WHEN: TODAY, FRIDAY, JANUARY 21ST AT 8AM ET
WHERE: CNBC'S "SQUAWK BOX"
Following are excerpts from the unofficial transcript of David Tepper, President & Founder Appaloosa Management, on CNBC's "Squawk Box" today. All references must be sourced to CNBC.
Tepper On Efficient Companies
CORPORATIONS HAVE GOTTEN THEMSELVES INCREDIBLY EFFICIENT. SO PROFIT MARGINS ARE HIGHER ACROSS THE COMPANIES. THEY DID SUCH AN INCREDIBLE JOB OF CUTTING COSTS AND BEING CAREFUL. I'VE NEVER SEEN ANYTHING LIKE IT. SURPRISED HOW EFFICIENT AMERICAN BUSINESS CAN BE. THE PROFIT MARGINS ARE WIDER. NOW, EVENTUALLY PEOPLE WILL BE HIRED BECAUSE IT'S A GOOD THING FOR THE BUSINESS, BUT, DON'T FORGET MARGINS AND PROFITS NECESSARILY WITH EMPLOYMENT WHEN YOU HAVE WORLDWIDE COMPANIES OR S&P BASED ON A CERTAIN AMOUNT OF WORLDWIDE COMPANIES.
Tepper On Long Term Unemployment
EMPLOYMENT IS GOING TO GET BETTER. IT'S NOT GOING TO GET WHERE IT WAS AND YOU'RE NOT GOING TO HAVE CONSTRUCTION WHERE IT WAS. NOT GOING TO HAVE HOUSING WHERE IT FEELS. NEVER GOING TO HAPPEN -- NEVER IS A LONG TIME. BUT TEN YEARS? YOU KNOW? BUT THAT'S WHY YOU TALK ABOUT STUFF WITH THE FOOD BANK, YOU'RE NOT TALKING ABOUT THE NEXT COUPLE OF YEARS, YOU'RE TALKING TEN, 15, 20 YEARS.
Tepper On The Unfortunate
THERE'S TWO THINGS THAT ARE IMPORTANT TO ME, BRING IT BACK TO CHARITY A LITTLE BIT LONG TERM. YOU HAVE TO FEED PEOPLE. YOU HAVE TO HAVE KIDS WITH FOOD IN THEIR STOMACH TO LEARN. YOU HAVE TO HAVE EDUCATION. YOU DON'T HAVE THE LONG TERM UNEMPLOYMENT IT WILL BE DIFFICULT TO GET BACK TO WORK, I THINK. THAT'S JUST A REALLY UNFORTUNATE THING.
Tepper On Full Employment
I DON'T THINK 4% WAS NATURAL TO BEGIN WITH. WE'RE MORE NATIONALLY AT 5.5 OR 6%. NOW WE'RE SHIFTED EVEN HIGHERS THAT WILL BE THE TRICK FOR THE FED. THAT WILL BE HARD. THAT WILL BE HARD FOR THEM POLITICALLY TO STOP WHEN IT GETS IN THE SEVENS. IT MAY BE THAT FULL EMPLOYMENT IS 7% OR 6.5% NOW.
Tepper On Unemployment Range
WE'RE NOT GOING BACK. I THINK THE FED WOULD SAY WE'RE NOT GOING BACK TO 4%. THEY MAY NOT SAY THAT.THEY SAY WE'RE GOING BACK TO 5.5 OR 6%. AND WE MAY. I THINK WE'D GO 5.5% ON ONE SIDE AND MAYBE THE OTHER SIDE 7.5.
Tepper On Treasuries
MAYBE IF ECONOMY GETS BETTER, WE'RE UP TO 4% ON TREASURIES. WE MAY BE HEADED THERE. IF YOURE AT 4% ON TREASURIES YOU'RE NOT GOING TO SIT AT 11.8. YOU'RE NOT GOING TO SIT AT 12, 13, HIGHER THAN 14. HISTORICALLY, AT THAT SORT OF INTEREST RATE YOU'RE AT 17-18. I DON'T THING YOURE GOING TO GET TO 17-18, BECAUSE THERES A LOT OF DIFFERENT THINGS UNCERTAINTY WITH EUROPE AND CHINA AND OTHER THINGS. BUT TO GET TO 14-15. THAT'S NOT AN - THAT'S NOT A FAR STRETCH.
Tepper On Uncertainty
THERE IS UNCERTAINTY OUT THERE. EUROPE STILL HAS TO BE FIGURED OUT. AND THERE'S CERTAIN THINGS THAT WE'RE LOOKING FOR FROM EUROPE. CHINA IS HARD TO ANALYZE. WE CAN ANALYZE IN EUROPE AND WE CAN KNOW THE STEPS THAT THEY SHOULD BE TAKING. CHINA IS HARD. HARD TO ANALYZE. BIG PLACE.I DON'T THINK THEY ACTUALLY KNOW EVERYTHING THAT MOVES THAT PLACE. SO IS IT OVERHEATING, IS IT NOT? WE DON'T THINK IT'S QUITE OVERHEATING, BUT I'M NOT SO SURE. AND IF THAT PLACE REALLY OVERHEATED, AND REALLY HAD TO TIGHTEN, IT WOULD BE A RISK RIGHT NOW FROM
Tepper On Solving Europe
IF THE WORLD GETS BETTER, JUST THE ECONOMY GETTING BETTER. IRELAND WILL BE FINE, SPAIN, FINE, PORTUGAL, PROBABLY FINE. GREECE IS A LITTLE DIFFERENT ANIMAL. I DON'T KNOW IF THEY'LL BE FINE. THE ECONOMY GETTING BETTER WILL SOLVE A LOT OF PROBLEMS
Tepper On Semiconductors
WE HAVE BEEN INVESTING IN THE SEMICONDUCTORS ACROSS THE BOARD. EQUIPMENT COMPANIES AND STOCKS LIKE MICRON. IT LOOKS PRETTY GOOD FOR THAT SECTOR RIGHT NOW. YOU KNOW, THEY CAN HAVE, YOU KNOW, PRETTY BIG GAIN.
Tepper On Banks & Europe
THERE ARE BANKS THAT HAVE HAD DIFFERENT ISSUES THAT ARE INTERESTING THAT WE STILL OWN, WE HAVE OWNED, SOME OF THE STOCKS ARE THAT ARE COMING BACK, PEOPLE KNOW WHAT THEY ARE, BANK OF AMERICA, CITICORP, OTHERS. SO SOME OF THOSE STOCKS ARE STILL KIND OF INTERESTING. YOU KNOW WHAT? BASICALLY IF I KNEW THINGS WERE COMING. IF I GOT THE RIGHT THINGS OUT OF EUROPE, I'D INVEST IN DIFFERENT THINGS THERE.
CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.