tv Squawk Box CNBC June 12, 2015 6:00am-9:01am EDT
friday friday. 2015. squawk box begins right now. ♪ >> live from new york where business never sleeps this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. a big win for the warriors last night to even the nba finals at two games a piece. there's two stories trending about this this morning. both lebron james -- first of all a wardrobe malfunction and a bloody run in with a camera on the baseline that required stitches. we'll explain in a little bit. but first the business news of the morning. u.s. equity futures. this is a week things have turned around for the stock market. things are relatively flat but at this point we look like we're on our best week for april for
stocks after starting out looking like it was going to be a rough week. we'll see how friday finishes out but things are flat right now. >> jack dorsey heading back to the helm of the company. he'll going to run things why they try to find a replacement for dick costolo stepping down on july 1st. shares did pop on the news yesterday afternoon and you can see they're up almost 5% in the premarket and as we said we will be talking more about that in a little bit. in addition alstom is defending general electric deal to officials. the french engineering group is trying to sell it's power business to ge. reports of a statement of objection from the european commission did not prejudge the outcome of the inquiry. retalked about this on the show but they suggested qe needed to offer bigger concessions to win
eu approval it needs to pay for an expanded recall of cars. >> in other corp. gnat news we just talked about blackberry may put google android software on one of its devices for the first time. reuters says the change well according to reuters would be an acknowledgment that blackberry's devices failed to win mass appeal. so reuters figured out that no one has a blackberry except becky anymore. reuters shunned android saying the blackberry 10 line would be able to win back market share lost to apple's iphone. >> hopefully nobody tweeted anything about you yesterday. >> when i have my iphone charged
i can see it there. i didn't have it charged the other day when you were sending me things. >> so if you had to pick one to charge and one not to charge. >> it's the one that i have the charger for and by the way, the iphone runs out of charge faster than the blackberry does. >> is it an iphone 2 or something? >> 5. >> 6 is a little better. >> a little bigger and a little better. >> you have the 5. >> i have the 6 regular. >> you do? >> i do. >> no i have the six regular. >> does that make you superior to me. >> no. i do not feel anything. i feel completely -- what have you got there? >> that's true. he's got the six. >> yeah i do. >> my kids bought that for me. >> you thought it meant something. you thought i was one of those militia types in western jersey
in the bunker. on today's squawk planner we'll have inflation data. the may ppi rising by .4% and eight ten a first read on june consumer sentiment. a key number for the energy market. the north american rig count will be released at 1:00 eastern. that's a weekly census of the number of riggs actively exploring for or developing oil and natural gas in north america. by that i mean united states and canada. >> mexico. >> mexico is part of it. >> let's get a check on the markets this morning. as we showed you, the futures are relatively flat but you have to look back at what's going on this week. stocks were up once again. they didn't hold on to the gains we saw around this time yesterday because there were concerns that the imf said the
greek bailout talks had stopped and they weren't making these discussions anymore but you did see the dow up by .2% yesterday. if you add up what happened over the last couple of days it's the best two day gains for the dow and s&p 500 in a month. they're on pace for the last week since late april. the dow snapping a five game losing streak if it can hold on to things today. take a look at the early trade in europe and you can see modest declines this morning. the dax is down slightly. ftse is down by .3%. in asia overnight you saw that the nikkei was slightly higher. it ended up over .1%. the hang seng up 1.4%. oil prices look like they are sitting right around $60. they have given back around 1%. and if you check out the yield,
on the ten year note you'll see it's yielding back below 2.4%. 2.39% after touching above 2.5%. highest levels in about 8 months. the dollar this morning is up across the board. euro trading at 11188 and gold prices look like they are slightly lower. 1,000, $179 an ounce. >> let's get back to the biggest story of the morning. costolo stepping down at twitter. just two weeks ago kara asked him directly if he was planning to stick around. listen to their exchange for a moment. >> so you'll be there at the end of the year? >> i have to focus on my job and what i've got ahead of me. i don't worry about am i going to be working here on this date or that date. i focus on my job. >> and you feel you're in sync with the board. >> i don't feel like i'm in sync
with my board. i know i am. we communicate regularly. i probably overcommunicate with them and we're in sync. >> he told investors there's never a right time to begin a transition. we want to show you what's going on over the past couple of years here. look back at the leadership. there's been a lot of transition and maybe explains a little bit about how they have developed this narrative about how organized it was this time and then evan williams stepped in and kicked out jack dorsey out of that role. someone they trusted. the relationship went sour. this all went down from the height of the financial crisis and then what you had was evan williams had been running the
company and then he jumped in and took his role when things were not working out there either and well now we're back to jack dorsey. i have been making lots of calls. there's a couple of points to be made. yes it looks like he jumped but it was -- it appears that he jumped before he was pushed. he started making noises about this in january that he might want to leave but there were already noises on the board before we started talking about it that he should be leaving. so there's a disconnect of what's going on. one of the things they tried to say over and over again is i'm leaving and i'm not taking -- >> no severance pay. >> because he is stepping down himself. however two things one is they extended the contract to july 1st so he gets $6 million. that's the day that the shares vest, his last so he gives up 10
murder in the second degree. you can say what you want about that. but the other thing that's the larger point is if you really wanted to leave on a high note you would have tried to sell the company. one of the things i did learn over the past couple of hours yesterday was that they have had talks with people like google and others and it's not so clear that google and others want to buy this company. >> that's why the market cap is $23 billion. >> that's the biggest problem that they face. if you really western being pushed there were a lot of other things that would have happened. >> he is giving up 16.8 but he'll still get a different 5.6. you say that comes down to giving up 10. >> i think it's closer to giving up 10. they use a $17 million and then $5.8 million. because there's $5.8 million that comes due literally in just
a couple of days. >> right. >> nonetheless -- anyway i will just -- i have serious questions about the narrative of how this happened. i also think they began looking for an ceo two or three months ago. there's feelers been put out by board members and other things. >> what's interesting is dorsey is not on the committee. >> and another thing is somehow he says if i leave the company right now then it makes the transition easier. won't be rumors and speculation and we'll be able to operate our company. >> he's staying on the board, right? >> he's staying on the board and now that jack dorsey is in this role it will happen anyway. >> he's not on the search committee and evan williams is. >> that's true but does that change the dynamic in terms of the rumors and speculation of who is going to take over the job and what it's going to do to the company?
>> they can ask dorsey to stay? >> they could. but he doesn't want to pursue a different strategy than the current strategy that's already laid out which isn't working. >> i don't know if it's not working but he lost a lot of -- its hard to work for costolo it seems like. right out of the gate with him. >> some left on hill. some of them he pushed out. anyway the decision to leave twitter at the end of the month causing a frenzy of tweets. what's next for twitter? the person that's got the answer this morning, she knows more about this than all of us combined, she is in los angeles this morning. >> good morning to you. jack dorsey back as the interim ceo o ceo. he is sticking with the company's current strategy. >> one of the reasons that i'm stepping into this interim role
is because of the belief i have around our direction and our strategy and specifically around the product. i have a lot of context for it as chairman as talking with the management team running it's and i believe it's right and i don't anticipate any change. >> he will remain on the board as twitter begins it's search for a new ceo. former ceo will be part of the search committee. now internally there are two names in focus. adam bain currently head of global revenue and partnerships. he'll well liked in the advertising community but criticized as not having product experience. he noted the company's cfo is said to be too much of an outcider to silicon valley as a former wall street banker and lacks that product experience. this management shake up is likely to fuel more m&a talk. a long timeshare holder saying that twitter would make a good fit for google and on the press
coming back to twitter? right now there's a lot of internet properties charger than twitter in term of users. facebook, marijuana, instagram, more than likely a product person. >> if you're not in the use business like us -- i don't like tweeting very much. but i like once in awhile instead of going to a news service i'll see it there. >> that's where i found out about the boston marathon bombings. >> all of that. you see it all there. but if i wasn't a news person i don't know whether i'd want to hear what someone was saying and i don't know if i'd want to say anything so that everyone else can hear. i'd go to instagram if i wanted to share pictures. what is going to attract people. >> when twitter was founded there was a conversational element it was real time public tweeting and conversation with celebrities and political figures and things of that nature. messaging apps have taken a bit of the market share of that use
case and twitter has become a broadcast in a lot of cases. it's for big events. let's hit twitter for the latest real time information about that. that has value but most of us would like to connect with our family and friends and that's the case for book. twitter has one fifth the users of book. >> is it because the market capitalization is at $23 billion? are they being coy? >> that's a factor. we know they had interest in it in the past and the valuation of twitter has come a long way and it's long rumored that google could be interested. they already work together in two major ways. the search agreement that was forged and the double click deal. >> once you have that agreement in place you actually need to own the company.
>> yeah. you're already leasing what you need. why buy it. >> right. so once people admit i'm going to stay on it how do you get somebody to buy something based on using it? that's the second thing. now i understand -- >> i get promoted tweets. >> but there's this idea that eye balls will translate into some positive thing that happens to people that put stuff on it. i'm not convinced it does that. that's a tough sale too. >> the monetization part. they did hit a wall in the first quarter in terms of the ad growth. it's about direct response advertising. so these are commerce based ad formats that twitter has on its feed and the engagement rates on those ads are quite low and that suggests the engagement with the
content is low. if you're not going to favorite it you're not going to click on the tweet. then it's less likely you'll engage with the ad and that really puts a lid on the monetization. >> do you get those things and i see it and it's like what is this? and then i hit it and it says get rid of it tweet is irrelevant. it gives me choices for why i'm getting rid of it. whenever anyone that i don't follow tries to -- i feel violated and i do tweet is irrelevant and it goes away. >> you're happy again. >> i'm happy again. >> that's a sponsored tweet. >> not only am i not buying what they're sponsoring but it annoys me. >> maybe what some might say is that google or facebook have come a long way in terms of number of advertisers, their add technology, their ability to measure the effectiveness of those adds could strategically help twitter in terms of the
adds. >> what's the value of this company? >> somewhere in the low to mid 30s. >> that's a premium from where it is right now? >> yeah the thing about it is it does have unique characteristics in terms of that news broadcast use case but it has a history of volatile management. >> that's lower than where it is. >> that's lower than where it is. it's at 37. >> i'm neutral on it. >> you're thinking 23 million market cap. >> stock price. >> i'm talking market cap. you think below where it is right now. >> so the question really is because of the volatility in leadership is it worth more in the hands of somebody who has a greater tool of advertisers to draw from who has better ad technology. that's a hard question but it's the question we'll ask. >> roger was here and he said last week that look it's great product. somebody could do something with
this but you sound less convinced. you can do something with it but not from here. >> it's an excellent niche product for the use case that we're talking about this morning. i think it's unlikely that it becomes mainstream media reach product the way network television is. the way the ambitious statement of the company lays out. i think it has a place and it's a very valuable place but it's less of a mainstream audience. >> a great line yesterday, sarah lacy wrote his biggest problem is he was the coo of a company while book exists which is basically -- it's not book and it never really will be facebook. >> yeah. >> even though they sort of built this argument and arc that they could become facebook one day. >> they do have something that facebook doesn't have. they do have a use case that's
unique and different but they haven't been able to grow those users. 302 million users and facebook acquired what's app and that has north of -- over 700 million users. >> i know. >> facebook messenger. >> where's the audio guy -- >> you said it. you brought it on yourself. i stopped doing that to you? >> he used to get so mad. >> that's amazing you guys pulled it up that quickly. >> cannot we get it up quickly buddy? am i right? or am i right? >> thank you. >> thanks for having me. >> programming -- >> i got that. got to be quick. got to be quick. >> that's for sure with you. you're quick. i know that. anyway. kidding -- >> this squakward moment is brought to you by joe kernen.
>> i disagree with that. >> i vote in favor of you. >> i'm going to get more awkward here. >> david faber will be joined by -- this is amazing, dick dick costolo and jack dorsey at 10:00 a.m. eastern and then an exclusive with rupert murdoch. i'm kidding. >> he broke that news and now he's going to have these guys this week. >> did anyone over at the other organization mention that cnbc broke the news about -- that's embarrassing isn't it. >> i don't know what organization you're talking about. >> that's a little embarrassing to have to in your report say cnbc first reported. >> it's complicated. >> it s. but he doesn't have rupert. >> by next week maybe. >> let's hope. what did you say earlier, hope springs eternal. i saw the other night the person that coined that term and i forgot who it was already
because i'm old. >> they did say that and i can't remember. >> ultimatelyall about the markets. it's good to be hopeful rather than give up. >> morning in america. >> morning in america every morning. >> what's up? see you later. come back. will you come back? >> absolutely. >> we'll talk about netflix. coming up when we return shocking new numbers on cell phone saturation and how much data we'll all be using just a few years from now. we got the ceo of ericsson that's going to join us next. but first here's a look at this date in history. ♪
implths welcome back. smartphones are a tapel in our every day lives but is this just the tip of the iceberg. ericsson is out with a new report of revealing findings on our obsession. they believe by 220 70% of the world's population will use smartphones and carry the equivalent of 4.2 billion movie downloads. let's hear more from hans who is the president and ceo of ericsson and joins us from stockholm. thank you for being here. >> thank you. >> the numbers that i just shot
off, what does that mean? how much growth do you think we'll be using in term of the data we pull off the network every day by the year 2020? >> it's staggering numbers. we'll see exponential growth in the next 25 years. we need to remember it's 500 million subscriptions in the world on 4g and the majority of the mobile subscriptions in the world are still on 2g. so the next five years they're being built up but the prices of hand sets coming down makes this in the biggest technology that has ever been deployed so this will have not an impact on people like you and me having a smartphone. we'll see industries being transformed and of course society where impact is going to be on everything from health care education, et cetera and
that's what we're going to see and we'll already see a lot of disruption based on what's going to be so vastly deployed all around in the world. >> we had localities of discussions here in the united states about how we're going to handle all of that data. the networks need to be built up substantially to be able to handle that. how does that play out for people in terms of paying to access broadband? who pays the networks and are we up to the task of being able to do that? >> so far that's what we believe in the future. the data will grow. we believe it's going to grow nine times the next five years and three ways we're going to solve it. one will come out more spectrum in the world. second every new technology from 2 g to 3g or to 4g is more
efficient and finally we constantly innovate new ways of sending all of these data bits in the air. we're spending 5 billion u.s. dollars in research and development every year to innovate that. those three together mainly will make it happen and actually then we're going to see all of these networks coming out all around the world. we're in 180 countries. we see what is deployed and we see the movement from 2g phones to feature phones to smartphones and the networks is already there. we believe this is a se mario that's very much likely. >> i think it's a physics question or maybe a question about the world of cable and television in the future. we're talking about this in the context of smartphones and smart devices and maybe they all still will be. but do you see a time 5 to 10 years from now where people in their home get a majority of their video services wirelessly? >> yes, i do and if you look
into that nine times data growth the majority of that is video. we believe that in all the networks by 2020 60% will be video. we are talking about the whole world. the majority of the world's population will not have a tv set. they will enjoy that on some sort of a connected device in 2020. in africa it's 70 million mobile broadband connections. by 2020 700 million. so it's a tenfold growth on how many people in africa that's going to have access to a connected device that can stream down tv and media so we're going to see a transformation on the whole tv and media industry that we haven't seen the start of because so many people on earth can access it in a totally different way. >> all right. thank you very much for joining us today. >> coming up we have a story
every consumer should hear but actually knows about. you know how they do this. you just open a bag of chips. how companies are raising prices without you knowing it. i think you suspect it. but we'll talk. ♪ new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. all to grow our economy and create jobs.
>> you found the actual picture. >> i remembered my high school. and look at the tree. the plastic tree behind me. you know i've never -- i was adopted. i found my whole birth family right? so i have a brother. a surgeon in cincinnati. he is awesome. he found this and sent it. he when there. this is my high school yearbook. he had a way of finding it somehow. what i was going to say is obviously i've had a baldenss issue. i was obviously totally bald. all the way back then. >> but i had a seersucker for my high school graduation. >> it's beautiful. you tweeted out all the shot from all the senators. >> you're in good company.
you're in good company. >> big thick tie and did you see that feaux wood tree thing. >> that was feaux wood? >> yeah it was this thick. and remember that was a long time ago andrew. it was in the 70s. >> you should get that on facebook. >> why don't i put it on my twitter thing. >> that's a good idea. >> so do you feel better now? when i wore it was 45 years ago. >> so i was walking down the street in my seersucker suit yesterday. i didn't know if i was in a halloween costume and -- >> people were saying good look. >> that wasn't a mullet by the way. >> what do you consider that? >> that was the feather. did you have a comb in your back
pocket. >> handsome man. >> i was better looking when i was young. >> another story is how to come up with price increases when the consumer and public is not ready to go through with it. we were talking about how twitter stepped in it -- i'm sorry, netflix stepped in it when they raised prices so suddenly and the analysts we were talking to said they tint do it the right way which is to sneak it in in ways that the consumer done realize. that's been creating a problem lately. >> you know about this. this doesn't surprise you. >> i'm not surprised but the ftc is pushing back in some places. companies are giving you less and less. they're not shrinking the packaging size but putting less of the product inside. consumers are so upset they brought class action lawsuits. competitors that brought lawsuits saying they're
cheating. >> there's regulations about how far you can push it. >> it used to be 8 and now it's 6. >> but it does note on the front net weight. >> but they can't raise prices so they do it this way. >> procter & gamble old spice faced complaints like this in september. you can't see how much was in it but they were putting less and less in the bottles. slim jim got in trouble for violating some rules. >> do you know what it's called with toilet paper, desheeting. that's what i said. did you see that? >> i did see that.
[ toilet flushing ] >> there you go. the comedy jokes. >> it will not stand up in court. it's because i'm from cincinnati. i say robutt. >> it's a little funny. >> this squakward moment -- >> i said desheeting. >> one of elizabeth warren's former colleagues says the senator has it all wrong on the sec. we want to hear from you this morning. what story is grabbing your attention. tweet us squawk cnbc and we'll share the best of the bunch. at 8:50 eastern time. squawk box returns in just a moment. ♪
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♪ >> i don't know if we have shown that shot but that's the team that makes this whole thing operate. have we shown the shot of the control room before? there's the dream team right there. right this. >> who is that homer simpson character right there? who was that? >> it's from a simpson's episode where mr. burns, homer puts on a
toupee and he says i like it. that was your husband. you were going to out him? >> no you are. thank you. >> homer quick. >> we're going to turn the conversation to elizabeth warren and a lot of drama. now one of her former colleagues from harvard weighing in on a new opinion piece. it's titled why he liz belgelizabeth warren is wrong about the piece. we should tell everyone senator warren slammed her in a letter earlier this month and in your piece you wrote the following, our attention should not be on sensor warren's flimsy attacks on chair white. instead we should be focused on the regulations that would protect investors ensure our markets remain competitive. i want to play a quick clip of
dan gallagher that defended chair white. >> i have been on the losing side of way too many votes with her. she has been ruthless in pushing through some of these rules. i reason her ability to do that and her desire to get them done but the notion that it's stalled is just silly. >> talk about this piece, you have a problem we elizabeth warren but do you have a problem at all with mary jo white or any of the things she has been critical of? >> are you me do i have a problem with that? >> whether any of her criticism, this is elizabeth warren's criticism of mary jo white is valid. >> none that she recently voiced, no. >> so for example she raises issues about conflict of issues with mary jo white's husband which have created all sort of problems when it comes to votes. she has had to rekuzcuse herself.
you have no problem with those things? >> senator warren said she focused on one out of 1400 enforcement cases. there's no evidence that mary jo white has rekuzed herself on more cases than other sec chairs in the past and focussing on one, you know seems to me to not be a good idea. this is a tough prosecutor. that's why she was chosen as sec chairman and she's had a lot of experience which helps her do her job and if you have experience in the past there will be cases where you recuse yourself. >> she's been in the job about ten years. what kind of grade would you give her. >> a plus. even when it comes to dodd
frank. they are left on the table. >> there's a lot left for everybody. >> so i don't see any evidence that the fcc has been you know dragging it's feet at all. there's a total of over 450 rules that had to be implemented as a result of dodd frank. some of them incredibly complex. the sec spent an enormous amount of time dealing with money market reform you know those are major undertakings and, by the way, all of that requires funding. and i have not heard anything from senator warren about add adequately funding the fcc. a number of people said it
doesn't need any more money. it's budge increased about 12% compared to the banking agencies. why does senator warren call out for more funding. >> did you get along we elizabeth warren at harvard? >> did i? >> yeah. >> i was a great supporter of her coming to harvard and she was a great professor at the law school. >> how would you judge her in her new role then? >> as a senator? >> yeah. >> i think, you know certainly she has become prominent for a particular point of view. one which i don't share. but i think she has been articulate in that point of view. where i find fault is in her increasing tendency to make personal attacks as in the case of mary jo white. she has done this before. she attacks scott alvarez, the incredibly well respected
long-term general council of the federal reserve for speaking out on a factual issue about whether the push out rule would really make a difference. by the way a rule that warren opposed but president obama supported. so i have no problem with her positions even though i don't agree with them. what i would find fault with is personal attacks. when a very well respected well-known senator as senator warren is attacks individuals it gets a lot of attention and i'm afraid that it kind of almost borders on bullying and demonizing, a word actually that warren buffet used. >> you're going to be accused of some type of gender discrimination just for saying that professor which is the other thing that drives us all crazy here. you can't even criticize
elizabeth warren. it immediately goes to -- someone said yesterday jaime dimon was man banking because he tried to defend banking. >> thank you for joining us this morning. >> you know that your husband and i have been together -- >> longer -- >> much longer than you and your husband have. >> that's true. >> 23 years. yeah. i love him. you know that. >> you're not mansplaniing. >> i love homer simpson too. >> you have a long history. >> we do have a long history. >> when we come back this morning, consumed, the real restaurant business. we'll talk to a woman behind the new york city upscale business trying to win over the city's critical food press with an expensive relaunch. we'll be right back.
face. and that's the story. >> is that really -- is that like a broadcast term? the word there you used. i think we maybe should have gone with procuring. you used the "p" word. >> pimping. i feel -- i was just for clarity's sake. >> you are stepping out now too. right now let's get to a special guest from cnbc's consume. the real restaurant business. vermilion is an indian/latin restaurant. joining us now is the owner and founder of vermilion restaurant. and thank you so much for being here today. >> pleasure to be here becky. >> let's tell people quickly. it started out first in chicago. it was the first restaurant about 11 years ago. that was a huge hit instantly. here in new york you launched back in 2008 2009 right when things were in the middle of the financial crisis and it has not been the huge hit that it was in chicago.
what happened? >> let me start by saying that new york to me i think is the world's largest, most competitive restaurant market and toughest to operate in in many dimensions. one is just the breadth of offerings. the depth and the breadth from all cuisine. i've travelled to well over 30 countries and this city is something else. despite being in chicago which is no stranger to amazing dining as well. and then there are the operators challenges. it's expensive beyond belief. whether you're talking about garbage, water, or rents. and then there's the consumer. so sophisticated and demanding and jaded and seen it all. it's interesting. it's a perfect trifecta of horrors for an operator but at the same time it's your personal kilimanjaro or everest. >> you want to be in new york. >> exactly. so celebrity chefs flock to new york. many people see their dreams die and many make it. it's an amazing platform for
expansion. i think the show "consumed" does an amazing job of covering very different breadth of restaurateurs from a mom and pop to chain and expansion and takes us beyond the nitty-gritty of what you imagine might be a restaurant. it's not just sitting there and having drinks with robert de niro niro. i wish it was. >> what's been your biggest struggle, you think? just around the corner on lexington. >> it's the corner of park and 46th. i've taken on a very challenging niche. it's indian and latin, the melding of the two. i think new york being such a progressive city is the sophisticated market i want to break into. the international press has been amazing. the financial times, "wall street journal," esquire, the works. >> "new york times" not so much. >> local press has been really tough to crack into.
if i was -- what's the word. if i was self-pitying. but it's a challenge i've taken on. this relaunch is not just about winning other the press but winning over each and every new yorker. we started well. four stars from the new york daily news. >> fantastic. >> and from others. so optimistic. >> well we can't wait to see more of the story on "consumed" and since you're around the corner, we'll make a visit. >> absolutely. here's my marketing hat. >> thank you for joining us. >> my pleasure. coming up this morning's top stories including a management shakeup at twitter.
you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.
twitter ceo dick costolo is out. what it will take to get the social network back on track. hope springs eternal for a greek bailout deal. the imf walked away from negotiations and an eu leader told athens to stop gambling with its future. tom friedman weighs in on the future for greeks. and a trade battle comes to a vote today. john engler tells us why he thinks it's essential for the economy. the second hour of jurassic squawk begins right now. >> every time we've unveiled a new attraction, attendance has spiked. >> these animals got to eat. >> you have an asset out of containment.
>> keep your eyes on target. >> light it up. >> you are some action hero. did you see your shot there? >> did you see becky's shot there? >> i did see becky's shot. i wasn't going to mention that. welcome back to "squawk box" here on cnbc first in business worldwide. took a lot of work. you'd think it was a universal movie. >> we just like "jurassic park." >> i'm joe kernen along with becky quick and andrew -- i wanted to call you andrew raw sorkin at the beginning because of wrestling. that's what my daughter thought your name was. which is cooler. the latest installment of the "jurassic park" franchise hits theaters today. been 22 years since "jurassic
park" debuted on the big screen. we watched it the other night. they're running it again. >> i saw it last week. they've been running them back to back. >> still great. 14 years since the third movie in the franchise came out. the first "jurassic park" brought in more than a billion dollars for universal studios. it was the highest grossing movie of all time until "titanic" passed it in 1997. >> wow. wow. i can't wait to go see this. i was kind of caught up in the trailer. >> i love raptors. even if they weren't really like that. i saw someone complaining it's not scientifically accurate. >> opposed to the rest of the movie? >> exactly. they can't open the door. >> they open the door handle. >> and if you can't move that the rex can't see you. >> we have a lion opening a door in a video recently. if they can do it i think the raptors can figure it out. >> that's right. let's get to other top stories this hour. president obama lobbying for
votes for today's trade bill in the house. he made an appearance at last night's congressional baseball game. many of them oppose the bill. he then headed to the gop side if where he was cheered by chants of tpa by supporters. we'll talk trade with governor john engler in about ten minutes. he is the president of the business round table. then coming up at 8:15 eastern time, paul ryan will join us ahead of that key vote. in other u.s. news new internet regulations take place today. an appeals court rejected a request to suspend those new rules pending legal challenges. internet providers will be banned from blocking and slowing down access to websites and applications and won't be able to strike deals for priority delivery of traffic. also overseas greek officials continue to strike a hopeful tone for bailout talks. earlier today, one state minister says greece hopes to clinch a deal on june 18.
that comment comes after the imf walked away from negotiations in brussels yesterday saying there had been no recent progress in narrowing differences on key issues. our special guest this morning will be columnist tom friedman. he will join us to talk greece isis, and a lot more. that's coming up at 7:30. news just breaking in the last few minutes. former imf chief dominique strauss-kahn has been acquitted. he was on charges of aggravated pimping. specifically sex parties involving prostitution. the verdict was not a surprise. five out of the six accusers dropped their claims against strauss-kahn and the prosecutor recommended acquittal. one of the long lists of reasons of why we love france. and we were talking about it. the bar is very high to get a conviction on something like this. right? am i right or am i right? >> i'm not touching this
literally or figuratively. >> yeah. i know you're going to be a wimp about this. >> i am. >> is there a french word for fidelity? >> there's the motorcycle helmet the aggravated pimping. what's going on over there? >> i think the bar is very high to get convicted in any of these cases. >> i like the aggravated pimping terminology. >> it's the aggravated with the pimping. it's like, well where's the line that they draw? >> that's what i mean. obviously there must be laws written that says hey, this average pimping is fine but when -- >> when it gets aggravated -- >> that's what the prosecutors had to prove which they obviously failed to prove it was aggravated. who would you be aggravating? >> everybody joe. >> the hooker or the client? i don't know. >> that is technically the phrase. >> i know. >> i really can't believe it. >> i thought pimping was not a broadcast term. it's almost slang. i thought procurement might be
more suitable especially for a "new york times" columnist. but that's actually what it's called. >> there's a great article on a website called above the law that actually does a legal description of what aggravated pimping actually is. >> i do love -- >> i can hear the keys being typed in the google search. >> while people are googling that, we're going to talk about the other big story of the morning. they might be twittering this because there's a big shakeup at twitter. ceo dick costolo announcing he's going to step down on july 1st. he's going to be replaced by jack dorsey on an interim basis. jon fortt is here to give us more of a back story. we've been debating what actually took place. i made calls last night that raise questions about the narrative that's being developed here. >> yeah. it's a difficult narrative. because twitter has been a really difficult company to run. and part of what it comes down to is growth for twitter. you think about the fact they
got around 302 million active users as of last quarter. facebook messenger just reported 700 million monthly active users. twitter used to be in this apparent horse race with facebook. doesn't seem to be the case anywhere. the sidekicks that facebook has in its arsenal are outrunning twitter at this point. if you look at the situation now, jack dorsey appears to maybe want this job. some interviews he did last night when asked directly by business insider do you want this job, he said i'm not focused on that right now. asked again, he said it's not where my focus is whether i want this job permanently. and you'll recall a year ago the chief operating officer over at twitter was forced out. nine months ago, the chief of engineering jeremy gordon left. so there's been a lot of management turnover here. there's been a lot of drama in the top ranks.
it also doesn't sound like the committee that's looking for a new ceo which includes evan williams, which includes peter curry, which inside peter fenton also. they're in a big rush to find a new ceo. apparently they're going to take their time. there's a lot of rumors about who they might want to bring in. maybe they even do a hire over at flipboard. there was talk about perhaps twitter wanting that company. but there's also the possibility that twitter ends up being for sale. i've talked to some people about this last night. there's some head scratching over who might do this. because right now the market cap of twitter right up around $25 billion. that would be a huge buy for anyone. names like google gets tossed around. but it's really tossed around outside of google. talking to people who have been at twitter in the past. doesn't sound like google's really made offers specifically for twitter even when the market cap was a lot lower. might facebook do it? then again, they paid a billion
dollars for instagram which has outgrown it. $19 billion for whatsapp. i was thinking even amazon could be a fit. but, you know amazon $30 billion buy. i don't know. >> suggested when they were doing this last search deal with google that there was a little bit of dancing around the merger issue and google is not that interested. now that they have that search deal in place -- >> why buy the cow? >> right. you have access to all the information without actually having to own the product. >> yeah. >> so we will see. stay right here. we're going to bring mark right into this conversation. he's the lead tech analyst at rbc capital. mark before we get into who should run the company and what should happen, are you buying the story and are you worried that if this story isn't true that something else is going on behind the scenes?
>> let's see. the story remains the same which is this has ubiquitous reach. we've had more -- i've never seen as much sea level turnover in 1 months as an ipo you've got with twitter. it's very unusual. somebody is going to come in who needs the product side of the business and the advertiser side of the business. probably somebody from the public already a public company ceo. that makes it a pretty short list of people who could come in and turn this around. and it also is going to take quite some time. you know that's probably a year, year and a half turn around. it's a very hard job. we don't recommend the stock here. >> if jack dorsey were to remain the ceo, would that give you more hope or less? >> well it's actually a little disappointing from our perspective that he's not more publicly enthusiastic about taking on the ceo responsibility. you know, some of the greatest wealth creators in this internet
technology space has been the founder ceo types. jack dorsey coming in would probably really inspire a lot of the employees at twitter. so it's a little odd that he's kind of equivocating here about coming in full bore to take on the job. so if he doesn't do it, it does raise the question they do need an external voice. he may not be e the right solution, but in terms of firing up the base he could be the right solution. >> could you explain an outsider coming in with three ceos on the board now. dick costolo says he wants to remain on the board and be active. can you do the job with three former ceos looking over your shoulder? >> yes, that would be a little awkward. could be complicated. but start off. you've got a large cap name. you'd be coming in on. again, a brand that's youubiquitous ubiquitous. it's got a large user base. people talk about twitter being
niche. come on. it's 300 million people still growing reasonably year over year and a lot of upside potential. there's basic changes they're even now makes. we're finally moving beyond 140 characters. it took us five years to do that. there's a lot of low hanging fruit, we think, in terms of approving the products. somebody could come in and say this isn't a huge opportunity. >> is there a premium on this stock already and do you think there's a natural fit for somebody out there? i ask because i'm under the view there isn't one and that if there really was one, if you were dick costolo, you would have tried to sell this company before you said you'd buy it. >> yeah andrew i'd probably agree with you on that. let's see here. i don't think there's a takeout of premium in the stock now given where it's trading. it has a high multiple but that's because of the intrinsic of the platform. the obvious buyer is probably google, but i don't think that could get done for regulatory reasons. that would go through a year-long review. i don't know if there'd be a
willing buyer or seller frankly. that could really stymy growth at the business. so there's some interesting bidders. i don't think there's an obvious one. the chances of a take out here is slim. >> thank you for joining us and jon thank you for coming in. a programming note. the man who's been on fire all week david faber is going to be joined by outgoing twitter ceo dick costolo and cofounder jack dorsey. when we come back this morning, congress set to vote today on whether to give president obama fast track authority on trade deals. business round table president john engler says the bill is good for business. he will join us next. then columnist tom friedman joins us here on set. he's here for an hour to talk all things that are national. isis, greece russia a lot more. plus swing coach david ledbetter is here to help us work on our golf game.
former governor of michigan. it's good to see you governor. and we've watched the sides sort of get defined in this issue. and there's a lot of total misunderstanding out there that i think feeds into the confusion about what we're actually trying to do here. i would think that the president supporters would at least place their trust in his discretion on this. if the republicans are going to give him a win here are willing to do it i don't understand how the far left can just all of a sudden say we don't think the president's going to do the right thing for america's workers. it's very strange. >> it's a frustrating process. one of the things we're dealing with in the house is only about 114 members have ever actually voted on fast track authority trade promotion authority. so it's a brand new vote. there's been a lot of confusion about what is this vote. this is not the treaty. the treaty will be negotiated
later. this is the process that allows our negotiator to negotiate the best deal for america. it seems to me everyone ought to be for that and we've done this as caroline kennedy pointed out in her letter today. we've given this to every president of both parties. i think we're very close. i think the votes are going to be there today. i would say that this has probably been the best display in six years of real bipartisan cooperation with the leadership on the republican side working with the white house to get an important priority for the country passed. >> it's somewhat surprising because the way the union backers say it's -- and other progressives say it's sort of another win for big money, corporate interest. and it's going to be negative for workers. i don't ever remember accusing president obama of siding with corporations really.
i think that's a stretch. i think that's a stretch at this point. that's why i don't -- you know, the whole elizabeth warren narrative is very strange. and as you say, all this allows the president to do is negotiate it instead of 540 members of congress negotiating, then once it's all negotiated everybody sees exactly what it is. and then it gets an up or down vote by congress right? >> that's exactly right. and if you're going to negotiate with a dozen other countries, you better be in a position to say, look if you make a hard commitment at the end, you give up something and we give up something that everybody when they sign their name to the bottom of the page that gets an up or down vote in these respective countries. you would never get the best deal if you knew coming back to congress it was subject to being amended multiple times. what we have i think, though is a lot of clarity. we've done a lot of education and there's been a concerted effort on the part of a lot of groups who do believe that the
40 million american jobs that are related and dependent on trade are important who recognize the wages often average as much as 18% above other wages. so there's some good data. we've actually done an analysis. congressional district by district across america. there's a lot of objectives and this process lets congress say to -- they ought to be priorities. you're going to center stronger labor and environmental protection. it is a multiple win for the american economy. and it can be very good. we had defense secretary ash carter recently saying i'd rather have the trade deal. it's so important in asia that it has a significant contribution to national security. >> john we know this has become
incredibly politicized at this point. in fact, i've even been reading that some of the democrats in the house who are in favor of this are afraid to vote for it. i wonder what happens in that sort of an environment even democrats who know this would be good for their district feel they can't come out and vote for it. >> we're attracted to this slow growth or low growth cycle. everybody is looking at the zero sum rather than recognizing that growth can lift everything. and that's what we need is the gdp rate back above 3%. not stuck in this 2.4% 2.5% range we've been for nine years or so now. and i think this is a part of it we obviously think tax reform
and other things matter a great deal. but to the specific politics 95% of the people we sell to don't live in the united states. so we better be engaged in trade. we look around the world, everyone else is. the u.s. can compete. energy prices allow us to do that. a lot of other things. let's get it done today. >> you got democrats asking their people to vote against worker aid or whatever that is. >> that's amazing. that's really a -- >> because that would stop the tpa which would then stop the tpp. but it's -- i don't know. >> joe, take that as a good sign because that means i think we've got a coalition that's coming together with the votes to pass the trade promotion authority. that's their last gap to stop it. >> all right, governor. thank you. >> thank you. coming up season three of netflix's "orange is the new black" dropping early. we'll tell you how it happened next when "squawk" returns.
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the results of our quarterly survey of the cnbc global cfo council are in and there's a clear prediction of who's going to win the gop nomination. collectively represents more than $2 trillion in market capitalization. given 15 possible choices, more than 72% of respondents say former governor of florida jeb bush will take the republican presidential nomination followed by scott walker at just 11%. ten hopefuls received 0% and then on the economic front, there's been a major shift in sentiment when it comes to a hike by the fed.
many say it is likely to happen in september. for a full survey results, go to cfocouncil.cnbc.com. and as we mentioned earlier in the hour netflix just launched season three of "orange is the new black." they did it six hours before they were scheduled. last night at a fan convention the actress who plays the character crazy eyes had this question for netflix ceo reed hastings. >> would it be possible for us to put all of season three of "orange" on netflix right now so they can go home and watch it when they get home? >> let's do it. >> that looked so spontaneous. >> the stunt of the moment. the show has already been renewed, we should tell you, for season four which will begin shooting on monday. so it continues on. >> odd mom out a bravo, right? >> yeah.
>> and you can watch "orange is the new black" any time. >> you can binge watch it. >> if they were on at the same time, there's be a quandary. but you can watch it. i do want to see it. my daughter watches it. is it okay? >> i'm actually thinking i'm going to get netflix again. >> you don't have netflix? >> i had it for awhile and got rid of it. but i think i want it. >> blackberry and no netflix. >> yes. because i work and i'm a mom. i'm a little busy. coming up -- >> you guys have wives. >> coming up tom friedman is here. his take on the fight against isis, the crisis in greece and today's key vote on trade. i'll be wlesinterested to see what he says about this. we'll have that coming up.
been for most of the morning, now they're actually down. >> whoa. okay. before we'd been flat relatively speaking. this has been a pretty good turnaround week for the markets. we're on pace for our best week for both the dow and s&p in quite a while. but we'll see what happens if we get background this morning. >> i haven't looked at the interest rate environment. >> my guess is greece is probably weighing on some of this. >> greece as well. >> let's look at the european stock markets. before they were down but just slightly. .1% to .2%. >> i will look and see -- what's the 10-year? do we have that anywhere we can check that? or greece is down in the mid-7s or something. what is that? it's not that. i don't know where greece is. greece probably is -- and it's a friday too. >> okay. greece was down fractionally this morning. >> it's down 4% now. >> i would guess greece is the reason for this again because the dax was only down by .1%
or .2% when we looked earlier. now all of the european markets look substantially weaker. we have been hearing a lot of back and forth about greece. they have a hopeful tone for bailout talks. but that is a disconnect from the comments we've heard from imf and eu officials. they say there are still big disagreements on key issues. joining us for the next hour with his take on this and much more is foreign affairs columnist tom friedman. great to see you this morning. >> great to be here. >> greece we've been going back and forth and back and forth and back and forth. most market players believe this is a big game of chicken and something will be reached. we talked to mark grant yesterday and he says he doesn't know how it plays out. that seems to be more of the way you look at this. >> he says they default. >> you know i was in germany about a month ago talking to german officials. one thing that really struck me when the subject of greece came up their attitude was they may
figure out a fiscal deal here. they said the real problem with greece is there are no institutions. i mean the government has really been rotted out from the center. it's been corrupted. and that's actually what horrifies them most over the long run. they can't really implement any reforms. >> what do you mean no institutions? >> these governments have really been literally rotted out a lot more than we realize. greece looks to me a lot more like a -- facing the troubles we see in arab countries today where you call someone and they pick up the phone and it comes off the wall. and that's what they're worried about. the pulleys and gears, they aren't connected anymore. and the level of micro-reforms the countries have to do to get this right over the long-term, to actually start to grow given some of the crazy things they had, the kind of licenses that were required to be a lawyer. to be a truck driver. i mean the level of actual
reform, internal stuff, micro. forget the big fiscal issues. i think we really underestimate. that's their bigger concern. >> even looking a couple of years ago, we started finding out about how nobody raised their taxes. but when you get to this point where there are so many crazy taxes, rules, regulations that there's an underground economy nobody is paying attention to. they can strike some macro deal. yes we'll pay you this back over "x" amount of time. but how do you generate the growth you need? and i think that's a bigger problem. that's why i'm really pessimistic. >> how can there be no government with 40% of employment is government employment. is it just worker bees? no one in charge? no institutions themselves? i don't -- >> i mean i think -- greece joe, i think had much more in common with eastern european economies than with western european economies over the last 40 years. >> we pretend to pay you and you
pretend to work. >> yeah. and never really develop. what is striking i find in general going forward is i think -- when the world gets this fast and complicated, institutions really matter. and being in germany for a week i was struck -- forget work ethic, all the -- just the quality of the institutions. the people you meet. the way they approach you know politics and governing. the asymmetry between that and a country like greece is just e mor -- enormous. >> you still can't start a company there. there's too many regulations. >> that's my point, joe. >> the chicken and the egg. you think the government comes first and then the private sector? >> no no. it's the right kind of government. it's smart government. it's government that will incentivize the kind of sector you want. but you have to have a strategy and institution for that. i mean you can govern in an
eastern european way. you can govern in a smart, efficient way as germany has evolved. and i think they really don't have the institutions there to do that. >> we have them here. they may be not as vibrant as you would like, but compared to the rest of the world, allows our private sector to flourish. quickly, supposedly merkel said she supports all this. she normally doesn't say things about foreign currency. so her saying that knocked down the euro significantly. if the euro goes down the dollar goes up. maybe that's why we -- whenever the dollar is strong. anyway, that's the answer. >> one of the things when i was in germany i gave a couple of talks. one point i made is, i know this is going to freak you all out here, but i think germany is going to have the biggest army in europe in coming years. would really be taken aback by that.
you know, when you look at what's going on with this refugee problem, all these refugees spilling out of the world of disorder toward europe institutions really matter. and germany's -- the quality of its institutions as compared to almost all the other neighbors, i think are really going to matter in the long run. they're going to have to step up. look what's going on with the uk. my god. as the scots drop out. from an american viewpoint, we're losing our wingman. we used -- we leveraged europe in general. britain and germany in particular. to amplify american power in the 60 years after -- >> take that a little bit off of us with nato and we probably want someone to counteract putin. and we wouldn't immediately think of world war iii because of -- but you really think they're going to have the biggest army? >> i do. there's such a vacuum. >> have they begun investing?
>> i think they have upticked a little their military spending. but not -- >> so what does europe look like ten years from now? >> i think it's germany and france quite a bit behind and everybody else. >> and are they connected still? >> i don't know. i really don't know. >> you're leaving the uk out of that entire -- >> i'm really worried about the uk. you have the splitering. you see they built a new aircraft carrier. this has an enormous impact on us. they are the huge amplifier. >> they are the closest. >> two united states are better than one. and in a world where then there's one and a half united states, that has a huge impact. >> for a "new york times" columnist to say. really two united states are better than one? that's really really -- you know, they may be watching. don't think you can say whatever you want. isn't it only like two blocks down there? >> i've not always said that. >> you're not in disguise.
you always have that mustache right? >> the reason we have seven columnists is we have seven different opinions. >> all of them sort of -- >> oh. >> this happens every morning. i got used to it. >> who is that faux conservative? brooks? >> david brooks. >> yeah. >> if you look at germany, though, their interests don't always align with ours as closely as ours and the uk tend to. merkel has been the closest adviser to putin and closest to the relationship zblps she has stood up to putin. without her doing that there would be no sanctions, number one. but if you look at the question of the european american free trade agreement, there's enormous resistance to it led by germans. and a lot of this just has to do with sort of a hostility to the united states. and that's very worrying. >> what happens to germany if greece actually falls out of this? because germany's been a huge beneficiary of the weaker euro
because of countries like greece being involved. >> i think that's one of the -- that's the question they're debating themselves. and none of us know. and one argument is what would happen if we took down lehman brothers and we discovered what happened. that there are all these connections that no one understood. and we paid a huge price for that. and i think that's what is worrying people. do you have a lehman effect or not one week story or one day story but a one month story. and greece exits and the eurozone marches forward. >> we could talk trade a little bit more in-depth with the united states in a bit. but in the meantime, we have been talking a bit about protectionism this morning and how it definitely seems on the rise in the world. >> you know you have -- you've got two things working now it seems to me. one is the post-2008 weakness of the economy. that's always going to lead to protectionism. then you have this huge surge of technology that is eating away at jobs.
and really raising i think a fundamental question which is will the american global middle skilled still be able to be in the middle class? because without an american middle class, there is no america engaged in the world. that america which really grew out of world war ii in particular was one based on a growing economy of economic security. and if the middle skilled cannot be in the middle class, i think this is just the beginning of the kind of pulling you'll see. >> we're going to have much more with tom. he is our guest for the next 45 minutes or so. also we'll be talking about an unconventional candidate for the top job at twitter. then world famous golf instructor david ledbetter is here. he will give us pointers on our golf game. stick around 37.
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company looks for a new chief. rapper snoop dogg throwing his hat in the ring tweeting last night i'm ready to lead twitter with #snoop for ceo. he said the first order of business get that moola. box ceo aaron levy responded saying at minimum snoop should be the chair of the committee. >> yeah. coming up leading golf instructor david ledbetter won fame when he rebuilt the swing of nick bouda. he also worked with greg norman ernie els, michelle wie, and me, actually. i got to spend a lot of time with him out at the nbc broadcasting the lpga in westchester. we're going to talk about all these things when we return.
♪ since launching the first ledbetter golf academy over three decades ago, david ledbetter has coached players to 19 major championship titles and over a hundred individual worldwide tournament victories. he's compiled some of his greatest lessons in his new book "the a swing: the alternative approach to great golf." david is here to help us with our swings and give us a few
tips. he's in town for the women's kmpg lpga championship. that's a lot of letters. it's out at westchester which all the ladies are excited about playing the west course out there. it's one of the great courses. i got to play -- i was wondering what that would be worth. having you follow me for nine holes and telling me about everything swing along with michelle wie and matt lauer. but you're michelle wie's coach. she won the open last year so that's pretty good. >> yes. she's a good player. >> she hits the absolute heck out of the ball does she not? >> yeah. >> the club speed, is that 130 you think she gets? >> no. i would say she's about 105. >> is that all? it looks like 130. i must be at 70. >> you're more than that now, joe. >> you know what? and tom friedman is a great golfer. you love to play. >> absolutely. >> you gave me some great tips. for those of you that will know what i'm talking about, if you
know how kenny perry or jay haas picks the club up like this and gets his wrists in this position right here and then then way you explained it to me was your hands move far less than with the big shoulder turn and it allows the club head up here to stay open right? >> the big thing is -- yes, this alternative swing -- >> the a swing which is in the book. i tried it. it worked. >> see. i've got a personalized copy for you too. we need to make golf simpler. minimal practice maximum benefit. i'm working on this with derek jeter right now. he's getting into golf big-time now. it's a simple back swing. for people who don't have a lot of time we have time together. >> you don't want to hit something. that jeter character, any athletic ability there? you've seen mine. is it similar, would you say? >> pretty close.
>> you don't really have to answer. so i have a lot of questions, but this just relates to me. so we probably shouldn't do that right now. should everyone eventually look like kenny perry? will it translate to everyone? >> it's a different approach that's for sure. i call it an approach not a method because you don't have to be perfect. for most golfers and if you look at even jack nichols at his peak had it up and down. get the down swing right. but this a swing makes the back swing so much easier. if you don't have to lot of time to practice, it works. >> we've played together. does this make sense to you? i'm always guarding against the snap hook. you say because with my big shoulder turn the club head is closed up here. >> exactly. let me describe it to you. i'll use you as a model. basically it's getting your hands really in and the club out. like baseball, when the bat is up in the air.
it's the same thing in golf. >> i was blocking everything because i'm afraid of that snap hook. when i let it go it worked. >> best tee shot in years. >> shot with a 4 iron pretty well too. >> what's the biggest mistake people make in doing this? what's the first -- what's the single most important lesson to keep in mind? hands in? >> as you take it back here what we've really got to feel here, tom, is that the hands are in and the club is out. majority of golfers wrap it around their body. they have so much movement. so this really makes the back swing so much more efficient. takes all the weighted motion out of it and makes the whole thing simpler. puts all the emphasis on the down swing which is what you should be doing. >> why doesn't everybody do it? i don't golf but that sounds perfect. >> it's a slightly different approach for sure. it's going to cause a few waves in the teaching industry but it's great. hey, i'm just trying to help golfers play better and enjoy the game more. >> was this a big switch for you at some point?
>> i've always believed in this. it's not something i've never done before. we really exaggerate it. even if you look at the players i've worked with nick faldo, they've all had this about them. but reemphasized it. people say just look at our website and you have a look, all these testimonials. people say this feels natural and good. for the masses out there that want to improve immediately, we've seen amazing results. >> is ladies golf or at least young girl players, that could save the game. it's exploding with little girls between 7 and 18. this is a huge deal this week. >> absolutely. >> it's on nbc. you like michelle's chances? >> well she's coming back on a few injuries. >> so do you like lydia ko? >> there's so many great players. you've got this young girl brooke henderson. they're amazing. >> my friend asked me do they just hit it straight or -- and i
said she hit it 80 yards past me. michelle wie. 80 yards past me. anyway. >> with this new a-swing, you're going to get it. >> i'm going to get it. i'm just glad. i don't know what you charge but i'm glad i get it for free. you'll hear from me. >> thanks david. >> appreciate it. >> i need this. >> you can take that out. your kids might. >> the kids would love it. coming up we've got much more from our guest host tom friedman. plus congressman paul ryan is going to join us. he's going to talk about the trade vote today. stick around.
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twitter unfollowing dick costolo. the ceo will be leaving amid growing criticism from shareholders. we'll take a closer look at the social networking service and find out if jack dorsey can turn things around. shaking up the spirits business. sean lamprey is here. and "jurassic world" looking to take a bite out of the box office. a look at the popular franchise
and what you can expect in theaters this weekend. the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box," everyone. this is cnbc first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. we are less than 90 minutes away from the opening bell on wall street. we've been watching the futures this morning and they have bounced around quite a bit. when we came in this morning, it looked like things were -- you could see right now the dow futures are down by about 38 points. s&p futures off by 5 and the nasdaq down by 13. european markets also giving back some ground. much weaker than we first started this morning. the dax down by about 1%. the cac off by 1.1%.
the ftse down by .6%. and greece down over 4%. you made comments about what merkel had been saying earlier. in the past she'd been opposed of qe. now she's coming out in favor of what the central bank has been doing. >> i don't know how you read that with how the european markets go down. i hope it's not because she's starting to be less optimistic about a chance for resolution. >> that would seem to be part of it. >> but when you start saying yeah -- because they know more than we know i think about whether greece really is -- is it a hard line right now that they're just -- will there come a point where germany says no mas and where greece agrees
we're not going any further and it happens? then you'd want qe in europe. you'd want as much as you could, right? >> greece reminds you, joe, why the biblical ancients had a year where they said we'll wipe all this out. there's no way to work out of this hole. >> unless you leave the euro and get the drachma back and devalue it. >> but at the end of the day, i don't want to beat this horse too much it is about the governing institutions. whether you've got drachma, euros, whatever. and can you construct a partnership that could govern the u.s.? >> the start would be the imf. >> yes. start there. let's also tell you about today's top corporate story. dick costolo stepping down as of july 1st. julia boorstin joins us from los angeles. she has a look at where twitter goes from here. julia, good morning again. >> good morning to you, again, becky. with costolo stepping down as
twit twitter's ceo, jack dorsey is stepping back. one of the creators. he's thought to have what it takes to help ramp user growth that has been stalling. now just over 300 million. dick costolo talked about focusing on making twitter easier to use and more engaging and delivering new apps and services. dorsey saying in a conference call yesterday he believes in twitter's strategy specifically around twitter's products. >> i do not foresee any changes in strategy or direction. i believe on the course -- in the course the company is on. and the management team's ability to fulfill and execute on it. >> the question is what changes a new permanent ceo might bring. another former twitter ceo board member evan williams is on. there's no obvious successor, but the name drawing most
attention is adam bain. he's well liked by twitter's ad and media partners but he doesn't have key product experience. as twitter looks at possible candidates across silicon valley, m&a chatter is back in focus. pointed to google as the most natural fit. it's been a rumored suitor for twitter on and off for careers. we'll have to see if it's interested in twitter's about $24 billion market cap. back to you. >> thank you very much. by the way, don't miss david faber's interview with dick costolo and twitter founder jack dorsey. we're back with more from our guest host this morning. "new york times" columnist and pulitzer prize winner tom friedman. one topic we have not hit on yet is isis. you have made the point you can't defeat isis and be a supporter or have an iraq at the same time. >> that's what i worry about. i worry about the choices. you can have iraq or defeat isis
and you can't do both. why is that? because isis at root is a sunni arab backlash against the government in baghdad. but these guys didn't invent barbarianism. shiite militias in iraq and power drills. a look at the matches that come up on google for that. this phenomenon grew out of a deep resentment of sunni arabs there. i think the only way out -- because we can't defeat isis. only the sunni iraqis of those regions can defeat isis. why would they want to do that if they see isis as a protector? and they'll only do that if think the sunnis of iraq can get the same deals that the kurds have. that it will have its own oil revenue, own militia to protect itself. i think that's the only way -- >> and how do you create that
environment? >> that's the tension. you want to support the central government. central government was led by ma law key who drove them over the edge. you have to have a new -- something they agree to. the other problem is ask yourself this. look at the map of iraq. look who's surrounding iraq. turkey in the north, giant army. you have saudi arabia on the south. what is saudi arabia using its power for today? to bomb yemen. why aren't they fighting isis? what is turkey doing? staying out of the fight. if it isn't important enough for them why should it be important enough for us? it's telling you something. the other thing that drives me nuts is why is it our guys always lack training but their guys who haven't been trained by anybody keep winning? so surely cannot be about training. it's about the will to fight and people are -- >> and why is there no will to
fight then? >> i'll put it this way. to recover mosul, someone's got to go door-to-door. that's the only way you do it. are the kurds going to go door-to-door in baghdad? i don't think so. are the shiites going to go door-to-door to hand it over in sunnis? i don't think so. that's the problem. there is no iraq anymore. >> is that an argument for us of just washing our hands and walk away from it? >> i don't think you have to wash your hands and walk away but my outlook is contain it. we want to contain this phenomena. contain the walls, kurdistan, jordan turkey. the countries of decency there. and amplify anything they're ready to do. but they have got to take the lead. ultimately, look. isis is a combination of two things. it's ex-sunni army officers. this is the revenge of saddam
hussein. they're the ones directing this. that's why it's been militarily so effective. and second you've got all these sort of -- this sort of muslim foreign legion that's coming from all over the muslim world. these are mostly young men who have never held a job, held power, or held a girl's hand. and isis has a real proposition for them. come here we'll give you power, we'll give you a gun, we'll give you a job, we'll give you employment, and we'll give you a wife. and it's a powerful message. >> when you talk about some of the neighbors that we've partnered with that we're friendly with like a jordan. what are their plans? i have a hard time seeing how jordan really stages anything to go against this. >> at the end of the day, they are more frightened of iranian shiite power and expansion because iran now indirectly controls four air capitals. that's what they're obsessed with. and at the same time, you know this is a problem that gets into the iran nuclear deal.
we're worried we're going to do this deal they're going to get all this money. iran cannot help but expand toward the arab world. it's such soft tissue there, becky. there's so little quality governance and thin is this result of 60 years of mismanagement. 60 years ago asian leaders came to their people and said here's my deal. i'm making this up but this is directionally right. we're going to take away your freedom but give the best infrastructure, education, and export led economics. 60 years you'll build a middle class big enough to take it back. arab said here's the deal. we're going to take away freedom and give you the arab-israeli conflict. we're going to give you a shiny object over here to distract you. and arab leaders were autocrats but they were predators. and from that period where and now south korea alone dwarves the arab world, from that division has grown a huge gap.
so we're dealing here with a human development disaster area. and that's why i think we have to be very careful about putting our power into that place. i'm ready to amplify whatever they do. but thinking it's just about training. who trained the taliban? who trained al qaeda? who trained isis? you know? it's about the will. and they're fighting about something they believe deeply. what's tragic is what they believe deeply in is crazy. they're fighting over who is the proper heir to the prophet muhammad from the seventh century. i noted in a column that the arabs are trying to get them to take over yemen. if egypt invaded yemen it would be the first case where half the women can't read. takes over a country where the water comes out your tap once every 30 days in a fight over who's the proper heir to the prophet muhammad from the seventh century. that cannot end well. and until somebody's actually
fighting for something we believe in and share, there's no way we should be in the middle of this fight. >> i was going to bring it back to the u.s. for one sec to say we're in this presidential election thing that's starting. is there anybody that you see who sees the world the way you do now in terms of understanding the issue and appreciating the issues you're talking about right now? >> you know i don't really feel anyone there is resonating with issues that i think are important. frankly, abroad or at home. i think the biggest issue for the world today is the health vigor, and vitality of the american economy nap if we go weak as a country, your kids won't just grow up in a different america. they'll grow up in a fundamentally different world. a world ordered by russia or china or more likely nobody at all. so i think what's at stake right now, you know inning us back to the fundamentals that built this country. infrastructure education,
education, and the right rules to incentivize risk taking but prevent -- >> i think i heard rand paul on foreign policy argument you were making, didn't i? >> i don't go afar as he does joe. but you've got to be very very careful about how we use our power now. it's so important. we hold up -- you know we make all kinds of mistakes. lord knows we have. but at the end of the day, we are the tent pole that holds up the world. >> some think if we don't defeat isis over there that we'll have the lone wolf here. but you might be better served to try to stop the lone wolf here than to cut it off at the source. >> you're going to have lone wolves. i'm not going to tell you this is the end. this is the world we live in. but there's a question of do we have a lone wolf in a growing, vibrant strong country.
>> right. tom, stick around. thank you for that. we appreciate it. when we return this morning, the clock is ticking for congress to vote on the fast track trade bill. congressman paul ryan will join ugh o us in a few minutes. here's a look another what's to come this hour including summer cocktails with sean lamprey. "squawk box" will be right back. ♪ ♪ ♪ (singing) you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck. being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience.
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♪ coming up congressman paul ryan on trading jobs. he's our guest right after the break. here are the futures ahead of the ppi data which will hit at 8:30 eastern time. "squawk box" returns in just a moment with the dow likely to open off about 30 points down. financial noise financial noise financial noise
big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.
sorry, tom. we were really getting somewhere with our golf swing there. but we've got congressman ryan here. after two days of debate in the house, the showdown on trade, paul ryan is here chairman of the ways and means committee. joins us now from capitol hill. many times i have asked you, mr. chairman, why on earth you'd even get into this business. and that's what people say. we don't get good people in this business because you've got to be crazy to do it. you are always optimistic and always have a great answer. but the latest thing is that because you said, well, once we do tpa and then get the tpp, the president does it then we'll see what's in it and we'll vote
on it one way or another and that was immediately conflated by your political enemies to being pelosi's comment on obamacare. that's when i just leave. i would just say i'm going back to work at -- i don't know somewhere in wisconsin. >> this happens a lot in politics and this time's no different. look what we're talking about here -- there's a lot of conflation like you say. tpa which is what we're voting on today which we do have the votes for tpa, that is a process under which we consider trade agreements. and this process brings more transparency and more accountability to how we consider trade agreements. and it gives congress more control over the outcome of theess trade agreements. when we reach a -- when a trade agreement is reached between nations, we make it public. there's no requirement for that without tpa. then it's public for 60 days so everybody can see what's in it. and then congress begins to consider it. that's another 30 days. so we're not voting on a trade agreement today. we're voting on a process under which we consider trade agreements to give congress more
control and the country more transparency. and so yes, you're right. there are those who seek to try to stop this from happening. we're trying to misinform and take advantage of that. it's unfortunate. unfortunately that's the give and take in politics. but we have the votes for trade promotional authority. the question today is whether or not the democrats are going to deliver their votes for something called trade adjustment assistance which is a necessary component and has been for many years. that's really the question before us today. but we do have the votes for tpa. you know why? because we need the trade. we need trade agreements. we need to write the rules of the global economy. we need to open markets for america's producers so that we can have more jobs. and if we just walk away from the field, we are seeding the field to the rest of the world, to china, to europe to whoever else would be able to write the rules of the global economy. get those markets and we won't. there are 3.2 billion people in the middle class in asia in the next years, we should be able to
sell to them on a level playing field. >> the taa, and -- you know you guys will never learn. thanks for naming everything taa, tpa, and tpp. public has no idea what you're talking about. in the past democrats have insisted on that to help retrain workers. so that's a democratic initiative. >> correct. >> you're actually going to see democrats use that to try to block the tpa. >> that's right. >> and you wonder why people shake their heads. but the question i have for you is you got taa. you don't have taa to get the tpa, do you? you may not get that. >> we have the votes for tpa. >> you have it for taa? >> so we were going to produce the three times the amount of votes we normally have on taa, but you're right, joe, it requires democrats to support -- >> you got it? >> you have to ask nancy pelosi that question. it's a question of whether or not democrats are going to support their president, the
leader of their party or not. that's going to be answered today. i don't know the answer to that. >> i can't believe that you don't have more pushback from your side of the aisle on giving the president authority to do something. giving him -- taking congress out of the negotiation. you actually have a bunch of republicans and conservatives saying i want to hand this authority to president obama to negotiate for us and you've got members of his own party trying to prevent that from happening. it's impossible to understand. >> let me get to there, joe. we're note giving the president any new authority. we're not giving him any authority. actually, we're taking authority away from him saying if you're doing b a trade agreement, here's how you have to do it. this is congress' way of doing it. right now it's whatever the administration wants to let us see with these negotiations. we demand to be able to see it at any time. we also can participate in travel to the negotiations if we want to under tpa and the country sees a trade agreement
as soon as a trade agreement is reached it is made public. we don't fast track it to congress before anybody can know what's in it. it will be 90 days from when an agreement is reached before congress even considers it. that's with tpa. if you don't have trade promotional authority, look at iran. it's a good example of he can do whatever he wants, negotiate whatever he wants. we have no idea what he's negotiating and he's not coming to congress before he agrees to it for a vote. we're saying -- >> congressman. >> yeah? >> tom friedman from "the new york times." when you're home in wisconsin, what do you tell labor union workers in wisconsin why this would be good for them in the long run. >> because one in five jobs are tied to trade. those jobs are typically pay more. i was at the case new holland factory a few weeks ago. 33% of the tractors rolling off that line have to be exported for those lines to keep running. so we need to make things here
and sell them overseas. by the way, getting trade agreements removes those barriers so we can make things here in wisconsin and send them overseas. you have to open up markets so we can make and grow more things in america to send them overseas. 95% of the world's consumers live in other countries. and we need to get these. the rules of the 21st century, they're being written right now. there's no question about that tom. you write about this all the time. the question is who's going to write the rules? are we going to write the rules with our allies so we can protect our intellectual property so we can have fairness and a level playing field? or are other country going to write the rules? that's the question being answered right now. we know that trade leads to that and we want to be able to make things in america and send those things overseas. without trade graems big multi-national corporations plop into another country to sell in
that country to get around the trade barriers. let's remove the trade barriers to keep the factories here in america. >> all right, congressman. when is this vote happening today? >> couple of hours. it's throughout the day. we have a number of votes throughout the day. so this is happening today between now and, say, 3:00. >> all right, congressman. thank you. >> you bet. tom, we are just about out of time. we want to thank you for being here for the last hour. if there's one thought you want to leave us with what would that be? >> russia. i pick up the paper now, i see american jets and russian jets you know flying inches apart in the last few days. i think putin has given up on trying to make russia is strong country built on russian talent. i think he's looking for dignity in all the wrong places and that really worries me. >> more so than everything else we talked about all morning? >> yeah. the country putin threatens most today is russia. grandma said never destabilize a country that spans nine time
zones. >> you going to read this book? he was on earlier. he said the oligarchs took this no level guy and made him into vladimir putin. >> thought they could control him and they were wrong. >> they can't. but i don't believe the polls in russia saying we love crimea. i don't buy that. watch out. >> thank you so much for joining us today. >> thank you. stick around, folks. when we come back we have numbers straight ahead. the ppi.
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welcome back to "squawk box." inflation breaking news. may ppi up .5%. a bit higher than expected. no revisions to last month that i can see. let's strip out the all-important food and energy. up .1% as expected. we can go through a litany of other data breaking this down. final demand here year over year. energy up .6%. that's an important one. food and energy trade year over year also up .6%.
they've retweaked these numbers obviously to get much more accurate. i see many more numbers, less accuracy. i'm looking at .3% still. this number really is having very, very little effect on the market. preopening dow still down 66 points. and of course the dollar index having some volatility overnight. continue to watch interest rates in europe. they did have a bit of a bounce higher in rates based on what's going on with greece. a lot like the ppi thing here things don't get traction one way or the other. joe, back to you. >> all right, rick. thank you. appreciate it. now we're going to talk about changes in the leadership at twitter. eric says if it wasn't for the facebook and twitter, users would be considered a success. the question now is can a new
ceo fix what's broken at the giant. he was a former ceo of both "huffington post" and davis. you know something about running a big dotcom -- that's unfair. i shouldn't call it a dotcom media company. social media. first of all, you hear this announcement and you say to yourself does that narrative even make sense to you that somehow he jumped before he got pushed? do you even believe that? >> well there have been rumors now for a number of months that he was going to go. and the q1 results were pretty terrible according to the street. so he probably gave up. but there's a disconnect between the reality of the business which is not bad at all and the expectations on the street. >> and therefore you look at a jack dorsey can he fix the
problem? do you think he wants the job? that's the other sort of underlying question that i think people have this morning. >> he's had the job before so i doubt he wants the job again. and he's not leaving his own company path. >> square. >> you know, he's known as a great product guy. but it's a question of how much you want to tweak the product. if you have facebook envy and you start moving towards facebook you're probably going to destroy the core of what twitter which is a network. >> although that has been something we talked about with people here including roger last week. he said look they are afraid to tinker with the original tool because they think it's a perfect tool. but if they don't do it his idea is that's what you have to do to actually fix this. it's the opposite of -- >> what you just described what's that worth? $50 billion? they have to turn it into
something that actually is a moneymaker, right? >> they're doing about $2 billion in revenue annual and they're just getting started. the question is 300 million active users is three times more than snapchat. if you say to yourself i need to get to a billion users and you're going to be a me too facebook? that makes no sense. the politicians use you, you're great for live events. >> don't change it. >> you have to make it easier to use and monitor. >> but going back to what joe said is that what is that value. and do you say to the street we're not what you think we really are. >> i think the pricing of the network in terms of advertising should be three times what facebook advertises. but i think that power of
reaching this argument should be priced accordingly. and it's not. >> and therefore -- but if it was, would you be able to capture that value in a company that has $23 billion market cap right now? >> just about, yeah. look. it's a tough question. i think the expectations were set the wrong way. and now the next ceo is going to have to -- he's going to have to define what the positioning is. dick was a great ceo. >> but with the three top -- if you could choose the next ceo, three possible names you like? >> oh boy. i think adam bain who's head of -- who is the president is -- has been able to describe what twitter does to advertisers very well. he might not be the right product guy. it's really a tough one. >> would you say to sell the
company? >> if google came about, i would sell. >> but if you use eyeballs and put a valuation on eyeball, is that really real in terms of future monetizization? and is it possible that the business model of one company could make eyeballs worth ten times what the other business model would allow? is it an apples to apples thing? just saying i've got a billion people, therefore it's worth this much? >> yeah i think -- can the eyeballs be worth more if you market it the right way, yes. >> can they be worth zero? can they be worth a minimal amount because you're not going to generate anything? >> a twitter eyeball is worth more than a facebook eyeball. >> really? >> yes. because the inference -- you know, when you guys tweet, people listen. and when youp put a post of facebook, your friends listen. but not people -- i use it. it's an essential tool for me
and everybody in the venture capital world for business. completely essential. >> that makes sense. the quality of the eyeball. >> yeah. eric, thank you for coming in this morning. >> thank you. david faber will be joined by dick costolo and twitter founder jack dorsey at 10:00 a.m. hear it right from the horse's mouth at that hour. one follower i'm blocking. entrepreneur and entertainer sean lamprey is here. we'll talk the business of rum. why he thinks the spirit will be the next bourbon. and keep squawking is just ahead. send us your buzz stories to facebook or twitter. #keep #keepsquawking. "squawk box" will be right back.
you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.
welcome back everybody. right now it's time for some booze news. we're getting into the summer. maybe no better way to cool off than with a cocktail or two. the craft brew industry is alive and well. brew pub openings hit a five-year high in 2014 while the number of pub closings actually dropped. the sign that maybe more of them are succeeding.
that success is also carrying over to spirit makers like constellation brands. that stock sitting at a 52-week high. now let's talk to zane lamprey. welcome. >> thank you for much. i'm just the chairman. ceo does the work and i do these kind of things. >> we appreciate that. same thing around here. >> okay good. >> i hear you're making a cocktail for us first. >> yes. it's always good to start with a cocktail, right? i was going to make a daiquiri but it involves shaking this. i'm going to make a light and stormy which is pretty simple. >> look at this. on the jacket. >> yes. i was hawking this on the show. now we are shipping these out for kickstarter. yeah. this is a -- just a built drink. it's pretty simple.
just ice and rum and ginger beer. so this is our toasted coconut. >> toasted coconut rum. >> yeah. >> who's drinking? >> i'll take a sip. i don't like drinking wine in the morning. >> that's good because it's rum. >> yeah. i can drink hard. >> so this one's for you. these are actually glassware we make from the bottle. so this is actually made to be a rocks glass right there. cut it there and then a monkey in the bottom. >> how do you cut the glass? >> well you don't necessarily. i tried. it's not safe to do. we have professional glass cutters do it. >> so you put some regular coconut rum in there so far. >> yeah. so here's some toasted coconut rum. >> then ginger beer. any regular rum in there or no? >> this is our toasted coconut. and this is our spiced rum. >> it's good. >> yeah.
some ginger beer some ice, and of course some rum. >> and now he's using his jacket. >> i have to yeah. >> i like that. >> thank you. >> has anybody ever done that before? put a bottle opener right on the zipper? >> i think that's probably been done before. that one's for you. that one's for you. >> thank you. >> this is really easy. >> yeah. good cocktails don't have to be complicated. >> cheers. >> cheers. >> ooh. >> that's good. >> there's a little kick. >> it's rum. it does have alcohol in it. >> all right. so let's talk first of all, spiced rum and the coconut rum and the bar. >> yeah so this is a product i started about two years ago. and then we actually had some good success in the beginning. and i just realized that i am not a ceo. you know? i'm really an entertainer, an entrepreneur, so i hired some.
he's either on his phone or seeing how it's going. and so we've now built and evolved the company into these products. so these are premium rums. they're both barrel aged. this is barrel aged for six months. this is barrel aged blended for two to three years. >> how much do they cost? >> depends on which state. in new york $25.99. florida, california, it's cheaper. that's the way the rum market is. >> why is that? >> you know, i don't know. california and florida are rum markets. >> so you're taking more margin in new york? that's what you're trying to say? >> is that what i said? >> it's not taxes? >> it's not a tax issue? >> ian, what's the answer to that? he's just saying yes. >> yes, it's a tax issue? >> it's a tax issue. >> you know what? it's a tax issue. >> hey, so do you know for sure what causes -- what is the
single worst thing for getting rid of a hangover? >> here's the deal. if you drink enough of our rum, we'll get a hangover. what actually makes a hangover this is scientific is alcohol. if anyone tells you, you know we -- >> it could be the mixer if there's sugar in the mix? >> have you ever drank a lot of soda and got a hangover? >> i drank a lot of yagjagermeister and thought i couldn't lift my head. >> if you take a shot it's in the stream fast per. >> now what about sprite as the hangover cure? >> if it was, i think we would just know it. we wouldn't be discussing it. >> i heard the hair of the dog is real. >> you're just sort of delaying the inevitable. alcohol is going to give you a hangover. i was in champaign, france and they said if you drink the good champagne, you won't get a
hangover. so i went with the owner of this champagne bar. we drank three bottles of the really expensive stuff. >> zane let's talk about your kickstarter campaign. there's a new move. i think the ftc is trying to make sure it's cutting down fraud on kickstarter. people were going up asking for money and not delivering. >> yeah. i mean that's going to happen. that's really part of the issue with the anonymity of the internet. but something like kickstarter could not survive without the internet. you'll have people doing that kind of stuff. really few and far between. i mean all you can do is make sure you know of or something about the person that's behind it to know that they're going to stand behind whatever they're going to do. >> it was hugely important for your success. >> yeah. i couldn't have done what i did. i launched my last tv show "chug" which aired on national geographic channel on kickstarter. then i launched this the drinking jacket. we sold about 70,000 of those on kickstarter. i needed that to kick start this
project and to prove to myself it wasn't just my celebrity that was driving it. i actually found this -- actually, this guy found me. and he was having trouble. in about four days he raised about $5,000. and his goal of like $50,000 he wasn't going to hit. so he asked me for advice. usually people say can you give me a shoutout on social media and the answer is no. that's reserved for me and things i can stand behind. this guy was just looking for advice. i helped him. we shut down his campaign relaunched it and it's the most successful footwear crowd funded in history. >> what did he do differently? >> his message was just a little -- he tried to present himself as being very polished. he went to the factory and walked around the factory and was talking to people like it was his factory. and you were like well if you have a factory why do you need me? >> right. >> is this your factory, no. we just shot there. you need to deliver the message. >> it's about truth and honesty. >> it is.
but it's also marketing. if you're using crowd funding, you're really kind of going the antiestablishment route. you know? you need to say i'm doing this without the proper or the normal channels because i need to. this is something edgy. this is something new and different. you know so it gives a lot of people an opportunity to launch. believe it or not, there's more failures than there are success successes successes. you just don't hear about the failures because they're small. and there are big successes. the coolest cooler. they launched. they launched at christmastime, tried to raise $150,000 and were unsuccessful. they shut it down they relaunched in july. now they were shipping in the winter but it didn't matter. people are buying coolers in the summer. and they were at the time the most successful crowd funding campaign ever. they raised about $14 million. >> this isn't really beer. >> is that what you got from this whole thing?
no, this is ginger beer. yeah. it's fancy pants ginger ale. that's why we put the rum in there. >> that's what causes the hangover. >> yeah. that's what causes the hangover. it's the ginger. >> thanks for coming in. >> thank you for having me. >> if you're in the new york or new jersey area this weekend, you can check out monkey rum's facebook page to find out where he could be. >> or buy it for cheaper in florida. so there. >> get on a plane, go buy it and then bring it back. when we return the stories that have you buzzing this morning. what you think we should be talking about. tweet us. @squawkcnbc. and use #keepsquawking while we keep drinking. we'll be right back. financial noise financial noise
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a lot of you talking about co-founder jack dorsey running things. we told you rapper snoop dogg is throwing his hat into the ring tweeting i'm ready to lead twitter. he says the first order of business would be to get the money. and they're not sure he tweets us not snoop foshizzel. >> i think snoop looked around where's a place i can actually get high even more frequently than i do right now? >> i knew you were going there. >> i've got a certain amount of pot but i think i could get more. >> he's going to move the head quarters to denver so they could have a lot of board meetings. >> and snoop has been outspoken about it. maybe twitter is a place where he can take a step up. >> a viewer has a suggestion for a new leader.
tweeting big bird cause the little bluebird couldn't get it done. and then one getting into the mix tweeting could one run twitter at ceo entirely via a twitter account. asking for a friend. >> a friend. just asking for a friend. >> we hear you. and one more story. a federal employee union says hackers stole personnel data and social security numbers for every federal employee. that suggests the attack is far worse than the obama administration has acknowledged. they say the hack was carried out by the chinese. of course it's someone briefed on some of the most secret intelligence information. >> harry reid even knew that mitt romney never paid any income tax -- wait. that was a lie. >> are we not going to mention lebron james and his exposing? >> how do you want to handle that?
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these animals are thinking i've got to eat. >> we have an asset out of containment. >> eyes on target. >> light it up. >> you look like a super hero. you do. that's really good. >> the dineosaurs are on the loose again. going inside the big numbers of the block burster franchise that hatched back in 1993. julia in. >> reporter: it's unusual for a franchise to return after 14 years but now the dinosaurs are roaring book with the largest ever screen count for universal
release and with 800 i max screen, it's the largest i max release as well. they're on track to bring in as much as $125 million this weekend. it would be the third biggest opening of the year. they've grossed $24.5 million in china, france and six other smaller territories. that should help universal estimate it's $150 million budget for the filamentm as well as some endorsements. also cashing in nhasbro and lego. the first "jurassic park" broke records but by the third release, it declined to a third of the first films. it seems like this weekend's
movie could revive the franchise. >> thank you so much. it's something we've been excited about. >> why not do it? batman, how many times can you do it? >> fast and furious. >> take a little time and bring it back. >> can the little ones go? >> they shouldn't be but they probably will. that does it for us. have a great weekend. time for "squawk on the street." >> good morning. and welcome to "squawk on the street." i'm david faber. we're live from the new york stock exchange. carl and jim have the day off. it is news everyone is talking about. changes at twitter. we will talk to jack dor see and jack cost low later. let's look at the trading week. we are looking at a down open at this point. not a lot to tell you