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CNBC Excerpts: CNBC’s “Squawk Box” Kicks Off 20th Anniversary with Omega Advisors CEO Leon Cooperman and Blackrock Managing Director Rick Rieder Today

WHEN: Today, Tuesday, September 8th

WHERE: CNBC's "Squawk Box"

Following are excerpts from the unofficial transcript of CNBC interviews on CNBC's "Squawk Box" (M-F, 6AM-9AM ET) today with Leon Cooperman, Omega Advisors CEO and Rick Rieder, BlackRock Managing Director & Chief Investment Officer of Fundamental Fixed Income on the future of investing. For a roundup of all the interviews on CNBC's "Squawk Box" today, go to squawkbox.cnbc.com.

All references must be sourced to CNBC.

Leon Cooperman, Omega Advisors CEO

COOPERMAN ON ARTIFICIAL TRADING

IN THE REAL WORLD, THE S&P ISN'T WORTH 50 OR 100 POINTS MORE OR LESS IN FIVE MINUTES. THERE'S ARTIFICIAL TRADING TAKING PLACE AND IT DESTABILIZES THEIR SYSTEM. I'M A PROFESSIONAL INVESTOR, QUASI-PROFESSIONAL WHATEVER AND I GET DESTABILIZED BY IT. I DON'T THINK IT'S NECESSARY AND I THINK THEY SHOULD DEAL WITH IT. THE MACHINES ARE OVERWHELMING THE ABILITY OF THE MARKET TO DEAL WITH IT.

COOPERMAN ON HIGH FREQUENCY TRADING

ABOUT 75% OF DAILY TRADING TODAY HAS NOTHING TO DO WITH FUNDAMENTAL INVESTING. IT'S TIED TO HIGH FREQUENCY TRADING, IT'S TIED TO SLICING AND DICING OF ETFs AND THINGS LIKE THAT. IT'S THE COMPANIES THAT ITS INDIVIDUALS NOT ANALYZING FUNDAMENTALS. IN THE WORLD I GREW UP IN, IN A WORLD WARREN BUFFETT GREW UP IN, IF SOMETHING WENT DOWN YOU WANTED TO OWN MORE. AND IN THE WORLD THAT WE ARE IN NOW, IT GOES UP, YOU WANT TO OWN MORE AND IT GOES DOWN, YOU WANT TO OWN LESS. AND THAT IS JUST COUNTERINTUITIVE. IT LACKS COMMON SENSE.

COOPERMAN ON CHINA

CHINA IS DEALING WITH DOMESTIC ISSUES. THEY ARE SERIOUS ISSUES, THEY HAVE NOT BEEN UNREFLECTED IN THE MARKET. CHINA AS A WHOLE IS NOT ALL THAT RELEVANT FOR THE UNITED STATES. EXTRAORDINARILY RELEVANT FOR CERTAIN INDUSTRIES – MATERIALS, COMMODITIES, ENERGY, ET CETERA. BUT THOSE INDUSTRIES HAVE BEEN DECIMATED.

COOPERMAN ON BEING FULLY INVESTED

WE'VE BEEN BUYING. WE'RE REASONABLY FULLY INVESTED. I THINK, YOU KNOW, WHEN I GO THROUGH MY LIST, MY CHECKLIST, EVEN THOUGH I THINK THE MARKET IS IT'S OWN FAIR VALUATION, I THINK THE MARKET IS NOT IN A POSITION IN MY OPINION TO GO DOWN A LOT. I THINK THAT THE PATH IS STILL UPWARD.

COOPERMAN ON THE FED

THE FED HAS BEEN SOMEWHAT IRRESPONSIBLE. I SEE AUTOMOBILE SALES AT 17.7 MILLION SEASONALLY ADJUSTED ANNUAL RATE. I SEE US INCREASING EMPLOYMENT BY 200,000 A MONTH ON AVERAGE. THERES NO BASIS FOR ZERO RATES. STOCK MARKET ISN'T DISCOUNTING ZERO RATES.

JOE KERNEN: BUT IF THERES NO HARM, WHATS THE PROBLEM?

COOPERMAN: THERE IS HARM.

KERNEN: WHERE IS IT?

COOPERMAN: THERE IS HARM. THEY ARE DESTROYING SAVERS.

COOPERMAN ON THE U.S. MARKET

I THINK THE U.S. MARKET IS REASONABLY FAIRLY VALUED. I THINK THE MARKETS IN EUROPE ARE SEVERAL YEARS BEHIND THE UNITED STATES. WE SEE EUROPE BEING A BIT MORE INTERESTING THAN THE UNITED STATES. WE SEE JAPAN WITH QE INFINITY BEING INTERESTING. SO THAT'S A RELATIVE WAITING. WOULD WE EXPECT EUROPE TO OUT-PERFORM THE U.S.? PROBABLY. WOULD WE EXPECT JAPAN TO OUTPERFORM THE U.S.? PROBABLY, BUT I DON'T THINK THE U.S. IS POISED FOR DECLINE.

COOPERMAN ON SOMETHING WRONG WITH THE SYSTEM

IF PEOPLE PERCEIVE THE RISK INVESTING IN STOCKS IS GREATER, RISK PREMIUM GOES UP, THE MULTIPLE GOES DOWN. THE MULTIPLE GOES DOWN, COST OF CAPITAL TO BUSINESS GOES UP. YOU KNOW, IF IT LOOKS LIKE A DUCK, WALKS LIKE A DUCK, TALKS LIKE A DUCK, IT'S A DUCK. THERE'S SOMETHING WRONG WITH THE SYSTEM. THE REGULATORS HAVE TO SOME PAY ATTENTION TO IT.

COOPERMAN ON STOCKS BEING ATTRACTIVE

STOCKS ARE STILL THE MOST ATTRACTIVE HOUSE IN THE FINANCIAL ASSET NEIGHBORHOOD. BUT THEY'RE NOT CHEAP. I THINK THE MARKETS PRICED TO GIVE YOU RETURN IN LINE WITH GROWTH AND EARNINGS.

COOPERMAN ON OIL PRICES

THERE'S NO QUESTION IN MY MIND THAT LOOKING AT TWO OR THREE YEARS FROM NOW OIL PRICES WILL BE MATERIALLY HIGHER THAN NOW. LET'S GO THROUGH THE NUMBERS. AT THE PRESENT PRICE OF OIL AND GAS, THE MAJOR U.S. OIL COMPANIES REVENUES MINUS THEIR CAPEX AND DIVIDEND IS SHORT BY 100 BILLION PER YEAR. YOU KNOW THE MAJORS ARE NOT GOING TO CUT THE DIVIDENDS SO THEY ARE GOING TO CUT THE CAPEX. IF YOU DO THE SAME ANALYSIS FOR OPEC AND TAKE THEIR REVENUES MINUS THEIR SOCIAL COST, THEIR DEFICIT IS $500 BILLION A YEAR. UNLESS YOU ARE THE FEDERAL RESERVE, YOU CAN'T PRINT MONEY YOU CAN'T GO ON WITH HUNDRED-BILLION DOLLAR DEFICITS.

COOPERMAN ON OIL BOTTOMING

I THINK WE'RE IN A BOTTOMING ZONE FOR OIL NOW. IF THE GLOBAL ECONOMY MOVES AHEAD TO 3%, THERE'S GOING TO BE INCREASED DEMAND A MILLION A MILLION AND A HALF BARRELS A DAY. AND ULTIMATELY SUPPLY AND DEMAND WILL TIGHTEN UP. BECAUSE YOU CANNOT CONTINUE TO RUN THE DEFICITS IN CASH FLOW WERE RUNNING THEY CAN'T AFFORD IT. THE U.S. THE OIL INDUSTRY AS I MENTIONED IS $100 BILLION A YEAR NEGATIVE FREE CASH FLOW. AND $500 BILLION OPEC. ULTIMATELY THAT SELF-CORRECTS.

Rick Rieder, BlackRock Managing Director & Chief Investment Officer of Fundamental Fixed Income

RIEDER ON POLICY

MUCH OF WHERE POLICY IS GOING IS AS YOU DESCRIBED IS ACTUALLY INTO THE FINANCIAL ECONOMY IT DOES ALLOW FOR A GEARING OF BALANCE SHEET IT DOES ALLOW FOR-- I WOULD ARGUE IF YOU THOUGHT RATES WERE GOING TO RISE AND IF YOU THOUGHT THAT YOU'RE SEEING SOME OF THAT TODAY AS PEOPLE ANTICIPATE, IF THE FED IS NOT MOVING IN SEPTEMBER THEY ARE MOVING. ALL OF A SUDDEN YOU'RE STARTING TO TAKE ON SOME OF THAT DEBT AND MAYBE START TO SPEND THAT. ANYWAY, THE POINT BEING IS I THINK WHAT WERE DOING TODAY GETS TRAPPED IN THE FINANCIAL ECONOMY, THAT BENEFIT OF ZERO. WE NEED TO MOVE IT, FISCAL POLICY WILL GET IT INTO THE FUNDAMENTAL ECONOMY.

RIEDER ON U.S. ECONOMY

CHINA'S SLOWING HAS CREATED A VERY TRICKY DYNAMIC FOR TRADE, FOR MANUFACTURING GROWTH AROUND THE WORLD, TO ASIA TO EMERGING MARKETS. U.S. ECONOMY IS IN PRETTY GOOD SHAPE. THE U.S. ECONOMY WE THINK THE LAST FOUR QUARTERS ARE GROWING ABOUT 2.7%. THAT'S HIGHER THAN IT'S GROWN FOR THE LAST 15 YEARS. DRAMATICALLY HIGHER THAN IT'S BEEN FOR THE LAST 15 YEARS. THE U.S. ECONOMY IS OPERATING PRETTY WELL. AS LEE SAID, IF YOU LOOK AT AUTO SALES, IF YOU LOOK AT HOME SALES, YOU LOOK AT JOB OPENINGS, YOU LOOK AT ALL THE METRICS YOU CAN COUNT. U.S. ECONOMY IS OPERATING AT A PRETTY GOOD LEVEL. THE PROBLEM IS THE REST OF THE WORLD IS CLEARLY SLOWING.

RIEDER ON THE DOLLAR

YOU'RE TALKING ABOUT A VERY DIFFERENT TRADE DYNAMIC THAN YOU SAW IN THE LAST DECADE DRIVEN BY OIL. SO WE THINK THE DOLLAR WILL MIGRATE HIGHER. THE CHALLENGE IS YOU THINK ABOUT WHAT HAPPENED THE FIRST QUARTER, YOU HAD A 20% SPIKE IN TERMS OF WHERE THE DOLLAR MOVED. WE CAN'T AFFORD TO HAVE THAT. AND IT'S WHY THE FED'S DECISION BECOMES A BIT TRICKIER. AND I WOULD ARGUE THAT'S THE ONE GOVERNOR ON THE FEDS BEING ABLE TO MOVE IS YOU CAN'T DRIVE THE DOLLAR TOO HIGH.

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