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tv   Squawk Box  CNBC  September 4, 2013 6:00am-9:01am EDT

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and andrew ross sorkin. let's set up today's agenda. in washington, the senate armed services and foreign relations committees will hold closed hearings to receive classified intelligence on syria. they could vote as soon as today on the syria authorization bill. in the meantime, the house foreign affairs committee will convene a hearing at noon to hear from secretary of state john kerry, defense secretary chuck hagel and martin dempsey. we'll have more from ayman jabbers in d.c. also, president obama arrived in sweden this morning. he'll be holding a news conference at 8:30 eastern time with that country's prime minister. it is safe to assume he will face questions on syria. we'll be monitoring all of that and bringing you the highlights as they happen. plus, on the economic front today, a few releases of note for the markets. 8:30 eastern, international trade. then this afternoon, we get the fed's beige book. and throughout the day, the nation's automakers. they'll be reporting on august sales. in addition to covering all of these stories, "squawk" has one
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all-star la all-star lineup of our own. bob kraft of the patriots. the star quarterback tom brady, jonathan tish and woody johnson. and the nfl's commissioner roger goodell and the show will be building all morning to our newsmaker of the day, cbs president and ceo les moonves, very interesting to hear from him, particularly after this news of settling with time warner. >> it is a pretty big lineup this morning. we have corporate news this morning to talk about. bank of america is selling its remaining stake in china construction bank. it did that for $1.5 billion. b of a ending the 8-year-old investment and making a lot of money in the process. generated a paper profit more than five times the original cost. also in the news this morning, jpmorgan and two former bear stearns managers have won the dismissal of a lawsuit. bank of america had accused them of causing heavy losses by lying in a desperate bid to prop up
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with failed hedge funds. we have a lot of wall street legal news. jpmorgan agreed to pay $18.3 million to settle a mortgage related suit. that suit claimedscquired by be stearns. the settlement is one of several class actions they agreed to resolve related to option adjustable rate mortgages. that comes after jpmorgan bought bear stearns. there is debates about whether the government should be going after jpmorgan. you know where all this goes. joe. >> no picture of moonves. saw the other guys. >> isn't he up on the board? >> he wasn't there. >> he's technically not a football guy, but really is a football guy. >> why would you not show him? he's good looking and jonathan tisch. >> that's an handsome man. >> he was a actor before he was a great ceo. >> central casting.
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>> he was an acting. >> right out of central casting to ceo. i'm looking over there because you're over there. >> i'm looking over there because you're over there. >> you're off camera, both of you. look the opposite ways. >> i'm looking at you -- >> you're looking at you. you're looking at me. get over here so i can look at you more closely. >> you're going to make him want to stay away. >> sit down. have a seat. take a load off. few after the bell movers. linked in shares fell after the company announced it planned to sell a billion dollars of stock. i like that. in a follow on offering, the firm says it will use the proceeds to increase financial flexibility. and may use some of the funds for acquisitions. if you raise new money, but we interchange the terms. >> and remember when everybody said the banks had taken linkedin for a ride? >> i don't remember that. >> they had their ipo. >> all i know is when people ask me --
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>> when ilinkedin had the ipo, the stock surged and everybody said morgan stanley did a horrific job because they left too much money on table. but they sold and now you sell the rest of it or -- >> this makes sense to me why they -- i would always want to -- the remainder to be worth a lot more. i like a lot of -- i would like -- i would like my 90% to be worth more than my 10% i sold on the ipo. all i know about linked in is people keep asking me, let me do -- i'mlinkedin. i never will be. so don't ask me again. you're supposed to never say yes to someone. >> it is actually pretty good. >> no, we both do it. >> you have people and say yes, send me your stuff? >> no. not if i don't know you. >> it links you in on your circle so when you're digging through the pages, you can see who knows who. it is interesting.
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i'll help you. >> i need to give you permission to do that. no. why don't you set up a joe kernen hair account to match my other account? h & r block reported a larger than expected quarterly loss as expenses rose. revenue missed the mark. the company says it is not likely to close on the sale of its banking unit before the end of the month because it hasn't received the necessary regulatory approvals for the transaction. another hedge fund hiking its stake in jcpenney. glen view capital management is more than doubled its holdings in the retailer to 9.1%. and in other investor news, carl icahn had roughly halved his stake in haines celestial. all the way down to 7.5% from 15%. standard and poors says the government filed a fraud lawsuit against it in retaliation for its 2011 credit rating downgrade of the united states.
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>> you knew this was coming. >> yes. in a legal filing, s&p argues the lawsuit attempts to punish it for exercising its first amendment free speech rights and is seeking excessive fines in violation of the eighth amendment. they want it dropped with prejudice. s&p was the one that lowered the rating. >> when the case first came out, i remember talking to some sources, people around the suit and this suggestion was -- >> what is made of -- i remember that too. >> on background -- >> people were making it even bolder. >> nobody from the company wanted to -- >> but -- >> no, no, you can never say this on the record, can never possibly come out and say this. >> they're not. the lawyers are. >> well, here we are. >> yes. the day it happened, that was immediately what people said, is this retribution? a check of the markets this morning. the futures this morning, you're going to see, are indicated slightly lower. down by 16 points.
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yesterday we saw a big rally on the futures early in the morning, petered out. markets ended closing up, but only a gain of 23 points for the dow. also, take a look at what is happening in oil. this is a story that is entorely tide to syria. crude oil yesterday was up at $108. today, down by 80 cents to 107.74. again, everyone focusing on what is happening, potentially with syria and then with the surrounding countries in the middle east. the ten-year note, picked up quite a bit of steam yesterday. the yield was all the way back above 2.91%. this morning, yields slower at 2.876. but, again, we have been watching that yield push right and hover around 2.9%. >> the dollar yesterday was up versus the iryes for the fifth straight session. this morning, it is down a little bit against the euro, 131.74. yen at 99.56. the dollar is a little weaker against the pound and finally, gold, which we also have been watching very closely as this talk of syria continues to
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circle, gold yesterday returned above 1400. you can see it is down by $7 this morning, still above 1400. now time for the global markets report. ross westgate is standing by in london. good morning. >> becky, very good morning to you. we have been meandering lower. we're at that session low. 8 to 2 advancers outpaced by decliners on the dow jones stoxx 600. fairly good data again, strong data out of the uk. that translates to the prices now for the ftse 100 and the xetra dax and the rest of the markets, down two-theirds of 1%. break that down into sectors, looks like this. only one a couple up. telecoms on the benefit of nokia and vodafone. oil and gas, prices steady. autos down 1.3%.
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weakest sector is travel and leisure. we have elevated oil prices, threat of middle east action will cause investors to be nervous. we heard from ryanair today. this is the biggest low cost carrier down 13%. they also came out and said they might miss their guidance. and it has been the most profitable airline as well. air france, down 3.2%. easy jet down 6%. and iag, down 4%. the airlines taking it on the chin today. we did have good data, though, today, particularly out of the uk. gilt yields higher above treasury yields 2.87%. the yield earlier on gilts after the services sector activity according to the pmis at the best now since december 2006. stronger than expected higher than july. the composite pmi above 60 for first time ever. they started in 1998 and orders are filling up their fastest
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pace since may 1997, when tony blair became prime minister. so, again, very good strong data, bank of england meeting tomorrow. one thing of note there, jobs growth, the pace of jobs higher. we now in the uk as well have a target for employment for forward guidance, which is sort of getting where we are in the u.s. just did dip below the flash number. that's where we stand. ten-year bond yields higher as well. that's it. back to you. >> thank you for that report. we'll talk about some other geopolitical news, back to syria on the discussion in congress this week. ayman jabbers joins us. >> john kerry returned to capitol hill yesterday and to the committee that he used to chair. the senate foreign relations
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committee. and made the administration's best case for a military strike on syria in retribution for that country's use of chemical weapons against its own citizens. kerry said this wasn't just about syria, america's potential enemies around the world are paying attention. take a listen. >> iran is hoping you look the other way. our inaction would surely give them a permission slip for them to at least misinterpret our intention if not to put it to the test. hezbollah is hoping that isolationism will prevail. north korea is hoping that ambivalence carries the day. they're all listening for our silence. >> the senate committee is working on a draft resolution that could vote on as early as today. that resolution would give the administration a 60-day window for a strike on syria with a possible 30-day extension to that and also expressly say that
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no american boots on the ground would be allowed in this conflict. senator kerry -- secretary kerry went out of his way yesterday to reassure the senators that there would be no boots on the ground in syria, but bobbled that a little bit saying he didn't want to close down any options that a future president of the united states might have and then returning to the point later an saying, no, in fact, we will not put boots on the ground in syria. a little confusion on that point, but the secretary of state coming back to it and saying no boots on the ground here. >> i think that's the biggest question, though. the idea if the congress goes ahead and approves this, it is probably not the end, but the beginning of something. how can you guarantee even with this new language that mccain helped write, even with the new language of 60 days and extension possible, another 30 days, how can you guarantee you're out after that? you don't know how other side will respond. >> that's the point kerry was making. he was thinking out loud here, something you never want to do in a senate hearing.
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but he said, look, if syria -- if the situation really falls apart and the whole country falls into chaos, maybe we might need boots on the ground to go in and protect some of syria's weapons of mass destructions and other things that might destabilize the entire region, but back tracked and said no boots on the ground, at least with respect to the civil war there. he kind of parsed it and hedged it a little bit. >> susan rice was on with brian last night and asked a question what happen if it doesn't pass and she said we're not even considering that possibility. but i saw a lot of thing yesterday that said 80% against. i don't know whether those are -- i don't know whether those are sources that have an agenda, and other people say, look, the leadership -- those guys, they may be saying, yeah, we're behind it, even though the rank and file might be -- they have to sort of say -- and then eric cantor, a big israel
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supporter, he's got to say it. i'm looking at a dredge poll -- >> president obama will be responsible for counting the votes. >> those are right wingers, like a drudge. 644,000 -- it is not a scientific poll, 644,000 say no. that's 91.49%. 59,000, yes. so that is just in percentage terms, that's 91.49 to 8.51. these guys aren't stupid with their constituents. if they -- where do they get cover from public opinion when they're just -- they're not the speaker of the house. ha they're just some small time guy and representing his district. >> this poll is badly in the unscientific polls and polls badly in the scientific polls. so far it seems clear the american people don't have a whole lot of appetite for military actions. but the leadership does. speaker of the house john
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boehner, white house immediate meting yesterday, he supports the president's call for action and will be a test here of whether these leaders up on capitol hill have any followers on capitol hill because of the political dynamics, you're right, they might not have as many powers as you think. that's why this is not necessarily a slam dunk for the administration. it seemed like they were gaining headway through the day yesterd yesterday. >> i was surprised to see the journal support builds, new york times, it is house leaders express support. gop chiefs endorse -- but both sides you got the libertarian types and the conservative side that aren't going to go along with it. and we know on the left how many of -- no matter what, they don't want to any type of -- their war fatigue and people didn't approve of iraq. >> this shakes out politically in a different way than we're used to seeing on capitol hill. you have boehner supporting the
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president. you have secretary of state kerry making the case for military strike, that's not something you're typically expecting to see here and then you're right, on the right and left wings, you're going to see a lot of opposition to this. this is not the same politics of gridlock that we have seen on capitol hill, but might end up with something that looks a lot like gridlock but with a different coalition of votes. >> is it 50/50? i don't know. >> we'll find out. >> i don't know what -- i'm not saying let's do it, let's do it, let's do it. >> i think it depends. >> where are you? even if it doesn't do much, you have the possibility that it messes things up, and if you, you know, it is like the benefit seems small for what you're trying to accomplish. and the possible negative consequences. >> had is the red line, can't cross it, it does -- >> congress didn't say that. >> the country is held responsible. that's why i think you're seeing so many republicans actually
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join the president, right? the country will be held responsible for his -- >> country at 90%. >> here is what secretary kerry said yesterday. he was asked about this question of unintended consequences, what happens if you do this, and things, you know, go to pot over there. what he said was, look, we don't necessarily know what happens if we do this. if we don't do this, he said i guarantee you that assad will use chemical weapons again at his people and will be held accountable for that. we have a moral obligation, he said. >> brian, last night -- >> you can strike on tuesday and use chemical weapons again on wednesday. no guarantee you can totally eliminate his -- >> another thing brian asked, susan rice, so the last 1500 were putting our foot down, but the first 110,000 people that died, they're dead, they died a different way, but now we're -- >> people in africa could say the same thing. >> the line seems to be what type of weapon you use to kill civilians, not whether or not
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you're killing civilians, which is a weird and strange place to be. that's where we are. >> thanks, eamon. you haven't seen anything, we're going to tell you what some well known consumer products cost over in china. plus, on this day in history, 15 years ago, internet search engine google incorporated into a privately held company by stanford university friends larry paige and sergi brynn. >> i wish i was there. >> you wish you were the third friend. >> yes, i do. >> you wouldn't be here. as we head to break, let's check the national forecast with the weather channel's alex wallace. >> good morning, guys. going to be a pretty nice one across the northeast. we're watching a cold front march its way on through. behind that, cooler and dryer air we'll find for the latter part of the week. starting it off into the interior for today, with the 70s. tomorrow, new england, boston, 68 degrees for your afternoon. so morning temps chilly and warming up to the afternoon to
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comfortable numbers. we're enjoying the benefits in the south from the cold front now, along and ahead of it, gulf coast showers and storms, but north of the front, dryer air masses settling in. will feel nice in places like charlotte, atlanta, birmingham as we head through the week. mostly sunny and dry conditions while we're heating up, though, in the middle of the nation, big ridge building here. temperatures are expected to be anywhere from 10 to 15 degrees above average. that's the latest here on your morning forecast. "squawk box" comes back in a bit.
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time now for the executive edge. this is a daily segment focused on giving business leaders a leg up. we start this morning with the new york times piece that says paid vacation son the decline. ten years ago, 82% of american workers reported receiving paid vacation days. today that share is down to 77%. the biggest declines occurred for people working part time and for people working at establishments with fewer than 100 employees. gentlemen? >> i don't know how to think about it. part of me as an employee wants to say we should have more vacation. >> i think you should get some paid vacation. >> we should get more vacation. we have a debate on this set all the time about the other issue, do we want hourly wages to go up? if we were to have a higher minimum wage, that would mean less jobs. >> i think it tells you something about american society about the haves and have-nots.
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and the separation. the economy is improving, but if you look at people who don't have a college degree, something like 11.6% of them are unemployed. if you're an african-american, something like 12.6 are unemployed. it shows the bifurcation. >> i saw it in the huffington post last week, that's the idea, during labor day, and it was deposited by someone at the huffington post, why shouldn't every monday be labor day where you have it off? a measurement of how a society progresses is how long you work. 50 years ago, there was a time where you had to concentrate on surviving, 80-hour workweek and it has come down and you can measure it. over in europe, down to 35 hours. there are some people say, there was a famous -- who said as long as anyone is looking for a job, as long as anyone doesn't have a job, you shouldn't be at five days. go to four days, everybody can
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have a job. that's the idea they have. i haven't thrown my weight behind this completely yet. >> what's your real view? >> it is absolutely ridiculous not to want to be productive and to move forward and create great companies and do innovative things and move society forward. >> what do we do about the part time employees? >> that's a different issue. i don't think this would work. but there is a whole attitude that in europe, you work to live, you work to live. here we live to work. and it is somewhere in the middle i guess is probably -- i like our ethic in this country. >> i love spending time home with the kids, but i do think -- >> that about a four-day -- three-day weekend every weekend. you were plotting that yesterday with your vacation days that you have. don't act like you weren't thinking about it. >> tempting. >> instead of two weeks that
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would -- >> break it up. >> four-day weeks for the entire summer. the wall street journal asks why are items pricier in china? a few examples where consumers pay a dollar more for a latte at starbucks. a basic ipad $488 in china. the u.s., it sells for $399. a cadillac escalade hybrid, $229,000 in china, over $73,000 in the united states. clothing on average about 70% more expensive for consumers in china and there are some exceptions. a can of coke, for example, is almost half the cost in china. among the reasons kritd f s cit higher prices, import tariffs. consumers in china are said to be pushing back. that stuns me. >> the gouging has been going on
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forever go to brazil, same story in terms of the vehicle. the car one is the striking the example. that is really an import tax issue. >> three times the cost. >> same kind of thing, you go down south america, same story, across the board, want to buy the car, with to teletime thre much. >> if they have the tariffs -- >> simple supply and demand, on the black market, might be able to get all of these thins but it costs a lot more. >> this is all going to end eventually, everyone will be able to get the stuff shipped. jeff bezos will find a way. >> amazon and will do advertising in the post, show you how to do it. >> washington post. >> we have a political story for you. dreamworks animation chief jeffrey katzenberg is throwing political might behind the effort to unseat mitch mcconnell. the hollywood reporter says katzenberg decided to maybe the kentucky senate race the focus of his efforts during the 2014
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midterm elections. he's supporting kentucky secretary of state alison lun r lundergan-grimes. >> in kentucky -- >> how much can hollywood sway kentucky in. >> which way do they sway them? foreigners coming in here trying to tell us -- >> you read the letters he's sending out, calling him mr. filibuster. >> it is annoying, but you got -- >> bloomberg in alaska, remember? >> and on the other side, you got sheldon, the coke brothers. they're all annoying. it is like stay out of it. >> stay out of it. it is not fecting you. it is not your home turf. >> make some decent movies, you know? >> there is a good call. >> where every single villain is in an oil company or ceo. when we come back this morning -- >> the cartoons. >> i'm telling you. did you see the -- all the recent ones?
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that's who the villains always are. always. >> cars 2. i saw that recently. >> an oil company. >> i know every single -- >> we're still on the first cars. >> you put the new york times story at the top of the executive edge. >> andrew has been playing. >> yeah. andrew. the new york times, every day it is the new york times. >> second story was the wall street journal. >> i did not recommend this story. i thought it was a fascinating story. >> you're welcome, ponch, pinch. we'll talk about the events likely to sway today's trading action. and why oracle team usa found itself hit with major penalties in a america cup cheating scandal. our newsmaker of the day, cbs boss les moonves on how the media giant settled its dispute with time warner cable. he'll join us live. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550
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all right. all about the hair. making headlines, samsung is hosting a big event in berlin and new york today. new product launches are expected. a senior samsung executive confirmed last week they will ungau unveil the dplacgalaxy gear sma watch and the note 2 tablet which they spent a lot of money on this. going to be called the note 3. >> you mean on the branding issue. >> no, on -- >> you think it is a newspaper or what? >> coming up with the name. the one that came out of the note two. the watch. it's big. >> i don't know if i want it. >> i want the iwatch. >> i think they must -- if samsung is going to announce it this week, they must think it is next tuesday, i think, is that september 10th, that's when apple is supposed to announce the phones or have this big
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unveiling of something. >> trying to one up them. >> maybe on the phone, but maybe they're worried they think there is an iwatch coming. >> did steve jobs leave instructions about certain little style and design characteristics of the -- >> i don't know. walter isaacson, his comment on the tv, but not on the iwatch. >> can we defer to tim cook to do it right? i guess we can, right? >> with johnny ives, they should be able to come up with something. >> i don't even -- >> rolex is no good. >> it is fine. it is self-winding. i have to set it every time i wear it. >> there is a rumor in the rumorville online that rolex is teaming up with samsung to come up with a very fancy version. we have some other global news this morning, including the global semiconductor sales group, $25.5 billion in july, up from 5.1% from a year ago.
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>> larry elson's oracle team usa suffered a major setback in its effort to retain the americas cup. yesterday, an international jury docked the team two points and kicked three sailers and one shore crew member out of the event. the penalties came after oracle's boat racing in a preliminary event was found to have illegally added weight on board. the americas cup final begins on saturday, but -- >> i love larry ellison, but they seem to get caught for cheating regularly in the sailing. this is not the first time. constantly doing something to the boats. >> is it a question of flat out cheating or you're allowed to juice to a certain extent and then step back? i don't understand sailing. >> it is a weight thing and how the boats are constructed. a cheating thing where they were going to look at other people's boat and study them.
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>> a fine line between competition and cheating. i don't know enough about sailing. >> the way you tack and get around certain -- >> this team for some reason gets docked points more often. i don't know more often than others, but always reports that something is happening. >> i'll look into this. i don't know enough about the sport. >> robert frank knows a lot about this. >> we should ask him. >> how about every other monday. >> back to vacations? >> how about fridays? mondays seem like an important day. >> doesn't matter. mondays, you get rid of mondays. >> and then tuesday becomes the new monday. >> merger tuesdays. >> someone has a bad case of the tuesdays. >> not as good. if you measure how advance the society is, this is something you may want to look into. johnny carson, i think matt figured it out to some extent. four-day weeks and time off, things like that. if you can, you know why they do that? because they can.
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>> katie couric did that. >> she is getting married. >> she is. >> nice guy, too. see how the markets are faring ahead of the couric news, ahead of friday's jobs report and amid the ongoing uncertainty over syria. joining us is mark witner. mark, are are you on the economy now? we have a jobs report coming. we had a gdp revision that went up. the claims numbers have all been good. we're watching the fed, hoping there is a good reason to taper. is there a good reason to taper? things getting better? >> there is a good enough reason to taper. things are getting a little better. but they're not going to get a whole lot better if they put off tapering. in a sense, the fed paid for it. we have seen the rise of interest rates. we have a little pullback in home sales. so the bad news in the economy
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is largely as a result of an anticipation of them tapering. to not do it, certainly wouldn't make things any better and it would just mean we paid all the price for nothing. >> david, translate that to what it means for people investing, whether in fixed income or the stock market. >> well, i think both are going to suffer when the actual event happens, but i agree, it is on its way. i'm not sure it happens after the september meeting. but clearly it is on its way. i think bernanke wants to get it under way before he leaves his position. i thought october was the right meeting all along, i wouldn't want to wait another 30 days to see. if you get a consensus jobs number, like 180 on friday, the fed can almost use that as justification for doing anything it wants. no tapering this month, full tapering, tapering light. and so i think it is coming. >> you think there is -- people,
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david, say sell the anticipation of tapering and buy the actual event. you think there is more market -- reacts negatively to when they actually do it? >> i do. and i say that because i think whenever you get a data point or some guidance that seems to suggest that it is not imminent, the market seems to rally and the opposite happens when you get a stronger data point. and so i don't think the market has quite come to terms with this yet. it is almost behaving as though no tapering is good news and i agree that we need to get on with it. i'm not sure it is really helping at this point. >> back to you, mark, do you think next year we can -- we have a chance of doing 3%? >> not for the year. we're at 2.5 for next year. just doesn't seem all that likely. the second half of this year is still going to be pretty light. our early look at the third
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quarter is 1.6% gdp growth. fourth quarter, somewhere around 2%. and that gives us a real weak base to build off of next year. we have to have better than 3% growth every quarter of 2014 to have better than 3% gdp growth, or have a shot at 3% gdp growth for the year. it is a bit of a stretch. 2.5 is not bad. this year we'll grow somewhere between 1.5 and 1.8%. relative to that, that's still a pretty good improvement. and it is not just the number. the economy -- the strength in the economy is broadening. more areas of the economy that are improving, and growth in europe is looking a little better. europe should switch from being a drag to a positive for us and give us ail l little benefit on trade. >> do you do asset allocation? would you tell people that just don't own bonds now and ramp up your -- or equity positions? is that a big move coming
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eventually? >> well, my sense is that equities are still more attractive, but i think you need to overlay that with some near term protection. i think this market is going lower. i think we're going to attack syria to some extent next week. regardless of whatever happened -- vote happens in congress, i think it has to happen, otherwise the president's credibility is shot. and think that's going to drive energy prices higher, but what really makes me a little nervous about market behavior in the wake of that is what is the response of other actors in the region. we don't know what that is. and so as a result, i think you want to have some downside protection in the short run. from a tactical asset allocation perspective, i think you want to be able to weigh equities and underweight bonds, but protection yourself in the short run. i don't think you need to sell your cash position but overlay it with downside protection.
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>> okay. thank you. got another idea here. this guy works nine hours a day and gets every friday off because they work an extra five. >> there are a lot of positions and things. doctors who work -- i met a doctor over vacation and she works one week and then off for two weeks. >> so you're working 15 hours a week, three hours a day for five days you need to come in for 12 1/2 hours on saturday and sunday from now on. >> a little longer than three hours on the air. >> a little bit. >> tiny bit. >> column for paper you keep pushing. >> we got other news to bring you after the break. coming up, the imf warning emerging economies are vulnerable to u.s. tapering. the investment outlook on that next. first, mickey mouse, the latest victim of the greek crisis. the publisher of the greek edition of the mickey mouse magazine announcing he'll be halting publication after 47 years. he cites the tough economic conditions in greece as the main
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welcome back, everybody. looking at the u.s. equity futures, looks like things are undecided. a decline of 6 points on the open. s&p futures end -- indicating a slight increase at the open. in our headlines this morning, the imf says advanced economies led by the united states will
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drive global growth. it says ease mer the imf making the comments in a note prepared for g-20 meeting in st. petersburg later this week. our next guest says the consumer spending in middle class growth and emerging markets have proven to be real bright spots in the global economy. bob holder is the president and founder of emerging global advisers ringing the opening bell at the nyse today to commemorate a three-year milestone for the largest etf. thank you for coming in today. we have been talking about some of the emerging economies. we spoke earlier about china and what is happening with consumers there. i had no idea that chinese consumers routinely paid so much for an automobile or clothing. that shows the strength of that consumer which is a rising class. >> the chinese would like their economy to be more domestic demand based and less export demand based. they also prefer not to import cadillacs so much from us.
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they're paying three times the price of a cadillac. they would rather buy a local chinese car from a local chinese car company. so there is a lot going on with the chinese consumer, consumers around the world. >> chinese consumers are pushing back for the first time and are refusing to pay up like they had been to this point. this is that the end of a trend? >> i think it is to some degree. 10% growth in a economy for many, many years becoming 7%, it is still 7%, it is better than most developed markets. but that doesn't mean -- it means wage growth won't be what it was with 10% growth. >> what about this imf report that suggests the real growth is going to have to come from the developed countries at this point, particularly because of what they see just in terms of slowing the -- the tightening of u.s. monetary policy. if we're looking at a taper starter, what does that mean for the economies? >> that's what kept the economies afloat, our economies afloat over the last four or
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five years. from 1980 to 2000 in the u.s., the baby boomer drove the u.s. economy for 20 years. it was all about a growing middle class, 80 million strong, and emerging markets that group is 3 billion strong. and they have the potential to really drive the economy and continually. they want all the things we had in the '80s and '90s and we have today. >> how should we think about the bricks and emerging markets that have underperformed? >> there clearly are advanced emerging economies like the bricks. we have never considered ega, south korea and taiwan to be emerging. we like mexico, south africa, indonesia, thailand, malaysia, the philippines, colombia, chile, those countries. we think they have a better opportunity to grow. no emerging market countries are decoupled, the word that used to be used quite a bit. i think they're less coupled and more domestic demand
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economy-based as opposed to export demand, like china. >> you don't think fed policy has played some role in just so much money that has been out, not just from the fed, but other central banks. >> it has. one of the reasons that india controls the amount of flows that come in and out of their economy, they have for their ec. they don't want outside investors determining how their economy does. so big flows in and out of indy, some of the smaller economies, can affect their economy. >> though brazil has struggled with that too. sometimes they can't stop the flow. it comes despite their best efforts to try to put up walls. >> they had a 2% tax on all transactions for a while, especially dollar. they had a 6% tax on bonds. that were held for a shorter period of time as well. so yeah, they are trying to combat that but those emerging emerging economies and the larger frontier economies have the potential to grow and they outshined the brits in the last year or two.
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>> bob, thanks for joining us. we'll see you later. >> thank you very much. >> and as i am congratulated about the reds 1-0 last night. the cardinals. first place cardinals after beating them -- 1-0. homer bailey pitched. i got to look at this. still to come on "squawk box," we'll talk not about baseball so much but football. you ready for some football. allstar lineup. new england patriots owner bob kraft, the star quarterback, tom brady, giants co-owner jonathan tisch, woody johnson, plus rouger goodell after the recent settlement. he presides over i mean, it is a virtual empire. the nfl. the show will build all morning to our news maker of the day, though, see the cbs president and ceo les moonves, something going on with time warner cable. it's suggested that we should
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box." former nba star dennis rodman is visiting north korea again this week meeting with the leader of the country kim jong-un. the trip days after -- did they
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reject a visit? no. they rejected a visit to bring home an american missionary who has been sentenced to prison for 15 years. rodman didn't say if he was going to try to get the missionary released. let me say when he becomes our diplomatic envoy, then i don't know what to think. >> it was ping pong at one point. >> and basketball. >> basketball this time. got to hand to the him. >> you think before he goes over he get as briefing by somebody? >> no. >> that says you have to ask a couple questions. >> maybe. >> if they know he's going and as long as he is say look, off the record, here's what. >> make a couple mentions. coming up the senate foreign relations committee could vote as soon as today and the syria authorization bill. we'll be bring you a live report on the congressional debate. then we're going to talk a lot of football with the owners of the patriots, the giants, the jets, plus the commish, roger
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good morning everybody. welcome back to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkins. futures are barely budging. our headlines reports out of china say apple invited journalists to a beijing event which will take place hours
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after apple's u.s. gathering next tuesday. some are speculating apple will announce a deal with china mobile the largest mobile carrier which does not currently offer apple products. the federal reserve will issue its beige book, the region by rej assessment of the economy. investors are going to search for any clues whether the fed may taper its bond buying program which happens in two weeks. also hedge funds continue to scoop up jc penney shares following the share of 18% stake. glenn view capital increased to 9.1% up from less than 4%. the news came hours after the news that high man capital has a 5.2% stake. hedge funds own more than 21% of the retailer's stock. >> president obama is winning backing for a strike against syria. that came from key congressional members yesterday. but is it enough to pass an
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authorization bill as early as today. amman joins us with more. take it away. >> good morning, joe. secretary of state john kerry was on capitol hill yesterday returning to the committee that he used to be to chairman of to offer the administration's best case for a military strike on syria. the secretary of state however appeared to get in a little bit of rhetorical trouble when initially he seemed to open the door for the possibility of american troops in syria. take a listen to this. >> it would be preferable not to, not because there's any intention or plan or any desire ha sofr to have boots on the ground but in the event syria imploded i don't want to take off the table an option that might or might not be available to a president of the united states to secure our country. >> so kerry there appearing to leave on the table the opportunity for the president to send american troops into syria. he realized later that might be
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a political mistake especially because the administration is saying it does not intend to have boots on the ground and that will be one of the keys to whether or not congress passes a resolution here. so later the secretary of state walked that back. here's how he did that. >> i don't want anything coming out of this hearing that leaves any door open to any possibility, so let's shut that door now as tight as we can. all i did was raise a hypothetical question about some possibility and i'm thinking out loud how to protect america's interests. >> so the secretary of state thinking out loud there in the senate hearing that is often something you are advised not to do when you testify before the senate. seems clear the administration is leaving a little bit of a carve out here, kerry saying that there would be no boots on the ground with respect to the civil war in syria. in some other contingency maybe he is leaving a crack in that door leefrning it on the table which ever you prefer. but as of right now, guys, the
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senate is expected to take up a resolution that would give the president 30-day window for a strike on syria, 60-day window for a strike on syria with a possible 30-day extenks, also mandate no boots on the ground in that resolution. we'll see how all of this plays out. >> who is in town? >> a lot of the key members of congress came back for this hearing yesterday. the secretary of state and others are going to be testifying on the house side today, a lot of house members are here. so the key decision makers are definitely here. the president is not. the president left last night and arrived in stockholm early this morning. >> you're saying there could be a vote before september 9 then. >> they are saying in the senate they can move this resolution through the committee as early as today, and then we'll have to see what happens on the house side. they are scheduled not as clear. whether they can get it through the full senate by the end of this week is also an unknown at this point. >> okay.
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appreciate it very mush. stocks kicking off september in the green but syria worries and looming jobs report would weigh on the markets. joining us to talk about this, barbara morsen. good morning to you. >> good morning. >> question on the morning is syria. how much of that you think is built into the market? what do you think happens? >> it's consensus there is a strike, and you know, a limited -- i mean i think there is a strong consensus of that so some is built in here. but i think typically, previous conflicts we have generally had somewhat of a sell-off leading into it. and then the conflict starts and the market recovers so we may have some of that heading into september as we get closer to it. >> the other overhang that's going to come this fall, beyond whatever jobs picture we get this week, is the issue of the debt ceiling. one thing i wonder is how syria plays into all this. and i've been reading conflicting view there is is this idea out there that if the
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republicans go along with the president on this, they might make it more difficult on the other side. and then there's the other view which is that if we actually have struck in syria, the world might be freaking out so much that people decide they have to deal with the debt ceiling anyway. >> yes, or possibly he maybe he'll appreciate the support that he's getting unified support and maybe it will smooth something going into the budget talks. it's so hard to tell how it will affect it. >> yesterday the guy said that it would make it harder for somers because if the president has to go to his base to the left to get authorization of syria then they aren't going along with sommer. >> i was thinking about that yesterday. >> you only have so much -- >> yesterday it was the democrats. >> they are using it on all sides. >> i hadn't heard that. i heard yesterday that his own people were going to -- >> no, but -- from a market perspective how do you set yourself up? >> certainly syria, the taper
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and the budget talks are all september issues, so september is traditionally a volatile month. it has good reason to be. >> a stock picker. >> that's what i'm asking her. >> the macro view, you think the macro view is not going to get in your way for picking stocks that you think are undervalued for the long term. >> we do have a very stocks specific outlook and we do little top down work. certainly you can't tell anything about the next month or two anyway. you look out longer term, we've had mediocre growth for the last four years, a tremendous stock market so we have a mediocre valuation. longer term there are good positives so i think we can have a correction here in the fall but it doesn't look or have the feel of something a very overvalued market. i always have a number -- lots of favorite stocks. apple. which becky was mentioning the announcement. apple i know everyone's getting
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tired of apple because it's been such a focus, but apple is an extremely inexpensive stock. extremely inexpensive with good growth ahead. the likelihood of an agreement with china will add another mobile subscriber base access to -- which is a size of verizon or at&t. it can add $6 or $7 of earnings, they have, you were talking about the watch earlier. who knows. certainly a very innovative company, the opposite of a microsoft. apple has been trained -- >> will you touch microsoft? >> i don't see the reason to. i mean, when you look at microsoft it start as a monopoly 30 years ago and conducted itself sort of as that over the last 30 years protecting it's -- i don't remember, note, sort of come in and squash something. >> mosaic, netscape and then my zero soft explorer.
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>> so 30 years of tens of billions of dollars of free cash flow and really has not been able to invent or create anything. really what the company should do is merge into a creative company. >> would you touch verizon? >> i think verizon is a little more of a utility. yes, i think verizon is decent value. >> what side's apple. >> zoetis. which is spun off from pfizer earlier. >> oh, that. >> the largest global animal health company, the only public animal health company. and two-thirds of the revenue from livestock, a third from pets. both have a lot of growth drivers ahead as we try to get more protein. there is an increasing spend on pets in emerging markets as people get more into the middle class they want pets. actually, the develop markets are spending more on pets.
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we're seeing that so there is industry drivers and also zoetus now that it's standing alone it made a case it will increase its profit margins dramatically the next few or several years, industry and company specific for that company. >> there niece co-pays. >> can you buy insurance? >> get yourself three dogs and take one in just for -- it's the most basic. >> see what you come out with. >> you can buy pet insurance. >> you should because it costs 300, $400 to step foot. >> if they get really sick it's very expensive. >> we had someone recommending an acl thing on a rear leg of a 10-year-old golden retriever for $4,000. and then they sit for so long while it's healing that they may never get up again. we didn't have it done and it healed itself. can you imagine, you don't want,
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with a person you hopefully aren't doing bypass surgery if you don't. with animals they can suggest anything. what's the worse case scenario. >> yes. >> i think you're right. buy. >> one last stock. >> newmont mining. all three of these have not participated this year in the tremendous stock market up about 15% year date. three stocks that are down, new mont mining down about 35% and it has both company and industry drivers behind it. >> thank you for coming in. appreciate it. still to come, new england patriots quarterback tom brady to talk about the upcoming season. thoughts on the concussion settlement and his new project. also his boss, patriots owner robert kraft is our guest host. right after the break. a check at the futures now. see how things are setting themselves up.
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we are a day away from the
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official kickoff of the 2013 nfl season. for the next two hours the man whose team won the most games of anyone since 1994, bob kraft, owner of the new england patriots and chairman and ceo of the kraft group. it's not like, bob, it's easy to say that now. but i loved in boston back in i guess -- there was a time the patriots reminded me of the red sox, it wasn't thought of as a franchise winner. since '94 it's unbelievable. is that because of you? >> we had great support from the fans there and we've collected some wonderful people that -- it's been a team effort. the community has rallied around us. having a coach like bill belichick and a quarterback like tom brady has helped a little too. >> that's for sure. you got a lot of -- how you feeling, a lot of rookies this year. >> we're feeling great, actually. it's one of the younger teams
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we've had. in the end it's like this business, you need a core group, and if you look at the veteran leadership we have and the captains we have on the team it's pretty special. on both sides of the ball, special teams, so we're very excited about this upcoming season. the thing that's amazing to us is that our four preseason games, people talk that fans don't like preseason. we outrated every program in the market, all four weeks, by more than double. so, there's something there. >> you brought some special guests, one is going to join us now. for people that don't know this gentleman, his name is tom brady. he's a quarterback. >> i think there's a lot of people -- >> he is babe-alishous from the other side of the gender aisle. actually both sides i would have to say. wouldn't you. welcome, mr. brady. thank you for joining us today.
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>> good morning, guys. >> i'm going to start without a little advice for you this year. because you know, gronkowski is not back, hernandez is out, if you're going to do anything return to the underneath routes from the slot. and i think as they cross in front of you, that's got to be your m.o. this year. >> exactly what belichick told him. >> it's obvious. it's obvious. did you think of this already, tom? >> do you have any eligibility? >> i'm more of a thinker, do what i say, not what i do. i'm not coming out. that was a direct quote from an interesting journal piece today. they have the key plays for every team. their go to plays. i'm going to talk to woody when he's on. we have a lot of people on today. and jonathan about their plays. are you looking forward to the year? i guess you look forward to every year, tom. >> this is an exciting time.
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i know post-labor day is football season and spells the start of the football season for us players. we've been preparing for this opening day for the last six months so it's nice that it's actually here and we get to see really how our training has played out over the course of off season through training camp and we finally have our first test on sunday. >> who are you going to throw to? at this point, what are you thinking, how is this going to play out? that's what everybody's talking about. welker gone and gronk will get back, the hernandez situation. who is going to take up the slack do you think? >> well, you're right, we lost quite a bit of production over what we've done last year from the skill position on our offensive side of the ball. but the guys that we've brought in through the draft and through free agency have done a great job of really trying to understand how we do things here and hopefully we can be as productive as in the past.
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that remains to be seen. the guys we have at that position are very competitive and have done everything that we asked them to be able to do. so, i'm excited to see where we're at. i could sit here and make a bunch of predictions like a bunch of other teams, but we'll just choose to go out and do our talking on the field. >> tom, quarterbacks, if you cannot get hurt, you can get better and better and better. age is not really an issue. i remember you know, as a bengal fan i remember joe montana all too well. 13 seasons, how do you stay healthy and you got something that i don't think you talked about ever yet on -- with the media, tv 12. that i assume is tom brady method of training. what are you doing with it? >> yeah, it's something that i'm pretty excited about. and i don't think there is anything that excites me quite like football and football season. i think the one other thing that i feel really strongly about is
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how to prepare your body for competition. from my standpoint as a professional athlete what i learned over the years i really tried to develop something that we're going to implement here at patriot place, that is for athletes, it's for weekend warriors, for any competitive athlete that wants to perform at a high level at any age. i've always said that i think it's a bunch of crap that people think as you get older you get worse. i think in a lot of ways, i tried to make improvements every year. the lifestyle that i lead and the things that i do in training and nutrition are so important for me to achieve my goals. i'm really excited to really start sharing those with the general public. >> you know as you get older you get better. right? >> that's how i feel. >> having two young sons also helped impact you in terms of thinking this project the way
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you explained it to me why you wanted to do it. >> i think diana nyad made comments about age and what's possible. not comments but actions. so tom, it's nutrition too? it's not just -- it's like a holistic approach to everything? >> what we've set up here is it's t b-12 sports therapy center. this is somebody that's -- should be open in a week or two. that's kind of our main principle and the main part of what we're trying to do is there's -- the tb-12 method is a well rounded approach to being your best at any age. that is a lifestyle decision. a sports therapy center is a big part of how i feel that an athlete needs to prepare his body. so someone that i worked with for many years that i've learned a lot from is working over there at the center, a big part of our
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rehabilitation and preha billtation. so much of preventing injury is the right type of training. preparing your body over the course of six months so i can endure a 16-game regular season. if you want to play golf or tennis or go run a marathon, and your body doesn't allow you to do that, there's obviously a reason. i think we've got great solutions to those problems. >> tom, i wanted to ask you about the sponsorships because you seem to take a different approach to sponsorships than a lot of athletes you try to take equity from what i understand, i know ug is one of your sponsors, how do you think about that? >> i think i'm in a very fortunate position where i really, i'm able to choose the things that i really believe in and be associated with people that i have the same you know, vision for. i think how i feel about what i represent is important to me. i mean, when i pair the patriots
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sweatshirt it's because i believe in everything the organization is doing. not only to be good in the community but to win games. i know i can represent this team well and i try to do that in a positive way. it's a very serious part of my job. so, whether those are other endorsements i do as well i believe in those things as well. certainly when i'm choosing to put my name behind something like tb-12 sports therapy center i wholly believe in everything we're trying to accomplish. i feel like i said, i felt like this is the best way and there is a better way than what's in the market. >> tom, you ended up liking tebow quite a bit. did you think you were going to like him? >> yeah, i love -- i think there are some similar traits. he loves football, he loves to work hard, is a great leader. we competed against him with him being on the other side of the ball. i obviously enjoyed my experience with him. i wish we could keep everybody, that's not the reality of the nfl. >> you never know, right. >> you never know.
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there's a lot of guys that rushed over the years. how this particular will play out we'll see over the course of a season. i wish him nothing but the best. >> you said you would like to be his agent, bob. >> i was asked if i wanted to be. he is outstanding young man. he and tommy's shared many personal characteristics, the way they come across to people. he is a winner and very special. we're privileged to have the best quarterback in the history of the game, so he's not coming off the field. >> to be totally honest amend frank tom, do you think his arm is going to be an nfl starting arm eventually? >> well, there's a lot -- what you see in today's nfl there is a lot of ways to get it done at the quarterback position. there's not only one way to be successful. so, different guys do different things, different offense dues different things. is goal is score points and win games. how you choose to do that is based on the principles and
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philosophies of your head coach and your offensive coordinator. our system has been in place for quite a while so we've been lucky enough to build a foundation around the strengths of our players. that's what i think our coaches really do a great job of. >> you are probably going to play against johnny football some day. if he starts -- is he young-? showboating -- what's the biggest thing you've done in terms of flaunting, i have seen maybe a fist pump. that's about it. isn't it? >> i get pretty emotional. i have a lot of respect for the teammates for my teammates, my organization. certainly for the other guys in the nfl. there's not a guy playing in the nfl who hasn't earned the right to be here and who isn't supremely talented. probably been the best athlete in his high school class, in his elementary school class, and so when you look across the ball you have respect for those guys and you treat them with respect. football is a physical game.
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you know, as rkk would say if you're a turd it's going to come back to you. >> we got great -- you figure johnny -- we will eventually be up against him. probably. at some point. >> possibly. yes. hopefully i'm still playing for many more years. that's a personal goal. >> i wonder if -- i don't know how we should do the college compensation t whole issue. there are people that think -- do you have an answer for how we do this? should he be able to sign autographs and make -- what should we do to make it a little bit easier when you know you're going to be making $10 million a year in a couple years you don't want to leave school. >> yeah. well, look. college is a great time. i know it was in my life. and if i knew then what i know now, it would have been a lot more fun. >> did you meet girls in college? >> i was focused on school and
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athletics. >> so you didn't -- >> you got shot down a lot. >> i was in the library most of the time. >> who do you -- who is going -- who are your top three team this is year from what you can tell preseason? >> you know, there's i think the great part about the nfl is there's 32 teams that are very hopeful at this point. we're one of the 32, so there's a lot that goes into a 16-game regular season. and injuries take a toll, the depth of the team, the mental toughness of a team, the practice habits. those are all critical to the success of a team over the course of a long season. so, who knows. there's a lot of talented teams. everyone can spend only up to the cap. it keeps the league extremely competitive. you never know how it's going to play out. there are a lot of experts. you probably asked all of the experts, these sports blogs and so forth that have all of the answers. >> finally tom, we're going to
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have roger on, talk to him more about this, but as a quarterback, you've got guys keying on you all the time. and i think some of them, not saying they want to hurt you but they want to hit you hard at times. does the league have the right, there are some complaining they don't know where they can hit anyone anymore and others that point to what's happened with this recent settlement. that it's still too rough. how do you walk the perfect line to where you know it's a dangerous sport but you don't want people getting where the rest of their life they are dealing with a situation either. >> yeah. it's a physical game, so it does take a toll on you physically. i think you have to take it into your own hands as an athlete to understand what you're getting yourself into, and how to properly prepare yourself for a season. so i think that's the thing that i've really tried to educate my teammates on is that look, yeah, if you play a physical sport you're going to get bumps and
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bruises and -- but how can you recover from those things as quickly as possible. that's part of what -- i hate to bring it back but that's what it's all about. that's what i do. i think that hopefully i can be a great example for future athletes and people around the united states that you know, are tired of working hard at getting worse. and i feel like we should work hard at getting better. hopefully this is a solution. >> tom, don't know if you talk about it but did you have a view on the settlement over the concussion issue? i know your father i guess about a year or two ago said he would have been hesitant had he noen having you play when you were a kid. >> i think all parents are concerned about their children's well-being. as a parent of three kids i'm very concerned with their well being. i think football has so much to offer this country and young athletes that want to be part of a team and that need to understand work and sacrifice, commitment, and putting -- being
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part of a team that has goals bigger than the individual. i think that's what sports teaches you, why it's such an integral part of our society. it teaches so many lessons in life that you know, can bring our community together. we've got such a great community here in boston for sports and i know that you guys i think in new york, obviously the rivalry between the two cities and the history of the cities is a really special one. i'm lucky to be part of that. >> tom brady, thank you. >> can you tell me anything, are you bad at something? you got some vice am some sort? you got toe jam? anything that you can tell us that is disgusting about you? give me something. please. >> rkk, if he's on there the rest of the day i'm sure he's got a couple of stories. i'm sure my wife i do plenty of things that annoy her. >> that's what we need.
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>> i'm sure you would want her on the show. >> should have asked. can't afford her. we appreciate all of the time. and thank you for bringing in, bob will be with us the rest of the show. thanks for bringing on your star. >> should we let him in tb sfwhel. >> i got to see what kind of athletes they are. >> you said you would give me a chance, right? >> i give you a chance. if lewis hits you you'll be on one of those tables. >> no. i can get hit once, that would be the end. >> probably. >> you are doing fine in your job. >> thank you. thanks, tom. we got a couple of quick headlines this morning. several economic reports on tap for the morning. we're getting july trade figures, trade deficit figures at 8:30 eastern time. economists looking for a $39 billion trade gap up from 34.2 billion. the automakers out with august sales figures.
7:32 am estimating the sales up 13.3% from the same time a year ago. and mortgage applications rose 1.3% last week according to new figures from the mortgage bankers association t first increase in four weeks. average rates were down 7 basis points to 4.73%. the prior week's rates had been the highest since 2 -- of 2013. >> should i not -- i shouldn't have said that. that's what you are going to do, run across the middle. >> belichick is going to think that i gave you that. >> i'm sorry i said that. >> he was reading from "the wall street journal." >> i hope rex ryan wasn't listening. >> i just know my -- i read that from the -- i know where to look. i know where to look. >> he knows his stuff. >> i know how far i can go. >> we have a lot more with bob kraft. relief for the rupee.
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a strike in syria looms. our trading block is ahead. later from new england to new york we're in the squawk owner's box. jonathan tisch of the giants and woody johnson will join us as we get ready to kick off the road to the super bowl. "squawk box" is back after this break. ready to run your lines? okay, who helps you focus on your recovery? yo, yo, yo. aflac. wow. [ under his breath ] that was horrible. pays you cash when you're sick or hurt? [ japanese accent ] aflac. love it. [ under his breath ] hate it. helps you focus on getting back to normal? [ as a southern belle ] aflac. [ as a cowboy ] aflac. [ sassily ] aflac. uh huh. [ under his breath ] i am so fired. you're on in 5, duck. [ male announcer ] when you're sick or hurt, aflac pays you cash.
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the oil and currency markets in focus after some lawmakers voiced support for president obama's plan ta strike skier are syria. from houston, carl leary, oil
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outlooks and opinions president. from new york we have mark chandler, head of currency tragedy. shawn, think that the biggest risks are for those shortselling gold not those buying it. >> yes, i think so. i would hate to be short gold right now with all of the unrest going on in the middle east. you've got 80,000 workers in south africa that went on strike in the gold mines that could expand 120,000 workers. you've got rebels taking over oil wells and terminals in libya, unrest in egypt. a ship was attacked in the suez canal. israel firing missiles. these types of things and the potential for a syrian war. so i mean, the risk is to the gold short seller and not so much to the gold buyer. >> carl, you look at what's happening with the oil markets, with oil trading around $108 how much of this is baked in the price t idea of the strike being
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launched? >> a lot of it is getting there. a lot is too, we've seen oil over $100 for a while. a lot of good numbers not only from the u.s. but china and europe. the syrian vik might be in there. it's the implications after the strike that's we're concerned about. there is a lot more left to the up side. >> a lot more left to the up side f. there is a strike t the after effects, there are a lot of unknowns on every level. >> that's the big issue. we don't know if it's going to contain to syria. we have unrest in egypt, in libya. if something happens in syria and starts to spread oil prices can continue higher, maybe 120, $125. where will they go from there. what happens after that. there is no limited ceiling to this. everybody talks about with an up side but there is no up side. it's unlimited risk. depending on -- >> if it stays on the back burner, will oil fall below
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$100? >> no. i mean, again, the economies are doing too well. we've held over $100 for a while and the u.s. numbers we'll see what happens with the unemployment number on friday. china is back on track, so is europe. it's hard to see it under $100 soon. >> that leads tuesday the friday story, for the dollar, the dollar has strengthened on the idea there could be a lot of unrest. we're not sure what happens. if we get a strong jobs number friday, then what happens this >> i think the foreign exchange markets really is not so much on what's going on in syria or the middle east, some of these gio political concerns but the employment data and more importantly what this means for fed tapering. i think two-thirds of the market expects the fed to begin tapering later this month. maybe -- i personally think there should be some scope for disappointment if it's priced in or tapering is smaller than expected or extra conditionality is imposed, separate the tapering from a tightening
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decision. i think foreign exchange market is focused on the fed and not geopolitics. >> bob, as a business leader, as someone who is looking around these questions of syria, what does it do to potential decisions? >> unless we have very clear objective i think we have to be very careful because i think there are unintended consequences that can happen. if the price of oil being what it is, if this really escalates, what that does to the price of oil, what it does to interest rates, i think we see the economy coming back 4, our packaging business is doing very well. we're doing great business in asia, south america, mexico. only europe is really an area that's still questionable for us. and we think if something happens serious in syria it could have a great impact there too. >> so you would like to see congress vote down authorization? >> i'd like to have a clear understanding of what our mission is.
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i don't understand exactly what the end game is. i think if we are aggressive in that area, knowing how things are near hospitals, mosques, schools, there's a lot of unintended consequences and innocent people can be hurt. what does that lead to? i don't feel we have a clear statement of what our end game is here. and it concerns me. >> bob kraft again is our guest host. we'll have much more with him. mark, carl, gentlemen, thank you for joining us. >> thank you. coming up the football season hasn't kicked off but preparations are under way for met life stadium and the area for the super bowl. it's the home of the both the giants and the jets. wouldn't be bad for snow. owners -- awesome. john a tan tisch and woody johnson join us. tomorrow the nfl season gets under way, the ravens taking on the broncos. what a great way to start.
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this season super bowl will be in the new york city area. for the first time 12 miles away from cnbc headquarters at met life stadium the home of the new york giants and the jets. joining us the co-chairman of the host committee woody johnson owner of the new york jets and jonathan tisch, co-owner of the new york giants, both are at tiffany's the maker of the lombardi trophy and the site of the road to super bowl kickoff. distinguish morning, gentlemen. it's good to see you. >> good morning. >> how are you. >> i've got some really devilish producers, woody. they said turn around and grab that trophy and just touch it and feel what it feels like. just to know. that's nasty that they wanted me to say that. isn't it? >> it really -- well, those are the -- goes with the program for you. not unexpected. you can't just grab it. you need gloves. you have to have white gloves.
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you can't see how many security people from tiffanies are here guarding the trophy. >> we've seen super bowl rings disappear. i don't know why you can't walk off with that. >> that was good. >> he's good at that. >> i don't know who would criticize the idea that a cold weather open stadium in for super bowl could be a bad idea. we've seen every other super bowl. would not a blizzard just be incredible and something everyone would remember? i'm hoping it happens. jonathan? >> well, certainly you've got all kinds of issues related to weather. the host committee working very closely with the nfl. our contingency plans have contingency plans. we have thought of everything. and if you look back in the history of the nfl, some of the greatest games ever have been played in less than perfect weather. we think having the game in the new york/new jersey area, in met
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life stadium, will highlight the excitement of a great super bowl, played in the elements for the fans to witness it, broadcast all over the world. the greatest game in the world played on the greatest stage in the world. >> yeah. i think you know, having it in new york with a little snow, i mean, it's the biggest event of the world today. and having a little snow in new york, in new york i think, will drive the viewership that much higher. >> woody, i love the jets and so much -- you got to. and i love the giants too. but so much happens off the field. i mean, it's so colorful. now with -- i don't even know where to start with you on you got rex and you got you know, who knows with sanchez and all the stuff. and you love this because i asked you about tim tebow, remember that question i asked. people went crazy. we talked with it after and you loved it.
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because it's football is entertainment. right? that's what we're trying to do here. >> well, we're trying to win games, and you know, i still feel the same way about tebow. he was a great person and still is a great person. and i wish him the best going forward. >> you're not going to tell me who's going to start? >> we'll know that this morning. because this is practice day. this is the day that the plans go in, that the plays go in. so, who is ever ready is going to be considered for that. we'll know probably in an hour or so. >> what i like about the jets is, woody, you have the three defensive linemen covering the center, two guards allowing for max much nex built. i know that you agree with me on that. that's one of the main plays the jets employ. i'm reading from "the wall street journal" acting like i know something. >> yeah.
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i think the defensive line will definitely be a strong point. we've got some young guys on the defense, new guys. so it's going to you know, we're going to start out strong. typically with rex. i think we'll get better as the season progresses. >> i saw coughlin the other day, too. and i realize how much i really like him. he is kind of you know, so low key and a guy that i don't know how you found him and luckily you gave him long enough to flourish and he's solid every day. right? >> ten years now with tom coughlin, he represents the new york giants at their best. he understands the team, he understands the ownership, the but his value system is so strong. he has a way of getting the players motivated so that they understand the history of the giants, they understand the bright future of the giants,
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they understand this is the year potentially we could go to super bowl in our own building. and tom just represents us as a terrific first class, fair guy. >> what the nfl did with the settlement and the way that roger's handling all of the health issues could you comment on that. i guess woody, you start. was that the right way to go about this? >> well, the concussion settle snmt. >> yes. >> is that what you're referring to. >> yes. >> it's not totally resolved but i think it's a good step to help the former players, the 45-plus former players, some of whom have injuries that need help. this is a way to get it to them now without years of litigation. soy think it's good for both sides. hopefully it will be resolved very quickly.
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>> you concur, anything to add? no. as woody noted, the important element that comes out of the settlement is the dollars will be there sooner rather than later for the players who need it to get some medical care, and the game can move on. this is about the greatest game in the world. millions of fans around the world watch football, they enjoy it. we bring it to them live, we bring it to them in their homes on their devices in today's world so now with the players we can move forward to make sure our product continues to be strong and people get to enjoy this wonderful game. >> we take it for quanted on the east coast, we is in new york, both teams, something for everyone. thank you, gentlemen. good luck to both of you and your teams. >> coming up still to come this morning we're going to talk transmission fee, cable wars and much more. ♪
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wack book to "squawk box." football meets business. >> even point here after which two loss. any questions. you know you need a cover sheet on your tps reports. hey, janice. >> this hour, more from patriots owner bob kraft. >> nfl commissioner roger goodell will talk about the new season and the league's concussion settlement. >> and cbs ceo les moonves in a
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first on cnbc interview. we'll ask about the network's resolved cable war. the third hour of "squawk box" starts right now. ♪ welcome back to "squawk box" here on cnbc. first in business worldwide. i'm joe kernen. our guest host this morning robert kraft, chairman and ceo of the craft group. first though we have your morning headlines. >> a couple of stories, joe. reports out of china saying apple invited journalists to a beijing event which will take place hours after next tuesday.
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this is a very big deal for apple if it happens. also you knew this was coming. standard & poor's saying the government file add $5 billion fraud lawsuit against it, it did it in retailiation for its credit rating downgrade of the u.s. a filing says the lawsuit attempts to punish it for exercising its free speech rights under the constitution but also seeks fines in violation of the 8th amendment. s and p wants it dismissed with prejudice. heating up and getting interesting. president obama is in sweden ahead of the g-20 summit in russia. he's going to meet with the swedish prime minister and expected to make a statement later this hour. we'll monitor all of that and bring you headlines on the president's remarks. >> let's get a check on the markets. we're watching the equity futures, barely budging as questions continue what's going to happen with syria.
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right now you can see the dow futures are down close to 15 points below fair value. nasdaq futures slightly positive. in asia you had mixed markets. you can see the nikkei was up a half percent. the hang seng down a third of a percent and in europe in some of the early trading at least at this point there is a little bit of weakness. the cac is off close to 1 percent t dax a off by three quarters of a percent. president obama gaining support for a serious strike from key members of congress. will it be enough to pass an authorization bill? >> good morning, becky. secretary of state john kerry was on capitol hill yesterday making the administration's best case for military strike on syria, the secretary of state said that the united states has a moral imperative to take this strike. the foreign relations committee is going to take up a resolution to authorize the use of force later today, there are going to
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be briefings on capitol hill throughout the day today. but one of the things that struck me from yesterday and i wanted to bring this to you t chairman of the joint chiefs of staff, martin dempsey was along soois side the secretary of state and the secretary of defense but his body language didn't suggest to me somebody who is really champing at the bit for military action in syria. look at some of the comments here yesterday from general dempsey. >> the task was to do just that, to deter and degrade, not -- and to be limited and focused in scope and duration. that's the task i've been given. i don't know how the resolution will evolve but i support -- >> what you're seeking, what is it you're seeking? >> i can't answer that. >> going to war in the classic sense of coming to congress and asking for a declaration of war, and training troops and sending people abroad, and putting young americans in harm's way. that's not what the president is asking for here. general, do you want to speak to
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that? >> no, not really, secretary. thank you for offering. >> so general dempsey there not all that anxious to weigh in verbally here in public although he did say he supports the mission and that the mission can be accomplished in terms of degrading syria's chemical weapons ability. what explains general dempsey's body language here. take a look at this excerpt of a letter he sent to capitol hill back in august in which he raised pointed questions about the effectiveness of military force. general dempsey said the use of u.s. military force can change the military balance but it cannot resolve the underlying and historic ethnic, religious and tribal issues fueling this conflict. so here's a military man who has expressed reservations or questions about whether u.s. military force can really change the overall war in syria though he said yesterday that he thinks that they can definitely destroy the air force of the assad
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regime and can definitely impact the assad regime's ability to deliver chemical weapons so some tricky military questions here, becky. >> thank you. we'll check in with you later this morning. concerns about syria, the debt ceiling and the fed keeping markets volatile. how would you put those in order. it's hard to do that but you have a possible political problem with the debt ceiling and the budget. you got syria, maybe near term and then the over arching concern about tapering. all at once, jeff. how would you characterize the investing environment with that in mind? >> right. i think that tapering clearly was the issue that was first known by the markets. and i would think that syria's an add-on to that, really having markets becoming even more volatile. you look at yesterday as a micro
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k kosism. then again the talk about syria and quickly the pullback in the markets getting back just above break even by day's end. i think that's what you have going forward. we would think that's probably the case for the next 30 to 60 days even. as all of these issues get resolved. you have german elections you could add i believe september 22. so you have a lot of unknowns that really this would probably be a september to remember. hard to rank them. i think each playing the role. >> they all affect each other depending on what happens with the debt ceiling, what the fed does and all interrelated. >> it could affect them on the september 17-18 decision. that said, we are not talking about making any radical adjustments to our asset allocation. we continue to think history shows that if you can stand pat
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here and even use that weakness and volatility to your advantage, that is actually -- that serves your clients best during these times of uncertainty. and what we think is a longer term bull market. that's the backdrop that we see. we see stronger growth going forward, earnings continuing to grow. look at the semiconductors premarket this morning. as you head had demand up. you have these little mustard seeds. notwithstanding all of those other issues we discussed. >> one thing that any one that watched the markets, the market hates uncertainty. you need to be a middle east expert, i mean, there are scenarios, if things went wrong, depending on who the players are there, that just a nice clean simple you know, strike that occurs over a two or three-week period is a lot different from
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what the market might worry about. i don't know how you take new motions with that on the horizon. i think that's the issue everybody's facing. who knows about with iran, russia, it's just a mess. jeff, we appreciate it. you are standing pat and maybe adding to positions. i guess that's probably -- that's what we'll take away from this. >> right. >> coming up the commissioner of the national football league roger goodell, join us next to kick off the season. our news maker of the hour. cbs ceo les moonves about the deal that ended his network's war with time warner cable and the role that football played in forcing that settlement. ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor...
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the nfl's 2013 season kicks off tomorrow night on nbc and the road to the super bowl will lead us to met life stadium and the new jersey meadow lands. joining us to talk about the business of football is nfl commissioner roger goodell. thanks for being here. great to see you. >> good morning, becky.
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glad to be with you. >> why don't we start off talking a little about the super bowl because there is the prediction from t"the farmer's almanac" you could see a lot of snow. is that a good thing? >> you know, we played this game with the intention that we were going to go play in the elements. when you play in february in new york that there is a potential for that. we think the game of football is made to be played in the elements so if there is snow, we'll be prepared for that. >> all right. the football in the snow is a big one. we've been talking about that. roger, we're thrilled to have you to talk about the settlement on concussion-related brain injuries. this is a topic we discussed in the past. the settlement is for over three quarters of a trillion dollars. it says that the nfl is not assuming injury, that the injuries were caused by football but this is a huge move, a massive amount of money. why did you agree to this settlement? >> well, becky, we agreed to
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create this fund through the efforts of judge brodie and judge phillips who mediated this. because we wanted to get the money to the players who are in need. and if we had litigated this, it would have gone on for years. obviously it's complex litigation, uncertainty. we felt with the ownership this was the right thing to do, create a fund and to get help for those who may be having challenges, and their families. >> and their families. i should point out $765 million, i think i said -- three quarters of a billion. roger, is football safer at this point? i know you made great strides to try to make it safer. is it a safe sport? >> i don't think the game has ever been safer, becky, or better and more exciting. i think the changes we're making at the nfl level with rules and equipment, pioneering research, have worked its way all the way down through college football to
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high school football to youth football. our heads up program with youth football is changing the way the game is played and by using the proper techniques, the game is safer. and better for our kids. and there are always risk rewards when you play any sport but the reality is, football has a lot of great values. things that i learned playing tackle football for nine years i use in my job today. i wouldn't give up one single day of playing football. i hope other kids have that opportunity. >> we talked about a lot of thing this is morn; bob kraft, we had tom brady. we brought up johnny football. johnny manziel and some of the actions we've seen recently. a lot of questions raised the last week as to whether he's just a young man, whether he's learned a lesson or not but some of his behavior he just played in, well, didn't strike a lot of people being the most professional. what words of advice would you have to younger players who are probably headed to the nfl?
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>> well, you know, we take our responsibility of being in the nfl very seriously. so whether you are a player, a coach, a commissioner, an owner, you have responsibilities to your team, to your teammates, to your community. and to our fans in general. so we want and we work with all of our young players to try to give them the skills to be able to handle themselves properly, to make the right decisions, to reflect well on themselves and others. so, being part of the nfl is more than whether you play great football on the field. you have to make sure you're doing the right things both on and off the field. and that's what we reinforce with our kids, both when they are in the nfl but also as they are coming into the nfl through college football. >> roger, you recently made a trip to silicon valley, had people wondering if the nfl is looking at a future partnership with google or some other internet way you can get across to reach all of your millions of
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fans that are out there. you have a vong relationship with the networks right now. how does the internet, potentially, change that relationship down the road? >> well, becky, what we like to do, this is not unusual. we do this every year is go to silicon valley to learn. we want to broaden our partnerships. as you mentioned we have great relationships with our current partners that made nfl football more popular. because of the way that they use technology to present our game. what we want to do is continue to look to the future. how can technology help the nfl reach more fans and improve the experience for our fans. there are a tremendous number of companies in the valley that are doing wonderful things with technology. our content can play a huge hole in that effort. and we heard that loudly from all over the different partners that we met with. google, youtube, ebay, a lot of other partners that are focused
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on picking great content and making the experience for consumers better. >> i trust you, roger, and you've got i mean, this is you know, this is a shiny beautiful little thing and i trust you with caring for it. but be careful with that digital. with everybody has traded analog dollars for nickels. you are made for network tv. you're made for aggragating hundreds of millions of eye balls. i mean it scares me to think you could see any game you want on some stupid little iphone. don't do it. don't do it. it won't be worth anything. it won't be worth anything. i know, you think about it -- >> you know, brian roberts is singing his praises. you dot your annual review coming up? >> no. i'm making a point. expanding your audience is
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different than you know, selling -- the content is the most valuable content on the planet. >> i was going to take the other side. >> i know. everything. >> the question i was going to ask roger it's the same question in reverse is do you see a day where google, not that you are taking dollars, where google says you know what, we're going to pay you a billion, 3 billions, you carve out something like the nfl ticket that you did for direct tv. that's a question. >> let me take a step back. joe, joe made a very important point also. we're proud of the fact that we continue to be on network television and the only league that has our games on network television. that is something that we're very proud of because we are reaching the broadest possible audience. what we have done is tried to take technology and the to complement that. we have long term deals with the partners but we want to complement those relationship
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and draw more viewers. >> you say complement -- they hear compete. >> go slow. >> of course they compete. but we want competition. competition's good for our content. but we're very i think careful, robert chairs our broadcast committee, doing long term deals with our networks when we could have moved to different technology. we have remained on broadcast television and continue to make our product free which we think is great. >> you pointed out before, roger, you make the tv product so good with the big screens and you are have to think what you do to attendance. there are so many, we talk with unintended consequences all day long. there are unintended consequences of the digital future. i know you think about this all the time. >> actually you make a very good
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point. and my son john developed an app where any one only in the stadium has four views of every play,s s iinstantly. we know that we have to improve that and we're doing things. >> just for the patriots? >> just for the patriots. you know, that's an -- i think we probably would consider selling it to the other teams. >> roger, you can be the dealmaker. >> roger's done a heck of a job. what he's doing between the concussion settlement, focusing on health and safety, and you're right, we don't want to dilute our content. we want to keep it special. >> acto andrew's question. could you see carving out something you had something like what you see for dish tv, to broadcast over the internet >> we are partners with direct
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tv on our sunday ticket package. there is no question we think others are interested in that package. we think of that as a premium package. we wantmake sure that continues to be available to a specific audience and will complement our broadcast audience. we're not trying to drive eye balls away but we're trying to use that content in an isolated fashion to create a premium experience that our fans love. that's why the sunday ticket package has been successful. we have to continue that as technology is changing and mobile continues to develop there are new opportunities for us to be able to reach those fans. that's what fans demand. you can sit around and say we want to keep the world the way it is. it's not staying the way it is. it is going to change. technology is out there and we as the nfl have to be at the fortoronto of that, thinking through that but being cautious to joe's point about making
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dramatic shifts in our broadcast. >> my suggestion wasn't that he take it off the network. >> take it from dish. >> if there is anything -- there's like a lot of old media, there is no reason that it should be -- there is one, that's a distinguish reason for network t stroorks exist. it's a beautiful symbiotic relationship. football, it's super bowl, playoffs, made for networks. sorly but it is. it's the best for both. >> it is and it's live television. >> you're not going to look at it somewhere else. >> he's not going to take it off the air. >> got to be careful. he's got this shiny beautiful -- if you are too careful you break it. >> roger, thank you for coming on. it's going to be a great year. >> thank you. >> you can catch the kickoff of
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the nfl season tomorrow night on nbc. >> the broncos take on the ravens. peyton manning will be looking for payback. >> a heck of a way to kick it off. coming up, breaking economic data. we'll get international trade numbers. you've all been waiting for that at 8:30 a.m. eastern. then the cabling war between cbs and time over is over. first on cnbc. she's always been able to brighten your day.
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when we return this morning we've got international trade numbers for july. that's a few minutes away. we'll bring you the numbers and the instant market reaction. then our news maker of the morning, cbs ceo les moonves. stick around, "squawk box" will be right back. ategies to generate income? with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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welcome back to "squawk box." july trade balance. hitting the wires. 39.1 billion. minus of course so it's a trade balance that's a deficit. last month's was a four-year best back to october of '09. at 34.2. it was changed briefly just a bit, to 34.5. currently standing at 39.1. so 39.1 is the number. any response in the marketplace, not really a lot. but this is significant. trade balance and inventories so widely followed, because big
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revisions in this area have big implications to gdp and the combination of inventories and that four-year low trade deficit helped contribute to the upgrade over 2% of our second look at second quarter gdp. back to you guys and gals. >> for more on the data, let's get to steve liesman. >> i want to know, did rick say there was a revision to june? was it upward? >> from. >> we added from the construction data. so maybe it's a wash. we're still running 2.5, 2.7 on gdp. we saw yesterday about 1.8 we're doing for the third quarter. this number here is probably going to cause some estimates to come down a little bit. maybe in that 1.5% range. if i could, guys, focus quickly on a bright spot in our trade
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numbers which is the oil deficit. i saw a report recently that said that over the next several years our imports are going to fall from 15 million barrels a day to 2 million barrels a day. folks, the energy boom in america shows up in this chart. this is our oil. you can see we improved from about $20 billion in '06-'05 to about 10 billion. that's something that helps the trade deficit. all other things being equal. we're going to watch this as time goes by. it's going to eventually help the u.s. trade balance. becky. >> all right. >> told to keep it short because you have lots of good stuff coming. i wanted to share that exciting development. >> it's good to look at the chart. appreciate checking back in. thank you. >> we had other news. president obama in sweden, expected to speak shortly. we'll continue to monitor the president's remarks and bring you any headlines. coming up the man of the hour, the high profile war between cbs
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and time warner cable is now over. where does he come, les moonves comes here. cbs will receive fair compensation and he's making his way to the table as we speak. we're going to talk to him about the deal and the value of streaming content deals when we return. ♪ ♪ [ male announcer ] some things are designed to draw crowds. ♪ ♪ others are designed to leave them behind. ♪ the all-new 2014 lexus is.
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welcome back to "squawk box." we've been watching the futures
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and we have not seen much of a major move. this is about the lowest we've seen the futures all morning. dow down 25 points below fair valley. s&p off 1.5. the shares of dollar general, earned 77 cents a share for the second quarter. that beat the athlete by 3 cents. revenue beat consensus. same store sales rising more than 5%. that up about 4% this morning. >> after a month long blackout cbs and time warner cable reached a deal. we've been talking a lot about this. joining us with more on the deal, first on cnbc, les moonves president and ceo of cbs. good morning. thank you for being here. who won? >> well action we don't want to talk about winners and losers. i'm pleased with the deal. we got fair value for our content. we have the ability to put our content all over, we got the rights package we wanted so we're pleased. sorry we were off the air for so long but we're pleased how it
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ended up. >> who should we blame? i say this with kindness or respect. i was a time warner cable subscriber. wart wanted to blame them and part you. >> i get it. look. at the end of the day there are no heroes during this thing. and i'm sure the public resents both sides and feels like it's two big companies fighting it out. it was important that we take a stand. this is about the stand, about content and the future of content and how content is sold and how it goes to our consumers. and how it will be sold for the future. >> a question about retransmission fees. the fcc changed the law so you could get fees back in '92. since then a lot changed. i want to show you a clip. this is larry tisch, the former ceo of your company on this issue at a hearing in 1991 about the possibility of a blackout. i want you to listen to what he had to say. >> the thing that i see as a
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business man, if i were asking an exorbitant amount as a local station for the retransmission of my signal, the gentlemen on the other side of the bargaining table could say no and not carry it. i don't know what all of this argument is about. >> is that, in this day and age, though, given all the things that changed s that acceptable anymore for a cable company not to carry it and for you not to strike a deal with them on a fair or potentially even unfair terms. >> we are the number one network in the world, the highest watched network, we have been for 10 of the last 11 years. we have the highest rated comedy t highest rated drama and we also have something called the nfl where we pay a lot of money for the rights which we're happy to do so. don't you think we should get fair value from that, from the cable operators who are paying cable channels, who run cbs re-runs more money than we were getting. so at this point in time when we
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provide to the cable operator, all of these phenomenal pieces of programming, we just want to get paid fairly. we, who is the number one network, feel like we should get a decent amount of retransmission fees. >> the time warner cable asked the fcc to look at this. how should they look at it from your perspective? what happened over the last month is that an acceptable piece of the negotiating puzzle? >> no, it isn't acceptable. however, to get the government involved is by far a really dumb thing. that is the last thing we want to do. we're in a free arkt, look. we've been involved in hundreds of these negotiations. we have never gone dark for a day since a month ago. that's never happened. we made deals with direct tv, with fios and verizon and at&t. these deals should be made in the free arkt. the last thing anybody on either side wants is government
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intervention. >> why so different than all of the other that you made agreements. >> they resented the fact that a broadcast network should get paid, they were looking back to pre-1992 when we didn't get paid. for that. and they refused to see that 90% of our viewers are getting their signal through either a satellite or cable or a telephone company and that we need to get paid like cable channels and they were looking back at a day that no longer exists where networks are over the air for free and everybody should be able to have them. >> do you see a day, and chase carey from news corp. suggested that there could be a day if arial, one of the new technologies, you are suing overs it, were to win, that maybe they take themselves off the air. only go over broadband or cable system. you see yourself getting to that? >> as i said, 90% of the time we are carried that way right now. i hope it doesn't come to that. i like being available for over the air. if people need to get that the
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way and want to get it that way. that's fine. but we could do that if we were placed into a corner because of business reasons, because of an aerial or a time warner cable saying that they don't want to pay us. >> that threat's out there. >> that threat is out there. i think it is highly doubtful that will happen but that's out there. >> when could it be so bad that someone think that you're abusing power? what if you asked for the super bowl that one-time fee or you don't get it on -- you need to be reasonable here or else you're going to be accused of -- >> we were reasonable. we made hundreds of these deals. including in the middle of the time warner deal we made a deal with fios, verizon, in a 72-hour period. we're not unreasonable. >> i know sometimes the people you represent, would say this. because of poor time warner they have to pay you way too much. because of that they have to pass it on to consumers. because of that consumers are going to pay too much and the
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average person -- it's not fair and there's not enough. right? aren't you going to -- aren't you going to get to where it's not fair to the consumers that you are charging too much. it's not fair. >> i hate seeing a grown man cry. let me tell you this. if you are the number one network, don't you deserve to get -- >> you keep saying this and this is an nbc owned operation. will you stop. god almighty. throw it in our face. >> it used to be. >> throw it in our face. that's like the 8th time. >> go to commercial. >> when can i tell you. we are the number one network. we deserve to get paid more than some of these others. >> let me ask you a sports question. one of the reasons you're here. mr. kraft. the other issue we were talking to roger about is the potential that in the future a google or a netflix or whomever decides to bid on football, maybe not originally something that goes on broadcast, but maybe the sunday ticket, something that
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you know, directv deal. does it creep that way to the point maybe it's not raeds to compete with broadcast today but 10 years down the line? >> well, look. we have a phenomenal relationship with the nfl we pay them a huge amount but get great return. it's the most popular entertainment on television. they are great partners to have. time warner came to us with the sunday ticket package that they did with directv d. that ache away from us, not really. it actually enhance what had we did. the future is in a lot of online stuff and the nfl will have some of their product on line. until it takes away from our audience which it isn't doing we're all in favor. >> am i wrong that network, if there is anything that it can do well, and you do other things well though i want to ask you about why showtime, for example, can develop hits like homeland and seems so hard for networks. before we get to that isn't neat work made -- aren't those two
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perfect together. there is a reason to keep the networks. the reas is because of bob kraft and the patriots. >> to your point there is no question that had a lot to do with our settling. it's not just ironic that we settled six days before the nfl season began. we sort of knew that would happen. and the power of the nfl is great. and yes, the nfl and broadcast is a great partnership. it's been for many, many years. we are thrilled to have it, to be in business with mr. kraft. >> the other thing, okay, ncis. i don't watch it. all right. there are things i do watch, though. >> there are 21 million people who watch. >> but there are -- i know you don't but there are -- why can't -- what is the difference between someone that is at -- is it only 12 episodes and the great actors do 12. is it that you need a whit 4 million instead of 20 million. >> showtime, they sell
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subscriptions. they have to -- they do a type of program, they only have to run 10 or 12 at a time. showtime is doing phenomenally well with homeland and dexter, amc, hbo, there's a lot of great programming that is going on, on cable. network is different. you need much more mass appeal. you look at the numbers of network, too 1 million for ncis. 18 million for the big bang theory. there are huge hits. the numbers on cable phenomenal product qualitatively but the numbers much smaller. >> i would say it's cursing and newty. but it's not. there is a way to do. >> some is, some isn't. there is something for everybody. the good news cbs is doing great and showtime with very different product. >> trying to develop a hit on network seems like it's -- and some of the stuff that does become hits i don't know.
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>> i don't know what -- why can't you -- why can't there be a massive hit. >> i wonder whether -- >> mad men. >> viewers habits are changing so much. you think about binge viewing and netflix and house of cards whether that is going to change the way networks have to behave. >> let me bring this back to time warner cable. one of the things we were fighting for, is the ability to slice and dice our content all over the place, to put it on netflix, on amazon, to let people binge view. that's our inherent right. as we go forward, as the network model goes forward as content companies go forward. the reason we were supported so much by all of the content companies in this battle is their ability to do exactly what you're talking about. looking at putting contents all over. >> so right now you get to have your cake and eat it too in terms of being able to get a good value from the cable provider plus then sell it separately to everybody on an
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independent basis digitally. >> that is correct. >> ultimately though, if you believe that broadband is taking over, do you believe that the future is the really about the digital stuff and then you get into this analog dollars for pennies, nickels or dimes. >> i've been in the business for 30 years hearing about the death of network television and the death of our product. that's not happening. it's just changing. how we produce our content, we're still get as i said over 20 million people for some of our shows, able to sell it elsewhere. is it evolving, absolutely. but at the core is still creating hits for both network and cable. >> seems like it's evolving much more quickly. >> no question. >> people in college aren't watching television. ge thet information on line. >> the important thing is exactly that. we are getting paid now by the netflix and the amazon and on for our shows. at the point, and that point is coming very soon, where the advertising on online will be the same as on the network.
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we won't care where you are. >> you'll get the same price from advertisers on line that you do? >> that is correct. we're heading to a point. >> you say eventually. two years, three years. >> three to five years. three to five years. >> that's a game changer. >> it is. and you're right. you go to a college campus most kids are watching their shows online. they are. there aren't a lot of televisions on line but they are getting measured, we're putting more advertising in. we're getting paid for that. >> if you didn't do the cable bundling if it was individually, would it be net-net the same amount of money? >> the bundle. >> everything is ala carte. >> you charge more? >> at the end of the day, we would do fine. okay. cbs in and of itself we don't have a million smaller cable channels. cbs would be just fine. some of the other people who have a lot more channels than we do, ala carte doesn't quite
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work. the bundling works because there are many people that get the advantage of getting a lot of networks for free and it's diversified. >> and as the number one network i would say that one more time -- >> you could say it as often as you like. >> you don't -- you said that with such zeal. >> i think you're out of the demo that i want. to tell you the truth. >> thank you all. >> i love this guy. >> closer to the demo than you are. all right. friend. ceo of cbs, thank you for coming in. we should tell you that president obama and the swedish prime minister, we'll continue to monitor the president's remarks and of course we'll bring you the live questions and answer sessions in just a bit. joe. >> he had that ready. coming up more from our guest host bob kraft when we return. he'll issue an invitation, this is good, to russian president
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vladamir putin.
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we have more from our guest host today, patriot's owner bob kraft. you told us years ago, a story with vladimir putin. you showed him your super bowl ring and he kept it after that. john mccain weighed in and said he thinks in the old west is the worst thing you could do is take a man's horse. in new england, the worst thing you can do is take a man's super bowl ring. what do you say at this point? >> the president is making a comment that he's making me a new ring. and so we want to invite him to come here and give it to us on nbc during one of our national games here. he would always be welcome to come to us. but, you know, i gave it to him as a gesture of friendship, and this thing developed into a biggest story. we're having fun with it.
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>> it has taken on a life of its own at this point. you're offering an invitation to come back with a ring that he said he's making for you. >> right. actually, don't forget, you have the number one prime time show. >> right. >> you didn't mention that when you were talking to les. >> yeah. >> which is football, again, yeah, absolutely. >> you said it. >> i know. i know. i had to give les, you know, it's nice to have him here so i didn't want to rub that? >> it's great. >> i want to go back to the ring for half a second. i thought he took a ring. you gave it to him as a present? a little bit of confusion about that. >> everybody is saving a little face here except you had to throw that in here now. >> i'm sorry. i thought there was a whole thing to this. >> do you remember the guy who was walking along in an umbrella and got stuck in his rear and it had ricin on it and he went -- bob, is -- we love bob. >> we do. >> we want him to be okay. you don't go around saying -- >> i read the papers, though. >> it's difficult. >> sorry.
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>> you can't believe everything you read. >> you can't believe everything you read. >> good to know. >> we're -- >> very generous guy. >> see pictures of him like doing rkarate -- not bob. putin. he's a dangerous man. >> i see. i see. >> bob, football season is about to start. we are ready for this. are you ready for this at the patriots? >> we're very excited. you know, i think in this new age of technology and with our iphones and our ipads and what have you, we don't build relationships the same way. and i think there are two things in this world, your pal kenny chesney and sports and music bring communities together like nothing else. and i know our fans are really excited and throughout the country, it's a great excitement. >> we are looking at president obama who is speaking right now with the swedish prime minister. they're getting ready to take questions. but let's listen in right now to president obama who is speaking in stockholm. >> those are goals that we
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share. and we will keep working towards those goals. and more broadically, given sweden's close partnership with nato, we also touched on some of the other security challenges. and i expressed my appreciation for the extraordinary work that the swedish armed forces has done in whole range of issues including afghanistan, efforts to resolve some of the conflicts in central eastern europe and the ongoing training that's also being provided and the good example that's being provided by swedish armed forces here in europe. mindful of the jobs that are supported by trade between our two countries we discussed ways to partner more, including creating a clean energy partnership that creates jobs and combats climate change effectively. sweden is obviously an extraordinary leader when it comes to tackling climate change
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and increasing energy efficiency and developing new technologies. and the goal of achieving a carbon-neutral economy is remarkable and sweden is well on its way. we deeply respect and admire that, and i think we can learn from it. in the united states we've taken some historic steps, doubling our electricity from wind and solar, improving the fuel efficiency of our cars, reducing our carbon pollution to the lowest levels in nearly 20 years but we all know we need to do more. so my new climate action plan, more clean energy, more energy efficiency, less emissions will allow us to do even more in the years to come and we look forward to a close partnership with sweden on what is going to be a global challenge. and at the royal institute of technology today i look forward to seeing some of the innovative ways that we can cooperate. we also talked about trade and the trans atlantic trade
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investment partnership, or ttip. i want to thank sweden and the prime minister for the strong support for these negotiations and i believe that for the u.s. and the eu to reach a high standard comprehensive agreement with create more jobs and opportunity on both sides of the atlantic. as i head into the g-20, i shared my view that here in europe and around the world we've got to stay focus on creating jobs and growth that's going to be critically important not only for our economies but also to maintain stability in many of our democracies which are under severe stress at this point. finally i want to salute sweden along with all the nordic countries for your strong support for democracy and development. strengthening democratic governance in eastern europe, global efforts against aids, tb and malaria, responsible development in africa. i want to thank in advance the prime minister for hosting our
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meeting tonight with leaders of all the nordic countries and i look forward to our discussion. so to prime minister, thank you so much for your hospitality and the people of sweden, thank you. this is a wonderful visit, and i'm looking forward to it producing concrete results that will enhance the lives of both the american people and the people of sweden. so with that, i think we'll take some questions. >> yes. >> open the floor for questions. the first question goes to swedish news agency. >> mr. president, welcome to sweden. >> thank you. >> as you know, the surveillance affair has stirred up quite a few angry reactions even here in sweden. what do you want to say to those effected and how do you think the affair affects the relationship between our coupleries, and as a follow up to that, i know that at home you are sometimes accused of wanting
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to turn the u.s. into sweden. now that you're here, you've been here for several hours. what have you seen? what inspires you? what do you want to import to the u.s. in terms of ideas for society? >> well, let me take the nsa question first because this is a question that i've received in previous visits to europe since the story has broke in the guardian and i suspect i'll continue to get, as i travel through europe, and around the world for quite some time. like other countries, we have an intelligence operation that tries to improve our understanding of what's happening around the world. and in light of 9/11, a lot of energy was foc


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