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tv   Squawk Box  CNBC  May 31, 2018 6:00am-9:00am EDT

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business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. look at the u.s. equity futures. it locks like things are barely budging from where we were yesterday. dow futures up about a point nasdaq up by about 14 points this comes after a big rebound yesterday following the previous day's big declines we'll continue to see where we get closer to the opening bell you can see overnight in asia some big rebounds there. shanghai composite was up about 1.8% after dropping by 2.5% the day before hang seng was up
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the nikkei closed up by 0.80%. in europe, things are relatively calm the biggest gainer is italy, up another 0.80%. all these things are still rippling through the markets, we'll talk much more about global politics, about interest rates and how all of these things are interlinked a quick look at treasury yields. still below 3% the ten-year is yielding 2.868 slightly higher from where it closed yesterday >> couple other stories we're watching the u.s. ready to impose tariffs on european steel and aluminum that's something the trump administration threatened for months an official announcement could come as early as this morning. the eu vowing to retaliate with its own tariffs on goods
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mike pompeo has a full day of meetings prepared in new york with a top north korean official we'll have more on both of those stories from eamon javers. and the fed proposing an easing of rules cushing risky trading. it's ca a lot of bankers applauding that >> i don't see why pompeo is meeting with some official from north korea when the president met with kim yesterday in the white house. >> we pulled that joke yesterday. that was our tease he's meeting with kim, but not kim jong-un. >> the post people are mad people are mad at the post today. >> why because they have the picture? >> no, they say trump meets rump >> oh. >> then the daily news, they
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will be -- this is the only kim he would get give him the nobel prize -- >> i don't know. >> i know what you the daily news will do hopefully nothing good happens with this north korean stuff i hope the nuclear war is back on if it's not, the daily news will be so bummed i don't know what they'll do daily news has lost it >> one plman's opinion. keep going >> stocks to watch today, box's first quarter revenue beat the forecast that the company gave
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guidance is what matter, and guidance was muted, so the stock is down nearly 5%. guess reporting first quarter results in line with estimates. same-store sales up 2% the company offered weaker than expected guidance. had a run a big jump yesterday on a report that the company hired jpmorgan to explore a possible sale. warren buffett confirming that berkshire hathaway held talks with uber. the report in bloomberg says the discussions fell apart as uber and berkshire disagreed on the terms and size of the deal buffett says some details in the report are not correct but he's a great admirer of dara khosrowshahi in an interview with carl quintanilla on the sidelines of the code conference, khosrowshahi says the feelings are mutual >> i'll tell you that i'm a giant fan.
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i'm a warren buffett fan boy for many years, one of my business goals in life has been to get warren buffett to invest in something i'm involved in. so far i failed. so maybe, maybe one day i can convince him that times will be right, he'll be willing to honor us with an investment. it hasn't happened i think warren can invest anywhere any time. >> buffett did confirm to cnbc they did hold talks with uber and nothing came of it an investment by berkshire would have been a big seal of approval for uber ahead of an eventual ipo. khosrowshahi telling carl that the company is still on track for a potential offering in the next year. >> we're in a good position in terms of the company's profile in terms of profitability an margins continue to get better we have a very strong balance sheet. i think we're on track in 2019 for an ipo
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lots of things can happen, but we have a reasonable buffer as well i think we're in a good spot that said, we would welcome strategic investment it's just not first priority for me right now >> speaking on stage at the code conference last night, khosrowshahi says he wants uber to eventually become the amazon of transportation. you can see more of carl's interview with dara khosrowshahi on "squawk on the street." >> i talked to somebody who was involved at least on the sidelines of this transaction or lack of transaction last night, they wouldn't give me the details of what the offer was, but in typical buffett style, buffett made the offer there was some back channeling before he made the offer they then came back, there was a delay. came back with the counter offer, and the way buffett operates, you don't have a counter offer, it was just no. >> take it or leave it >> i did not speak with warren
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buffett yesterday, he was traveling, so this is a statement the office passed on to me. >> hopefully we'll get more color. >> what you say sounds about right. buffett doesn't negotiate. >> it also sounds like it would have been impossible for either side to do a deal. buffett would always want a deal that would guarantee some term, especially for something this risky. for uber, they recognize, there's some desperation, but they don't feel they're that desperate yet. maybe this comes back in the future one other thing that is fascinating, don't know if you saw the interview, now that he's talking about himself as the amazon of transportation, just this idea that not only will you get an uber outside, but you'll get an uber that will take you to the train, and that he would try to own the entire last mile. >> this is what kalanick talked
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about, too >> he wants to lock into the new york city subway system. you talk about locking into the ba b.a.r.t. subway system talk about being friendly with regulators to make that work you would say i'll take the b.a.r.t., maybe the car, or i'll just take the b.a.r.t. and subway >> i don't think that's a good analogy, the amazon -- >> everybody wants to be the amazon of something. i've heard that and people say we're the uber of whatever >> i want us to be the amazon of morning business >> we're the "squawk box" of morning business >> maybe jeff bezos wants to be the "squawk box" of commerce >> i doubt it. sure we can dream >> all right >> we're going to washington >> yeah. >> you ready for ithis >> ready
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>> eamon javers has more on many headlines. >> the diplomacy is kicking into high gear in new york as mike pompeo met with a high ranking north korean official. this is the highest ranking north korean official to visit the united states in decades we have some pictures here of the arrival yesterday in manhattan. the two men had dinner together at a building close to the united nations headquarters yesterday. on the menu, mike pompeo said was steak, corn and cheese as you see these pictures in new york there are other talks going on between the u.s. side and north koreans in singapore in terms of getting the physical logistics together of that summit that is still possible on june 12th. also talks taking place at the dmz between the two koreas the united states side said yet it's goal when it expressed to
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north koreans is a new acronym talking about in diplomatic circles, complete verifiable, irreversible denuclearization. that's what the united states wants out of this. the question is what do the north koreans want out of this the u.s. official said yet what they want is security. the challenge here for the united states is to convince them that they're more secure without the nuclear weapons than they are with the nuclear weapons. that will be the crux of this entire negotiation >> eamon, riding on this, be interesting -- i wish i could go forward six months and know where we are with all this we'll take one day at a time you know what tomorrow is? >> friday, coming up again short week >> weekend weekend. weekend, eamon >> don't jump the gun.
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you still have to works for all day tomorrow and all day tomorrow >> all day is a relative term. >> that's right. >> let's talk markets and the economy. joining us is doug cotay from voyay investment management. and covering the advertising angle, larry white, professor of economics at new york university stern school of business thank you for being here doug, i don't know if we had anyone who is as bullish as you. it's funny what is the biggest risk for doug, andrew investors will not realize this is the best time in 30 years to be in stocks that's the risk. >> upside risk >> not recognizing that. >> that's correct. >> what is so great? tax reform
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deregulation what makes it so great >> all of the above. the fiscal policies and we're in an environment where we have unleashed growth we have unleashed markets. the tax cuts certainly we cut it by almost half deregulation, i heard you talk about the volcker rule, more deregulation basically you're getting government out of the way of the private economy. we're seeing capital investment, we're seeing gdp growth, corporate earnings, manufacturing. what could be better growth has doubled from about 1.5% to 3% global gdp at 4% then, you know, you talk about europe europe always snatches defeat out of the jaws of victory what do you expect it's not like we'll worry about it >> and you point out we're late in the cycle in the eighth or
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ninth inning but it's a doubleheader >> right he would have a long way to go. >> why not just say we're in the third or fourth inning >> because it has been a long game already >> it has. we're in the doubleheader. why? because we just did the tax cuts deregulation has been going on businesses i think were shocked and surprised. they were not quite ready to start spending they have been spending, but i think the best is yet to come. what we did is this is a game changer not only for the u.s. but for europe europe is going towards the socialist -- they're going the wrong way. they have to come to pro growth economic reforms i think we'll have another wave of free market capitalism. but this time in europe. i don't think that's priced in i think we have a long way to go.
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>> italy is on everyone's plate now. does it resolve quickly? does it drag on? does it turn into anything is it another one of those one-offs >> italy is an issue we have the common currency, and if they decide they want to pull out of it, that can lead to a lot of disruption. imagine you have a deposit in an italian bank -- >> like bill gross >> well, yeah. do you want to leave your deposit in that italian bank and maybe you'll end up with lira and you don't know the exchange rate, or maybe move it to a german bank. >> which is probably why we will not see a hard decision any time fast this will stretch out. >> i can imagine a lot of fluctuations in the markets as new particular events hit the front page or hit "squawk box." >> there you go. >> it's still not -- at this
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point, with what you're saying, it should not influence anything here in terms of our economy or our stock market >> except this is in an embedded industry and a larger issue. we may be on the edge of a trade war with china, with europe. that's not good for the economy. that's not good for consumers. we could see increase in prices of things like clothing, automobiles. that doesn't bode well as my grandmother would have said, doug from your lips to god's ear. i would love to -- for the markets to behave well. >> we just had first quarter corporate earnings, they look like they'll do better i did a piece in 2010 called much to do about the euro italy is the fourth largest
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debtor in the world, almost as much debt as germany yet half the gdp, so it is bad. they're in a box they can't get out of the euro because it would be armageddon they don't have a choice >> we have someone coming on later who will say this is probably not going to happen -- >> europe falls apart? >> the whole single currency given the different economies and cultures >> start with the italian banks and think of the pressures on the italian banks, as italy says we want to pull out. does that spread to spain, portugal do we see greece act two it could get ugly, a lot of uncertainty, and the markets do not like uncertainty
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if you look at the ted spread, libor minus the u.s. treasury, they're saying this is a nonevent >> you have seen investors like bill gross get caught in this crazy trap we thought interest rates would be going up, nowhere but up in the united states. to see his fund, bond fund go down 3% in a day, that's maybe telling you there's something crazy happening. >> it begs the question why aren't you in voya fixed income funds. >> because you never had a loss like that? >> our fixed income managers are the best in the country. our top fixed income manager, matt tomms, he's saying 3% is the high i'm telling everybody to take the cash, lock in the high yields, because it's only going down
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3% u.s. treasuries -- >> it's only going down because of concerns about the u.s. economy or only gone down because we look like the place to be. >> a half percent in germany versus 3% in the u.s., any time you have 3%, lock it in. >> so everybody panicked as the yield went to 3.1% in recent weeks -- >> we're saying buy, buy, buy. >> who does that remind you of >> buy, buy, buy >> we have the best -- not that. >> don't lead, follow. who would say the best -- without any evidence, just we have the best investment guys in the country. >> the president >> maybe sounds a bit like someone that might say something like that. i was trying to lead him into
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it i don't -- i don't worry about italian banks. italian food, wine, tourism declines then i will worry >> nobody thought about that up until tuesday. >> i will check out the food over there, make sure everything is fine. >> two thumbs up >> yeah. see if i can call ubs. >> you don't manage money, do you? >> only my own portfolio >> stern is pretty good, he could help me if i need a -- >> i'll be happy to. >> going back to school? >> i might
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>> we have the program, you can get an mba in about three years or so. >> the same guy, langone in. >> same guy. >> ken langone >> nyu stern school of business. >> all right, professor, thank you. >> thank you >> doug, thank you quarterly results out from sears. the retailer losing $3.93 a share for the first quarter. only one analyst provided an earnings estimate and that was for a loss of $1.51 a share. comparable-store sales down 11.9%, that's a bigger drop than the 9.3 expected sears says it has identified about 100 non-profitable stores, and that 72 of those stores would begin closing in the near future the stock is at $3.21. no trades on this news but we'll
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continue to watch the stock. when we return, the trump/kim summit kim kardashian that is find out why she was in the west wing meeting with the president when "squawk box" comes right back ron! soh really? going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. at crowne plaza, we know business travel isn't just business. there's this.
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welcome back to qux squ"squ box. we often talk about bond vigilantes, but a story today talks about pothole vigilantes some people are so fed up with city crews they have taken to filling the annoying potholes themselves among the things used to fill the holes, plants, toy boats, tile mosaics and toy ducks last year the city had triple the number of potholes compared to the 1990s, but mayor debla o
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deblasio's program pave baby pave is solving the problem. >> costs a lot of money. flat tires >> and what it costs if you don't have good infrastructure >> busted shocks >> it's worth it. >> i've had three, four flat tires over the years >> i've had a couple and ran over a big lug nut, one that was kind of -- >> it's not fair >> there's new technology about this for the car new suspension systems that actually are built -- >> if you have the low profile tires -- >> you have to keep your eyes on the road >> i drive a jeep commander. it's like off-roading when you go through new york city >> i blame you for a lot of that heat steamy >> now to another story. >> i have a minivan. >> another gas guzzler >> this story could be steamy.
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a story we referenced at the toch of the sh top of the show, the meeting between kim kardashian and president trump. the photo tweeted out because what else would they do? i'm surprised they didn't do selfies or snapchat. photo captioned great meeting with kim kardashian about prison reform and sentencing. there's a specific person she's been trying to help. >> a woman she's trying to release. >> everybody who goes there gets a picture, they don't necessarily tweet it out >> i thought she would be on snap they would make the dog faces together, all the stuff that -- >> being two experts in reality television >> at all of it. >> in sports news, the capitals evened things up in the stanley cup finals last night beating
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the golden knights 3-2 the series tied at 1 the teams will face off again saturday in washington for game three. we have this and the nba finals which are ready to started golden state is heavily favored. >> yeah. >> golden state may be better than the celtics, which took them to seven games. coming up, amazon seems ready to take over the world it's going to be the uber of -- maybe not. is the stock going along for the ride we'll ask an analyst as we head to break, here's a look at yesterday's s&p 500 winners and losers whoooo.
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welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back to "squawk box. let's look at the u.s. equity futures, which after the big moves we've seen the last two days are barely budging. dow futures down by about 25
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points s&p fut doures down by 1.5%. this after some big gains yesterday making up forev the losses we had seen before. we've been talking about italy all week don't overlook spain, the country's prime minister will face a no confidence vote tomorrow that vote is considered too close to call at this point. european stocks seem to be shrugging off that concern at the moment stocks in spain up by a quarter percentage point italy's stocks up by 0.6%. things are relatively flat in london retailer pvh posting better than expected results. this is the company behind brains like tommy hilfiger and calvin klein here is the ceo on "mad money" with jim cramer last night
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>> our business between calvin, tommy, our heritage businesses, we had a quarter that was off the charts from beating our expectations we continue to make the investments in the business, and they seem to be delivering >> shares of pvh, looks like $155.50s amazon's acquisition of whole foods one of the reasons 2017 was a big year for the retailer as amazon grows larger coming under scrutiny, includin pointed criticism from president trump. that concept of being under the microscope is one area of focus that took place at the shareholder meeting yesterday. joining us is michael graham, internet sector equity analyst at concord your sense of how jeff handled it yesterday he basically said we're a big company. we'll get the scrutiny we have to just act as well as we can and -- it wasn't hope
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he just thought if you laid it out there and you were honest, you would pass with flying colors does that approach work? >> i think it does it was similar to the approach mark zuckerberg took in front of congress i think a lot of these super large company ceos are accepting the notion that there will be regulation and scrutiny on the companies. they're so big, they comprise such a large part of the u.s. economy, it's inevitable that will happen. amazon has been under scrutiny for a long time. you mentioned the president trump tweets >> did he address the trump tweets >> not at meeting. i don't know that he has i think there's a set of motivations for those. i think in general -- >> let's get into that what do you think the motivations are? >> partially political i think they're partially sort of bell placed in terms of trying to make sure amazon is
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paying their fair set of taxes >> do you think it's about that or the "washington post" >> my clpolitical comment was really centered around that. the president is trying to fight back with every means available. >> we had kevin o'leary on guest hosting the show a couple weeks or couple months back, he said, look, he is an investor in amazon, he said i don't want jeff bezos owning the "washington post." i think it's a detriment to the company and the other shareholders what do you think of that? >> it's definitely making mr. bezos a lightning rod for what's going on politically and with the paper. i think it's probably not the greatest thing but a minor issue. amazon is all about providing great service to customers global expansion, bringing goods
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to consumers at lower prices, better convenience there's going to be casualties along the wraay >> remember that progressive business guy, sloan, that's his name what was his name? >> okay. he was so far out there. when this happened, he asked bezos to declare his political beliefs before allowing him to buy the post he was worried as an entrepreneurial guy, he was worried that the left wing "washington post" would move to the center or move to the right. instead -- i have not heard from him lately i think he's pleased with the way the "washington post" has remained -- has not been tainted. >> bezos is not directing any of this stuff he funded it and said do what you want
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if you want to report on amazon, go ahead >> that's probably true. but this guy's worst case is not born out >> there's the organic growth piece, but he also has bolted on different companies. do you think the board has to think about what kinds of businesses and what size transaction it can accomplish without bringing on too much heat to the company? how much does that play into the m&a strategy >> i think most of amazon's strategy over the years has been smaller, tuck-in, technology teams. whole foods was the largest one. it was a big one i think we'll look at whole foods and look at that as acquiring grocery expertise, execution. >> tuck-in acquisition because
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amazon is so big -- >> because they were going to pursue that business any way they would be delivering groceries down the road, this was a way to accelerate that process. >> i was with a ceo of a top 20 company yesterday who made the comment that we all talk about amazon as if it's god's gift to the universe spend a bit of time with alibaba and tencent, and it's nothing. >> i spoke with a ceo that said at every boardroom they're trying to figure out how not to have amazon come into their space and eat their lunch. >> every company has an amazon plan >> where i was going with that, do you think the guys in china are ultimately going to come here and compete >> i don't think they'll be that successful >> do you think amazon has given
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up the opportunity to compete in some other markets >> china, yes. other markets like india, absolutely not >> speaking of india, walmart just bought flipkart, amazon there were reports was trying to buy flipkart what are the implications there? >> it's more competitive in india. with amazon it's a stage of growth in india they're facing more competition than they did in the united states at that stage of growth but amazon is a company with bottomless resources that is fully committed to growing in india. it's been a key source of investment for the last three, four years i don't see them taking their foot off the gas at all. they will be bigger. their prime subscription in india, the last time i checked the promotional rate was $10 a year they just raised the prime price to $120 here in the u.s. >> the other question, we've been talking about various media
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deals that seem to be in the works or not, cbs, viacom. do you see amazon ever buying a traditional media player to ramp the prime video service? >> it's certainly possible i think if they were to do that it would be about content aggregation. they've been investing in growing numbers of billions of dollars every year in original content. i think for the time being they're enamored of the netflix strategy which is let's build our own content as opposed to licensing it we control it, margins are higher buying a big content library could possibly make sense. >> but not that they would wanted to be running a studio or anything >> i think the point would be to tie in the video content with the music offering, with the prime delivery offering, and it's all -- with alexa, all that stuff. the prime bundle to make amazon
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super sticky within the households >> final yes, sir, yesterday que had the former ceo of walmart on he believes aws is subsidizing the retail business. do you believe that or not >> for now it is they're running the retail business at a break even level of profitprofitability they' they're doing that on purpose. >> it's different to do it at a break even basis than at a loss. >> international is losing money, u.s. is making a little money. you put that together, it's like a loss >> do you think they're using it to unfairly keep prices lower and to undercut competitors? >> i don't see that. i think they would be running the e-commerce business the same way whether they had aws or not. aws is clearly helping the stock, which is helping the
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company operate. >> thank you >> sorkin, twitter just puts anything they want on my feed? is that legal? >> what? >> i don't know. beats by dre i got this big advertisement >> it's an ad. >> so they can just stick that in my feed >> yes >> how do i get it out >> you don't >> so it's here, stick, it's six hours ago, but it's at the top playing again and again and again. >> you don't pay money for twitter. >> i'm paying now by having this forced down my throat. >> speaking of -- >> coming up, good news in the fight of the opioid addiction. and later, the high takes of the u.s./china trade talks >> at 8:30 eastern, weekly jobless claims and personal income and spending.
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do you believe all that is coming at 8:30 >> we'll talk about it when we y'r bk. >>oue watching "squawk box." disrupting business and taking on a life of its own. its multi-cloud complexity creating friction... and slowing innovation. with software-defined solutions, like hpe onesphere, you can tame the it monster. hewlett packard enterprise. clouds, apps, and insights faster.
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welcome back in our headlines, disgraced
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movie mogul harvey weinstein has been indicted by a grand jury on rape and criminal sex act charges. it comes after weinstein was arrested and charged last week the indictment brings weinstein another step closer to accountable according to the d.a. weinstein denied all of the allegations. we'll watch. it will continue jj watt can add another title to his resume, that's doctor the houston texans star was honored with a doctorate degree yesterday because of his efforts during the hurricane harvey relief he raised $37 million in relief. in a speech watt urged the students to use that same type of giving energy in their medical careers. >> what i challenge you to do is to help bring out that inherent good in everyone around you.
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help be that positive light. help be that person that everyone else wants to be around and help be that energy that takes this world into an even better place >> jj earned the walter patton nfl man of the year award and was included on the 100 list of the most influential people in the world. getting word of one of the biggest changes in cancer prevention the american cancer society saying that colon cancer screening should begin at 45 years old, 5 years earlier than recommended. this comes as many of the victims are younger in the past 24 years the number of people diagnosed with colon cancer iunder the ag of 50 is up. new data from the american medical association shows doctors are being more careful
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about opioid prescriptions prescriptions for the drug dropping 9% between 2016 and 2017 prescriptions for noloxone doubled last year and the numbers are on the rise. when we return, oil prices are dipping, we'll drill down on the sector next. first a quick check of what's happening in european markets right now. the dax in germany down. stocks are higher in france and in london. gh ilast we looked they were hiern italy and in spain we'll be right back. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. & so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes...
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welcome back to sidewalks, making headlines, shares of crispr, they halted how gene editing could help treat patients with sickle cell disease, no more reason on the halt, the reaction is down almost 15%, 14 and change on the
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stock. oil prices this morning have been under pressure once again him we have seen a pretty significant slide in oil prices as evidenced by this right here. we were up well above $71, trading at 67.85 all of the things have been taking place over weeks. that mara esner. is this a direction or a temporary decline? >> i think it's temporary. i think the fundamental am picture is still really strong the market is getting a bit dislocated on a riskoff sentiment in europe. trade war concerns in the u.s. the dollar has been pushed up. we seen the dollar overshoot to the upside and downside. it's what started precipitating thisdown downside. i think it's temporary the
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fundamental apples are still there. flu is said we were pushed too par to the fair side what do you think the fair side should be for oil right now? >> i think around $70. it didn't take geopolitics or external that was largely a fundamental story. >> yes an no, there were geopolitical concerns about what would be producing some. iran, i would argue there were geopolitic concerns. >> i think the fundamentals are still there when you three of all the barrels that have been taken out of the market. venezuela venezuela is down by 500 barrels a day this year, likely to be down another 500 ber day by the end of the year demand for the first quarter was 1.8 million. nearly 2 million a day at most shell can grow 1.2 we need every barrel to take to us balance the market. >> how long will it be before
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shale mark in the united states can ramp up and eclipse those. i heard there were bottlenecks even if we were drilling more, you couldn't get more to to market how long before you could see additional supply coming from the united states? >> it's interesting, as oil analyst, we focus on what are the wild cards usually their i they're big ticket items now we find they're in the u.s., the question is how much can u.s. shale grow. we are in a see change, managers said we will no longer grow production on the expense of profitability. companies are now changing their incentive structures to incentivize profitability. >> $70 bucks, aren't most of the shale well placed at those profitability levels >> in 2018, no one anticipated the rise capital budgets were set closer to 60. some cases lower than. that they have already
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authorized purchase programs they're sort of locked in. when you look at the slope of the futures curve, it's going downward, it's harder to hedge attractive prices for further out years. >> is it locked in for years or multiple years >> the bulk of the hedges are 2018 it's been harder to get good pricing for hedges in the outer years. so that's some fiscal constraints and you mentioned the bottlenecks, which are logistical constraints, all of which means shale will grow but not as much as the mark perspectives. >> good having you >> thank you when we come up, bank stocks are taking a wild ride this week italy a drop the u.s. yields and a word of regulatory rollbacks or word of rollbacks we will talk about the wneinrs and losers with gerard cassidy >> that will happen next right after the brake.
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warren buffet confirming he held talks with iriuber but the deal fell through exclusive comments from uber's ceo coming up. the latest on what to make of the markets and perhaps where you should be putting your more than i money to work why farmers are feeling the pinch. a live report just minutes away as the second hour of "squawk box" begins right now. [ music playing >> announcer: live from the
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beating heart of business -- new york this is "squawk box. [ music playing >> good morning, welcome back to "squawk box" right here on cnbc. andrew ross sorkin along with becky quick and joe kernon u.s. equity futures at this hour the dow him we know, thank you very little the dow is off about ten points nasdaq, though, on the upside about 15 points up the s&p 500 looking open marginally higher. a couple things going on at this hour a report in the german magazine says president trump is going to drive off the street and citing unnamed diplomats. it climbs that president trump made that declaration to french president macron in april. none of this has been independently verified, but the story is weighing on shares that auto makers this morning
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of course, there has been discussion about alluminum and the tariffs and the auto makers. so we'll see where this all heads, in the meantime, the record year, international air forecasted record profits for 2018 back in december, now says that is unlikely, now the airline profits are still likely to be robust a business morning ahead at 8:30 eastern time, we will get personal income and spending and the labor department's initial jobless claims later this morning at the manager's index. pending home sales will be out i mentioned a little deal. if you are interested in armored vehicles, dunbar was just acquired by brinks for $520 million in cash. >> for those that don't known dunbar and brinks. >> number one and number four
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armored truck companies in america. >> you wonder if the regulators will say anything. >> will make the point. >> cash is going away. >> what do you do about snit >> this might be a desperate consolidation in a shrinking business >> it might be i don't, i'm afraid know about the armored drunk truck business >> they still use armored pounds over there >> you didn't get sucked in? when the deal closes, do you know dunbar truck brings it over to the brink >> oh, i like that maybe, maybe they deposit it by a blockchain or something. once they're out of the business, they can do what they like. >> all right, warren buffet confirming to cnbc warren hathaway did the investment in the ride hailing service, buffet says not all the details in the initial report are correct he did say, yes, talks did take
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place, he says he's a great admirer of uber's coo. in a new interview, he says the feelings are mutual. >> and what i'll tell you is that i'm a fan, i'm like a warren buffet fan by for many, many, years, one of my goals is to get them invested in something and i failed maybe one day i can convince them times will be right he would be willing to honor us with an investment he's i think warren can invest anywhere, anytime. >> it would be a big deal for approval they are telling carl the company is still on track for a potential offering in the next year >> we are in agood position in
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terms of the company's profile in terms of profit ante. margins continue to get better we have a very strong balance sheet. i do think we are on track for an ipo we have a reasonable buffer as well that said, we would welcome strategic investment it's not a first priority. >> uber says the ceo company has been in talk to use its self driving technology that would be a thawing between uber and waymo irish was ordered to pay $250 million over trade secrets see more of his interview coming up today on "squawk on the street". >> good morning, andrew, we have been waiting on that so-called
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232 decision on tariffs on steel and alluminum for canada and mexico and the eu. i have been talking with a source familiar with the decision i am told it is coming it is likely the united states will go ahead and impose those on can that and the eu under the so-called 232 decision-making framework. >> that means the u.s. side is now expecting the eu will retaliate by the united states to put tariffs on them i am told this decision is 99.9% done but there is still at least a chance the president could reverse course here. the expectation is those tariffs are coming they will be imposed on canada, mexico and the eu and the united states side is bracing for an eu reaction to that decision as well, guys so we're expecting that sometime later this morning i can't say an exact time in
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terms of the official announcement, but it will be comi coming >> the last thing they need is a trade war. with italy >> it's quitaly. >> that's pretty good. >> i remember they were facing a deadline for some of the allies. the alice have abouting arguing it's not appropriate to put tariffs in place on national security grounds, therefore, you shouldn't be using this at all this is the subject of furious economic os testify last week. that's the argument from the administration and they'll say the steel and alluminum industry in the united states is vital to national security. they will make that on national security grounds
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not on trade imbalance grounds it's an important industry we have to have it here at home. >> we have the ceo manufactures on to talk about deteriorate coming up. he will join us with his thoughts it's kind of complicated some want to see these tariffs imposed. others don't. >> you know what else is >> what's that >> weekend >> because it's the anticipation of friday. because by the time friday comes, it's almost monday. >> you are so bleak, man >> i know. >> an irish poet >> all right monday is always monday is always coming. >> my grandmother used to say, that's probably good after midnight >> probably tu there is a song like that, too except it's 2:00 a.m nothing good happens until 2:00 a.m. >> maybe between midnight and
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2:00, it's bad >> they are yelling please in my ear. thanks the financial sector is staging a comeback after tuesday's slide as political fears in italy ease and some regulations state side are getting rolled back. we're either on the cusp of the next financial crisis or we will be doing better. you might be able to film us in on that. the world cup? >> the world cup, that's actually the great similarity of the populous unrest at the moment >> we are dealing with basketball and hockey. not a lot of us are looking forward. when is the world -- is it a couple weeks away? >> yesterday that's a side point. markets breathed a sigh of relief in italy. it gave the two pop miulist pare to march result.
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but yesterday yields fell as much as 70 year basis points they remain significantly elevated, though, since the march election enjoying the second day of gains. in the u.s., banks rebound as yields rose globally but also balls of some passtive news among other things the kbw banks are down italian banks rebounded but less investors are less forgiving bank index is still down 8% per week today despite the rebound, fresh elections seem a likely outcome. the leader said yesterday this is my appeal he should tell us the date of the vote italians will deliver justice for what has happened. he gained the most in the polls.
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the ball is therefore in his court as opposed ofive cars l d leader but either way the risc abated over the last couple days >> stay with us. we are joined by gerard cassidy managing director at rbc are you happy about the rollback or are we just seeding the fields for the next financial crisis >> i would say the vocal rollback is not too significant. we are not going back to the way we were, joe, pre 2008 there is a lot of regulatory min sha addressed yesterday. goldman sachs, j.p. morgan, they're not going to be trading like they were be every the crisis >> so it's not a net negative for society? it's a net positive? >> i would say it's a small net positive for society if you will the smaller banks, there is a bank over in new jersey, sb 1
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bank they're not going to be impacted by this, it's for the big banks. they want to make sure they don't go back to the trading they used to do. they are rolling back the compliance costs >> so missteps stein europe, they're trying to run up a free market economy they flatten our yield curve when they mess up over there does that mean that we're headed in -- that indicates a recession or a slow down why should italy cause us to have a flatter yield curve >> joe, it's a very good point we saw this in 2011. you may recall, that was the last time the europeans yield curve flattened. >> that is why the bank stocks suffered as much as they did earlier in the week as it was talked about, it was not so much the problems as the italian economy is going to have, it was more of the flattening of the yield curve. we all expect the fed to raise rates at the front end of the
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curve, so, therefore, it could flatten further. >> that is certainly some pressure for the banks i think they'll get around it. >> it doesn't necessarily, it's predicted ten out of the last two recessions they wanted those predictors >> actually when you look at the front of the curve to the ten year, you go back to 1950, it's amazing when that inverts how often we do go no a recession. if you see the fed funds exceed the ten year bond yield, that would be problematic >> this time it would be different only because the ten year is manipulated so much by federal banks at some point? >> you are right, we are in uncharted territory, we are ballooning its balance sheet to over $4 trillion we know what they have done over the world. we are in unchartered territory. we don't know if it will hold up like in the past >> banks have done little that flat broadly year-to-date.
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do you think the see curve will run up too much or do another year of flat returns >> i think over the near term, we are going to see the catalyst, that's the stress test the banks go through that's what gives them the ability to raise their dividends and increase their stock buy backs. those results will be back in two-to-three weeks citigroup recon firmed yesterday they will give back $20 billion this year. the numbers are quite big for the big banks. >> we will leave it there. i cannot believe this, what i'm seeing here. you know what else that is sorkin >> enriching how >> the ends of the month >> what? >> national f'ing donut day. >> i do. i was having a conversation with somebody yesterday. >> you knew? >> for me, it's like my birthday. >> that's what i mean. >> how many donuts did you eat
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last year on this? >> last year six >> you had eight >> you know, there will be donuts tomorrow. >> don't eat breakfast. >> what's the plan >> there will be donuts. >> it's a day-to-day donut. >> we're going to talk during commercial break >> what's the man with the hollow leg >> i do not even know, coming up the ceo of the national association of manufacturers will talk job, the state of the economy, the risk of the state war. the battle against america's opioid addiction this is actually a very true story. guys, you will not want to miss this award winning jerry meyer has a new book on the topic. talk about the company behind opioids and what they may have known about how addictive all of this was beforehand, later, dairy farmers in a number of states are struggling after the
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production the reason behind the cut and what farmers are doing to make ends meet. all of that straight ahead plus you got donuts tomorrow so there you go, "squawk box" returns in a moment. with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites...
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>> welcome back, everybody,
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commercing is wilbur ross will be traveling to china in early june president trump expected to announce new tariffs this morning. our next guest says it will cement president trump's legacy as the manufacturing president joining us right now jake tim mons the ceo of the national association of manufacturers good to see you this morning >> good to see you, becky. >> i would imagine it's a fairly complicated one. you have manufacturers from all different stripes you are representing him some of them i am sure would like to see these additional tariffs come down others not so much i think of the steel manufacturers saying we'd like to see this and boeing probably being on the other extreme of things how do you take all of that and come one comprehensive policy you'd like to see? >> i think the key word is comprehensive policy if you look at the last 13 months in terms of regulatory reform, you see an amazing number from our recent survey,
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93% of manufacturers are optimistic about the future. in our further questioning ability 86% say they are investing in new equipment and three-quarters are hiring new workers and raise ig wages and benefits then you talk about the implications of the trade policy i frankly think we all want to see china being held accountable for a lot of distorted practices that have really hindered manufacturing here in the united states and around the world. so this is a great opportunity for us with secretary ross going to cho seung-hui china to benefe world. >> what would you loo tobacco see in that bilateral agreement? >> well, certainly china, let's put it on the table, china treats china steals our intellectual
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property china forces us to give up our trade secrets. china forces us to create joint ventures, in the process, we tends to lose a lot of again our intellectual property. so i fiif we can establish a system that has everybody playing by the rules, with i they have done with other countries and other countries are pursuing some of these agreements as well, let's say japan or canada are already looking for agreements with china, we will be a lot better off as manufacturers i will say this, those numbers i cited for the optimistic outlook of manufacturers, there are a lot of folks right now that are very concerned about what's coming next in terms of tariffs. the 25% tariffs that may be announced today in terms of steel and alluminum, those could harm manufacturers in the united states so the president seems to have kind of put these things on the
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table to give us lever annual to create a more level playing field for american manufacturers. if that is the ultimate goal and outcome, that's good news. >> let me ask you, that's the $64,000 question >> sure. >> is this a situation where growing these tariffs on the table, you know, two weeks ago, we had steven many fuchen saying the trade war is off, we have wilbur ross talking tougher and additional sanction thrown on as we head into these talks, we're not sure the chinese will sit down at the table. is this something harmful or necessary to beat the chinese to the table to say you got to sit down and negotiate with us what's your take >> it sounds trite to say this, history will tell us the answer. nobody has thrown down the gauntlet like this, to the point of a bilateral trade agreement
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if to the president is successful he will cement his legacy as the manufacturing president for generations to come him i think we will have to wait and see it is a tactic that has not been tried in the past. i think it can produce some benefits that's certainly what we hope for. we cannot continue to have this, tore china cheating and harming and distorting the economy i do think they want to come to the table. let's face it, we are the number one economy in the world they want to be able to work with us, to sell to us to buy from us and other countries around the world want to do the same thing i understand china is growing. it's emerging. it is a very developed my. they need to play in the world like the west of us. >> what about nafta, that has to be hugely important to your members as well?
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>> well, it's very important obviously, our trade with our neighbors and our allies is very critical it's important to the supply chain for manufacturers here in the united states, about 6 million jobs in this country manufacturing jobs are dependent on our trading with other countries and 2 million of those alone are dependent on our trade within the nafta region. >> what happens if nafta gets ripped up. you are not saying that risks 2 million jobs, are you? >> i think it has huge risc to the american manufacturing work force. that's why we are working so diligently to make sure an updated agreement is actually enacted by the three countries it's very important to us. but there are some sticking points there are some sticking points that quite frankly we don't agree with on the administration, one is a sunset after five years manufacturers are not going to make investments, decisions based on a possibility of five years from now that those
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decisions will be completely overturned there are concerns as well for a program isds which is basically a dispute settlement system that allows y allows us to make sure they play by the rules the united states hasn't been aggressively in defending that they don't want it for the united states. we think that's a mistake. >> you say the sun set clause is something you don't agree with rules of origin is another sticking point with nafta. where do you come down on that >> that's right. it seems to be moving, it's a moving target right now. there is nothing that's solidified the original probably i that was way too onerous for manufacturers in the united states the latest proposal, which has less nafta content in it and requirement is going to be a better deal for us but we're hoping that that is
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still on the table and there is still going to be some modifications made to that >> jay, thank you for your time today. >> great to be with you. >> all right, coming up a look at the markets ahead of today's trading session. up next, the latest news out of hawaii as mount kilaue continues quk x"pt "sawbo will return in just two and two. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time.
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>> good morning, welcome back to "squawk box" here on cnbc him we are live from the nasdaq markets set in time's square shares of dollar general taking a hit. the discount retailer earnings $1.36 the first quarter. revenue fell short as well comp store sales were below expectation. you see that stock is down 6.5%. michael jackson's skate is suing nbc about using his songs and videos without permission. abc denies the special infringed on copywrites.
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global investors cut their holdings to nine month lows. they show overall equity exposure fell to 27.4, the lowest since august. bond holdings rose two percentage points to 40% >> did you see michael jackson -- i did not see the special you know why >> you didn't dvr. we are breaking news we want to get to on general motors, our own phil le breaebeau, he is in. >> reporter: general motors announcing it is taking a $2.25 billion investment from the soft bank vision fund that investment will be going into dm's autonomous vehicle subsidiary gm cruise automation. so what have you here is soft bank's vision fund investing $2.25 into gm cruise automation. taking a 19.6% ownership stake
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in that subsidiary at the same time general motors will be inkreft vesting a fresh $1.1 billion in gm cruise automation. what does this mean? general motors says they have the funding in place to go through specialization launch next year. in other words, autonomous drive vehicles, in a commercial platform, whether ride hailing or some other method, that is the plan there is now funding in place with soft bank's vision fund investing 2.25 billion we will be talking with dan hammond from gem portes coming up next hour first on cnbc, we will talk about this investment from soft bank as well as the plan for cruise automation. guys, back to you. >> sound good. all right. thanks the hottest in moving lava of kilauae eruption the official there is are
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ordering more evacuations in two coastal neighborhoods over the fierce the rapidly advancing flows could cut off escape routes, overnight the lava was moving fast enough to cover six football fields an hour, about two dozen recent fissures have created a towering lava found cane, the hottest and most fluid to date. we forget. don't we, what goes on under the senate called the molten rock it's very active not just mud >> since it's the hoddest and more fluid, it's moving much more quickly than in the past. >> frightening not like you can stop it from coming >> when we return, italian political concerns keeping marks on edge. we have been watching the futures this morning so far, it looks like the dow
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and s&p have turned around the s&p indicated up just over a point-and-a-half sd b, w futures up five points naaqy 13 we will talk markets when we return stockmarkets will be right back.
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at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.
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let's talk market. in the last hour, boy, investments chief market strategists gave us his bullish outlook and said this market rally is a double header >> we're in a double header. >> and why >> we just did the tax cuts, deregulation that's been going on and businesses i think were actually shocked, surprised. they weren't quite ready to start spending they have been spending. but i think the best is yet to come >> joining us the managing partner of lane associates and david i referenced you earlier in some of our discussion about quitaly and italy and the euro and it's interesting, because i happen to agree with you you said this probably going going to be it at some point we won't be
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talking about it but the euro is doomed >> i stand by both of those statements we have been saying them for a while. i didn't think when i made my article on wednesday we'd make back most of tuesday's drop in a day. you go through to it racings in degrees and the brexit issue cypress, the disruptions from europe are continuing to come. they keep putting silly little ballots on, calming eight short-term voter referendum and things structurally, it's unsustainable. i think that's a good thing long term probably painful intermediate for foreign investors. the way in which it gets manifested in u.s. financials, it strikes me fighting the u.s. battles i've seen. >> six degrees of separation look at what it does to the ten year, though. >> that will be a benefit,
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right? one of the thingsing i talked with the last time i was on with you, stocks and bonds were not diversifying one another, they sure were this week. all of a sudden you get this benefit of bonds that fight the safety and treasuries. it's hysterical how quickly interest rates i rate risks drops when people are worried about a global disruption, fundament ally that stave save i haven of u.s. treasuries is going nowhere. >> i don't think that's entirely different from what you think. we get beyond this, stocks are the place to be? >> you are right, brexit, it's like a three-day evechlt as an investor, what will happen more and more, the equity will shift to u.s. focus. people will pull money into the companies, let them allocate money overseas to your point, this is sunt. fms go down 4% in one day.
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our growth rates didn't change, more allocation came in, people had to sell. i think that's where you get the opportunity in the long term. >> you won sigh it's a good thing that problems in europe cause rates to go down lower here >> i think if you have rates. >> is that a silver lineing? >> it's hard to get above 3% >> i think you were talking about that before. you have these technical factors we haven't seen. we haven't seen all this money that came into the mark. fundamentally speaking, the financials i think are the way to go. what will drive them will be earnings now once people see that, you will get the stocks to expands. we do need rates to go up. in the short term the blips will cause a lot of disruption. >> the mid-cap, u.s. equities. >> so where we like to be is
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small cap and mid-cap, not passive, not the full index. you have to buy this stuff that's benefiting from corporate tax reform it means they are making money we like small cap where there is that unpriced benefit from tax reform we like emerging marks from a growth standpoint. in terms of with large cap, we're playing for the value transition we think the divot in growth will be a better place to be the telecoms until there is value out there to buy >> are you a trojan? >> die hard. >> a big trojan. you think sam donaldson -- >> i think the kid's a winner. i think new york is going to be owe zploe the other guys, sanchez? >> he wouldn't couple games for them the fumble >> i do rememberit he will not do that. >> all right david, thank you i don't know where you went to school >> i went to lehigh. >> good place. coming up the author of pain
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killer and empire of deceit and the origin of the epidemic we shine a highlight on objecti oxycontin. -or paying any upchar. what can i say? control suits me. go national. go like a pro. ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪ it can grow out of control, disrupting business and taking on a life of its own.
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welcome back to "squawk box," a new book drug maker pharma knew
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it's drugs were widely used and marked them as less addictive. they led to the epidemic we have today. "new york times" reporter, author of painkiller, empire of deceit and the origin of the opioid epidemic. thank you for coming in. >> thank you, andrew >> the new information is that the justice department >> correct >>ed a gone to purdue and said there is a problem here very early on >> in fact, the new information is that the justice department found a wealth of evidence showing they knew these drugs were being abused. knew people were getting addicted to them effectively the company covered it up. this was in the late 1990s, in the few years after oxycontin's eruption >> not only covered it up saying it was less addictive than other
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drugs like vicodin >> it's pretty incredible. i think the book tells the story of what may be the biggest corporate coverup. you have record financial frauds, people getting ripped off. here we have a situation of a huge health crisis being created. >> do you think you can say what happened then led to today the company will say, look, we make objection contin, we're just a small part of the business, if you will. >> they were a $31 billion part of the business the whole opioid era was launched by the aggressive and illegal marking of objection contixycontin there have been no drug marketed widely as purdue pharma marketed
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this drug. >> what has been purdue pharma's response to your book? >> pay no attention. we're a little part of the problem. there are a lot of other factors here the drug problem today is multi-filled it's two-pronged >> how many deaths a per year are there and how many would you say are linked to oxycontin? >> there are about 60,000 overdose deaths a year i don't know how many today are linked to coax e oxycontin, certainly a decade ago, there are large number of deaths and overdoses and hospitalizations. >> so reactivists, the cdc says more than 200 people have died, not just opioid's broadly. this is what purdue does u does say, suggesting they occurred for today's complex and multi-faceted opioid crisis is deeply flawed?
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>> correct but the fact of the matter is, that purdue marked this drug in an aggressive and illegal manner >> so then the next question is, what should happen to purdue and, by the way, where was the justice department throughout all of this? >> let me start with that second part first the justice department had an opportunity to prosecute the executives at purdue, it was a the recommendation of the prosecutors on the case, they wanted these individuals to be charged with serious crimes, but top justice officials and the bush administration essentially blocked that one of the themes i tried to present in the book is had those prosecution been forward, there would have been a message sent out this behavior was unacceptable and there was a serious price. >> why did they choose not to? >> i guess they were afraid. they buckled when confronted by
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purdue's high powered legal defense team and rudy guiliani was one of their advisors at the time you know that's something they have to answer to. but certainly the prosecutors on the case recommended that there be very serious felonies be brought against the executives >> if you just took it in pill form, was it a better way of treating pain medicine and people figured it out? >> people figured out they could crush it and snort it very quickly. >> is the pill itself a better what i to manage pain? >> it was being promoted that way. they think it was a long lasting form of vicodin or percocet. >> then it quickly people found out you can crush it and snort it >> they did. >> did other manufacturers get notice from the justice department about the same kind of claims that had been made to purdue >> you know the justice
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department has not gone after these companies sort of with any great vigored and a part of the tragedy when they didn't go after purdue it was a green light for everybody else to kind of go wild. >> why do you think we are, the administration talked about what it wants to do, what is the state of play in >> i think it's very important you have an ounce of business people and executives who can play a tremendous role in staunching this epidemic, making sure people in pain are treated with the best possible treatment for pain, not simply pain pills. they can make sure the companies give them far better pain treatments >> gary meyer the book is "painkiller. it is eye opening. take a look at it. appreciate it. great to see you
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>> all right when we come back, are you putting milk in your coffee? apparently that's the only way people are drinking milk these days, contessa brewer is down on the farm. >> reporter: becky, i'm on a connecticut dairy farm a fourth generation, their contract has been cancelled the buyer disappeared. these kids may grow up on a farm with no dairy cows
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dairy farmers across eight states are now struggling after a decision by dean foods to cancel the contracts retailers like wal-mart and kroeg rer getting into the milk business >> reporter: hi becky, jericho acres farm in couple has been in this family four generations now, every morning she brings the boys down, while daddy is milking the cows, they get a taste of what farm life is from. then they got this letter from dean foods can selling their contract, giving them 90 days notice, they and more than 100 oitself farmers got the same letter so dean foods points to competitive pressures with a big grocer billing its own processing plant though dean did not name names, wal-mart will begin bottling its own milk for its grade value
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store brand in indiana and other big grocers like kroeg rer processing their -- kroger are processing their own milk there is one in lexington, today's deadline has come and no luck >> it's devastating. it's been really hard to imagine what this place will look like without dairy cows and it's even harder, definitely something we can't keep milking without a market >> since 2000, more than half of american dairy farms have disappeared. while efficiencies in farming have led to increase in supply, americans are drinking less milk than ever. the younger ones are college educated they said they knew the marks and were trying to diversify, they planned increasing their herd instead they got this letter they were suddenly in financial crisis with 90 days to plan,
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they started selling off the cows, today they have less than half of their herd and the barn even when it's not milking time seems half empty. guys, one more note, dean foods contacted and gave them a brief repreefb they'll have 30 more days to keep selling their milk and hoping beyond hope they can find a buyer. >> okay. thank you for. that we will see you soon. in the meantime, coming up, when we return, president trump expected to announce new tariffs this morning the latest on trade the markets, all of that straight ahead later, soft bank making a big investment in general motors autonomous car business. dan ammann will be joining us to talk about it in just a minute "squawk box" returns in just a moment the governor has declared a winter weather emergency...
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betty called me at she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day.
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tariffs are coming cnbc confirms president trump is likely to announce imported steel and alluminum very soon.
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live report from washington straight ahead new this morning, soft bank investing 2.2 billion in gm's unit plus, warren buffet wanted to hail a ride. talks fell through what the ceo of uber talks about the potential investment from or cam of omaha coming up as the final hour of "squawk box" begins right now >> live from the most powerful city in the world, new york, this is "squawk box" >> good morning, welcome back to "squawk box" here on cnbc live from the nasdaq market site in time's square, i'm joe kernon. futures have been flat most turned positive, though, now the dow indicated up 21. a big snap back yesterday from a
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big sell-off the day before. the s&p is indicated up 3 and change the nasdaq up 17 in europe, sort of a similar session. a little bit of green here and there. a little red in germany. then the ten year, it is still below 290. think. it came down 287 right now that's on fears of quitaly i guess. you like that? >> i think that's the best one >> in the meantime, we have breaking news to tell you ability. a decision on alluminum and steel tariffs expected today eamon javers is live good morning. >> reporter: i have been talking to sources this morning. i am told the decision is 99.9% complete the president is expected now to announce later this morning or early today that the united states will be imposing those alluminum and steel tariffs on canada, mexico and the eu.
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this has been the subject of furious lobbying over the last couple days, canada and mexico objected to being lumped into national security grounds. this is the so-called 232 national security procedure, whereby the united states could impose these tariffs so that is expected later this morning. i am told the united states south island does expect that the eu will retaliate for today's decision we will wait to see what that development is it's not clear exactly what the timing is. but it could be coming very soon we will see whether there is a tweet or official white house statement. we are expecting something from the white house soonish. guys, back over to you >> okay. thanks every hour we see you. >> in corporate news, soft bank's vision fund is investing $2.2 million in gm cruise. that's the autonomous venture.
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it will injaekt fresh 1.1 billion of its own. >> stock is up 8-and-a-half president. >> we will talk to gm's president in minutes elsewhere, shares of dollar general eamon will be on shortly. the discounter earned $1.26 a share. that was 4 cents below instand rinstand instant revenue. general competitor dollar tree fell 4 cents short of estimate, quarterly profit shares of dollar tree cut its full year out right. and president trump just tweeting about disney ceo bob iger this is other one. >> second one, saying, i ger
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where is my call, you and abc have offended millions of people and they demand a response >> this is not what he is talking about. how is brian ross doing? he tanked the market with an abc lie, yet no apology. double standard. >> he was suspended. >> then he was a long form >> but there wasn't an apology and a correction >> i mean a call to apologize. >> oh yeah, on the program for sure on abc. all right, let's get back on the broader market investors are still pricing italy as a particular risk with the leadership in question, more uncertainty is expected to hit the fiscal reforms and
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spending cuts that have 70 economy on the right path in recent months, this will be our continuing summer -- >> i think so the u.s. yields are a bet off their lows, backing off the concerns from italy the economists say the concerns are here to stay. here's whatevercore isa, quote, markets will live under a cloud from italy risk with high proenlt of further bouts of stress over the months a ahead, which should keep global safe bond yields from moving aggressively higher. i like this comment. he says, investors have to price in the low probability of an absolutely catastrophic event, which would result in enormous stresses, capital controls to italy and a collapse in asaid prices. >> how do you slice in something with a probability >> that's the problem. >> most people think of it as a
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binary. >> you had brexit with a 51% lead in the polls. you get an 80% probably because there are one bets you can make. you can make it on both sides the bottom line is few of these guys expect italy to leave the euro zone get used to living with the threat of that jim cull sand thinks bond markets have overdone it he says, quote, we think markets are pricing and too little tight nipping. here are the probabilities right now 82% for that june hike in just about ten days or so, september 50%. december has been essentially priced out >> that's what you said yesterday, too, maybe the mark was over doing this. >> here's the story, don't watch italian politics, watch european
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politics >> that will determine what this has on the federal reserve >> perfect steve will stay with us for a while. we will talk more about these issues with someone he was talking about, megan green is the chief economist at asset management i can only assume when he said someone was going to be talking intelligently, he meant you. not the three of us at the table. why would he say that? >> european economics rolled over in the first quarter. it seemed like it was a bad weather story. which i'd buy better than in the u.s., when weather is bad if germany, it's all of germany in the u.s. there are different regions. >> that data continued into april and may. it seems the growth cover rolled over in europe economic growth lifts all tides. so italy going into a meltdown potentially in the midst of a recovery that's kind of faltering anyhow is bad news for
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all of europe. i think for italy there are three main scenarios going forward. one is italy snaps back into line quickly when they have a new government i think that's unlikely unfortunately the other is they snap back into line slowly but the third is they essentially drive italy off an economic cliff that's very unlikely with such a huge impact. you have to consider it. >> you were the italian expert for the economist. so you covered their politics and economics. do you want to share your medication with us that you took to keep a zen with what was going on there how should we look at this this low probably of a catastrophic event, which is really what's echoing and sort of coming on our shores here >> when i asked me friends in rome if they're not worried about things, they will literally say the stacking of rome really sucks. so we survived that. so this will be fine but that being said, there is genuinely no plan for what if
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italy gets in trouble. if you ask them what they will doing they point out they will end their bonds buying italy ends up massively from that, it's no problem they will get a program. >> a bailout >> it's a bailout financed by the ecb. it comes with strict conditionality load of rule if you ask any italian politician if they would ever accept the conditions, they would say no thanks. >> the two parties, just one, the top two parties have a program that's very different and it throws off any stringt encys that have been put on italy by being in the euro zone. >> if those two parties ends up forming the government, which is possible, or there is an election and they come out on top again, which is also likel , they are set to blow out italy's bug deficit. that's okay if they finesse things with brussels, they are deeply anti-european >> let's go to the broader level, which is sort of the
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unexpected european strength that helped us out and led the fed kind of go with almost impunity to raise rates. if that goes away, is that your expectation that their growth rate as an area comes down and how does the federal reserve react to that? >> so they grew by around 2.5%, well above their potential gdp growth i do think they've already hit peak growth. i think we should all have been expecting that, though so the fed may ends up tightening a little off the back of it. i think the real implications of the fed as italy sees it on the table as a risk, turkey, architect tina, brazil, also pose challenges, we get a flight to safety. the fed is really worried about inverting the yield curve. they know the yield curve has predicted power over concessions, that will constrain the fed on the short ends if the
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ten year yield doesn't come back up >> i have been going around and around with this if the fed is so worried the yield curve will be inverted because of what's happening overseas and that making the ten year look is so much more attractive if the feds doesn't raise rates as a result, does that put us in a position why they are far too late and that puts us in a recession because of that? >> i'm not buying the cycle surge in inflation story that a lot of economists and analysts are pedaling i think we're in the late business cycle, it's so much longer we could be in this late stage for a long time. >> you have a really strong economy? >> absolutely. with the stimulus measures down the line, you would think would be inflationary. >> there are so many disinflationary forces in the economy as well. >> you should talk more about this because we have had one economist after another. oh, it's coming, it's coming it's right around the corner of that inflation
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i'd be skeptical because with global forces the technology the globalization, what are your reason for why this isn't coming?. >> some is global detractors, growth, auto makes, things like that that's downward pressure and takes it off wages and inflation. in you use the supply and demand curve, we have two massive supply side shocks so the tax bill is one and deregulation is another. shift the supply curve and we've had one big negative demand the fed withdrawing accommodations to shift the demands curve in. >> that puts down ward pressure on price, i'm not saying we will have deinflation with le have a moderate acceleration, which means the fed can stay on their path >> that's almost a goldilocks scenario >> what do you do with oil do you dhunt out >> no, oil is absolutely one of the inflationary forces that relegitimately have, the fed is
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looking at core pcs, that strips oil prices on core pce they're not getting through as quickly. >> so we get to two. the inflation numbers stop there. they don't fear much >> to highlight their course, they will go above 2 through july they will stop there >> megan, thank you so much for stopping us. >> coming up, soft bank invests 2.2 billion in general motors self driving units, check out the shares, higher on that news, we will talk to the auto maker's president,ir on bc fstcn we'll be right back. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee.
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we got some breaking news right now. in just the last half hour, soft bank officially announcing it is investing $2.2 billion we want to get to phil lebeau in los angeles, the stock is moving on this news quite positively. phil. >> andrew, it's up almost 8% pre mark following the announcement of this deal when general motors and soft bank, let's bring in dan ammann from tenl general
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motors headquarters. explain this, general -- from general motors they are making a 1.1 million into gm cruise this is about the funding necessary of cruise automation, correct? >> yeah, that's absolutely right, phil. i think it's a big recognition of the validation of progress we've made to get to this point. i think it also is a big recognition of the opportunity that lays ahead. we looking to commercialize this technology and sales will require capital to do that this is a new source of capital for us as we look to grow this business and realize what we think is a very large business around autonomous technology >> are you still on stooul schedule you said you would like to see the commercial launch next year or is there a possibly when it comes to autonomous drives this
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may get pushed back to 2020 or 2021 >> we said last year, phil, you were there, based on the rate of progress we were making we see a path to commercialization in 2019, we continued to make a lot of progress since then >> that continues to be our objective. importantly, our ultimate decision to launch it driverless will be guided by safety we need to hit the right levels of safety performance. when we do that, we will be ready to go. >> you've got fresh capital. do you sense that this is going to be enough that perhaps whether it's six months, a year-and-a-half from now, that both general motors and soft bank will have to put more capital into cruise? >> so we believe the capital we are talking about today will carry us well into commercialization, obviously, what happens after that, will be a function of how quickly we grow the business, how quickly we want to sail.
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we think we will have different opportunities and flexibility once we get down the road. >> you still believe joenl e gener - general motors has the best plan in terms of you've got the software, you got the hardware, you will have the platform all in one package >> yeah, i think what is unique about our approach i think you sum rietzed it nicely there, phil we have the software capably, the hardware, the elevation the safety approach and then when all of that is ready from a technology and safety point of view, then we obviously have the ability and know how to build all the cars and to stale this to a really passive level. so having control of that entire ecosystem if you like we think is important and a unique advantage that we have >> andrew in new york. i wanted to try to understand is what your take is on the way soft bank has approached this in terms of its investments it's making a large bet on
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everybody and how you think about that and ultimately how you think this sector shapes out and the ultimate goal for soft bank is to try to push some of these folks together >> so, the over the last several months, we have been in discussions with the folks at soft bank, the foundation of this partnership is we have a very aligned vision of the future we believe that autonomous will have affordability and we think as a result of that this is an immense opportunity. we are fully aligned around that so what we are doing about that is setting ourselves up to be in the best possible position to capitalize on that opportunity to get the technology equation sold and then go to scale in a significant way. soft bank brings other relationships to the table, which only increase our flexibility and optionality
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around. >> real quick, that's the point, dan, do you look at this, not a zero sum, do you say to yourself, if you guys win, uber loses, for example or lyft loses, if that's the case, it gets complicated for soft bank really quick >> i think it's a huge opportunities. our goal is to be successful here and achieve a scale, other relationships can help us on that mission you know, we're absolutely opened to it >> okay. dan, appreciate it very, very much phil in l.a. this morning, thank you for bringing us the interview. appreciate it, guys. >> thank you when we come back, what uber's ceo said about warren buffet the or cam of omaha talks about mpvestment in the ride share coany were held. coany were held. we have details next td ameritrade lets you trade select securities
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welcome back, everybody, warren buffet confirming berkshire hathaway held talks with uber. that was in talks that they offered a $3 billion investment earlier this year. buffet said some of the details weren't accurate but said they did have these talks they said the discussions fell apart based on the terms of the
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deal he also said that he is a great admirer of uber ceo. cnbc carl cantonia spoke on the sidelines of the conference. >> it's always possible that talks resume i think there has to be a match. we are a company that has, as you know, an enormous growth trajectory at the same time it comes with considerable risks so i don't think we necessarily fit in with a typical warren buffet investment. maybe we can be a different kind of an investment a portfolio diversification play for him you never know what can happen i certainly would welcome any kind of a dialogue with him. it would be an honor we didn't get there. could we get there at some point? maybe, maybe not >> you can see more today coming up on "squawk on the street" by the way, we have much more in the next half hour right here on
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"squawk box. >> when we return, an economic data triple play ahead of tomorrow's big jobs report we will do that next first, as we head to break, take a look at u.s. equity features at this hour we will show you what's going on the dow is ten points now, s&p 500 up about 2 nevadabout 2-andf back in a moment every fire department every police department
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good morning, welcome to "squawk box" right here on cnbc. we are live at the nasdaq at time's square. among the stories front and center shares of american eagle outfitters are rising. the retailer reported 23 cents per share profit, revenue came in above forecast in comparable store sales, 9% compared to a consensus estimate the national association of realtors will be releasing their report on pending home sales >> that itself the measure of home sales contracts signed. expected to be up by .4 of a
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percent. also, toyota seeing the out shipments from japan jumped 20% in april the rav 4 suv was a significant part of that increase. analysts point out toyota could be hit the hardest of the foreign auto makers by a possible import tariff rav 4 models currently made in japan and canada and imported tariff free right now under nafta, depending on how they emerges could make it complicated. >> in breaking economic data the futures all day has been around the flat line. nasdaq is a little better on a relative basis up 16 the dow jones indicated up 14 and change s&p indicated up a little bit less than 3 points let's take a quick look at the ten year, 286. wherefore art thou
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where do you think i don't know, i don't know if we go back down or head back up >> i was saying yesterday, no matter if bond yields go up or down, we look at it as a crisis for stocks >> either way. why? >> so bad. >> it goes up. anypoi, let's go to rick santelli the numbers. >> all right our read on personal income expected up .3 is exactly up .3. we lost a tenth to .2 on last month's spending hey, we get a bonus here, up .6. we're expected .4. we gained up to half of 1% so that's a pretty good number if we look at real personal spending, it was up .4 a month over month inflator up as expected. the last look the deflator 2% unchanged both in the front and the rear view mirror finally the expenditure core
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month over month up .2 the year over year core up 1.8 that's actually, oh, i'm sorry, 1.9 last month revised it's the same. ready for job les claims, 221,000 from an unrevised 234,000. we move from 1.742 to 1.726 million on continuing claims we are holding 286 haven't flinched i am impressed by the index number now under 130. crisis is completely gone. not. joe, back to you >> italy, if you were going to figure out a way to continent, can you do it over there is there anything you do the way they do it
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i mean, it's destiny >> there is one thing they do. >> the rich cream my wine? >> the people go out the people vote. the people expect some sort of coalition based on their vote, but we're not sure if that's what they're going to get. to me, it's not about my preference, it's the people who live there preference is, the people in brussels don't live in italy. >> i guess that's my observation. >> that's true i wonder what happens with the euro, long term. we had people on long term >> why is everybody scratching their head, though, joe? you have insolvency in banks, not only, we think stifel nicolaus you have issues where the debt is mounting, the reforms never seem to have mounted at all. have you the potential for exit. whether it occurs or not the reality is we have learned that the setup for the european union
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is flawed. they never got around to completing it. to me, i think there is lots of questions. aim i am not sure how they will go away. i think that in and of itself is something investors internationally ought to pay closer attention to. >> the road we kick the can down, it will never go away completely it will rear its ugly head some way. >> we can put a lamp shade on that rug and call it interior decorating >> all right rick, is it hot and teamy in chicago yet? it must be coming there. >> thank good. i like cotton steamy you can keep 30 below zero >> pmi thanks, rick we'll see you later. a couple stocks to watch in the meantime, revenue beating the forecast the company is ramping up spending to attract
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more pain customers. it's down after it gave conservative guidance. guests reported first quarter results that were in line with that same sore sales rising above 2% shares under pressure this morning as the company offered weaker than expected guidance. is j.lo i don't want to call her the guess girl, i'm seeing ads and then watch shares of those shares rose nearly on the report they hired j.p. morgan to explore possible sales a lot coming up. we will take you live with a spotify ceo. we spoke with them for the first time since taking it public. we will tell you about the controversial papal content policy meantime, look at u.s. futures at this hour dow looks like it's opened down
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8 points nasdaq is up the s&p 500 is looking up as well we are beack in a momen $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. becareally want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it-
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welcome back to "squawk box. take a look at futures
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the dow flipped around seconds ago. it will open 16 points higher. i was looking to open down 30 seconds ago. the nasdaq is looking to open up 50 points higher s&p 500, green arrows across the board in european market, except for what's taking place in germany. in the meantime, we want to go across the country on the west coast. we have this in headlines from the code conference the first comments from spotify daniel eck. good morning to you, julia. >> reporter: good morning to you, andrew, well, last night daniel eck answered a range of questions how he is going head-to-head with his plans to grow the market for audio to be as big as the markets. he admitted the hardest part was the surprise when his stock tanked after results met projection, that he had given a
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couple peeks before the end of the quarter. he weighed in on the controversial surrounding the art kelly issue that pulled down art kelly songs from the platform >> the whole goal with this was just to make sure that we didn't have a hate speech on the surface. it was never about punishing one individual or naming one individual artist as well. i think coming back to this, this is my irresponsibility as a leader i think we rolled this out wrong and we could have done a much better job. >> you know, they are committed to transparency across the board from his ipo strategy to communication with investors and analysts and his content policies, which is behind that r. kelly issue they explain his vision for building a logistics drive while everyone talks about building the uber of their
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industry, he's got a different role model >> just like amazon sells their party goods, we are going to also offer third party transportation services. so we want to be able to say should it take a bierkts ubete, all of it top optimized for you and done with the push of a button. >> reporter: sounds just like amazon we will have much more from code here throughout the day. >> give us a little behind-the-scene gossip on all the buffet news. >> reporter: it's interesting. he didn't talk about buffet on stage. he did talk about buffet with carl cantonia, we will be playing that sound throughout the day. he didn't talk about that they were talking more about competition and the challenges that he is facing in terms of hiring. we talked about how he needs to hire a cfo, when he plans to go public both uber and airbnb saying on
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stage yesterday that they will be ready to go public next year. he says they plan to go public next year. airbnb saying they will be ready, not necessarily very exciting to hear in his interview with carl about that relationship, how she a fan boy of if you have fbuffet >> we should tell you randall stevens is speaking out about the time warner deal less than two weeks to go, a federal ruling is expected on the deal here's what he had to say. >> we saw it coming. >> yeah. you. >> you go into a transaction like this. you step into it you hope you never have to lit get it but you step into it with the expectation you may have to litigate so you prepare from the very beginning. you bye-byeer insurance for your house. you hope you never use it, when you do, you have it. >> with me is the senior
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analyst. good morning >> good morning. >> so did he buy insurance does he have insurance >> does he have insurance? look, i think the merger they're proposing is i think an approach to the future. i think that it makes sense to leverage contents against direct consumer relationships, against types and big data i think that that is one of the only ways that i can imagine being able to stay relevant in the world that's coming of facebook and netflix and amazon. so i think he is taking a swipe at the future. i think if the government lets him, he will have a good chance of working >> are you betting that a judge may let him? >> i think it's highly likely the doj loses. i think their suit was off kilter, not very strong. but it's a corps and we'll see on june 12th what they say i think one of the things that
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could happen is they could win the bat. but win the war. if they get a favorable decision from this judge. then the doj appeals, there are stays, this could be stretched out such that this the deal. >> there has been saying, from what i understand, from the lawyers that i talked to in and around the hoop on this, if the judge were to say, look, i'm going to let this transaction go through, but i'm adding my own restrictions of sorts. >> that opposite up the windows for all sorts of appeals by the justice department if you were to just let it through straight, it becomes much more capitulated. is that the right analysis >> look, it's a courtroom. it's a judge, so many things can happen on the road to victory, it's still not a slam dunk situation as i'd like to think it should be given the merits of the doj case i don't think are there. it could get done.
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i think the content and the distribution and the media companies path to the future is this way it's really absurd and i think wrong the government could muck it up, but they might. >> while we have you here, in terms of the soap opera that is cbs and via com, i'm thinking of verizon on this, it appears on multiple reports the ceo of verizon made a number of entrees to try to get in front of the cbs board, they weren't having it at least i should say cherry redstone wasn't having it. >> yes >> is that the right deal for verizon? >> i think that if at&t is successful withtime warner, versus will have to respond. you have one party leveraging content, getting extra cellular subscribers because of a better content setup. someone like verizon would have to respond to that so i think that speaks to that vision of the future he saw some of the credibility
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in that. now, if the deal doesn't happen, verizon probably can't do that deal but you know i do think if they succeed putting viacom back together, it makes it more difficult the thing is much bigger to swallow and there are some capital concerns. >> let me walk you back. i am curious what your reaction is what would happen, if the time warner-at&t deal goes through and verizon steps out with we'll call it a bear hug, completely speculative. what happens then? meaning how does cherry redstone react to that, given there could be a serious premium on a transaction like that? the control company says i don't want to sell >> look, obviously, you are going down a speculative road. with that in minds, i don't think it's easy for her to hurricane her back on things that offer a clear value to
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shareholders there is litigation risks for her personally, for her family's wealth they are obviously lawyers by training they understand the legal process well they're skilled at that. it seems very hard to me to turn your back on shareholder value when you have a board opposing you. i i think it's meaningful if they offer to come over. >> i tell you the transaction i think about is when murdock went after dow jones with the family and effectively pushed them, pressured them, given the price tag on that deal for that to happen and whether, in fact, maybe if are you cbs, you try i to draing this out as long as possible to wait for the deal to potentially give license to others to come forward we will see, great to see you. >> so many that wanted to sell
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versus the redstone not wanting to get into that >> and in the redstone case, you have one >> artie pof one >> when we return, we will check in with jim cramer live from the new york stock exchange, first, airlines are funneling big bucks into airport terminals we are live at lax phil, what's coming up >> reporter: phil this is grounds zero in terms of the battle between the biggest airline's pre dominance in the country's second largest air market what are we talking about? lax, dell that its investment here >> that story when "squawk box" returns. whoooo.
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delta air lines pouring quite a bit of money into lax to make some upgrades lax is, of course, los angeles international airport. phil lebeau is back this time with the battle of lax phil >> and, joe, this is an intense battle one that involve it is billions of dollars being invested into lax. how much importance is this for the airlines involved here look at the four largest airlines in terms of traffic at
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lax and we should point out that these airlines have all increased their market share over the last five or six years as they've added more flights and added more seats here. what i want to point out is who is out here in l.a a lot of people might be surprised and it is deltawith just under 17% market share. today delta will be announcing the next phase of its investment here at lax. $1.9 billion will be poured into essentially gutting, renovating terminal 2, terminal 3 and adding a bridge from the international terminal over for these terminals so it's easier for the passengers making the international connection expanding their presence here in l.a. if you look at shares of delta, keep in mind that not only is this the number two airline in l.a., but for delta, this is crucial for flights going into mexico through its partnership, its stake in aeromexico as well as its expanding presence going
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into asia with flights out of l.a. and we'll be talking exclusively with ed bastan at the delta terminal guys, i can't stress enough how much money is being poured into l.a. and lax by the airlines because they realize this is the second busiest airport in the country and it's quickly gaining ground it's up 5%, 6% in terms of traffic and that's why delta, united and american is investing here. >> i wish someone would have given that kind of word to newark >> why do you think new ak needs improvement? >> have you been down terminal a lately >> jim cramer, there are bigger things happening but since you are ready at any time to talk about 6,000 different stocks i know you get called with anything, why do dollar retailers go down in great
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times? i understand in bad times people use them, but people don't go to dollar general or dollar tree when things are good both have seasonal products that they can't clear out and it's linked to holidays both of them had consumables doing better which is not good they don't have good margins in food, apparel and other knickknacks so to speak so both these companies have the wrong merchandise and they say the macy's had the right merchandise and they missed the season we don't know which particular products did not sell, but they had to discount heavy ones >> it's not really a macro case and there's more of a weather inventory case both cited weather and both cited the wrong kinds of stuff that they had to sell and they lose it's not discount because burlington wasunbelievably goo and it's not full price. american eagle was good and it happens to be that they had the wrong mix and they're very
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holiday centric. so they got hung and both will go down today. >> that was really cool. i'll bet you can do that with anything on "mad money". >> 6,000. >> what do you do for a living >> we should do it with anything. >> it's a little scary in so many ways, i think it is amazing. >> do you have time for anything else the emotional aspects of relationships? >> no. none whatsoever. >> this is it. >> the dog breaking out here, it's in outer space. >> thanks, jim we will see you in a couple of minutes on cnbc don't miss steve liesman's exclusive interview. there was a song for you we're having too much fun. >> we are. a lot of things that we ain't done, but we ain't never had too
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much fun. >> nobody can have too much fun. >> you know what else we haven't done tease the interview that we had the picture up on. >> let's do it then. gutol interview the fed bank's relar randal quarles at 2:10 eastern time wait what? directv gives you more for your thing. your... quitting cable and never looking back thing. directv is rated #1 in customer satisfaction over cable. switch to directv and now get a $100 reward card. more for your thing. that's our thing. call 1.800 directv.
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before we go we want to say a special thank you to our chiron operator. they don't appear magically. they're someone who works very hard in the control room to make sure they happen every day, every hour daphne has been with us for the last 12 years and she's moving on to another position at cnbc we will miss her here on "squawk box" and we wish her the best of luck >> she's saved us many times on the air. it's not as scripted as people think and stuff's changing all of the time. >> understatement. >> it is an understatement >> making headlines, michael jackson's estate suing abc it says last week's special, if you remember the special last week about jackson's final days
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you saw music videos without permission the lawsuit seeking unspecified damages. abc denies that the special infringed on any copyright >> rough week, kind of, for abc. know what i mean with the jackson thing and roseanne >> i don't know what that was about -- >> what the "roseanne" show was worth? >> big ratings >> yeah. >> the other pieces she's losing all of the syndication and that's where the real money was for her. >> let's get a final check on the markets this morning we're watching the futures today and they're in the green just barely and the s&p is up by over a point and the dow futures up by six points and it comes as an update for the markets and following a down day for the markets and we'll show you what we'll get with the end of the week and don't forget we have the jobs report that will be right here on "squawk box" at
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8:30 p.m. eastern time >> green arrows for most of those markets this morning you can see that the dax is down by a third of the percentage point and others are higher across the board including italy and the political concerns weighing there this week right now italian stocks are up by more than 0.4%. finally, take a look at the ten-year which this morning is yielding 2.8 to 3% >> we'll see you tomorrow. >> national doughnut day >> doughnuts for you ♪ ♪ ♪ good morning welcome to "squawk on the street" i'm david faber along with jim cramer. carl quintanilla is at the conference in rancho palos


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