely budged. 1136 an ounce. Joining us, steve blitz at itg investmentment and mark grant at southwest securities. Start with you, mark. And mark t at southwest securities. Start with you, mark. And mark at southwest securities. Start with you, mark. And mark at southwest securities. Start with you, mark. And mark t southwest securities. Start with you, mark. For a while youve talked about the ten year never going back up like we think its going to go up. A think at some point you think were headed back under 2. With that in mind, i think that your Global Forecast for growth is probably below what a lot of people think or hoping that we get. Therefore, im not sure that you think the feds decision was incorrect. You probably think theyre just responding to what is a very tepid environment globally, maybe here, too. Yeah, joe, i think thats correct. I do not have a good outlook on Global Growth. The fed, as you know, in their last minutes lowered their expectation for inflation from 0. 7 to 0. 4. I predicted a while ago we were going back under 2 . We did just that. We got to 1. 97. We backed up a little. My big concern for the whole year, joe, is that weve gone nowhere. I mean, the treasury started at 217 for the year. 2. 17. Were down 8. 2 in the dow for the year. Its been a year of absolutely going nowhere. I think maybe the most disconcerting thing if you just consider the facts is that Monetary Policy, as accommodative as its been around the world, looks like it really hasnt borne that much fruit which sets us up for the next time something really serious happens. Weve exhausted what we can do. Were at zero. Weve tried qe1, 2, and 3. This is what weve got. What do we do next time . There will be another slowdown and central bankers arent going to be able to save us next time. I agree with that. As a matter of fact, while for instance in america when we had quantitative easing, the equity markets went up. Interestingly enough, the quantitative easing sings they began in europe, theyre down to about 600 billion in their equity markets. I think thats in the journal today its not working. Eurozone nears limit of what Monetary Policy can do. Theyve been trying and trying and trying and not getting maybe we did get some desired effect. We got some wealth effect from putting asset values in the stock market up to what some people think are high valuations. Where are you on this, steve . Do you feel better than mark does . I wish i did. Is it would make it for better morning television. Maybe not. If it bleeds, it bleeds. I guess. There are two things i want to say what the fed did and did not do on thursday was the reason why the equity market fell off is a bit of a faurls narrative. Why did it fall off . Well, i think they just came back to recognize that the equity market is starting to have difficulty in october. Going off in august. The big issue, a slowdown. The global earnings from the rest of the world is slowing down. That has to by mathematics lower the level of the equity market. Thats whats going on. Janet yellen basically told them what everybody knows. There isnt a fix for the central bank to do against that. All they can do is what they did which is by not allowing the dollar to go big, it said, okay, were not going to hurt translations for american firms and were not going to cause more pain than already ongoing in emerging markets. The dollar went up after that. We were at 114 so that didnt help. The stock market, they didnt get any of the desired effects. 5. 1 , youre already seeing theres very little benefit to staying at what is nowhere near normalized rates. If you see its not working thats the definition of insanity. The second part of the story is this. I agree its insanity. The insane aspect is there is no inflation mandate. The infliens plan date, when it was initially put in to be a governor of what the fed can do dsh. Wait a second. Under greenspan that was the only mandate he paid attention to. Forget about unemployment. Inflation being too high trying to get it back down. There isnt a point forecast in to make it 2 . If youre dealing with no inflation you can be looking or eventually becoming a situation in japan and thats probably the concern. The concern is that you go back any area in the u. S. Economy since the late 60s is growing on the chicken and egg in inflation. The problem with zero inflation. The world, is it that its not safe for leverage . If you got a sharp deflation youve got that debt deflation cycle. Its not so thats theyre trying to make the world safe for leverage. Its not an issue that 2 is some sort of magical number that they need to get inflation up to. There is no mandate. The u. S. In the mid 70s when they started this mandate you said, okay, weve got full employment and 1 inflation. Is that a problem . No. Grant, i hope youve given up on greece. I dont blame you for not getting that right. They elect a guy thats not going to do anything for austerity. Then he decides hes going to do the aus sterts at this. Then they reelect him in a landslide for whos going to do the austerity. I have no eye idea how to put in the hard parts of that agreement with the e. U. , right . It was the opposite of why they elected him in the first place. Thats correct. Give up on that. Just a joke. Its just ridiculous what the eu has done, lending them all this money that they kabtd pay back. This guy is running around saying one thing in the graek greek press, another thing in the european press. Hes saying no austerity. Now we want to renegotiate the debt. Germanys not going to renegotiate the debt, restructure. Stupid. Whole thing is dumb. At least weve got when we do elections here and primaries, we do it in a way to hold our head up high the way its going the rest of the way here. We dont have crazy election stuff happening here. Thank you. Thank you. Mark, see ya later. Thanks. Take care, my friend. Speaking of which speaking of which, when we come back were going to talk about some new poll numbers showing Carly Fiorina jumping to number two in the gop president ial field. Well ask if dump stays with the numbers. Hes still leading. As we head to break heres a look at this kate back in history. Ate back in history. Date back in history. The eclass has 11 intelligent driverassist systems. It recognizes pedestrians and alerts you. Warns you about incoming crosstraffic. Cameras and radar detect dangers you dont. And it can even stop by itself. So in this crash test, one things missing a crash. The 2016 eclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Welcome back to squawk box, everybody. Chinas president xi jinping is headed to the United States. Unit joins us. There definitely are plenty of them. The chinese president and president obama has a lot to talk about. The chinese president will be heading to the u. S. At a very tense time between washington and beijing. The United States is considering sanctions against some chinese individuals and companies that could be engaging in cyber espionage. Then on the chinese side china has been more assertive in the south china sea. That is frustrating many individuals who believe they need to be more forceful in the area. Another threat that will be interesting to watch is that the chinese president is heading to the u. S. At a particularly vulnerable time for him on the economy. A lot of u. S. Investors have been changing their outlook over the chinese growth and have been more and more concerned about governments commitment to reform. During the sevenday trip the chinese president is going to be head to go seattle. Hell be touring boeing as well as microsofts abilities. Hell be meeting tim cook. Hell be meeting with president obama for a state dinner and heading to new york for his first speech at the united nations. A lot of speculation is that the u. S. And china could make some progress on the bilateral investment treaty which has been dragging and that they can come to some sort of a deal at Cyber Security, some sort of accord. A lot of people are pessimistic about any inclusion on commercial cyber theft in that accord. Eunice, thank you. Its a long week. Well check back in with you soon. Okay. Lets tell you about some other global news going on this weekend. Weekend elections in greece and Alexis Tsipras is returning to office after a decisive victory. Coming even after party radicals turned their backs on him last month after he had agreed to austerity demands to secure another eurozone bailout. Back here in the states, new poll numbers. Donald trump is slipping a little. Carly fiorina surging. Ben carson being pushed to drop out of the race after a controversial comment about muslims. Nbcs tracie potts has the latest from washington. Reporter the first big pole after last weeks debate shows Carly Fiorina surging from 3 to 15 in second place behind donald trump. As people come to know me, who i am, what ive done, most importantly what i intend to do, they will support me. Reporter fiorina replace dr. Ben carson as number two. I would not advocate that we put a muslim in charge of this nation. I absolutely would not agree with that. He said that on his own. That was what was just startling. Reporter it came just days after trump failed to correct a supporter who called president obama muslim. Hes not. Trumps reply seemed to support getting rid of muslims in america. The fact is there is a problem with some and it is a very severe problem. He is fueling a level of paranoia and frej dis. Reporter tracie potts, nbc news, washington. Outraged at some of the rhetoric around did she call the gop candidates terrorists . No. No. Never mind. That was something else. That rhetoric was okay to ramp up. Youre not cool with the its very clear in the constitution that religion can have nothing to do with whether youre able to serve in the office. Ron barron was doing jumping jacks. Religion, race, creed, color you cant be that way. What was the question . Did he come out on his own . Later i think he said what he was trying to say was that the American People probably arent going at this point to elect a muslim. Different from what he said . Way different from what he said. Exactly. Boy, i just watching hillary, she just was really troubled by that comment. Very troubling. Very troubling. But there is a line that has to be drawn. She didnt draw the line when she called the gop candidates terrorists. That crosses the line as well. Exactly. They all are doing it. When they feign the outrage. Position heal myself. She was called out on that as well. Right. When we come back, weve got a lot to talk about. A drug goes from less than 14, if you believe this one, a tablet, to 750. 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